Tag Archives: European Union

Merkel’s incredibly stupid New Year Grexit bluff

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It’s understandable why German chancellor Angela Merkel doesn’t want to cut any deals with Greece — no matter who wins the snap elections later this month.Greece Flag IconGermany Flag Icon

Making concessions, especially to a far-left, anti-austerity figure like potential prime minister Alexis Tspiras, could embolden every recession-weary country from Portugal to Romania to demand relief from Brussels and Berlin, and it could give substantive figures on the European left, including Italian prime minister Matteo Renzi, French president François Hollande and even German social democrats in Merkel’s own grand coalition, a platform to doubt the Berlin-dominated approach to fiscal policy throughout the eurozone.

According to Merkel (pictured above, right, with incumbent Greek prime minister Antonis Samaras) and much of the German electorate, the troika of the European Commission, the European Central Bank and the International Monetary Fund has already been too soft on Greece, lowering the interest on over €240 million in bailout funds and extending the repayment schedule.

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RELATED: What to expect from Greece’s January 25 snap elections

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Nevertheless, it’s incredible that Merkel and her aides take such a cavalier attitude to a potential Greek eurozone exit, which they apparently haven’t ruled out in the event that Tsipras’s leftist SYRIZA (the Coalition of the Radical Left — Συνασπισμός Ριζοσπαστικής Αριστεράς) wins national elections in 18 days. Three years after ECB president Mario Draghi promised to do ‘whatever it takes’ to save the eurozone, Merkel now believes that Greece is expendable, that the eurozone is no longer subject to the domino theory that would make a ‘Grexit’ calamitous and that the eurozone is now governed by a chain theory that suggests a Greece-less eurozone will be rid of its weakest link.

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It may be smart domestic politics in Germany, where the anti-euro Alternative für Deutschland (Alternative for Germany) is gaining support on Merkel’s right flank in both state and federal politics, but it’s an incredibly tin-eared intrusion three weeks before Greeks vote. It certainly won’t help the beleaguered coalition government of center-right, pro-bailout prime minister Antonis Samaras, whose New Democracy (Νέα Δημοκρατία) narrowly trails SYRIZA in most polls. Greeks already realize that a vote for Tsipras (pictured above) brings with it greater uncertainty, so Samaras has some hope that the electorate will have doubts about handing power to SYRIZA. He certainly doesn’t need Merkel to make that point for him.  Continue reading Merkel’s incredibly stupid New Year Grexit bluff

What to expect from Greece’s January 25 snap elections

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With the failure of Greece’s parliament to elect a president after a third and final vote this morning, prime minister Antonis Samaras will dissolve the parliament and schedule early elections — most likely on January 25.Greece Flag Icon

It will be the first election since June 2012, when Samaras’s center-right New Democracy (Νέα Δημοκρατία) narrowly defeated the hard-left SYRIZA (the Coalition of the Radical Left — Συνασπισμός Ριζοσπαστικής Αριστεράς). According to just about every poll, SYRIZA holds a lead of between 3% and 7% against New Democracy.

Expect a tough Samaras-Tsipras fight for first place

Samaras is a wily and seasoned campaigner, and he will undoubtedly cast himself as the guardian of Greece’s long-term stability. On Monday morning, he was lashing out at ‘political terrorism,’ and warning that a SYRIZA victory would allow Greece’s sacrifices to go to waste. SYRIZA will face sustained criticism — some justified, some overblown — from just about every quarter in Europe that it and its leader, Alexis Tspiras, are dangerous ideologues whose policies could force Greece out of the eurozone in 2015. Already, publications like The Guardian are referring to Greece being ‘plunged into crisis.’ Expect the fear-mongering about the consequences of a SYRIZA victory to be on par with efforts by the British political establishment and business community in the fraught week leading up to the Scottish independence referendum. It’s by no means certain that SYRIZA’s narrow single-digit lead will survive that kind of onslaught.

