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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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Whistleblower protection: EU Commission sets new, EU-wide rules

MD Staff

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Recent scandals such as Dieselgate, Luxleaks, the Panama Papers or the ongoing Cambridge Analytica revelations show that whistleblowers can play an important role in uncovering unlawful activities that damage the public interest and the welfare of our citizens and society.

Today’s proposal will guarantee a high level of protection for whistleblowers who report breaches of EU law by setting new, EU-wide standards. The new law will establish safe channels for reporting both within an organisation and to public authorities. It will also protect whistleblowers against dismissal, demotion and other forms of retaliation and require national authorities to inform citizens and provide training for public authorities on how to deal with whistleblowers.

First Vice-President Frans Timmermans said: “Many recent scandals may never have come to light if insiders hadn’t had the courage to speak out. But those who did took enormous risks. So if we better protect whistleblowers, we can better detect and prevent harm to the public interest such as fraud, corruption, corporate tax avoidance or damage to people’s health and the environment. There should be no punishment for doing the right thing. In addition, today’s proposals also protect those who act as sources for investigative journalists, helping to ensure that freedom of expression and freedom of the media are defended in Europe.”

Věra Jourová, Commissioner for Justice, Consumers and Gender Equality added: “The new whistleblowers’ protection rules will be a game changer. In the globalised world where the temptation to maximise profit sometimes at the expense of the law is real we need to support people who are ready to take the risk to uncover serious violations of EU law. We owe it to the honest people of Europe.

Whistleblowers can help to detect, investigate and sanction abuses of EU law. They also play an important role in enabling journalists and the free press to play their fundamental role in our democracies. That is why whistleblowers need proper protection against intimidation and/or retaliation.Citizenswho uncover illegal activities should not be punished as a consequence of their action. But in reality, many of them pay for their action with their jobs, their reputation or even their health: 36% of workers who reported misconduct experienced retaliation(2016 Global Business Ethics Survey). Protecting whistleblowers will also help safeguard freedom of expression and media freedom, and is essential to protect the rule of law and democracy in Europe.

Protection for a wide range of EU law breaches

Today’s proposal ensures EU-wide protection for blowing the whistle on breaches of EU legislation in the fields of public procurement; financial services, money laundering and terrorist financing; product safety; transport safety; environmental protection; nuclear safety; food and feed safety, animal health andwelfare; public health; consumer protection; privacy, data protection and security of network and information systems. It also applies to breaches of EU competition rules, violations and abuse of corporate tax rules and damage to the EU’s financial interests. The Commission encourages Member States to go beyond this minimum standard and establish comprehensive frameworks for whistleblower protection based on the same principles.

Clear Mechanisms and Obligations for Employers

All companies with more than 50 employees or with an annual turnover of over €10 million will have to set up an internal procedure to handle whistleblowers’ reports. All state, regional administrations and municipalities with over 10,000 inhabitants will also be covered by the new law.

The protection mechanisms will have to set up must include:

  • Clear reporting channels, within and outside of the organisation, ensuring confidentiality;
  • A three tier reporting system of:
  • Internal reporting channels;
  • Reporting to competent authorities – if internal channels do not work or could not reasonably be expected to work (for example where the use of internal channels could jeopardise the effectiveness of investigative actions by the authorities responsible);
  • Public/media reporting – if no appropriate action is taken after reporting through other channels, or in case of imminent or clear danger to the public interest or irreversible damage;
  • Feedback obligations for authorities and companies, who will have to respond and follow-up to the whistleblowers’ reports within 3 months for internal reporting channels;
  • Prevention of retaliation and effective protection: all forms of retaliation are forbidden and should be sanctioned. If a whistleblower suffers retaliation, he or she should have access to free advice and adequate remedies (for example measures to stop workplace harassment or prevent dismissal). The burden of proof will be reversed in such cases, so that the person or organisation must prove that they are not acting in retaliation against the whistleblower. Whistleblowers will also be protected in judicial proceedings, in particular through an exemption from liability for disclosing the information.

Effective Safeguards

The proposal protects responsible whistleblowing genuinely intended to safeguard the public interest. It therefore includes safeguards to discourage malicious or abusive reports and prevent unjustified reputational damage. Those affected by a whistleblower’s report will fully enjoy the presumption of innocence, the right to an effective remedy, a fair trial, and the right of defence.

