In the light of the frequent disagreements witnessed nowadays in the transatlantic Western community as concerns the NATO Alliance and its relevancy, especially as it concerns Russia’s intentions toward the Baltic countries, the question arises: does the idea of the West include a community of values and if so which are they?
Could it be that the disagreements arise out of ignorance as to what those common values might be? One of them is undoubtedly the idea of democracy which goes back to the ancient Greeks. Why then the vehement disagreements and misunderstandings? Let us briefly explore the issue searching for historical data, theory and practice.
Geographically speaking it cannot be asserted that Europe as a whole has always been or is now a community of values. During the Cold War any nation in Europe East of the Iron Curtain was designated at East. Those included nations who formerly were historically part of the West; countries such as the three Baltic states, Poland the Czech Republic, Slovakia, Hungary. After the Cold War seven of the eight Eastern European countries would join the EU. Those on the West side of the Iron Curtain were designated as the West. But some, such as Turkey and Greece were not part of the historical West which in Medieval times comprised the land of the Holy Roman Empire of Charlemagne. Most of them were democratic and were members of the Atlantic Alliance named NATO. So, at first glance it would appear that democracy was the common glue or the common value. But things are not that simple.
What comprises the historical West? It was the part of Europe that throughout the Middle Ages looked to Rome as its spiritual center. That is to say, the old West was the part of Europe that belonged to the Western church. Only that part of Europe, knew of pre-modern forms of power separation, that is to say, the separation of spiritual and temporal power. That part of Europe also experienced, the late medieval and early modern emancipatory movements dubbed the Renaissance and the Reformation, humanism and the Enlightenment. The domain of the Eastern church, that of Byzantium and, later, of Moscow, followed a very different trajectory. It experienced the subordination of spiritual to temporal power and did not know the system of reciprocal fealty between lords and vassals known as European feudalism. It knew nothing of the Investiture Controversy, of the revolution of of Gregory VII as the first European revolugion resulting eventually in the victory of the temporal over the spiritual power which took place in Western Europe. This dualism of temporal and spiritual power may be considered the beginning of the West’s spirt of individualism, it planted the seeds of freedom which may be considered the West’s distinguishing characteristic. That distinction, to be sure, is already in nuce in Christ’s reply to the Pharisees: “Render unto Caesar the things that are Caesar’s and to God the things that are God’s.” That, if anything is, is a rejection of theocracy and the announcement of secularization, or the refusal to concede to religious authority secular powers, considered autonomous. Neverthless, a secular brotherhood without any kind of fatherhood is also incongruous. So, it appears that religion, or more specifically Christianity who posits a God who is our father, is also a glue needed to give substance to the concepts of brotherhood, liberty, and equality. That glue needs to be analyzed, independent of one’s religious beliefs.
Montesquieu, a French Enlightenment thinker, argued that moderate government was far more compatible with Christianity, while a despotic government was more compatible with Islam. “It is a misfortune to human nature when religion is given by a conqueror,” affirmed Montesquieu. Like Christ Montesquieu appeals to the original separation between the spheres of God and the emperor: “We ought not to decide by divine laws what should be decided by human laws; nor determine by human what should be determined by divine laws.” Leaders must be measured by such a yardstick.
The modern separation of legislature, executive, and judicial powers developed by Montesquieu in The Spirit of Laws continued the process that began with the pre-modern separation of spiritual and temporal, and princely and estate powers. Montesquieu was in fact the first classical thinker to grant the judicial branch the status of an autonomous “third” power. He did not live to see the birth of the country in which his views on the separation of powers would appear: the United States of America. In the Federalist Papers, a series of articles by Alexander Hamilton, John Jay, and James Madison drafted at the Philadelphia Convention in 1787, Montesquieu was by far the most cited author. To be sure Montesquieu himself had drawn from the ancient Greek historian Polybius, of the second century- B.C. who had promoted the concept of a mixed constitution. Polybius saw in the Roman Republic an ideal combination of monarchic, aristocratic, and democratic virtues—a combination, so he believed, that shielded Rome from the dangers inherent in the pure forms of monarchy as well as pure forms of aristocracy or democracy. This idea would be called in the US “checks and balances,” as first mentioned by John Adams in 1787 in the preface to his A Defense of the Contitutions of Government of the United States; that is to say, all parts of the government would keep an eye on each other to prevent abuses and corruption.
