As President Xi Jinping wraps up his week-long tour of Europe, his first overseas visit of the year, he seems to have left a growing sense of unease amidst both EU and US policymakers with regards to their pre-existing stance on China. While the US is still locked in an increasingly complex trade row with China, the EU just prior to President Xi Jinping’s meeting with it stop leaders had designated China as a strategic rival. This was underlined particularly by French President Emmanuel Macron who while lauding Europe’s re-awakening to changing global dynamics called for a united re-assessment of the EU’s stance on China, which in effect is also its biggest trade partner.
However, President Macron’s calls for a united stance on China were brought into question during President Xi Jinping’s stop-over in Rome, where despite warnings from the US, Italy officially joined China’s Belt & Road Initiative (BRI) as the first G7 country to do so. During the visit both countries signed 29 agreements amounting to about $31.8 billion, spanning Italy’s energy, ship-building and maritime transport sectors. With a particular emphasis on enhancing maritime trade links, these agreements also included two port management deals for the Ports of Trieste (at the Northern opening of the Adriatic Sea) and Genoa (Italy’s largest Shipping port). As part of the BRI’s 21st Century Maritime Silk Road, both these ports add to the increasingly growing network of ports around the Mediterranean region where Chinese companies now own a major stake. These include for instance the Greek port of Piraeus, the Port of Istanbul in Turkey and Port Said in Egypt all of which serve as key transit points for shipping lines through the vital Suez canal as well as the Black Sea region.
These same ports also form vital nodes within the overall Belt and Road Initiative which has been repeatedly played down by the US as being nothing more than a ‘Vanity Project’. However, the fact that Italy was under pressure from both the US and the EU to not provide such inroads to Chinese State Owned Enterprises over fears of debt and the loss of sovereignty bear witness to a much larger issue. As one of the founding members of the EU and as the third largest Eurozone economy, Italy’s decision to thus officially become a part of the BRI stands in somewhat muted contrast to the show of unity by French President Emmanuel Macron, German Chancellor Angela Merkel, and EU Commission Chief Jean Claude Juncker all of whom met President Xi Jinping at a joint meeting held in Paris.
It was also at this meeting where the EU Commission President in representing a united front clarified its labeling of China as a Strategic Rival, terming the label as a compliment as opposed to a threat. A similar stance was also taken by Chancellor Merkel who went ahead and stated that many countries in the EU were still open to joining the Belt and Road Initiative. These statements which were made in Paris on Tuesday represented a softening of the rhetoric employed by these same leaders the previous Friday, where Mr. Juncker termed China as a competitor, partner and rival after a summit with EU leaders heldin Brussels.
Hence, while there is little doubt at the moment over the extent to which China has the EU’s combined attention, the prevailing uncertainty and fears of disunity amongst EU Countries is currently on full display with regard to their policy on China. This prevailing uncertainty is further exacerbated by the ongoing Brexit crisis, as well as the US’s withdrawal from itsrole as a global leader based on its ‘America First’ policy. Therefore, while China’s far-reaching influence as a major investor and trade partner is undeniable, what’s highly of interest is the fact that China is able to use this influence to challenge not only the very unity of the EU but the entire concept of the ‘West’ as a homogenous bloc.
Specifically within the context of the ongoing US-China trade war, and its related disputes over intellectual property rights and the standardization of next generation systems (such as the deployment of a standardized 5G telecommunications network), President Xi Jinping’s Europe visit has made it clear that going forward, European leaders may have to carefully balance their relations between an uncertain US to the West and a rising China in the East. What’s more, these broad ranging effects of china’s rise as a geo-economic power, onto long-held geo-strategic fault lines are based on the hard realities of trade, investment and a rapidly changing international financial system. These in conjunction with China’s emphasis of securing its long-term growth objectives are directly aimed at redefining the thresholds between the world’s developed and under-developed economies. By tying its own long-term growth to a broad based approach to global economic growth, China’s vision and bid for a more prominent role as a global leader is currently on full display across Europe.
All Those Croatian Presidents
Since those days when it emerged from the ruins of the Yugoslav federation as an independent state, Republic of Croatia had 4 Presidents – 4 men and a Lady President. The first one whom only death, in the opinion of many, saved from the International Hague Tribunal, but who is still (or because of that?) called by his admirers “Father of the Nation” was a self-proclaimed “Mesiah”, who although “only” a President acted as master and commander. One of his closest collaborators remembers how Franjo Tudjman asked him once: “To whom should I leave Croatia?” For a monarch without heirs from the 19th century a quite appropriate question. But, for the President of a modern state that found its way to the international scene at the very end of the 20th century – unthinkable!
