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New Europe Print Edition Issue 1079

New Europe Print Edition Issue 1079

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New Europe Print Edition Issue 1079
New Europe Print Edition Issue 1079

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Published by: New Europe Newspaper on May 04, 2014
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21
ST
 YEAR OF PUBLICATIONNUMBER 10794󰀭10 MAY, 20143.50
www.neweurope.eu
T
here are two votes this  year, where voters will put a cross on a ballot paper, that have the power to help sha-pe Europe and bring in sweeping changes to how the EU responds to its citizens. One is the Europe-an elections in May; the other is the Scottish referendum on inde-pendence.Brussels has an aversion to re-ferenda as powerful as Dracula’s to another type of cross.Scotland wants to choose, through the ballot box, if it wants independence from the UK. A  very senior figure in the institution said that the highest levels thought this referendum was “annoying”. They thought there shouldn’t be a referendum because “it was just en-couraging others” to consider their relationship with their nations.The Scottish decision is not for Brussels to interfere with, but that did not stop President Barro-so from intervening, essentially saying there was no place for an independent Scotland in the EU. This is the same EU that had no problem with bringing in the for-mer East Germany.This has driven a highly ex-perienced diplomat to break his silence and put his job on the line. Bernard Savage’s opinion piece is perhaps not a sign of ill-discipline or the crumbling authority of the current leadership, but something more profound; that of officials, dismayed at the disorder and de-cay in the union, standing up for European values and asking for them to be applied consistently.The despair in the institutions has been palpable, until very re-cently, when the end of the current terms are near and thoughts turn to rescuing the union from its out-dated institutions, hubris and pa-ternalistic, ‘we know what’s best for the little people’ mindset that has  brought the union to the brink of destruction. A highly experienced diplomat has spoken out, more will follow and not just on Scotland.Many committed Europeans in the institutions have been prepa-ring for early retirement, giving up on the project that they have spent their lives building. Savage’s stance is not that of a disintegrating EU, but a sign that, from the wreckage of Barroso’s reign, some are standing up for the Europe we need, a Europe that puts citizens first.This ambition will also require reforming the institutions, addres-sing well known issues, such as the roles, duties and numbers of Commissioners, what to do with the lesser known institutions and, of course, the lodestar of the refor-mists, putting the Parliament in just one seat.
Alex Salmond, Scotland's First Minister and SNP leader.
 AFP PHOTO/ANDY BUCHANAN
GUINÉ󰀭BISSAU P󰁡󰁧󰁥 14IRAN P󰁡󰁧󰁥 14
 
P󰁡󰁧󰁥 05
Movies are political 
“Every movie is a political discourse. Starting from the moment when the message is sent to millions of people, what we tell them has a po-litical significance”, says director Costa Gavras.
 P󰁡󰁧󰁥 07
Ukraine erupts as IMF offers funds
BY 
 D
 AN
 A 
LEXE
 
P󰁡󰁧󰁥 04
Cross purposes
Yushchenko warns
“This conflict is actually of a geopolitical nature,” said the former Ukrainian Presi-dent, stressing it was not just a matter  between Kiev and Moscow and he noted that Azerbaijan, Moldova and Georgia had also lost 20% of their territory and Putin wanted to restore the Soviet Union  borders. Yushchenko also said the Eastern part of the country had been treated as a vir-tual Russian colony, harming Ukrainian language and culture, but he insisted that a nation should protect everyone in their  borders, regardless of the language they spoke.
Putin’s move: South Stream to Austria
󰁢󰁹 K󰁯󰁳󰁴󰁩󰁳 G󰁥󰁲󰁯󰁰󰁯󰁵󰁬󰁯󰁳 P󰁡󰁧󰁥 12
Indonesia’s ‘optimal’ trade with EU
BY 
 F 
EDERICO
 G
RANDESSO
 P󰁡󰁧󰁥 09
India’s next foreign policy 
BY 
 J
 ASWANT
 S
INGH
 P󰁡󰁧󰁥 11
 Will Europe adapt or die after the votes are counted?
