The dramatic events of 2011 in the context of the European C The State of the Union (s): Eurozone Union have forced analysts and scholars to reflect on what omparative kind of entity will be in the next decade. Simultaneously, The State of the Union(s): regional political integration and cooperation have been de- veloping at a fast pace around the globe, creating great ex- The Eurozone Crisis, pectations and much confusion. The latest decisions of the EU Council have opened the door to an unknown chapter of European history. Consequently, the EU model or reference R Comparative Regional Integration egional has suffered the impact of these factors and presents today a different face than decades ago and offers somewhat dif- and the EU Model ferent challenges to be met. A set of questions dominates the news scene: I ntegration and the EU • What is the state of the Union(s)? • Which direction is the EU going to take? • How does the rest of the world understand regional integration? • What are the consequences and impact of the current EU crisis on international business? • Is the EU model, along normative and “soft” power, still valid? C • What standard or new theories can best be applied to risis, explain new realities? M odel Contributors Astrid Boening Manuel Porto Joaquín Roy (editor) Jolyon Howorth Tatiana P. Rizova Joachim Koops Joaquín Roy Joaquín Roy Preface by Finn Laursen Vivien Schmidt María Lorca Markus Thiel João Vale de Almeida Andrés Malamud Alfred Tovias John McCormick George Zestos (editor) Alfonso Camiñas-Muiña Assistant Editor Jean Monnet Chair, University of Miami Miami-Florida European Union Center of Excellence Cover.indd 1 3/26/12 1:19 PM The dramatic events of 2011 in the context of the European C The State of the Union (s): Eurozone Union have forced analysts and scholars to reflect on what omparative kind of entity will be in the next decade. Simultaneously, The State of the Union(s): regional political integration and cooperation have been de- veloping at a fast pace around the globe, creating great ex- The Eurozone Crisis, pectations and much confusion. The latest decisions of the EU Council have opened the door to an unknown chapter of European history. Consequently, the EU model or reference R Comparative Regional Integration egional has suffered the impact of these factors and presents today a different face than decades ago and offers somewhat dif- and the EU Model ferent challenges to be met. A set of questions dominates the news scene: I ntegration and the EU • What is the state of the Union(s)? • Which direction is the EU going to take? • How does the rest of the world understand regional integration? • What are the consequences and impact of the current EU crisis on international business? • Is the EU model, along normative and “soft” power, still valid? C • What standard or new theories can best be applied to risis, explain new realities? M odel Contributors Astrid Boening Manuel Porto Joaquín Roy (editor) Jolyon Howorth Tatiana P. Rizova Joachim Koops Joaquín Roy Joaquín Roy Preface by Finn Laursen Vivien Schmidt María Lorca Markus Thiel João Vale de Almeida Andrés Malamud Alfred Tovias John McCormick George Zestos (editor) Alfonso Camiñas-Muiña Assistant Editor Jean Monnet Chair, University of Miami Miami-Florida European Union Center of Excellence Cover.indd 1 3/26/12 1:19 PM The State of the Union(s): The Eurozone Crisis, Comparative Regional Integration and the EU Model Joaquín Roy (editor) Miami-Florida European Union Center/Jean Monnet Chair, 2012 The State of the Union(s): The Eurozone Crisis, Comparative Regional Integration and the EU Model Joaquín Roy (editor) Prologue by Ambassador João Vale de Almeida With the special editorial assistance of Alfonso Camiñas-Muiña Miami-Florida European Union Center/Jean Monnet Chair, 2012 Contributors Astrid Boening Manuel Porto Jolyon Howorth Tatiana Rizova Joachim Koops Joaquín Roy Finn Laursen Vivien Schmidt María Lorca Markus Thiel Andrés Malamud Alfred Tovias John McCormick George Zestos The Miami-Florida European Union Center of Excellence A Partnership of the University of Miami and Florida International University and The Jean Monnet Chair of the University of Miami The Miami-Florida European Union Center of Excellence (M-FEUCE) is one of the 11 Centers of Excellence supported by the European Commission at universities through- out the United States, as part of a broader effort to promote contacts across the Atlantic. Thus, these EU Centers promote the study of the EU, its institutions and policies and EU/US relations through teaching programs, scholarly research and outreach activities in their local and regional communities. The Jean Monnet Chair of European Integration, awarded by the European Commis- sion’s Jean Monnet