Migration, Terrorism and the Quest for Transatlantic Sanity

Photo: Reuters/Michaela Rehle
Photo: Reuters/Michaela Rehle

The debate in Europe and the United States has been hijacked by a simple and false amalgam that Syrian refugees are the same type of people that have bombed a Russian airliner and killed over 120 civilians in the streets of Paris. Such amalgam is resonating among the citizens of the Euro-Atlantic nations and is affecting societal unity as well as serious policy-making.

American and European Discourses

In the United States, the political debate for constructive policy-making and governance is on hold until the November 2016 Presidential elections. So far, the political debate has been framed by the large pool of Republican presidential hopefuls seeking for attention and party nomination. Because of the two-step process of American elections, candidates ought to win their party

Photo:
Photo: AP

primaries in order to face the opposition in the second round. Historically, this part of the race is the most extreme and radical as each candidate (from the Republican or Democrat) wants to win the nomination from their party base. In recent decades, the base for the Democrats and Republicans has become more extreme. For such reason Republican hopefuls are tapping in the most radical rhetorics in order to get the nomination. This leads ultimately to ultra-nationalist and anti-immigration narratives highly embedded in ideologies and leaving facts on the side. The current leader of the Republican field, Donald Trump, has been quite tough on wanting to stop immigrants from coming into the US and even rejecting illegal immigrants currently living in the country. But the debate in the US has become even more radical ensuing the terrorist attacks in Paris. Now Governors of the states of Florida and Georgia have both claimed that they will be refusing to welcome any Syrian refugees. First of all, immigration in the US is a federal matter, so that would go against federal policies. Second, the process to get asylum in the US is extremely difficult, long and thorough.

Interestingly enough, Marco Rubio, Senator for the state of Florida, is even forgetting about his own history by taking a tough stand against refugees. His family flew the Cuban dictatorship as many Cubans did since the 60s. For political and historical reasons, the Cubans are among the very few to receive automatic citizenship. Cubans were fleeing a violent dictatorship persecuting individuals opposed to the regime; so are a majority of Syrians. If the 60s and 70s were one of the most tense moment between Communist regimes and Capitalist regimes, the fear was about protection of intelligence and the US responded through the implementation of virulent anti-communist policies starting with McCarthy. Today, the fear from the Syrians is not so much about intelligence gathering and spying, but rather about terrorism. In both cases, the American public has been extremely fearful of welcoming refugees from highly unstable places. Individuals like Marco Rubio taking a selecting reading of personal and national history and migration are affecting the sanctity of an important debate on proper refugee policies.

Credit: Pew Research Center. September 2015.
Credit: Pew Research Center. September 2015.

As illustrated by the recent poll conducted by the Pew Research Center, a majority of Americans (51%) approves the US decision to take more refugees. Within this 51%, the wide majority of Americans in favor of such policy move belongs to the Democratic Party (69%), when only less than 1/3 of Republican supporters approve it. When asked about the US on doing more, only 44% of citizens agree with such statement. If Democrats were predominantly in favor to welcome refugees (69%), only 50% of them are in favor on doing more and 35% rather stay with the current course of action. Ultimately, the current debate taking place in each party reflects very well the results of such poll. In the case of the Republicans, the main argument is to limit the number of refugees, while in the case of the Democrats it is to maintain the current status-quo. Neither parties offer a true solution on welcoming Syrian refugees.

Credit:
Credit: Steve Benson

On the other side of the Atlantic, the populist and xenophobist parties of the extreme right are getting some serious leverage. Not only they are getting into power like in Poland, Denmark and Sweden, but other extreme right parties like in France are continuing their progressive ascension. The European rights are shifting towards the extreme of their spectrum in order to seek for a confused electorates. In the case of France, despite the ongoing investigations, the rights are splitting from the government  and are fighting over a ‘frighten’ and ‘powerless’ electorate. In his many speeches and addresses, President François Hollande has called for national unity and solidarity. But the rights are rejecting such unity. For instance, during the address of the Prime Minister Manuel Valls before the National Assembly, the rights booed and refused to join the current government in maintaining the national unity. The Republicans (center-right) and Front National (extreme-right) shall be called for what they are in this moment of grief, tension and uncertainty (considering the fact that the police and intelligence services are still looking

Photograph: Etienne Laurent/EPA
Photograph: Etienne Laurent/EPA

for terrorists and working on dismantling terrorist cells around the country): vultures. In addition, if one were to actually read and listen to the narratives of Prime Minister Valls, one would get confused about his political affiliation. The securitarian rhetorics of the current socialist government is identical to the ones used by the French rights. In a recent interview with international medias, PM Valls expressed through very tough language radical policies in order to curb the threat of terrorism (read here an article in the Financial Times). In addition, the PM and President have not shied away from repeating that ‘France is now at war’ and more attacks should be expected.

