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February 28, 2014

Ukraine pleads for U.S., U.K. help after Russian 'invasion' - by Mark Mackinon

The new Ukrainian government says it has been invaded by Russia, and has appealed for the United States and United Kingdom to protect it, as they guaranteed under a 1994 agreement.

The move came after pro-Russian gunmen seized both main airports on the Crimean Peninsula early Friday, a day after other militiamen took control of the regional parliament building. With gunmen in the building and the Russian flag flying from the roof, deputies appointed a new government and passed a motion Thursday calling for a referendum on the future as part of Ukraine.

The armed takeovers sharply escalate what had already been an extremely volatile situation in Crimea, a Russian-speaking region that has rejected the overthrow of the Moscow-backed Viktor Yanukovych and the rise to power of pro-Western forces in Kiev.

Swiss accuse Yanukovych of “aggravated money laundering.” 
Also on Friday, Swiss police raided the premises of a Geneva firm owned by Mr. Yanukovych and his son Oleksander in an investigation into “aggravated money laundering.”

In Kiev, Ukraine’s parliament adopted a resolution on Friday demanding that Russia halt steps it says are aimed against Ukraine’s sovereignty and territorial integrity, and called for a UN Security Council meeting on the crisis.

The parliament also called for guarantees of the memorandum signed by Ukraine, Britain, Russia and the United States in Budapest in 1994. That agreement guaranteed Ukraine’s sovereignty and current borders in exchange for surrendering the nuclear weapons that were left after the collapse of the Soviet Union.

It wasn’t clear whether the gunmen who seized the airports were Russian soldiers or pro-Russian militiamen. They wore no insignia, but carried automatic weapons and Russian flags into the airport.

Read more: Ukraine pleads for U.S., U.K. help after Russian 'invasion' - The Globe and Mail

Healthcare: Netherlands Scores Poorly (25) Listing Efficient Global Health Care Systems

A study by Bloomberg shows: Among advanced economies, the U.S. spends the most on health care on a relative cost basis with the worst outcome.

The Netherlands considered to have a good healthcare system also scores poorly (25) when it comes to cost and efficiency.

Read more: Most Efficient Health Care: Countries - Bloomberg Best (and Worst)

EU-Economy: George Soros says he's a euro believer, looks to invest in Europe banks

Billionaire investor George Soros, the man made famous for breaking the Bank of England by shorting the pound in 1992, reportedly told a German newspaper over the weekend that he’s a euro believer. The full article at Der Spiegel isn’t available without a subscription, so we turned to Reuters for a translation and breakdown.

“I believe in the euro. Therefore my investment team is looking forward to making [sic] a lot of money soon in Europe by, for example, pumping money in banks which urgently need capital,” Soros reportedly said in the interview, adding that the euro zone needs this type of private investment now.

He said his management team was even looking at Greece, given improving economic conditions, but before doing that they need to be assured that money can be earned on a sustainable basis.

Soros also reiterated his view that efforts by Germany to save the single currency have only made things worse. A sustainable recovery for the region still doesn’t exist, even if markets are far from the turmoil of a couple of years ago. “I fear that the euro zone could experience a long phase of economic stagnation similar to Japan’s in the past 25 years.”

Read more: George Soros says he's a euro believer, looks to invest in Europe banks - The Tell - MarketWatch

February 26, 2014

South American Elections: Murder and Mayhem in Suriname - by Ed Oudenaarden

President Desi Bouterse and Son Dino in better days
Dino Bouterse thought he'd struck the deal of a lifetime. It was July 31, 2013, and the head of Suriname's counterterrorism force -- who also happened to be the president's son -- had been carefully cultivating what he hoped would become a lucrative relationship with a pair of Mexican drug smugglers. They had already piloted a "line" for shipping cocaine from Suriname, through Trinidad and Tobago, and on to Fort Lauderdale, Fla., but the Mexicans had in mind a vastly more profitable side venture: building a Hezbollah base in Suriname and arming the Lebanese militant organization against the Americans.

At a meeting in Greece, the 40-year-old Surinamese scion hashed out the details with one of the Mexicans and two purported representatives from Hezbollah. For $2 million cash upfront, Bouterse would provide secure facilities in Suriname where the Shiite militant group could train 30 to 60 men. He would also supply rocket launchers, land mines, and other weapons that could be used to strike U.S. targets.

"You'll fuck the Dutch, and we will fuck the Americans," one of the Hezbollah envoys said at one point.
"I'm totally behind you," Bouterse responded. Later, he sent a text message to an associate back in Suriname: "we hit the jackpot."

That couldn't have been further from the truth. A little more than a month later, Panamanian police arrested Bouterse at the airport in Panama City and extradited him to New York, where he had been indicted on drug-trafficking charges. Then, in November, U.S. authorities unsealed a second indictment that charged Bouterse with providing material support to a terrorist organization. The Mexican narcotics smugglers, it turned out, were U.S. Drug Enforcement Administration (DEA) informants who had been wearing wires the whole time. Their conversations and text messages with Bouterse were later made public in the unsealed indictments.

The episode was more bizarre than sinister. But it serves as an unsettling reminder that Suriname's leading political family has long been involved in unsavory, seedy, and outright criminal activities. The Hezbollah threat may have been entirely concocted by the DEA -- a clever ploy to bring down the reckless younger Bouterse -- but the willingness of Surinamese officials to accommodate a terrorist group so close to the United States should serve as a wake-up call for Washington, which still maintains military ties with Paramaribo. That Suriname is also a thriving narcostate ought also to be cause for concern.

Located on South America's north Atlantic coast and bordering Brazil to the south, the Republic of Suriname is nestled between Guyana and French Guiana, a French overseas territory perhaps best known today for its European "spaceport" and as the former site of the Devil's Island penal colony. It is South America's smallest country and is suffocatingly isolated from the rest of the continent. As noted travel writer John Gimlette wrote in 2011, Suriname, Guyana, and French Guiana have "never felt part" of South America. "The [three] are the odd ones out; they've never been Spanish or Portuguese; they've never known machismo, or Bolívar, or liberation theology; and they're so isolated that there's only one road that links them to the rest of South America."

But barriers -- physical or cultural -- have not kept the former Dutch colony entirely cut off from the outside world. During the Cold War, the United States, on high alert for communist mischief-making in the Western Hemisphere, worried that Suriname would enter the Caribbean Marxist-Leninist firmament headquartered in Fidel Castro's Havana. More recently, the country has been a transshipment point for drugs bound for markets in Western Europe. Porous borders, a vast interior with little government presence, and significant corruption have helped secure Suriname's position as a criminal entrepôt. According to the European Monitoring Center for Drugs and Drug Addiction, it ranks among South America's top five transshipment points for European-bound cocaine.

If any single figure can be held responsible for the country's recent troubles, it is Dino Bouterse's father. Desiré Delano "Dési" Bouterse has ruled Suriname intermittently for more than three decades -- twice as a result of coups he led and now as the country's quasi-democratically elected leader. Dino's criminal escapades have been a reliable nuisance for the United States. But his transgressions pale in comparison with his father's long history of drug trafficking, political violence, and human rights abuses.

The elder Bouterse, a former army sergeant who peddled imported pornography on the side, first came to power in a coup on Feb. 25, 1980 -- an occasion commemorated today in Suriname with a national holiday, the "Day of Liberation and Innovation." Promoting himself to colonel, Bouterse set Suriname on a revolutionary course influenced by Marxist-Leninist notions then in circulation across the developing world.

