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.

Screen Shot 2018-06-23 at 4.51.57 PM
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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Once upon a time, the EU was a Nobel Peace Prize Laureate

 

europee-crisis_0

Three years ago I wrote a piece beginning by: “It all started in the aftermath of World War II and in the emotional and material rumbles of Europe. The visionary great men of Europe — Jean Monnet, Robert Schuman and Konrad Adenauer —understood that peace in Europe would only be possible through deep economic integration, strengthening an irreversible degree of cooperation between Western European powers.” This was in mid-October of 2012, when the Norwegian Nobel Committee gave the Nobel Peace Prize to the European Union (EU). The rationale behind the prize was that the EU was a process permitting to make war unthinkable and allow for economic growth. This was a proud moment for Europeans, even though most of them did not pay much attention, and for Europeanists.

Radicalization of Domestic Politics

Today it is with real sadness to realize that in less than three years the survival of the EU appears in direct jeopardy and on the brink of implosion. Domestically, nationalism is ramping through either the rise of extreme-right wing parties, like the Front National in France, UKIP in Britain, Golden Dawn in Greece, or more recently through the

Image: AFP/Getty Image
Image: AFP/Getty Image

reemergence of extreme leftist parties like Podemos in Spain, Syriza in Greece, and the newly elected Jeremy Corbyn in Britain. In addition, the narratives and actions demonstrated by the Obrán government in Hungary talking of a Christian Europe is affecting the overall normative message of EU (read a previous analysis here). These movements demonstrate a radicalization of the political debate directly informed by a highly emotional and confused electorate witnessing a continuous and unstoppable decline of their socio-economic condition.

Directly related to the rise of European nationalism is the financial crisis, which has spilled over to the Eurozone. The euro crisis has left the 17 Eurozone economies, at the exception of Germany, into a state of economic lethargy. In the case of Greece, the country has been on the brink of default for years and its future does not look promising based on the reports produced by the International Monetary Fund, a member of the Troika. In the case of France, still an economic pillar of the Eurozone, the succession from right to left has demonstrated the inabilities of traditional political parties to build confidence, implement meaningful structural reform, and lower inequalities. Part of the problem is the divide between a common currency and national fiscal policies.

Regional Inefficiencies

Regionally, the lingering war in Ukraine is a direct illustration that war on the European continent continues to live on. A last minute cancelation by Ukrainian President Viktor Yanukovych of a bilateral agreement between Ukraine and the EU in November 2013 sent off Ukraine into one of its darkest periods. Two years later, Ukraine lost a piece of its territory, Crimea, which was annexed by Russia in spring 2014 after a quickly organized referendum (read here an analysis on Russian influence over Europe). Since the annexation of Crimea, not only as Ukraine lost the peninsula, which is never mentioned by

Photo: Kremlin.ru [CC BY 3.0 (http://creativecommons.org/licenses/by/3.0)], via Wikimedia Commons
Photo: Kremlin.ru [CC BY 3.0 (http://creativecommons.org/licenses/by/3.0)%5D, via Wikimedia Commons

the 28 EU Member States, but the war in the Eastern border of Ukraine has severely affected the political, economic and stability of Ukraine. The only instrument implemented by the EU, which has been very successful, is a series of sanctions against Russia. But unity among the 28 on keeping and deepening the sanctions is slowly disappearing in favor of national gains.

The second serious regional crisis is the current migration crisis. After the 2007 Arab Spring, many in the West and the Middle East and North Africa (MENA) were hopeful for a democratic transition of many countries under long-term dictatorships like in Egypt, Syria, Tunisia and Libya. The time of euphoria quickly turned sour for Arabs and Westerners, witnessing either the reemergence of authoritarian regimes (Egypt), their survival (Syria) or simply collapse of the state (Libya). Since then, the EU, which has not done enough with its American counterparts in assisting in the transition of these states, is seeing an unprecedented number of refugees fleeing their homes, which have become war zones like in Syria, Afghanistan, Eritrea, Somalia and so forth. The mass of refugees seeking for asylum in the richest EU countries is not new, but the current mass of refugees is unprecedented and is underlining the weaknesses of the EU (institutional) and dismantling European solidarity.

A Crisis for Ages – The Migration Nightmare

If the Eurozone crisis, or at least a Greek default, were framed as the event that could kill the Euro and ultimately the Union as whole, these were the good old days. The migration crisis is directly threatening the future of the Union. If Germany and Sweden have been the good Samaritans in welcoming refugees (in 2015, it is estimated that Germany could welcome between 800,000 and 1,000,000 asylum seekers), Chancellor Merkel with her Minister of Interior, Thomas de Maizière, have reinstalled border control at the frontier with Austria. This move by Germany has started a snowball effects with other EU Member States implementing similar measures. The closing of borders to control the movement of people is a direct violation of the Treaties. The border-free Schengen agreement is one of the most successful and visible symbols of the European Union. It is too some extent a sacrosanct dimension of the EU.