Background

Protection given to whistleblowers across the EU is currently fragmented and uneven. Only 10 EU Member States currently ensure that whistleblowers are fully protected. In the remaining countries, the protection granted is partial and only applies to specific sectors or categories of employee.

The Commission’s proposal builds on the 2014 Council of Europe Recommendation on Protection of Whistleblowers, which recommends that “member states have in place a normative, institutional and judicial framework to protect individuals who, in the context of their work based relationship, report or disclose information on threats or harm to the public interest” and sets out principles to guide states when introducing or reviewing such frameworks.

The Council encouraged the Commission to explore the possibility of future EU action in its Conclusions on Tax Transparency of 11 October 2016. Civil society organisations and trade unions have consistently called for EU-wide legislation to protect whistleblowers acting in the public interest.

The Commission committed to take action to protect whistleblowers, as journalist sources, at the second Annual Colloquium on Fundamental Rights in November 2016, which was on the theme of ‘Media Pluralism and Democracy’.

Strengthening whistleblower protection also gives effect to the Commission’s commitment to put a stronger focus on enforcement of EU law, as set out in its 2016 Communication on EU Law: Better Results through Better Application

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Will the EU split into the East and the West?

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On March 1, 2018 the European Parliament has adopted a resolution initiating a disciplinary procedure against Poland. Warsaw is accused of violating a number of fundamental democratic principles of the EU. If the Polish government does not agree to make concessions, the country may for a time be deprived of the right to vote in the European Council.

The problem is that to implement such a decision, the consent of all EU member-states is needed. Meanwhile, Hungary, against which charges of the same kind have been brought, can block sanctions against Warsaw.

According to many observers the increased tensions within the EU reflect not just the “growth of nationalistic sentiments” across Europe. Analysts, as well as high-level politicians, including French President E. Macron, are already openly talking about the EU’s moving towards “Europe of two speeds”. How serious is the threat of increasing contradictions between Europe’s east and west?

The “right”, “anti-liberal” turn has been observed in Europe for the last 20-25 years and not only in the new EU members but throughout the continent. According to the BBC  in 2000 the average share of those who voted in the European countries for “populists” was 8%, at present it is about 25%. Michael Abramowitz and Nate Schenkkan of The Foreign Affairs note that now Islamophobia, “persecution of NGOs”, stiff rejection of EU policies  and fear of migration  play a key role in strengthening the positions of conservative and nationalist politicians -“populists” not only in Hungary, Poland, Austria and the Czech Republic. Similar ideas are spreading rapidly in the political discourse of almost every European country. More and more often “populists” are becoming potential partners in forming coalition governments. Thus, many political forces in Central and Eastern Europe, are increasingly rejecting the “EU pressure” because it is associated with sovereignty restrictions.

The embodiment of these trends was a series of political upheavals that occurred in Europe in 2017. First, both system-forming parties – the Socialists and the Republicans – suffered a crushing defeat in the French presidential and parliamentary elections. Then  to the unexpected surprise of most observers the “most serious political crisis since the unification” began in Germany – negotiations for the creation of the ruling coalition lasted more than 6 months, ending only in March 2018. Finally, in December 2017, a new government was formed in Austria, which included the conservative People’s Party and the far-right Freedom Party. Clearly there is no talk about Vienna’s withdrawal from the EU. Nevertheless, the new Austrian ruling coalition has its own idea of the ways of reforming the EU – a very different one from the approaches of Germany and France. Chancellor Sebastian Kurz does not conceal his desire to limit the EU’s spheres of influence. Some commentators say that by this he strongly resembles some of his colleagues in Central and Eastern Europe, also dissatisfied with attempts to centralize power, undertaken by Brussels.

The highlight of the clash between different concepts of the European Union’s future was the judicial proceedings initiated by the European Commission against Poland “for political interference in its justice system” on December 20th, 2017.

