2015 in the Rear-view Mirror …

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Should 2015 be identified as the year of multilateralism? Despite the multitude of crises facing the West throughout 2015, the signature of three major multilateral agreements was not only meaningful, but will contribute to the shaping of world politics well beyond 2016.

2015, or the Year of Multilateralism

Could 2015 be seen as the year of multilateralism? Even if this question seems quite absurd considering the succession of negative news from terrorism, to economic slowdown, racism, populism, so on and so forth. But looking back, 2015 was to some extent the most promising year in recent years in getting regional and global leaders around the table and having them signed important documents. Three highly impactful agreements ought to be reviewed.

World-Climate-Summit-bannerFirst, the Paris Agreement of December 12, 2015 ought to be number one on the list. Yes, climate change is a reality. Yes environmental destruction is the greatest threat facing humanity. If polls, like the recent one produced by the Pew, show that Euro-Atlantic citizens feel that terrorism is the greatest threat to their security, they are certainly looking at it from a narrow angle. If ISIS has demonstrated to be effective at slaughtering unarmed civilians drinking coffee and listening to music, it does not represent the existential threat that climate change presents.

Source: Source: Carle, Jill. 2015. "Climate Change Seen as Top Global Threat Americans, Europeans, Middle Easterners Focus on ISIS as Greatest Danger." Pew Research Center. July 14. Online: http://www.pewglobal.org/files/2015/07/Pew-Research-Center-Global-Threats-Report-FINAL-July-14-2015.pdf [Accessed on September 15, 2015]
Source: Source: Carle, Jill. 2015. “Climate Change Seen as Top Global Threat Americans, Europeans, Middle Easterners Focus on ISIS as Greatest Danger.” Pew Research Center. July 14. Online: http://www.pewglobal.org/files/2015/07/Pew-Research-Center-Global-Threats-Report-FINAL-July-14-2015.pdf [Accessed on September 15, 2015]

The Paris Agreement (which will only come into force once signed by the Parties on April 22, 2016 and ratified by 55 Parties) is more a political victory than a great climate deal. The political victory comes as the developed and developing nations have finally been able to agree on a global agreement. For instance, the World Trade Organization (WTO) is unable to get its Doha Round anywhere and most of the global initiatives are going nowhere. But in Paris, world leaders were able to show unity for a cause. However, the document falls short as there are no enforcement mechanisms in place in order to penalize states that do not comply. The European Union wanted a binding treaty with serious teeth and got instead an Agreement pledging to limit GHG emissions in order to maintain global warming below the 1.5 degrees Celsius target and a 5-year review of national progress and target readjustments. More work needs to be done domestically in order to transform current models of production and ways of living, especially in the US, India, China and the EU, but it is a good starting point.

The second major success for multilateralism is the Nuclear deal with Iran. After almost a GTY_iran_world_leaders_ml_150402_16x9_992decade of negotiations initiated by the EU (remember the EU3+1?), the US under the leadership of its Secretary of State, John Kerry, was able to come to an agreement on the nuclear negotiations with Iran. If the US and European nations were quick on framing it as a political victory, such deal would not have been possible without China and Russia. Both nations were central in order to have Iran signed the deal.  If the Europeans were on the side of the Americans, it was quite uncertain throughout the process to count the Russians and Chinese in. But Russia has appeared as an important partner. For instance, on December 29, Iran shipped more than 11 tonnes of low-enriched uranium to Russia. But the deal came through and is, as the Paris Agreement, imperfect. At least, it permits to relaunch diplomatic relations with Tehran and re-includes Iran as a member of the international community. Some of the sanctions will be lifted, permitting Iran to sale its crude oil starting next year, in exchange for a discontinuation of the nuclear program.

The third major agreement is the signature of the Trans-Pacific Partnership (TPP). Since the collapse of the financial markets in 2008, which have caused an economic decline of the US and its allies and seen the rise of China, the US has initiated two major trade agreements: one with its Pacific partners (Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States, and Vietnam), the TPP, and one with its European allies, the Transatlantic Trade and Investmenttpp eng Partnership (TTIP). If the negotiations with European partners on the TTIP are still ongoing (read here a book on the topic), a result for TPP was finally reached in October 2015. In a document released by the Office of US Trade Representative, it is argued that “The result is a high-standard, ambitious, comprehensive, and balanced agreement that will promote economic growth; support the creation and retention of jobs; enhance innovation, productivity and competitiveness; raise living standards; reduce poverty in our countries; and promote transparency, good governance, and enhanced labor and environmental protections.” Regardless of the supports for such trade agreement, the TPP will have undeniably major impacts on regional and global economic and political relations. The US is solidifying its position in Asia and diplomacy is playing a big role in promoting cooperation. However, one question clearly remains: should have China been included in such deal?

Notable European Leaders in 2015

A paragraph could have been written on each of the 28 European leaders. But this piece focuses only on three EU leaders.

François Hollande, President of France, could very well be at the top of European leadership by the way he has maintained his position at the helm of France under such 98cebbe6a5319916285991f0e66baa545b8bf9bddegree of threats and instabilities. Economically, the French economy is not picking up. The French GDP growth is of 0.3% in the last quarter of 2015 with an unemployment rate of 10.6% illustrating a situation of stagnation and difficulties to draft and implement meaningful structural reforms. In addition, his approval rating in 2014 and early 2015 was around 13%, the lowest for all Presidents of the Fifth Republic. In the middle of these domestic turmoils and failed reforms, Paris was struck twice by terrorist attacks, once in January targeting Charlie Hebdo, and nine months later against civilians in a hipster arrondissement of the capital. Despite all these crises, François Hollande has been able to see an increase of his approval rating, avoid the take-over of regions by the Front National at the regional elections, and host one of the most welcomed global summits in Paris. 2015 was quite a year for François Hollande, whom has demonstrated serious skills of leadership against adversity. However, this is coming at a cost as he has taken a securitarian approach and is now passing laws, like the removal of citizenship, that are in complete opposition with the philosophical roots of his party (and arguably his own).

Angela Merkel, or the Emotional Leader of Europe. If François Hollande is shifting towards the right in order to make the homeland more secure undermining French

Generated by IJG JPEG Library
Generated by IJG JPEG Library

republican values, Angela Merkel has managed to maintain Germany in a sound economic direction (even though German economy is showing some signs of weakness), while becoming the emotional leader of Europe. Germany’s friendly policy of welcoming refugees was in some degree one of the most positive policies of 2015 in Europe. If EU Member States were calling for the construction of walls, use of army and other aberrations (Denmark planning to confiscate refugees’ jewelry) in order to stop the flow of refugees, Germany instead welcomed them. Angela Merkel’s decision to go against her political allies and political foundation illustrates one of the most human moves in Europe (read a recent piece here published in the New York Times). Chancellor Merkel may very well paying the cost of her actions if Germany is the target of a terrorist attack later on and struggle in integrating all these refugees.

David Cameron – The British Prime Minister was reelected in late Spring 2016 on an ultra-David-Cameron-Europenationalist and anti-european platform. Since his reelection, he has now identified himself as the British leader fighting for Britain’s national interests and integrity against the European Union. The publication of his demands to Brussels initiating negotiations in light of a future referendum about the membership of the UK solely responded to a national agenda without any clear vision for Britain’s future. Cameron is another European head of government with no long-term vision for his country and the Union. He embodies the shift of the past rights moving to the extreme without a clear political philosophy. Cameron’s polices have proven to be more based on ideology than facts.

Voices from Brussels?

What about HR Mogherini, President Tusk, President Schulz, and President Juncker? The heads of the largest EU institutions – EEAS, Commission, Parliament, and European Council – have not been that vocal at the exception of President Juncker at the ‘beginning’ of the migration crisis. The European leadership was pretty quiet throughout the year (at the exception of Commissionner Vestager going after the largest global corporations one after the other). Eventually 2016 could be the year for Federica Mogherini, whom is scheduled to release the new European Security Strategy in mid-Spring (read here an analysis on the current strategic thinking). 2016 could be as well the year for Donald Tusk, President of the European Council, as Warsaw will be hosting the 2016 NATO Summit. Such meeting in Poland will be important for two reasons: first, promote European principles and values in a country moving away from Europe’s ideals; second, it should address the ongoing regional crises from Ukraine, to Syria, to Iraq, Afghanistan and think seriously on how to engage with President Putin.