European Integration in Danger?

The European integration process is a complex story of crises and adequate responses through policy changes and bargaining power. The period of the empty chair, the end of european_crisisthe Cold War and the reunification of Germany, the war in Kosovo, the divide between old and new Europe around the Iraq crisis, the no to the 2007 Constitutional Treaty and the Eurozone crisis have all been serious crises, but yet manageable for the European leaders. It appeared that European actors understood the need to solidify the Union and put aside differences in order to solve a crisis. The migration crisis is showing the worst of Europeans and their leaders, and European solidarity remains to be seen. Jean-Claude Juncker, President of the Commission, called for courage in remaining altogether and implementing meaningful measures like quotas. With a weakening Euro, as the Eurozone crisis has yet to be solved, the Schengen agreement under attack, a possible Brexit in 2016/17, the EU appears to move towards an ‘ever-lesser Europe.’ Yes, once upon a time, the EU was a Nobel Peace Prize laureate.

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

 

Global Survey on the Migration Crisis – The European Project on the Brink of Collapse?

Photo: Virginia Mayo / AP
Photo: Virginia Mayo / AP

The migration crisis is not ending and is in fact increasing the divide between EU Member States, overstretching the fondations of the EU (Schengen agreement), and underlining the lack of solidarity among European actors. If Germany was the model, or at least the moral authority of Europe, in terms of receiving asylum seekers (expected to be over 800,000 this year), Chancellor Merkel and her Minister of Interior, Thomas de Maizière, have announced over the weekend that Germany will be reinstating border control between Germany and Austria. Such move goes against the principles of the Schengen agreement and illustrates a needed response by Chancellor Merkel to domestic pressures. Interestingly enough, the implementation of border control comes a day prior the EU ministers meeting seeking to find a common solution to the current migration crisis.

After a month of data collection, the survey created and monitored by Politipond on the question of the migration crisis has finally closed (here is the link to the survey). The questionnaire was designed in a way that would permit to identify and analyze several variables: actorness of the EU; role and influence of the Member States; influence of domestic politics; European push towards greater integration; and European identities.

Sample and Questionnaire

The survey was composed of 10 mandatory questions with multiple-choice answers. The questionnaire was designed in order to analyze how global participants feel about the crisis, understand the crisis, and perceive the way EU Member States and institutions try to deal with the issue. The survey counts 38 participants from all around the world. None of the participants were solicited and most of them found out of the survey by either receiving the Politipond‘s newsletter or through social media (Facebook, Twitter, and Linkedin).

Source: Politipond. 2015
Source: Politipond. 2015

After a month of data collection, the largest participating countries were Portugal, the United States, France and Germany. These countries are an interesting sample as they incorporate the US, the quiet superpower, the Franco-German engine, and Portugal a member of Southern Europe. The US is an interesting actor as it has been very absent actor on the crisis, even though President Obama has recently announced some participation in welcoming refugees. Nevertheless, American media (The New York Times, the Wall Street Journal, the Washington Post, NPR, the Miami Herald, USA Today and the Los Angeles Times) have been covering the issue in depth for months and the American public opinion is deeply divided on the question. The issue of migration and immigration have been an important dimension in the current presidential campaign for 2016.

In the case of France and Germany, both countries are important historical partners that usually shape the direction of the Union. If Germany has proven to be the most welcoming EU Member State, with Sweden, France has been a much more cautious and observing actor. In recent days, France has expressed its support to Germany. Last but not least, Portugal is part of the infamous PIGS group (Portugal, Italy, Greece and Spain) or Southern Europe. Portugal has, like his southern partners, faced serious socio-economic degradation since the collapse of the world markets. Portugal at the difference of Greece, Italy and Spain, is not a recipient of migrants due to its geographical position. However, the debate in Portugal has been focusing on the migration crisis.

Variables – Power, Institutions, and Identity

Credit: Politipond. 2015
Credit: Politipond. 2015

Each variables can be measured by countries and see if participants have diverging position based on their country of allegiance (see graph below). These variables sought to identify several aspects: institutional design and power; identity; and actors’ behaviors and actions. Question 1 and 3 received an overwhelming yes vote with 90% in favor of a common European asylum policy (which needs to be reformed as the current Dublin regulations are showing signs of weaknesses) and that solidarity is required in order to address such pressing issue. However on the question of mandatory national quotas promoted by the Commission, one third of the participants are opposed to such policy move by the supranational European body.

