Monthly Archives: January 2010

The European Union should be pleased with the outcome of the first round of Ukraine’s presidential election.  Not because the politician who received the most votes was former premier Viktor Yanukovich, the most pro-Russian of the main candidates.  Rather, because the election for the most part met the very high standards of democracy, legality and fairness that the EU had demanded of Ukraine to sustain the process of bringing the country closer to the 27-nation bloc.

It was a genuine contest among a variety of distinctive candidates, and the second, knock-out round on February 7 between Yanukovich and Yulia Tymoshenko, the incumbent prime minister, will be a genuine contest, too.  Compare this with the tainted presidential election of November 2004, which precipitated the Orange Revolution that propelled Viktor Yushchenko to power.  In terms of democracy and the political maturity of society, Ukraine has progressed a long way over the past five years. Read more

Greece’s fiscal emergency is a most mystifying crisis.  At one level, it is the most serious test of the eurozone’s unity since the launch of the euro in 1999.  Unless correctly handled, the problem with Greece’s public finances could shake the foundations of Europe’s monetary union.

At another level, however, Greece itself seems to be getting off remarkably lightly.  Germany suffered a 5 per cent slump in gross domestic product last year; Greece is expected to have suffered a fall of about 1.1 per cent.  Spain has a 19 per cent unemployment rate; Greece’s rate is only 9 per cent.  The Irish government is imposing extreme austerity measures on its citizens to protect Ireland’s eurozone membership; Greece’s government is, so far, doing nothing of the sort.  No wonder Greece’s 15 eurozone partners, the European Commission and the European Central Bank are furious with the political classes in Athens. Read more

Say what you will about Rumiana Jeleva, Bulgaria’s nominee for the new European Commission, but she is one hell of a dancer.  A Youtube clip shows her doing the rumba in what appears to be Bulgaria’s equivalent of Strictly Come Dancing – and there’s no question, it would be a severe injustice if she didn’t get 10 out of 10.

It would be less of an injustice, however, if the European Parliament refused to support her appointment as the EU commissioner for humanitarian aid and crisis response.  This is partly because, in her parliamentary hearing on Tuesday, she did not convincingly answer some of the many questions that MEPs asked her about her financial affairs.  She denied allegations of impropriety, but she seemed remarkably hazy about the details of her involvement with a consultancy that specialised in privatisation matters. Read more

Barnier faces grilling at European Parliament (Nikki Tait, FT)

Trade war fears raised on carbon border tax (Joshua Chaffin and Tony Barber, FT) Read more

As with many things involving the European Parliament, there is an air of unreality about this week’s confirmation hearings of the nominees to the next European Commission.  It would be entirely mistaken to think that the process bears much resemblance to the kind of rigorous hearings that presidential appointees are obliged to undergo in the US Senate.  To judge from the proceedings so far in Brussels, the questions asked in the European Parliament’s committees are far less probing, and the nominees are able to get away with answers that are at best platitudinous, at worst utterly incoherent.

There are some honourable exceptions.  The best performance has been that of Belgium’s Karel De Gucht, the EU trade commissioner-designate, who wasn’t afraid to speak frankly about his opposition to a carbon border tax, a policy favoured among others by French President Nicolas Sarkozy.  Equally authoritative were Spain’s Joaquín Almunia, who will run the important competition portfolio, and Finland’s Olli Rehn, responsible for economic and monetary affairs.  This trio looks set to be the powerhouse of the next Commission, along with France’s Michel Barnier, the internal market commissioner-designate. Read more

How many days can a Spanish kite stay in the air?  About four, to judge from the speed with which Germany and the UK have shot down a proposal from José Luis Rodríguez Zapatero, Spain’s prime minister, to introduce binding mechanisms to enforce economic reform in the European Union.

The short lifespan of Zapatero’s brainwave, which he unveiled last Thursday in Madrid, is hardly surprising.  Not that it’s an especially bad idea – in principle.  Deep in their hearts, most European policymakers know the EU would benefit from closer fiscal and economic policy co-ordination, particularly in the eurozone.  They also know that the lesson from the EU’s ill-starred Lisbon agenda, which notoriously set out – and failed - to turn the bloc into the world’s most competitive economy by 2010, is that it was all too easy for governments to pay lip service to reform without doing much about it in practice (except for the virtuous Nordic countries). Read more

European Commission nominees face grilling (Tony Barber, FT)

The Iceland debate: to pay or not to pay (FT special feature) Read more

Tuesday’s murder of Bobi Tsankov, a young Bulgarian journalist who wrote about his country’s over-mighty gangsters, took place in broad daylight in a crowded street in the centre of Sofia.  As a statement about the power of organised crime in Bulgaria, it could hardly have been more explicit.

Moreover, it could hardly have come at a worse time for Prime Minister Boyko Borissov’s government.  Borissov came to power in July facing the arduous task of regaining the trust of Bulgaria’s European Union partners.  Some of them bitterly regretted their decision to let Bulgaria join the EU in 2007 before it had properly confronted the scourge of organised crime.  A 2008 European Commission report on Bulgaria’s progress in tackling corruption and organised crime was, in my view, the most negative ever produced about a EU member-state. Read more

Here is the latest video from the FT’s View from Europe series:

Herman Van Rompuy, the European Union’s first full-time president, is getting down to business.  Hitting the ground running?  Not exactly.  But in various subtle ways the mild-mannered, philosophically inclined former Belgian premier is already making an impact on the way the EU goes about its work.

On Monday, his first official working day, he announced that he was summoning all 27 EU heads of government to Brussels on February 11 for an unscheduled summit on economic policy.  This statement didn’t attract much attention, because plans for such a summit were being laid even before Christmas.  But the announcement was significant nonetheless.  Chairing summits is one of the few duties that the EU’s Lisbon treaty specifically reserves to the full-time president.  By calling an unscheduled summit, Van Rompuy was signalling to the world that he intends to use his presidential authority to the full. Read more