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New Europe Print Edition Issue 1057

New Europe Print Edition Issue 1057

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New Europe Print Edition Issue 1056
New Europe Print Edition Issue 1056

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Published by: New Europe Newspaper on Nov 10, 2013
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21
ST
 YEAR OF PUBLICATIONNUMBER 105710󰀭16 NOVEMBER, 20133.50
www.neweurope.eu
O
ur successes were much more than the failures, agreed the European Central Bank (ECB) and the European Commission (EC) during the hearing on Troika’s work in the bailout countries held on Tuesday in the European Parliament. Despite academics’ and MEPs’ strong language about the false forecasts in the beginning of the programmes, Servaas Deroose from the DG ECFIN and Klaus Masuch from the ECB presented Troika’s opera-tions as both legitimised and useful for the countries that they visited.Some of the metaphors used by the MEPs to describe the Troika’s ope-rations as well as the representatives’ presentations are the following: “Your forecasts are worse than the  worst weather channel”. “Listening to the ECB and the EC talking about Tro-ika, it is almost like hearing the spokes-men of Alice in Wonderland”. “Your timing is a bit like your forecasts".IMF’s absence was criticised by the MEPs, whereas the ECB and the EC did not want to take any position.
On democratinc legitimation
 “The European Commission is al- ways accountable to the European Par-liament”, said Deroose while stressing that “EC’s role is to help the commu-nication between ECB and IMF”. Re-garding ECB’s role in the Troika, Klau Masuch explained that the ECB acts in liaison with the Commission in or-der to provide technical advice, based on its expertise”. He also stressed that “it is important to remember that the Eurogroup is the body which actually decides whether to grant financial as-sistance and under what terms”. “We never act alone”, Deroose agreed.
Begging for understanding
“It is very difficult to make fore-casts. What we need is your understan-ding and not your criticism”, said Dero-ose, whereas Masuch acknowledged: “We were wrong about Greece, but  we were right with Ireland”. In Gree-ce, he explained, some things should have been done differently but it was not Troika’s fault. “Delays and shortco-mings from the Greek side sabotaged our cooperation. When we arrived in Greece the figures were inaccurate and  we had no idea of the country’s struc-tural problems”, said Masuch.
On the successes
“The good news is that there is light at the end of the tunnel”, stressed Masuch to receive many objections from the part of the MEPs. “All coun-tries under economic adjustment pro-grammes have made very significant progress in reducing their economic imbalances, addressing structural rigidities –especially in labour mar-kets- and ensuring financial stability”, added Mesuch. From his side, Dero-ose stressed that “unemployment in Eurozone has finally stabilised and it is important that the adjustment proce-dures are fair”.
IMF fail to turn up on European parliament to defend Troika record
AFP PHOTO / LOUISA GOULIAMAKI
INTEVIEW P󰁡󰁧󰁥 16 AZEBAIJAN P󰁡󰁧󰁥 28
 
P󰁡󰁧󰁥 03
Schulz beats nobody 
The PES attempt to have a transparent and democratic process to select a commission president candidate produced only one nomi-nation and silence from the left.
KSSANDR P󰁡󰁧󰁥 32
 A digital future needs real net neutrality 
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 Y 
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 ARIETJE
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CHAAKE
 MEP
 P󰁡󰁧󰁥 09
Dial M for market consolidation
 W 
ITH
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UIGI
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 AMBARDELLA 
 P󰁡󰁧󰁥 11
Don't blame us
Fixed statistics burden Greek debt 
Guess what would happen if the debt of a number of public enterprises is sud-denly transferred to a state’s accounts  before returning these enterprises back to the private sector where they belong. Of course it’s a recipe for disaster and one that most countries would obvi-ously try to avoid. For obvious reasons, it is also strictly forbidden in the European Union. So,  why was this regulation not enforced in crisis-stricken Greece? How can the Eu-ropean Union continue to treat one of its core members (Greece) so unjustly?
Te last autocrat of Europe
Business and Society 
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 Y 
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RI
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 AVI
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HANKAR 
 P󰁡󰁧󰁥 07
ROMANIA 
 P󰁡󰁧󰁥 05
Troika say everyone else made mistakes
Now you see it, now you don’t!
 