Question 5 and 6, looking at nationalist policies, received a high degree of no vote with an average of 85%. Participants seem to find counterproductive for Britain to put the blame on France for his lenient approach to addressing the number of refugees in camps in Northern of France. In addition, participants overwhelmingly expressed their opposition (90%) towards nationalist policies of closing borders and forcing migrants out.

7Countries
Source: Politipond. 2015

This graph above is identical to the previous one, but is looking in the way the four countries, with the highest degree of participants, responded to the same questions. On question 1 and 3, all four countries responded similarly. On question 2, Germany appears to be the least favorable towards national quotas promoted by the Commission. Question 6 on blaming French for not doing enough in Calais, both the US and Germany believe that France has been lenient and has not done enough in addressing the number of migrants in the camps. 12% of Portuguese participants claim that nationalist policies of closing the borders and forcing migrants out is an appropriate solution in addressing the migration crisis. On the last question of cooperation at the European level, French participants (32%) tend to believe that European leaders are working towards a common European solution.

Who is Responsible for the Crisis?

Source: Politipond. 2015
Source: Politipond. 2015

Not surprisingly, most participants blamed the Member States (29%), minus Italy and Greece (a total of 0%), for failing to address the crisis. The most interesting dimension is that failed countries, like Syria, Eritrea, Afghanistan, Yemen, Somalia, are seen as a large part of the blame with 26%. The EU is regarded to have failed in dealing with the crisis (with 13%). However, it is unclear what exactly the EU means as the Commission and the Parliament are not considered as responsible, which leaves the Council of Ministers and the European Council. Ultimately, the EU is usually considered as a black box without clear materialization of who does what. The traditional blame of the EU for failing to address a crisis is reflected in this study. But the graph demonstrates that participants tend to mis-understand the EU and what it is.

Call for Foreign Military Interventions?

4.Intervention
Source: Politipond. 2015

A missing aspect of the talk on solving the migration crisis has been foreign interventions. Most of debate consists in addressing the flows of migrants inside the European territory and the failed European asylum policies. However, one core dimension in solving, at least in the long term, the migration crisis will be to address the root causes in Afghanistan, Libya, Syria, Eritrea, Yemen, Somalia, Sudan and so forth by stabilizing these territories, rebuilding the states and their authorities, lowering corruption and cronyism, and dealing with neighboring countries (read here an analysis on failed states published by EU Center at the University of Miami).

These conditions are central in order to permit future migrants to live productive lives in their home countries. The big question is how much the Euro-Atlantic community can be efficient in such missions in so many countries and are their public opinion in favor of such ‘sacrifice’? According to the results of the survey, 62% of participants consider that either military (27%) or civilian (35%) CSDP missions would permit to address some of the root causes. And with 14% of the votes, participants feel that national missions, like the ones deployed by the French army in Mali and Sahel regions, could be effective operations of stabilization and peace-building.

Interestingly, 76% of the participants are in favor of foreign interventions, either military or civilian, as opposed to 24% against any type of foreign interventions. Regardless of the small sample of the participants, 3/4 of them favor foreign interventions. The French government has expressed its position in favor of the use of force in Syria through air bombing. It seems that the French public opinion is in favor of such military road.

From a Fortress to a Borderless Union

5.Image
Source: Politipond. 2015

Images have been an important variables in shaping public opinion and creating an emotional reactions to the migration crisis (read a previous analysis on the topic here). Based on the results, the leading image in identifying the EU in dealing with the crisis is

Cartoon: Plantu
Cartoon: Plantu

‘Fortress Europe’ (with 43%) followed by ‘borderless Europe’ (34%). The identification of the EU as either a soft power or civilian power falls well behind and demonstrates the irrelevance of such terms. If Fortress Europe implies huge wall protecting the European territory, borderless Europe is its absolute antonym. The words borderless and fortress are fascinating as, despite their fundamental opposition, European citizens are using both concept interchangeably.

Normative Europe appears to be a construction by the EU to justify its moral behavior implying a certain degree of inaction and risk-averse foreign policies. If the concepts of ‘soft power’ and ‘civilian power’ are heavily used by European diplomats and experts, they are only part of the European dialect. In a recent work, that I participated on, on perceptions of the EU in the US (expected to be published in the Fall or early spring), it was demonstrated than ‘normative Europe’ barely exist outside Europe.

Leaders and Policy-Makers – Who Matters?

