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Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts

September 15, 2016

US-Israeli military arms deal provides 15-20 percent of Israels Military budget

The United States military aid to Israel amounts to a whopping 15 - 20 percent of Israel's annual military budget. Despite US largesse, a powerful political lobby in Washington enables Israeli intransigence.

Israel is procuring all kinds of arms from the United States, but most important for Israel has been the advanced combat aircraft, the F-15 and the F-16. And also very important now, the new F-35, the most advanced combat aircraft the US is willing to export to anyone. That is really significant for Israel because those weapons are often equipped with subsystems coming from the Israeli arms industry itself, such as the bombs and missiles. Those platforms are used to reach deep into the territory of an enemy. That is part of the core of Israeli military potential.

The Obama administration’s announcement that the US and Israel have agreed on a record new package of at least $38 billion in US military aid over a 10 year period is an effort to appease the US arms industry, according to an American writer and researcher who is based in Washington, DC.

Walt Peretto made the remarks in an interview with Press TV on Wednesday, a day after the Reuters news agency reported that the 10-year pact between Washington and Tel Aviv is expected to be signed within days.

The deal will represent the biggest pledge of US military assistance ever made to any foreign party, American and Israeli officials told Reuters.

EU-Digest

July 1, 2016

Spain: Brit expats in Spain stunned and fearful after Brexit win

Britain has voted to leave the EU, by an expected margin of 52 percent to 48 percent, sending shockwaves around Europe.

After it initially appeared that the "Remain" campaign was on course for victory, the results that drifted in throughout the early hours of Friday morning, proved that many opinion polls, the bookmakers and political experts had got it wrong.

The result send the value of the pound crashing, recording it's biggest drop in over 30 years. Financial forecasters believe it will tumble even further throughout the day.

While the result will have major bearing on the future of Europe and on the futures of Britain's political parties, it will also have a major impact on the lives of many Brits living throughout the EU.

The fall in the value of the pound will have severely hit the value of pensions - often the only form of income for British expats and may make it unaffordable for many to stay abroad.

“I just can’t believe it, what will happen to the UK now and to our rights as Brits living and working abroad?” said Mary Reid, a primary school teacher from the Midlands living in Madrid.

“One of the first things I am going to do is consult a lawyer and see where I stand on getting Spanish nationality,” said the mother-of-one.

Carrie Frais, the Barcelona-based founder of MumAbroad Spain voiced the fears of many expat mothers who had chosen to bring up their children in Spain.

"I am truly shocked by the outcome of the referendum. Speaking on behalf of many British mothers who have chosen Spain as their adoptive country we know how important the UK is to the livelihoods and jobs of those working in the tourism and property sector, not to mention all the other thousands of industries which have gained from British investment here," she told The Local.

"The weakening of the pound is bound to have a significant and immediate effect and no-one can be sure of other restrictions imposed on UK investment in Spain in the future, not to mention the future of British people living and working here. It is indeed worrying times," she said.

Becoming a Spanish citizen requires giving up your British nationality and passport. 

This form of requiring nationality requires the person concerned to have been a legal resident of Spain for an uninterrupted period of ten years immediately prior to the application

According to Spain’s Foreign Office applicants must prove “good citizenship” and “a sufficient degree of integration in Spanish society” - which includes being able to speak Spanish and taking part in social activities with Spaniards.

Applications must be submitted to the Civil Registry of the place of residence.

Once you have been approved, you have to swear your loyalty to the King and promise to obey the Spanish constitution and laws. 

You also have to renounce your previous nationality.

One way to drastically shorten the waiting time to gain Spanish nationality is to be married to a Spaniard.

If you have been married to a Spaniard for at least one year, you can apply for Spanish nationality, also via the Civil Registry in your place of residence.

You have to still be married to a Spaniard upon application, no separated or divorced people need apply.

Widows and widowers of Spaniards can also immediately apply for Spanish citizenship.

Brit expats in Spain stunned and fearful after Brexit win - The Local

June 10, 2016

Britain: EU referendum poll tracker: Is Britain heading for Brexit and what does the UK think of Europe? - by Ann Gripper

ICM, YouGov, Ipsos Mori, ORB, ComRes and other pollsters are keeping track of voters' intentions to Leave or Remain in the referendum on Britain's membership of the European Union - but will they get it right?

