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Is the European Union on the Verge of Dissolution?

Emanuel L. Paparella, Ph.D.

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And The Weak Suffer What They Must? Europe’s Crisis and America’s Economic Future. by Yanis Varoufakis (April 2016)

“The strong do what they will, and the weak suffer what they must”–Thucydides

This book, just out, is a must read for anybody in any way interested in the history, the cultural identity, the present crisis, and the future destiny of the European Union. It is almost prophetic, a sort of Cassandra warning, predicting, but always rigorously logically and rationally, how the ongoing drama of the EU, of which he was a participant for a short while, will eventually end, and not only for Greece or the EU, but the whole economic global apparatus as presently constituted, unless urgent reforms and measures are adopted to remedy a deficit of Democracy and a lack of transparency.

The author is well known. For five short months he was the flamboyant Finance Minister of Greece as the country attempted to negotiate its economic crisis. Contrary to general perceptions, he is not a Communist, nor a wild-eyed zealot radical, not even a Marxist. He is merely a rational economist, a European social democrat. The Anglo Saxon world would dub him a post-Keynesian.

varoufakisBefore discussing the most interesting features of this extraordinary book, perhaps a short note on its title is in order. Its inspiration seems to have come from Thucydides’ famous statement as quoted above on the relation of power to truth and justice. The very nature of war, as far as Thucydides is concerned, is dictated by the nature of power and how it determines who has the ultimate word. That is to say, might is right; the strong or the winner dictate the conditions of surrender, even the narration of events, and the weak accept what the strong impose. That’s the way things have been, are now and will forever be. Necessity dictates it. Notice however that Varoufakis has placed a question mark after the statement “And the weak accept what they must.” Without that question mark the title would have been a mere quote from the ancient Greek historian. With it, it becomes a powerful challenge to the misguided premise that the weak have no choice but to suffer in silence the abuses and the injustices of the powerful. In fact without that little question mark one may tend to misinterpret the whole spirit of the book.

With that well in mind, let’s proceed to examine the narration and analysis exhibited in this book. It reads almost as a narration with the eyes and ears of a novelist but at the same time it exhibits the competency of an experienced economist, who actually teaches the subject internationally. There are no fanciful or even slanderous inventions here; the facts are narrated objectively in the search for the truth, in the best tradition of ancient Greek philosophy. He manages this tone because he himself has been intimately involved in the events that led to what he calls the “defeat of the Greek people by the EU bankers.”

The general framework and assumption of the book is that the crisis in Europe is not over – if anything, it’s getting worse and we are doing precious little to fix it, except advocate more austerity coupled with less democracy and transparency. In this dramatic narrative which begins with Europe’s spectacular economic rise and ends with Greece’s spectacular fall which Varoufakis calls “the canary in the mine” being utilized by the EU bureaucrats, it is brilliantly demonstrated that the origins of the recent collapse go far deeper than our present leaders are prepared to admit; in fact they are complicit in the crisis. In 2008, the universe of Western finance outgrew planet Earth. When Wall Street imploded, a death embrace between insolvent banks and bankrupt states consumed Europe. Half a dozen national economies imploded and several more came close.

But the storm, the author writes, is far from over. From the aftermath of the Second World War to the present, Varoufakis recounts how the Eurozone emerged not as route to shared prosperity but as a pyramid scheme of debt with countries such as Greece, Ireland, Portugal and Spain at its bottom. Its woeful design ensured that collapse would be inevitable and catastrophic.

But since the hurricane landed Europe’s leaders have chosen a cocktail of more debt and harsh austerity rather than reform, ensuring that the weakest citizens of the weakest nations pay the price for the bankers’ mistakes, while doing nothing to prevent the next collapse. Instead, the principle of the greatest austerity for those suffering the greatest recessions has led to a resurgence of racist extremism. Enter the likes of Trump and La Pen, as Varoufakis mentioned at a recent lecture in Washington State: Fascism always follows in the wings of economic corruption. And so, once more, Europe is a potent threat to global stability. Drawing on the personal experience of his own negotiations with the Eurozone’s financiers and offering concrete policies and alternatives, Varoufakis shows how we concocted this mess and how it may not be too late to save capitalism from itself.