(Continued on Page 03)
 
02
ANALYSIS
 NEW EUROPE
www.neweurope.eu
4-10 May, 2014
 Australia$3.4,AustriaEURO1.81,BalkansEURO4,Bel-giumEURO3.50,HollandEURO2.70,CentralAsiaUSD7.5,CentralEuropeUSD5,Canada$5,CyprusCYP1.80,Denmark:DKK19.95,EasternEuropeUSD7.5,FranceEURO3.04,GermanyEURO3.57,GreeceEURO4,Hun-garyHUF430,JapanY900,ItalyEURO3.62,Nordiccoun-triesUSD7,PacificRimUSD8.5,RussiaUSD4,Switzerland
 
China approaches European Union 25
NOTEBOOK 
 The most populated commercial partners
Thereisnodoubtthattheunheardof  beforegrowthratesoftheChineseeconomy keepallkindsofworldmarketsafloat.The EuropeanUnionisgainingalotfromtheChinesedevelopment,whilestateandgov- ernmentauthoritiesinthishugecountryare verypositivetoEuropeanproposals.Not onlydoesBeijingwanttocooldownAmer-icansandJapanesebyplayingtheEuro- peancard,butitalsoneedsEuropeasa marketforitsindustrialproductionanda sourceoftechnologyandinvestments.Let’s notforgetthatChina’seconomyisstillcen-trallyplannedandunderastateandgov- ernmentgrip.Business-wise,youcan’tsuc- ceedinChinawithoutgovernmenthelp.Withall thisin mind thevisit that Chinese PrimeMinisterWen Jiabao paid to Europe wasofparamount importance. Wen did not paya visit to certain big European countriesbut to European institutionsand met withPresident Prodi and highrepre- sentative Solana to discuss ways to enhancetherapidlygrowing partnership between theEUand China. An important agreement on customscooperation wasini-tialled during thevisit, whilepolicydia- logueson competition, tradeand textiles werelaunched formally. OfcourseEuropeaninstitutionalleadersdo notcontrolarmies,buttheycaninfluencetheUnion’scommercialpolicies.Thisisnot asmallthing.TheenlargedUnionnow comprisesapproximately500millionciti- zens,anumberthatevenWencannotignore.OntopofthistheEUandChina sharecommitmentsforeffectivemultilater- alism,disarmamentandpeacefulresolu-tionofconflicts.Regionalissueslikethesit-uationintheKoreanpeninsulaandIraq featuredontheagendaoftheChinesepre- mier’svisit.Allthoseissuesarebringingthetwomostpopulatedcommercialpartnersof theworldevencloser.Thisisagoodthin forEurope.
CC
hinese PrimeMinisterWenJiabao,thefirstinternationaldignitary,madethemaidencallontheeconomicgiantof modern times:the Euro-peanUnionof25countries.Cyprus,Malta,Estonia,Latvia,Lithuania,Poland,theCzechRepublic,Slova-kia,HungaryandSlovenia joinedtheEUonMay1.EuropeanCommissionPresidentRomano ProdisaidhesupportedimprovedcommercialtieswithChina,addingthathehopedtheEU would approvefavoured-nationstatusforChinabyJuneofnextyear.The EU Commissionand China signed fouragreementscovering cus-tomscooperation,competi-tionandtrade(andespecial-lytextile)policy.Brusselsand Beijing are already workingonaninitiativetocooperate on Europe’splanned Galileo satellitenavigationsystem.Wenalsospokeofaplannedagree-mentonthepeacefuluseof nuclearenergy.Ontheissueofarmsembargo,ProdididnotreplytotheChineseleader’sover-turesdirectly,saying therequestwouldbediscussedamongmemberstatesatalaterdate.Owing to thehumanrightssituationinChina,thegreatmajorityof EUcountriesrejectliftingthe embargo imposed in1989afterthebloodyrepres-sionofChina’sdemocracymovementinBeijing.Chinawasreadyfordia-loguewith theEuropeanUnion,saidWen,makingreferencetoaconstitutionalamendmentandcurrentandplanned membershipsininternationalagreements.China had made greateffortstoimproveitsdemo-craticsystem,headded.