The Constitution was followed by the first ten amendments, the Bill of Rights, which appeared in 1791. Hence the claim of the United States that it is the birth nation of individual rights. The Virginia Declaration of Rights from June 12, 1776, began its catalogue of basic rights, the first comprehensive catalogue of its kind, with these words: “That all men are by nature equally free and independent, and have certain inherent rights, of which, when they enter into a state of society, they cannot, by any compact, deprive or divest their posterity; namely, the enjoyment of life and liberty, with the means of acquiring and possessing property, and pursuing and obtaining happiness and safety.” Three weeks later, on July 4, 1776, the delegates of the Constitutional Congress approved the Declaration of Independence.
The declaration combines a concept of human rights with a consequent principle of popular sovereignty to form a single but momentous sentence: “We hold these truths to be self-evident, that all men are created equal, that they are endowed, by their Creator, with certain un-alienable Rights, that among these are Life, Liberty, and the pursuit of Happiness.” With this sentence, the Declaration of Independence brought together millennia worth of experience and insights, making self-evident truths into a project to change the
world and the American Revolution into history’s first modern revolution. Like John Adams, Benjamin Franklin, and many of the other signers, Jefferson drew on an intellectual tradition shared by natural rights philosophers since the Stoics, by the teachings of more recent thinkers such as Locke and Montesquieu, and by the general Americans’ ideas about the necessity of religious and political tolerance. But the question persists: why had the idea of inalienable rights arisen in America at the level of constitutional articles? Could religious freedom as a human inalienable right be the roots of the idea rather than the French Revolution? Here too things are not so simple as invoking the French Revolution as the beginning of individual rights.
To be sure, most of the fathers of the US Declaration of Independence were not pious observing Christians like the Puritans but they believed in the likelihood of a God, or some higher being, capable of reward and punishment, though not all of them believed in the divinity of Jesus or in the Trinity. Properly speaking they were deists and not opposed in principle to the ideas of the champions of religious freedom such Roger Williams and William Penn. What obtained in America was something unique: a sort of marriage between the secular Enlightenment and extensive reading of the classics on constitutional law and religious freedom. This was indeed uniquely American, not French, not European. Consequently the Declaration of Independence proclaimed that inalienable rights are bestowed on individuals “by their Creator,” thus expressing more than a mere credo that enlightened deists and devout Christians could agree on. For indeed the very idea of an individual dignity common to all originates from the Judeo-Christian belief in one God who created human beings in His image and who loves all as his children.
Historically, therefore, the declaration of the equality of all individuals before the law presupposes the equality of all individuals before God. There is indeed an historical link between Christian religion and the Western idea of freedom which could develop because there existed in the historical West a tradition separating spiritual and worldly temporal power looking askance at state religions. The American theologian Reinhold Niebuhr, wrote in his 1952 The Irony of American History that the two major religious and moral traditions that shaped early American life—the Calvinism of New England (Puritanism) and the deism of Virginia—arrived at conspicuously similar conclusions about the meaning of America’s national character and the intended purpose of the United States: “Whether our nation interprets its spiritual heritage through Massachusetts or Virginia we came into existence with the sense of being a ‘separated’ nation, which God was using to make a new beginning for mankind.” A new beginning for mankind, indeed it must felt that way in the Athens of four centuries BC.
This identification of the roots of the rights of individual citizens in Puritanism and Deism contradicted of course France’s assertion that it alone was the original pioneer of individual rights. Indeed, it is historically undeniable that the American declarations of rights passed by Virginia and other former British colonies in North America had done much to shape the Declaration of the Rights of Man and of the Citizen adopted by the National Constituent Assembly on August 26, 1789 during the French Revolution. The idea of passing such a declaration before writing a constitution was first proposed on August 11 by Marquis de Lafayette, who had fought for the American revolution, with the active assistance of Thomas Jefferson who was at the time US ambassador to France.
