Category Archives: European Union

Soros says markets to slump with Trump, EU faces disintegration

 

Bloomberg reports: It’s tough to be gloomier than billionaire George Soros right now.

America has elected a would-be dictator as president, the European Union is disintegrating, U.K. Prime Minister Theresa May won’t last long as her nation prepares to secede from the EU, and China is poised to become an even more repressive society, the investor told Bloomberg Television’s Francine Lacqua from the World Economic Forum in Davos.

“It is unlikely that Prime Minister May is actually going to remain in power,” Soros said. She has a divided cabinet and base and Britons are in denial about the economic impact of Brexit, he said. [Continue reading…]

Watch the complete interview here.

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The rise and fall of European meritocracy

Ivan Krastev writes: … it is loyalty — namely the unconditional loyalty to ethnic, religious or social groups — that is at the heart of the appeal of Europe’s new populism. Populists promise people not to judge them based solely on their merits. They promise solidarity but not necessarily justice.

Unlike a century ago, today’s popular leaders aren’t interested in nationalizing industries. Instead, they promise to nationalize the elites. They do not promise to save the people but to stay with them. They promise to re-establish the national and ideological constraints that were removed by globalization. In short, what populists promise their voters is not competence but intimacy. They promise to re-establish the bond between the elites and the people. And many in Europe today find this promise appealing.[Continue reading…]

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Lithuania fears a Russian invasion. Now, it wants to build a border fence

The Washington Post reports: After the Soviet Union sacrificed millions of lives to help defeat Nazi Germany, it received a token of gratitude from its allies: a chunk of territory surrounding the Prussian city of Konigsberg on the Baltic Sea. Now called Kaliningrad, the isolated and highly militarized Russian enclave of nearly 1 million people is provoking renewed fears of war in Europe.

Following a Russian military buildup in Kaliningrad over the past few months, neighboring Lithuania announced on Monday that it would build an 80-mile-long border fence equipped with surveillance cameras, scheduled to be finished later this year. “The reasons are both economic to prevent smuggling and geopolitical to strengthen the E.U.’s external border,” Interior Minister Eimutis Misiunas told the Agence France-Presse news agency. The project is expected to be funded mostly by the European Union as a security investment.

The fence is the latest sign of the heightened tensions between Russia and the West along the Baltic Sea. All three of the tiny Baltic states — Estonia, Latvia and Lithuania — are members of the E.U. and NATO. They also border Russia and were all once part of the Soviet Union.

After Russia’s war in eastern Ukraine and the annexation of the Crimea, Baltic leaders fear their countries may be the next targets for potential Russian expansion. They have accused Russia of frequently violating NATO airspace, landing covert units on their territory and even practicing invasions of the three small countries. Politicians in Lithuania believe the fence could act as a deterrent against potential Russian incursions. [Continue reading…]

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Theresa May can think big all she likes. Britain’s about to find out just how small it is

Rafael Behr writes: aybe the European Union is God’s way of teaching the British about Belgium. Specifically, it is a mechanism that forces UK politicians to confront the idea that Belgium matters. And not just Belgium but countries like it – the small countries.

This concept doesn’t come naturally to a nation that is neurotically worried about its greatness. Naming famous Belgians is a parlour game for British foreign secretaries. Cultivating small-state alliances feels like something less ambitious countries do. The UK struggles to see itself in perspective because it is richer and more powerful than most countries, yet so much less influential than it used to be.

We are not alone in suffering from post-imperial angst, but we have tied ourselves in uniquely existential knots where relations with our European neighbours are concerned. Theresa May understands the deep cultural and psychological attraction of Brexit as a great unpicking – a disentanglement from continental ties, the benefits of which feel obscure to much of the public.

Therein lies the emotional cleverness of the prime minister’s formulation of a “clean Brexit”, as laid out in her speech on Tuesday. Pro-Europeans probe the agonising detail of the negotiations to come without recruiting any more of the public to share their pain. If anything, the balance of opinion is swinging the other way. The prime minister’s message was tailored to the large segment of voters, including many ex-remainers, who see the big in/out question as settled and say they want the job done without any more palaver.

