Europe retaliates and the transatlantic split widens

US President Donald J. Trump meeting EU leaders
Source image via EPA

The European Union (EU) retaliatory tariffs on a series of American goods, including peanut butter, motorcycles, bourbon, orange juice, sweetcorn and others, kicked in on June 22. The imposed duties on American products are worth $3.3bn in a tit-for-tat response by Brussels to the Trump administration’s unilateral imposition of tariffs on aluminum (10%) and steel (25%) back on March 23.

The EU Trade Commissioner, Cecilia Malmstrom, said that “the rules of international trade, which we have developed over the years hand in hand with our American partners, cannot be violated without a reaction from our side.” She argued that the EU was “left with no other choice” to impose tariffs on US products. Jean-Claude Juncker, president of the European Commission, said that the decision by the US to impose tariffs “goes against all logic and history.” In addition to the immediate tariffs, the EU seized the World Trade Organization (WTO) to challenge the US measures.

The US under President Trump is not at its first spike of tariffs on targeted foreign goods based on national security ground. Aside from the steel and aluminum tariffs, the US imposed a 20-30% tariff on washing machines and solar panels last year. It is as well discussed to impose a 25% tariff on over 800 Chinese goods. Trump seems to believe that the world is taking advantage of the US and that free trade is not being fair to the US. His sole argument is based on the reading of the US trade balance. If there is a trade deficit, the US is losing; if there is a surplus, the US is winning. Trade policies are more complex than what it is being portrayed in a tweet. The world, in particular US allies, has already responded to US ensuing the tariffs on steel and aluminum as listed in the table below.

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Source: Amy Cheng, Humza Jilani, Keith Johnson, Amy Mackinnon. 2018. “State of the Trade Wars Tracking U.S. President Donald Trump’s tariffs — and the retaliatory measures other countries are taking.” Foreign Policy. June 21. (here)

Tariffs on auto imports?

In a very trumpian fashion, the American president went on on Friday by threatening to impose a 20% tariff on all U.S. imports of European Union-assembled cars. His message, via twitter, read “If these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20% Tariff on all of their cars coming into the U.S. Build them here!” The threat of imposing tariffs on cars is not new as a month ago he instructed the Department of Commerce, led by Wilbur Ross, to launch a probe into whether auto imports pose a national security threat.

Trump and his associates have used overtime the Section 232 of the Trade Expansion Act of 1962 in order to increase tariffs on ground of national security. The same rationale will potentially be used for tariffs on auto imports. The justification and connection between national security and tariffs was made by Wilbur Ross during a recent interview, wherein he said “National security is broadly defined to include the economy, to include the impact on employment, to include a very big variety of things.” He continued claiming that “Economic security is military security. And without economic security, you can’t have military security.” However, most of the tariffs are affecting traditional US allies, which happen to be NATO members and closely working on defense and security cooperation. Mr. Ross’s justification does hold any serious ground and is simply trying to hide basic protectionist policies being national security.

Congress could regain the control of decision-making on tariffs if the Republican establishment, holding the majority in the House and Senate, were committed to free trade and sound economic and trade policies. Earlier in June, republican and democrat lawmakers mentioned a plan to introduce a legislation that would force President Donald Trump to obtain Congress’ approval before imposing tariffs on national security grounds. Until the midterm elections, it is difficult to imagine the approval of such legislation by the Congress.

The current rates of tariffs for imports between the US and the EU are divided into two categories: for cars, 2.5% US import tax compared to 10% EU import tax; and for light trucks and SUVs: 25% US import tax compared to 10% EU import tax. The American president always focuses on the tariffs for cars and never on light trucks. He has been picking on Germany and its successful automobile industry. But he has failed to recognize the investments made by the three leading german companies in building assembly plants in South Carolina (BMW and Daimler), Alabama (Daimler), and Tennessee (Volkswagen). In 2017, 38% of 854,000 cars build in the US were sold in the US and over 500,000 were exported. With regards to employment, 116,500 jobs in US were connected to german auto-makers: 36,500 working at auto-maker plants and 80,000 as suppliers.

What would the impacts be for the US if the US president were to impose such tariffs? The Peterson Institute recently released a report on the potential impacts of a 25% proposed tariffs in auto imports. The report argues that the production in the industry could drop by 1.5% and that it could cause 195,000 US workers to lose their jobs over a 1-to-3 year period. In case of retaliation in-kind with tariffs by foreign countries on the same products, production would fall 4%, 624,000 US jobs would be lost, and 5% of the workforce in the auto and parts industries would be displaced. The ripple effects of such tariffs could have disastrous consequences for states hosting assembly plants in the long-term. The latest risk assessment by Airbus addressed to the UK government regarding the uncertain future around Brexit should be carefully read by US lawmakers and Trump associates when deciding on imposing tariffs or not. Multinational corporations hold quite a strong leverage in the decision-making process of trade policies.

