Zone 3- Euro-Americas Summary Week # 134

WESTERN EUROPE

Political Issues

According to the latest Euro barometer survey, almost half of EU citizens believe their countries membership of the EU has yield little as unemployment and a troubled economy grips the bloc. The survey showed that the dissatisfaction for EU is issue centered; disappointment was astonishingly less salient among countries relatively hit by the economic crisis. Nonetheless, the EU still sees its confidence level much higher than national governments and parliaments.

The extent to which EU should meddle in national affairs of its members is one of the troubling debates within the bloc. EU integration though success has not be immune from contentious issue of red line between the EU and member state. In a recent ruling by the German constitutional court, the court ruled that EU decisions may only be checked if European institutions seriously overstep their powers.

Roberto Maroni, Italy's interior minister projected the anti-immigration policy of his government as he wanted the EU to grant Italy permission to deprive Roma from free movement in Italy. His argument revolves around the economic burden posed by the illegal immigrants, yet it is unlikely the EU would consent to such a demand.

Meanwhile the EU is concerned over recent expulsion of Roma by the French government. Viviane Reding, the European commissioner for justice is set to investigate whether France has violated EU law. This same concern is shared by UN anti-racism panel asking Paris to avoid collective and mandatory repatriation, discriminatory statements and should rather address the Roma issue on individual circumstances. The Roma issue did not fail to capture the attention of the Vatican, asking France to be modest in its action, Paris however reminds the Vatican of separation between religion and the state.

Iran is not just under the UN or western radars for its nuclear activity but it is once again criticized for ill treatment of minority ethnic groups. According to the U.N. Committee on the Elimination of Racial Discrimination, minorities in the Islamic republic are not on same page with ethnic Iranian in term of freedom of expression and access to social services.

The death of three Spaniard troops in Afghanistan has reawakened the public resentment towards the Afghan war. The public wants Spaniard troops out of Afghanistan, even though the Socialist government has not yet revealed any timetable for such public bidding.

Economic Issues

Last week recorded a strong European market after months of market drops. The rebound could be linked to the soaring German economy and at the same time due to the recovering trend of equities in Asia and on Wall Street.

In an economy just rolling out of recession and still relying on foreign financial assistance, payment of pensions has been largely paid to ghost pensioners. Greece’s Deputy Labour Minister George Koutroumanis disclosed that hundreds of wrongful pension are paid to dead names still on pension list..

The new levy about to be introduced by the German government is a clear message to financial institutions that they can always help themselves in times of crisis if they had prepared for the unexpected. The German government wants to start levying banks and to use the proceeds of the levy in bailing out banks during crisis instead of leeching taxpayers.

Social/Humanitarian Issue

Humanitarian efforts by the EU for the flooded people of Pakistan remains ringing news, as EU fears that its huge effort is being undermined by threat of Taliban and inaccessibility of the most needed to its aid. EU’s effort has once been challenged as meager. The EU has donated more than half of the benchmark stated by the UNO.

There might be certain concern from Washington on the need for transparency in the funds for flood crisis in Pakistan, but exigent approach to the crisis in more a concern for U.N.'s International Telecommunication Union asking donors to wire money to the National Bank of Pakistan or Switzerland's UBS AG to "assist the flood-affected victims" and rebuild telephone networks.

The British government is pondering on how to resolve the increasing number of prison inmates in the country. Some policymakers hold the view of short time prison sentence while other believe community sentences will better reduce the tendency for re-offending. Meanwhile, Royal United Services Institute is also alerting the British government of how British jails are potential breeding ground for terrorists.

Net migration to the UK rose by more than 20 percent last year to 196,000 from 163,000 in 2008. The figures from the Office for National Statistics showed the number of immigrants arriving in the UK in 2009 fell by 4 percent to 567,000, from 590,000 in 2008. However, the number of people leaving the country last year dropped further by 13 percent to 371,000, from 427,000 in 2008.

Geostrategic Issues

German foreign minister Guido Westerwelle visited Serbia and restated EU stance that Kosovo’s independence is a dawn reality, asking Serbia to see that the map of southeast Europe is completed. EU wants Serbia to mellow down her rhetoric after the ICJ’s ruling though Belgrade still wants UNO to debate on the contentious issue.