In these conditions, on the one hand, both the new cabinet of Merkel as well as the French president who is facing ever greater resistance to his ambitious reform plans have even more serious doubts regarding the ability to “initiate the process of renewal of the European Union”. On the other hand, “the events which happened in the end of 2017 in Brussels, Budapest, Warsaw, Prague and Vienna are the unambiguous alarming evidence that the EU encounters an existential dilemma in confronting the nationalist leaders of Central Europe led by Poland and Hungary“. Meanwhile, the Euro zone crisis and the Brexit remain on the agenda. As a result, the well-known Russian expert Fyodor Lukyanov says: Europe turns to itself, and “the future of the continent” has not been so vague from the middle of the 20th century. ”

Political contradictions are closely intertwined with the economic ones. The work of well-known economists Filip Novokmet, Thomas Piketty and Gabriel Zucman published in 2017 bluntly call Eastern European nations “foreign-owned countries”. On the one hand, a stable inflow of investment provides economic growth and high employment. On the other hand, such a high dependence on foreign capital in the economy is fraught with serious shocks, in case a country, for some reason, loses its investment attractiveness. As historical examples show, the “flight” of foreign investors, as a rule, provokes a surge of unemployment, a deep decline in the economy,  collapse of the banking system.

Meanwhile, after the UK leaves the European Union the annual budget of the EU will decrease by at least 10 billion euros. In this regard, the issue of decreasing subsidies to member countries, which will primarily affect the poorest countries, is being actively discussed. This “foreshadows yet another clash of the east and west of Europe.” Moreover, “some countries were told that their rejection of liberal values might be the reason to reduce their subsidies”. In response, the leading countries of Central and Eastern Europe “unequivocally say to Brussels: we are not your colonies”. In these conditions, “the Battles of Eastern and Western Europe threatens to slow down, or even completely slash to zero, a decade and a half of integration processes, and in a broader sense raises the question: is the EU united on the basis of common economic interests or common values?”

At the same time, the issue of Poland, Czech Republic or Hungary leaving the EU is not on the agenda. There are no objective reasons for this. The current CEE leaders largely owe their popularity to high rates of economic growth, the key factors of which are EU subsidies and foreign investments. Membership in the European Union is very beneficial for Eastern Europeans, as they receive more from Brussels than they give. Especially when it comes to issues of political and economic security. Formal belonging to the “West”, one of the main symbols of which is Schengen, is also very important for the overwhelming majority of citizens of these states from the psychological and philosophical point of view. The EU will also not give up Eastern European members, since the economic benefits of investing in growing economies, as well as export earnings to Central and Eastern Europe, are one of the main sources of growth for the whole Union. In addition, the experience of recent years has shown that with the problems of “Romanian corruption”, “Hungarian authoritarianism”, “Polish attacks on courts” and border disputes, like the Slovenian-Croatian one, “it is much easier to fight when the country is already included in pan-European structures,” Maxim Samorukov of the Russian Carnegie Center says.

The problem is that Brussels seems to have chosen a strategy that is very risky in the current circumstances, designed to “restore  the Union’s  self-confidence” – through a new expansion. In February 2018, the president of the European Commission, Jean-Claude Juncker, announced the strategy of joining the EU (until 2025) of at least some of the six states of the Western Balkans. According to Brussels’s plan the admission of new members should convince the rest  to abandon the privileges of individual countries and delegate more authority to the “center.” The question is about taking decisions not by consensus but by the majority, as well as about developing mechanisms for monitoring compliance with common rules by member-states and punishing violators. The ultimate goal is “supranational institutions that will gradually take away key functions from the least competent national governments“.

However, experts at the American think tank Stratfor say that “the enthusiasm for the EU enlargement has largely dried up”. Besides, the Eastern European capitals are hardly to like the real goal of the EU reform, for which the leading “old” members of the club advocate – to minimize the chances of the CEE countries to play on the contradictions between the world powers. And even if those who believe that “at the heart of all such games there is always a desire to knock out as many financial preferences as possible from the European Union are right,” the population of Central and Eastern Europe is experiencing a growing anxiety and irritation as a result of realization that, if such trends continue in the politics of Brussels, the dreams of “life as in the West,” under whose auspices people often had to give up their national interests, will never come true. Meanwhile, to succeed in global competition, there is a need to limit or even reduce the “main achievement of the European” welfare society “- its social systems. This is increasingly spoken about in the old EU members.