Action of the General Directorate of Education and Culture in 2001 to the University of Miami, has been exclusively dedicated to strengthen the teaching and research of the EU, with a strong specialization on its relations with Latin America and the Caribbean and comparative regional integration. Miami – Florida Jean Monnet Chair Staff European Union Center Joaquín Roy (Director) University of Miami Astrid Boening (Research Associate) 1000 Memorial Drive María Lorca (Research Associate) 101 Ferré Building Maxime Larivé (Research Assistant) Coral Gables, FL 33124-2231 Dina Fernández (Research Assistant) Phone: 305-284-3266 Alfonso Camiñas-Muiña (Research Assistant) Fax: (305) 284 4406 Web: www.miami.edu/eucenter Florida International University Rebecca Friedman (Co-Director) Inter-American Jean Monnet Chair Editorial Board: Carlos Hakansson, Universidad de Piura, Perú Fernando Laiseca, ECSA Latinoamérica Finn Laursen, Dalhousie University, Halifax, Canada Michel Levi-Coral, Universidad Andina Simón Bolívar, Quito, Ecuador Félix Peña,Universidad Nacional de Tres de Febrero, Buenos Aires, Argentina Lorena Ruano, CIDE, Mexico Eric Tremolada, Universidad del Externado de Colombia, Bogotá, Colombia International Jean Monnet Chair Editorial Advisors: Federiga Bindi, University Tor Vergata, Rome, Italy Roberto Domínguez, Suffolk University, Boston Francesc Granell, University of Barcelona Printed in the United States by Thomson-Shore, Inc. ISBN: 978-1-4675-2401-8 Copyright 2012. Jean Monnet Chair/University of Miami. All rights reserved. No portion of the contents may be reproduced in any form without written consent of the publisher. Contents Prologue EU-US Partnership: More Relevant than Ever? João Vale de Almeida EU Ambassador to the United States……………………………………………...….1 Introduction The European Union Today: Crises, Hope and the Impact of Regional Integration Joaquín Roy University of Miami………………………………………………………………9 I. What is the EU and What Does It Do? European Identity in the 21st Century: Moving from External Marker to Internalized Practice Markus Thiel Florida International University……………………………………….23 What has the EU Ever Done for Us? John McCormick Indiana University, Purdue……………………………………………...….35 All for One, One for All Alfred Tovias Hebrew University of Jerusalem, Israel………………..………..…......45 II. The Eurozone: A Problem or a Solution? EU Responses to the Challenges of Globalization Manuel Porto University of Coimbra, Portugal......................................................57 US Subprime Mortgage Crisis and the European Sovereign Debt: Why the European Sovereign Debt Crisis Has Not Been Resolved Yet George Zestos and Teresa Rizova Christopher Newport University, Virginia……………………............69 The Eurozone and the Economic Crisis: An Innovative SWOT Analysis María Lorca University of Miami…………..…………………………………………..85 The Eurozone and Democracy Vivien Schmidt Boston University…………………...…………………………………..103 III. The External Dimension The EU Relations with Core International Organizations: The Track Record So Far Joachim Koops Free University of Brussels, Belgium…………………………………117 EU Region Building in the Mediterranean: A Missed Opportunity? Astrid Boening University of Miami……..………………………….……………….....131 The European Union as a Model for Regional Regimes Worldwide Jolyon Howorth Yale University…..…………………………………………………….145 IV. The Americas Comparative Regional Integration and the EU Model: How to Achieve Credible Commitments (NAFTA and MERCOSUR) Finn Laursen Dalhousie University, Halifax, Canada………………………………161 Sovereignty is Back, Integration Out: Latin American Travails with Regionalism Andrés Malamud University of Lisbon, Portugal……………....………………………177 About the Authors…………………………………………………………..191 Prologue EU-US Partnership: More Relevant than Ever? João Vale de Almeida At a time when our global awareness and connectivity is unprecedented, when countries like China, India, Brazil and others are emerging or re-emerging, it is natural to wonder what the implications are for the transatlantic relationship. Is the EU-US partnership more or less relevant than ever? Have we become passé? I believe the EU-US partnership is more relevant than ever because: • It is a partnership, not an on-again off-again relationship, developed over fif- ty years; • It is vital to the health of the world economy (emerging from a brutal shock to the financial system and adapting to new players). • It is effective in dealing with foreign policy challenges (for example Syria, Iran, North Korea) • We have the obligation and the wherewithal, particularly if working jointly, to deal with threats to our societies and humanity from cyber-terrorism, terror- ism, WMDs, climate change, energy security and poverty. Perhaps we need to start thinking