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  • Interview Tomáš Sedláček: “We have fetishised economics”

    15 May 2013

    Considered one of the most talented economists of the moment, Tomáš Sedláček believes that economics should be humanised. His international non-fiction bestseller, Economics of Good and Evil, has recently been published in France. Presseurop met him for an interview.

    In Economics of Good and Evil, you argue that the boundaries of economics, which define it as an exact science based on mathematical formulae, should be extended to take into account philosophy, religion and the arts. In what way is this concept new and what does the title refer to?

    We have a tendency to separate technical thinking from issues of the soul. Economics takes pride in being as difficult as possible, and I try to show that if you separate the body from the soul, both of them lose their sense. Classic questions we economists ask ourselves are: does the economy work? Is the economy efficient? But we should be asking what is the purpose of the economy.

    And so what is it then?

    The idea is to connect economics with other disciplines. The Bible loses its sense if you read it only spiritually. Economics loses its sense if you look at it only technically. This is what I am trying to do in my book: talk about the soul of economics and make it visible.

    If we want the economy to be fair, then the economy should look different. If we only want the economy to give us wealth, then how? If we leave all this to the invisible hand of the market, the markets will lead us. I call it an unorchestrated orchestra. If you can not orchestrate it, it will orchestrate you.

    So do we have to reintroduce ethics into the economy?

    There has been a lot of talk about the fact that we need to put ethics and humanity into economics. I agree with that, but economics has ethics of its own: you should be efficient, you should be rational, you should not be emotional; it's alright to be selfish and it’s okay for nations to regard their interests. Every system has its own ethics.

    I have just read a story about Sodom and Gomorrah. The ethical theme there, was that you must not help anybody. It tells a story about two girls who give bread to a hungry beggar. When other people find out they had acted against the ethics of Sodom and Gomorrah, one is burnt alive and the other hung from the city walls where she is covered in honey to be eaten alive by bees. Nazism had an ethics of its own, communism had an ethics of its own and economics has an ethics on its own. So if we are not happy about the ethics of our time, we should change them.

    Is it like some religion that should impose a balance between materiality and spirituality in economics?

    Economics on its own became a sort of religion. It tells us what to do, how to think, who we are, how to find meaning in our lives, how to relate to one another, on which principles the society glues together. In a way, it already has religious properties. Take away the mathematics from the economics, and you are left with pure morality.

    In Economics of Good and Evil, you claim we have become obsessed by the idea of economic growth. Are you against progress?

    I am not against growth or progress. The problem is that we have fetishised it. I am using examples from high and low culture to show that if you fetishise something, it will destroy you. It can be ethics, it can be economics, it can be religion, it can be even your darling. If you fetishise your love, it can drive you nuts. That is what I have called subject-object reversal. You create something that is supposed to listen to you and serve you, then something happens to reverse the subject-object relationship, and you end up listening to it and serving it.

    In literature, I found many examples from Golem to Aladdin's Lamp and The Lord of the Ring. At the beginning, and I still believe it, the system – let's call it market democracy – was a fertile ground for growth. In time, it has reversed and it became a condicio sine qua non of market democracy. We should be grateful when growth happens, but if it doesn't, we should be able to survive. The crisis comes only because we think that we will explode as a civilisation without growth. Growth doesn't happen all the time: some years we invent many things, other years we don't invent anything. Some years we have strong GDP growth, some years we have zero or negative GDP growth.

    Is there anything positive in today’s crisis?

    [Carl] Jung said that nothing can change outside of crisis, least of all human nature. This is not a European crisis, but a crisis of the western world. America, Japan and Europe each try to cope with it their own way. The most important thing is to talk about it. Even people in small villages somewhere up in the mountains talk about Europe now.

    We make fun of America, that they are proud of what they have built. In Europe we are not proud of what we have built. The crisis pushed Europe to integrate faster than ever. If 10 years ago, someone had talked about the fiscal compact, it would have been complete blasphemy. Helping each other like we do today is quite unprecedented. So I hope Europe will come out of this better and stronger. In the good old days, half of Europe was missing. I see crises as an opportunity for Europe to move forward.

    But what about all the Eurosceptic feelings about Europe and euro?

    Compared to the 1920s and 1930s, it does not represent a serious danger.

    What do you think of the European austerity policies that have been implemented since the beginning of the crisis?

    We can compare it to America, which is still doing the same thing, adding more fiscal energy, more deficits, and printing money. Here in Europe, we are trying to bite the bullet. We know that we have become drug dependent on deficit, and we need to go through a painful detox. If we won't do this, the economy will kill us.

    We have to be competitive because of China and other emerging markets. Yes, we are doing austerity in the most inopportune time. In Davos last year, the topic was the great transformation, looking for new models. You never ask yourself who you are until you get into trouble.

    How do you explain that some German politicians refuse to pay for the debts of the Greeks or Portuguese and impose austerity?

    The debate is whether Greece is a market or a part of the family. If somebody from the family breaks a leg, you run and help them, but if your baker breaks a leg, you go to another one. No hard feelings, you are not interested in the baker, you are interested in buying a bread. In America they don't have a problem with this, they were doing transfers from state to state for hundreds of years, but you don't see it much, because it's a federation. In France you do it as well, stronger regions sending money to a weaker ones. We do the same thing in the Czech Republic. So we have to ask, who is our neighbour, is it only France or is it also Greece?

    We know that crises give the opportunity to rethink the economic models. What would you advise to the European leaders to avoid leading their countries into more deficit?

    Some generations ago, European politics had two hands to influence the economy, one to control the monetary policy, the other to influence fiscal policy. Simply put, monetary policy is the monopoly of the government to print money, whereas fiscal policy is the monopoly of government to print debt. Now, we have taken monetary policy away from the politicians, and we have tied their hands behind their backs.

    So, politicians in Europe nowadays can't print money. They still have the one hand, so they can print as much debt as they want, and not much can stop them. The pressure from the European Union and the markets is not enough. The markets react too little and too late, and the European target that we have agreed on as a federation, for nations not have deficits of more than a 3 per cent of the GDP, has proven not to be powerful enough to reduce deficits.

    So this is why Europe doesn't have a problem with inflation, this is why we are trying to solve everything with only one hand, by printing debt. The debate today is about whether we should free both hands or whether we should also tie the second hand. I believe the role of the government should be a minimal and that governments should also give up their control over the level of deficit produced.

    If you look at the state of Europe, what myths or film you would compare it to?

    The Lord of the Rings. Elves and Dwarves hate each other, while Hobbits gather around and live together throughout the difficult times. When everything was fine, nobody was interested in Europe. We started to take for granted that we have peace and commerce. The idea of the European Union was to make trade, not war. The Second World War was a result of the fetishisation of the idea of the nation state. We can view the European Union as an answer to that fetishisation. What we have done, and it was an ingenious move, was to exchange the geographical growth of a nation with its economic growth. But we don't think of GDP of Europe: we still think of GDP of France versus that of Germany versus that of Greece. There is no doubt that trading geographical growth for an economical one is positive and a good thing. Now that we have growth in the economies, we can also trade that for growth in other areas, such as culture, social interaction and other important domains.

  • Interview Mario Monti: “Economic policy must change, but not out of pressure from nationalists”

    10 May 2013

    A lot can change in two years. When we interviewed Mario Monti on the sidelines of the State of the Union conference during the Festival d’Europa in Florence in 2011, the former European commissioner and president of Bocconi University spoke spontanously, during a coffee break. Now that he has added Prime Minister of Italy to his list of former accolades, a bodyguard-surrounded Monti keeps a hectic schedule at the conference’s 2013 edition. However, after a short press conference with Italian journalists eager for his views on his successor Enrico Letto's new coalition government, Monti accepted to speak with Presseurop.

    Two years ago, Monti shared his thoughts on the threats of the crisis on the unique market and the euro. The future of these two pillars of the European Union now seem guaranteed, regardless of how the EU and its member states deal with the crisis. We asked Monti if he believed the current atmosphere in Europe was more favourable to resolving the crisis today than in 2011.

    I have the impression that it is. We have made many concrete moves to end the crisis. We have also directed European policy toward the future, drafting an outline that is about to be finalised of a plan for a true economic and monetary union, under the guidance of the group presided by [European Council President] Herman Van Rompuy. I also believe heads of state and government are finally taking the political and psychological impact of nationalism and populism more seriously into account. I believe economic policy must change, but not out of pressure from nationalists and populists. If we want to adopt certain policies in a climate exposed to the risks presented by nationalism and populism, care must be taken to proceed with caution.

    Throughout his mandate as prime minister, particularly during spring of 2012, Monti attempted, alongside French president François Hollande and Spanish prime minister Mariano Rajoy, to rebalance relations between member states and get Germany to soften its position on many issues. We asked for his thoughts on what the different perspectives and current tensions between France and Germany meant for the continuation of the European project.

    I remain convinced that strong Franco-German ties are an essential condition for Europe to move forward. But if it is essential, it is also not enough. It is also very important for France and Germany not to give the impression they are being exclusive and discriminatory. I believe this was partly the case during the years of cooperation between Nicolas Sarkozy and Angela Merkel, and much less so now between Mrs. Merkel and François Hollande.

  • Interview with Luuk van Middelaar ‘Don’t be afraid of counter-democracy’

    04 April 2013

    Luuk van Middelaar is what is called an engaged observer. Philosopher and historian, he is the author of one of the most exciting books on European Union in recent years, Le Passage à l'Europe, Histoire d’un commencement (The Transition to Europe: Story of a beginning), which earned him several awards, including the European Book Prize in 2012. Since 2009, though, as one of the advisers – and “pen” – of European Council President Herman Van Rompuy, this 39-year old Dutchman has also been at the heart of the system that he dissects.

    In Paris for a conference at the House of Europe, Luuk van Middelaar uses this dual viewpoint to put in perspective the crisis and the changes that the Union is going through. Firstly, the union is now split between the countries with the euro and the countries without it, he says. On the other hand, “Europe has two hearts: the common market, and the euro, which is a transfer of sovereignty that is both immense and underestimated. The states are drawing the conclusions today, and sometimes it is very painful”.

    In fact, notes the historian, “European policy is turning ever more inward.” But this evolution cannot proceed merely through a balance being achieved between Brussels and the national governments. The EU “needs democratic legitimacy at both the national and European levels”. From this point of view, Luuk van Middelaar believes –

    The European public is like the choir, which looks down on the scene but also takes part in it and comments on it. It becomes an actor when it votes, but also when it comes out in the street to express its displeasure. The European public is seeking ways to act. Increasingly, national elections are about Europe. In the Italian elections, the debate has been to define Italy’s relationship with Europe. How the Italians voted was an action, a message. "Do not be afraid of what Pierre Rosanvallon termed ‘the counter-democracy.’"

    The European elections of 2014 will therefore be crucial. While many argue, though, that the president of the next European Commission will be appointed from among the ranks of the political grouping that emerges from the election, Luuk van Middelaar observes that –

    this politicisation, which can strengthen the Commission, can also harm its neutrality in its role as guardian of the treaties. The Commission has some new functions (monitoring national budgets, in particular), which require it to be neutral. This brings up the question of the public and its disappointment, because the Commission will have neither the powers nor the means to shake up the system. More generally, this raises the problem of the Executive power: who can make the decisions for all of the club's member states? I am against good ideas that turn out to be mistaken, and one of them is direct elections for the president of the European Commission.

    After this conference, we continued the discussion with Luuk van Middelaar in a brasserie in the Marais, in the company of the team from European thinktank La Maison de l'Europe (House of Europe). On the menu: pot au feu, veal kidneys and the crisis afflicting the sense of "Europeanness" – what the philosopher, historian and political adviser called the "quest for the public". “When we started to build Europe, the word ‘European’ began to lose its substance,” he says, adding –

    No one spoke about us any longer as Europeans, because the world of the Cold War was divided into three: West, East and the Third World. The word ‘European’ took on an ideological meaning. ‘The Europeans’ became the builders of Europe, those of the inner sphere [defined in his book as the Community institutions] rather than the outer sphere [that of the European continent as a whole]. This began to change with 1989 and the reunification of Europe, a historical shift, and with actions like flying the European flag or the Erasmus programme. In a certain way, we’re still unable to see ourselves as Europeans, unless we go somewhere else in the world. But even if the crisis is creating new tensions between peoples, these tensions arise from being European.

    This crisis, and these tensions, as we know, have been testing the institutions and governance of the EU for the past three years. How does the author of the Transition to Europe, written in 2009, analyse this evolution?

