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?
Digital Europe: urgent action required
Digital Europe needs urgent action to become one and drive the economy
Datanews reports the Lobby group DigitalEurope calls out the clock is ticking to create the digital agenda, the action field of Commissioner Kroes. The Digital agenda, scheduled for May 18th, needs to be a strong message, to push agenda forward. "With a mere 7% of e-commerce across borders and each country still maintaining local rules, there is a lot of work to be done", says Erkki Ormala, President of Digital Europe in Brussels, where the lobby group presented ‘A Transformational Agenda for the Digital Age’. The association unites ICT-companies such as IBM, Intel, Apple, Nokia, Alcatel-Lucent, Cisco en Siemens.
The world is at a turning point. So is Europe. These are no ordinary times. What Europe needs is a transformational agenda. José Manuel Barroso, President of the European Commission, "A Vision for EU 2020" October 2009
Digital agenda is urgent and important
Gerard De Graaf, Head of Unit, Strategic Objective Prosperity of the European Commission, admitted there was a ‘sense of urgency’ is, but says he doubted that Europe is fully aware of this. “The importance of broadband is still underestimated", he stated. Anthony Whelan, Head of Cabinet of Neelie Kroes confirmed that on May 18th the document on the ‘Digital Agenda’ as part of the ‘EU 2020’ vision would be ready. He added the key is not technology, but people.
Poke – poke back
The DigitalEurope document can be a supplementary source of inspiration, with a series of quick wins in varied sectors.This is a serious 'poke', as they say on Facebook, where friends give each other a little "push", to confirm they're still there and show they care. Barroso II clearly wants to make ICT a spearhead of policy for the years to come. And rightly so. The poke will be seen as welcome, and no doubt will receive a "poke back". ICT is one of the cards to play in the transformation of Europe, and true, the tide is high, with the Bric countries knocking ever louder at the door (and who knows soon after the world cup BricS, with South Africa joining the world growth leaders?)
EU citizens’ initiative: E-Gov 2.0 in the making
Maros Sefcovic, European Commissioner for Education, Training, Culture and Youth today in the Guardian introduces
the European citizen's initiative. "Bringing Europe closer to its citizens" talks about opening a door to more participation
of EU citizens in policy.
With the digital tools available (and growing) throughout Europe, this initiative is an exciting step towards E-government 2.0.
It is an opportunity for citizens to claim 'their' Europe, instead of blaming Brussels for being self-centered and exclusive.
The EU Commissioner hopes for support of the European parliament and the member countries, to see the first
initiatives start early in 2011. Sounds like an excellent plan.
As mister Sefcovic states, the European citizens' initiative will challenge the complexity and detachment from its citizens
the EU is ofter accused of. But the idea can only work when it is embraced by the EU citizens. As often is the case in a
democratic system, new rules only have the effect on society that the people make of them.
Still, this is an exciting step forward in 'people power' in EU government.The proposal for the first time gives Eu citizens
the chance to call for new European laws.
As the new commissioner says:
It is a concrete example of what we talk about so often in Brussels: "bringing Europe closer to its citizens".
It is my conviction that fostering a lively cross-border debate about what we are doing in Brussels will lead
to better rule-making, inspired by the grass roots. I am very excited about this idea, which I believe represents
a real step forward in the democratic life of the union.
The process is simple: find 1 million signatures from at least 9 EU member states for your new law and Europe will
debate your proposal. People can sign up both on paper and online, making this a reasonable procedure.
The signatures will be verified and the idea checked to see if it falls within the powers of the EU. The next step then
is that the commission has four months to decide how to proceed. It can make a proposal for legislation, take other
measures such as a feasibility study, or can decide that it is not appropriate to take any action. But in the best
democratic tradition, the decision will have to be clarified and communicated in a report that is publicly available.
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 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.