During his trip to America at the beginning of the 1830s, Alexis de Tocqueville was surprised to observe that in the United States two otherwise sharply opposed elements had interpenetrated and connected with one another in a marvelous way: the spirit of religion and the spirit of freedom. Even today, parts of American society tend to derive political freedom from religion, underestimating the contributions of the Enlightenment to human rights, the constitutional state, and democracy. In Europe, by contrast, there is a tendency to neglect the fact that Western values and Enlightenment ideas are embedded in their own tradition, one depending just as much on Jewish and Christian values as on ancient ones. Both views are one-sided and require correction: they must recall what connects the “old” European West with its “new” American counterpart. This may go a long way in explaining the current misunderstandings mentioned at the beginning of this essay. Knowledge of the historical record may go a long way in correcting those biases.
After the Declaration of Independence, over four decades elapsed before the United States as a whole became comfortable with the concept of democracy, no longer perceiving it to contradict their deliberately chosen representative system. Political progress seemed assured but slavery, for its part, existed for nine decades of US history and its eradication in the south required nothing less than a bloody civil war in 1860. It took another hundred years before an energetic and successful movement (The Civil Rights movement) arose against the racial discrimination of the slaves’ descendents.
As mentioned, Europe tends to neglect that Western ideas depend on Jewish and Christian values. There is an unfortunate tendency to forget what connects the “old” European West with its “new” American counterpart. The Declarations of the Rights of Man of the late 18th century were the result of transatlantic collaboration. Together, both sides laid the groundwork for the political project of the West. To forget that fact is to end up in anti-Americanism which is usually a caricature of that the US is all about, or anti-Europeanism, disparagingly dubbed “Old Europe” at times.
The American revolution was modern history’s first revolution but it was not connected to the defeat of any particular class and so there were never any antidemocratic sentiments after independence. The revolution was never against the principles of traditional English constitutional law, but rather it was a protest against their infringement by England. That was not the case with the French Revolution which because of the excesses of the Jacobins produced an anti-revolutionary right-wing. In Great Britain, it took 30 years for a parliamentary monarchy to establish itself after the Glorious Revolution of 1688. In Germany it took Nazi dictatorship, and Germany’s second defeat on the 20th-century global stage to undercut the antidemocratic biases still harbored by elites and large portions of the general population. Moreover, when the opportunity to learn from the failed Weimar Republic and to create a functional parliamentary democracy finally came after 1945, not all Germans were able to take advantage of it—just those who lived in the western occupation zones, the future Federal Republic of Germany. The other Germans belonged to the East or the Soviet dominated part of Europe, hardly democratic.
When Germany was finally reunifies it promptly joined the Atlantic alliance. Moreover, eight East European states, which had been under Communist rule, joined the European Union. In some way the reunification of the West was accomplished. All the countries that had belonged to the West were back in the West after 1989. As Willy Brandt put it a day after the fall of the Berlin Wall: “now what belonged together could finally grow together.” Indeed, with the reunification, what “belonged together” could finally “grow together” but as mentioned above this was not a mere European political phenomenon, it was based on common values which were transatlantic and even global.
After World War I, democracy was not able to take firm root in most countries of Eastern Europe, including Germany. In West Germany, it took four decades after the end of World War II before a public figure like the philosopher Jürgen Habermas could declare that “The unreserved opening of the Federal Republic to the political culture of the West is the major intellectual accomplishment of the postwar era, of which my generation in particular can be proud.”
It was this “unreserved opening to the political culture of the West” that would become the criterion used by the European Union to measure both its members and those nations that wanted to become members. For a country to open itself to the political culture of the West, it does not need to be a part of the historical political West. This was the case neither with Greece, which joined the European Union in 1981, nor with Romania and Bulgaria, which joined in 2007). But values and political cultures have their history; those who profess the Western values embodied by the 1993 Copenhagen criteria for EU membership must know that history and accept its legitimacy. The political culture of the West is pluralistic, which means that it must tolerate and foster a culture of debate and free speech. A pluralistic democracy depends, practically in its very existence, on political differences being dealt with peacefully. In that sense an authoritarian country like Russia which partly European geographically speaking, is hardly Western. In fact what Putin emphasized in his search for the lost greater Russia is that Russian civilization is different from decadent Western civilization, and it is in fact superior to it.
