The Fate of the European Union

While some media outlets are attempting to downplay France's rejection of the EU Constitution, they do so at their own peril. In my opinion, this is a huge story. France, one of the founders of the EU and one of the protagonists of the Europe versus America power bloc, will not be a part of the supranational European Union.

This action was taken by voters for two main reasons: approving the Constitution would likely dismantle the welfare state the French are so proud of and would also likely destroy the labor unions and send artificially high paying jobs to low wage countries such as the former Eastern Block countries.

Because of this rejection, France faces a major problem: their economy is a major drag on growth and employment. Unemployment in France (like other major European economies) is about 10%. Further, employees cannot work more than 35 hours per week. Without the support of Europe, France faces the real problem of a long-term declining economy.

Hopefully a force will emerge within France to reinvigorate their economy.