As he consolidated his dictatorship, Bouterse carried out a series of extrajudicial killings, the most notorious of which were the "December murders" of 1982. Early on the morning of Dec. 8, army personnel rounded up 16 prominent critics of the regime and brought them to Fort Zeelandia, near the capital, Paramaribo. A hastily assembled tribunal led by Bouterse quickly found the prisoners guilty of "anti-revolutionary" activities. Drink-sodden soldiers then carried out the death sentences in the fort's courtyard. According to one account in the Dutch press, Bouterse joined the mayhem, using a bayonet to castrate one man and shooting another in the back.

Suriname in the 1980s had all the raw ingredients for a Frederick Forsyth thriller: a sweltering climate, corrupt despotism, guerrilla war, and Cold War geopolitical intrigues. An armed ethnic uprising in the hinterlands, led by Ronnie Brunswijk, a former bodyguard of Bouterse, was met with savage government repression -- including the killing of 19 women and children in the remote village of Mooi Wana, an atrocity that has been called the "My Lai of Suriname."

But it wasn't what Bouterse was doing in his own backyard that worried the United States. It was his links with the Castro government, Nicaragua's Sandinistas, and the New Jewel Movement in Grenada. As early as 1982, the top CIA analyst for Latin America, Constantine Menges (nicknamed "Constant Menace" by bureaucratic enemies who had tired of his noisy anti-communism), warned his superiors in Langley of "the growing danger" posed by Suriname's leftward drift into the "Cuban orbit."

U.S. President Ronald Reagan came to share this anxiety about Suriname's apparent descent into Castroism. In a letter to Brazil's president in 1983, he pointed to Bouterse's "longstanding predilections toward Cuba and Grenada" and his entrance into the "Cuban/Soviet sphere." At the same time, senior members of his administration were mulling various schemes to remove the bothersome Surinamese leader from power. One such plan, developed by the CIA and later dismissed as "harebrained" by Secretary of State George Shultz, would have used South Korean commandos to overthrow Bouterse. Another would have deployed U.S.-based Surinamese exiles and was reportedly described by Sen. Barry Goldwater, no slouch when it came to anti-communist intrigues, as "the dumbest fucking idea I ever heard."

The U.S. invasion of Grenada in October 1983, aimed at removing a purportedly pro-Cuban regime, had a powerful knock-on effect. Almost immediately afterward, Bouterse broke all ties with Havana. Washington's fears of a communist toehold on the South American mainland abated and relations improved, though Libyan meddling in Suriname continued to trouble Reagan officials.

Not everyone shared Washington's belief that Bouterse was more of a farce than a threat. Suriname's former colonial rulers, for one, still thought he was a menace -- both to the Dutch residents of Suriname and because of his growing role as a drug trafficker. In 1986, the Dutch government, led by Prime Minister Ruud Lubbers, went as far as planning an invasion of Suriname. Eight hundred and fifty Dutch soldiers, with U.S. air and naval support, would arrest Bouterse on drug-related charges. But as with earlier plots, this one fizzled out.

Ultimately, Dutch leaders considered the risk of casualties to be too high. More importantly, the Americans, embroiled elsewhere in Latin America and skeptical about the mission's prospects, rejected the Dutch request to provide ships and aircraft.

In 2000, Bouterse was convicted in absentia by a Dutch court for his role in shipping a total of 474 kilograms of cocaine into the Netherlands via diplomatic pouches. Although out of power at the time -- and therefore without official immunity -- Bouterse never served his 11-year sentence because the two countries have no extradition treaty. In 2010, Bouterse's "Mega Combination" bloc won the largest number of parliamentary seats, and the former army sergeant came to power for the third time, offering the electorate "sugary promises for easy jobs and cheap housing," according to one unsympathetic Guyanese editorial writer.

Following the 2010 election, the Dutch promptly cut off security assistance, and the Dutch foreign minister declared indignantly that the new leader was not welcome in the Netherlands "unless it is to serve his prison sentence." Technically, Bouterse remains a wanted man. But the lack of an extradition treaty -- and now, Bouterse's immunity as a head of state -- makes it unlikely the Netherlands will get its hands on him anytime soon.

Few others seem to share the Dutch loathing of the Surinamese premier. Interpol withdrew its arrest order after his election in 2010, and Bouterse has traveled to Brazil, Guyana, South Africa, and the United States (for the U.N. General Assembly meeting in New York). With the exception of the recent Dino Bouterse rumpus, developments in sleepy Suriname only rarely attract the world's gaze.

No one seems to have paid any particular notice, for example, to the April 2013 announcement by Brunswijk, Dési's old nemesis, that he will run for president in 2015. Bizarrely, Brunswijk revealed his candidacy on stage during a concert featuring Rick Ross, the bald, heavily bearded, American hip-hop star. Brunswijk reportedly passed out $100 bills -- and less enthusiastically received Surinamese notes -- to the audience. An influential figure within the Mega Combination, Brunswijk has more than politics in common with the elder Bouterse. Like Dési, Brunswijk was convicted in a Dutch court in 1999 for cocaine trafficking.

Dino, meanwhile, has spent one Christmas behind bars in Lower Manhattan awaiting trial, and it doesn't seem likely that he will be a free man anytime soon. If ultimately convicted, the younger Bouterse could face a life sentence plus 15 years.  

But so far, neither Dino's exploits nor his father's unsavory past seem to have done any harm to Paramaribo's relationship with Washington. In 2012, the U.S. military supplied $400,000 in naval training, and last March, the Pentagon agreed to provide $500,000 to strengthen the Surinamese army -- support the United States shows no sign of withdrawing.

Read more: Report

South America: Suriname's president warns U.S. over interference

President Desi Bouterse :" a stained history"
Suriname's President Desi Bouterse warned on Tuesday that the U.S. ambassador may need to leave the country due to the alleged interference in the upcoming election.

The U.S. ambassador in Suriname will most likely get a warning letter from the government of Suriname on Feb. 26,in which he will be asked to defend himself, said Bouterse during a ceremony commemorating the Revolution Day.

"If the ambassador cannot properly defend himself,he may be asked to leave the country," he added.

According to Bouterse, the U.S. ambassador said and did things to avoid the coming election in Suriname because "the other president is not ready."

Bouterse said he is well aware of possible scenarios to influence the election results, but they do not worry him.

"No matter the election is held earlier or later,the opposition has no chance of winning. The president that the people of Suriname want will come to power," Bouterse noted.

He stressed that Suriname is not happy with interference from foreign countries in its national matters.

The general election for a new parliament and government in Suriname is scheduled to be held in May 2015, but the political battle has already broken out.

A member of the Suriname opposition party NPS commented: "the Americans will probably laugh at this - its like the movie called "the Mouse that roared"

EU-Digest

February 25, 2014

Turkish PM Corruption Activities Exposed: Turkey PM Erdogan says 'tapped' phone call to son 'fabricated'

Turkish PM Recep Tayyip Erdogan
Turkish PM Recep Tayyip Erdogan has angrily condemned as fabricated an audio recording that appears to show him talking to his son about hiding large sums of money.

