The transatlantic forces at play are under stress. The domestic forces in the United States (US), the United Kingdom (UK) and most part of Europe need to be reckoned with. The two players of the special relationship are embroiled in domestic turmoil between the Brexit negotiations and major rebuttal of long-standing policies in the US, which could have considerable impacts on the structure of Euro-Atlantic community.
The situation in France seems to be relatively stable since the election of President Macron and his victory in the ensuing legislative elections mid-June. If President Macron has demonstrated being a savvy political tactician, far from the neophyte status he received, he now needs to revitalize the French economy, reform the labor laws, reinvigorate the European agenda and integration process all under the threat of terrorism. But Macron’s election was framed as a blockade against the growth of populist forces in the Euro-Atlantic community. A return of France on the European and global stage certainly plays in favor of transatlantic relations. Now, the next chapter will certainly be the German elections in September.
So far, this year has been critical for transatlantic relations. A series of issues, from climate change to trade and defense, excluding the current Brexit negotiations, allow the world to reflect on the current challenges and potential ensuing consequences of such radical shift by Washington.
First, climate change is a priority considering global reach and impacts of a degrading environment. The US and its European partners are some of the largest emitters of greenhouse gases requiring them to lead the way in addressing environmental challenges. The 2015 Paris deal, formally known as the COP-21, sets out a global action place by limiting global warming to below 2°C and is the first legally binding climate deal. The agreement came into force on 4 November 2016 with at least 55 countries ratifying it. But on 1 June 2016, President Trump announced that the US would withdrawal from the agreement. In his address in the Rose Garden, he claimed that ‘the Paris Climate Accord is simply the latest example of Washington entering into an agreement that disadvantages the United States to the exclusive benefit of other countries.” The global reaction and especially from European counterparts was negative and critical. The issue of climate change will be back on the table for upcoming G-20 meeting.
Second, tree-trade has become a dirty word. In the European context, free and regulated trade among the 28 member states has permitted an unprecedented growth first contributing to the growth the 28 national economies. The world led by the US since the end of World War two was very much regulated around the notion that free-trade among states advantaged the US and the world, even though it certainly creates winners and losers. Aside from economic arguments, trade is one element of a state’s foreign policy arsenal, especially for an economic power like the US. The unplugging of the Trans-Pacific Partnership (TPP) with 12 pacific nations, which never counted China, in the very early days of the Trump administration is playing in favor of Beijing. By this decision, the US is playing in the hands of China. In a recent op-ed, Thomas Friedman wrote that “Beijing is now quietly encouraging everyone in the neighborhood to join the Regional Comprehensive Economic Partnership, China’s free-trade competitor to TPP, which, unlike TPP, lacks environmental or labor standards; China’s Asian Infrastructure Investment Bank; and its One Belt, One Road development project.” With regards to Europe, the future of the Transatlantic Trade and Investment Partnership (TTIP) is uncertain.
The last aspect to be highlighted is the question of defense and security. Historically the pillar of this realm at the transatlantic level has been the North Atlantic Treaty Organization (NATO). Again, the narratives on the campaign trail were that NATO was an ‘obsolete’ organization costing money to American taxpayers to finance the security and defense of free-riding European nations. Such narrative has remained in the US since Trump’s election. President Trump’s address at the NATO Summit in May, which was supposed to confirm his support and clarify his views of the alliance, failed to address the concerns of his European counterparts. The questions of free-riding and underspending by Europeans is not new and have been a frustration for past administrations. For instance, Secretary Gates’ comments in 2011 were deeply critical of the lack of political and financial willingness by his European partners.
These issues are central considering a series of factors. First, historically, the members of the Euro-Atlantic community, have agreed on shared values, institutions and norms making the liberal world order. A rebuttal of the Paris deal, the TPP (free-trade overall) and the defense alliance sends a message to the world that American longstanding commitment to global agreements is not reliable any longer. Second, the short-termism and transactional view of the foreign affairs demonstrate a total lack of overall strategy. The current administration seems to hide this lacuna by hiding behind the word of isolationism, which is not the case. Third, the Europeans, especially the Mercron couple (Merkel-Macron) between Berlin and Paris, ought to continue engaging Washington and pushing ahead long-established agenda and common policies. The responses in the US by major states, cities, universities and the public at large, regarding the withdrawal by the Trump administration from the Paris deal, illustrate deep transatlantic commonalities that need to be protected and deepened regardless of the rhetorics.
(Copyright 2017 by Politipond. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed without permission).
Should 2015 be identified as the year of multilateralism? Despite the multitude of crises facing the West throughout 2015, the signature of three major multilateral agreements was not only meaningful, but will contribute to the shaping of world politics well beyond 2016.
2015, or the Year of Multilateralism
Could 2015 be seen as the year of multilateralism? Even if this question seems quite absurd considering the succession of negative news from terrorism, to economic slowdown, racism, populism, so on and so forth. But looking back, 2015 was to some extent the most promising year in recent years in getting regional and global leaders around the table and having them signed important documents. Three highly impactful agreements ought to be reviewed.
First, the Paris Agreement of December 12, 2015 ought to be number one on the list. Yes, climate change is a reality. Yes environmental destruction is the greatest threat facing humanity. If polls, like the recent one produced by the Pew, show that Euro-Atlantic citizens feel that terrorism is the greatest threat to their security, they are certainly looking at it from a narrow angle. If ISIS has demonstrated to be effective at slaughtering unarmed civilians drinking coffee and listening to music, it does not represent the existential threat that climate change presents.
