How will the E.U. resources be defined in the near future for the coronavirus issue? The issue is, in fact, much more complex than we may think.
The actual European Funds that are theoretically available are manifold: the European Regional Development Fund, the European Social Fund, the Cohesion Fund and, finally, the European Maritime and Fisheries Fund. All of them have been activated by President Von der Leyen in the initial phase of the COVID-19 spreading to Europe.
The resources identified by President Von der Leyen for providing support against the epidemics and its economic effects are all drawn from these budget items, which are also those transferred to the States, usually as pre-financing, i.e. as advances on operating expenditure.
The unspent part of these advances will soon be renamed without any particular bureaucratic problems and these funds will cover at least some past expenses, precisely as from February 1, 2020.
President Von der Leyen’s proposals affect also the General Regulation of European Funds, which will also enable us to use the Regional Development Fund to finance capital and investment, particularly to improve the efficacy of regional health services.
In principle, contributions from these Funds will only be used to cover the losses caused by health crises, climate events, environmental accidents or accidents at sea which, however, account for at least 30% of the turnover of the affected company, calculated on the average of the last three previous years.
For severe diseases and epidemics, this new E.U. system envisages that these Funds can be activated if damage greater than three billion euros or 0.36% of the usual GDP can be proved (well, what next? No end to bad news).
Hence a total of only 8 billion euros are expected to be made available to all the European economies affected, plus further 29 billion euros as cascading effects of investment already being made.
Too little, as is evident to us all.
The 2021-2027 EU budget, however, has not been approved yet. The resources are therefore already scarce and, to tell the truth, completely insufficient for all EU countries. Nevertheless, approximately 850 million euros will be transferred to the Italian regions alone to face the epidemics, in exchange for a not so formal guarantee of “enhancing the managerial approach” to health management – which is already high in Italy – and also to the relationship between spending centres and political authorities.
However, we are back again to the usual routine of a too little too late approach in the E.U., both for the Italian health spending and for the equally high one of the other countries affected by the epidemics, such as Spain, France and Germany, in the very near future.
In the German case, however, the public budget cosmetics – which I am surprised is not well known to the international financial markets – will make it possible to turn a plater, i.e. the German public finance, burdened with colossal debt, into a very fast Varenne.
It will not be with this little money and these post factum bureaucratic criteria that the European Union will rebuild its image in the European productive forces and industrial systems destroyed by the epidemics.
In the meantime, Prime Minister Conte’s government has already funded – – with 25 billion Euros, mostly as debt instruments- the whole package of measures to face the Covid-19 pandemic.
The government bonds that can be issued are valid only as from 2020 – as a starting date – but there will be specific “aid” for Air Italy, the Sardinian airline being closed, and the Solidarity Fund for Air Transport and the airport system will anyway have additional 200 million euros available.
All these measures can be found altogether in the Prime Minister’s Decree, so that we have the feeling that, in the end, with a view to setting again the economy into motion in the productive Northern regions after the epidemics, there will be less money than it is needed just to rebuild the industrial system of Small and Medium-sized Enterprises, which – as is well-known to all scholars and experts – have a much shorter time of permanence on the markets than large companies.
These 25 billion euros – which are clearly too little – also include funds for the publishing sector, given the unavoidable decline in advertising revenue, as well as an anti-spread shield for insurance companies to face the tension recorded on Italy’s public debt bonds. This is a very technical issue on which I will not elaborate in this article.
As always happens, however, if investors know it, they discount the insurance value on the amount of bonds acquired or on their price.
It is a painful mystery how, today, we can take a measure like the spread seriously, considering it measures a difference between the ten-year Bund of an ailing country, namely Germany, with the ten-year BTP of an equally ailing country, namely Italy.
Indeed, I have always had little faith in the average intelligence of private financiers.
Prime Minister’s Conte government, however, is ready to implement the E.U. changes to the volatility adjustment, which has always had a very discontinuous trend and a very limited effectiveness.
Thus, by purchasing the tools for estimating the spread parameters, the companies that hold public debt bonds should be in a position to evaluate the functioning of the mass of bonds and calibrate the mix of investment in “paper” instruments, as well as the duration of all the bonds they own. But there is no guarantee in this respect.
With specific reference to business support, the 25 billion additional public spending will allow to apply for the ordinary wage subsidies or for access to the ordinary allowances, but only for a period of nine weeks.
Once again there is not a single word about the companies’ operations to recover market shares, as well as to recover the profit already forecast. All these measures would apply for just nine months, which, even if the pandemic ended immediately, would probably not be enough for the many Italian SMEs affected by the epidemics to recover their place and positioning in the E.U. and international markets which, meanwhile, the others will have already taken.
The fact that economic intelligence exists has not yet been understood by Italian politicians.
With specific reference to the healthcare sector, the 25 billion euros – which, as can be seen, are becoming ever less available – also include only 150 million euros for the increase in overtime for the medical and paramedical staff.