    The decision-making process is the same. The European Council continues to take on the exceptional cases. The difference is that this is stretching into the long term. However, there is a more profound shift underway. The Greek crisis has tested the Community method, in the sense that the Union is now searching for another kind of decision-making. Time is too short to be able to call for a White Paper on the sustainability of public finances. We have to work outside the rules, at least at first, and then to absorb the shock, for example by integrating institutions. The result of the decisions of the heads of state and government is that the European Commission has more power than ever, for supervision, recommendation and implementation. The European Council remains involved as a place where different national policies can be coordinated. After the crisis, there are two hypotheses for what will happen: either we go back to what we had before, with the Council taking a back seat, or we realise that something has changed. No doubt, we will not escape a stronger coordination of economic policies.

    Would the 27 have handled the crisis differently without Herman Van Rompuy, the president of the European Council, the Luuk van Middelaar's boss? “We would have had the rotating Presidency of the Council,” van Middelaar answers, without going on to clarify that, apart from Poland, no major country has chaired the Council – only Ireland and Cyprus, which have been weakened, and Hungary, which has been largely discredited. “The Lisbon Treaty [establishing the post of president of the Council] entered into force just when the crisis erupted. The crisis and this change have played a role.” It’s difficult, therefore, to assess the contribution of Van Rompuy openly.

    And, looking at his own work, what lesson has the philosopher learned from his experience? “When I wrote Transition to Europe I thought the decisive events would come from outside the EU, not inside. But they confirm my analyses of the event-driven nature of European policy. Policy is something felt in the present, but also the future.

  • Agriculture Dacian Cioloş: Organic farming is my next mission

    08 March 2013

    Supported by the right and the left, the Commissioner for Agriculture, Dacian Ciolos, defends his reform of the Common Agricultural Policy (CAP), which is expected to be adopted this year. Presseurop met with him at the BioFach Organic Trade Fair in Nuremberg.

    Presseurop: What is the status of the CAP in the aftermath of the European Council on February 7 and 8, in which the 27 member states agreed the EU budget for 2014-2020?

    Dacian Cioloş: The fact that the European Council reached a decision on the budget was very important for agriculture, because in the absence of an agreement, we would have been unable to move forward with talks. I cannot say that I am delighted by the fact that the sum initially proposed by the Commission has been docked by 6 per cent. But if you look at the amount that was docked from the overall budget, you will see that the cuts in agriculture are lower than average.

    What are the next steps for CAP reform?

    As I was saying, the 6 per cent budget reduction will not affect the reform of the CAP. The decision will have to be approved by parliament, in March we will have the Agriculture Council’s decision, then, in April, we will begin trilateral talks – with the Agriculture Council, the European Parliament and the Commission.

    You must often come under pressure from agri-food industry lobbyists. How do you go about imposing your point of view?

    I have no difficulty imposing my ideas. I try to listen, make suggestions, and to convince them with rock-solid logic, even the most stubborn ones. You have to bear in mind that there are certain limits in agriculture which even lobbyists have to take into account if they want to avoid serious consequences. One obvious fact, which has not been decreed by the Commission and does not figure in any legislation, is that problems emerge very quickly whenever the connection with nature is not sustained: for example the soil depletion that occurs when adequate fertiliser is not used. Even those lobbyists who are not supporters of the reform have to acknowledge this kind of logic.

    Having said that, the difficulties of our current situation are to some extent our fault too, because, as consumers, we want more produce, and we want it faster and cheaper. So we push farmers in a certain direction. It is not going to be be easy to change course now, because investment in agriculture takes place over generations. But I believe that when you have solid arguments and a willingness to listen to others, you can reach a positive compromise that will move things in the right direction. Having spoken with many of those who have criticised the reform, I have realised that they are not motivated by ill will, but by simply by a need to defend their interests.

    Do organic farming and greening form part of this positive compromise?

    In my view, the idea of organic agriculture is one that extends beyond the traditional paradigm for the development of agriculture. It is a novel concept which has slowly been making progress — a conventional form of agricultural practice, but one that demonstrates that things can be done differently and one that meets a certain need on the part of consumers. However, I do not think we should contemplate separating European agriculture into two, or that we should say that we will support organic agriculture and abandon other existing models. We have to strike a balance, and take advantage of the fact that we are now at crossroads where some of the ideas from organic farming can be used to influence more traditional practice so that it can move forward.

    When you launched the reform of the CAP, you organised public debates. Are you planning to organise consultation about the future of organic farming?

    The review of organic agriculture policy is one of our future projects, and a consultation process in which Europeans are invited to participate is already underway. The survey will be online until April 10.

    Interview by Iulia Badea-Guéritée

  • Interview Friedrich Moser: “There’s a democratic deficit in the EU”

    08 February 2013

    The Brussels Business, to be broadcasted on Arte on 12 February, explores the shadowy universe of the powerful lobby groups at work behind the scenes of the European Union institutions, revealing their opaque and crucial influence on decisions that affect the daily lives of Europe’s citizens.

    The film’s co-director Frederich Moser tells Presseurop how the idea of making a movie on such a touchy subject came to him, how he managed to persuade the lobbyists to take part, and his ideas on the EU and its future.

    Presseurop – Why did you choose to make this movie about Brussels lobbyists?

    Friedrich Moser - It's a long story: when I made my very first documetary, in 2001, it was about the variety of languages on Europe. Two months after finishing the film, I was contacted by the European Training Institute, which is very well known in Brussels, but no-one knows it outside. They invited me to join in for a crash course on understanding the European institutions for a weekend…for €1,750 plus VAT. And I thought that sum was very high and that there are organisations in Brussels who want to get into the pockets of the people who want to inform themselves.

    With time, my idea changed a bit. And I thought that maybe the European institutions are so complicated that you need those expensive crash-courses. Since then, I wanted to make a film about that. But I lacked three things: 1. I got no access to people; 2. I had no story and 3. I had no knowledge about how it worked. So I contacted the co-director of the movie, Mathieu Lietaert, who is a political scientist focusing specifically on lobbying in Brussels. With his knowledge and his access, we manage to get in touch with the people you see in the movie. That was 2008.

    Why did you choose lobbying as a subject for your movie?

    It was intriguing for me to see that on a national level, we all know who is behind politics, who is influential and who is not — industrialists and trade unions mostly. On the European level, you have absolutely no knowledge about it and what triggered me was to look at how this is working behind the scenes and who are these people circulating around the institutions. What are the think-tanks. All those things are well known in the US, but completely unknown in Europe.

    In your movie, there are two people, the European Roundtable of Industrialists (ERT) boss Keith Richardson and the lobbyist Pascal Kerneis, from the European Services Forum (ESF), who seemed to be really at the top edge of the "Brussels Business". How did you manage to get them involved?

    They were actually quite easy to get involved, because from the beginning we were very clear about the fact that we wanted to have both sides of the issue: those who were monitoring lobby groups and the lobbyists themselves. When Matthieu was doing his research, Pascal Kerneis complained about the bad image lobbyists have. Their job is perceived by the public as almost like prostitution, while it's an ordinary job. So his point was to show in our movie what his job was about. How lobbyists work, how they think,what their strategies are. And to give them a face, bringing them out of the grey and shadowy zone where they usually are placed.

    With Keith Richardson, we know we'd cover the story of the European Single Market (ESM) because we knew it was the most influential lobbyist group in Brussels: the outcome was the European Union as we know it, with a single market as we know it, which are the fundamentals of the way we live in Europe today. We told Richardson we wanted to focus on the moment when the Single Market was shaped and wanted to interview the economic actors who were behind this shaping. He told us he was wanting to write a book about that, but that his publisher wasn't interested in a story — he said — no-one would be willing to read. So he was pretty happy to tell us his story.

    What is your opinion on lobbying?

    We think lobbying is inevitable for democracy to work, because you have to bundle interests, and those interests have to be taken into consideration. But, if you don't regulate it, if you don't have clear rules, transparency, fairness, the outcome of politics will be hugely impacted by lobbying. This is the problem we have in Europe now: lobbying is neither transparent enough nor fair enough.

    It is not fair because the number of business lobbyists, compared to the number of consumer organisations is 50 to 1 in Brussels, while it is not like this on a national level. On the national level, trade unions and big business are on the same level and treated in the same way by the State. Sometimes one prevails on the other, but in the end, they have an equal weight.

    In Brussels, it is not the case : industry prevails pretty much. You have around a thousand expert groups advising the European Commission on how to make legislation and to impose regulation. And most of them, by far, are dominated by business’ interests. And business' interests representatives. We think it is important to listen to business, but also to consumer organisations, to civil society. There needs to be a fair treatment of both sides.

    Is the competition between business and civil society balanced?

    Certainly not. Take for example the De Larosière expert group you see in the film. They were advising the Commission on financial regulation, after the financial crisis that started in 2008. Those eight experts had personal links to those who provoked the crisis or had a track record on deregulation. It’s quite an achievement to find, on a continent of 500 million people, the eight people who should not be advising on regulating the financial sector.

    Are the EU institutions democratic in your opinion?

    They are. But there is a democratic deficit compared to the member states. Firstly because, in the member states, the Parliament is involved in the legislative process from the very beginning. This means you have a debate from the start. In Brussels it is not the case. This is why we demand that the European Parliament is given the right to initiate legislation. It will be beneficial on both sides because presently, the Parliament can only block the Commission’s or the Council’s proposals.

    Secondly, there’s no public debate on European topics because the press does not talk about them: 80 per cent of what controls our daily life starts out as a legislation in Brussels. So, it should be treated as an internal politics by the media. But the media treat it as external affairs, or say “European affairs are so complicated that people are not interested.” So people are not aware of what happens in Brussels.

    But through the screening we’ve done lately, our experience shows that there is a huge interest on European topics. We’ve seen it in the schools we showed our movie: young people are eager to know and to get involved in the EU affairs.

    In the movie, it looks like the European Single Market has been designed according to the wishes of the industrial lobby and implemented by the Delors Commission (1985-1995), with the European citizens having no word on its shaping. Do you have the impression that public opinion had nothing to do with it?

    We have to go back to the early days of the European construction: the European community was an elite project by the political and economical european leadership after WW2. In those years, it was probably not possible to have a debate involving all the European citizens. As an elite project, it has been successful. But as the Single Market and the European Union as we know it today went on, the economic cooperation organisation became a political power. But now we don’t have the level of public involvement that a political power should have. This is the main problem and the reason why so many European citizens are turning their back on Europe: they don’t feel represented.

    Of course, the ESM was not dictated by the ERT, but is was copy-pasted by the Commission. The ESM is a good thing, but it is not complete, because you don’t have the same rules everywhere, for example in the taxation policies. The ESM has been largely created to build up “European champions”: companies that could compete with the American and Japanese multinationals. This has allowed a lot of jobs to be preserved in Europe. But it also led to a kind of unfair competition between the European “champions” and the small and medium enterprises (SMEs). Especially on financial and tax grounds: big multinational companies can compensate losses in one country by profits in another and use the most profitable tax system, while SMEs cannot.

    Do you see any kind of democratic evolution in the European institutions lately?

    With the Lisbon treaty, there has been a shift of powers from the European Commission towards the European Parliament. But at the same time, there’s been a shift of powers from the member states to the European Commission. So the latter is still the most important institution in Brussels. But its members are not elected — neither is the European Council president. I believe that they would be more legitimate if they had to pass the electoral test. It would also counterbalance the weight of the member states.

    Do you still have faith in Europe, after having seen it from the inside?

    Of course, I do. I would never have made this film if I had not been a confirmed pro-European, and the sames goes with Matthieu. I’m Austrian and I’ve been living in several European countries. I did my Erasmus in Spain. I lived 12 years in Italy and live now between Austria, Germany and Italy, without having to change my money. That’s pretty much an achievement.

    I do trust the European institutions, but they must be adapted to accommodate the powers that they have been given. That is to say, they should be more democratic. Would I abolish the EU? Certainly not. I believe in a more integrated EU.

    Interview by Gian Paolo Accardo

    Photo by Stefanie Langer – © Friedrich Moser

  • Interview Gianni Pittella: “It’s time to turn the page on austerity”

    05 December 2012

    On 29 November, the Commission on Economic and Monetary Affairs of the European Parliament approved the assembly's position on the supervision of the European banking system. This position will serve as the basis for negotiations with the Member States over the text on the banking union to be adopted by the Council of Finance Ministers on December 4th. It's an issue that the Vice-President of the Parliament, Gianni Pittella, has followed closely. In an interview on the eve of the Commission's vote, he shares his views with Presseurop.

    Presseurop – Where are we at in the union and the banking supervision?

