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New Europe Print Edition Issue 1028

New Europe Print Edition Issue 1028

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New Europe Print Edition Issue 1028
New Europe Print Edition Issue 1028

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Published by: New Europe Newspaper on Apr 28, 2013
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20
th
Year of Publicationnumber 102828 aPril - 5 maY, 20133.50
E
urop ldr r rpodi to tiv trd i public prcptio o th EU by dmdi tht upopulr utritydriv polici will b bolihd. A Europ citiz rct withiicri toim towrd thEU, ldr r bcktrcki o upopulr polici, rui tht th wort o th icil crii i ovr dtht th Europ will ld th wy ith xt ph o coomic rcovry.Spki o 23 April i Brul,Europ Commiio Pridt Jo Mul Brroo, wrd thtupopulr utrity polici hvrodd th trut o EU citiz i th worki o th Europ projct.H id tht thr xit  widiul btw th EU d it citiz,ldi to wht h clld “ Europtiu.”H id tht th ri i tiolit d populit prti i udrmii th Europ projct, d dddtht complccy “Europ uity cot b tk or rtd. Europ uity, dmocrcy d rpctor hum diity hv to b ouhtor vry dy,” h id. “Tody thrurc o populim d tiolim thrt to dtroy th drmmd rl. Ad, lt u b clr, thidirc o my proEuropi lo  rik. Solidrity, ocil cohio d th ocil mrkt coomy li t th vry hrt o th Europcou. Thy mut b dddd prrvd.Hi commt com  both hd EU Commiior or Ecoomic d Motry Air, Olli Rhhv hitd tht th lopropodpolicy o ctrllydriv utrity polici my b comi to  d. A poll publihd by Eurobromtr o25 April idictd tht ix o th Uio’ lrt mmbr tt, Frc,Grmy, Itly, Pold, Spi dth Uitd Kidom, r bcomiicrily toitic towrdth EU, d both Brroo d Rh,rul o  bcklh it Bruli xt yr’ Europ Prlimtlctio, r plyiup th cocpto rcovry.Lt wk, pki hd o  both crucil Itrtiol Motry Fud (IMF) mti,  wll  thri by th G20, Rh, bowito itrtiol prur, id thtth EU i ow i  poitio to looit utritydriv, climi tht th wort o th crii i ovr.Howvr, i hi wlyititd blo o 26 April, Rh w crulto hd hi bt. H id tht thr w o udmtl hit i policy,th commiio’ im hd b, lllo, to work towrd utiblrowth. I My 2014, thr r lctio to th Europ Prlimt, wll   chi o th currtcoll o commiior. Thr rom rvou popl out thr.
 The competition factor
A demonstrator burns a European Union flag outside the parliament in theNicosia, on 4 April. The question is, how much longer can citizens angercontinue before a backlash? |
AFP PHOTO / YIANNIS KOURTOGLOU
Sic th lobl coomic dowtur b i 2008, dbt h ctrd o thmcrocoomic trti d itrumt ud to ddr th crii d otrrcovry.But corrcti imblc d ddri horttrm lowdow or rcio, whil importt, hould ot bllowd to ovrhdow th d to tblih lotrm coditio or olid dutibl coomic rowth.So r, mcrocoomic policy h bor both th blm or coomic mli d th hop tht it c b ovrcom.
 A conversation withToto in Mergellina
Toto' bliv wht h hr o TV butcot udrtd why i tody' ocilEurop bk dpoit r urtd itd o pio.CLIMATE Page 15SCHEnGEn Page 10Pages 2,3,6,7, 8
 Alrmd Brroo il policy ch  lctio loom
Page 03Page 03
Praguecatching upto EU changes
Europ d  bi b uctioo 4G licTori dUkip co ilctio fht
Builditrut ith utur
EU-CHInA Page 14TELECOMS Page 09PEnSIOn REPORT Page 04UnITED KInGDOM Page 08
 Austerity or Union?
 
