Zone 3- Euro-Americas Summary Week # 123

Week # 123 – Dated 6^th-12^th June, 2010

WESTERN EUROPE

The United Nations Security Council passed its fourth and toughest sanctions on Iran last week but was rejected by Brazil and Turkey while Lebanon abstained, all are non-permanent UNSC members. Iran rejected the sanctions and it is yet unknown if what the previous three sanctions could not achieve, the new sanctions will.

The draft proposal of the recent Bonn Climate summit in Germany is being criticized to have mentioned all issues relevant to climate change but having left all the major sticking points unresolved and believed to be developed world oriented.

Bart De Wever of the centrist New Flemish Alliance expected to garnered enough votes to make his party the largest in the parliament, is attempting to actualize a separation between the Flanders (Dutch speaking) and Wallonia (French speaking) region. Such separation could create a domino effect within the neighborhood for other separatist movements and could be hideous for Belgium’s EU status.

In the recent Dutch election the pro-business VVD Party got (31) Labour (30), anti Islam Freedom party (24) and the incumbent (21). VVD is expected to form a coalition government very soon.

Immigration issue resonates across Europe as governments want strict immigration laws that will keep at bay unwanted immigrants. Learning local European languages is becoming an integral part of the immigration requirements. In Britain the new government believes being able to speak English should be a prerequisite for anyone who wants to settle in the country.

Meanwhile the British government last week acknowledged historical administrative errors, and misuse of counterterrorism powers by law enforcement officers (police) across UK. Power was granted for such activity under Britain's 2000 Terrorism Act, which allows police to “stop and search" people at sensitive areas.

CENTRAL AND EASTERN EUROPE

Republika Srpska (RS) Prime Minister Milorad Dodik rejected a statement by Kosovo Foreign Minister Skender Hyseni, who said BiH will soon recognize Kosovo's independence.

Meanwhile Kosovo will have to intensify its reform to accelerate its EU integration. Pristina needs to speed up its judiciary reform. EULEX overseeing the country’s institutional development has extended it Kosovo’s mandate, thus having the prerogative to investigate corrupt practices in Kosovo educational system as was done in the other sectors.

There was consensus in the Croat’s parliament over constitutional amendment towards reforming the country’s labour law. Croatian government has offered labour union leaders negotiating hand in the negotiations; the labour leaders are interested in retaining collective bargaining as opposed to government favored ‘one on one’ bargaining between employer and employee.

The Democratic Union of Integration (DUI), a partner in Macedonia's ruling coalition, marked the eighth anniversary of its establishment with a ceremony in the town of Gostivar. DUI has reiterated its pledge to work towards resolving name dispute and facilitating Macedonia-EU integration.

Romanian government still faces opposition from the people for its austerity plans tailored according to IMF likings. Last week the cabinet submitted two bills to the parliament to this effect. Meanwhile, Romanian Constitutional Court rejected the newly passed lustration law as unconstitutional. Lustration law bans senior officials during the communist-era regime from holding ranking public posts.

Since its establishment in 1993, the U.N. war crimes tribunals on the Balkan wars made its toughest and landmark ruling as two Bosnia Serbs were given life sentences and few other longer jail terms for genocide and war crimes respectively. In the same vein, Croatian authorities extradited Slovenian national Franc Kos to Bosnia and Herzegovina for suspected genocide committed in Srebrenica in 1995. Meanwhile Montenegrin law enforcement also apprehended Marin Krivosic, 45, Serb wanted by Croatia for war crimes committed in 1991.

At the environmental front Croatian government is expected to expend more than 100m Euro for reconstruction process after the country was hit by flood from overflowing river.

According to the criteria of NATO’s membership Albania is expected to invest about 3 billion euros in its defence sector by 2020. Tirana had to double defence spending from about 9m euros in 2005 to about 19m euros in 2009.

Serbia’s participation in the on-going South Africa World Cup tournament is expected to bring ethnic enmity to a pause in the deeply divided nation.