Rocky transatlantic relations

Again, as argued in previous analyses, the future of transatlantic relations appears unstable and rocky. Several points shall be addressed reflecting on US treatment of historical allies and the future of the liberal order. First, The Trump administration has demonstrated over and over its decision to split with and humiliate America’s traditional allies. The message addressed by the American president and members of his cabinet, in particular Peter Navarro, towards the Canadian prime minister post-G7 meeting as well as the continuous undermining of the German chancellor illustrate Trump’s modus operandi. Per Wess Mitchell, US Assistant Secretary of State for European and Eurasian affairs, the Trump administration is implementing a “strategic renovation” with traditional allies. President Trump has made a point to undermine his German counterpart, Angela Merkel. She was one of the closest partners of President Obama, is leading the most stable and largest European economy, and has not shied away to defend the liberal order. The appointment of Mr. Grenell as US Ambassador to Germany, who has broken protocol on two occasions, confirms it. Mr. Grenell in an interview with Breitbart said “I absolutely want to empower other conservatives throughout Europe, other leaders. I think there is a groundswell of conservative policies that are taking hold because of the failed policies of the left.” The Trump administration is seeking to undermine and destabilize the German chancellor.

http_com.ft.imagepublish.upp-prod-us.s3.amazonawsBy looking at the trends and rhetorics (which can shift very quickly as demonstrated by the change of position by Trump towards the North Korean dictator), a trade war is quite an eventuality. For the EU, trade has been the core dimension of its external policy and international presence. The EU sees multilateralism and free trade as one of its most successful policies. Furthermore, the EU is at a crossroad with the continuous rise of populist forces gaining traction in core EU countries, such as recently Italy. The EU ought to defend its interests and cannot cave in to foreign pressures, otherwise it would play in the hands of the Orban, Salvini and Le Pen of Europe. And last, the European market is one of the richest, largest, developed and influential in the world. By the weight of its market, the EU shall not shy away from direct confrontation with the US. As per Charlemagne of The Economist, the EU has three strategies in hand to chose from: capitulation, resilience, and containment. Resilience is the most likely strategy at this period of time.

Lastly, the main issue with regards to trade is China, and it has remains unaddressed. Both the US and the EU agree with the fact that China, since joining the WTO in 2002, has not played by the rules. The US could have worked with the EU and utilized the common procedures and processes, the international trading system. However, Trump said it on the campaign trail, and is now doing it while in office, the rules-based global trading system is being portrayed as the cause of American demise. Trump wants a trade approach based on bilateral deal-making, transactional relations and only fair for the US. Donald Tusk, the president of the European Council said in Canada, “the rules-based international order is being challenged, quite surprisingly… by its main architect and guarantor, the US.” For instance, Trump refused to sign the G-7 communiqué. For the EU, the liberal order and rules-based trading system are critical for its functioning. Cecilia Malmstrom said this clearly, “The E.U. has a responsibility to stand up for open global trade.”

The American president seems more at ease surrounded by dictators and authoritarian leaders than with traditional American allies. The affronts to the liberal order and America’s allies are beginning to add up considering his policy choice to leave the TPP, Paris deal, the Iran deal, relocate the US embassy in Jerusalem, and unilateral imposition of tariffs. Europe knows that Trump is temporary, but his continuous attacks on the liberal order will not only undermine the US position in the world but lead to a highly unstable multipolar order. “Trump’s preference for a divide-and-rule strategy produces a game” writes Javier Solana “that will create only losers.” Europe knows it, the US may have a serious headache post-Trump.

(COPYRIGHT 2018 BY POLITIPOND. ALL RIGHTS RESERVED. THIS MATERIAL MAY NOT BE PUBLISHED, BROADCAST, REWRITTEN OR REDISTRIBUTED WITHOUT PERMISSION).

 

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Catalonia: A Disaster Waiting to Happen?

Citizens protest against the independence movement in a march in Barcelona at the weekend.
Photograph: Brais G. Rouco / Barcroft Images

Guest Contributor: Diana Soller

Let’s get straight to the point: self-determination of peoples. It is a very laudable theoretical concept. All peoples should have the right to choose the nation they wish to belong to, especially when they have a distinctive culture and a different language, as well as political and economic viability to build an independent state. And we, Europeans, ex-colonialists, field with guilt for our ancestors’ acts, tend to favor the rebels, independently of the justice and the consequences of their cause.

Historical Rationales for Independence

But there is also the other side of the story: in his most recent book, Michael Walzer uses three case studies of the past, India, Algeria and Israel, whose legitimate claims of independence where much more consubstantiated, to prove that “liberation movements” do not represent the expression of the majority will (people are much more concerned in surviving and moving ahead with their lives in troubled times), but the position of a separatist elite who builds a narrative and does everything they can to convince the population that their intentions are fairer and their view of history is much more accurate than the one the status quo power has been trying to impose.

In practice the paths towards independence are sinuous and trapped. They are played in a dangerous arena where almost everything is admissible for the cause of independence. It is an opportunistic and dirty game where the two sides are waiting for a weakness of the rival. It generates violence. In more extreme cases, it generates civil war. In the most extreme cases, it generated ethnic cleansing. At the regional level it generates instability. Very often it is contagious to sleeping separatisms that start to reevaluate their possibilities. Of course, we think, nothing of this kind is going to happen in Catalonia. After all, it is the 21st century, and this is Europe. But let me remind you of two things: on the one hand, the two sides of the conflict, Barcelona, and Madrid, have already reached extremes that we never thought possible in a democratic context. On the other hand, the last few years have demonstrated that nationalisms, of the emotional, ideological, centrist, and extremist kinds are not a relic of the 19th century. They are alive and kicking. Remember that history does not repeat itself but it rimes. Nationalisms are back, now in a context, different from the past. And we, in Europe, are ill prepared to deal with them.