02
ANALYSIS
 NEW EUROPE
www.neweurope.eu
10-16 November, 2013
 The Shooting Gallery
What! You want a job you silly boy?
BELGA PHOTO POOL JAVIER BERNAL REVERT
 A decade ago, Israel was the number one bad guy, when a poll showed that 59% of Europe-ans considered them the biggest threat to world peace. The US tied with North Korea and Iran at 53%. On the financial side, there were prob-lems over the stability pact, where the French  were pledging ‘credible’ action to reduce their  budget deficit.Meanwhile in Chechnya, the EU was pleading  with Putin to uphold the rule of law at a sum-mit where Commission President Prodi was ac-companied by Putin and Berlusconi.There were rumblings of a trade war between the EU and US after American exports were  judged by the WTO to be an illegal subsidy.
 N E  1 0  Y E A  R  S  A GO
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The sanguinary war in Syria, among other surprises it has in store for our European civilisation, has also uncovered one more: the thousands of European citizens who are joining Syria’s rebels fighting against the coun-try’s President Bashar al-Assad. These “modern Jihadis” are nothing more than Muslims themselves, the sons and grandsons of Muslims. In other words, they are the second and third generation of immigrants who settled in Europe many years ago. These young fighters were born in Europe and they grew up here. They studied at European schools where they were taught European values. Their fathers did what they could to assimilate into the local society and they struggled to become accepted and to gain respect. So what happened? Why are young men from Norway, the Netherlands and other countries flying to Turkey and jumping the border into neigh- bouring Syria to join these warlords? What happened to the European  values they learned in school? Have European values been lost on these second and third generation immigrants?For decades, serious differences have divided immigrant policies in Euro-pean with those in the New World. In the United States and in Australia, for example, the society is multicultural. This means every different eth-nic group enjoys its own space and is able to develop its own identity. In Europe, however, our system has been pluralistic. Here, different cultures have always met under the presupposition that European values are ac-cepted and respected in order to secure the permanent enrichment of our society.But this situation has changed. European society isn’t pluralist anymore. It has become multicultural.But even when angry young Muslims started rioting in the streets of Eng-land, we didn’t realise that things had started to change. It started becom-ing clear after riots erupted in the Muslim immigrant suburbs around Paris several years ago. So we should not be surprised by the fact that a growing number of young Europeans today are feeling more inclined to fight a “holy war” in another country than to live a peaceful life at home. But why is this? The answer is that European societies have failed to in-tegrate the second and even the third generation of immigrants. Instead, they have allowed the creation of invisible ghettos in their neighbour-hoods and inside their secularist schools and universities. They have stood by as huge social and cultural walls were built between “us” and “them”. The harsh reality of the economic crisis that is facing Europeans today is something the second and third generation has been struggling with many years. The social frustration and feeling that there is little hope for a  better future is exactly what is sending them right into the hands of mod-ern Jihad warlords.This is not something new in history. One needs only to remember how Nazism thrived on people’s social frustration. This is even true in most European Union countries today as regards the ascent of far-right parties. For the growing number of second and third generation Muslim immi-grants in Europe, there are two deciding factors: they are the sons of im-migrants and they belong to other religions. Properly prepared on the “ideological” level, they find money - paid by the Muslim countries that are financing many of the oppositionist groups in Syria. They also find respect among other Muslims. And they find a new world which is inviting and which claims to give them an identity, despite the fact that, after all, death is on the daily agenda.But more than anything else, they find something that European society - their society - has failed to give them: an identity and hope for the future. If the leaders of EU countries fear the growth of the extreme right in their countries, they should also take into serious consideration the ascent of European young jihads as well.
 A new breed?
 
