Economic Effects on Sovereignty Some commentators claim that in the modern world, medium-sized economies do not have economic sovereignty any more. Thus it is necessary to form large economic and trading blocks such as the EU in order to recover some economic sovereignty. There is some truth in the idea that modern medium-sized governments have less control than they did in the past. "From about 1930 to about 1970 governments had a historically unusual degree of control over their economies"(Walker 3). They could fix market exchange rates, li ....