The Paris Agreement (which will only come into force once signed by the Parties on April 22, 2016 and ratified by 55 Parties) is more a political victory than a great climate deal. The political victory comes as the developed and developing nations have finally been able to agree on a global agreement. For instance, the World Trade Organization (WTO) is unable to get its Doha Round anywhere and most of the global initiatives are going nowhere. But in Paris, world leaders were able to show unity for a cause. However, the document falls short as there are no enforcement mechanisms in place in order to penalize states that do not comply. The European Union wanted a binding treaty with serious teeth and got instead an Agreement pledging to limit GHG emissions in order to maintain global warming below the 1.5 degrees Celsius target and a 5-year review of national progress and target readjustments. More work needs to be done domestically in order to transform current models of production and ways of living, especially in the US, India, China and the EU, but it is a good starting point.
The second major success for multilateralism is the Nuclear deal with Iran. After almost a decade of negotiations initiated by the EU (remember the EU3+1?), the US under the leadership of its Secretary of State, John Kerry, was able to come to an agreement on the nuclear negotiations with Iran. If the US and European nations were quick on framing it as a political victory, such deal would not have been possible without China and Russia. Both nations were central in order to have Iran signed the deal. If the Europeans were on the side of the Americans, it was quite uncertain throughout the process to count the Russians and Chinese in. But Russia has appeared as an important partner. For instance, on December 29, Iran shipped more than 11 tonnes of low-enriched uranium to Russia. But the deal came through and is, as the Paris Agreement, imperfect. At least, it permits to relaunch diplomatic relations with Tehran and re-includes Iran as a member of the international community. Some of the sanctions will be lifted, permitting Iran to sale its crude oil starting next year, in exchange for a discontinuation of the nuclear program.
The third major agreement is the signature of the Trans-Pacific Partnership (TPP). Since the collapse of the financial markets in 2008, which have caused an economic decline of the US and its allies and seen the rise of China, the US has initiated two major trade agreements: one with its Pacific partners (Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States, and Vietnam), the TPP, and one with its European allies, the Transatlantic Trade and Investment Partnership (TTIP). If the negotiations with European partners on the TTIP are still ongoing (read here a book on the topic), a result for TPP was finally reached in October 2015. In a document released by the Office of US Trade Representative, it is argued that “The result is a high-standard, ambitious, comprehensive, and balanced agreement that will promote economic growth; support the creation and retention of jobs; enhance innovation, productivity and competitiveness; raise living standards; reduce poverty in our countries; and promote transparency, good governance, and enhanced labor and environmental protections.” Regardless of the supports for such trade agreement, the TPP will have undeniably major impacts on regional and global economic and political relations. The US is solidifying its position in Asia and diplomacy is playing a big role in promoting cooperation. However, one question clearly remains: should have China been included in such deal?
Notable European Leaders in 2015
A paragraph could have been written on each of the 28 European leaders. But this piece focuses only on three EU leaders.
François Hollande, President of France, could very well be at the top of European leadership by the way he has maintained his position at the helm of France under such degree of threats and instabilities. Economically, the French economy is not picking up. The French GDP growth is of 0.3% in the last quarter of 2015 with an unemployment rate of 10.6% illustrating a situation of stagnation and difficulties to draft and implement meaningful structural reforms. In addition, his approval rating in 2014 and early 2015 was around 13%, the lowest for all Presidents of the Fifth Republic. In the middle of these domestic turmoils and failed reforms, Paris was struck twice by terrorist attacks, once in January targeting Charlie Hebdo, and nine months later against civilians in a hipster arrondissement of the capital. Despite all these crises, François Hollande has been able to see an increase of his approval rating, avoid the take-over of regions by the Front National at the regional elections, and host one of the most welcomed global summits in Paris. 2015 was quite a year for François Hollande, whom has demonstrated serious skills of leadership against adversity. However, this is coming at a cost as he has taken a securitarian approach and is now passing laws, like the removal of citizenship, that are in complete opposition with the philosophical roots of his party (and arguably his own).
Angela Merkel, or the Emotional Leader of Europe. If François Hollande is shifting towards the right in order to make the homeland more secure undermining French
republican values, Angela Merkel has managed to maintain Germany in a sound economic direction (even though German economy is showing some signs of weakness), while becoming the emotional leader of Europe. Germany’s friendly policy of welcoming refugees was in some degree one of the most positive policies of 2015 in Europe. If EU Member States were calling for the construction of walls, use of army and other aberrations (Denmark planning to confiscate refugees’ jewelry) in order to stop the flow of refugees, Germany instead welcomed them. Angela Merkel’s decision to go against her political allies and political foundation illustrates one of the most human moves in Europe (read a recent piece here published in the New York Times). Chancellor Merkel may very well paying the cost of her actions if Germany is the target of a terrorist attack later on and struggle in integrating all these refugees.
David Cameron – The British Prime Minister was reelected in late Spring 2016 on an ultra-nationalist and anti-european platform. Since his reelection, he has now identified himself as the British leader fighting for Britain’s national interests and integrity against the European Union. The publication of his demands to Brussels initiating negotiations in light of a future referendum about the membership of the UK solely responded to a national agenda without any clear vision for Britain’s future. Cameron is another European head of government with no long-term vision for his country and the Union. He embodies the shift of the past rights moving to the extreme without a clear political philosophy. Cameron’s polices have proven to be more based on ideology than facts.
