Posted By Stephen M. Walt

Sean Kay offers the following guest post on the implications of the new Defense Guidance for the NATO alliance:

Last week, the U.S. Department of Defense announced new strategic guidance for force structure and budgets. Buried in the short public document is a single sentence, originally in italics for emphasis, which moves debates over European security after the Cold War into a new paradigm: "In keeping with this evolving strategic landscape, our posture in Europe must also evolve." If President Barack Obama, Secretary of Defense Leon Panetta, and the Joint Chiefs of Staff are faithful to their basic assumptions, then it is fair to anticipate dramatic, and highly appropriate, changes in America's role in NATO.

Three key elements of the new strategy make it hard to escape the logic of a major realignment in NATO. First, there is a clear statement that Asia is the priority for American national security planning. Second, major troop reductions are coming -- including shrinking the size of the U.S. Army from 570,000 to possibly as low as 490,000. These cuts have to come from somewhere and Europe is the obvious place to start. Third, the document states that (also with original italics): "Whenever possible, we will develop innovative, low-cost, and small-footprint approaches to achieve our security objectives, relying on exercises, rotational presence, and advisory capabilities." If there is any place in America's global footprint where this approach is most immediately applicable, it is Europe.

America will not just "walk away" from its NATO allies. Rather, the challenge is to create new incentives for European members to assume lead responsibility for their own security. The strategic guidance asserts that the United States will "maintain our Article 5 commitments to allied security and promote enhanced capacity and interoperability for coalition operations. In this resource-constrained era, we will also work with NATO allies to develop a "Smart Defense" approach to pool, share, and specialize capabilities as needed to meet 21st century challenges."

NATO needs a radical new kind of American leadership if Europe is to be incentivized to assume new responsibilities in effective ways.  For generations, American officials have asked Europe to increase burden sharing and economize defense planning -- and repeatedly failed. George Kennan warned about this risk in 1948 when he wrote (in an internal memo for negotiators that were creating NATO): "Instead of the ability to divest ourselves gradually of the basic responsibility for the security of Western Europe, we will get a legal perpetuation of that responsibility. In the long-run, such a legalistic structure must crack up on the roots of reality; for a divided Europe is not permanently viable, and the political will of the U.S. people is not sufficient to enable us to support Western Europe indefinitely as a military appendage." Today, with the Eurozone in extended crisis, to expect "more" from Europe would be delusional.

What, then, might be done to align next steps policy with what the new guidance calls "a strategic opportunity to rebalance the U.S. military investment in Europe?"

First, declare victory! Europe is experiencing unprecedented sustained peace. If there ever was a moment to take advantage of that climate, it is now. The risks of defense re-nationalization are next to zero and potential conventional threats far over the horizon. Meanwhile, austerity programs are incentivizing Europe to economize military spending via deeper integration -- as Britain and France commenced in 2010. The European security dilemmas that required a heavy American military presence have long been resolved. As but just one recent example, late in 2011, Polish Foreign Minister Radislaw Sikorski stated that: "I will probably be the first Polish foreign minister in history to say so, but here it is: I fear German power less than I am beginning to fear German inactivity."

Read on

Daniel Berehulak/Getty Images

Posted By Stephen M. Walt

Markets are up today on the news of yet another partial agreement on rescuing the euro, but I'm far from convinced that this latest deal will do the trick. Neither is Paul Krugman. But here's a passage from a CNBC story that pretty nicely sums up my view (emphasis added):

There are also several fundamental problems in the euro zone that are not directly addressed by the most recent agreement.

Slowing growth rates and problems in heavily indebted peripheral economies such as Greece and Portugal are still causing concerns.

"What we have got is a continuation of kicking the can down the road for another few months," Bill Blain, Senior Director, Special Situations Group, Newedge, told CNBC.

"We have got all the ingredients in place to keep us wondering: 'What happens next?' The real issue is growth and this agreement does nothing to address the problem of growth in the euro zone," Blain pointed out.

Simple story: if Europe's troubled economies (Greece, Italy, Portugal, etc.) don't start growing, then the governments and other institutions who owe creditors lots and lots of money won't be able to pay their debts, and eventually the markets will recognize this and start raising interest rates on new loans, thereby triggering another crisis.  In other words, this one ain't over by a long shot.

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EXPLORE:EUROPE

Posted By Stephen M. Walt

On the eve of the EU Summit, Mark Sheetz offers the following commentary, which differs in some respects from mine. 

In several recent blogs on the euro crisis, Stephen Walt has expressed exasperation with European leaders and pessimism on the fate of the eurozone. His reaction is understandable and consistent with virtually all journalists and economists who study the issue. They are frustrated at the slow pace of European decision-making and the fact that a solution seems obvious. In recent days, demand for action has become nearly hysterical, with analysts, columnists, and editorial writers for the New York Times suggesting that time for a solution is "running short," that "the endgame is fast approaching," that the eurozone is facing a "meltdown," and that a collapse is "perhaps inevitable."

So, what is the solution? Conventional economic wisdom insists that either Germany acquiesce to some sort of bailout or the eurozone is finished. Germany must consent either (a) to the issuance of joint and severally liable Eurobonds or (b) to a policy of monetary easing by the European Central Bank (ECB). The problem is being treated as a technocratic economic matter.  Hence, technocrats have come to power in Greece and Italy. But the matter is essentially political and the crisis turns on central problems of international relations theory, like anarchy, sovereignty, and power.   

Economists believe that the basic problem of the eurozone is economic: that national economic imbalances can no longer be restored through the traditional method of currency devaluation.  But the problems of the eurozone are fundamentally political: (a) it expanded too fast, wider won out over deeper, (b) there is no commitment to common budgetary policies, and (c) there is no mechanism to enforce agreements.

The debate is congealing around two poles, a pessimistic pole predicting the breaking apart of the eurozone versus an optimistic pole of closer integration. The solution includes both. On the one hand, wide economic disparity among members of the eurozone will force weaker members to leave. Greece, as well as those countries that use the euro but cannot afford it (PIGS), will be cast off from the eurozone by a mounting centrifugal force.

On the other hand, the remaining members will converge on tighter economic policy along the German model. As a corollary to more restricted membership, those countries remaining in the eurozone will harmonize their policies regarding deficits and government pensions and achieve some sort of convergence in the major items affecting budget deficits. This will have the effect of bringing Europe closer together, or at least those countries that can achieve convergence. It may also create a more politically coherent Europe, with those remaining in the eurozone leading the European Union economically and politically. Such a situation might even give a common foreign policy the chance to develop and cohere around a small group of stronger European countries.

Some believe that a Greek expulsion from the eurozone will be catastrophic. They assume that a Greek default within the eurozone is manageable, while a Greek exit would make contagion worse. My own feeling is that contagion -- and the accompanying collapse of the European project -- would be the result of Greece staying in the euro, not the result of Greece getting out.  The recent evidence of market contagion to Italy and Spain appears to support this claim. A referendum in Greece would have cleared the air. It would have restored a stark reality that European leaders would not be able to evade. If Greeks had voted "no" on the referendum, Greece would have had little choice but to return to the drachma. That would have been a lesson to others. They would have recognized that they have only two choices: (a) converge fiscal and monetary policies or (b) press the "eject" button. The problem now is that European leaders may still think they can muddle through by patching up a country here and there. That will destroy the clarity exposed by a Greek default.

The divide, as usual, is between France and Germany over monetary policy. The French, along with their southern European allies in Greece, Italy, Spain, and Portugal, favor easy money, while the Germans, along with northern Europeans in the Netherlands, Austria, and Finland, insist on a tight money policy. Any hint of German capitulation to French demands of easier money will be the end of the euro. The first sign of wavering, the first inkling that a compromise is afoot, will signal to the markets that the floodgates for a river of euros are open, that fiscal and monetary discipline are history, that inflation will be rampant, and that the euro will be worthless.

Germans will not pay for the profligacy of their neighbors. Otherwise, where would it stop? Any concession towards easy money will only reinforce the "moral hazard" of further risk-accepting behavior. It is a story as old as Aesop: the ant and the grasshopper. Germany entered into the euro under assurances that all members would conduct their economic affairs responsibly. If this is no longer the case, then Germany will reserve the right to withdraw. A former British chancellor of the exchequer agrees, insisting that Germany would sooner withdraw from the euro than see its integrity compromised. Another (not insignificant) factor is the survival of Angela Merkel as chancellor. Any suggestion of Merkel wavering at the prospect of easy money is tantamount to political suicide. So all the speculation that the ECB or the EFSF will "stabilize" (rescue) the euro is so much folderol.

The power calculus, then, favors Germany. France will be dragged along kicking and screaming, but two points suggest eventual French capitulation. One is that Germany will otherwise threaten to secede from the euro, which would put France in a nasty competitive economic position. And the second is that, without the unity embodied in a common currency, French hopes of ever again exerting influence on the world scene will have evaporated. Europeans understand that they cannot meet global challenges as individual nations because they are no longer great powers. As President Sarkozy conceded, "If Europe does not change quickly enough, global history will be written without Europe."

The original path to the common currency was through a convergence of economic policies. Nations would have budget deficits of no more than 3 percent of GDP, and total debt of no more than 60 percent of GDP. If euro members had stuck to these criteria, they would be in dandy shape now. So a return to that mechanism, with additional penalties for non-compliance, might work. The problem is to create binding agreements.

On the question of enforcement, one possibility mentioned is an automatic increase in taxes to offset a budget deficit beyond acceptable limits. Other devices to ensure compliance with EU oversight of national budgets are available for the same purpose. These sanctions would be imposed by a central authority that can override national budget decisions. The European Court of Justice and the European Commission have been suggested as ultimate arbiters, but such supranational enforcement has its limits in a union of sovereign states.

