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The rationale of foreign policy

Giancarlo Elia Valori

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From the 1970s onwards, politics has undergone a very extensive and thorough conceptual transformation. I am not referring to the usual and trivial issue of the “crisis of ideologies” or the end of Right or Left all-encompassing narratives. Nevertheless the idea that the post-modern world – which was already on the horizon at the time – could do without what Wittgenstein called “super-orders of super-concepts” has been currently  wiped out by reality.

On the current political and philosophical scene there are much greater super-orders than those typical of the bipolar world.

Just think of the post-modern politics derived from Nietzsche’s philosophy or of the wide-ranging issue arising from the confrontation between the Western, secular and religious models and those typical of Islam (and the Chinese traditional culture).

Hence the first point to raise is that technique – positivistically regarded as an objective practice not influenced by value judgements – cannot even define its aim and its  scope of  action.

In fact, if we resort to a procedure to solve a specific political and social problem and we use only the technique, I cannot even define it and hence solve it. Where does the impact of new robotic technologies start and end? There is no limit that can define it materially. Hence each technique has its own defined set of values and every application of tèchnè is subjected to a series of conceptual, philosophical, historical and ideal approvals that are not written in the procedure, but are always there anyway.

If we had no philosophical criterion for defining social justice, we could equally accept the “Obamacare” or the Italian National Health System (NHS), but these are two radically different choices. Hence which  is the “health policy” par excellence?

Furthermore, the concept is always based on the recognition of its limit, which is not only applicative, but also descriptive. A limit we cannot define beforehand, but must be checked against reality, by applying the concept in a semi-casual way.

A thing is that thing and not another. If we lose sight of the designation of the idea – and hence of its natural limit – we have not a concept, but a flatus vocis identifying at least two different – and, maybe, opposing – things with the same sign. Hence the idea that in current politics there are no longer  effective conceptual limits is not just a resource of propaganda, but a real practical and ideal limit.

Unemployment cannot be solved with the “social wage” because its cost is borne by those who still work and pay taxes. The education crisis cannot be solved by making school curricula even easier, since this makes them even more useless. Unfortunately, however, a paradox prevails in all the current governments’ standard political procedures.

It is the paradox of the parts and the sum of these parts. I may also think  that Rosso Fiorentino’s “Deposition from the Cross” is just a set of brush strokes, but I can never exactly reproduce it. In politics, this means that I may also separate – by means of a pseudo-scientific (and useless) process – the traits of a phenomenon (provided that later this phenomenon is not turned into another), but I cannot solve it only by recomposing its parts differently.

I cannot solve the problem of falling population with immigration, because this phenomenon has a cost that would not be there if there were a normal population replacement rate – and for the additional reason that creating a workforce coming from other regions (net of transfer costs, which are certainly not negligible) is very different from creating it on the spot.

Hence Popper’s myth of “social engineering” is a false myth, considering that we cannot fully reproduce complex phenomena such as the political ones and also considering that no political fact can be completely isolated from the others. The “social engineering” myth also relates to the idea that the myths, ideas and motivations of the peoples and the ruling classes are completely irrelevant compared to the old “super-structures” in the Marxist meaning of the word. However, there are physical, chemical and biological reactions. Politics – and foreign policy, in particular – is a biological reaction.

This is another major mistake: politics – and foreign policy, in particular –  is made up of myths, perceptions, cultural patterns and symbols. There would not currently be Emmanuel Macron’s grandeur in France without  Charles De Gaulle’s. And the inferiority complex of the Italian politicians, when it comes to dealing with foreign policy, stems from the fact that they have naively accepted the narrative made by our former enemy turned into a friend after World War II. While Western Germans have never completely regretted the Third Reich, given the propaganda and the “repression of painful memories” which took place after the Allies’ occupation, the Italians were laid the blame for everything, obviously in addition to be considered “traitors” or “treacherous”.

