domingo, 31 de julio de 2011

Britain and France: Why Germany matters

Britain and France: Why Germany matters: "

By Luis Simón


The new Franco-British military agreements have been widely read not just as a reaction against sinking military budgets on both sides of the channel, but also a blueprint for articulating a new regional order. The Franco-British led intervention in Libya might actually offer a glimpse of the mechanics that will underpin this alternative system, but also of its shortcomings.


Through a system of enticements and incentives, Britain and France would co-opt other European countries to design a new system of hegemony in Europe. The geopolitical logic underpinning this ‘new’ system is to stave off a potential destructuring of Europe’s post war order – gravitating around the Low Countries – and reverse a potential eastwards shift of the fulcrum of European power. This design would ensure the preponderance of maritime power, through a British-French base in the rear assisted by a system of ‘bridgeheads’ and ‘stations’ in the Mediterranean, Baltic and the North European plain. The Iberian and Jutland peninsulas would play a particularly important role in this scheme, in their double geopolitical role of line of contention and launching pad for controlling the Mediterranean and Baltic Seas respectively. Connecting the Mediterranean and the Atlantic, Spain would therefore offer the first point of an infrastructure of power through the Mediterranean via Malta and Cyprus. Denmark would play a similar role in the Baltic, initiating a wider system that would lean on the Nordic countries of Sweden and Finland and the southern Baltic countries of Estonia, Latvia and Lithuania. Finally, a Polish bridgehead would play a vital role in the front line, providing this maritime-based system with a deep reach into the Eurasian peninsula.


For its adherents, this new European maritime design would have two main and inter-related aims. First, it would prevent an unsavoury balance of power from the east or south-east, be that in the form of a resurgent Russia, an increasingly confident Turkey or – chiefly – a potential German-Russian condominium. Second, it would exercise hegemony over the European Union’s surrounding seas and balance against the terrestrial power of Germany and Russia. Poland would be central to this scheme, as it would offer the key bridgehead breaking the continuity of the German-Russian condominium.


There are, however, several problems with this approach. The first one is that it assumes that France and Britain are of exactly the same mind and that they would be able to canvass the sufficient strength to command the European continent by themselves. This is a huge assumption, particularly when many of the countries they would have to co-opt have expressed time and again their preference to deal with the United States than with two countries they perceive to be Washington’s junior partners. A strong Franco-British push for leadership through co-option would no doubt lead other European powers to seek to strengthen their own bilateral relationships with the United States – not least as a means of strengthening their own position vis-à-vis a supposed Franco-British front. This quest for alliance diversification would also include flirtings with other European powers (many of these countries are notably dependent on Germany economically), as well as those beyond – such as China.


Secondly, the absence of the elephant in the room – Germany – is conspicuous. Indeed, underpinning many of these proposals for a new European security architecture is the assumption that Germany does not want to play ball, a fact illustrated by its attitude towards the Libya crisis and its reluctance to continue to underwrite European economic integration. However, a Franco-British front may not overcome Germany’s reluctance to use force; indeed, it could actually strengthen the hand of ‘revisionism’ within Germany and accelerate a German rapprochement with Russia. And a German-Russian condominium could canvass as much power (if not more) as a Franco-British one. This is particularly the case if such a partnership were supported – whether permanently or intermittently – by countries such as Italy. This leads in to the main point: French-British hegemony can only work if supported in the rear by the United States.


Only if supported by Washington (diplomatically and militarily) will Britain and France swing the balance in Europe and its wider neighbourhoods – as can be seen in the case of Libya. Only when leaning on the United States will Britain and France aspire to maintain a strong military industrial base (BAe Systems now does more business in the American market than it does in the British one, and Thales decided long ago that its success goes through inroads into the British and American defence markets). In other words, Franco-British co-opting can only work if France and Britain are themselves being co-opted by the United States.


But Washington will not be willing to back London and Paris in the way that it has previously. The United States will play a more indirect (but still decisive) role in European geopolitics, not least due to its growing commitments in the eastern half of Eurasia. Because of its offshore geopolitical position, its more geographically disperse economy and its ‘special relationship’ with America, Britain would continue to be the decisive factor of a renewed maritime European system. Britain would have more influence and power than France, which remains more dependent on Germany – particularly in the economic realm. Paris, of course, is well aware of this fact. This is why France will only go so far in embracing the new maritime system and will try to navigate its ‘new’ special relationship with the British with its ‘old’ German connexion, much as it has always done.


