Madrid and Rome revive bilateral ties to address European challenges By euroefe.es and Samuel White

The prime ministers of Spain and Italy, Mariano Rajoy and Paolo Gentiloni, met on Friday (27 January) for the first time in four years, in a bid to bring fresh impetus to high-level cooperation between the two countries. Euractiv Spain reports. Gentiloni replaced Matteo Renzi at the head of the Italian government last December after the former premier lost a referendum on wide-ranging constitutional reforms. He met his Spanish counterpart at Madrid’s Moncloa Palace on Friday afternoon. Renzi had been in office since February 2014, but during his tenure he did not hold any bilateral meetings with Rajoy in Spain or Italy. The last time a head of the Italian government visited Spain was in May 2013, when then-prime minister Enrico Letta met with Rajoy at the Moncloa Palace. So for the Spanish government, Gentiloni’s visit was an important step towards reviving high-level bilateral relations. Between two countries with such strong historical, cultural, social, economic and investment ties, this is a good sign. Madrid believes that the two countries’ respective domestic situations held them back from taking full advantage of these ties in recent years. The bulk of Friday’s discussions centred on this issue. The two heads of government also discussed the Malta summit on 3 February, to be attended by all EU leaders except the UK’s Theresa May, to discuss the bloc’s future after Brexit. They also exchanged views on the EU summit in Rome this coming March to mark the 60th anniversary of the signing of the treaty establishing the European Economic Community. EurActiv

Obama to visit Berlin in last presidential trip to Germany

Photo Credit: DPA

The White House announced on Tuesday that US President Barack Obama will be paying one last unexpected visit to the German capital - his last before he leaves office.

Obama is now set to stop by Berlin on November 16th, after the divisive US national election takes place on November 8th and following a trip to Athens. But the trip will be short, as two days later he will head to an Asia-Pacific Economic Cooperation (APEC) summit in Lima, Peru. Obama last landed in the Bundesrepublik in April to drop by the Hanover Messe - one of the most important trade fairs in the world. That visit was thought to be his last to Europe’s largest economy. In Hanover, Obama praised Chancellor Angela Merkel for her “courageous” leadership during the ongoing refugee crisis, pushed the controversial TTIP free trade deal with the EU and US, and urged a preservation of a united Europe, ahead of the Brexit referendum vote in June. His Berlin trip will involve a meeting with Merkel and the leaders of Italy, France and the UK. Discussion will most likely centre around the ongoing conflicts in Syria and Ukraine, as well as the refugee crisis and TTIP. But the November election will determine how much Obama’s Berlin talks will ultimately impact future actions after he leaves office in January and is followed by either Hillary Clinton or Donald Trump. The Local-Germany APEC

France calls on ex-EU chief Barroso to drop Goldman Sachs job

Photo Credit: en.wikipedia.org

The French government called on former European Commission chief Jose Manuel Barroso on Wednesday to drop plans to take a senior job at U.S. investment bank Goldman Sachs, part of a growing outcry against the move.

The bank said last week it had hired Barroso, a conservative Portuguese ex-premier who headed the European Union’s executive arm from 2004-2014, to be an adviser and non-executive chairman of its international business. French European Affairs Minister Harlem Desir said the “scandalous” move raised questions about the EU’s conflict of interest rules and said they needed to be tightened. “It’s a mistake on the part of Mr. Barroso and the worst disservice that a former Commission president could do to the European project at a moment in history when it needs to be supported and strengthened,” Desir said during a question and answer session in the lower house of France’s parliament. Barroso was hired 20 months after stepping down, shortly after an 18-month “cooling off” period when ex-commissioners must seek clearance for new jobs to avoid conflicts of interest. “The European Commission president should be above the pressures of private interest. The restriction on being hired by a private company should be extended,” Desir said. In reaction to news of Barroso’s move, the European Ombudsman called on Tuesday for the EU to tighten rules on commissioners taking appointments on leaving office. EU Economics Commissioner Pierre Moscovici criticised the appointment as bad for the Commission’s image at a time when it is under attack as Britain prepares to leave the European Union. “When a public person leaves public life and goes to the private sector, he also has to think about the image it projects,” Moscovici said on France’s Europe 1 radio. “I can assure you I won’t go to Goldman Sachs,” he added. Barroso has said he aims to bring his experience in EU affairs to help the bank prepare for Britain’s departure from the bloc. He was president of the Commission, which polices EU countries’ public finances, when it came to light that Goldman had helped Greece in the past to reduce its debt burden with cross currency derivatives, worsening its debt crisis. (REUTERS) France 24 Photo

Daughters of an American Revolution By Abby Ellin

With more in common than most voters realize, Chelsea Clinton and Ivanka Trump have each taken an unprecedented role in a parent's presidential campaign. Will they emerge from the election stronger than ever? Psychology Today

Interview with Jadranka Joksimovic, Serbia’s minister responsible for EU integration By Theodoros Benakis

As the clock ticks closer to the end-of-2018 deadline for Serbia to harmonise national legislation with European Union standards, the country’s minister responsible for integration, Jadranka Joksimovic, considers the EU-Serbia accession negotiations as an incentive to meet the internal reform goals. Joksimovic notes progress in terms of human rights, media freedom and judicial reforms. On the topic of migration, Joksimovic notes a systemic and institutional solution within the framework of the EU laws and standards that is accompanied by the strategic partnership with Turkey.

