Zone 3- Euro-Americas Summary Week # 135

WESTERN EUROPE

Political Issues

European Commission chief Jose Manuel Barroso has thrown the blame of low confidence in EU on member states, he alleged that member states are yet to personalize EU projects as theirs and are simply trailing for the benefit of their own state. He further holds that Euro is a success story and member states would not be able to manage global financial crisis independently.

The consensus by EU members to have a pan-European financial supervisor was referred to as a crucial political landmark. The European Commission, the European Parliament and the EU member states reached a political deal to set up a European Systemic Risk Board and three separate agencies to monitor securities, banks and insurance companies as measures to guard against the repetition of another financial crisis.

The European External Action Service (EEAS) is expected to nominate competent diplomats for its missions abroad, but Catherine Ashton is still vetting diplomats to be chosen and also waiting for parliament approval.

EU-Russia visa regime is now shouldered on the proposal of Poland, although Warsaw agreed to Russia being incorporated into the visa-free travel scheme but only if the EU at the same time promises in future to lift visas for Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine as well.

The European Union has dropped plans to offer Israel data sharing access after pressure from the Irish government. The reservation by the latter owes to the complicity of the Israeli government in eight forged Irish passports alongside a number of falsified passports of other EU states.

In a new book by former UK PM Tony Blair, he refuses to regret his Iraq policy but is remorseful for the death count the war produced. The book shows Blair also insinuated military action on Iran over its nuclear issue. He also accuses ex-PM Brown of terminating Labour rule because of zero ‘emotional intelligence’. Meanwhile in Dublin thousands staged protest against Blair, accusing him of war crime.

The new leadership of the British Labour party is yet to be determined, but the Miliband brothers along with other candidates are struggling to hold the seat left by former PM Gordon Brown. There has been much speculation that David Miliband is more likely to be chosen.

Economic Issues

Production level in Eurozone during the month of August went down in comparison to the industries in China, India and Russia. Although there was little push in retail sales in the Eurozone, nonetheless, retail sales fell by 3.0 % in Spain and 0.3 % in Germany.

Meanwhile the EU is venting its concern over China’s protectionist policy and the inability of China to keep to open market promises as EU companies are denied access to the airline reservation, automotive, construction, insurance, oil refinery, research and innovation and telecommunications sectors in China.

British oil giant BP revealed that the devastating Gulf of Mexico oil spill disaster has cost it eight billion dollars so far. Meanwhile, BP is complaining against the intended suspension on offshore drilling, a move that will further affect BP’s finance.

The French government is either recruiting enemies or shutting door on friends, the streets of France is expected to see another wave of protest against government plan to increase the retirement age from 60 to 62. This will add to the already present frenzy over Roma expulsion.

Social/Humanitarian Issue

Immigration remains a debatable issue in Europe, the Council of Europe recently slammed Greece for its immigration practices. Asylum seekers in Greece face enormous difficulties trying to gain access to the asylum procedure and not being granted basic safeguards.

The European Commission is investigating the legality of forceful expulsion of Roma by the French government. The EU is concern about the implication of such development which could add to the increasing trend of xenophobia and racism in Europe.

Amid the huge criticism surrounding the Roma expulsion, French far-right politicians as well as their counterpart across Europe believed the expulsion was right in order to create social order.

Geostrategic Issues

EU's trade chief has apologized for his comment about the Jewish lobby stating he believed them to be very powerful and road blocking the Middle East peace process. The comment irked Jewish organizations in Europe terming it is another form of anti-Semitism.

The European Union is expected to examine the proposal of Libya and the whole of North African seeking handsome EU funds in order to help reduce the tendency of using North Africa as transit route into Europe.

The arrest of two Yemenis accused of conspiring to commit terrorist acts has further raised security concern between Washington and Amsterdam.

The British government has debunked the press rumor that London and Paris are about to end their centuries rivalry and pool together resources in the area of military vessels. The authenticity of the rumor remains unclear till both parties meet in an October summit.

International Atomic Energy Agency has repeated request to Israel to join the nuclear regime (NPT) but Israel believes the new plea is tailing the desire of Arab states and particularly Iran and Syria to distract attention from their nuclear issue.

EAST EUROPE

Political Issues

Albania will have to prove to the rest of the region and to EU in particular that it is politically mature. The ruling and opposition parties have been in a year old deadlocked over election irregularities and the move to reform electoral rules is yet accomplished. Despite its political problem, Albania is still struggling to fulfill certain EU requirements before it could be incorporated into EU visa liberalization scheme.