The effectiveness of May’s account of future relations with the EU – no “partial membership”, no messy overlaps with the past – is its simplicity. Her Europhile critics want to talk only about complexity, which is the least catchy tune in politics. May paints Britain with the crispness of its outline restored, its place in the world made clearer by the erasure of all those fiddly lines that connect London to Brussels and then to Paris, Berlin, Ljubljana, Tallinn and the rest. She offers liberation from the need to care about Belgians.

That obligation endures whether the prime minister wants it or not. Small states will have a say in the divorce contract terms that Britain signs with the EU. Their voice will be heard in the negotiations and in chambers where the deal must be ratified. It was opposition in Belgium’s Wallonian regional parliament that nearly scuppered a Canada-EU free trade agreement last year. [Continue reading…]

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Donald Trump threatens the existence of the Western alliance

Alex Massie writes: It is, remarkably, no exaggeration to say that almost everyone in Europe awaits the presidency of Donald Trump with a sense of dread. Almost everyone, that is, save for the resurgent parties of the populist far-right who see, in Trump, an example they dearly wish to emulate.

The European mainstream, however, shrinks from Trump as it has never shrunk from any previous American president. No, not Ronald Reagan and no, not even George W Bush either. Trump has not even taken office and he is already the most dangerous U.S. president in living memory. Perhaps, even, of all time.

Whatever else they were, Reagan and Bush were both men of some political experience. Trump, as he told the Times of London and Germany’s Bild, is “not a politician” and that is precisely the point. The generous assessment of the president-elect’s potential allows that his less than conventional approach to international affairs ensures that America’s foes will not easily be able to fathom or predict his intentions. [Continue reading…]

The Associated Press reports: With eager anticipation, the Kremlin is counting the days to Donald Trump’s inauguration and venting its anger at Barack Obama’s outgoing administration, no holds barred.

Careful not to hurt chances for a thaw in U.S.-Russia relations, President Vladimir Putin and other Russian officials have deferred questions about their plans for future contacts with Trump and any agenda for those talks until he takes office on Friday.

Trump’s open admiration of Putin has brought wide expectations of improved Moscow-Washington relations, but Trump has not articulated a clear Russia policy. His Cabinet nominees include both a retired general with a hawkish stance on Russia and an oil executive who has done extensive business in Russia.

At the same time, Russian officials are blasting the outgoing U.S. administration in distinctly undiplomatic language, dropping all decorum after Obama hit Moscow with more sanctions in his final weeks in office.

Moscow calls Obama’s team a “bunch of geopolitical losers” engaged in a last-ditch effort to inflict the maximum possible damage to U.S.-Russia ties to make it more difficult for Trump to mend the rift. [Continue reading…]

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‘Europe’s fate is in our hands’: Angela Merkel’s defiant reply to Trump

The Guardian reports: Angela Merkel has responded curtly but defiantly after Donald Trump cast further doubt on his commitment to Nato and gave strong hints that he would not support EU cohesion once in office.

“We Europeans have our fate in our own hands,” the German chancellor said after the publication of the US president-elect’s interviews with The Times and Bild. “He has presented his positions once more. They have been known for a while. My positions are also known.”

In the Times interview, Trump complained that Nato had become “obsolete” because it “hadn’t taken care of terror” – a comment later welcomed by the Kremlin. He also suggested that other European countries would follow in Britain’s footsteps and leave the EU.

Germany’s foreign minister, Frank-Walter Steinmeier, said the criticism of Nato had caused concern in the political and military alliance. “I’ve spoken today not only with EU foreign ministers but Nato foreign ministers as well and can report that the signals are that there’s been no easing of tensions,” he said. [Continue reading…]

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Putin’s puppet: Trump says NATO is ‘obsolete,’ doesn’t care if EU breaks up, calls refugees ‘illegals,’ and wants ‘good deals with Russia’

Bloomberg reports: Donald Trump called NATO obsolete, predicted that other European Union members would follow the U.K. in leaving the bloc, and threatened BMW with import duties over a planned plant in Mexico, according to two European newspapers which conducted a joint interview with the president-elect.