Only time will tell whether the trends analyzed above are long-term.

If most of the CEE countries will not get rid of the “restricted, one-sided point of view”, according to which their national interests do not go beyond their state borders, then the ideas of the “all-European home” will remain only beautiful slogans for both the society and a large part of the ruling class. The real policy will remain at the level of “tactical pragmatism”, which will focus on those slogans and ideas, which at the moment are most in demand by voters. Even if it is a question of EU-scepticism and national populism. Probably, in the center and the east of the EU, a “new Eastern bloc” will be formed – led by the countries of the Visegrad Group (Hungary, Poland, Czech Republic, Slovakia), but not limited to it. The countries of this “bloc” will promote the idea of the “Europe of Nations”: the transformation of the European Union into a confederation of independent states, united by a common free trade zone and “a few  supranational functions.”

Thus, tensions between the east and the west of the European Union threaten to become its main headache in the coming years. “Pessimists predict the emergence of situational alliances within the EU that threaten to paralyze the work of its political institutions,” the BBC said. Thus, the initiative to expel Russian diplomats in connection with the “Skripal affair” in the end of March 2018, among other EU member states, was not supported by Austria and Slovakia. On the whole we can assume that the evolution of the future European order has only just started and will continue for several decades.

First published in our partner International Affairs

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How Can Parity Be More Proportional?

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International diplomats located in Bosnia-Herzegovina have recently launched an initiative requesting the Parliament of one of Bosnia-Herzegovina’s two entities, the Federation, to reconstitute its upper chamber, the House of Peoples, in line with „more proportional representation“. Yet, how can representation in the House of Peoples be more proportional, when already based on the principle of parity? Sounds absurd, doesn’t it? Representation can be based either on the principle of proportionality or on the principle of parity. When based on the principle of parity, it cannot possibly be more proportional. Moreover, such an initiative encroaches on the sovereign right of that very Parliament to constitute and reconstitute itself, without external interference.

Indeed, what does sovereignty mean in the present-day Bosnia-Herzegovina? In the rest of Europe it has been adopted, almost axiomatically, in the traditions of both Locke and Rousseau, that sovereignty is indivisible and inalienable. For, the will of the people, as the expression of sovereignty, can not be divided; otherwise, it ceases to be the will of the people and becomes a collection of individual wills and then the people can only be a collection of individuals. Also, sovereignty can not be alienated from its bearer: power may be transferred, but not will; it is impossible for any organ to exercise the sovereign will save the sovereign body itself. The state, as a state, can no more alienate its sovereignty than a man can alienate his will and remain a man. There is but one possible bearer of sovereignty, the people.

In Bosnia-Herzegovina, it has been accepted, no less axiomatically, in the tradition of its long-negotiated partition sponsored by international envoys, that this country’s sovereignty can easily be divided, alienated from its people as a whole and transferred to its constituent ethnic elements and then consumed by its three ethnic oligarchies in the form of unrestrained political power over the pieces of territory assigned to them in the process of partition. Actually, such a divided sovereignty is treated as transferred to these oligarchies and consumed in the form of their private property over the resources found on the given pieces of territory.

Thus, whereas sovereignty is elsewhere treated as generated by a contract signed by free individuals, who thereby constitute themselves as the people and sovereignty as their general free will, in Bosnia-Herzegovina sovereignty is treated as dissolved by a contract signed, under the auspices of international envoys, by its three major ethnic groups, renamed for that purpose as ‘constituent peoples’, who thereby construct only a provisional state structure with no declared or acting bearer of sovereignty. ‘Constituent peoples’ are perceived as the contractors who should presumably be represented on the basis of the principle of parity in the parliamentary institutions, on the levels of both state and its two ‘entities’ (Federation of BiH and Republika Srpska), and it is only their three wills that are taken into account, although even they are not treated as sovereign, either, but only as dependent on each other’s acquiescence.

Moreover, yet another part of the country’s divided sovereignty has been transferred to the so-called High Representative (a diplomat appointed by major international powers), whose will may reign supreme over particular wills of the oligarchies claiming to represent their respective ‘constituent peoples’. In this sense, as a part of the country’s Constitution, the High Representative comes closest to the notion of the sovereign, although in practice this person rarely exercises his will and imposes his decisions on the three oligarchies in question. Still, the position in the Constitution makes the High Representative irremovable from the country’s legal structure, in spite of the permanent efforts of the three ethnic oligarchies to eliminate this potential threat to their unrestrained power.

