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Members of the Armed Forces setting up a pavilion at Ifema for the Covid-19 treatment [Defence].

Members of the Armed Forces setting up a pavilion at Ifema for the treatment of Covid-19 [Defence].

COMMENTARY / Salvador Sánchez Tapia*

The Spanish government's declaration of a state of alarm on 15 March as an instrument to fight the spread of COVID 19 has brought with it the not very usual image of soldiers of the Armed Forces (FAS) operating in major cities and roads throughout Spain to cooperate in the fight against the virus.

For most Spaniards, the presence of military units carrying out their missions on public roads is a rarity to which they are not accustomed, with the exception of the relatively frequent activity of the Military Emergency Unit (UME) in support of civil society, which is well known to a public that, in general, values it very positively.

Apart from these performances, it can be said that the image of uniformed soldiers working directly in front of the public is not a common one. This subject of support is not, however, a novelty, and responds to a long tradition of social attendance lent by the military institution to its fellow citizens when called upon to do so.

Several elements in our recent history have contributed to producing what seems to be a certain distancing between Spaniards and their Armed Forces. These include the shift in the Armed Forces' missions abroad with the birth of the democratic regime in 1975; the long years of the fight against ETA terrorism, which led Spain's soldiers to hide their military status from the public in order to safeguard their security; the progressive reduction in the size of the Armed Forces, which eliminated many of the provincial garrisons maintained by the Armies; and the end of military service, which ended up making the Armed Forces unknown to their citizens.

This detachment, if it has existed or does exist, has been one-way, for even at times when the military institution may have been most overlooked, soldiers have remained close to their fellow citizens, from whom they come, and whom they serve, supporting them in the most difficult situations. Numerous examples testify to the military's long record of service to the citizenry. To corroborate this statement, it is sufficient to cite cases such as the military support in the floods in Valencia in 1957; Operation "Alazán", carried out in 1981 in support of the State Security Forces and Corps in their fight against ETA terrorism, sealing the Franco-Spanish border; Operation "Centinela Gallego", in which Army units have been monitoring the Galician mountains for years to prevent forest fires; the fight against the spread of camalote in the Guadiana River; and the construction of mobile bridges in numerous towns throughout Spain, such as Montblanc, to restore communications after violent meteorological phenomena had interrupted them.

On this occasion, it was the declaration of the state of alarm that brought the Armed Forces to the forefront of public attention. Given the novelty of this intervention, it seems appropriate, at this point, to make a reference letter to the rationale behind the decision of employment of the military instrument, and to explain what can and cannot be expected from the actions of the Armed Forces in this subject situation.

The coronavirus pandemic sample clearly demonstrates the reality that the security challenges facing modern societies require a cooperative response multidisciplinary, in which all the forces of society participate, contributing their particular capabilities to produce the synergy required to solve a crisis. The Armed Forces cannot remain outside this effort, and must act on an equal footing with other public and private actors. At times, when the crisis is of a military nature, they will do so by leading the effort; at others, they will assume a support function for other actors, which they will carry out without seeking any leading role subject .

In the specific case of this crisis, the contribution of the Armed Forces to the effort by deploying resources responds not merely to an intention to graphically capture this reality, but also to the recognition that the crisis will be long, that it will require the cooperation of all, and that the solution requires the contribution of resources beyond the ordinary ones.

The main mission of the Armed Forces is the military defence of Spain against external threats. From this mission derives its organisation, its preparation, its dimensions, and the equipment and armament that equips it, optimised, within the possibilities of the Nation's human and material resources, and from agreement with the will of the Spanish people, to respond to the demands of this mission, which is its true raison d'être [1].

This does not mean that armies cannot and should not carry out other missions, which they will carry out to the best of their abilities. agreement In fact, from a legal point of view, military participation in the coronavirus crisis is reasonable if one takes into account that, according to the Organic Law on National Defence, one of the missions of the armed forces is to "preserve, together with State institutions and public administrations, the security and well-being of citizens in cases of serious risk, catastrophe, calamity or other public needs, in accordance with the provisions of current legislation" [2].

The Royal Decree declaring the state of alarm leaves no doubt as to the legislator's intention to involve the Armed Forces in the resolution of the crisis, since Article 4 establishes the Minister of Defence as one of the competent authorities delegated by the President of the Government for the coordinated management of the crisis, and because it specifically and explicitly empowers these authorities to require the action of the Armed Forces in tasks that guarantee the effective fulfilment of the measures included in the decree [3].

By virtue of the provisions of the Law of the Military degree program , when a state of alarm is declared, the members of the Armed Forces are invested as "agents of the authority" with regard to the tasks set out in the decree of declaration, which brings them closer to the functions of subject police. agreement Specifically, and in accordance with Article 5.2 of the decree, this status empowers them to "carry out checks on people, goods, vehicles, premises and establishments that are necessary to verify and, where appropriate, prevent the services and activities suspended in this royal decree from being carried out, except for those expressly exempted". To this end, "they may issue the necessary orders and prohibitions and fail the activities or services being carried out".

Having defined framework , it should also be considered that employment of the Armed Forces requires a minimum familiarity with the military organisation, as well as with its capabilities and limitations. While it is true that the SAF offers a wide range of possibilities for action, it is necessary to be aware that there are tasks for which it is not capable, and that the use of these capabilities must be in accordance with its specific possibilities and procedures employment.

This reality, together with the imperative need for the employment of military resources to be coordinated with all the actors involved in resolving the crisis, justifies the presence of the Chief of Defence Staff (JEMAD) -who is also the advisor of the President of the Government and the Minister of Defence at subject operational- in the Situation Committee that the Royal Decree declaring the state of alarm has set up in support of the Government.

The first and most important capacity with which the military institution contributes to the resolution of the crisis is that which resides in the people who serve in uniform. The Armed Forces place at the disposal of the Nation not only the power of their numbers but, above all, the imponderable strength of their values, placed at the service of the common good: the generous submission , the spirit of sacrifice, the work teamwork, the sense of duty, and so many others that are so necessary at times like these, and which mean that the Armed Forces can be entrusted with those missions that entail the greatest risk and fatigue, safe in the knowledge that they will do their utmost to carry them out.

In the realm of the unquantifiable, there is also the not inconsiderable capacity for planning operations that the armed forces have at all levels, from the strategic to the tactical, including the operational. The General Staffs of the three armies, and those of their subordinate units, have enormous potential for organising, coordinating and planning complex operations, which, if used, is extremely useful.

The diversity and versatility of a large part of the Armed Forces' material resources makes them particularly useful in circumstances such as the current one. Among the catalogue of possibilities are some as varied as the transport, both of staff and of equipment, supplies, merchandise, material, or any urgent or essential item, over any distance and by air, sea or land, especially if it has to be done to remote or difficult to reach places; support for the construction of shelters, hospitals, or any other facilities with the means of castramation of the Army Engineers, who can also carry out specialised work to improve communications, or to ensure the supply of water, electricity, or other services; health and epidemiological support to the civilian population with staff specialised doctors and nurses; the attendance in the distribution and even packaging of food for large groups; the execution of security and protection tasks for essential or particularly sensitive installations, such as energy production and distribution plants; the surveillance and control of compliance with the terms of the state of alarm by land, sea and air, either with staff, or with conventional or remotely manned means; support for large-scale disinfection operations; the production of medicines or means of health protection; communications support; the provision of essential services such as control of airspace, inter-city public transport or public transport within major cities; etc. The list could be extended almost ad infinitum.

The realisation of the enormous amount of possible support, together with the magnitude of the pandemic itself, and the consideration of the fact that military capabilities are sized to meet the needs arising from the most likely operational scenarios, and not for a massive support scenario such as the one we are now facing, suggest that, in this case, the needs far exceed the possibilities of the Armed Forces and that, without proper planning, the institution could be totally consumed in the development of these noble tasks.

This would be very laudable, but it would anchor the entire National Defence capability in a task other than the military defence of Spain, rendering the armed forces incapable of dealing with the tasks that, it is reasonable to argue, are the raison d'être of the armed forces, and which must continue to be addressed, even in the midst of a pandemic. Beyond that, they would also be unable to sustain the operational efforts that the government has decided that the armed forces should carry out abroad, some of which could be reconsidered.

The aforementioned limitations make it advisable to measure the effort required of the Armed Forces - also because they must sustain it over an apparently long period of time - which must be provided with selective criteria, with the Armed Forces acting in application of the principle of subsidiarity, when there are no civilian agencies, public or private, capable of providing support, or when the support is of a risky, dangerous or arduous nature that makes the use of military resources advisable. employment .

With the exception of the EMU, the Armed Forces are not specifically equipped, organised or trained for the subject tasks of an emergency such as the current one. In some cases, military capabilities are directly applicable in a situation such as the coronavirus. In others, however, the provision of support cannot be immediate and requires a minimum period of adaptation, reprogramming, and training to ensure that military capabilities are applied in a manner appropriate to the nature of an operational environment with which the soldier may be unfamiliar. For example, it is not appropriate to simply employ a unit trained for high-intensity combat in emergency or humanitarian support roles without first making the transition [4].

In this adaptation time, it is always necessary to include the response time that the units must have between missions to recover, reorganise, maintain the material in operational conditions. fill in the resources consumed, plan the new mission, move between scenarios employment, etc. Even if they are in a high availability situation and their response time is reduced to a minimum, it will never be zero if they have already been used.

The employment of the Armed Forces in this subject of tasks must always be carried out with a criterion of strict temporality. If this does not happen and the armies perpetuate their missions of support to the civilian population, there is a possibility that they will progressively expand their tasks, atrophying the development of civilian agencies that could and should preferably carry them out, and becoming their competitors; that they may, in the process, neglect their core tasks - to the point of reorganising, equipping, and training only for their civilian support dimension; and that they may compromise the neutrality and selfless servant character that citizens demand of their armed forces and hold them in such high regard. As soon as the situation allows, the Armed Forces, with the exception of the UME, it is understood, should return to their usual framework of action.

That moment has not yet arrived. The end of the crisis is not yet in sight, and we Spaniards must be prepared for a long battle against COVID 19. In this struggle, citizens can be convinced that their Armed Forces, and all those who make them up, will be at their side, attending to their needs, sharing in their hardships, participating in their grief. When the virus has been defeated, they will rejoice with them and, in silence, they will return naturally to their duties, without waiting for applause, with the intimate satisfaction of having done their duty in the service of their compatriots.

* Brigadier General (R)

 

[1] An exception to this is the EMU, a unit specially organised to carry out tasks in support of the civilian population.

[2] A separate issue from this work, and which would be the subject of a more in-depth analysis, is that the aforementioned Organic Law 5/2005 introduces a change, extending them, of the constitutional missions that Article 8 of the Magna Carta imposes on the Armed Forces.

[3] Royal Decree 463/2020 of 14 March.

[4] Consider, for example, the differences between providing a facility protection service in an Area of Operations, in an environment that may be hostile, and which is subject to certain Rules of Engagement (ROE), and providing it in a nuclear power plant on National Territory in a circumstance such as the present one. As can be easily understood, the response cannot be the same, and employing an individual trained for the former in the latter requires some adaptation.

Categories Global Affairs: European Union Security and defence Comments

Apart from China, Italy has received aid from Russia and Cuba, making a risky geopolitical move in the European context.

The global spreading of the virus is putting under stress the big ally of the Union, the United States, which is demonstrating its lack of an efficient social health care system. Furthermore, the initial refusal of Washington to send help to the EU was seen as an opportunity for countries like Russia, China and Cuba to send medical and technical support to those countries of the EU that are most affected by the virus. Italy has taken aid send by Beijing, Moscow and Havana, shaking the geopolitical understandings of the EU's foreign policy.

Russia's aid arrived in Italy in the middle of the pandemic crisis [Russian Defense Ministry].

▲ Russia's aid arrived in Italy in the middle of the pandemic crisis [Russian Defense Ministry].

ARTICLEMatilde Romito

The World Health Organisation (WHO) declared Corona Virus (Covid-19) a pandemic on the 11th of March, 2020. The fast widespread of the virus pushed numerous countries around the world and especially in Europe where there is the highest number of confirmed cases, to call for a lockdown. This extreme measure is not only leading the EU and the entire world towards an unprecedented economic crisis, but it is also redefining geopolitics and the system of alliances we were used to.

The pandemic. On January 30, 2020, the World Health Organisation (WHO) declared the first outbreak of novel coronavirus a 'public health emergency of international concern'. In mid-February, numerous cases of corona virus began to be reported in northern Italy and in several European countries. Initially, the spread of the virus mainly hit Italy, which reported the biggest number of cases among the EU states. In March, Italy started with the implementation of social-distancing measures and the consequent lockdown of the country, followed by Spain, France and other European countries. On March 11, 2020, the WHO declared covid-19 a global pandemic. Currently, Europe is the region of the world with the highest number of confirmed cases. According to the WHO, on April 6, Europe reached 621,407 cases compared to the 352,600 cases in America and the 112,524 in Western Asia.

