LOBBYING AGAINST THE EUROPEAN FRACTURE

Everything the EU does to foster unity seems to only further infighting, divisive rethoric and finger-pointing. There is squabbling over bailouts, multicultural woes, bloody protests and even serious discussions about member states exiting the eurozone etc. Europe appears to be fracturing under the weight of each bailout.

If the compounding crises coontinue, it appears EU member-states may revert to their default positions of "every nation for itself" and bring progress within the EU to a grinding halt. The crisis has rejuvenated a divide between north and south. Taxpayers from the more fiscally stable "northern" nations, loathe the thought of shouldering the brunt of a mess they see as made by "southern" countries such as Greece, Portugal and Spain. In contrast, the nations lining the Mediterranean cannot imagine a scenario in which sweeping budget cuts fail to cause nation-crippling protests and further stunt economic growth.

The euro was meant to bring Europe together. Instead, it is splitting the currency bloc apart. As the euro crisis deepens, so does the rift between north and south, member-state and member-state. As the European Union attempts to overcome economic hardship through unity, member-states seem to push each other away. On the surface, the current divide reflects contrasting economic fortunes, with the Southern states (particularly Italy, Spain, Greece, Portugal) disproportionately impacted by the Eurozone debt crisis, and forced to rely on subtantial economic relief from the wealthier Northern European States. A close study of major indicators paints a bleak picture of the Southern European economies. The interest gap between the Northern states, which are enjoying extremely low borrowing costs, and Southern debtor countries, which are facing rising bond yields is significant. Moreover, the Southern European states are dogged by rising unemployment rates that are significant higher than the EU average of 10.3%. They are also burdened by higher government debt. Finally, the Southern European states are also suffering from a distinct loss of competitiveness as a consequence of the increase in labor costs, far outstripping productivity gains in the last decade- in stark contrast with Germany's experience. More troubling is that a further number of factors indicators suggest that the North-South economic gap is more likely to widen, rather than lessen in coming years. Indeed, the bifurcation between Northern and Southern Europe will become more acute as northern economies innovate more and southern economies innovate less. Furthermore, while youth unemployment in the European Unon has risen to an average of 22.6%, Southern Europe has been particularly hard hit, with Greece and Spain reporting rates of over 50%. The gap may be explained in part by a higher education gap between Southern and European nations which has resulted in an oversupply of labor force for low skill vacancies in Southern Europe, at a time when manufacturing jobs are moving to cheaper markets like China or India. Amelioration will not be easy. Not only are austerity pressures likely to weaken any push for further investment in higher education and training, but the continuing economic difficulties in Southern Europe are spurring a brain drain towards the North, especially Germany and migration outside Europe is on the rise.

The North-South divide, however, goes deeper than the deeply contrasted economic performance. It also extends to the realm of perceptions, identity and responsibility. The persistent Eurozone crisis has provided fuel for a serious resurgence of stereotypical regionalism. The politicians and experts who promote these stereotypes do so because they tend to characterize Southern woes as self-inflicted. They regard the current North-South divide as a logical reflection of a fundamental split beween the two parts of the continent, rather than a temporary aberration. Simple economics and cultural complexities are driving a significant wedge between North and South, and bridging the gap in performance and conflicting perceptions presents an immediate and acute challenge for the EU. But the future sustainability of the European project will ultimately depend on recapturing the ideals and spirit that helped the continent to overcome its tragic past, and which now are in danger of being lost.

A robust lobbying campaign against the European fracture needs to be implemented. Paraphrasing John Kennedy "Ask not what the South can do for you but what you can do for the South" to save Europe!