(Copyright 2016 by Politipond. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed without permission).

Tsipras, a Political Master

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Europe and the world should be taking a moment and reflect on the political mastery of Alexis Tsipras of Greece. In less than a year, Mr. Tsipras won two general elections, won a referendum and implemented contradictory policies, all this by changing his political standing and under terrible domestic and economic conditions. Aside from political ideology, Alexis Tsipras is undeniably one of the most talented European politicians. However has his mastery of politics translated into sound governing skills?

Early 2015, most Europeans, including a some Greek citizens, had never heard of Alexis Tsipras. The 41 year old tieless politician finds his political ideology in extreme left affiliated at first to the Communist Party. His political house is centered in the extreme left side of the political spectrum. After years of internal evolution in the Greek lefts, he then became the leader of the exteme-left wing party, Syriza (which means Coalition of the Radical Left) and was elected at the helm of Greece in February 2015. This was the beginning of his true political exposition.

Chapter 1: His election in February 2015 marked the end of the decade long transfer of power between the two leading parties. Tsipras was elected based on a program of anti-austerity policies, fight for Greek interests before the Troika (ECB, IMF, and Commission), increase of minimum wages, restauration of state employees and increase of pensions. If European media were deeply skeptical about his rise and thought that he would not last a year, they have appeared to be wrong. Ensuing his election, Tspiras disappeared from European minds until the looming of the deadlines for debt repayments of the IMF and ECB.

Chapter 2: The second chapter of his reign started several weeks prior the eventual default 478861728of Greece for the repayment of a  €1.5 billion to the IMF on June 30th, and a second one to the ECB mid-2015. These negotiations at EU finance ministers level and EU leaders level were extremely tense as neither Tsipras nor his finance minister, Yanis Varoufakis, wanted to accept the deal put on the table by the Troika and Germany. At the last minute, PM Tsipras called for a referendum on July 5th asking Greeks to decide on their fate: voting yes to the deal implied more austerity measures; a no vote was a rejection of the deal and could lead to a Greek default and leaving the Eurozone, known as a Grexit. Not only did Tsipras organized the referendum without noticing his European partners, but he campaigned for the no vote.

Chapter 3: The no camp, or Oxi, won the referendum with 61.3% and Europe was expecting a progressive departure of Greece from the Eurozone. Even President Juncker of the European Commission asked for a report on how to accompany Greece outside the Euro area. Instead of using his domestic mandate, Tsipras fired his finance minister (officially he resigned desipte winning) and went back to the negotiation table

ATHENS, GREECE - 2015/06/29: The word 'OXI' (NO) written on a banner in front of the Greek parliament. Greeks demonstrate in Syntagma square in support to a 'NO' vote in the referendum that will take place on the 5th of July, whether to accept the new agreement between Greece and it creditors. (Photo by George Panagakis/Pacific Press/LightRocket via Getty Images)
ATHENS, GREECE – 2015/06/29: The word ‘OXI’ (NO) written on a banner in front of the Greek parliament. Greeks demonstrate in Syntagma square in support to a ‘NO’ vote in the referendum that will take place on the 5th of July, whether to accept the new agreement between Greece and it creditors. (Photo by George Panagakis/Pacific Press/LightRocket via Getty Images)

requesting the initial deal. Germany refused and France played an important role of holding together the parties and the negotiations alive. Ultimately, Greece agreed on a worst deal than previously offered and Tsipras implemented additional austerity measures and required reforms. The deal entailed the following aspects: raising the age for retirement; a VAT hike at 23% across sectors; privatization of key sectors of Greek economy; and removal of tax breaks for some Greek islands. These reforms would permit to unlock a third loan package of €86 billion until 2018.

Chapter 4: Tsipras agreed on the second deal, agreed at EU level on July 13th, which was worst than the initial offer, and brought it back home for a vote. The Greek Parliament voted and agreed on July 15th, on the bailout deal, which was approved with a 229-64 majority. However, Tsipras’ party, Syriza, seems to have lost some unity with 32 Syriza MPs defying their leader’s pleas and rejected the deal. Throughout July and August, Tsipras was facing serious political criticism and opposition by the members of his own party. Syriza was divided between a radical branch, led by Mr. Lafazanis, and a more centrist one counting Tsipras. The radical branch of Syriza had not accepted the political move by Tsipras to go against the popular vote of the referendum. “Mr Lafazanis’s supporters speak of an ‘ideological betrayal’ and ‘treachery’ by Mr Tsipras’s faction.”

Chapter 5: On August 20th, PM Tsipras announced his resignation and his candidacy for the next general election that would take place mid-September. His rationale was to get reelected without the radical branch of Syriza. His political gamble worked as he was reelected with 35.5% of the vote and was able to drop the hard-liners from his party. Syriza won 145 seats out of the 300 seats of the parliament, only four fewer than after the January elections. In order to assure a majority, Tsipras agreed on a coalition with right-wing party Independent Greeks (ANEL) with its leader Panos Kammenos. ANEL is an ultra-nationalist anti-immigrant party, often compared to UKIP in the United Kingdom. With this alliance, the Syriza-ANEL coalition offer the majority with 155 seats in the Parliament to Tsipras. Even President of the European Parliament, Martin Schulz, expressed his concerns directly to PM Tsipras about this political alliance.

Political Talent over Governing Skills?

In less than a year, PM Tsipras has demonstrated his political talent in remaining alive and electable despite party, domestic and European pressures all this under dire economic conditions and an unemployment level around 25%. If Tsipras proved to the world that he cannot lose an election, he needs to now tackle the true problems of Greece: crony capitalism, clientelism, systemic corruption, and implementing structural reforms of the economy and state. The country has been on life line for over 5 years, its intellectuals are fleeing away, higher education is barely financed and Greece cannot even protect its borders. Winning elections is one thing, implementing reforms and governing are another.

(Copyright 2015 by Politipond. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed without permission).

VW-Google – Forget about Ethics and Think Transatlantic Retaliations

Credit: AP
Credit: AP

The recent allegations against Volkswagen (VW) for installing a devise allowing the company to have its 1.6 and 2.0 liters diesel models cheat test are scandalous. The VW case is nothing new in an highly competitive sector with extreme global competition. However, the turn of the debate in the United States about VW and its violations of the Environmental Protection Agency (EPA) testing these last five years do not tell the whole story about transatlantic trade competition. Interestingly enough, diesel cars only represent less than 1% of passenger vehicles in US, when it is more than 50% in Europe, and the EPA is the enemy number one of the Republicans and a large segment of American population distrust the agency. So based on the fact that all three elements, corporate ethics, environmental concerns, and small market share, rank low in the US, why would the US be so offended about VW cheating of EPA tests?

Without falling into conspiracy theory, could the US attacks against VW to be more a case of transatlantic warfare and retaliation against one of the biggest and symbolic European corporation? Could it be a retaliation for the European Commission’s cases against Microsoft and more recently Google?

VW Cheating and Systemic Failure

The VW scandal is based on the fact that VW has repetitively cheated on diesel car emission tests conducted by the EPA in the US and other agencies around the world. The company was selling its diesel models based on the claims that they were cleaner, more reliable, quicker, and greener than its competitions (one of the best discussions on the VWscreen shot 2015-09-18 at 4.55.17 pm case was done on the Diane Rehm’s Show, listen to it here).

The cheating did not only occur in the US. VW executives are saying that “vehicles in Europe with 1.6 and 2.0 litre diesel engines were also affected by the manipulations”. This could affect over 11 millions cars around the world on models of Jetta, Passat, Audi A3, Golf.

The VW group is one of the largest world carmaker counting brands like Volkswagen, Porsche, Audi and Lamborghini. In July the group overtook Toyota for the number one global carmaker. The cheating allegations have already costed the head of its chief executive, Martin Winterkorn, and the VW shares dropped by almost 35% on Monday and Tuesday.

Historically, the United States has not been a large buyer of diesel cars as opposed to its European counterparts. In the US, diesel is more expensive than traditional gasoline because of higher federal tax. However, in Europe it is the opposite for the simple reason that European countries have imposed less taxes on diesel than traditional gasoline. Less than 1% of passenger vehicles in the US are diesel engines, as opposed to over 50% in Europe.