The imprisonment of a non violent Palestinian activist by the Israeli government has raised the eye brow of the EU foreign policy chief Catherine Ashton. Her critical assessment of the judgment was resented by Israel as unusual and unworthy of a foreign dignitary to interfere in domestic affair of a foreign country.

EAST EUROPE

Political Issues

The Dutch government rejects any complicity in the Srebrenica massacre, on the pretext that during the war Dutch troops were only acting under the banner of the UN; however a new investigation sponsored by the relatives of Srebrenica massacre victims is about to begin in the Dutch city of Arnhem to investigate the role of UN-Dutch troops in the massacre.

The US officials in the region are not desisting from dissuading Bosnian Serb authority not to make a parallel between Kosovo and Republika Srpska (RS). Washington insists that as an entity of BiH, it has no right to secede.

Romanian government has thrown its support behind the territorial integrity and sovereignty of Moldova, against the secessionist Transdniestr. Transdniestr is a breakaway territory between the Dniester River and the eastern Moldovan border with Ukraine. Transdniestr is trying to use Kosovo as a case precedent to secede from Moldova.

The European Commission shows its appreciation at the pace of Croatia-EU accession. Zagreb has managed to close 22 out of 33 chapters and there is a forecast of Croatia being the next EU member.

In the wake of the ICJ ruling in favor of Kosovo there has been huge condemnation for the independence rumors aired within Serb dominated north of Kosovo. The Kosovar government has pledged to extend 13m euros to the municipalities run by Kosovo Serbs, an effort expected to bait the north from the unruly conduct.

The fight against corruption and organized crime has become a joint effort across the region; it has led to different extradition agreements. Serbia and Montenegro inked similar agreement and hope solving cross border crime through it. Meanwhile, Montenegrin NGOs are resenting the new drafted anti-corruption strategy and action plan by the government on the ground that they were not consulted in making it and the draft does not really address ground reality.

Similar action was seen in Romania, as the Romanian parliament passed the state anti-corruption bill, which was adopted in the 137-seat senate by a vote of 78-0, with one abstention.

Economic Issues

IMF mission head Albert Jaeger praised Serbia’s government prudent fiscal policy and stressed the importance of adopting a law on fiscal responsibility. However, Jaeger rejected Economy Minister Mladjan Dinkic's proposal to raise public wages and pensions as early as next month due to the lower than expected government deficit.

Social/Humanitarian Issue

People across the religion commemorated the 100 years birthday of Mother Teresa, acknowledging her dedication to humanity. In Kosovo, authorities released a postage stamp in her honour.

According to reports an Albanian song praising Osama bin Laden in Macedonia resonates the view that there is a soft corner for extremism in the region.

Food, Environment and Energy Issue

Albania is facing its share of the global climate change as wildfire grips the country. The fire is reported to have engulfed hectares of vineyards and olive groves.

Geostrategic Issues

Bulgarian and Romanian government do not find the forceful expulsion of ethnic Romas from France satisfactory. Both countries have shown their resentment and the European Commission is urging Bucharest and Sofia not to allow the incident to influence their ambitions to join Schengen.

RUSSIA

Political Issues

President Dmitry Medvedev has rejected the proposal by Chechnya president, who wanted the title of president to be limited only to Moscow rather than being a common title for all regional heads. Medvedev holds that such an issue would be better decided by the federation themselves.

Economic Issues

As part of the general economic policy, Prime Minister Vladimir Putin intends to raise import duties on foreign cars to encourage international car producers to build new plants in Russia and to boost the local market. Meanwhile, The Russian presidential council for financial market development believes that making Moscow an international financial hub is only possible through federal, state and private support. The council rejected an initiative put forward by the Moscow Mayor to spend some 4 trillion rubles ($130 billion) over the next 10 years to be shouldered alone by the federal.

Social/Humanitarian Issue

Russian authorities are still struggling with piracy which has turned itself to threat for the economy and at the same time denting the country’s image.