Read complete report: EU referendum poll tracker: Is Britain heading for Brexit and what does the UK think of Europe? - Mirror Online

May 16, 2016

Half of Europeans think Britain will leave the EU "but poll shows all of them think their country should stay in" – by Vince Chadwic

BREXIT
Half of Europeans in eight EU countries think Britain will vote to leave in the June 23 referendum, according to a poll published Monday.

The Ipsos MORI survey also found that almost half of those questioned think their country should follow Britain’s lead and hold a referendum on EU membership.

The online survey of between 500 and 1,000 adults under the age of 65 in eight countries, plus the U.K., found 45 percent want an EU referendum, and 33 percent would vote to leave if given the choice today.

In Italy, 48 percent would vote to leave in a hypothetical referendum, compared to 41 percent in France and 39 percent in Sweden. Only 22 percent of Poles and 21 percent of Spaniards would vote to go.

“A topic that unifies [Poles] to a large degree is our membership of the European Union,” Polish President Andrzej Duda told Polsat news in a recent interview. “There are no serious politicians today who say that we should leave the European Union.”

Do you think your own country should hold an EU referendum?

 










Blue Yes - Red No
 In the event of an EU referendum in your own country, how would you vote?











Blue Remain: Red: Opt out

SOURCE: Ipsos MORI Brexit poll May 9

Read more: Half of Europeans think Britain will leave the EU – POLITICO

Euroskepticism’s empty promises - not able to spell out their alternatives to European integration

With so much effort aimed at dismantling the European project, it is time to ask the Euroskeptics to spell out their alternatives to European integration. Of course, many conservative and libertarian Euroskeptics, such as Daniel Hannan, stress that their goal is not to destroy political cooperation on the continent, or even to return to protectionism.

What they want is to return to a Europe made up of sovereign, democratic and self-governing nation states that are cosmopolitan and open to trade, investment, and, to a large degree, to immigration.

Boris Johnson, for example, famously identified himself as being “about the only politician … who is actually willing to stand up and say that he’s pro-immigration.” The EU, argue the skeptics, is neither a necessary nor sufficient guarantee of such openness. The EU, they say, is a distortion that opens market and migrant flows within Europe, while jealously guarding itself against competition from overseas.

Born out of the ashes of World War II, the aim of the European integration project was to make war between Europe’s leading nations impossible. It would do this by tying them together economically and politically, in what should have become a European federal state.

The EU’s critics like to emphasize that the premise is outdated, and that the animated policy debates in the 1940s and 1950s are now obsolete. As L.P. Hartley’s proverbial quote goes, the past is a foreign country — they do things differently there.

In reality, any alternative to being strong and united as one in Europe, is doomed to eventualy  backfire, 

Unfortunately many shortsighted Euroskeptics seem to believe that "charity starts at home".

Read more: Euroskepticism’s empty promise – POLITICO

April 14, 2016

EU: Corruption costs EU ‘up to €990 billion a year’ – by Ryan Collin

EU Corruption costs: close to  € 1 trillion a year
The EU has a corruption problem that could cost it up to €990 billion a year, according to a study commissioned by the European Parliament and released on Monday.

Corruption in the EU comes in many forms and has multiple economic, social and political effects, according to the Cost of Non-Europe in the Area of Corruption Study by RAND Europe. Based on three scenarios using different methodologies that included both direct and indirect effects, the study found the EU suffers losses in its gross domestic product that range between €179 billion and €990 billion each year.

The figures are much higher than a 2014 estimate by the European Commission of €120 billion. However, the Commission’s study focused only on direct effects of corruption.

“Corruption is a big black hole at the heart of the European economy,” said Carl Dolan, director of Transparency International. “If companies see the public procurement process is rigged then they are not going to take part in that bid and therefore the public loses out because these aren’t competitive tenders.”

The study found that corruption related to public procurement was estimated to cost nearly €5 billion per year. Procurement corruption includes deliberately removing companies from the bidding process so there is only one viable candidate and limiting the amount of time a company has to respond to a tender for a new contract.

To reduce it, RAND Europe suggested that the EU implement a Union-wide e-procurement system, which would bring down the cost of corruption by an estimated €920 million. Another measure to cut corruption would be establishing a European Public Prosecutor’s Office, the study said. Such an office would investigate corruption cases and could reduce corruption costs by €0.2 billion per year.