He said the recording, allegedly tapped and posted on social media, was a "treacherous attack".
It appears to reveal Mr Erdogan asking his son Bilal to dispose of millions of euros in cash from a house.

The opposition has called for the prime minister's resignation.

The recordings, which could not be independently verified, were said to be of four conversations dating back to 17 December, when the sons of three ministers and business allies of the prime minister were detained in a high-level corruption investigation.

Correspondents say that the inquiry has presented a major challenge to Mr Erdogan's 11 years in power ahead of key local elections in March.

Cagil Kasapoglu from BBC Turkish says that, interestingly, neither the prime minister nor his party's spokespeople have denied that the voices on the recording belong to Erdogan and his son.

Their statement so far is that their voices were "montaged" to implicate them, our correspondent says.

During the conversation, a voice can be heard discussing how to reduce the funds to "zero" by distributing them among several businessmen.

At one point, the second voice says some 30 million euros ($40m/£24m) remains to be disposed of.

Read more: BBC News - Turkey PM Erdogan says 'tapped' phone call to son 'fabricated'

February 23, 2014

Ukraine peace deal brokered by EU, opens way for early election - by Natalia Zinets and Sabine Siebold

Ukraine's opposition leaders signed an EU-mediated peace deal with President Viktor Yanukovich on Friday, aiming to resolve a political crisis in which dozens have been killed and opening the way for an early presidential election this year.

Under pressure to quit from mass demonstrations in Kiev, Russian-backed Yanukovich made a series of concessions to his pro-European opponents, including a national unity government and constitutional change to reduce his powers, as well as bringing forward the poll.

"There are no steps that we should not take to restore peace in Ukraine," the president said in announcing his concessions before the deal was signed. "I announce that I am initiating early elections."

He said Ukraine would revert to a previous constitution under which parliament had greater control over the make-up of the government, including the prime minister.

German Foreign Minister Frank-Walter Steinmeier, one of the EU mediators, said the deal provided for a presidential election this year, although no date had been set. The vote had been due in March 2015.

A Reuters correspondent at the signing in the presidential headquarters said Yanukovich, 63, a towering former Soviet regional transport official with two convictions for assault, did not smile during a ceremony lasting several minutes.

Opposition leader Vitaly Klitschko, a retired world boxing champion, switched his nameplate to avoid sitting next to the president.

The European mediators signed as witnesses but a Russian envoy present did not sign the document.


Read more: Ukraine peace deal signed, opens way for early election | Reuters

Mexico - NAFTA: The "Three Caballeros" meet In Mexico: "Poor Results, No Deals and Many Promisses"


NAFTA Showtime: Stephen Harper, Enrique Peña Nieto, and Barrack Obama
The Canadian Broadcasting Corporation noted: "Jean Chretien famously pronounced his last G8 summit as prime minister a success. When asked why, he replied, "Because it could have been a disaster.'
'
That same logic could be applied to this past weeks meeting of the three North American leaders in Toluca, Mexico.

Even though the" three Caballeros" called NAFTA a great success - looking at the results - tells another story. .

The Financial Times wrote about NAFTA: "Treally wenty years into Nafta, Mexico has too many criminals and not enough policemen; too many workers earning low wages and not enough skilled jobs; too many false dawns and not enough economic growth.

NAFTA really is a big economic failure. From 1994 through 2003, the Mexican economy has grown by only 11 percent per person. This is less than one-fourth the rate of growth that Mexico experienced in the 1960s and 1970s. This is the relevant economic comparison for anyone who wants to evaluate Mexico's experience with NAFTA.

Of course, the reforms embodied in NAFTA did not begin in 1994 - they started in the early 1980s. But if we take the longer view, it looks even worse: From 1980 to the present, income per person in Mexico has grown by about 19 percent. This compares to 93 percent for the 1960-1979 (somewhat shorter) period. In other words, there is no economic evidence that the NAFTA model is a success at least not for the tax paying public.

U.S. economic winners and losers under NAFTA vary with company size, type of industry or sector, and geographical location. Sectors affected positively include planes, trains and automobiles, large agri-businesses, appliance makers and energy corporations. Clearly, large multi-national companies with investment capacities, world-market savvy and capital resources have benefited from protected investment and cheap labor. These companies enhanced management performance-based compensation while putting downward pressure on production-worker wages and benefits, collective bargaining clout and available jobs, especially in manufacturing. Many view their actions as a major contributor to compensation inequality.

According to one estimate, workers in Canada and Mexico have displaced 829,280 U.S. jobs, mostly high-wage positions in manufacturing. The heaviest U.S. manufacturing-job losses were in states such as Ohio, Michigan, Pennsylvania, New York, North Carolina, Texas, Connecticut, New Jersey, California, Indiana and Florida. 

Canada has so far experienced significant benefit from:
  • U.S. investment in automotive production,
  • Increases in oil exports to the U.S. and the rest of the world,
  • Increases in shipment of beef, agricultural, wood and paper products to the U.S.
  • Export of mineral and mining products, which have fared well in U.S. markets.
Canada has, however, also experienced some losses in narrow sectors such as specialty steel production and processed foods due to U.S. imports.

Overall the conclusion is that NAFTA has not lived up to the high expectations of its proponents. It has made many U.S. companies and investors rich - and their managements even richer. But it has also cost many U.S. manufacturing workers their livelihoods while failing to raise living standards for most Mexicans. Any major market changes not dictated by market forces usually lead to both opportunity and loss, and this has happened with NAFTA. 

EU-Digest

Russia: President Vladimir Putin deserves kudos for 2014 Sochi Olympics - a job well done

President Vladimir Putin
Even though most of us in the Western Press had initially used every possible occasion to be critical about a variety of issues surrounding  the Sochi Olympics project, the Olympics not only got off to a brilliant start, but also throughout the games showed to be a smooth and perfectly managed operation.

This was recognized by just about everyone afterwards.

Olympic Committee officials went to great lengths to praise these much-maligned Games in their closing news conference.

"They've done a phenomenal job," said USOC chairman Larry Probst, mentioning everything from smooth transportation to Vladimir Putin's presence throughout the previous 15 days. "(Putin) has really owned these Games," he said.

Like it or not, President Vladimir Putin deserves to receive Kudos, not only for these Olympic games, but also for doing everything in his power to turn Sochi into a household word and exposing a cultural, warm and friendly face of  Russia to the rest of world.

Indeed, Mr. Putin might not be everyone's friend - which great leader ever is- but he will certainly be viewed by historians later as the Russian leader who picked up Russia by the bootstraps, after it was down and nearly out when the Soviet Union fell apart, and turning it into the modern society it is today.   

According to Russian public opinion polls, Mr Putin not only remains popular - his popularity is even rising.  In the latest poll, taken in December 2013, by the independent research organization, the Levada Centre, 68 per cent of respondents said that if new presidential elections were held this they would vote for Putin. This was up by 10 per cent from December 2012.

Why is Mr. Putin so popular at home? The simple answer is that the Russian population of 144 million is much better off today than it has ever been. Real incomes have risen substantially over the past decade, and the share of the population living below the poverty line has fallen.

The range of available consumer goods is worlds apart from when the Soviet Union fell apart little more than two decades ago.  Many of the middle class Russian families are now taking vacations outside their country and in the summer you will now find Russians vacationers just about everywhere in the world with a large contingent  in Turkey and Thailand..

