Wednesday, June 01, 2005

EU and Turkey: Plan B :: Instapundit

Plan A: Turkey joins the EU.
Plan B: NAFTA and EU form TAFTA and Turkey joins TAFTA.

The major difference for Turkey and the EU is that under plan B labor mobility is more restricted. I note that that in turn means Turkey would not receive the transfers that poorer members of the EU, like Spain and Portugal and the Eastern European members have received. The EU has not been willing to allow labor mobility to do all the work of equalizing the return to human capital across the union. Among those who in France who voted no to the EU, many did so because of the threat to the social market brought about by labor mobility and the transfers from France.


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