The Catalan Case

How did we get here? The Catalonian separatism has a long lineage. The national day of the region, September 11, is related to the events of 1714, when Barcelona lost its autonomy to Spain in that War of Succession. In the 20th century, the mores and the language were trampled violently by the bloody Civil War and then by Franco’s regime, trying with particular roughness, to dissolve the Catalonian culture. The collective memory of these events has been passed along generations, as the testimonies from Barcelona, since the mock referendum of October 1, published in the international press, have been claiming. The nationalist feeling was partially placated (ironically) by the 1978

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Cartoon: Kap

Constitution, that inscribed the right to regional autonomies in the context of the “indissociable unity of the Spanish nation”. But, albeit Catalonia’s acceptance of the founding text of Spanish democracy, the relationship between Madrid and Barcelona was always ambiguous. The Generalitat has always tried to find ways to further autonomy, while the central government has always been keen on protecting its powers. But for considerable period, the regional government was in the hands of moderates. First, a right-wing coalition, the CiU was ahead of it (1978-2003) and then it was replaced by its left-wing equivalent, a coalition led by the PSC, the Catalonian branch of the PSOE (2002-2010). The radical separatists were relayed to the margins, namely ERC, a leftist republican party that tried an independence coup a couple of years before the civil war and the several anarcho-unionist groups, also very active before the war.

However, minority ideas tend to fall asleep but never die. And the Catalonian separatism woke up due to three main factors: first, the economic crisis of 2008, that generated a feeling of injustice as Barcelona profits (around 20 percent of the Spanish GDP) were redistributed to the poorer provinces; second, the judicial process moved by Mariano Rajoy’s Popular Party, between 2006 and 2010, that resulted in the removal by the Supreme Court of the status of “nation” (ambiguous) that had been approved in a legal local referendum. The SC alleged reasons of unconstitutionality and the PP claimed reasons of balance between unitarists and regionalists; and third, the political change in the composition of the regional government, that started to be ruled by the coalition “Together for Yes” (to the independence) that mixes, since 2015, the CDC of Carles Puigdemont, a right liberal party that became separatist as a result of the policies of the central government; the ERC, the republican independentist party of the 1930’s; and the CUP a left wing separatist movement composed by several small radical groups. Together they have qualified majority at the Generalitat, even though their only commonality is the independence of the autonomous region.

The Volatility of Nationalist Separatism

This change went relatively unnoticed, but aligns with the similar rise/growth of diverse populist movements across Europe (old nationalisms, new times). But this particular one has a different element: the nationalist separatism is a much more sensitive issue, more emotional, and capable of mobilizing passions. Which usually is a Molotov cocktail in politics.

The events that have been succeeding since October 1st are the culmination of all these BN-VL292_3fiFq_M_20171005132131tendencies: painful collective memories politicized by a coalition reaching the regional parliament thanks to protest votes against Madrid’s policies; all this in combination with a disastrous management of the Catalonian issue by the central government (including the King Felipe VI). Plus, Barcelona took advantage of the weakness of the chief of central government, Mariano Rajoy, who needed two general elections and almost a year to form a minority government.

This was the context of last Sunday’s referendum in Catalonia. Madrid had the law on its side. It forbidden the public consultation for reasons of unconstitutionality, but the Generalitat was more astute: it disobeyed, and dragged to disobedience more than two million citizens. Nothing was legal in the referendum: plastic ballot boxes, aleatory vote sites, on-line electoral lists of doubtful accurateness, and a very low affluence (around 42 percent) that indicates, according to specialists, that the unitarians simply did not bother to vote, considering the consultation bogus. These arguments would have been more than enough for Rajoy, with the support of Felipe VI, to declare the nullity of the act and move on. As it already happened in the past.

But Madrid lost its mind. So, it sent 12,000 civilian guards to preclude the voting. In this counter-information war, we know that the national police used force against the population (although we do not know how often), we saw mossos d’esquadra (the Catalonian regional police) crying and, according to hospital records, there were almost 900 injured (even though we ignore the extensiveness of the wounds). What remains from October 1st is the image of the Catalonian people enduring the police intervention against them in the name of independence. TV cameras from around the world captured enough images of disproportional violence to leave Madrid’s international image in the mud and to revolt thousands of Catalans that so far had been happy with the status quo. Rajoy, they say, is an “independentists’ maker”. And in fact, he is. In 24 hours he did more for the independence cause than all separatists together. In democracy, when one has the law and at least part of the legitimacy on their side the use of force against the population (who possibly believed in the goodness of the idea of independence) has two consequences: one loses the morality battle and the support of the population. The independentists won a double victory: they opened a larger gap between then and Spain (and Europe), very difficult to get over and they won the sympathy of the “international public opinion”. If this concept, popularized by Jürgen Habermas during the demonstrations against the Iraq war, is vague and imprecise, its practical effect is well known.

What next?

And now what? There are three possible scenarios. For now, the most likely is a growing tension between the parts, as Carles Puigdemont is likely to declare independence unilaterally this week and Mariano Rajoy has threatened to use all means at his disposal to stop him. It is difficult to predict the endgame of escalation. In politics there are few things as dangerous as separatist nationalism for reasons described above but too important to forget: internal violence, regional instability, and domino effect. Europe is full of separatist movements that might see the Catalan moment as an opportunity put forward their claims for self-determination and autonomy.

The second scenario is that Madrid and Barcelona overcome their differences and start to negotiate (as the population ask them to do this weekend in very large demonstrations). However, the possibilities are scarce and the conflict already reached a high point and depending on Puigdemont’s call a potential point of no-return.