Based on the Decree enacted, the potential of specialized military medical staff will be increased by 320 doctors and nurses, but more money will be invested in local control offices for checks on goods and people.
Moreover, a total amount of 340 million euros will be available to use the beds in the private healthcare facilities’ intensive care units. What about the already available direct funding for private healthcare facilities?
It should also be recalled that the Supreme Defence Council has not yet been convened, which would be the minimum in the current situation.
Once again, too little too late. There is no reliable data on the permanence of the virus and its distribution throughout the country.
For SMEs, however, the Central Guarantee Fund will have only one billion euros available, which is still too little.
If we overlap the maps of the infection areas, from the province of Lodi to the Veneto region, we can also have the map of the development area of Italy’s Small and Medium-sized Enterprises in the North.
They face the international markets “barehanded”, just as Karate or Judo men fight. Whatever happens, the COVID-19 epidemics has put an end to Italy’s particular system of development and industrial organization, precisely in the most productive regions.
Now for Northern Italy there is a possible future either as a “guaranteed” area or as an area completely dependent on the other countries’ economic cycles. This is the real game at stake. Especially for Germany, which thinks strategically about its economy within the EU.
The guarantee, however, will in any case be increased up to 5 million euros per company. For those who are still in difficulty, there will also be easy access to the “Gasparini Fund” for the suspension of mortgage payments. Said Fund has been increased with as many as 500 million euros for the whole 2020.
For the usual nine months after the entry into force of the Decree, access to this Fund will be provided also to the self-employed and freelancers who self-certify – and it will be very easy – a drop in turnover higher than one third which, however, shall be connected with the COVID-19 emergency (although no clear details are provided on how this correlation shall be proved).
For banks, as well as for the other companies’ creditors, the turning of debt into tax credits is envisaged for a maximum amount of 2 billion euros.
Hence we are well over the 25 billion euros initially envisaged, as debt instruments, by the Prime Minister’s package of measures, well knowing the debt conditions of many and often excellent SMEs in Northern and Central Italy.
For restaurants, cafés, gyms, entertainment and culture, as well as transport services, there is an exemption at source of withholding tax payments on income. However, real income support would be needed rather than the usual tax exemptions on income that is no longer there.
Finally, there is income support for freelancers only to the tune of 500 euros per month. Income support is envisaged also for those who have an active VAT number, as well as for the Made in Italy sector, which has always been the key for the SMEs’ economic penetration abroad. As to the latter, this income support – the amount of which is not specified – will be managed by the Institute for Foreign Trade (ICE). What about SACE for the companies which are already active overseas? In this case, everything is too vague.
However, there are already all the signs of the E.U. trip.
In one day the alleged gaffe of current ECB Governor Lagarde has already destroyed the Italian Stock Exchange, which, indeed, is owned by the London Stock Exchange, but the Franco-German banking axis has been speculating for years on the difference between the interest rates paid by Germany and France and the Italian ones.
This is a real industry. Hence Lagarde’s alleged gaffe can be easily understood.
Obviously all this is also a prelude to a sale of Italian companies and real estate sector, while it is increasingly likely that the rating agencies will downgrade Italy to junk from the current valuation of its public debt bonds, as a result of the 25 billion euros – albeit insufficient – spent as debt instruments to face the COVID-19 emergency.
As already mentioned above, while describing President Von der Leyen’s plan, nobody within the E.U. is still outside the old “austerity paradigm”, which works badly even when things go well. Let us not delude ourselves, in the future, about what the Popperian epistemologists called “paradigm shift”.
Hence de facto industrial stoppage due to the epidemics and E.U. Member States’ subsequent joint speculative action on the Made in Italy companies, as well as downward operations against all listed SMEs. In this regard, we should also recall the 2019 ruling of the Strasbourg Court on insolvent Municipalities, in which it was decided that the whole amount of local debt plus interest shall be taken over directly by the central State.
This is already a huge blow. Currently there are, in fact, 66 large insolvent Municipalities, with 54 small administrations in the Calabria region and 409 medium and small Municipalities in crisis, for various reasons, as well as 111 insolvent Municipalities in Sicily, all for amounts which are currently difficult to assess but, however, very close to the famous 25 billion euros invested as debt instruments to face the COVID-19 epidemics.
This is an evident manoeuvre to circumvent our fiscal and economic crisis, which will be used at the right time by our E.U. and non-E.U. competitors.
Furthermore, if – as many current leaders of the ruling parties maintain – there will be Italy’s access to the European Stability Mechanism, a European Court will judge whether private assets should play their role in the default procedure, in addition to the public ones.
It should also be recalled that 91% of Italian Municipalities are at risk of landslides and soil crumbling.
Hence, for all public assets and companies, there would be the classic bankruptcy procedure, which may also involve private assets. Just as happened with Greece.
And as was the case with Germany in Versailles, at the end of the First World War, thus paving the way for Nazism and the Second World War and, above all, for the European one.
