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New Europe Print Edition Issue 1021

New Europe Print Edition Issue 1021

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New Europe Print Edition Issue 1021
New Europe Print Edition Issue 1021

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Published by: New Europe Newspaper on Mar 10, 2013
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03/15/2013

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20
th
Yr of Publictionnumbr 102110 - 16 mrch, 20133.50
NEWEUROPE
 www.neurope.eu
t
  dd dp Pp bd s d  dsss   ss  p, d  wd sw    .“t s sd  d s  ... w s d' kw   w   w sp   s pd,” D Df, xp  V sss dD   Sir ws y (rs i Sv)d
 New Europe
d   sv  cds  dsss x d   hy S d s  d  c s w s  31 m.“tw ky s    ,  s  w y d  sd  pss; s  syss wpy v s   Pp,”D f sd.“os  w k  p s   :  v  ,  d, pdp,. i k   s ps  svd w  w d d  w y d pss,” sd.t s ky, d s d s   w Pp  V xpsdd wds ky  s  s, p c d w  .“W v    s vs   , s s  , d w  vy d , w w   pss spd cs  s s y,” D f sd.lk  p s  D  Sri d   d s   ss d d  s s    ss    ss   ws wd, “s s  p s d s w dy d s d   ss,” sd.“o ss s s    ss p d   ws wd w d   d  spp s ss,  xp, wd  p   d s   p; s s v vy vsqs  s   ss.”
(Interview on Page 5)
 The silent revolution of Europe's television
A cardinal walks at the end of a meeting of pre-conclave on 7 March, 2013at the Vatican. The next pope's ideal profile began to take shape; a man withpastoral experience, missionary energy and few ties to the Vatican's unruly government. |
AFP PHOTO / VINCENZO PINTO
i ss  sx s, Pd d b w sw   svs ds. S , hy w w. W r sws  2015,  s ds  p u w  d. i Sp 2003  ss psd c   s   d ds ( d ‘swv’   ‘sw’), w s   s  swv  d vs, xpd vspy ps, d d  d u py s    d ss  sp.
Greek society on a tight rope
ls wk,  y sds d       ds   Gk y  ls. ty sd ks z  pp  d    p;  w s , w   w d dd d      d, d   s. 
(continued on page 6)
comPtition Page 21SPc Page 14Page 05
 W   w Pp   w p
Page 06Page 03
 zj ws  u  S cssuk sksrss s ypss Vy  wspvds s  Tds fd
PnSionS Page 04nrGY Page 12 ZrbiJn Page 28SYri Page 15
'A Crisis of Hope'
 
02
ANALYSIS
NEW EUROPE
www.neurope.eu
10 - 16 March, 2013
Australia$3.4,AustriaEURO1.81,BalkansEURO4,BelgiumEURO3.50,HollandEURO2.69,CentralAsiaUSD7.5,CentralEuropeUSD5,Canada$5,Denmark:DKK19,95,EasternEuropeUSD7.5,FranceEURO3.04,GermanyEURO3.57,GreeceEURO4,HungaryHUF400,JapanY900,ItalyEURO3.62,Nordiccoun- triesUSD7,PacificRimUSD8.5,RussiaUSD4,SwiterlandSFr4,UKGBP4.5,USA$2.95,allothercountriesEURO6
Mechanicsof globalisation
Thecoremechanismofanyglobalisationinthehistoryofcivilisationwasandstillistheonethattransferstheeconomicsur-plusfromtheperipherytotheMetropo-lis.
(editorialp.2)
 Athensandseaview
Inlessthanayear,thesouthernsuburbsofAthens,whichconstitutethecity'ssea-sidezone,arechanging.Thearea'strans-formationhasbeenmadepossiblethankstotheinterventionbeingrealisedintheframeworkoftheOlympicGames.
 p.11
Jobsconsensustalksfail
GermanChancellorGerhardSchroederfacedstrongcriticismafterthefailureof hisfive-yearbidforlabourreformsthroughgovernment-brokeredtalksbetweenunionsandbusiness.
 p.14
Debtissueresolution
RussiaispreparedtopayoffincashthatpartofdebttoBulgariawhichcannotbesettledinkindbecauseofdifferencesinpricing,RussianPresidentVladimirPutinsaidafterhismeetingwithhisBul-gariancounterpartGeorgiPurvanovinSofia.