European against the US – Google It…

Credit: Linda Henriksen/European Pressphoto Agency
Credit: Linda Henriksen/European Pressphoto Agency

In a matter of weeks in the month of April, the European Commission went after two global giants, Google and Gazprom, both with antitrust charges. Both cases are being headed by Margrethe Vestager, the E.U. commissioner in charge of competition. She has taken over the question of competition from a different angle than her predecessor Joaquin Almunia by tackling the perceived violators with antitrust charges. Both corporations are very important for the European market. Google controls over 92% of the Search Market Share in Europe, while Russia, through in part Gazprom, provides one third of the gas imported in Europe.

In the case of Google, Vestager is accusing the company of using its dominance in the European market with its search engine in order to advance its interests.

Source: Business Insider. 2015.
Source: Business Insider. 2015.

The accusation claims that Google, through its search engine, can artificially skew results favor its own shopping service at the expense of competitors. This is a direct violation of the core principle of the Single Market and fair competition. “Dominant companies” said Vestager “have a responsibility not to abuse their powerful market position by restricting competition either in the market where they are dominant or in neighboring markets.”

The antitrust case against Google, starting in 2008, illustrates the challenges of guaranteeing fair competition in the new age of the internet era. The case against Google was brought before the Commission by British price comparison site, Foundem. As reported by the Financial Times, “almost 20 complainants against Google want the search engine to abide by strict rules that ensure its formula treats its own services — providing results for travel, shopping and maps — no differently from rivals.”

An added dimension to the Google case is the gap between Europeans and Americans’ concerns and respect about privacy and data protection. The broad American surveillance program, revealed by Edward Snowden, created a serious transatlantic crisis. Interestingly enough, the European case against Google is the only one to stick, even though Google faced charges on three continents. In case of wrongdoing, the Commission has the power to levy fines of up to 10 per cent of Google’s global turnover.

Transatlantic Retaliation or Fair Game?

For the US to go after VW is to go after the powerful ‘Made in Germany’ and German engineering savoir-faire. It is about tackling the competition where it hurts. The US have been tough on foreign competitions with cases against KIA and Hyundai, for lying on fuel efficiency, as well as its own manufacturers with Ford, whom had put defeat devises on its minivans in the late 1990s, and against GM for mechanical defaults costing the lives of more than two dozens individuals.

Ultimately, this piece does not try to lower or even reject the accusations against VW, or even defend VW from any ethical wrongdoing. At the opposite, VW has been caught for cheating by putting a product on the market, which could qualify as an environmental crime. If legally, it will be difficult to trace back the environmental consequences of these cars, it has legal grounds for lying to the costumers on car efficiency and cheating on official tests. But aside blaming one company from wrongdoing, it is interesting to try to put a rational economic look into trade retaliation between two global giants, the EU and the US. Both economic powerhouses are competing on promoting their brands on the global car market, with Ford and GM for the US, and Daimler AG, VW group, BMW AG, PSA Peugeot Citroën, and Renault for the Europeans.

downloadThe Google/VW cases should be analyzed altogether, as there are cases of transatlantic competitions and retaliation. From Europe, the Europeans are demonstrating the lack of willingness and incentives by the US government to go after Google, one of the premium American companies, even though it has used its supremacy in order to promote its interests on the American market. Europeans are claiming that they have to do the job in order to guarantee fairness of competition on the internet market. From the US, the Americans are advancing themselves as the ones that have identified the cheating thanks to the EPA and the Californian authorities, and are denouncing the lack of supervision at the European level. The Americans are talking of environmental wrongdoing and systemic failure within the most powerful auto group in the world.

Interestingly enough, when Commissioner Vestager brought the case against Google in April 2015, she then travelled to Washington D.C. meeting her American counterparts. At the time of the meeting, other American companies were backing the European claims of Google’s violations. These American companies allowed “to head off accusations the action was inspired by German-led anti-Americanism.” In Germany, the VW scandal is shaking up the population and the FT reported in a recent piece that “People will ask why the Americans, who don’t really care about the environment, are attacking a German institution.”

Germany has been the European engine for the last decade and the strongest economic pillar of Europe since the collapse of the world market. Germany economic model is directly based on an export driven economy. The automobile sector represents 2.7% of German GDP. Most car sales are made by the VW group, 70% of them are sold outside of Germany, and the group employs nearly 600,000 people around the world, and more than a third of the 775,000 people who work in the auto industry in Germany (these numbers come from CNN money’s website). Attacking the VW group will have some impact on the German economy and ultimately European economy. “If nobody else has done it, the damage would be limited. If it looks like it’s more companies, not just Volkswagen, it would be a major problem for the German car industry, and the German economy overall,” said Theo Vermaelen, a finance professor at INSEAD.

Are VW/Google cases in order to protect the consumers, data privacy, morality, ethics, and competition? It is difficult to believe it. They seem to simply be transatlantic retaliation in an more than ever-competitive global market.

(Copyright 2014 by Politipond. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed without permission).

Providing Leadership – Juncker’s Call for ‘Collective Courage’

Photo: Euranet Plus/Flickr
Photo: Euranet Plus/Flickr

The current context in Europe over the migration crisis is not going to stop any time soon (for more contextual and analytical information read previous pieces published by Politipond, here, here, here, here, and take a short survey here). If migrants are not dying at sea, national authorities like the ones in Macedonia, are using force against migrants seeking to cross the country to access Western European countries (see here several pictures showing the situation in Macedonia). The situation is clearly worsening on daily basis.

The French President and his German counterpart are meeting today in order to discuss the migration crisis and the situation in Ukraine. Germany has been the EU Member States, with Sweden, taking the largest share of refugees, but it cannot do it alone any longer. According to the Financial Times, Germany is expected to receive 800,000 asylum seekers this year, which is more than what the entire EU welcomed in 2014. Based on Frontex’s data, in the first eight months of 2015, 340,000 migrants have crossed EU borders, which is already 60,000 more that the overall number for 2014.

If the EU Member States are working, or not, on solving the migration crisis by either welcoming migrants (Germany and Sweden) or trying to chase them away (Hungary and the

Photo: AP
Photo: AP

United Kingdom), the European Union has contributed to solving the issue, but without a clear leadership and strategy. For instance, Frontex has seen its role quickly increasing with more funding of its two naval missions in Italy and Greece, Europol has worked more on assisting national authorities, the EEAS has provided a platform in order to coordinate, and the Commission has been the voice of the EU and brought up some projects. For instance, Jean-Claude Juncker, the President of the Commission, brought in June and July some proposals on quotas, redistributions, reform of asylum policy and so forth. His recent op-ed in NewEurope, posted below, offers the leadership that is missing and is highly needed at the European level.

Naturally, EU Member States are working on protecting their interests and national borders, the EU is a central actor in recalling that migratory flux go beyond national borders and the current crisis can only be solved through European cooperation, coordination and solidarity. In short, President Junker is calling for “Collective Courage.” The word courage is more powerful than solidarity for two reasons: first, despite many calls, solidarity has not brought Europeans together; second, courage implies that each European head of state and government (and even each European citizen) will have to make the ‘right’ decision and go against short-termist nationalist rhetorics. This position by Juncker to work on a common European solution reflects in many ways to his original call, once appointed last summer, for a more human and social Europe (read here an analysis soon after his appointment last summer).

Juncker’s op-ed, which should be understood as a call for action, comes at a crucial time and should be read in one piece without further comments. For such reason, Politipond copied it in its entirety below (or it can be read on NewEurope’s website here):

The European Commission President, Jean-Claude Juncker, writes on the challenge of the migration issue. By Jean-Claude Juncker

Europe for me is and always has been a community of values. This is something we should be and yet are too seldom proud of. We have the highest asylum standards in the world. We will never turn people away when they come to us in need of protection. These principles are inscribed in our laws and our Treaties but I am worried that they are increasingly absent from our hearts.

When we talk about migration we are talking about people. People like you or I, except they are not like you or I because they did not have the good fortune to be born in one of the richest and most stable regions of the world. We are talking about people who have had to flee from war in Syria, the ISIS terror in Libya and dictatorship in Eritrea.

And what worries me is to see the resentment, the rejection, the fear directed against these people by some parts of the population. Setting fire to refugee camps, pushing back boats from piers, physical violence inflicted upon asylum seekers or turning a blind eye to poor and helpless people: that is not Europe.