What about temporary solutions? A double circulation of the old lira, which should be made interchangeable with the euro – something that, in fact, former Prime Minister Monti prohibited in 2012 and that Germany never dreamed of abolishing – or the circulation of forward and futures contracts, as done by Hjalmar Schacht, the Jewish and Freemason brilliant President of the German Central Bank under Hitler’s rule, who invented the MEFO bills to ward off the last blows of Weimar Republic’s hyperinflation.
With specific reference to public debt, the Bank of Italy speaks about an increase in debt – precisely with additional 9.8 billion new liquid assets of the Treasury, which brings it to 55 billion euros – with a further central government’s debt that has increased by 7.2 billion euros and that of local governments – whose bad financial situation has already been mentioned above – by 0.5 billion euros in 2020.
For the long-standing theory of Eurobonds, called for by many more or less experienced economists, there is still a key question.
What if, in fact – as a result of a possible persistence of the COVID-19 epidemics – the investors, skilfully manipulated – and we can well imagine by whom – turned to other bonds, such as BTPs?
Currently Italy’s public debt is held by 80% of private markets/operators, by 33% of European institutions and central banks and by 20% of “other entities”, namely small and medium savers or other organizations.
According to the European Commission, with a zero economic growth, at the end of this year the Italian public debt could reach, ceteris paribus, 2,435.7 billion euros out of a total EU-27 debt of 12,814 billion euros.
If the Italian economy is set again into motion at the end of May, as forecast by Cerved, our companies could recover a level of turnover even 1.5% higher than the one recorded at the beginning of the epidemics.
In essence, between 2020 and 2021 the COVID-19 epidemics is expected to cost companies 275 billion euros.
Certainly too much, but nothing that cannot be spread by a public debt carefully managed in its main components, if this data is disseminated among international investors. Hence we can definitely expand the range of buyers of our public debt bonds, carefully calibrated and even renewed, to open up to the financial markets in which we have ventured little in recent years: Great Britain, which certainly has a political, strategic and financial interest in opposing the E.U. policies, now that it is no longer a E.U. Member State; the United States, a market in which we have been present with our large companies, but much less with listed SMEs and other excellent companies; obviously China, but even India, not to mention Australia and New Zealand which, thanks to the London Stock Exchange – which knows the Milan Stock Exchange very well – could buy our bonds confidently.
Hence, we should no longer ask for charity from the E.U. financial markets, which have not shown any interest in our internal and economic situation. We should begin to make high-level propaganda and skilful promotion of Italy’s “image”, not with a tourist-oriented approach but with excellent financial expertise.
Moreover, there are those who – not heeding danger and experience – propose to turn the European ESM into the E.U. “Economy Ministry”, which could issue the famous Eurobonds or other instruments that, hopefully, would “sell like hot cakes” on the markets.
Does anyone know that nowadays countries compete, by all means, on their public debt bonds?
This operation – as debt instruments of the whole EU-27 – could raise the whole E.U. budget, so as to help the less “fortunate” countries.
The idea is good, in principle, but it does not take for granted what now seems obvious: the E.U. project to make Italy end up just like Greece – as in slow motion, like in sport events such as football and athletics.
Moreover, the famous one trillion euro budget for the Green Compact, equal to seven years of the E.U. whole budget, was in fact an advertising idea, but we cannot even imagine where we can get this huge amount of money.
According to other reliable banking sources, the situation of Italian SMEs in the COVID-19 epidemics phase will have an impact on the working capital of our Small and Medium-sized Enterprises equal to over 18 billion euros, out of an already calculated total of 342 trade receivables and payables.
Nevertheless, only for the whole 2020, the requirements for SMEs could reach 46 billion euros, including repayments of debt coming due and investment.
50% of this amount regards companies in Lombardy, Veneto and Emilia Romagna.
Creating debt to set again the economy into motion is of no use in the long run – if not as a stopgap measure. A direct interest-free financing from the Bank of Italy is needed but – and this is going to be tough – also from the ECB, an institution in which experts study the old microeconomics and believe that it is the whole economic theory.
With a view to solving the COVID-19 crisis, the State Rescue Fund – the well-known ESM – could resort to its “toolbox”, albeit this is very dangerous.
Within the ESM, there is the possibility to activate the Precautionary Conditioned Credit Line (PCCL), i.e. loans granted quickly to avoid the default, but which are NOT conditional upon a Memorandum of Understanding (MoU) of mandatory cuts in public spending and “structural reforms”.
This would mean a significant increase in unemployment, further compression of the internal market, as well as subsequent and obvious impact, as well as knock-on effects, for Italy’s companies. For an indebted government it is enough to sign a Letter of Intent, which is similar to a MoU, but is less imperative. Hopefully so, although no one has experienced it yet.