As people around the world celebrate the 100 years birthday of Mother Teresa, Russian authority has planned to erect her monument as recognition for her dedication to life and the helpless.

Food, Environment and Energy Issue

Russia-Iran relations have been a bit sour recently but putting a finishing touch to Bushehr nuclear plant by Russia has reduced that sour rapport. As Russia fuels the plant there has been angry resentment from western and Israeli observers which Russia is trying to water down.

Russia is expected to further extend its gas tentacles to Asia as Moscow and Beijing enter into a multidimensional pipeline project, while Novatek also finding direct route to export its liquefied natural gas to Asia.

The summer heat wave might be subsiding, but the havoc created by the natural disaster is something that Russians will have to over come in due course of time.

Geostrategic Issues

Washington has again lauded the support given by Russia for the new UNSC sanctions on Iran. According to a report both capitals believe they share similar concerns over Iran and the latter having nuclear bomb is more dangerous for Russia as a neighbor. Meanwhile Israel is also not comfortable with sale of Russian weapons to Syria.

Russia and Armenia in recent times are ganging up in finding solutions to the protracted border issue in the region and more importantly to increase bilateral ties. Leaders of both countries met during the Collective Security Treaty Organization (CSTO) informal summit held in the Armenian capital on August 20-21. meanwhile according to reports the French President Nicolas Sarkozy is proposing a new cooperation that will include Russia, EU, NATO and the Organization for Security and Cooperation.

Despite its two years support for South Ossetia and Abkhazia’s independence, the secessionist state has not been able to sustain peace. Georgia remains irked at Russia’s 2008 attack and its support for South Ossetia’s independence, which Georgia still counts as its part.

US/CANADA

Economic Issues

American public and political opponents are asking President Obama about the extent to which his stimulus package has brought a change to the economy. Americans bearing low purchasing power and facing housing crisis as well as irked wealthy equally complaining of tax hike have voiced issues that are expected to be flared up by republicans as the midterm elections draw in.

American National Center for Health Statistics declares a striking figure pointing at the declining rate of birth rate in the country. According to the centre, birth rate dropped for the second year in a row since the recession began in 2007. Births fell 2.6 percent last year even as the population grew. Interestingly, the uncertainty economic is said to be accountable for the drop.

Canadian banks recorded a profit fall more than expected due to weak trading income, a signal that recovery is still underway.

Social/Humanitarian Issue

The proposed mosque near Ground Zone in the US is expected to be listed as part of a tax-free financing institution, if the mosque could demonstrate an ability to pay off borrowed bonds and comply with the laws concerning tax-exempt financing, which requires that such institution will benefit the general public and their religious activities are funded separately.

The American mosque debate has raised questions across the globe. For some the debate further reiterates America’s hatred for Islam, while some in Europe believe America is now waking up to its own debate of Muslim visibility in public sphere. But Americans are still confident that their society gives room for debate in comparison to other societies.

Food, Environment and Energy Issue

The oil spill on the Gulf of Mexico has brought gain and loss simultaneously. For some the cleanup processes increased their sale tax revenue and boosted their businesses, while other remained shattered by the growing fear that the areas around the Gulf is un-conducive for business as usual. But the greatest concern for both parties is the uncertain moratorium on oil drill; if it becomes effective, it will further exacerbate the level of unemployment and hikes energy price for the areas and country at large.

Meanwhile the inquiry panel asked to investigate the spill on the Gulf of Mexico was not satisfied with BP’s response. The company is not ready to single out anyone as responsible for the accident instead stood by a company-wide safety culture that ensured every employee is responsible.

LATIN AMERICA

Political Issues

The Internet has taken Brazilians to another level of electioneering process as presidential candidates avail Internet social networking sites for campaigning. The new avenue is adding to the print and electronic platform for political participation as more youth are indulged. Meanwhile, Ms. Dilma Rousseff is still riding on President Lula’s popularity though Lula himself is criticized for one sided support of a particular candidate.

For newly elected Colombian President Santos many issues would need streamlining in order to place the country on a right track. After Colombian constitutional court ruled against having US military base in the country, the president has started contemplating reviewing the military agreement and at the same time trying to find a soft negotiation platform between the state and the troublesome FARC rebel group.