Voices from Brussels?
What about HR Mogherini, President Tusk, President Schulz, and President Juncker? The heads of the largest EU institutions – EEAS, Commission, Parliament, and European Council – have not been that vocal at the exception of President Juncker at the ‘beginning’ of the migration crisis. The European leadership was pretty quiet throughout the year (at the exception of Commissionner Vestager going after the largest global corporations one after the other). Eventually 2016 could be the year for Federica Mogherini, whom is scheduled to release the new European Security Strategy in mid-Spring (read here an analysis on the current strategic thinking). 2016 could be as well the year for Donald Tusk, President of the European Council, as Warsaw will be hosting the 2016 NATO Summit. Such meeting in Poland will be important for two reasons: first, promote European principles and values in a country moving away from Europe’s ideals; second, it should address the ongoing regional crises from Ukraine, to Syria, to Iraq, Afghanistan and think seriously on how to engage with President Putin.
(Copyright 2016 by Politipond. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed without permission).
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 most 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
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).
In his first visit to Washington in his capacity as President of the European Council, Donald Tusk met with President Obama and Vice-President Biden today, March 9th, 2015. Over his two-day visit to the American capital, Donald Tusk seeks to solidify the EU’s relationship with the US. In addition, President Tusk will visit the Holocaust museum tomorrow, March 10th, in order to send a message of reconciliation to Europe’s Jewish community after the recent rise of anti-Jewish sentiments.
The agenda discussed between the two transatlantic leaders covered the following issues: Russia and the crisis in Ukraine; the situation around the Mediterranean with Syria, Libya and the consolidation of the Islamic State (IS); and naturally the negotiations over the Transatlantic Trade and Investment Partnership (TTIP). This comprehensive agenda underscores an interesting paradigm: each crisis is regional for the EU with serious international repercussions.
On the case of Ukraine and the role of Russia, the Europeans and Americans share the visions of the problem as it is a direct threat to the old concept of national sovereignty and territorial integrity. However, the Europeans, as expressed by President Tusk prior meeting with President Obama, are not willing to deepen the sanctions against Russia. There is a lack of unity among the EU-28 for domestic political reasons – like in Italy and Greece – and strong lobby groups in France, Britain and Germany – weapons, energy and finance – fearing a deepening in the tensions between the EU and Russia. From a personal standpoint, President Tusk, a former Prime Minister of Poland, has much more hawkish view of the problem and tends to emphasize the role of NATO.
The Mediterranean region is becoming one of the hottest part of the world. Geopolitics are moving fast and looking dire from Europe. The war in Syria seems unattainable, and the consolidation of IS in Syria, Iraq and now Libya is of great concerns for the EU. With a number of failed-states causing a regional vacuum, IS has found its territory to implement its strategy and vision. IS is attracting young Europeans, leading Europeans to conduct terrorist attacks against other Europeans, as well as widening its territorial control in the Middle East. President Tusk told reporters on March 9th, that “We [Europeans] must help because we cannot have a failed state run by warlords and anarchy — sitting in anarchy just 100 miles off the southern coast of Europe.” The power vacuum left after the fall of Gaddafi in 2011 had not been filled until the arrival of IS. Now IS is at the doorstep of Europe.
In the case of the TTIP, the negotiations initiated in 2013, are moving into their their year. It was supposed to be a mega-free trade deal, quickly signed, allowing further harmonization and lowering tariffs, allowing to bail-out the European economies, and ultimately boosting up the transatlantic economy. The TTIP is a way for the US and the EU to compete with the rise of new powers like China, India and Brazil. But instead a quick agreement, the negotiations have become more complex and Europeans have increased a certain numbers of concerns about the consequences of such FTA on their lives. Several issues are of concerns for Europeans: first, the lack of transparency in the negotiation process; second, lowering standards on health and food regulations (on Genetically Modified Food or even chlorine washed chicken); third, investor-state dispute settlement mechanisms (ISDS); and last, a certain opposition to globalization and American capitalism. If Americans and Europeans want to have the TTIP agreed, it will need to take place in 2015 otherwise it could look like the endless WTO’s Doha Round.
The transatlantic relationship is one of the world’ strongest and this high-level visit by President Tusk demonstrates that the EU and the US see eye-to-eye on foreign and economic policies. The degree of interdependence and interconnection between the two sides of the pond is such that the US cannot ignore what is happening at the doorsteps of Europe, and the Europeans have to realize the importance of the alliance with the US in order to assure its security.
(Copyright 2015 by Politipond. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed without permission).
2014 has certainly been a complex and eventful year for the world; and 2015 already started at full throttle with the recent terrorist attacks in France. The relentless year was marked by a succession of events affecting directly or indirectly the Euro-Atlantic community at every level of analysis imaginable: individual, domestic, national, regional and naturally international. This year Politipond has identified six axiomatic issues occurring in 2014 with likely future repercussions.
The election of the European Parliament – the European earthquake
Were the European Parliament elections in May 2014 a wake-up call for Europe? Or the beginning of a new direction for the Union? The elections underscored a trend in most EU Member States, a shift towards the extremes (right and left). Some EU Member States have seen an increasing attraction to extreme-left parties. Greece, which has been at the heart of the future of the Eurozone since 2009, is still experiencing considerable traumas caused by the austerity measures implemented as required by the terms of the bailout. Today, Greece is still facing political problems, which has been a blessing for Syriza, a far-left populist party led by Alexis Tsipras. In other EU Member States, the shift has been towards the extreme-right wing political parties. This is the case in several large EU Member States such as France (with the Front National led by Marine Le Pen), the United Kingdom (with UK Independence Party with Nigel Farage), the Netherlands (Party of Freedom with Geert Wilders), Austria (Freedom Party of Austria and Alliance for the Future of Austria withHeinz-Christian Strache and Josef Bucher), among others.
