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 the Europe-China love affair in trouble?
Is the love affair between China and Europe in trouble?
At the EU pavilion in Shanghai, the sun is shining on the alliance between the EU and the Middle Kingdom. The European Union shares a pavilion with Belgium at the 2010 World Expo. Under the “Movement and Interaction” theme, the presence is positive and dynamic. After Europe Day on May 9, next Sunday the Belgian Day is on the programme. Prince Filip of Belgium will pay a visit to the event.
But will high hopes, positive thinking and royal visits be enough to maintain the marriage between Europe and China?
What can be done? On foreignpolicy.com Jonathan Holslag of the Brussels Institute of Contemporary China Studies wrote that "Europe cannot back up its soft power with hard economic capabilities" in the green debate. The European Commission must better pool research projects scattered through Europe and persuade member states to do more.
The same applies to diplomacy. Europe should speak in one voice and with one mouth. With a clear position and insight in the logic and culture of the Chinese decision makers. The gap is real. And unity is the only answer. It is a necessity, in facing the growing Chinese dragon. Then the love between China and Europe can pick up and become truly passionate.
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 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.
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!
Greece starts marathon of change
If the Greeks do not regain the markets’ confidence, they may fail to refinance the €20 billion ($28 billion) debt due in April and May. And more billions to come in the months after. But besides this immediate crisis, Greece is running a marathon to restore their financial balance and credibility, The Economist indicates. To make things worse, they carry with them the weight of two centuries of default and fiscal trouble. Although all eyes are on Greece today, several other EU countries face these challenges, with Spain and Portugal leading the list.
One Greek commenter on this sharp article in The Economist, who calls himself 'Scepsis', wrote that this is truly an embarrassing time to be Greek and that it is difficult to argue that Greece is worthy of being called European. In his view Greece needs severe structural changes in labour laws, education, health, transparency, reduction in the rampant corruption (a major disincentive to foreign investment), tax evasion etc etc as well as a general change in attitude… Either they wake up, or the future looks really bleak…
The sorry state of Greece is a test not only for the country's policy makers but also for Europe.In 1985, Brussels already bailed out Papandreou 'senior', but the country did not change its attitude and policies at the root. Now the son and political heir George Papandreou indicates he will act firmly, Europe must and no doubt will be more vigilant this time around. The stakes are high indeed, as Papandreou said in a television address. The government has no choice other than to act with force to prevent the country of “falling over a cliff”. George Papandreou, who was born in St. Paul, Minnesota and went to high school in the US and in Sweden and studied at Amhurst, Stockholm University, LSE and Harvard seems the man who could lead his country out of the slum, but he will need the support of all, his adversaries included, to succeed.
The European Commission accepted Greece’s “stability and development” plan; later this month the European finance ministers are likely to approve it as well. Still, reducing the deficit from 12.7% of GDP to below 3% in 2012 seems an impossible journey. Besides severe austerity measures and drastic changes in the economy, the country truly will have to reinvent itself and run a marathon of change. Greek farmers today scaled back their protest, but at the same time Greece’s largest union announced plans to hold a general strike later this month. There is a lot of work to be done in facing the facts and getting all in on positive action, even when painful. Communication and permanent updating of the credibility effort will be key to a recovery. Europe should also step in and speak up. With a clear and loud voice. The credibility crisis is international, as stock markets today indicate loss in confidence yet again. The fear exists that this Greek financial virus can touch markets everywhere, in Europe and far beyond, reaching Australia.
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.
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.