Trump, in an hourlong discussion with Germany’s Bild and the Times of London published on Sunday, signaled a major shift in trans-Atlantic relations, including an interest in lifting U.S. sanctions on Russia as part of a nuclear weapons reduction deal.

Quoted in German by Bild from a conversation held in English, Trump predicted that Britain’s exit from the EU will be a success and portrayed the EU as an instrument of German domination designed with the purpose of beating the U.S. in international trade. For that reason, Trump said, he’s fairly indifferent to whether the EU stays together, according to Bild.

The Times quoted Trump as saying he was interested in making “good deals with Russia,” floating the idea of lifting sanctions that were imposed as the U.S. has sought to punish the Kremlin for its annexation of Crimea in 2014 and military support of the Syrian government.

“They have sanctions on Russia — let’s see if we can make some good deals with Russia,’’ Trump said, according to the Times. “For one thing, I think nuclear weapons should be way down and reduced very substantially, that’s part of it.’’

Trump’s reported comments leave little doubt that he’ll stick to campaign positions and may in some cases upend decades of U.S. foreign policy, putting him fundamentally at odds with German Chancellor Angela Merkel on issues from free trade and refugees to security and the EU’s role in the world. [Continue reading…]

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Obama’s envoy to Brussels warns Trump against the ‘lunacy’ of backing an EU break-up

Reuters reports: Barack Obama’s envoy to Brussels warned Donald Trump against the “lunacy” of backing an EU break-up, saying Brexit campaigner Nigel Farage may have given the incoming U.S. president a false impression that more countries might follow Britain out of the bloc.

Anthony Gardner, a banker who has run U.S. relations with the European Union for three years, made the frank comments on Friday in a final news conference a week before Trump has ordered all Obama appointees to quit.

Gardner condemned the move as an unprecedented “guillotine exit” that had disrupted public servants’ lives.

Referring to Trump’s welcome for the British vote to leave the EU and the apparent influence of Farage in the Trump camp, Gardner said: “For us to be the cheerleaders of Brexit and to be encouraging Brexit Mark 2, Mark 3, is the height of folly.”

Gardner said Farage, an EU lawmaker and Trump ally, had written to him recently requesting a meeting. The U.S. envoy said Farage’s views were the “polar opposite” of his own and he thought Farage had misled Trump’s transition team on the state of the EU.

Describing calls to EU institutions from Trump’s aides in recent weeks, Gardner said: “That was the one question that was asked – basically, ‘What’s the next country to leave?’. Which is kind of suggesting that the place is about to fall apart.”

“It’s just reflective of the general perception, a misperception, a perception that Nigel Farage is presumably disseminating in Washington and it’s a caricature.”

He said it would be “fundamentally flawed” for the United States to ignore the EU as “dysfunctional” and instead focus on key allies like Britain and Germany.

“We should not depart from 50 years of foreign policy with regard to the EU,” he said. “We should not become the cheerleaders for Brexit, particularly if Brexit appears more likely to be a hard, disorderly unmanaged Brexit.”

“A hard Brexit or a fragmentation of the European market would be very bad news for American business,” he added. [Continue reading…]

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Germany hits back at Trump criticism of refugee policy and BMW tariff threat

The Guardian reports: Berlin has mounted a staunch defence of its policies after Donald Trump criticised the German chancellor, Angela Merkel, for her stance during the refugee crisis and threatened a 35% tariff on BMW cars imported into the US.

Germany’s deputy chancellor and minister for the economy, Sigmar Gabriel, said on Monday morning that a tax on German imports would lead to a “bad awakening” among US carmakers since they were reliant on transatlantic supply chains.

“I believe BMW’s biggest factory is already in the US, in Spartanburg [South Carolina],” Gabriel, leader of the centre-left Social Democratic party, told the Bild newspaper in a video interview.

