Tag Archives: EU

Tragedy Can Be Beautiful Too, by Raúl Ilargi Meijer

The Brits have made a total hash of Brexit. From  at theautomaticearth.com:

I’ve had a few comments lately wondering why I’m against Brexit, while before the referendum I was not. Someone even remembered I had been talking about Beautiful Brexit back in 2016. It’s real simple. Brexit could be, or could have been, a good idea. There’s a lot wrong with the way the European Union is set up. There’s nothing democratic about Germany always having the last say when it comes to important decisions. Slaughtering the entire nation of Greece on the altar of saving Deutsche and Commerzbank says it all.

But Brexit today is not the same -anymore- as it was before or during the June 23 2016 vote. What happened is that nothing happened. The Brits wasted two whole years and change, and the complexity of the process never allowed for that kind of delay. There are many thousands of pages of EU rules and regulations that not only has the UK been bound by over the past 45 years, but that have shaped its own society.

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Italy and Hungary Create ‘Anti-Immigration Axis’ by Soeren Kern

There is a growing pan-European anti-immigration movement, and disparate political actors are finding common cause. From Soeren Kern at gatestoneinstitute.org:

  • “We are close to a historic turning point at the continental level. I am astonished at the stupor of a political left that now exists only to challenge others and believes that Milan should not host the president of a European country, as if the left has the authority to decide who has the right to speak and who does not — and then they wonder why no one votes for them anymore.” — Italian Interior Minister Matteo Salvini.
  • “This is the first of a long series of meetings to change destinies, not only of Italy and of Hungary, but of the whole European continent.” — Italian Interior Minister Matteo Salvini.
  • “We need a new European Commission that is committed to the defense of Europe’s borders. We need a Commission after the European elections that does not punish those countries — like Hungary — that protect their borders.” — Hungarian Prime Minister Viktor Orbán.

Hungarian Prime Minister Viktor Orbán and Italian Interior Minister Matteo Salvini have pledged to create an “anti-immigration axis” aimed at countering the pro-migration policies of the European Union.

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The Sick Man of Europe Returns, by Joschka Fischer

Turkey is in intensive care and may soon be in extremis. From Joschka Fischer at project-syndicate.org:

When the Republic of Turkey emerged from the wreckage of the Ottoman Empire after World War I, its national ambition was to join Europe as a modern, secular state. But after much progress, Turkish President Recep Tayyip Erdoğan has now all but squandered his country’s chance of realizing its founders’ vision.

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Genocide of the Greek Nation, by Paul Craig Roberts

The Greek “rescue” was never about rescuing Greece, but rather rescuing Greece’s bank creditors. From Paul Craig Roberts at paulcraigroberts.org:

The political and media coverup of the genocide of the Greek Nation began yesterday (August 20) with European Union and other political statements announcing that the Greek Crisis is over. What they mean is that Greece is over, dead, and done with. It has been exploited to the limit, and the carcas has been thrown to the dogs.

350,000 Greeks, mainly the young and professionals, have fled dead Greece. The birth rate is far below the rate necessary to sustain the remaining population. The austerity imposed on the Greek people by the EU, the IMF, and the Greek government has resulted in the contraction of the Greek economy by 25%. The decline is the equivalent of America’s Great Depression, but in Greece the effects were worst. President Franklin D. Roosevelt softened the impact of massive unemployment with the Social Security Act other elements of a social safety net such as deposit insurance, and public works programs, whereas the Greek government following the orders from the IMF and EU worsened the impact of massive unemployment by stripping away the social safety net.

Traditionally, when a sovereign country, whether by corruption, mismanagement, bad luck, or unexpected events, found itself unable to repay its debts, the country’s creditors wrote down the debts to the level that the indebted country could service.

With Greece there was a game change. The European Central Bank, led by Jean-Claude Trichet, and the International Monetary Fund ruled that Greece had to pay the full amount of interest and principal on its government bonds held by German, Dutch, French, and Italian banks.