The fight between SYRIZA and New Democracy is so important because the first-place finisher in the election will not only win the largest share of seats in the 300-member Hellenic Parliament (Βουλή των Ελλήνων), but also a 50-seat ‘bonus’ meant to provide the winning party with enough seats to form a working majority government. Over the next few days, it will be worth watching to see whether SYRIZA or New Democracy convince any other smaller parties to merge, because the marginal value of even a one-vote victory in Greek elections is so consequential.

Since 2012, Greek economic conditions are slightly improved. Greece’s GDP is set to grow by between 1.0% and 1.4% in 2014, following six consecutive years of contraction, and there’s every reason to believe it will continue to expand in 2015. The government even attempted a reasonably successful bond sale in April, and Greece’s staggering unemployment rate is now just 25.7%, down from its high of 28%.

Nevertheless, the dual cuts of budget austerity and economic depression have, understandably perhaps, left the Greek electorate weary of renewing a mandate for austerity, and the uncertainty over the country’s political future has pushed 10-year bond yields to an unsustainable 8.5%.

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Greece’s ‘bailout’ questions remain unsolved

Fueling that uncertainty is Greece’s planned exit from its bailout program in February 2015, just days after the election.

Continue reading What to expect from Greece’s January 25 snap elections

Greek parliament prepares for 3rd and final presidential vote

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In the second of three presidential votes, the Greek parliament failed to elect the government’s center-right choice for president, Stavros Dimas (pictured above), a former foreign minister and European Commission member, in voting on Tuesday.Greece Flag Icon

Though it was the second time that Greek prime minister Antonis Samaras, both failures were expected, given that Dimas needed 200 votes in the 300-member Hellenic Parliament (Βουλή των Ελλήνων) in order to win the presidency outright in either of the first two rounds. That threshold drops to just 180 votes in the third and final round that will take place next Monday, December 29. Samaras is waging an all-out campaign over the weekend to convince enough legislators to support Dimas and, by extension, his government.

Dimas won just 160 votes in the first round, but Samaras, who governs a coalition that includes his own center-right New Democracy (Νέα Δημοκρατία) and its traditional center-left rival, PASOK (Panhellenic Socialist Movement – Πανελλήνιο Σοσιαλιστικό Κίνημα), increased that total to 168 in the second vote after winning over a handful of independents.

If the Hellenic Parliament fails to elect a new president, Greece will hold snap elections next spring and New Democracy might lose, as polls currently suggest, to the hard-left SYRIZA (the Coalition of the Radical Left — Συνασπισμός Ριζοσπαστικής Αριστεράς). That could put Greece’s financial future in doubt as SYRIZA’s leader, Alexis Tsipras, pledges to reverse the austerity measures of the past six years and negotiate a bond haircut to lower the country’s debt burden, from the ‘troika’ of the European Commission, the European Central Bank and the International Monetary Fund that provided Greece two bailouts worth €110 billion and €130 billion, starting in June 2010. 

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RELATED: Markets shouldn’t be freaking out about Greek elections

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Samaras starts with the existing ND-PASOK governing coalition, which controls 155 votes, there’s a theoretical bank of 46 additional votes, including 24 independents, 12 legislators from  Panos Kammenos’s Independent Greeks (ANEL, Ανεξάρτητοι Έλληνες), an anti-austerity spinoff from New Democracy and 10 additional legislators from the Democratic Left (DIMAR, Δημοκρατική Αριστερά), a new social democratic party and SYRIZA spinoff that joined Samaras’s coalition between the June 2012 elections and June 2013 (when it eventually withdrew to the opposition in the face of further austerity measures). Though DIMAR leader Fotis Kouvelis has indicated he will support SYRIZA’s call for early elections and will support a SYRIZA-led government, not all of the party’s members agree. Negotiations with the Independent Greeks have been equally tenuous, and one of its members accused the government of attempting to bribe him in exchange for his support in the presidential vote.