Varoufakis points out that in a true democratic federalism political unity would be in tandem with monetary unity. Not only there is presently no economic and banking unity, never mind social solidarity, but there is no federalism and little democracy and transparency, which were the hallmark of the EU at its origins as envisioned by its founding fathers and sadly it is now in deficit. The EU institutions in Brussels so cherished by Germany’s interior minister and seen as the targets of terrorists and non-democratic regimes such as Putin’s, are not themselves models of democracy. Most of them in fact are not in Brussels but in Frankfurt, the banking capital of Germany and the de facto capital of the EU.

But the solutions to those deficits, which are fundamentally cultural and rational requiring a genuine knowledge of the European identity and its ideals, cannot be activated or even considered as policy because those making major economic decisions in Europe are not elected, often hold secret meetings, and automatically side with policies that favor Europe’s banking community.

The book has essentially one message: The Europe we have today is only a currency union, but what’s needed to address a crisis like the one that hit Greece and Portugal and Spain is a European Union that’s democratically accountable, the Europe as envisioned at the outset by the EU founding fathers whose visions went beyond the merely economic. Varoufakis masterfully describes the institutions of global capitalism, how they were formed, how they were gradually deformed, why they were deformed, the names and faces of those who played a role, why we have the European Union, arriving at the conclusion that the central problem in Europe at this moment in history is a democratic deficit underpinned by the banks totally running things and devaluing the true cultural values and the very identity of Europe.

For the ECB (The European Central Bank) it’s all about the money. So when Varoufakis, as finance minister, argued with the representatives of Greece’s creditors about how his country could not grow economically if all it’s doing is killing jobs to pay its debts, he discovered that the they, the ECB and Frankfurt, did not care a fig about all of that rational stuff. They just wanted their money. And the fact that he was making too many rational arguments cost him his job. The founding fathers of the EU must be turning in their graves.

In an interview with the American journalist and expert in foreign policy Farid Zakaria on Sunday’s CNN on the 9th of May, Veroufakis was asked if he thought that Europe was on the verge of falling apart. His answer was “no doubt about it unless urgent measures and democratic reforms are implemented.” Then he added that it is a great blunder to emphasize the break-up of the EU market and nationalism in the name of love of country (the “not in my backyard” phenomenon when it comes to the issue of refugees and solidarity) at the expense of the union as a whole, implying that in a true federalism people hang together or end up hanging separately, to use Franklyn’s metaphor in the revolution against the English. He also utilized the quip of another man who fought the English: Gandhi, who when asked if he saw anything good in the union of the British Empire replied that “it could have been a good idea.”

So Veroufakis, despite it all, remains optimistic about the EU and the global economy where we will all hang together or hang separately. Well he should, for the alternative may be to contemplate the abyss, and not just for his own people, the Greeks. But his Cassandra like warning has been sounded and sounded loudly. Let’s hope it has not been sounded to the wind. Let those who have ears, let them hear, for time is fast running out.

Professor Paparella has earned a Ph.D. in Italian Humanism, with a dissertation on the philosopher of history Giambattista Vico, from Yale University. He is a scholar interested in current relevant philosophical, political and cultural issues; the author of numerous essays and books on the EU cultural identity among which A New Europe in search of its Soul, and Europa: An Idea and a Journey. Presently he teaches philosophy and humanities at Barry University, Miami, Florida. He is a prolific writer and has written hundreds of essays for both traditional academic and on-line magazines among which Metanexus and Ovi. One of his current works in progress is a book dealing with the issue of cultural identity within the phenomenon of “the neo-immigrant” exhibited by an international global economy strong on positivism and utilitarianism and weak on humanism and ideals.