 p.39
Need ofthe hourunity in diversity
NOTEBOOK 
On the verge ofpolitical collapse
 Poland,theCzechRepublicandHungary, whicharepreparingtoentertheEuropeanUnion,areonthevergeofpoliticalcol- lapse.Poland'sgovernmenthasalready gonebust,andthoseintheCzechRepublic andHungarywillsoonfollow.ThesecountrieshaveinvestedheavilyintheirEuropeanUnionprospectandnow seemincapabletocontinueinthisdirec-tion.Theirmainproblemisnoteconomic butpolitical.Theirentirepoliticalsuper- structurethatappearedafterthecollapseof theSovietUnionwasbasedonpeoplethat camefromabroad,mainlytheUnitedStates.Thesecountriesmustnowundergoareal politicalandeconomicreshuffleinorderto achieveastatuscompatiblewiththe"aquisCommunautaire."Itisa"deprofundis" changewithpainfulrepercussionstothe everydaylifeofpeople.Unfortunatelythe PolishandCzechgovernmentsseemimpo-tenttoreallyengagethepeopleinthisgreat exercise.Thereasonforthiswidespreadpathetic attitudeisthelackofvisionsinthewaythesecountriesweregovernedoverthelast decade.Corruptionandinterventionsfrom abroadhavecreatedanunhealthypolitical climate.Atthesametimevotersweredisil- lusionedwithcapitalismandfailedtoreal- lytastetheaffluencetheyexpectedto emergeaftertheoldregimesdisappeared.Thetotaldisintegrationoftheoldstate apparatusdeprivedthelargestpartofthe populationofbasicnecessities.Healthand pensionsystemsnolongerprovideanykind ofsecurity.Onthecontrarytheoldcom- munistregimesofferedbasichealthcare andoldagepensiontotheentirepopula-tion;itmaynothavebeenmuchbutitwas something.Allinallthesecountrieshavea longwaytogobeforetheycancreatea long-termviablepoliticalsystem.
By
ElmarBrok,
MEP
TT
heEuropeanConventionhasentereditsdecisivestagenowwiththeformulationofthetextoftheConstitutionfortheEU.TheEuropeanCouncilinLaekenhasaskedthemembersoftheConventiontoworkforanEUthatismoretransparent,democraticandstrivesforefficiency.Theresultsachievedsofarareencouraging-justtomentiontheintegrationoftheCharterofFundamentalRightsandthesinglelegalpersonalityoftheUnion.Otherquestions,mainlyininstitutionalmattersneedin-depthdiscussion.The recent developments have proven theimportancethatEuropeeventuallybecomesabletoactinsolidaritywiththecommonEuropeaninterestandwithloyaltytotheUnionandbetweenitsmem-bers.ItisnowthetaskoftheEuropeanConventiontofindasolutionfortwomainaspects.TheConventionshouldmakeadecisivestepfor- wardtowardsaCommonForeignPolicyoftheEuro-peanUnion.TheIraqicrisisshowsagainthatsofar,itischaracterisedbydivisionandcompleteineffi-ciency.Europehasneverexpresseditsdisagree-mentssofranklyontheinternationalstage.ACon-stitutioncannotcompensateforthelackofpolitical willonthepartofMemberStates,butitcancreateaframeworkinwhichacommonwillcanbemoreeffi-cientlyguaranteed.
www.new-europe.info11
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New Europe
Russia,China tomaintain oilsupplies
GiventheinstabilityintheMiddleEastandtheimminentUS-ledwaragainstIraq,Rus-siahasofferedtohelpEuropeinensuringsteadyoilandgassupplies.RussianPresidentVladimirPutinsaidthecapa-bilitiesoftheRussianenergysectormayprovehelpfulinensuringsustainableeconomicdevelopmentinEurope."TheunstablesituationintheMiddleEasthasanegativeimpactontheglobaleconomy.Inthiscontext,Russia'senergycapabilitiesmaybeusedtosus-taintheEuropeaneconomy,"PutinsaidaftertalkswithGer-manChancellorGerhardSchroeder.Onthesamenote,China'slong-termstrategyof diversifyingitssourcesof importedoilandgasshouldensuresteadysuppliesintheeventofwarinvolvingIraq,ForeignMinisterTangJiaxuansaid.Chinaregardsitsenergyimportsasastrategicallyvul-nerableresource."Wehaverealisedthisproblemalongtimeago,andworkedoutthestrategyofdiversifyingimportsofoilandgasimports,"Tangsaid.
