European banks survive stress test? Aaaah!
The stress tests of 91 European banks in 20 EU countries indicates "the banks are doing well". Good news, no doubt.
At least, the results sound a lot better then some thought. With some relief, media across Europe announced "only seven failed". Yet most European print media mainly showed doubt about the credibility of the exercise. A similar test last year on 19 banks int the US gave a red card to 10 American colleagues. But the check up was not the same, and this one was widely criticized as being too weak.
If you want to check for a blood ilness, it is not enough to look into the throat of a patient and ask him to say 'AAA'. Clearly, the test was designed to show the world that a full-blown euro crisis would not topple the local banks, calm spirits and regain confidence of investors. A charm offensive, in short. Too weak, too little, etc.
Maybe so. But still, from an image point of view, this is a good move, bringing good news. At least it is news that is not built on lies, as was the case in the Greec drama the world witnessed not so long ago. Combined with the spectacular jump of the German business sentiment in July and the UK growing faster than expected, the mood is up, while the US is showing signs of slowing and the housing market is still suffering. There are still bizarre 'for sale' signs on ebay for both common and spectacular houses in the US. So is it 'Sweet Europe, Sour America?', as Reuters asks?
One thing is clear, you cannot build your house on lies, debts and mortgages. Hard work, honesty and a tight reign on your home economics are the only way forward, for home owners, banks and governments alike. Then all can say AAAh with confidence.
Is Europe’s crisis over?
So… is the crisis in Europe over?
Rupert Murdoch made a new bold move that would point in that direction. His News Corp. offers to pay $11.5 billion for the remaining shares of British broadcaster BSkyB. Murdoch as the herald of a sunny new day over the old continent? Michael Corkery at the WSJ seems to imply this in his article "is the Crisis in Europe Over? Just Ask Rupert Murdoch". He reads the big bid as the Aussy tycoon's way of betting that the problems in Europe aren’t so bad as they seem after all. Or on a more sober note, at least it indicates Murdoch believes the crisis will not reduce the Briton's hunger for pay TV consumption, making the bid on one of the largest satellite broadcasters in England and Ireland logical.
The Financial Times calls the move Mr Murdoch’s most significant strategic manoeuvre in years. It quotes a financier with knowledge of the Murdoch move: "By investing in a pay-television business, he is derisking the whole News Corp portfolio away from advertising-dependent businesses”. The FT adds conventional wisdom would suggest to spend the cash in geographic growth markets such as India and Brazil, or in sub-sectors that are riding the growth in internet advertising, education spending or video games sales. Instead, Mr Murdoch is returning to the slow-growing UK market.
So, is Murdoch betting on Europe's recovery? Let's not get our hopes up to high. Theodora Zemek, head of global fixed income at AXA Investment Managers, says in The Telegraph about he Eurozone that having over-riding legal powers "is a precondition for the system to work but it doesn't exist in Europe and the bond markets are starting to figure this out. We are looking at a noble experiment on the brink of failure." The French analysts see it possible that the eurozone would break in half or disintegrate.
Let democracy be our currency! The danger exists that economical problems would destroy the reality of democratic freedom in Europe as a whole and in specific weakened countries, as Barrosso recently warned. Let us all agree that nationalism, selfishness and mistrust are not an option, as says Tahar ben Jelloun on Presseurope:
Regardless of the outcome of this crisis, Europe is no longer a utopia, or a virtual place, but a real entity that is still in the process of construction, which still needs our determined support and good will. Europe is a blessing. The idea that several countries should join together to form a union based on geography, history and on the values of democracy and freedom remains the positive legacy of the Second World War. But does anyone spare a thought for the early years of the union that grew from seven to 27 countries?
EU so much more than Euro and Finance
The Euro dominates the news and keeps setting the agenda op the European Commission
The Euro and the fire in the financial markets dominate the news. IMF fears debt crisis 'contagion', heads Al Jazeera. Greece's financial woes spreading through Europe, the Global and mail runs. Athens domino effect hits Lisbon, headlines presseurop. Et cetera et cetera. The attention is logical and justified. When a house is on fire, the citizens come together to fight the flames. Even when the fire might be the fault of people living in that house, the others rush in to save what can be saved. As happens there, Europe tries to form a chain and stop the smoke,the heat and the devastation. And yes, valuable time was lost, the wind is rising, the barn where the "Pigs" live (an inexcusable term, I must say) is now in danger too.