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Strong support of president Putin to Serbia

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Serbia was visited on June 3 by the first man of Russian Duma and one of the closest associates of the Russian President Vladimir Putin. The arrival of Vyacheslav Volodin in Belgrade just a few days after the brutal intrusion of Albanian special forces in the north of Kosovo and amid strong pressure on Serbia ahead of the announced meetings in Paris in early July, sends a clear message. That message could be heard at a special session of the Serbian National Assembly:

“Brotherly Serbian people, as always, can count on Russia’s help!”

This statement of Vyacheslav Volodin is extremely important because this was a message of Vladimir Putin to the Serbian people. As Vyacheslav Volodin pointed out, Vladimir Putin knew that he would speak in the Serbian parliament, so he personally sent greetings and words of support to Serbian people.

During the visit to Serbia, the Russian official praised Serbia`s economic improvement, adding that success is even greater since it has been achieved in dificult geopolitical circumstances. Vyacheslav Volodin, stated in Belgrade that the “intrusion“ of Kosovo`s special forces into the north of Kosovo was aimed at frightening the Serbs, establishing control there by force, adding that the Serbs could count on Russian help in future.

Also Volodin said that the UN Security Council Resolution 1244 should be respected. He stressed that Russia will not support the moves of the EU and the United States, that would lead to tensions.

“We believe that all parties must respect Resolution 1244, and those who do not, must be responsible. The interests of sovereign Serbia must be respected in accordance with international law,” Volodin said.

„The UN should express its stand. Its authority and also peace in the Balkans depend on its determination and concrete moves,“ Volodin also stated in Serbia`s Parliament. He criticised the European Union and US behaviour and added that „the absence of clear EU reaction to Pristina`s provocations raises doubt the bloc is capable to mediate in the Belgrade – Pristina dialogue on normalisation of relations. Volodin said that some states adopted a practise of double standards and openly interfere with the internal issues of other states.

“ We think that is unacceptable. It is necessary to confront that if we want to preserve our nation, country, its sovereignty and independence,“ Volodin said, mentioning Libya and Iraq as examples.

Speaking about the relation between the two nations, he said that the Russians, always felt they were obliged to help and protect the Serbs. Later, Volodin had a meeting with Serbian President Aleksandar Vucic and invited him to address Duma, next time when he visit Moscow.

Vucic accepted, saying it would be a great honor for him to talk about the relations between Serbia and Russia in front of Duma members.

Volodin  also announced that  Free Trade Agreement between the Eurasian Economic Union and Serbia can be signed by the end of the year. Currently, more than 800 companies with Russian capital operate in the territory of Serbia.

The message of Vyacheslav Volodin about Kosovo is in line with the message that President Vladimir Putin has been repeating for years.  The views of the President of Russia on the issue of Kosovo are not changing since the beginning of the crisis:

– February 2008 – The case of Kosovo is a terrible precedent that essentially breaks out the entire system of international relations, which was created not for decades, but for centuries.

– May 2018. – Vucic asked Putin to help Serbia in the UN and other international organizations, on what was answered that Moscow will actively monitor the talks between Belgrade and Pristina and the influence of various parameters on that issue.

–  January 2019 – Moscow is in favor of a mutually acceptable solution of Belgrade and Pristina, but based on UN Resolution 1244.

–  January 2019 – Resolution 1244 does not allow the existence of any armed formations in Kosovo other than the United Nations contingent.

However, despite the clear position of Russia on Kosovo, Serbian President takes a different policy. The goal of Aleksandar Vucic is the “demarcation” between Serbs and Albanians. And for a long time he has been secretly negotiating with the President of the self-proclaimed Kosovo Hashim Thaci. And, so far Vucic’s policy towards Kosovo has been catastrophic and has caused great damage to Serbian national interests.

By signing Brussels agreements, Vucic destroyed the defense of northern Kosovo, giving police and civil protection to Pristina. This denied the right of Serbs to self-defense, and he himself is not able to protect them. Recent events in the north of Kosovo, especially in Zubin Potok, are the direct result of the capitulation of the national and state policy of Serbian President Aleksandar Vucic towards Kosovo. Vucic aim is to force the Serbian people to accept an independent Kosovo. After recognition of Kosovo, Serbia would accelerate its full membership in NATO. Already today some associates of Aleksandar Vucic say that Serbia is surrounded by NATO, and that Serbia must adjust its policy according to the situation. If that were to happen it would be another geopolitical blow to Russia, which would be completely cut off from the Baltic to the Adriatic and the Black Sea. Therefore, NATO could further increase pressure on Russia.