With a fairly good turnout in the last Slovenian referendum, the country has agreed to have international arbitration over the border dispute between Slovenia and Croatia.

Hungary's Presidential election is expected by June 29 and parties have agreed to present their nominations by noon on June 25.

The United States has extended sanctions against Belarus aimed at pressuring democratic reform. The White House said the sanctions target specific officials and citizens who have undermined democratic institutions, committed human rights abuses or benefited from corruption.

The meeting of Syrian President Bashar al-Assad and Belarusian Foreign Minister Sergei Martynov showed the determination of the two countries to exchange mutual cooperation in industry, trade and education.

Estonia's and Latvia's Prime Ministers Andrus Ansip and Valdis Dombrovskis respectively have met to assess report that detailed 65 possible areas for future economic, political and cultural collaboration.

The Polish economy is showing some glimpse of growth as joblessness continues to drop, according to latest report, unemployment declines by 12 %.

Polish energy giant hopes to sell as much as 3 billion zloty ($879 million) of bonds as the company begins raising funds for exploration and production, and to expand into electricity. Subsequently, a South Korean electronics components manufacturer is investing nearly €10m to build a new plant in Poland to turn out semi-finished products for multinational groups.

Meanwhile, exports and a slight pickup in domestic demand fueled growth in Hungary and the Czech Republic in the first quarter, though analysts said fiscal tightening in the euro zone will slow the pace of recovery later this year.

As Ukraine awaits $19 billion loan from IMF, Kiev received a loan of $2 billion from its new bed fellow Russia. Ukraine may seek more bilateral loans from Russia and other countries if the International Monetary Fund turns down its request. Kiev is eyeing an extended economic relation with Turkey and Greece.

In the same vein, Slovakia is geared at improving bilateral trade relations with Indonesia to increasing rubber imports and to offer advanced machinery for rubber-based products.

The European Commission has authorized, under EU State aid rules, a measure adopted by Latvia to limit the adverse impact of the current financial crisis on exporting firms. International Monetary Fund on the other hand had reached an agreement with Latvia that could free more of its international rescue fund.

Meanwhile Lithuania's economic recovery is said to remain fragile, though the Baltic state has managed to withstand the threat of financial collapse.

Despite its small size, Estonia is not hesitant to contest with France in becoming the new EU IT agency host state. IT-savvy Estonia, which already hosts NATO's cyber-defence centre, is also keen to become the European Union's future IT agency.

President of the Czech Republic Václav Klaus committed his country's support for India’s bid for United Nations Security Council membership during his meeting with the Indian Vice-President, Hamid Ansari.

RUSSIA

Russia and Germany have enjoyed sound trade ties but the global financial crisis led to a sharp fall of trade last year, German imports from Russia fell by 30%, to €20.4 billion, or $25 billion; German exports to Russia fell by 36%, to €25.8 billion.

Russian economic growth continues to show great prospect as companies continued hiring and domestic demand accelerated. Meanwhile, Moscow is struggling to gain a footing as one of the world largest wheat exporters, especially to Egypt, a major importer of U.S wheat. Meanwhile Russia, Kazakhstan and Belarus inked agreement on custom union which will make them joint partners for the membership of WTO.

Hundreds of ethnic Circassians gathered last week to call on federal authorities to allow their ethnic group to split off from the Karachayevo-Cherkessia republic to form their own autonomous region within the Russian Federation.

Following its endorsement of the new sanctions against Iran, Russia is now to take the decision whether or not to proceed in selling missile defense systems to Iran a deal that was halted in 2007.

Russia-Iran impasse is further complicated by the recent remark of Russian Foreign Minister Sergei Lavrov at SCO summit saying that Iran having an observer status cannot join SCO because of the new round of UN Security Council sanctions over its nuclear programme.

US/CANADA

President Obama lashed out at the Congress for the supposedly biased and disproportionate assessment of his management of the Gulf of Mexico oil spill. Obama said Congress and few unmentioned politicians were same people accusing his government of big-government and now they are expecting him to do more, which if attempted few months back it would be seen as overreach of federal government.