The global lockdown. At first, several major airlines suspended their flights from and to China, in order to avoid further contaminations. Now, the majority of flights in Europe and in other regions have been cancelled. The biggest areas of world are under lockdown and the economic consequences of this are becoming more and more evident. A forced social distancing seems to be the only way to contain the spread of the virus and the closing of national borders is currently at the center of states' policies to combat the virus. However, some European countries, such as Sweden, do not seem to agree on this.

Lack of solidarity

We are assisting to a global situation of 'everybody for oneself,' and this has become highly evident within the EU itself. Individual countries within the Union have shown high levels of egoism on different occasions. The North-South divide within the EU is clearer than ever, particularly between the Netherlands and Austria on the one side, and Italy, Spain, France and Greece on the other side. The former group of countries is asking for compromise and conditions to lend money to the most afflicted ones for countering the crisis, while the latter group is asking the EU to share the debts accumulated in order to save European economies (eurobonds).

The different spread-intensity of the virus in different European countries has shown more than once the fragility of the Union, which demonstrated to be led by the arrogance of the rich. On different occasions European leaders have shown a lack of European identity, solidarity and common vision. For instance, at the beginning of the crisis France and Germany attempted to 'cover with the European flag' medical products directed to Italy, by declaring them 'European products', trying to compensate the initial inaction of the EU. Another example, could be the seizure by the Czech Republic of 110,000 Chinese masks and thousands of breathing supports, which were destined to Italy (March the 21st). Moreover, the lack of unity also came from an unjustified action of protectionism undertaken by Poland, which closed its market to agricultural products coming from Italy on March 18, despite it was already known that the virus could not be spread through such products.

Nevertheless, there are some good and unexpected examples of solidarity. For instance, a good lesson on European solidarity came from the small state of Albania. The Albanian prime minister Edi Rama taught European leaders what it means to be part of the EU by sending a medical unit to the Italian region of Lombardy, despite the numerous difficulties Albania is facing, thus showing that the fight against the virus has no nationality and it cannot leave room for egoistic calculations. Moreover, more recently Germany has accepted to receive and take care of numerous patients coming from Italy, where the majority of health infrastructures are saturated.

Overall, little comprehension and solidarity has been shown between European member states, thus being criticised by the European Commission president, Ursula Von Der Leyen.

Geopolitical tensions

The EU is going through numerous changes in the relations between its members. The closing up of individual countries poses a big challenge to the EU itself, which is founded on freedom of movement of people and goods.

Currently, sending masks and medicines seems to have become the main means for countries to exert influence in global affairs. The global spreading of the virus is putting under stress the big ally of the Union, the United States (US), which is demonstrating its lack of an efficient social health care system. Furthermore, the initial refusal of Washington to send help to the EU was seen as an opportunity for countries like Russia, China and Cuba to send medical and technical support to those countries of the EU that are most affected by the virus, like Italy and Spain. After having seen its hegemonic position in Europe under threat, the US decided to send monetary help to some European countries, such as 100 million dollars to Italy, in order to help in countering the emergency.

At the end, the EU seems to start standing all together. But, did the European countries take action on time? Generally, countries, like human beings, are more likely to remember one bad impression better than numerous good ones. Therefore, are countries like Italy going to 'forgive' the EU and its initial inactivity? Or are they going to fall back on countries like Russia and China, which have shown their solidarity since the beginning?

Furthermore, did the EU take action because of an inherent identity and solidarity? Or was it just a counteraction to the Chinese and Russian help? It seemed that specifically Germany's mobilisation followed the exhortation of the former president of the European Central Bank (ECB), Mario Draghi. He accused Germany and other countries of taking advantage of the virus for imposing a 'conditionality' to the countries that were asking for help. Moreover, in an interview on the Financial Times he called for an exceptional investment in the economies and for a guarantee of the debts, in order to jointly face the crisis, because no country can face this unprecedented threat alone. Now, anti-virus economic action turned into a matter of urgency for Europe and the European Commission is working on a common European response to the crisis.

Future perspectives

Probably, after the end of the virus spread, the world will assist to important changes in the global dynamics of alliances. Russia and China will most likely have one or more European allies to advance their interests in the EU. On the one side, this could lead to a further weakening of the EU governance and to the re-emergence of nationalism on states' behaviour within the Union. And on the other side, it could lead to the development of further mechanisms of cooperation among the EU members, which will go beyond the eurobonds and will probably extend to the sanitary dimension.

To preserve its unity, the European political-economic-cultural area will need to be strengthened, by fighting inequalities with a new model of solidarity. Its future prosperity will most likely depend on its internal market.

Nevertheless, for now the only thing we can be sure about is that the first impression on the EU was very bad and that this situation is going to lead all of us towards an unprecedented economic crisis, which most probably will redefine the political relationships between the world's biggest regions.

Categories Global Affairs: European Union World order, diplomacy and governance Articles

The always difficult negotiations are made more difficult by the 75 billion euros the UK is giving up.

ANALYSIS / Pablo Gurbindo Palomo

The negotiations for the European budget for the period 2021-2027 are crucial for the future of the Union. After the failure of the extraordinary summit on 20-21 February, time is running out and the member states must put aside their differences in order to reach an agreement on agreement before 31 December 2020.

framework The negotiation of a new European Multiannual Financial Framework (MFF) is always complicated and crucial, as the ambition of the Union depends on the amount of money that member states are willing to contribute. But the negotiation of this new budget line, for the period 2021-2027, has an added complication: it is the first without the United Kingdom after Brexit. This complication does not lie in the absence of the British in the negotiations (for some that is more of a relief) but in the 75 billion euros they have stopped contributing.

What is the MFP?

framework The Multiannual Financial Framework (MFF ) is the EU's long-term budgetary framework deadline and sets the limits for expense of the Union, both as a whole and in its different areas of activity, for a deadline period of no less than 5 years. In addition, the MFF includes a number of provisions and "special instruments" beyond that, so that even in unforeseen circumstances such as crises or emergencies, funds can be used to address the problem. This is why the MFF is crucial, as it sets the political priorities and objectives for the coming years.

This framework is initially proposed by the Commission and, on this basis, the committee (composed of all Member States) negotiates and has to come to a unanimous agreement . After this the proposal is sent to the European Parliament for approval.

The amount that goes to the MFF is calculated from the Gross National Income (GNI) of the Member States, i.e. the sum of the remuneration of the factors of production of all members. But customs duties, agricultural and sugar levies and other revenues such as VAT are also part of it.

Alliances for war

In the EU there are countries that are "net contributors" and others that are "net receivers". Some pay more to the Union than they receive in return, while others receive more than they contribute. This is why countries' positions are flawed when they face these negotiations: some want to pay less money and others do not want to receive less.

Like any self-respecting European war, alliances and coalitions have been formed beforehand.

The Commission 's proposal for the MFF 2021-2027 on 2 May 2018 already made many European capitals nervous. The proposal was 1.11 % of GNI (already excluding the UK). It envisaged budget increases for border control, defence, migration, internal and external security, cooperation with development and research, among other areas. On the other hand, cuts were foreseen in Cohesion Policy (aid to help the most disadvantaged regions of the Union) and the Common Agricultural Policy (CAP).

The Parliament submitted a report provisional on this proposal in which it called for an increase to 1.3% of GNI (corresponding to a 16.7% increase from the previous proposal ). In addition, MEPs called, among other things, for cohesion and agriculture funding to be maintained as in the previous budget framework .

On 2 February 2019 the Finnish Presidency of committee proposed a negotiation framework starting at 1.07% of GNI.

This succession of events led to the emergence of two antagonistic blocs: the frugal club and the friends of cohesion.

The frugal club consists of four northern European countries: Sweden, Denmark, the Netherlands and Austria. These countries are all net contributors and advocate a budget of no more than 1 % of GNI. On the other hand, they call for cuts to be made in what they consider to be "outdated" areas such as cohesion funds or the CAP, and want to increase the budget in other areas such as research and development, defence and the fight against immigration or climate change.

Austrian Chancellor Sebastian Kurz has already announced that he will veto on committee any proposal that exceeds 1 % of GNI.

The Friends of Cohesion comprise fifteen countries from the south and east of the Union: Spain, Bulgaria, the Czech Republic, Cyprus, Estonia, Greece, Hungary, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovakia and Slovenia. All these countries are net recipients and demand that CAP and cohesion policy funding be maintained, and that the EU's budget be based on between 1.16 and 1.3 % of GNI.

This large group met on 1 February in the Portuguese town of Beja. There they tried to show an image of unity ahead of the first days of the MFP's discussion , which would take place in Brussels on the 20th and 21st of the same month. They also announced that they would block any subject cuts.

It will be curious to see whether, as the negotiations progress, the blocs will remain strong or whether each country will pull in its own direction.

Outside of these two groups, the two big net contributors stand out, pulling the strings of what happens in the EU: Germany and France.

Germany is closer to the frugals in wanting a more austere budget and more money for more modern items such as digitalisation or the fight against climate change. But first and foremost it wants a quick agreement .

France, for its part, is closer to the friends of cohesion in wanting to maintain a strong CAP, but also wants a stronger expense in defence.

The problem of "rebates

And if all these variables were not enough, we have to add the figure of the compensatory cheques or "rebates. These are discounts to a country's contribution to budget. This figure was created in 1984 for the United Kingdom, during the presidency of the conservative Margaret Thatcher. For the "Iron Lady", the amount that her country contributed to budget was excessive, as most of the amount (70%) went to the CAP and the Cohesion Funds, from which the UK hardly benefited. It was therefore agreed that the UK would have certain discounts on its budgetary contribution on a permanent and full basis.

These compensatory cheques have since been given to other net contributor countries, but these had to be negotiated with each MFF and were partial on a specific area such as VAT or contributions. An unsuccessful attempt was already made to eliminate this in 2005.

For the frugal and Germany these cheques should be kept, on civil service examination to the friends of cohesion and especially France, who want them to disappear.

Sánchez seeks his first victory in Brussels

Spanish Prime Minister Pedro Sánchez is staking much of his credibility in both Europe and Spain on these negotiations.

In Europe, for many he failed in the negotiations for the new Commission. Sánchez started from a position of strength as the leader of Europe's fourth Economics after the UK's exit. He was also the strongest member of the Socialist group parliamentary , which has been in the doldrums in recent years at the European level, but was the second strongest force in the European Parliament elections. For many, therefore, the election of the Spaniard Josep Borrell as High Representative of the Union for Foreign Affairs and Security Policy, with no other socialist in key positions, was seen as a failure.

Sánchez has the opportunity in the negotiations to show himself as a strong and reliable leader so that the Franco-German axis can count on Spain to carry out the important changes that the Union has to make in the coming years.

On the other hand, in Spain, Sánchez has the countryside up in arms over the prospects of reducing the CAP. And much of his credibility is at stake after his victory in last year's elections and the training of the "progressive coalition" with the support of Podemos and the independentistas. The Spanish government has already taken a stand with farmers, and cannot afford a defeat.

Spanish farmers are highly dependent on the CAP. According to the Ministry of Agriculture, Fisheries and Food: "in 2017, a total of 775,000 recipients received 6,678 million euros through this channel. In the period 2021-2027 we are gambling more than 44,000 million euros."

There are two different types of CAP support:

  • Direct aids: some are granted per volume of production, per crop (so called "coupled"), and the others, the "decoupled" ones, are granted per hectare, not per production or yield and have been criticised by some sectors.

  • Indirect support: this does not go directly to the farmer, but is used for the development of rural areas.

The amount of aid received varies depending on the sector, but can amount to up to 30 % of a farmer's income. Without this aid, a large part of the Spanish countryside and that of other European countries cannot compete with products coming from outside the Union.

Failure of the first budget summit

On 20 and 21 February an extraordinary summit of the European committee took place in order to reach a agreement. It did not start well with the proposal of the president of the committee, Charles Michel, for a budget based on 1.074% of GNI. This proposal convinced nobody, neither the frugal as excessive, nor the friends of cohesion as insufficient.

Michel's proposal included the added complication of linking the submission of aid to compliance with the rule of law. This measure put the so-called Visegrad group (Hungary, Poland, Czech Republic and Slovakia) on guard, as the rule of law in some of these countries is being called into question from the west of the Union. So, another group is taking centre stage.

The Commission's technical services made several proposals to try to make everyone happy. The final one was 1.069% of GNI. Closer to 1%, and including an increase in rebates for Germany, the Netherlands, Sweden, Austria and Denmark, to please the frugal and attract the Germans. But also an increase in the CAP to please the friends of cohesion and France, at the cost of reducing other budget items such as funding for research, defence and foreign affairs.