Sovereign governments may oppose such measures for domestic political reasons. As long as sovereignty remains, national governments may negate previous agreements. Even within national governments, as in the U.S. Congress, existing legislatures may negate the agreements of previous legislatures. Therefore, a more severe penalty is required. 

The ultimate penalty for non-compliance is, of course, expulsion. The eurozone could expel any country that fails -- after a suitable time period -- to adhere to budgetary guidelines set forth in a new agreement. The ultima ratio of economic union is expulsion, just as the ultima ratio of politics is war. It lurks behind every decision as the final alternative.

So the demise of the euro, as a proxy for the EU itself, is not on. Neither is a consolidation on the German federal model. A big push for more Europe is not in the cards now. The loss of that much national sovereignty is unrealistic, given the immature development of a European identity. That is why convergence of fiscal and economic policies is the most likely outcome, not complete structural reform.

But convergence will not save the euro if member states refuse to comply with agreed guidelines. Both France and Germany violated the guidelines in 2003, breaking through the barriers of 3 percent budget deficits and 60 percent debt for more than a year. If the founding members of the eurozone fail to comply or to remedy violations within prescribed time periods, then the euro will well and truly collapse. In a union of sovereign powers, political will is the ultimate arbiter.

Mark S. Sheetz is an Associate in the International Security Program at the John F. Kennedy School of Government of Harvard University. He is currently writing a book on France, Germany, and the Transformation of Europe.  

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Posted By Stephen M. Walt

If you're confused about where Europe is headed, join the club. Last week at a seminar a colleague with considerable knowledge of European affairs confidently told me "Don't sell your euros ... the Germans will eventually step in and rescue the whole thing." He may be right, but the head of the Bundesbank isn't stepping up yet and there are significant political obstacles to the level of integration that would be necessary to make the European Central Bank a true "lender of last resort."

My concern is more long-term. It's possible that Germany is bluffing, and that Europe's leaders will find a way to stagger through the current crisis. But as I've noted before, the underlying issue isn't just the rickety structure of the euro itself. In addition, it is whether economies like Greece and especially Italy can generate enough economic growth to make it plausible that they will ultimately repay their debts. An all-European guarantee (funded largely by Germany) might help in the near-term, because holders of Greek and Italian debt are less likely to panic if they think a bailout is available if needed and reduced fears of default will lower spreads on Italian and Greek bonds and thus allow them to continue to finance the debts they already have.

Unfortunately, economic growth in the entire eurozone is sluggish, and troubled economies like Italy aren't likely to see sharp increases in growth, especially if they are being forced to adopt austerity budgets that shrink public sector spending and/or throw more people out of work. Plus, over the longer term most of Europe --including Greece and Italy -- are going to decline in population, while the median age will rise sharply. For example, Italy's population will decline by about 1 million by 2035 and its median age will rise from 43 today to nearly 50. A growing population of retirees and a shrinking number of active workers is not exactly a formula for robust economic growth, even in the best of circumstances.

Even if my friend is right and the Germans eventually go "all-in" to save the euro, isn't there likely to be a point where the more prosperous European countries are no longer willing to finance bailouts in perpetuity? And what if a situation arises where they aren't in such great shape themselves and aren't able to fund a bailout? This is where nationalism will really kick in: it is one thing for wealthy New Yorkers or Californians to subsidize poorer U.S. states more-or-less forever, because the subsidies are mostly hidden from public view and in the end we all think of ourselves as part of the same country. But I don't think the existing sense of common European identity is powerful enough to neutralize stubborn local nationalisms, even when the bond market is pushing in that direction. I continue to hope that Europe's leaders will find a way out, but I've yet to hear a convincing story that tells me how.

JOHANNES EISELE/AFP/Getty Images

Posted By Stephen M. Walt

The struggle to save the euro is beginning to look like a chase scene from an Indiana Jones movie. First, our hero dodges the landslide, then runs from the spear-wielding aborigines, then is surprised by a snake ("I hate snakes!"), then is pursued by well-armed Germans and has to escape on horseback, only to plunge over a waterfall, only to be captured by ... you get the idea.

So this week we had 48 hours of excitement after Greek Prime Minister George Papandreou announced he was going to hold a referendum on Greece's acceptance of the European bailout. Consternation reigned, and markets tumbled. And then he said, in the best tradition of Emily Litella: "Never mind." Markets rebounded, and the bus lurched on toward the next crisis.

As I've emphasized before, I'm no macroeconomist (although my respect for some of them has been dropping steadily since 2007). From my decidedly non-expert perspective, here's what I've concluded.

The real issue with respect to Greece and Italy (and thus, the euro) is whether genuine economic growth can be restored to these economies. All the bailouts and austerity and haircuts (i.e., voluntary reductions in debt) in the world won't help these states (and especially not Italy) if they can't generate enough economic growth to pay back what they owe. (Strict austerity is a problem here, by the way, because it reduces growth in the short term). If they don't grow they can't pay, which will place a lot of European banks at risk of major losses and maybe bankruptcies. And because this whole arrangement depends on confidence -- a debt is an asset if you think it will be repaid, but it's a loss if you believe it won't -- you'll get a credit event if the markets ever conclude that growth won't happen and the debts won't get repaid, and the euro is probably finished (at least in its present form). End of story.

So the fact that things have calmed down a bit (just as they do at the end of a good chase scene), doesn't tell us much about the future. All these diplomatic machinations to arrange rescue packages, etc., can buy time, but they won't solve the problem if economic growth does not return. And the big difference between this thriller and a Spielberg movie is that the script is being written as we go along and we have no guarantee of a happy ending.

Louisa Gouliamaki/AFP/Getty Images

Posted By Stephen M. Walt

Has it really come to this? That the fate of Europe's economy is in the hands of Silvio Berlusconi, whose career in Italian politics is closer to opera bouffe than responsible statesmanship? Whatever you think of the latest effort to save Europe and the Euro -- and I'm not that impressed -- this does not strike me as an encouraging sign. After all, Berlusconi first became Prime Minister in 1994 and he's served three terms since then. Since 1996, Italy has managed a pitiful 0.75 percent average growth rate, and its anemic economic performance is why there are lingering doubts about its ability to pay its debts. But hey: at least the problem is in the hands of someone with a proven track recordof double-dealing, indictments, sex scandals, and personal aggrandizement.

GEORGES GOBET/AFP/Getty Images

Posted By Stephen M. Walt

Everyone I read seems to agree that a big part of the solution to the Euro crisis would be the creation of more robust and well-funded European financial institutions. One of the barriers to moving ahead, however, is Germany's reluctance to bail out so-called profligate countries like Greece. Even though a Eurozone collapse would do great harm to Germany itself, a sense of moral outrage among ordinary Germans ("why should I have to pay for somebody else's irresponsible behavior?") is a potent political obstacle that German leaders will have to overcome if this is going to work out well.

I got a small but revealing personal glimpse into this issue today, when the reimbursement form for my recent trip to Berlin arrived by email. The conference I attended was partly supported by Germany's Nationale Akademie der Wissenschaften (National Academy of Sciences), which means that travel expenses must conform to the Bundesreisekostengesetz ("German Federal Travel Expenses Act"). The best part of the reimbursement process is the special form for taxi fare, which states ""Costs for taxi rides are only reimbursable under exceptional circumstances such as urgent official activities or compelling private reasons." Specifically, travelers will be reimbursed for taxi fare only if: 1) "necessary official and personal baggage weighs more than 25 kg"; 2) there is no public means of transport and the destination is beyond walking distance (defined as 2 kilometers); 3) the wait time for public transport exceeds one hour; 4) health reasons; or 5) they are traveling between 11 PM and 6 AM.  Note: the form also reminds you that "bad weather" or "lack of knowledge of a place" are not considered "exceptional circumstances."

I don't find this scrupulousness objectionable -- heck, forcing healthy people to walk a couple of kilometers might even be good for them, although making them do it in the rain or snow seems a bit heartless. But if this is how sensitive Germans are about taxi fare, you can see why they might be reluctant to bail out the billions of dollars of extra salaries and other indulgences that some of their Eurozone partners rang up over the past decade or more.

As it happens, I took only one taxi ride on my trip (from Logan Airport to my house), and I'm not going to ask for the money back. Call it my contribution to helping Europe get back on its feet. Not quite the Marshall Plan, perhaps, but one does what one can.

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Posted By Stephen M. Walt

I've been in Berlin since last Thursday, and it's been an interesting exercise in slightly rueful nostalgia. I lived in West Berlin for a semester in 1976, as part of an undergraduate overseas study program. It was the first foreign country I'd ever visited and one of the great formative experiences of my early adult life.

I've been back for very brief trips twice (in 1991 and again in 2007) yet this time I've found that my memories from that first trip aren't very reliable, and even supposedly familiar haunts look odd. Of course, this is partly because Berlin has been transformed by reunification -- most obviously in the areas where the Wall was -- but also because it has been thirty-five years. Cities can change a lot in that time, and my own memories have clearly faded with the passage of time. There are moments when the past comes come back vividly, as when I read the U-bahn (subway) map and recall the names of the stations on the route from my apartment to class, or when I heard the recorded announcement saying "zuruck bleiben!" just before the subway doors close. But apart from those Proustian moments, it mostly feels like I am visiting an unfamiliar place.

I took a walk last Thursday after I arrived, strolling from my hotel through the Tiergarten to the Holocaust Memorial -- which is very effective and moving, though not without controversy -- and then onto Pariser Platz. This is the area just east of the Brandenburger Tor, and it was an abandoned zone during the Cold War, with large empty spaces around the Wall itself. It has now been transformed into a vast and inviting public square, complete with fancy hotels, a Starbucks, the "Kennedy Museum," and other classic tourist attractions. There's a wonderful bit of not-quite-accidental symbolism in the fact that the British, French, and American embassies are all located there. These were the three Western powers that governed different German zones after World War II, and it is probably no accident that they ended up with this choice real estate in the very heart of reunified Berlin.  