“The US car industry would have a bad awakening if all the supply parts that aren’t being built in the US were to suddenly come with a 35% tariff. I believe it would make the US car industry weaker, worse and above all more expensive. I would wait and see what the Congress has to say about that, which is mostly full of people who want the opposite of Trump.” [Continue reading…]

In 2014, Automotive News reported from Spartanburg: BMW will invest $1 billion in its factory here by 2016 to expand capacity by 100,000 units and add production of a fifth crossover, the X7 — making the plant its biggest worldwide.

Norbert Reithofer, CEO of BMW AG, said Spartanburg’s annual production will top that of BMW’s Dingolfing, Germany, plant, which can build 350,000 vehicles a year.

BMW’s current capacity has just been boosted to 350,000 units. Last year, the plant produced 297,326 vehicles.

Reithofer said building 450,000 vehicles a year will mean the equivalent of “a whole new plant” of output beyond last year’s total.

“This is the fifth expansion since production began 20 years ago and represents another major investment,” said Manfred Erlacher, president of BMW Manufacturing Co.

The plant has begun building the new X4 crossover, which is to go on sale in June in the United States. Spartanburg also produces the X3, X5 and X6.

Harald Krueger, BMW board member for production, said the group has 28 factories in 13 countries. More than 70 percent of the plant’s production is exported to more than 140 countries worldwide, he said.

“And we are really proud that this plant annually exports vehicles valuing over $7.5 billion — which, according to the U.S. Department of Commerce, makes BMW the largest U.S. vehicle exporter by value to non-NAFTA countries. ‘Freude am Fahren’ — made in America,” Krueger said. [Continue reading…]

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Watch out, Europe. Germany is top of Russian hackers’ list

Natalie Nougayrède writes: One year ago in Berlin, Lisa F, a 13-year-old German-Russian girl, disappeared for 30 hours. When she returned to her parents, she claimed she had been kidnapped and raped by “Arab” men. This was a lie – as she later admitted. She had fallen out with her parents and invented the whole story. But that did little to stop the episode from becoming the centrepiece of a whirlwind Russian disinformation campaign aimed at destabilising Angela Merkel and German institutions.

Russian state media and pro-Russian websites in Germany immediately swirled with reports. Merkel was already under pressure for her open-door policy on refugees. Now German far-right groups and representatives of Germany’s ethnic Russian community held demonstrations. The Russian foreign minister, Sergey Lavrov, described Lisa (a dual German-Russian citizen) as “our girl” and accused German authorities of a cover-up and “whitewashing reality to make it politically correct”.

A diplomatic spat ensued, with the German foreign minister accusing Russia of “political propaganda”. Berlin officials struggled to counter the Russian campaign. But Moscow’s overt meddling in Germany’s domestic politics seeped into the public consciousness – for a while, at least.

Fast-forward to January 2017. The fallout from the Trump-Russia dossier has now placed Vladimir Putin and his power structure at the centre of American politics. For Europeans, a question arises: what could this all mean for the old continent, as it approaches key elections? This year, voting will take place in France, the Netherlands and in Germany. Remembering the Lisa scandal is important, for it says something about what may lie ahead.

Now that Russia’s covert activities are being so intensely discussed in the US, it is high time Europe placed as much attention on what it might, in turn, be confronted with – and to prepare itself. [Continue reading…]

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Is Europe disintegrating?

Timothy Garton Ash writes: Had I been cryogenically frozen in January 2005, I would have gone to my provisional rest as a happy European. With the enlargement of the European Union to include many post-Communist democracies, the 1989 “return to Europe” dream of my Central European friends was coming true. EU member states had agreed on a constitutional treaty, loosely referred to as the European constitution. The unprecedented project of European monetary union seemed to be confounding the deep skepticism that I and many others had earlier expressed. It was amazing to travel without hindrance from one end of the continent to another, with no border controls inside the expanding zone of states adhering to the Schengen Agreement and with a single currency in your pocket for use throughout the eurozone.

