Europe's Accountability Dilemma

German Finance Minister Wolfgang Schaeuble on June 25 said that Germans eventually need to hold a referendum on European mechanisms meant to save the euro. The statement came after French and Italian officials voiced concerns over the democratic integrity of the European Union. 

The statements highlight the inherent tensions of the European Union. Europe's financial crisis has compelled the European Union to expedite its decision-making processes. But it must simultaneously reach mutually acceptable agreements with its 27 member states, which have differing national interests, and it must do so in a way that considers domestic populations and preserves state sovereignty. The European Union's contradictions, aggravated by the financial crisis, are undermining Europe's attempts to mitigate that crisis.