Yesterday I wandered through some old haunts in the center of what was West Germany (Kurfurstendamm, Savigny Platz, Zoologischer Garten, etc.), and then took the subway out to a trendy neighborhood in the old East Berlin (Prenzlauer Berg). There the contrast with 35 years ago was really striking; my overwhelming sense of the old DDR was drab and monotonal grey ... but today this neighborhood is funky and energetic and artsy. And I kept reflecting on how successive German governments made rebuilding and restoring Berlin a national priority and actually pulled it off, even if it hasn't become an industrial or financial center again. I wonder what it would take to get the United States to do something like that.

By the way, the conference I attended on "Social Science and the Public Sphere" was quite enjoyable, and I learned a lot from several of the papers and from the ensuing discussion. Sociologist Michael Burawoy gave two presentations, one on different modes of knowledge ("professional," "critical," "policy," and "public") and another on the threats facing the modern university (#1: excessive regulation, on the British model, and #2: excessive marketization, on the U.S. model). Not sure he persuaded me completely, but lots to think about. There was also a fascinating paper on the history of economic thought by Norwegian economist Erik Reinert, showing how economics evolved in a path-dependent fashion and that there were several forks in the intellectual road where the field could have gone in a more historical, institutional, and diverse direction, instead of the individualist, rationalist, and hyper-mathematical course the field has taken (at least in North America). He also quoted a passage from philosopher Francis Bacon' The Advance of Learning on "degenerate knowledge" which could easily apply to lots of social science today:

Surely, like as many substances in nature which are solid do putrefy and corrupt into worms;--so it is the property of good and sound knowledge to putrefy and dissolve into a number of subtle, idle, unwholesome, and (as I may term them) vermiculate questions which have indeed a kind of quickness and life of spirit, but no soundness of matter or goodness of quality. This kind of degenerate learning did chiefly reign amongst the schoolmen, who having sharp and strong wits, and abundance of leisure, and small variety of reading, but their wits being shut up in the cells of a few authors (chiefly Aristotle their dictator) as their persons were shut up in the cells of monasteries and colleges, and knowing little history, either of nature or time, did out of no great quantity of matter and infinite agitation of wit spin out unto us those laborious webs of learning which are extant in their books. For the wit and mind of man, if it work upon matter, which is the contemplation of the creatures of God, worketh according to the stuff and is limited thereby; but if it work upon itself, as the spider worketh his web, then it is endless, and brings forth indeed cobwebs of learning, admirable for the fineness of thread and work, but of no substance or profit."

Yeah, what he said.

Economist Mark Thoma gave a nice presentation on his experiences as the author of a well-known economics blog, and historian Thomas Bender of NYU contributed a terrific paper on the evolution of the social sciences in the United States. Among other things, I learned from it that when Johns Hopkins University pioneered the Ph.D. degree here in America, it was not intended primarily as a credential for future academics. Instead, Bender writes, "it was intended to instill in [recipients] ‘the mental culture' that would serve them in careers in ‘civil service,' ‘public journalists' or, more generally, the ‘duties of public life.'" In other words, it took another few decades to create the inward-looking and frequent navel-gazing enterprises that the social sciences have become.

The audience offered up some challenging questions, and the other participants were a stimulating and likeable group. All in all, well worth the trip.  And then yesterday I gave a lecture at the Deutsche Gesellschacft fur Auswartiges Politik (DGAP, or "German Council on Foreign Affairs"), summarizing a forthcoming article on the "twilight of the American era." (You can get a preliminary sense of my argument here). I enjoyed the talk and especially the questions, and we could easily have continued the conversation longer. At dinner with some DGAP colleagues we spent a fair bit of time talking about the future of the Euro, and I would say that most of them were more optimistic than I have been. In particular, they emphasized the difference between public policy and public opinion: yes, German popular opinion is hostile to further bailouts, but German politicians understand that at the end of the day, letting Greece go down the tubes would be bad for everyone, including Germany. So long as they can make further aid conditional on genuine reforms, eventually the deal will get done. We'll see.

A final comment from the perspective of someone who bikes to work daily in Boston: Berlin is a wonderful city for bicyclists and there are lots of them. For one thing it's mostly flat, and doesn't get snow like we do in New England. But the Berliners have also gone to great lengths to make bike travel easy and safe, with dedicated lanes on streets and or sidewalks. And confirming stereotypes of Teutonic orderliness, you find most of the cyclists observing all the traffic regulations, including waiting a street lights even when there are no cars around and it would perfectly safe to cross. Definitely not instinctive scofflaws like me. Boston has been trying to do something similar for its cyclists, but let's just say we've got a ways to go. But once the price of gas gets high enough, maybe American cities will do more to encourage bicycle commuting. There will be less traffic, and we'd all be a lot healthier too.

I'm typing this from Lille, where I participated in a seminar on the "Arab spring" at the University and gave an evening lecture on U.S. Middle East policy and the role of the -- surprise -- Israel lobby.  We had a good discussion, and the students asked some excellent questions. And now home to Boston, where I have a pile of neglected duties waiting to greet me.

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Over at the Belfer Center's "Power and Policy" blog (a relatively new website which is well worth perusing), my colleague Dick Rosecrance has taken issue with my earlier post on Europe, the European Union, and transatlantic relations. Dick is a friend, a highly accomplished scholar, and a great asset to the Kennedy School. His challenge to my analysis is therefore welcome, though I didn't find it convincing.

For starters, Dick begins his sally by misrepresenting my position. Contrary to what he writes, I did not "consign the European Union to the trashheap of history." Indeed, I made it clear that I expected the European Union to remain intact for some time to come. My point was simply that the high points of European influence, EU unity, and transatlantic security cooperation were now behind us, and that U.S. policymakers ought to take these developments into account. I might add that I think U.S.-European relations will be more harmonious if both sides of the Atlantic have more realistic expectations about each other, instead of acting as if we are still in the heyday of the Cold War. And no, I don't think recent events in Libya are going to alter this trajectory.

Dick makes three main assertions in the rest of his response. First, he reminds us that Europe is the largest economic unit on earth, with a combined GDP that is larger than the United States.  Its power would be even more impressive, he suggests, if it imitated the early American republic and became politically united. This is undeniably true in theory, just as I would be Wimbledon champ if I could play tennis better than Nadal, Federer, or Djokovic. The problem is that Europe isn't like the early American republic, and a true "United States of Europe" is not going to happen in our lifetimes.

Second, he says that "in today's world, economics largely determines politics." Dick is hardly the only person who believes this, but has he noticed all the ways that politics -- pure and simple -- keeps intruding into economic affairs? Were it not for politics, managing Europe's debt crisis would be relatively simple. Absent politics, we would have had better financial regulation here in the United States and we wouldn't have had that 11th hour melodrama over raising the U.S. debt ceiling. If politics were as irrelevant as he suggests, it wouldn't have been seventeen years since the last successful multilateral trade agreement and the Doha Round would not have been a bust. If the desire for economic efficiency and wealth consistently trumped politics, most of the conflicts that still trouble us would have been resolved long ago.

Third, Dick argues that the United States is going to need Europe to counterbalance a rising China. Note the contradiction here: after telling us that economics dominates politics, he proceeds to justify a grand strategic partnership on pure balance-of-power considerations. If economics were all that mattered, we could just spend our time worrying about global trade and investment and there'd be no need to think about China's relative power at all.

Equally important, there is no reason to think that Europe is going to get into the business of balancing China in a serious way. The separate European nations have few strategic interests in Asia and hardly any capacity to project power there. They are far more likely to see China as a market. If the United States were to go to its NATO allies in 2020 and ask for help preserving maritime access in the South China Sea, it would probably get Gallic shrugs of indifference, pious statements of German pacifism, and elegant expressions of English equivocation, and then the diplomats and trade reps would hop the next flight to Beijing. What the United States won't get is any serious help from Europe.

States balance against threats, and one key component of threat is geographic proximity. If the United States decides to balance China--based on the long-range desire to remain the world's only regional hegemon -- and if it needs allies to help it accomplish that task, the place to find them is Asia, not Europe.

Posted By Stephen M. Walt

I gave a talk in Washington the other day about the future of the EU and transatlantic relations more generally, and I thought FP readers might be interested in what I had to say.  Here's a short summary of what I said. 

I began with the rather obvious point that the highwater mark of Europe's global influence was past, and argued that it would be of declining strategic importance in the future. The logic is simple: After dominating global politics from roughly 1500 to 1900, Europe's relative weight in world affairs has declined sharply ever since. Europe's population is shrinking and aging, and its share of the world economy is shrinking too. For example, in 1900, Europe plus America produced over 50 percent of the world economy and Asia produced less than 20 percent. Today, however, the ten largest economies in Asia have a combined GDP greater than Europe or the United States, and the Asian G10 will have about 50 percent of gross world product by 2050.

Europe's current fiscal woes are adding to this problem, and forcing European governments to reduce their already modest military capabilities even more. This isn't necessarily a big problem for Europeans, however, because they don't face any significant conventional military threats. But it does mean that Europe's ability to shape events in other parts of the world will continue to decline.

Please note: I am not saying the Europe is becoming completely irrelevant, only that its strategic importance has declined significantly and that this trend will continue.

Second, I also argued that the highwater mark of European unity is also behind us. This is a more controversial claim, and it's entirely possible that I'll be proven wrong here. Nonetheless, there are several obvious reasons why the EU is going to have real trouble going forward.

