Green development among European countries
Thursday is a big new day for green development for European countries. Unspent funds from the EU's economic recovery programme will be most likely redirected to fund energy efficiency and renewables projects. At least, that is if the Industry Committee of the European Commission will vote that way. A massive bulk of euros is expected to become green, giving new oxygen to the greening of economy in original projects.
In July, €250m were already approved for 210 new ecological projects, under the third call for the Life+ programme, the European fund for the environment which runs from 2007 to 2013. LIFE is the EU’s financial instrument supporting environmental and nature conservation projects throughout the EU, as well as in some candidate, acceding and neighbouring countries. Since 1992, LIFE has co-financed some 3115 projects, contributing approximately €2 billion to the protection of the environment.
The efforts of the EU to show its ecological side have been considerable over the least years. Barrosso II has made it into a spearpoint of its policy. The opening up of this treasure of positive action towards the general public merits bigger media attention. The green week is a good forum, but the media could do more, all through the year, to walk the walk and talk the talk of the green economy in Europe.
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.
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.