Connect with us

Europe

Is the European Union on the Verge of Dissolution?

Published

on

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.

Continue Reading
Comments

Europe

Is European humanity skin deep?

Published

on

At the border crossing between Ukraine and Moldova at Palanca, refugees stand in line. © UNICEF/Vincent Tremeau

When talking about security the most common line of thought tends to be war and the actors involved in the attack, however, all the people who had regular lives within those territories that are jeopardized are as important. With the increasing tensions and armed conflicts happening within the Twenty First Century, the movement of people searching for shelter has increased. More asylum seekers leave their home countries every single day and contemporary politics is still struggling to find a way to catch up. Europe, history wise, is the zone of the world that deals with more refugees wanting to enter the continent due to different factors: geography, proximity, democratic systems, level of development and more. Nevertheless, with the Russia-Ukraine conflict, true sentiments towards refugees are now being put on display.

Even though all refugees are fleeing their countries because their lives are in mortal danger, authorities and government officials do not seem to care. Processes to apply for the refugee status are getting harder and harder. In Europe, to apply for a refugee passport, people are asked for identifications, online questionaries and many other unrealistic aspects that if not answered correctly, the whole process is cancelled. It is ridiculous to believe that when people are scaping in order to stay alive, they will take under consideration all these requirements to receive help, sometimes even from neighboring countries. Which inevitably leads to the following question: why are refugees accepted based on the legality of their applications and not of their status?

By 2016, nearly 5.2 million refugees reached European shores, which caused the so called refugee crisis. They came mainly from Syria, Afghanistan, and Iraq: countries torn apart by armed conflicts. Similarly, with Russia’s invasion over the Ukraine in 2022, only few days deep within the fighting,  874,000 people had to flee their homes. Nonetheless, the issue seems to be that, for Europe, not all refugees are the same. When the refugee crisis in 2015 was declared, the European Union called for stopping and detaining all arriving refugees for around 18 months. There was a strong reluctancy from Europeans towards offering them shelter. On the contrary, countries such as Poland and Slovakia have said that Ukrainian refugees fleeing will be accepted without passports, or any valid travel documents due to the urgency of the situation. Therefore, stating with their actions, that Ukrainian refugees are more valuable or seem to be more worthy of help than refugees from Asia, Africa, or the Middle East.

Correspondingly, it is true that not all countries inside Europe deal and act the same way towards refugees, be that as it may, with the current refugee crisis it has been proved that they all share strong sentiments of xenophobia and racism. For instance, Hungary is a country that refused to admit refugees coming from outside Europe since 2015. In 2018, Prime Minister Viktor Orban described non-European refugees as “Muslim invaders” and “poison” to society, in comparison with Ukrainian refugees who are being welcomed without hesitation. In the same way, Jarosław Kaczyński, who served as Prime Minister of Poland and is the leader of the Law and Justice party, in 2017 said that accepting asylum seekers from Syria would be dangerous and would “completely change our culture and radically lower the level of safety in our country”. Furthermore, Germany in 2015 with Chancellor Angela Merkel in charged said that they would accept one million of Syrians. Although, as time passed, Europe’s solution was to make a deal with Turkey, who is not part of the European Union, to close the migrant route. Moreover, the promise of letting refugees integrate into German society was not fulfilled since. Seven year later, an impressive amount of refugees are still in camps and centers, with their lives frozen in time. Sadly, most European governments gambled towards the idea of sending them back once the armed conflict was over, without caring for the aftermath of war’s destruction.

The common narrative until now pushed by leaders, politicians, and mass media has been that Ukrainians are prosperous, civilized, middle class working people, but refugees coming from the Middle East are terrorists, and refuges from Africa are simply too different. Despite, refugees are all people who share similar emotions and struggle to grasp the fact that their lives may never be the same; having lost their homes, friends, family and so much more. Plus, being selectively welcomed based on their religion, skin color or nationality by the continent which’s complete rhetoric is universal rights, just adds another complex layer to the issue. Conjointly, the displacement of people due to war displays how regular individuals are always the ones who suffer the most in consequence to the interests of the few that represent larger powers. Hence, greed, envy, and cruelty are stronger than recognized, even in a developed continent such as Europe.

Continue Reading

Europe

What Everyone Should Know About Preventing Ethnic Violence: The Case of Bosnia

Published

on

Image source: srebrenica.org.uk

When the Balkans spiraled into violence and genocide in the 90’s, many wondered what caused this resurgence in militant ethnic nationalism and how a similar situation may be countered.