What worries me is to hear politicians from left to right nourishing a populism that brings only anger and not solutions. Hate speech and rash statements that threaten one of our very greatest achievements – the Schengen area and the absence of internal borders: that is not Europe.

Europe is the pensioners in Calais who play music and charge the phones of migrants wanting to call home. Europe is the students in Siegen who open up their campus to accommodate asylum seekers who have no roof over their head. Europe is the baker in Kos who gives away his bread to hungry and weary souls. This is the Europe I want to live in.

Of course, there is no simple, nor single, answer to the challenges posed by migration. And it is no more realistic to think that we could simply open our borders to all our neighbours anymore than it is to think we just cordon ourselves off all distress, fear and misery. But what is clear is that there are no national solutions. No EU Member State can effectively address migration alone. We need a strong, European approach. And we need it now.

That is why in May, the European Commission, under my leadership, presented detailed proposals for a common asylum and refugee policy. We have tripled our presence in the Mediterranean sea, helping to save lives and intercept smugglers. We are assisting Member States the most affected, sending teams from the EU border agency (Frontex), the EU asylum office (EASO) and the EU police network (Europol) to help the often overburdened national authorities identify, register and fingerprint incoming migrants, speed up the processing of asylum seekers and coordinate the return of irregular migrants. We are clamping down on smuggler networks and dismantling their cruel business models. We are showing solidarity with our neighbours like Turkey, Jordan and Lebanon by resettling 20,000 refugees from outside of Europe. We are working with third countries of origin and transit to open up legal channels of migration and to conclude readmission agreements to facilitate returns of people who do not have a right to stay in Europe. And we are putting a renewed focus on enforcing the recently adopted EU rules on asylum, from reception conditions, asylum procedures to the obligation to take fingerprints.

In May, we proposed to establish a relocation mechanism to assist Member States by relocating a small portion of the high numbers of people in genuine need of international protection arriving in Italy and Greece. The Commission proposed to relocate 40 000 to other EU Member States – national governments were prepared to accept just over 32 000. We want to go much further, establishing a permanent mechanism that could be automatically triggered in emergency situations – for whichever EU Member State needs it. When we have common external borders, we cannot leave frontline Member States alone. We have to show solidarity in our migration policy.

Some of the measures proposed by the Commission have already found support. All the others now urgently need to be taken up by the EU’s 28 Member States – even those who have until now remained reluctant to do so. The dramatic events of the summer have shown that we urgently need to put this common European asylum and refugee policy into practice.

We do not need another extraordinary summit of heads of state and government. We have had many summits, and we will meet again in November in Malta. What we need is to ensure that all EU Member States adopt the European measures now and implement them on the ground. The Commission already proposed, nine years ago, to have a common EU list of ‘safe countries of origin’, making it possible to fast track asylum procedures for specific nationalities. At the time, Member States rejected the idea as interfering with national prerogatives. And yet it does not make sense that on the one hand, Member States have decided to make Western Balkan countries candidates for EU accession and, on the other, nationals of these countries are applying for asylum in the EU. In September, the Commission will thus submit a common list of safe countries of origin to the Member States.

What we need, and what we are sadly still lacking, is the collective courage to follow through on our commitments – even when they are not easy; even when they are not popular.

Instead what I see is finger pointing – a tired blame game which might win publicity, maybe even votes, but which is not actually solving any problems.

Europe fails when fear prevails. Europe fails when egos prevail.

Europe will succeed if we work together, pragmatically and efficiently.

I hope together we, Member States, Institutions, Agencies, International Organisations, Third Countries, can prove we are equal to the challenge before us. I am convinced we are able.

Europe’s history if nothing else proves that we are a resilient continent, able to unite in face of that which seeks to divide us. This should give us courage for the weeks and months to come.

Juncker’s op-ed was initially published on NewEurope’s website.
(Copyright 2015 by Politipond. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed without permission).

Will Tsipras 2.0 be better than Tsipras 1.0?

Photo: AFP
Photo: AFP

Alexis Tsipras resigns after seven months in power, but is seeking for reelection in elections in late September. His time at the helm of Greece was marked by a impossible conundrum: defend Greek interests against powerful European and international forces, ending the austerity while finding growth, and dealing with an ideological split within his party.

Prime Minister Tsipras is calling for a new round of elections, most likely scheduled for September 20th, and he will lead the Syriza party. “I believe we haven’t yet seen our best days” announced the Prime Minister on television “and I’m going to ask for the people’s vote to govern this country – with more experience, with my feet more firmly on the ground.” With a disastrous economic and fiscal situation, Greece is now facing even deeper political uncertainties. With his resignation the country will be governed by an interim-government until the next snap elections in September 20th. Tsipras is leaving office for a better comeback and freeing himself from the rebels of his party. He is looking to “return to power with a more manageable coalition.”

Reflection on Tsipras’ First Tenure

Several points need to be reflected upon his time in office. First, PM Tsipras came into power based on an anti-establishment campaign. His extreme-left party, Syriza, took the power based on many promises: defending Greek interests by ending the international and european austerity measures; and an anti-establishment campaign.

Second, his time in office was quite smooth until the looming of the deadlines for repayment of the IMF and ECB loans. Even though he remains one of the most popular politicians in Greece, the summer has created serious political tensions within his party Syriza. The fight between Greece and the Troika (ECB, Commission, and IMF) over an agreement after missing the initial deadline forced the Tsipras’ government to close Greek banks for almost three weeks. Tsipras was obliged to agree to the terms requiring tax hikes and further spending cuts under the threat of complete collapse of the Greek banking system (read here a past analysis). The deal with European creditors infuriated members his party Syriza, but Tsipras managed to get it approve through the Parliament with the help of the opposition.

Third, the resignation of Alexis Tsipras, which should be seen as a two-step process – first the referendum, and second the agreement to the terms of the bailout – marks in some ways a complex existence and survival of socialism in Europe. To many, Alexis Tsipras was the last embodiment of socialism in Europe. Now the question is: was the international market seeking to make a point in going after Tsipras? With Tsipras’ departures, it seems that austerity measures have become the European landmark in solving deep structural economic crisis. But if reelected, Tsipras would be a much more centrist politician than seven month ago. Tsipras had to move towards the middle creating a split with the radical core of his party.

Referendum, Bailout and Political Tension

When did it go all wrong for Tsipras? And, did it go wrong for Tsipras? For many Europeans, PM Tsipras lost the battle after calling for a referendum and advocating for the no vote (remember the oxi?). In retrospective, the results of the referendum actually did not matter, aside for many Greeks feeling that Tsipras tried to defend them. The referendum was perceived by European partners, especially the Germans, as an act of treason. Greece was already on the thin line with his Eurozone partners since the collapse of its economy and the first bailout five years ago. Greece had mis-behaved and lied to its partners (read here a previous interview on the topic). The referendum was another act of treason for European partners. Once Greeks had voted in favor of the no

ATHENS, GREECE - 2014/10/13: MP with the SYRIZA political party, Mr Panagiotis Lafazanis, talks with a megaphone to the demonstrators expressing SYRIZA support. Kurdish people that live in Athens organised a demonstration in support of the Kurdish fighters that defend the Kobani town in Iraq from ISIS insurgents. (Photo by George Panagakis/Pacific Press/LightRocket via Getty Images)
Photo: George Panagakis/Pacific Press/LightRocket via Getty Images

vote, and a week later PM Tsipras agreed to the new terms of a third bailout, his time was counted. His vocal lieutenant, finance minister Yanis Varoufakis, announced his resignation days after the victory of the no vote. Once Varoufakis was gone, and Tsipras agreed with the terms (criticized by the IMF) and started his transition towards the center. But in some ways, Tsipras’ fate was sealed, or not? In addition, it created a real ideological split within Syriza. Tsipras is undeniable moving towards the center, while the old guard of Syriza, led by the former Energy and Environment Minister, Mr. Lafazanis, have not changed their position. On the referendum, The Financial Times reported that “Mr Lafazanis’s supporters speak of an ‘ideological betrayal’ and ‘treachery’ by Mr Tsipras’s faction.” The paradox between calling for the referendum opposing the bailout and then accepting the terms of the bailout created an unsustainable political condition for Tsipras.