The EU emerged in the aftermath of World War II. It was partly intended as a mechanism to bind European states together and prevent another European war, but it was also part of a broader Western European effort to create enough economic capacity to balance the Soviet Union.  Europeans were not confident that the United States would remain engaged and committed to their defense (and there were good reasons for these doubts), and they understood that economic integration would be necessary to create an adequate counterweight to Soviet power.

As it turned out, the United States did remain committed to Europe, which is why the Europeans never got serious about creating an integrated military capacity. They were willing to give up some sovereignty to Brussels, but not that much. European elites got more ambitious in the 1980s and 1990s, and sought to enhance Europe's role by expanding the size of the EU and by making various institutional reforms, embodied in the Maastricht and Lisbon treaties. This broad effort had some positive results -- in particular, the desire for EU membership encouraged East European candidates to adopt democractic reforms and guarantees for minority rights -- but the effort did not lead to a significant deepening in political integration and is now in serious trouble. 

Among other things, the Lisbon Treaty sought to give the positions of council president and High Representative for Foreign Affairs greater stature, so that Europe could finally speak with "one voice." Thus far, that effort has been something of a bust. The current incumbents -- Herman von Rompuy of Belgium and Catherine Ashton of Britain -- are not exactly politicians of great prominence or clout, and it is hardly surprising that it is national leaders like Nicolas Sarkozy of France and Angela Merkel of Germany that have played the leading roles in dealing with Europe's current troubles. As has long been the case, national governments remain where the action is.

Today, European integration is threatened by 1) the lack of an external enemy, which removes a major incentive for deep cooperation, 2) the unwieldy nature of EU decision-making, where 27 countries of very different sizes and wealth have to try to reach agreement by consensus, 3) the misguided decision to create a common currency, but without creating the political and economic institutions needed to support it, and 4) nationalism, which remains a powerful force throughout Europe and has been gathering steam in recent years.

It is possible that these challenges will force the EU member-states to eventually adopt even deeper forms of political integration, as some experts have already advised. One could view the recent Franco-German agreement on coordinating economic policy in this light, except that the steps proposed by Merkel and Sarkozy were extremely modest. I don't think the EU is going to fall apart, but prolonged stagnation and gradual erosion seems likely. Hence my belief that the heyday of European political integration is behind us.

Third, I argued that the glory days of transatlantic security cooperation also lie in the past, and we will see less cooperative and intimate security partnership between Europe and America in the future. Why do I think so?

One obvious reason is the lack of common external enemy. Historically, that is the only reason why the United States was willing to commit troops to Europe, and it is therefore no surprise that America's military presence in Europe has declined steadily ever since the Soviet Union broke up. Simply put: there is no threat to Europe that the Europeans cannot cope with on their own, and thus little role for Americans to play.

In addition, the various imperial adventures that NATO has engaged in since 1992 haven't worked out that well. It was said in the 1990s that NATO had to "go out of area or out of business," which is one reason it started planning for these operations, but most of the missions NATO has taken on since then have been something of a bust.  Intervention in the Balkans eventually ended the fighting there, but it took longer and cost more than anyone expected and it's not even clear that it really worked (i.e., if NATO peacekeepers withdrew from Kosovo tomorrow, fighting might start up again quite soon).  NATO was divided over the war in Iraq, and ISAF's disjointed effort in Afghanistan just reminds us why Napoleon always said he liked to fight against coalitions. The war in Libya could produce another disappointing result, depending on how it plays out. Transatlantic security cooperation might have received a new lease on life if all these adventures had gone swimmingly; unfortunately, that did not prove to be the case. But this raises the obvious question: If the United States isn't needed to protect Europe and there's little positive that the alliance can accomplish anywhere else, then what's it for?

Lastly, transatlantic security cooperation will decline because the United States will be shifting its strategic focus to Asia. The central goal of US grand strategy is to maintain hegemony in the Western hemisphere and to prevent other great powers from achieving hegemony in their regions. For the foreseeable future, the only potential regional hegemon is China. There will probably be an intense security competition there, and the United States will therefore be  deepening its security ties with a variety of Asian partners. Europe has little role to play in this competition, however, and little or no incentive to get involved. Over time, Asia will get more and more attention from the U.S. foreign policy establishment, and Europe will get less.  

This trend will be reinforced by demographic and generational changes on both sides of the Atlantic, as the percentage of Americans with strong ancestral connections to Europe declines and as the generation that waged the Cold War leaves the stage. So in addition to shifting strategic interests, some of the social glue that held Europe and America together is likely to weaken as well.

It is important not to overstate this trend -- Europe and America won't become enemies, and I don't think intense security competition is going to break out within Europe anytime soon.  Europe and the United States will continue to trade and invest with each other, and we will continue to collaborate on a number of security issues (counter-terrorism, intelligence sharing, counter-proliferation, etc.). But Europe won't be America's "go-to" partner in the decades ahead, at least not the way it once was.

This will be a rather different world than the one we've been accustomed to for the past 60 years, but that's not necessarily a bad thing. Moreover, because it reflects powerful structural forces, there's probably little we can do to prevent it. Instead, the smart response -- for both Americans and Europeans -- is to acknowledge these tendencies and adapt to them, instead of engaging in a futile effort to hold back the tides of history.

Mark Renders/Getty Images

Posted By Stephen M. Walt

If you're like me, your attention this week has been focused on the gyrating stock market. That's not my area of expertise -- though my gut tells me that the wild swings of the past few days are mostly a reflection of uncertainty -- and I won't try to tell you what it means or how you can profit from all this turmoil. (If I had the answer for that, I'd have taken my wife's advice and moved our retirement funds into cash or Treasuries a couple of weeks ago. Oh well.) 

Overall, I remain a long-term optimist about America's global position, because the United States still has lots of innate advantages and most of our current problems stem from self-inflicted wounds (stupid wars, threat inflation, a warped tax code, too much money corrupting politics, etc.). Compared with a lot of other countries, however, the United States remains geopolitically secure, wealthy, and technologically advanced. It has excellent higher education and a relatively young and growing population (especially when compared to most of Europe, Russia, or Japan). If we can just get our politics and our strategy right we'll be fine, though I admit that this is a big if.

So instead of brooding about my portfolio, I've been thinking about the Big Uncertainties that are going to shape events in the years to come. It's a subject I've visited before (see my "Five Big Questions" from July 2010), so you can consider this a partial update.

Here are my Five Big Uncertainties for 2011.

1. The World Economy: Meltdown or Malaise? Obviously, a major driver of the near-to-medium term environment will be whether we get another major economic slump. See FP colleague Dan Drezner for the nightmare scenario here, and especially bear in mind the danger that a serious slide would almost certainly lead to even more poisonous politics in lots of different places. (Like any good economist, Dan presents the optimistic scenario here, which tells you why President Kennedy used to complain that he wanted to meet a one-handed economist). The alternative that I foresee, alas, is not a scenario of rapid economic recovery. Instead, the best we can hope for is at least a couple more years of very modest economic growth. But at this point I'd take that in a heartbeat.

Read on

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Posted By Stephen M. Walt

I was in New York City the past two days and left my laptop in my bag for a change. The main purpose of the trip was to pick up my daughter (who was flying home from a language immersion program), but we did manage to sneak in a benefit concert at the Beacon Theater. Go here for a peek at The Life I Could Have Had if I Had Talent.

Along the way I've been reflecting more on the shooting/bombing in Norway and the debates that have surfaced since last weekend. One of the striking features of Anders Breivik's worldview (which is shared by some of the Islamophobe ideologues who influenced his thinking) is the idea that he is defending some fixed and sacred notion of the "Christian West," which is supposedly under siege by an aggressive alien culture.

There are plenty of problems with this worldview (among other things, it greatly overstates the actual size of the immigrant influx in places like Norway, whose Muslim minority is less than 4 percent of the population). In addition, such paranoia also rests on a wholly romanticized vision of what the "Christian West" really is, and it ignores the fact that what we now think of as "Western civilization" has changed dramatically over time, partly in response to influences from abroad. For starters, Christianity itself is an import to Europe -- it was invented by dissident Jews in Roman Palestine and eventually spread to the rest of Europe and beyond. I'll bet there were Norse pagans who were just as upset when the Christians showed up as Breivik is today.

Moreover, even Christian Europe is hardly a fixed cultural or political entity. The history of Western Europe (itself an artificial geographic construct) featured bitter religious wars, the Inquisition, patriarchy of the worst sort, slavery, the divine right of kings, the goofy idea of "noble birth," colonialism, and a whole lot of other dubious baggage. Fundamentalists like Breivik pick and choose among the many different elements of Western culture in order to construct a romanticized vision that they now believe is under "threat." This approach is not that different from Osama bin Laden's desire to restore the old Muslim Caliphate; each of these extremists is trying to preserve (or restore) an idealized vision of some pure and sacred past, based on a remarkably narrow reading of history.

In fact, any living, breathing society is driven partly by its "inner life," but also inevitably shaped by outside forces. Indeed, as Juan Cole notes in a recent post, most societies benefit greatly from immigration, especially if they have strong social institutions (as Norway does) and the confidence to assimilate new arrivals into the existing order while allowing that order to itself be shaped over time. What is even more striking about conservative extremists like Breivik is their utter lack of confidence in the very society that they commit heinous acts trying to defend. On the one hand, they think their idealized society is far, far better than any alternative, which is why extreme acts are justified in its supposed defense. Yet at the same time they see that society as inherently weak, fragile, brittle, and incapable of defending itself against its cruder antagonists.