Furthermore, in the case of an Enhanced Conditions Credit Line of the ESM, with MoU-style reinforced guarantees which, I imagine, would be required from Italy, the effects would be directly proportional to the amount of credit granted and the average return time.
The ESM is therefore a trap and, in the long run, it would create the same disasters it would like to solve.
Microeconomics is not the whole economic theory. Today there is no soup, like the Marginalists’ one, having the maximum marginal value at the first spoon and the minimum value at the last one. Usually, you finish earlier.
Another nonsense, albeit very widespread, is the wealth tax called for by the IMF and other scarcely experienced economists.
The first house owned does not produce income, but an increase in taxation is created immediately during an economic recession and you do not need to be John Maynard Keynes to understand what would happen next.
Meanwhile, the big financial information agencies say far and wide that “there are 40 billion U.S. dollars of reasons to avoid the Italian public debt”.
Hence the real and future struggle will also be fought with the careful and authoritative explanation of how the Italian public debt is made, and above all by avoiding the counter-propaganda of some of our scarcely affectionate E.U. friends.
Germany and its Neo-imperial quest
In January 2021, eight months ago, when rumours about the possibility of appointment of Christian Schmidt as the High Representative in Bosnia occurred for the first time, I published the text under the title ‘Has Germany Lost Its NATO Compass?’. In this text I announced that Schmidt was appointed to help Dragan Čović, the leader of the Croatian HDZ party, to disrupt the constitutional structure of Bosnia-Herzegovina and create precoditions for secession of the Serb- and Croatian-held territories in Bosnia and the country’s final dissolution. I can hardly add anything new to it, except for the fact that Schmidt’s recent statements at the conference of Deutsche Atlantische Gesellschaft have fully confirmed my claims that his role in Bosnia is to act as Čović’s ally in the latter’s attempts to carve up the Bosnian Constitution.
Schmidt is a person with a heavy burden, the burden of a man who has continuously been promoting Croatian interests, for which the Croatian state decorated him with the medal of “Ante Starčević”, which, in his own words, he “proudly wears” and shares with several Croatian convicted war criminals who participated in the 1992-1995 aggression on Bosnia, whom Schmidt obviously perceives as his ideological brethren. The question is, then, why Germany appointed him as the High Representative in Bosnia?
Germany’s policy towards Bosnia, exercised mostly through the institutions of the European Union, has continuously been based on the concept of Bosnia’s ethnic partition. The phrases that we can occassionaly hear from the EU, on inviolability of state boundaries in the Balkans, is just a rhetoric adapted to the demands by the United States to keep these boundaries intact. So far, these boundaries have remained intact mainly due to the US efforts to preserve them. However, from the notorious Lisbon Conference in February 1992 to the present day, the European Union has always officially stood behind the idea that Bosnia-Herzegovina should be partitioned along ethnic lines. At the Lisbon Conference, Lord Carrington and Jose Cutileiro, the official representatives of the then European Community, which has in the meantime been rebranded as the European Union, drew the maps with lines of ethnic partition of Bosnia-Herzegovina, along which the ethnic cleansing was committed, with 100.000 killed and 1,000.000 expelled, so as to make its territory compatible with their maps. Neither Germany nor the European Union have ever distanced themselves from the idea they promoted and imposed at the Lisbon Conference as ‘the only possible solution’ for Bosnia, despite the grave consequences that followed. Nor has this idea ever stopped being a must within their foreign policy circles, as it has recently been demonstrated by the so-called Janša Non-Paper, launched a couple of months ago, which also advocates the final partition and dissolution of Bosnia-Herzegovina. Such a plan is probably a product of the powerful right-wing circles in the European institutions, such as Schmidt’s CSU, rather than a homework of Janez Janša, the current Prime Minister of Slovenia, whose party is a part of these circles, albeit a minor one. To be sure, Germany is not the original author of the idea of Bosnia’s partition, this author is Great Britain, which launched it directly through Lord Carrington at the Lisbon Conference. Yet, Germany has never shown a will to distance itself from this idea, nor has it done the European Union. Moreover, the appointment of Schmidt, as a member of those political circles which promote ethnic partition as the only solution for multiethnic countries, testifies to the fact that Germany has decided to fully apply this idea and act as its chief promoter.
In this process, the neighbouring countries, Serbia and Croatia, with their extreme nationalist policies, can only act as the EU’s proxies, in charge for the physical implemenation of Bosnia’s pre-meditated disappearance. All the crimes that Serbia and Croatia committed on the Bosnian soil – from the military aggression, over war crimes, ethnic cleansing and genocide, up to the 30 year-long efforts to undermine Bosnia’s sovereignty and territorial integrity – have always had a direct approval and absolute support of the leading EU countries. During the war and in its aftermath, Great Britain and France were the leaders of the initiatives to impose ethnic partition on the citizens of Bosnia-Herzegovina, and now Germany has taken up their role. In such a context, the increasing aggressiveness of Serbia and Croatia can only be interpreted as a consequence of the EU’s intention to finish with Bosnia for good, and Schmidt has arrived to Bosnia to facilitate that process. Therefore, it is high time for the citizens of Bosnia-Herzegovina to abandon any ilussions about the true intentions of the European Union and reject its Trojan Horse in the form of the current High Representative.