But the blocs did not budge. The frugal ones remain entrenched at 1%, and the friends of cohesion in response have decided to do the same, but at the 1.3% proposed by the European Parliament (even if they know it is unrealistic).

In the absence of agreement Michel dissolved the meeting; it is expected that talks will take place in the coming weeks and another summit will be convened.

Conclusion

The EU has a problem: its ambition is not matched by the commitment of its member states. The Union needs to reinvent itself and be more ambitious, say its members, but when it comes down to it, few are truly willing to contribute and deliver what is needed.

The Von der Leyen Commission arrived with three star plans: the European Green Pact to make Europe the first carbon-neutral continent; digitalisation; and, under Josep Borrell, greater international involvement on the part of the Union. However, as soon as the budget negotiations began and it became clear that this would lead to an increase in the expense, each country pulled in its own direction, and it was these subject proposals that were the first to fall victim to cuts due to the impossibility of reaching an understanding.

A agreement has to be reached by 31 December 2020, if there is to be no money at all: neither for CAP, nor for rebates, nor even for Erasmus.

Member States need to understand that for the EU to be more ambitious they themselves need to be more ambitious and willing to be more involved, with the increase in budget that this entails.

Categories Global Affairs: European Union World order, diplomacy and governance Analysis

Brexit, with the departure from the EU of a free-market champion, has boosted the coordination of the free-trade countries of northern Europe.

16th century engraving showing a view of Lübeck, when it was part of the Hanseatic League.

16th century engraving showing a view of Lübeck, when it was part of the Hanseatic League.

ANALYSIS / Jokin de Carlos Sola

Made up of the little people of Europe's northern coast, the Hanseatic League controls the sea and the money that moves across it. This definition applies to two organisations, one medieval and one recently created, ready to make its voice heard on the European stage.

In 2017, eight northern European countries (the Netherlands, Ireland, Denmark, Sweden, Finland, Estonia, Latvia and Lithuania) began the process of creating the New Hanseatic League initiative. Its main objective goal is to maintain and increase economic orthodoxy, now that the United Kingdom - one of its main supporters - is leaving the European Union, and to prevent France from taking advantage of this moment to implement its expansionary Economics policies.

The first League

The First Hanseatic League or simply the Hansa was a commercial and defensive alliance of trading cities and guilds of the major maritime cities of the Baltic and North Atlantic. Founded in Lübeck in 1158, the first alliance consisted of the free German maritime cities of Lübeck, Hamburg, Lüneburg, Wismar, Rostock and Stralsund.

Many other cities later joined the Hansa, such as Cologne, Groningen, Berlin and Stockholm. In addition, the Hansa set up trading posts in ports in almost all of northern Europe, and even established their own quarters - called kontors -in other places such as London, Antwerp, Novgorod and Bruges.

This alliance acquired great commercial as well as military importance. Since its foundation, the Hansa had maintained an almost symbiotic relationship with the Baltic monastic state of the Teutonic Knights. Later it would establish its own fleet. With the growth of the nation states and the decline of the guilds, the Hansa declined until it consisted only of Lübeck, Hamburg and Bremen, and was finally dissolved with German unification.

Creation of the New Hansa

With the enlargement of the European Union, new opportunities arose to balance the power of the dominant Franco-German bloc (also known as the Aachen bloc) on the European committee . Thus, the Visegrad group , the Three Seas Initiative or the Craiova group have been created in Central and Eastern Europe. In recent years, the New Hanseatic League has emerged in the north of the continent.

The latter initiative was born in the wake of Brexit. As the third country in terms of economic weight in the EU, the United Kingdom has had a great influence on the Union's economic policy, defending ideas such as economic stability, deficit reduction, debt reduction, economic deregulation and a stable monetary policy that avoids inflation, as well as a free trade policy.

These ideas clashed with the French economic policy of greater economic dirigisme and interventionism, with its emphasis on social projects and protectionism. Meanwhile, Germany's cautious attitude acted as a balance and middle ground between the two positions. London's positions have also been supported by the Netherlands and Denmark, as well as other countries with a tradition of maritime trade, who, faced with the prospect of the UK's departure from the EU, decided to establish greater coordination among themselves.

Another cause for the training of the New Hansa is the coming to power of Emmanuel Macron and his rise as a strongman in the EU. Macron has abandoned part of the economic speech with which he was elected in 2017 to move closer to traditional French positions, also followed by countries such as Italy and Spain.

A final trigger for the Dutch- and Irish-inspired initiative was the replacement in January 2018 of Jeroen Dijsselbloem as Eurogroup president by Mario Centeno, Portugal's socialist minister. For many northern European politicians, Dijsselbloem's intransigence in the face of the Greek debt crisis in 2015 was correct and a way forward for EU and Eurozone economic and monetary policy.

This group was initially known by names such as "The Vikings" or "Bad Weather Coalition". In February 2018 the finance ministers of the Netherlands, Denmark, Ireland, Sweden, Finland, Estonia, Latvia and Lithuania signed the founding document of the New Hanseatic League.     

Political and economic values

The main objectives of the New Hanseatic League are based on free trade ideas, as well as maintaining a balanced budget . Its main objectives are the development of the European Stability Mechanism, established in Luxembourg. The idea would be that this development would eventually turn the ESM into a plenary session of the Executive Council European Monetary Fund, which would redistribute wealth between member states with surpluses and those with trade deficits. The Hansa is also in favour of giving the ESM more power to interfere in national budgets in order to avoid exceeding deficit limits.

However, although the founding document sticks to the European Stability Mechanism, the Hansa does not intend to stop there. Some representatives of these countries have spoken out against a budget for the eurozone, a eurozone finance minister and a common deposit insurance scheme, as proposed by Macron. They also criticised the European Commission for its decision not to initiate a disciplinary procedure against Italy over its deficit and debt.

The Hansa's positions have gained general popularity in their respective countries. On the one hand, the right-wing parties in those places have long advocated free trade approaches, while the left-wing parties do not want the welfare state of their respective populations to be put at risk in order to help the southern European countries.

The ideological origins of the New Hansa could be traced back to British Thatcherism in the 1980s. This political ideology included on the one hand a liberal approach to Economics, advocating ideas such as deregulation, privatisation and free trade. Thatcherism did not advocate the break-up of the EU, but included a sceptical view, advocating a union limited to Economics, without advancing political union. This thinking, in opposition to traditional French dirigisme, has had a clear influence within British politics and within the Conservative Party. However, its influence on other European politicians, such as various leaders in the Netherlands and Denmark, is somewhat less well known.

The defence of a liberal and capitalist Europe, contrary to a strong central power, is shared by many countries, all of them located in the northern fringe of the Union. This pits them against the Mediterranean countries, which have required EU aid in recent years.

However, there are other elements that characterise these countries beyond their wealth and geographical position, such as their size and their dependence on trade, derived from their maritime character. This makes them favourable to increased trade treaties and forces them to seek resources they do not have on their own territory.

Leadership of the group

The New Hanseatic League is an initiative and not an organisation as such, so it has no official leader; decisions are taken in unofficial councils of heads of government and finance ministers. However, several personalities have been prominent, notably Mark Rutte, the Dutch prime minister, and Wopke Hoekstra, his finance minister.  

Wopke Hoekstra is considered the architect of the New Hansa. Aged 41, he is a Christian Democrat, a practising Protestant, a member of the Remonstrant Brotherhood and a former student of the Institut Européen d'Administration des Affaires (INSEAD), Europe's most prestigious business school. He has shown the most intransigent side of the Dutch government on economic issues in recent years. It has reached the point that Dijsselbloem himself has criticised the New League's training because, according to him, it damages the idea of solidarity within the Union.

Mark Rutte, on the other hand, has used the creation of the New Hansa to increase the Netherlands' weight in European politics. Rutte is regarded as one of the most active Dutch premiers in foreign policy since the Second World War and has tried to assert the Netherlands in the EU vis-à-vis France and Germany. At the same time Rutte has tried to occupy the British voice in Europe's committee as one of the most Atlanticist leaders.

Other leaders who have shown their involvement in this project have been the Danish finance minister until 2019, Kristian Jensen, and the Irish deputy prime minister, Simon Coveney. On the other hand, the role of Denmark and Sweden was core topic for the Baltic countries to move away from the Visegrad group and join the New Hansa.

Economic, financial and technological weight

The Hansa has managed to bring together an economic weight that other initiatives of the same kind have not been able to muster. Currently, the combined GDP of the Hansa countries is more than 2.2 trillion euros, close to the 2.5 trillion euros of the French GDP, the second largest economic force in Europe.

The group also has clear financial clout. Cities such as Amsterdam, Stockholm and Dublin have been climbing the ranks of Europe's leading financial capitals in recent years, although they have yet to overtake Paris and Frankfurt. Moreover, these are countries where technological innovation exists, especially Estonia and the Netherlands.

The fact that group does not exceed 10% of the European population somewhat mitigates its influence, as the votes of the countries and blocs in the European committee are partly based on issue of inhabitants, but it is nonetheless a relevant political actor in the EU. In contrast, the southern European countries (Spain, Italy, Portugal and Greece) account for 30 per cent of the European population, but are considered less decisive.

The Hansa positions represent a break with the EU principle that, for reasons of inter-territorial social cohesion, those countries that have more and are more developed contribute more. The ideas of the more radical sections of the Hansa can even be labelled as a certain neo-colonialism, insofar as they seek to use the supranational mechanisms of the EU to ensure that debtor countries in the South repay loans, which will keep them at certain levels of debt.

The Netherlands, Sweden, Denmark, Finland and Ireland are among the top contributors to the common European budget , behind the top four (Italy, UK, France and Germany). On a per capita basis, the Netherlands, Sweden and Denmark are at the top of the list. While Estonia, Latvia and Lithuania are beneficiaries, they are less so than Poland, Greece or Romania.

Given its greater contribution to the EU, or less dependence on aid, the Hansa is demanding a greater say in the EU's direction. For the time being, it has succeeded in imposing various criteria on budget in 2020, as opposed to those of the recipient countries.

Exercise of influence

One of the main objectives of the New Hanseatic League was to ensure that the two most controlling figures over the European Economics (the presidency of the Central Bank, and the leadership of the International Monetary Fund) were to its liking. In both cases it has failed, largely because of Emmanuel Macron's intervention.

The Netherlands had a particular interest in the appointment of the ECB, as outgoing president Mario Draghi had lobbied the Dutch government to activate stimulus policies. The New Hansa's candidate was Bundesbank president Jens Weidmann, known for his criticism of Mario Draghi's stimulus policies and for advocating a high-interest policy. Macron agreed with Germany that the European Commission would go to a German (Ursula von der Leyen) in exchange for the ECB being chaired by Christine Laguard, who would continue Draghi's policies.

For the IMF, Rutte proposed Dijsselbloem, despite his criticism of the Hansa. The final vote was between him and Bulgarian economist Kristalian Georgieva. Although Germany ended up voting for the Dutchman, Georgieva became the new head of the IMF. 

However, the Hansa has also had some victories, such as holding the Commission firm on the Italian budget , which was going to exceed deficit limits; exerting influence on the European budget , which has suffered a drastic reduction; or slowing down, if not completely blocking, Macron's project for a common budget for the Eurozone.

 

visit from Dutch Finance Minister Wopke Hoekstra (right) to his Irish counterpart Paschal Donohoe (left) at the end of 2018 [Gov. of Ireland].

visit from Dutch Finance Minister Wopke Hoekstra (right) to his Irish counterpart Paschal Donohoe (left) at the end of 2018 [Gov. of Ireland].

 

Expansion strategy and partnerships

One of the problems previously mentioned for the Hansa has been its lack of weight in the European committee . For this reason, its leaders have sought the political alignment of countries with which there may be ideological overlaps.

One of the first countries to establish contact with the Hansa countries was Austria. This makes sense since Austria has a similar economic structure to the other Hansa countries due to its small size and population. In addition, the government of Sebastian Kurz seemed to have a strong programme towards Europe very much in line with the Hansa. Famous is the proposal of several Austrian politicians for the creation of two European currencies, one for the north and one for the south. This subject of connections would be very important for later influencing Germany. In the new von der Leyen Commission, the Finance Committee was won for Austria by the economist Johannes Hahn.

The Austrian courtship also seems to have a strategic goal as a step to also start influencing Germany, which acts as a balancer of the balance. Several German politicians from the CDU and CSU are favourable to the Hansa's thinking and have been very influential throughout Merkel's government. But when Wolfgang Schäuble was removed from the Finance Ministry and replaced by the Social Democrat Olof Scholz these positions lost importance.