www.new-europe.info
12
th
 Year, Number572
T
HE
E
UROPEAN
W
EEKLY
May9-15,2004
New Europe
Berlusconireacheslandmark 
SilvioBerlusconi,theItalianprimeminister,lastweekbecamethelongest-servingprimeministerinthehistoryoftheItalianRepublic.Hisgovernment,whichwasswornintoofficeonJune11,2001,celebrated1,060daysinpowerlastWednesday.Onthatday,itbeatthepreviousrecordsetbyBettinoCraxi,thelateSocialistleaderwhoruledfor1,059days,betweenthesummersof1983and1986.Politicalexpertspointoutthatthislongevityhasbeenfacilitatedbytheintro-duction,duringthe1990s,of amajoritysystemaimedatcurbingpoliticalinstability.Butthesameexpertsalsonotethatleft-wingparties wereunabletoexploitthenewsystemandendedupappointingthreedifferentprimeministerswithinthespaceofthreeyears.SandroBondi,apartywhipforBerlusconi'sForzaItaliaparty,saysitis"results,notlengththatcounts.”"Wehaveachievedmanyresultsduringthisfirsthalfofourterminoffice.Andmorewillcome.Wewillstayinpoweruntil2006 and beyond,"Bondisaid.
 p.13
 Brussels silent on Wen’s request to lift weapons embargo
 Terrorism threats play havoc with world oil prices
 W 
orldoilpricesnearedUSD40abarrellastweekinNewYorkwithanalystspointingouttotherealrisk ofterroristattacksonSaudioilinstallationsandthecon-tinuingconflictinIraqasreasonsforthesurge.Theselev-elshavenotbeenseensinceOctober1990inthewakeof Iraq’sinvasionofKuwait.GunmenattackedaSaudioilfacilityattheindustrialportofYanbuontheRedSeaonMay1,killingfivestaff atEuropeanengineeringgroupABBandamemberoftheSaudiNationalGuard.Thefourattackersalsodied.Eventhoughterroristattackshavenotthreatenedanyoilfacil-itiesyet,thatispartoftheconcern,analystssaid.“TheescalationofviolenceintheoilproducingcountriesoftheMiddleEastandthenewterroristattacksinSaudiAra-biaaredrivingoilpricesup,”formerGreekEnergyMin-isterElefteriosVerivakissaid,addingthatthereisapos-sibilitythatterroristscouldtargetSaudioilfacilities. VerivakissaidthatanotherreasonfortheescalationofoilpriceswastheincreasingdemandforoilfromChina,theworld’sbiggestoiluseraftertheUnitedStates.CompetitionfromChinahascontributedtoshortagesintheUSthathavedrivengasolinepricestoarecord.
 p.45
NewEuropeInterview 
 HorstKoehler
 Ex-IMFMDreadiestotakeoverGermanpresidency,p.3
NewEuropebylines
ThisenlargedEuropeanCommissionisnolameduck
GrahamWatson,MEP,p.9
Thephenomenonoflobbying
 ByPeterMihok,President,SlovakChamberofCommerceandIndustry, p.27 
 EC VicePresidentLoyola dePalacio(R )and ChineseViceMinister sign a jointdeclara- tion on Galileocooperation. Theparticipation ofChina in Galileois primarily duetoMrs. Loyola Ignatia dePalacioand Director GeneralofTransportFrancois Lamoureux
The aftermathof enlargement
 Atthestrokeofmidnight,onMay1theskiesofEuropewereilluminatedwithfire- workscelebratingtheenlargementtothe10newmembersoftheEuropeanUnion.