Should there be an age limit to be President?
The presidential elections in Bulgaria are nearing in November 2021 and I would like to run for President of Bulgaria, but the issue is the age limit.
To run for President in Bulgaria a candidate needs to be at least 40 years old and I am 37. I am not the first to raise the question: should there be an age limit to run for President, and generally for office, and isn’t an age limit actually age discrimination?
Under the international human rights law standard, putting an age limit is allowed in the context of political participation under the right to vote and the right to run to be elected. Human Rights Committee General Comment No.25 interpreting the International Covenant on Civil and Political Rights states that an age limit has to be based on objective and reasonable criteria, adding that it is reasonable to have a higher age requirement for certain offices. As it stands, the law says that having an age limit for president is not age discrimination, but is 40 actually a reasonable cut-off? National legislations can change. We need to lower the age limit and rethink what’s a reasonable age for President, and not do away with all age limits.
We have seen strong leaders emerge as heads of state and government who are below 40 years of age. Sanna Marin, Prime Minister of Finland, became Prime Minister at 34. Sebastrian Kurz, the Prime Minister of Austria, was elected at 31. Jacinda Ardern, Prime Minister of New Zealand, assumed her position at 37. So perhaps it is time to rethink age limits for the highest offices.
The US has plenty of examples where elected Senators and Congressmen actually beat the age limit and made it despite the convention. The age limit for Senator in the US is 30 years old. Rush Holt was elected to the US Senate at 29. In South Carolina, two State Senators were elected at 24 years old and they were seated anyways. The age limit for US president is 35 years old.
In Argentina, the age cut-off is 30. In India, it is 35. In Pakistan, it is 45 years old. In Turkey, it is 40 years old. Iceland says 35 years old. In France, it is 18.
Generally, democracies set lower age limits. More conservative countries set the age limit higher in line with stereotypes rather than any real world evidence that a 45 year-old or 55 year-old person would be more effective and better suited to the job. Liberal countries tend to set lower age limits.
40 years old to be a President of Bulgaria seems to be an arbitrary line drawn. And while it is legal to have some age limits, 40 years old seems to be last century. Changing the age limit for president of Bulgaria could be a task for the next Bulgarian Parliament for which Bulgarians will also vote on the same date as they vote for President.
Without roots, no future. Germans and Russians – Decoupling ideologies
Krieg ist das Ergebnis einer falschen Politik und sein Erbe Not und Elend.1 (From Gestrüpp meines Lebens, a diary kept by my grandfather, Helmuth Banik)
…next – Prussia, family roots and identity of heart
Cultural diversity or universal uniformity? Peaceful co-existence of nation-states or institutional global governance with international organizations and their sphere of influence gaining more and more ground, even in everyone’s private life? Which future will be ours?
Roots, earth and homeland—while unearthing the deepest parts of my family history and, at the same time, German history, my uninhibited view of my Prussian roots continues to pave my way towards a new future. Our world today is on the verge of a new beginning. It is up to us to decide which way humanity will go in the future. An individual’s identity is complex and has many layers that need to be uncovered. So, too, is our world: complexly composed of many layers that need to be uncovered for its roots to be revealed—as there is no future without roots.
Thus, it is necessary to decouple from all ideas and ideologies that have long determined political activity around the world. Let us start with Russia and Germany, since their destinies are forever linked; historically, culturally and geopolitically.
“I have sympathy toward the German people; my ancestors came to Russia from Westphalia under Peter the Great. Great nations can stay dormant for some time, but they always wake up!” Quote from a Russian friend
Sapere aude! In the spirit of Immanuel Kant, the great philosopher of Königsberg, let us reinvent and imagine the world in which we want to live!
Without Russia, not a better world in sight
The world, but especially the European Union (EU), is at a crossroads. The old structures and beliefs of the current governance seem to be collapsing before our very eyes. How simple was yesterday’s world. The enemy, namely Russia, was in the East. A bipolar world vision, divided between “the good” and “the bad.”
In the West, the EU with its main ally, the United States, represents the good world, an ideal world—in short, the world of the G7. Countries with a democratic system under the rule of law in which freedom is one of the fundamental values: All other countries in the world are measured and judged according to this ideal, especially if they want to enter this “club of the free world.”