Read more: Corruption costs EU ‘up to €990 billion a year’ – POLITICO

March 21, 2016

Cuba-USA: A new chapter in Cuba -US relations: History happening again right before our eyes - by RM

Viva Cuba - Viva USA
History is  happening right before our eyes - Cuba-USA: March 21, 2016 . The first day of Spring and also signalling a new beginning in a long-rime historic and often turbulent relationship between the USA and Cuba,

For me personally it brings back many memories, going back to when I was a kid visiting Havana, Cuba in 1957, with my parents ( two years before the Castro Revolution) - on the way from La Guaira, Venezuela to Le Havre, France.
Cuba-USA  -A new Chapter -Raoul Castro and Barack Obama -  

Cuba at that time was a US backed "Republic" ruled by Fulgenca Batista, a ruthless dictator with close links to the US Mafia. He ruled Cuba with an iron hand, while the mob controlled all the night-life, prostitution and other criminal activities. 

The "real economy" of Cuba at that time was mainly in the hands of US multi- nationals, as was over 50 % of the sugar industry, 

The US multi-national communications giant of that time, ITT,, controlled all the communication systems on the Island. 

Fast Forward to 1980 - working for a multi-national aluminum corporation based in Pittsburgh, I was assigned to organize a "strategy planning" meeting for our Caribbean External Relations Managers. We chose the beautiful Florida Island of Key-West to hold the meeting.

Again history happened right before our eyes, when we literally saw from the hotel we were staying in Key West how droves of Cuban refugees started arriving on Key West shores - this eventually became known as the Mariel Boat Lift. 

And here today we are again in Florida, April 21,2016, watching live scenes form Cuba, with Raoul Castro and Barack Obama starting a new chapter in the Cuban US relationship - we can only hope that Cuba and the US will have learned from their past mistakes, and that greed will not, once again, become the driving force of this relationship.  

Viva Cuba, Viva USA !

 
EU-Digeswt

February 17, 2016

EU referendum: Pro-European Union group says Brexit would cost London £13.9bn ( € 17.80bn)

Staying in the European Union will deliver a “permanent boost” to the capital's economy, according to new figures released by pro-Europe business group London First.

Analysis conducted by the Centre for Economics and Business Research (CEBR) for the lobby outfit says that EU membership could add £13.9bn a year and 75,000 jobs to London's economy by 2030.

EU referendum: Pro-European Union group says Brexit would cost London £13.9bn | City A.M.

January 11, 2016

Political Mismanagement : 10 Economic, Political and Social Global Forecasts Indicate Troubled Times Ahead In 2016 - by RM

The legacy of a totally failed Middle East Policy
As a wise man once said "Without Freedom Of Speech There Are Only Official Lies"

Below links to 10 reports which indicate that the overall state of our globe in 2016 does not look very rosy.  Click on the headline to get the report.
 










Change however lies in the hands of the people, and if politicians have made life worse rather than better for you - get rid of them. Don't sit on the sidelines staring at your navel or pointing your finger at others.   

After all : "The health of a democratic society may be measured by the quality of functions performed by its private citizens" - Alexis de Tocqueville

EU-Digest

November 17, 2015

Paris attacks: Where does Isis get its money and arms from? - by Tom Brooks-Pollock

Jeremy Corbyn posed a series of rhetorical questions when asked whether bombing Isis following the Paris terror attacks would make a significant difference to the situation.

In an interview with Lorraine Kelly on ITV, the Labour leader answered "probaby not", adding: "Who is funding Isis? Who is arming Turkey? Who is providing safe havens for ISIS. You have to ask questions about the arms everyone has sold in the region."

The Paris attackers were armed with AK-47s and identical suicide vests, while police seized a rocket launcher and a huge cache of weapons in terrorists raids in Lyon following the attack. Some are said to have been trained in Syria.

So where does Isis get its money, guns and bombs, both in Europe and in the Middle East?

To a large extent Isis is now funding itself – through oil sales, kidnap ransoms, smuggling, extortion, taxes, looting, bank robberies.

When it was starting out, Isis was ‘seed funded’ by wealthy donors –individuals and charities from across the Middle East, especially Saudi Arabia, Qatar and Kuwait.

At first, the governments of the Persian kingdoms openly gave money to the opponents of Syrian President Bashar al-Assad, including Isis. This has since become politically and diplomatically incorrect – but large amounts of money still finds its way to Isis from wealthy individuals from the Persian gulf.