Source: Politipond. 2015
Source: Politipond. 2015

With an overwhelming majority (61%), participants argue that no European leader is in measure of making a difference in dealing with the current crisis.  Chancellor Merkel of Germany (11%) and Jean-Claude Juncker, President of the Commission (8%), are the leading candidates in being the ones with the greater influence in the shaping of policy-making. Both players share a common vision of quotas and redistribution across the Union as well as opening the countries to the refugees. The interesting aspect is British Prime Minister Cameron (5%) coming into fourth position, with the Italian Prime Minister (5%). If the Italian PM is facing a serious crisis with the large influx of migrants crossing the country (it is estimated that 1/4 of them will eventually stay in Italy), British PM is trying to keep them outside of the island.

François Hollande of France and his European counterpart, HR Mogherini, are not perceived as being influential players. In the case of the French President, the number could be different a month later, however, the situation in Calais with the refugee camps is not playing in favor of the French President. HR Mogherini has not been as visible to the general public, but has been playing an important role in the deployment of the CSDP mission of EUNAVFOR Med off the coasts of Italy and Greece. She has been active on dealing with the foreign dimensions of the crisis. This aspect of the crisis has not been properly covered by the media, and most citizens are not concerned about such dimension.

The End of the European Dream?

The reinstatement of border control by Germany on the segment shared with Austria has led to a snowball effect with now Slovakia, the Netherlands and Austria announcing similar measures. Such political decision made by Berlin and now other EU Member States is a direct attack on a core principle of the EU, the Schengen agreement, which guarantees the free movement of people across the Union. Even though the Treaties offer the possibility for EU Member States to lift the open borders in case of emergency or national security, it is always a controversial move. In the case of the migration crisis, a lifting a the Schengen agreement, demonstrates the obvious:

  • inability to protect European borders and the neighborhoods,
  • inability to enforce the Dublin Regulations, which demonstrates the weakness of the integration process;
  • lack of solidarity among the 28 EU Member States,

The migration crisis underlined all the weaknesses, which have been denounced by experts for decades, of the EU all at once. It shows that the EU and its Member States have lived in this perpetual belief of post-sovereignty world and denial of the world shaped by hard power. In some ways, it seems that EU Member States and the EU have incorporated all the components described and advanced by Francis Fukuyama in his 1998 book of The End of History. Today, the refugees, seeking for a better world and a chance to raise their kids in a stable and secure environment, have brought the EU to the brink of failure, tear down the concept of European solidarity (if it ever existed), and brought the worst of European societies with the continuous rise of nationalism and xenophobia.

To the defense of the EU, it has one element in its favor, ability to adjust and reform in the worst of the storm. After over 60 years of existence, the EU has gone through several deep divides, like the period of the empty chair, the end of the Cold War, the divide over the Iraq crisis, the rejection of the Constitutional Treaty, the Euro crisis, and now the migration crisis. In each crisis, the Member States have been able to adjust and advance. But will this time be an other example of Europe’s ability to adapt? or, will it break? The results of the survey conducted over the month of August validate these comments and show that European citizens are highly dubious about the future direction of the Union and ability of their leaders to address the root causes of the crisis, while maintaining European cohesion. The migration crisis is overwhelming and stretching the European unity and structures to a level never experienced before.

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

Juncker’s Trinity – Honesty, Unity and Solidarity

Source: The Parliament Magazine
Source: The Parliament Magazine

Jean-Claude Juncker, President of the European Commission, made his first State of the Union before the European Parliament in Strasburg (read his address here). As he recalled in the early part of his address, the State of the Union is an important institutional exercise solidifying the relationship between the Commission and Parliament. In the State of the Union, the President addresses the overview of the past year, and identifies the priorities for the coming year. The title of his address is State of the Union 2015: Time for Honesty, Unity and Solidarity. Juncker wants to take a hard look at the way the EU and Europeans behave, which has been quite disastrous these last years, and the types of solutions that could be implemented in order to solve the many crises facing the Union.

The tone of his address was quite dark and accusative. At several occasions, Juncker was very critical, and pretty much started his address by saying that “our European Union is not in a good state.” In order to change the current path, Juncker urged to re-find a common European ground and solidarity among the 28 nations.

Source: European Commission. 2015
Source: European Commission. 2015

Five key priorities were identified by President Juncker: the refugee crisis; the euro area and the Greek future; the Brexit; the instability of Ukraine; and, climate change. They can be grouped into three categories: internal/institutional, regional and global.

Internal/Institutional Priorities

The first priority for the Europe as a whole is finding solutions for the refugee crisis. Juncker spent a considerable amount of time talking about the crisis and the solutions that can be implemented. Before talking cooperation and coordination, Juncker underlined the shared historical heritage of Europeans and the fact that migrations caused by political persecutions and oppressions have occurred at many occasions on the European continent. Juncker implied that forgetting our European past, or simply selecting moments of history, is not an acceptable approach. Juncker addressed the question of numbers of asylum seekers and correctly put it in perspective saying that they simply represents 0.11% of the overall EU population of 500 millions, when they are representing 25% of the Lebanese population (read

Source: New York Times
Source: New York Times

a previous piece on the topic here).