Among these parties, the Front National, UKIP and the Freedom Party have increased their visibility on the European stage and their influence on shaping national debates. In the case of the Front National, the party received the most votes in France for the 2014 EP elections with 25% of the votes representing an increase by 18.9% from the 2009 EP elections (read analysis on France here). Marine Le Pen even called her party the first one of France. The graph below illustrates the votes received by extreme-right wing parties in the 2014 EP elections.
The 2014 EP elections were certainly a political earthquake in Europe as large EU Member States fell to extreme parties. However, institutionally, the influence of right-wing parties at the EP remains minor as they only have 52 seats out of the 751. At the end of the day, the EP remains in the hands of the EPP (Social Democrats) and the S&D (Socialists). But the increase of votes received by extreme-right parties underlined several aspects: a high discontentment with the EU; a misunderstanding of the EU; nationalist feelings; and the permanent anger towards immigrants. During Pope Francis’ speech before the EP in December, he described the EU as an “elderly and haggard” Europe. Europe needs to reconnect with its citizens, and it won’t be with the help of its radical parties.
A new EU leadership
2014 was the year of the renouveau in terms of changing personnel at leadership positions in the EU. This was the case for the High Representative (HR/VP), known as the EU foreign minister, the President of the Commission, and the President of the European Council. Ensuing the European elections for the European Parliament (EP) in May, the President of the EP remained the same, Martin Schulz. Considering the HRVP and the
President of the Commission, the latter went to former Prime Minister of Luxembourg, Jean-Claude Juncker (read here an article on the Juncker Commission) and to the former Italian Foreign Minister, Federiga Mogherini. These two individuals have been welcomed as they are expected to bring a new wind to Europe and their respective institutions. The José Manuel Barroso’s years have affected the dynamism of the Commission, especially in his last quinquennat; while, for his counterpart, Catherine Ashton, she never seemed at her ease leading the European foreign policy machine and the EEAS. However, Herman Van Rompuy, President of the European Council left the position to Polish Prime Minister, Donald Tusk, in excellent standing. Herman Van Rompuy, undeniably discrete but efficient, was axiomatic in holding European unity especially during the period of tense negotiations to save the PIIGS and the Eurozone (read here one of the best peer-reviewed articles on Ashton and Van Rompuy).
Soon after his appointment Jean-Claude Juncker pledged before the EP that he would seek to reboost and/or reboot the European economic engine. Later this fall, he announced his strategy, known as the Juncker Plan, a €315bn investment fund program intended to kick-start the European economy/ies. The Commission argues that the Juncker plan could “create up to 1.3 million jobs with investment in broadband, energy networks and transport infrastructure, as well as education and research.” This public-private investment fund program (the Commission and the European Investment Bank (EIB) would create a €21bn reserve fund allowing the EIB to provide loans of a total of €63bn, while the bulk of the money, €252bn, would come from private investors) would allow to fund broad construction and renovation programs across Europe. Some experts argue that the Juncker plan is too little, in terms of the size of the investments, while EU Member States are reluctant to invest their shares in such program. In any case, it won’t start before mid-2015.
Sluggish negotiations around the TTIP
The Transatlantic Trade and Investment Partnership (TTIP), initiated in July 2013, has become a sluggish and complex series of negotiations between the EU and the US. At first this massive bilateral trade agreement was expected to be quickly completed and agreed. The TTIP consists in removing trade barriers in a wide range of economic sectors as well as harmonizing some rules, technical regulation, standards, and approval procedures. According to the European Commission, the TTIP is projected to boost the EU’s economy by €120 billion; the US economy by €90 billion; and the rest of the world by €100 billion. “The TTIP’s goal” argue Javier Solana and Carl Bildt, “is to unleash the power of the transatlantic economy, which remains by far the world’s largest and wealthiest market, accounting for three-quarters of global financial activity and more than half of world trade.”
Almost two years in, the negotiations on the TTIP are facing serious criticisms inside Europe. The TTIP has provided the arguments to anti-globalization movements, fear of decline of democratic foundations, declining national sovereignty, as well as destruction of national/regional identities and cultures. Nevertheless, as demonstrated below, a majority of European citizens are in favor of the TTIP at the exception of Austria.
The TTIP is seen as a way to relaunch the transatlantic economy, but mainly European economies stagnating since the financial crisis. The TTIP is as well a response to the other trade agreements, like the Trans-Pacific Partnership (TPP), and the rise of Asian economies. Economists and experts argue that a failure to conclude the TTIP in 2015 could lead to the collapse of the negotiations and leave the European economy in difficult position in the years/decade to come.
A Climate Deal for the Earth?
President Obama announced on November 11 the historical climate deal with his Chinese counterpart to control the level of pollution of the two nations. The US pledged to reduce its greenhouse gas emissions by at least 26% below the 2005 levels by 2025, while China committed to increase its share of power produced by non-carbon sources, nuclear and solar, to 20%. Nevertheless, China recognized that its greenhouse gas emissions will continue peaking until at least 2030.