EU is so much more than Euro and Finance
So "Of course it's the economy, stupid", as cowboy Bill would say. But Europe is so much more than the Euro and Finance. And regretfully the media often seem to miss out on those wonderful stories.
Breughel was right: the work continues
As in Breughel's fall of Icarus, the farmer keeps on plowing, the work needs to be done. Amazing how people seem to forget that. There are so many excellent initiatives the European Commission undertakes, so much good work done is done. But in in the shadows of the flames. The story is where the crisis is. Will Icarus fall or will he land safely? Yet Breughel was right. In the field, the workers labour on. The farmer is in the center of the picture, not Icarus. A visit to the European press room can be refreshing and positive to see the up side of Europe at work. Amazing to see how much Europe is doing. These are the messages from one day: "Cooperation to help refugees", "Support to European inventors", "Clean energy efficient vehicles", "Healthy workplaces", "Innovation awards", "Collaboration with Japan", "Relations with the Caucasus", "More efficient institutions and administration", … .
The list of actions is impressive, so let's not throw out the baby with the bathwater, even to put out a fire.
EU International Aid: 12 steps to 2015
EU international Aid is a major link in the chain of worldwide poverty and aid programs.
Today the EU even is the first donor worldwide, providing more than half of development aid and a staggering € 49 billion in 2009.
The twelve point plan presented today aims to support the international community in delivering the Millennium Development Goals by 2015. The action plan is a call to prepare an agreed and strong EU position ahead of the MDG Summit in September and define a set of actions to be implemented at national, regional and international scales.
'If I compare this (sum) with national budgets, this is not really big money. It's really the political will that is necessary to achieve this target,' the EU's commissioner for development aid, Andris Piebalgs, told journalists in Brussels.
The 12 points for EU international Aid
- Make verifiable annual action plans for reaching individual targets
- Improve aid efficiency at the EU scale (saving estimates around 3 to 6 billion a year)
- Do more and better for the poorest
- Target the key sectors for gender, education, health and food security
- Work in partnerships
- Act in coherence with other EU policies for Development from Trade to migration to food and climate change
- Help national fundings to work better
- Strengthen regional integration and trade for growth and jobs
- Support innovative financing with high revenue potential that can benefit the poorest
- Use "fast-start" funding for climate change as a test for aid effectiveness and coherence
- Make development and security work better together
- Support stronger weight of developing countries in the World Bank, IMF and the UN reform for more effective agencies
12 steps to 2015: a sign to act
The twelve point plan is not only an important signal to the world outside Europe, it is also a message to all EU member states to work together more closely and keep their commitments.
It is a major message to all governments: Solidarity and Development Goals are of key importance for the future of the planet, beyond the moral values Europe holds dear.
Lady Ashton gets a break (almost)
Some weeks ago, we posted a message with the title "Can Lady Aston get a break?" . It seems the Gods in the European Pantheon responded to the call and the lady gets her break. As Reuters announces today, Ashton would control three key aid areas, as the EU aims to boost its influence in world.
The Guardian claims the exclusive on a 13-page document, that puts Ashton in charge of regional and country strategy in development policy, loosening the European commission's grip in this key area. As the EU's new foreign policy chief, she has secured key powers over the world's biggest development budget, according to a blueprint for Europe's first common diplomatic service. Aston is to unveil her blueprint tomorrow for the ambitious diplomatic service which has been the object of a ferocious turf war in Brussels and EU capitals for weeks. That's a good gain for Cathy," said a Brussels diplomat in The Guardian. "She will be able to set the direction of how EU money is spent."
The commission endorsed Ashton's proposals today, meaning that Andris Piebalgs, the development commissioner,
has dropped his resistance to surrendering some of his powers over policy decisions.
Despite the boost for Ashton, the outlines of the new diplomatic structure confirm it will be heavily
dominated by the European commission, to the chagrin of Britain and other big EU governments.
Ashton's blueprint calls for a diplomatic corps that will be managed by a powerful secretary general and two deputies.
This model has been criticized by senior parliamentarians as being too closely modeled on the French diplomatic service.
The separate humanitarian aid budget, and assistance for the EU's eastern neighbours, would remain
in the hands of Piebalgs and enlargement chief Stefan Fuele, her colleagues at the executive European Commission.
Lady Ashton has been hoping to secure final approval for her plan by the deadline of end of April, but diplomats say it will be hard to meet the target because she could face resistance from some of the 27 member states and in the European Parliament. So the lady gets a break (almost, but not yet completely). Maybe learning French can be a good move, as France's EU Affairs Minister, Pierre Lellouche invited her to do, as the BBC says. French is traditionally the language of diplomacy and of EU business, so it will improve the British first Lady of foreign affairs' chances in making friends and gaining respect in the diplomatic corps.
