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Europeans Goodbye?

Michael Akerib

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‘Demography is destiny.’ Ben Wattenberg and Richard M. Scammon

In 1825 the world’s population reached, for the first time, the figure of 1 billion with a doubling of the population 100 years later and on to 5.3 billion in 1990. It stands today at 7.5 billion.

A demographic transition is taking place worldwide but at different rates. Seven per cent of the world’s population is over 65, and this is unevenly spread, with. Africa has the world’s youngest population, with Europe and Japan harboring the smallest number of children.

By 2050, the world’s population is expected to number 9.5 billion, assuming present trends continue, at which time the population of the developing countries will be 6 times larger than that of the developed countries due to higher fertility rates. The increase in the world’s population will be identical to the number of people on the entire planet back in 1950.

In Africa, some countries will see their population triple, requiring the building, each week, of a town of a million inhabitants.

On the other hand, in East Asia, the birth rate is collapsing. China and Japan have among the world’s lowest birth rates – Hong Kong’s is below 1 – and in Japan 14% of the population is over 65 years old. At the present fertility rate of 1.25 child per woman, the country’s population will be of only 60 million in 2100.

China’s population is also forecast to decrease to less than 20% of the world’s population but the country will have 25% of the world’s senior citizens.

A sustained fertility rate of 1.3 means that, over a century, a country would lose 75% of its population.

Europe’s declining birth rates

Over the past three centuries, Europe’s population multiplied fivefold and if you include the population of European origin that immigrated worldwide, we are led into a sevenfold increase.

The main reason for this increase was due to a reduction of mortality. At the beginning, this decline was gradual and ascribed to a more productive agriculture, trade that enriched European nations, the industrial revolution, advances in medical knowledge, better nutrition, a more relaxed lifestyle and better public order. Starting in the nineteenth century, a drastic reduction of mortality of infectious and contagious disease to nearly zero increased life expectancy at birth from 35 years to 70 years.

Other contributing factors for this increase were the decline in female fertility as women entered the professional world in ever larger numbers. They also had easy access to birth control methods.

The number of working-age adults increases and the economy grows as not only the economic contribution of the population increases, but also the social contributions decrease. This is called the ‘demographic dividend’. It is, however, at this stage that the state must undertake productive investments such as in education and health infrastructure in particular to support old age.

Birth rates increased in the last quarter of the nineteenth century, but remained below that of other parts of the world. European population was always constrained by the use of traditional birth control methods, a low number of extra-marital births, a late marriage age and a fairly large percentage of unmarried persons.

Low birth rates are a worldwide trend, and if every woman will only have a single child, the world’s population in 2075 will be of 1.6 billion. Europe, in particular, is suffering, and is forecast to continue to suffer of depopulation. Its present population of 740 million is expected to drop to 707 million by 2050 and of 646 million by 2100.

For a population to remain stable, the total fertility rate – the number of children a woman will have in her lifetime should be of 2.1. In eastern and southern Europe, the figure is presently of 1.3, and in some areas has dwindled to 1. In Germany, nearly 30% of the women born in 1960 have not had any children. Russia is losing half its population every 40 years and its underpopulated large land mass could be seen as an invitation by China.

When birth rates eventually decreased, they brought about a new vision of the family, with women succeeding in roles other than that of wives and mothers and with reduced coital rates. Fertility was increasingly controlled by females rather than males.

Urbanization played a leading role in the drop in birth rates. The smaller family became the reference in Europe first, and then spread to many other countries. Urban couples did not have the social pressure that rural families had, of having children rapidly becoming economic contributors.

In an urban environment, individual success is important and family ties lose their primary role as education, health and employment is ensured by institutions other than the family. Children become a cost rather than an asset.

This led to a demographic transition of low birth rates and long life expectancy which helped the population of Europe and of the world grow.

The transition normally starts with low child mortality; children being the first beneficiaries of increased survival. In Europe, today, nearly all births occur in a hospital environment with a large number of precautions taken including for premature children.

In Europe, the countries that were rich at the end of the Second World War, such as in Scandinavia and North-West Europe, saw the number of traditional families decline as women had satisfying employment opportunities and individualism was on the rise. Everything was postponed, from leaving school to dying. Postponing births eventually results in women being too old to be pregnant.

Professional women tend to cheat more, divorce more often, have fewer children, and more often than non-professional women feel sorry of having married and having had children.