Read on

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Posted By Stephen M. Walt

A quick footnote to the tragic events in Norway.  Although as Greenwald points out, various unreliable sources were quick to assume that the attacks was the work of al Qaeda or some other Islamist group, there was in fact good reason to suspect from the start that right-wing extremists were really to blame. As I noted back in February, a 2010 study to Europol had shown that the vast majority of "terrorist" incidents in Europe were the work of European anarchist groups, and only a tiny fraction had anything to do with Islam. Here's what I said back then:

In 2009, there were fewer than 300 terrorist incidents in Europe, a 33 percent decline from the previous year. The vast majority of these incidents (237 out of 294) were conducted by indigenous European separatist groups, with another forty or so attributed to leftists and/or anarchists. According to the report, a grand total of one (1) attack was conducted by Islamists. Put differently, Islamist groups were responsible for a whopping 0.34 percent of all terrorist incidents in Europe in 2009. In addition, the report notes, ‘the number of arrests relating to Islamist terrorism (110) decreased by 41 percent compared to 2008, which continues the trend of a steady decrease since 2006.'''


So if journalists and right-wing bloggers had been paying attention, they might have guessed that it was far more likely that a European was responsible. But they didn't, which tell you a lot about their mind-set and motivations.

Moreover, as Matt Yglesias observes over on his blog, the attacks in Norway also cast doubt on the whole "safe haven" argument that has been used to justify our protracted, costly, and counter-productive effort to reorder political and social relations throughout Central Asia.  Norway was far better governed than Afghanistan or Pakistan is likely to be in our lifetimes, yet that didn't prevent a local extremist from perpetrating a horrific crime, inspired at least in part by the hyperventilating hatred disseminated by prominent rightwing Islamophobes here in the United States. Put differently, the United States could stay in Afghanistan and Pakistan for the next century, and it would still be unable to guarantee that this territory didn't contain some hostile cells of extremists bent on attacking the United States or its allies. And even if we could, we obviously couldn't be sure that bad guys weren't in Yemen or Oslo or Bakersfield or Des Moines or Portland or Key West, or anywhere else.

JONATHAN NACKSTRAND/AFP/Getty Images

Posted By Stephen M. Walt

As soon as the shocking and tragic news from Norway hit the airwaves, it was entirely predictable that various right-wing Islamophobes would type first and think later. They were so eager to exploit the tragedy to peddle their pre-existing policy preferences that they blindly assumed the acts had to have been perpetrated by al Qaeda, by its various clones, or by some other radical Muslim group.

This is the sort of bias one expects from an ideologue like Jennifer Rubin (who gets taken to task for her rush-to-judgment by James Fallows here). Sadly, it is also not out of character for the supposedly respectable Wall Street Journal, whose editorial page has been a reliable source of threat-mongering and distortion for years. Even as Norwegian officials were cautioning that they had no reason to suspect Islamist groups, the Journal was plunging ahead with an editorial entitled "Terror in Oslo," which drew the following utterly bogus conclusion:

Norway certainly did not buy itself much grace from the jihadis for staying out of the Iraq war, or for Prime Minister Jens Stoltenberg's demand that Israel open its borders with Gaza, or for his calls for a Palestinian unity government between Fatah and its terrorist cousin Hamas.

Norway can do all this and more, but in jihadist eyes it will forever remain guilty of being what it is: a liberal nation committed to freedom of speech and conscience, equality between the sexes, representative democracy and every other freedom that still defines the West.  For being true to these ideals Norwegians have now been made to pay a terrible price."

Given that remarkable statement, the Journal's editors must have been deeply disappointed to learn that the person who was actually charged in the case, Anders Behring Breivik, was not in fact a jihadi, a critic of Israel, or even a Muslim. Instead, he is a right-wing Norwegian Islamophobe who is reportedly obsessed with the dangers of multi-culturalism and a contributor to extremist websites like Jihad Watch and Atlas Shrugs.  In other words, he's the sort of person who might well subscribe to the Wall Street Journal not for its coverage of the business world, but for its predictably hardline editorial "insight."

As I write this (Saturday noon EDT), the editorial has still not been removed from the WSJ website and no apology or retraction has been issued.  The Journal and its editors are obviously free to continue to sow the seeds of hatred and paranoia, but the rest of us are equally free to view them with appropriate contempt.   And let us also take time to reflect on Norway's sorrow, and to remember that hatred and violence can erupt from many directions.

UPDATE:  Obviously aware of the egg on its face, the Journal has posted a rewritten version of the editorial on its website here. Note the marked absence of any apology for its initial rush-to-judgment. You can find a fascimile of the original editorial here. And for an interesting commentary suggesting that right-wing hate-mongering websites might have contributed to the murderous mind-set behind the attack, see Paul Woodward's War in Context here.

Posted By Stephen M. Walt

About 13 months ago, I returned from a visit to Greece and said I was increasingly pessimistic about prospects for a successful turnaround there. Money quotation (emphasis added):

In order to stave off default, Greece needs to trim its budget drastically (which means throwing people out of work or reducing their incomes), while at the same time stimulating economic growth. The problem is that it's hard to do both at the same time, because cutting the budget (or collecting taxes more efficiently) reduces domestic demand and thus chokes off economic growth. And because Greece is part of the Eurozone, it can't stimulate export-led growth by the normal expedient of devaluing its currency. (The sinking Euro helps globally, but not within the Eurozone itself.) Greece's prospects for economic growth are further handicapped by conditions elsewhere in Europe: It will be hard for Greece to grow if the rest of Europe is stagnant. If the government's efforts at restructuring lead to widespread political unrest, then chances of robust growth are even slimmer. And once the financial markets begin to realize all this, bond spreads will increase again and we will be back in the same soup we were in a few weeks ago.

All of which leads me to conclude that Europe as a whole is going to be in difficult shape for quite some time, unless EU officials figure out a way to do a lot more than they have done so far. And a double-dip European recession could trigger a double-dip recession here in the United States, which would have profound economic and political consequences (e.g., goodbye to Barack's second term?)."

Back then, I was surprised that anybody thought differently (i.e., that anyone believed the initial bailout would work). It didn't, of course, and Greece, the bankers, and the EU are now back in the soup.  As the New York Times reports (my emphasis):

"Analysts and Socialist Party insiders said that Mr. Papandreou seems likely to succeed in passing the austerity package, having secured more support within the party. But economists are nearly unanimous in predicting the loans will only buy time, but do nothing to pull the country out of its economic morass and potential default.

Or as Ken Rogoff, co-author of a terrific study of financial crises ("This Time Is Different: Eight Centuries of Financial Folly), points out: "There is every possibility that at the end of this Greece is going to default anyway."

If that's true (and it sounds right to me) then Greece may have no alternative but to abandon the Euro and leave its creditors (and the Eurozone countries) to their fates. I'm no expert on these matters, but most of what I've read so far tells me that this would be very bad news for the European economy, and for us. But you can relax, because at least things are going well in Libya and Afghanistan and Pakistan and the Mideast and Japan and ...

LOUISA GOULIAMAKI/AFP/Getty Images

I'm off to Europe this evening, and blogging will be light-to-non-existent for the rest of the week, depending a bit on internet access. First stop is Dublin, where I'll be giving a lecture on Obama's foreign policy at the Institute for International and European Affairs. It's not a particularly upbeat assessment-though I will give Obama credit for some positive steps -- and more and more I think he's in for a real dog-fight in the 2012 election. 

We all know that he inherited a bleak economic picture, two losing wars, and an American whose global image was in free-fall. He's done a lot to repair America's overall image, and the administration's initial response to the financial crisis clearly averted a more serious and lasting meltdown. But with the passage of time, it's become clearer that Obama is more comfortable with bold rhetoric than bold action. With some rare exceptions -- the raid that took out Osama bin Laden being an obvious example -- it's been a pretty tepid and unimaginative presidency and at a moment in history where bigger and harder decisions were needed. He put together a financial rescue package, but it was smaller than necessary and it didn't do much to reform the overall financial system. He got a health care bill passed, but in a watered-down form that won't make that much difference to health care costs. And apart from the initial stimulus package, there wasn't a sustained focus on job creation, which is coming back to haunt him now.

On foreign policy, he's getting out of Iraq, but very slowly. Instead of cutting our losses in Afghanistan and focusing on more serious problems, he chose a half-hearted "surge" instead and will have trouble selling Afghanistan as a success story when he campaigns next year. He gives great speeches on the Middle East but doesn't follow through with policy change, so he can't claim any progress there either. He's done better in strengthening ties in Asia and I get the impression that he'd like to get us out of our current quagmires and focus even more attention there  (which would be smart), but then he sends us into a strategically pointless intervention in Libya.  

In short, it's not clear exactly what big achievements Obama is going to tout when he heads out on the hustings next year. You don't get much credit for helping avert disasters that didn't actually happen (like a spiral into another Great Depression), and it's already clear that the GOP field is going to beat him up repeatedly over the sluggish economy and the high unemployment numbers. And don't expect the Republican House to lift a finger to help on that front, no matter how many Americans suffer as a result. Foreign policy issues won't play much role in the campaign, but it's hard for me to think of any big wins that will sway many voters, and most people will have forgotten about our getting bin Laden by the time they enter the voting both. So if I were one of the people who write for FP's' "Shadow Government," I'd be keeping my CV up-to-date.

After spending Bloomsday sightseeing in Dublin (a city I've never visited), I'm off to a conference in France on Friday. The topic is "The Middle East and World Order: A Continued Focus of Transatlantic Concern," and there will be an interesting collection of people from Europe, the Middle East and the United States in attendance. I'm especially interested to hear how these problems look from outside the United States, and although the proceedings are "off-the-record", I'll try to pass along any pearls of wisdom (suitably anonymized) that I glean from the exchanges.   

