Should Australia Join the EU

Three key problems challenge the long term growth of the Australian economy: First, a shortage of skilled blue collar workers, particularly in construction and mining. Second, ever increasing interest rates, exacerbated by increasing inflation. Third, declining growth in the long-term productivity of the overall economy.

 

Prima facie, it seems impossible to solve these three problems with any speed. If the skills shortage, the most pressing of our three major economic issues, is not fixed, the long term growth of the economy is jeopardised. Yet, there is one simple way to fix these three problem that will have long term benefits for Australia's culture and pocketbooks: Join the European Union and adopt the Euro.

 

One may think the idea of Australia joining the EU is farcical. It is no less improbable than the former Warsaw Pact countries joining the club of western European nations. Australia has is more closely aligned, in terms of demographics, with 'old' Europe than the EU's newest member-state, Turkey. We may be far away geographically, but culturally Australia is aligned with the values of liberal democratic values and exhibits strong ancestral ties to Europe.

 

Post-communist states like East Germany and Poland have high-skill populations with staggering levels of unemployment; hence the phenomenon of the 'Polish plumber' in the UK. If Australia were to join the EU, with its open borders policy, the mines of WA and the construction sites of Perth would be attractive employers of skilled western Europeans. Australia's mining boom could offer them higher salaries, whilst they could help sustain the industry's overall growth.

 

If Australia joined the EU and adopted the Euro, we could join a powerful and efficiently managed monetary system that would insulate the Australian economy from short-term calamities. Using the Euro, Australia's exports would be cheaper to other EU member states; our current account could actually become a surplus. Our interest rates would be controlled by the European central bank, which, over its history, has managed lower lending rates than the Reserve Bank of Australia whilst encouraging a low inflation environment. Being a member of the EU free trade zone, Australia's wine, mineral and other export industries could find new markets and be truly competitive on a global level. 

 

Finally, the long-term productivity of the domestic economy would grow under EU membership. Australian students would be able to attend European universities at 'home' rates, and vis-versa. A great education revolution could take place; allowing Australia to shed the shackles of an industrial based economy and move into an intellectual one. Sowing the seeds of a knowledge economy today is the only way to ensure the long-term growth of the country, we cannot rely on mineral wealth forever.

 

Resting on the status quo, Australia will never become a global leader. The Prime Minister speaks of a courageous new era of government founded on innovative ideas. If we are truly committed to ensuring the our children have a plentiful country to live in, we must be radical about our future. Joining the EU is one such measure, but one that certainly should be considered in the corridors of power and around the dinner table.... One question remains, would the EU take us?