A pluralistic democracy thus requires both: on the one hand, a non-controversial sector of state and society, a “codex of values generally accepted as valid,” on the other, a controversial sector that needs regular deliberation and approval. The question we asked at the outset of this analysis returns: can the West be considered a community of values, but one in which the political consequences of those values remain—indeed, must remain—in dispute? After all, it can hardly be denied, unless one is hopelessly afflicted by historical amnesia that Western values are the product of a transatlantic experience and viewpoints that are subject to change.
The common grounds of the West become especially noticeable in comparison with other societies and cultures. The European Union and the United States do not need to invent a common foe to remain together. It would be enough to know the history of democracy and the history of its religious tenets. And then all that would remain to be done is to defend the values and institutions of the West against all threats and attacks; even promote them around the globe. But there is a caveat here: a policy that aims to spread Western values and forms of life by force and coercion or by CIA covert operations is doomed to fail. The United States, Great Britain, and France were successful in helping West Germany rebuild a democracy because they were able to tap into the free, constitutional, and democratic traditions that German history had already brought forth. On the other hand a country like Iraq simply lacks the historical experience necessary to become a Jeffersonian democracy while one like Turkey, on the other hand, may possess enough of it to be able to perfect it.
What we need to keep in mind is that democracy is much more than majority rule. A Western- type democracy is predicated on a pluralistic civil society that agrees to adhere to inalienable human rights and the rule of law. The laws referred to are both written and unwritten and include the the nomoi ágraphoi of the ancient Greeks and the norms of Christian and Enlightenment natural rights. Sadly, what we have today in the EU Parliament are parliamentarians on the extreme right who have been elected democratically but basically envision a non democratic future. That is an abuse of democracy and free speech. Indeed, time and again, the West has blatantly violated the very values it claims to profess. The West cannot afford to not forget its history of racism, colonialism, and imperialism, and the sad consequences of that history—not if it wants to stand by its professed values with any kind of credibility. Some US founding fathers, by retaining slaves, did not help their democratic cause. To profess ideals and values only in theory and not in practice is to run the risk of being branded a hypocrite.
Today Western achievements like the constitutional state, the separation of powers, and democracy have already been adopted by many non-Western societies. At this point in history the West no longer dominates the world. It merely represents one form of life and political culture among many. However, the claim of inalienable human rights remains a universal value. Since it would be contradiction to implement those rights by force, the West can do nothing better than adhere to its own values, promote them, and, where possible, to oppose their most crass violations with all means, including humanitarian intervention and perhaps even military intervention. Consequently, the West must strongly support the reform of the United Nations and the reworking of its charter. Yet, as mentioned above, the West is far from having sufficient unity and insight into the importance and cohesive power of non-material interests to take decisive action. If NATO is there merely to defend economic interests it would indeed be an irrelevant institutions. The West can certainly learn from its own history; perhaps the non-Western parts of the world can also learn from that history. But the project of the West on human rights remains incomplete; it can be perfected and advanced not by empty slogans but by building a community of values which are taken seriously and are not a cover-up for crass political-economic agendas. Those values are not geographical; they are not valid because they are European, or American, or Australian, or Canadian, but because they are universal. They can historically be characterized as Western but doing so only increases the responsibility of Western countries to lend them validity by their loyalty to them.
U.S. President Trump to meet Bulgaria’s Prime Minister at the White House: What to expect?
Next Monday, 25 November, President Trump will welcome Bulgarian Prime Minister Borissov at the White House for a bilateral meeting.
This is not the first White House visit for Bulgaria’s Prime Minister Boyko Borissov who previously met President Obama at the White House in 2012.
The White House press secretary has announced that Trump and Borissov plan to discuss security in the Black Sea region, energy and countering malign influence – all Russia-related topics, as one would expect.
