T he paradox about the European Union's position in the world is that it is both a giant and a dwarf. It stands tall as a giant because it has reached one of the peaks of human civilisation - the achievement of zero prospect of war among European states - and also because of its enormously successful regional co-operation. The world can and does learn lessons from Europe's success after the second world war.

Yet, even though it has an economy comparable with America's, it stands as a political dwarf in responding to the rapidly changing geopolitical environment. The combination of slavishly following the US lead (with the possible exception of the invasion of Iraq), its reluctance to contemplate badly needed strategic initiatives (as in the Middle East) or provide real political leadership to complete the Doha round of global trade talks and other such failures have led to the steady shrinking of Europe's footprint on the world stage.