On the wave of the desire for changes, which grew more and more as dark sides of the war for independence and of the privatization and transition started (but only started) to emerge, Tudjman was after his death succeeded by a former highly positioned politician of his Party who broke all ties both with Tudjman as well as with the Croatian Democratic Union (HDZ), because he could not and would not support their policy towards Bosnia and Herzegovina. Before doing that he, alas, following the official HDZ policy, gave a couple od “antologic” statements which he found himself in a position of explaining even after years. However, Stjepan Mesić displayed enough honesty and political courage to admit these statements and escapades and to apologize for them, saying they were wrong and out of place. He won the presidential elections twice and although he is by his enemies from the right still branded both as a clown and as a traitor, he initialized key processes aimed at putting Croatia on the world scene again, after it was, at the end of Tudjman’s rule, practically put into international isolation because of his policy towards minorities, especially the Serb one, and to human rights in general.
Mesić opened the way for returning antifascism (although already put into Constitution) to the place it deserves in the Croatian society; without any reservations he labeled fascism and its Croatian version (Ustasha) as evil and as a crime; he opposed the historical revisionism that was present from the very beginnings of the Croatian state; ha changed the attitude towards minorities, in the first place, the Serb minority and he favored the return to Croatia of those Croatian citizen of Serb origin who fled the country during the war; he laid foundations for a everyday’s normalization of the relations in the region; he opened Croatia to the world, presenting it as a partner willing to cooperate on the terms of full equality with everybody. Despite diminished powers, because Croatia switched after Tudjman’s death from semi-Presidential to parliamentary system, he knew how to resolutely say “no”, when Croatia’s interests were at stake (for example resisting the pressure to make Croatia part of the so called Coalition of willing put together by the US for the purpose of invading Iraq). And he never ceased repeating that he is a citizen-President whose job is not to rule, but to serve.
After his 10 years in office a new tenant came into the Office of the President – university professor and composer, candidate of the left, Ivo Josipovic. There can be no doubt that he too wanted to be a “real President”, that he even had some ideas how to do this (let us forget his statement that he intends to compose an opera, while being President), the fact remains that he – objectively – managed to halt or to freeze many of the positive processes started by his predecessor; though at the same time some of them he simply copied, repeating for example in the Israeli parliament the excuse, on behalf of the Croatian state, for the crimes committed by the Ustasha against Jews. If he is going to be remembered for anything, it will be for being a weak President, who – by not being able to define himself and by not understanding what politics is all about, practically put in the position of the President Kolinda Grabar Kitarovic. Because, apart from the HDZ voting machinery, people did not vote for her, wanting just her as the new President, but because they were, to put it mildly – fed up by Ivo Josipovic. He did not know how to make real contact with citizens (contrary to Mesic, who was a virtuoso in doing this) and the citizens did not understand him – for example when he announced that he will run for the second term with he concept of a new Constitution.
The first woman-President in the short history of Croatia, presented a respectable C/V (minister for European Integration, Foreign minister, ambassador to the US, assistant to the Secretary General of NATO). But, very soon it became apparent and it remained apparent through her 5 years in office that she came totally unprepared and unfit for the position. She was intoxicated by the ceremonial accompanying the position of the President, she was literally in love with the military component of the function (although the President is the Supreme commander only in times of war), she loved uniforms and weapons and, above all – she was obsessed – by moving her Office from one town to the other (together with a ceremonial military unit that was present during the playing of the national anthem and raising the flag upon her arrival; in normal circumstances it is just the President visiting this or that town, or region of Croatia, which was – but without the pomp upon which she so insisted – done by Mesic, by Josipovic, even by Tudjman.