Note EU-Digest: Wouldn't it be far more effective if the West and specially the US, which probably has the worlds most sophisticated surveillance and electronic spy network, also starts gathering information on who are buying ISIS commodities and where ISIS buys their weapons?  Nothing would work faster in stopping their maniactic activities than closing their access to financial sources and putting those who buy and sell from them in jail. Then again, this information could probably open a can of worms for the West?

?

Read More: Paris attacks: Where does Isis get its money and arms from? | World | News | The Independent

November 6, 2015

Migrants: EU forecasts three million migrant arrivals by 2017

The EU Commission has said it expects three million migrants to arrive in the 28-nation bloc by 2017. The migrant influx is expected to provide a small boost to the economy, the EU's economic commissioner said.

The European Commission, the EU's executive arm, published its European Economic Forecast for 2015 to 2017 on Thursday, stating that "three million persons" are expected to arrive in the 28-nation bloc by 2017.

"This corresponds to an increase in the population of 0.4 percent after taking into account that some asylum seekers will not qualify for international protection," the report noted.

The EU's executive body added that it expects one million arrivals in 2015, with another 1.5 million in 2016, until the rate drops to half a million in 2017.

EU economic commissioner Pierre Moscovici said that the surge in migrant arrivals could provide a small but noteworthy boost to the bloc's economy.

"There will be an impact on growth that is weak but positive for the EU as a whole, and that will increase GDP (gross domestic product) by 0.2 to 0.3 percent by 2017," Moscovici said in a statement on Thursday.

Read more: EU forecasts three million migrant arrivals by 2017 | News | DW.COM | 05.11.2015

September 5, 2015

What's the greatest risk to Turkey's economy? - by Barın Kayaoğlu

Any one of the following problems would ring alarm bells  for an emerging market: a slowing economy,rising inflation,distrustful  citizens exchanging local currency deposits for dollars whenever possible, rising tide of violence scaring away foreign  tourists and hurting hard currency reserves and concerned foreign  investors eyeing the exit because of a bearish stock exchange and a possible hike in interest rates by the US Federal Reserve.

The Turkish currency, which had an average value of 1.90 to the dollar, is likely to decline further and surpass the three-lira threshold soon. “Never mind three, it could even be tr/dolar-3-lira to the dollar,”  wrote Mert Yildiz, a senior economist at the prestigious economic and  financial analysis firm Roubini Global Economics.

According to one  report, because the AKP has used dollar figures to boast of its role in  the “Turkish economic miracle,” the bleeding in the lira means Turkey could lose its place in the G-20, the group representing the world’s top 20 economies.

<a href="http://www.al-monitor.com/pulse/originals/2015/08/turkey-economy-political-uncertainties-greatest-risk.html">Read more: What's the greatest risk to Turkey's economy? - Al-Monitor: the Pulse of the Middle East</a></div>

Read more: What's the greatest risk to Turkey's economy? - Al-Monitor: the Pulse of the Middle East

August 10, 2015

Germany: Boost for German industrial orders

Strong demand from abroad has helped boost German industrial orders. According to figures from the economy ministry contracts for goods from Europe’s largest economy were up 2.0% on the month.

The increase for industrial orders was the biggest in the April-June period since early 2011 despite a slowdown in China and uncertainty caused by the Greek debt crisis.

A breakdown of the data showed factories received 4.8 percent more bookings from abroad while domestic orders fell by 2.0 percent.

“Boom. German industrial orders just defied any concerns about a slowdown in the economy,” was one economist’s reaction.

Read more: Boost for German industrial orders | euronews, economy

July 6, 2015

The Netherlands: A Look At The World’s High-Tech Startup Capital - by Conrad Egusa and Steven Cohen

Behind London and Berlin, the Dutch startup scene is already considered to be one of the most prominent in Europe. (If it feels unfair to weigh an entire country against individual cities, consider that the Netherlands has 17 million people crammed into an area half the size of South Carolina.

Startup Juncture reported 75 major deals in 2014, for a total of roughly $560 million in investment. Ten companies raised over $9 million. In the past few years, especially, each successive quarter has seemingly brought a new standard for sheer volume of activity. The road to this point has been long and deliberate, and Dutch entrepreneurs deserve credit for what they’ve managed to achieve thus far.