Women concentrating on their careers find the stress of caring for children – which, in today’s society takes an increasing amount of parents’ time as well as a change in the relationship between parents – a burden, particularly if the household work – usually considered as a low-level type of work – is not shared with the male parent. Women have a major decision to make as to whether they pursue a career, marry or build a family. They will select cohabitation as against marriage if they believe that being married will hinder their possibilities of career advancement. Investments in child care infrastructure and a balance between life and work lead to increased birth rates. Women must have the possibility of returning to their jobs after a pregnancy and maternal leave.

Women pursuing careers may study for long periods of time and therefore they will have their first child at an advanced age, thus limiting the number of children they will have. Mothers having their children at a more mature age translates into older grandmothers, if they would still be alive, who may not be able to assist their daughters or grand-daughters. The non-availability of this care may reduce even further the propensity of women to have children.

Increasingly they may not want to mate, preferring to enrich their lives financially and intellectually, or will select low-fertility partners. They may find there is a lack of desirable partners. Pressure put on by media as the looks of women, slim and a canon of beauty, may also lead women to opt for a slimmer look to the detriment of family formation or even partnership and sex with a man.

In the Mediterranean countries where family values were supported by culture and governments, the transition took place later. In Southern Europe, as children stay with their parents until marriage, by the time they leave home, they are at a more advanced age than adults from Northern Europe, and therefore are more likely to have fewer children. They are also less likely to take financial risks by taking responsibility for a family. This has been called the ‘delay syndrome.’

In Central and Eastern Europe where communism collapsed and with it went the allowances and a large number of free services, families hesitate to assume the burden of a child.

As societal pressure is determinant in defining the number of children a couple will have, a smaller family became the social norm. It fulfilled in a minimalistic manner the social pressure to have children.

One of the most important elements in social pressure is religion and all religions encourage a strong birth rate. Hence, in industrial societies, as religiousness wanes, so does the size of families.

A theory suggests that as children survive, there is no need for families to have ‘replacement’ children in case of death and the child become the child-king. Another theory proposes that since children no longer look after their parents, they do not need to bear the cost of bearing them. A third theory proposes than in resource allocation, families today prefer spending their funds on matters other than raising children which they will have only if the benefits outweigh the costs. The benefits are essentially emotional and a response to societal demands including that of creating new networks such as with other school parents and later in time with the in-laws. The costs have their origin in education, the purchase of food and other products, and possible tensions between the parents as the fathers concentrate on their professional activity to create wealth for their family, which often translates in absences from the family.

Job instability has also had a negative impact on the willingness of couples to start a family.

Women’s libido appears to be on the wane and men’s sperm count is decreasing and the spermatozoids are less active probably due to the chemicals absorbed in the diet. Obesity in both men and women also affects their fertility.

The large number of leisure activities easily available and the ideas that freedom and personal development are essential to a happy, productive life are major distractors and inhibitors to starting a family. The ubiquitous nature of erotic and pornographic images leads men to view their companions as exclusively a sex image and not a partner with whom to establish a family. At the other end of the scale an ever increasing number of men have opted out of sex altogether.

Education, in turn, impacts fertility in a number of ways. It allows reaching a better status and material conditions, it improves the ability of women to select the right partner who has the same level of education and may also be reluctant to have a large family, and it leads to better informed women and therefore larger use of contraceptives, and increases the opportunity costs of childbearing.

Financial issues are also a hindrance to starting or expanding a family. Educated couples may also prefer to concentrate their wealth, during their lifetime or through inheritance, on a single child.

Increasingly, in an unstable world, would-be parents, particularly younger couples, are afraid of conceiving children in what could be a very different and dangerous world.

The availability of contraceptives and the legalization of abortion have also been contributing factors. They not only enabled women to postpone pregnancies but also sharply reduced unwanted pregnancies.

In Southern Europe, as children stay with their parents until marriage, by the time they leave home, they are at a more advanced age than adults from Northern Europe, and therefore are more likely to have fewer children. They are also less likely to take financial risks by taking responsibility for a family. This has been called the ‘delay syndrome.

The one population segment that is growing in Europe is the Muslim population that, even though it averages only 5% of the population, with the notable exception of Russia where it reaches 15% and France with 10%, may eventually bring about major changes in society as their culture is essentially very difficult from the permissive and liberal European culture. if Muslims maintain a high fertility rate, we could witness a repeat of what is believed to have taken place with the Christians in the early days of the church in Rome, with a small group rapidly gaining in importance and leading the emperor himself to convert.