Ashton gets support and criticism (again)
Is Europe looking for an EU wonder Woman to run its international affairs? In any case, Lady Ashton is under a lot of pressure. She is under fire (again) for the delay in the creation of the new EU diplomatic corps and for the presence and management of European foreign affairs in the international arena.
The deadline for creating her new diplomatic service was next month, but it will probably be summer before it is ready, the Telegraph announces, with as a key obstacle the appointment of heads of delegations and staff to the EU's 136 overseas missions. A meeting last Thursday with the Commission president Barroso failed to resolve outstanding issues surrounding the corps. To make things worse, several sources continue to criticize Ashton on some of her first decisions, her absence in Haiti and at some key EU rendezvous.
To be fair, even wonder woman, with a magic golden whip and the ability to fly at the speed of light could not be present in all the hot spots of the world. And if that Wonder Woman would have to set up a major new institutional organization at the same time in a complex and not always cooperative environment, she would need the support of a gang of superheroes.
Maybe this is what in some form is happening now. It is a good thing that the lady in distress will now receive aid from three Commissioner deputies, also called "Cluster Commissioners", as Euractiv indicates on its website today.
Štefan Füle, the Czech commissioner for enlargement, Andris Piebalgs, his Latvian colleague responsible for development, and Kristalina Georgieva, the Bulgarian commissioner for humanitarian aid, will assist Ashton, a Commission official said. National ministers from the 27-member states can also come to the rescue, on the basis of a preagreed mandate, to carry the EU's message, Euractiv says.
No doubt this is a logical and positive step. With better distribution of the workload and collaboration between the EU members, things should look up for the new foreign office to be.
EU recruitment ‘better faster stronger’
The European Commission says it is bringing EU recruitment in line with best practice in public administration worldwide.
The outdated procedures are boosted with a "Better, faster, stronger" theme, launched on Thursday by EPSO, the European Personnel Selection Office (EPSO). Are they secret Daft Punk fans?
In the new format, candidates who pass the initial computer-based selection tests – verbal, numerical and situational reasoning – will spend a day at an assessment center in Brussels.The assessment will be "more focused, professionalized – and there will be more use of human resources personnel,".
In a press release, Maroš Šefčovič, Commission Vice-President for Inter-Institutional Relations and Administration, explains.
"In an increasingly competitive jobs market, the European institutions have to be able to attract a diverse range of top quality applicants. It's also important that we hang on to these people, which we will only do if they have the prospect of finding an attractive post without undue delay. The new system is based on best practice across the public sector. It will provide the EU institutions with the right people at the right time, while remaining true to the principles of fair and open competition."
The BBC reports the exams will be more skills-based, rather than knowledge-based. Yet the tests may not be enough to attract more candidates from the UK. 5.2% of current staff is from the UK, while Germany reaches 8.3%, France 10.2% and Italy 10.3%.
Belgium, the host country, provides 19.8% of the staff. Belgium is arguably over-represented right across the grades.
A recent study by the Paris-based Robert Schuman Foundation, a think-tank, shows that Belgium also tops the list with 16.3% of EU staff in total, with France second, with 10.8%, and Italy third with 9.8%. and the UK only reaching 5.1%.
Good news for the candidates is also that the waiting period before you know if you're 'in' will be shortened to a maximum of one year. And all is done in a fresh web 2.0 bath, including twitter and an up to date web environment the EU deserves!
Europeana, a great idea but will it work?
Europeana?
Have you ever heard of Europeana? It is the ambitious plan to make Europe’s entire scientific and cultural heritage freely available at a single web site. Not just books, but also papers, sound recordings, images, paintings and videos … What an exciting, fantastic tool this can be for schools, scientist and the regular citizen, would'nt you say?
Let's type in 'Derain' in the search field and see what the library offers. Derain was Matisse's colleague painter involved in discovering the art of "Wild painting" labeled Fauvism, so he surely deserves a space in this library. Not bad… today you find 1 text, 456 images, 5 videos and 2 sound bytes. Excellent! Matisse has even 14 video links, one leading to a debate with French book guru Bernard Pivot.
After 15 months, the mark of 10 million documents is approaching, Euronews says. Good news. In an update report, they indicate that France has been the best student in the class by far, adding up to 47 % of the material to the digital library. Germany is second, with 16%, then the Netherlands and the Uk with 8 percent each. In all 5 % of European books are in the database, the report says.
