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.
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 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.
Barroso II: ‘a new hope’?
The European Parliament today by a large majority approved the proposed Commission team lead by José Manuel Barroso. The three major political European groups gave their support in Strasbourg; with 488 to 137 in favor and 72 abstentions. The vote is a clear mandate for a second term, yet at the same time there is a clear wish for not just a sequel but a true 'new hope'.
Joseph Daul, leader of the centre-right EPP also confirmed his support in his address to Barroso , while asking for more courage:
“The EPP group has placed its trust in you, but we ask you to have the courage to make reforms…We will judge you on the progress you make in this direction.”
Although Barroso today showed he was tired when facing the press after the meeting, his words show that he clearly has the will and firm intention to bring new hope:
“We will spend the next five years turning our vision into reality: making Europe a resource-efficient, inclusive, social market economy, reflecting what makes us special, the European way of life.”
The team will now go to work immediately, and a lot of work there is indeed.
As Guy Verhofstadt, leader of the Liberal ALDE group, points out in his open letter to his fellow countryman Herman Van Rompuy, it is time to unite. He hopes the informal summit on 11 February wil be a positive "state of the Union". The Liberal leader says setbacks of the European Union are piling up: the missed opportunity to 'stand with a fist' in Copenhagen, the lack of coordinated response in the Haiti crisis, the financial troubles in the Eurozone and the lack of interest of Obama to join the Madrid EU-US summit. Verhofstadt says the heads of state must come to a single conclusion on the 11th:
Europe needs more unity and more integration; otherwise the Union will cease to play its role on the global chess board.
What is true for Van Rompuy is also true for Barroso II: only united we stand.
This is a challenge that truly resembles an epic movie. Barrosso II and Van Rompuy must bring member governments into a real alliance.
They must at the same time make the Parliament a critical yet strong ally in the new voyage.
And to top it all, through decisive political action and honest, clear and well balanced communication, they must urgently improve the credibility of the EU towards the citizens and the world.
Only then will positive involvement in Europe become a logical and pan European idea. May the Force be with them!
Bulgaria’s nominee flunks EU test
Rumiana Jeleva, Bulgaria's foreign minister and candidate Commissioner, withdrew her candidacy after criticism on her financial dealings and her competence. Ms Jeleva faced repeated questions about these matters, forcing her to withdraw her nomination.
This is a new setback for Barrosso on his way to Barrosso II. He had backed up this candidate, as did the Bulgarian government, leaving them both embarrassed, the New York Times reports. The new Bulgarian nominee is Kristalina Georgieva, a former World Bank vice-president. She will have to undergo a hearing of her own, making the date for the confirmation of the new Commission on February 9 difficult to reach.
Barroso who was eager to start will also have to await the outcome of second grillings for two candidates, Neelie Kroes and Olli Rehn, who are also under fire and have to go back on the grill for some more heat. They respectively apply for the job of digital economy Commissioner and for economic and monetary affairs, but they're not home yet.
The debate shows the Parliament wants to confirm its role and indicated a democratic high standard. At he same time, the political inner fights and competition could harm the democratic if criticism is more inspired by political enemy games then content.
De Gucht: full support from Barrosso in Congo row
Karel De Gucht is in the middle of a new clash with Congo. After expressing sharp remarks, the Commissioner was declared an official persona non grata in the African country. During a debate in the European Parliament he had stated that "Congo is a mess. Almost everything has to be redone in the country".
This is not the first time De Gucht has openly criticized Congolese leadership and the sad state of affairs in the heart of Africa. The seeming paradox is that the man shows true love for the country and its people and that his expressed sentiments are based on abundant and correct information. In his former roles on the political arena, De Gucht has shown again and again to have a clear insight in the African political context in general and in Congolese affairs in particular. By formulating criticism, De Guch no doubt wanted to stimulate the change and reform process and call upon the leaders to "shape up and do better". But the opposite seems the result. De Gucht is 'quite a character' and boast a very direct style, intelligent and witty, confident. Enough to be perceived by some as arrogant, no doubt. The surprising interview by Bruno Giussani, European Director of TED Conferences, at the TEDx Brussels 2009 is a clear example of this crisp style.