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Snap elections would coincide with the end of Greece’s bailout program in February 2015. The the next Greek government already faces a €22 billion budget shortfall between 2015 and 2016. Among the solutions currently under discussion is a short-term credit line from the troika or the IMF, though the troika is already demanding additional wage cuts and other fiscal contraction as part of the deal. Another potential solution might be to extend the repayment period by 20 years, equivalent to writing off around €50 billion in debt. Continue reading Greek parliament prepares for 3rd and final presidential vote

Essebsi must now deliver on Tunisia’s economy

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Longtime secular political figure Beji Caid Essebsi won Tunisia’s presidency in Sunday’s landmark elections, representing in many ways the culmination of the country’s progress from the Arab Spring protests that ended with the ouster of Zine El Abidine Ben Ali in January 2011.tunisia flag

Despite the optimism that marked Ben Ali’s fall and the promulgation of a new constitution in January 2014, Essebsi (pictured above), a figure with ties to the old Ben Ali regime —  will face the same fundamental problem that both Ben Ali and the interim governments of the past four years faced in bringing about greater economic growth and creating new jobs for an underemployed youth population.

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RELATED: Tunisian election results: the (secular) empire strikes back

RELATED: How Tunisia became the success story of the Arab Spring

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By any stretch, Tunisia is clearly the success story of the Arab Spring  — though it faces its own set of struggles in the years ahead, it hasn’t fallen into Libya’s chaos, reverted to Egypt’s military-backed authoritarian rule or fallen into a Syria-style civil war. When Tunisia held its first parliamentary elections under its new constitution in October, and when the Essebsi’s secular Nidaa Tounes (حركة نداء تونس‎, Call of Tunisia) narrowly defeated Tunisia’s Islamist party Ennahda (حركة النهضة‎), Tunisia’s Islamists gracefully conceded. Unlike in Egypt, where the Muslim Brotherhood broke its pledge not to run a presidential candidate in the 2012 election, Ennadha wisely chose not to contest the presidential fight, which culminated in a runoff between Essebsi and Moncef Marzouki, a human rights activist and secular liberal who has served as Tunisia’s interim president since 2011.

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Marzouki (pictured above), who lost by a double-digit margin  of 55.68% to 44.32%, according to official results released Monday, congratulated Essebsi earlier Tuesday, clearing the way for a peaceful transfer of power. Though Marzouki still commands significant respect within the country, he has struggled to tamp down increasing disenchantment with the economy and sporadic episodes of violence. Though not an Islamist himself, Marzouki won the presidency through Ennahda‘s support, and many of its voters preferred Marzouki over Essebsi, given the latter’s ties to prior regimes that often repressed religious expression.

While Tunisia can take some pride in the strides that it has made, the best way for its political elite to secure the political gains of the past four years is to boost economic growth and pull Tunisia firmly into the class of rising middle-income countries through economic reform, public sector modernization and closer ties with the European Union. In that regard, Essebsi’s task is not incredibly different than any number of new leaders in post-revolutionary countries on the European periphery, from the democratic (Ukraine’s Petro Poroshenko) to the autocratic (Egypt’s Abdel Fattah El-Sisi). But with GDP growth of barely 3% last year, a 15% unemployment rate and a jobless rate of around 30% for young Tunisians, the relative success or failure of the Essebsi administration will lie in its ability to foster growth, and that was always going to be true of the next  government — liberal, Islamist or otherwise.

The lack of economic opportunity has already caused at least 3,000 young Tunisians to join the jihadist Islamic State group (الدولة الإسلامية‎)  in Syria and Iraq, allegedly a larger foreign contingent of fighters than from any other country. The continued failure of Tunisia’s post-revolution government to address its lackluster economy could similarly cause many of the country’s youth to turn away from democratic politics and toward more radical solutions at home — a huge problem for a country whose median age is 29.7 years old. The inflection point for Tunisia’s protests in December 2010 came with Mohamed Bouazizi’s self-immolation, itself as much a statement against a lack of economic opportunities as against the Ben Ali’s autocratic regime.

