International Security

"...[A]bsent an overwhelming threat, the Europeans have had little reason to maintain their economic union. This is not to argue that the demise of the Soviet Union has given them a reason to dismantle the EU—only that it has removed their incentive to preserve it. Consequently, the EU has started to fray as member states have put national interests ahead of those of the union."

The Anglo-Japanese alliance of 1902–23 illustrates the importance of economic side payments as a method for forming and maintaining alliances. It also shows, however, the influence of domestic factors on constraining these types of payments. Security concerns often lead a nation to offer side payments to a potential ally, but domestic political constraints, partisanship, and changing strategic needs account for the variation in the economic-security linkage.