 From our partner International Affairs

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Candidates for European Commission President: Who is who

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Photo: European Parliament

The race for President of the European Commission has got under way. According to the rules which are questioned by many in the European Union but have so far enjoyed majority support in the European Parliament, the new head of the “executive branch” of the European Union will be elected from among the “top candidates” (Spitzenkandidat) – those nominated by European parties which have factions in the European Parliament. A candidate will finally become President of the European Commission after he receives support from EU leaders in the European Council (the Council is currently headed by former Polish Prime Minister Donald Tusk, known for his paranoic attitude towards Russia) – this procedure should be over in June. A formal approval by the European Parliament should come next.

So who has the biggest chances and what are the political platforms of potential winners?

Judging by arithmetics, the leader of the European People’s Party (former Democratic Christians) faction in the European Parliament, Manfred Weber, is in the lead. His faction remains the largest, albeit smaller in number than before,  in Parliament – 180 members. A Bavarian,  Weber is 46 years old, and is considered to have been promoted by German Chancellor Angela Merkel. He seems to be at odds with his patroness Merkel, who supports the Nord Stream – 2 project. Last year he spoke out strongly against this project, which envisages the transportation of Russian gas to Western Europe across the bottom of the Baltic Sea: “I am against this project. It does not meet the interests of the European Union,” –  he said on April 23, 2018, in an interview with the Polska Times newspaper which was quickly picked up by news agencies.

However, analysts do not rule out a certain discrepancy of conduct on the part of Merkel, who continue to support Weber’s candidacy even after the above statement. Apparently, Merkel  has no intention of becoming the one responsible for  “burying” the Nord Stream,  which is so profitable for the German business. However, if this project is ruined by the head of the European Commission nominated by her, she will be able to get out of it safe. She would explain such a result by a “clash of opinions that is natural for democracy”.  Nord Stream-2 is the only project which the United States doesn’t approve but which Merkel supports in words. (Normally, in matters of principle, Angela Merkel does not tolerate any differences of opinion within the ruling team in the Federal Republic of Germany.)

However, as remarked by the EU Observer website, close to the Brussels-based globalist elite, Merkel may refuse to back Weber at the last moment – two Germans will not be allowed to occupy the two key positions in the EU – head of the European Commission and chairman of the European Central Bank. Moreover,  Merkel wants to put Jens Weidman, the current head of the Central Bank of Germany, in charge of the European Central Bank.

The second most likely candidate is Margrethe Vestager of the Liberals and Democrats for Europe (ALDE) party. The party’s faction, which has 109 members after the elections, is the third most powerful and is known for its anti-Russian position. The leader of the ALDE faction, Belgian Guy Verhofstadt, who is officially the main “spin doctor” of Mrs. Vestager, made a statement unacceptable from the diplomatic point of view on the global Internet resource Project Syndicate before the recent elections to the European Parliament. He accused his colleagues in the European Parliament – representatives of a number of sovereign European countries (Italy, Great Britain, Hungary)  – of being the “fifth column” of Russia in the EU. He said: “Just like the illiberalism of Hungarian Prime Minister Viktor Orban, the partnership between the European right and Vladimir Putin has been going on for too long.”

Vestager is the European Commissioner for Competition, who has been dubbed “Tax Lady” by President Trump, for her relentless pursuit of alleged monopolies in Europe. Simultaneously, Vestager calls for the extension of sanctions against Russia and for measures against Russian “energy monopolies” in Europe (what is implied by these words is easy to guess – the long demonized by European mass media Gazprom). For these views, Mrs. Vestager is openly admired by the British magazine The Economist, which came out on May 28, 2019 with the headline: “The Iron Lady of Politics from Denmark should lead the European Commission.”