Marzouki lost Sunday’s election in large part due to his inability to effect that kind of economic turnaround. There’s some doubt that Essebsi, at age 88, and with links to the elite that ran the country for decades even before Ben Ali, is the man for the job. Essebsi once served as an adviser to Habib Bourguiba, Tunisia’s president for 30 years after independence and Ben Ali’s mentor until Ben Ali ousted him in the 1987 coup.  Continue reading Essebsi must now deliver on Tunisia’s economy

One solution to Moldova’s problems? Just join Romania.

moldovaPhoto credit to adrianhancu / 123RF.

By just about any measure, Moldova’s first quarter-century as an independent state has been inauspicious long before last weekend’s parliamentary elections.moldova

Emerging from the Soviet Union as a new state engaged in a war with separatists in Transnistria, Moldova is today the poorest country on continental Europe, and successive governments have left the country with antiquated and corrupt institutions that culminated in widespread protests (pictured above) and a political crisis in 2009. In 2014, no country in the former Soviet Union, including Ukraine, is perhaps more at risk from Russian aggression.

Though a coalition of three relatively pro-European parties appear to be moving forward to form a governing coalition, the winner in last Sunday’s vote was the Partidul Socialiştilor din Republica Moldova (PSRM, Party of Socialists of the Republic of Moldova), formed in 1997 and a fringe party until it received an endorsement from Russian president Vladimir Putin. The Socialists will enter Moldova’s 101-member Parlamentul (parliament), with 25 seats, the largest of five parties in the chamber.

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The Socialists benefitted chiefly from a decision on November 29 by Moldova’s supreme court of justice to uphold a lower court’s decision two days earlier to disqualify the pro-Russia ‘Homeland’ Party after it was found to have accepted foreign resources. Continue reading One solution to Moldova’s problems? Just join Romania.

Photo of the day: Helmut Kohl at Brandenburg Gate

amazingPhoto credit to Andreas Mühe/VG Bild-Kunst Bonn for BILD.

This is perhaps the most haunting photo in world politics in 2014.Germany Flag Icon

Helmut Kohl, who was first elected chancellor of West Germany in 1982 and who left office in 1998 following his final term as the chancellor of a reunified Germany, is today long out of frontline politics and, since a 2008 stroke, has been confined to a wheelchair. He sits alone in this photo for Bild at night in the glow of the Brandenburg Gate, one of many points that divided East Berlin from West Berlin for the better part of 28 years.

It’s astonishing that, with Sunday’s 25th anniversary of the fall of the Berlin Wall, which ultimately resulted in the reunification of Germany and became a harbinger of the collapse of the Soviet Union, we’ve almost reached the point where the Berlin Wall has been down longer than it initially stood.

Even as Mikhail Gorbachev, still around as an icon of the revolutionary change of that era (and despised, to this day, in Russia), is warning that Ukraine could spur a new 21st century cold war, Sunday was an opportunity to celebrate the universal desire for freedom. That was as true in 1989 as it is in 2014, when many walls still remain, from Gaza to China’s ‘great firewall.’

For Germany, the reunification of East and West has been very successful in some ways, others not. It’s almost comical today to imagine British prime minister Margaret Thatcher telephoning Gorbachev, frantically and practically begging him to stop German reunification. But when we think about the chiefly German-led European Union of 2014, with its emphasis on tight budgets (instead of GDP and jobs growth) and its peculiarly German reticence as regards debt and inflation (even in the face of growing deflationary pressure), there may have been something to Thatcher’s warnings, after all. Ulrich Beck captures the peculiar problem of German Europe in a new short book, translated earlier this summer into English.

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RELATED: Has the first Ossi chancellor been good or bad
for the former East Germany?