ek
 ElmarBrok, MEP
 Future of Europe needs cohesive forces in policies
Truth and liesofusing the Armenia ballot box
 Y 
erevan, the Armenian capital was witness to thou-sands of demonstrators protesting against the re-election of President Robert Kocharyan for a second term.The government officials said Kocharyan won 67.5 percentof the vote compared to 32.5 percent for his challenger,Stepan Demirchyan.Demirchyan supported by international observers hasa different tale of widespread irregularities to tell. At theprotest rally Demirchyan told reporters, "We intend tocontinue our fight... and we will go to the constitutionalcourt to ask that these elections be declared invalid."Peter Eicher, the head of the mission from the Organ-isation for Security and Co-operation in Europe (OSCE)added his voice saying the second round of the electionhad been "disappointing". "We had hoped for better," hesaid. Interesting to note that former president Levon Ter-Petrosyan brought tanks out on to the streets of Yerevan when large groups of demonstrators rejected the electionresult returning him to office for a second term in 1996.
NewEuropebylines
 BashirKhanbhaiMEP
Onfood,notguns,forthepoor,p.5
 ManjaKlemencic
OnwhentheSlovenes voteonjoiningtheEU,p.6
 Athanassios Papandropoulos
 Indefenceofglobalisation,p.2
 MichaelJEFrye,CBE
Ontheemergingwatercrisis,p.3
 
 TheShootingGallery
Italian judges ordered Mr Berlusconi to be detained“for the duration of International Womens‘ Day as a precaution.”|
 AFPPHOTO/OLIVIER MORIN
MANAGING EdItor
Alia Papageorgioualia@neurope.eu
SENIor EdItorIAl tEAM
ostis Geropoulos(Energy & Russian Affairs)kgeropoulos@neurope.euCillian Donnelly (EU Affairs)cdonnelly@neurope.euAndy Carling (EU Affairs)acarling@neurope.euAriti Alamanou (Legal Affairs)aalamanou@neurope.euLouise Kissa (Fashion)lkissa@neurope.euAlexandra Coronakis (Columnist)acoronaki@neurope.eu
dIrEctor
 Alexandros Koronakisakoronakis@neurope.eu
ExEcutIvE lAyout producEr
Suman Haquesuman@neurope.eu
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Ten years ago, the European Convention text was be-ginning to make many European politicians feel opti-mistic for the future, one that faced as many challen-ges as ambitions were running high. One concern andaim, was setting up a common EU foreign policy. Thedifficulty and some would say, the impetus was pro- vided by the European split over the imminent warin Iraq. Perhaps the MEPs were urged into graspingthis difficult issue because of remarks in the US aboutold and new Europe. Russia‘s President also reachedout to Europe, alongside China, and offered to selloil, should the Basra taps be turned off. They had, atleast learned the value of diversification of energy op-tions. We also warned that Poland and Hungary werein trouble, in the run up to joining the EU as politicalsystems had to change and change drastically.