Some experts and media are comparing Greece to a European protectorate (at least in the leftist literature) after the agreement on the third bailout’s terms. But aside from asking for the approval of his policies, does Greece need another election in such dire times? Tsipras is gambling on a new election in order to get rid of rebels, or what The Economist calls the ‘wild ones,’ build on its domestic legitimacy, and try to govern and reform Greece with a fresh flow of money. Let see if Tsipras can win another election, and how different will Tsipras 2.0 be from the Tsipras 1.0? Can Tsipras 2.0 bring Greece to reform and become a growing and sustainable country under the current conditions? This remains to be seen.

(Copyright 2015 by Politipond. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed without permission).

Greece votes Oxi, Europe says Grexit

ATHENS, GREECE - 2015/06/29: The word 'OXI' (NO) written on a banner in front of the Greek parliament.  Greeks demonstrate in Syntagma square in support to a 'NO' vote in the referendum that will take place on the 5th of July, whether to accept the  new agreement between Greece and it creditors. (Photo by George Panagakis/Pacific Press/LightRocket via Getty Images)
ATHENS, GREECE – 2015/06/29: The word ‘OXI’ (NO) written on a banner in front of the Greek parliament. Greeks demonstrate in Syntagma square in support to a ‘NO’ vote in the referendum that will take place on the 5th of July, whether to accept the new agreement between Greece and it creditors. (Photo by George Panagakis/Pacific Press/LightRocket via Getty Images)

“All of us are responsible for the crisis and all of us have a responsibility to resolve it.” – President Donald Tusk, July 7th, 2015

Greek citizens voted in majority Oxi to the July 5th referendum. The question asked by the Tsipras government, which was campaigning for a ‘no’ vote, was yes or no to accepting a continuation of the bailout program with all the austerity measures coming with it (read here a previous analysis). The results were very clear throughout the country with 61.31% for the no vote and 38.69% for the yes vote (see here the map produced by the Gr20150711_woc001_0eek Ministry of Interior showing that the no vote won in each Greek region). Greek citizens felt that the best option – out of two bad – was to reject the terms of the bailout on the table. If for a day the discussion was about the meaning of the ‘no’ vote (is it against the EU, the Euro, or simply a desire to remain a member of the Eurozone), today’s reality is about the future of Greece as a member of the Eurozone. So where do Greece and the EU go from now on?

Negotiations and Survival

In less than two days, a succession of events has taken place. For over five years, it seems that the Greek file was dragging, it has certainly taken an all new meaning and urgency. Prior to the results, Chancellor Merkel of Germany was meeting her counterpart, President Hollande, in Paris in order to find a common ground. The day ensuing the political victory of the Tsipras government, the infamous Greek finance minister, Yanis Varoufakis, announced his resignation. Many advanced that Tsipras had to go in order to demonstrate to his European counterparts that Greece was serious in seeking for a viable option. Varoufakis had gone too far and had lost some of his support within the Eurogroup of finance ministers.

Then on Tuesday, an emergency summit meeting took place with no substantial results.

Credit: Yves Herman/Reuters
Credit: Yves Herman/Reuters

Tsipras was supposed to bring, as highly recommended by the French government, a new proposal. But the summit meeting failed as Athens did not provide an acceptable option. Tsipras has now until Thursday (as requested by Merkel) in order to present a new proposal to his creditors. A failure in finding an agreement could lead to “the bankruptcy of Greece” warned Donald Tusk, the president of the European Council, “and the insolvency of its banking system.” Tusk added that “tonight I [Donald Tusk] have to say it loud and clear — the final deadline ends this week.” On Sunday, as announced by the 19 eurozone countries on tuesday, the 28 EU leaders will be deciding on the future of Greece.

In addition, the New York Times reported that for the first time – at least publicly – the President of the Commission, Jean-Claude Juncker, has announced that he has “a Grexit scenario prepared in detail.” If a Grexit scenario is now on the table, Tsipras will be defending his case before the European Parliament on Wednesday morning.

Consequences of Staying in the Eurozone, or Leaving It?

In the middle of the negotiations and in finding a solution, a key player is the European Central Bank (ECB). Currently the ECB is the institution that is keeping the Greek banks alive by providing liquidity. Because today Greece is unable to borrow money on the international market and the Europeans are the one providing money to Greece in order to have its economy and banking systems going. The ECB will continue to do so if a deal is agreed. However, in the case of a break-up, the ECB will remain a central player as it will stop providing liquidity to Greece. In addition, even if Greece missed its first payment of July 1st to the International Monetary Fund of $1.8bn, the second deadline of July 20th to the ECB of $3.8bn will be key for Greece and the EU.

If Greece wants to stay in the Eurozone, they will have to implement a set of policy measures that will require: tax reforms; fixing the pension program, which will affect early retirement program; labor market practices. Once these are ongoing the international and european creditors will have to give meaningful debt relief.

In the case Greece decides to leave, or is expelled from the Eurozone, then it will have to introduce a new currency. The country will ultimately default on their debts, and will have to create its own economic agenda in order to lay down the foundation for future economic growth. This scenario will naturally require serious structural reforms.

If Size does not matter, Precedent does

The Greek case is not about the size of the Greek economy. In fact the Greek economy only represents 2% of the Eurozone GDP. So far it does not appear that a Greek default could take with it the whole Eurozone and send a massive shockwave throughout the global markets. No, the case of Greece is a matter, for the EU and its Member States, of establishing a precedent. Germany and other wealthy Eurozone members want to avoid such precedent, where a member state refuses to pay its debts and call for a national referendum in order to provide such country leverage at the European level. Chancellor Merkel was correct in claiming that Greece is a sovereign state and has the right to organize such a referendum, however what type of legitimacy does that provide the Tsipras government in coming back at the bargaining table?

The Greek referendum is national decision on a complex financial question. But the Greek referendum does not affect the decision of Greece’s creditors. If the vote empowers Tsipras domestically, it does not at the European level. Now, Tsipras has to navigate in these tumultuous waters of a domestic electorate, opposed to additional austerity, while providing a proposal acceptable to his creditors, most of them highly in favor of additional austerity measures. Tsipras seems to be facing a conundrum, either remaining in the Eurozone and what it entails, or leaving the Eurozone, and dealing with the consequences of a default.

In the mid-term, there are many technicalities that need to be figured out if Greece decided to leave the common currency. The legal baseline is the 1992 Maastricht Treaty,

Photograph by Federico Gambarini — picture-alliance/dpa/AP
Photograph by Federico Gambarini — picture-alliance/dpa/AP

which does not provide any information in order to leave the common currency. In the contemporary European history (aside from the collapse of Habsburg empire), there are no precedents, no rules and no plans in order to leave a common currency. But with a return of the Drachma, the real question for the Greek government will be about the exchange rate between the Drachma and the Euro as all Greek accounts are in Euros. At the end of the day, the Greek savings will be severely devaluated causing massive financial losses.

The Greek drama illustrates the complexity of the unfinished European construction. Since the Treaty of Maastricht of 1992 laying out the current foundations of the European Union, the Member States have avoided any decisions for furthering/deepening the integration process or completely loosening it. Today, if Greece is in such trouble, is certainly because of its domestic problems (high level of corruption and lack of structural reforms), but as well because of an integration à la carte of the Eurozone. At the end of the day, a Grexit or not is only a technicality. The real question is: will the Eurozone members be working once and for all on finalizing a fully integrated and functional Eurozone?

(Copyright 2015 by Politipond. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed without permission).

Euro-tic – The European Nightmare?

trash

The EU is stuck for one reason or two, its euro-tic dilemma. The EU is stuck between 1+28 chairs: the European chair (European level) and the National chairs (Domestic forces). The challenges facing the EU can be solved through two types of policies: either through more integrated policies, or through individual/national policies. However, the current status-quo centered around this Euro-ticism is unsustainable in the short-, mid-, and long-term.

Today two pressing issues are facing the EU with serious consequences if left unresolved, the migrant crisis in the Mediterranean Sea and the Greek debt crisis. Both crises are challenging and complex in their root causes, in the policy design to solve them, in the policy implementation, and on top of it the outcomes – positive or negative – will only be visible in the mid- and long-term. Considering the current negotiations process at the EU level due to the institutional design of the EU and the domestic pressures no viable and sustainable long-term solutions can neither be designed nor adopted.

Fortress Europe

In the case of the migration crisis in the Mediterranean sea, the EU and its 28 Member States are failing in trying to solve the crisis. So far the only solution has been to increase the funding of the EU agency, FRONTEX, by providing more money and capabilities to EUNAVFOR Med. Nevertheless, the CSDP operation does not have a search and rescue mission, only a border management mandate (refer to chart here). So the EU will be patrolling around Italy and Greece in order to assist the member states in the protection of Europe.