This climate pact between the two largest polluting nations was agreed weeks prior the Lima summit laying down groundwork for the comprehensive UN greenhouse gas reduction pact expected to be agreed at the 2015 Paris summit, known as the United Nations Climate Change Conference(UNFCC COP21). The 2014 US-Chinese climate pact is an important stepping-stone prior the 2015 climate summit in Paris. The 2015 Paris summit may be a turning point for the EU and the EU-28 to lead on this question after the 2009 Copenhagen fiasco.
A Terrorist Triad: ISIL, Boko Harm, and Al-Shabaab
Terrorism has always existed and will continue to live on. However, the type of terrorism faced by the Euro-Atlantic community since the mid-1990s has been principally based on radical islamic terrorism. The principal group on top of Western lists was Al-Qaeda, which has lost some of its grandeur since the assassination of its leader Ben Laden. The year 2014 was important as three groups have shaped Western foreign policies: the new comer, Islamic State in Iraq and Levant (ISIL, also now referred as the Islamic State, IS), and two more established groups, Boko Haram and Al-Shabaab. Each group does fall under a similar category of being inspired by Islam, but have different agendas and different radiance.
In the case of Boko Haram and Al-Shabaab, both groups are located on the African continents. Boko Haram, an Islamic sect, recognized by the US in 2013 as a foreign terrorist organization, seeks to create an Islamic state in Nigeria. Boko Haram became a familiar house-name in 2014 with the kidnapping of hundreds of school girls creating an outcry in the US. In the case of Al-Shabaad, a somali islamic terrorist group, is an Al-Qaeda militant group fighting for the creation of an Islamic state in Somalia. The group has started to increase its attacks outside of Somalia’s borders and especially against Uganda and Kenya (remember the terrorist attack on a Nairobi Mall in 2013) as both states are actively involved in fighting Al-Shabaad.
The last terrorist group, ISIL, is more recent. It has risen from the rubbles of the Syrian civil war, ensuing the Arab Spring. Prior its existence as ISIL, it was identified as Al-Qaeda in Iraq (AQI) and emerged during the US campaign against Saddam Hussein. The group became ISIL in 2012 when the ambition of the group became regional and some fighters moved their fight to Syria. Even though Western governments were aware of its existence, ISIL became a top priority for Western citizens – regardless of its real threat to Western homelands – in June 2014 after several victories in overtaking large Iraqi cities like Mosul and Fallujah. ISIL has progressively begun a territorial warfare in order to create its own state, a caliphate, over parts of Syria and Iraq.
The core distinction between ISIL and the two other groups lays in their soft power. ISIL has been extremely attractive to many Europeans and Americans citizens, while Boko Haram and Al-Shabaab have remained more local/regional in their recruiting efforts. A large number of Western citizens, mainly from France, Belgium and the UK, have decided to join the fight aside ISIL fighters in Syria. These fighters have been perceived as a real threat to homeland security (as proven by the January 7th attacks in France against Charlie Hebdo).
Ultimately, these three terrorist organizations will keep their importance on influencing Western foreign and defense policies as the US and some of its European allies are already involved in military actions in Iraq and Syria. In the case of Europe, France is actively fighting terrorist networks in the region of the Sahel (Operation Barkhane, read here a previous analysis) and other African nations like in Mali (Operation Serval).
On the European chessboard, 2014 belongs to Russia. Russia brought back the European continent to traditional warfare with territorial invasions and other types of military provocations unseen since the Cold War (including the destruction of an airliner above Ukraine). 2014 started with the ‘invasion‘ of Crimea by the Russian army leading to its annexation to Russia validated by a referendum. By mid-Spring 2014, Ukraine had lost a part of its territory without any actions by the members of the Euro-Atlantic community. The West started to act against Russia during the summer once reports revealed the presence of ‘green men’ in Eastern Ukraine and movement of military equipments across the border.
During the summer, EU Member States agreed on a series of sanctions against Russian individuals and some financial institutions. At first, many experts thought that the sanctions were too little too late, but in late 2014 the Russian economy was showing serious signs of weakness. However, one needs to underscore that the slowdown of the Russian economy is related to the collapse of the oil prices and a decrease in consumer spendings. In almost one year, the rouble has lost 30% of its value and the Russian economy is on the verge of recession. As reported by the Economist, “Banks have been cut off from Western capital markets, and the price of oil—Russia’s most important export commodity—has fallen hard.”
Despite the economic situation of Russia, at least until now, Vladimir Putin has maintained throughout 2014 a very strong domestic support and sky-high approval rating. Putin’s decision to invade and annex Crimea was highly popular in Russia (as illustrated below). Additionally, the anti-Western narratives advanced by Putin have been well received domestically. However, with the decline of the Russian economy the shift from Russian foreign prestige to more concrete concerns, like jobs, economic stability, and social conditions, may re-become of importance in the national debate.
2015, Year of the Renouveau?
The economists seem very optimistic considering the forecast of the global economy. According to Les Echos (of December 30, 2014) 2014 was indeed an excellent year for world markets with record results for Shanghai (+49.7% since December 31, 2013), New York (+13.1% for S&P 500 since December 31, 2013), a modest result for Stoxx Europe (+4.9%), a stagnating French CAC40 (+0.5%), and a declining British FTSE (-1.7%). But with rising world markets, declining oil prices, increasing US gas production, and an increasing American growth, 2015 looks bright for the US, but remain mitigated for European economies.