Politically, France is highly divided, much more than after the terrorist attacks in January, while socially, French citizens are in fact seeking and searching for some sort of unity and solidarity. Interestingly enough, the world has offered the unity and solidarity to French citizens more than its own political class. The demonstrations of support in the US and the UK (both on the right of the political spectrum and in opposition to economic and social policies of the Hollande’s government) have been quite humbling.

 The Quest for Transatlantic Sanity and Maturity

The threat of terrorism and its recent successes in Paris, Egypt, Beirut, Tunis (to name a few) is causing Westerners and others to reflect on a simple question: what does the future entail? How do we, as a society, avoid for a radicalization of our youth? and how do we secure our nations without violating our own democratic principles and values? The US waged two wars in Afghanistan and Iraq for over a decade, violated its democratic principles (through the Patriot Act, rendition and the use of torture). Now the French are at war and are passing laws in order to extend the state of emergency as well as a deprivation of nationality for bi-nationals. A French Patriot Act was already in the making ensuing the attacks against Charlie Hebdo 10 months earlier.

With regards to the refugees leaving their homelands in Syria, Eritrea, Somalia, Sudan and others, Europeans cannot find a common position on welcoming them and relocating them across the Union. Member States rather locked them down by closing their borders and ultimately slowly killing one of the greatest successes of the EU, the Schengen agreement (read here a previous analysis on the issue). Europeans live in the absolutely fantasy that closing and re-instituting national borders will ultimately stop the flow of migrants. In the 19th century and early 20th, an ocean and closed American borders did not stop Italian and Irish migrants to seek for an opportunity in the United States. So it is quite futile to forget about history and geographical realities.

The obvious policy response from, supposedly developed countries, should be to assume their responsibilities by welcoming refugees and letting their legal mechanisms grant asylum to the few of them. The question of the Schengen agreement should be properly addressed instead of being criticized for political reasons. The concept of Schengen, a borderless continent, is fascinating but cannot work without its members boosting up their cooperation between their police and intelligence services. Free movement of people should be guaranteed, but that does not mean that it should be a lawless continent. Criminal and terrorist networks ought to be controlled through deeper European cooperative mechanisms requiring more funding, more human and material capabilities, and naturally political will.

The two complex crises of migration and terrorism have illustrated a core reality. Our ‘leaders’ need to do more ‘leading’ and less following. Governing is a complex matter that requires vision, leadership and courage. Until our elected officials seek for perpetual reelection by only worrying of grabbing an endlessly shifting confused electorate, these complex crises will linger.

(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).

Mr. Renzi Goes to Washington

Photo by Olivier Douliery/UPI
Photo by Olivier Douliery/UPI

A year ago, President Obama and Matteo Renzi were meeting in Rome. On Friday, April 17, Matteo Renzi, Italian Prime Minister, was in Washington D.C. meeting President Obama in his first trip to the United States as the head of the Italian government. In the statement delivered by the White House’s Press Secretary on March 17 announcing the visit a series of issues were highlighted such as “support for Ukraine and continued U.S.-EU unity on pressuring Russian-backed separatists in eastern Ukraine to adhere to the Minsk agreements; the situation in Libya; and the need for the international community to continue efforts to counter ISIL and other extremists throughout the Middle East.” Even though the issues on the table are the same ones discussed last year in Rome, Matteo Renzi came to D.C. with a very different aura considering the results already obtained thanks to his policies.