The real reason for the White House treat, however, is Bulgaria’s substantial purchase of US aircraft this year.
In August, Bulgaria bought eight F-16 airplanes from the US for the hefty price of USD 1.2bln. White House meetings with foreign leaders represent special thanks for something a foreign country has done for the United States and the F-16 airplanes purchase seems to be what we are looking at here. The US is a happy seller and Bulgaria is a happy customer.
In the area of energy, Bulgaria is looking towards the US while trying to reach energy diversification and gain independence from Russian natural gas. On this, there is a clear intersection with US interests. Bulgaria agreed in May to purchase natural gas from the US for the first time. Bulgarian Prime Minister Borissov met last week with the US Ambassador to Greece to explore the possibility of purchases of American liquid gas down the line.
What is not mentioned by the official White House position is that visa restrictions will be a topic of the meeting, too. The Bulgarian Prime Minister will likely request that President Trump dropped the visa requirements for Bulgarians – an issue the Bulgarian government has been chasing for a while now and something which Bulgarian President Radev had raised with President Trump also on the sidelines of the UN General Assembly in September. Visa restrictions were removed for Polish citizens last month. The Bulgarian Prime Minister will seek the same outcome. On this point, it is unlikely that President Trump would give the green light though.
What we won’t hear about publicly is the issue of the return of ISIS fighters to Europe. No one in Bulgaria really talks about this but one can imagine this is an issue for the US government. Bulgaria doesn’t have a problem with ISIS fighters itself but, as an EU external border country, it is Turkey’s neighbor and the closest to the Middle East EU ground entry point. Last week, Turkey began returning ISIS fighters back to Europe and President Trump has been adamant that European nations with ISIS fighters need to take responsibility for them. Western European EU countries do not want their ISIS fighters back to try them in court or to reintegrate them, which is understandable but also irritating because Europeans have had the unfounded expectation that the US would somehow take care of this. How Bulgaria as an EU country at the crossroads between Turkey, the EU and the US handles that is key. No one in Bulgaria really talks about it, and the various EU, US and Turkish pressures on Bulgaria are not really known, but one can imagine the situation is that of being between a rock and a hard place. So, the return of ISIS fighters is another issue to look out for, although it will not come through in public.
In the past, NATO ally Bulgaria has aided the US with criminal and law enforcement investigations in the areas of terrorism, drug trafficking and human trafficking. This is another area to look out for.
President Trump’s impeachment is not really a topic in Bulgaria, as no one here seems to be concerned with that. It will be interesting whether Prime Minister Borissov would mention this at all to issue words of support to President Trump. This is something that President Trump would appreciate, although protocol says Prime Minister Borissov would be smart to steer away from impeachment comments.
Direct, to the point and simple words can be expected from President Trump. Prime Minister Borissov, on the other hand, is learning English so the meeting will necessarily have a Bulgarian interpreter. Expect one or two jokes by President Trump about simultaneous Bulgarian interpretation. The meeting will not pass without that.
EU chief prosecutor Laura Kovesi needs media freedom to do her job
Last month, Laura Codruta Kovesi, the former chief prosecutor of Romania’s National Anti-corruption Directorate, was officially confirmed as the first ever EU chief prosecutor to head the newly created European Public Prosecutor’s Office. Her team will start work in the end of 2020.
Kovesi will shake things up. She has a lot of hurdles to overcome. Among the main ones is the silencing and stifling of journalists across Europe, including in Bulgaria. The lack of media freedom will make it exceptionally difficult for Kovesi to do her job and uncover crimes involving EU funding.
As soon as the news hit that Kovesi was to become EU’s top prosecutor, anti-corruption activists across Europe applauded loudly. One could hear the applause also in Bulgaria where we face issues with EU funds misappropriation and theft but also complaints regarding the freedom of the press – a place where Kovesi’s work is much needed.
Defined institutionally, Kovesi’s mandate is “to investigate, prosecute and bring to judgment crimes against the EU budget, such as fraud, corruption or serious cross-border VAT fraud”. The EU’s top prosecutor is tasked with the tough job of going after crimes involving EU money.