Those who make others create their own identity, lose it. Not to mention the fact that Republican Italy has always avoided implementing foreign policy on its own, under the pretext – for fear of the largest Communist Party in the West – of the obligations arising from the Atlantic Alliance’s membership or, more recently, under the pretext of the comical peacekeeping activities where there are wars.

This currently applies to all Western countries: voters are no longer interested in foreign policy. They are interested in symbolic, but national actions (the fight against the so-called “caste”) or in equally national real benefits, such as  jobs or pensions. The current democracies do no longer stand the test of foreign policy, which requires brilliant minds and unprecedented prediction abilities. Nonetheless, in the globalization era, it is precisely from foreign policy that many of the symbolic and real benefits and assets, which appear to be typical of national policy, come.

Furthermore, foreign policy in Italy and abroad is currently implemented on the basis of fully archaic and clearly propaganda-oriented choices. It is also implemented at the lowest level – see the famous “spreading of democracy” – or in a slightly more structured way – see the “fight against terrorism”. Terrorism is one of the jihad techniques and this is precisely the real context of the asymmetric warfare launched against us, “Jews and Infidel”, by a vast part of contemporary Islam.

Nor does the usual paleo-Marxist inference apply – namely that the oil issue underlies the jihad. This is certainly true, but there is also the attempt to unify the Islam after the fragmentation of many Muslim “failed States”, as well as the Islamist struggle to conquer Africa and Asia, where the old “Cold War” countries do not operate any longer. Finally there is also the ideological and political management of the huge Islamic migration into Western countries. In foreign policy there is not only one single  “foundation”, but there are always many of them at the same time.

The sum of the parts does not provide the shape of the whole; the sequence of phenomena does not indicate their real relevance and the time when historical facts occur does not tell or indicate their importance.

Obviously, in the case of our politicians, the law of the old US Senator,  Tip O’Neill, still applies: every policy is local. And also Ian Budge’s thesis of rational choice applies: every politician tries – first and foremost – to be re-elected. As already noted, however, currently it is foreign policy that distorts the national one – it is no longer as during the “Cold War” when foreign policy in Italy was shaped and implemented by our allies.

Nevertheless, how should we currently think in terms of foreign policy? Firstly, the sequences and the most likely consequences of a particular choice should be defined – without ever forgetting exceptions. There is a conceptual mapping deriving from the traditional one – maps are a substitute for the territory. Secondly, the potential of each secondary phenomenon should be assessed: obviously we can send our soldiers to the Middle East with specific rules of engagement or alliances, but we must  also be able to “imagine” what would happen if our soldiers were attacked by Hamas or the Sinai Islamic Jihad. Different effects for the same phenomenon. Moreover, foreign policy has to do with alchemy: if we send soldiers to the Middle East, we must be able to use this political-military success to obtain less expensive oil contracts or even to sell our weapons to the local peoples or to become essential at the peace negotiating table.

Indeed, Cavour’s idea of sending the Piedmontese soldiers to Crimea was excellent.

Hence, foreign policy can be used on multiple fronts and negotiating tables, provided we are able to do so. Moreover, implementing foreign policy means creating an inevitably global phenomenon: those who deals with it, knows very well that every operation has multiple and sometimes unpredictable consequences, but always ranging from culture to the economy, from technology to arts. In principle, nothing is excluded from foreign policy.

Finally those who are not able to run are not even able to walk: the ruling classes that do not know how to develop a foreign policy line in keeping  with their goals do not even know how to implement domestic or  economic policy.

Advisory Board Co-chair Honoris Causa Professor Giancarlo Elia Valori is an eminent Italian economist and businessman. He holds prestigious academic distinctions and national orders. Mr. Valori has lectured on international affairs and economics at the world’s leading universities such as Peking University, the Hebrew University of Jerusalem and the Yeshiva University in New York. He currently chairs “International World Group”, he is also the honorary president of Huawei Italy, economic adviser to the Chinese giant HNA Group. In 1992 he was appointed Officier de la Légion d’Honneur de la République Francaise, with this motivation: “A man who can see across borders to understand the world” and in 2002 he received the title “Honorable” of the Académie des Sciences de l’Institut de France. “

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How Romania’s battles over corruption hamstrung economic progress

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When Romania took over the rotating presidency of the Council of the European Union in January, news coverage in Western Europe mostly focused on the tensions between Brussels and Bucharest over the latter’s judicial reforms. Jean-Claude Juncker publicly called Romania’s ability to fulfil its presidential duties into question; the European Commission, meanwhile, accused the ruling Social Democrats (PSD) of backsliding on corruption.