It remains a thin line between stating facts to construct a better world and telling the truth and by doing so insulting the powers in place and blocking progress. As Development Commissioner Karel De Gucht had questioned whether aid provided to Kinshasa by EU nations was being put to good use. Was that wrong? The humanitarian situation in Congo is a crisis on a devastating scale. When confronted with hunger, poverty and corruption, mismanagement and incompetence, it can no longer be seen as an insult to state these obvious facts. These circumstances strangle an entire nation and push the people beyond poverty into a state of raw Darwinism, survival of the fittest. No democratic leader can accept that.
It seems doubtful this feud can ever be resolved. On Thursday, Congo government spokesman Lambert Mende said: "We note that here is a character who is incapable of having normal, dignified relations with our country". Yet EU foreign policy chief Catherine Ashton expressed the Commission's full support for De Gucht and last Thursday Jose Manuel Barroso also gave De Gucht his full backing. The EU is a major aid donor to the Democratic Republic Congo, sending some 300 million euros (430 million dollars) since 2003. It would seem logical and in the interest of Congo that any doubt on correct spending of that aid would be avoided.
Karel De Gucht will step up in front of the parliament for his hearing in order to be accepted as Commissioner for Trade; Catherine Ashton will be 'grilled' by the MP's today.
Barroso II portfolios announced
After the buzz and negociations of the last weeks on ‘who will get what’ the President of the European Commission announced his proposal for his Commission team.
On the website of the Swedish European presidency Barroso is quoted:
“I am pleased to be able to present this new Commission and want to thank the Member States for their excellent nominations. I welcome back thirteen of the old Commissioners and think we have achieved a good mix of skills, experience and gender”, said José Manuel Barroso when he announced the new Commission.
Swedish Prime Minister Fredrik Reinfeldt, representing the Swedish EU Presidency, commented on Mr Barroso’s choice of Commission.
“I welcome President Barroso’s proposed new Commission. It is well composed and balanced, with clear divisions of responsibility within the Commission. Now the European Parliament will hear the proposed Commissioners. I am looking forward to this and I hope the Parliament will give its support to the proposal.” “I am very pleased that the proposal so clearly reflects the new role of the EU, which the Lisbon Treaty will bring, both in Europe and in the world. Now it is important that the new Commission can quickly begin its work to meet the challenges still facing the EU.”
Barroso nominated Connie Hedegard, Denmark’s climate minister, in charge of hosting the December UN climate conference in Copenhagen.
Other notable nominations include Joaquin Almunia as the European Union’s antitrust chief, Neelie Kroes, current antitrust chief as EU’s digital agenda commissioner and Karel De Gucht who will manage the trade portfolio.
Simon Taylor at the European Voice heads his article with ‘Big posts for large countries’. France secured the portfolio of internal market for Michel Barnier. who will also be responsibility for financial services. The ‘Voice’ also states the Liberals get their “reward’: Liberals get influential portfolios. Liberal Guy Verhofstadt in a VRT radio interview was pleased and stressed the importance of the fact that ‘all European economical issues will be in the hands of Liberals’.
Before the new Commission can take up its work, the European Parliament must approve the Commission as a whole. These “exam sessions’ might give some unexpected fireworks… to be continued.
Neelie Kroes to spice up European ICT
Kroes is held in high regard in Brussels for her work as competition commissioner in the outgoing Commission. She would have liked to continue in that capacity, but it is known that Commission president José Manuel Barroso is not in favour of commissioners succeeding themselves.
The NRC calls it a step down for this experienced liberal politician. We believe it will be an interesting challenge nevertheless, since there remain many monopolies in member states in the telecom domain. Her experience in the competition regulation will no doubt be of great value in tackling the issues ahead successfully.
Prime minister of the Netherlands Jan Peter Balkenende told public broadcaster NOS:
“She will have a portfolio that’s important for the future of Europe; she will be dealing with e-commerce, digitalisation, mobile telephony, broadband, all kinds of things that have to do with the new technological reality”.
Kroes (68) belongs to the right-wing liberal party VVD, which is currently in the opposition. Two weeks ago she complained that “party politics” were standing in the way of her being nominated for a second term as commissioner.