How was this to be achieved?

In two ways, both of which greatly worsened the crisis, leaving Greece today in a far worst position that it was in at the beginning of the crisis almost a decade ago.

At the beginning of the “crisis,” which would have easily been resolved by writing down part of the debt, the Greek debt was 129% of Greek Gross Domestic Product. Today Greek debt is 180% of GDP.

Why?

Greece was lent more money to pay interest to Greece’s creditors, so that they would not have to lose one cent. The additonal lending, called a “bailout” by the presstitute financial media, was not a bailout of Greece. It was a bailout of Greece’s creditors.

To continue reading: Genocide of the Greek Nation

Looks Like Italian Default is Back on the Menu, by Tom Luongo

Will southern European debt or emerging market debt kick off the next financial crisis? They’re both strong contenders, running neck-and-neck. From Tom Luongo at tomluongo.me:

Italian Deputy Prime Minister Matteo Salvini was right to call out the EU over the failure of the bridge in Genoa this week.  It was an act of cheap political grandstanding but one that ultimately rings very true.

It’s a perfect moment to shake people out of their complacency as to the real costs of giving up one’s financial sovereignty to someone else, in this case the Troika — European Commission, ECB and IMF.

Italy is slowly strangling to death thanks to the euro.  There is no other way to describe what is happening.  It’s populist coalition government understands the fundamental problems but, politically, is hamstrung to address them head on.

The political will simply isn’t there to make the break needed to put Italy truly back on the right path, i.e. leave the euro.  But, as the government is set to clash with Brussels over their proposed budget the issues with the euro may come into sharper focus.

Looking at the budget it is two or three steps in the right direction — lower, flat income tax rate, not raising the VAT — but also a step or two in the wrong direction — universal income.

Opening up Italy’s markets and lowering taxpayers’ burdens is the path to sustainable, organic growth, but that is not the purpose of IMF-style austerity.  It’s purpose is to do exactly what it is doing, strangling Italy to death and extracting the wealth and spirit out of the local population, c.f. Greece and before that Russia in the 1990’s.

So, looking at the situation today as the spat between Turkey and the U.S. escalates, it is obvious that Italy is in the crosshairs of any contagion effects into Europe’s banking system.

To continue reading: Looks Like Italian Default is Back on the Menu

Is Europe America’s Friend or Foe? by Jean Pisani-Ferry

It’s hard to tell if Trump regards Europe as a friend or foe. However, Europe has to define itself before it will command respect from either Trump or the world. From Jean Pisani-Ferry at project-syndicate.org:

Since Donald Trump took office as US president, a new cottage industry in rational theories of his seemingly irrational behavior has developed. On one issue, however, no amount of theorizing has made sense of Trump: his treatment of America’s oldest and most reliable ally.

PARIS – Since Donald Trump became US president in January 2017, his conduct has been astonishingly erratic, but his policies have been more consistent than foreseen by most observers. Trump’s volatility has been disconcerting, but on the whole he has acted in accordance with promises made on the campaign trail and with views held long before anyone considered his election possible. Accordingly, a new cottage industry in rational theories of Trump’s seemingly irrational behavior has developed.

The latest challenge is to make sense of his stance towards Europe. At a rally on June 28, he said: “We love the countries of the European Union. But the European Union, of course, was set up to take advantage of the United States. And you know what, we can’t let that happen.” During his recent trip to the continent, he called the EU “a foe” and said it was “possibly as bad as China.” Regarding Brexit, he declared that British Prime Minister Theresa May should have “sued” the EU. Then came the truce, on July 25: Trump and Jean-Claude Juncker, the president of the European Commission, agreed to work jointly on an agenda of free trade and World Trade Organization reform.

So it seems we are friends again – or perhaps just resting before the dispute resumes. But the deeper question remains: Why has Trump repeatedly attacked America’s oldest and most reliable ally? Why does he seem to despise the EU so deeply? Why should the US try to undermine Europe, rather than seeking closer cooperation to protect its economic and geopolitical interests?