 Editorialp.2
France to meet EU deficit rules
FrenchFinanceMinisterNicolasSarkozylastweekexpressedhiscountry’seconomicpolicyisfullycommittedtoEurozonedeficitrulesandinsistedthathewouldfightonallfrontstotacklelowgrowth.
 p.12
Swiss firms on right growth path
Theexpansionto25membersoftheEU willnothamperactivityinSwisscompanies, whichbelievethatconductingbusinessintheEU’snewmembersstateshasalreadyprovedsuccessful.
 p.22
Business confidence up
Perceivingadomesticeconomicrecoveryandimprovingbalances,largeHungarianfirmsaremoreoptimisticregardingtheirbusinessprospectsandthecountry’seco-nomicsituation.
 p.24
 The Shooting Gallery
 In an attempt to lessen tensions between the EU and Russia/Ukraine, Putin offers replacement seat for European Parliament in a ‘unused space that is large enough’. How will Brussels react?
AFP PHOTO/ ANATOLIY STEPANOV
 What a glorious week a decade ago, first of all, Italy  was celebrating their longest serving Prime minister, Silvio Berlusconi who was marking 1,060 days in of-fice. This was heralded as a sign of Italy reaching po-litical stability. We can only guess, but he probably held quite a party to mark the occasion.The EU signed four deals with China, covering cus-toms, trade and competition, with another expected shortly over Galileo, the sat-nav system. However, there was little joy for China over the arms embargo, launched after the deaths of protesters in the capital.But, this was a sign that China and the EU had issues to overcome, but it was a sign of the mutual benefit China saw with the Prodi Commission, that their PM visited the EU institutions, rather than touring certain large states.
 N E  1 0  Y E A  R  S  A GO
M
 
M
 Just a few months ago, on the eve of the decisions resulting from the Euro-pean Union’s summit in Vilnius, Lithuania, the discussion about the East-ern Partnership issue, which concerns some of the countries of the former soviet bloc, became the centrepiece in a very tough diplomatic game. Russia, which considers closer EU ties with its former privileged partners detrimental to its own interests, has intensified its campaign for the crea-tion of the Eurasian Economic Union. What exactly the Eurasian Economic Union will be is still rather vague. Many in Brussels see it as an anti-European Union. Some fear that it will position Russia in complete control over the countries that join this new union.Let’s not forget that the EU could slap Armenia and Ukraine with a “red card” over their decision to join the new union. Also, Ukraine has gotten caught up in an adventure and nobody can predict with any degree of cer-tainty how it will get out of it. But, the Eurasian Economic Union is a future plan. It’s not yet a reality. Three parties are the constituents: Russia, Belarus and Kazakhstan.Belarus is one of the founding members of the Eurasian Economic Union. This is why a recent statement by the country’s president, Alexander Lu-kashenko, surprised the international community. According to local me-dia, the president suggested that the formation of the Eurasian Economic Union be postponed if the parties are not prepared to fully implement the agreements. Does this mean Belarus is taking a step back? Or is it Russia that is taking a step back? What does Lukashenko’s statement really mean?The Eurasian Union will be a mixture of economic, political and cultural union in which, without a doubt, Russia’s position will be preponderant. Its economic, political and cultural size is far more important that the other partners.The foundation of the Eurasian Union lies on the three constituent coun-tries. After Ukraine’s crisis, Belarus understood that a new “cold war” could result only in damages for the stability of the country. Centrifugal forces could be realised and the future of the president and the actual regime could also be threatened.On the other side, Kazakhstan has spent the past 20 years forming its own identity. It is a country rich in energy resources and boasts a pluralistic diplomatic activity. This is why the recent decision by President Vladimir Putin to grant Russian passports to citizens of former Soviet countries was perceived with concern in Astana, the capital of Kazakhstan. Kazakhstan has privileged commercial and economic ties with China. It also tried to attract Turkey to the Eurasian Union. Kazakhstan is on the front line as regards efforts to forge closer relations between the Eurasian Union and Vietnam (Vietnam is also a pioneering nation in the economic development of South East Asia and a commercial ally to China, the Unit-ed States and the European Union.)In conclusion, Kazakhstan is a measurable regional power with its own in-terests and goals - not all of them are the same with those of Russia.Returning to Lukashenko’s statement, one can make more than one hy-pothesis. It would be comforting if Putin is indeed behind it. The Crimea issue is an uncomfortable affair for everybody and the out-of-control situ-ation in East Ukraine provokes concern for everyone, including Moscow.Russia has to make a good will gesture. Could this be the possible post-ponement of the official creation of the Eurasian Union?Could it be a fear held by Lukashenko’s regime of being in the middle of a crisis situation in an area where the NATO army is operating?Could it be Kazakhstan’s manifestation of the desire of an increasingly in-dependent path? “Today we already have a range of issues on which the parties’ opinions di- verge, and the list of these issues is alarming,” Lukashenko said at the meet-ing of the Supreme Eurasian Economic Council on April 22.It will be interesting to see what will transpire in the future, given the fact that the final decisions must be made this month. Only time will tell.