02
ANALYSIS
NEW EUROPE
www.neurope.eu
28 April - 5 May, 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,SwitzerlandSFr4,UKGBP4.5,USA$2.95,allothercountriesEURO6
Europrovesitsstrongpoints
OnmanyoccasionsthisnewspaperhaspredictedthatthesingleEuropeancur-rencywillgaininvaluevis-a-vistheUSdollarandconsequentlyinrelationwithallthemajorcurrenciesintheworld.Thosepredictionsweremadeduringthehardtimesofthe87UScentstooneEuro.
 editorialp.2
Coca-ColaandAmerica
DouglasN.Daft,chairmanoftheAtlanta-basedCoca-Colacompanywhichoperatesin200marketsandcommunicatesin122languages,saysmanycountriesaroundthe worldarebecoming"increasinglynega-tive"towardstheUnitedStates."ItisafactthatoutsidetheUnitedStatesmanyregardtheworld'sonlysuper-powerwithincreasingsuspicionandinsomecaseshostility,"hesays.
 p.3
Gamesandtheenvironment
Undoubtedly,boththerevampandpro-tectionoftheenvironmentmakeuponeofthetopicsofmajorimportancefortheentireOlympicpreparation.Improvingthequalityoftheatmosphereandrenew-ablesourcesofenergyareonlysomeof theenvironmentalinterventionsthat workas"aninjectionoftonification"totheurbansite.
 p.11
Darkcloudsoverfootball?
ThefinancialcrisissweepingSpanishfootballcouldleadtoastrikebythecountry'sprofessionalfootballersnextseasonifoutstandingwagestotalling45millionEuroaren'tpaidbytheendof July.
 p.21
 
US invitesEurope to Iraq
NOTEBOOK 
Not yet a true Union of"personal data"
 ArecentCommissionreportshowsthatthe1995DataProtectionDirectivelawis achievingitsmainaims--toensurestrong  protectionforprivacyandmakeiteasier  forpersonaldatatobemovedaroundthe EU.ButtherelevantCommissionreport statesthatthelateandinmanycases casualimplementationbymemberstates oftheDirectivehaspreventedEurope's economyfromgettingthefullbenefitofthe Directive. NottoforgetthatthefreeflowofpersonalinformationthroughouttheEUisessen-tialfortheefficientconductofalmostany economicactivityonanEU-widebasis.Theissueremainsverymuchintheair  duetonationaldifferencesthatcometo correspondtodivergingbusinessinterests withintheEuropeanUnion.Inthebank-ingsectorforexampleanumberofbanks donotwanttocooperatefearingthatthey willlosethevaluetheyhaveaccumulated overtheyearsindraftingtheir"good"and"bad"listsofcustomers.Duetothismany memberstateshavenotimplementedthe Directive.ThereportbytheCommissiononthe workingsoftheDirectiveconcludesthat"resultsintermsofthefreemovementof  personaldataarebroadlysatisfactory.The Directivehasachieveditsaimofremoving  legalobstaclestothefreemovementof  data,whicharosefromdifferencesin nationallegislation,andfromthefactthattwomemberstates(ItalyandGreece)had nodataprotectionlawsatall."WhatisofgreatimportancehoweverhastodowiththeCommission'sreportwhich confirmsthatthewayinwhichtheDirec-tivehasbeenimplementedhasleftimpor-tantdivergencesbothbetweenmember  statesandbetweenthewaystheyare appliedinpractice.
PP
uttingasidethedeepdivi-sionsofpastmonths,theUN Security Councilendedcontroversialeco-nomicsanctionsagainstIraq.The15-nationcouncilvoted14-0toadoptaresolutiondescribedbydiplomatsandUNSecretaryGeneralKofiAnnanassetting the foundation for a newbeginningthatwouldleadtorecon-structionandademocraticgovern-mentfollowingthefallofSaddamHussein,whoreignedoverIraqformorethan30years. AnnansaidtheresolutiongavetheUNthe"legalbasis"onwhichtooperate.GermanAmbassadorGunterPleugercommented,"Withthisreso-lution,weleftbehindthedivisionof thepastforthesakeofthepeopleof Iraq." HesaidIraqisnowhaveanopportunity to live at peace withthemselves,theirneighboursandthe world.France'sAmbassadorJean-MarcdelaSabliere,whosegovernmentbit-terlyopposedthewar,said:"Thereso-lution gives the occupying powersresponsibilities that are consistent withinternationallaw.Thisisveryimportant."HesaidcouncilmembersagreedtocompromiseinmanyareasforthebenefitoftheIraqipeople,describingtheadoptedresolutionasa"verygoodoutcome."ExceptfortheSyriandelegation,whichdidnotshowupforthevote,allcouncilmemberspraisedthedecisiontoterminatethesanctions imposed in August 1990afterIraqitroopsinvadedKuwait.Thesweeping economic sanctions hadbeencriticisedforcausingwidespreadhardshipstotheIraqiciviliansandthedeathofmanychildrenduetopoorhealthandnutrition.
www.new-europe.info
11
th
Year,Number 522
 T
HE
E
UROPEAN
W
EEKLY
May 25-31,2003
New Europe
Europetargetsenergy 
 AkeyprojectfordeliveringCaspianoiltowesternmarkets willbethefocusofaconfer-enceinBrusselsthisweekpavingthewayforEurope'ssecurityofenergysupply.TheconferenceOdessa-Brody-PlockOilTransportationPro- ject:EnhancingEUEnergySecurityandIntegrityonMay27aimstosupporttheOdessa-BrodyoilpipelineextensionfromUkrainetoPlock-GdanskinPoland.AmbassadorMarekGrela,headofthemissionof PolandtotheEU,stressedthatthepipeline"shouldbeacom-merciallyandprivately-finan-cedundertaking.Weshouldhaveanin-depthfeasibilitystudyontheeconomicprof-itabilityofthispipeline."Thefirstpartoftheconferencewillconsistofapolicysessionoutlin-ingthepoliticalwillforthisex-tensionbyUkrainianVicePre-mierVitalyHaiduk,PolishDeputyPrimeMinisterMarekPolandEU CommissionerforTransportandEnergyLoyolaDePalacio.Thesecondpartwillconsistofaroundtabledialogueinvolvingindustrialandfinan-cialactorsfromkeycountriesof theEUandCentralandEast-ernEurope.
(p.35)
UN’sSecurityCounciltakesavote
UN given political rolein post-war Iraq
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EyeforDetail
NewEuropebylines
AthanassiosPapandropoulos
 on Isdeflationtheabsoluteevil?,p.2
 TheShootingGallery
Sir, there’s a student on the line about the Reinhart Rogoff spreadsheet you’ve been using...
 