_82453476_migrant_routes_624_14_15_v3

The solution seems quite simple, an orchestrated distribution plan between the 28 Member States to accept a number of refugees over a 10 year period by offering them a blue-card (similar to the American green-card) allowing them to integrate and find a job in Europe. Such policy is sustainable and acceptable based on European values and norms. Additionally, it would work as most of the migrants trying to reach Europe are principally composed of members of the middle-class in their home countries destroyed by war, terrorism and

Source: The Economist
Source: The Economist

other sorts of crisis.

It is difficult to imagine that neither France nor Germany cannot assimilate 1000 refugees on year basis. Even if this policy could work on the long-term, it would be political suicidal for Chancellor Merkel and President Hollande to come home with such plan. The domestic radical forces (right and left) would build such a front against the leadership that their political parties would not survive another elections.

Grexit or Nothing?

In the case of the Greek debt crisis, the Euro-tic dilemma is once again ever more present. For over five years, the Greek hot potato has been switching hands in Europe. The present crisis, between Prime Minister Tsipras and the Troika (Commission, ECB, and IMF)+Germany, illustrates the euro-tic tension facing the EU and its Member States. Greece is on the verge of defaulting on its debt of €1.5 billion to the IMF on June 30th (some news in the media claim that an agreement will be reached). The

Photo: AP
Photo: AP

country is dealing with a debt of €130 billion representing 180% of its GDP.

Like the migration crisis, the solution would consist in deepening the integration process of the Eurozone. The Eurozone cannot have several gears with on the one hand the ECB in charge of monetary policy and on the other 19 individual fiscal policies.

In the case of Greece, one solution could be to pool the debts of all Eurozone members, naturally keeping track of the percentage of each national debt. One common debt would allow better interest rates and strengthen the Eurozone. Naturally, most European citizens would feel cheated if their elected officials came back home after agreeing on such policy. The domestic price for such policy choice would be serious for national leaderships.

Photo: AFP
Photo: AFP

The solution for Greece is only long-term at the EU and national level. For the EU, the Member States may have to revisit the treaties and address the weaknesses once and for all. This will not happen as most EU leaders are reticent to touch at the treaties – the last one, Treaty of Lisbon, was a continuity of the failed Constitutional Treaty of 2004 -. Several EU Member State’s constitutions require a referendum in order to validate a Treaty. That would probably not pass the domestic vote.

Greece, one of the weakest Eurozone members, is seeking for a ‘silver bullet’ at home. The Grexit seems a possibility – as opposed to five years ago -. Tsipras is now talking with Russia and signed an energy deal with the country, which is under European sanctions. Moscow and Athens deny talks of an eventual financial assistance. Such move by Athens is quite an aberration considering the current sanctions implemented by the EU against Russia for its annexation of Crimea and continuous involvement in the war in Ukraine.

If Greece is in such precarious situation it is because of its recurrent and embedded problem of corruption and mismanagement of money. In order to really make Greece a sustainable EU and Eurozone member, Greece will need to do some serious structural reform and get once and for all ride of corruption. These will take at least a generation.

Euro-tic nightmare, or the end of solidarity

The tension between European and domestic levels has always been present throughout the European construction. So far, it was manageable because of lesser number of Member States, ‘better’ national leadership, and most importantly a continuous economic growth. The 2007 financial crisis changed everything. Solidarity is much easier in time of growth than hardship. Today, domestic public opinions, throughout the Union, feel more comfortable with extreme political parties – see the latest results of elections in Poland and Denmark – calling for a return to inward looking and revisionist policies than with more center political parties unable to govern. Big Member States, like France, are flirting with extreme right and Britain is getting ready for an eventual secession from the Union.

Ultimately, the Union and its national governments are unmanageable. In this period of socio-politico-economico troubles surrounded by serious geopolitical crises and shifts, the European dream of an ‘ever closer union’ seems on the brink of collapse. EU leaders ought to bring more EU into their domestic policies and narratives, and the EU needs to build new bridges towards domestic electorates. Europe is entering a real period of darkness.

(Copyright 2015 by Politipond. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed without permission).

Agenda on Migration – Forget about Soft Power and Solidarity

photo_verybig_168517

With the death of 600 migrants in April, the EU and its Member States have been working on finding a solution to a serious and pressing regional crisis. In a matter of a month several proposals, with diverging philosophical orientation, have been drafted. On the one hand, the Juncker’s proposal, initiated by the European Commission, seeks in deepening the integration process through an harmonization and homogenization of EU immigration and asylum policies. While on the other hand, the Council of the EU agreed on the creation of a military CSDP naval mission, EU Naval Force in the Mediterranean (EUNAVFOR-Med), in order to disrupt smugglers. Even thought the Juncker’s proposal addresses a long-term need, it fosters opposition in most EU Member States, while EUNAVFOR only provides a quick and superficial fix to the problem of mass migrations. So far the EU and its Member States have not found the proper answer to this crucial regional crisis.

The Juncker’s Proposal: European Agenda on Migration

The European Commission presented its European Agenda on Migration on May 13th in order to contain and solve the current crisis taking place in the Mediterranean sea. The publication of the Commission’s agenda is a reaction of the massive influx of migrants and refugees coming from Libya, a transit country (read here a previous analysis on the migration crisis). Ensuing the largest human tragedy causing the death of 600 migrants in mid-April and an extraordinary European summit meeting leading to no real lasting solutions, Jean-Claude Juncker, President of the Commission, declared on announcing its Agenda that “We will be ambitious. We will be bold.”

The Agenda produced by the Commission laid out several policies. The first one consists in finding solutions through immediate actions:

  • Tripling the capacities and assets for the Frontex joint operations Triton (off the coasts of Italy) and Poseidon (off the coasts of Greece) in order to save lives;
  • destroying criminal smuggling networks through a possible Common Security and Defence Policy (CSDP) operation in the Mediterranean to dismantle traffickers’ networks and fight smuggling of people. Federica Mogherini, EU foreign policy chief, was at the UN Security Council on May 11th seeking for a UNSC resolution allowing EU Member States “to deploy military force to seize and destroy smugglers’ ships before they take on their human cargo”;
  • Relocation of migrants;
  • an EU-wide resettlement scheme to offer 20,000 places distributed in all Member States. The EU budget will dedicate an additional €50 million in 2015/16 to solve this problem;
  • Working with third countries in order to solve the root causes of migrations;
Source: EurActiv
Source: EurActiv

The infogram produced by EurActiv (see above) illustrates which EU Member States are the largest recipients of migrants and refugees and the main destinations. No surprise in finding Germany, France, Sweden and Italy as the main destination for migrants and refugees.

The second dimension of the Commission’s Agenda is about managing migration better on the long run.

  • first, the EU wants to address the root causes of migrations, crack down on smugglers and traffickers, and provide clarity in return policies;
  • second, develop better border management capabilities and increasing the power of Frontex;
  • third, develop a common asylum policy at the EU level. The Commission wants to create a Common European Asylum System;
  • fourth, a new policy on legal migration in order to attract skilled workers to the EU. The Commission wants to solidify a Europe-wide scheme, called the Blue Card Directive;
Source: European Commission
Source: European Commission

National Oppositions to the Juncker’s Proposal

All the EU Member States are not welcoming these new directives. For instance, the United Kingdom has announced that it would not participate in any quota scheme to distribute refugees across EU. In the case of Britain and Ireland, both countries have an ‘opt out clause’ allowing them to decide to participate or not on a specific program of this nature. The Home Office of the UK already released a statement saying that “We [Britain] will not participate in any legislation imposing a mandatory system of resettlement or relocation.” For Denmark, the country has an opt-out right where they do not participate at all. “The exemptions granted to the three countries are making it difficult for the commission to impose binding quotas on the 25 remaining EU member states, EU sources told AFP.”

The position of several EU Member States challenges the concept of European solidarity. “The European Council clearly stated that we need to find European solutions,” said First Vice-President Frans Timmermans “based on internal solidarity and the realisation that we have a common responsibility to create an effective migration policy.” Dimitris Avramopoulos, Migration, Home Affairs and Citizenship Commissioner, underscored the same message when saying that “In a spirit of greater solidarity, we are determined to implement a comprehensive approach that will improve significantly the management of migration in Europe.”