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German reunification is itself something of a cautionary tale about the perils of implementing a currency union in what, in 1990, was most certainly not an optimal currency zone. Though the past 25 years haven’t been horrific for the six eastern German states that once constituted the German Democratic Republic, it’s hard to say that the former GDR has done better than Poland or other former ‘Iron Curtain’ countries. That, in part, may have been due to the effects of conversion of East German currency on a 1:1 ratio with the West German deutsche mark.

Continue reading Photo of the day: Helmut Kohl at Brandenburg Gate

Juncker’s first ‘scandal’ shouldn’t merit resignation calls

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I spoke with RIA Novosti earlier today about the revelations that Luxembourg’s government has been much more intimately involved in granting tax concessions to international companies.European_UnionluxembourgThose revelations come less than a week after former Luxembourgish prime minister Jean-Claude Juncker officially took office as president of the European Commission.Marine Le Pen, the leader of the far-right, eurosceptic Front national (National Front) has already called on him to resign.
My full remarks follow below:

It’s a very embarrassing position for Juncker, because he only took office as the president of the European Commission a few days ago, and he’ll take some perhaps well-deserved political heat for the matter, and it probably reduces his credibility on tax reform matters.

Everyone has, in the back of their minds, the example of the Santer Commission, which resigned en masse in 1999 over corruption. For now, the revelations do not appear to implicate Juncker in anything more than the kind of aggressive steps that state leaders sometimes take to attract foreign development and investment. If, for example, Juncker was found to have taken personal kickbacks in exchange for favorable treatment, it would be a much more serious allegation for himself, for the Commission, and for confidence in Luxembourg’s institutions. But there’s no evidence of that.

Meanwhile, the Commission is a professional regulatory body, and any investigations into Amazon or other companies that received state aid in potential violation of European law will be conducted by Denmark’s Margrethe Vestager, the EU commissioner for competition, who is a former minister of economic affairs and deputy prime minister. It’s helpful, from an ideological perspective, that Vestager comes from the Danish Social Liberal Party, which should give some comfort to the European Parliament’s leftists. Ultimately, this is less a ‘scandal’ than a valid policy issue, insofar as Luxembourg and other countries have long pushed the envelope in making their jurisdictions extremely favorable to international companies. Note the Irish government’s decision last month to revise the ‘double Irish’ structure so common in the taxation of intellectual property assets. So as the Commission and other EU (and even international) institutions look into these decisions, it will help clarify the line between permissible and impermissible in the future.

Marine Le Pen is hardly the best critic on the matter, because her party has long been in favor of lowering taxes and promoting the kind of economic nationalist steps that Luxembourg’s officials may have taken with many international companies. Her call for Juncker’s resignation isn’t credible, but it’s very important for her to maximize support among the eurosceptic French right if she’s going to have any credible shot at winning the French presidency in 2017, a task made much more difficult by the return of former president Nicolas Sarkozy.

Beware Putin’s southern European, soft-power front

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Russian president Vladimir Putin travel to Belgrade on Thursday with a warm welcome from Serbian prime minister Aleksandar Vučić (pictured above, left, with Putin) with  parades and fanfare.Russia Flag Iconbulgaria flagSerbia_Flag_IconHungary Flag Icon

Even as a shaky ceasefire between the Ukrainian government and pro-Russian eastern separatists limps forward, US and European policymakers continue to keep a wary eye on the Baltic states and Ukraine. Just over a month ago in Tallinn, US president Barack Obama disabused Putin that NATO would flinch in its response to any Russian attack against any of the Baltic states.

Russian aggression may have nudged Latvian voters into reelecting a center-right government otherwise unpopular after a half-decade of economic malaise and budget austerity, and Russian relations are certain to play a vital role in Ukraine’s snap parliamentary elections in less than two weeks.

