BRUSSELS, Oct. 25 (UPI) -- Europeans may get their gas from Russia, their oil from the Middle East and their cheap T-shirts from China; they may take their holidays in Egypt, eat their burgers in McDonalds and import their footballers from Brazil; they may employ house-maids from Peru, speak to phone operators in India and have their streets cleaned by North African immigrants; but this does not seem to stop them fretting about the pros and cons of globalization.

As the world's largest trading bloc, with a share of global merchandise outstripping Japan, China and India combined, one would have thought the European Union would have been the biggest cheerleader of globalization. But in many of its core countries protectionism is back in fashion, capitalism is considered a swearword and free trade is frowned upon as an Anglo-Saxon import.

Until recently, summits of EU leaders were invariably accompanied by mass demonstrations against globalization by a ragbag mix of anarchists, aid campaigners and far-leftists. Now, many of the sharpest critics of globalization are to be found inside Europe's corridors of power.

During the referendum campaign on the EU's first ever constitution in May, French President Jacques Chirac lashed out against "Anglo-Saxon style" capitalism and torpedoed a draft European law aimed at opening up the continent's services sector. Earlier this month the Gaullist politician lambasted the European Commission for failing to prevent U.S. computer giant Hewlett-Packard shedding jobs in France and last week he threatened to scupper world trade talks unless French farmers were allowed to keep their generous subsidies.

Europeans may get their gas from Russia, their oil from the Middle East and their cheap T-shirts from China; they may take their holidays in Egypt, eat their burgers in McDonalds and import their footballers from Brazil; they may employ house-maids from Peru, speak to phone operators in India and have their streets cleaned by North African immigrants; but this does not seem to stop them fretting about the pros and cons of globalization.

"France sounds like India 50 years ago," says Joseph Quinlan, Chief Market Strategist for Bank of America, referring to Paris' decision to protect 10 key industries from foreign takeovers. "It is going backwards and sending completely the wrong message to developing countries."

France is not alone. Germany's new Vice-Chancellor and Labor Minister Franz Müntefering recently likened financial investors to "locusts." Outgoing Chancellor Gerhard Schroder personally blocked Citibank's takeover of Deutsche Bank without even consulting the head of the Germany's largest bank. And only three of the 15 countries that made up the EU until last year's big bang enlargement allow citizens from the new member states to work on their territories -- despite the fact that one of the Union's founding principles is the free movement of labor.

With globalization blamed for high unemployment in the Brussels-based bloc, the French and Dutch rejections of the EU constitution and the surge in immigration into the Union, British Prime Minister Tony Blair has opted to use his country's presidency of the EU to challenge globalization's critics head-on.

In a landmark speech to members of the European Parliament in June, the Labor leader said: "If European nations faced with this immense challenge, decide to huddle together, hoping we can avoid globalization...then we risk failure -- failure on a grand, strategic, scale."

Blair plans to devote an entire summit of EU leaders Thursday to a debate about the benefits and flip-sides of globalization. It may take more than eight hours to persuade Messrs, Chirac and Schroder -- making his last Brussels appearance as German chancellor -- of the glories of globalization, but others around the table will need no convincing.

Why are so many European citizens -- and leaders -- fearful of globalization? One reason is that the phenomenon has become associated with a mass exodus of jobs to poorer countries. Yet, states that embrace free trade -- Britain, the United States and Sweden, for example -- tend to have lower unemployment than those that are lukewarm about globalization -- like France and Germany. It is a similar story with migration -- those states that accept immigrants with open arms tend to have higher growth and lower unemployment than those who keep them out.

In a speech last month, European Commission President Jose Manuel Barroso said: "We must remember that globalization is driven by a very human desire -- the desire of billions of people to create a better life for themselves and their families. Who could criticize that? From mobile telephones to low cost air carriers, from fusion food to world music, European citizens have grown accustomed to the benefits of a world where peoples, states and economies don't stand back, but engage with each other."

The commission made an equally forceful defense of globalization in its contribution to Thursday's summit. "Globalization does not mean that if others get richer, we must get poorer. Prosperity is a dynamic concept. Globalization is the chance to increase the size of the whole cake so that everybody gets a slice."

If the benefits of globalization are so obvious, why are so many European citizens -- and leaders -- fearful of its consequences? One reason is that the phenomenon has become associated with a mass exodus of jobs to poorer countries. Yet, states that embrace free trade -- Britain, the United States and Sweden, for example -- tend to have lower unemployment than those that are lukewarm about globalization -- like France and Germany. It is a similar story with migration -- those states that accept immigrants with open arms tend to have higher growth and lower unemployment than those who keep them out.

Thursday's discussion in the regal splendor of Hampton Court Palace outside London is unlikely to change the minds of any EU leaders. But if it results in globalization being seen as more of an opportunity than a risk, Blair will be able to declare "mission accomplished."




Contributed by By GARETH HARDING, Chief European Correspondent, United Press International. Reprinted with permission from United Press International.

To read another Global Envision article about Europe's reaction to globalization, see Europe in Disarray - Part I, and Europe in Disarray - Part II.



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