During his two terms as president, Putin signed into law a series of liberal economic reforms, such as the flat income tax of 13 percent, a reduced profits tax, a new Land Code and a new edition (2006) of the Civil Code. Within this period, poverty in Russia was cut by more than half and real GDP has grown rapidly.

Some of the main features of Putin's regime so far have been: development of a corporatist system by pursuing close ties with business organizations, social stability and co-optation of opposition parties.

In 2005, Putin launched National Priority Projects in the fields of health care, education, housing and agriculture. In his May 2006 annual speech, Putin proposed increasing maternity benefits and prenatal care for women. Putin was strident about the need to reform the judiciary considering the present federal judiciary "Sovietesque", wherein many of the judges hand down the same verdicts as they would under the old Soviet judiciary structure, and preferring instead a judiciary that interpreted and implemented the code to the current situation.

In 2005, responsibility for federal prisons was transferred from the Ministry of Internal Affairs to the Ministry of Justice.

The most high-profile change within the national priority project frameworks was probably the 2006 across-the-board increase in wages in healthcare and education, as well as the decision to modernize equipment in both sectors in 2006 and 2007.

So far during Putin's government, poverty was cut more than half and real GDP has grown rapidly.

In a rare sign of emotion and patriotism, he once said in an interview with Time magazine: "Russia is an ancient country with historical, profound traditions and a very powerful moral foundation. And this foundation is a love for the Motherland and patriotism. Patriotism in the best sense of that word. Incidentally, I think that to a certain extent, to a significant extent, this is also attributable to the American people."

Kudos Mr. Putin, Sochi was a job well done.

EU-Digest

February 21, 2014

Economic Indicators: The Zombie Numbers That Rule the U.S. and Global Economy - by Zachary Karabell

Economic Indicators have outlived their time
This Thursday ( February 21) the Conference Board, a global business association, released its monthly index of “leading economic indicators.”

Like the unemployment and inflation, housing starts, G.D.P. changes and other figures, these numbers arrive in metronomic waves. Financial services like Bloomberg, Dow Jones and Reuters blast them out the moment they’re released. Stock markets will often respond within seconds. Commentators and policy makers attribute to them a near-cosmic significance.

We act as if they are markers from time immemorial, but in fact they were invented for modern industrial nations after the Depression and World War II and are now seriously outdated.

Take gross domestic product. Derived from formulas set down by the economist Simon Kuznets and others in the 1930s, its limitations have long been recognized, none more eloquently than by Robert F. Kennedy in a famous speech in 1968 when he declared that it measured everything except that which is worth measuring.

GDP treats all output as a positive. When you buy LED lights that obviate the need to spend on incandescent bulbs and reduce energy consumption, GDP goes down and what should be an unmitigated good becomes a statistical negative. If a coal company pollutes a river, the cleanup costs are positive for GDP, as are any health care costs for those harmed.

What’s more, we have also come to assume that with output comes more spending and employment, but factories today are powered by robotics and software, and robots don’t buy more lattes and shoes.

GDP is a good number for a nation that produces lots of stuff made by lots of workers, but for an information economy grounded in services and intellectual property and awash in apps that cost nothing yet enable commerce, it is not up to the task. Nor are many of our indicators. Our trade figures treat an iPhone made—more accurately, assembled—in China with no reference to the intellectual property created by Apple in California.

Yes, large corporations have economists who attempt to draw correlations between macro-indicators and business trends, and companies decide on how to much to spend based in part on a read of future interest rates, growth trends, and inflation. But even here, the connection between big numbers and business realities has broken down. If national retail sales that measure big stores in malls are weak, that says nothing about how much e-commerce might be up. If consumer spending writ large sags, that says nothing about higher end spending at mass luxury stores like Michael Kors or lower-end retailers such as Dollar Tree. Making decisions based on what the indicators say is almost certainly a recipe for making the wrong decisions.

Weaning ourselves from our obsession with economic indicators is a vital step to grappling with the world as it is and making decisions that yield positive results. Individuals, companies, and governments will find their interests best served by creative approaches that craft indicators that draw on the wealth of big data information rather than cramming all reality into a few simple averages. The indicators of the 20th did yeoman service in taming the worst extremes of economic cycles. We should thank them, and move on.

Read more: The Zombie Numbers That Rule the U.S. Economy - Zachary Karabell - The Atlantic

Global GNP: Holland outside the EU would be reduced to the same level of global importance as Florida

Netherlands equal to state of Florida
How does the U.S. economy measure up to the rest of the world? You could find out by poring over a table of GDP figures, or you could get a snap perspective from this map, which renames every U.S. state according to a country with a matching GDP.

One million Rhode Islanders have as much wealth as 15 million Guatemalans. Texas has an economy the size of Australia’s. And New York has met its match, Mexico.

The map from economist Mark J. Perry at the American Enterprise Institute puts America’s $16 trillion GDP in perspective. “The map and these statistics help remind us of the enormity of the economic powerhouse we live in,” Perry writes, at least to the 4% of the world’s population that lives there.

The Netherlands economy (GDP) is approximately the same as that of the state Florida in the USA with a similar number of inhabitants (17 million people) . 

This report underscore the fact that if the EU would break up - as most of the Eurosceptics would like to see happen -  individual EU member-states would not be able to play any significant role on the global scene in relation to international trade, economics, finances, jurisdiction or military matters. 

In other words a united Europe can be a master of its own fate but divided it will fall.

Read more: GDP Map of U.S. States Compared to World | TIME.com

European Financial Industry: Germany, France back EU tax on derivatives - by Jean-Baptiste Vey

France and Germany agreed that a planned pan-European tax on financial transactions should cover all derivatives products, a source close to French Finance Minister Pierre Moscovici said on Wednesday.

President Francois Hollande and Chancellor Angela Merkel said after a joint meeting of their two cabinets in Paris that they wanted other EU partners to agree on such a levy by European Parliament elections in May.

France and its banks have in the past warned that imposing a transactions tax across the board of financial products could damage Europe's financial sector. But Germany has in recent days suggested a compromise under which different components of the tax could be phased in over time.

While Hollande and Merkel signalled their will for the 11 countries who back the tax to conclude a deal on it by the European elections, it was still not clear how high the final tax would be and when it would be applied to specific products.

Asked whether he favoured a phase-in of the tax as suggested by German Finance Minister Wolfgang Schaeuble - starting with share trades first - Hollande said such details would be worked out in minister-level discussions.

"The main thing is that it happens. If we seek the perfect product, I know there are some people who will go so deep into details that there will never be a financial transactions tax. I prefer an imperfect tax to no tax at all," he said.

Note EU-Digest: every politician in the European Union should keep in mind that we elected them to defend the interests of the voters and not only the interests of  the financial, banking industry, or specific corporate interest groups. 
 
Read more: Germany, France back EU tax on derivatives - French source | Reuters

E.U. Imposes Sanctions Despite Russian Criticism - by Stephen Castle and Steven Lee Myers

Brushing aside Russian criticism, the European Union agreed on Thursday to go ahead with sanctions that include travel bans and asset freezes imposed on those deemed responsible for the fatal escalation of violence in Ukraine.

A day after the United States announced some similar moves, foreign ministers of the 28-nation European Union said they would devise a list of those who would be subject to the European sanctions, and that the sanctions would also ban the export of equipment likely to be used for repression in Ukraine.