And now? What has become of this G7 world? The measures taken to fight the pandemic were lockdown and other more or less draconian actions that deprived a large part of the world’s population of their fundamental rights, whatever the political regime or national culture. This is the cruel reality of a uniform crisis management policy that is visibly shared by democracies and authoritarian regimes. The main characteristics of this policy are the intransigence of clinging to the rule of the political-economic elites and, with that, the absolute will to remain in power and control communications and, as such, the population. The boundaries separating democracies and authoritarian regimes are disappearing, and a uniform technocratic world without identity is emerging. Propaganda—in this case, the massive communication of fear and hatred—is getting a second wind, this time not on a national level but on a global institutional scale. Moreover, it seems to be accompanied by a new Cold War strategy: According to an EU strategy paper, China is classified as a “systemic rival” (ecfr.eu 2020) and, together with Russia, is considered a new challenge to NATO by the Biden administration (Le Figaro 2021).
And the Russian president? Vladimir Putin always keeps the door for cooperation wide open, as he makes clear in “Offen sein, trotz Vergangenheit,”2 the recent article published in Die Zeit in which he states: “Ich möchte noch einmal betonen: Russland plädiert für die Wiederherstellung einer umfassenden Partnerschaft zu Europa.”3
Moreover, the opportunities offered by the Belt and Road Initiative (BRI) do not seem to be taken into consideration. On the contrary, the G7 initiative to “Build Back a Better World” (B3W) is an alternative to the BRI. Conflict instead of cooperation. Yet, we should keep in mind: It is not possible to have a better world without integrating Russia.
“The technotronic era involves the gradual appearance of a more controlled society. Such a society would be dominated by an elite, unrestrained by traditional values. Soon it will be possible to assert almost continuous surveillance over every citizen and maintain up-to-date complete files containing even the most personal information about the citizen. These files will be subject to instantaneous retrieval by the authorities.” (Zbigniew Brzezinski in Between Two Ages: America’s role in the technotronic era)
Humanity’s ultimate battle
There is an urgent need to continue questioning the sustainability of a power, political system and governance that are global—values and mercantilism, democracy and dictatorship, free market economy and planned market economy, diverse identities and universal uniformity, nation states and institutional global governance.
What future awaits us?
a political system of “universal digital governance,” of total and totalitarian surveillance with a capitalist state economy, that is, a system in which humanity serves the system by constantly adapting to its different benchmarks, a technocratic world order according to Brzezinski,
new political structures that are very much at the service of humankind and that ensure a free and autonomous life for everyone in the spirit of Immanuel Kant’s sapere aude, that is, global governance that ensures a peaceful return to the primacy of humanity, relations and nations, deeply rooted in its own history, a return to cultural diversities and identities, to creation and, thus, a return to the roots.
The geographer and geopolitician Jacques Ancel set the vision of French geopolitics. According to Ancel, man is the creator of global governance, of identities and, subsequently, also the borders of civilizations, where “human groups … reach a harmonious balance and … end up recognizing borders deriving from a common memory, history, culture and language.” It is “a nation of the heart in itself, not rational” (Ancel 1938, Banik 2021).
Neither Germany, nor China, nor the U.S., nor Russia is an isolated paradise. No country can claim to know the absolute truth. Violence, increased global competition (for natural resources, food, water, etc.) and international terrorism are forcing us to face up to the current realities, to abandon any ideology driving ideas such as the European project, socialism with Chinese or even Russian characteristics, or the ideology prevalent in the United States, which styles itself leader of the free world (Banik, 2016, 2019).
Ultimately, it is up to us to decide which path humanity will take.
“Kultur hat nie Grenzen gekannt. Kultur war immer unser gemeinsames Gut und hat die Völker verbunden.”4 Vladimir Putin, 25.9.2001
The big European house
According to Jacques Ancel, “human groups … reach a harmonious balance and … end up recognizing borders deriving from a common memory, history, culture and language.” It is thus important to encourage community spirit and to create human bonds—instead of strategic alliances—of geographical proximity and to overcome ideologies. The only way is to integrate Russia by creating a great pan-European house and, at the same time, taking advantage of the BRI as a link that encompasses the Eurasian region.
Russia and Germany have a common memory and their destiny is forever linked. It is up to Germany to finally assume its responsibility and play the key role in creating this space of peace and security. Integrating Russia is crucial if we are to create new political visions which serve humankind and which ensure a free and autonomous life for everyone.
Geographically, Russia is the largest country in Europe. Geographically, Europe is much larger than the territory of the EU. The EU, and subsequently Germany, must at all costs avoid being caught up in the tension that seems to be developing between China, Russia and the U.S. In case of a military conflict, the major nations will win while the EU will be the main loser. The current danger is the image of the resurgent enemy resulting from the aggressive policy of the Biden administration and the EU towards China and towards Russia. Two almost “military” fronts have thus been created. In fact, the Cold War has never ended but merely changed its guise.