Nevertheless, even Mrs. Vestager’s admirers admit in this issue of the magazine, as well as in other European media that she is unpopular in her home country, in Denmark. At home, Vestager’s candidacy for the highest post in the European Commission was publicly supported only by the leader of a “related” party – the head of the Danish Liberals Lars Lokke Rasmussen. Even Liberals and Social Democrats acknowledge that the EU was unable to protect Denmark from illegal migration,  so since 2016, Copenhagen has maintained “temporary” control on the border with countries of the Schengen zone. Naturally, a lady representing  the “ineffective” EU is unlikely to be loved at home.

Nevertheless, the structure of the current European Union does not require politicians to be popular at home in order to get a high-powered and financially attractive job in the European Commission. What presents interest in this regard is the opinion of Marlene Vind, a professor at the Faculty of Political Science at the University of Copenhagen: “The head of the European Council, Donald Tusk, just recently pointed out the need for gender balance in the EU, and this is a strong support for Vestager,” – Wind says. “Besides, you can be 100% sure that not a single Danish prime minister will say no if EU leaders offer a Danish woman such an important position in the EU.”

The third likely candidate with strong chances for success is Dutch Social Democrat, France Timmermans. A representative of the Labor Party of the Netherlands,former foreign minister of the Netherlands, and at present the first vice-president of the European Commission, he is known for his initiatives on sanctions against the Polish “retrogrades” from the “Law and Justice” Party. Timmermans can count on the support of 146 MPs from the Socialists and Democrats. In the early 1990s, he worked at the Dutch Embassy in Moscow, disseminating the “light of democracy” in Russia. Afterward he represented the Netherlands during an inquiry into the crash of the MH-17 aircraft over the Donetsk region in 2014.

From a foreign policy point of view, Timmermans represents the most exotic ideological trend in the European Union – he is dreading an “union of Putin and Trump,” which, along with the “rise of nationalist forces in Europe,” could destroy the EU.

In February 2017, already holding the post of European Commissioner Timmermans declared: “We are witnessing a hybrid war, we see it in Ukraine. Will the Baltic countries be next? We bear witness to the return of the threat of a nuclear war. …. And just imagine the Cuban missile crisis played out on Twitter between Presidents Trump and Putin,” – Timmermans said, addressing the Future Force conference. It is unlikely that anyone could have imagined it, but we could attribute it to the speaker’s wild fantasy.

The reverse of Timmermans’paranoic attitude towards Russia is the praise of the European Union, which he glorifies as a kind of unique “ecosystem” of the most civilized and peaceful nations of the planet. Probably, Mr. Timmermans forgot the “civilized” destruction of Yugoslavia by the “peaceful nations” of Europe.

This blend of “green” demagogy and the new “democratic” racism of the forces that won in the last Euro elections (they say Western Europeans are above  other nations thanks to “exclusively” European democratic institutions) is an ideology that is totally hostile to Russia.

The other candidates – Frenchman Michel Barnier, Czech Jan Zahradil and  “green” German Ska Keller – have few chances due to lack of strong factions in the European Parliament.

As it happens, in its relations with the EU Russia should not expect Brussels to change its position in the near future. But, as they say, eternity in politics does not last long. 

From our partner International Affairs

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Tensions in Kosovo: Russia closely monitors the situation

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Police of self proclaimed state of Kosovo launched raids in the early hours of Tuesday morning in the Serbs-majority north of Kosovo, sparking an angry reaction from Serbs.

More than twenty people have been arrested so far. Among those arrested is the chief of police of the village of Zubin Potok. A Kosovo police officer was wounded by a gunshot during the operation, but is not in danger of losing life. Two other officers were also injured, according to doctors in North Mitrovica.