But the European foreign ministers also left themselves room to continue a dialogue with President Viktor F. Yanukovych’s government, emphasizing the importance of political progress in Kiev, where the foreign ministers of France, Germany and Poland have been trying to mediate.

Britain’s foreign secretary, William Hague, said that the foreign ministers had acted because of the “widespread horror” at what had happened in Ukraine but that the number of those affected by the sanctions would depend on the behavior of the Ukrainian government.

Read More: E.U. Imposes Sanctions Despite Russian Criticism - NYTimes.com

February 19, 2014

Ukraine crisis turning into Revolution: Police storm main Kiev 'Maidan' protest camp - by Daniel Sandford

Police are storming the main protest camp in Ukraine's capital, Kiev, which has been occupied since November.

Explosions are taking place, fireworks are being thrown and large fires have broken out in Independence Square, known locally as the Maidan.

On Tuesday at least 18 people were killed, including seven policemen, in the worst violence seen in weeks.

Opposition leaders later met President Viktor Yanukovych but failed to find a solution to the crisis.

Vitaly Klitschko, leader of the opposition Udar (Punch) party, told Ukraine's Hromadske TV that the president had given the protesters only one option, leave the Maidan and go home.

Security forces had given protesters a deadline of 18:00 local time (16:00 GMT) to leave Independence Square, the scene of a mostly peaceful protest camp since November.

The city's metro service was completely shut down, and there were reports that cars were being prevented from coming in to the capital.

Then shortly before 18:00 GMT, police announced over loudspeakers that they were about to begin "an anti-terror operation".

Late on Tuesday, the police tried to break through a barricade from the Evropeyska Square, but the attack was repelled.

In a renewed assault shortly after 04:00 local time on Wednesday (02:00 GMT), the police tried to move on the protesters' tents near the main monument on the square.

A number of tents were set ablaze, and the police reportedly again began using water cannon.

In speeches from the main stage, protest leaders urged people already on the Maidan to stand firm, and called on Ukrainians elsewhere to come to the square.

Meanwhile, there are reports of unrest breaking out elsewhere in Ukraine, including the western cities of Lviv, Ivano-Frankivsk. 

Mr Yanukovych's aide said the president was preparing to address the nation, without providing further details.

Read more: BBC News - Ukraine crisis: Police storm main Kiev 'Maidan' protest camp

Germany - EU Privacy Protection Laws: 'I expect Merkel's actions to follow her words'- needs to support European data law reform

DW Question to Green MEP Jan Philipp Albrecht: "John Kerry said during his visit to Berlin, "Let's turn a page and open a new chapter." He has had enough of the NSA spying scandal and the ensuing diplomatic difficulties - with Germany in particular. But Angela Merkel now said in her weekly podcast that she wants to promote a European communications network. That's seen as a direct reaction to the NSA spying allegations. How useful is this proposal?"
 
Data Law Reform, EU, EU Commission, EU Parliament, Germany, NSA Spying, Jan Philipp Albrecht:" I think it's a good sign that we see movement towards a European initiative to better protect our data and the information infrastructure in Europe. Yes, we need that. But on the other hand, it's also clear that we cannot just build borders which would give us some sort of a German or a Schengen zone internet. Instead, we need to have a legal framework which secures our fundamental rights in the European market."

"We need to implement the European data protection reform. Angela Merkel has called that a priority. Now she should follow through with it. It's not just about investing in infrastructure - even though that's a good first step in giving Europeans a choice, so they can choose a European data processer instead of a US firm."

DW: "Even if we did have European data processers - what would that change? Whistleblower Edward Snowden has said, "It doesn't matter where your servers are. The NSA will go where the data is."

Jan Philipp Albrecht: "That's true. We can't just cut the cables. People do want to communicate, and we don't want to stop them. But that's why we need better data protection in terms of services. It has to be made clear that if somebody offers services to European citizens and consumers, these services need to comply with the rules of our market: data security and protection, better encryption, and more control for users. That's what Angela Merkel should safeguard."

Read more: 'I expect Merkel's actions to follow her words' | Europe | DW.DE | 17.02.2014

February 18, 2014

European Car Industry - Alternative Energy: 1,000 European EV Quick Chargers Energized - by Philippe Crowe

Nissan has announced the milestone of 1,000 CHAdeMO quick chargers installed in Europe has been reached.

The 1,000th EV charging station was installed at Roadchef Clacket Lane Services in Surrey, UK.
The fast charging unit can recharge the batteries of compatible electric vehicles from zero to 80 percent charge in 30 minutes, and at zero cost.

Nissan said the installation of the fastest type of chargers dramatically increases the uptake and usage of electric vehicles. In Norway, Europe’s biggest EV market, the number of electric vehicles using the E18 highway increased eight fold in an 18 month period after a CHAdeMO quick charger was installed on the route.

The latest charger has been installed in collaboration with Ecotricity, a UK green energy specialist. The location south of London on the M25 motorway, considered one of the busiest in Europe, allows drivers west of London easy access to Kent and onwards into Europe“.

This is a huge landmark for zero-emission mobility, allowing a range of EVs, including the Nissan Leaf and forthcoming Nissan e-NV200 electric van, to quickly extend their journeys,” said Director of Electric Vehicles, Nissan Europe, Jean Pierre Diernaz. “The UK charging network is expanding rapidly and through our partner Ecotricity, customers are able to ‘refuel’ their car for free with wind and solar generated electricity.”

According to Nissan, this latest charger is part of a network of 195 chargers in the UK, which is forming electric corridors across the country, linking major towns and cities. In the UK, Nissan has been working with partners including IKEA, Moto, Roadchef, Welcome Break and Nissan dealers to create this rapidly growing network with 124 quick chargers installed in 2013.

Nissan explained the rate of installation of CHAdeMO quick chargers across Europe rose sharply in 2013, hugely increasing access for its Nissan Leaf customers. In 2010 there were just 16 quick charging points; this rose to 155 a year later and 540 in 2012. The 1,000 mark in 2013 will be dwarfed by the end of 2014 with over 1,800 quick charger points expected.

Investment in this Euope-wide development of infrastructure comes from Nissan and a multitude of partners in the energy field, including the Swiss multinational power company ABB, French quick charger manufacturers DBT, and the Portuguese EFACEC Corporation.

Read more: 1,000 European EV Quick Chargers Energized - HybridCars.com

Sochi Olympics Speed Skating: Jorrit Bergsma knocks off Kramer in Dutch 10,000 meters sweep

Bergsma: Beter als ik niet tegen Sven rijd
Sven Kramer and Jorrit Bergsma
Sven Kramer stayed in the right lane this time.

No matter. He was again denied a gold medal in the speedskating race he wanted more than any other.

With a stunner of a finishing kick, Jorrit Bergsma knocked off country man and the world's greatest distance skater, winning the 10,000 meters with an Olympic-record time on Tuesday. "I'm still dazed," Bergsma said.

Kramer gave away a sure gold in speedskating's longest event with an inexplicable mistake while changing lanes at the 2010 Vancouver Games.

This time, he simply got beat by — almost inevitably at the Sochi Games — a fellow Dutchman.
Bergsma turned in the fastest sea-level time ever, 12 minutes, 44.45 seconds, and shattered the Olympic record of 12:58.55 set by South Korea's Lee Seung-hoon four years ago.