Juncker underlined that the Commission has been advocating for more integration on immigration policies in order to create a Common European Asylum System. If Juncker reminded the positive actions implemented by the EU like Frontex, foreign aid to Syria and so forth, he said that “Where Europe has clearly under-delivered, is on common solidarity with regard to the refugees who have arrived on our territory.”

In dealing with rising numbers of refugees arriving in Italy, Greece and Hungary, the Commission is pushing for the adoption by the EU meeting of ministers of September 14th of the “Commission proposals on the emergency relocation of altogether 160,000 refugees.”

The last sentences of his part on the refugee crisis was quite a powerful statement as it clearly illustrates Juncker’s vision of what Europe is and should be:

I do not want to create any illusions that the refugee crisis will be over any time soon. It will not. But pushing back boats from piers, setting fire to refugee camps, or turning a blind eye to poor and helpless people: that is not Europe.

Europe is the baker in Kos who gives away his bread to hungry and weary souls. Europe is the students in Munich and in Passau who bring clothes for the new arrivals at the train station. Europe is the policeman in Austria who welcomes exhausted refugees upon crossing the border. This is the Europe I want to live in.

The crisis is stark and the journey is still long. I am counting on you, in this House, and on all Member States to show European courage going forward, in line with our common values and our history.

Source: Politico. 2015
Source: Politico. 2015

 

The second priority concerns the Euro area, Greece and the European social model. The third priority consists in maintaining the unity of the Union by keeping Britain inside the EU. Juncker has always been clear on the fact that the UK ought to remain a core member of the Union.

Regional Priority – Ukraine

The fourth priority identified by Juncker deals directly with the stability of the European continent, and especially with the lingering military and political crises in Ukraine. Juncker’s view on the Ukrainian crisis is that the EU “will need more Europe and more Union in our foreign policy.” Juncker underlined that the 28 nations must show more unity in confronting Russia and demonstrating to Russia that it will have to pay a high cost in maintaining the regional instabilities in Eastern Ukraine. Interestingly enough, Juncker did not mention Crimea and its annexation by Russia.

Global Priority – Climate Change

In December, Paris will host the COP-21 meeting, which Europeans would like to be the meeting that brought global unity and commitment to addressing climate change. “Europe’s priority,” underlined Juncker “is to adopt an ambitious, robust and binding global climate deal.” The ultimate objective for the Europeans is quite grandiose as they hope to achieve the creation of an “international regime to efficiently combat climate change.” The creation of an international regime would be a fantastic first step, but having a regime without clear powers, independent enforcement mechanisms, and a fund would be meaningless. Then, each signatory of the regime will have to ratify it back home. If Europe can offer credible influence, it is uncertain that the United States, in period of presidential campaign until November 2016, would ratify it.

Juncker’s approach, which is in fact a Commission’s approach, to addressing the problem of climate change is a market-oriented strategy based on two aspects. The first one is the EU Emissions Trading System, which consists in trading quotas of emissions, and the second one is the development of the Energy Union, which is as well focused on innovations and on the interconnection with the markets.

Despite Being Political, the State of the Union Falls Short

Jean-Claude Juncker’s address is interesting as he, early on, underlined his legitimacy as President of the Commission as he was appointed directly after the elections of the European Parliament. Certainly, the President of the Commission is not directly elected by the European citizens, but for the first time ever the different candidates for his posts were semi-campaigning. Ultimately, he claimed that he has had “the opportunity to be a more

 Photo: REUTERS Italian Member of the European Parliament Gianluca Buonanno (L) wears a mask depicting German Chancellor Angela Merkel
Photo: REUTERS Italian Member of the European Parliament Gianluca Buonanno (L) wears a mask depicting German Chancellor Angela Merkel

political President” and he told the Parliament that he “wanted to lead a political Commission. A very political Commission.”

The Commission is the executive body of the European Union as its role is to enforce and advance the interests of the Union. In short, the Commission is the guardian of the Treaties. Even though President Juncker appears to be frustrated about the direction of the EU, the lack of solidarity and unity among the Member States, his first State of the Union falls short for several reasons (read here a piece by Tim King of Politico arguing that Juncker lacked in persuasive explanation):

First, the address is too complex and tends to go back to the legal texts at too many occasions in order to validate and justify the power and legitimacy of the Commission. The address could have been much shorter and direct without all these legal justification. It is not certain that Juncker needed to offer some lecturing about the institutional design and functioning of the EU. In addition, this quest by Juncker for legitimacy and perpetual justification of his power is quite interesting and may underline some complex tensions at the European level.