    Gianni Pittella – Berlin had no desire at all to let the European Central Bank (ECB) exercise any control over the smaller banks, especially the almost 1,600 Landesbanken (regional banks) and savings banks in Germany. But we have reached a compromise: the supervisory committee of the ECB will be responsible for national banks and those whose failure would entail a risk to the whole system, as well as those struggling banks that have asked for financial assistance. The national banking authorities are to have oversight over the remaining banks. The ECB, though, will have the chance to look at the books of the latter if it considers that necessary, and on a case-by-case basis. Parliament will also ensure that there is no conflict of interests between the regulator and the banks being regulated. It's a sensitive issue, particularly because of the extreme permeability of the banking sector. Then, we have established that the president and vice-president of the supervisory committee are to be elected after having been approved by the European Parliament – like the President of the ECB, for that matter – to ensure democratic control over this organisation. We are also asking that the oversight committee be in constant contact with the Parliamentary Commission on Economic and Monetary Affairs.  As for putting it into force, we hope that the Council approves it at the summit on 13 and 14 December, so that supervision can gradually get underway in early 2013. Once this Banking Supervision Committee has been adopted, what steps remain before a true banking union is achieved? There are still a few steps ahead of us, including the harmonising of bank deposit regulations. But the most important thing is the supervision. It's even a revolution: to go from 27 national supervisors from the 27 states – something absolutely contradictory in a Europe of supra-national banks, a real handicap – to a sole supervisor. If we stick with the current system, we won't be able to prevent new banking crises. Bringing in the single banking supervisory authority also has the advantage of being a virtuous circle: if we create the banking union, we can also create the economic and fiscal union. And then political union, because it makes no sense to share only the economic and financial aspects at the EU level, and not the political aspect too. Do you believe in a political union? Yes! Even if there is resistance that we must strive to overcome. And I hope that from 2014, when the next European elections are to be held, we can set up a new European Convention, which will offer the Union new rules on the political agenda and set the framework for the political union to come. Do you think Parliament has a role to play in the economic life of the Union and in the search for solutions to the economic crisis? With the Lisbon Treaty, the Parliament became an equal in the decision-making. I think that within a few years it will become a genuine legislative chamber. Eventually, it will have to become THE legislative chamber of the European Union. Today we want to make our voices heard on how to manage the crisis. We are fighting to make those who preach austerity understand that all the analyses confirm that the effects of a policy based solely on austerity are devastating: public debt is not declining, the recession is entrenched, unemployment is growing, domestic demand is falling, Europe is losing international competitiveness and forecasts of a return to growth say we'll have to wait until 2014. Do you have alternative proposals? We must turn the page on austerity. The time for investment has come.  We want a European plan for growth, social cohesion and sustainable development. A plan based on the financing of tangible and intangible infrastructure networks. The first in line are the rail networks, energy networks, telematic networks and renewable energies. The second part is education, training, research and youth mobility. It is a programme that will cost hundreds of billions of euros, and we must put it in place as quickly as we can. And where do you expect to find these billions, while member states are facing budget cuts, which in some cases are massive, because they are running out of money? We must bring in European treasury bonds – the famous eurobonds – to collect some 3,000 billion euros. It's not me who made up this sum: economists led by [former President of the European Commission] Romano Prodi and [Italian economist] Alberto Quadro Curzio came up with it. Of that, 2,300 billion euros would be earmarked for a pooling of European debt, and thus to reduce it; the remaining 700 billion would be used to finance the investment plan. We could tell Merkel and the citizens of Germany: “Look, launching these eurobonds will not cost you a penny, because they will be backed by the gold reserves of the Member States and their public assets.” The states can back both their own debt and a possible European public debt? Their gold reserves and their public assets are enough. We could decide that states would guarantee eurobonds with that part of their GDP exceeding 60 percent [that portion of public debt allowed by the convergence criteria for the eurozone]. Technically it's feasible. We must acknowledge that this is the correct solution. After that, if to support the eurobonds Merkel demands moving towards fiscal union, i.e. the eurozone Member States will meet the criteria set by the fiscal compact and there are stricter controls [by the EU] on their balance sheet policies, I say “OK”. Provided that at the same time we also move ahead with political union. You mentioned the assumption that Parliament becomes the Legislative Chamber of the EU. Currently, this role is played by the Council. In this scenario, how do you envision the relationship between the two institutions? I imagine a bicameral legislature – the Council being the second chamber, a sort of Senate – where the two chambers have equal powers. The President of the Council would be considered equivalent to a President of the Senate. Unless we want to imagine turning the Council into an executive organ, but that would raise the question of the role of the Commission. In the future, do you imagine instead a federal EU, or a union of two or even three speeds, or a more intergovernmental union? My wish is to achieve a federal union. The intergovernmental union has not produced brilliant results, because the intergovernmental logic is that all negotiations are governed by national interests. And it is clear that these diverge. A reform often mentioned in the articles we have published is that the President of the Commission and the European Commissioners be elected by universal suffrage. What is your view? I'm for the direct election of the President of the Commission.  And it could be done even by 2014, without wreaking havoc on the current rules governing the European elections: if the parties belonging to a political grouping in the European Parliament state during the campaign who their candidate for the presidency of the Commission will be, the voters will also be voting for the latter. If the Party of European Socialists chooses the current President of the Parliament, Martin Schulz – whom I support, because he has all the necessary stature for this position – all the affiliated parties will declare Schulz their candidate. What do you think of the hypothesis of transnational candidate lists, with candidates who campaign in countries other than their own? I'm in favour of it.  I'm also all for electing Commissioners from among the MEPs, as it would let us get away from having them nominated by governments. And that would help us resolve the democratic deficit, which is one of the evils afflicting Europe today.

    Interview by Gian Paolo Accardo

  • European Youth Parliament EU’s young generation tackling the crisis

    14 November 2012

    “Putting an end to the crisis”: the subject has preoccupied the minds of European leaders for many months without yielding any valid results. So why not embark on a quest for different ideas and take a look at the fresh perspectives in a debate between secondary school students from countries across the continent?

    This was the spirit of the 71st session of the European Youth Parliament (EYP) held in Amsterdam from the 2nd to 10th November, for which Presseurop was one of the media partners.

    Over eight days, 220 delegates aged from 16 to 20 hailing from some 36 countries examined such diverse issues as access to education and employment, monetary and banking unions, as well as gender equality in the workplace and in European diplomacy. Presented by 15 committees which mirror the committees of the real European parliament, 15 resolutions were submitted for debate and a vote in the general assembly. The 13 resolutions adopted will be transmitted to Brussels in the hope that they may inspire future legislation prepared by the European commission and voted by the European parliament.

    Established 25 years ago in Fontainebleau, every year the EYP holds three international sessions and about 100 other national and international meetings. Approximately 40 resolutions are adopted every year, but none of the participants can remember one that was transcribed into European law.

    Perhaps this is because, as Prince Constantijn of the Netherlands (who is also the deputy director of cabinet for his compatriot and European Commissioner for Digital Strategy, Nellie Kroes,) explained at the opening of the session, the youth parliament is just one of several dozen thematic European parliaments with specific categories for delegates.

    At the same time, it may be that as an organisation which is open to young people from Council of Europe countries (plus Belarus), it has not become established as the juvenile counterpart of the European parliament.

    However the European Youth Parliament is not limited to this lofty aspiration or idealistic purpose. As the President of the 71st session, Gillian O’Halloran, explains “EYP is a youth organization that is directed at bringing young people from across the Europe together.”

    Its objective, she adds, is to bridge “cultural barriers between young people of different nationalities and different backgrounds and it provides them a platform to discuss these matters in a way whereby they get to represent their own opinion rather than for example that of their country or any organization.”

    The EYP is first and foremost a space for learning about European citizenship, in which reflection and exchanges are both a means and an end in themselves. The conduct of the debates, which are in English and to a more limited extent in French (the two official languages of the EYP), is evidence that this ambition has been realised.

    Largely at ease and well informed on the subjects at issue, which they have discussed with representatives of European institutions at the committee stage, the delegates are more than able to hold a clear and combative debate. This also highlights the fact that the delegates, who at the national level are mainly selected from school clubs run by teachers, are, as Gillian O’Halloran notes, “the cream of the crop”.

    Having said that, it would be wrong to conclude that the EYP is a club for a European elite. Not all of its members come from major secondary schools in major European cities, and not all of them – as the debates amply illustrated – are unconditional Euro-enthusiasts. And in this regard, with its qualities and its faults, the European Youth Parliament is indeed a reflection of today’s Europe.

  • Debate Is democracy shrinking?

    14 September 2012

    With national leaders apparently unable to act, such institutions as the European Central Bank, the German constitutional court, and the European Court of Justice are playing an increasingly influential role in European affairs. French political analyst Antoine Vauchez argues that their intervention amounts to a bending of the rules of democracy which urgently needs to be addressed. Is there any better illustration of the current paradox of European democracy than the fact that its fate hangs in the balance in the decisions of the board of the European Central Bank and the rulings of the German constitutional court? European political leaders have become so convinced of their lack of legitimacy and their inability to win the “battle of credibility” that opposes sovereign states and the markets, they are voluntarily giving up their room for manoeuvre to “independent” institutions and automatic penalties (the notorious fiscal compact), thereby enabling judges (both national and European ) and central bankers to dominate the daily conduct of European affairs. Better still, in a remarkable demonstration of upside down logic, these “independent” officials are monopolising the debate on the future of the political union, extending the scope of their intervention well beyond their mere mandate as civil servants: to wit the magic worked by the management of the ECB who have transformed a brief to maintain price stability into a platform from which they can demand structural reforms (labour market, wage agreements etc…) and, more recently, intrude on discussions on the architecture of the future political union… And, let’s not forget that they are already directly intervening in the drafting of future treaties, as is currently the case with the mission attributed to the group of four so-called “wise men” who head the ECB, the European Commission, Eurogroup and the European Council.

    Direct elections

    Finally, we have been treated to the supreme irony of these “independents” calling on member states to fulfill their democratic obligations, with Bundesbank President Jens Weidmann and ECB President Mario Draghi banging on about the need for “democratic responsibility” in new institutional structures, and the German constitutional court positioning itself as the last line of defence for the country’s parliament etc… All of this has served to highlight the precariousness of democratic legitimacy in the union, and the solid control exercised by “apolitical” institutions: courts, central banks, and other authorities and agencies etc. In spite of two decades of wishful attempts to reinforce the powers of the European parliament, the chain of delegation that connects democratically elected representatives to “independent” institutions has continued to lengthen. In this context, it is hard to believe José Manuel Barroso when he says, as he did last June on the occasion of the G20 summit, that Europe does not need to “receive lessons” in democracy from emerging countries. Any attempt to reorient the course of the European project would have a greater chance of success if it took as its starting point the more realistic observation that European democracy is shrinking.

    With this in mind, the introduction of direct elections for the presidency of the European commission – the current credo of German diplomacy – will not be enough to create a fresh momentum to push European politics towards greater democracy. This measure could even have the opposite impact if it is accompanied – as many German conservatives ardently hope it will be – by the granting of greater powers to the European Central Bank and the European Court of Justice.

    Black boxes

    The overhaul of the political union should in fact prioritise the bid to develop new forms of democratic connection with Europe’s “independent” institutions. In all likelihood, it is probably too late to restrict the scope of their competency, but there is still time to rethink the two pillars on which their authority has been based: a certain notion of their independence sustained by belief in their separation from vested interests on the one hand, and a certain assumption of scientific objectivity in their analyses and verdicts on the other.

    Concerning the first of these points, the introduction of a form of representation for social partners and political minorities would act as a safeguard for an authentic ‘independence’ by ensuring that these emergent spaces for the conduct of European politics are not monopolised by particular groups, political camps or ideologies.

    Such a pluralist approach is the only way to expand the scope of the debate on indissociably technical and political issues so that it is not the sole preserve of lawyers and economists: this is the second point. While they still have control over the nomination of the members of these institutions, national governments will have to take the initiative to open these black boxes. If they do not Europe’s democratic institutions – and in particular the European parliament – will be mere smokescreens.

  • What is news? The prince and the public interest

    29 August 2012

    The Sun newspaper's publication of nude photographs of Prince Harry has reinvigorated the hue-and-cry about the antics of the British tabloids, but amid the complaints, the issue of what news is actually for is the buried lede.

    So far 850 complaints have been made to the Press Complaints Commission about the decision of the Sun to publish candid nude photographs of Britain's Prince Harry. Coming at a time when the press is under political scrutiny, many feel the Sun's editorial decision has handed Lord Leveson the corpse of press freedom on a plate. 

    Perhaps. Or perhaps not. In fact, in defying the monarchy's demand to effectively censor themselves, the Sun has indeed made a clear demand for freedom of the press. But freedom for what purpose, precisely? 