Similarly, the Hansa (and above all the Netherlands) has been establishing contacts with the Flemish government in Belgium. Although Flanders is just another state in the Belgian federation, the lack of a government in Brussels gives it great importance, along with the government of Wallonia. In addition, the Flemish control the port of Antwerp and have always been closer to the ideas of the Hansa.

On the other hand, the Hansa also seems to have initiated contacts with Slovakia and the Czech Republic. This was seen when in March 2019 both countries signed a declaration together with the Hansa countries against the Italian budget . It would be unusual to see these countries moving very close to the Hansa because they remain natural recipients of European funds. However, given that they are countries with healthy accounts, they could be seen as allies of the Hansa in some future actions.

In a way we could see Hanseatic diplomacy as a partial evolution of Otto von Bismarck's diplomacy (to push France out of power by training regional alliances). The aim is to form a sufficiently strong bloc that can present itself solidly on the European committee and convince Germany to tilt the balance towards budgetary orthodoxy and the interests of the northern countries. Alongside France are most of the southern countries. One could very generally say that the Hansa's objectives are: "Mobilise the North, seduce Germany, silence the Mediterranean".

Strange alliances in front of the Hansa

The Hanseatic configuration of alliances around Europe and their influence on the new European budget seems to have created curious alliances, the largest of which is undoubtedly the one that may arise between Poland and France.

This may sound strange, because when it comes to foreign policy, social policy and on certain points of European integration, Poland and France have been poles apart. But when it comes to economic policy and the European budget , France and Poland are on the same page, and this may result in a common front against the Hansa.

The reasons for the Franco-Polish rapprochement are varied. Both nations follow the tradition of the social welfare state, France because of its republican fraternity bequest and Poland because of its Catholic heritage, both opposed to the Hanseatic absentee state. Moreover, both countries have reasons to want to avoid restrictive budgets. The Polish government fears that a drastic reduction of investment in Poland would force it to make social cuts, which would lead to instability. France is sample opposed for a more ideological reason: Macron has championed the idea of 'A Europe that protects' and would have trouble sticking to this idea.

Nevertheless, Poland and France have some sticking points, especially with Macron's attempt at a new Ostpolik to calm relations with Russia.

Conclusion

The creation of the New Hanseatic League is ultimately written request a reaction to two movements: the creation of European regional systems and the withdrawal of economic policies favouring Northern Europe. 

If the countries of Europe organise themselves into blocs, it may be easier to carry out certain initiatives because there are fewer interlocutors to negotiate with.

On the other hand, the creation of an initiative with the specific goal purpose of defending northern interests may pose a risk for southern countries, accentuating north-south differences in Europe. This would put Germany, which wants to avoid such a compromise, in a difficult position status .

The smart thing to do would be to avoid these confrontations directly by seeking other sources of revenue for the EU that do not compromise the wealth of the Hansa countries, as Morawiecki expressed and Macron has also pointed out. Thus, some taxes have been discussed, such as those on air travel, financial transactions and the digital world. But again, with the importance of the financial sector and new technologies in countries such as Ireland or Estonia, this may encounter civil service examination. It is not a simple task.

In any case, it should be ensured that European politicians have sufficient vision and understanding to make agreements that take into account all the idiosyncrasies of the European Union.

Categories Global Affairs: European Union World order, diplomacy and governance Analysis

With the agreement reached between the EU and Johnson and the polls favorable to Johnson in the December 12 election, a possible end to Brexit is in sight.

Installation against Brexit, during a protest in Manchester in 2017 [Robert Mandel, Wikimedia Commons].

▲ Installation against Brexit, during a protest in Manchester in 2017 [Robert Mandel, Wikimedia Commons].

COMMENT / Pablo Gurbindo

Since June 23, 2016, the date on which the referendum on the United Kingdom remaining in the European Union was held, the British exit has overshadowed any other topic, such as the momentous past European elections, and has caused the British political spectrum to split between those who support remaining and those who support leaving.

 The "Brexit" has also taken two prime ministers by surprise: David Cameron, after the referendum, and his successor, Theresa May, who left the position after failing to get her agreement reached with the EU to be C by the British Parliament. And it may be her successor, Boris Johnson, the controversial former Mayor of London who campaigned for the vote to leave the Union, who manages to lead his country out of these more than three years of uncertainty.

Johnson's arrival at 10 Downing Street caused great concern in European capitals. From the outset, he stated that he would get his country out of the European Union, with or without agreement , before October 31. And, in September, he did not hesitate to temporarily fail the Parliament so that the civil service examination could not veto a possible exit without agreement. This closure was declared illegal by the Supreme Court and the civil service examination managed to ensure that the hypothetical exit without agreement could only be agreed by Parliament. Despite all this, negotiations in Brussels did not stop and, on October 17, it was announced that an agreement had been reached. agreement.

The agreement reached is, to a large extent, similar to the one reached with Theresa May. The main change has been the Irish "safeguard", the section most criticized at the time by the civil service examination and by the hardest wing of the "Tories". This measure implied that, if the European Union and the United Kingdom did not reach a agreement by 2020, Northern Ireland would remain in the single market and the customs union, while the rest of the United Kingdom would leave.

This system provoked a great rejection, especially in the Democratic Unionist Party (DUP). On this Northern Irish Unionist party, May and still Johnson, depended and depend to be able to approve the agreement in the British Parliament. This concern about the new border between the two Irelands responds to the risk it poses to the Good Friday Agreements. Thanks to these agreements, peace was restored to Northern Ireland, which in the last century was at loggerheads between Catholic groups, who advocated unification with Ireland, and Protestant unionists, who advocated maintaining ties with the United Kingdom. The breakdown of these agreements could lead to the return of violence to the island.

agreement reached

This new agreement on Northern Ireland, proposed by Johnson, is based on three main elements, as indicated by the European Union's Brexit negotiator, Frenchman Michel Barnier:

(1) Northern Ireland will continue to comply with certain EU customs rules, especially those related to goods and products. But, in order to avoid any subject border with Ireland, checks will only be carried out on goods arriving at Northern Irish ports. These checks will be carried out by the British in compliance with EU rules.

(2) However, it will continue to be part of the British Customs Union, so any trade agreement reached by the United Kingdom after Brexit will include Northern Ireland. The problem is that these two elements conflict: Northern Ireland would be part of the British customs unions as well as the EU customs unions. In order to solve the problem that this "customs bicephaly" could produce, products from third countries - which will not then move to another country in the common market - will be taxed at UK rates. However, if the products are likely to enter the common market, the UK authorities will apply the EU tariffs.

(3) Finally, the agreement with Johnson will be a permanent agreement unless the Northern Ireland Assembly decides otherwise. The agreement enables this body to vote on whether to maintain or abandon the agreed status once four years have elapsed since the protocol comes into force. In the event that they ratify the agreement it will be extended by four or eight years, depending on whether it is a simple majority or whether it has majority support (with the support of the Protestant and Catholic communities). Otherwise, European laws will continue to apply for two more years, during which time the EU and the UK will have to reach a new agreement.

Extension and call for elections

After the advertisement of the agreement reached, the most complicated part remained: ratifying it in the British Parliament, and in record time, since the deadline was October 31. Johnson was forced by Parliament to ask Brussels for an extension until January 31, 2020, contrary to his wishes to keep his promise to leave on October 31. This request was not without controversy as Johnson sent two letters: one asking for the extension, which he did not sign, and another signed in which he expressed that he would see the extension as a "mistake" and that it would be "deeply corrosive" to his country.

On October 29, the European committee accepted the extension to January 31, 2020 to allow time for the ratification of the agreement Exit. The United Kingdom could leave the Union earlier, on December 1, 2019 (a date that has already passed) or on January 1, 2020 in the event of ratification of the support by both parties. This extension was unanimously approved by the 27, despite France's reluctance. France argued that this long extension should be granted only if there was certainty that there would be elections in the United Kingdom; otherwise, they advocated a shorter technical extension, to allow time to ratify the agreement Exit.

To carry out the Brexit, Johnson, faced with "parliamentary obstructionism" called for early elections to change the arithmetic of Parliament and to be able to approve the agreement reached with the EU. This call was rejected twice by Jeremy Corbyn's Labour Party, the main party of the civil service examination. But after learning that the European committee accepted the extension, it supported the call.

Conclusion

With elections scheduled for next December 12, the wind seems to be blowing in Johnson's favor. The polls favor him with a percentage of 40% of the vote. Far behind, Labour, with 29%, would lose support to Jo Swinson's Liberal Democrat Party, which would rise to 15% (from 7.4% in the previous election). This rise of the "Lib Dems" would be mainly due to their strong support for remaining in the EU, unlike Corbyn, who has maintained a neutral position despite the fact that 70% of Labour voters support remaining. On the other hand, the Conservative majority would allow the "Tories" to stop depending on the DUP to achieve sufficient parliamentary majorities.

As if that were not enough, the leader of the Brexit Party, Nigel Farage, has announced that in order to facilitate a Conservative majority, his party will not stand in the constituencies where the Conservative Party won in the previous elections. In order to ensure the exit of the United Kingdom from the Union and to avoid a new referendum.

If these polls come true Johnson would get his long-awaited majority to be able to approve the exit.

After more than three years, a plausible end to Brexit is in sight.

Categories Global Affairs: European Union World order, diplomacy and governance Comments

By blocking some candidates, the European Parliament seeks the prominence denied by the failure of the proclamation of the Spitzenkandidat

Ursula von der Leyen, at the plenary session of the European Parliament in which she defended her candidacy [European Commission]

▲ Ursula von der Leyen, at the plenary session of the European Parliament in which she defended her candidacy [European Commission]

ANALYSIS / Jokin de Carlos

In 1963, the Elysée Treaty was signed between President Charles de Gaulle and Chancellor Konrad Adenauer, ending centuries of Franco-German rivalry and beginning the friendship between the two countries. Over the next few decades, France and Germany, as the leading economies of the Union, would largely mark the diary political and economic. Even in times of crisis, both leading countries avoided giving an image of confrontation.

However, after the European elections last May, there was a public tussle between Berlin and Paris over who should replace Jean-Claude Juncker as head of the European Commission. On the one hand, led by Angela Merkel, there were those leaders who defended the nomination of the Bavarian Manfred Weber, Spitzenkandidat of the European People's Party, made up of conservative formations; on the other hand, led by Emmanuel Macron, there were those who, of liberal or social democratic tendencies, opposed this nomination in preference to the Dutchman Frans Timmermans or the Danish Margrathe Vestager.

After weeks of negotiation and diplomatic tension, Weber's candidacy was withdrawn, in part because of Merkel's political weakness in Germany and the momentary defenestration of Sebastian Kurz in Austria due to Ibizagate. But the position it was not for Vestager or Timmermans but for Ursula von der Leyen, Germany's defense minister and Merkel's Christian Democrat colleague, originally from Hanover and from an aristocratic family. 

And so ends the summer of our discontent, with this Hanoverian sun.

Election

One of the main problems facing the new president of the Commission is going to be how to achieve consensus among the leaders in the committee and between parties in Parliament.

Von der Leyen was unanimously elected in the committee, however, his election to the European Parliament was the closest in history, with only nine votes above the required majority. This vote had several surprises, such as the favorable vote of the Italian 5-Star Movement or the Polish PiS and the rejection of the SPD or the totality of the Greens.

Composition of the Commission

On 9 September, von der Leyen announced her nominees for the new Commission, which is made up of 28 members in the 28 member countries, although the United Kingdom Withdrawal to have a site for its scheduled departure from the Union on October 31.

The von der Leyen Commission has been organised in the form of pillars, each led by a Vice-President and composed of one or more Commissioners with specific portfolios. There are five pillars: (a) agreement European Green, which will cover topics such as energy, transport and agriculture; (b) a Europe ready for the digital age, for issues such as innovation and skill; (c) protecting our European way of life, which will encompass the areas of immigration and security; (d) one Economics to work for the people, destined for commerce, work and finance, and (e) a strong Europe in the world, which will include issues such as international relations or crisis management.

For the composition of this Commission, von der Leyen has tried to integrate two of the Spitzenkandidat who were discarded for the presidency. Socialist Frans Timmermans, a former Dutch deputy prime minister, will remain as vice-president and lead the pillar of the agreement the European Greens, while the liberal Margrethe Vestager, former Danish Deputy Prime Minister, having been Commissioner for skill in the previous Commission, he will lead the pillar of A Europe Ready for the Digital Age. These are two of the most popular Commissioners in the Juncker Commission; in the case of Vestager for her fight against tax evasion by several large American technology companies, such as Google, Amazon or Apple.