Second, if Juncker’s plan on reforming the asylum model in Europe is well thought out, the solutions for Greece are not present at all. The part on the Greek crisis reinforces the sentiment that the EU is unable to merge the gap between a common currency and national fiscal policies and most importantly find a solution in re-launching the European economic engine.

Last but not least, if the five issues identified are right on the approach to solving them is the traditional one coming from the Commission and can be summed up by “more Europe.” This motto advanced the Commission of “more Europe” in order to solve all internal, regional and global problems is for many the cause of the disconnect between Brussels and the European nations. In his first address, Juncker failed in connecting with European citizens.

To end on a positive note, one of the most meaningful statements made by Juncker, which was lost in the length of text, appears in the conclusion. He said “While I am a strong defender of the Community method in normal times, I am not a purist in crisis times – I do not mind how we cope with a crisis, be it by intergovernmental solutions or community-led processes. As long as we find a solution and get things done in the interest of Europe’s citizens.” Such statement shows the true colors, meaning political philosophy, of Juncker and the desire to find the most appropriate solutions to solving serious crises. This should have been the core argument of his address.

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

The Unacceptable European Policies and Narratives towards Migrants

Sources: The New York Times and Associated Press
Sources: The New York Times and Associated Press

Too much has been said in dehumanizing the refugees coming to Europe in the name of simplification and nationalism (read here a previous analysis on the issue). The 71 refugees recently found dead in a truck in Austria is another horrific example of the tragedy taking place on European ground. Ensuing the discovery of the 71 corpses in the truck in Austria, UN Secretary General Ban Ki-moon, made a powerful, and yet short, statement about the migration crisis in Europe. “This is a human tragedy” he declared “that requires a determined collective political response. It is a crisis of solidarity, not a crisis of numbers.”

It seems that the Austrian case has motivated Germany, France and the United Kingdom in seeking for a European solution. A call for action from Berlin, London and Paris is important as they are the most powerful capitals in the EU and usually action occurs once the three of them have set the motion on. However, on the question of migration, they have diverging reasons: Germany is the largest receiver of asylum seekers and seriously needs assistance from its European partners; the United Kingdom is rethinking its European membership and Cameron appears to be in favor of maintaining the UK within the EU, so he cannot move to far right; France receives a large amount a refugees and is dealing with rising cases of terrorist attacks. For the three of them action will always look better from a domestic standpoint. Ultimately on September 14th, the EU ministers of interior will be meeting at an emergency summit.

Even though the three EU powerhouses have agreed on seeking for a common approach, other EU Member States have adopted anti-migrants measures that go against the normative and ethical standards established, agreed and promoted by the European Union.

Anti-European Measures?

With increasing numbers of migrants coming from the Middle East, North Africa, and Africa, several EU Member States have implemented radical measures in dealing with the large movement of migrants (read previous analyses here and here on the issue). Interestingly enough, these Member States are not receivers of migrants, but are transit countries on the way to the final destinations of Germany, the United Kingdom, France and Sweden. The measures implemented by Bulgaria, Hungary, France, and the Former Yugoslav Republic of Macedonia (an EU candidate country) are troublesome.

Source: Europol & BBC
Source: Europol & BBC

Bulgaria, one of the most recent EU Member States, is a transit country for most migrants coming from Turkey. Bulgaria deployed troops, which included tanks, to its border with Turkey and Macedonia. Such political move has raised some serious criticism from human rights groups. The Bulgarian Ministry of Defense argued that it was simply a “preventive” operation. A military solution to a human crisis is generally not the most appropriate option. Bulgaria has as well built a 160-km fence along its border with Turkey. And Slovakia only wants Christian refugees.

Hungary has received the most negative coverage and attention for its approach to dealing with the crisis. Hungary’s policies are directly aligned with the government led by Viktor Orbán. His narratives against migrants and even the EU have been quite virulent. “The

Photo: Attila Kisbenedek/AFP/Getty
Photo: Attila Kisbenedek/AFP/Getty

prime minister and many members of his cabinet have made it perfectly clear,” argued Marton Dunai of Reuters “saying things like, we don’t want thousands and thousands rampaging through the country every day.” As Bulgaria, Hungary is a transit state to richer EU countries, as it is “the gateway to Europe’s visa-free Schengen zone.” In order to lower the number of migrants crossing the country, the government has ordered the creation of a razor wire fence along its border with Serbia. This fence is more of a nationalist stunt than a wall blocking migrants in Serbia. Asked on the wall being built by Hungary, French Foreign Minister Laurent Fabius expressed his anger towards the Hungarian initiative. “I take a very dim view, a very dim view” said Laurent Fabius. “Hungary is part of Europe. Europe has values and these values are not respected by putting up wire fences.” The comments by Laurent Fabius have created a fraught between France and Hungary. Hungarian Foreign Minister, Peter Szijjarto, responded that “Instead of shocking and groundless judgements, one should instead concentrate on finding common solutions for Europe” and has even summoned the French Ambassador to Hungary.