Meanwhile the British Petroleum Company (BP) is under a lot of pressure that is not faring well for its stockholders, particularly British shareholders angry over what they perceive as an unsatisfactory and over politicized manner of dealing with the issue.

On the other end world markets are reported to have picked up after Federal Reserve Chairman Ben Bernanke said the U.S. recovery is on track and the European debt crisis would not prove too damaging to the world's largest economy.

Meanwhile Obama’s government is trying to persuade Congress to extend emergency health care assistance for unemployed workers that expired May 31^st. The unwilling Congress believes the nation is still unsettled after the passage of $1 trillion insurance overhaul and adding billions more to the deficit in a treacherous election year is unwelcoming.

Ms. Helen Thomas, a revered and longtime White House correspondent has resigned from the media house she worked with and more likely could be refused reception at White House press briefings. After the flotilla incident, she was reported to have said Jews should “get the hell out of Palestine” and go home “to Poland, Germany and America.” The statement irked many American Jews and politicians.

U.S Defense Secretary Robert Gate has criticized the EU for its policy towards Ankara, which according to Gate is shifting Turkey from pro-West to pro-East and Arab centered. According to Gate Ankara's foreign policy, particularly its increasingly strained ties with Israel are a "matter of concern" for the United States.

The Canadian opposition last week disapproved the proposed $1billion expenditure for hosting G8 and G20. It also scorned the proposal to spend $2 million to build a media centre that includes an artificial lake with canoes, trees, deck chairs and a fake dock, saying it would belittle Canada’s natural scenery.

LATIN AMERICA

According to polls, support for the Argentine President Fernandez surged due to a modified economic policy. This can pave the way for a return of her husband, Nestor Kirchner in the next election.

Brazilian election polling forecast puts support for Lula’s favorite (Mrs. Rousseff) and top contestant Mr. Serra on the same note, they both command 37 points. The election is expected to be tight, and run up to the election is punctuated with accusations.

Brazilian president during his weekly radio show announced the introduction of Bolsa Familia plan which will provide job opportunities for the masses. The plan is expected to provide about 13 million families 200 reais or $108 U.S. monthly aid.

Also in Brazil, the Catholic majority country accounts for almost 200,000 women seeking unsafe abortions. The figure provided by a survey conducted by Times is worrisome for the present government.

The plan by the Brazilian government to build a new dam that will cater for the country’s energy need has been met with resistance from native inhabitants around the river who believe it to be an affront to their existence and environment.

China’s Sinopec has lent 20 billion dollars to Brazil’s Petroboras and in exchange it will explore oil in the country. Both countries are exploring all avenues to boost their economic ties.

Chilean finance minister has said more economic growth is expected in this year which will help the reconstruction of infrastructure which was damaged by the earthquake.

Illegal killing continues at the Mexican-U.S border where last week, a 14 years old boy was killed at the Mexican border side with accusing figure being raised towards U.S custom officers. Mexico has urged US authorities for free and fair investigation into the matter.

Argentine and Uruguayan government have reached agreement to strengthen their strategic ties through cooperation on nuclear technology and defence related issues.

AUSTRALASIA

Australian voters served PM Kevin Rudd a political threat last week for his troubling policies which more likely could give conservative opposition leader Tony Abbott edge in the forthcoming election. Voters are disenchanted with Rudd because he shelved a carbon trading scheme and a programme to provide free home insulation, and unveiled a 40 % tax on the mining industry which is heavily invested by shareholders and pension funds.

Although Internet giant Google acknowledged it erred, but the Australian government is undone with it over privacy breach. Google has been accused of collecting private wireless data while taking pictures for its 'Street View' mapping service, for which it will be facing litigation. Google faces similar plight in Europe where, the German and British government accused it of a similar breach. §

________________________________________________________

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.

Please Preview your comments before posting.