corruption

One little-noticed side effect of the Greek debt crisis is that it is playing into the hands of those who oppose faster progress on enlarging the European Union.  Western Balkan countries such as Albania, Croatia, Macedonia, Montenegro and Serbia are queuing up at the EU’s door, but only Croatia has any chance of membership in the next three years.

Among the reasons is that Greece, the first Balkan state to enter the EU (in 1981), has been exposed as a country that not only ran ruinous and reckless fiscal policies for many years, but deceived its partners with false data in order to join the eurozone at the start of this decade.  Rightly or wrongly, some policymakers in EU national capitals argue that this unhappy experience demonstrates that, when it comes to public probity, Balkan states are just not to be trusted. 

George Papandreou, Greece’s socialist prime minister, is an honourable and courageous politician who has done a great deal in his career to improve his country’s image in the eyes of its European Union partners.  So it cannot have been easy for him to announce today that he was requesting the activation of the €40bn-€45bn eurozone-International Monetary Fund financial rescue package for Greece.

No eurozone member-state has suffered such a humiliation since the euro’s launch in January 1999.  But Papandreou must have feared, as soon as he took office after last October’s election, that emergency foreign assistance was going to be necessary

Since February 1999, when the Organisation for Economic Co-operation and Development’s anti-bribery convention came into force - with the aim of reducing bribery of foreign officials in international business deals - the US has brought 103 cases, Germany more than 40, France 19 and the UK just one.  So says “Global Corruption Report 2009: Corruption and the Private Sector”, a study published on Wednesday by Transparency International, the anti-corruption watchdog.

From a British point of view, the report makes uncomfortable reading.  “UK companies still have a long way to go to increase their awareness and adopt robust anti-bribery compliance programmes,” it says. 

Slovenia’s announcement last Friday that it is ready to lift its veto on Croatia’s European Union entry talks gave a welcome boost to the EU enlargement process.  Other than Iceland’s decision in July to apply for membership, enlargement has been running into one brick wall after another in the past couple of years.

This is partly because of petty arguments such as the Slovenian-Croatian maritime border dispute (still unresolved, in spite of last Friday’s breakthrough) which held up Croatia’s talks.  But it is also because of a certain fatigue and disillusion in many of the EU’s 27 member-states, especially in western Europe, about admitting new entrants.