MANDEL NGAN/AFP/Getty Images

Posted By Stephen M. Walt

Outgoing SecDef Robert Gates delivered a blunt message to America's NATO allies last week.  If they don't start pulling their weight, he warned, the alliance "faces a dim, if not dismal future." In particular, he said that public opinion in the United States will not support our continuing to subsidize European defense in an era where Asia merits greater attention and when the U.S. economy is performing poorly and our fiscal situation is especially parlous. Money quote:

I am the latest in a string of U.S. defense secretaries who have urged allies privately and publicly, often with exasperation, to meet agreed-upon NATO benchmarks for defense spending. However, fiscal, political and demographic realities make this unlikely to happen anytime soon, as even military stalwarts like the U.K have been forced to ratchet back with major cuts to force structure. Today, just five of 28 allies -- the U.S., U.K., France, Greece, along with Albania -- exceed the agreed 2 percent of GDP spending on defense. 

Regrettably, but realistically, this situation is highly unlikely to change."

Well, duh. NATO has been on borrowed time ever since the Soviet Union collapsed, because military alliances form primarily to deal with external threats and they are hard to hold together once the threat is gone. In a sense it is remarkable that NATO has persisted as long as it has, but that was mostly because the United States could afford to subsidize European security and because Washington saw NATO as a useful tool for maximizing U.S. influence in Europe.

The problems the alliance faces today have little to do with European fecklessness, American militarism, or the particular errors of individual leaders. The central problem here is structural: there's just not much of a case for a tightly integrated military alliance anymore, and not much reason for Europe to be armed to the teeth. Although both European and American defense intellectuals have worked tirelessly to invent new rationales for the alliance, none of them have been especially convincing.

Americans want Europe to spend more on defense, so that they can contribute more to our far-flung global projects. But why should they? Europe is peaceful, stable, democratic, and faces no serious external military threats. Its combined GNP exceeds ours, and the European members of NATO spend almost eight times more on defense than Russia does.   So where's the threat? The plain truth is that Europe has little reason to invest a lot of money on defense these days, no matter how much Americans implore them to, and so they turn a deaf ear to American entreaties.

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Posted By Stephen M. Walt

In an obvious example of "mission creep," France, Britain, and now Italy have decided to send military advisors to support the rebel army in Libya. While resolutely declaring the no ground troops will be sent, these NATO powers (and the United States), continue to move beyond the original limited purpose of the intervention and are openly seeking to unseat the Qadhafi regime completely.

This situation is a textbook illustration of what one might call the Intervention Paradox. Because there are no vital strategic interests at stake in the Libyan situation, outside leaders are reluctant to do whatever it takes to resolve the situation quickly. You don't hear Obama, Sarkozy, or Cameron declaring that they are going to call up reserves, redeploy forces from other commitments, or launch a direct invasion of Libya itself. They know that that mission isn't worth it, and that their own populations would quickly question the wisdom of such a massive operation.

Instead, intervening powers try to use as little force as possible, and seek to minimize their own casualties above all. After all, when there are no vital interests at stake, it is much harder to justify the loss of one's own soldiers. So they rely on airpower, not boots on the ground.  They'll send advisors and weapons, but not their own troops. But because the rebel army is a ramshackle operation, and because there are real limits to what NATO can achieve with airpower alone, this minimalist approach is more likely to produce a costly stalemate in which more Libyans die. Even if it eventually succeeds, going in small prolongs the fighting and does more damage to the people we are supposedly helping.

The other option, of course, is to use overwhelming force from the very beginning. Qaddafi's loyal forces might be effective against a poorly-trained rebel army, but they would be no match for a sizeable NATO force. But this isn't really the answer either, even if we had such forces readily available (and remember, the United States is already bogged down in other places). For one thing, doing it this way is a lot more expensive, and you're likely to lose some of your own people along the way. And once you've ousted the regime you own the country, and trying to put a society like Libya back together again would not be easy or cheap (see under: Iraq, Afghanistan). Given the divisions that are already apparent among the rebels themselves, and the absence of well-functioning social and political institutions, a post-Qaddafi Libya is likely to be a real headache. And there's always the risk that an insurgency will spring up, further inflating the costs.

Hence the paradox: if you go in light you get a protracted stalemate; if you go in big you end up with a costly quagmire. Under these circumstances you can understand why the intervening powers are tiptoeing their way in, but as noted above, that merely increases the danger that the civil war drags on.

There is a third option, however: great powers could be a lot more careful about where and when they used military power to try to determine who gets to run some foreign country. But that's an option that U.S. leaders seem to have forgotten.

GERARD JULIEN/AFP/Getty Images

Posted By Stephen M. Walt

 Mark Sheetz of Boston College offers the following guest post:

President Obama's handling of the Libyan crisis could have been worse, but not much worse.

The president had a perfect opportunity to push the Europeans into the lead on this issue but could not muster the sangfroid to call the Europeans' bluff. France and Britain were out front early on military intervention, yet the United States did not seize the opportunity to state the obvious, namely, that the Europeans could handle this one. The European Security Strategy is focused squarely on conflict management, "human security," and the defense of human rights. The European Union maintains a "Mediterannean partnership" with North African countries and a "neighborhood policy" that concerns stability and security on its southern and eastern flanks. A humanitarian crisis in Libya fits perfectly into European security concerns.

President Sarkozy of France was especially eager to show what Europeans could do.  He went out front and recognized a motley group of rebels as the legitimate government of Libya without consulting allies in either NATO or the European Union.  A recent article in Le Figaro gives a terrific account of Bernard Henry Lévy's involvement in the affair. Levy is a public intellectual and another vain French rooster strutting around looking for glory. Ever the opportunist, Levy found the rebels in Benghazi and hooked them up with Sarkozy, who pounced on the chance to be their champion to the rest of the world. 

The French and British recently joined together at Lancaster House to loudly proclaim European security cooperation in the joint use of aircraft carriers, expeditionary forces, and nuclear weapons. These two countries have the largest defense budgets and the most advanced military capabilities in Europe and can field forces that can pummel any African army, including Libya's, into submission.

Given that the United States has no vital interests of any kind to protect in Libya, the situation was tailor-made for Europeans to take the initiative and handle this one without us.  Yet the President could not leave well enough alone. He was somehow shamed into showing American "leadership." The story of how the Europeans managed to bait Obama into joining the "coalition" and supplying the vast bulk of military capabilities will be a fascinating one to unravel. 

In accepting the Nobel prize, President Obama declared that military force was justified on humanitarian grounds and that the defense of human rights was in the national interest.  Now he has set the precedent of waging war for third tier interests beyond the narrow scope of national security. In so doing, he has compromised the nation's security interest in non-proliferation. The key lesson that states like Iran, Syria, and Saudi Arabia will draw from the military intervention in Libya is to keep a nuclear development program if you have one and go get one if you do not. One has to believe that Qaddafi is now tormenting himself at night with the question: "Why did I ever agree to give up my WMD programs? 

Mark Sheetz is a fellow in International Security at the John F. Kennedy School of Government of Harvard University.

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Posted By Stephen M. Walt

This is a guest post by Sean Kay of Ohio Wesleyan University.

As the world goes green for St. Patrick' Day, it is good to reflect on what Ireland's experiences teach us. We might ask, why should a realist care about Ireland? What might be learned from the experiences of this small Island in the North Atlantic -- home to just 4.5 million people?

Realists care about strategy, of course, which is one good reason to ponder Irish history. Ireland was for centuries a key component of England's rear defense against the risk of foreign enemies. Realists also are keen to understand new tactics in warfare and anyone wishing to get a sense of how guerilla campaigns proceed -- and how state responses to them can backfire would be well advised to study Michael Collins and the Irish quest for independence. Add to that the personal risks to those who negotiate an exchange of land for peace -- Michael Collins to Yitzhak Rabin show this only too tragically. The Irish experience in managing its strategic relationship with Britain after independence -- by building tight transatlantic advocacy networks and by integrating into the European community -- also demonstrates how creative diplomacy can achieve major strategic goals.

Ireland is also an interesting case of a state applying realism and ideals in its foreign policy, a topic that realists and others have debated for decades. Ireland remained neutral in World War II because it wished to consolidate its independence and avoid conscription of its people into the British army. Nonetheless, Ireland cooperated in both overt and secret assistance to the allied powers -- likewise during the Cold War. Ireland also advocated the cause of self-determination for all nations at the United Nations -- out of moral sympathy, but also as a way to keep its own views towards Northern Ireland on the agenda of global politics. Ireland managed to show how small nations can lead on a range of issues from peacekeeping to nuclear proliferation. It is often forgotten, but the origins of the nuclear non-proliferation treaty can be found in speeches by the Irish foreign minister at the United Nations in the late 1950s.

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Posted By Stephen M. Walt

I've been thinking about how the international community should deal with the Libyan civil war, and like the Obama administration, I'm finding it hard to come up with a policy that leaves me completely satisfied. I'd like to see Qaddafi's regime replaced by a government that is less brutal, capricious, and inefficient, as well as one that would be more responsive to the desires and welfare of the Libyan people. And the sooner the better. For this reason, I support the various measures that have been taken to condemn Qaddafi's actions and to freeze his assets. We should also be open to providing humanitarian aid (such as food relief) to rebel-controlled areas, should that become necessary to avoid a large-scale humanitarian disaster.

At the same time, I'm cognizant that it is easier to take on new military commitments than it is to relinquish them -- even in the best of circumstances -- and that external intervention in civil conflicts often has unpredictable and unforeseen consequences. So instead of firm prescriptions, here are a few observations that have struck me as I've pondered.

For starters, let's acknowledge that the United States has no vital strategic interests at stake in the outcome of the Libyan struggle. Libyan oil production (about 1.6 million barrels/day prior to the recent violence) is valuable but not decisive, and can be made up by increased production in Saudi Arabia. Libya has no WMD (having been compelled to give up its various WMD programs by a protracted Western-led sanctions campaign), and it is not a significant military power. Qaddafi has no links to al Qaeda (in fact, he's been a target of al Qaeda sympathizers in the past) and few, if any allies in the rest of the world. Libya's population is less than 7 million, and its economy (apart from oil) is unimpressive. Despite Qaddafi's many unsavory qualities and hostile acts, most U.S. presidents ultimately concluded that he was not important enough to remove from power, though the Reagan administration did target his residence in a bombing raid back in the 1980s.