Which take us to the third scenario: bringing in an external referee, a mediator. The successive crisis of the European Union almost made us forget that the main goal of its creation was to avoid that war would return to the continent. And it does not matter how critical each of us might be, the truth is this goal has been fulfilled (except for the Balkans that were Europe but not EU). We reached a critical point where Brussels should refashion its peace-making credentials. Pretending Catalonia is none of the EU competency is the sort of decision that did not pay off in several situations in the past. Let’s hope that Europe is willing to mediate, if called upon, this internal crisis, because peace in the continent must be one of the main values that unites member-states. And lastly, if something goes really wrong in Catalonia, a Pandora Box will be opened challenging the integrity of member states. The Catalan crisis could have greater unforeseen and unwanted consequences on the integrity of the EU than a bad Brexit.

Diana Soller is a research follow at the Portuguese Institute of International Relations (Lisbon) and a weekly columnist at the daily Portuguese newspaper Observador.

The original version of this article was published in the Portuguese newspaper Observador, on October 6, 2017 and can be read here: http://observador.pt/opiniao/uma-batata-muito-quente/ . 

(COPYRIGHT 2017 BY POLITIPOND. ALL RIGHTS RESERVED. THIS MATERIAL MAY NOT BE PUBLISHED, BROADCAST, REWRITTEN OR REDISTRIBUTED WITHOUT PERMISSION).

Rediscovering a Forgotten Past – State, Identities and Cohesion

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Credit Emilio Naranjo/European Pressphoto Agency

Politics in Europe are alive; Catalonia is the latest example. The financial crisis was the axiomatic moment in contemporary European politics fermenting domestic crises throughout and within the Union, occassionally bursting ever since. These crises have equally affected all EU Member States leading to the rise of nationalist forces (notably in France, the Netherlands, Austria, Germany, the UK, Poland, Czech Republic and so forth) shaping the national political rhetorics and policy-agenda.

The latest crisis is undeniably Sunday’s referendum in Catalonia, which exposes an absolute dilemma and threatens the integrity of Spain, one of the largest EU Member States and Eurozone members. In a European Union composed of 28 sovereign states wherein domestic politics remain in the realm of the sovereign states (unless under a policy-area of a European competence), one core commonality remains binding democratic values and principles. Catalonia is one of these cases wherein state sovereignty and regional call for self-dertmination meet and clash.

The Catalan Nightmare

The crisis in Catalonia has changed gear, and potentially seen a shift in legitimacy from Madrid to Barcelona, with the reprehensible response by the Mariano Rajoy’s government on October 1 ensuing the unilateral Catalan referendum. Prime Minister Rajoy had the law on his side as the Spanish constitutional courts have ruled on several occasions on the illegality of a referendum on the independence of Catalonia. But “Spanish Prime Minister Mariano Rajoy has transformed” argued Frederiga Bindi “what would have otherwise been a unilateral, unconstitutional, and useless referendum into a major victory for the separatists.”

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Cartoon: Chappatte

The legal baseline is Spain 1978’s constitution, which stipulates that Spain cannot be broken up as “the indissoluble unity of the Spanish nation” and “the common and indivisible homeland of all Spaniards.” Only the Spanish Parliament can changed the constitution.

Catalonia is a critical piece of Spain, which is the 14th largest world economy and the 4th largest in the EU (post-Brexit). Catalonia counts about 16 percent of Spain overall population Catalonia is one of the richest regions of Spain contributing almost 20 percent of the Spanish economy. One of the arguments in favor of the independence is the lack of proportionality between Catalan contributions to the overall budget and the return. From the 20 percent of contribution, Catalan residents receive 14 percent back for public expenses. Economically, Spain may certainly face serious internal trouble if Catalonia were to secede.

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Emilio Morenatti/Associated Press

Without going back to 16th century Spanish history, Catalonia has always considered itself unique and separate from Spain with its own history, language, culture and therefore nation. In contemporary Spanish history, 90 percent of Catalonia supported the 1978 constitution. But the separatist movement and feeling have always remained underneath. The recent financial crisis, shifting into the Eurozone crisis, leading to the near collapse of the PIIGS country counted Spain in the mix contributed to exacerbate the tensions between Madrid and Catalonia. Adding to the financial crisis, Spain’s constitutional court struck down parts of the new statue of autonomy for Catalonia in 2010. Since then, Madrid did not reach several opportunities in order to continue talks with the region.

Prior Sunday’s violence, polls were always consistent in proving that only 40-45 percent of Catalans have been in favour of independence. 2013 was the year with a peak in the support level at 49 percent. Prior the announced referendum on October 1, a majority of Catalans were in a difficult position between Catalan authorities to hold the referendum on independence and the strong-hold position by Madrid.

Mariano Rajoy of Spain called on the separatist leaders, behind Carles Puigdemont, President of the Generalitat of Catalonia, to stop the “disobedience” and the “escalation of radicalism.” In a rare televised speech on the evening of October 3, the King Felipe VI of Spain condemned the actions by the separatists framing them as illegal and infringing the legal structure of Spain. “They have tried to break the unity of Spain and national sovereignty” he went on to claim. Ensuing the banned referendum, Catalonia has announced that it will move forward and declare independence from Spain in the near future (after a parliamentary session on Monday). Legally, if a declaration of independence were to be made, the central government of Spain could suspend Catalan autonomy under Article 155 of the 1978 Constitution. Such option would bring the country in a major constitutional and political crisis.

And, the European project?