Since then, however, Romania has executed its presidential duties without a hitch, hosting European leaders for a major EU summit in Sibiu on May 10th that earned plaudits from top EU officials like Donald Tusk. In hindsight, has the overarching media narrative ignored important developments inside Romania? Does the Sibiu summit demonstrate that Romania has regained its footing as one of Europe’s most dynamic economies?

Economic growth no longer extraordinary

Romania’s economy, while still growing at an impressive rate, has slowed down from the remarkable rates the country was registering as recently as 2017— when its 7% expansion outpaced nearly all European peers. 2018 saw growth rates of 4%, while estimates point to 3.5% for 2019.

Since it joined the European Union in 2007, Romania’s per capita national output doubled to roughly 60 percent of the Eurozone average. Record lows in unemployment led to double-digit average wage growth over the last four years. But the recent downwards trend has left many wondering whether the Romanian economy will ever resume its previous rate of development.

Is the DNA’s aggressive prosecution scaring off foreign investors?

Bucharest’s economic slowdown is due to a variety of factors, from tightened global financial conditions to falling birth rates. Foreign investors, however, may also be skittish thanks to the long-running battle between Romania’s political establishment and its controversial anti-corruption agency, the National Anticorruption Directorate (DNA). Under the leadership of agency head Laura Kövesi, the DNA undertook (by its own count) 2,396 investigations targeting Romanian magistrates between 2014 and 2018. Kövesi’s tenure saw over 1,000 figures from the country’s political and business circles convicted for corruption.

The DNA’s swathes of indictments targeting Romania’s leading political figures, with charges ranging from forgery to money laundering, have certainly played into the country’s reputation for corruption. That image has hamstrung Romania’s ability to attract foreign capital and investment, from Europe and beyond.

EU leaders, meanwhile, have heaped praise on the DNA’s stack of convictions, holding the anti-corruption agency up as a model for other European countries to emulate. Concerns have mounted, however, that the DNA is abusing its power and reverting to communist-era investigative practice.

Long lists of convictions—but at what cost?

Hiding behind the DNA’s unusually-high conviction rates were potential due process violations, including lengthy pre-trial detainment periods equivalent to imprisonment before having been sentenced by a court of law, or otherwise threatening suspects that a lack of cooperation could see their family members prosecuted. Increased scrutiny of these violations may help explain why the number of cases resulting in acquittals rose markedly, from 12.2% in 2017 to 36.3% in 2018.

Some of the DNA’s most prominent targets have drawn parallels between its behaviour and that of Romania’s Communist-era security services. Alina Bica, who formerly served as chief prosecutor for organised crime and was arrested in 2014, described her experience with the DNA as “like in the 1950s when the communists came. You get called an enemy of the state, you get put in the truck…they damage your family.” Kövesi reportedly made a personal visit to the Supreme Council of Magistrates to persuade them to sign off on Bica’s arrest, while Bica’s husband was targeted with charges of tax evasion and her lawyer was also detained.

Many of those singled out by the DNA accuse the body of pursuing political or personal vendettas. Bica, for example, claimed the charges against her stemmed from her 2012 investigation into Transgaz, where Kövesi’s brother served as a director. PSD spokespeople have suggested treasurer Mircea Drăghici, currently under investigation for embezzling party funds, is being targeted as part of the lead-up to this month’s European elections.