***

The 1990’s were a vibrant decade, that is unless you were living in the Balkans. 1995 was especially bad, as the 11th of July of that year marked the Srebrenica Massacre, which saw Serbian soldiers murder over 8,000 Bosnian Muslims over the span of two weeks. This shocked the world, as it was the first case of a European country resorting to extreme violence and genocide on ethnic lines since World War II. After World War II, the idea that a European country would resort to genocide was unthinkable. As Balkan nations continue to see the consequences of the massacre after over 25 years, it is increasingly evident that more needs to be done to curb ethnic violence.

We must first investigate key causes of ethnic violence. According to V.P. Gagnon, the main driver of ethnic violence is elites that wish to stay in power. Ethnic nationalism is easy to exploit, as creating a scapegoat is extremely effective for keeping elites in power. This is exactly what happened in Yugoslavia, which had previously seen high levels of tolerance and intermarriage in more mixed areas that saw the worst violence during the war. Stuart J. Kaufman argues that elites may take advantage of natural psychological fears of in-group extinction, creating group myths, or stereotypes, of outgroups to fuel hatred against them. While they may take different approaches to this issue, Gagnon and Kaufman agree that the main drivers of ethnic violence are the elites.

David Lake and Donald Rothchild suggest that the main driver of ethnic conflict is collective fears for the future of in-groups. Fear is one of the most important emotions we have because it helps secure our existence in a hostile world. However, fear can easily be exploited by the elites to achieve their personal goals. In a multiethnic society such as Yugoslavia, the rise of an elite that adheres to the prospects of a single ethnic group could prove dangerous and sometimes even disastrous. The destruction of Yugoslavian hegemony under Josip Broz Tito and the resulting explosion of ethnic conflict at the hands of Serbian elites in Bosnia underline this because of the immense fear this created.

Regions with high Serb populations in Bosnia sought independence from the rest of the country when they found themselves separated from Serbia by the dissolution of Yugoslavia. Republika Srpska was formed by these alienated Serbs. The leadership and elites in Serbia riled up the Serb population of Republika Srpska by stereotyping and demonizing Bosnian Muslims as “descendants of the Turkish oppressors”. This scared the Serbs in Bosnia so much so that they obeyed the elites of Serbia in supporting and fighting for the independence of Republika Srpska by any means necessary. As was seen in Srebrenica, they were not opposed to genocide.

We know how the elites fuel ethnic tensions to secure power as well of the devastating effects of these tensions reaching their boiling point. But what could be done to address ethnic conflict? David Welsh suggests that a remedy for ethnic conflict could be the complete enfranchisement of ethnic minorities and deterrence towards ethnic cleansing. This means that we must ensure that ethnic minorities are able to have a say in a democratic system that caters to all ethnicities equally. Fostering aversion to genocide is also vital toward addressing ethnic conflict because it is the inevitable result of unchecked ethnic conflict.

There is also the issue of members of ethnic groups voting for candidates and parties on ethnic lines. For example, in the United States, White American voters have shown to prefer White candidates over African American candidates, and vice versa. Keep in mind that the United States has a deep history of ethnic conflict, including the centuries-long subjugation of African Americans by White Americans.

Ethnic violence is horrifying and destructive, but it can be prevented. The first measure would be the establishment of a representative democracy, where members of all ethnicities are accurately represented. Another measure would be to make ethnic conflict and ethnic stereotyping taboo so that the average person would not resort to genocidal behavior once things go wrong. Lastly, making people feel secure is the most important step towards preventing ethnic conflict. If the people feel secure enough, they will not even need to think about ethnic violence. In short, while it is important to consider the differences of the various ethnic groups in a multiethnic society, it is vital that each group is kept represented and secure, free of any fears of subjugation.

While the case of Bosnia was extremely unfortunate, it provides an integral view into what could happen if perceived subjugation and fear of eradication reaches a breaking point. As was seen in Bosnia, ethnic violence can be extremely violent, resulting in untold suffering and death. That is why we must take necessary steps towards de-escalation and remediation of ethnic conflicts. These measures can, quite literally, save millions of lives.