However, the fertility of Moslems in Europe is declining rapidly, adjusting itself to that of the native European population, and thus showing that immigration is not a viable alternative to stop population decline. Migration does, however, contribute to replace an ageing workforce.

Nearly 50 million migrants will have to be admitted to the European Union by 2050 for the population to remain stable. For the retirement benefits to be maintained at their present level of 4 active persons per pensioner, the figure for migrants is even higher, reaching 13 million a year. Presently there are 11 million migrants in Europe and an unknown number of illegals.

There are other ways through which this decline could be halted. One of them is through the entrance of candidate countries which, like Turkey, have a growing demography.

As birth rates decline, due to personal choices, both the number of children and the population, over time, shrinks. The working age population decreases and fertility declines even further. Eventually there is the third transition period with all age segments of the population declining.

An ageing society

In the world today, for the first time in human history, old people outnumber the young. In developed countries, 20% of the population is older than 60. Worldwide, 1% of the population is over 80 and, being the fastest growing age group, is due to reach 4% by 2050.

Since the middle of the 19th century, life expectancy has increased by 3 months every year, leading to the forecast that by 2060, it will have reached 100 years and possibly even higher if life-extension drugs or technologies are developed.

Europe has the world’s oldest population, with 22% being over 60, and 1% being older than 80, this last figure is expected to reach 4% by 2050.

Women still have a longer life expectancy than men, but the difference is narrowing and may not be sustainable over the long term. Smoking by women, together with the adoption of social habits that used to be reserved to men, is believed to be the major culprit in allowing this difference to narrow.

While the average sex ratio at birth favors males by approximately 105 boys to 100 girls, the ratio reverses itself with age as women have a longer life expectancy than men. For the population over 60, the figures are of 82 men for 100 women and decreases to 55 men for 100 women at age 80. The ratio at these older ages is even lower in Europe with 69 men per 100 women at the age of 60, and 42 men per 100 women at the age of 80. One of the reasons for the difference between Europe and the rest of the world is the large number of young men who died during the Second World War.

Explanations for the longer life expectancy abound. One of them is that the present generation that is retiring is the first to have known both antibiotics and vaccines. They also received a better nutrition as food prices decreased.

Economic and political issues

All the models indicate that economic growth can only take place if there is demographic growth.

Several countries have introduced pro-natal policies such as the financing of day-care centers, fiscal advantages, payments at birth, etc. Research has shown that these policies incite families to have children earlier, but not to have more children.

Older persons are conservative and risk-averse. Therefore it is more than likely that entrepreneurial actions will decrease. Savings will also be on the decrease and lead to higher interest rates increasing the cost of investments. Inheritances, except for the wealthy, will be paltry, leading the younger generations to have reduced wealth.

Pensions and health care costs will soar as the number of people gainfully employed shrinks compared to the number of elderly retired. The increase in the pension and health care budget for France, for instance, is set to increase by 13% and reach five times what the country spends on defense.

Health care for older people is an expensive undertaking, particularly in the treatment of terminal diseases such as the setting of implants and cancer, both of which are a common occurrence on people over 65. A solution to curb these rising costs is to reduce reimbursements or increase insurance premiums or taxes but there is a limit to the acceptance by the tax payer of new increases. Another option is a strict limit set by the government on prices of medications and hospital equipment as is the case in Japan.

As the workforce will decrease, employment of older people may be encouraged by governments through the removal of social contributions and other social payments from corporations, through investments in lifelong learning and by applying penalties on corporations discriminating on the basis of age.

On the positive side, however, new opportunities for employment and for entrepreneurs will be created by the so-called silver economy. These relate to new products and employment in areas as diverse as health care, assisted domestic living, education, travel, spas, etc.

However, even if a number of these urgent measures are applied, the relative importance of Europe in the world will no doubt diminish.

Another action European governments could take to help slow population decline, is to reduce the number of preventable deaths due to alcoholism, car accidents, suicide and smoking for persons under 65 years of age.

Forecasts

Forecasting not being an exact science, there are several forecasts as to the future population of the world and of Europe.

One suggests that future fertility rates will vary, depending on the country, between 1.35 to 2.35 children per woman, leading to a world population in 2030 of between 7.7 and 10.6 billion.