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EXTERNAL CONTRIBUTIONS
SignedContributionsexpresssolelythe viewsofthewritersanddonotnecessarily reflecttheopinionofthenewspaper.NEis  printedonrecycledpaper.
© 2013 New Europe all rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form by any means, electronic or otherwise, without ex- press permission. The Publishers accept no liability for third party views published, nor damage caused by reading, viewing or using our content. All information is correct at the time of going to print, we accept no liabilities for consequent changes.
   N   E   W    E   U   R   O   P   E
    I    S    S    N    N    U    M    B    E    R   :    1    1    0    6  󰀭    8    2    9    9
DIRECTOR
 A lexandros Koronakisa@neweurope.eu
EXECUTIVE LAYOUT PRODUCER
S uman Haque sh@neweurope.eu
SUBSCRIPTIONS & DISTRIBUTION
 subscriptions@neweurope.euSubscriptions are available worldwide
INDEPENDENCE
New Europe is a privately owned independent publication, and is not subsidised or financed in any way by any EU institution or other entity.
EDITOR
 Basil A. Coronakis b@neweurope.eu
MANAGING EDITORS
 Ko nstantin Tsapogas von Taube kt@neweurope.eu Th eodoros Benakis (Print ed.) tb@neweurope.eu
SENIOR EDITORIAL TEAM
K ostis Geropoulos (Energy & Russian Affairs) kg@neweurope.euA ndy Carling (EU Affairs) ac@neweurope.euAlia Papageorgiou (Business) ap@neweurope.euA riti Alamanou (Legal Affairs) aa@neweurope.euL ouise Kissa (Fashion) lk@neweurope.eu
CONTRIBUTING EDITORS
Dan Alexe Christina Vasilaki
 
