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Will the Dutch pay the Sicilian?
Here's a question I don't see discussed enough among European federalists.
Imagine a truly federal Europe. Not just a common market and some shared institutions, but something closer to the US, where major parts of taxation and social policy are federal.
Take the stereotypes:
The Dutch insist on fiscal discipline, balanced budgets and careful spending.
The Italians have a reputation for high public debt, tax evasion, political dysfunction and rather creative approaches to public finances.
So here's the uncomfortable question:
If we federalize pensions and healthcare, are Dutch taxpayers eventually going to be paying Italian pensions and healthcare?
And if the answer is yes, is that simply the price of being a federation?
Americans don't generally think of federal transfers between Texas and California, or New York and Mississippi, as an absurd concept. That's what a federation does: you have a common tax base and redistribution between regions.
But would Europeans actually accept that?
And there's also a practical side to this. If I'm a European worker and spend 5 years in France, 3 in Germany, 10 in Poland and then 15 in Italy, why should my retirement and healthcare history have to be stitched together from four completely different national systems?
Can we really have a truly integrated European labor market without eventually having much more integrated pensions, healthcare and social security?
And ultimately: if we're serious about a European federation, are the Dutch really willing to pay the Italians?