The point being that unless Britain, France and Germany manage to bridge their differences and find a way to work together through the European Union, the stability of Europe and that of its broader neighbourhood will not be guaranteed, nor will Europeans be able to constitute a strong and autonomous pole of power in the twenty-first century.


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martes, 26 de julio de 2011

Six months in the service of a stronger Europe - overview of the Hungarian Presidency of the Council of the European Union

Six months in the service of a stronger Europe - overview of the Hungarian Presidency of the Council of the European Union

European Parliament Library Briefings

European Parliament Library Briefings: "

European Parliament (EP) Library Briefings are short topical summaries mostly on currently relevant matters (e.g. because a committee is dealing with a topic) the EP library staff produces in particular for MEPs and their assistants.


Until last year, these documents were not made available to the public – at least that’s what I’ve heard at a meeting in the EP Library together with Jon at the time. Yet, already then it was announced that they planned to make these public. Now they are public, although they are not easy to find, but I finally came across them by accident yesterday.


You can find them here. Or via Google (add a keyword to search more in detail).


At the time of writing, there are 108 briefing documents from 2010 and 2011 in the register, 88 in English and 20 in French. Among them are, for example, summaries on:



Now these are not academic studies that can satisfy an expert in a certain field, but they are nice little summaries one may like to consult if one gets lost in the jungle of EU policy issues.


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viernes, 22 de julio de 2011

Una Unión Europea de iguales

Una Unión Europea de iguales: "José M. de Areilza 21 de julio, 2011 El año 2036 pasará a la historia de la integración europea sobre todo por haberse producido la esperada solicitud de ingreso de Alemania. Después de veinte años de vivir a espaldas de Europa, el nuevo gobierno de Berlín, formado por la coalición cristiana-turca, ha decidido poner fin [...]"

jueves, 21 de julio de 2011

EU ICT R&D and Innovation beyond 2013 - 10 key recommendations

EU ICT R&D and Innovation beyond 2013 - 10 key recommendations: "The Information Society Technologies Advisory Group (ISTAG) has just issued its 10 key recommendation to the Commission on the orientation for EU ICT R&D and Innovation beyond 2013.
ISTAG reaffirms the importance of pursuing and strengthening EU investment in ICT research and innovation. Indeed, ICT infrastructure plays a critical role in today's globalised economy and its reliable and trustworthy operation is absolutely essential. However beyond this, ICT has become a key transformative force in social innovation, by enabling the development, implementation and deployment of innovative solutions addressing societal needs and supporting human and socio-economic development opportunities. This wider agenda calls for a larger stakeholder community, beyond the traditional players, including unconventional actors such as informal networks and influential individuals."

miércoles, 13 de julio de 2011

La democratización no es suficiente (Der Spiegel, Hamburgo)

La democratización no es suficiente (Der Spiegel, Hamburgo): "A pesar de la multitud de problemas a los que se enfrenta la Unión Europea, la democratización no los solucionará. En lugar de ello, deben mejorar las élites de la UE y el poder debe pasar de la periferia al centro. (Article)"

jueves, 7 de julio de 2011

¿Justo retorno?


En pleno junio se inició el debate sobre el marco presupuestario para la Unión Europea 2014-2020 con gran revuelo y polémica. Un debate que se prolongará todo el año y que debe concluir con un acuerdo definitivo a finales de 2012, bajo presidencia chipriota en el Consejo. Hoy por hoy, la realidad trasluce una práctica congelación del presupuesto, en la línea de la Carta de los Cinco presentada el pasado mes de diciembre por cinco Estados 'contribuyentes netos', verbigracia Francia, Alemania, Reino Unido, Holanda y Finlandia, en que solicitaban la congelación presupuestaria hasta 2020. La incomodidad de estos Estados tiene que ver con las presiones por contener el gasto público estatal, y también ¿por qué no? con los movimientos de rescate entre economías de la eurozona. El comunicado de los 'Cinco' se encontró con la férrea oposición del bloque de los países del Este, en pleno proceso de recepción de ayudas al desarrollo regional y políticas de cohesión.