03
INSIDE EU
NEW EUROPE
www.neweurope.eu
10-16 November, 2013
By Basil A. Coronakis
L
e us hink or a momen wha  would happen i, all o a sud-den, he deb o he French ranspor sysem, covering buses, rams, he mero, he RER and OP-ILE and he PAM nework or dis-abled people and so on, were all rans-erred o he governmen’s accouns.  Afer all, he French ranspor sysem is heavily subsidised by he sae. Well, he disaser one can only imagine did no happen in France, and righly so,  bu i did happen in Greece! Greeks and all oher European ciizens have he righ o know wha happened in Greece and why i happened.  All o us in Europe have agreed o comply wih cerain erms and condiions called European Regula-ions and he firs o do so is, alas, he European Commission. Tereore, i public ranspor companies provide a service, because o a governmenal or European socio-economic policy, hen hese public companies mus be compensaed or subsidised or losses incurred as a resul o charging prices lower han wha hey would have oh-erwise charged. Tis compensaion or subsidy does no enail he ranser o heir deb o he counry’s public deb. Well, an answer has no ye been provided by he European Commis-sion as o why, afer wo decades o applying he common rules, Greece  was suddenly in 2009-2010 reaed differenly rom France or any oher EU member sae. Looking ino he complexiy o he Eurosa crieria required o be ulfilled in order or a public company o be moved ino he public secor, i seems ha, in he case o Greece, he  job was done wih a hasy disregard or normal procedures. Tere is an ap-paren breach o European Law in he applicaion o he so called 50% cri-erion defined as he insiuional re-quiremen ha he revenue rom sales o producs or services o he public companies cover a leas he 50% o heir producion cos. By no rea-ing he above compensaion as “rev-enue rom sales” and a he same ime lumping commercial depreciaion o 100 years ino he 2009 one-year ex-penses, Eurosa was able o jusiy he non-conormiy o he public compa-nies wih he 50% crierion. Tere are addiional insances o  breach o Law. Unil 2009, Greece’s Saisical Auhoriy (ELSA), o-geher wih Eurosa, had decided ha he deb o public enerprises (public uiliy companies) could no be par o he public deb, because he gov-ernmen’s finance was in he orm o shares hus increasing he propery righs o he governmen as a share-holder on hese companies. Tis is he common pracice in he res o he European counries, according o European Regulaions agreed by all European parners. In April 2010, an esimae o he 2009 defici was published by Euro-sa, which guaraneed ha Greece’s final public defici figure was no go-ing o undergo urher changes by more han 0.5% o GDP eiher down- wards or upwards. On his basis, in May 2010, he Eurozone counries and he IMF suppored Greece wih €110bn o financial assisance. Six monhs laer, Eurosa scrapped he 0.5% and raised he final public defici  by 2 percenage poins, despie such major revisions being conrary o he commonly acceped Code o Saisi-cal Pracice. Eurosa’s oally unexpeced and unexplained acion was based on he ranser o 17 public companies rom he privae o he public secor. Te end resul was a devasaing alse aug-menaion o he counry’s public deb and defici or he year 2009, which since hen has been carried on and on orcing he counry o sagger under an unjusified exra burden, which is souring is relaions wih he res o Europe. Te issues were brough o he Eu-ropean Parliamen and he European Commission, which have recenly re-plied in wriing by disoring he ruh.  Wihou reerring o all he repored issues, heir answer claims ha he Greek law covering passenger rans-por companies is differen rom he European Law because he ormula o calculae he amoun o compensaion is no based on he produced oupu o OASA (a holding company like he French SIF). Tis is prooundly un-rue or hree reasons: OASA is a hold-ing company acing as an umbrella o he passenger ranspor companies in one o Greece’s regions, Atica, and as a consequence OASA does no have ranspor oupu o is own, as is he case exacly wih SIF. Second, i one reads he Greek law wih open, un-prejudiced eyes, hey will easily learn ha he Greek ormula is based on “he produced oupu and he passen-ger coun”, conrary, alas, o wha he European Commission reply assers. Tird, i he Greek law covering he public passenger ranspor companies  was no in agreemen wih he corre-sponding European Regulaions, hen he Commission would have aced o secure harmonisaion o provisions affecing compeiion in ranspor, according o he reay esablishing he European Economic Communiy. Such acions never occurred. In is answers, given in ac under pressure rom he European Parlia-men, he European Commission has resored o oher ourageous claims  by even providing a small oonoe reerence repored in he 2013 Euro-sa Manual, which, firs, did no exis  beore February 2013, and, second, is misleadingly repored wihou he ac-ual dae. We also noe he ollowing ac: in 2010, Eurosa moved a num- ber o public enerprises o he public secor, and, one year laer, in 2011, Eu-rosa moved hem again, back ino he privae secor. Tus, we observe ha he Commission has recognised he unjus and elonious augmenaion o Greece’s public deb, bu hey do no  wan o admi i. Tis is proved by an impressive sleigh o hand: now you see i, now you don’. Te rick: imme-diaely afer he public secor was sad-dled wih hese companies’ deb, sav-ing his way he German banks rom  bankrupcy, hese same companies  were moved again back ino he pri- vae secor, where hey belonged since 1993. Such acions are sricly orbid-den by he European Regulaions,  which require ha he iniial ranser o he public secor migh be jusified only i i was judged ha i had been in orce or several years beore and afer is iniial ranser. Eurosa’s misakes owards Greece bring o memory he spona-neiy, wih which Mr Joaquin Almu-nia, hen Commissioner or Economic and Moneary Affairs (now Commis-sioner or Compeiion), reaced on 21 Ocober 2009, when he heard a revised orecas or Greece’s 2009 pub-lic defici. Almunia said: “We wan o know wha has happened and why i has happened. Serious discrepancies  will require an open and deep inves-igaion”. Te invesigaion never ook place, bu our years laer, on Ocober 21, Almunia said: “Te EU’s problem is unaccounabiliy”. Saying he is righ is no enough. By heir unaccounable atiude o- ward fiscal saisics, he European Commission and Eurosa have led o he silencing o responsible voices a Greece’s ELSA, which is now lef wihou is seven-member board and under one man’s auhoriy – he same man who is under elony charges and  who is supposed o manage boh he counry’s saisical sysem and is saisical office: a unique phenom-enon in Europe. As described above, he 2009 alse public defici and deb have creaed a horrific whirlpool swallowing European axpayer’s bil-lions – whose desinaion is unknown – and a deb deah-spiral o a counry,  which has been among he 10 firs EC member saes, wih a proven hard-working populaion, who los 7% o is populaion in he Second  World War and who can hugely con-ribue o he consrucion o a more democraic European Union. Te quesion is: How can he EU go on  wih one o is core members being so unjusly reaed? Te 2009 saisi-cal evens need an in-deph, serious invesigaion and no inervenions o block Greece’s judicial procedures, as Eurosa is doing. Tings have o  be pu righ and Greece’s reinsae-men mus ensue. Public deb is no reused, wha is reused is is unrue and elonious par.
Eurostat’s failures greatly increase the size of Greece’s debt 
 An astonishing revelation of unjustly fixed statistics
 Since Autumn 2009, Eurostat has massaged the figures to greatly increase the size of Greece
󲀙
s debt
Now you see it, now you don’t!

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