Of the rest of the vice-presidents, three will head the other three pillars: the new High Representative of the Union Josep Borrell, former Spanish minister in several portfolios and former president of the European Parliament, will lead A Strong Europe in the World; Christian Democrat and former Latvian premier Valdis Dombrovskis will lead the economic pillar, and Greek conservative Margaritis Schinas will lead the pillar of protecting the European way of life.

Three other vice-presidencies, with smaller areas, will go to the Czech Republic's Verá Jorubá (Values and Transparency), Slovakia's Maroš Šefčovič (Interinstitutional Relations) and Croatia's Dubravka Šuica (Democracy and Demography).

Among the nominees for commissioners are prestigious people who have held important positions in their respective countries, as well as in previous European commissions: Paolo Gentiloni, former Italian premier, will be commissioner of Economics, and Didier Reynders, former Minister of Defence, Finance and Foreign Affairs in Belgium, will be in charge of Justice.

Analysis

There are two characteristics that can be highlighted about this Commission proposal: (1) The first is its more political character and (2) the second is a marked Francophilia. 

(1) On previous occasions the commissioners used to show a profile and in many cases a preference for staying in the shadows. In a way, they could have been considered the secretariat of the committee European. However, the selection made by Von der Leyen seems to want to put an end to this tradition, by opting for more well-known names. Thus, Gentiloni or Dombrovskis have previously governed their countries, while others such as Vestager, Timmermans or Reynders have had a certain previous prominence. It seems that the interest of EU politicians is no longer so much to create the European Federation as soon as possible as to bring Brussels closer to the people. Whether this strategy works or not, time will tell.

(2) The second characteristic of this new Commission is a clear pro-French direction, to the satisfaction of Emmanuel Macron. Many of the members of the Commission are political allies of the French President; the clearest is the case of Ursula von der Leyen herself, despite having been part of Merkel's cabinet and being a co-religionist of hers. It should be remembered that it was Macron who proposed it for the position after the veto of Weber, who was the candidate Merkel's initial. But that's not all. Both Timmermans and Vestager are political allies of Macron (Vestager had been his first choice to chair the Commission). Josep Borrell is also a well-known Francophile, and Didier Reynerds is a French-speaking Belgian whose party is allied with Macron's, as is the Italian commissioner Paolo Gentiloni. So this is a mostly Francophile Commission, which could increase Macron's weight on the Union and advance his vision of Europe.

Outside the Commission, the other officials nominated by the committee They were Christine Lagarde, a former French finance minister, who has stepped down from leading the IMF to head the European Central Bank, and Charles Michell, the French-speaking prime minister of Belgium and Macron's liberal colleague, the new president of the European Central Bank. committee European.

These nominations have also sought to meet a series of objectives:

i) The first and clearest is that the aim is to put an end to the possible alienation of the countries of Central and Southern Europe. Out of eight vice-presidents, four are from Central Europe, in charge of such important areas as the economic pillar or justice issues; two others are from the South, with responsibility for immigration and foreign policy issues.

ii) An attempt has also been made to reach out to groups that may have doubts about von der Leyen or directly voted against her in the parliamentary session. Looking at the greens, the portfolio agreement European Green aims to reduce carbon emissions by 55% from their 1990 levels by 2030 and make Europe the first zero-carbon continent by 2050. The pillar on immigration, called Protecting our European way of life, seems to want to augur a stricter immigration policy with the aim of promoting a more sustainable immigration policy. goal to maintain the support of Poland's PiS and Hungary's Fidesz.

iii) Briefly, it should also be mentioned that the nomination of Gentiloni to the economic portfolio seems to be a way of rewarding Italy for the training of a pro-Brussels government. While the nomination of a left-wing Italian to Economics It seems that the nomination of Austrian conservative Johannes Hahn to the Budget Committee has been made to balance that of Gentiloni.

Challenges and potential complications

The four main challenges facing this new Commission seem to be ecology, Economics, immigration and the construction of a common foreign policy.

As has been said before, the nomination of Borrell and other commissioners may lead to a foreign policy that follows French lines, which at times can lead to conflicts with Poland, the Baltic States or even Germany if tensions between France and the United States lead Washington to question its commitments to NATO and Russia.

Immigration looks set to remain a major issue for the Commission, although not as much as in recent years, largely because the issue The number of people arriving in Europe has dropped drastically. From more than one million in 2015 to less than 150,000 in 2018. Everything seems to indicate that the line on illegal immigration is going to be tougher than in previous years, although an attempt will be made to avoid populist rhetoric. However, the very name of the portfolio, Protecting our European Way of Life, has already come under fire from certain political sectors and civil society in Western Europe.

The Economics will be another element core topic. With a Brexit that could damage the Economics or cause a slowdown.

Another major problem is going to be related to Timmermans and his position. As the head of the pillar agreement The Dutch will be in charge of dealing with countries to reduce their carbon emissions. The countries of Central Europe, especially Poland, are still very dependent on the coal sector, which employs a significant portion of the workforce. Timmermans showed some clumsiness when it came to dealing with Poland and Hungary on justice issues as Juncker's vice-president, so it remains to be seen how he deals with the energy issue.

In relation to the nominations, there has been concern about Parliament's blocking of the commissioners from Romania, Hungary and France, who were rejected for various reasons. In the case of the Hungarian nominee, the veto was attributed to his relationship with a law firm, and in the case of the French nominee, to his relationship with an American think tank . However, the general analysis seems to indicate that these rejections, especially in the case of the French nominee, appear to be a reprisal by Parliament for having been section in the decision on the presidency of the Commission – since the proclamation of the Spitzenkandidat with the most votes was disregarded – by the committee European, especially Emmanuel Macron. The Fall of the Romanian Government and the Establishment of a Government provisional until the 2020 legislative elections may delay the training of the Commission. According to High Representative Josep Borrell, it is to be expected that the training of the von der Leyen Commission is delayed until 1 December.

Conclusion

To say that the von der Leyen Commission is going to be continuist, as many claim, would be partially incorrect. Although the ideology seems to be the same, the objectives set are very different and much more political. It seems that some of the mistakes made by the Juncker Commission want to be solved and it is trying to respond to some of the demands that citizens make to Brussels, on issues such as environmental care, economic improvement, the correct integration of Central Europe, border control, the development of the environment, and the development of the European Union. development of a common international policy and the rapprochement of Brussels with the Europeans.

Whether this will be a failure or a victory, on verra.

Categories Global Affairs: European Union World order, diplomacy and governance Analysis

essay / Jairo Císcar Ruiz [English version].

In recent months, the open trade hostilities between the United States of America and the People's Republic of China have dominated the main general headlines and specialized economic publications around the world. The so-called "trade war" between these two superpowers is nothing more than the successive escalation of the imposition of tariffs and special levies on original products and manufactured goods from the countries in confrontation. This, in economic figures, means that the US imposed in 2018 special tariffs on US$250 billion of imported Chinese products (out of a total of US$539 billion), while China for its part imposed tariffs on 110 out of US$120 billion of US import products [1]. These tariffs meant an increase of US$3 billion in additional taxes for American consumers and businesses. This analysis is therefore intended to explain and show the position and future of the European Union in this trade war in a general way.

This small reminder of the figures illustrates the magnitude of the challenge for the global Economics posed by this clash between the world's two economic locomotives. It is not China who is paying the tariffs, as Trump literally said on May 9 during a meeting with journalists [2], but the reality is much more complex, and, evidently, as in the case of the inclusion of Huawei in the trade blacklist (and therefore the prohibition to purchase any item on US soil, whether hardware or software, without a prior agreement with the Administration), which may affect more than 1.200 American companies and hundreds of millions of customers globally according to the BBC [3], the economic war may soon start to be a great burden for Economics globally. On June 2, Pierre Moscovici, European Commissioner for Economic Affairs, predicted that if the confrontation continues, both China and the USA could lose between 5 and 6 tenths of GDP, stressing in particular that "protectionism is the main threat to world growth" [4].

As can be inferred from Moscovici's words, the trade war is not only of concern to the countries directly involved in it, but is closely followed by other actors in international politics, especially the European Union.The European Union is the largest Single Market in the world, this being one of the premises and fundamental pillars of the EU's very existence. But it is no longer focused on internal trade, but is one of the major trading powers for exports and imports, being one of the main voices advocating healthy trade relations that are of mutual benefit to the different economic actors at global and regional level. This openness to business means that 30% of the EU's GDP comes from foreign trade and makes it the main player when it comes to doing import and export business. To illustrate briefly, from agreement with the data of the European Commission [5] in the last year (May 2018-April 2019), the EU made imports worth €2,022 billion (a growth of 7%) and exported 4% more, with a total of €1,987 billion. The trade balance is therefore a negative balance of €35 billion, which, due to the large volume of imports and exports and the nominal GDP of the EU (taking the figure of 18.8 trillion euros) is only 0.18% of the EU's total GDP. The USA was the main place of export from the EU, while China was the first place of import. These data are revealing and interesting: an important part of the EU's Economics depends on business with these two countries and a bad performance of their Economics could weigh down the EU member countries' own.

Another data that illustrates the importance of the EU in subject trade is that of Foreign Direct Investment (FDI). In 2018, 52% of global FDI came from countries within the EU and the EU received 38.5% of total investment globally, leading on both indicators. It can therefore be said that the current trade war may pose a serious problem for the future European Economics , but, as we will see below, the Union can emerge strengthened and even benefit from this status if it manages to mediate well between the difficulties, businesses and strategies of the two countries. But let us first look at the EU's relations with both the US and China.

The US-EU relationship has traditionally been (albeit with ups and downs) the strongest in the international sphere. The United States is the main ally in defense, politics, Economics and diplomacy of the European Union and vice versa. They share the economic, political and cultural model , as well as the main world collective defense organization, NATO. However, in the so-called transatlantic relationship, there have always been clashes, accentuated in the recent times of the Obama Administration and habitual with Trump. With the current Administration, not only have reproaches to the EU arisen within NATO (regarding the failure of member countries to invest the required budget ; shared criticism with the United Kingdom), but a full-fledged tariff war has begun.

In barely two years we have gone from the TTIP (Transatlantic Trade and Investment Partnership) negotiations, the announced basis for 21st century trade that finally failed in the final stages of Obama in the White House, to the current status of extreme US protectionism and EU response. Particularly illustrative is the succession of events that have taken place in the last year: at the stroke of Twitter, in March 2018 the US unilaterally imposed global tariffs on steel (25%) and aluminum (10%) to protect American industry [6]. These tariffs did not only affect China, they also inflicted great damage on companies in European countries such as Germany. Tariffs of 25% on European vehicles were also in the air. After a harsh climate of mutual reproaches, on July 25, Jean Claude Juncker, President of the European Commission, announced together with Trump a agreement to lower tariffs on agricultural products and services, and the US committed itself to review the imposition of metallurgical tariffs on the EU, as well as to support within the World Trade Organization the European calls for a reform of Intellectual Property laws, which China does not respect [7]. However, after the reiteration of the transatlantic friendship and Trump's advertisement of "we are heading towards zero tariffs" [8], soon the intemperate boxes have been rung again. In April this year, on April 9, Trump announced on Twitter the imposition of tariffs on the EU worth US$11 billion for the EU's support to Airbus (skill of the American Boeing, Lockheed Martin...), blowing up the principle of agreement of July last year. The EU, for its part, threatened to impose tariffs of €19 billion for the US state support to Boeing. As can be seen, the EU, despite its traditional conciliatory role and often subjugated to the US, has decided to fight back and not allow any more outbursts on the American side. The latest threat, in mid-July, is against French wine (and due to the European mechanism, against all wines of European origin, including Spanish wines). This threat has been described as "ridiculous" [9], since the USA consumes more wine than it produces (it is the world's largest consumer) and therefore, the supply available could be considerably reduced.

It is still too early to see the real impact that the trade war is having on the US, beyond the 7.4% drop in US exports to China [10] and the damage that consumers are suffering, but the Nobel laureate of Economics Robert Schiller, in an interview for CNBC [11] and the president of the World Trade Organization, Roberto Azevedo, for the BBC; have already expressed their fears that if status and protectionist policies continue, we could be facing the biggest economic crisis since the end of the Second World War. It is difficult to elucidate what the future relationship between Europe and its main exporter partner , the USA, will be like. All indications are that friction and escalation will continue if the US Administration does not decide to tone down its rhetoric and actions against free trade with Europe. Finally, it must be clear (and in the spirit of lowering the sometimes excessively alarmist tone of the news) that between the threats (either by Twitter or spokespersons) from both sides and the actual imposition of tariffs (in the US after the relevant advertisement from the Office of the US Trade Representative; in the EU through the approval of the 28) there is a long way to go, and we must not confuse potential acts and facts. It is clear that despite the harsh tone, the negotiating teams on both sides of the Atlantic are still at contact and are trying to avoid as far as possible actions detrimental to both sides.