    It seems likely that Rupert Murdoch, a curious figure who is both immensely wealthy and powerful and yet remains disliked as a déclassé outsider, chose to allow his newspaper to run the photographs out of spite, or at least to show two fingers to the Leveson Inquiry into press ethics. Certainly Mr Murdoch's own message on the social network Twitter, "Needed to demonstrate no such thing as free press in UK. Internet makes mockery of these issues. Ist amendment please", implies as much.

    The defence is simple: the photographs were already a mere mouse click away and had been published in newspapers outside Britain, including the Irish edition of the Daily Star, a hybrid newspaper half-owned by the the Star's publisher Northern and Shell. As such it is absurd that the act of printing photographs already widely available, including in Britain, on paper, should somehow constitute an offence.

    Some have argued that lots of things unfit for publication are a click away on the internet, hardcore pornography for instance. True, but the difference is that hardcore pornography is not news, whereas the third in line to the throne, naked in a hotel room had already proved itself to be.

    This, then, is the nub of the question: what makes something newsworthy? The term news itself is merely an archaic plural of new, so the Harry pictures certainly meet that definition. Any loftier definition of newsworthiness requires some serious thought.

    Personally I don't care what Prince Harry does, and I suspect many feel the same way, but a great deal of other people clearly felt otherwise. The interests of the public and public interest are not necessarily the same thing, but to defend a higher-minded vision of the public interest is increasingly difficult today. 

    Here's why: news is a political, and democratic, business – but not in the way either of those words are bandied about today.

    The politics of news

    News is fundamentally political, but not in the sense of serving partisan ideology, though the partisan press does have a role to play. Instead, journalism is political precisely because it is not only a record of human events, but exists to make sense of these events. It is a guide to action. The agency lies, firstly, in the reporter collecting, sorting and assembling facts into a record of events, editors checking and re-sorting these records and publishing them and, finally, in the reader or viewer using the totality this information to navigate their way in the world. In short, news creates the ground for political actors and, as such, it is fundamental to the public sphere. 

    This is why an old-fashioned printed newspaper is democratic, but not in the manner implied by the counter-cultural internet boosters who understand "democratic media" solely to mean a media that is both unpaid and participatory. 

    The Harry photos were a form of gossip, obviously. But then, news without politics always is. If the process of politics, if political agency itself, is absent then news has no meaning and can have no instrumental value. 

    At its best journalism is an activity whose codified rules ensure it is not merely gossip, anecdote or conversation, and one that crystallises events more clearly than what unfolds before the naked glass eye of any smartphone camera. But if we want serious news then, one way or another, we have to be willing to pay for it and, more importantly, there has to be something at stake in society. Something that really matters; today's tedious issues, such as a few percentage points here or there on taxation, are not enough. The news business is in turmoil not only because of the threat of new media, but because news itself has lost purchase in a society where politics, the primary commodity of that business, has been reduced to little more than a sham fight.

    We can sneer at the tabloids all we like, or even make misty-eyed complaints that the popular press isn't what it used to be under the likes of legendary Daily Mirror editor Hugh Cudlipp, but the truth is the decline of news is intimately linked to the state of politics – and the decline of politics came first.

    Still, against the backdrop of the Leveson Inquiry and the do-not-publish dictate from the monarchy it's hard to damn the Sun for publishing the pictures, even if it was little more than the act of one old-fashioned press baron thumbing his nose at actual princes, lords and barons.

  • Working hours Cometh the hour, cometh the (same) man

    28 August 2012

    Recently published EU research says that full-time workers are pulling longer shifts in the face of ongoing economic slump, but hours worked do not equal productivity, says Jason Walsh.

    A study performed by Eurofound, the European Union's labour research agency, has found that working hours have increased across the EU, with workers taking-up the slack left by colleagues who have lost their jobs and working longer just to stay in employment.

    What is clear is that the traditional office hours of nine-to-five appear to be long behind us, and with most professionals and office-bound workers not actually clocking-on and off it is difficult to know precisely how many hours people are actually working. Indeed, in an era of always-on internet access, smartphones and tablets it is hardly news that more and more of us are taking work home with us.

    The aggregate increase across EU as a whole isn't so great: just twelve minutes, up from 39.5 hours per week to 39.7. That figure disguises a number of important facts, however.

    Firstly, the survey is only of full-time workers. What of part-timers working extra hours? What of those with more than one job?

    Secondly, disparities in working time remain across the EU. The post-2004 accession states work the longest hours, but are also the only cohort of countries to see hours dropping as they begin to come into line with EU norms. 

    Among the rest there is no correlation between long hours and economic success. Finns work the fewest hours in the EU, at just 37.8, while Greeks work 40 hours per week and Germans work only slightly more at 40.6. 

    The World Economic Forum's 2011-2012 Global Competitiveness Report says the ten most productive and competitive economies are, in descending order,  Switzerland, Singapore, Sweden, Finland, the United States, Germany, Netherlands, Denmark, Japan and the United Kingdom. Of these the US, Singapore and Japan are notorious for their long hours cultures. The culture in the other seven varies.

    Thirdly, as the study was at pains to point out, the greatest differential is between agreed and actual working hours: right across the EU, as well as across industrial sectors, people work longer hours than are specified in contracts and union agreements –  and in some cases, employment law.

    What is true of a macro level, that long hours do not a strong economy make, may also be true on a micro level. Despite demands on workers to pull ever-longer shifts, productivity slumps when we work too long; a piece of knowedge that we've had since since the early decades of the twentieth century.

    This isn't just about the spectre of "presenteeism", the desire to be seen to be in the office regardless of whether you are working or faffing-around on Facebook. Study after study has borne out the fact that there is only so much useful work any one person can do. 

    There is nothing inherently wrong with long hours, particularly if workers are recompensed appropriately, but hanging around the office for no real reason other than trying to impress the boss does neither party any favours.

    Image by Jake Ryan. CC licenced.

     

  • Hactivism Hacked off with hactivism

    26 July 2012

    The honeymoon may be over for the alliance between protest politics and hacker culture, says Angela Nagle.

    In a move that will shock those who see computer hackers as the techno wing of the political left, a Danish group self-identifying as a wing of the anarchic collective "Anonymous" has taken the side of the bosses in a recent conflict between the Danish restaurant Vejlegaarden and the union 3F.

    A Distributed Denial of Service (DDoS) attack was carried out by supporters of AnonDK, causing the site to be taken offline for several days, denying members access unemployment insurance payments. The attacks have since spread to websites of the Social Democratic Party and the national trade union confederation. 3F has been in conflict with the restaurant since they aparrently ended an agreement with the union in favour of the less militant Krifa. The conflict has escalated, with increasing media coverage in Denmark, resulting in a picket outside the restaurant and services to the restaurant such a postal delivery halted as other unions have acted in solidarity. When the union threatened to launch a strike at the printing press of a local newspaper which ran the restaurant’s adverts, Danish hackers AnonDK, got involved.  AnonDK posted a video on YouTube declaring war on 3F for attacking the restaurant's freedom of speech and, in a moment quite beyond parody, declared the union's "carbon based class struggle" to be old fashioned and irrelevant. Other groups identifying as and with Anonymous condemned the DDoS attack, which involved the participation of hackers from around the world, and hackers are keen, as always, to highlight that these actions don’t represent Anonymous as a whole. Several Anonymous manifestos have stated that Anonymous is not an organisation of hackers but a “living consciousness” comprised of individuals acting anonymously online with at times coinciding ideas and goals, stressing that it has no formal affiliations. It is decentralised and often compares itself to a swarm. It is easy to see then why it held such appeal for the protest movements of the last few years from the Spanish ‘indignados’ to The "Occupy" movement. The hacker collective, whose Guy Fawkes mask has become a regular feature on any and every demonstration and a symbol of the new digital protest sensibility, has received an enormous amount of cultural validation from figures on the left. Heather Brooke and the BBC's Paul Mason have cast them as the vanguard of contemporary protest movements while self-styled radical journalist Laurie Penny described "the culture of lulz" in falttering terms and DDoS hacking as a kind of "digital sit in". What should be surprising about all of this is not that Anonymous have been seen to take the bosses’ side in a labour dispute but that anyone is surprised by what they have done. Anonymous have long been associated with some of the nastiest, most iditotic behaviour online for years, but those who romanticise the group have shown little sympathy for its less political victims.

    For example, Anonymous hacked an epilepsy website and placed on the site images that would bring on an epileptic fit. They have attacked individuals with whom they disagree including exposing the embarrassing private emails of people employed to investgate cybercrime. They would later progress to DDoS attacking feminist websites. Anyone familiar with the squalid online culture Anonymous arose from should have been horrified by their adoption as pet radicals in recent years, but instead they were credulously welcomed as the new mascot of everything from anti-cuts movements to student and secularism protests.

    Why would a collective which is by definition anti-organisation be assumed to have any affinity with organised labour? Indeed why would a group proudly lacking any coherent programme or moral core be expected to behave in a principled way on this or any issue? Like some recent protest movements, its stance of having no official politics and no official demands or structures provides the perfect get out clause for any action. It wasn’t really Anonymous, their apologists argue, because there is no real Anonymous. But if that is true and they don’t have to take any responsibility for any ‘bad’ hacking, then they should also be stripped of praise for any ‘good’ hacking. 

    The few critical voices that have emerged with a sophisticated critique of DDoS hacking have come from tech writers, not from issue-hopping celebrity radicals. In a very counter-intuitive debate, Cory Doctorow of net culture web zine Boing Boing called DDoS hacking – designed to shut down websites – as anundemocratic, censor-happy assault on of free speech, while cyber-sceptic Evgeney Morozov gave thoughtful consideration to their validity as a form of protest.

    If radicals didn’t show any principles when Anonymous were attacking, shutting down and intimidating those they disagree with, or targets too apolitical to hold their interest, then they have little grounds to complain now. But if this is the beginning of the end for the love affair between hacker culture and the left then it’s certainly better late than never.    

    Image by Alice McGregor. CC Licenced.
  • Interview Part 2 Martin Schulz — “The European Parliament acts, heads of government don’t”

    23 July 2012

    The euro may yet be saved, Martin Schulz believes: at best, if Europe’s leaders can change their spots – give up their ex officio wheeling and dealing –  and let their institutions act.

    In an interview with Presseurop the President of the European Parliament, in office since the start of this year, sounds just like the boss of a rival government that he wants to build: the Parliament versus the Council and the Commission. Changes at the next European elections should help bring Parliament more to the fore in the minds of voters.

    We meet the President of the EU Parliament in the Parliament’s Paris office, near the National Assembly and the Seine. The former bookseller, notorious in the plenary hall for volleys of loud insults (“The financial markets drive a Ferrari, and the governments of Europe plod behind them on a bicycle”), now sits quite calmly on the white sofa of the meeting room and is giving interviews by the dozen.

    Mr. Schulz, the euro crisis has entered its third summer.  Can the currency still be saved?

    I think the euro can be saved. This depends a little on the willingness of the parties involved to finally arrive at sustainable and lasting management in the eurozone. Such events like those at the last summit – when agreement is reached in a meeting at night and the next day two governments say, “We didn’t really mean it like that” – do immense damage. We have a strong economy. We have a strong economic zone with a strong currency, 17 governments. It can’t move forward like this over the long run.

    The euro crisis so far has brought twenty-five crisis summits, “historic decisions” that have not made history and that have made the citizens angry at Europe’s governments, which clearly continue to restrict themselves to a tenacious “business as usual”. What can you say to Europe’s citizens to keep them from losing the faith?

    I’ll try to address myself to European citizens, and with a positive message.  Namely that, if we want to, we are very strong when we act together. That if we do not want to act in concert and to break down into our constituent parts, with Germany as the largest country and Malta the smallest, we’ll be at the mercy of the interests of other parts of the world.

    Europeans are very fond of talking about “rising states” such as Brazil, South Africa, India, China ... I’ll give the Europeans some good advice: don’t start talking about “descending nations”. If we want to prevent this, we need a strong and united Europe.

    The problem is not the institutions, but the unwillingness of the government leaders, both of the eurozone and of the 27 member states as a whole, to reach agreement. This is because of a strong ideological confrontation in the Council between a way of thinking, which Germany strongly represents – and so too do the Netherlands, Finland and other countries (“We won’t pay for the others”) – and the attitude that only a general pooling of debt can resolve the problems (which, on the other hand, they exaggerate)...

    If we do not build a bridge between the two and finally find a workable compromise, then we are moving towards the dark ages. I  would like to tell that to the voters.

    Do you want to expand the EU Parliament into an institution that defies the Council of the government leaders. What would be better in Europe if the Parliament were in the driving seat?