Rise in military spending
According to the Sipri press release of April 26, 2021: “The five biggest spenders in 2020, which together accounted for 62 per cent of global military expenditure, were the United States, China, India, Russia and the United Kingdom. Military spending by China grew for the 26th consecutive year.” China has focused on its navy. It is the second largest military spender after the United States. In 2020, “China’s military expenditure is estimated at $252 billion in 2020, representing an increase of 1.9 per cent since 2019 and 76 per cent since 2011.” (Sipri 2021). “Russia’s military expenditure increased by 2.5 per cent in 2020 to reach $61.7 billion. This was the second consecutive year of growth. Nevertheless, Russia’s actual military spending in 2020 was 6.6 per cent lower than its initial military budget, a larger shortfall than in previous years” (Sipri press release, 26.4. 2021).
From the perspective of the two fronts—“The Chinese Enemy” and “The Russian Enemy”—one must also consider U.S. military spending in 2020, “[which] reached an estimated $778 billion, representing an increase of 4.4 per cent over 2019. As the world’s largest military spender, the USA accounted for 39 per cent of total military expenditure in 2020” (Sipri press release, 26.4. 2021).
In view of the world’s ever-increasing military outlays, it is urgent that we revitalize and reform the instruments already in place, such as the NATO-Russia Council, the Organization for Security and Cooperation in Europe (OSCE), the EU-Russia dialogue and the various regional formats such as the Arctic Council. It is worth noting the bilateral agreements of strategic importance between China and Russia in the field of nuclear energy and within the framework of the Polar Silk Road, as well as the importance of the Eurasian Economic Union, in which Serbia, for one, has a free trade agreement.
Towards a uniform, faceless, controlled world?
China’s withdrawal or Chinese deglobalization
China’s 14th Five-Year Plan is the continuation of the country’s efforts to reform and modernize, but the “dual circulation” model also marks an important step towards China’s deglobalization. This “dual circulation” strategy welcomes foreign investment, but only in those products and services that are not (yet) available in China. Therefore, China aims to reduce its economic dependence on foreign countries and focus on building its own capacity. Nevertheless, it also wants to boost bilateral agreements, and is pursuing the BRI. The Regional Comprehensive Economic Partnership (RCEP) follows the same logic, pursuing reinforcement on the geographical and geopolitical level in Eurasia. With the implementation of the RCEP, the largest free trade area in the world is being established. On the other hand,
“China’s FDI in Europe continued to fall, to a 10-year low: Shrinking M&A activity meant the EU-27 and the United Kingdom saw a 45 percent decline in completed Chinese foreign direct investment (FDI) last year,…” (Merics 2021).
“Keep the Soviet Union out, the Americans in, and the Germans down”
The United States is pursuing a strategy, particularly in the area of foreign policy, that was initiated by Donald Trump, meaning “America first” when it comes to economic, military and geopolitical issues. American foreign policy is, above all, marked by the withdrawal of American troops from Afghanistan. Note that, contrary to what Trump decided in 2020, Biden has reversed the partial withdrawal of U.S. troops from Germany (Politico 2021). Lord Ismay’s narrative seeking to “keep the Soviet Union out, the Americans in, and the Germans down” is still relevant today.
The EU: a theater of conflict between China and the United States
Europeans have an increasingly critical view of China. China is seen as a systemic rival for the EU. The pandemic has exposed problems, including strategic dependence on imports from China. Therefore, the EU wants to remain credible at the international level and is seeking closer cooperation with the West, especially the United States, rather than an adjustment of its economic relations with China independent of the Americans.
Germany uprooted and war trauma
Germany seems to be stuck in a kind of “time loop.” Even though the Berlin Wall has long disappeared, there is still no uninhibited view of an open perspective towards the East, towards Germany’s historical East, especially towards Russia and the chances for cooperation that the country offers. German public opinion is still manipulated. As a result, it remains frozen in distrust of Russia. Further, the experienced war trauma—destruction, displacement and loss of homeland—has disconnected a whole generation from its own history, leading to a partial loss of its own identity. This disconnection has been unconscious, inherited by the descendants.
Towards total surveillance?
Basically, the conflict between the different ideologies and the omnipresence of the “pandemic” in the mainstream media strongly distract our attention from the real battle that has been going on in the background for a very long time.
The battle for world domination is not the conflict between different nation-states, e.g. the U.S., China or Russia, or between different political systems, democracy or dictatorship, but it is the struggle for supremacy by the lobbyists and by international institutions and organizations such as the World Economic Forum (WEF), the EU institutions, the World Trade Organization (WTO) and by the various interest groups and industrial associations that seem to be striving for a uniform, controlled world made of public-private partnerships, without nation-states, without cultural diversity, without a past, without a history, without roots and without identity.