Is the creation of the Eurasian Union finally here?
 
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03
ANALYSIS
NEW EUROPE
www.neweurope.eu
4-10 May, 2014
By Bernard Savage
T
he CBI’s experience this past week on Scottish independence should serve as a timely warning to Euro-pean Union leaders.  With polls showing that Tory Chan-cellor of the Exchequer George Osborne’s ‘Sermon on the Pound’ was dismissed by referendum voters as empty bluff, the U-turn by the British business lobby after declaring its active support for the ‘No’ campaign ought to serve as a real wake-up call in Brussels.Scotland’s First Minister Alex Sal-mond traveled to EU headquarters on Monday for the first time since the terms for September’s referendum were legiti-mised with UK Prime Minister David Cameron’s signature. Mr Salmond deliv-ered a keynote speech in Bruges, setting out Scotland’s place in Europe where fa-mously Margaret Thatcher made a noto-rious speech back in pre-devolutionary times.If the EU tries to block Scotland, suite simply there is no EU left, he said, send-ing a pointed message to European Com-mission President Jose Manuel Barroso,  who infamously asserted that Scotland  would find it practically “impossible” to secure independent membership of the EU following a Yes vote by millions of EU citizens, resident at the time of the refer-endum.Mr Barroso, whose remarks to the BBC were seemingly based on no sound legal advice and appear contrary to democratic principles and political logic, avoided meeting with Mr Salmond, Envi-ronment Minister Janez Potocnik instead hosting the Scottish leader.The Bruges date should spur the EU into rapid engagement with the realities of the negotiations it faces with poll after poll showing voters across Scotland ready to back independence.Eminent figures like David Edwards and Graham Avery have already repeated-ly deconstructed the assertion that Scot-land would be expelled from the club of EU member states on independence.They are not alone, and today, even as I pursue my present responsibilities covering diplomatic relations with North  Africa for the European External Action Service, I have decided it is time to speak out from within. I am not alone, with fel-low EU and related agency officials also coming forward of their own volition to speak up for Scotland in Brussels. Artists, teenagers, academics, women and business leaders now shunning the CBI have all formed their own networks arguing for Yes on September 18, and so shall we.I participated in the negotiations for the accession of 10 incoming EU states  which resulted in the first wave of en-largement 10 years ago and have worked for the EU in places such as Mauritania, Lesotho, Saudi Arabia and Sri Lanka.I have worked for the EU for nearly 23  years, which amounts to nearly half of its existence and therefore have some experi-ence of the benefits to be had via a sover-eign, democratic and peaceful renewal of politics spreading far beyond Scotland.It is time to deal openly, sensibly and pragmatically with the issues Scotland’s  Yes vote would raise.The EU is a complex web of relations that cannot simply be undone at a stroke - the EU took six years to negotiate the exit of Greenland at their request, whereas Scotland, a vibrant, wealthy future net-contributor, wishes to stay and participate as a constructive partner in the European project. Scotland’s traders and consumers can-not simply be expelled from the Single Market, or the Customs Union, some-thing that would certainly raise issues  with the World Trade Organisation.Our students cannot be told to hang up their books.Europe’s engines cannot spur growth  without our energy.Spain will not vote to remove our fish-ing grounds from the EU’s biggest and  best fleet. There will not be border posts at Car-lisle. The pound will be traded across the  border as easily as the euro taking travel-lers and businesses through France and Germany. Family members across the EU - not  just in Gartcosh or Grimsby - will main-tain the easy social union that today’s EU freedom of movement and low-cost, high-speed travel have made routine.Mr Salmond is winning the argument in an initially hesitant