She will be remembered by stubbornly repeating some notorious lies (such as that Croatia/Yugoslavia was behind the Iron Curtain, or that Croats were not allowed in times of Yugoslavia to call themselves as Croats, or that the Ustasha salute (For homeland – ready) was an ancient Croatian salute (here she eventually admitted, most probably under pressure from outside, that she was wrong, blaming one of her advisers for this!). She will not be remembered for her policy, even not for the “3 seas concept” she so loved to speak about, although it is not her concept at all. But she will be remembered as an enthusiastic cheer leader during the World soccer championship, as somebody who embraced sweaty soccer players in their wardrobes and – as her term in office started to come close and closer to its end – as somebody who liked to sing in public (even “discussing” this with some media, objecting that they reported she does not know how to sing, although – she said – “I sing well”). Finally she will be remembered by a series of public appearences which made many people to raise their eyebrows and than to start laughing at her (“My friend, the American general”, or “they say it’s not possible, but I tell you it is possible; I have already arrangements with certain foreign countries that Croats will go there for schooling, return after that to Croatia and work on-line from their homes for 8.000 Euro monthly”, ending with “I will stay in Croatia, although I have offers from all around the world”. She loved to sing a song whose text portrays part of Bosnia and Herzegovina as Croatia, she boasted that the pop-singer, icon of the political right whose most popular song begins with the Ustasha salute “For homeland – ready!” is her favorite singer, and let us stop here, although there would be much more. She missed no opportunity to equale antifascism (calling it communism) with fascism and she loved to remember how both of her grandparents were partisans, but turned into anticommunists right after the victory in 1945. About her being sent to school in the US she said that her father sent her there and not Tito (“forgetting” that Tito was at that time several years dead already).
She made peace with the HDZ prime minister, because she needed her party’s support in the election campaign. All the HDZ politicians started to repeat, as parrots; “She will win!”. She lost. If she manages to get into history, than history will remember her as somebody who transformed the role of the President into a stage act and managed, instead of policy that should be waged at the top of the state, to present a rather bad “patriotic” reality show.
It is high time for “realpolitik” to replace this reality show. Yes, we might expect some surprises from the President-elect too, some of them might not please those who voted for him. But, one thing is sure; because of Zoran Milanović nobody who really cares for Croatia and for Croatia’s reputation in the world, will not blush, or feel ashamed (which was not the case in previous 5 years). Milanović in not an “unknown”, both in Croatia and in the world, neither as a person, nor as a politician (chairman of the Social-democratic party, Prime minister). It is a known fact that he too, sometimes, speaks and even acts faster that he thinks, putting himself in the position to explain afterwards what he really wanted to say or demonstrate (the most benign example is his jumping from a APC and falling to the ground before TV cameras, and saying laconically only: “I wanted to boast”.
In retrospect: the first “mesianic” President saw himself as the owner of the country and behaved accordingly. The second, and history will one day admit this, was a President, as Presidents should be. The third did not know how to be the President and the fourth, the Lady President, understood and performed her duty as a cheap reality show. One should hope, the time is ripe for a “realpolitiker”, someone who is fully aware of the fact that he is the President of a small country, but at the same time aware of its (meaning his) responsibility for the state of democracy in Croatia, for the situation in the region and for Croatia’s place in the world. Voters do remember Milanovic from previous times. So it is no surprise that on internet one can read such a commentary: “Good luck, don’t slip, because we will not forgive.”
US naming of first corrupt Bulgarian official is a joke
Last week, US Secretary of State Mike Pompeo announced the first ever designated Bulgarian official barred from entering the United States over corruption, under Section 7031(c) of the Department of State, Foreign Operations, and Related Programs Appropriations Act.
The newly implemented non-judicial mechanism to “fight corruption” in Bulgaria had many here in high hopes. Would the US really name names and help Bulgarian society clean up by pointing the finger and sanctioning the most corrupt and dangerous elements?
Well, don’t hold your breath.
The glaringly political and self-serving designation disappointed many here. The US government black-listed a Bulgarian judge and the only thing he is known for is that he allowed a pro-Russia society activist to visit Russia and receive an award from Russian President Putin, while the pro-Russian activist was under investigation over espionage charges.
The decision struck many here as something out of an outdated Cold War scenario.
The US is not really fighting corruption with this move — it’s just settling old scores with a pro-Russian judge. Actually one does not even have to be pro-Russia to ask themselves if a decision we don’t like automatically becomes corruption. The US has not provided any evidence for corruption — whether the judge was paid, whether there were any shady dealings, etc.
The US has a long way to go if it wants to show that corruption rather than pro-Russian interests is what it is really after in Bulgaria. As this is just the first designation in a long list to come, the US Embassy in Sofia would do well to address actual corruption that Bulgarian citizens are sick of. That’s the way to win over Bulgarians.