One for all, all for one?
Still, in order to make the engine successful, all European member states have to do their bit, or the database will remain a lesser god in search engine land, falling short to the Google monopoly. Also, the intellectual property rights and the harmonizing of the European royalties are on the agenda and need to be settled.
This seems to be a typical EU story. A great idea, with lots of wonderful positive energy. But without the real commitment of all countries in the EU, many good initiatives fall short of delivering spectacular results they could generate. And with legal restrictions to boot, to further decreasing attractiveness (but all according to the book). Google first moves then looks behind (facing… Europe for sanctions).
Could national and regional pride make it work? Hugo Claus, the Flemish author, poet, screen writer, painter, enfant terrible who died last year does not exist in Europeana, while he has 412.000 hits on Google. The Flemish might want to correct that… And with them all the other nations for their cultural heritage!
As the three musketeers of Alexandre Dumas said "One for all, all for one!"
EU economy needs smart regulation and supervision, Barnier says
Michel Barnier, the new EU Commissioner for Internal Market and Services gave his medication to cure the effects of the "Great leap backwards" in the EU economy. He spoke at a dinner yesterday hosted by the British Bankers' Association in London.
The worst performance in GDP growth in Europe since the 1930's and 23 million unemployed require tough, smart measures. Restoring confidence in the markets is a must to achieve growth . And to do that, Barnier has ambitious plans for the relaunch of the Internal Market.
He has set himself 3 priorities for financial institutions:
1. better supervision (with a single rule book and real information sharing and trust)
2. better capitalization (more and better capital)
3. more responsibility (better corporate governance, competent directors, strong and independent risk management).
Barnier also stressed the need for global convergence and a global level playing field. With the EU as a leader by example on the G20 roadmap, yet without free riders.
Can Lady Ashton get a break?
Lady Ashton, Europe's first foreign policy chief is in for some nasty weather. While the storm Xynthia raided Europe over the weekend, Lady Ashton is facing her own hurricanes in Brussels and in the international arena. As part of typical EU political deal making, the former leader of the House of Lords got a job she was neither hoping nor lobbying for. What for some seemed the best Commission post, now might turn into the worst. 100 days down the road, Ashton opposition seems to be growing.
Of course, it is easier to criticize then to help out or give credit. Jean Quatremer of leftwing paper La Libération in a sharp article cut to pieces the new chief of foreign policy, calling her "Lady Qui?" As always, this well informed journalist and popular blogger-twitterer has a point, and more then one. As do the other knife throwers who see Catherine as a main training aim on the EU target wheel. And yes, foreign affairs requires to travel a lot and be in the field where it matters.
In the Guardian today Ian Traynor writes the first 100 days on the job have not been an easy road trip for Lady Ashton. Not only is her task immense (or impossible). She does not have the ideal track record or reputation to fit the job description in the eyes of the critics. And to top this all, she has to set up and manage one of the most profound institutional changes in the EU of the last years, without the necessary machine to perform the task.
In the last 10 days, 3 key decisions made in her organization further raised the pressure on the Lady: the Portuguese right hand of Barosso was appointed as EU Ambassador to Washington without consulting the member states and a Lithuanian with UK support became envoy to Afghanistan. Her absence at a Nato-EU defense minister meeting in Majorca added to further Brussels and international scepticism.
Can the Lady get a break? This is what her vision documents for the EEAS, the European External Action Service, seem to ask. As critical as anyone can or should be, the fact remains that building Europe is not done by only criticizing it and its leaders, but by showing an open mind and a will to help it build. Don't ask what Europe can do for your country, ask what your country can do for Europe, you might paraphrase the Kennedy catch phrase.
Debate is needed, very much so. But let's make it a civilized sport. Play the ball, not the other player. The image of those who execute dirty tackles is always more damaged then those who are on the receiving end. And the whole European political game looses more credibility. The Farage attempt of comment on President Van Rompuy is a good example of this. The President did not dignify the attack with a direct response, but this sunday in a TV interview on Belgian VRT TV program 'de zevende dag" called it 'pittyful'.
What happened to the flair of British phlegm? Where is the legendary fair play and the fine art of British understatement? William Osler describes phlegm as "coolness and presence of mind under all circumstances, calmness amid storm, clearness of judgment in moments of grave peril, immobility, impassiveness." We wish it in strong doses to Lady Ashton and also to those who wish to disagree with her.