The Grexit may be back on the table based on the elections of January 25th. With Syriza at the head of the polls, his leader has been calling for a renegotiation of Greece’s loan terms implemented by the Troika (IMF, Commission, and ECB). Neither Berlin nor Brussels want to go down this road. According to Der Spiegel, Berlin is willing to let Athens leave the European Monetary Union (EMU) if it decides to abandon the austerity measures. Two aspects can be underscored: on the one hand, some argues that Berlin is not worried anymore about a contagion to other European economies in case of a Grexit. While on the other, some others are claiming that it is part of a ‘tactical game’ played by Berlin in order to lower the chances of a Syriza victory at the end of the month. In any case, the question of the Euro and EU membership will remain throughout 2015.
Will the Brexit occur? In 2015, British subjects will be voting for the next Prime Minister. The elections are going to be closely monitored considering the possibilities of an eventual referendum on the future of the United Kingdom’s EU membership. The current PM, David Cameron, has been promising a referendum for 2017 if re-elected and has been a counter-productive force in Brussels. Additionally, Nigel Farage, leader of the UK Independence Party (UKIP), getting strong results at the 2014 EP elections seem a strong frontrunner for the post of PM. He has, as well, promised a referendum on the EU membership of the UK. The financial hub of Europe, the City, has been concerned about the financial and economic repercussions of a Brexit. The City’s argument is that by being outside a powerful club, the EU, the UK won’t be able to influence its decision-making and direction. In a recent poll, 56% of British citizens are favorable in staying within the Union.
Last but not least, 2015 may be the year of another large debate in Europe about terrorism versus immigration, freedom versus security and the solidification of the rise of anti-immigrants parties. The terrorist attacks of January 7th, 2015 in Paris will change the national and European debate about counterterrorism, social-economic policies, domestic political narratives, and naturally foreign policies towards the Arab world.
(Copyright 2015 by Politipond. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed without permission).
The European Parliament (EP) has finally approved the new Commission, known as the Juncker Commission. After his election with a large majority by the European Parliament on July 15th, 2014, Jean-Claude Juncker, former Prime Minister of Luxembourg and long-time European advocate, has been working on shaping its tenure and designing his Commission for the 2015-2019 period. On October 29th, Jose-Manuel Barroso, the current President of the Commission, will participate at his last meeting at the helm of the Commission. On Thursday, Barroso will be meeting with Juncker and the newly appointed President of the European Council, Donald Tusk – whom would take his functions on December 1st -, for a last transition meeting before the beginning of the Juncker era.
On September 10th, 2014, President-elect Juncker presented his team and the distribution of the portfolios accordingly. Ensuing his presentation, each Commissioner-to-be was facing individual hearing before the relevant European Parliament committees. From September 29th to October 20th, the EP was interviewing each candidate. Out of the 27 designated, only one was rejected, Alenka Bratušek, the Slovenian candidate responsible for the Energy Union. Other candidates like France’s Moscovici, UK’s Hill, faced tough confirmation hearings. Jonathan Hill, candidate for the financial DG, was even called back for a second hearing. It is Frans Timmermans, a former foreign minister of the Netherlands, whom becomes the first vice president and will serve as Mr. Juncker’s deputy.
Four Questions for the Juncker Commission
Even though Barroso is still at the helm of the Commission (read here his defense of his tenure), one should take the time to raise a series of questions prior the shift of power at the Berlaymont.
2. Making Europe closer to Europeans – reconciling Europe with the Europeans. How successful will Juncker and its apostles be at it? This issue is more than simply explaining to Europeans citizens what the EU does and doesn’t. It is in fact an important dimension considering the rise of the extremes – right and left combined – in most EU Member States. Juncker needs to create a new narrative explaining the importance of the EU – without sounding like a history professor – and demonstrating its relevance in order to assure the survival of European uniquenesses under the forces of globalization. The recent outcomes of the European Parliaments’ elections in May 2014 clearly demonstrated the gap between Brussels and Europeans. The blame ought to be distributed across the board: Member States have played the Brussels’ bashing game in order to cover up their incompetencies for too long; Brussels has sounded to distant and cold by adopting the approach of one policy fits all; European citizens have not done their jobs of citizens for too long – and even enjoyed the ride when the economic situation was stable and rosy – and have blamed the Euro and Europe for all their traumas – including high level of unemployment, which the Commission has no power over it -.
3. Member States – their support to the Juncker Commission will be crucial for a new energy in European politics. Under Barroso, the Commission has lost some of its relevance and power at the benefit of the Council and European Council. Juncker ought to make the Commission once again relevant and guardian of the Treaties. According to the Treaties, “the Commission has the sole right to initiate European legislation and the power to enforce treaties by suing member governments at the Court of Justice of the European Union.” But Juncker cannot do miracles with the current governments like the ones in the UK and France blaming all their turmoils on Europe. The most recent outcry by David Cameron about the extra €2.1 billion bill is a ‘joke.’ According to the EU budget commissioner, Jacek Dominik, British officials knew for 10 days the adjustment of their share to the EU budget based on changes in their gross national income (watch the video here). Cameron’s anger is simply political to attract his electoral base and the more extremes branch of the UKIP. In France, the recent submission of the new French budget falls under the same category, minus the anger. Core EU Member States are playing the card of domestic political appeal at the cost of European soundness. France cannot be upset at the rules that it had previously agreed on and voted in favor. Barroso undermined to some extent the power of the Commission, will Juncker bring it back?