Britain after Brexit: Between US and EU
On January 31, the United Kingdom left the European Union, after three years of exhausting negotiations in which the terms of the “divorce” were postponed several times. Now, Britain is setting sail free. A staunch supporter of the exit, Prime Minister Boris Johnson claims that breaking away from the EU will “liberate the country from a terrible” yoke “.” Johnson promises the British “a decade of prosperity and opportunity.” A major advantage to the breakaway is believed to be the prospect of a new rapprochement between Britain and the United States. How realistic are these expectations?
US current President Donald Trump spoke strongly in favor of Brexit from the very beginning. He called for a most dastic form of severing relations between Britain and the European Union, in return for which he promised the British a comprehensive free trade agreement in the shortest possible time. In September last year, British media reported that Trump and Johnson had allegedly agreed to sign a free trade agreement, which “will become the largest-scale deal the United States has ever reached.” According to these reports, the final signing of the contract is scheduled for July 2020. The terms of the transaction will not take effect immediately but after the Brexit transition period, which, according to the current agreements between London and Brussels, will come to a close in December 2020.
On January 25, US Treasury Secretary Stephen Mnuchin said he was optimistic about the possibility of concluding a US-British free trade agreement this year. According to Reuters, Donald Trump also tends to consider the feasibility of reaching an agreement with the UK before the US presidential election in November. Britain, in turn, expects to use the agreement with the United States as an argument during trade negotiations with the EU. Both London and Washington declare their intention to “substantially expand” bilateral trade. Meanwhile, Mnuchin, along with a number of American Congressmen, have already made it clear that they deem unacceptable London’s plans to introduce a tax on digital services by such American IT giants as Facebook, Google and Amazon. So differences in the economic sphere are already in place now.
The doubts of the American establishment are also clear. Ten years ago, optimists believed that Britain’s future was unimaginable without the EU. Simultaneously, “special relations” with the United States enabled London to become a major moderator and, perhaps, the only Western country capable of streamlining the predictably inevitable weakening of American hegemony. At least, it was done with minimal losses for the entire “golden billion”, and in case of success it made possible extending its leading position among other world players for the foreseeable historical perspective.
When the “impossible” – Brexit – became reality, it became clear that the appearance of yet another “variable” in Europe could be beneficial for both Washington and London. The United States gets an effective tool of influence on Europe – it will make use of the differences between London and a number of East European countries traditionally oriented at the UK, and the other leading EU capitals. And the United Kingdom gets a chance to return to the “top of the world” with the support of still strong, but not so “strategically astute” or “politically flexible”, America.
By now, skeptics say, the nature of British-American relations has changed irreversibly. The trade deal could become a major stumbling block. In the first place, Trump has so far signed only one truly fundamental trade agreement – a new version of NAFTA. He is always seeking to dictate his will – “particularly, if the partner is weaker or in need.” “And for the United States, Britain is, at best, a satellite, not an equal partner.” In addition, with less than a year to go before the US presidential election, voters expect Trump to step up protective measures, rather than make concessions. Secondly, a full-scale trade agreement is subject to approval by the Congress. Trump is currently at “war with the Democrats.” Many Republicans may also come forward with requests to secure significant concessions from London. These could be farmers, the Irish lobby, who would want concessions over the border between Northern Ireland and Ireland, and representatives of IT corporations.
Thirdly, a trade agreement with the EU is more important for London. According to the BBC, British exports to the EU are 2.5 times higher than to the United States. The EU share in UK imports is almost 5 times higher than that of the US. The European market is closer and larger, while the overseas market is much smaller. Technically, an agreement with the European Union seems to be more achievable, given that now both parties have “common rules and standards”. Moreover, success in trade negotiations with the EU will deprive London of the opportunity to make substantial concessions to America. Finally, comprehensive trade agreements are prepared for years, if not decades. There could be exceptions, of course, for example, a kind of “mini-transaction” confined to a particular industry. However, such deals “will be problematic to present to the public as overwhelming success of Britain on the global scene and they will hardly make an adequate compensation for the break with the EU.” It is also unclear whether London is willing to pay the political price. For example, Trump may require unconditional support in the confrontation with China, or Iran, as a “bargain”. Or he may ask for a rejection of the “digital tax.” As a result, it will not be a trade agreement, but only a “transaction concerning trade”.