Where does the European Union fit in this complex political puzzle? The EU is indirectly the cause and the remedy. But it is as well, rightfully so, a reluctant actor. In the case of the Catalan crisis, the EU and its set of institutions have remained as distant as possible from this domestic crisis. For the EU, this is not only bad news, but a sign of major internal forces at play within Member States. “Separation and secession within a member state is very bad news for a block” argued Stephen Beard of Marketplace “that is striving to hold itself together and is currently doing its utmost to punish Britain for daring to break away from the EU.”

The Treaties of the EU are clear regarding the competencies of States and the EU. For instance, Article 4.2 of the TEU stipulates that, It [the Union] shall respect their essential State functions, including ensuring the territorial integrity of the State, maintaining law and order and safeguarding national security. In particular, national security remains the sole responsibility of each Member State.

Ensuing the use of force by Madrid on Sunday in Catalonia, the EU called out and condemned government violence against citizens. On October 2, the Commission released an official statement underlining the illegality of the referendum under Spanish law. Without directly targeting PM Rajoy, the Commission ended the statement by claiming that “Violence can never be an instrument in politics.” However, Spain may be one of the largest and Western EU Member State, the Commission must be as critical as it has been in Poland and Czech Republic. “It is the kind of violence the European Union” writes Steven Erlanger of the New York Times, “would ordinarily condemn in high moral terms and even consider punishing.”

On Wednesday, the Commission called for an open dialogue between the Catalan authorities and the Spanish government. Frans Timmermans, the Commission’s deputy head told before the European Parliament that “it’s time to talk.” Timmermans still maintained the official position of the Commission endorsing the legal position of Spanish Prime Minister Rajoy. During the European Parliament’s session, two leading MEPs, Bavarian Manfred Weber and Flemish Guy Verhofstadt emphasized on the fact “strong regional identity and autonomy did not mean breaking up existing nation states.” What is certain is that “if Catalonia were to leave Spain,” underlined Jonas Parello-Plesner of the Hudson Institute, “it would also leave the EU, only to start a cumbersome reentry process.”

EU Member States, all sovereign states, are not usually in favor of secessionist movements, especially within the Union. In the current context of the Brexit negotiation, the EU and the 27 Member States are quite reticent to see a region of a Member State calling for self-determination and seeking independence. “Throughout my life,” wrote Javier Solana, a former Spanish minister, former NATO Secretary General, and the first EU High Representative, prior the Sunday violence, “I have witnessed the fragmentation of many countries, and I cannot conceive of that happening in the European Union of today.” Despite the reprehensible past action and poor tactic by PM Rajoy, it is difficult at this time to foresee any support from the 27 European capitals for Catalonia’s independence.

Lastly, the Catalonia case brings home a reality, which seems to have been forgotten in 220px-2012_Catalan_independence_protest_1021.jpgone of the richest regions of the world: history tells us that states will use force to maintain their integrity and unity. In his address to the nation, King Felipe VI, “Today Catalan society is fractured and in conflict,” he said. “They (the Catalan leaders) have infringed the system of legally approved rules with their decisions, showing an unacceptable disloyalty towards the powers of the state.” The message is direct, the state shall remain and fight any types of fragmentation.

For decades, Europeans have watched separatist efforts in Iraq-Turkey (Kurdistan), Sudan (South and North), Serbia (Kosovo), Chechnya (Russia), Nepal (China) with a certain distance condemning state violence and believing in some sort of European exceptionalism, that it would not happen here inside the Union. Well Spain demonstrated a forgotten reality.

“As it forms the basis for an experience of freedom, the history of democracy,” Pierre Rosanvallon, Professor at the Collège de France noted, “is therefore not simply a history of frustrations or betrayed utopias: it has become a deeply intertwined history of disenchantment and indeterminacy.” The Catalan case opens the European Pandora box of a forgotten past forcing European citizens and leaders to reflect on the questions thought buried under the rumbles of World War two, but briefly emerging since with the reunification of Germany and the wars in the Balkans, of identity, democracy, power, oppression, nation-state, region-state and cohesion. The fraught between Madrid and Catalonia is serious and could have considerable ripple effects if a thoughtful and open dialogue is soon implemented.

(COPYRIGHT 2017 BY POLITIPOND. ALL RIGHTS RESERVED. THIS MATERIAL MAY NOT BE PUBLISHED, BROADCAST, REWRITTEN OR REDISTRIBUTED WITHOUT PERMISSION).

 

European crises – The forgotten malaises

Daniel Stolle

Has populism disappeared from Europe? Is the European Union finally perceived as a constructive actor in Europe? Where are the reflections on regional crises affecting the unity of the EU and the security of the member states (MS)? All these questions seem to have disappeared from the national and European agendas since the election of Emmanuel Macron at the helm of France. Unfortunately, the malaise within each MS of the Union remains unchanged and ought to be analyzed.

On the question of the European Union, the debate about the role of the Commission will re-emerge with the next appointment of the President in 2019 and the next rounds of trade agreement with Japan. One core lesson that is often forgotten is the centrality of the MS in the decision-making process of the EU. The integration of the Union, either deepening or widening, cannot occur without the agreement and consent of the MS. If European technocrats and experts on the EU are aware of this fact, a wide majority of Europeans still tends to be unaware or even doubt this reality. Many cases in recent years, beginning with the Greek debt crisis leading to a referendum opposing the terms of the bailouts, which was then rejected by Prime Minister Tsipras, followed by the Austrian elections in May/November 2016, then the Brexit vote in June 2016, and the radicalization of new MS like Poland and Hungary, illustrate this popular opposition against the integration process and the EU at large.