Source: The Economist. 2015
Source: The Economist. 2015

France should as well be listed as a EU Member State not doing enough in the case of the migration crisis. The recent call by the French government for an emergency summit is a positive element, but for too long France has let camps grow in the suburbs of Calais, first with Sangatte and now with the Jungle. The current situation in the Calais camp demonstrates the lack of desire by the French government to deal properly with the 5,000 migrants trying to reach the other side of the English Channel. European Commission Vice President Frans Timmermans has announced that France will receive up to five million euros that “will be used to set up a camp that can provide humanitarian assistance to around 15-hundred migrants. The money will also go on transporting asylum seekers to other destinations in France.” France has not done enough in the last decade to create appropriate infrastructures in the region of Calais to accommodate the migrants.

The last case is the recent use of force by the Macedonian authorities. The Former Yugoslav Republic of Macedonia is not a EU Member State, but a EU candidate. As Bulgaria, they do not belong to the Schengen agreement and are transit countries. Macedonia is directly on the path to Hungary. In the last two months, Macedonia has recorded over 40,000 migrants crossing its country to either go to Serbia or Hungary. In August 21st, the Macedonia authorities used force against migrants. This event comes at a time wherein the Prime Minister has been facing serious domestic criticism as he is facing allegations of illegal wire-taps, corruption and authoritarianism.

 

Cartoon: Kountouris
Cartoon: Kountouris

Amalgams and Political Games

Extreme-right wing and mainstream parties throughout the Union have oversimplified the migration crisis in the name of short-termism and nationalism. The rise of nationalist parties throughout the EU framing the debate and ultimately fostering fear in the hearts of many Europeans and elected officials are transforming the debate on one of the most important problems facing the Union into an absolute aberration.

The amalgam that has been made, and is starting to hold in the collective memory, that migration translates into an increase of terrorist and criminal acts has to be rejected by the elected officials. The recent tragic event in the Thalys train from Amsterdam to Paris has nothing to do with the current migration crisis. But the link is continuously made and hammered by media and politicians that a belief with no empirical evidences, as most of the specialized literature on terrorism rejects, is being transformed into a fact. Elected officials, politicians in Europe and in the US are constantly reminding the audience of such belief.

Across the pond, the leading candidate for the Republican nomination, Donald Trump,

Photo: Scott Olson/Getty Images
Photo: Scott Olson/Getty Images

has completely shifted the debate on immigration from a social problem into a security problem using similar strategy. In the brilliant piece published in the New Yorker, Evan Osnos quotes Trump’s 1987 memoir, wherein he wrote “I [Donald Trump] play to people’s fantasies. I call it truthful hyperbole. It’s an innocent form of exaggeration – and a very effective form of promotion.” The words and narratives made by politicians like Donald Trump, Marine LePen, Nicolas Sarkozy, Vicktor Orbán, David Cameron, Geert Wilders are a constant reminder of the danger of radicalizing a debate as contentious as immigration. The case of Thalys, perpetuated by a Moroccan citizen Ayoub el Khazzani, clearly a terrorist act, has no connection with Syrian refugees fleeing a warzone between dictator Bashar Al-Assad, ISIS, and a multitude of factions.

“This may not matter to the National Front’s core electorate,” wrote top French expert François Heisbourg in an op-ed published in the Financial Times “but it does mean that mainstream policy has largely conceded defeat when it comes to values. Europe is better than this; so is France. Europe’s leaders need to live up to our responsibilities as humans and as neighbours, assume part of the burden, and talk straight to the electorate. Continued European and French fecklessness will only improve the far-right’s prospects of success, and deepen what is already an unprecedented crisis.”

Juncker called in a recent op-ed for “collective courage,” rather than solidarity. Now is the time to do so. The migrant crisis has underlined a paradox between national asylum policies and the schengen agreement of open borders. This crisis, like the Euro crisis, demonstrates the challenges that the EU and its Member States are facing in balancing out national priorities (protection of national sovereignty like fiscal policies, defense and immigration) and the deepening of the integration process. One of the recent tensions between the Member States and the EU has been about the Schengen Agreement. If conservative parties want to reintroduce border control, either to stop migrants or terrorists, the Commission refuses to touch at the border-free agreement calling it one of the greatest European accomplishment.