France already announced over the weekend that it was against the provision (read here a piece by Politico on France’s position). In case the quotas were to be implemented, “France would be asked to accept 14.17 percent of all those who reach the EU, while Germany would receive 18.42 percent, Italy 11.84 percent, and Spain 9 percent.” Instead France would be in favor to increase the number of asylum seekers. “Asylum is a right, attributed according to international criteria …” said French Prime Minister Manuel Valls, “That is why the number of its beneficiaries cannot be subject to quotas, one is an asylum seeker or not.” The Commission’s plan was rejected by seven other EU Member States, Czech Republic, Estonia, Latvia, Lithuania, Slovakia, and Poland. These ought to be added to the three EU Member States with opt-out rights like Britain, Ireland and Denmark.

The difference between the quota system and the current asylum rules is quite simple. By implementing a quota system, the Commission seeks in helping frontline states, like Greece, Italy and Spain, and sharing the burden across the EU. While the current system of asylum, established under the Dublin II, stipulates that the asylum seekers ought to ask for asylum in the country of arrival. The Commission’s plan is in fact a strategy in order to avoid frontline countries to be overflow by migrants, refugees, and asylum seekers in case of an explosion of migrating flux as predicated for 2015 and the coming years.

This agenda produced by the Commission is unlikely to be adopted as such. The foreign ministers discussed the agenda on May 18th, and will be preparing for the final plan for the June 25 EU leaders meeting.

The Military Option – EUNAVFOR to Combat Migration

Photo: Lynsey Addario for The New York Times
Photo: Lynsey Addario for The New York Times

Ensuing the May 18th meeting between European foreign and defense ministers, the EU agreed on the launch of a CSDP naval mission in order to stop and disrupt smugglers in the Mediterranean. In the conclusions of the meeting, the Council argued that “This [global security environment] calls for a stronger Europe, with a stronger and more effective Common Security and Defence Policy (CSDP).”

The EU naval force – EUNAVFOR Med – will be based in Rome and headed by Italian Rear Admiral Enrico Credendino. EUNAVFOR Med will cover the Southern Central Mediterranean road and work in partnership with Libyan authorities. It will receive an initial 12 month mandate and a budget of €11.82 million for the first phase. As per HR Mogherini, EUNAVFOR will follow a specific progression: first stage, planning and assessment of smuggling networks; second stage, searching, seizing and disruption of assets of smugglers within the framework of international law.

However, in order to launch the naval mission, several crucial aspects will need to be discussed and agreed on. First, the EU will need more talks, and then reach an agreement on a resolution, under Chapter VII, from the United Nations Security Council. So far, it is yet unclear if the UNSC will be granting a resolution to the EU for such type of operation off the coast of Libya as it could establish a precedent for other maritime migration routes throughout the world. Additionally, Russia has already expressed its opposition to the use of jets and helicopters for the mission. Second, the EU Member States will have to agree on whom will be providing the required military capabilities and forces. It was already a problem with the Frontex’s operation Triton, so it may be another difficult negotiations for this one.

Last but not least, some wonders about the usefulness of such military operation. For instance, “Military operations in the Mediterranean are only really likely to have any impact” said Elizabeth Collett, the director of the Migration Policy Institute Europe, to the New York Times, “as one very small piece in a far more comprehensive strategy to address smuggling.”

Another Lost Opportunity?

The migration crisis illustrates once again a central problem for the EU and its Member States, the Member States.  How to solve a global crisis requiring greater cooperation and integration without deepening the EU? In other words, more Europe is necessary in order to address a crisis as a bloc, but some Member States are either calling for less Europe or are cheery-picking. The challenge of the Juncker Commission and other EU institutions is how to advance the interests of the Union when most Member States are not willing to deepen and increase cooperation at the EU level.

Picking the Juncker’s proposal would allow the EU and its Member States to harmonize their immigration policies at the EU level. Choosing the Member States’ route of military action will only be a quick and temporary fix. In any case, both proposals do not address the root causes of the problems of mass migrations from MENA and Central Africa. If the EU and its Member States want to be a ‘security provider,’ they will have to do more than a naval mission in the middle of the Mediterranean sea.

(Copyright 2015 by Politipond. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed without permission).

Politico Lands in Brussels

PHOTO: JIM WATSON/AFP
PHOTO: JIM WATSON/AFP

Politico, the giant of American/D.C. politics, is now observing, dissecting, and commenting on Brussels’ political life. In less than a decade Politico, founded in 2007, has become a powerhouse in American media, covering political life in D.C. and in the US. April 20th was the grand opening of Politico Europe online and its first printed version will be sold on Thursday, April 23rd in several European capitals.

The European adventure started in September 2014 with German publisher Axel Springer creating a European edition of Politico based in Brussels. In December 2014, Politico bought the European political newspaper, European Voice, and rebranded it Politico Europe Edition. The executive body of Politico Europe is composed of Shéhérazade Semsar-de Boisséson, the owner and publisher of European Voice, as managing director, Matthew Kaminski of the Wall Street Journal, as executive editor, and John F. Harris the Editor-in-Chief. John Harris made Politico what it is thanks to his coverage of the US Presidential campaign of 2008. Many thought that Politico would die after the presidential campaign, but it continued and today accounts for over 7 million readers per month. Politico was even compared as a ‘scoop factory‘ by The New Republic in a lengthy 2009 piece.

In the case of Europe, Politico already includes 40 journalists (with some serious names previously working for Reuters, Wall Street Journal, USA Today such as Kalina Oroschakoff, Craig Winneker, Nicholas Vinocur and Pierre Briançon in Paris), and bureaus in Berlin, London and Paris. Other bureaus in Moscow and Frankfurt (to cover the ECB) are scheduled to open later on this year.

Photo: Larry Fink for The New York Times
Photo: Larry Fink for The New York Times

One of the landmarks of Politico US is the Politico Playbook by Mike Allen. In a 2010 article, the New York Times ran a story titled, The Man the White House Wakes Up To. In this piece, Mark Leibovich argued that Mike Allen’s Playbook sent by email between 5:30 and 8:30am 7 days a week is the must read in D.C. in order to start the day. Five years later it is still the case. Particularly for Europe, Ryan Heath is now running The Brussels Playbook. Mr. Heath joined the European Commission spokespersons service in 2011 under José Manuel Barroso, former President of the Commission, and has since worked for prestigious media outlets.

In one of the first article published on Politico.eu, Harris and Kaminski, in a dialogue format, discuss the place and role for Politico in Europe. “Too much of the traditional reporting on the EU ” claims Kaminski “looks and tastes like oatmeal.” However, Politico, argues Harris, “has an institutional identity of self-confidence bordering on obnoxious” driven by the “fear of failure.” 

For having studied and monitored European politics for almost a decade, it surely seems that Politico has found a clear niche. Aside from the strong, but too specialized platforms available, like Bruxelles2, Politico covers everything remotely connected to politics. Despite Euractiv, the former European Voice and EuObserver, Politico is finally filling a void in monitoring Brussels’ political life. Beware Brussels, American media is now going to “put on a fun party for the people who live and breathe pan-European politics.” Toast with jam will work perfectly with the oatmeal.

(Copyright 2015 by Politipond. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed without permission).

Syriza – The Greek Silver Bullet?

Photographer: Yorgos Karahalis /Bloomberg
Photographer: Yorgos Karahalis /Bloomberg

Syriza won the 2015 Greek elections with over 12.5 percentage points on New Democracy. Syriza elections at the head of the Greek government should not be seen as a surprise. It was in fact a continuity of its rise. For instance, in May 2014, the party had already won the majority in Greece, with 26.6%, for the European elections. Ensuing the results, Syriza did not have enough votes in order to fully control the new Greek government. The question was answered when Panos Kammenos, the leader of the coalition partner, Independent Greeks, a right-wing party, decided to join forces with Alexis Tsipras. The Independent Greeks, whom received 13 seats at the Parliament, formed a coalition with Syriza, holding 149 seats (two shy of the majority). Independent Greeks and Syriza share one element in common: desire to renegotiate the terms of the bailouts and ending the austerity measures (See below the distribution of power inside the new Greek Parliament).