And yet, to herald Dutch innovation as it currently stands is to unveil a project that’s still only just underway.

The Dutch, on the whole, speak better English than probably any non-native population in continental Europe, one of the hallmarks of a consistently excellent education system that also scores among the highest worldwide in math and science metrics. Strong economic foundations in industry and commerce offer a dependable framework for continued growth.

And under the proven leadership of Neelie Kroes, the so-called “Internet-Tsar” of Europe, the government’s recent commitments to tech entrepreneurship may mark a bellwether of a new era in startup proliferation.

Read more: The Netherlands: A Look At The World’s High-Tech Startup Capital | TechCrunch

June 9, 2015

The Netherlands: Dutch economy fully recovers from financial crisis - by Janene Van Jaarsveldt

By the end of this year the Dutch gross domestic product is expected to top the real level seen in 2008 for the first time since the financial crisis. This is according to De Nederlandsche Bank’s latest half-yearly forecast, which was published on Monday.

According to the forecast, the Dutch economy will grow a projected 2 percent this year, the highest figure recorded since 2008. The bank expects that the Dutch economy will, on average, maintain this growth pace in 2016 and 2017, which means that the economic activity will develop more favorably than previously foreseen.

Exports remains the driving force behind the economic growth. The bank expects that the international environment will improve further, partly due to the depreciation of the euro, low level of oil prices and a pick-up in world trade growth.

Domestic spending will also contribute to economic growth – a development unseen since 2011. Private consumption will show a significant increase of 2 percent this year, for the first time since the credit crisis broke out. This can be attributed to a strong increase in real disposable income and improved sentiment.

Read more: Dutch economy fully recovers from financial crisis - NL Times

May 18, 2015

Turkey: Economy Depressed - Nearly 14,000 companies close in 4 months says TOBB

A total of 13,926 commercial enterprises closed down between January and April of this year, according to a statement released by the Turkish Union of Chambers and Commodity Exchanges (TOBB) on Friday.

TOBB also cited a decline in the number of new enterprises founded in April compared to the previous month. The number of firms closing down in April of this year increased 6.43 percent compared to April of last year.

During this period 24,094 firms and cooperatives were founded in Turkey. A total of 1,557 enterprises were founded by foreign nationals, with more than a quarter of these being Syrian citizens.

This week it was reported that major clothing chain Seven Hill was declared officially bankrupt, while the Elgin Group, a prominent citrus exporter, went under after accumulating TL 300 million in debt.

A number of high-profile firms have gone bankrupt this year, particularly those holding debt in foreign currency that has rapidly expanded as the lira weakened during the first four months of the year.

Read more: TOBB: Nearly 14,000 companies close in 4 months

May 17, 2015

Turkey - elections: Turks Are Wondering if Their President Is Insane

President Erdogan, who is supposed to be above politics, is up to his eyeballs in a campaign to win constitutional changes that give him unprecedented power. 

It’s less than four weeks to go before parliamentary elections in Turkey on June 7, and it looks like President Recep Tayyip Erdogan is panicking. Or worse.

A popular refrain among his political opponents, and on the street, is that Erdogan has lost his marbles and is driven by an insatiable appetite for power. Ever since he moved into a lavish 1,100-room palace in Ankara last year, Erdogan has been accused of succumbing to an out-of-control urge for grandeur.

Kurdish politician Abdullah Zeydan says the president “thinks he is a sultan.” Meral Aksener, a nationalist politician and deputy speaker of parliament, claims Prime Minister Ahmet Davutoglu was telling people behind closed doors that Erdogan “is out of his mind.”

“Obviously, there is panic,” said Yavuz Baydar, a respected journalist.

At a minimum there is frustration for the president of this country with huge strategic importance, which has the second largest army in NATO and borders Iran, Iraq and Syria or, if you will, the Islamic State.

Over the course of 12 years in power, first as prime minister and since last year as president, Erdogan has overseen unprecedented economic stability and growth in Turkey, trimmed the power of the military, with its long history of coups and its reputation as “the deep state,” and entered into an important dialogue with Kurdish politicians and even Kurdish rebels.

But polls say Erdogan, 61, will probably fail to get the majority he wants to push through sweeping constitutional changes to give himself unlimited but as yet unspecified power as president.