    We act with clear majorities. Three examples: two years ago, the Parliament called for and presented an investment pact. One percent of the gross domestic product of the eurozone. Rejected. Last year, the European Parliament, with a bigger majority than I had ever seen, voted across party lines, 570 votes, for the financial transaction tax. Rejected. Two years ago the European Parliament called, with an overwhelming majority, for a banking union. Rejected.

    Now, two years on, after a reaction-time of 24 months, the European Council has adopted the banking union, the financial transactions tax and a one percent growth pact, and claimed that as a great achievement. These are all things that the EU Parliament presented long ago and that the heads of government, in all their arrogance, rejected. We have wasted two years on it.

    So the European Parliament does act, but regrettably, the heads of government do not.

    It’s just that no one hears that, as can be seen every five years in the record abstention rates for European Union elections. Tell us your recipe to make going to the EU polls something more than merely a reaction by voters to their national governments.

    I think that in the next European elections, for the first time, there will be candidates who campaign across Europe for their political orientation. That is, a candidate for the Socialists, Conservatives, Liberal Democrats, the Greens and so on – for the Office of the President of the Commission.  Why? The Lisbon Treaty stipulates that the President of the Commission, that is the supreme executive of the Union, almost a head of government, be selected by Parliament. The Council must propose a candidate, “taking into account” – as stated in the Treaty – “the outcome of the elections”, i.e., the candidate who can unite a parliamentary majority behind him.

    This leads to an electoral battle between political agendas and human minds. And then it’s no longer about the national governments, but whether the Left or the Right will rule Europe.

  • Interview Part 1 Martin Schulz — “Democracy in Europe needs to be defended”

    20 July 2012

    Martin Schulz speaks his mind. In an interview to Presseurop, while passing through Paris on an official visit, the president of the European Parliament noted that the institution is still struggling in the EU political landscape. It is struggling against the markets, trying to impose its own agenda; the work of MEPs is overlooked; and it is also struggling against European leaders who still have a very poor vision of how to make the EU function democratically.

    You have been president of the European Parliament for six months and your term continues until 2014. What will be your guiding principles?

    The European parliament is where democracy in Europe happens. Democracy in Europe needs to be defended, not subjected to the principle that the needs of the markets rule democracy. The markets need to be controlled by democracy.

    That is true not only at the national level. We need a trans-national parliament which would provide legitimacy to the trans-national executive institutions. That is the duty of the European Parliament. This has never been very welcome by the executive. But never, throughout history, has a parliament owed its rights to the powerful. Parliamentary rights have always been fought for. This is my primary duty.

    Does the Parliament dispose of all the tools necessary to achieve this goal?

    The Parliament has all the tools. It is sufficiently powerful to use legislative procedures. For example: the Council of Ministers of the Interior unilaterally decided to exclude the Parliament from the management of part of the Schengen Area. Parliament is boycotting cooperation on five major issues and will not negociate until the Council abandons this bad idea. I have already seen some signs that the Council will return to the negociating table.

    The presidents of the European Council, of the European Commission and of the European Central Bank recently worked together to present a report called "Towards a Genuine Economic and Monetary Union". The president of the European Parliament was not included. Would you have liked to have been asked or is this in the scheme of things?

    It demonstrates how some representatives of the European Union think. We are not living at the time of the Congress of Vienna, when the European powers gathered behind closed doors to later inform their surprised subjects of what issues should be dealt with. We are a multinational democracy. That the president of the European Parliament is excluded shows the degree of democratic thinking among those people.

    I was surprised that only José Manuel Barroso [president of the European Commission] made any objections. I didn't expect Herman Van Rompuy [president of the European Council] to do it, because he is the representative of those who do not want a parliament – not all, but the majority. From Mr. Draghi [president of the ECB], I expect nothing and, to date, Jean-Claude Juncker [president of the Eurogroup], has yet to comment on the subject.

    But there is some progress, the Parliament is now integrated into the process and will be consulted, like the national governments, on the bill proposed by Van Rompuy – after that we will see.

    A federal Europe implies a more powerful Parliament. That does not seem to be the current view of the future. The European Parliament is very powerful. I think that we are among the most powerful legislators in Europe. ACTA [Anti-Counterfeiting Trade Agreement] was rejected by the European Parliament. SWIFT, a method of transferring banking data to the United States, was rejected by the European Parliament [later approved after being renegotiated]. Remember the Services Directive – the so-called Bolkenstein Directive? It was rejected by the European Parliament. Even the decision to lower roaming costs for mobile phones is due to the European Parliament.

    We have a problem. We are powerful legislators perceived as being weak. The role of the president of the European Parliament is to fight against that.

    How do you explain that?

    National governments, which are the right arm of the legislative system in Europe, have the advantage of having a domestic public. That allows them to change each of our victories into a domestic victory. Parliament is often overshadowed by that. Furthermore, there is no government of Europe.

    At the moment the Commission is the European government, backed by a governmental majority behind a Commission president and an opposition that is against this state of affairs. We have a system well-known to voters at the local, regional and national level but not at the European level.

    I hope that with the next European elections, after which the president of the Commission will be elected by the European Parliament, we will create such a structure – an elected Commission president backed by a majority which approves and supports him against a minority opposition. I hope that will make the Parliament more visible to the public.

    A Parliament draws its legitimacy from the ballot box. The European Parliament could increase its legitimacy by a truly European election. As president of the Parliament, are you able to take action so that European elections are held with trans-national ballots?

    I think that we are moving in that direction. The Lisbon treay applies here and it provides that the European Council will propose a candidate for president of the Commission, in keeping with the result of the election, for the approval of the Parliament.

    Europe's major political currents are developing a procedure aimed at running a candidate for this presidential post at the European level. That will create an electoral campaign which, for the first time, will not be to elect a European Parliament. The strange thing is that the identification of voters with their political leanings is reproduced in the battle between the candidates but not by a call to elect an institution.

    Voters have trouble understanding what their vote means. What do the MEPs I elected do? What are they doing with my vote? That reduces the European elections to a kind of national lithmus test. I think that next time, we will already have a different approach. That should increase participation. And that increases the legitimacy of the Parliament.

    Read second part

  • Interview Mariusz Szczygiel — “Only Czechs would celebrate a hero who never existed”

    18 July 2012

    For several years he has been mulling over the Czech national character and the distinctive Czech sense of humour. His numerous stays in the Czech Republic have resulted in several books, the best-known of which, “Gottland”, won the 2009 European Award Book Prize for the best European book.

    It took him a long time to realise why he had begun to write about this country. “It was only with my psychotherapist that I discovered the truth – why I like the Czechs. When I write stories and reports on the history of Czechoslovakia, on characters I shake my head over – such Orwellian-Kafkaesque types – I’m actually writing about myself,” admits Polish journalist Mariusz Szczygiel.

    In your new book, Heavenly Love, which has just come out in Polish, you write that the Czechs were created to raise the spirits of the Poles. What makes Czechs so funny to the Poles? It starts with language. Poles get a lot of laughs from Czech. The Czech expression “Láska nebeská (Heavenly love)” means “blue wand” in Polish. “Láska (Love)” also means a slim young girl, or penis, in Polish. When I hear Czech, I get a metaphysical orgasm.

    When Poles don’t understand something, they say “it’s like a Czech film”. At this year’s festival in Karlovy Vary Czech director Marek Najbrt introduced a film called Polski Film. According to the Czech critics, Poles can’t understand it. Are we not condemned to a kind of patriotic national misunderstanding?

    Actually, that’s exactly why I’m so busy. I feel a little like a translator of Czech culture. Some translate books into foreign languages; I suppose I translate culture.  And I work not only for Poland but for Europe too, so my books come out in other countries. Speaking about films, a friend recently sent me an interesting book about Czechoslovak posters. A Czechoslovak film that won an Oscar – “The Shop on Main Street” – is described on the Polish poster as a “psychological drama”, but on the Czechoslovak poster it’s described as a “tragicomedy”. Milos Forman’s film, “Loves of a Blonde”, is described in Poland as a “celebrated psychological drama”, but in Czechoslovakia as a “comedy.” On the Czech poster for the film Morgiana there’s a laughing woman; on the Polish poster, a stricken woman under a skull and crossbones.

    Poles are interested in Czech literature, theatre and film – and in your books you refer to Bohumil Hrabal, Jaroslav Hasek, Ota Pavel, and the films of Jan Svěrák and Petr Zelenka. Do these authors have a common denominator that would explain the interest in them in Poland?

    We in Poland feel that those authors and filmmakers do not take life too seriously. A certain distancing, and one more step away from oneself, is the basis of Czech culture. I’ll give you an example. At the time when Alphonse Mucha was considered the most famous Czech painter, in recognition of his status he was asked to design the first Czechoslovak banknotes after Czechoslovakia emerged as an independent state in 1918. In them he immortalised his wife Maruška (on the hundred-crown note) and daughter Jarka (the ten-crown note). I really like that, because it’s another example of Czech culture not being too pompous. Can you imagine a state where someone would put their relatives on the banknotes? In Poland? No chance. The banknotes have to have heroes on them.

    Of course, I know that Czech culture has its intrinsic elements of religion, metaphysics, depression, or lyrical elements etc., but that doesn’t interest most Poles. We’re interested in Czech joys. I’m just trying to explain that that joy is often a result of grief, that it’s a kind of lifeboat, a form of self-defence.

    The thesis of your new book is that the Czech mentality ennobles the everyday, because it does not believe in God and an afterlife. Why does that so affect the Poles, who are largely religious?

    From the top of Borůvková hora (Blueberry Mountain) in the Zlaté Hory (Golden Mountains), you can see the Czech-Polish frontier. There’s a buffet there, and on its walls are inscriptions in both languages. Every day, the Czechs who run the buffet write up on the wall the name that’s being celebrated that day in the Czech Republic and Poland – the so-called “name day”. My friend has been there several times.

    One day the fellow running the buffet invited him into the back and showed him a sign with an inscription in both languages, which had to be taken down off the wall and hidden away after Polish tourists asked for it to be removed. Do you know what it said, and what scared my countrymen so much? I quote: “Eat and drink while you live; after death, you will have no joy.” Well, in short, we’re Catholics, and we feel that we have a patent on the truth, and that Catholicism has the answer to all questions. And what’s more – how can anyone allow himself not to believe in God? Maybe Czechs think they’re better than we are, because they have no fear of God? That’s audacity.

    That predilection of Czechs for the everyday life, though, is also bound up with a certain laziness. The Czechs’ favourite word is “peace”. While Poles are fighters, Czechs have always gone for the easier way. This was true in the fight against communism, which culminated in the so-called Velvet Revolution. We were almost the last country where the Iron Curtain fell...

    In short, the Velvet Revolution was made for you by someone else. Communism had to fall in Czechoslovakia too when it crumbled everywhere else in Europe. It’s interesting that on June 4 1989, when the first free non-communist parliamentary elections were taking place in Poland, in Czechoslovakia Vaclav Havel was still sitting in prison.

    The Czechoslovak film director Fero Fenič made the film “Strange Beings”, which tells of the last night of communism. Fenič had foretold that night, because the film had actually started shooting in February 1989, but – as he says – no Czech actor in it wanted to play a major role. And so Polish actors played them.

    A friend told me that her grandparents were in a streetcar in November 1989 on Wenceslas Square and had a cake with them; my friend was about three years old then and it was her birthday. Grandma and Grandpa, of course, didn’t get off the streetcar, even though they realised historical events were happening on the square, because “we had the cake and the child was waiting,” the grandmother said. “And besides,” she added, “we’ll see everything on TV.”

    Poles like topics such as heroism, courage, patriotism. These are concepts that say nothing to the Czechs. Do you have any explanation for it?

    Jesus-Maria, it’s not true that those terms mean nothing to the Czechs. Maybe they’re notorious for not talking about them. They don’t like talking about patriotism openly, but it’s pretty evident in the way they look after their cities and towns, which look like something out of fairy tales, out of stories for kids.

    Even the belief in the nonexistent Jara Cimrman – a Czech genius who can be compared only with Leonardo da Vinci – is a form of patriotism. Czechs are the only nation that ever created a nonexistent hero. And they’re proud of it. Patriotism isn’t just about fighting for one’s country.   

    Do you think that, despite all these cultural differences, there’s a chance that “Heavenly Love” won’t remain a one-way street for the Poles?

    It’ll probably stay that way. It’s a good sign that after visiting Poland during the European Championship a lot of Czechs said: “The Poles are great, they got everything ready perfectly.” That’s just one small step perhaps towards seeing a few Czechs start to take Poland seriously.

  • Media and democracy Public uninterest journalism

    17 July 2012

    The failures of the press are not ethical in nature, but existential, says Stephen Rainey.