To continue reading: Is Europe America’s Friend or Foe?

Trump Calls For EU To Drop All Trade Barriers Ahead Of Juncker Visit, by Tyler Durden

Is President Trump a closet free-trader? From Tyler Durden at zerohedge.com:

With Jean-Claude Juncker probably in the air right now, flying to his White House meeting on Wednesday, President Trump threw a wrench in the prepared script when on Tuesday evening he appealed for a return to (truly) free trade and urged Europe to “drop all Tariffs, Barriers and Subsidies” shortly after his administration imposed tariffs on EU imports, and Europe retaliated.

“That would finally be called Free Market and Fair Trade! Hope they do it, we are ready – but they won’t!” Trump tweeted.

In reference to what promises to be a contentious meeting with Washington’s “foe” – as Trump called the EU in a recent interview, Trump greeted Tuesday morning with a key theme of his presidency:

“Either a country which has treated the United States unfairly on Trade negotiates a fair deal, or it gets hit with Tariffs… Remember, we are the “piggy bank” that’s being robbed…” and also “Countries that have treated us unfairly on trade for years are all coming to Washington to negotiate.”

Juncker told reporters last week he is “upbeat and relaxed”; however, one doesn’t need a crystal ball to know that things are likely not going to go well at the meeting, as Bloomberg reports that the European Commission President “won’t be coming to the White House with a ‘great deal’ on trade to counter Donald Trump’s recent criticism of the European Union and his claims it runs a $150b surplus with the U.S.,” according to an unnamed European official.

The last time the two met face to face, at the recent G7 summit in Quebec, the EU’s most senior official told fellow European leaders that Trump had called him a “brutal killer” — though possibly in the spirit of jesting, over what Trump identified as unfair EU trade policies and fines on American tech companies.

Last week Cecilia Malmstrom, the European Union trade commissioner who is accompanying Juncker on his trip, indicated he would attempt to persuade Trump against his threat of raising tariffs on European car imports, possibly wrecking a $1 trillion trade relationship which the EU says will be disastrous for both sides of the Atlantic, with 15 million jobs on the line.

To continue reading: Trump Calls For EU To Drop All Trade Barriers Ahead Of Juncker Visit

 

The EU’s New Data Protection Rules Are Already Hurting Europeans, by Kal Weiss

The EU’s new data protection rules are hurting those they were ostensibly meant to protect, and helping those they were ostensibly meant to protect from. Welcome to the truth about regulation. From Kai Weiss at mises.org:

It’s finally over: the flood of e-mails that every single human being who possesses an inbox has received in the last few weeks thanks to the new data protection rules by the EU. These rules, called GDPR, have caused havoc even before becoming effective on May 25, and have probably caused the greatest spam wave of all time – all in the name of fighting against spam of course.

The GDPR rules were designed to protect European consumers from data violations by big tech companies (Brussels thinks that Facebook, Google and Co. are abusing the rights of its people), and include – just as a best of – a “right to be forgotten” (meaning that Europeans can ask companies to delete all their data), “consent” (meaning that the data being processed by a company has to be consented to by the individual – though what “consent” means is still disputed), an obligation to hire a data protection officer if you are a bigger company, and above all else, hefty fines for infringements. Those infringements shall “be subject to administrative fines up to €20,000,000, or in the case of an undertaking, up to 4 percent of the total worldwide annual turnover of the preceding financial year, whichever is higher.”

What has been the result of these data protection rules after a little over a month? Summing it up in one word would probably be: chaos. As the trillions of e-mails that were sent around the globe showed, no one really understands what the rules are all about – or what to do about it.