Meanwhile, in geopolitical sphere, relations between London and Washington are far from perfect too. In the summer of 2018, the UK expressed interest in establishing cooperation with the participants in the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership. The latter is an upgraded version of the Trans-Pacific Partnership, which Trump, in the very first weeks of his presidency, renounced as “not beneficial” for America. Britain’s position also clashes with that of the US on the preservation of a nuclear deal with Iran. Moreover, in addition to supporting Europeans, Germany and France at the diplomatic level, Britain was among the initiators of a European payment mechanism to circumvent US sanctions against Iran (INSTEX), which, however, has yet to become functional.
According to The Economist, in January this year, British Secretary of Defense Ben Wallace publicly questioned Washington’s credibility as an ally. Present-day Britain, he said, is far from always ready to fight on the side of America. Wallace also expressed regret over his country’s “very strong” dependence on the United States for military aviation, as well as for electronic intelligence and surveillance. “We need to diversify our options” in these areas, – summed up the head of the military department of the United Kingdom. British experts were quick to remark that there had been no statements of this kind in London’s official statements of the past 70 years. The British leadership is still hoping to pursue the country’s own programs of creating advanced weapons, including fighters and spy satellites. Finally, what causes London’s growing concern is Trump’s “contempt for the allies” and the difference in strategic priorities. One British diplomat commented in The Economist as follows: “We fear Russia more than anyone else, while the US is wary of China. ”
What triggered the bulk of political and trade differences between London and Washington is London’s intention to include the Chinese company Huawei into the suppliers of equipment for fifth-generation telecommunications networks. The United States accuses Huawei of acting on orders from official Beijing to “spy” on residents of Western countries and even damage communications systems. Washington has been doing its utmost to convince all its allies that it is true. Last December the US introduced an amendment to the 2020 defense budget under which the government is to cut intelligence data exchanges with those allies that have endorsed the use of Huawei technologies in fifth-generation networks. The amendment will first concern anglophone countries that form the Five Eyes alliance whose members are involved in tight-knit cooperation on intelligence data exchanges and integrating electronic espionage infrastructure. Washington commentators describe the amendment as a “warning signal”.
The head of the US State Department Mike Pompeo did his best to put pressure on Britain, including in the course of his meeting with the head Foreign Office in Washington in January. However, what the US has achieved so far is Britain’s reiteration of its commitment to its former position under which Huawei will be kept away only from the “most sensitive” in terms of security elements of British IT and communication infrastructure. The US executive and legislative branches of power have reacted differently. The day before Brexit, on January 30th, Pompeo visited London, where he assured the British about the inviolability of privileged relations within the Five Eyes group. According to Reuters, Mike Pompeo expressed optimism over the prospect of signing a trade deal. Simultaneously, a number of Republican Senators have signaled unavoidable obstacles in the way to a bilateral trade agreement, which will entail London’s decision on 5G.
Overall, it looks like we are in for a long period of struggle for influence on Britain between Europe and the US. President Emmanuel Macron of France, along with the European Commission’s Head of Task Force for Relations with the UK Michel Barnier and the EU’s High Representative for Foreign Affairs and Security Policy Josep Borrel, have made it clear that the EU is planning to maintain close ties with Britain, including in «security and defense», and in addressing global issues in a multilateral international format. «The EU and Britain share history, geography, culture, common values and principles, and in international relations they are both committed to a multilateral approach on the basis of rules». Rules in this context mean European rules and standards.
As for the US, Washington began to move «away from Europe» in the days of George Bush Jr. and continued to do so under Obama. For many Europeans it has long become clear that Trump’s European policies of the past three years smack of the old imperial principle of “divide and rule”. Apparently, the EU leadership have grounds to believe that the British will quickly come to the understanding that the current “world order” is impossible to preserve. The times of «symphony» between Thatcher and Reagan are a thing of remote past. Donald Trump is but a sign of the changes, not their cause. As said above, some principal figures in the Johnson Cabinet have said openly that the pattern of relations with America which came into existence after 1945 is going into the past. It looks like the prime minister is secretly hoping to organize a geopolitical “auction” in which two coasts of the Atlantic will bet for new terms of a union with the Foggy Albion. Right now, however, as Brexit critics say, after leaving the EU, Britain is playing the role of «a minor empire squeezed between two major ones». Is this the kind of future breakaway supporters want for their country?
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