It might sound as a disappointment to many, but Kovesi will not have the institutional competence to address everything that is wrong with a country or a sector. Corruption and fraud are covered by the EU prosecutor’s mandate only as long as they are related to EU funds.
So if Kovesi won’t be a see-it-all, do-it-all messiah, where does this leave media freedom then and why am I talking about it in the context of her job?
Well, bringing to justice crimes related to EU funds is almost impossible without the leads on the ground – work often done by a functioning free media and hard-hitting investigative journalism that uncovers fishy deals and contracts. It is journalists that sometimes lead the way. Often media investigations chart a course for criminal investigations. The media is a key ally in uncovering crimes involving EU funds. This is particularly true of a service such as the EU’s prosecutor office that will operate from EU headquarters and will rely on leads and allies on the ground.
We can’t expect that an EU service will get all the intricate, hidden local information on its own or through cooperation with the state authorities in question. This is where media and journalists come in.
Bulgaria – as sad I am to say this – gives a clear illustration of why Kovesi’s job could prove to be especially tough. The country ranks 111th in the world in terms of media freedom, according to Reporters without Borders.
To illustrate the situation, one should look no further than the current scandal involving the nomination of Bulgaria’s own chief prosecutor and the simultaneous firing of a seasoned journalist who has been critical of the only candidate for Bulgaria’s top prosecutor post.
As reported by Reuters, the national radio journalist Silvia Velikova was fired for allegedly being critical of the work of the deputy chief prosecutor Ivan Geshev, who has already been selected to become Bulgaria’s next chief prosecutor. Bulgaria’s President Rumen Radev vetoed the appointment last week, so now the country is facing judicial uncertainty and protests such as the ones from today.
Among the reasons why the chief prosecutor’s appointment has been controversial – to say the least – is the sacking of the Bulgarian Radio journalist Silvia Velikova. Her ousting caused protests by Bulgarian journalists which I have been attending, while the capital Sofia saw thousands of protesters marching in the streets against Geshev’s nomination in September, October and now, after the presidential veto.
Where the story gets interesting or horrific – or both – is that as many as four unnamed individuals made phone calls in September to the Director of the National Radio, allegedly asking for the journalist critical of the prosecutor candidate to be fired, or at least to be silenced until Geshev’s selection as chief prosecutor. The journalist Velikova was subsequently fired. She was reinstated to her post after Prime Minister Boyko Borisov spoke in her defence. And the Director of the National Radio was himself fired for stepping over by a media oversight organ.
In Bulgaria, a persistent complaint is that journalists who ask the inconvenient questions can be removed in a heartbeat, after so much as a phone call. The suspicion remains that shady dealings – not merit – continue to play a significant role in the firings and hirings of Bulgarian journalists.
One should look no further than the stories of investigative journalists Miroluba Benatova and Genka Shikerova. They are both known as hard-hitting investigative journalists that ask the tough questions and uncover corruption and mismanagement. They are both out of job after being pressured to quit a mainstream media.
Genka Shikerova faced severe intimidation over the years, as her car was set on fire not once but twice, in 2013 and 2014, in relation to her work on Bulgaria’s significant anti-government protests during these years.
Miroluba Benatova, on the other hand, caused massive waves with her recent revelation that she has become a taxi driver – only to surprise foreign tourists about how politically astute and knowledgeable Bulgarian taxi drivers are. “The service in Bulgaria has improved greatly”, told her a German tourist assuming he was being driven by just a regular taxi driver.
So, how is this related to Kovesi?
It is unlikely that by driving a taxi Benatova will be coming across many leads about EU funds theft, to assist Kovesi. Such a waste of talent, and also funds.
The media across Europe has a key role to play in supporting the work of the new EU prosecutor. As long as journalists in countries like Bulgaria lack the freedom to do their jobs, crimes involving EU funding will go uncovered. If Laura Kovesi wants to succeed in her new job, she will have to take context into account and recognize that in many EU states, including Bulgaria, journalists are often not allowed to do their jobs and ask the hard questions. And that’s a shame because Kovesi will not be able to do it alone.