Madrid, Warsaw, Athens, Lisbon, and Dublin felt as if they were bathed in sunlight from windows newly opened in ancient dark palaces. The periphery of Europe was apparently converging with the continent’s historic core around Germany, the Benelux countries, France, and northern Italy. Young Spaniards, Greeks, Poles, and Portuguese spoke optimistically about the new chances offered them by “Europe.” Even notoriously euroskeptical Britain was embracing its European future under Prime Minister Tony Blair. And then there was the avowedly pro-European Orange Revolution in Ukraine. As I watched peaceful protesters in Kiev waving the European flag, with its yellow stars on a blue background, I could inwardly intone the European anthem — Beethoven’s music for the “Ode to Joy.”

Cryogenically reanimated in January 2017, I would immediately have died again from shock. For now there is crisis and disintegration wherever I look: the eurozone is chronically dysfunctional, sunlit Athens is plunged into misery, young Spaniards with doctorates are reduced to serving as waiters in London or Berlin, the children of Portuguese friends seek work in Brazil and Angola, and the periphery of Europe is diverging from its core. There is no European constitution, since that was rejected in referendums in France and the Netherlands later in 2005. The glorious freedom of movement for young Poles and other Central and Eastern Europeans has now contributed substantially to a shocking referendum vote by my own country, Britain, to leave the EU altogether. And Brexit brings with it the prospect of being stripped of my European citizenship on the thirtieth anniversary of 1989.

A young liberal hero of 1989, Viktor Orbán, is now a nationalist populist leading Hungary toward authoritarianism and explicitly praising the “illiberal” example of Xi Jinping’s China and Vladimir Putin’s Russia. Border controls have been reimposed between Schengen countries (“temporarily,” of course), in response to the flood of refugees from Syria, Iraq, and Afghanistan — areas where our so-called European foreign policy has proved little more than waffle. To cap it all, a brave attempt to complete the unfinished business of the Orange Revolution in Ukraine has been rewarded with Russia’s unilateral armed seizure of Crimea and ongoing violent intervention in eastern Ukraine — actions recalling Europe in 1939 rather than 1989. Ichabod! Ichabod! The glory has departed from our common European home. [Continue reading…]

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How we fool ourselves on Russia

William J Burns (former U.S. Ambassador to Russia and a former Foreign Service Officer who has been called “the quintessential diplomat” and who served in five administrations) writes: In the quarter-century since the end of the Cold War, profound grievances, misperceptions and disappointments have often defined the relationship between the United States and Russia. I lived through this turbulence during my years as a diplomat in Moscow, navigating the curious mix of hope and humiliation that I remember so vividly in the Russia of Boris N. Yeltsin, and the pugnacity and raw ambition of Vladimir V. Putin’s Kremlin. And I lived through it in Washington, serving both Republican and Democratic administrations.

There have been more than enough illusions on both sides. The United States has oscillated between visions of an enduring partnership with Moscow and dismissing it as a sulking regional power in terminal decline. Russia has moved between notions of a strategic partnership with the United States and a later, deeper desire to upend the current international order, where a dominant United States consigns Russia to a subordinate role.

The reality is that our relationship with Russia will remain competitive, and often adversarial, for the foreseeable future. At its core is a fundamental disconnect in outlook and about each other’s role in the world.

It is tempting to think that personal rapport can bridge this disconnect and that the art of the deal can unlock a grand bargain. That is a foolish starting point for sensible policy. It would be especially foolish to think that Russia’s deeply troubling interference in our election can or should be played down, however inconvenient.

President Putin’s aggressive election meddling, like his broader foreign policy, has at least two motivating factors. The first is his conviction that the surest path to restoring Russia as a great power comes at the expense of an American-led order. He wants Russia unconstrained by Western values and institutions, free to pursue a sphere of influence.

The second motivating factor is closely connected to the first. The legitimacy of Mr. Putin’s system of repressive domestic control depends on the existence of external threats. Surfing on high oil prices, he used to be able to bolster his social contract with the Russian people through rising standards of living. That was clear in the boomtown Moscow I knew as the American ambassador a decade ago, full of the promise of a rising middle class and the consumption of an elite convinced that anything worth doing was worth overdoing. But Mr. Putin has lost that card in a world of lower energy prices and Western sanctions, and with a one-dimensional economy in which real reform is trumped by the imperative of political control and the corruption that lubricates it.