Kramer settled for silver in 12:49.02. The bronze went to 37-year-old Bob de Jong.

While the order of finish didn't go as expected, the guys on the podium were no surprise at all.

It was another orange sweep, the fourth 1-2-3 finish for the Netherlands at Adler Arena, its speedskating medal haul climbing to 19 out of a possible 27.

Read more: Jorrit Bergsma knocks off Kramer in 10,000 meters - US News

February 17, 2014

Switzerland: EU halts Switzerland research and education ( euro 1.8bn) grant talks following anti-immigrant vote

The EU has suspended talks with Switzerland over its participation in EU research and education programmes because of the Swiss vote last week to curb immigration. 

Switzerland's access to millions of euros of EU funding is now at risk.

A European Commission spokesman said the Horizon 2020 research programme and Erasmus+ student exchanges were linked to freedom of movement.

Switzerland has blocked free access to its employment market for Croatians.

Switzerland is not in the EU but more than half of its exports go to the 28-nation bloc and it has adopted large sections of EU policy.

Horizon 2020 will provide nearly 80bn euros ($110bn) over seven years for research projects in the EU.

In the current programme Swiss participants have received more than 1.8bn euros in research grants. The first new grants are to be decided later this year.

Erasmus+ has a budget of 14.7bn euros and enables more than four million young Europeans to study and get work experience abroad.

Read more:  BBC News - EU halts Switzerland research and education talks

Britain -250 jihadists reportedly return to UK - "EU must expel Imams and Preachers discussing politics and inflammatory issues"

Around 250 British jihadists have returned to the UK after training and fighting in Syria, a senior Whitehall security official told the Sunday Times. Security services are monitoring the “extremist tourists”, fearing they might carry out attacks at home.

Ministers have been informed that more than 400 Britons went to Syria to engage in militant activities, and “Well over half of those who traveled out have come back,” the official told the Times.

Senior security officials say the number of “returnees” is now five times the previously reported figure, highlighting the growing threat of so–called ‘extremist tourists’ going to warzones and returning home hardened militants.

"For some, their jihad is done, others will help others travel to Syria, while others will raise funds for fighting," the Whitehall source said.

The security services are said to be closely monitoring the 250 returnees, who include several veteran hardliners who have fought in Afghanistan or Pakistan. Many others have participated in combat or received training in munitions or other skills applicable to terror operations, with some exhibiting a willingness to carry out attacks in the UK, security officials cited in the report said.

“There are a few hundred people going out there. They may be injured or killed, but our biggest worry is when they return they are radicalized, they may be militarized, they may have a network of people that train them to use weapons,” London police chief Sir Bernard Hogan-Howe told the paper.

Note EU-Digest: more attention needs to be given by the EU Commission, the EU Parliament and member state Governments as to some of the "sermons" preached by Islamic Imams and Preachers - especially those who discuss political issues and matters which are inflammatory and have nothing to do with religion. 

Read more: Op-Edge

Saudi Arabia - Islam: Imams exploiting politics in sermons should be fired - says Ministry of Islamic Affairs

JEDDAH - SAUDI ARABIA
The Saudi Arabian Ministry of Islamic Affairs, Endowments, Call and Guidance is in the process of imposing penalties on imams and preachers who discuss political issues and matters of creed or those who implicitly or explicitly defame specific individuals or states. Such penalties may include dismissal from job if violations are repeated, say sources.

The ministry has emphasized the fact that their role is confined to preaching and providing guidance in religious spheres and that some of them have given written undertakings pledging that they would not inflame public sentiment by discussing politics during Friday sermons.

The sources said there is a committee at the ministry entrusted with following up on such violations and reporting preachers who have taken advantage of their position to influence public opinion.

The ministry statement follows an incident on Friday at Al-Ferdaous Mosque in Al-Nahda district, Riyadh, where an Egyptian worshipper protested against a preacher denouncing Abdul Fattah El-Sisi, defense minister and army chief of Egypt.

Sheikh Ibrahim Al-Abdulaziz, a former Imam and Preacher, said that mosques are sanctified areas of worship. He said imams should follow the instructions given to them by the Ministry of Islamic Affairs.

The prayer against El-Sisi, according to one report, prompted the Egyptian to question the preacher, while he was giving the Friday sermon. This infuriated other worshippers who tried to push the Egyptian out of the mosque.

Imams exploiting politics in sermons face the sack | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.

February 15, 2014

Eurozone recovery still slow, but Germany and France doing better than expected

Europe's overall economy may be weak, but eurozone growth continues.

Indeed it was slightly stronger-than-expected in the bloc’s two biggest economies – Germany and France – in the final three months of last year.

Analysts said the growth was mainly driven by exports and investment.
German GDP expanded 0.4 percent from the previous quarter, France’s by 0.3 percent and Italy’s by 0.1 percent

The figures, from Eurostat, the EU’s statistics office, show 0.3 percent growth region-wide compared to the previous quarter.

Upwardly revised third quarter numbers meant France managed to avoid slipping back into recession and had growth of 0.3 percent for the whole of last year.

French company and public investment rose and household spending recovered. But the finance minister said faster growth was needed to create more jobs with unemployment at nearly 11 percent.

Italy, which is once again in political turmoil, dragged itself back to growth for the first time since mid-2011.

But the final quarter’s 0.1 percent expansion was not enough to keep GDP from contracting by 1.9 percent over the whole of 2013.

One positive sign is that – significantly – for the first time in almost three years, all of the six largest eurozone economies did manage quarterly expansions.

Read more: Eurozone recovery still slow, but Germany and France doing better than expected | euronews, economy

Russia: Since his ‘formal’ return to power in May 2012 – was he ever really away?

President Vladimir Putin has been eager to restore Russia’s superpower status to distract from domestic problems. Russian leaders have traditionally demonstrated Moscow’s clout first in the post-Soviet space, particularly in Eastern Europe.

The Council for Mutual Economic Assistance (COMECON) and the Warsaw Pact have today been replaced by the Eurasian Union and the Collective Security Treaty Organization (CSTO). The question is how should the EU respond to this new geopolitical competition with Moscow?

Faced with domestic difficulties, autocratic governments often strive for foreign successes to divert attention and shore up public support. This was the case when Argentina invaded the Falkland Islands in the early 1980s and Putin’s actions today are not much different. Russia is confronted with huge problems in education, housing and health services, not to mention the anarchy and bloodshed in the Northern Caucasus.

Well-educated young people are taking to the streets demanding a share of the Kremlin’s welfare.

Putin hasn’t addressed these domestic challenges head on, focusing instead on foreign policy. At first, Russia became increasingly isolated because of its stance on Syria and Iran, but thanks to clever Russian diplomacy and a hesitant U.S., Moscow achieved remarkable successes in 2013 like the chemical weapons deal on Syria and the interim nuclear agreement on Iran. And in Eastern Europe, Ukraine ‘chose’ to deepen co-operation with Russia instead of forging closer ties with the EU.

Eastern Europe is divided into two spheres of influence. The EU uses its Eastern Partnership (EaP) to promote co-operation with Armenia, Azerbaijan, Georgia, Moldova, Belarus and Ukraine. It is not a waiting room for EU membership, but a project to enhance these countries’ stability and prosperity and to ensure safe borders for the EU.