The commonalities among all these cases are: regain of national sovereignty, protection of national identity, and quest to increase national power over European forces. The argument has usually been MS versus the EU. However, opening up the black-box of each MS, one can identify a much more nuance and complex picture. Within each MS, a division between cosmopolitanism (usually cities) versus nationalism (usually rural and post-industrial regions) is dividing countries politically and culturally speaking. The domestic split existed before 2016, but the financial crisis leading to an anemic economic growth across the Union exacerbated the split.

Pew Research Center

However, since the ‘positive’ outcomes of the Dutch and French elections, one could be fooled believing that the cultural-identity split dividing MS and the Union has disappeared. For many the election of Emmanuel Macron at the helm of French presidency stopped the populist wave. Such statement is certainly false considering the current domestic tensions in Poland with the push for constitutional reforms undermining the independence of the judiciary and in Hungary with the continuous anti-democratic efforts. The response of the Commission to potentially trigger Article 7 to sanction Poland is the proper approach enforcing the Copenhagen Criteria. However, the lack of clear support by Paris and Berlin to sanction Warsaw sends a mix message of unity and support of the rule of law in the EU.

The current Brexit negotiations are as well an important matter for the future of the EU and the relationship with the UK. Even though the departure of the UK from the Union is a disappointing event, it is an important historical lesson for Europeans. At this point, it would be a mistake for the EU to appear weak in the negotiations by not reaching a complete departure of the UK from the Union; Brexit ought to occur. In the UK, there are already surges of unhappiness towards the ruling class with the recent domestic talks of a potential remaining of the UK in the Union. It would play against the EU to keep the UK at this point of time. Despite a close majority of pro-Brexit votes winning the non-binding referendum, the EU needs to move along and finalize the exit of the UK. In addition, the EU needs to remain strong in enforcing rule of law and global norms. If the rumors of ongoing US-UK negotiations, as advanced by the American president, regarding a comprehensive trade agreement between the UK-US to kick in as soon the exit is completed, were to be true, the EU needs to escalate the matter. It is in the interest of the EU to enforce its global standing as the trade negotiator for the 28 Member States. The credibility of the EU as global actor is at play and should not be undermined by neither the UK nor the US. The 27 remaining MS need to support such action in case ongoing trade talks between London and Washington were to be accurate.

The domestic political tensions have distracted from the broader question of furthering the integration of the EU. The Eurozone crisis has highlighted the limitation of an integration à la carte and incomplete integration process in fiscal and economic matters. President Macron was in recent time the most pro-European candidate centering his agenda around the need to foster EU integration. Now in power, President Macron may back down from its EU centric agenda. But the EU needs to maintain the momentum in pushing for deepening the integration process in fiscal and economic issues as well as in defense policies.

(COPYRIGHT 2017 BY POLITIPOND. ALL RIGHTS RESERVED. THIS MATERIAL MAY NOT BE PUBLISHED, BROADCAST, REWRITTEN OR REDISTRIBUTED WITHOUT PERMISSION).

Two days in Paris between friends?

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Donald Trump, President of the US, responded positively weeks ago to the invitation of the newly elected French president, Emmanuel Macron, to assist at the military parade of the 14 of July. French public opinion, as well as experts, were certainly divided concerning such invitation and the presence of the American president at this national celebration. Politipond argues that such invitation was aligned with France-US interests and US-Europe interests regardless of the domestic turmoils of Donald Trump and his cabinet. Furthermore, this official visit highlighted a complex divide between the perceptions of the US, as an ally, and the perceptions of the US through the representation of his president. This subtlety was lost in translation.

Logics and reasons

Macron’s invitation has divided experts, public opinion and the media. Politico Europe probably published the article with the most telling title, Trump and Macron go from mano a mano to tête-à-tête  referencing the evolving tone of the relationship between the two men. If Macron demonstrated toughness during their first meetings at the NATO and G-7 summits in May, their third meeting on July 13-14 seemed much warmer. The claim is that Macron strategized his interaction with his American homologue in order to foster respect. Candidate and then President Trump have been consistent, as he has continuously demonstrated considerable respect to strongmen such as Russian president, Vladimir Putin, Philippines president Rodrigo Duterte, and apparently Emmanuel Macron.

Some have compared Macron and Trump as they share some similitudes. Both won outside the party system; Macron created a movement Onward! a year prior the election and managed to undermine the historical supremacy of the right and left by winning the presidential and legislative elections, while Trump running as a republican candidate certainly does not fit within the conventional ideological lines of the party. Both are framed as non-politicians, as having never ran for office. If it is true for Trump, it is not the fully the case for Macron having evolved in the highest political spheres during the Hollande presidency. But the comparison cannot go furthermore. Macron has a certain understanding of politics and the history of the French Fifth Republic as designed and envisioned by Charles de Gaulle in 1958. Macron is carefully crafting a presidential image, under the Jupiterian president aura, through a demonstration of strengthen as he is oftentimes represented surrounded by French military might. If President Sarkozy was seen as the hyperactive president, François Hollande, the ‘normal’ president, Macron is concerned about displaying and embodying French grandeur.