Nevertheless, Western strategists may be overlooking Putin’s ability to undermine both EU and NATO resolve through the Achilles’ heel of southeastern Europe by leveraging economic, political and cultural influence in Bulgaria, Hungary and Serbia. While it’s hard to believe that Russia would assume the economic burdens of annexing large swaths of eastern Ukraine and even harder to believe that it would risk World War III by invading Russian-majority territory in Estonia, Russia could easily, quietly and gradually maximize its influence within southern Europe, a region that continues to suffer inordinately from the fallout of the global financial and eurozone debt crises.

Earlier this month, Bulgarian voters went to the polls for the second time in just 17 months. They elected a fragmented National Assembly, though the former pro-European, center-right prime minister Boyko Borissov is likely to return to power with a minority government. One of the first decisions he will have to make is whether to proceed with the South Stream natural gas pipeline, which would carry Russian energy through Bulgaria and to Austria, Hungary and elsewhere in southern Europe. The pipeline is one of the reasons, in fact, that the previous center-left coalition government fell earlier this summer. Continue reading Beware Putin’s southern European, soft-power front

ECB’s Draghi on raising inflation in Europe: ‘We will do exactly that.’

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Italy’s Mario Draghi, the president of the European Central Bank, joined Stanley Fischer, the vice chair of the Federal Reserve, in an hour-long program at the Brookings Institution earlier today.European_Union

Draghi addressed at length both the ECB’s steps to confront deflation and the need for EU countries to enact bolder economic reforms in his remarks and in his discussion with Fischer, the former president of Israel’s central bank and a former professor at the University of Chicago who once taught Draghi.

Deflation as Europe’s chief economic threat

DSC00853Draghi stressed that he understands the biggest risk to European Union’s economic recovery is deflation. He noted that the ECB is transitioning from a more passive approach to a much more active ‘QE-style’ approach to the bank’s balance sheet — in part by moving last month to purchase private-sector bonds and asset-backed securities. Even if Draghi’s efforts still fall short of the kind of quantitative easing (e.g., outright asset purchases) that the Federal Reserve introduced to US monetary policy five years ago, Draghi committed himself to lifting the eurozone’s inflation from ‘its excessively low level’:

We will do exactly that.

It’s not exactly ‘whatever it takes,’ but it’s a sign that Draghi realizes the dangers that deflation presents, with the eurozone inflation rate falling to just 0.3%, the lowest level since the height of the eurozone’s existential sovereign debt crisis:

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Draghi has been one of the leading voices for a more active ECB approach to boosting inflation to 2% within the next two years, though Germany’s powerful central bank, the Bundesbank, and its president Jens Weidmann (also a member of the ECB’s 24-person governing council), remains skeptical of full-throated quantitative easing.  Continue reading ECB’s Draghi on raising inflation in Europe: ‘We will do exactly that.’

Scotland votes: Should it stay or should it go?

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Today, residents of Scotland, a region of 5.3 million people, will vote in referendum that’s been scheduled for 19 months, and that will ask one simple question:scotlandUnited Kingdom Flag Icon

Should Scotland be an independent country?

The answer could change the economic, social and cultural outcomes of the lives of both English and Scottish residents for generations to come.

With polls set to open shortly, Suffragio looks at ten policy (and other) issues that Scots are considering as they cast their ballots, either to become an independent state or to remain part of the United Kingdom. Continue reading Scotland votes: Should it stay or should it go?

The 13 key EU players in the proposed Juncker Commission

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On Wednesday, the incoming president of the European Commission, Jean-Claude Juncker (pictured above), released full details on the proposed commissioners within his Commission, which will serve as the chief executive and administrative body of the European Union between 2014 and 2019.European_Union

The most important feature of the proposed Juncker Commission is that he’s introduced the greatest amount of hierarchy in an institution that used to be flat. It’s not a secret that some portfolios have always been more desirable than others, especially as the Commission has expanded to include all 28 member-states. But Juncker has introduced a first vice president and five vice presidents, who will also serve alongside Italy’s foreign minister Federica Mogherini, who was appointed two weeks ago to serve as Commission vice president and high representative for foreign affairs and security policy.