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Pierre Moscovici was in a taciturn mood when he visited the Europe-an Parliament on 7 March. Taking part in the Progressive Economy Conference, organised by the centre-left, the French finance ministerreiterated calls for more growth policies. He was a little vague on thedetails, calling on a European debate, a chance to discuss a possiblenew economic direction for the EU.But, economic growth polices (as opposed to austerity restrictions)may just well happen (i.e. economic policies as imposed by the cen-tral EU powers); certainly those on the left think so. The first Euro-pean elections after the current economic crisis kicked-in (the elec-tions of May 2009), certainly provided a boost to the centre-right,as uncertainty about the possible EU intervention in member stateeconomic sovereignty fuelled move to a consolidation of ‘what wehave we hold’. The centre-right did well. But there were ominous si-gns – populist parties, those arguing from the extremes – made gainsin certain member states.In the intervening years, through by-elections, federal elections andnational elections, there has been an increase of support for centre-left candidates (France being the obvious example, but also, in a lessobvious way, Belgium, Ireland, Italy, the Czech Republic, and withpossible gains for centre-left in Bulgaria and Germany, when federalelection are held in the autumn. Recent elections in Italy however,are difficult to access at this stage, with the political landscape frac-tured and the centre-left, once in an apparently unassailable position,now in a deadlock with centre-right and populist opponents. Thepresumptive winner, Pier Luigi Bersani, of the centre-left, is contem-plating a return to the polls.Despite this, in broad terms, things seemed to have changed in thepast five years. Mosovici, whose country, France, is one of the drivers behind economic integration, and whose economy is failing in termsof right-wing pressure from the likes of the European Commission toimpose fiscal discipline on member state economies to endorse au-sterity, is attempting to play both sides of the fence; pushing for a re-newed policy on EU economic policy (all those that subscribe to thesingle currency must, by definition, agreed to a uniform economicdirection), while suggesting that governments should not be reck-less in public spending. The French government is under centralisedpower, as are other Eurozone countries, from fiscal pressure fromconservative forces, such as European Commission President, JoseManuel Barosso, as well as Economic and Monetary Affairs Com-missioner, Ollie Rehn, who continue to plug austerity, long with theGerman government, facing federal elections in the autumn, and theUK government, essentially marginalised.The French have failed in their obligations to the EU, admitting thattheir deficit will exceed the European Central Bank (ECB) and EUimposed Eurozone figures of no more than 3% of GDP; the Frenchgovernment wants to persuade the central powers to shift those obli-gations a year. Something that will, no doubt, be done.Of course, while this is being worked-out, Moscovci, or any seniorFrench government official, cannot provide the radical leadershipthat the centre-left in Europe demand. The finance minister cannot be too radical. His president, Françoise Hollande, once the apparentsaviour of the European left, has tanked in the polls. While his go- vernment is attempting to court the European Commission on thepossibility of moving their debt commitments back a year and for-mer president Nicolas Sarkozy, is already hinting at a political come- back along the lines of Silvio Berlusconi. The right may not be dead, but the left needs a radical touch to persuade citizens of a changein political direction; in Italy, for example, whose Berlusconi admi-nistration, touched by scandal, has managed to hold a respectableshare of the vote, the left should have shot to power, while Germany looks set for a return to power of the centre-right Angela Merkel, thistime in coalition with the social democrats. As citizens get less andless interested in politics, and established parties rely on a core vote(as opposed to courting new voters), the radical protest vote, whichMoscovici, warned about when addressing the Brussels parliament, will automatically, rightly or wrongly, benefit. The European left is warning against a quick return to the polls in Italy as a way of avoi-ding drawn-out coalition negotiations. But maybe it is the only way.People always fear uncertainty. It worked in Greece and Ireland forthe right.
Growth, but whatabout the details...
 
03
MEDIA
NEW EUROPE
www.neurope.eu
10 - 16 March, 2013
I
n less than six months, Poland and Bulgaria will switch off analogue terrestrial televisi-on broadcasting. Soon after, Hungary willfollow. When Romania switches off in 2015,all terrestrial broadcasting in the EuropeanUnion will be digital.