On the other hand, the relationship between China and Europe is frankly different from the one with the USA. The Belt and Road Initiative (BRI) (to which Italy has formally adhered) is the confirmation of China's bid to be the next leader of the world's Economics . Through this initiative, President Xi Jinping aims to redistribute and streamline trade flows to and from China by land and sea. To this end, the stability of South Asian countries such as Pakistan and Afghanistan is vital, as is the ability to control vital maritime traffic points such as the Strait of Malacca and the South China Sea. The Asian "dragon" has an internal status that favors its growth (6.6% of its GDP in 2018 which, being the worst figure for 30 years, is still an overwhelming figure), as the relative efficiency of its authoritarian system and, especially, the great support of the State to companies boost its growth, as well as possessing the largest foreign currency reserves, especially dollars and euros, which allow a great stability of the country's Economics . The Chinese currency, the Renminbi, has been declared by the IMF as a world currency reservation , which is another indicator of the good health that is predicted for the future of the Chinese Economics .

For the EU, China is a competitor, but also a strategic partner and a negotiator partner [12]. China is the EU's main importer partner , accounting for 20.2% of imports (€395 billion) and 10.5% of exports (€210 billion). The volume of imports is such that, although the vast majority reach the European continent by sea, there is a railway connection that, under the BRI, links the entire Eurasian continent, from China's manufacturing capital, Yiwu, and the last stop at the southernmost tip of Europe, Madrid. Although some of the imports are still so-called "low-end" goods, i.e. products of basic manufacture and cheap unit price, since China joined the WTO at entrance in December 2001, the concept of material produced in China has changed radically: the great abundance of rare earths in Chinese territory, together with the progress in its industrialization and investment in new technologies (in which China is a leader) have meant that China is no longer thought of only as a mass producer of bazaars; on the contrary, the majority of imports into the EU from China were high-end, high-tech machinery and products (especially telecommunications and processing equipment from data).

In the aforementioned statement press release from the European Commission, China is warned to comply with the commitments made in the Kyoto Protocols and Paris Agreements regarding greenhouse gas emissions; and urges the Asian country to respect the dictates of the WTO, especially in subject on technology transfer, state subsidies and illegal practices such as dumping.

These aspects are vital for economic relations with China. At a time when most countries in the world signed or are part of the Paris Agreements for the reduction of greenhouse gas emissions, while the EU is making efforts to reduce its pollution (closing coal plants and mines; putting special taxes on energy obtained from non-renewable sources...), China, which totals 30% of global emissions, increased in 2018 by 3% its emissions. This, beyond the harmful effects for the climate, has industrial and economic benefits: while in Europe industries are narrowing their profit margins due to the rise in energy prices; China, which is fueled by coal, provides cheaper energy to its companies, which, without active restrictions, can produce more. An example of how the climate affects economic relations with China is the recent advertisement [13] of AcerlorMittal to reduce by 3 million tons its total steel production in Europe (out of 44 million tons of usual production) due to high electricity costs and increased imports from countries outside the EU (especially China) which, with excess production, are lowering prices worldwide. This internship, which is especially used in China, consists in flooding the market with an overproduction of a certain product (this overproduction is paid with government subsidies) to lower prices. As of December 2018, in the last 3 years, the EU has had to impose more than 116 sanctions and anti-dumping measures against Chinese products [14]. Which sample that, despite the EU's attempts to negotiate on mutually satisfactory terms, China does not comply with the stipulations of the agreements with the EU and the WTO. Particularly thorny is the problem with government-controlled companies (a ban on 5G networks in Europe, controlled by Chinese providers, is being considered for security reasons), which have a virtual monopoly inside the country; and above all, the distorted reading of legality by the Chinese authorities, who try to use all possible mechanisms in their favor, making it difficult or hindering direct investment by foreign capital in their country, as well as imposing requirements (need to have Chinese partners, etc.) that hinder the international expansion of small and medium-sized companies. However,

The biggest friction with the EU, however, is the forced transfer of technology to the government, especially by companies of strategic products such as hydrocarbons, pharmaceuticals and the automotive industry [15], imposed by laws and conditio sine qua non companies cannot land in the country. This creates a climate of unfair skill and direct attack on international trade laws. The direct investment of Chinese capital in critical industries and producers in the EU has caused voices to be raised calling for greater control and even vetoes on these investments in certain areas due to Defense and Security issues. The lack of protection of intellectual rights or patents are also important points of complaint by the EU, which aims to create through diplomacy and international organizations a favorable climate for the promotion of equal trade relations between the two countries, as reflected in the various European guidelines and plans concerning topic.

As we have seen, the trade war is not only limited to the US and China, but third parties are suffering from it and even actively participating in it. The question arises here: can the EU benefit in any way and avoid a new crisis? Despite the pessimistic mood, the EU can derive multiple benefits from this trade war if it manages to maneuver properly and avoid as far as possible further tariffs against its products and keeps the market open. If the trade war continues and the positions of the US and China harden, the EU, being partner the main beneficiary of both, could benefit from a redistribution of trade flows. Thus, to avoid the loss due to tariffs, both China and the US could sell heavily taxed products to the European market, but especially import products from Europe. If a agreement is reached with the US to lift or minimize tariffs, the EU would find itself facing a huge market niche left by Chinese products vetoed or taxed in the US. The same in China, especially in the automotive sector, from which the EU could benefit by selling to the Chinese market. Alicia Garcia-Herrero, of the Belgian think tank Bruegel, states that the benefit for Europe will only be possible if it does not lean towards any of the contenders and remains economically neutral [16]. He also stresses, like the European Commission, that China must adopt measures to guarantee reciprocity and market access, since the European Union still has a greater volume of business and investments with the USA, so that the Chinese offer should be highly attractive for European producers to consider directing products to China instead of the USA. The UN itself estimates at US$70 billion the benefits that could be absorbed by the EU thanks to the trade war [17]. Definitely, if the right measures are taken and the 28 draw up an adequate road map, the EU could benefit from this war, without forgetting that, as the EU itself advocates, coercive measures are not the solution to the trade problem, and hopes that, due to their ineffectiveness and damage caused to both consumers and producers, the tariff war will come to an end and, if differences persist, they will be resolved in the WTO Appellate Body, or in the Permanent Court of Arbitration of the United Nations.

This trade war is a highly complex and nuanced topic ; this analysis has attempted to address many of the issues, data and problems facing the European Union in this trade war. It has been generally analyzed what the trade war consists of, as well as the relations between the EU, China and the USA. We are facing a gray future, with the possibility of multiple and quick turns (especially on the part of the US, as seen after the G20 summit in Osaka, after which it has allowed the sale of components to Huawei, but has not removed the company from its blacklist) and from which, if the requirements and the conditions set out above are met, the EU will definitely benefit, not only economically, but if it remains united and making a common front, it will be an example of negotiation and economic freedom for the whole world.

 

REFERENCES

Thomas, D. (14-5-2019) Who loses in the China-US trade war. BBC. Retrieved from.

Blake, A. (9-5-2019) Trump's rambling, disappointing Q&A with reporters, annotated. The Washington Post. Retrieved from.

3. Huawei: US blacklist will harm billions of consumers (29-5-2019) BBC. Retrieved from

4. EU warns China and the US: a trade war would subtract 0.6 points of GDP(3-6-2019) El Confidencial. Retrieved from

5. European Union Trade Statistics. (18-6-2019) European Commission.Retrieved from: http://ec.europa.eu/trade/policy/eu-position-in-world-trade/statistics/

6. Pozzi, S. (2-3-2018) Trump reaffirms protectionism by raising tariffs on imported steel and aluminum. El País (New York correspondent)Retrieved from.

7. Inchaurraga, I. G. (2013). China and GATT (1986-1994): Causes and consequences of the failure of a negotiation. Cizur Menor, Navarra: Aranzadi. pp. 204-230.

8. Tejero, M. (25-7-2018) agreement EU-US: "zero tariffs" on industrial goods; more soybeans and liquefied gas. El Confidencial. Retrieved from.

9. Pardo,P. & Villaécija, R. (17-6-2019) Trump threatens Spanish wine. El Mundo. Retrieved from.

10. A quick guide to US-China Trade War (14-5-2019) BBC. Retrieved from

11. Rosenfeld, E. & Soong, M. (25-3-2018) Nobel-winner Robert Shiller warns of an 'economic crisis' from trade war threats. CNBC. Retrieved from.

12. EU reviews relations with China and proposes 10 actions. (12-3-2019) European Commission- statement de Prensa.

13. Asturias takes 23% of Arcelor's new EU production cut.(6-5-2019) 5 Days Retrieved from.

14. Morales, R. (26-12-2018) EU increased 28.3% its antidumping measures in 3 years: WTO. El Economista Mexico. Retrieved from

15. Warning about forced technology transfer to Chinese government.(20-5-2019) Infobae. Retrieved from

16. García-Herrero, A.; Guardans, I. & Hamilton, C. (28-6-2018) Trade War Trinity: analysis of global consequences. Bruegel (lecture). Retrieved from.

17. European Union, the big beneficiary of the trade war between China and the U.S.(4-2-2019) UN News . Retrieved from

Categories Global Affairs: European Union North America Asia EconomicsTrade and Technology Testing

The need for labour has traditionally led Sweden to welcome waves of immigrants; Sectors of society today experience it as a problem

Oresund Bridge, between Denmark and Sweden, seen from Swedish territory [Wikipedia]

▲ Oresund Bridge, between Denmark and Sweden, seen from Swedish territory [Wikipedia]

ANALYSIS / Jokin de Carlos

Sweden has had a reputation, since World War II, for being a country open to immigrants and for developing tolerant and open social policies. However, the increase in issue The slow cultural adaptation of some of these new communities, especially the Muslims, and the problems of violence generated in areas of greater vulnerability have led to an intense discussion in Swedish society. The view that a generous migration policy may be destroying Swedish identity and making life more difficult for native Swedes has fuelled the vote of some civil service examination The Social Democrats last year revalidated public support for a government that maintains traditional policies with a certain greater emphasis on the expulsion of those whose application has been rejected.

Migration policy

One of Sweden's historical problems has been its leave By the 1960s, the fertility rate had fallen to the threshold of 2.1 children per woman needed for population replacement. That was something that threatened Sweden's notorious welfare state, because of the need for tax revenues to maintain generous public services, so the country promoted the influx of immigrants. At the same time, the need for manpower was also raised by the development of the national industry.

Sweden emerged from World War II in good condition. It did not suffer the destruction of other nations, as it remained territorially on the margins of the conflict, and it was able to consolidate a metallurgical industry that, thanks to the production of its iron mines, had benefited from selling to both sides in the war. That development required a great deal of work that the leave The concentration of the population on the coast and in the south, outside the industrial centres, made it difficult to gather. In addition, Sweden's welfare state and continued decades of peace created a class average that he did not want to work in the new industry because of the low wages it offered to be competitive.

To solve the labor shortage and thus maintain economic progress, Sweden turned to immigration since the 1950s. The government first opened the border to asylum seekers or work and then built clusters of dwellings, usually of leave near industrial areas where newcomers could find jobs without any language. When the cultural impact of these additions was too great in some areas, the government proceeded to close the borders, restricting immigration. When new workers were needed, the government reopened the border.

This system helped to advance economically, but it also isolated many social groups, who were stuck in low-income areas with little possibility of development or social integration.

development historical

Both during and after World War II, Sweden was an important destination for people from Norway, Denmark, Poland, Finland and the Baltic Republics escaping war or the destruction it created; It was also a neutral destination for many Jews. In 1944, there were more than 40,000 refugees in Sweden; While many returned to their countries after the war, a group A considerable number of them remained, mainly Estonians, Latvians and Lithuanians, whose home nations were incorporated into the USSR.

In 1952, Sweden, Denmark and Norway formed the committee Nordic, creating a area of free trade and freedom of movement, which Finland joined in 1955. With this, thousands of migrants went to Sweden to work in the industry, mainly from Finland but also from Norway, which had not yet discovered its oil reserves. This increased the percentage of the immigrant population from 2% in 1945 to 7% in 1970. All this helped Tage Erlander (Prime Minister of Sweden from 1946 to 1969) to create the project "Strong Society", aimed at increasing the public sector and the welfare state. However, this influx of labour began to harm native Swedish workers, and consequently, in 1967, trade unions began to pressure Erlander to limit labour immigration to the Nordic countries.

In 1969, Erlander resigned from the position and was replaced by his protégé, Olof Palme. Palme was a member of the most radical wing of the Social Democrats and wanted to further increase the welfare state, continuing the project of its predecessor on a larger scale.

In order to attract a larger workforce without angering unions, Palme began using pro-refugee rhetoric, opening Sweden's borders to people escaping dictatorships and war. At the same time, these people would be moved to industrial neighborhoods, built especially for them in nearby industrial areas where they would work. At the same time, Palme sought to make Sweden an attractive country for immigrants through assimilation policies in favor of multiculturalism.