If the political and economic uncertainty in Bosnia and Herzegovina (BiH) remains same, the ethnically divided country might continue to lose its human resources in the form of its youth’s exodus from the country. BiH like Albania is still waiting for EU approval on its request to join the visa liberalization scheme.

Romanian government has received the appreciation of the EU for its judicial reform geared at combating organized crime and structural corruption in the country. Meanwhile, ethnic Roma in Romania are prepared to boycott French products in response to the expulsion of Roma from France.

Poland and the league of ex-communist EU members Hungary, Slovakia and the Czech Republic called on the EU not to slash European Union funds for poorer member states.

Meanwhile Ukraine's parliament has approved amendments to the Law on Local Elections proposed by President Viktor Yanukovych to allow all political parties to participate in local elections set for Oct. 31.

Economic Issues

Robert Zoellick, president of the World Bank, has praised the Bulgarian government's efforts to fight corruption and organized crime, and to fully integrate the country into the EU. Such praise will also be true for Serbia from IMF that has appreciated the pace of Serbian economic reform.

Although Poland’s gross domestic product rose at an annual rate of 3.5% in the second quarter, yet the government is proposing levying banks in order to reduce the burden of deficit on state. Indo-Polish economic ties have grown beyond $1 billion, since the opening up of Indian economy in 2001. Both countries further cemented bilateral ties during Polish-Indian Investment Forum jointly organized in Bangalore by Confederation of Indian Industry.

It is a political action but with economic undertone. The Czech government has decided to close its embassies in Congo, Venezuela, Kenya, Yemen and Costa Rica and consulate in Mumbai will also be affected as part of the Foreign Ministry's budget saving plan. Meanwhile, the government is pursuing a plan to attract Czech researchers living abroad back to their home country and to stop migration of Czech labour forces.

The prime minister of Slovakia said overly indebted countries should be forced into bankruptcy, not bailed out, in a sign of the tensions roiling the European currency bloc in the wake of the Greek crisis. He said the so-called stability fund set up this year in case other European countries need financial rescue, is likely to cause more problems than it will solve. Meanwhile, Slovakia's economy expanded by 4.7 % year-on-year in the second quarter of 2010 and the government is working towards extinguishing the menace of unemployment.

Recent Ukrainian President Viktor Yanukovych’s visit to Berlin depicts that Ukraine is not solely dependent on Russia but equally open to the west. Yanukovych urged Germany to increase investments in his country, although Germany is currently a leading investor to Ukraine. Meanwhile if the national parliament approves the new tax code, it is likely that Ukrainians will have the lowest taxes in Europe.

Hungary's Prime Minister Viktor Orban believes it was in the country’s interest to sign loan agreements with the IMF if necessary but it was not in the country's interest to have economic policy agreements with the Fund. Unemployment in Hungary is a concern and the government has pledged to create one million jobs over the next ten years, an ambitious plan that would help bring the country’s employment rate up to 70% by the year 2020.

Investments in Belarusian food and drink sectors are showing sign of growth as the economy shows signs of recovery.

Estonia hosted the world through its Estonia's Friends International Meeting. The initiative was an avenue for world dignitaries in all fields of life to discuss how Estonia could survive in the increasingly expanding global economy and to improve its chances for success in the global marketplace.

Lithuanian central bank said in a recent report that rising food prices and a recovery in consumption is likely to push-up Lithuanian inflation rate this year and the figure would surpass the previously estimated mark.

Latvian economy has received a new rating from the financial rating agency Fitch, according to the latter, Latvian economy now stand at stable away from it previous negative status. This is a boost for Prime Minister Valdis Dombrovskis ahead of October 2 general election. Yet, data from Latvia’s State Employment Agency (SEA) last week showed that registered unemployment rate in the country stood at 15%.

Recent remark by Ukrainian Prime Minister Mykola Azarov that Russia’s gas prices to Ukraine are too high and unfair has been met with astonishment.

Social/Humanitarian Issue

Giving the social implications of alcohol on the society, Russian authority has been on a debate whether to ban the sales of alcohol beverages, including beer, at night time. If such ban becomes a reality, Russia will be reversing to Gorbachev's Dry Law. However, Russia's Finance Minister Alexei Kudrin has offered rather unconventional advice saying citizens should smoke and drink a greater deal, as higher consumption would help lift tax revenues for spending on social services.