By 2050, Asia’s population will be of over 5 billion and that of Africa nearly 2 billion. India will be the most populated country with 1.4 billion inhabitants.

The world’s population of over 60 will double to 22% of the total population by 2050 and will be larger than the number of children and in the developed countries will be twice the number of children.

Europe’s population is expected to drop by 7 million between now and 2050 and it will only represent 7% of the world’s population in spite of the fact that the populations of France and Great Britain are expected to continue to grow. The countries with the sharpest growth will be Romania and Croatia.

The European continent appears to be moving to an empty land populated mainly by older persons who will sink into poverty as the number of working people decreases. Should large waves of immigrants or the introduction into the EU of Turkey be allowed replace the existing population, European culture will disappear.

Goodbye Europeans, Farewell.

Europe

EU dying silently as it plays in Trump’s court

Mohammad Ghaderi

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While the US is explicitly undermining the EU regionalism for an upper hand in the global economic dynamics, the Europe is falling in a trap with secret negotiations.

The paradoxical approaches taken by the European authorities is definitely one of its kind. Over the past months, Angela Merkel, the German Chancellor, has repeatedly emphasized that the EU can no longer rely on the United States to secure its interests.

However, the German Chancellor held secret and hidden negotiations with the US government and Trump to resolve Europe’s economic and security problems and crises.

In other words, there is a significant difference between the speeches and actions of the European authorities regarding the EU’s independence from Washington. Here are some points that need to be taken into consideration:

Firstly, US President Donald Trump is one of the main opponents of the existing structure in Europe. He has come to this conclusion that the collapse of the United Europe will provide the United States with great economic growth among its allies. The White House therefore monitors the simultaneous destruction of the Eurozone and the European Union as essential goals. This is the main reason for Trump’s support for nationalist and anti-EU movements in Europe. Recently, Donald Trump has officially urged French President Emmanuel Macron to pull his country out of the EU to benefit from more US-France ties. Also, the US president has asked Theresa May, the British Prime Minister, to sue the European Union for making barriers in Brexit talks. Trump has gone even further, and warned Theresa May that she should choose between integrating in the European economic structure and having economic relations with the United States. Together, these statements and stances show that Trump is working hard to achieve his main goal in Europe; which is the collapse of the European Union.

Secondly, although some may think that confronting the United Europe is the secret target of the US President, Trump’s behavior suggest that he has no reluctance to declare his opposition to the EU and the Eurozone. Trump believes that the collapse of the European Union will lead to an increase in his power and would intensify his dominance on the European players. Hence, the President of the United States is trying to manage the EU’s collapse from an economic and commercial perspective. It should not be forgotten that during the 2016 presidential campaigns, nationalist and anti-EU movements were Trump’s only supporters in Europe, and other politicians affiliated with the Social Democratic or Conservative movements in Europe (which currently hold the power) wished that the Democrats and Hillary Clinton could win the election.
Europe is now facing a phenomenon called “Trump”. In spite of this, the way European authorities try to deal with the White House is still based on a kind of deterrent idealism. Unlike countries such as China and Canada, which have given a strong response to imposing tariffs on imported steel and aluminum, European authorities have not yet taken a determined decision against the United States and the Trump government. On the other hand, European leaders continue to resolve the differences between themselves and the Trump government on the through negotiation. It is as if the European leaders have not yet realized the deep opposition of Trump with the EU and the Eurozone. They are still trying to reduce the US president’s “conflicts” with the EU to some sort of “superficial disagreement”, which is exactly what the president of the United States and his entourage want.

Undoubtedly, the current retreat of the EU authorities before Trump and their failure to enter the phase of “confrontation with the White House” should be interpreted as “EU’s quiet suicide”. The continuation of this process will lead to further pressures on the European Union, and subsequently, the position of nationalist and anti-EU groups within Europe will be strengthened. Besides, we should take this fact into account that with the advent of more than one hundred far-right representatives to the European Parliament during the 2014 parliamentary elections, the process of “collapse of the United Europe” has actually begun. Right now in countries such as Austria, Italy, Sweden, and even France and Germany, nationalist groups have been able to politically strengthen their position, and even find way to the top of political equations of some of these countries. The most important factor that can save Europe from current crises is to strengthen the Europe’s independence in the international system. The symbol and objective example of the strengthening of such an independence is “standing against the United States”. But that’s exactly what the European authorities have forgotten.