AFP PHOTO/ PETER MUHLY
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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The US took a step towards reconciliation with Europe by offering the UN a role inIraq and in return the world body haltedsanctions, a move that led to the Germanambassador saying that Iraqis now havethe opportunity to live at peace with them-selves, their neighbours and the world.There was talk of a Ukraine - Poland pipe-line and feasibility studies in this brief boutof optimism. Greece was using the forth-coming Olympics and Spanish footballers were considering a strike over unpaid wag-es, caused by an earlier financial crisis.
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Ukip are talking a good game; the Eurosceptic party are in a buoyant mood. Next month’s local elections in the UK will bethe first step on an all-conquering path that will lead to the pal-ace of Westminster and the complete withdrawal of the UnitedKingdom from the European Union. The party’s confidence iscertainly on the up, fuelled by increasingly positive poll resultsand media attention that has seen Ukip go from sideshow to se-rious, the party’s assault on the political scene is being taken alot more earnestly these days by punters and politicians alike.Certainly they are talking a good game, with the Ukip leader,Nigel Farage, current enfant terrible MEP, predicting majorgains at the expense of each of the main political parties, not justthe Conservatives, their traditional enemy on the right. Europein particular is the battleground there, unsurprisingly. In prepa-ration for its all-conquering performance, the party is fieldingits largest number of candidates (1,734), failing not too shortof coalition partners, the Liberal Democrats. Current supportfor the party is around 12%. Some predictions are that they willscore around 15% of the vote in May.Europe is never too far from the surface, and while the electionsare for local authorities, Ukip are still very much dealing ontheir main stock-in-trade, the European Union. There is an in-creasingly bitter attitude towards the EU form citizens, not justin the UK, where antagonism towards the Union has tradition-ally been higher than in most places. In an effort to capitalise onthe demise of the far-right British National Party, the party hasincreased its rhetoric on immigration, even winning the publicsupport of the anti-Islam English Defence League, which Ukiphas sensibly rejected.The rise of Ukip is illustrative of apathy towards Europe turn-ing to active displeasure. The party look set to score highly innext year’s European Parliament elections, repeating, or possi- bly bettering, their 2009 showing, where they beat out Labourto be the country’s second-biggest party in Brussels (sincethen they have lost a few, however). European CommissionPresident, Jose Manuel Barroso has acknowledged this, warn-ing that a find of EU fatigue has set-in. The rise of national-ist parties and populist parties in the likes of Greece, Finland,Hungary and elsewhere, he says, remains the greatest threat to what he calls “the dream.” Belatedly, along with Economic andMonetary Affairs Commissioner Olli Rehn, Barroso has saidthat the Union should ease-up on austerity; that more empha-sis should be given to growth. It may or may not be enough toease tensions.Furthermore, a recent poll has shown that mistrust of the EUisgrowing in its five largest member states. In the UK, for exam-ple, mistrust stands at around 69%, up from an already-large49% in 2007. In Spain, it is 72%, up from 23%. As a party, Ukip has been accused of lacking round-the-boardpolicies, obsessing over Europe. That may be so, but there is afeeling now that is turning their way. But just having a feelingabout something is not a political manifesto – much in the same way a dream does not constitute a tangible political success  but as Europe becomes more complex, citizens become dis-tanced, and logic becomes emotion. It is not the way to conductdiscourse. But, for the time being at least, Europe is on notice.
More than a feeling
 
