As those of us who live in British Commonwealth countries commemorate Remembrance Day, I want to reflect about what this day means to me, especially in the context of the eurozone crisis today.
Our story begins at the close of World War II. As that war drew to a close in 1945, the leaders of Western Europe came together and surveyed the wreckage. For centuries Europe had been racked by conflict, centered mainly between France and Germany. As an example of the level of carnage, consider that the French and Germans lost over 800,000 men (dead, wounded, missing and captured) in one single battle – the multi-year Battle of Verdun in World War I. By way of comparison, the Verdun casualties were double that of American loss in Vietnam dwarf American casualties in either the Korean Conflict.
The Europeans said “never again!” Thus the EU was born. In 1957, the European Economic Community (EEC), also known as the Common Market, was formed. The intent was not purely trade liberalization, but to bind Germany to Europe so tightly that major European conflicts could never happen again. The EEC later became the European Union (EU). Further economic integration occurred in December 1995 when many EU countries adopted the euro as a common currency.
This strategy of peace through economic integration has largely succeeded. If the Germans were to mobilize the Bundeswehr today and announced to the troops that they were going to war with France, the men would all laugh and go home.
That is the miracle of Europe.
As players on the European stage manoeuvre for advantage, we must not forget the Big Reason for the formation the European Union. Also don't forget the terrible price that could be paid by future generations should the current crop of leaders fail.
Lest we forget.
Cam Hui is a portfolio manager at Qwest Investment Fund Management Ltd. ("Qwest"). This article is prepared by Mr. Hui as an outside business activity. As such, Qwest does not review or approve materials presented herein. The opinions and any recommendations expressed in this blog are those of the author and do not reflect the opinions or recommendations of Qwest.
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