It seems as if European officials hesitate to consider the significant presumption of “Trump’s opposition to the United Europe” in their behavioral and verbal calculations. They are still thinking and deciding in the phase of “interacting with the White House”, and they are even willing to give their NATO Ally some advantages. But if the EU doesn’t enter the phase of “confronting the US” and merely try to control Trump’s decisions and policies, its destiny will be nothing but collapse and destruction. This confrontation calls for putting an end to the Europeans’ play on the US ground; a precondition that has not yet been fulfilled by EU member states. Eventually, the Green Continent is at one of the most critical periods of its political, economic and security life. Indeed, how can we imagine that Europe, by continuing its current submission to the United States, can get out of the existing crises?

First published in our partner MNA

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The meeting between Prime Minister Conte and President Trump

Giancarlo Elia Valori

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At least apparently, the meeting between US President Trump and Italy’s Prime Minister Conte – already widely planned and publicized – went well.

With some common and evident pride, they mutually defined each other as the initiators of what, nowadays, is usually called “populism”, consisting in the fight against traditional elites in favour of the “people” that, however, actually appears rather as a fight between two different components of the global elite: the old one that still focuses on globalization and the other that instead gathers around the evident crisis of globalism and wants to build a new multipolar world. Ultimately the opening to the world market has proved to be less effective than expected: the cost for destroying “domestic” jobs has turned out to be greater than the gains resulting from the globalized market.

President Trump, who has clear in mind what is still happening on the US-Mexican border, said that the Italian government’s work on the migrant issue “is formidable”.

Italy’s government work that, however, would be “formidable” both for illegal migrants and for the very few legal ones.

Nevertheless President Trump was particularly sensitive to an issue which is high on prime Minister Conte’s agenda, namely Libya.

Trump and Conte have established a new “strategic dialogue” between the USA and Italy on Libya, while the US President currently recognizes Italy’s hegemony over the Mediterranean and the stabilization of Libya and, later, of Northern Africa.

In more specific terms, President Trump said it would  further diminish the American presence in the Mediterranean and would delegate Italy to manage and reduce tensions in the region. Hence the need for the Italian government to increase defense spending, as we will see later on.

In August 2018 Italy will already send some military ships to Libyan waters, while the United States still has many ships operating in the Mediterranean, which they do not intend to relinquish completely.

The new US-Italian “control room” will operate within the framework between this residual US presence and the increase of Italian operations in the Mediterranean.

Prime Minister Conte’s real project, however, is a great International Conference on Libya, to be held in Rome next autumn, which will see the United States play the role of hegemonic power and will enable the Italian government to definitively position itself as the leader of the whole  Libyan political process.

In fact, Prime Minister Conte is thinking about a joint “control room” between Italy and the United States, especially for Libya and for security in the Mediterranean region.

Nevertheless there is a problem: the difference between the US and Italian war potentials.

There is also the different assessment of the Mediterranean region by the United States, which sees the Mediterranean in connection with the Persian Gulf and Central Asia (hence in contrast with Russian interests), and finally the contact with China’s maritime control area.

Conversely, probably due to a still narrow-minded vision, for Italy the Mediterranean is the region in which the migrants’ market must be controlled and finally be put to an end, by avoiding the interference of France – which is  interested in encouraging the flow of migrants towards  Europe and hence towards Italy – and the jihad, which is spread also through large-scale migration.

All French – and sometimes British – interests are far from Italy’s and often totally diverging with its goals.

Furthermore, Italy has long played all its cards on Fayez al-Sarraj’s government, the “legitimate” one according to the United Nations and hence – according to our experience – the weakest and most unstable and irrelevant government.

There are currently signs of a new relationship with General Haftar, but none of the two Libyan governments fully trusts Italy. Probably it would be a smart strategy for Italy to play all its cards on Fayez al-Sarraj, so as to remain his sole sponsor and later play from a vantage point with General Haftar himself, that now no longer goes beyond the old border with Tripolitania.

How will Italy be in a position to get in touch with the region in the West controlled by General Khalifa Haftar, a leader who reports respectively to Egypt, Russia and France, which has always pretended to support Fayez al-Sarraj but, from the beginning, has made the Service Action of its intelligence services side with the military of the East, of General Haftar’s Cyrenaica?

Clearly the de facto union between the United States and Italy for Libya serves to get France and most of the EU out of play- and, indeed, the EU has scarcely taken care of the issue. The French-EU system is now a structural opponent of Prime Minister Conte’s government, but is also a German ally. Germany is now an enemy of President Trump’s United States and he wants it to reduce its export surplus, which is greater in real terms than China’s.