03
Editorial
NEW EUROPE
www.neupe.eu
28 ap - 5 My, 2013
Dialogue with Toto’ inMergellina
Te conversaion was in a local dialec. Teranslaion alhough is losing much o is beauy reains however, is essence.Te discussion ook place las weekend, wih some old and new riends, relaxed inan
oseria
in he litle por o Mergellina, inhe norh side o Napoli, on he seashore,acing he gul.Te subjec was he eernal poliical messin Ialy, an endless argumen since orever,and helped by he local red wine was raheranimaed, ye or no real reason. All o a sudden,
Too’ 
 , secular nameSalvaore Sorrenino early sixies, ocially reired on some kind o invalidiy sillselling boiled ocopus in he winer, waermelon ranches in he summer,lemons and oher merchandise in beweenseasons, in an open-air semi-legiimaekiosk in Pora Capuana, asked me very seriously,ell me
 Doto’ 
(
 Doto’ 
in he local dialecsands or
 Dotore,
docor in English, andis used in Napoli o address educaedlooking people), he European Union,call i Commission, Eurogroup or anyway  you like –o me i makes no dierence-,guaranees all bank deposis in all Eurozone banks up o one hundred housand Europer accoun, is ha correc?Quasi correc, I said, as despie saemensha confrm i, no mechanism has been seso ar o make his guaranee angible and,as you know dear
Too’ 
 ,
ra il dire ed il farec’e’ nel mezzo il mare.
 Anyway, wha is yourquesion?Lisen
 Doto’ 
don’ mix me up wihmechanisms and oher big words which Ido no undersand because I was no lucky like you o go o school. I have heard ha inhe
elegiornale
o 
RI UNO
and hereore,i is rue.My quesion
caro dotore
is, does i meanha Europe cares or he rich only?Because
 Doto
’ i one has in he bank onehundred housand Euro is very rich. Rich beyond anasy! On he conrary, I do nohave even a bank accoun. All wha I haveis a small pension, which has been already reduced and I hear ha hose
disgraziai
 in he governmen will cu i urher, inso doing robbing rom my pension, willmainain he guaranee or he deposis o he rich.ell me
 Doto’ 
wha kind o Union do wehave where he poor mus become poorerso or he rich o remain rich? And,
a proposio di merda,
 
