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Glocal Economics | European Observer

Europe has frequently flirted with a more Anglo-Saxon model over the past several years, and the question has reared its head yet again. With the numerous events in 2005 that have been discrediting the European Union, this past week's affairs have once again sparked animosity between liberal-promoting Britain and the newly dismembered Germany.

Prime Minister Tony Blair of Britain called last Wednesday for a transformation of the European Union's economic approach and warned critics that Europe needed to embrace globalization if it wanted "to put the EU back together again." Many were skeptical of the next day's imminent happenings.

While Blair was preparing to host the informal summit meeting in Hampton Court - which was aimed at reviving Europe's stagnating economies and reconciling political differences - British officials were worried that German Chancellor Gerhard Schroeder would use his last European summit to spoil the show of his bene noire Tony Blair.

This summit, which was scheduled with the aspiration that newly-elected Chancellor Angela Merkel would arrive as Germany's representative, was once again not remembered for its good intentions of solving Europe's poor situation but was highlighted by Schroeder's last international speech. In this speech, Schroeder demonstrated no reluctance in expressing his fundamental disapproval of Tony Blair's six-month presidency of the EU. He insisted that leaders should promote freedom, prosperity and social justice, and claimed that "only someone who fulfils these criteria has the legitimacy to take Europe forward." It was clear that he did not consider Blair to be such a person.

After the rejection of the EU constitution, the difficult German election and the growing French Protectionism, one would think that the European leaders would want to gather once and for all to settle the increasingly lack of EU functionality. Concerns such as the ever-spreading bird flu requires for this community to work together and understand the true meaning and importance of a harmonized voice expressing the needs of Europe.

In effect, Blair seemed to understand these pressing urges and organized this informal summit in order to re-launch the paralyzed EU, which has had a rather chaotic year. But once Schroeder refused Blair's invite to the pre-summit dinner on Wednesday evening and then failed to show up on time the next day, it was evident that this summit wouldn't be constructive in any way.

In his attacks against the British Prime Minister, Schroeder clearly questioned Blair's authority to drive reform. Despite increasing global competition and aging populations, he urged the EU to "stick to its convictions" by promoting a social Europe. He also clearly denounced the "social dumping effect" that would take place if the EU were to enact an economic plan along the lines of the Anglo-Saxon model.

In addition, Schroeder took advantage of this summit as departing Chancellor to express an angry voice against the new globalization "shock absorber fund" that was conceived by the European commission and has backing by both Britain and France. This fund - which consists of propping up regions hit by job losses due to globalization and restructuring - is regarded by Schroeder as a fund that will help some member states restructure in the face of greater international competition but will reward failure and will be impossible to finance. He had even foreshadowed his intent to disgrace the summit organized by Blair when he told journalists earlier on in the week that he is "more than skeptical" about the British-backed centerpiece of the EU talks on globalization.

As Germany's Schroeder has unleashed a stinging attack on Blair during this informal EU summit, it is ironic to think that the embittered German leader, a former center-left "third way" ally of Blair, began his first term in office in 1998, eyeing the success of the reformist Blair and pledged a joint German-British drive to revive Europe's center-left.

This last desperate attempt by Schroeder to sink Blair seems to indicate a much larger trend. There are many implications that the social Europe adored by France and Germany is on its way out of European politics. Globalization has already put enough pressure on Europe to coordinate itself more liberally in order to survive. Additionally, the Eastern European countries that have recently entered the EU are longing to forget their communist past and will be more inclined to use the Anglo-Saxon model than the French social model.

With Merkel taking over the German Chancellor's position this month, it seems like France will soon be alone in its devoted mission to keep a social Europe. But with the 2007 presidential elections, where Nicholas Sarkozy has already been declared by most as the favorite contender, European politics are bound to change since as he shares many points of view with his German counterpart, Merkel.

With this is mind, if one is to be questioned whether or not the Anglo-Saxon model can be applied to the rest of Europe, the answer seems pretty clear. It is inevitable.

Jason Shellaby is a senior majoring in international relations.