The migration crisis is highlighting another paradox in the European integration process between European and national interests. The tensions between the Member States and Brussels cannot continue any longer. Letting migrants die and be mistreated on European ground is an unacceptable reality.

(Copyright 2015 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).

It is Politics, Stupid!

CREDIT: ANADOLU AGENCY
CREDIT: ANADOLU AGENCY

“I really cannot remember, in all my time in European politics, whether I have come across a situation like this. This is really all about the European Union. If the EU is going to have any credible force, it is going to have to demonstrate it is capable of solving its own problems.” – President Martin Schulz on July 12th, 2015 during the Euro Summit Meeting

Forget about economics, finance, banking regulations, social welfare policies, debt forgiveness; the future of Greece solely depends on politics. “The answer [of endless negotiations on solving the Greek crisis these last five years] cannot be found in economics,” writes Yanis Varoufakis, the former Greek finance minister, “because it resides deep in Europe’s labyrinthine politics.” Greece’s destiny is a simple political question based on several concept: trust and confidence.

The Deal

After a week long of back and forth between Greece and the European capitals, Brussels is once again the siege of a Greek marathon. A meeting of the Eurogroup finance ministers started on Saturday, July 11th and ended the next day around 3pm. Ensuing it a general EU summit, with the 28 leaders, was supposed to take place, but was instead cancelled and transformed into a crisis summit of the 19 EU leaders of the Eurozone. The future of Greece as a member of the Eurozone was clearly on the line with a very reticent German team (Chancellor Merkel and her Finance Minister Wolfgang Schäuble proposing an eventual ‘temporary Grexit’).

As reported by the Financial Times, the finance minister negotiations, which were fruitless and tense, let the way to the EU leaders, whom could not do better considering Germany’s position. Until François Hollande, President of France, whom had been extremely active in advising, helping and defending Greece in the last mile, called for a meeting in Tusk’s office. Preisdent Tusk was reported saying “Sorry, but there is no way you are leaving this room” until a deal is reached.

Credit: Aris Messinis/Agence France-Presse — Getty Images
Credit: Aris Messinis/Agence France-Presse — Getty Images

Interestingly enough, Tsipras’ proposal prior the July 11th meeting included: 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 $59.6bn until 2018. Tsipras’ proposal was highly similar to the one offered by the international creditors. Even Jean-Claude Juncker during the meeting recognized the proposal brought by Tsipras as almost identical to the one put on the table by the creditors weeks earlier. And the President of European Parliament, Martin Schulz, called for avoiding a Grexit and find a solution.

Based on the deal reached on July 13th, 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. Clearly the terms of the bailout are in direct contradiction with Syriza’s policies, beliefs, and promises, as well as sidelining the results of the referendum. These contradictions could push even further the political crisis in Greece and lead to yet another election during the summer.

Chancellor Merkel, the Finish government and others are not convinced about the proposal and especially Greece’s commitment. The Greek drama is taking more than a simple economic/financial turn, it is purely political. It appears that some EU Member States, like Germany, Finland, Slovakia and others, are more inclined to go after Greece and its leftwing government led by Alexis Tsipras, than finding a real deal that would help in the long term the country.

One core reason is trust, or at least ‘lack of trust.’ Some experts have argued that Tsipras was now on Merkel’s black list after his political coup, the referendum. Merkel and others EU leaders do not trust any longer Tsipras and his government. Or even has argued by Yanis Varoufakis, “based on months of negotiation, my conviction is that the German finance minister wants Greece to be pushed out of the single currency to put the fear of God into the French and have them accept his model of a disciplinarian eurozone.”

Death of the European Project?

The Greek file should be considered as an overall failure for the European ethos. Many economists, like Joseph Stiglitz, have been very critical of the negotiation process and the agreed deal. One of the most virulent denunciation of the deal was Paul Krugman, writing that “it’s [the deal] a grotesque betrayal of everything the European project was supposed to stand for.” Even the International Monetary Fund, a global advocate for austerity measures and straightjacket policies, has been critical of the dealbroken_euro_fit calling instead for a huge debt relief for Greece.

Last but not least, Nicolas Gros-Verheyde of Bruxelles2 wonders about a core question: “Is Europe becoming the sum of its egos?” The Greek file embodies more than solving an economic problem, it has become a vicious fight between powerful EU Member States. These egos are affecting their global visions and understandings of the core principles and values of the European endeavor. But right now, the EU is failing at this important crossroad. The EU cannot find a real solution on any major crisis from counterterrorism in Mali, to migration crisis in the Mediterranean, to Ukraine/Crimea, to the domestic rise of nationalism, and naturally Greece. Are politics killing the EU? It certainly looks like it.

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