Lee Kuan Yew's prediction of a bleak future for the EU.

In a 2012 interview, the late Singaporean Prime Minister Lee Kuan Yew remarked that the European Union (EU) was expanding too rapidly and could fail.

Former Singapore Prime Minister Lee Kuan Yew (right) in a meeting with former West German Chancellor Helmut Schmidt in 2012. Both men have since passed away. Photo: Strait Times

From late 2009, when the sovereign debt crisis began to spread across Europe, Lee Kuan Yew was repeatedly asked for his views on the situation on the continent. And even then, he had very insightful and concerning perspectives, according to the Straits Times.

In September 2011, a former Singaporean leader, during a dialogue, predicted the collapse of the euro, saying it would be "a painful task," but that an equal Europe for all members was too difficult. At that time, the European debt crisis had entered its second year.

Speaking at the Lee Kuan Yew School of Public Policy, he argued that European leaders would do everything in their power to prevent the collapse of the euro, as that would be "an admission that their ideal of a unified Europe is unattainable."

"I don't believe they'll be able to save it. However, they will try and are continuing to work on it," he added.

When asked by an audience member whether Singapore would buy bonds from debt-ridden European countries, Mr. Lee asserted that Singapore's gross domestic product (GDP) is only a fraction of that of the EU, and therefore "it is impossible to save Europe, and I don't think that buying their bonds would mean saving them."

The veteran leader also argued that the common currency of the 17 EU countries is the problem. "The fundamental problem with the Euro is that it makes everyone, every European country, move at the same pace, whereas each country has its own rhythm, and you can't expect the Greeks to move at the same pace as the Germans. Therefore, this problem is unsolvable."

"Ultimately, I don't know when, but there will have to be an acknowledgment that the ideal is out of reach. A Europe divided into two or even three groups is achievable, but a unified Europe with different spending habits, saving patterns, and regulations is too difficult," Lee further commented.

The euro was introduced in 1999 with the hope of increasing economic cooperation and growth in Europe, while enhancing the EU's international standing. However, as many countries in the eurozone faced debt crises, the common currency union came under criticism for forcing other European nations to bail out struggling members. Furthermore, the EU also deprived policymakers of flexibility in monetary policy – ​​a tool used to prevent recessions.

Mr. Li also stated that he did not believe China would be interested in "rescuing Europe solely for the purpose of helping Europe. They are only interested in buying cheap European bonds and hoping to make a large profit." Media at the time estimated that about a quarter of China's foreign exchange reserves might be in euros.

In May 2012, when Mr. Li met his old friend, former West German Chancellor Helmut Schmidt, both were interviewed by the German newspaper Die Zeit. At that time, Mr. Li was 89 years old and Mr. Schmidt was 93.

When asked by a reporter whether the EU model was an inspiration to the world, given that the continent had united after witnessing two World Wars, Mr. Lee gave a surprising answer:

"No, I don't see the EU as an inspiration to the world. I see it as a misjudged enterprise because it's expanding too quickly and could fail," the former Singaporean leader said.

When further questioned by reporters about whether this meant Asia could learn nothing from European integration, Mr. Lee stated that unification could certainly not be achieved in that way.

"But what we can learn is a growing awareness of shared interests, which are free trade zones, and from there we can develop it step by step. The problem for Asia is China's dominant position," he said.

"Is free trade all that can be achieved in Asia?" the Zeit reporter asked. Mr. Li replied, "Free trade and a sense of belonging; we are not at war with each other. We resolve our differences, that's the reality. We meet regularly, without threatening each other."

In his 2013 book, "Lee Kuan Yew: A World View," Lee also devoted considerable time to discussing the future of Europe.

"Over the past two to three years, European leaders, including David Cameron, Nicolas Sarkozy, and Angela Merkel, have individually stated that the philosophy of multiculturalism has failed in their respective countries. In other words, Turks settling in Germany do not become Germans, nor do Algerians and Tunisians in France become French. Race is at the root of this failure to absorb, although religious, cultural, and linguistic factors are also relevant," a passage from the book states.

"But Europe cannot stop the influx of immigrants because they are meeting the region's growing needs. Therefore, we can see that European governments will allow immigrants to pour in as long as they can, and will only stop when elections take place and right-wing parties overwhelm their moderate opponents through angry pronouncements," Lee Kuan Yew wrote.

"Unification holds great promise, not just peace. A Europe that achieves unity of purpose will create a greater economic power, and more importantly, a greater voice in international affairs. Look at America. They are essentially Europeans who have been moved to another continent and have abandoned their racial allegiance and different languages. If Europe also achieves that level of unification, and becomes the United States of Europe, there is nothing the Americans can do that the Europeans cannot."

"However, all signs point to unification as impossible. To date, they have failed to create an effective common currency, and are unlikely to achieve a single foreign policy or a single military," he asserts in the book.

"Each country has its own history, spanning centuries. Each nation takes pride in its traditions. Above all, they all want to preserve their language – behind which lie its glory and literature. America has decided to open a completely new beginning, creating a new literature, but Europe will not be able to do that. Even though English is now the second language in every other country, the countries of the European continent will never accept it as the sole official language," he wrote.

From that perspective, Lee Kuan Yew believed that Europe's position on the international stage would increasingly weaken compared to the major powers.

"Faced with the dominance of other major powers such as the US, China, and possibly India in the future, Europe will only play a supporting role. Most European countries will be treated as simply small nations. Germany may continue to shoulder the burden alone, thanks to its population size and economic success. The British will retain some influence thanks to their special transatlantic relationship with the US."

But on the other hand, Europe cannot hope to have a significant voice at the negotiating table alongside the US, China, and India, even though some European leaders may be reluctant to admit it.

Ultimately, we are comparing countries with 40, 50, or 80 million people to China with 1.3 billion or India with 1.2 billion. The Chinese, in particular, will find a divided Europe easier to deal with. They can deal with each country individually instead of as a group. Each European country will depend on China more than China depends on them. This will become even more apparent as the Chinese economy shifts towards development based on domestic consumption,” Lee Kuan Yew wrote.

According to VNE