"Europe Is History."
No. These days, many speak of Europe as if it has already faded into irrelevance. In the words of American pundit Fareed Zakaria, "it may well turn out that the most consequential trend of the next decade will be the economic decline of Europe." According to Singaporean scholar Kishore Mahbubani, Europe "does not get how irrelevant it is becoming to the rest of the world." Not a day went by on the 2012 U.S. campaign trail, it seemed, without Republican challenger Mitt Romney warning that President Barack Obama was -- gasp -- turning the United States into a "European social welfare state."
With its anemic growth, ongoing eurocrisis, and the complexity of its decision-making, Europe is admittedly a fat target right now. And the stunning rise of countries like Brazil and China in recent years has led many to believe that the Old World is destined for the proverbial ash heap. But the declinists would do well to remember a few stubborn facts. Not only does the European Union remain the largest single economy in the world, but it also has the world's second-highest defense budget after the United States, with more than 66,000 troops deployed around the world and some 57,000 diplomats (India has roughly 600). The EU's GDP per capita in purchasing-power terms is still nearly four times that of China, three times Brazil's, and nearly nine times India's. If this is decline, it sure beats living in a rising power.
Power, of course, depends not just on these resources but on the ability to convert them to produce outcomes. Here too Europe delivers: Indeed, no other power apart from the United States has had such an impact on the world in the last 20 years. Since the end of the Cold War, the EU has peacefully expanded to include 15 new member states and has transformed much of its neighborhood by reducing ethnic conflicts, exporting the rule of law, and developing economies from the Baltic to the Balkans. Compare that with China, whose rise is creating fear and provoking resistance across Asia. At a global level, many of the rules and institutions that keep markets open and regulate world trade, limit carbon emissions, and prosecute human rights abusers were created by the European Union. Who was behind the World Trade Organization and the International Criminal Court? Not the United States or China. It's Europe that has led the way toward a future run by committees and statesmen, not soldiers and strongmen.
Yes, the EU now faces an existential crisis. Even as it struggles, however, it is still contributing more than other powers to solving both regional conflicts and global problems. When the Arab revolutions erupted in 2011, the supposedly bankrupt EU pledged more money to support democracy in Egypt and Tunisia than the United States did. When Libya's Muammar al-Qaddafi was about to carry out a massacre in Benghazi in March 2011, it was France and Britain that led from the front. This year, France acted to prevent a takeover of southern Mali by jihadists and drug smugglers. Europeans may not have done enough to stop the conflict in Syria, but they have done as much as anyone else in this tragic story.
In one sense, it is true that Europe is in inexorable decline. For four centuries, Europe was the dominant force in international relations. It was home to the Renaissance and the Enlightenment. It industrialized first and colonized much of the world. As a result, until the 20th century, all the world's great powers were European. It was inevitable -- and desirable -- that other players would gradually narrow the gap in wealth and power over time. Since World War II, that catch-up process has accelerated. But Europeans benefit from this: Through their economic interdependence with rising powers, including those in Asia, Europeans have continued to increase their GDP and improve their quality of life. In other words, like the United States -- and unlike, for example, Russia on the continent's eastern frontier -- Europe is in relative though not absolute decline.
The EU is an entirely unprecedented phenomenon in world affairs: a project of political, economic, and above all legal integration among 27 countries with a long history of fighting each other. What has emerged is neither an intergovernmental organization nor a superstate, but a new model that pools resources and sovereignty with a continent-sized market and common legislation and budgets to address transnational threats from organized crime to climate change. Most importantly, the EU has revolutionized the way its members think about security, replacing the old traditions of balance-of-power politics and noninterference in internal affairs with a new model under which security for all is guaranteed by working together. This experiment is now at a pivotal moment, and it faces serious, complex challenges -- some related to its unique character and some that other major powers, particularly Japan and the United States, also face. But the EU's problems are not quite the stuff of doomsday scenarios.
Simon Dawson/Bloomberg Via Getty Images


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