El Parlamento europeo, en el plenario de junio, votó, por lo demás, no sólo contra la congelación, sino que propuso un incremento del 5% en el monto total, justificado sobre el peso político y estratégico del programa Europa 2020, totalmente inasumible sin una dotación presupuestaria correcta. Como señalaba el portavoz Garriga 'no se le puede pedir más a Europa con menos financiación', a no ser que se pretenda que el objetivo 2020 quede en otro fracaso.

A la postura claramente expresada por el PE, se suma la de la Comisión, que defiende ese aumento del 5%, al tiempo que desea suprimir -y en todo caso simplificar- las devoluciones. No sólo el cheque británico, sino también las compensaciones que reciben Holanda, Suecia, Austria y Alemania, precisamente por su contribución al fondo británico. No es de extrañar que este sistema sea un verdadero quebradero de cabeza para el desarrollo presupuestario.

La Comisión presentó su informe el jueves pasado, planteando un aumento del 5,04% sobre el actual marco 2007-2013, que en realidad se traduciría en una reducción del actual en términos de renta bruta, ya que se pasaría del 1,1 % del PNB en el actual marco al 1,05 % del PNB en 2014-2020. La propuesta de la Comisión solicita un total de 1025000 millones de euros en compromisos, más 972 mil millones en pagos para el total del período 2014-2020. Destacables los 58 mil millones extrapresupuestarios (que necesitarían en su caso aprobación del Consejo) para reservas de emergencia, efectos de la globalización y la financiación del proyecto ITER. No obstante, es preciso destacar que el presupuesto europeo siempre está en equilibrio y que nunca se supera el gasto predefinido, por lo que no hay posibilidad alguna de déficit.

En buena lógica, la Comisión sigue interpretando el presupuesto como herramienta de cohesión, función para la que fue concebido en sus inicios, y que cobra relevancia justamente en un ciclo económico de crisis como el actual. Del monto total propuesto, 376 mil millones de euros serían para desarrollo regional (cohesión) y 372 mil millones para los agricultores, si bien el peso de la PAC descenderá hasta el 33% en 2020, beneficiándose otras políticas, como la de cohesión y las de carácter ecológico y medioambiental, evidente apuesta estratégica de la Comisión. Además, 40.000 millones de euros los gestionará directamente la propia Comisión Europea para proyectos transeuropeos de redes transporte, energía y telecomunicaciones. Entre las novedades importantes, destaca una nueva área política que pretende cobrar visibilidad: la competitividad de las PYMES y el turismo. Este punto se dota de un pequeño fondo de 2400 millones de euros.

El proyecto contempla también recortes, ya que el marco presupuestario prevé una reducción del 5 % en número de funcionarios en instituciones comunitarias en 2018.

Lo cierto es que muchos Estados se han apresurado a manifestar su oposición al incremento presupuestario, incluido el liberal alemán Westerwelle, que niega un problema de financiación en la UE, o el británico Cameron, totalmente alérgico a cualquier nueva tasa.

Cabe decir, no obstante, que el gobierno francés se ha mostrado partidario de abrir ese debate y se muestra conforme con las líneas expresadas por la Comisión, aunque no se lleven a engaño, parecen actuar más en el sentido de recibir una parte de esa tasa financiera que en contribuir al presupuesto comunitario, al que según el gobierno francés Francia ya aporta 20 mil millones de euros anuales.

En un ambiente de creciente euroescepticismo, y ante una grave crisis que demanda justamente flexibilidad, es más pertinente que nunca buscar herramientas presupuestarias que puedan permitir ajustes y mitigar particularidades de la crisis en su impacto sobre regiones europeas, tanto las más rezagadas como las regiones intermedias, con problemas de competitividad, que no sólo son derivados de los problemas internos en la eurozona y su percepción por parte de los mercados.

Por lo demás, Barroso apuesta por acabar con la cultura del justo retorno (¿qué hay de mi dinero?), y se plantea buscar un nuevo recurso propio con que financiar el presupuesto de la Unión. Se habla con fuerza del Impuesto sobre Transacciones Financieras, concebido para “penalizar” de algún modo a los iniciadores de la crisis global, aunque con un fin no tanto moral sino de gravar según el volumen de operaciones sobre el sector financiero. Otra de las opciones es recaudar directamente por parte de la UE un tramo del IVA nacional, de entre el 1% y el 2%. Por ahora, parece descartarse el impuesto de sociedades (conocido como EUCIT en inglés) debido a los riesgos en cuanto a percepción de un gravamen de este estilo, en el sentido de que por ejemplo la industria europea perciba estar financiando a otros sectores, como el agrícola.