Why German car giant Volkswagen should drop Turkey
War and aggression are not only questions of ethics and humanitarian disaster. They are bad news for business.
The German car giant Volkwagen whose business model is built on consumer appeal had to stop and pause when Turkey attacked the Kurds in Syria. A USD 1.4bln Volkswagen investment in a new plant in Turkey is being put on hold by the management, and rightly so.
Unlike business areas more or less immune from consumer pressure – like some financial sectors, for example – car buying is a people thing. It is done by regular people who follow the news and don’t want to stimulate and associate themselves with crimes against humanity and war crimes through their purchases. Investing in a militarily aggressive country simply is bad for an international brand.
As soon as the news hit that Turkey would be starting their military invasion against the Kurds, questions about plans for genocide appeared in the public discourse space. Investing over a billion in such a political climate does not make sense.
By investing into a new plant next to Turkish city Izmir, Volkswagen is not risking security so much. Izmir itself is far removed from Turkey’s southern border — although terrorist attacks in the current environment are generally not out of the question.
The risk question rather lies elsewhere. Business likes stability and predictability. Aggressive economic sanctions which are likely to be imposed on Turkey by the EU and the US would affect many economic and business aspects which the company has to factor in. Two weeks ago the US House of Representatives already voted to impose sanctions on Turkey, which now leaves the Senate to vote on an identical resolution.
Economic sanctions affect negatively the purchasing power of the population. And Volkswagen’s new business would rely greatly on the Turkish client in a market of over 80mln people.
Sanctions also have a psychological “buckle-up” effect on customers in economies “under siege”, whereby clients are less likely to want to splurge on a new car in strenuous times.
Volkswagen is a German but also a European company. Its decision will signal clearly if it lives by the EU values of support for human rights, or it decides to look the other way and put business first.
But is not only about reputational damage, which Volkswagen seems to be concerned with. There are real business counter-arguments which coincide with anti-war concerns.
Dogus Otomotiv, the Turkish distributor of VW vehicles, fell as much as 6.5% in Istanbul trading after the news for the Turkish offensive.
Apart from their effects on the Turkish consumer, economic sanctions will also likely keep Turkey away from international capital markets.
There is also the question of an EU company investing outside the EU, which has raised eyebrows. It is up to the European Commission now to decide whether the Volkswagen deal in Turkey can go forward after a complaint was filed. Turkey offered the German conglomerate a generous 400mln euro subsidy which is a problem when it comes to the EU rules and regulations on competition.
The Chairman of the EPP Group in the European Parliament, Manfred Weber filed a complaint with the EU competition Commissioner about the deal, on the basis of non-compliance with EU competition rules. Turkey’s plans to subsidize Volkswagen clearly run counter EU rules and the EU Commission can stop the 1bln deal, if it so decides.
In a context where Turkey takes care of 4mln refugees — subject to an agreement with the EU — and often threatens the EU that it would “open the gates”, it is not clear if the Commission would muster the guts to say no, however. In that sense, the German company’s own decision to pull from the deal would be welcome because the Commission itself wouldn’t have to pronounce on the issue and risk angering Turkey.
While some commentators do not believe that Volkswagen would scrap altogether the investment and is only delaying the decision, it is worth remembering that the Syria conflict is a complex, multi-player conflict which has gone on for more than 8 years. Turkey’s entry in Syria is unlikely to end in a month. Erdogan has communicated his intention to stay in Syria until the Kurds back down.
In October it was reported that the Turkish forces are already using chemical weapons on the Kurdish population which potentially makes Turkish President Erdogan a war criminal. For a corporate giant like Volkswagen, giving an economic boost for such a state would mean indirectly supporting war crimes.
As Kurdish forces struck a deal for protection with the Syrian Assad forces, this seems to be anything but a slow-down. Turkey has just thrown a whole lot of wood into the fire.
Volkswagen will find itself “monitoring” the situation for a long time. There is a case for making the sustainable business decision to drop the risky deal altogether, soon.
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