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?
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.
Germany more Deutschland, less Europe?
Germany is becoming more Deutschland and less Europe again, it seems.
Angela Merkel is facing all kinds of criticism in her quest to keep the European family together and solvent. The Chancellor faces a tough agenda: tackle the financial crisis, prevent a coalition collaps and replace the German president. The price she pays for her European efforts is high. Loss of home voters and sliding confidence in her local market go together with growing criticism from other European countries on Berlin.
And the German captain does not like it. The Guardian heads with "Germany signals end of Love Affair". Ian Traynor writes the change in Berlin is a tectonic shift in the EU– from pushing Europe forward to balking at the sacrifices Germany has to make. France and Germany are not the united front they appeared to be. Merkel is said to imitate Sarkozy mockingly, while the French Chef is said to boast to his team how he has bested the German Chancellor.
Merkel yesterday went to visit the German soccer team, in preparation for the world cup. To show them support of course. No doubt at the same time to signal she still is first German and then European. Because this is her struggle too. She needs to balance the interest of her market as the central economic power in Europe with that of another power, the EU. And she needs to keep credibility high at home while doing so. Ian Traynor has a point when he says better communications offer the solution to that problem. The message should be loud and clear for all Germans that Europe is good for them. Angela should stress that Germany, as Europe's biggest exporter, benefits the most from a single and strong Europe. But the opposition has a field day. It is easier in politics to criticise 'the outside world' and preach nationalism, than to see that a bigger union of powers, even with major issues to solve, is the best choice.
"In the history of the European Union, " said Charles Grant, director of the Centre for European Reform thinktank in The Guardian, "I've never seen Germany so isolated before." This is not a good state of affairs. Germany should never be an outsider of debate and negociations in Europe. The logic for the German market also applies for Europe as a whole: Germany is both Deutschland and Europe, supporting one is supporting the other.
Belgium, new promotion as the Heart of Europe
Promoting a country for investors is a complex challenge.
The business logic must be sound. It has to dazzle the commercial minds. You have to woe the number crunchers and financial managers. The human resources angle needs to be covered fully and even transport and logistics must be checked.
But, the personal side in telling the story will tip you over. What really makes the difference is to bring across the emotion of belonging, pride and excitement. The music carries you; the faces of the people looking at you make you feel part of the story. Their quotes are like signed guarantee statements. And then you will say: "This is where I want to live and raise a family. Where I want to let my kids go to school. Where I will be happy." So every image and every line of copy writing must lead to that conclusion.
Promoting a country is an art. Of course it is offers cliches. But they are part of what sells, at least if they are based on facts. Just sorry they forgot to mention Antwerp is the second-biggest harbor in Europe. Nevertheless, heads off to the creators of this promotional film. Or as the Flemish would say in Belgium; "Chapeau!"
Comment reproduced with permission of www.firstbase.be
Euro muscles from Brussels
Europe reached agreement to show some Euro Muscles from Brussels
With a rescue package close to $1 trillion, the European Union confirms its commitment and strenght to hold the Euro fort. It has been under attack for several months now and it was high time to put on a show of force. 'E.U. details $957 Billion Rescue Package', the NY Times headlines. The speculation armies were attacking the gates of Fort Europe and reinforcements seem to have arrived just in time. The finance ministers from the European Union were under high pressure to come up with a strong answer, before the opening of the financial markets in Asia. And they showed that muscles from Brussels are firm in defense of the Euro currency.
High Noon
It was high time to show the financial world the Euro was not the best bet for speculators to mingle with. Hesitation and half action, soothing words without direct and firm steps had weakened the credibility of the Euro. The Greek drama, packed with emotion, mistrust, deceit, rioting and now even death, and the spreading crisis virus to other European markets had to be addressed. When the time frame is defined, suddenly things can come to a conclusion. It is a rule that debate and negotiations expand with the time allotted for reaching a decision. When you know time is running out, things often fall into place. In the early morning hours, a decision was reached. And the markets like it.
Euro response… muscles enough in the long term?
The deal provides $560 billion in new loans and $76 billion under an existing lending program, with the IMF adding $321 billion.
Olli Rehn, the European commissioner for monetary policy, was firm “We shall defend the euro whatever it takes”.
David Marsh, the author of “The Euro,” a book on the history of monetary union“ still shows some doubts on the rocky road to recovery:
"The fact that they are worried is clear. But I don’t think that there is enough commitment or economic firepower in Germany to provide the massive loan guarantees to satisfy the markets.”
At least the first signs in the market are positive, the trend is up. The psychological boost for the markets seems to work on the short term. Now the economies and the recovery plans themselves have to drive down the point. Let us hope the fort holds!
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 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.