Actualmente, los recursos propios de la UE sólo representan el 15% del total, mientras que el restante 85% es financiado mediante contribuciones directas de los Estados miembros. Se prevé que tanto el tramo del IVA como el Impuesto sobre Transacciones Financieras entren en vigor en 2018, por tanto al margen de lo que es la negociación en sí del Marco Financiero 2014-2020. La Comisión estima que el impuesto financiero podría generar 30 mil millones de euros anuales.

El cuadro de la situación sigue siendo bastante descorazonador, no sólo por ese insinuado escepticismo, sino por los intentos denodados de propuestas con pocas opciones de prosperar. Tenemos a un Giscard cargado de buenas intenciones y nostálgico de la Convención que aboga por recuperar aquel espíritu constitucional, mientras que el mismísimo Lamassoure se descuelga con la propuesta de una Convención presupuestaria con la participación de sociedad civil, parlamentos nacionales y demás actores relevantes.

Sin embargo, no parece que los Estados estén dispuestos a airear públicamente un debate sobre la financiación de la Unión Europea, debate cuyas consecuencias podrían ser imprevisibles en un contexto de gran tensión política y durmiente inquietud en las sociedades europeas. Justamente por ello vivimos un momento que presenta un gran reto político y comunicativo para la Unión Europea. La combinación de necesidad y capacidad del motto “More Europe” merece más apoyo de todos nosotros, y un voto de confianza en las instituciones europeas, como único sistema garante de la superación de los viejos instintos de los intereses nacionales y de articulación objetiva de lo que significa estar juntos y haber renunciado a dosis importantes de soberanía. Los momentos difíciles son, paradójicamente, los momentos de la generosidad. También ahí nos jugamos nuestra credibilidad exterior como bloque, no sólo económico, sino también político.
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Is German Dominance of the ECB Responsible for sub-optimal Monetary Policy in the Eurozone?

Is German Dominance of the ECB Responsible for sub-optimal Monetary Policy in the Eurozone?: "

German dominance over the European Central Bank (ECB) is nowhere more apparent than in the price stability goal of inflation at or below 2% enshrined in the Maastricht Treaty. A notable success in postwar Germany was the excellent record of the Bundesbank on maintaining price stability, which represented an important break with the hyperinflation that had characterised the Weimar Republic prior to WWII. For the German public to give up the Deutschmark, another potent symbol of post-war success, there had to be some guarantee that the single currency would be equally strong and stable. One answer to this was the price stability mandate of the ECB, a crucial element of Germany’s willingness to sign up to monetary union and a goal still deemed paramount in the execution of ECB monetary policy; both to German policy makers and the general public. However, just as this focus on price stability has been criticised in the past as being to the detriment of growth and jobs in Europe, it is the subject of much debate now, resulting from divergence in inflation trends between the core and periphery of the Eurozone . While the core, and in particular Germany, is experiencing strong growth and the risk of inflation increases, peripheral economies, such as Greece and Ireland have yet to resume growth since the onset of recession in late 2008.


Nonetheless, the ECB raised its key interest rates by 25 basis points to 1.25% following its April meeting, which prompted widespread criticism from economists who saw the move as damaging to the Eurozone’s periphery or too timid to address rising inflation in the core, depending on perspective. Thus, as I have argued previously, it seems safe to say that the ‘one-size-fits-all’ monetary policy of the ECB is more nearly ‘one-size-fits-none’ at this point.


But how does this relate to German dominance?