Unabated violence in Chechnya and other Caucasus regions of Russia and redhead hooliganism are terrorizing moments for the people.

The small Baltic state of Estonia is not holding back from participating in humanitarian effort in the flood affected areas of Pakistan; two Estonian experts have been sent by the foreign ministry on a rescue mission to this effect.

Social/Humanitarian Issue

In the Balkans cases of ethnic cleansing continue to be revisited and last week prosecutors at The Hague Yugoslav war crimes tribunal concluded that Croatian forces intentionally killed and expelled Serb civilians during the 1995 campaign.

The Serbian government is assuring Austria for an investigation over the activities of Austrian Hypo Alpe Adria Bank which is suspected of laundering money for an alleged drug boss.

Geostrategic Issues

Already 69 countries have recognized Kosovo’s independence but that is not enough for Pristina waiting for the CARICOM, an organization of 15 Caribbean nations. Kosovo’s independence remains a matter of contest with Serbia.

Serbia is expected to open NATO’s mission in Brussels, however Serbia’s membership of NATO is still in the pipeline

The new Polish leadership is geared at reviving the Weimar Triangle (Poland, Germany and France), where Polish President Bronislaw Komorowski has made it one of his top foreign policy goals.

The Czech Foreign Affairs Minister Karel Schwarzenberg was among those whose attention was captured by the repatriation of Roma from France. As a member of EU, the foreign minister has voiced his concern against Paris’s tough policy

RUSSIA

Political Issues

According to reports public harassment of political demonstrators in Russia indicates that Russian authority is not ready to accept the freedom of expression of political opposition. Prime Minister Putin holds a clear view, no permission no demonstration

Economic Issues

It was a good week for the Russian stock market seeing a gain in the oil sector. Oil, Russia's main export earner advanced as much as 1.7 % to $73.76 a barrel in New York. Same good news will be true for Gazprom with a net income reaching 325 billion rubles ($10.6 billion) from 103.7 billion rubles a year earlier. Gazprom also plans to continue lowering its debt burden.

Comparably, the gap between the rich and poor is said to be closing up in Russia when measures with other BRIC countries. The trend is associated with the growth in Russian economy in the last decade which is more pronounced by Russia energy predominance.

Food, Environment and Energy Issue

The aftermath of wildfire in Russia forced the government to propose a ban on wheat export, but according to PM Putin that could be changed and lifted if the 2011 harvest is forthcoming. President Medvedev is worried that current hike in food price could affect public participation in 2012 presidential election.

It is a fulfillment of promise and a contract accomplished as Russian engineers have started fueling Iran’s Bushehr nuclear plant for the next 10 years.

The expansion of crude oil pipeline from Siberia to China by Russia greases the relations between the two BRIC members. Russia is the world's biggest energy producer and China is the world's largest energy consumer, both statues show they have to be energy responsible countries. Similarly Azerbaijani has agreed to increase its gas supply to Russia for the next two years after a meeting in Baku of the leaders of both countries.

Geostrategic Issues

Armenian government has approved the elongation of Russian military base in the country till 2044. It is also good news for Russia as Turkey’s new foreign policy of “zero problems with neighbors” drops Moscow from Turkey’s threat list.

US/CANADA

Political Issues

Once again poll conducted by Associated Press-GfK shows the strong disapproval for the way President Obama is handling issues that matter most to Americans. The state of the economy is the heart of the issues, even though nine of 15 issues examined show that the November election will be difficult for Democrats. Among potential issues for the November midterm elections is income tax, the president intends not to extend tax cut but to increase it for wealthy Americans, while at the same time reducing tax for the middle class.

The commanding tune of the tea party amid midterm election is driving the view that the tea party is the new Grand Old Party. They are simply against the establishment, wanting a change, unhappy with huge federal spending and above all against tax on the rich. The rhythm of the tea party is forcing the republican establishment to change their policy in order to suit the mantra of the moment. .

Despite the usual fluctuation in rating, none of the Canadian political party leaders are ready for parliamentary elections. The minority conservative government has frequently seen agitations from the liberal opposition and had a popularity drop over vital issues.

Economic Issues

Preceding the midterm elections Obama recently announced that his administration will bolster the economy with new initiatives. Meanwhile the general economic statistics could be troubling but New York is proving to be different with substantive sign of recovery. Joblessness, housing and business as usual are picking up, though the scar of the recession is not totally out of the picture.