From Paris, especially the Elysée, the message behind this invitation was to commemorate the entry of the US in 1917 in World War one, which plays against the isolationist narrative emanating from the White House. 1917 symbolizes American engagement in the world, while 2017 may illustrate the beginning of a potential American isolationism. The relationship between the two countries is over 200 years old. The French monarchy played an important role in assisting the patriots against the British crown. Benjamin Franklin played a considerable role starting in 1776 in engaging with France, while serving from 1776 to 1778 in a commission in France in charge of getting French support for American independence. France not only recognized American’s independence but as well concluded an alliance with the 13 colonies in 1778. Skipping one century, in 1917 when the Americans joined the war on the European continent, Colonel C. E. Stanton, General John J. Pershing’s aide, famously declared before the tomb of the Marquis Lafayette, ‘Lafayette, we are here!’ This brief historical anecdotes illustrate the deep ties and historical connections between the two countries. The ties go beyond the leader at the time.

Points of Convergence?

The intervention of the two presidents in front of the press lists the series of issues wherein the US and France have shared interests: the Ukrainian crisis, the war in Syria, counter-terrorism, free and ‘fair’ trade, and the sanctity of national sovereignty. Two additional items were on the agenda of the French president. The first one concerned the COP-21 or Paris agreement entered into force Fall 2016 ratified by 153 nations. President Trump announced early on his presidency that the US would withdraw from the binding deal. European leaders, in particular Chancellor Merkel and President Macron, have been adamant about the necessity to meet the goals set-up in order to address the root causes of climate change.

The second item, an unconfirmed point, may be regarding  potential American support to the initiative of the G5 Sahel bloc – Mali, Mauritania, Burkina Faso, Niger and Chad -, planning on launching a new multinational military force led by African powers. France has been militarily involved in the Sahel region since 2013 in order to limit the regional influence of Islamist militant group. This new force will operate in coordination with French troops and MINUSMA, Mali’s struggling U.N. peacekeeping mission. Financially, the European Union has pledged around 50 million euros, while France would contribute around 8 million euros by the end of the year. The US have played a role in providing equipments, information and military support to the French. This military effort aligns with the transatlantic counter-terrorist strategy. However, no comments on this point emerged.

Beyond the 14 of July – Perceptions matter

The Franco-American relationship has not deteriorated, but the French positive perception of the US as embodied by President Trump have collapsed over night. The recent Pew research center’s report on global perceptions illustrates clearly the instant changes of attitudes towards the US at the critical juncture of November 2016, the election of Donald Trump.

Global perceptions-1

The graph tells a compelling story of an immediate decline in the positive views of the US in a period of four months dropping by 15 percentage points (pp). The most damaging decline illustrates the confidence in the US presidency, wherein 74% expressed no confidence in President Trump, as opposed to 23% for President Obama.

Global perceptions2

 

This graph provides a global snapshot of the shifting perceptions between Presidents Obama and Trump. The only two countries with positive perceptions are Israel (+7pp) and Russia (+42pp). The rest of the world tends to share a lack of confidence in the American presidency held by Trump. The most critical are Sweden (-83), the Netherlands (-75pp), Germany (-75pp), South Korea (-71pp), and France (-70pp). Concerning the list of European countries above, President Obama had received strong support and a total admiration by Europeans. And this despite serious crises occurring during his mandate such as the Snowden revelations.

The last graph provides a snapshot over a longer period of time of the level of confidence in Western Europe (UK, Germany, France and Spain) in the American leader in power.Global perceptions3

President Bush never received considerable positive reviews from Europe. But the most damaging moment of his presidency, from European point of view, was the 2003 invasion of Iraq. The UK and Spain joined the coalition of the willing, which was not the case for France and Germany. The confidence in the US grew overnight ensuing the election of President Obama in 2008. The Snowden revelations were the lowest point for President Obama and the EU-US relationship during his two mandates. But the persona of Obama was sufficient in maintaining positive perceptions and confidence in the US in Europe. As the confidence ratings climbed overnight in 2008 by ~+60 pp, they dropped by ~60pp.

Trump or Not, the US Remains Central

As advanced in the report, President Trump is perceived, especially in France and Europe, as arrogant, intolerant and dangerous. The data proves that the US-Franco/Europe relations continues to remain strong despite the occasional disagreements. Regardless of the tenant of the White House, the United States remains the indispensable nation figuring at the heart of world affairs and geopolitics. In the case of Europe, the United States is a major contributor and guarantor of European security, through NATO and parallel transatlantic defense and intelligence ties. President of France positions himself as a pragmatist, as declared during his meeting with Vladimir Putin in June. It is in the interest of both countries to maintain strong political, diplomatic and cultural ties. France has a card to play with at this time considering the fraught relationship between the German and American leaders and the ongoing turmoils in the UK. The key for the French leader is to keep a balance between cooperation and independence.

(Copyright 2017 by Politipond. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed without permission).

Mogherini’s World – Reflecting on the 2016 EU Global Strategy

Photo: Reuters
Photo: Reuters

The world has changed. Europe’s neighborhoods are going up in flames causing real problems for the stability of the European Union (EU). European Member States have considerably downsized their foreign and defense spendings due to the Eurozone crisis and lingering economic slowdown. The United States is retrenching; Russia is ever-more aggressive; China is getting more comfortable with its role as a regional hegemon. The threats, from climate change, to migration, to nuclear proliferation, to territorial invasion, are becoming more than ever complex requiring regional and international cooperation and emphasizing the decline of the liberal world order.