On the other side, Russia has the Eurasian Union-to-be (EaU) and the CSTO. For now, the EaU is nothing but a customs union that includes Russia, Belarus and Kazakhstan, but the Kremlin intends to bring in Ukraine and some other former Soviet republics to form a competitor to the EU. The CSTO is Russia’s military instrument in Eastern Europe and Central Asia and includes a military assistance clause to prevent an attack on any of its member states. The basis of Putin’s foreign and security policy objectives – as laid down in Russian security documents – is that Russia has privileged interests in the former Soviet republics and therefore the right to intervene.

The issues at stake in Eastern Europe are a complicated web of political, military, economic and energy issues. From the start, the Kremlin denounced the EaP as an unacceptable project, seeing it as the EU’s way of drawing Eastern Europe away from Russia and into the Western orbit. As a result, pro-EU governments in Moldova and Georgia suffered boycotts – as Ukraine, too, felt this last summer, before President Viktor Yanukovich realigned from Brussels to Moscow. In the same vein, Georgia’s intention to join NATO in 2008 was a step too far for Moscow and the Russian invasion of Georgia put an end to this plan, at least for many years to come.

On the economic front, energy rules. Despite the EU’s claims to have a common energy policy, Moscow successfully divides and rules the EU member states. The European Commission has launched a legal case against Russia’s energy giant Gazprom for monopolistic action in the new Eastern EU states, which are highly dependent on Russian gas. What’s more, Moscow is doing everything it can to thwart the EU’s project to construct pipelines directly to Azerbaijan and possibly Central Asia in order to wean itself from dependence on Russian gas. Russia’s own alternative pipelines to circumvent the current one through Ukraine – Nord Stream to Germany and South Stream around the Black Sea – are yet another way to try to undermine the EU’s common energy policy.

So how can the EU win the geopolitical game with Moscow? The answer to this is quite simple and is to be found in European unity and vigour. For too long Brussels has failed to do so and Moscow has exploited this with its ‘divide and rule’ policy in Europe. The EU should be much more aware of Russia’s foreign policy objectives and anticipate its actions. If the EU is more cognizant of Russia opposition to the EaP, then it could take measures to soften Moscow’s boycotts of EaP member states.

The EU claims to stand for democracy and human rights and Brussels should therefore go beyond merely making statements and actively support human rights groups and the political opposition in Russia as well as in Ukraine. And instead of bi-lateral energy deals with Moscow, all 28 EU member states together should sign one gas contract with Russia and collectively support gas pipelines to bypass the Russian ones.

With a genuinely cohesive energy policy, the EU will strengthen its political manoeuvrability vis-à-vis the Kremlin, and thus bolster its endeavours in the field of human rights and democracy. Such policies will show former Soviet republics that the EU has much more to offer them than Moscow’s alternative Eurasian Union.

Note EU-DigestMarcel de Haas is a Senior Researcher at the Netherlands Institute of International Relations Clingendael

EU-Digest

Italy: Matteo Renzi tipped to be new Italy PM as Letta quits

Matteo Renzi (39) tipped as new Italian PM
Italy is looking for a new prime minister again after Enrico Letta’s resignation was accepted by President Giorgio Napolitano.

Letta drove himself to the presidential residence, the Quirinale in Rome – amid yet more political turmoil in the country.

Letta announced on Thursday that he would stand down after a meeting of his centre-left Democratic Party (PD) voted in favour of changing the government.

The man expected to take over as prime minister is the new party leader Matteo Renzi, 39. He could be named premier as soon as this weekend, and would be the country’s youngest-ever leader.

The president is now beginning meetings with political parties to find a solution to the leadership crisis and pave the way for a new government.

There has been growing criticism over the slow pace of economic reform in Italy which left Letta increasingly isolated.

A low-key moderate, he was appointed in April last year to lead the cross-party coalition patched together after deadlocked elections had brought weeks of fruitless wrangling between rival parties.

Letta did not attend Thursday’s party meeting, which was brought forward from next week.

Read more: Matteo Renzi tipped to be new Italy PM as Letta quits | euronews, world news

Stock Markets Warning: Stocks Will Plunge by 50% this year

t is only a matter of time before the stock market plunges by 50% or more, according to several reputable experts.

“We have no right to be surprised by a severe and imminent stock market crash,” explains Mark Spitznagel, a hedge fund manager who is notorious for his hugely profitable billion-dollar bet on the 2008 crisis. “In fact, we must absolutely expect it."

Unfortunately Spitznagel isn’t alone.

“We are in a gigantic financial asset bubble,” warns Swiss adviser and fund manager Marc Faber. “It could burst any day.”

Faber doesn’t hesitate to put the blame squarely on President Obama’s big government policies and the Federal Reserve’s risky low-rate policies, which, he says, “penalize the income earners, the savers who save, your parents — why should your parents be forced to speculate in stocks and in real estate and everything under the sun?”

Billion-dollar investor Warren Buffett is rumored to be preparing for a crash as well. The “Warren Buffett Indicator,” also known as the “Total-Market-Cap to GDP Ratio,” is breaching sell-alert status and a collapse may happen at any moment.

So with an inevitable crash looming, what are Main Street investors to do?

One option is to sell all your stocks and stuff your money under the mattress, and another option is to risk everything and ride out the storm.

But according to Sean Hyman, founder of Absolute Profits, there is a third option.

“There are specific sectors of the market that are all but guaranteed to perform well during the next few months,” Hyman explains. “Getting out of stocks now could be costly.”


Read more: Warning: Stocks Will Collapse by 50

NSA Spying on Europeans: Specter of US spying looms large in Germany

NSA is always present
When the German version of the FBI needs to share sensitive information these days, it types it up and has it hand-delivered.

This time last year, it would have trusted in the security of email. But last year was before Edward Snowden and the public revelations of the scope of the National Security Agency's PRISM electronic intelligence-gathering program. After Snowden, or post-PRISM, is a new digital world.

"We're now carrying our information to our allies on foot," said Peter Henzler, the vice president of the Bundeskriminalamt, known as the BKA. He was speaking recently at a German Interior Ministry panel on the country's digital future. The focus of the panel was how to counter U.S. surveillance measures and what it will take for Germans to be safe again on the Web. "We're no longer using the open Internet."

The message is clear: The United States no longer can be trusted not to spy on any and every facet of German life and policy. Henzler's concerns might sound extreme, but he was hardly alone on his panel, and the worries appear to be an accurate reflection of the wider German, and even European, concern about the reach of the NSA's surveillance program.

Hardly a week passes here without some new revelation about the dastardly depths to which the American spy program invaded German privacy, or at least a new way in which to react to the scandal.

Last week, for instance, the news broke that the United States had tapped the cellphone of Gerhard Schroeder when he was the German chancellor from 1998 to 2005. Given that it's been four months since news broke that the same American surveillance program was tapping the cellphone of the current chancellor, Angela Merkel, and had been tapping her phone for several years before she was chancellor, the revelation could hardly have been surprising.

Merkel, after all, was seen as an American ally. Schroeder, who sharply criticized U.S. intentions and efforts in Iraq and was visibly uncomfortable in the presence of then-President George W. Bush, was seen as something less than an American booster.

