Businesses often use an organizational structure that combines several (external) front offices (eg, various commercial brands) which are supported by a joint (internal) back office (eg, Finance, HR, ICT, Logistics). For this structure to be successful, the power struggle between front and back office should be kept at a minimum. Trust between front and back office directors is essential.
Essentially, the EU and the 27 member states mirror the above organization structure. The 27 member states are the ultimate decision-makers through its Council of the European Union because they are the shareholders and the supervisory board, which is headed by Charles Michel. The European Commission represents the executive board of directors, and is headed by Ursula von der Leyen.
Politics is a power struggle in and of itself. When you add a front office and back office structure – instead of a (European) Federation – then conflicts become business as usual.
The Dutch Rabobank organization structure once mirrored the EU: the many local Rabo banking outlets (ie, front offices) owned the head office (ie, back office). This structure caused too many frictions between a head & back office and the full service banking outlets. The Rabobank solution was to centralize ownership. Hence, the shareholding banking outlets then became mere sales outlets.
In 2020, the German Constitutional court argued that the European Central Bank had overstepped its (quantitative easing) mandate. This resulted in a legal conflict between the European Court of Justice and the German Federal Constitutional Court about the final say. Also see my May 2020 blog.
According to a recent Bloomberg article, the EU is now preparing legal proceedings against Germany for its ECB verdict. In other words, the back office is suing the front office whereas the front office is the owner of the back office. This legal fight cannot end well. Please see below my self-explanatory adjusted 2020 diagram.
In my view, it’s too late for the European Union to become a Federation because nationalism (my blogs) in various member states will resist such a power grab. The alternative is that the EU will be torn apart between believers in centralization and in decentralization.
Torn (1993) by Natalie Imbruglia (1997 cover)
artist, lyrics, video, Wiki-1, Wiki-2
Note: all markings (bold, italic, underlining) by LO unless stated otherwise.
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