Continue Reading

Europe

French Presidential Election 2022 and its significance for Europe

Published

on

Eugene Delacroix’s infamous painting “la liberté Guidant le Peuple” reminds the whole world of the July Revolution of 1830 that toppled King Charles X of France. The lady in the centre of the painting with the French tricolour still symbolizes the concept of liberty and reminds the whole world of revolutions and sacrifices made for freedom. France indeed has a long journey from revolting against “if they have no bread, let them eat cake” in 1789 to establishing a modern democratic society with the principles of “liberty, equality and fraternity”.  

France and the United States are rightly considered the birthplace of modern democracy. The French revolution taught the whole world lessons about revolution, freedom modern nationalism, liberalism and sovereignty. In 2022, France celebrates the 233rd year of Bastille Day which led to a new dawn in the French political system. From establishing 1ere Republique (1st Republic) in 1792, France has evolved and is currently under the 5eme Republique (5th Republic) under the constitution crafted by Charles de Gaulle in 1958.

Today, France is holding its presidential elections. As the French believe, ‘You first vote with your heart, then your head’, the first round of voting was concluded on Sunday 10th April and the Presidential debate on 20th April 2022. While the whole world waits for the 24th of April’s second round of elections and their results, this article attempts to understand the French electoral system and analyze Why French Presidential elections are important for Europe?

French electoral system

France is a semi-presidential democracy; the president is at the centre of power and Prime Minister heads the government. The president of the French republic is elected by direct universal suffrage where all French citizens aged 18 and above can vote, whether residing in France or not. In France, there is a two-round system in which voters vote twice on two Sundays, two weeks apart. This two-round system is widely practised in central and eastern Europe as well as Central Asia, South America and Africa.

In order to apply, a candidate needs 500 signatures of elected officials and they should be at least from 30 government departments. A candidate can be an independent or he or she can represent a political party. There is no limit to how many candidates can run for presidential elections. For instance, in 2002 there were 16 candidates, in 2017- 11 and in 2022 there are 12. While all the candidates have the right to equal media presence, the amount of spending on campaigns is also monitored; for the 1st round, the spending must not exceed 16.9 million euros and for the second round, it has been limited to 22.5 million euros.

This year, the 1st round of voting was concluded on 10th April while the second one is scheduled to be held on 24th April 2022. In the first round, all 12 candidates were eligible but for the second round, only two candidates who got the maximum votes are qualified for the second round.

A brief overview of French presidential candidates

Emmanuel Macron, five years ago at the age of 39, became the youngest French president of the French republic. In 2017, he broke the dominance of the two major French parties- Republicans and Socialists- by running a campaign “neither left nor right”. During the tenure of Emmanuel Macron, a hardcore centrist, France has witnessed a 7% GDP growth, unemployment dropped by 7.2% and the crime rate has fallen to 27%.

A far-rightist, Marine Le Pen is the other presidential candidate who succeeded her father, Jean-Marie Le Pen, as leader of the National Front (later National Rally) party in 2011. She was also contesting against Emmanuel Macron during the 2017 elections and before that in 2012, against Nicolas Sarkozy and Francois Hollande. While she embraced the party’s anti-immigration stance, she rebranded the party’s Euroskepticism as French nationalism.

This year, in the April 2022 elections, the current President of France, Emanuel Macron and far-right leader, Marine Le Pen are the two candidates with Macron running ahead with a lead of 4.7 per cent votes (Emmanuel Macron-27.8% & Marine Le Pen- 23.1%).

Why French Presidential elections are important for Europe?

While European defence is primarily assured by the US-led NATO military alliance, of which most EU states are members, French president Macron said,  “Europe needs to finally build its own collective security framework on our continent…”, advocating for a ‘European Security’ framework amid tensions with Russia over Ukraine.

On the other hand, Le Pen’s party has been looked upon suspiciously that it might have received financing from a Russian bank connected to the Russian President Putin. In an interview with French public radion, Le pen said, “It will be necessary diplomatically, when the war [in Ukraine] is over, when a peace treaty has been signed, to try to avoid this tie-up which risks being the largest danger of the 21st century for us,” she even further added, “Imagine … if we let the first producer of raw materials in the world — which is Russia — [create an alliance] with the first factory of the world — which is China — to let them perhaps constitute the first military power of the world. I believe that it’s a potentially great danger.” These statements only further reinforce the claims that Le Pen is more pro-Russia.