Thus, the U.S. (and international) interest here is humanitarian, not strategic, which does not by itself mean that we should do nothing. What is going on in Libya does not constitute genocide -- a deliberate attempt to exterminate a whole category of people -- but the government's actions are clearly brutal, inhumane, and almost certainly involve war crimes. It thus falls squarely under the heading of the "Responsibility to Protect" doctrine (R2P), a new norm of humanitarian intervention promulgated with some fanfare a few years ago. R2P says "where a population is suffering serious harm, as a result of internal war, insurgency, repression or state failure, and the state in question is unwilling or unable to halt or avert it, the principle of non-intervention yields to the international responsibility to protect" (my emphasis).

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Posted By Stephen M. Walt

My previous post on the future of the Euro has attracted some critical comments from various parts of the IR/IPE community, see here and here. My critics make some interesting points (though I found them a bit hard to follow), but their central argument is that these broad paradigms don't make sharply differing predictions about this issue. In other words, what happens to the Euro (or the EU itself) would be consistent with any of these paradigms, and so my original question was misplaced.

What's perhaps most interesting about the comments is that none of respondents seem to have gone and looked at the realist work that is most germane to this issue, and to which I alluded in one of my links.  I refer to the work of Sebastian Rosato of the University of Notre Dame, who has recently published an important book entitled Europe United: Power Politics and the Making of the European Community. (Full disclosure: Rosato took a course from me at the University of Chicago over a decade ago, but I left Chicago before he wrote his thesis. His book was published in the book series that I co-edit, but I wasn't the editor who handled his manuscript)  

In any case, Europe United is a decidedly realist account of the EU's formation and evolution.  Rosato is also a pessimist about the fate of the Euro, on both purely economic but also what might be termed "power-political" grounds. Critics of my original post are correct that I don't have a "realist" theory on this issue, but Rosato does. (He also has a forthcoming article in International Security that lays out his arguments regarding the euro in more detail).

Without presuming to speak for him, I'd just make two points. First, as I made clear in my original post, I don't think the evolution of the euro or the EU will decide the validity of rival theoretical approaches to international relations. Despite my realist proclivities, I actually see some virtue in most approaches to international relations, and the trick is determining what weight to give each one and how to adjust the weights in different circumstances. In short, I stand by the views I expressed here.

Second, I still believe these rival perspectives do lead to different expectations about Europe's future course. Realism, liberalism, and constructivism all agree that states will cooperate in some circumstances, but realists are more skeptical about the scope and extent of cooperation and tend to see underlying power distributions and security concerns as central to the process, especially between major powers. Accordingly, a realist account of the EU would stress that these states agreed to constrain their own autonomy and sovereignty largely in response to an unusual power configuration (i.e., the Cold War), and as much for security reasons as for purely economic ones. The end of the Cold War removed that power configuration, and we have seen the EU both expand and fray ever since. Germany's unwillingness to keep subsidizing profligate countries and European concerns about the implications of Germany's increasingly dominant role (as highlighted in this NYT article) are consistent with that view.

By contrast, liberal accounts of the EU emphasize the role of economic interdependence and welfare concerns as the main driving factor.  In this view, so long as high interdependence obtains, the EU has little choice but to find a way to stagger forward. Constructivist approaches offer a third alternative: the EU will survive because it has led to the emergence of a nascent "European" identity that is gradually trumping national loyalties, and so distributions of power and other traditional realist concerns aren't really relevant anymore.  

So we do have three contrasting views-one of them generally pessimistic about the EU and the euro, and two of them generally optimistic-and we can now wait for the passage of time to reveal which prediction is correct.

Bottom line: I don't think my original question was silly, but I am glad to have stimulated a bit of discussion.

Posted By Stephen M. Walt

It's not as though the world came to a halt while the Egyptian drama was keeping us glued to our laptops, and at least one interesting development is worth watching closely for a number of reasons. You all know that the EU has been facing a major crisis over the past several years, triggered by deep economic problems in Greece, and to a slightly lesser extent in Spain and Portugal. These troubles forced the eurozone countries to authorize a major financial rescue package last year and led some observers to question whether the euro itself might be at risk.

Over the past few months, however, German Chancellor Angela Merkel and French President Nicolas Sarkozy have been negotiating a joint proposal for deepening economic coordination within the EU (and especially the eurozone) in an attempt to solve some of the problems that produced the crisis in the first place. (The basic issue is that the eurozone countries share a currency, but do not have fully integrated tax systems, labor markets, or fiscal systems, thereby making it much harder for them to adjust when one economy gets into trouble). 

Not only does this question have obvious implications for politics and economics in Europe itself, but it also raises some fundamental questions about IR theory and might even be a revealing test of "realist" vs. "liberal" perspectives on international relations more generally. Realists, most notably Sebastian Rosato of Notre Dame, have been bearish about the EU and the euro since the financial crisis, arguing that European member states were more likely to pursue their individual national interests and to begin to step back from some of the integrative measures that the EU had adopted in recent years. 

By contrast, institutionalists, and EU-philes more generally, have suggested that the only way forward was to deepen political integration within Europe. The basic idea here is that economic integration is central to European economic health and one of the keys to continued amity within Europe. Equally important, any attempt to leave the eurozone or to dismantle the euro itself would cause an immediate collapse of the currency (and plunge several European states into even deeper crisis). In this view, there's no going back; Europe can only plunge ahead toward closer integration.   

As you'd expect, I've tended to be among the bears, in part because I don't think greater "policy coordination" between the member states can eliminate occasional fiscal crises and because I think nationalism remains a powerful social force in Europe. European publics won't be willing to keep bailing out insolvent members of the eurozone, and the integrative measures that have been proposed won't be sufficient to eliminate the need. The original Merkel-Sarkozy proposals got a pretty hostile reception when they were rolled out, and Merkel's hopes of pushing them through probably declined when her designated choice to head the European Central Bank (Axel Weber) withdrew from consideration. So it remains to be seen how much of their program will actually get adopted.

But the EU has surprised doomsayers before, and I can't quite convince myself that a collapse of the eurozone is inevitable. So what we have here is a nice test of two rival paradigms, and students of international politics should pay close attention to how this all plays out. But remember: Like all social science theories, no general theory of international politics or foreign policy is right 100 percent of the time. Accordingly, the future evolution of the EU/eurozone won't provide a decisive test that will validate one approach completely and render the other view totally irrelevant and obsolete. Proponents of each perspective will probably try to claim total victory if events turn their way, but that's not really the way that social science operates.

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Posted By Stephen M. Walt

Ever since 9/11, Islamophobia has been a recurrent problem in a number of Western societies, including the United States. It's been fueled by opportunistic politicians, hate-mongering bloggers, and any number of the other usual suspects. The lingering fear of Islam undergirds the present concerns that the turmoil in Egypt might give groups like the Muslim Brotherhood greater political influence there.

Trying to inject reason and evidence into this sort of debate is usually futile, but I do wish to report some good news. Remember the avalanche of Muslim-based terrorism that was about to descend upon the West? Well, according to the EU's 2010 Terrorism Situation and Trend Report, the total number of terrorist incidents in Europe declined in 2009. Even more important, the overwhelming majority of these incidents had nothing whatsoever to do with Islam.

The report is produced by Europol, which is the criminal intelligence agency of the European Union. In 2009, there were fewer than 300 terrorist incidents in Europe, a 33 percent decline from the previous year. The vast majority of these incidents (237 out of 294) were conducted by indigenous European separatist groups, with another forty or so attributed to leftists and/or anarchists. According to the report, a grand total of one (1) attack was conducted by Islamists. Put differently, Islamist groups were responsible for a whopping 0.34 percent of all terrorist incidents in Europe in 2009. In addition, the report notes, "the number of arrests relating to Islamist terrorism (110) decreased by 41 percent compared to 2008, which continues the trend of a steady decrease since 2006."

I know there are lot of people getting rich fueling Islamophobia, but we'd really all be better off if they would focus their attention to anarchists, or maybe separatist groups like ETA. The report isn't naive or Panglossian about Islamic radicalism, and it emphasizes that there are still extremist groups with worrisome ambitions. But their sifting of the data does put the actual danger in perspective and serves as a valuable corrective to the careless threat inflation that has become all too common over the past decade.

Getty Images.

Posted By Stephen M. Walt

So far, the big news from the NATO Summit in Lisbon is that the United States is trying to change the "sell by" date in Afghanistan. Instead of July 2011, the new deadline for victory is going to be sometime in 2014. Right.

In policy terms, this is called "kicking the can down the road." At that point, I'm betting we'll declare victory and get out, via the same sort of blue-smoke-and-mirrors ("the surge worked") that we used in Iraq. Except that as with Iraq,  there will still be thousands of U.S. troops there and we will still be spending billions of dollars trying to create a workable Afghan state. This is good news for corrupt Afghans, but not the U.S. taxpayer or, in the longer term, the U.S. military. 

Posted By Stephen M. Walt

In anticipation of the upcoming Lisbon summit, my IR course at the Kennedy School held a mock "Oxford-style" debate on NATO's future yesterday, and the results were sufficiently interesting that I thought I'd share them with you. 

The resolution was "Resolved: This House Believes NATO Should be Disbanded." We assigned a team of students to take the pro and con, and then allowed the rest of the class break into small groups to discuss what they had heard from each team. Each small group then offered its own views on the subject, followed by a general discussion.