4. How does Juncker get the EU become more integrated on important policies like foreign affairs, energy/environmental policies and fiscal policies among others. On foreign affairs, that would be in the hands of the HR/VP Mogherini. But on energy and environmental policies, the Juncker Commission could once and for all initiate a clear agenda for a shift towards greener energies, while contributing to economic growth – which has been addressed during the recent European Council meeting in late October -. In any case, “there is a sense that Juncker will try to solve Europe’s ongoing problems pragmatically,” writes Alice Pulh, “instead of launching brand new polices with innovative ideas.”
Food for Thoughts
Yes this section may be too far fetched, but it is actually an important point of discussion. A Commission with the representation of the 28 Member States (MS) is not only too large, but also anti-supranational by nature. The fact that MS are still the ones selecting their candidates and bargaining for the DG of their choosing is contrary to what the Commission should be all about. The President of Commission should be the one selecting the candidates of his choice in order to compose its own Commission. Additionally, having the MS promoting a candidate to represent themselves at the Berlaymont goes against the idea of the Commission being ‘above’ the Member States in terms of influence and power, and truly European -for whatever it means-. The Commission is not about defending national interests, but European interests. This new commission has highlighted a series of problems in balancing national and european interests, as illustrated by the difficult hearings and negotiations over three nominated commissioners, France’s Pierre Moscovici (economic affairs), the UK’s Jonathan Hill (financial services) and Spain’s Miguel Arias Canete (climate and environment).
Then, the Juncker Commission is facing a serious challenge, relaunching the economic engine of the EU. Following the EP vote approving the Juncker Commission, Jean-Claude Juncker said that
[it was] “time to roll up our sleeves and get down to work: to kick-start economic recovery, create more and better jobs, address the plight of Europe’s youth for a better future, protect the most vulnerable in our society and cope with the rapidly deteriorating geopolitical situation.”
In order to re-launch the economic engine of the Union, two options are on the table. Juncker has inherited one option, the Transatlantic Trade & Investment Partnership (TTIP), and he has been advocating, option 2, for an EU-wide economic boost through investments. So one approach is from within, the other from outside. The TTIP was initiated under Barroso and has turned into difficult negotiations between the EU and the US and among the EU-28. The TTIP is supposed to create the largest economic bloc in the world in order to balance the rise of new powers like China, India and Brazil. The second option is the €300 billion investment package introduced back in July by Juncker. The package has been contentious as nobody knows where the money would come from and it seems very unlikely that the EU-28 would anytime soon pool the money into a common fund supervised and utilized by the Commission. Both aspects, the TTIP and the €300 billion investment package, shall be understood as ‘new deals’ in order to relaunch European economic engine. Juncker understands very well that a long-term sluggish economic environment could affect the survival of the European welfare states and ultimately the EU as whole.
(Copyright 2014 by Politipond. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed without permission).
Summer 2014 has been non-stop, and it is not even over yet. It started on a positive note with the success of European soccer teams in Brazil – and France even displayed a good team and produced creative soccer -. But the summer quickly turned sour for Western powers.
Since June a series of crises broke out. The conflict in Ukraine increased in intensity, while the West remained cautious on sanctioning Russia. At this point, most analysts and reporters thought that Putin had won the war. Putin had already stolen annexed Crimea and the pro-Russian militiamen were solidly backed by Moscow. It was until the pro-Russian militiamen brought down a commercial airplane flying over Ukraine and killing over 290 civilians, most of them being Dutch. Such event was a turning point in the conflict
in Ukraine. EU Member States finally agreed on tougher sanctions against Russia. Weeks later, Moscow responded by banning the imports of EU foods. Since then, Moscow has tried to maintained its support to pro-Russian militiamen with the progression of a ‘civilian convoy’ for humanitarian purposes sent by Moscow. With the progression of the tensions in Ukraine, Germany has progressively shifted its pro-Russian foreign policy and has emerged as a leader against Russia. For instance, as a reaction to the Russian convoy, Berlin has pledged more than $690 million for reconstruction and aid to Ukraine. Moscow may have been able to keep the fight alive in Eastern Ukraine, but seems to have lost an ally in the West.
The second main crisis has been the intensification of the ebola virus disease (EVD) affecting Western African nations. In recent days, reports have emerged underscoring that the outbreak has been underestimated. Even tough, the EVD does not directly threaten the citizens of the Euro-Atlantic community, it has become a serious issue for the West. Starting in Guinea, and then in Liberia and Sierra Leone, it has now spread to Nigeria. The main concern has always been Nigeria, one of the most populous and developed countries in Africa. The recent cases in Nigeria have been a cause of concern for Western powers considering the deep connections between Nigeria and the West. The EVD becomes of global nature due to the complexity of the globalized world we live in. Globalization has made the EVD an eventual threat to most world nations.
The third main crisis has been the solidification of the Islamic State in Iraq and Syria (ISIS) in Iraq. The rise of ISIS, a radical Sunni Muslim terrorist group, has been progressive and it has benefitted from the vicious war taking place in Syria since 2011 (read here a previous analysis on the issue). The civil war in Syria was a piece of the Arab Spring puzzle with popular opposition to the regime of Bashard al-Assad. The members of the Euro-Atlantic community, at the
exception of the French, were reluctant to either arm anti-government groups by fear of arming extremist groups and/or launch airstrikes against Assad’s forces. ISIS has grown and strengthened itself in fighting government forces. Early summer 2014, in June, ISIS started its invasion of Iraq. It has received some assistance by Iraqi sunni, that have felt undermined by the former shiite government of al-Maliki. Since, ISIS has used violent and vicious tactics in order to strengthen its control over its controlled territories. In the past week, the US has re-launch military interventions in Iraq through airstrike bombings, arming Kurdish and Iraqi forces. However, US Secretary of Defense, Chuck Hagel, underscored that “the defeat of ISIL is not only going to come at the hands of airstrikes. It’s bigger than just a military operation.” He added that in order to defeat ISIS, the US will have to go to Syria. Such vision is increasingly been shared in Washington. For instance, Steven Simon, a former White House adviser to Mr. Obama on the Middle East, argued that “common sense suggests you need to hit them in Syria.”