The “distant friend”, namely America, to be called against the “near enemy”, namely the EU, which is an old and excellent Israeli strategy, but never replaces the direct operations against the opponent that is only a few steps away.

The Italian struggle is against the “Rhenish” Europe, which still wants to split up the “Libyan region” and is not interested in the migration issue, which does not affect France and Germany at all.

Germany has mostly migrants from the Middle East, not so much from the Maghreb region.

In fact, migration in Italy is an operation of “indirect strategy”: the costs for the State increase; the mass of skilled workers decreases; also the innovation potential of companies decreases since they are de facto forced to hire low-skilled migrants when they need manpower;  finally the invisible costs of large-scale migration increase, such as health, prison system, security and initial support to  the migrants themselves.

The aforementioned Italian-US “control room”, however, puts the EU in a difficult position: it is true that President  Trump said that,in the future,Italy would play the role of “facilitator” between the USA and the EU, but Italy is as weak within the European Union as it is strong in the bilateral link with Trump’s “populist” United States.

The Trans Adriatic Pipeline (TAP), the gas pipeline that the USA favours against the gas lines controlled in Northern Europe by Russia and its “friendly” countries, is the “wedding gift” that President Trump asks to Italy.

This pipeline falls within a markedly anti-Russian policy line, but it also affects an Apulian region, namely Salento, that is already very sensitive for the current Italian government from the electoral viewpoint. In fact the Italian government won many votes from the anti-TAP movements, which are very strong in Salento, and are ready to fight to the death.

Will the Five Star Movement decide to lose its face and  Apulia’s voters with a view to strengthening its friendship with the United States, while President Trump asks for government support to the TAP as Italian government’s “proof of love”?

Furthermore will the Italian government’s support for the TAP be useful in relation to the Russian Federation, which should become a supporter of the new “sovereinist” Italy?

I am afraid that if the current government does not choose from the beginning with which of the two powers it wants to side, it will find itself in the same unpleasant and uncomfortable situation as Arlecchino in Goldoni’s play The Servant of Two Masters.

Moreover, in spite of everything, the Russian issue is at the core of the new “contract” between Prime Minister Conte and President Trump.

The EU sanctions against Russia are strongly penalizing for the Italian economy, which has decreased its exports to Russia by 70%, with a loss of over 200,000 jobs and a 25% fall of Russian tourists in Italy.

Prime Minister Conte wants reassurances, and possibly support, to reduce sanctions against the Russian Federation, but Italy may decide to support the TAP – which was designed to counter the North Stream between Russia and Germany –  in exchange for a decrease in US sanctions against Russia.

Hence, if Italy is linked to the anti-Russian front as a result of the Conte-Trump agreement, how will President Putin behave at international level? Certainly his behaviour will  not be favourable and, anyway, capable of doing much selective damage to Italy.

Reverting to Libya, the US-Italian pact to get the Maghreb country out of the political and military chaos envisages ongoing consultations between Italian and US Defence and Foreign Ministers.

Hence is Prime Minister Conte absolutely certain of being able to favour the US trade on the whole European continent? We rather fear that Italy’s EU partners will not look favourably upon Italy’s brokerage and intermediation onto US markets, while possibly Italy’s trade deficit with the United States remains intact and the EU’s one with the USA is  under attack.

As President Trump said, “the Italian companies’ interests will not be hit” – which, inter alia, now seems to be quite credible.

In Trump’s era, the Italian exports to the United States are worth 40.5 billion euros per year.

The total amount of trade between the two countries is worth 55 billion euros, but the Italian imports from the United States currently amount to 15 billion euros.

From 2009 to 2017, the Italian exports to the United States rose by 139%, as against a 58% increase in US exports to Italy over the same period.

The Italian exports to the United States often consist of cars, as well as “luxury and high-end goods”.

If President Trump taxes foreign cars, FCA –  which imports about 50% of the cars it later sells to the USA – could be hit by a 20-25% tax, as the one thought by Trump’s Administration, which would reduce Fiat- Chrysler’s profits within a range from 616 up to 866 million euros.

This applies only to cars. But the US President wants to hit – along with the others -Italy’s trade surplus with the United States, which is approximately 36 billion US dollars.