The delegation of so much power to five ‘super-commissioners’ with roving, supervisory briefs indicates that Juncker intends to be a much less hands-on Commission president that his predecessor, José Manuel Barroso. But it also reflects a Commission that, including Luxembourg’s Juncker, contains five former prime ministers (Finland, Slovenia, Latvia and Estonia).  It also contains four incumbents (Germany, Sweden, Bulgaria and Austria) who have served throughout the full second term of the Barroso Commission. That makes the Juncker Commission possibly the most distinguished in EU history.

Each commissioner must be approved by the European parliament and, while individual nominees have had troubles in the past, the parliament typically approves the vast majority of a Commission president’s appointments, all of whom were nominated by their respective national governments.

With nine women, it’s not as unbalanced as feared even a week or two ago, and with 14 members of the center-right European People’s Party (EPP), eight members of the center-left Party of European Socialists (PES) and five members of the Alliance of Liberals and Democrats for Europe (ALDE), it generally reflects the results of the May 25 European parliamentary elections, though some social democrats and socialists are grumbling that the left doesn’t have enough representation.

So what can we expect from this illustrious college of commissioners?

Here’s a look at the 13 most important players in the proposed Commission (aside from Juncker and Mogherini, of course). Continue reading The 13 key EU players in the proposed Juncker Commission

How an independent Scotland could enter the EU

Scottish referendum debate urging yes vote

One of the most vexing questions of the current campaign for Scottish independence is how easily it might be for an independent Scotland to join the European Union.scotlandUnited Kingdom Flag IconEuropean_Union

As a constituent part of the United Kingdom, Scotland has been part of the European Union and its predecessor, the European Economic Community, since 1972, the date of the first EEC enlargement, when Ireland and Denmark also joined.

As such, Scotland has been exempt from several conditions that would be required of an independent country seeking EU membership today. Scotland hasn’t had to join the eurozone or become a member of the Schengen zone, which allows all EU citizens to travel freely throughout 26 of the 28 member states (Ireland and the United Kingdom are the exceptions). It has also received some of the benefit of those rebates that Margaret Thatcher clawed back from Europe in the 1980s.

An independent Scotland might be forced to accept, at least in principle, joining either or both of the the eurozone the Schengen zone as a condition of re-accession to the European Union. The former could complicate the assurances that Scottish first minister Alex Salmond has tried to give that Scotland could continue using the British pound and, like Ireland today, share open borders with what remains of the United Kingdom. Continue reading How an independent Scotland could enter the EU

The idea of a nuclear war with Russia is absolutely crazy

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As if timed to coincide with this week’s NATO summit in Wales, which could mark the most important gathering of Western allies since the end of the Cold War, US-based commentary this week took a huge leap forward in its assessment of the Russian threat — though not necessarily in a way that’s incredible rational.Russia Flag Icon

Call it the ‘underpants gnome’ theory of understanding Russia today:

Russian aggression in Ukraine + ????? = World War III!

But even as a ceasefire takes effect today between the Ukrainian military and the Russian-backed separatists based in Donetsk in eastern Ukraine, based on a plan put forward earlier this week by none other than Russian president Vladimir Putin and brokered by talks hosted by increasingly nervous officials in Belarus, US writers are nevertheless openly contemplating the audacious notion of a potential Russian nuclear strike. Continue reading The idea of a nuclear war with Russia is absolutely crazy

Mogherini: Better suited for EU diplomacy than Sikorski

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I spoke briefly with Flora Neve at Voice of Russia yesterday about Italian foreign minister Federica Mogherini’s appointment as the next high representative of foreign affairs and security policy of the European Union.Italy Flag IconEuropean_Union

Among other points, I noted that Mogherini, despite her inexperience (just six months as Italy’s top diplomat), and the worry among many eastern and central European leaders that she’s too sympathetic to Russia, is particularly well-suited to the EU role.