Is Serbia ready to join the EU?

Serbia has clearly expressed its strategic preferences. The membership in the European Union is one of the primary foreign policy goals, but also the goal of a significant number of sectors in Serbia. For us in the Government, it is important for the industrial branches and sectors to see the membership in the EU as an instrument used to meet the sectorial goals. That is the only way for the membership in the EU to represent an added value to each of these sectors. The energy sector would develop more if we are integrated and if we invest in joint projects. Agriculture, as a strategic branch for Serbia, has yet to gain momentum by joining the EU. Transport would become meaningful and would develop only if we plan to connect all major routes at the European level and as part of a unique European transport network. Even the challenges we are faced with, like migrations, are easier to solve if we act together. Serbia would continue to build its corridors, solve numerous challenges, but also develop its agriculture; the only question is whether it is better for such corridors, agricultural products and Serbian solutions to the challenges to have a prefix “European”. I am convinced that it is in everybody’s best interest. .... continued. New Europe Photo

EU leaders agree to uphold Russia sanctions, US says By Andrew Rettman

Photo Credit: bundeskanzlerin.de

Western European and US leaders have agreed to keep economic sanctions on Russia unless it stops the war in Ukraine, the US says, as French MPs prepare to debate lifting the measures. Leaders met in Hannover on Monday afternoon, prior to Obama's return to the US. EUobserver

How IMF head Christine Lagarde convinces powerful men to make gender equality a priority By Emma-Kate Symons

Photo Credit: Mandel Ngan/AFP/Getty Images

International New York Times/Women in the World

Austrian President wants EU to examine ending anti-Russia sanctions

Austrian President Heinz Fischer
Photo Credit: Vladimir Fedorenko/Sputnik

 

 

 

 

 

 

The Austrian President Heinz Fischer says the EU has to find a way to lift sanctions against Russia. "I always say that sanctions are disadvantageous for both sides," Fischer said at Wednesday’s meeting with Russia's State Duma Speaker Sergey Naryshkin. "It is important to find a way to lift them in the near future." He also said Austria is actively participating in EU’s discussions on the issue. "Our position is that it’s necessary to consider all the opportunities to develop cooperation between Russia and the EU," he added. A few days ago Austrian business leader Christoph Leitl criticized anti-Russian sanctions, saying they had proved unsuccessful. Leitl said Russia with its raw materials and Europe with its expertise would complement each other perfectly. At the moment, there’s no unity among the European Union for automatically prolonging the economic sanctions against Russia which are due to expire on July 31. The Italian and Hungarian foreign ministers said last month that things can’t be taken for granted at this stage; the question of sanctions should be decided at the highest level and cannot be automatic. Meanwhile, the Baltic republics and Poland are demanding sanctions should continue as a response to what they describe as expansionist Russia. EU sanctions against Russia were introduced in March 2014 after Crimea voted to separate from Ukraine and rejoin Russia. RT

