The Europeanization of America

The United States and Europe each are coping with heavy debt and the prospect of decline, argues Mark Leonard, co-founder and director of the European Council for Foreign Relations. Polarized electorates and clumsy austerity programs add to uncertainty and compound economic woes. Leonard suggests that the Obama administration admires the Germany economy and pursues policies of “energy independence, re-industrialization, re-shoring and fair trade” with the hope that “advanced manufacturing can create export-led growth.” Obama has called for a transatlantic trade deal, which according to Leonard, “accords with America’s new philosophy of globalization,” including raising wage and environmental standards. “Such a transatlantic deal – particularly if linked with hopes for trade deals in Asia (such as the TransPacificPartnership) – will help the rich world to impose regulatory standards on rising powers by making access to this new mega-market dependent on meeting these standards.” High standards in trade could contribute to other goals – improving economic security within countries and avoiding military conflicts. – YaleGlobal