What can Eurasian Union learn from EU troubles?

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Published time: November 20, 2011 00:55
Edited time: November 21, 2011 12:11

Dmitry Medvedev, Alexander Lukashenko and Nursultan Nazarbayev meet in Kremlin (RIA Novosti / Dmitry Astakhov)

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Crisis, EU, Economy, Europe

As Russia, Belarus and Kazakhstan move a step closer to a Common Economic Space, a union bearing similarities with the EU, could they run into the same troubles? The man at the heart of the matter explained to RT how to avoid pitfalls.

“The current situation when the eurozone is facing internal economic problems has helped us to identify proper ways to integrate and co-ordinate our budget, financial and monetary policies. In this way, we will be able to avoid piling up internal risks and, generally, situations like this one”, said Russia’s Minister of Industry and Trade Viktor Khristenko, who’s been nominated to head the Eurasian Economic Commission.

The presidents of the three countries signed the declaration on Eurasian economic integration which would lead to the creation of the Eurasian Union – a body which other post-Soviet countries could join – and the Common Economic Space which will follow the rules of the World Trade Organization and pick up many characteristics of the European Union. But will it have a common currency? Well it’s yet to be decided. But Khristenko says there’s a lot to learn from the EU’s experience – and difficulties.

“The crisis has underlined one simple thing – if you go as far as creating a single-currency union, you must exercise tight control over budget, monetary and tax policies at national levels. If this is not the case, then some regions of the eurozone will be exposed to processes similar to what is happening today in Greece, Italy and Spain,” he said.

Khristenko also pointed out that the development of “localized globalization processes” is a more sustainable model.

The question is – can there be just one centralized system with just one center defining all the processes and development trends for the entire global economy? And the answer became obvious to everyone – that it cannot be this way, he said.

In an interview with RT’s Sofi Shevarnadze and the Voice of Russia’s Roman Mamonov, he explained how the planned Common Economic Space would operate and interact with the WTO and EU, and how it would withstand the financial crisis.

Comments (4)

Arnold 21.11.2011 10:22

First that re-ashed , chopped and modified capitalistic production DOES NOT work ! If the EU continues on this road , as US does , they will always be and remain bankrupted . Centralised management of the market surplus values created by the free enterprise , as per the chinese administration , it's the ONLY solution. I sincerely hope that the EEC will have the tranquil disposition to tell and adopt the new and truly interpreted Marxist economical administration as to guarantee a SUSTAINABLE AND ADAPTABLE production and security of existance for all the people ( I should have said the workers !) . Good luck EEC.

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Marzipan6 (unregistered) 20.11.2011 05:00

A far more relevant question for these three to varying degrees authoritarian countries to ask is, what can the Eurasian Union learn from Soviet troubles?

I have never heard or read any Russian politician of any persuasion state what they have learned from their country's Soviet experience, and what they have personally committed themselves to do differently so as to ensure that the suffering and loss which Soviet rule brought to their country and its neighbours will never be repeated. If anyone has come across any such expression of regret and commitment, I would be most interested if they would post details.

Meanwhile, an appropriate question for the three amigos to ask is, what can a Eurasian Union learn from the EU's successes?

The EU's difficulties have arisen largely because the EU has not enforced its own rules. The Soviet Union failed and collapsed because Russia did enforce its rules. Of course, the nature of the relevant rules -- one based on democratic principles and the other on totalitarian norms -- has a lot to do with it, too. Russia, Belarus and Kazakhstan, which admit to having learned nothing from their Soviet experience, are far more likely to repeat Soviet rather than European mistakes.

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Nay Lin Maung 20.11.2011 01:41

Green-backs State and local government can not print. It is the problems when state and local government can not earn enough income to pay their expenses. As a result, they issue state bonds to meet their expenses. Euro &nbs p; What are the reasons? Member states of the euro h ave so much public debts to the investors or creditors. &n bsp;

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