“Smart government” and total surveillance
The advance of artificial intelligence and the 4th Industrial Revolution are visibly shifting geopolitics to geoeconomics. The need for control of international markets prevails over military conflicts. Large technological communication companies, such as social media giants (Facebook, Twitter, etc.), search engines like Google and Baidu, platforms like Amazon and Alibaba, cooperate more and more closely with their respective governments, thus creating public-private partnerships (PPPs). Back when geopolitics prevailed, the state’s sovereignty was ensured by the military control of the country and its borders. Now we see an increasing interdependence and cooperation between different governments, technology companies and large enterprises—“global players,” such as Big Data and Big Pharma. We are clearly heading towards a political system based on the “state economy,” as is already the case in China. In China, the state-owned enterprises, the “national champions,” are playing a predominant role not only in China but also on the international markets. In order to better face the Chinese competition, the EU has also launched a new industrial strategy to support and finance the creation of industrial alliances, a kind of “European industrial champions” (touteleurope.eu 2021)—even if the approach is not uniformly supported within the EU.
With an increasing number of PPPs, the establishment of state capitalism blurs the boundaries between business and government. In China, Russia and the United States, this issue is played out at the national level, while on the European continent it is advanced by the EU institutions. What is insidious is that, thanks to the cooperation between politics and technology companies, the media propaganda effectively supports and feeds this structural change. Thus, fundamental rights and identities are slowly being extinguished in favor of the uniformity of the corporate market.
Roots, identities, nations
Russians, Poles and Germans not only have a common history but shared cultural footprints. This history is a strength and not a weakness. According to Ancel’s vision, these three countries are at the crossroads of arbitrary borders and of borders of civilization. There are, on the one hand, the so-called arbitrary borders, which are more fraught, more strategic borders that have resulted from military pretensions. The borders of civilization, on the other hand, are more permanent as these are based on a common memory, common history and common language arising from a group of humans in equilibrium. The borders of civilization are “nevertheless more complicated because they are the object of numerous political and commercial interpretations”—even if the commercial justifications aim at “clearing a path” and not “enclosing” as the military justifications do (Ancel 1938, Banik 2021). For Russia, Poland and Germany, reconciling the past means “making a path in harmony,” our path back to our shared roots.
According to Ancel, the frontier is “a political isobar that fixes, for a certain time, the equilibrium between two pressures: the equilibrium of mass and the equilibrium of forces” (Ancel 1938). The real problem is not the question of borders. Borders will always exist, even in a globalized world. “There are no problems of borders. There are only problems of Nation” (Ancel 1938). Jacques Ancel argues for mankind as creator. “One does not revise borders, except by force; one modifies minds” (Ancel 1938; Lomnica 1938 foreword).
Quoting Vladimir Putin:
“Und wir können es uns einfach nicht leisten, die Last früherer Missverständnisse, Kränkungen, Konflikte und Fehler mit uns herumzuschleppen. Eine Last, die uns an der Lösung aktueller Probleme hindert.”5 Die Zeit, 2021
Regaining a sense of self
We, the Germans, unfortunately refused to take the hand that Putin extended to us in his speech to the Bundestag on September 25, 2001. The window of opportunity is wide open again. The German people need to reconnect to their entire cultural past. It is up to every German to discover his or her own roots, reconnect to his or her family past, healing the wounds and thus helping Germany to integrate its entire history and become whole again.
Similar to my path back to my Prussian roots, let us take an uninhibited view of our roots and seize this chance in order to create new prospects for German-Russian cooperation.
As Putin said in 2001:
“Ich bin überzeugt: Wir schlagen heute eine neue Seite in der Geschichte unserer bilateralen Beziehungen auf und wir leisten damit unseren gemeinsamen Beitrag zum Aufbau des europäischen Hauses.”6
There will be no better world, especially for Europe, without Russia’s integration into the pan-European house – and no better world if Germany is still cut off from its roots.
…Back to the roots
Specialist in geopolitical issues, doctorate from Sorbonne Nouvelle University;
speaker and guest lecturer on geopolitical, economic and political issues, focusing on Jacques Ancel’s geopolitical vision of “the identity of the heart.”
Author of articles published on moderndiplomacy.eu, russiancouncil.ru (RIAC) and worldscientific.com, and author of the book Les relations Chine-Europe à croisées des chemins, published by L’Harmattan, Paris. Katja is the descendant of ancestors who lived in East and West Prussia. Her family on her mother’s side had to flee from Königsberg in East Prussia in January 1945 and, on her father’s side, from Schneidemühl in West Prussia. She increasingly connects the topics of identities, roots and borders in her geopolitical views.
Visible roots: Kurort Oybin, Germany 2021 and 1955:
Great-granddaughter and great-grandfather Friedrich Herbst
 “War is the result of the wrong policy and its legacy is distress and misery.”
 “Being open, despite the past.”
 “I would like to emphasize once again: Russia advocates for the restoration of a comprehensive partnership with Europe.”
 “Culture has never known borders. Culture has always been our common good and has united peoples.”
 “And we simply cannot afford to carry around the burden of past misunderstandings, offenses, conflicts and mistakes. A burden that prevents us from solving current problems.”
 “I am convinced that today we are turning a new page in the history of our bilateral relations and that we are making our joint contribution to the construction of the European house.”
Author’s Note: The paper was previously published by the Russian International Affairs Council (RIAC)
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