The ultimate realist, Mr. Putin understands Russia’s relative weakness, but regularly demonstrates that declining powers can be at least as disruptive as rising powers. He sees a target-rich environment all around him.

If he can’t easily build Russia up, he can take the United States down a few pegs, with his characteristic tactical agility and willingness to play rough and take risks. If he can’t have a deferential government in Kiev, he can grab Crimea and try to engineer the next best thing, a dysfunctional Ukraine. If he can’t abide the risk of regime upheaval in Syria, he can flex Russia’s military muscle, emasculate the West, and preserve Bashar al-Assad atop the rubble of Aleppo. If he can’t directly intimidate the European Union, he can accelerate its unraveling by supporting anti-Union nationalists and exploiting the wave of migration spawned in part by his own brutality. Wherever he can, he exposes the seeming hypocrisy and fecklessness of Western democracies, blurring the line between fact and fiction.

So what to do? Russia is still too big, proud and influential to ignore and still the only nuclear power comparable to the United States. It remains a major player on problems from the Arctic to Iran and North Korea. We need to focus on the critical before we test the desirable. The first step is to sustain, and if necessary amplify, the actions taken by the Obama administration in response to Russian hacking. Russia challenged the integrity of our democratic system, and Europe’s 2017 electoral landscape is the next battlefield.

A second step is to reassure our European allies of our absolute commitment to NATO. American politicians tell one another to “remember your base,” and that’s what should guide policy toward Russia. Our network of allies is not a millstone around America’s neck, but a powerful asset that sets us apart.

A third step is to stay sharply focused on Ukraine, a country whose fate will be critical to the future of Europe, and Russia, over the next generation. This is not about NATO or European Union membership, both distant aspirations. It is about helping Ukrainian leaders build the successful political system that Russia seeks to subvert.

Finally, we should be wary of superficially appealing notions like a common war on Islamic extremism or a common effort to “contain” China. Russia’s bloody role in Syria makes the terrorist threat far worse and despite long-term concerns about a rising China, Mr. Putin has little inclination to sacrifice a relationship with Beijing.

I’ve learned a few lessons during my diplomatic career, often the hard way. I learned to respect Russians and their history and vitality. I learned that it rarely pays to neglect or underestimate Russia, or display gratuitous disrespect. But I also learned that firmness and vigilance, and a healthy grasp of the limits of the possible, are the best way to deal with the combustible combination of grievance and insecurity that Vladimir Putin embodies. I’ve learned that we have a much better hand to play with Mr. Putin than he does with us. If we play it methodically, confident in our enduring strengths, and unapologetic about our values, we can eventually build a more stable relationship, without illusions.

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How Russia is spreading fake news and forged docs in Sweden

The Local reports: Sweden’s most respected foreign policy institute has accused Russia of using underhand methods, including fake news, counterfeit documents, and other disinformation, to influence Swedish decision-making.

The report by Martin Kragh, a Russia expert at the Swedish Institute of International Affairs, is the first empirical study detailing Russia’s use of ‘active measures’ in its information war against Sweden, which is largely directed at steering the country away from joining Nato.

“The study lies within a subject area which a lot of people are discussing right now, and we want to contribute to that discussion,” Kragh told Sweden’s Dagens Nyheter newspaper.

“It is completely normal for a foreign minister to say that some development concerns them, or is positive, but what we see as a problem is when illegitimate methods are used to try to influence opinion or decision-making in Sweden.”

“It may not necessarily be politically effective to spread false documents, but we believe it demonstrates an intention to influence decision-making and that in itself is a reason to try to document and understand the ways in which it is carried out.”

In the study, which is published in the Journal of Strategic Studies, Kragh argues that over the past few years, Russia has increasingly been returning to what the KGB historically referred to as “active measures” to impact public opinion in Sweden.

According the report, “active measures” are designed “to hamper the target country’s ability to generate public support in pursuing its policies”.