It is an implicit, but probably involuntary attack on the strategy by Minister Savona, who is collecting the surpluses of Italy’s balance of payments to turn them into assets vis-à-vis the EU.

Moreover, there is also the issue of military spending that the US President wants to increase up to a yearly 2% level for all NATO European States.

However, if we spend the expected 2%, it is more than likely that Italy will ipso facto exceed the deficit / GDP ratio set by the EU that former Prime Minister Prodi once dismissed  as “stupid”.

Hence how could Italy be the sole and effective broker and mediator between the EU and North America?

Therefore there are many lights and shadows on the new preferential relationship between the United States and Italy. We hope that everything will go well.

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Mesut Ozil’s retirement and the dark face of identity politics in Germany

Sisir Devkota

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Distinguished commentators are pondering upon a particular question in common. What was Ozil supposed to do when Recep Tayyip Erdogan-the President of Turkey had invited him for a compassionate meeting in a hotel room? The answer is obvious. He could not have ignored. Except for breakouts inside the Christian Democratic Party (CDP) and the anti-immigration AfD (Alternative for Germany), Mesut Ozil has substantial approval from all corners. More than football, the issue is deeply rooted in the Christian roots of political parties in Germany.

Rienhard Grindel-a former politician hailing from CDP, manufactured a fuss about how Ozil should not have met with Erdogan in front of a packed press before flying to Russia for the World Cup. Former footballer and Germany’s team manager, Olivier Bierhoff struck a controversial statement too. He regretted not leaving Manchester City’s prolific Ilkay Gundogan and Ozil out of the aeroplane to Russia. When the animosity became public, Germany was out in the Russian summer, preparing for a doomed destiny of failing to qualify from the group stages. Ozil kept quiet until it was over but for outsiders and in Turkey, there was a serious accusation to tackle. Erdogan was advertised as a leader practicing anti-democratic values and arguments like Ozil’s meeting with the Turkish president was against the values of Germany baffled all neutrals. How could a country’s democracy diminish by a footballer’s honourable act? Slowly and subsequently, Rienhard was reminded of his statement in 2004. “Multiculturalism is a myth”, he had declared. Renowned journalist, Matt Pearson pierced him in public and questioned his ability to lead a team full of second and third generation Germans. Read Ozil’s statement carefully. He has cultivated feelings of justifying his citizenship every time he is on the pitch. “When we lose, I’m not German”, Ozil wrote in his long address. The problem is about identity. It is a fight of political values, lost in transition.

Germany’s chancellor-Angela Merkel is with Ozil. Her colleague Grindel was a former CDP man until elected as the association’s president in 2016. Defectors from CDP formed the Alternative for Germany. Ozil’s retirement has underlined the problem of clashing political franchises in Germany. Merkel has often been accused of straying away from the values of CDP, which in its inception, was assembled by World War survivors to protect the Christian character of the German nation. The AfD was born in the same light to correct the frailties of the existing CDP. Ozil’s case of mistreatment is only the result of the clashing politics, deeply rooted with the values of religious identity. Unlike modern societies, it is not the case of Islam being politicised. Instead, it is a contest of Christian quality. An attempt to correct the founding values of German political structure. The AfD are making dangerous strides and to put it in their own words, they are seeking to become the true guardian of Christian identity in Europe. Influential pastors and bishops are supporting the AfD agendas to incorporate Christian values in schools. Ozil is right about the nature of his German society. It is in a skirmish. In a civil war of values tied with Christianity.

France is a good comparison to make. Officials from the French National team were angered by social media statements of how Africa had won the world cup; not France. A fellow French footballer of an African descent replied with twenty-three French flags; the total number of his teammates who won the cup in Russia. Ozil expressed the same emotion; unlike in Germany, he would have still been a French-when he lost matches. Rightly, the 2010 Bambi award winner has questioned his treatment by the German Football Association (DFB). However, recurring racial attacks in the past have often disparaged the good impression of a German society. Be it rejections of Indian students by a professor in Leipzig (2015) or the murder of an Egyptian national in 2009; it is a society expanding in turmoil.

Turkey, his ancestral land has commended his courage to speak up against the system. Erdogan reportedly telephoned him in sympathy and support. For many, it has come as a political agenda in the midst of elections but Mesut Ozil’s cause deserves widespread endorsement. When Rienhard Grindel was just a treasurer for the DFB, Ozil won the world cup for Germany in 2014.

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