Between Deadlock And Bankruptcy

The Europe in which Romania will be fully integrated in two years - provided that the inertia of European decisions continues to work in our favor - is not just an economic space, but also a space of debates, confrontation of ideas and alternative projects. It is diversity that makes Europe alluring and this is why modern political alchemists are feverishly seeking the formula that would permit the construction of a political - economic - military monolith without infringing on the historical and cultural diversity of each of its bricks.

One of the prevalent concerns currently wedging the current European space regards "the social dimension.' The "Providential State' model upon which Europe's development has been based for over 50 years has come to a crossroads. To some, the very European construction would not have the same meaning if this objective is not accomplished continent-wide. It is a social contract under which The EU assumes the three fundamental principles of the model proposed by Lord Beveridge: universality - meaning that every citizen must be protected against all social risks, from unemployment to illness, uniqueness - meaning an integrated system of managing the funds that cover these social needs, and uniformity - meaning that every citizen must be able to fully benefit from the integrated social security system, according to their needs and not to their income or contribution.

This idea, which has left deeper marks across Europe than all the ruling programs of all the parties that have been in power for the past half a century, is not a "contraption' of the Leftists, but the European Conservatives' counter-reaction to the rise of Leftist ideologies, which began in mid 18th Century and continued throughout the 19th and 20th Centuries. The concept (and project) of The Providential State has quite a few important forefathers among the Conservatives, starting with Bismark, the Iron Chancellor, who introduced a general system of insurance against illness, accident and retirement hoping to bury the Socialist ideas. Later on, this concept appeared in Roosevelt's idea of Welfare State, which he initiated through The Social Security Act of 1935, shortly after The Great Depression.

One way or another, Europe's modern countries have all assumed this role. The problem is that the resources and solutions needed to keep the Providential State machinery going are running scarce by the day. This is a truth that Eastern Europe discovered already in the communist times, when inefficiency, poor organization and lack of technological competitiveness were draining its economic strength. Today, even the prosperous Socialist states in Europe see the Providential State machinery starting to malfunction. Europe's great economies and societies, mainly France and Germany, are quaked by the consequences of trying to reform social security systems. For instance, The Raffarin Government received a severe rebuke during the recent local elections for having dared mention the possibility of cutting some social benefits. Nevertheless, in the absence of reform, the French economy is skidding, and its precarious state reflects upon The EU as France finds it increasingly difficult to remain compliant with The Stability Pact. The Schroeder Government is confronted with more or less the same problem and, since it dares not touch social benefits (well, Social Democracy comes with a few encumbrances, does it not?) it is feverishly seeking "wonder solutions' to boost economic growth beyond the current level, which is rather closer to zero than to one percent. Those who claim that The Providential State is in deadlock, if not even bankrupt, base their beliefs on both theory and practice. Besides Premier Raffarin, Jacques Attali, too, believes that, in the absence of consensus on increasing taxes, The State is practically incapable of action. In other words, The State cannot produce the funds to fulfill the promise of total and universal social security.

The problem gains further proportion if we look at the recently enlarged New Europe. To countries such as Romania, Bulgaria, Poland or The Baltic States, European integration has one fundamental ingredient: the fulfillment of the promises of The Providential State, which Socialism failed to keep.

It will be quite tricky to explain to the millions of new citizens of Europe, the Easterners, that "The Providential Europe Store" has just closed for renovation. Or maybe it has just closed for good! Perhaps we, Romanians, could export the "wonder solution' developed by our very own Social Democracy: discounters for paupers!