    Identity is very readily marked in the expression of ideas, insights and opinions. One expresses one’s identity in words and deeds. In public, if this is unfettered, we end up with a public sphere marked by factionalism and cheerleading for presumed heroes. Closed minds close the public sphere.

    The press has an unparalleled privilege in being the potential medium for the public sphere. Such a sphere is not simply self-sustaining. In large populations, with plural societies, conversations and the sharing of views in discussion can’t see the light of day without help. The media has the opportunity to mediate this process. To represent the views of this variegated group. To present these views to those who can use the insights gained from hearing them. Conversely, the media has the opportunity to present the motives, aspirations and possibilities as envisaged by those who would govern to those who would be governed.

    A public sphere is an essential part of any society that would hope to make progress beyond simply reproducing traditional patterns of living. In a changing world, and one wherein plural views exist among each other, more or less constant reflection is required. This has to happen in public and in an open and authentic manner. This has to happen in the press and wider media. If this does not, or it cannot occur, there is no possibility of democratic action. Where the demos aren’t represented to the governing, and the governing aren’t portrayed openly to the demos, agenda-setting is skewed into the partial interests of unnamed cadres.

    This isn’t the result of conspiracy, but dull-mindedness and a feckless misapprehension of the chances and responsibilities of the 'Fourth Estate'.

    Paul Ricoeur said of democracies that they were not places without conflict, but places where the conflicts were overt and pursued openly. Under such a regime, democracy has no end. The conclusions don’t come to problems, but decisions aren’t absent. The point is to establish an inclusive work in progress, based in that ‘real solidarity’ that living around one another can found. This is a dynamic way of stating democracy. It puts problems centre-stage.

    Conflicts in interest

    In theory at least, the European project was intended to be an overtly problematic social-democratic experiment. The idea was that a plurality of views and opinions would be accommodated in a way not constrained by mere tradition. The modus operandi of Monnet-Schuman Europeanness was the idea of developing tentative working relationships based on the apprehension of solidarities of interest. Public interest isn’t taken as a vision, a destiny to be pursued. It is constantly re-evaluated in the light of myriad factors that colour means and ends. This aims at constituting ‘real solidarity,’ not the positing of a European essence in which all can partake or to which all must submit. The boons of this idea include that opposition, when it inevitably arises, comes not in ‘face-offs’ between groups and individuals, but over means and ends: the conflicts are mediated in the world, in concrete matters, not in ideologies.

    Where the media fails to grapple with the ideas that underwrite conflicts, interests and self-expressions in the public sphere, that very sphere disintegrates. This effect is magnified by the scale of the sphere itself. Where the media fail to mediate the real interactions, concerns and possibilities of politically regulated social groups, the danger is they fall to decadence. Where the public sphere isn’t respected as such, we have seen market forces sought and quality judged by sales. Whilst this is a factor in judging quality, it cannot be ignored that market forces and consumer forces are different types of force. Consumer forces are the impulses and presuppositions made by groups of citizens. These are at least politically and socially constructed norms in themselves. In other words, they are predicated on the public sphere.

    Where the media fails to grasp its chances and responsibilities in representing the public sphere, where an anaemic view of ‘the market’ is substituted for this nuanced and more complex idea, the media enters an odd contradiction. The media overlooks the foundation for the forces at work in society that themselves help to constitute the attitudes that are then pandered to in seeking market success. It is shallow, facile and can only lead to ever-decreasing circles.

    The present, ongoing investigations of media ethics in the UK undertaken by Lord Justice Leveson can raise a voice in this problematic situation. But the point can be made that the problems of the media are not primarily ethical, but existential. The distasteful practices stem from a bad idea of what the fourth estate is.

  • Unwilling European unionists Political union: time to take sides

    15 July 2012

    Europe continues to lurch toward ever-greater union, but few ever make a positive case for it, says Jason Walsh.

    Eurogroup head and prime minister of Luxembourg, Jean-Claude Juncker has come out in favour of an EU president – a real, elected-by-the-people president.

    Speaking to Der Spiegel, Mr Juncker said: "I would be in favour of creating the position of a European president at the end of the process who would be directly elected by the citizens of the EU."

    Mr Juncker is not alone. Declan Ganley, long regarded as Europe's bête noire, has welcomed the idea of a European presidency – once again, a real, elected-by-the people head of state.

    "Juncker's call for the merging & then citizens election of Presidency of EU Council & Commission is to be greatly welcomed. Let's have at it […] The battle for European Presidency could strain Europe's current political sclerosis to breaking point. That's good, real reform will follow," he said in series of messages on social networking web site Twitter. 

    Having interviewed Mr Ganley for reports in the Christian Science Monitor on several occasions, it is perfectly clear to me that his position is not that of a eurosceptic. In fact, he is pro-European and supports closer political integration – much closer than many EU establishment figures would be comfortable with. 

    Don't believe me? In May he wrote in the Wall Street Journal: "Europe needs a parliament than can legislate and a president that can lead […] To the population-based EU Parliament, a nation-based EU senate should be added. By the end of next year, the EU should have elected somebody with the moral and democratic authority to lead it in a clear, consistent direction, and given itself an infusion of democratic legitimacy and political vision."

    Whether he is setting the bar so high that it is unachievable, as his critics intone when briefing agasint him, remains an open question, but that is a matter for another day. His arguments, whether one likes them or not, are coherent.  

    Perhaps you think Mr Ganley is a fringe character. Perhaps he is. Perhaps. But he is not the only person speaking on this issue.

    Germany and Britain swap places

    German economist Hans-Werner Sinn has published an open letter in the Frankfurter Allgemeine, signed by over 170 economists, that amounts to the opening salvo in the case for breaking-up the euro.  

    Dr Sinn's objection is pure euroscepticism: he is objecting to German chancellor Angela Merkel's moves toward an EU banking union that would, he says, create "collective liability for the debts of the banks in the euro-system".

    The underlying argument is simple: why should there be a banking union if there is not also a political union?

    On what we might call the pro-EU establishment side, what we hear is… deafening silence.

    Wolfgang Münchau of London's Financial Times, a noted europhile, complains, quite accurately, that "today’s pro-Europeans are incapable of defending" the idea that the EU we already have requires an, at least minimal, fiscal and political union. 

    It's a theme not unfamiliar here, if looked at from a rather different perspective. At heart the EU is an anti-political institution. That is not to say it is unpolitical – far from it, though some of its biggest boosters seem to wish to project the idea that it is. What Europe seems to fear most is the public, as a result of which a truly European public has never developed. The rich irony here is that a real European populus is precisely what would be needed to save the EU.

    Pro-Europeans have long dismissed criticism of the creation of an EU 'superstate' as paranoid nonsense. That argument can barely be sustained anymore, not because we're necessarily on the way toward a single European state – in fact, it seems more fanciful than ever – but simply because the inexorable logic of the euro is, as we all always knew, political union of some form.

    British newspapers regularly thunder about German domination of Europe. How again ironic, then, that the brake on political integration has been applied not by semi-detached Britain, but by Germany, more usually accused of harbouring crypto-imperial ambitions than acting like a one-eyed, small town bank manager. After all, Ms Merkel's push for a banking union has come very late into the euro crisis and feels like a move driven by desperation rather than vision. 

    For now Germany's politicians are resisting the push for political integration because they know full well they will be expected to foot the bill for fixing the problem that is the euro. There is some justification for expecting Germany to dig deep – the country's exports benefited enormously from a dual-prong policy of domestic wage restraint and offering cheap money to its neighbours – but it is also an understandably tough sell to an electorate that feels, also with some justification, it is being asked to pick-up the tab for other people's parties.

    Whatever side one takes on the question of whether the EU should become something like a state, it should be a source of embarrassment for those of a pro-EU bent that they continue to, at best, obfuscate and, at worst, dissemble on the issue. 

    It's tempting to say it's now make-or-break time for the Europe, but such a thought is, sadly, the stuff of hyperbole. It's always make-or-break time for Europe, but here we are and Europe is neither remade nor broken. I suspect the stalemate will continue for as long as it is possible to dampen the centrifugal forces that, if we were to actually be honest about things, would either break-up the euro and loosen the EU or else tie the continent together into some kind of federal non-nation state.

    It is time for something, though. It is time to stop pretending. Pick a side. Be on it.

    Image of Jean-Claude Juncker by the office of Lucas Papademos, former prime minister of Greece. CC licenced.
  • Together apart Europe disunited

    15 March 2012

    Everyone knows Europe is straining at its impoverished fringes, but there is disunity at the heart of the EU even as the "fiscal compact" draws European economies into greater political union, says Jason Walsh.

    Although most of the threatening talk of a "two-tier Europe" has subsided, recent differences of opinion underscore the absence of coherence in this thing we call Europe.

    It's hardly the end of the union – the EU has always been subject to conflicting interests among is constituent nations –  but the current tug-of-war comes at a time when Europe's top tier leaders have been berating the so-called PIIGS countries for failing to live up to the European ideal.

    For better or worse, the Franco-German power bloc has been Europe's political – and economic – motor throughout the crisis, driving the EU closer together, but under the surface tensions are building and Europe's strongest economies are starting to pull in different directions.

    Facing into a presidential election, French leader Nicolas Sarkozy has said France wants to toughen-up the Schengen agreement that allows passport-free travel across much of the EU as well as proposing greater economic protectionism. 

    Mr Sakrozy's tub-thumping has not gone down well with his erstwhile partner in Berlin  – so much for "Merkozy".  

    Georg Streiter, spokesman for the German chancellor, indicated Ms Merkel's displeasure, saying: "Free movement of people is one of the most concrete and important achievements of European integration and represents a fundamental freedom."

    Ms Merkel's irritation is hardly surprising. Cementing the double act, she stuck her neck out to support Mr Sarkozy over the Socialist Party's presidential candidate François Hollande, saying she would appear on the stump for his reelection. The campaign plans are, unsurprisingly, now off. Mr Sarkozy's sudden, if rather unconvincing, cooling on Europe is, if nothing else, a sign that European unity is not a big vote winner. If that is true for the French president, it is surely doubly true for Ms Merkel given Germany is footing the bill for so much of the bank bailouts.

    The endless support for Europe's banks remains controversial in Germany. Jens Weidmann, head of the Bundesbank, Germany's central bank, has complained the ECB has been too profligate in its support for Europe's troubled banks.

    It's not just money matters, either. Finland's foreign minister Erkki Tuomioja has said that despite the Lisbon treaty attempting to unify Europe, there is no appetite for a common foreign policy. In fairness to Mr Tuomioja he is quite right. This does pose the question, however, as to why EU and national leaders have been clamouring for ever-greater union for decades.

    It is increasingly difficult to avoid the conclusion that Europe's leaders are all for unity, but only when it suits their domestic agendas. Of course, anyone in Greece, Spain, Ireland, Italy or Portugal could have told you that.

    Image by Alex CH. CC licenced. 
  • Thomas Nicholson: Why Slovakia’s corruption scandal is good for democracy

    14 March 2012

    He is the man who shook Slovakia. For years, Thomas Nicholson, a Canadian investigative journalist living in Slovakia, tried to publish the “Gorilla” file about corrupted politics in the country. No one would pay attention to it, until the beginning of this year when the documents he had received from a secret service agent surfaced on the Internet. The file had a major impact on the March 10 general elections. “Politicians will have more and more difficulties to continue practice corruption”, says Nicholson, when we met in a Bratislava café on the wake on the election.

    Some people say that “Gorilla” pushed more people into social-democratic leader Robert Fico's arms. What's your opinion on Fico coming back to power?

    I am surprised by how little effect the Gorilla file has had on these elections. The expectation was lower ballot participation because people would lose faith in democracy; the right wing would be absolutely destroyed, because this corruption scandal primarily affects them. They were in power when it happened, but in fact we have had the highest turnout since 2002 (60%). The right was punished but they got a second chance.

    There are many positive things about these elections. First of all, the Nationalists did not get back into Parliament. And finally we have Fico as a single party government that will have no excuses, no Nationalists or Populists to blame for corruption or for his failure. It's a good recipe for a better government than the last time he was in power [2006-2010].

    I think all in all, these elections, even though they were bad news for the Right, are about as good as what we could have hoped for. People were tired of instability, stupid arguing and inability to make compromises. Gorilla has not much to do with it in the end. People were tired of instability. Fico himself is not an angel but compared to the right wing he represents stability and that was what people were looking for.

    Fico is apparently mentioned in the Gorilla document. Do you think the investigations will continue during the second Fico government?