But there are many more examples, beyond the news stories: Thirty-two percent of Germans tell pollsters they've either left or reduced their time on Facebook for fear of spying. German television ads note the peace of mind and freedom that come with email that doesn't leave European servers. Providers very publicly say that they now encrypt all email. Anti-surveillance NSA protests are common in Berlin.

Such thoughts aren't limited to Germany. A $900 million French deal with the United Arab Emirates for two new intelligence satellites appears to be in doubt after the buyers noticed U.S. components in the French satellites that they feared could compromise their data.

Florian Glatzner, a policy officer with the German Federal Consumer Protection Agency, said they were fielding a lot of consumer questions about how to ensure that their communications and data were safe from the electronic spying of the NSA.

"A lot of the trust in the big Internet companies is gone," he said. "And most of the big Internet companies were based in the United States."

Read more at msn news

February 13, 2014

European Technology: A €63 billion EU app boom. Nearly 5 million jobs in European app sector by 2018, says EU report

Apps=Skills=Jobs
The EU's app sector has gone from zero to digital superhero in less than five years. By 2018 it could employ 4.8 million people and contribute €63 billion to the EU economy according to a report presented in Brussels today.

The study, carried out by GIGAOM and NUI Galway for the European Commission, shows that Europe's app developers are up to the challenge of taking the global lead.

 Currently, EU and North American developers generate the same levels (42% each) of app revenues in crucial EU and US markets. Although the future is bright, developers have raised concerns about the skills gap, connectivity and fragmentation which could put the app boom at risk

Today the app economy employs 1 million developers, and 800,000 people in marketing & support posts.

This could rise to 2.7 million developers + 2.1 million support staff by 2018. EU buyers and advertisers spent €6.1 billion on apps in 2013, 30% of total global app spending, growing to €18.7 billion in 2018. Consumer spending combined with advertising and contract work could lead to €63 billion annual revenue for the app sector within five years.

Neelie Kroes, Vice-President of the European Commission, said "In the face of increasing youth unemployment, these figures give me new hope. The app sector is one area of the digital economy where Europe can really lead. But we have to address concerns about connectivity and fragmentation – yet another reason to complete the telecom single market!"

28 EU leading companies created 40% of the top 100 grossing apps in the EU and US. Three of the top-five companies are Nordic games developers (1st King.com, 2nd, Supercell, 5th Rovio)with German, French, Spanish and UK app developers also finding success outside their native markets. 

Growing market, growing jobs: In 2013, developers earned €11.5 billion making apps for consumer goods, banking, media, retail and other clients. They can expect to earn up to €46 billion through contracts of this nature in 2018. The app boom is creating jobs, for example contract developers Golden Gekko (London/Barcelona) plans to grow its staff 40-50% next year and London-based Grapple Mobile was a 3-person firm three years ago, employs 120 now, and intends to double next year.

February 12, 2014

THE 2014 EUROPEAN ELECTIONS: THIS TIME IT’S DIFFERENT- MORE DEMOCRACY LESS BUREAUCRACY

Vote and let your voice be heard
Elections to the European Parliament will be held in all member states of the European Union (EU) between 22 and 25 May 2014 (depending on the dates set by the national governments), as decided unanimously by the Council of the European Union.     

It will be the eighth Europe-wide election to the European Parliament since the first direct elections in 1979.

The countdown has started: there are 100 days to go until the first polling stations open for the 2014 European elections. In this second biggest democratic exercise in the world, close to 500 million people can cast their vote for a new European Parliament. The 751 MEPs taking up their seats in July will not only set the course of European policies for the next five years but also elect the leader of the EU's executive body, the European Commission President.

For the first time, the composition of the new European Parliament will determine who will lead the next European Commission, the EU's executive body, which initiates legislation and supervises its implementation. Under the new rules, EU government leaders, who will propose a candidate for the post of the future Commission President, must do so on the basis of the election results.

The European Parliament will elect the new Commission President by a majority of the component members, i.e. at least half of the 751 MEPs to be elected (376). European political parties will therefore, or have already, put forward their candidates for this leading position in the EU before the European elections, thus allowing citizens to have a say over next Commission President.

The new political majority emerging from the elections will also shape European legislation over the next five years in areas from the single market to civil liberties.

The Parliament - the only directly elected EU institution - is now a linchpin of the European decision-making system and has an equal say with national governments on virtually all EU laws. Voters will be more influential than ever. 

If you are an EU national living in another EU country, you have the right to vote and stand as a candidate for the European Parliament elections in that country. Check for details with your Embassy or Consulate.

Vote and let your voice be heard.  The EU Belongs to all of us.

To get a Press kit click here.

EU-Digest

Corruption Worlds most important economic problem - how does your country score?

corruption - a global economic disease
The Corruption Perceptions Index 2013 serves as a reminder that the abuse of power, secret dealings and bribery continue to ravage societies around the world.

The Index scores 177 countries and territories on a scale from 0 (highly corrupt) to 100 (very clean). No country has a perfect score, and two-thirds of countries score below 50. This indicates a serious, worldwide corruption problem.

The world urgently needs a renewed effort to crack down on money laundering, clean up political finance, pursue the return of stolen assets and build more transparent public institutions.

Go to the link below and see how your country scores.

For the complete report go to transparency international

The Corruption Perceptions Index 2013 serves as a reminder that the abuse of power, secret dealings and bribery continue to ravage societies around the world.
The Index scores 177 countries and territories on a scale from 0 (highly corrupt) to 100 (very clean). No country has a perfect score, and two-thirds of countries score below 50. This indicates a serious, worldwide corruption problem. Hover on the map above to see how your country fares.
The world urgently needs a renewed effort to crack down on money laundering, clean up political finance, pursue the return of stolen assets and build more transparent public institutions.
- See more at: http://www.transparency.org/cpi2013/results#sthash.cP3Rod0A.dpuf
EU-Digest

Britain: Almost as many Brits living in other EU countries than there are EU citizens living in Britain?

Is a British suicide in the making ?
Factcheck EU argues that Graham Watson, a Liberal Democrat member of the European Parliament, at  a time when the British public is particularly sensitive to issues regarding immigration into the UK, has defended  one of the bastions of the European Union, the principle of free movement, as a reaction to the British Prime Minister's intent to "crack down on European immigration rules."

To support his opinions, Mr. Watson argues that targeting specific nationalities when imposing restrictions on free movement could spark retaliations on British citizens living in other member states of the European Union. Mr. Watson reminds the British public that "there are almost as many Brits living in other European countries than there are other Europeans living in Britain."

Factcheck EU says this statement is not correct and base it on the following arguments.

A report on "Population and Social Conditions" published by Eurostat for the year 2012 states the figure is close to 1 million, which is less than the amount of other EU nationals residing on British soil. Factcheck EU then jumps one year ahead and states the most recent figures from Eurostat indicate that there are now over 2.3 millio European Citizens living in Britain..

Note EU-Digest: Factcheck is comparing Apples with Pears. What they do not describe is that either way the numbers are both substantial and a unilateral move by Britain to step out of the EU would be an economic disaster for Britain and the more than a million plus Brits living in the EU, not to mention the millions of Brits who own vacation homes in the European Union. 

Jim Cowles, Citi chief executive officer for Europe, Middle East and Africa, recently told the British Financial Times that there was "mounting concern" among clients about their ability to use the United Kingdom as a regional hub if the country exits the EU.

Bottom line Britain is far better off in the EU than outside it.

EU-Digest