German insistence on enshrining the price stability goal of inflation at or below 2% in the Maastricht Treaty is a tenuous argument for German dominance over the ECB today, yet the impact of that strict target is apparent in the current situation. As argued by Wolfgang Munchau in the Financial Times, the risks of inflation in the core were not necessarily so profound as to justify the harm of increased interest rates for peripheral economies, yet the ECB is sticking doggedly to the 2% target. While the ECB is hardly the only Central Bank that uses a strict inflation target to signal the credibility of monetary policy, the ECB has at times been exceptional in its strict observance of this goal, over the course of the financial and debt crises. Specifically, the ECB was slower than the US Federal Reserve, the Bank of England and the Swedish National Bank to lower interest rates in response to the onset of financial crisis in 2008, and, as already mentioned, has moved faster to increase rates in response to the modest recovery underway. While the Bank of England has overshot its inflation target of 2% in 34 of the past 40 months, the majority of members on the Bank’s Monetary Policy Committee continue to vote against a rate rise for fear of damaging the already weak recovery. It is true that recovery in the Eurozone’s core, and Germany in particular, has been stronger than that in the British economy, but certainly the situation in the periphery of the Eurozone is far more tenuous than that in Britain. Thus, the difficulty of identifying a ‘one-size-fits-all’ monetary policy to accommodate the diverse economies of the Eurozone is compounded by the singular focus on a strictly defined target for price stability, a mandate that can surely be traced back to German dominance over the ECB.


To provide one further example, since the possibility was mooted that Mario Draghi, governor of the Italian Central Bank, could takeover from Jean-Claude Trichet as ECB President, there has been talk of the need for this candidate from the south to demonstrate his anti-inflationary credentials to win German support. Draghi is already familiar with the workings of the ECB and the twists and turns of this crisis, having sat on the ECB Governing Council in his capacity as Italian Central Bank governor, while it unfolded. Further to that, Draghi was heading the Italian Treasury during that country’s own debt crisis in the 1990s which, crucially, did not end in default. In addition to these qualifications, Draghi has enthusiastically promoted his anti-inflationary credentials and his intention to withdraw emergency support for Eurozone banks at the earliest possible opportunity. Eventually declared by German newspaper Bild Zeitung as “the most German of the remaining candidates,” he appears to have convinced those who needed convincing. It is important to note, though, that Draghi only became the frontrunner to replace Trichet following the surprise resignation of Axel Weber from his position as Bundesbank President. The rumor is that Weber no longer wanted that post, nor the post of ECB President, because he disapproved of the enhanced role of the ECB to combat the current Eurozone debt crisis, as well as German Chancellor Angela Merkel’s handling of negotiations over future crisis measures . I’m not sure which would be more frightening to those highly indebted economies on the Eurozone’s periphery – a German ECB President seeking to right the wrongs of the help given them by the ECB so far, or an Italian President aiming to prove that he can be just as hawkish on inflation as the Germans.


It does seem, then, that one way or another German dominance of the ECB can be linked to a monetary policy that is suboptimal for the majority of the Eurozone, though the question remains as to whether this leads to a ‘one-size-fits-one’ or in fact a ‘one-size-fits-none’ monetary policy. Neither I nor any other sane person would suggest that it is a simple task to identify a ‘one-size-fits-all’ monetary policy for the Eurozone at the best of times, not least in the midst of the current debt crisis. However, it is still worth asking whether a more meaningful debate over the appropriate direction for ECB policy could take place in the absence of German dominance. For example, should the ECB focus less on discrete price changes and more on inflation inertia? Should the average inflation be weighted differently than it currently is? Should the bank have a dual-mandate (price stability and full-employment)? These are all questions worth asking in the current climate where dramatic policy changes, beyond the scope of monetary policy alone, are surely necessary to correct glaring imbalances between Eurozone economies.


Susan Fuchs is a PhD Candidate in the School of Public Policy at University College London. Her Doctoral Research looks at International Negotiations, with a focus on negotiations between EU Member States over the Stability and Growth Pact. With the support of the UCL European Institute and in collaboration with another PhD student in the Department of Public Policy, she is currently carrying out a research project on Economic Governance in the Eurozone in the face of the debt crisis.


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La Presidencia en Trío y la política exterior europea después de Lisboa

La Presidencia en Trío y la política exterior europea después de Lisboa: "

España, Bélgica y Hungría ejercieron la Presidencia rotativa del Consejo en una época de profundos cambios en la estructura del la política exterior común de la UE. Este policy brief parte de esta experiencia para analizar la relación entre la UE y los actores nacionales y señala los pasos a seguir para evitar la creciente desconexión ente ellos mientras se constituye el Servicio de Acción Exterior.

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