    Fico is not directly threatened by Gorilla, but his party is. Obviously his secretary was in the incriminated flat [in which politicians were meeting members of the Penta financial group and which was wire-tapped by the secret service. The transcripts form the material of the Gorilla file], he accepted money from the Penta financial group to finance his party Smer. Whether he will support or not the investigation, that is very difficult to say. There is lot of public anger about this file, and this anger goes all across the political spectrum. If he wanted to gain political points he would appear to support the investigation. But we know how politics works. He can easily stop it. This file was buried in 2006 by Josef Magala, the head of the Slovak secret service SIS, when police got it under Fico they absolutely failed. So he is not probably going to be enthusiastic about the investigation.

    Do you believe that thanks to the revelation of such a scandal Slovakia will become a more democratic country?

    I do. It might sound naive, but I have concrete reasons to think that. I don't think it's possible anymore for any financial group to do business with the government or politicians, in the future these connections will be very politically fraught with danger for any politicians to have.

    As a result of this Gorilla investigation there will be a lot of initiatives that have started focusing on transparency and clarity in politics. I am a good example. I will probably leave journalism to set up a website which will be a database of connections between politics, financial groups and organised crime. It will be publicly available to voters, especially when the next election comes around. All kinds of these initiatives will come up in next four years.

    The public has been empowered by knowing how corruption works, it's a knowledge about oligarchy, politicians, political nominees, how they work. Important is that people know about these connections. You have no governmental groups providing this kind of information. All that changes the environment that we had before. Politicians will have more and more difficulties to continue to practice corruption.

    Your book about Gorilla has been banned by a tribunal in Bratislava. But you’ve started publishing some fragments of it anyway in the newspapers. The Penta group, which is considered as a financial shark swimming in the Central European waters, has pressed charges against you. Do you think you can win against them?

    The suit against me is 500 pages long. But at the same time they have no foundation to stand on. These people, when they can't buy someone or scare someone, they run out of ideas because they don't know anything else. Besides the individual discomfort of being threatened by these people, I don't need money, I don't need fame, anything really. And I don't have anything to lose. As Janis Joplin said a long time ago: freedom's just another word for nothing left to lose. I don't really care about their lawsuit. I have the publishing house Petit Press, who represent me. Whether the court will be for me or against me doesn't make much difference, because Penta lost in the Court of public opinion and I don't think anybody is afraid of them anymore. So whatever they win in terms of financial squeeze of my double-mortgage house, they are welcomed to it.

  • Progress Science of – or science in – society?

    13 March 2012

    Which comes first? The interests of science or those of society, asks Stephen Rainey.

    There is an ongoing push for scientific progress in society, in Europe and more globally. 'Progress' is thought of as an inevitable, linear and aggregative process based only in the serendipitous methods of scientific rigour. However, not least since the BSE, GMO and present Nanotech debates, there is mounting pressure that human, social interests be factored into scientific research. (The European Commission's Framework Programme is the largest funding mechanism in the world for research, click here to see its programme.)

    There are two other less well known words related to serendipity. Zemblanity is an antonym (the unfortunate discovery of unfortunate things) and Bahramdipity (the intentional suppression, by powerful interests, of discoveries.) Zemblanity was coined by Scottish novelist William Boyd and Bahramdipity is from Toby Sommer.

    We can look at the science and society situation with these three terms. The ideal of scientific research is like that from the scientific revolution, where scientists were thought of as unveiling nature's secret workings. It implies a confidence in humanity's power to overcome natural limits. This is where serendipity plays a role, because the neutral, enquiring mind comes across things in nature, makes derivations of other things, makes hypotheses et cetera and progress comes naturally ('progress' is an important term… more later).

    Zemblanity, though, is the flipside to this. Think of Marie Curie, whose discoveries ultimately killed her through long-term exposure to radiation. This would be an illustration of the point that there is inherent risk in relying on serendipity, so, perhaps paradoxically, the attempt to manage it must be made.

    Part of this realisation of inherent risk is that the neutral perspective of the enquirer isn't actually that neutral. The enquirer always follows a rationale and bases it in their interests. If we fast-forward from the scientific revolution a few hundred years and look at more recent scenarios, we see scientific research funded by national and supernational bodies, as well as industries. They all deal with risk as a matter of course, but because national and supernational bodies are linked to politics, they also have to deal with values and norms as assumed by their respective people (if we have democratic bodies.)

    Industry is similarly constrained as they are linked to the market, and so they are linked to people's desires and aspirations etc. (so, their values and behavioural norms at least.) In each of these contexts, politics and the market, even 'risk' is a matter up for debate and to be defined according to values, norms and so on.

    Given this, the role of Bahramdipity has to be considered: there is a kernal of scientific research (of any research) that is somehow 'primary' and it's important that such research and its related fields aren't curtailed just by powerful interests. (It's perhaps a failure of academia to have allowed market interests to have so saturate this primary research domain.) But it goes both ways. Research can't assume to suppress or erase value and norm from its considerations to just the same extent that it shouldn't expect to be curtailed arbitrarily. Bahramdipity is a risk from the perspective of science and from that of society.

    The trick is to find a means of including the interests, values and norms of science and of society in each others' perspectives. The means of doing this is thought to be inclusive governance. This isn't regulation, but a space, or a means, or some manner of mediating between the social and the scientific interests such that each can communicate to the other their values. It's a bargaining scenario.

    It's not meant to be the case that members of society dictate to a researcher when they should stop analysing, say, the atom. We don't expect a random person on the street to be somehow there to tell Rutherford that his atomic model is good enough so that's the end of atomic physics, or to tell Einstein that Newtonian mechanics is fine, so he should pack his bags and go back to the patent office.

    By the same token, we can't have a situation where scientific research carries on according to its assumed internal logic and confronts a public with its fruits whether or not they're wanted, understood or needed. These concepts are socio-political and its at the level of socio-political interests, expressed in governance operations with science, that these issues should be meted out. That's what's meant in saying 'progress' is an important word: there is scientific advance, which is one thing, but then there is progress, which is a much more nuanced, value-laden, politically charged notion.

    Image by Horia Varlan. CC licenced. 

    Editor's note: This article was edited on July 21, 2012 to correct attribution of the coining of the term 'bahramdipity'.

  • Internet It’s not real if it’s not online

    06 March 2012

    Mass social movements only make waves when they have the internet in tow. This distorts our understanding of the world says Angela Nagle.

    From the Arab Spring to the Occupy movement, revolutionary events and radical politics have certainly made headlines in the last year. Last week however, one of the largest strikes in human history took place and it barely registered as a newsworthy event in European media. With most of India’s major unions and thousands of smaller ones on board, the 24-hour general strike drew out an estimated 100 million-strong workforce, bringing banks, businesses and public transport in many parts of the country to a halt.

    Back in the heady days of 2011, BBC journalist Paul Mason’s claim that “it’s all kicking off everywhere” (written in a blog – where else? – and now worked into a book published by radical press Verso) seemed to capture something of the spirit of a moment of popular revolt, where commentators who support the recent apparent radical turn have been keen to draw links between diverse movements happening around the world, from struggles against authoritarian regimes to those resisting austerity in Greece and Spain. But while opining over the Occupy movement continued unabated, both the press and bloggers remained relatively quiet about the Indian strike, with minimal coverage, such as the BBC’s report, which described it mainly in terms of inconvenience to commuters.

    One explanation that leaps out is that Western audiences may just prefer to read about Western issues. This doesn’t quite explain things, though. The Arab Spring was, rightly, afforded significant coverage in the West, so much so that it defined the tone of the protests in Spain and later at Occupy Wall Street. It has been the subject of countless opinion pieces, blogs, essays – and no doubt spawned more academic papers than will ever be read. It's not surprising that we Europeans tend to view the world through a Europeanised prism, but it is interesting that the Indian strike failed to pique our interest given the country's role in the global economy. Perhaps the strikers reminded us of our European selves after all – just ourselves four decades ago.

    The key ingredient that the heavily reported and blogged movements like the Arab Spring, Wikileaks, Anonymous and Occupy had that the Indian strike didn’t was the internet. It appears that if Western commentators can’t frame extra-parliament politics in terms of the internet, if struggles don’t come with a live stream and a form of organisation that sits comfortably with our contemporary internet-centric network sensibility, it will simply be ignored.

    While commentators celebrating this new internet-centric radicalism have praised it for moving beyond cold war politics, the narrative being imposed, one of the internet as a technology of liberation, is not as removed from power or the cold war as its advocates would like to think. When US Secretary of State Hilary Clinton came out in support of the Arab Spring in her now famous internet freedom speech, she was continuing a tradition that began during the Cold War of casting the civilian internet, a byproduct of military spending, as a means by which to bring American democracy and the free market to the world.

    If this really is a pattern that shapes our understanding of the world – and it is one that has already penetrated academia and is in danger of further shaping foreign policy, as experts like Evgeney Morozov have warned – the implications are troubling. The promise and optimism of the cyber utopian wave of the moment is so intoxicating that commentators seem afraid to step-up and play the role of kill-joy. In this strange distortion of global politics, Congolese coltan miners are not 2.0 enough to be part of our global village, while strikes such as last week's in India are just a bit too twentieth century to be part of our ongoing celebration of “the power of organising without organisations” as Clay Shirky put it.

    Internet boosters are quick to point to the deficiencies of the so-called "mainstream media" but whatever its problems, the internet has played a role in futher diminishing serious, commited coverage of foreign news. With news organisations cutting back on foreign reporters and adapting as best they can to the conditions of the internet and online audiences who never commit, this cyber utopian frame is likely to be self-perpetuating.

    The Indian strikers had clear demands. They were calling for a national minimum wage, social security benefits and permanent jobs for 50 million contract labourers. If the labour movement in countries like India continue to grow and organise they will bring about huge shifts not just at home, but also in the global economy. 

    Jean Baudrillard famously claimed that the 1991 Gulf War did not take place. This absurd claim was much debated at the time, with critics accusing Baudrillard of denying reality and supporters saying he was accusing the war of existing primarily as a mediated, television conflict. Regardless of one's views on that war, the hashtag revolution seems to confirm that if something doesn't happen on the internet we don't care about it the real world.

    For the time being, it may well be “kicking off everywhere,” but if it doesn’t come with a hashtag attached you’re unlikely to hear much about it.

    Image: Strike in 1912 by Cornel University. CC licenced. 
  • Irish vote Ireland votes — will Europe listen?

    01 March 2012

    Ireland will go to the polls on the eurozone fiscal compact. It can't derail the deal, but Irish objections can't be written off, says Jason Walsh. 

    Irish attorney general Máire Whelan's decision that a referendum was needed on the fiscal compact deal will have been greeted with sighs of despair across Europe, nowhere less than in Ireland itself.

    The referendum has already had one casualty in the grand tradition of deputy heads rolling. Éamon Ó Cuív has been forced to step down from his position as deputy leader of opposition party Fianna Fáil due to his failure to support a yes vote.

    But the Irish referendum is important for all of Europe, not just locally. Unlike Greece and Italy, which saw democratic governments toppled by EU diktat, Ireland's public is being given the opportunity to give its view on how the government and its EU paymasters have dealt with the disastrous fallout from the banking crisis.

    How the Irish will vote is difficult to predict.

    Anger at the EU is significant, but few in Ireland want to exit the euro and fewer still want to do so immediately. While rejection won't automatically throw Ireland onto the fringes of Europe, there is no question it would mean Irish politicians would lose top table access.

    A January poll for the Sunday Business Post found that 40 per cent of voters would vote yes to the treaty and 36 per cent would vote no. The difference falls just outside the three per cent margin of error and a full 24 per cent remained undecided.

    Ireland's almost uniformly pro-EU media will, with the exception of a few lone columnists, throw its lot in with the governing Fine Gael and Labour coalition.

    Opposition will be led on the left by Sinn Féin and the United Left Alliance, but conservative forces have also signaled opposition to the deal. Speaking at the announcement of the referendum, independent member of parliament Shane Ross, a former stock broker and journalist, echoed this view, demanding a "quid-pro-quo" debt write-off in return for a "yes" vote. 

    Bête noire of the Lisbon treaty Declan Ganley will announce his position at 2PM (1PM CET) today at a debate at the National University of Ireland at Maynooth.

    Ganley is expected to oppose the compact, but it's not entirely certain. Despite being routinely depicted as a eurosceptic, Ganley is in fact a federalist and has in the past supported other EU treaties such as Nice.

    Speaking to PressEurop this morning, Ganley said: "It's not Lisbon three [and] we're not voting on the ESM treaty. That's not what this treaty is about."

    But what is it about? Speaking in December, finance minister Michael Noonan darkly noted any referendum would be about Irish membership of the euro. The EU has already rejected this scenario, but there is no question that the vote will be about more than just the details of the Merkozy deal.