During this period, people of many nationalities began to arrive in the country: from those fleeing conflict in Yugoslavia or martial law in Poland to those fleeing the Middle East and Latin America. These new populations settled far from native Swedish demographics; Because of this, many neighborhoods in the class They became isolated ghettos. In 1986, Palme was assassinated and his successor, Ingvar Carlsson, changed immigration policy and began accepting only those they configured as refugees from the United States. agreement with United Nations standards.

During the 1990s, increased conflicts in places like Somalia, Yugoslavia, and several African nations increased the flow of war refugees, with many of them going to Sweden. The Ministry of Migration and Asylum Policy was established in 1996. However, the two largest movements of people from foreign countries would occur in the wake of the subsequent conflicts in Iraq and Syria. The conservative government of Fredrik Reinfeldt began taking in a large volume of Iraqi refugees, who in 2006 became the country's second-largest minority, after the Finns. In 2015, the Social Democratic government of Stefan Löfven opened the border to Syrian refugees, who arrived en masse, fleeing the Syrian Civil War and the push of Daesh.

This succession of waves of immigrants from the Middle East aggravated some problems: in many neighborhoods, outsiders don't feel like they're in Sweden, mainly because they were built to "not be Sweden"; In addition, difficult integration and low-paying jobs fuel gangs and organized crime. All of this led Löfven to implement a stricter migration policy in 2017, accepting fewer asylum seekers and beginning to expel those whose asylum claims had been denied.

As you can see, the trend in Sweden is to open borders to immigration when it is needed and to close them when it starts to cause social tensions.

Origins of the Immigrant Population

Sweden has become a very ethnically diverse society, where almost 22% of the population has a foreign background. Until 2015, the largest ethnic minority in the country were Finns, who numbered more than 200,000 at the end of the last century. In the wake of the war in Iraq and the Syrian migration crisis, people from the Middle East have become the largest group.

Currently, 8% of the inhabitants of Sweden come from a country with a Muslim majority – mainly from Syria and Iraq, but also from Iran – although only 1.4% of the population practices the Muslim religion (around 140,000 people in 2017), as there are also immigrants from these countries with other religious affiliations. such as Christians, Druze, Yazidis or Zoroastrians. These numbers may have increased slightly, though not to cause very drastic changes in demographics.

Despite not being particularly numerous, the Muslim community has generated media attention as a result of various controversies. In 2006, Mahmoud Aldebe, a member of the committee A Muslim from Sweden, he put forward in a letter to the political parties of the Riksdag and the Swedish government especially controversial demands, such as the right to specific Islamic holidays, special public funding for the construction of mosques, that all divorces between Muslim couples be approved by an imam, and that imams be allowed to teach Islam to Muslim children in public schools. These demands were rejected by the authorities and the class Sweden's politics. It has also been the case that some Muslim associations or mosques have invited radical preachers, such as Haitham al-Haddad or Said Rageahs, whose lectures were eventually banned.

Vulnerable Areas and Organized Crime

The Swedish government has designated some neighbourhoods as Vulnerable Areas (Utsatt Område). They are not strictly "No-Go Zones", because they can be entered by police officers, health services or the media. These are areas of lower security that require greater attention from the authorities.

Some of them are located in Malmö, the city with the highest crime rate in the country, mainly due to its location. Malmö is located on the other side of the Oresund Bridge, which connects Denmark to Sweden and is the only overland route between Sweden and the mainland without having to go around the Baltic. There, various gangs and mafias participate in drug and human trafficking, while at the same time confronting each other in a struggle for control of space. Groups of this subject they also operate in Rotterdam, in relation to the activity generated by its important port.

Despite the impression given by certain anti-immigration messages, crime in Sweden is at levels similar to those of 2006. After that year, the issue crime prices fell, only to rise again in 2010 and 2012. A link could be made between this rise and the economic crisis, which led to an increase in unemployment, but its link to immigration records is less clear. The arrival of Iraqis in 2005 did not lead to greater insecurity on the streets of Sweden, nor has the reception of Syrians in recent years. Sweden's homicide rate is 1.1 per 100,000 inhabitants – below many other European countries – and there are more crimes recorded by native Swedes than by foreigners, according to the committee Swedish National Crime Prevention.

However, the mafias operating in Sweden are mostly made up of certain ethnic groups. His training it stemmed especially from the influx of people from Yugoslavia, both workers in the 1970s and refugees from the Balkan wars of the 1990s. Chief among these groups, known as the Yugo Mafia, is today led by Milan Ševo, nicknamed "The Godfather of Stockholm." Other groups include K-Falangen and Naserligan, composed of Albanians; the Werefolf Legion, made up of South Americans, and the Gangsters, originally made up of the Assyrians (Syria's Christian minority). However, one of the largest is Brödraskapet or the Brotherhood, founded in 1995, with more than 700 members who are all native Swedes and with a large presence in Swedish prisons.

 

Migratory movements in Sweden between 1850 and 2007. In red, arrival of immigrants; in blue, departure of emigrants [Wikipedia-Koyos]

Migratory movements in Sweden between 1850 and 2007. In red, arrival of immigrants; in blue, departure of emigrants [Wikipedia-Koyos]

 

Terrorism

Since 2011 there have been three terrorist attacks in Sweden; A fourth attack could have been avoided as its preparation was detected in time. The first was made by Anton Lundin Pettersson, a Swedish neo-Nazi who in 2015 attacked the Trollhättan School, killing four people, all of them immigrants. The next was perpetrated by the Nordic Resistance Movement, a neo-Nazi organization, which acted against a refugee center and the café of a left-wing organization; Only one person was injured in the attack. The third, the most well-known, was perpetrated in 2017 by a man from Uzbekistan apparently recruited by Daesh, who rammed a truck into pedestrians in central Stockholm, killing five people and injuring fourteen.

Of the three attacks, only one was jihadist-motivated, unlike the weight that Islamist terrorism has had in other European countries with larger Muslim populations. In any case, the segregation experienced in some communities and the radical indoctrination that takes place in them led young Swedish Muslims to go to Syria to join Daesh and the authorities are closely monitoring their possible return.

Hits and misses

For a long time, the European left held up Sweden as an example of model successful social democrat; Now, from certain right-wing groups, he is held up as an example of failed multiculturalism. Both statements are probably an exaggeration for partisan purposes. However, the truth is that Sweden has a generous well-being that is difficult to maintain, and that in its also generous opening of borders it has made mistakes that have not facilitated the integration of the new population. Everything seems to indicate that Löfven continues the path he began in 2017 and there has been an increase in police presence on the streets as well as a hardening of immigration policies, in turn following the policies made in Denmark.

Time will have to pass to see what results these policies will have in a future Sweden.

In Norse mythology, Valhalla is a huge, majestic hall that, in the afterlife, heroes aspire to enter

Categories Global Affairs: European Union World order, diplomacy and governance Analysis

The Belgian city, the world's capital of diamonds, has applied more regulations, sanctions and scrutiny on the industry, but still there are some bad practices

The diamond industry has its main world center in the Belgian city of Antwerp

▲ The diamond industry has its main world center in the Belgian city of Antwerp

ANALYSIS / Jokin de Carlos Sola

The diamond trade moves hundreds of millions of euros every year around the globe. Most of them come from third world countries where the diamonds are extracted by very hard means. Even today, diamonds coming from conflict zones and used to finance conflicts and violence are a significant part of the market. Nowadays the production is mainly sold in cities of the United States and Europe and most of those diamonds in some way or another end up passing through the city of Antwerp in Belgium, showing that the Dutch and Belgians still have certain control over the industry.

This text will explore the origins of the city of Antwerp as a centre in the diamond market and of the control by Dutch and Belgians of this particular business; then it will analyze this industry in the new globalised era, and finally explain the relation of the city of Antwerp and the trade of blood diamonds.

Low Lands, a land of diamonds

Until the 19th century most diamonds came to Europe from India through the ports of Bruges, Antwerp and Amsterdam. The origins of the Low Countries as a centre of diamond craft and trade comes from the 15th century. In 1475 a Flemish jeweller, named Lodewyck van Bercken, invented the scaif, a polishing wheel infused with diamond dust and olive oil. This made easier the cutting of a diamond and revolutionised the industry. Bercken was a protégée of Duke Charles de Bold and his techniques were spread all around the Low Countries. For the next years Antwerp and Amsterdam became big competitors in the diamond trade.

In the 17th century Amsterdam was the most important city in Europe concerning diamonds. Because of the religious tolerance of the Netherlands, many Sephardic Jews established themselves in the city moving from Antwerp. There they had acquired knowledge working with diamond due to the guild-system, for the only industry that they were allowed to work in was the diamond industry.

In 1725 diamonds were discovered in Brazil and most of them went through Amsterdam. During the 19th century over 90% of rough diamonds sold in Europe passed through the Dutch city. Due to the colonial power of the Netherlands, the Dutch diamond trade extended over the world, especially to New Amsterdam (New York) and Cape Town, which would become vital instructions of the international diamond trade in the 20th and the 21st century. However, after the mines in Brazil started to dry up and the power of the Netherlands began to fade Amsterdam started to lose importance in favour of Antwerp, its biggest rival on the diamond industry, also a culturally Dutch city that would become the diamond's capital of the world. During its golden age Amsterdam developed a high-quality craft industry, but Antwerp managed to be as effective and cheaper as well as more permissive regarding taxes.

In 1866 diamonds were discovered in South Africa, in the Transvaal region, an area mainly populated by Dutch settlers. At the same time the British magnate Cecil Rhodes created the diamond company De Beers, based in Johannesburg. Massive amounts of rough diamonds started then to arrive to Europe, through Cape Town and Antwerp.

By the beginning of the 20th century De Beers controlled over 90% of the diamond industry in the world. In 1927 the company passed from the hands of Cecil Rhodes to the ones of Ernst Oppenheimer, a white South African entrepreneur, whose family still controls the diamond trade around the world.

During the Second World War most Jews from both Amsterdam and Antwerp were either forced to flee or were sent to extermination camps. This had hard consequences on an industry that was mainly controlled by the Jewish community. After the war, Antwerp quickly rebuilt its diamond business.

In 1948, De Beers established a new marketing strategy: it presented diamonds as a symbol of love and marriage, with the motto "a diamond is forever". A ring with a diamond became the perfect wedding present and it was advertised extensively. This new strategy increased the demand of diamonds, especially in the United States, where not just the economic elite was buying them, but it was also the aspiration of the high-middle class and even of the middle class. As a result, De Beers experienced it biggest growth in history turning Antwerp the indisputable capital of the diamond industry.

In 1973 the Antwerp Diamond World Centre (ADWC) was established. It is a public/private corporation, founded by the Belgian government and the most important diamond companies in the city. The Diamond Office, an ADWC's subsidiary, facilitates the import and export of diamonds in and out of Antwerp.

Antwerp's diamond industry

The Antwerp's diamond industry is concentrated in a part of the city called the diamond district or Diamantkwartier, which covers a complete square mile. According to the ADWC, 84% of the rough diamonds and 50% of the polished ones pass through Antwerp. In 2012 the turnover of the Diamantkwartier was 54 billion euros. Over 16 billion dollars in polished diamonds pass through the district's exchanges each year. There are 380 workshops that serve 1,500 companies. There are also 3,500 brokers, merchants and diamond cutters. The main actions taken in Antwerp are both the trade of rough and cut diamonds and the cut of rough diamonds with modern machinery. They also perform other jobs like applying color and crafting jewellery. There is even a bank consecrated to the diamond industry, the Antwerp Diamond Bank, which is owned by the KBC Bank.

Traditionally the Jewish community had almost complete control over the diamond business in Antwerp. More than 80% of Antwerp's Jewish population works in the diamond trade. In fact for many years the Yiddish was considered the main language of the diamond exchange. No business is conducted on Saturdays. However, since the late 20th century many Indian, Arminian and Lebanese dealers have increased importance in Antwerp's diamond trade.

For Belgium, the importance of Antwerp as the diamond capital of the world has been a source of economic incomes and great prestige. The diamond trade counts for 5% of Belgium's exports to the EU and 15% of its exports outside the EU; it is the 5th largest industry in the country. It also has been the reason for a lot of foreign investment.

During the last decade several other cities outside Western Europe have invested on their diamond industry, like Tel Aviv, Tokyo, Hong Kong, Chicago and several cities in South Africa. However, Antwerp still is the most important trade centre in Europe, being Amsterdam its biggest competitor.

In 2017 Antwerp traded 46 billion dollars in diamonds, with a total of 233.6 million of carats. This figures meant a slight improvement, aided by the approval of the Diamond Regime by the Belgian Parliament. This law changed the way of taxation and ended up benefiting the diamond companies of Belgium.