Last but not least, the war in the Middle East between Israel and Hamas, launched by Israel on July 8th, has already caused high level of destruction in Gaza and heavy civilian casualties with over 2,100 deaths. The war has underscored the diverging strategic positions of the members of the Euro-Atlantic community. In large EU Member States, populations and governments have expressed their concerns regarding Israel’s actions. The US, historically a close ally of Israel, has not budged its position. In recent days, talks have increased in order to agree on a United Nations Security Council Resolutions including the following conditions: “prevent Hamas and other militant groups from rearming, give the Palestinian Authority control, relax the Israeli embargo, reopen all border crossings and expedite reconstruction.” In a recent op-ed in the New York Times, titled Club Med for Terrorists, Israel’s Ambassador to the UN underscores that the problems in the Middle East are all financed by Qatar. He wrote “Given Qatar’s considerable affluence and influence, this is an uncomfortable prospect for many Western nations, yet they must recognize that Qatar is not a part of the solution but a significant part of the problem.” The war between Hamas and Israel is going much further than Gaza.
The end of Western domination?
Let’s be clear, none of the crises analyzed above have suddenly appeared; they have all been slowing progressing and evolving. It is just that Western powers have become some type of risk aversion and have implemented a certain status-quo in avoiding to directly confront complex crises and issues. The US certainly leads the way in its ‘wait and see’ strategy. So, what can be said about the handling of these crises by Western powers? It surely looks like the early 1990s all over again. Even though it is debatable to justify the real control of Western powers on all foreign events, summer 2014 has underscored the inabilities of western powers to shaping and containing them. The US and its European partners – Britain, France, Germany, Poland, Italy among others – have simply been trying to catch up.
In the case of the US, to paraphrase Hillary Clinton, the Obama’s foreign policy approach
of ‘don’t do stupid stuff’ may have been a root cause of the limited US influence in shaping events. She has been much more vocal in advocating for a more interventionist foreign policy. She argued during her recent interview with Goldberg of the Atlantic, that “Great nations need organizing principles, and ‘Don’t do stupid stuff’ is not an organizing principle.”
Summer 2014 could be identified along two lines: either, it is an anomaly, meaning it just happens that crises followed one another; or, is it the continuation of the sliding process of Western grip over the international system? I will tend to go with option 2, Western decline.
In order to look at the question of Western decline, one should look at two dimensions: external and internal dynamics. Externally, the succession of crises and western inabilities to shape the outcomes and/or prevent them are obvious and were analyzed above. Internally, both the US and European powers/and EU have been facing deep political, societal and economical challenges. This accumulation of domestic crises and tensions contribute to affecting the global aura of the West. Even among the Euro-Atlantic community, its members are unable to actually find an agreement on the Transatlantic Trade and Investment Partnership (TTIP) (see here a comprehensive book on the topic). This agreement seen as a way to relaunch the transatlantic economy has become a tense political fight between the 29 + 1 actors (28 EU Member States, the US + the European Commission). The difficult negotiations are affecting the global credibility of the Euro-Atlantic community as its members cannot agree on the values, norms and identities supposedly shared and exported. As demonstrated below, the transatlantic soft power is clearly loosing its grip and credibility.
Domestically, the US appears very weak. Between a blocked government, a lame duck president, a weak economic recovery, and tense societal relationships among the different segments of the population, the US is facing serious challenges. The debates of inequalities, minority rights, healthcare, religion, immigration, education and economic changes are slowly affecting the identity of the US. The US, as most European countries, is on the brink of chaos at any moment. The violence in Ferguson, after the death of an African-American man shot by a white cop, have taken the nation by surprise. The emotions around the situation in Ferguson are powerful as such event is underlining a dark reality of inequalities and racial tensions to most Americans. Once again, Richard Haass was correct in claiming that foreign policy starts at home.
Across the pond, the European economic situation is worrisome and has now led to serious internal challenges within each Member State. Experts, like Michael Heise, even wonder if Europe is not entering into its ‘lost decade’ the same way Japan went through the 1990s. European economic growth remains anemic. Germany has maintained its status of the strong man of Europe, but its economy is starting to contract, while the French economy is stagnating (ant the government is unable to govern, read here) and the Italian is in recession. “GDP fell in Germany, the biggest,” according to the Economist, “and Italy, the third largest, by 0.2%; France, the second largest economy, stagnated.” The consequences of this continuous weak economic outlook in Europe, causing high unemployment levels, increasing inequalities and affecting the moral of Europeans, have fostered this ramping euro-skeptic sentiments. Additionally, the message of European unity is not even present in Brussels, as illustrated by the difficulties to select the next top EU leaders. In this context, it is difficult to imagine a strong Europe willing to shape and influence events. The EU has always lacked hard power, but domestic tensions within the EU have affected the credibility of its soft power.
(Copyright 2014 by Politipond. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed without permission).