Kosovo Police said that in Zubin Potok(north Kosovo), barricades were set up and tyres set on fire to deter police officers. Kosovo police also stated that the operation was launched to detain suspects who have allegedly been participating in or organizing criminal groups and have been involved in the smuggling of goods, misuse of official positions, bribery and trading in contraband. According to information the operation has nothing to do with the murder of Enver Zymberi, a policeman who was killed in the north of Kosovo eight years ago, nor with the investigation into the death of Kosovo Serb politician Oliver Ivanovic, who was murdered in 2018.

The head of the Serbian government’s office for Kosovo, Marko Djuric, said on Tuesday morning that the goal was to cause fear and panic.

“This morning, around 6am, special units of the ROSU (Regional Operational Support Unit) stormed in from three directions into the north of Kosovo, into the territory of all four (Serb majority) municipalities, with the aim of intimidating and provoking panic”, Djuric told Tanjug agency. He said that “separatists from Pristina have reached for more terrifying methods to scare Serbs” and want to “create an impossible climate for Serbs in Kosovo”. Meanwhile, Serbian President Aleksandar Vucic and the Interior Ministry ordered the Serbian Army to be put on full combat readiness, Tanjug reported. Tanjug also reported that Vucic launched “intensive diplomatic activities” over the raids.

“The president asked Western political authorities to control Pristina and let them know Serbia will not allow ethnic cleansing”, Tanjug said.

A Russian diplomat was also arrested. The Ministry of Foreign Affairs of Russia has stated that is unacceptable to arrest a Russia citizen in Kosovo, asking the UN mission in Kosovo for comprehensive information on his arrest and his release.

“The arrest was carried out regardless of the fact that Russian citizen has diplomatic immunity of UN staff. We consider this to be an unacceptable act as another manifestation of the provocation of the Kosovo-Albanian authorities, stated Maria Zakharova, the official spokesman of the Russian Ministry of Foreign Affairs.The Russian diplomat was released after the protest of Russian Government. However, according to unconfirmed information, he was beaten by the Kosovo Police.

The Russian State Duma instructed its Committee on International Affairs to closely monitor the situation in Serbia because of the intensification of the situation in Kosovo . On the occasion of the incidents in Kosovo, the Russian ambassador to Serbia Alexander Chepurin spoke.

“We strongly condemn the incursion of Kosovo Special Forces in Kosovo-Serb-populated areas. This is extremely dangerous and it’s not in line with all existing agreements, “said Chepurin on Twitter.

The Serbian Armed Forces are in fully combat readiness, and according to the information, its movement under full military equipment was also observed. Serbian combat jet Mig 29 flies over an administrative line with Kosovo.

“If there is any threat to order and the life of people in northern Kosovo, our army will protect our people,” stated Serbian president Aleksandar Vucic.

Concluding Thoughts

Russia is monitoring the situation in Kosovo and is ready to provide support to Serbia. The arrest and beating of Russian citizen Mikhail Krasnoshchekov, which is a member of the United Nations Interim Administration Mission in Kosovo, is actually a message to Russia by the West. As stated by the official representative of the Russian Foreign Ministry, Maria Zakharova, the incursion of special forces is another provocation and the establishment of control over the region by force:

” It is clear that such defiant behavior of Kosovars is a direct consequence of many years indulging from EU and the Uited States”,- stated Maria Zakharova.

However, an important role also has Serbian president Aleksandar Vucic. At yesterday’s session in the Serbian Parliament, the President of Serbia, as the basic message to the Serbian people, said that Serbia should accept independent Kosovo. In other words, Vucic is still fighting for demarcation, after which a small part of Kosovo would be left to Serbia. Otherwise, in his opinion, the Albanians will attack the Serbs in Kosovo. The defeatist attitude of the President of Serbia practically encouraged the Albanian separatists to take such a move which we can see today. It is precisely on the issue of Alexander Vucic’s policy towards Kosovo that Russia should take a stronger position. The Russian Foreign Ministry regularly repeats that for Russia the solution of the Kosovo problem is UN Resolution 1244. And this is the correct policy, which is in line with the Russian and Serbian national interests. However, Aleksandar Vucic, contrary to the will of the citizens of Serbia is pursuing his policy towards Kosovo.

  First published in our partner International Affairs

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