Yet, is such a multiple division and transfer of sovereignty truly a part of the Bosnian Constitution, or it is rather an arbitrary interpretation of the country’s constitutional structure by both foreign diplomats and local politicians? In the preamble of the country’s Constitution one can really find its sovereignty divided among several different categories, positioned as sovereignty’s bearers:

Bosniacs, Croats, and Serbs, as constituent peoples (along with Others), and citizens of Bosnia and Herzegovina hereby determine that the Constitution of Bosnia and Herzegovina is as follows.(The Dayton Peace Agreement, Annex 4, The Constitution of Bosnia-Herzegovina)

A similar formula can be found in the Washington Agreement (1994), which preceded the Dayton Peace Agreement (1995) and served as the basis for creation of the Federation of BiH, as one of Bosnia’s two entities:

Bosniacs and Croats, as constituent peoples (along with Others) and citizens of the Republic of Bosnia and Herzegovina, in the exercise of their sovereign rights, transform the internal structure of the territories with a majority of Bosniac and Croat population in the Republic of Bosnia and Herzegovina into a Federation, which is composed of federal units with equal rights and responsibilities.

Here sovereignty is divided between Bosniacs, Croats and others – whatever their ethnic identity or a lack of identity – and they are all treated as possessing a double identity,first as constituent peoples and then as citizens of the Republic of Bosnia and Herzegovina. For, the form ‘constituent peoples (along with others)’ presupposes that ‘others’ – whatever their ethnic identity or a lack of identity – are also to be treated as ‘constituent peoples’, along with Bosniacs and Croats. By analogy, Bosniacs, Croats, and Serbs, along with Others, are to be treated as both ‘constituent peoples’ and ‘citizens of Bosnia and Herzegovina’ in the Dayton Peace Agreement’s Annex 4.But who can actually be proclaimed the bearer of sovereignty on the basis of these two constitutional acts?

Following the modern theories of sovereignty mentioned above, if sovereignty is to be regarded as indivisible and if, accordingly, there can be only one bearer, then the bearer must be the citizens of Bosnia-Herzegovina, acting as a whole. Then the ‘constituent peoples’ (Bosniacs, Croats, and Serbs, along with Others) are to be understood simply as the constituent elements of the whole, which cannot be treated as multiple bearers of sovereignty. And then the citizens may be represented in a unicameral parliament, founded on the principle of proportionality.

On the other hand, if we take sovereignty as divisible, the ‘constituent peoples’ maywell be regarded as its multiple bearers. Then, however, these ‘constituent peoples’ are not to be reduced only to Bosniacs, Croats and Serbs: the preambles used in both of these constitutional documents suggest that the category of Others is to be regarded as equal to the categories of Bosniacs, Croats and Serbs.

Constitution makers, obviously, had no clear answer to the question of sovereignty’s (in)divisibility in the case of Bosnia-Herzegovina: instead of a formulation that would follow the principle of sovereignty’s indivisibility (for example, „Bosniacs, Croats, and Serbs (along with Others) as citizens of Bosnia-Herzegovina“), they introduced the ‘constituent peoples’ as parallel to the citizens of Bosnia-Herzegovina and thus proposed a form of shared sovereignty between the citizens and the ‘constituent peoples’. This shared sovereignty is reflected in the structure of the parliamentary institutions of Bosnia-Herzegovina and both of its entities: all the parliaments are bicameral, the lower chambers representing the citizens on the basis of election results in accordance with the principle of proportionality, and the upper chambers representing the ‘constituent peoples’ on the basis of the principle of parity.