 A long process
In September 2003 the commission pu- blished a communication on the transitionfrom analogue to digital broadcasting (fromdigital ‘switchover’ to analogue ‘switch-off’), which set out the benefits of switching overto digital television, explored various policy options, and initiated the debate on EU policy orientations on the amount and future uses of spectrum potentially released at the cessationof analogue terrestrial television transmission.This communication was part of the Ac-tion Plan eEurope 2005 which requestedMember States to publish their intentions re-garding a switchover by December 2003.Initially, the commission was not inter- ventionist and said that market forces andconsumer demand must drive broadcastingdigitisation, which is a major industrial chal-lenge. Business freedom and incentives were,according to the commission, instrumental tothis goal.The main reason was that the commission burned its fingers in the 1980s when, in reac-tion to Japan’s analogue High Definition TV (HDTV), it promoted a European high defi-nition alternative, called Multiplex AnalogueComponent (MAC). Embodied in a Europeandirective, it proved technically over-ambitiousand commercially disastrous. As a result, Euro-pean broadcasters and receiver manufacturersreacted against politically-driven high techno-logy strategies in the 1990s.The second reason was the initially di-sastrous digitization experiences in the UK and Spain. In the UK, digital terrestrial tele- vision ITV Digital was launched in 1998 by ONdigital, the network was briefly re-brandedas ITV Digital in July 2001, before the serviceceased permanently in June 2002. Its mainshareholders were Carlton Communicationsand Granada plc.In Spain, the launch of digital terrestrial te-levision (DTT) was very similar to the failureof ITV Digital in the United Kingdom. Digitalterrestrial television was launched by the pay TV operator Quiero Television in 2000, partly owned by the same Carlton Communications.Quiero TV had to compete with satellite andcable operators in the Spanish market. By ear-ly 2001, Quiero reached 200,000 subscribers, but afterwards viewer numbers decreased. Itshut down in April 2002, having lost around€600 million.There was a consensus that the pay TV  business model followed was not realistic.DTT would never be able to compete withdirect to home satellite reception. DTT wouldonly succeed if used mainly to offer free digi-tal TV to the consumer, with more channels(multi-channel choice), improved picture andsound quality, new entertainment and infor-mation content, as well as easy installation.Moreover, viewers should only be giventhe possibility to continue viewing analoguetelevision for a limited time period (simulcast)once digital television was available. It was ne-cessary to anticipate the switch off date so asto entice the viewers to change to digital. Inturn, this would provide a clear signal to themanufacturers and retailers who would focustheir marketing on selling digital TV sets inthis period.However, a cheaper free to air broadcastof TV channels was a threat for the existingcommercial TV channels. More TV channelsmean new entrants, which will compete withthem for TV advertising. It could even ‚reshuf-fle‘ the cards, with new entrants taking over therole of the most successful commercial chan-nels. With incumbents that were reluctant toco-operate, it proved difficult to build industry consensus to set early switch off dates.The outcome of the initial commissionstrategy has been that member states adopted varied approaches reflecting not only differentmarket sizes, but also the pattern of TV com-petition, strength of the desire to foster broad-casting pluralism, and the penetration of cableand satellite TV.
The Commission takes charge
In a subsequent communication in 2005,the commission went a step further thanrecommending transparency. It proposedthat the beginning of 2012 be agreed for theswitch-off in all member states. The commis-sion reminded that accelerating the transitionand setting a deadline was necessary to end thefragmentation of European digital televisionmarkets, suggesting that it may have a legal ba-sis to intervene with more constraining instru-ments than mere recommendations.The commission however did not pursuethis road. It looked for allies instead, and foundthem in mobile operators seeking more spec-trum for new wireless broadband services andin Finance ministers looking for possible ad-ditional revenues to limit budget deficits. Thecommission stressed the potential revenuesthat could be raised from auctioning the for-mer analogue broadcasting spectrum to mo- bile operators. According to a communicationissued in 2009, the ‘digital dividend’ could rise by some €20 billion to €50 billion by 2015.This new strategy proved successful andCommissioner Neelie Kroes will be able to ce-lebrate the digital switchover of the EuropeanUnion before the end of her mandate. The EU will have narrowly beaten the USA where thelast analog television transmitters must only shut down by 1 September 2015.
The future of television looks bright
The switchover strategy of the commis-sion focussed largely on terrestrial television.Digital TV switchover is however a processencompassing various networks. Many cablenetworks still have to complete the switchover. At the same time, the future of terrestrialtelevision is being questioned. Watching TV traditionally appears more and more outdated with the deployment of broadband networksand connected TV. Younger consumers watchTV on their tablets via wifi. The future of tele- vision is bright, but is this also the case of digi-tal terrestrial television? Will commercial TV channels continue to pay for digital terrestrialtransmission if the number of viewers makinguse of that platform shrinks?New Europe will further investigate theseand other questions in the coming weeks.
By New Europe
Europe is switching to digital TV.|
AFP PHOTO/Geraldo CASO
 The silentrevolution of Europe’s television
11UiTEtrEni. 111/1/11:
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