Full Canadian economy recovery is still underway if the latest report of the country’s GDP is true. Canada recorded a gross domestic product grew 2.0 % at annual rates, sharply down from 5.8 %, coupled by weaker consumer spending and trade performance and a fear of interest rate hikes by the Bank of Canada.

Meanwhile the take over of a Canadian company by a Chinese company is foaming a great concern in Canada even though the deal is favorable. The concern evolves around customers’ jobs and government revenue.

Social/Humanitarian Issue

Tolerance, independence and leniency are the traits that strike the difference among Canadian, Italian and French parents. The assertiveness of the two latter makes them distinctive from the tolerant and individualistic oriented Canadian parents as suggested by a receive study.

According to an analysis of 2009 census data by the Pew Hispanic Center, illegal immigration into the United States has dropped in two decades. The report indicated that illegal immigration from Caribbean, Central America and South America declined due to the souring American economy, violence across the border and tougher enforcement of immigration rules.

Food, Environment and Energy Issue

BP is warning Congress that if lawmakers pass legislation that bars the company from getting new offshore drilling permits, it may not have the money to pay for all the damages caused by its oil spill in the Gulf of Mexico.

Geostrategic Issues

As the White House restarts peace talks between Israeli and Palestinian, President Obama believes the atmosphere should be filled with cautious hope, owing to the sensitivity of the protracted conflict. But more importantly Washington will be a participant than just a facilitator in the talks so as to ensure constructive talks.

LATIN AMERICA

Political Issues

In Brazil it is increasingly evident that Ms. Dilma could replace President Lula when he leaves office in January. Available polls suggest that Lula’s candidate has outmatched other aspirants in popularity for the forthcoming Brazilian election.

The importance of Brazil in regional politics was highlighted by the visit of the Colombian President Santos, his first after having been sworn in as president, to Brazil.

Political unrest in Mexico is increasingly turning out of balance. The cycle of violence is severely hampering socio-economic and political life of the country.

Venezuelans are preparing for parliamentary election and the election results will determine if Chavez’s socialism still carries weight among the people.

Economic Issues

Planning ministry of Brazil has displayed figures which further points to the bubbling trend in the Brazilian economy. 2011 is expected to witness greater economic growth around 5.5%.

Food, Environment and Energy Issue

Argentine’s JBS, one of the largest beef exporters in the country is concerned about the new government policy to increase tax on cattle and beef export. JBS believes the new tax could affect the beef export if the government is bent on pursing the policy.

President Lula has finally approved the controversial $11 billion Belo Monte Mega Dam at Xingu River in Amazonian state of Para. This is probably the largest project of Lula’s administration and has raised the eye brow of Amazon’s environmental, religious and Indian peoples’ organizations over the environmental implication of the dam.

The reconstruction of Chile after the devastating earthquake remains a worry for the government; the latter is struggling to rebuild houses and other social infrastructures.

Geostrategic Issues

The Argentine government is strengthening ties with Armenia, as the new Latin America country opens it embassy in Armenia.

Brazil and New Zealand have inked agreement on visa free regimes that permits citizens of both countries to travel, do business and stay for duration of one year.

BRIC members are beginning to vet the possibility of South Africa’s membership after President Zuma requested to join the group. Johannesburg is believed to be a potential candidate as well as Mexico and South Korea.

Cuban leadership while lauding President Chavez’s effort of repairing ties with Colombia and Havana has voiced its hope that Chavez will continue to rule the country owing to the benefit his socialism has brought about.

AUSTRALASIA

Political Issues

Latest Australian survey suggests that most Australians want the country to be a republic but that number has slumped to a record low in 16 years. The survey suggests that Australians will want their country free from the British monarch after the reign of Queen Elizabeth II

Meanwhile the Australian political deadlock moved into another week, without the two bigger parties forming the government. However, now the labour party has gained the support of two smaller parties, giving Australia a coalition government.

Economic Issues

Despite the cloudy political weather, Australian economy clocked a remarkable growth as consumer spending and mining exports soared. The latest economic status gives room for a better forecast in months to come.

Social/Humanitarian Issue

The Australian government will have to take cautious and quick decisions in resolving its present immigration processes for asylum seekers due to the frequent outbreak of disturbance at Australian’s refugee camp on Christmas Island. §

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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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