The class voted on the resolution both before and after the presentations and discussion. If you're a big NATO fan, the good news is that only one student (out of approximately forty) voted in favor of the resolution to dissolve NATO before the discussion, and nobody supported it afterwards. So based on this admittedly non-random sample, I'd say NATO is in very good shape, at least when it comes to public support. (NB: my class is quite diverse, and has students from all over the world).

By the way, this result is not due to the superior performance of the team that argued against the resolution; both teams did a good job of presenting the various pros and cons. Nor was I shilling for NATO as I led the discussion; if anything, I was trying to get them to see the idea of dissolution as a serious option. Yet it was clear that the class was strongly disposed to favor NATO's continued existence even before the discussion began, and that view strengthened the more they talked and listened.

I'd attribute this result to several rather obvious factors:

First, NATO has been around for sixty years, and has acquired a nearly iconic status among students and practitioners of foreign policy. Institutionalists often emphasize the "sticky" nature of well-established organizations, and NATO has been such a familiar part of the international landscape that hardly anyone feels comfortable supporting a resolution calling for its dissolution.

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Posted By Stephen M. Walt

NATO is by common consensus the most successful political-military alliance in modern history. It has lasted longer than almost all others, incorporates more members, and it achieved its central purpose(s) without firing a shot. After the Cold War ended, it managed to redefine itself by taking on a broader array of security missions and has played a modest but useful role in the war in Afghanistan. By surviving well beyond the demise of the Soviet Union, it has also defied realist predictions that its days (or at least its years) were numbered.

Nonetheless, I share William Pfaff's view that NATO doesn't have much of a future.

First, Europe's economic woes are forcing key NATO members (and especially the U.K.) to adopt draconian cuts in defense spending. NATO's European members already devote a much smaller percentage of GDP to defense than the United States does, and they are notoriously bad at translating even that modest amount into effective military power. The latest round of defense cuts means that Europe will be even less able to make a meaningful contribution to out-of-area missions in the future, and those are the only serious military missions NATO is likely to have.

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Posted By Stephen M. Walt

Political leaders often draw negative inferences from an adversary's conduct, without realizing that their own behavior is not really that different. In particular, an opponent's past actions is frequently invoked to demonstrate how aggressive/dangerous/hostile/unstable they are, but when one's own country (or a close ally) acts in the very same way, we are quick to find ways to rationalize or justify it and we would never conclude that we might be equally aggressive or irrational.

Case in point: in an interview with Charlie Rose on Sept. 7, former British Prime Minister Tony Blair came close to endorsing the use of force against Iran, on the grounds that it would be too dangerous if Iran were some day to acquire a nuclear weapons capability. He explicitly rejected the idea that deterrence could work against a nuclear Iran in the same way that it worked against the Soviet Union, saying that "this regime is qualitatively different in their makeup. I see them now exporting terrorism, instability around the Middle East." (Blair also threw in an incorrect reference to one of Iranian President Mahmoud Ahmadinejad's offensive statements about Israel, based on the usual mistranslation, though what Ahmadinejad actually did say is still pretty objectionable).

But the main point is that Blair's reasoning here is faulty. For one thing, the Soviet Union exported a lot of terrorism and instability in its day (while murdering its own citizens in large numbers), yet containment and deterrence worked well for some forty years. Iran's past conduct, while far from perfect, isn't remotely in the same league with Stalin's or Brezhnev's.

Second, the United States has been a far greater source of "instability" in the Middle East in recent years than Iran (aided in no small part by tame puppets like Blair). Yet surely the former PM doesn't think that the U.S. and British "regimes" are "qualitatively different" (i.e., irrational or aggressive) and therefore cannot be trusted with nuclear weapons either.  

Third, countries like Iran rely on low-level strategies like covert support for terrorist organizations precisely because they don't want to take serious risks and don't have any other ways to try to protect their own interests. Far from indicating some sort of dangerous irrationality, therefore, this behavior might be evidence of fairly rational (if from our perspective, undesirable) behavior. 

In short, Blair's tacit support for military force in this case is without foundation.

Political psychologists sometimes attribute this sort of faulty reasoning to the "fundamental attribution theorem." The term refers to the tendency of people to attribute another actor's behavior almost entirely to that actor's dispositions or attributes, while ignoring the circumstances that might be forcing the actor in question to behave in a particular way. At the same time, we tend to see our own behavior as forced upon us by the situation we are in. In other words, my actions are forced upon me by my situation, but others are freer to do what they want and so their actions tell me a lot about their character and motives.

Something of the sort may be at work here, but I think it mostly tells you that Blair is not a very careful thinker. And like most politicians, he tends to see his conduct as virtuous and principled and the behavior of potential adversaries as a reflection of bad character. Even when the behavior is essentially identical, or arguably worse on our side.

And please: I'm not defending Iran's support for terrorist groups, justifying Ahmadinejad's hateful rhetoric, or playing down the oppressive nature of the clerical regime. Nor do I think it would be a good thing if Tehran got nuclear weapons. My only point is that if we are going to justify preventive war against Iran by using its past behavior to draw inferences about the nature of their future decision-making, we ought to pause for a second and consider what inferences others might reasonably draw from ours.

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Posted By Stephen M. Walt

I've been thinking about U.S. grand strategy again, and pondering some big questions that ought to be central to the debate on America's global role. Some of these big questions are researchable, others are by their very nature more speculative. How you answer some of them also depends on the theories you think are most powerful or applicable (i.e., realist theory suggests one set of answers, liberal approaches offer a different set, etc.), and the answers your get should have profound implications for what you think U.S. grand strategy ought to be.

So here are Five Big Questions about contemporary world politics.

1. Where is the EU project headed? The construction of the European Union was a major innovation in global politics, but new doubts have arisen about its long-term future. Pessimists such as Notre Dame's Sebastian Rosato believe the highwater mark of European unity has already been passed, while optimists like Princeton's Andrew Moravcsik think that Europe's current difficulties are likely to encourage further steps towards integration. The answer matters, because the re-emergence of genuine power politics within Europe could force the United States to devote more attention to a continent that some argue is "primed for peace" and no longer of much strategic concern.

2. If China's power continues to rise, how easy will it be to get Asian states to balance against it? Balance of power (or if you prefer, balance of threat) theory predicts that weaker states will try to limit the influence of rising powers by forming defensive alliances against them. China's rise is already provoking alarm in many of its neighbors, who look first to the United States and possibly to each other for assistance. But how strong will this tendency to balance be? If China gets really powerful, and the United States disengages entirely, some of China's neighbors might be tempted to bandwagon with Beijing, thereby facilitating the emergence of a Chinese "sphere of influence" in Asia. But if China's neighbors get support from each other and from the United States, then they'll probably prefer to balance. 

But here's the question: Just how much support does the United States have to provide, given that this issue ought to matter more to the Asian states than it does to us? If you think balancing is the dominant tendency (as I do), then the United States can pass a lot of the burden to Japan, India, Vietnam, etc. It can "free-ride" to some degree on them, instead of the other way around. But if you think these states will be reluctant to balance, then the United States might have to do a lot of the heavy lifting itself.  

To make matters more complicated still, both the United States and its Asian allies may be tempted to do some bluffing with each other, to try to get their allies to pay a larger share of the burden. Asian states will quietly threaten to realign or go neutral if they don't get more backing from the United States, and U.S. leaders may drop hints about disengagement if they don't get what they want from the allies they are helping protect. And this means figuring out just how large and iron-clad the U.S. commitment needs to be in order to sustain a future balancing coalition is a tricky business, and there will be lots of room for disagreement.

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Posted By Stephen M. Walt

The following commentary is by Professor Sebastian Rosato of Notre Dame University, who offers a decidedly pessimistic take on the EU's future. His new book,  Europe United: Power Politics and the Making of the European Community, will be published by Cornell University Press in January 2011.

The Untied States of Europe
by Sebastian Rosato

Everyone, it seems, has an opinion about Europe's debt crisis. Optimists, such as Princeton political scientist Andrew Moravcsik, declare that "it is too soon to count Europe out." The European Union has survived plenty of crises in its time and will get through this one as well. Pessimists like Harvard historian Niall Ferguson disagree, arguing that what has happened in Greece is likely to happen elsewhere. To his mind, Europe could be on the verge of a "disastrous Europewide banking crisis" that has the potential to bring down the euro.

Given the amount of ink spilled on the Greek drama, it's easy to lose sight of the real tragedy here. Regardless of how the EU navigates the current mess, the dream of a United States of Europe -- a political, military, and economic union from Lisbon to Latvia and the Baltic to the Balkans -- is over. What most people don't realize is that this has been the case for almost twenty years.

Nothing can be done to salvage the dream because deep structural forces are at work. The Europeans formed their union during the cold war to counter the awesome power of the Soviet Union. So when the USSR collapsed in 1991 there was suddenly no need for a United States of Europe.

The events of the past two decades show clearly that the end of the cold war also signaled the end of the European dream. EU member states have made no significant move toward political or military union and have begun to unravel their economic union. Absent a serious external threat to Europe, this process will continue. In the future, the current crisis will be remembered as just another warning sign that the dream was ending.

Although calls for a European union go back centuries, they were never seriously entertained before 1945. Nation states like France and Germany jealously guarded their sovereignty -- their right to independence.

It was only in the context of the cold war that the Europeans took a big step toward creating a United States of Europe. In 1951, France, Germany, Italy, and the Benelux states created the European Coal and Steel Community. In 1957, they extended the coal and steel model to the whole economy by forming the European Economic Community. Then, determined to preserve their new trading bloc, they fixed their currencies through the European Monetary Agreement. In less than a decade, they had established an economic union.

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Stephen M. Walt is the Robert and Renée Belfer professor of international relations at Harvard University.

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