Such measures have included the Russian government deploying troll armies on Swedish Twitter, launching its own Swedish-language version of the news site Sputnik, and spreading fake documents, 26 of which Kragh has identified. [Continue reading…]

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With Trump and Putin, Europe is now between a rock and a hard place

Natalie Nougayrède writes: European capitals have been busy sending discreet emissaries to New York to sound out Donald Trump’s intentions. Angela Merkel, who on 9 November delivered a blunt warning to the US president-elect, sent her close adviser Christoph Heusgen to meet General Michael Flynn, the new national security adviser, in late December. François Hollande, who commented during Trump’s campaign that it made him want to “throw up”, sent his diplomatic adviser, Jacques Audibert. Now Theresa May has announced that she will travel to Washington to meet Trump directly in the spring. But European leaders are still at a loss as to what to expect from the man – hardly surprising when major foreign policy pronouncements are made via Twitter. “We’re in another world” one German official recently told me, after pointing to how closely Merkel had worked with Obama on Ukraine and other issues.

Everything that is mind-boggling and distressing about Trump for liberal Americans is even more so for democratic Europeans, and that’s because of the angst attached to geopolitics. With Trump about to settle in the White House and Putin gloating in the Kremlin, two illiberals who like zero-sum games, Europe finds itself dramatically caught between a rock and a hard place.

The rock is Trump’s propensity to disparage alliances and show sympathy for illiberal European politicians. The hard place is Putin’s expectation that more, not fewer, opportunities lie ahead to further his foreign policy goals – not least a rewriting of Europe’s architecture, to Russia’s benefit. Noises in central Europe that Trump will be keenly interested in the region because his wife was born in Slovenia smack of either irony or despair.

For Europe, two dangers arise. The first is that the principles on which the transatlantic link was founded in the 1949 North Atlantic Treaty, including the pledge to uphold “democracy, individual liberty and the rule of law”, might head for the dustbin. The second is that Europe may witness a return to spheres of influence, something that has historically plagued it, and essentially amounts to saying this: might makes right, and the strong do what they can while the weak suffer what they must. Not much seems to separate Trump from Putin on that account.

If this is the new normal, expect an unseemly European scramble, with governments rushing to try to secure their own interests whatever the cost to neighbours and the continent’s future. Putin will be waiting with open arms for those who, whether out of admiration or fear, might want to compensate American strategic withdrawal by seeking lofty arrangements with the great eastern neighbour. Peeling Europe away from the US is an objective Putin has long made clear. A strong, coordinated Europe is in Putin’s interest only if it is ideologically favourable to him – with cultural nativists such as Marine Le Pen, Geert Wilders and Viktor Orbán calling the shots. If liberal democracy can resist, however, especially in France and Germany, then he will continue working to achieve a weak and fractured Europe. [Continue reading…]

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Italy’s Five Star Movement part of growing club of Putin sympathisers in West

The Guardian reports: Ten years ago, in the wake of the murder of the leading Russian journalist Anna Politkovskaya, a popular comedian-turned-blogger in Italy named Beppe Grillo urged tens of thousands of his readers to go out and buy Putin’s Russia, her searing exposé of corruption under the leadership of Vladimir Putin.

“Russia is a democracy based on the export of gas and oil. If they didn’t export that, they would go back to being the good old dictatorship of once upon a time,” Grillo wrote in a mournful 2006 post about the journalist’s murder.

But today, Grillo’s position on Russia has radically changed. He is now part of a growing club of Kremlin sympathisers in the west – an important shift given that the comedian has become one of the most powerful political leaders in Italy and his Five Star Movement (M5S), the anti-establishment party he created in 2009, is a top contender to win the next Italian election.

Some of Grillo’s lieutenants in the Five Star Movement are vocal supporters of Putin’s policies, including in Syria, where the party’s top spokesman on foreign policy, Manlio Di Stefano, has praised the shelling of Aleppo as a “liberation” of the city. [Continue reading…]

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U.S. lending support to Baltic states fearing Russia

The New York Times reports: Dozens of United States Special Operations forces are now in the Baltics to bolster the training and resolve of troops who are confronting a looming threat from Russia, and to enhance the Americans’ ability to detect Moscow’s shadowy efforts to destabilize the former Soviet republics.