Scotland and he  will surely persuade Europe of the logic and benefits of the full participation in the EU of one of the continent’s oldest nations.The European Parliament elections of May 22 already look like confirming the momentum that has led dispassion-ate international intellectuals like Noam Chomsky to declare Scotland in the van-guard of a necessary process of manage-able, democratic renewal fit for 21st Cen-tury purpose. When the full negotiations get under- way involving Edinburgh, London and Brussels, this will mostly be about prac-tical institutional arrangements not dra-matic unrealistic scenarios. Who knows, perhaps even the CBI might offer a constructive voice by then...
If Scotland says Yes, so should Barroso and Europe
Senior EEAS diplomat speaks out for the EU and Scotland, others to follow 
Scots First Minister Alex Salmond, SNP MEP Candidate Tasmina Ahmed-Sheikh and SNP President Ian Hudghton Thierry Monasse.
This is understandable as populism has  become a serious concern in Europe and referendum campaigns are more known for their gimmicks and poor debate of the cen-tral issues. As the UK looks likely to hold a one on EU membership in the near future, few expect the debate to rise above, say the quality of the Jerry Springer Show.Populism and extremism is on the rise in Europe. One cause is the EU’s inability to reach out. Until a couple of years ago, of-ficials were not only haughtily dismissing concerns over the ever falling turnout in the European elections, but were saying it was a good thing – claiming lack of interest meant people were satisfied with the EU. Another is the party politics through-out Europe. The fact is that the mainstream political parties have stopped being mass membership organisations, reaching out to  business and the lobby instead of recruit-ing members and all the awkwardness they  bring to a process that thinks it knows best.This is what has separated political par-ties from the people. In this gap, is it any  wonder that populists arise, with their cures that are, as H L Mencken would say, “Simple, neat and wrong”.Europe has tried to create a greater role for citizens, but this meant spending the last decades shovelling hundreds of millions of Euros into party coffers, supposed to be used to widen democratic involvement, but in practice spent on themselves, jobs for the  boys and endless parades of visitors to Brus-sels, all with a bemused look and identical freebie bags of party tat.Combined with a communication strat-egy that seemed to be aimed at the Brussels  bubble and the glories within, it failed to achieve, like a psychic being tested and scor-ing below the results chance would provide.It failed so badly that most voters  wouldn’t recognise the political leader, or the presidents of the Council, Commission or Parliament, even after five years, or a dec-ade in office. As the gathering storm prepared to break over Europe, the political leaders acted. They said they would nominate lead candidates for the Commission presidency, debate and campaign throughout the continent.They have and all the main candidates are running a real and genuine campaign. They deserve credit for this; especially as they all knew the lack of public awareness  would be a real problem.The debates should be carried on the na-tional broadcasters, they to have a role that they should play in the democratic process, one they are neglecting.This campaign may not have caught fire or grabbed the public, but it is a start. Regu-lar debates should continue throughout the next five years, it’s starting from a shamefully small beginning, but it must continue and grow. We can only expect so much from an election that is for ordinary Europeans a contest between people they do not recog-nise or know, but if the next parliament puts the interest of the citizen above that of their few members of their political parties and narrow self interest, they can be the best yet and breathe new life into Europe and the ideals we preach.If they do not the 2019 elections will be the death knell for the European Project.
Cross purposes
(Continued from Page 01)

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