Source: BBC News
Source: BBC News

In any case, Alexis Tsipras, will become the next greek prime minister. His mandate is based on ending the austerity measures, while maintaining the flow of European assistance to Greece. M. Tsipras, as Chancellor Merkel, President Hollande, know very well that a Grexit – exit of the Greece from the Eurozone – would be a terrible moment for the Euro and the EU. But one of the core questions is: how much are European partners – Germany, France and the European and international institutions – prepared to compromise with him?

Seeking for Dignity and Political Sovereignty

The current legislative elections in Greece have become more than just an election. By bringing Syriza to power Greek citizens want to change the political direction of their country. For now six years, the greek economy is in recession and the succeeding governments – socialists and conservatives – have all continued the same policy based on austerity measures in order to clean-up Greek finances. However, these measures, attached to the succeeding bailouts, have had terrible consequences on the quality of life in Greece.

For the first time in recent years in Europe, it is not a extreme-right wing party threatening to overtake power, but an extreme-left. These elections raise important question: the future of Greece in the Eurozone; the future of austerity measures implemented by the Troika (Commission, European Central Bank, and International Monetary Fund); and the return of democracy in Greece. After voting, Alexis Tsipras made two pledges: first, “Democracy will return to Greece.” Second, “the choice is clearer than ever. Either the troika comes back and continues its work and its catastrophic politic of austerity, or we are moving towards a difficult and tense renegotiations with our partners in order to re-conquer our dignity.” Tsipras was able to base its campaign on the themes of dignity and national sovereignty. In a report on France Inter, a French journalist was describing the emotions of Greek citizens as they feel proud of having reconquered their political sovereignty, which is not anymore under the helm of the Troika -at least for now-.

However, Wolfango Piccoli, managing director at Teneo Intelligence in London, told Bloomberg Businessweek that “Tsipras will be the celebrated winner, but delivering on voters’ larger-than-life expectations has not become easier after the landslide victory.” The next day will be tough for Greeks and Tsipras. Many questions are now being asked in Greece: who will compose the new government? how will Tsipras be able to renegotiate the terms of the bailout? how will Syriza be able to govern?

The Real Impacts of the Austerity Measures

The case of Greece within the Eurozone diverge from other Eurozone members like Italy, Spain, Portugal or even Ireland. When Greece was on the verge of defaulting in 2008, the main reason was that the political class had cooked the numbers for quite some time. Greece had been for decades under a corrupted political class. Syriza rise to power put an end to the perpetual control of Greek politics by either the Papandreou or the Karamanlis family and their connection to powerful oligarchs. If one recall, it took a long time for the other Eurozone members to decide on saving Greece and then how to implement a plan in order to save Greece and keep it inside the Eurozone. In some way, the members wanted to give a lesson to Greece. It has been now more than five years since the first bailout package was delivered to Greece. The first package included “€110 billion ($150 billion) and was first agreed upon by the euro-zone member states and the IMF in 2010.”

In counterpart to receiving bailout money from the Troika, Greece has had to implement serious structural reform in order to reform the labor market and in liberalizing areas of the product markets. Aside from the reforms, the Greek government had to cut pensions, lay out large amount of public servants, and so forth. Certainly Greece lied and did not follow the guidelines established in the Eurozone once it adopted the Euro in 2001. But the costs of the austerity measures on Greece and the greek society have been terrible. How do the austerity measures translate into daily life? For most of Western citizens, these are two words reflecting government spending cuts in most social policies. Well, for Greece and Greek citizens, austerity measures look like this:

  • on public health
    • left over a million without healthcare (for a country counting 11 million citizens, so 1/10);
    • country’s health budget was slashed by almost 40%;
    • rising infant mortality rates by 43% from 2008 to 2010;
    • soaring levels of HIV infection among drug users;
    • the return of malaria;
    • and a spike in the suicide count;
    • decline of birth rate by 15% (a drop from 118,302 in 2008 to 100,980 in 2012);
  • on the economic life
    • decline of GDP per capita from roughly $30,000 in 2008 to $21,000 in 2014;
    • 1/5 of the country lives under poverty lines;
    • rising unemployment levels at 25.8% in Greece compared to 23.7% in Spain, 13.4% in Italy, 13.1% in Portugal and 10.4% in France;
    • highest youth unemployment rate in Europe with 61.5% in 2013 (see chart below);

chartoftheday_1524_Youth_Unemployment_Still_Unrelenting_in_Europe_b

  • on social life
    • cuts on public education and especially higher education;
    • over 200,000 Greek citizens have left the country since 2009, and a majority of them are going to either Germany or the United Kingdom;
    • a ‘brain drain’ is occurring, which will affect the transition of the country in the decades to come.

In some part of the country, Médecins du monde, an international non-governmental organization, is now providing healthcare. On its website Médecins du monde writes that “the measures destined to save the financial system do not take into consideration the human consequences.” In some ways, considering the numbers above, it is not difficult to understand why Greek citizens picked the Syriza route over the traditional center right/left.

Syriza: A European Experiment?

Will the elections of a radical left party save Greece? Not really. Syriza is far from being a silver bullet. However, it could offer some serious leverage in order to loosen the weight of the austerity measures, re-negotiate the terms of the bailout, and find a long-term plan for Greece. Additionally, Syriza has become for many a political experiment in a Europe in search of a new political and economic life. Syriza does not appear to be a red revolution, but rather a road for more human transition.

Dying in Greece because of poverty is a reality, and is unacceptable on one of the richest continents. Greece is a core EU Member State, it is a Member of the Eurozone. The European Union is a political and social endeavor between a group of states committed to such goal. The force of the austerity measures and the requirements on Greece in order to save the Union back in 2008 may have been a necessity at first considering the degree of interconnection between all world banks. However, the continuity of their effects on Greece should have long been renegotiated. The EU has become a multi-speed Union, composed of a Northern Group and Southern Group (rich and poor) on many important issues: in defense with the CSDP; in democratic and judiciary terms – see at Romania, Bulgaria and Czech Republic -; in economic policies – look at Greece, Portugal, Spain and Italy -.

The ECB announced last week the beginning of a massive Quantitative Easing (QE), a program open-ended by nature – at least until the inflation rate of 2% is attained – of a value of €60 billion a month. However, the European QE won’t be enough until the European economic engines are not reformed and become more competitive. In parallel, the European Commission has announced the launch in 2015 of its Juncker Plan, a €315bn investment fund program intended to kick-start the European economy/ies. Both plans, QE and the Juncker Plan, will be necessary, but Member States ought to address their economic, industrial and financial models at home and harmonize them with European regulations and commitments that they agreed to.

Syriza won’t solve Greece’s problems, but it will once and for all bring important issues on the European table. The 2008 financial crisis has had devastating effects on most European citizens. The European welfare states are under-attack; unemployment levels among European youth is too high for any viable future of the EU-28 and the Union; and the rise of political extremes – right and left – endangered democratic foundations. Syriza’s message embodies all these elements. Money won’t solve it all, but politics will. As underscored by Christian Odendahl and Simon Tilford of the Center for European Reform, the three areas of negotiations will be required in Greece: debt relief, austerity, and structural reform. Both side, Greece, and the international institutions and EU Member States, will be bargaining for their side during tense period of negotiations. Both have some nuclear options, as highlighted by Odendahl and Tilford, “the withdrawal of liquidity for Greek banks, which the ECB has said it is considering; and the unilateral default on official loans by Greece.” The bottom is line is keeping Greece in, while loosening government maneuvers.

These elections are for the first time since the 2008 financial crisis illustrating a real popular call for ending austerity measures through neo-keynesian policies (read here a good analysis on the issue), and not anti-globalization and mercantilist policies advocated by extreme-right parties. As Tsipras told Greek citizens a week ago, “Our victory is also a victory of all the people of Europe struggling against austerity, which is destroying our common European future.” Europe will be watching carefully the way Tsipras implements its reforms, while keeping Greece in the Eurozone, keeping the flow of foreign aids, getting private investments, and rebuilding the public sectors to acceptable standards. “Populist parties across Europe” writes Judy Dempsey “are cock-a-hoop over Tsipras’s victory, seeing it as an inspiration for their own political ambitions.” But a failure by Tsipras will be the nail in the coffin for radical lefts and socialist parties around Europe; while a mild- or full- success could change the economic, social, fiscal and monetary debates in the decades to come. Greece is hoping; Europe is monitoring; the World is watching.

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