“They’re scared to death of Russia,” Gen. Raymond T. Thomas, the head of the Pentagon’s Special Operations Command, who visited here recently, said of the tiny militaries of Latvia, Lithuania and Estonia. “They are very open about that. They’re desperate for our leadership.”

As a result, General Thomas said, American commandos now have a “persistent” presence here with Baltic special operations troops, after forging close ties with them over the past decade while fighting together in Iraq and Afghanistan. The Americans bring sophisticated surveillance technology and broad sources of intelligence. The Baltic partners have a deep understanding of conventional Russian military might as well as Moscow’s increasing use of cyberwarfare, information subterfuge and other means less than all-out war to weaken the Western-backed governments. [Continue reading…]

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‘America first’ and global conflict next

Nouriel Roubini writes: Donald Trump’s election as President of the United States does not just represent a mounting populist backlash against globalization. It may also portend the end of Pax Americana – the international order of free exchange and shared security that the US and its allies built after World War II.
That US-led global order has enabled 70 years of prosperity. It rests on market-oriented regimes of trade liberalization, increased capital mobility, and appropriate social-welfare policies; backed by American security guarantees in Europe, the Middle East, and Asia, through NATO and various other alliances.

Trump, however, may pursue populist, anti-globalization, and protectionist policies that hinder trade and restrict the movement of labor and capital. And he has cast doubt on existing US security guarantees by suggesting that he will force America’s allies to pay for more of their own defense. If Trump is serious about putting “America first,” his administration will shift US geopolitical strategy toward isolationism and unilateralism, pursuing only the national interests of the homeland.

When the US pursued similar policies in the 1920s and 1930s, it helped sow the seeds of World War II. Protectionism – starting with the Smoot-Hawley Tariff, which affected thousands of imported goods – triggered retaliatory trade and currency wars that worsened the Great Depression. More important, American isolationism – based on a false belief that the US was safely protected by two oceans – allowed Nazi Germany and Imperial Japan to wage aggressive war and threaten the entire world. With the attack on Pearl Harbor in December 1941, the US was finally forced to take its head out of the sand.

Today, too, a US turn to isolationism and the pursuit of strictly US national interests may eventually lead to a global conflict. Even without the prospect of American disengagement from Europe, the European Union and the eurozone already appear to be disintegrating, particularly in the wake of the United Kingdom’s June Brexit vote and Italy’s failed referendum on constitutional reforms in December. Moreover, in 2017, extreme anti-Europe left- or right-wing populist parties could come to power in France and Italy, and possibly in other parts of Europe. [Continue reading…]

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A crisis of liberal democracy? More of liberalism than of democracy

Kenan Malik writes: Welcome to 2017. It will be just like 2016. Only more so. This will be the year in which Donald Trump formally enters the White House, and Theresa May (probably) begins Brexit negotiations. It will be the year in which elections in Germany, the Netherlands and France, and possibly Italy, are likely to see rightwing populists gain ground, even triumph.

In the Netherlands, Geert Wilders’s anti-Muslim, anti-immigration Party for Freedom(PVV) leads the polls and may help form the government in March. In France, in May, Marine Le Pen of the far-right Front National should reach at least the second-round run-off in the presidential election and may even win. In Germany, Angela Merkel could hang on as chancellor after September’s vote, but the far-right AfD will almost certainly have dozens of Bundestag seats.

And, so, 2017 will also be the year when fears for the future of liberal democracy will reach a new pitch. Such fears will, however, be only half-justified. Democracy is in rude health. It is liberalism that is in trouble.

Democracy does not require that the “right” result be delivered every time. The whole point of the democratic process is that it is unpredictable. The reason we need democracy is that the question of what are “right” policies or who is the “right” candidate is often fiercely contested. Donald Trump or Le Pen may be reactionary, and their policies may help unpick the threads of liberal tolerance, but their success reveals a problem with politics, not democracy. [Continue reading…]

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