Matteo Renzi – Changing Italy’s Future

Matteo Renzi came to D.C. at the right time considering the solidification of his power at home and in Europe. Renzi has worked on rebuilding domestic trust and in reestablishing Italy as a core and central country of the European Union. The years under Silvio Berlusconi contributed to the decline of Italy from what used to be an axiomatic EU Member State. So far it seems that Matteo Renzi is succeeding on both fronts. Domestically, he has established himself as the man of the situation by ending years of political instabilities. Politically, Forza Italia, right wing political party, has been kept under control after the disastrous years under Silvio Berlusconi. Economically and fiscally, yes the Italian overall debt remains massive representing 126% of the GDP. But on the bright side, the Organisation for Economic Cooperation and Development (OECD) project that the Italian economic outlook should be promising for 2015 with an expected growth of 0.6%. Even though the growth seems at homeopathic dosage, it would be the first time since mid-2011 that Italy would see some types of economic growth. Italy has been in recession for over three years now. All the cuts possible won’t be enough in order to lower the overall debt without growth; Italy must re-familiarized itself with economic growth.

At the European level, Italy is becoming relevant and an active member once again. The federicamogherinimatteorenzigovernmentyf0fx-kziyglmost obvious example was the appointment of Federica Mogherini at the helm of European foreign affairs. In less than a year, she has already demonstrated her commitment to her mission and has represented the EU where needed. Her short tenure at the EEAS has offered the EU and its Member States a new dynamism and presence on the regional and international platforms (read here a previous analysis on Mogherini’s 100 days). However, Matteo Renzi seems to be too close, for many Europeans and Americans, to Russia. The relationship between Italy and Russia is certainly long, but for many it seems that Renzi needs to be stronger in his opposition to Putin’s actions in Europe.

For both reasons, Mr. Renzi went to Washington with a certain aura and credibility. The economic engine is on and Italy matters once again in Europe.

Solving Libya and Ukraine

Ahead of this high level meeting at the White House, two issues are extremely important for the transatlantic community: Libya and Ukraine. From Rome, the crises in Libya and Ukraine are affecting directly the national security of Italy as well as the EU as a whole, while from Washington, President Obama would rather lead from behind with the help of core Atlantic partners, Italy for instance, than having to be directly involved on the ground. For one it is about security and survival, for the other it is about influence.

The crisis in Libya is serious for two reasons. Since the fall of the Qaddafi regime in 2011, led by an euro-atlantic coalition, the country has spiraled into a civil war. The civil war has created a power vacuum in the middle of North Africa offering the exit point for many Northern and Central Africans leaving their home countries because of political violence, war, dire economic conditions, terrorism with the hope to reach the European continent for a better life. The point of exit of Africa is Libya. Libya has become the transit country for most of illegal migration. In addition to unchecked migration, the civil war and lack of government have offered a new ground to the Islamic State of Iraq and Levant (ISIL). ISIL has emerged in the country directly threatening neighboring countries, which includes Europe.

In the case of Ukraine, President Obama wants to assure the guarantee of unity of Europe

PHOTO: AGENCE FRANCE-PRESSE/GETTY IMAGES
PHOTO: AGENCE FRANCE-PRESSE/GETTY IMAGES

in facing Russia. Crimea seems to belong to Russia and Ukraine should accept it, now the fights in Eastern Ukraine need to be solved. The Minsk agreement of February 2015 for a cease-fire was not enough, and the Euro-Atlantic community needs to be on the same page when addressing Russia. The economic sanctions implemented last summer by the EU are due to expire in late July 2015. So far there is no unity in the EU to extend them. A year ago, Italy was called on for trying to block the implementation of the economic sanctions against Russia. One reason is that Italy is the second largest trading partner with Russia after Germany. Russia has been strongly lobbying Italy in softening the sanctions against them. President Obama may want to avoid a situation wherein Italy limits the reach of the sanctions against Moscow.

In a matter of a year, Matteo Renzi seems to have delivered on many of his domestic promises and came with a certain aura to Washington. Matteo Renzi was hoping for some financial assistance in dealing with Libya (why not a NATO mission?) and in toughening his voice against Russia. Additionally, President Obama might have asked for some Italian support in order to try to finalize the massive T-TIP, which is lingering and creating strong discords in Europe. For what has been a very opaque meeting, due to the superficiality of Obama and Renzi’s comments (read here the joint press conference), Obama and Renzi wanted to solidify the ties and bring Italy back on the center stage.

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