Troubling collaboration with the intelligence services

Recent revelations about the DNA’s investigative tactics have given new life to comparisons between today’s anti-corruption czars and the communist-era Securitate secret police. Earlier this year, Romania’s Constitutional Court ruled secret protocols between DNA prosecutors and the country’s domestic intelligence agency, the SRI, were unconstitutional. The Constitutional Court concluded that the SRI, successor to the Securitate, had signed agreements allowing the intelligence agency to circumvent the authority of prosecutors in criminal investigations, while simultaneously conducting over 20,000 wiretaps a year on behalf of the DNA—an excessive violation of privacy.

The investigation by the Constitutional Court culminated in Kövesi’s removal from her position in 2018. Kövesi herself has been indicted on charges of corruption and abuse of office, relating to allegations by Romanian businessman Sebastian Ghita that Kövesi strongarmed him into paying for the repatriation of a fugitive from Indonesia. Romanian police claim they footed the bill, but criminal proceedings are ongoing. The former prosecutor nevertheless retains many fans in Brussels. Allies in the European Parliament want to name her to the new position of EU Chief Prosecutor despite the ongoing investigation in Romania.

Increased transparency

With the steady release of DNA documents to the newly formed Special Section for the Investigation of Crimes Committed by Magistrates and the National Union of Judges in Romania, which both operate independently of the DNA, efforts to increase transparency in Romanian governance may soon move beyond the bitter political rivalries that undermined Romania’s political stability and global reputation.

While the Sibiu summit was a political success, the economy is also regaining its footing. Consumer confidence is recovering, with better prospects for future savings. Wage growth remains impressive while lending activity continues to expand. And CFA Romania, an association of investment professionals, released a report predicting Romanian economic activity will improve over the next 12 months. It seems that, despite the corruption battles of the past several years, both Romanian businesses and consumers remain optimistic about their future prospects.

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Any signs of a chill between France and Germany?

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The past few months have seen many signs of growing friction and divisions between the two European superpowers, Germany and France. Before the February vote on changes to the EU Third Energy Package, meant to expand the European Commission’s power to regulate Europe’s electricity and natural gas market, France opposed, until the very last moment, Germany’s position on the issue. In April, Paris and Berlin failed to agree on how much more time Britain should be given to decide on its withdrawal from the EU. During the recent presidential elections in Ukraine, France and Germany supported various candidates. Moreover, they are equally divided on who will be the new head of the European Commission. What is happening in relations between members of the “European tandem”?

During the latter half of 2018, it looked as if relations between the EU’s two powerhouses were reaching a new strategic level. In a joint statement made in Meseberg in June, Berlin and Paris outlined their shared vision of the European Union’s future development. In late August, French President Emmanuel Macron and German Foreign Minister Heiko Maas simultaneously spoke out about a new role for Europe to make it “sovereign and strong.” During their informal meeting in Marseille in September, Emmanuel Macron and Angela Merkel agreed on a coordinated response to the main challenges facing Europe and on concerted work on shaping the “agenda for Europe.”

In November, the two leaders spoke in favor of creating a “European army,” “real Pan-European armed forces” capable of defending Europe. And in January of this year, they inked a broader cooperation accord in Aachen, which commentators described as a “new big step” in bringing the two countries closer together. The Treaty of Aachen covers new areas of political cooperation, including common projects and commitments in the fields of defense and international relations.

Just a month later, however, the Franco-German rapprochement hit a snag over two strategic projects worth billions of euros, namely the Nord Stream 2 gas pipeline and trade relations with the United States. Here the interests of Paris and Berlin differ the most. Underscoring the seriousness of the rift, Emmanuel Macron canceled a planned trip to a security conference in Munich in what many commentators described as a “demonstrative” move. As for the issue of completing the construction of the Nord Stream 2 gas pipeline, the compromise reached by France and Germany and approved by the European Parliament, imposed on Berlin “a formula that the German government wanted to avoid.”

Regarding the issue of trade relations with the United States, it wasn’t until mid-April that Brussels collectively managed to prevail over France, which had been blocking the start of pertinent negotiations with Washington.  Any delay may cost the German automakers multi-billion dollar fines from the United States. If the French succeed in delaying the start of negotiations, Germany, which is already experiencing a sharp slowdown in economic growth, may end up the loser again.