Why we need evolution, not revolution By Ewald Nowotny

People are not ready to reinvent Europe. The more promising path is to develop the European Union within the existing framework of the EU Treaties.
It is sad, but true: Sir Karl Popper, the brilliant, down-to-earth philosopher who decisively influenced political discourse in the 1970s and 1980s – especially in Germany – seems to have gone out of style. This unfortunately also applies to the concept of piecemeal social engineering he advocated, i.e. the notion that the ills of society should be confronted through a succession of cautious, incremental steps rather than through rapid, large-scale reform or revolution. After all, small steps can be reversed should they later prove as missteps. The disregard for Popper’s approach is clearly evident in today’s debate about the future of European integration and, in particular, Europe’s monetary policy. Thankfully, the Five Presidents’ Report shows that our continent’s leading minds in the realm of European integration policy wisely distinguish between reforms that are feasible under existing European law and those that require fundamental changes in the European Treaties. Disturbingly, however, the discourse on the future of the EU, and monetary union in particular, has recently been dominated by a growing number of alarmist voices. The adopted tone ranges from dramatic outburst – as recently evidenced by the EU perspective drawn by the French economy minister in this newspaper (“rebirth or death”) – to more moderate, bureaucratic calls for an “economic government” or a “European finance minister.” Obviously, monetary union is bound to be more stable and more efficient if it is the final milestone of integration, following achievement of a political union and a common fiscal policy in particular. This was already argued by the proponents of the so-called “coronation theory” when the blueprint for European Economic and Monetary Union was first discussed, drawing from the experience of German unification in the 19^th century. That said, it is equally true that a European single market needs to be complemented and stabilized by a single currency that is shared by a large number of market participants. Also true: as a “second-best” yet feasible solution, the single monetary policy is supported by clear fiscal policy rules as laid down by the Stability and Growth Pact. In the early stages of monetary union, missteps did indeed occur. In particular, the lower interest rate levels of a few southern European Member States led to excessive private and/or public debt. Though there were warning signs, i.e. massive current account and budget deficits, national and European economic policymakers reacted too late. Exacerbated by the global financial crisis from 2007, this led to dramatic developments in some countries that continue to affect policymaking in the euro area today. It should not be overlooked, however, that this crisis situation has also brought forth a series of instruments at the European level which represent significant progress in terms of crisis prevention and intervention. If these new instruments are applied in a consistent and macroeconomically responsible manner, and maybe combined with a strengthened role for market-based sanction mechanisms, the outlook for European monetary union is quite sound, actually. Calls for a fundamental restructuring of the EU’s institutional framework may well have their place in a discussion of long-term developments, but as a contribution to current political debate the “rebirth or death” approach is extremely dangerous, in my opinion.
The chances of a “big bang” reform are slim – unfortunately
Following this approach would at some point or another require far-reaching changes to the European Treaties. Granted, treaties can be changed, and instigating an informed public debate in due time it is part of the job of politicians. Claiming that the people are ready for a “re-founding of Europe,” a big bang as Minister Macron suggested in his commentary in this paper, is an interesting intellectual hypothesis, but its validity has not been substantiated by empirical analysis. In times like these when we do not know which countries will be part of the EU in two years’ time and each individual Member State has the power to block Treaty changes, the probability that fundamental changes to the existing Treaties will be adopted in the not-too-distant future is – unfortunately – very small. Against this background and in light of the sheer impossibility of fundamental Treaty changes, arguing the case for a “rebirth or death” approach means, in fact, risking the danger of conjuring up “death” – the slow dissolution of the EU and monetary union. Proposals founded on unrealistic conditions do not represent a useful contribution to the future development of Europe; on the contrary, they may even adversely affect political and economic expectations. Apart from the political and psychological risk of advocating “rebirth or death,” such an approach is not factually justifiable. Despite its much debated weaknesses, Economic and Monetary Union has proved its worth more than once in the first 16 years of its existence: Without EMU, Europe would have seen far more dramatic repercussions of the global economic crisis that started in 2007; this is true both for the members of EMU and for the EU countries outside monetary union, which, to some extent, benefited as “free riders.” As money and capital markets were breaking down and volatility was high, and swift and major action was of the essence, no national central bank – not even that of a big country – would have been able to readily provide the massive amounts of additional liquidity with which the ECB stepped in. A large central bank by global standards, the ECB must fear potential liquidity outflows much less than other central banks and was able to participate in the swap network of the leading central banks, which has the power to prevent potentially disastrous liquidity shortages in individual currencies.
Instead of invoking apocalyptic scenarios we should adopt a policy of small steps
Given the establishment of the ESM and its predecessor institutions at the EU level, we have instruments in place to tackle crises in a spirit of solidarity; this is substantial progress. The application of these instruments may be controversial. However, as the case of Spain demonstrates, we are also making progress here: Recent economic developments in the country are considered to be the success of a policy of austerity that did not coerce the government into slashing its fiscal deficit of 4.5% within too short a period of time. The substantial strengthening of economic governance in the EU over the past few years (e.g. through the introduction of the European Semester, the reform of the Stability and Growth Pact) as well as the establishment of the Single Supervisory Mechanism for the euro area marked important progress toward a more complete economic and financial market union. Hence, instead of invoking apocalyptic scenarios it seems more useful and effective to contribute to a step-by-step enhancement of economic governance under the given legal framework and to push ahead with the thorough implementation of decisions that have already been made, such as the Juncker plan for investment in Europe. There is no doubt that like any other institution, the EU must develop long-term political and economic visions. However, especially for a comparatively young organization like the EU, building a great narrative that creates an emotional connection is of vital importance. Many European countries have come to reach a form of emotional cohesion through the great narrative of the catastrophes they have gone through together or through wars waged against a common enemy. Let’s hope that emotional cohesion in Europe will be built through positive rather than negative events. It seems all the more important to me that long-term change is achieved on the basis of an evolutionary and democratic concept of gradual progress rather than by launching technocratic plans as a matter of life and death.
Ewald Nowotny is governor of the National Bank of Austria and member of the the governing council of the European Central Bank. International Süddeutsche Zeitung Photo

President Barack Obama's Speech at Selma

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Full Transcript US President Barack Obama speaks during an event marking the 50th Anniversary of the Selma to Montgomery civil rights marches at the Edmund Pettus Bridge in Selma, Alabama, March 7, 2015. US President Barack Obama rallied a new generation of Americans to the spirit of the civil rights struggle, warning their march for freedom 'is not yet finished.' A forceful speech in Selma, Alabama on the 50th anniversary of the brutal repression of a peaceful protest. Huffington Post Vox

Chancellor Angela Merkel

Neujahrs-Ansprache "Freedom in Europe?" Bild