On the day the rules came into effect, several US pages panickingly switched off their platforms in EU countries, among them the Los Angeles Times, the Chicago Tribune, New York Daily News, and Orlando Sentinel. But not only newspapers have blocked Europeans ever since: the list also includesShoes.com,Instapaper, and the History Channel. Meanwhile, ad companies, being hit the most by the new rules, have pulled out of the EU altogether, including Drawbridge and Verve , citing the GDPR as the reason that they can’t continue their business on the Continent anymore. Those staying have had to incur gigantic costs: British companies have reportedly sunk 1.1 billion dollars, and Americans 7.8 billion in preparation for GDPR.

To continue reading: The EU’s New Data Protection Rules Are Already Hurting Europeans

Gross Incompetence, by Raúl Ilargi Meijer

There is no easy or graceful exit for Great Britain from the EU. From Raúl Ilargi Meijer at theautomaticearth.com:

Here’s the lowdown: the EU’s single market mechanism dictates freedom of movement for labor, capital, services and goods. These are not divisible; you cannot have one without the other. Still, that’s precisely what Theresa May, again, is proposing. She basically wants to keep the UK in the single market for goods, and make other arrangements for the rest. The EU will not accept that because it could have 27 other countries coming with their own versions of single market à la carte.

So why does she come with version 826 of what she already knows will not be accepted? And why did her cabinet comply? There are a few possibilities. Perhaps May has finally understood that there is no manner of leaving the EU left to her that will not lead to utter disaster. Maybe she just wants the whole thing to stop. Or maybe Boris Johnson et al, sensing failure for May, see a chance to dethrone her and take over power. Then again, maybe they all look for a way to blame the EU for their own failures.

It’s hard to say, really. What’s obvious, through the comments of industries like Airbus and Jaguar Land Rover, is that 100,000s of jobs are at stake, along with 100s of billions of investments in Britain. Large enterprises are often branched out all through the EU, and they need to comply with EU rules; separate rules for their business with the UK would be a nightmare.

And even smaller companies, to varying degrees, face those same problems. For all you may think of the EU, it has arranged the single market strictly and successfully. There are enormous advantages for companies in that. Take those away and they will look at relocating towards the continent, where they would regain those advantages.

There appear to be three options (and May’s plan is not one of them): a hard Brexit, new elections, or no Brexit at all.

To continue reading:  Gross Incompetence

Your Memes Are Safe (For Now): EU Rejects Internet Censorship Bill, by Carey Wedler

The EU suprisingly rejected a draconian bill that would have put new restrictions on the internet. From Carey Wedler at theantimedia.org:

In an unexpected move, this week the European Parliament rejected a highly controversial bill that critics claimed would stifle free speech and creativity on the internet.

The EU Copyright Directive was heavily criticized over two elements in particular.

Article 11 would have established a “link tax,” which would have required online publishes to pay a fee for the right to link to news organizations. Critics argued the vague language did not adequately define what constitutes a link and said the rule could easily become a tool for political abuse.

According to many opponents, Article 13 would have further stifled free expression in the digital age by tightening copyright rules and requiring platforms to police users’ content. As a letter signed by 70 prominent members of the tech industry asserted:

“By requiring Internet platforms to perform automatic filtering all of the content that their users upload, Article 13 takes an unprecedented step towards the transformation of the Internet from an open platform for sharing and innovation, into a tool for the automated surveillance and control of its users.”

“Article 13 is that it makes no exceptions for fair use, a foundation of the internet an essential caveat in the law that allows people to remix copyrighted works,” Gizmodo noted.

Though proponents of the bill rejected the widespread suggestions that the bill could potentially even make many memes illegal because they often include copyrighted content, the outlet forcefully argued that “Memes, news, Wikipedia, art, privacy, and the creative side of fandom are all at risk of being destroyed or kneecapped.”

The legislation, which was backed by media companies, publishers, and members of the music industry, including Paul McCartney, was ultimately accused of attempting to codify censorship.

Further, the open letter from tech leaders also warned that the costs of implementing such a system would burden smaller companies.

To continue reading: Your Memes Are Safe (For Now): EU Rejects Internet Censorship Bill