If the survey result that only 36 percent people of Venezuela wants Chavez once again in power should be trusted then that is an indicator of fall in Chavez’s popularity. Chavez’s policies have been widely criticized as undemocratic and tramping on private ownership.

Economic Issues

Being the largest Soy oil exporter, and 75% of its Soy oil worth $1.4 billion remained un-purchased by China, this will be devastating to the Argentine economy. Both countries have been at trade loggerhead, Argentina has been blocking China from dumping its textile and edible into local market, leading China to stop the import of Soy oil.

Brazilian finance minister envisages an economic growth up to 7%, but not without a controllable inflation. Meanwhile a bi-partisan speculative report by the US Congress supports the plea of South Africa asking for the membership of BRIC.

Venezuela’s central bank reported that the economy of Venezuela shrunk 3.5 percent in this year as compare to the previous year and its oil sector and private sector is further speculated to have decline.

Social/Humanitarian Issue

The Brazilian government has extended its humanitarian hand to Pakistan’s flood affected victims; a total of $1.2 million in aid has been donated through UNHCR to Pakistan.

Food, Environment and Energy Issue

Argentine President Fernandez Kirchner is tussling with Royal Dutch Shell PLC. The company is challenging the government for trying to take its prerogative right of oil price increase, as reported agreement between Shell and the government only grants such right to Shell.

In Brazil, Petrobras is set to commence a deepwater oil exploration with 5 billion barrels of oil shares which is opened to investors. Meanwhile, Brasilia is intensifying effort to make its environment cleaner, sustainable and manageable through a climate fund, which enjoins all stakeholders benefiting from environmental resources to pay into the fund.

The Chilean government is seeking NASA’s help to authenticate the fate of trapped Chilean mine workers.

Despite Mexico being in the spotlight for drug related crimes, El Salvador, Honduras and Guatemalan have been singled out by a UN report as countries having top murder cases.

Cancun state of Mexico is expected to host the world for another round of talks on climate change, where Mexico is wooing neighbors to take active role in the conference.

A report by the UN and a New York Times’ article alleges that Chavez’s government is clamping down on opposition and there is little or no freedom of expression in Venezuela.

Geostrategic Issues

Brazilian President Lula is increasingly expanding his diplomatic clout in global affairs. Yet again Tehran is asking him to mediate with Council of Vienna over its nuclear impasses. This could be another chance for Lula to further engrave his statesmanship status.

Colombian President Santos will be credited for friendly policy towards neighbors. The new administration is geared at resolving Colombia’s long brawl with Venezuela as both countries have entered different levels of agreement under the auspices of UNASUR and active role of Argentina and Brazil

The tempo of drug war is increasingly becoming a regional menace and Mexico is at the top of the issue. The recent rampage in Mexico intensified this concern and Mexico is calling on regional governments for consolidated effort at rooting the menace out of the region. Meanwhile Mexicans are still grappling with the debate of drug legalization.

AUSTRALASIA

Political Issues

It has been 70 years since Australia has had a hung parliament, as major political parties have failed to secure 76 majority votes needed to form a government. Both labour and liberal parties are now wooing minority parties to form a government. Nonetheless the inconclusive elections saw the election of the first Aboriginal and Muslim lawmakers in the lower house, as well as its youngest (20 years) with university student.

Economic Issues

Amid an uncertain elections outcome, Australian financial system was gripped with fear with a drop in Australian dollar and bond. Investors were reported to be cautious of how to invest as the country faces a hung parliament in 70 years.

Social/Humanitarian Issue

A part of Western Australia was irked by a terrorist assignment students were expected to do. The school board has withdrawn the assignment owing to the sensitivity of the matter, but the teacher argues that the task wanted to help the student better understand the trend and manner terrorism affects the live of people. §

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Business and Politics in the Muslim World (BPM)refers to the project entitled, "Globalized Business and Politics: A View from the Muslim World.' The blog development project has been undertaken and jointly developed by the Gilani Research Foundation and BPM as a free resource and social discussion tool.

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