Yet, even such relative consistency has ceased to exist in the practical implementation of these two principles. In the the upper chamber of the Parliamentary Assembly of Bosnia-Herzegovina, the House of Peoples, the principle of parity is applied only to representatives of Bosniacs, Croats and Serbs (each represented with 5 seats), while Others are totally absent, as if they do not exist in the Constitution’s preamble among ‘constituent peoples’, along with Bosniacs, Croats and Serbs. In the upper chamber of the Parliament of the Federation of BiH, the House of Peoples, the principle of parity is again applied only to representatives of Bosniacs, Croats and Serbs (each represented with 17 seats), while the number of representatives of Others is arbitrarily reduced to only 7 seats, as if Others are not to be found among ‘constituent peoples’ in the Constitution’s preamble, along with Bosniacs, Croats and Serbs, and as if the principle of parity can be applied selectively or in some reduced manner. Similarly, in the upper chamber of the Parliament of Republika Srpska, the Council of Peoples, parity is applied again only to Serbs, Bosniacs and Croats (each represented with 8 seats), while Others are represented with only 4 seats, as if they have not been put into the category of ‘constituent peoples’, along with Serbs, Bosniacs and Croats. In other words, even if we theoretically accept the possibility that sovereignty may be divided between the ‘constituent peoples’ and the citizens of Bosnia-Herzegovina, such shared sovereignty is in its constitutional implementation distorted to such an extent that only Bosniacs, Croats and Serbs are recognized as ‘constituent’, whereas Others are sometimes treated as partially constituent, with a reduced number of seats, and sometimes as non-constituent, that is, practically non-existent!

Obviously, when the principle of parity is applied in such a selective manner, it ceases to function as parity. Otherwise, Others would be represented in all these parliamentary institutions on the basis of parity, along with Bosniacs, Croats and Serbs. And then, it only means that Others have been permanently discriminated in the political reality of Bosnia-Herzegovina and that such a constitutional discrimination must be removed if the model of shared sovereignty is to be applied at all. If not, then full sovereignty must be given back to the citizens of Bosnia-Herzegovina, regardless of whether they link their identity to any of its ethnic groups or not. And that has to be reflected in the structure of all its parliamentary institutions: the Houses of Peoples should be abolished and the parliaments should then become unicameral, so that only the citizens would be represented in the Houses of Representatives, based on the principle of proportionality and the principle one person/one vote. Of course, for that purpose the country should get a new constitution, adopted by its own Constitutional Assembly, instead of the one tailored in such an inconsistent (and theoretically problematic) manner by foreign diplomats as a part of the international peace treaty.

However, the international diplomats calling for „more proportional representation“  obviously do not distinguish between, and directly mix up, the principle of proportionality and the principle of parity. They assume that the House of Peoples in the Parliament of the Federation of BiH is based on the principle of proportionality, and ask for more proportionality, although it is clear that parity is its sole founding principle. For, political representation can either be proportional, reflecting the proportion of actual votes for actual political parties and candidates, or it can be based on parity, reflecting the parity between the constituent elements of the entire constituency (presumably, of the country’s population as a whole). As already noted above, it is the principle of parity in the House of Peoples that has been violated by under-representation of Others: while Croats, Bosniacs and Serbs are all represented with 17 seats in this House, Others are represented with only 7 seats. Yet, the diplomats do not pay any attention to this violation of the constitutional principle of parity. Instead, they suggest the Parliament to adopt even „more proportional representation“ in its upper chamber (which, in practice, can only be over-representation of one of the groups already represented in line with the principle of parity), so as to even further undermine its founding principle of parity, already violated by the existing under-representation of Others!

Such a legal absurdity is certainly unsustainable and can only lead to the total dissolution of the existing constitutional order in Bosnia-Herzegovina, already distorted by the abandonment of the principle of indivisibility of sovereignty and further undermined by the selective implementation of the principle of parity in the parliaments’ upper chambers. This brings us to a crucial point: either the parliamentary structures in Bosnia-Herzegovina will follow the logic of this request, abolish the existing provisional constitutional order and leave the country without any constitutional order whatsoever, or they will abolish this constitutional order and establish a non-provisional one, based on the principle of sovereignty’s indivisibility, reflected in a unicameral parliament, representing only the citizens of Bosnia-Herzegovina as a whole, regardless of their ethnic identity or a lack of it.

It is up to the parliamentarians. They may follow the principle of sovereignty as applied in the rest of the European countries, or obey the diplomats’ request, whatever the price for the country’s constitutional order. As for the diplomats, whoever they are, one should finally ask whether they would ever apply in their own countries any of the models they advocate for Bosnia.

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