While Macron is anti-Brexit, Le Pen, on the other hand, has been known for her ‘Frexit’ plan, meaning, that she wanted France to leave the EU and abandon the euro. However, during the 2022 elections, it appears that Le Pen has softened her stance on Frexit. Another important issue pertaining to immigration has been significant not only for France but the whole of Europe. This issue of immigration is directly linked with the “economic and cultural concerns” which raises an important worry about immigrants’ socio-political and economic integration into the French society and abiding by the principle of laïcité (secularism with French characters).

As for Macron, he wants to create a “rapid reaction force” to help protect EU states’ borders in case of a migrant surge and is also pushing for a rethink of the bloc’s asylum application process. Macron also said that he urges the EU to be more efficient in deporting those refused entries. On the other hand, Marine Le Pen during her campaign stated, “I will control immigration and establish security for all.” It is pertinent to note that Macron has introduced strict laws pertaining to immigration and controlling Islamic radicalization. For instance, he introduced the bill to ban foreign funding to mosques.

What is more interesting to mention is the concerns about ‘energy’ in the presidential election. Evidently, the ongoing conflict in Ukraine has gained more attention on the economic and geopolitical consequences of existing national and European energy supply chain choices. In France especially, there is a major rift between the pro and anti-nuclear power fractions. Interestingly, France has the second most nuclear power stations in the world after the United States.  Besides, in the last week of the elections, Macron has been attempting to win the hearts of the French voters with his proposal for a “complete renewal” of his climate policy. He has also promised to build up to 14 nuclear reactors by 2050 and regenerate existing plants. Meanwhile, Le Pen has promised to build 20 nuclear plants and aim to have nuclear power provide 81 per cent of France’s energy by 2050. While the current president Macron and far-right candidate Le Pen have both committed to the 2015 Paris Agreement to limit global warming, it is evident that their approaches differ particularly on energy. Since France is Europe’s second-biggest economy, France’s climate policy could echo right across the EU.

Besides, in light of the ongoing Russia-Ukraine crisis, Macron has played a significant role as he is the bridgehead for Russia and the US. He has also negotiated talks between Washington DC and Moscow and has also condemned the crisis by making the statement, “Russia is not under attack, it is the aggressor. As some unsustainable propaganda would have us believe, this war is not as big as the battle against, that is a lie.” Indeed, he has played the role of Europe’s de-facto leader vis-à-vis the Ukraine crisis. Nonetheless, with a marginal win in the first round against Marine Le Pen, winning the 2nd term is not as easy as it was five years ago.

More importantly, it is pertinent to note that France has the 2nd strongest military and 2nd biggest economy in Europe, further the 5th biggest economy in the world. France is not only the most visited country in the world but also ranks 1st in the global soft power index. It is also the founding member of the United Nations Security Council, North Atlantic Treaty Organization and the European Union which makes it an important player in European politics. Consequently, the policies of the French leadership not only direct the political, social and economic lives of the French but also reverberate in Europe.

Continue Reading

Publications

Latest

Finance54 mins ago

Post-COVID, Latin American Leaders Say their Countries Are Open for Business

Rising food and energy prices and a migration crisis are posing significant economic and social challenges in Latin America, according...

Americas3 hours ago

The WW III that Biden and All Other Neocons Are Leading U.S. Toward

The intensely neoconservative U.S. President Joe Biden is leading the world into a World War III against both Russia and...

Health & Wellness5 hours ago

Health Leaders Stress Need for Coordinated Global Response to Tackle Pandemics

Improved global coordination and regional capacity building will help ensure the world is better prepared for the next pandemic, said...

World News6 hours ago

‘New dawn’ for Europe as War in Ukraine Strengthens EU and Support for Enlargement

The European Union surprised the world, and even itself, with the speed, scale and unity of its response to Russia’s...

Health & Wellness7 hours ago

New Accord to Improve Health and Vaccine Equity for 1.2 Billion People in Lower-Income Countries

A groundbreaking initiative launched today at the World Economic Forum Annual Meeting in Davos 2022 aims to greatly reduce the...

Tech News7 hours ago

New Initiative to Build An Equitable, Interoperable and Safe Metaverse

The World Economic Forum announced today a new initiative, Defining and Building the Metaverse. The initiative brings together key stakeholders...

World News9 hours ago

Geopolitical Crises Forcing Leaders to Face up to Difficult New Realities

Poland’s President Andrzej Duda delivered a harsh rebuke to Russia over its invasion of Ukraine, pledging “100% support” for President...

Trending