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RELATED: Forecasting the EU power summit, part 1:
Europe’s next high representative

RELATED: Tusk, Mogherini appointed to top European offices.
What next?
 

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Realistically, foreign policy is the last issue that a sovereign nation is ever likely to concede to a supranational policymaking body like the European Union. Mogherini’s successor, as the foreign minister of a G-7 country with a $2.07 trillion economy, will have more real power to make foreign policy decisions than Mogherini will in Brussels. That means that Mogherini’s power in the job will be in amplifying a sense of unity around those issues where European leaders largely agree:

If I were a national leader at the Council making this decision, I would worry that someone like Sikorski — it’s not he’s too experienced, and he’s going to take away the power of a sovereign national state to set its own foreign policy — it’s that he may be out in the limelight saying things that are a bit impolitic. When, in fact, the real strength of this role is for someone like Mogherini who has the skills to work behind the scenes and pull together cooperation where it’s possible. And I think that she’s much better suited for that role than Sikorski.

Tusk, Mogherini appointed to top European offices. What next?

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The European Council appointed Polish prime minister Donald Tusk as Council president and nominated Italian foreign minister Federica Mogherini as its new high representative for foreign affairs and security policy.Italy Flag IconEuropean_UnionPoland_Flag_Icon

The appointments of both Mogherini and Tusk were widely expected in the days and hours leading up to today’s EU summit.

Tusk (pictured above, left, with his predecessor, Herman Van Rompuy), age 57, was first elected prime minister in 2007 and reelected in 2011 as the leader of the center-right Platforma Obywatelska (PO, Civic Platform), each time defeating the more conservative, nationalist Prawo i Sprawiedliwość (PiS, Law and Justice). Essentially a moderate liberal and European federalist, Tusk has governed Poland for seven of the 10 years during which it’s been a member of the European Union. His elevation to the Council presidency marks the first time that a central or eastern European has held a top EU office, and it reflects Poland’s growing clout as one of the engines of the European Union.

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Mogherini (pictured above, right, with her predecessor, Baroness Catherine Ashton), age 41, only recently became Italy’s foreign minister in February, when prime minister Matteo Renzi maneuvered his way into the premiership. Though some Baltic and eastern European leaders doubted her level of experience and questioned whether she might be too sympathetic to Russia, she’s received strong marks in her six months as Italy’s foreign minister, marking her as a rising star in the new generation of leaders in Renzi’s center-left Partito Democratico (PD, Democratic Party).

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Together with Jean-Claude Juncker, the former Luxembourg prime minister, who was nominated by the Council in June as the president of the European Commission, the EU’s chief executive and regulatory body, Tusk and Mogherini will be responsible for setting EU policy through 2019.

The Council presidency was created by the Treaty of Lisbon, which came into effect only in 2009. Before Lisbon, the Council president was simply the leader of the country that held the six-month rotating Council presidency. Van Rompuy, a former Belgian prime minister, served as the inaugural Council president. Upon the Council’s decision today, Tusk will begin his first term of 2.5 years in December, with the option for reappointment to a second term of 2.5 years.

The high representative role existed prior to the Lisbon Treaty, but it was greatly expanded when Ashton, a former Labour member of the House of Lords, was appointed to the role in 2009. Technically, Mogherini will serve as Italy’s representative on the European Commission and, accordingly, her term will run for five years and is  subject to the approval of the European parliament. 

Given their different backgrounds, Tusk and Mogherini were viewed as a complementary team. Eastern and central Europeans are delighted to see Tusk, a relatively hawkish voice on Russia, elevated to the Council presidency. Meanwhile, Mogherini brings gender diversity to the Commission, and she will join Martin Schulz, a German social democrat, as the chief voice of the center-left at the top of the EU policymaking apparatus.

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But what does it mean for the next five years of European policy? Continue reading Tusk, Mogherini appointed to top European offices. What next?