France’s sudden move left the German media guessing whether Macron’s actions were dictated by his displeasure about Berlin’s “slow response” to his initiatives, or by Donald Trump’s threat to sanction companies involved in the construction of the Nord Stream 2 pipeline, including the French concern Engie. Or maybe Macron had resorted to this “show of force” in a bid to strengthen his hand amid the conflict with the “yellow jackets” and growing tensions with Italy?

Indeed, the statement made in Meseberg and the treaty signed in Aachen could have proved too much of a compromise for Macron, if not a serious blow to his ambitions. According to critics, “the Treaty of Aachen dodges the most sensitive topics characteristic of modern Europe.” Including migration and political unification of Europe – something Macron is so eager to accomplish. The treaty makes no mention of a common EU tax and financial policy, while the issue of creating a single economic space is spelled out declaratively at best. Angela Merkel essentially emasculated virtually all of Macron’s initiatives pertaining to the financial and economic reform of the EU and the Eurozone. Emmanuel Macron has been out to become one of the EU’s leaders, or even its sole leader, ever since he became president in 2017. All the more so following Britain’s exit from the bloc and amid the ebbing political authority and the planned resignation by 2021 of German Chancellor Angela Merkel, once the informal leader of a united Europe.

The current political situation in France is also calling for more decisive actions by President Macron. To ensure at least a relative success in the upcoming European elections, he needs to enlist the support not only of the traditional left-and right-centrists, but possibly of some representatives of the new European right too. Whether or not Angela Merkel stands down in 2021, or after the elections to the European Parliament (as has been rumored since April), Emmanuel Macron essentially remains the only top-level proponent of greater European integration. (Unless Merkel ultimately moves to the head of the European Commission, of course). With Macron eyeing a second presidential term in 2022, the advancement of the modernization model for France depends directly on the success of the European project. And here any significant changes in the European Union “mainly depend on the position of France’s privileged partner – Germany.”

All this means that Macron needs a breakthrough now that Berlin is going through a “complicated power transit” with Merkel having resigned as the head of the CDU and preparing to hand her post as Federal Chancellor over to a successor. Therefore, she is now taking her time and, according to her successor as CDU leader, Annegret Kramp-Karrenbauer, is holding out for a new vector in the development of the European project as “the common denominator of the distribution of political forces after the elections.” Does this mean that Berlin’s is staking on the success of its candidate in the ongoing struggle for the next president of the European Commission? For the first time ever, the CDU and the CSU have managed to nominate a common candidate who has “good chances” of heading the EU’s executive body.

Meanwhile, Berlin is facing an intractable dilemma. Since 1949, “avoiding by all means situations necessitating a hard choice between France and the United States has been a key principle of German foreign policy.” This approach “survived all governments and coalitions, and was maintained after the reunification of Germany.” Under the present circumstances, however, remaining firmly committed to the transatlantic relationship threatens to further destabilize the European integration project, which is now seen as being key to Germany’s future. Simultaneously, a course aimed at minimizing damage from the policy of external powers that threatens the fundamental German interests might necessitate radical and ambitious geopolitical maneuvers that would almost inevitably revive the Europeans’ and Americans’ historical fears of “German instincts.”

US and British analysts already worry that “the

[geopolitical]

shackles that are voluntarily accepted [by Germany] can be thrown off.” They also wonder how long it will take before new generations of Germans want to restore their country’ full state sovereignty.

In Germany itself, promotion of such slogans have already given the Alternative for Germany party (AfD) the third largest fraction in the Bundestag. A major paradox of the current European and German policy is that Berlin’s activity or passivity is equally detrimental to the Pan-European project and could eventually lead to the EU’s fragmentation and even disintegration.

However, the Franco-German “tandem” is already being dogged with contradictions and compromises, which are highly unpopular among many in the German establishment. The cautious response by many EU members to the latest joint geopolitical initiatives of Berlin and Paris, gave Germany more reasons to fear that Macron’s global ambitions could exacerbate the differences that already exist in the EU. Many in Germany have long suspected Macron of wishing to make the EU instrumental in his foreign policy aspirations.