    In reality two questions will be running through people's heads as they tick the box: in the long term, will the EU help Ireland rebuild its economy, and, how much growth-killing austerity do Germany and France think they can impose on the country.

    Image by EamonCurry123. CC Licenced.
  • Internet Free and worthless

    17 February 2012

    It's time to rethink internet culture, says Jason Walsh

    After mass protests across Europe, the Anti-Counterfeiting Trade Agreement (Acta) has joined recent US legislation, the Stop Online Piracy Act (Sopa) and Protect IP Act (Pipa) on the scrapheap of history.

    On the one hand it's a pretty clear victory for people power. Protestors across Europe took to the streets with a clear agenda and politicians saw this and started to roll back.

    On the other hand, it really is about time we got to grips with the internet culture we are creating.

    Sopa and Pipa were not good laws and deserved to be junked. Acta now appears to be headed in the same direction. While the negotiation process was far from public and therefore deeply problematic, most of the accusations flung by anti-Acta activists simply weren't true. Acta did not give customs the right to seize people's iPods, nor did it include a "three strikes" rule for illegal downloading. Either way, though, it is time to rethink online culture's free-for-all.

    No reasonable person wants to deny creators a living. Sadly plenty of unreasonable people do, as a quick dive into comment threads on tech websites like Slashdot will indicate.

    As everyone knows, the internet was an academic creation and it has inculcated a culture of sharing knowledge and information. This is fine as far as it goes, but not all information is flat. The reductionism involved in depicting music, film or even journalism as simple information is a breathtaking act of intellectual acrobatics that sees things as existing pre-formed, just waiting to be plucked and consumed. 

    In reality much of it is a product of labour – and not just the "creative" labour that we all pay lip service to, but a lot of people doing an awful lot of unglamorous work, too.

    A university scholar is free to share his or her ideas because they are salaried professionals who derive an income from institutions that are funded by state aid, massive donations and tuition fees. The rest of us? We need to be directly paid for our work. But the argument isn't just about creators' rights.

    The tech industry has successfully portrayed that battle as one between "Big Content" and the little guy in the form of the consumer. Unfortunately this is a rather partial picture that ignores the work of not only the auteur genius (a fairly dubious idea in the first place) but also the veritable armies of people who work to get the culture we consume past the idea stage into actual existence.

    The decoupling of information – seen as little more than disembodied, free-floating assertions – from work has its roots in the left's post-modern theories that gained traction in the 1960s and 1970s and the business class's simultaneous abandonment of risky and costly industrial production for rent seeking schemes that provided massive returns on investment at the cost of increased instability. When these ideas met widespread internet access it was perhaps inevitable that people would suddenly demand access to all non-material goods for free, but to reduce every product of intellectual or artistic labour to mere symbols is to deny reality.

    Theories that promised liberation from hierarchy are now being used to enforce an even more rigid hierarchy, but one that is being created in the name of democracy and participation centred on continous and endless communication between peers. The problem is, the content of our communication is invariably small and individual, or else the result of other people's hard work. We are all free to trade in symbols, but symbols make for a fairly poor replacement for fully realised culture and ideas. We will all be poorer if we strip the value from culture.

  • Austerity Bucharest’s blues

    07 February 2012

    Romania has become the latest EU country to see its government collapse in the face of planned austerity measures. Isn't it time to think again, asks Jason Walsh.

    Following Greece and Italy, both of which have seen governments tumble and be replaced by "technocrat" administrations, Romanian prime minister Emil Boc has quit, saying the move would "defuse political and social tension".

    Ireland, Spain and Portugal also saw changes of government, albeit in rather less dramatic circumstances. 

    In all cases, from Athens to Athlone, one thing remains constant: austerity.

    Indeed, Mr. Boc's defence of his government's tax hikes and salary and service cuts could have come from the lips of any of the leaders of the aforementioned countries, either the outgoing bad pennies or their freshly minted replacements.

    "I know that I made difficult decisions, but the fruits have begun to appear," said Mr. Boc. "In times of crisis, the government is not in a popularity contest, but is saving the country."

    Mr. Boc's words are worth considering for a moment. It is self-evidently true that politics is a popularity contest. That's what it's supposed to be, and anyone who says otherwise is skirting close to anti-democratic sentiments. On the other hand, it is also true that elected politicians must sometimes lead public opinion, rather than merely reflect it. If difficult decisions are required, then they must be taken.

    But, really, these are just truisms – and the facts in the case of the various European austerity programmes bear consideration, too.

    Without even delving into the details of just why debts are seen as un-negotiable, there is also the small matter that current policies are unable to lift countries out of stagnation. By raising taxes and cutting salaries and jobs (known as "internal devaluation") the hope is to balance budgets, and, in the longer term, gear economies for export. Export need not mean the sale of material goods across borders, and in fact it increasingly means anything but. It may be the hope of growing foreign tourism, it may be the hope of attracting foreign-oriented service jobs such as international call centres, but no matter what is planned, the idea is to draw capital into the economy from abroad.

    Which is fine. Except for a few small matters.

    First of all, if everyone is attempting to attract massive amounts of foreign investment it rapidly becomes a race to the bottom. Secondly, if everyone is "exporting", who precisely is going to pay to import goods and services?

    This is the fatal flaw of austerity: underconsumption, which is well understood on a domestic level, but also applies across the EU.

    Plenty of politicians and economists talk about national budgets as being akin to a household budget. This analogy is fine as far as it goes. Who wants to run a deficit and pay vast amounts of interest on loans, after all? But household budgets are not economies. A household is not its own biggest consumer. Depressing spending power results in a drop in consumption which, in turn, leads to slumps in production, thus creating a vicious cycle where economies go into longterm slumps. 

    Falling domestic consumer demand is far from being the only problem. During times of major economic uncertainty  –  such as now, for instance – this also works on an international scale, with countries engaged in widespread belt-tightening exercises unable to import foreign goods and services. In addition, businesses facing falling sales or massive debt repayments naturally cut down on capital spending, while outside investment is deterred from the risky business of productive activity, going instead into safer, or simply decadent, markets. In an era – pre-bust – already marked by a decline in longterm capital investment in productive activity, which resulted in an over-relaiance on consumer spending, this risks the creation of markets awash with goods and services no-one can afford.

    As real living standards fall across groups of countries, such as say, oh, the European Union, those that rely significantly on external demand such as Germany may soon find that exporting austerity programmes mean they are importing poverty. 

    Image by Dracula&stuff. CC licenced. 
  • Slump pact Europe’s lurch backward

    31 January 2012

    Borne of failure and fear, the EU moves toward political union not in strength, but in weakness. The latest proposed treaty for a "fiscal compact" continues this inglorious tradition, says Jason Walsh

    And so, 25 European countries will now, we are told, sign a pact, the objective of which is to reinforce the euro by toughening and regularising budget rules. Sold as a step forward, this move in fact underscores just how politically incoherent Europe has become.

    At once high-minded and a product of failure, the European Union had its genesis in the maelstrom of the Second World War. Devised as a means of politically and economically aligning the power blocs of France and Germany in the –  quite correct –  belief that they would never again go to war with one-another, plunging the rest of the continent into hell with them, if they shared a common interest. 

    European Coal and Steel Community founding father Jean Monnet was remarkably clear about his designs for Europe: political union. Those who followed, however, have been less open.

    In fact, the seeds of European Union disregard for the masses we see being played out today are a direct result of the EU's gradualist approach. Instead of taking the bull by the horns and straightforwardly arguing for political union, successive generations of EU leaders have balked at the, admittedly Sisyphean, task of uniting European nations and instead trod a piecemeal path, fiddling here, meddling there and all the while refusing to admit that the ultimate logic of going beyond a mere trade bloc is political union. 

    And so, Europe lurches forward, if you can call it that, not as a united social entity or political demos, but driven by the fear and failure of the various national political elites. The latest proposed treaty, or "fiscal compact" if you prefer, ties 25 supposedly sovereign EU nations together under German-led anti-growth economic policy in the name of safeguarding the future of euro and with it, in the darkest and most apocalyptic visions, that of the entire EU.

    To some small degree it has already succeeded: markets have rallied in response to the announcement. But in the longer term this plan will not work.

    German-inspired "fiscal discipline" is not the only way to run an economy, nor is it the necessarily the right way to run one. For instance, Greece's spending cuts have worsened the country's debt crisis, not alleviated it.

    There is, and has been, much that is good in European co-operation, even integration, but this madness must stop. Greece is being immiserated, crushed underfoot by Franco-German diktat that cares only about the country's (entirely imaginary) ability to repay its debts. And so, more money will be thrown at Greece, though it will slide through the country without so much as touching the ground, making its way to Greece's creditors while unemployment and poverty will continue to grow.

    Ireland, Italy, Portugal and Spain are all also getting a raw deal, though none quite as egregious as that foisted in Greece, and now the rest of the EU, with the exception of the United Kingdom and Czech Republic, have signed this mutual suicide pact that will do nothing but depress consumer demand and, with it, the wider economy. 

    No country being forced to implement swingeing cuts will ever be able to emulate Germany's enviable export-driven economy even if they desired to do so –  and, in truth, few seem so inclined anyway. Germany too will suffer, with the European market for its goods going into decline. Next to the absence of workable industrial policy and the ability to make strategic investment in industry, talk of stimulating the small and medium enterprise and tackling youth unemployment melts into so much blather. What we will get is a longterm slump.

    When the warnings start about the growth of far-right and populist movements, and they will surely come soon, the European elites will cast around looking for scapegoats before finding one in the supposedly backward, nationalist and selfish European publics. But they will have no-one to blame but themselves.

    Image by Chesi. CC licenced. 
  • Finance Taxing times for Sarkozy

    30 January 2012

    France's planned introduction of a "Tobin tax" has broken a practical taboo, but will it help or hamper economic growth, asks Jason Walsh.

    Speaking on television on Sunday night, French president Nicolas Sarkozy announced plans to introduce a tax on financial transactions.

    The 0.1 per cent levy, often referred to as a Robin Hood tax or Tobin tax after economist James Tobin, will be introduced in August as part of a package of measures, including hikes in VAT, the president says will promote economic growth and job creation. 

    It would be easy to dismiss Mr Sarkozy's move as nothing more than naked electioneering. Indeed there is much to commend such a view, but the move is more than just smoke and mirrors, even if it is gesture politics.

    The idea of a tax on financial transactions is simple: supposedly it will take from the rich to give to the poor, hence the cute Robin Hood monicker. 

    Mr Sarkozy says the implementation of the tax, first proposed by Mr Tobin in 1972, will "create a shockwave and set an example" to other EU nations. It may well do.

    Nevertheless, the French president is not quite the maverick trailblazer he claims to be. German chancellor Angela Merkel has previously expressed support for the idea, as have Joseph Stiglitz, noted economist and adviser to former US president Bill Clinton, former British prime minister Gordon Brown and EU commissioner Michel Barnier, to name but four. In fact, it is hard to find any senior political figure who is actually against a tax on financial transactions. True, Britain's prime minister David Cameron is strongly against imposing one, but the main complaint political leaders make about Tobin taxes are that they are fine in principle but cannot be imposed unilaterally without driving the financial services industry to leave the country en masse

    Clearly this is bunk and any blood and thunder proclamations of impending doom from bankers should be treated with some scepticism. That doesn't mean a Tobin tax is necessarily a good idea, though. 

    The idea isn't really to generate revenue from the tax, so much as to curb financial transactions by dissuading speculators from making short term investments (in the original conception Tobin taxes were aimed particularly in the foreign exchange market, a fact which goes some way toward explaining British reluctance: much of the City of London's business is actually transacted in euros). This is all predicated on a view of the world economy as a giant casino in which fortunes, often borrowed, are won and lost in a zero sum game. This may be a popular view today, but it obscures as much as it illuminates.  

    We are all now familiar with the concept of the real economy and how it has become disconnected from the high-flying world of finance, but we are still paying little more than lip service to the idea that investment exists to provide funding to the real economy. 

    Real growth requires not a curbing of financial services, but a recouping of investment to industry, something the tax is neither capable of doing, nor was it designed to do.

    For those who say the tax is only fair given the various bailouts and nationalisations of banks –  effectively the socialisation of private debt – the fact remains that bailing out bankrupt banks was a political choice and a Tobin tax will do nothing to address this or the consequent, also political, austerity programme being pushed across Europe. Mr Sarkozy claims the money will be used for social protection, but quite why anyone in Europe, where raised taxes are being used to pay down debt, believes the revenue from this tax will actually be used to help the poor has not been sufficiently explained. Far from being a move toward economic fairness, Mr Sarkozy's move is very much in line with the austerity agenda.

    Image by 'Images of Money'. CC Licenced.