The economy has grown sluggish of late, unemployment is on the rise, and the political opposition is resurgent, all of which spells trouble for Erdogan’s ruling Justice and Development Party (AKP). Some polls suggest the AKP could even lose its majority in parliament.

Read more: Turks Are Wondering if Their President Is Insane - The Daily Beast

March 15, 2015

Greek Drama: Après nous, le déluge. "Italy, Spain to follow if Greece exits eurozone", says Greek defense minister

Image result for Cartoons About Greece
How to glue this old Vase again?
Greece's Defense Minister Panos Kammenos has said his country's exit from the eurozone could be followed by Italy, Spain and even Germany. Kammenos' interview comes amid lack of progress in Greece's bailout plan.

"If Greece explodes, Spain and Italy will be next and then at some point, Germany. We therefore need to find a way within the eurozone, but this way cannot be that the Greeks keep on having to pay," Kammenos told Bild.

Instead of a bailout, Greece needed a debt "haircut" like the one Germany's creditors had to accept in 1953, Kammenos proposed. He also argued that Berlin should pay World War II reparations to Athens. "All European countries have been compensated for crimes committed by Nazis, except for Greece," Kammenos said, referring to the gold Nazi soldiers brought back from Athens during the war.

The defense minister also accused Germany of "interfering" in its domestic affairs. His criticism was aimed at German Finance Minister Schäuble, who earlier warned of a "Grexident" which could push Athens out of the euro.

"I don't understand why he turns against Greece every day in new statements. It's like a psychological war and Schäuble is poisoning the relationship between the two countries through that," he said.

Note EU-Digest: Instead of blaming everyone else Greek officials should realize and admit that the reason they are in trouble is because of their own mismanagement of the country:They lied about their financial figures in order to join the euro-zone, they have out of control corruption, their civil servants are over payed and receive more perks than those in any other EU nation, the Greek tax system does not work and some of the richest people in Greece never pay any taxes, and last but not least, work ethic certainly is not one of the greatest assets of the Greek labor force. .

Read more: Italy, Spain to follow if Greece exits eurozone, says Greek defense minister | News | DW.DE | 14.03.2015

February 25, 2015

Spanish Economy: Spain’s Prime Minister Mariano Rajoy talks up economic recovery in state of the nation address

Spain’s Prime Minister, gave his annual state of the nation address to the lower house of Spain’s Parliament.

Two thousand and fifteen is a critical year for the prime minister and his centre right People’s Party.

There is a general election in December preceded by local and regional polls in the spring. The electioneering it would appear has got underway.

Read more: Spain’s Prime Minister Mariano Rajoy talks up economic recovery in state of the nation addresss

January 5, 2015

The future of Europe - Navel Staring European Politicians - Mrs Merkel the only exception with vision

Mrs. Merkel - a true European visionary with political skills
An Observer editorial notes: "Seventy years after the founders of modern Europe set out to bring stability, unity and prosperity to a war-ravaged continent, Europe and its principal political manifestation, the European Union, face a renewed, potentially defining struggle against the re-energised forces of internal division and fragmentation and external hostility and encroachment.

The scale of this challenge has yet to be fully appreciated. Its outcome is wholly uncertain. In consequence, 2015 may prove a fateful year for all the peoples of Europe.

The challenge comprises many elements, chief of which is whether the politics of austerity will be replaced by a more flexible, people-friendly economic regimen. Austerity, mainly in the form of public spending cuts and attempted deficit reduction, has wrought huge human and social damage. One key measure of pain is unemployment. In Spain, joblessness stands at around 23%. In Greece, the figure is 25%. In some areas of France and Italy, youth unemployment topped 40% at its highest point. Across the EU in 2013, 26 million people were unemployed, or one in eight of all workers. Many millions more are underemployed.

Austerity has caused tremendous political as well as social strain. The tough line dictated by chancellor Angela Merkel of Germany, who will arrive in London this week, is increasingly resented and there are clear signs of push-back. France’s new prime minister, Manuel Valls, introduced a €30bn reform package designed to boost business and jobs. His boss, President François Hollande, an old-school socialist, openly reviles Merkel’s “neoliberal” policy and its main underpinning, the European stability pact governing national budgets.

“To reform is to affirm our priorities, while refusing austerity,” Valls declared. Another newcomer, Italian premier Matteo Renzi, described as “Merkel’s most dangerous rival”, also links structural reform to a loosening of EU rules, notably Merkel’s holy grail, the 2012 fiscal pact. In November, both countries won budget reprieves from the European commission.

