EU

  • Edward Luce examines EU-US drift: “Without US leadership, the transatlantic alliance will not spring back to life.”
  • Philip Stephens argues that London’s Heathrow airport has turned its “manifest failings into a potentially golden asset” by convincing travellers that “the only way to improve the dismal lot of passengers is guarantee Heathrow still higher profits”.
  • David Pilling asks: what is the real point of GDP and can it ever be accurately measured?
  • Smart view: the French government hopes that its package of business reforms will encourage investment – the FT’s Michael Stothard sees whether France’s business community is convinced.
  • The conflict between China and Vietnam in 1979 lasted less than a month, but the legacy of ferocious fighting permeates the sour relations between the two countries even now.

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Tony Barber

 

Croatia's economy is not so sunny

The slow, painful healing of the Greek economy after a catastrophic debt crisis raises an interesting question. Which country now holds the title of No.1 Economic Basket Case of the European Union?

The answer is surely Croatia. It is a small country (4.3m people, not even 1 per cent of the 28-nation EU’s 506m inhabitants) that did not join the EU until last July. It is not a eurozone member. It has gorgeous islands and beaches where life seems distinctly pleasant. So Croatia and its economic troubles often slip under everyone’s radar.

But Croatia is now in its sixth successive year of recession. During this time it has lost almost 13 per cent of its gross domestic product. Unemployment is about 17 per cent of the workforce, and among young people the rate is close to 50 per cent. Read more

David Gardner

The focus in last week’s European elections was on the seismic waves of the distinct currents of Euro-populism and reaction that “earthquaked” to the top of the polls in France, Britain (or at least England), Denmark and Greece. But arguably the most intriguing insurgency was Podemos (We Can) in Spain, a phenomenon worth examining outside the swish and swirl of populism.

Much of what I have seen written about Podemos has them “coming out of nowhere” – a cliché employed by politicians and analysts that means “we didn’t see them coming”. Yet a three-month-old party with a budget of barely €100,000 shot into fourth place with one and a quarter million votes and five seats in the European Parliament – similar to Syriza, the Greek left-wing party they plan to hitch up with.

The eruption of Podemos and its compellingly outspoken leader, Pablo Iglesias, has already triggered the fall of Alfredo Perez Rubalcalba, the Socialist secretary general who has presided over the party’s worst electoral performance since democracy was restored in 1977-78. But while obviously a rising current of a new left, Podemos could be a broader catalyst for political change in Spain and beyond. Read more

The differing responses to the Ukraine crisis
This week, German Chancellor Angela Merkel is in Washington for talks with President Barack Obama, and Ukraine will top the agenda. Washington has led the way on sanctions, imposing asset freezes and travel bans on dozens of senior Russians and scores of companies, in an attempt to show Russia’s President Vladimir Putin that his interference in Ukraine will bring rising economic costs. The EU on the other hand, seems deeply resistant to tougher economic sanctions, given the much more important ties between Europe and Russia. In this week’s podcast, Ben Hall, world news editor, is joined by Geoff Dyer, Washington correspondent, and Stefan Wagstyl, Berlin bureau chief, to discuss how the two leaders should handle the escalating situation

Gideon Rachman

Wednesday night’s debate in Britain between the standard-bearers of the pro- and anti-EU camps came out as a victory for the eurosceptic, Nigel Farage, over the pro-European deputy prime minister, Nick Clegg. That is not my judgement, it is the verdict of the polls. A snap poll showed that 57% of viewers had Farage winning, whereas 36% had Clegg ahead. That verdict is extra-depressing for pro-Europeans since the polling company weighted the audience to make sure that it was as neutral as possible. Read more

There was good news for Europe’s farmers this week after a survey of EU citizens showed strong public support for the much criticised common agricultural policy. French farmers, who rely on EU subsidies for about half their income, will be especially glad to hear that Europeans polled by the latest Euro Barometer survey place an increasing importance on the challenges of developing agriculture while preserving the environment .

The French certainly believe the farmer is crucial to safeguarding the countryside as well as producing their food as the recent Salon de l’Agriculture showed. One of the world’s largest food and farm shows, it is held every year close to heart of Paris and this year drew a record 703,000 visitors.

People come here to revel in the best of the French terroir – the people, the food and the drink that make up rural France. The Salon is a mandatory stop for any politician with ambition, and this year everyone from President Francois Hollande to hopefuls in the race for Paris mayor made an appearance. Read more

Tony Barber

Orient Express

I was passing through eastern Croatia the other day and found myself in Vinkovci, a pleasant town not far from the Danube river border with Serbia. As any Agatha Christie enthusiast will tell you, Vinkovci is the place in Murder on the Orient Express whereSamuel Ratchett, a shady American traveller, is bumped off while the famous train is stuck in a snowdrift. Read more

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  • The United Arab Emirates is hoping to deliver public services using drones.
  • Mitochondrial replacement was developed in the UK, but it might be lost to the US because of government procrastination.
  • Wondering what will happen now that the Swiss have backed immigration quotas? Take a look at our Q&A on the topic.
  • Gideon Rachman looks at what it means now that two German institutions have registered objections to the policies underpinning the euro. He has also mulled over whether the EU should take punitive action over the Swiss vote – prompting quite some debate.
  • Australian authorities have published a graphic novel, seemingly aimed at deterring asylum seekers.
  • The New York Times looks at the conflict faced by Palestinians who opt to take jobs in Israeli companies in the occupied West Bank.
  • Some Russians are mourning the pre-Putin, pre-Olympic Sochi of their childhoods.

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Gideon Rachman

Guy Verhofstadt (Nicolas Maeterlinck/AFP/Getty)

The three main candidates to be the next head of the European Commission are now clear: Martin Schulz will be the left’s candidate; Guy Verhofstadt will be the standard-bearer for the liberals; and Jean-Claude Juncker will be the candidate of the centre-right, having apparently secured the all-important backing of Angela Merkel. (The German chancellor’s office has declined to confirm officially that Merkel is backing Juncker – but press reports, including in the FT, seem pretty certain.)

The most striking thing about this list is how very traditional it is. The EU has just been through a wrenching crisis that has raised questions about its very survival. And it is also now a club of 28 countries. But the three main candidates for Commission president are all traditional European federalists – drawn from the six founding member states. Read more