Some experts still believe that at the end of the day the current chill between Germany and France may turn out to be just a sign of the traditional “propensity for taking independent political decisions.” The sides are sizing each other up to see “who will be setting the rules of the roadmap in the future.”  Also, Paris’s tougher stance towards Berlin may be a tactical ploy, a pre-election maneuver to “hijack” part of the agenda from the “national populists” of Central, Eastern and Southern Europe where many people are not happy about the German “diktat.”

Emmanuel Macron has proved once and again his ability to ride the wave of public discontent with certain issues. His Plan for Europe, published in early March, carefully avoids any mention of France’ and Germany’s leading role in advancing EU reforms.

On the other hand, the foreign policy of the leading European powers has a long history, and long-term geopolitical considerations continue to play a significant role. Germany, for one, has traditionally been looking for a counterweight to the Anglo-Saxons, while France – to German dominance in Europe. As a result, the search by Paris and Berlin for common points of political contact is now turning into intense efforts to find the “lowest common denominator.” The overall impression is that we will only be able to see a greater deal of certainty in relations between the two countries after the results of elections to the European Parliament have been summed up.  The distribution of roles both within the “European tandem” and in the EU as a whole depends on which political forces – pro-Macron or pro-Merkel, the Europeans will vote for.

 First published in our partner International Affairs

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Sino-Italian Partnership and European Concern

Mohamad Zreik

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A crucial moment in modern European history is that the European doors opened to Chinese President Xi Jinping in Italy during a reception that is like receiving kings and leaders. Once again China is moving west despite all the American warnings from the Chinese dragon coming from the East, and this time it was Italy’s accession to the One Belt One Road initiative.

The Chinese president said that his country’s relationship with Italy is excellent and that the Sino-Italian common interests are the basis for a fruitful future. The Italian prime minister said that Italy is a key partner in the Belt and Road initiative and that trade between Italy and China should increase. But all this positive atmosphere is met with dissatisfaction and fear by the United States and some Italians, which is totally opposed to dealing with China because it considers it a threat to its national security and therefore to the national security of Italy.

In order to prevent espionage or transfer of experience by the Chinese, it was agreed to establish an oversight authority. In an expression of US rejection of the agreement, White House official Garrett Marquis wrote last week on Twitter that Rome “does not need” to join the “New Silk Road”. In an effort to ease US concerns, Luigi Di Maio said before taking part in an Italian-Chinese economic forum in Rome that the relationship will not go beyond trade, as we remain allies of the United States, and remain in NATO and the European Union.

The Italian economy, which is in a recession, is pushing the Italian government to form an alliance with China. Many European policy experts consider Italy to be a Trojan horse for China in the European region, which will have political implications for the future of the EU and the future of the Italian-American relationship; especially as the Chinese giant Huawei is expected to participate in the launch of the technology “G5” mobile phones in Italy.

China’s opening up is not limited to Italy, but to Europe as a whole. In the last visit by the Chinese president to Europe, he moved from Italy to Monaco and Paris and met President Emmanuel Macron, who is trying to open up to Beijing. German Chancellor Angela Merkel has opposed the Sino-Italian rapprochement with signing the agreement to join the Belt and Road Initiative, so that Italy will be the first G7 country to join the initiative.

Beijing is interested in investing in Italian ports, including the port of Trieste on the Adriatic, to boost its exports to Europe. Italy seeks to balance trade with China. According to official data, trade between the two countries grew by 9.2% compared to 2016, reaching 42 billion euros. Italy managed to cut its trade deficit with China by 1.37 billion euros, increasing exports to Beijing by 22.2%, while imports rose to 28.4 billion euros, an increase of 4% compared to 2016.

But the most important issue remains the weak Italian economy, which will survive under Chinese debt, and the Sri Lankan experience proves that China is dealing with countries with economic interests. So, will the European gateway withstand the Chinese economic giant, or will it be a Chinese economic and political region in the future?

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