Still the only European leader who can credibly claim international statesman stature, Merkel, who is coming to London on Wednesday for talks with David Cameron on a range of issues, including the European economy, faces increasing criticism at home, not least from her centre-left vice-chancellor and coalition partner, Sigmar Gabriel. He argues the rise of right- and leftwing populism across Europe can only be checked by rapid economic improvements.


Nor can Merkel count on useful support from the new European commission president, Jean-Claude Juncker, or, more surprisingly, from Britain’s government, fellow champion of austerity and no friend to Hollande. In more skilful hands, David Cameron’s calls for EU reform might have meshed well with German priorities for sound money and stability, but Cameron has recklessly squandered European alliances and opportunities. In any case, he may soon be out of office.

While recent indicators suggest the worst of the recession is over, the full extent of the political fallout at grassroots level across Europe is only now becoming apparent. Elections this year in Greece, Spain, the UK, Denmark, Finland, Poland, Portugal and Estonia will provide further proof of the fragmentation of postwar consensus politics as erstwhile minority parties come to the fore.

In Britain, Ukip, the Greens and the Scottish Nationalists are aiming to usurp the traditional centre-left and centre-right parties. Likewise in Greece and Spain, it seems the centre cannot hold against a surge in support for the populist, anti-austerity leftwing insurgents of Syriza and Podemos respectively. In Sweden, the two mainstream parties, desperate to keep the far-right Sweden Democrats out of government, conspired to form a Merkel-style grand coalition, thereby effectively denying voters real choice. Finland faces a similar dilemma over its hard-right, anti-immigrant party.

Last year’s European parliament elections revealed unprecedented, pan-European dissatisfaction with politics as usual, but Brussels took scant notice, installing Juncker, a quintessential establishment figure, and creating a centrist coalition in parliament. Out of touch hardly describes such complacent behaviour. The significance of the rise of Europe’s new parties can no longer be denied, nor can they be dismissed as mere, temporary protest movements.

Yet Europe’s new politics, organic in nature and fast evolving, cannot be easily quantified or defined. Some, such as the Pegida demonstrators in Germany, are motivated by racist and anti-Muslim views. Merkel was entirely right last week to condemn them. But a new poll showed one in eight Germans sympathises with Pegida. Such views have a more pernicious, formal presence on Germany’s political stage in the shape of the anti-euro, anti-foreigner Alternative für Deutschland, which is eclipsing the old Free Democrats in the way Ukip may eclipse Britain’s Liberal Democrats.

In each country, new parties produce new imponderables. In Greece, for example, the growth of leftwing radicalism is in part a response to the advancing neo-Nazis of Golden Dawn. In the case of some of Europe’s secessionists, meanwhile, self-determination and economic justice have sometimes been confused with an unattractive, exclusionary nationalism. There is one constant: everywhere, it seems, immigration is an issue of concern.

The overall effect of these powerful and often conflicting currents is plain: in prospect is an unstable landscape of weak and fragile national governments, escalating friction over EU policies, intensifying north-south eurozone strains and a growing inability to present a united European front to the world.

A united front is required more than ever, as Europe faces the triple challenge of mass movements of people, Russian aggression and Islamist extremism. Almost alone among Europe’s leaders, Merkel continues bravely to make the case for accepting refugees from conflict in Syria, Libya, Iraq, Somalia and elsewhere. But as the plight of asylum-seekers trapped on the Ezadeen, which arrived in Italy yesterday, again demonstrated, this is an enormous international problem.

Most European states, including Britain, have not begun to face up to their responsibilities in dealing with mass migration and tackling the roots of the religious extremism that often causes displacement.
After Vladimir Putin dismembered a European country by annexing Crimea,

 Europe enters 2015 lacking certainty, for the first time since the cold war, that its borders are secure. It was left to Merkel, again, to point out in November that Putin’s attempt to re-establish Soviet-era spheres of influence affects not only Ukraine, Georgia and Moldova, but countries much closer to Europe’s heart, such as Serbia and Bosnia, and EU members Hungary and Slovakia.

Russia’s expansionist and anti-democratic outlook recalls the worst aspects of the legacy Europe fought to overcome after 1945. The struggle for a Europe whole, prosperous and free has now returned with a vengeance."

EU-Digest