In the meantime, the EU was evolving without a clear strategic role as its strategic foundations were based on the 2003 European Security Strategy and framed a world order that seems long gone. But experts and European diplomats have been mentioning that a new European Security Strategy  was in the making. This was officially confirmed during the address on December 8th of the HR Representative, Federica Mogherini, calling for a reflection on a new common strategy, the so-called EU Global Strategy on Foreign and Security Policy (here is the link of the EEAS website on the Global Strategy).

The European Strategic Heritage

The 2003 document, which has been extensively analyzed and written about, had several purposes (for more details refer to the following book). First, in 2003, the EU was highly divided due to the invasion of Iraq by the United Solana-fermeture-014States. HR Javier Solana used the document in order to find a new political unity among the ‘old’ and ‘new’ Europes. Second, with the invasion of Iraq, the US violated core international principles and went alone in Iraq on the idea of preemptive actions bypassing the UN Security Council. The EU felt the necessity to emphasize their core principles for foreign actions: ‘effective multilateralism.’ Last but not least, HR Solana saw the importance to frame the security threats facing the European Union as whole, which had never been done at the European level.

Until today, the strategic baseline of the EU remains the 2003 European Security Strategy adopted by the European Council at the 2003 December meeting and its update, the 2008 Report on the Implementation of the European Security Strategy. The 2003 document was deeply influenced by Robert Cooper and politically promoted by the savvy-diplomat, and at the time High Representative, Javier Solana. The rather short but precise 2003 document followed by its update can be summarized as such (see previous analysis here):

ess

The two problems with the 2003 ESS and 2008 RI-ESS are that both documents do not reflect the new nature of the EU and the agency (note it is not an institution) of the European External Action Service (EEAS) since the Treaty of Lisbon (read two reviews on the EEAS here and here); and that EU and its Member States have not only become risk-averse but as well seeking to do foreign policy on the cheap.

Mogherini’s World

In here opening paragraph, HR Mogherini clearly framed ‘her’ world:

“The world has changed so much since our current strategy of 2003. It is an excellent one, but from a completely different world; a world that allowed the European Union to say that it had never lived in such a secure and prosperous environment. Clearly this is not the case today anymore”

Mogherini’s world is far from Solana’s. The degree of interconnection has accelerated in a

crimea169-408x264matter of a decade. In addition, the Europeans and Americans have been reluctant to play the role of regional power by being more proactive and then active in stabilizing the neighborhoods from the South to the East of Europe. The Arab Spring changed the complexity of politics and affected the balance of power around the Mediterranean sea. General Qaddafi and President Mubarak, once powerful Arab leaders, are gone leaving a power vacuum in North Africa. Then Syria is in the middle of a civil war seeing the rise of a powerful terrorist network, the Islamic State of Iraq and Levant (ISIL) and causing Syrians to flee their homeland. The Al-Assad regime, Russia and a multitude of factions are fighting a bloody civil all under the bombs of Western powers. To the East, Russia has simply invaded and acquired Crimea from Ukraine and has fought a war in Eastern Ukraine, while violating European airspace and cyberspace on weekly basis. Ultimately, HR Mogherini is correct when framing the world we live in as such:

And today we clearly see that we cannot run and hide from what is happening around us. Everything that is important to our citizens is influenced by our international environment. And there is actually no distinction, no borders, no line between what happens far away, what happens at our borders, in our region, and what happens inside our European Union. Even these categories are now losing sense. When it comes to the terrorist threats, when it comes to migration, what is far, what is close, what is inside, is getting confused.

Mogherini’s question is based on the fact that the world does not have any longer global rules. By ‘global rules’ she implies the ones implemented and enforced by the ‘liberal world order’ established at the end of World War two and enforced by the US through a complex institutional networks and sticky sets of norms, principles and rules.

I believe that in an age of power shifts as we are living, Europe can be a global power and a force for good. I believe that faced with increasing disorder, Europe must be the driving force pushing for a new global order: a global order based on rules, on cooperation, and on multilateral diplomacy.

HR Mogherini is calling for the design of new global architectures, based on post-World War two structures, in order to foster cooperation and enforce stability. And here is the problem. The old architecture is centered around the US. Today the US needs the collaboration of new powers like China, India, Brazil and Turkey. The liberal world order will have to be first readjusted to today’s world order centered around a multitude of powers.

Complaisant Power

Her address is certainly not the final document and is, as she mentioned, in a mode of

Credit: EEAS
Credit: EEAS

consultation and reflection. Mogherini emphasizes the success of multilateralism and the need to avoid unilateralism. She identified recent success stories of international cooperation such as the nuclear agreement between Iran and powerful actors and the COP-21 with world leaders meeting in Paris under a UN umbrella structure. But her address feels like a déjà-vu due to a lack of creativity in the strategic thinking process. Mogherini wants the EU to be a respected global actor, but there is a serious gap between ‘wanting’ and ‘being.’

The address lacks of teeth by directly underlining how the EU and its Member States will be acting? How much will be invested in the CSDP? Are EU Member States all committed to pool resources at the European level? What are the instruments at the disposition of the EU to deal with the war in Syria? the refugee crisis? Is there such thing as a European interest? Last but not least, what about power projection? Mogherini wants to inject the European citizens in the drafting process, but none of the critical and contentious issues are mentioned, and even less addressed. This address sends the message that the EU is more of a ‘complaisant’ power than a real power. The 90s European belief of a post-power world with the EU at the forefront is deeply engrained in this discussion. Let’s hope that the EU Global Strategy will not be a recycled 2008 RE-ISS.

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