 Doto’ 
 , wha do you hink o he French Revoluion?
 Basil A. Coronakis
BRUSSELS/MEXICO CITY 
– Since heglobal economic downurn began in 2008, de- bae has cenered on he macroeconomic srae-gies and insrumens used o address he crisisand oser recovery. Bu correcing imbalancesand addressing shor-erm slowdowns or reces-sions, while imporan, should no be allowedo overshadow he need o esablish long-ermcondiions or solid and susainable economicgrowh.So ar, macroeconomic policy has borne boh he blame or economic malaise and hehope ha i can be overcome. Bu we should be devoing as much aenion o he microeco-nomic problems – such as poor incenives, mar-ke ailures, and regulaory shorcomings – haled us ino he crisis in he irs place.Indeed, jus as microeconomic problems inhe inancial secor riggered a credi crunch andueled a global recession, so microeconomic ac-ors hold he key o recovery. Many economiesneed o ix he inancial secor and resore cred-i, while many more need o raise produciviy in order o boos growh and creae jobs.Some indusries suer rom counerpro-ducive and ill-conceived regulaion; ohers areailing as a resul o monopolisic behavior by dominan irms, or because hey ace a lack o e-ecive compeiion and ransparency in uiliiesand inancial services. Fixing hese problems would help us o reurn o a pah o growh andprosperiy or all.o achieve his, we irs mus ollow heHippocraic oah and avoid doing more harm.Governmens around he world should ignorehe empaion o relax compeiion in ordero provide relie o paricular indusries or eco-nomic groups.he renowned American economis Man-cur Olson argued ha sagnaion in developedeconomies resuls rom carels and lobbies becoming more numerous and powerul overime, unil hey evenually drain a counry’seconomic dynamism. Preserving a compeiiveenvironmen in which markes remain openand conesable is he bes onic, because irmsmus consanly innovae and perorm beerunder such condiions. his, in urn, makes oursocieies more creaive and, ulimaely, moreprosperous.Eors o relax compeiion have many ac-es. Bu all o hem make an economy less pro-ducive and redisribue wealh o small, coordi-naed groups wih vesed ineress and a sronginclinaion o lobby he governmen.he mos common approach is proecion-ism, which has been par o he poliical dis-course in various counries in recen years. Buoicial measures o help naional producers ahe expense o domesic business cusomersand consumers are always shor-sighed, orhey ail o help producers o address he chal-lenges ha hey will have o ace sooner or laeranyway.Similarly, old-ashioned dirigisme – suchas aemps o “pick winners,” oser naional“champions,” or keep ailed business modelsalive hrough sae subsidies – is boh harmuland doomed o ail. And misplaced regulaion– or example, in he service secor – remainsa barrier o healhy compeiion in many coun-ries.Once we have sopped doing harm, we mussar doing he righ hings. Economic policy islike gardening: pulling on plans will no makehem grow aser, bu a successul gardener canprovide hem wih he righ environmen in which o lourish.Relying on compeiion can help socieieso unleash well-uncioning markes’ power oprovide goods and services. o achieve his,policymakers mus have a sound enorcemenramework a heir disposal, ake an economy- wide approach, and arac he paricipaion o all sakeholders.Sound enorcemen implies legal ools andresources o pursue and implemen an econom-ic policy, along wih an insiuional design hareduces meddling by vesed ineress. Consider,or example, he imporance o imparial and e-ecive anirus auhoriies, or subsidy schemesha are suicienly well designed o ensure hahey ruly serve he public ineres. An economy-wide approach is needed be-cause markes are inerconneced. Misguidedregulaion or marke ailures ha harm compe-iion anywhere can burden he enire economy.he global crisis eruped because major prob-lems in he uncioning o he banking secorhad been le unaddressed. he poor uncion-ing o inpu markes, such as markes or energy or inermediary producs, can also do a lo o economic harm, no leas because i hampersexernal compeiiveness.Finally, srenghening compeiion hrough-ou he economy requires broad suppor. hiscanno be achieved wihou bridging ideologi-cal divisions and overcoming poliical pressuresrom paricular economic groups. Advocacy can play a key role, by educaing no only poli-cymakers, bu also ciizens and businessmen,abou he beneis o compeiion. here should be a wide consensus ha a pro-compeiive en- vironmen is one o he keys o economic pros-periy. Ausralia provides a good example o how pro-compeiive policies deliver resuls. Iseconomy was one o he OECD’s wors in ermso produciviy growh in he 1980’s; a decadelaer, Ausralia was in hird place. In he inerim,all o he counry’s economic regulaion wasexamined rom he sandpoin o maximisingcompeiion, and a naional pro-reorm consen-sus was orged.Currenly, signiican eors are underway in several counries, including Mexico. Sruc-ural reorms o boos produciviy will also becrucial o ensure Europe’s economic recovery and he survival o is social model. he “SingleMarke Acs I & II” provide a comprehensiveagenda o ap ully he poenial o an inegraedand compeiive marke o 500 million consum-ers o caalyze growh and prosperiy in he Eu-ropean Union.We know rom experience hacompeiion works. By basing economic policy on his experience, we could no only aver Ol-son’s grim prophecy. We could also acceleraeeconomic recovery, increase he pace o innova-ion, and raise livelihoods or millions o people worldwide.Copyrigh: Projec Syndicae, 2013.www.projec-syndicae.org
European Competition affairs Commissioner, Joaquin Almunia, during a press conference at theEuropean Commission press room at the Berlaymont building. Brussels, Belgium. |
EPA/OLIVIER HOSLET
 The competition factor
By  Joaquín Almunia & Eduardo Pérez Motta
 Joaquín Almuniais Vice President of theEuropean Commission and EU Commis-sioner for Competition.Eduardo Pérez Mottais President of theMexican Federal Competition Com-mission and Chair of the InternationalCompetition Network.

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