Diamonds and political corruption

Because of its size and the profits it generates, the diamond industry has a lot of influence in Belgian politics, especially in Flanders. It acts as a lobby in favor of specific bills and policies and tries to avoid an increase of regulations. An example of this is when in 1986 an investigation was opened on the business of Abraham Kirschen, who reportedly sold diamonds in the black market to avoid taxation. According to the average, some conservative politicians were linked to the scheme and some 170 diamond traders were investigated for evading a billion dollars in taxes through a bank account in Geneva. The case ended up implicating the second largest diamond company after De Beers, Omega Diamond, and most of the Belgian political establishment. The AWDC rapidly distanced itself from the scandal at the beginning of the controversy, which was to closed without having much negative impact in the industry.

Following this and other scandals, the Belgian government managed to impose more regulations, in order to rule a business that traditionally has shown a lack of transparency and has been prone to tax evasion. But the diamond lobby has been very active and through its political influence has scored some victories. In 2011 it achieved its main goal: the change of the Belgian criminal law.

In 2008 the biggest fraud of a diamond company was discovered by Belgian authorities. The company was Omega Diamonds, established only in 1994 by the Belgian Sylvian Goldberg. The company became the second biggest diamond company after De Beers and had for many years the monopoly of the diamond exports from Angola. An investigation started in 2006 concluded that the company had created a tax fraud scheme. Omega Diamonds imported diamonds from Angola and the Democratic Republic of Congo through Dubai into Antwerp. During the transfer, documents were manipulated allowing the company to conceal the origin of the diamonds. It ordered the shipment of diamonds purchased in Angola and the DRC to be delivered to entities located in Dubai. Upon arrival in Dubai the diamonds were repacked and exported to Antwerp. The new shipment, marked "diamonds of mixed origin", was issued with an invoice addressed to Omega Diamonds wherein the value of the diamonds was artificially increased. In so doing, the company was able to hide its additional profit from Belgian tax authorities.

In October 2008, Belgian federal police raided the premises of Antwerp-based Omega Diamonds. The raids resulted in a record seizure of 150 million dollars worth diamonds. Companies in Antwerp started to fear similar scrutiny from Belgian courts and the federal police. Because of this, the AWDC asked for political support, and it got help from some politicians, who accused law enforcement of "damaging the reputation" of the diamond industry. A bill meant to block law enforcement from confiscating illegal diamonds, written by AWDC's lawyers, was introduced by members of the most important political parties of the Belgian establishment.

In December 2010, the sponsors of the 2008 bill became members of a secretive group, "The Diamond Club", in order to push this legislation, which passed in 2011. According to the law, diamond companies investigated by fraud could avoid prison by paying a sum of money to the public prosecutor, as well as fight back the judicial backlog, and prevent, in many cases, a deeper investigation.

In application of the law, Omega Diamonds agreed in 2013 to pay a settlement of 160 million euros to avoid being prosecuted for tax evasion and money laundering, all that for a fraud that is calculated to have been of over 2 billion euros. The settlement cleared Omega Diamonds of all charges.

The law was controversial, to say the least, and it became very unpopular in Belgium, mainly because almost all parties were involved in it. In 2016 the Federal Constitutional Court of Belgium declared unconstitutional most parts of it. In 2017, the Belgian Parliament set up an inquiry commission to investigate the relation between the law of 2011 and the diamond industry. The commission stated that the blueprint of the law was written by lawyers for the AWDC, but at the moment it hasn't investigated the relations of various politicians with the diamond industry.

Blood diamonds

A blood diamond is the one that is extracted from conflict zones and used for financing wars or violent actions. They have been a very common threat to the image of the diamond industry and nowadays there is a big effort by various diamond companies of tracking the origin of the stones, in order to avoid scandals. However, during the 1980s and 1990s blood diamonds worth millions of dollars flooded from Angola and Sierra Leone to Antwerp, something that still happens today.

Diamonds have a very big value, that's common knowledge, but in fact a big reason for this value comes from a strategy started by De Beers and followed by other diamond companies. This strategy consists of acquiring the monopoly of diamonds in a certain region and putting them in the market in a way that prices will always remain high. This was firstly done by Cecil Rhodes, and the diamonds in South Africa. If all the diamonds were put in the market at the same time their price will decrease. With this the company always got a big revenue.

Before the Angolan Civil War (1975-2002) there was not much concern on what was the origin of the stones. However, during this war the UNITA group started to use the diamonds extracted in their territory to fund its war against the government. This made diamonds a reason for instability and provided violent groups with weaponry. Because of this there was a big international pressure for the ending of the trading of the Angolan diamonds in 1998, by the UN Security Council resolution 1173. 

A similar situation happened in Sierra Leone with RUF group and its war against government (1991-2002). It is calculated that the RUF extracted yearly a total of 125 million dollars every year. This money was used to fund a war were the RUF committed a series of crimes such as rape, mass killings or mutilations. In the year 2000 the UN Security Council imposed sanctions on diamonds from Sierra Leone.

Even though these sanctions were harmful for both rebel movements a report written by Robert Fowler, chairman of the Security Council committee investigating violations of sanctions on Angola, informed the UN that blood diamonds were still being exported from these countries, most of them arriving to Antwerp, where they were sold in the international market.

 

The 2017 African Diamond Conference organized by the Antwerp Diamond World Centre [ADWC].

The 2017 African Diamond Conference organized by the Antwerp Diamond World Centre [ADWC].

 

The Fowler Report

The Fowler report was very critical with the role of Antwerp as the end stage of all blood diamonds. "The unwillingness or inability of the diamond industry, particularly in Antwerp, to police its own ranks is a matter of special concern to the panel,'" said the report.

The report also stated that the willingness to traffic the diamonds provided by UNITA or RUF "results from the often-expressed fear that stricter regulation would simply cause traders to take their business elsewhere." It also said that he Belgian authorities had failed to establish a credible system for identifying rough diamonds coming from conflict zones, while making "no serious effort" to keep track of diamond traders known to deal with the rebels. A prominent Antwerp diamond trader trained the diamond experts who work for UNITA, the report said.

The system for concealing the bad practices consisted on transporting the diamonds to third countries that were willing to act as a bridge between the diamond exporter and Antwerp. Two examples of this are Liberia for the Sierra Leone diamonds and Rwanda for the stones from Angola. In fact, Rwanda had a key role in the war in Angola: UNITA transported diamonds to Rwanda which were bought by Antwerp diamond traders and then the money was used to buy guns from Eastern Europe that were transported to Rwanda.

The Fowler report, together with another investigation made by the international NGO Global Witness, also pointed De Beers to have bought Angolan blood diamonds to maintain its monopoly on diamond sells. De Beers admitted to have done this before the sanctions of the UN, but Global Witness still accuse De Beers of trading with blood diamonds even after the sanctions. According to this report the company bought blood diamonds through its huge network of buying offices in Africa and the company's cartel-like Central Selling Organization, which sets world diamond prices (although it is based in London, many of its diamond traders work in Antwerp).

This severely harmed De Beers' name. Because of this Anthony Oppenheimer, CEO of the company, stopped buying Angolan diamonds except the ones provided directly by the Angolan government. Due to the fall of prestige of diamond industry after the scandals involving blood diamonds De Beers and other diamond companies started to establish more transparent roots of diamond trading to avoid new scandals.

The Kimberly Process

After the effects of the Fowler report the Kimberly Process of Certification Scheme was established to guarantee a fair and clean trade of diamonds. Established in 2003 following a meeting in Kimberly, South Africa, and by the UN General Assembly Resolution 55/56. Belgium took an active role in the establishment of the process. The first step of these process was the system of warranties created by World Diamond Council, all these warranties were incorporated in the Kimberly Process and all its members must follow them:

-Trade only with companies that include warranty declarations on their invoices.

-Not buy diamonds from suspect sources or unknown suppliers, or which originate in countries that have not implemented the Kimberley Process Certification Scheme.

-Not buy diamonds from any sources that, after a legally binding due process system, have been found to have violated government regulations restricting the trade in conflict diamonds.

-Not buy diamonds in or from any region that is subject to an advisory by a governmental authority indicating that conflict diamonds are emanating from or available for sale in such region, unless diamonds have been exported from such region in compliance with the Kimberley Process Certification Scheme.

-Not knowingly buy or sell or assist others to buy or sell conflict diamonds.

-Ensure that all company employees that buy or sell diamonds within the diamond trade are well informed regarding trade resolutions and government regulations restricting the trade in conflict diamonds.

Members like the Democratic Republic of Congo have been expelled after being unable to ensure the origins of the stones. Organizations such as Global Witness have criticized the ineffectiveness of the process and its inability to end with the continuing trade of blood diamonds: "Rough and uncut diamonds can easily be smuggled over porous borders from places like the Ivory Coast and can obtain a Kimberley Process certificate from another country before being shipped to Europe". Other critics accuse the Kimberly process of making the diamond trade too complicated and too bureaucratized and therefore harming developing countries which heavily depend on the diamond trade such as Botswana or South Africa. They underscore that only 0.2% of diamonds in the industry are considered conflict diamonds and during both Angola and Sierra Leone civil war the number never increased over 15%, as it was addressed by the publication Foreign Policy.

The Belgian connection

Despite the efforts of the Kimberly Process and the Belgian government blood diamond still pass through Antwerp, mainly using companies and bank accounts in Switzerland. An example of this was when in March of 2017 Belgian authorities seized 14 million euros worth of diamonds believed to be from the Ivory Coast from a major diamond smuggling ring based in Antwerp. The investigation also led to several Geneva-based firms that used fake certificates to import raw diamonds worth 370 million euros from countries outside the Kimberley Process before selling them to Belgian traders.

Antwerp dealers routinely settle multi-million-dollar transactions in cash and rarely offer receipts, according to a study on diamonds and conflict in Sierra Leone by the NGO Partnership Africa Canada. While illegal operations have a hand in keeping the trade alive in Europe, even legitimate enterprises could be unwittingly involved.

Another case was when in 2015 the Belgian businessman Michael Desaedeleer was arrested in Spain, accused of enslavement and pillaging blood diamonds during Sierra Leone's civil war. His arrest was a "landmark" because it was the first time an individual resulted detained on international charges related to the exploitation of the war in Sierra Leone to market blood diamonds.

Recently, Zimbabwe has gained recognition as an exporter of blood diamonds and a 2017 report by Global Witness relates these diamonds with the Antwerp diamond industry. Like most of its neighbours, Zimbabwe has diamond mines in its territory. However, in 2006 in the area of Marenga the richest diamond deposits were found -the so called Marenga diamond field. Since its discovery, the extraction of these diamonds has been done either by the government or by companies related to the regime. According to Global Witness these stones are being used to strength the regime and keep the political repression. Because of that most countries and organizations consider it blood diamonds. Since its discovery, there has been an embargo of these diamonds, but the Antwerp industry has tried to make the trade flow between Zimbabwe and the city, sometimes violating the EU sanctions.     

The report mentions confidential government papers that talk about deals between Belgian diamond traders with the Zimbabwean Consolidation Diamond Company (ZCDC), as well as with two other companies in Marenga: Anjin and Jinan, both related to the state-owned military company Zimbabwean Defence Industries (ZDI). Since 2008, the EU imposed sanctions on ZCDC as well as on Anjin and Jinan. However, in 2013 the EU decided to withdraw all sanctions against ZMDC following increasing pressure from state members, especially from Belgium (pressed by the AWDC). The decision was very criticised by human rights groups, and finally the sanctions against the ZDI were kept.

Since 2010 Zimbabwe has officially exported over 2.5 billion dollars in diamonds according to official figures from the Kimberley Process. According to the limited available government reporting, only around 300 million dollars can be clearly identified in public accounts.

The diamond trade is definitely part of the Belgian trade tradition and part of the Belgian economy. As a part of a country with very few natural resources, Antwerp has done around history a big effort to maintain its position as a diamond centre. Bringing money, jobs and prestige to the city. However, it has also brought corruption to the political system and has served as a place for money laundry, tax evasion and financing of violent groups in Africa. With corruption, with money, with prestige and by work and schemes, without question Antwerp is the diamond of Belgian crown.

Categories Global Affairs: European Union Africa Energy, Resources & Sustainability Analysis

Black Blade 2016, under the EU's Helicopter Exercise Programme [European Defence Agency, Fisher Maximilian].

Black Blade 2016, under the EU's Helicopter Exercise Programme [European Defence Agency, Fisher Maximilian].

ESSAY / Albert Vidal

The purpose of this paper is to project a potential scenario in the European Union (EU) security and defence field around 2030. The European Commission has already developed a three-legged projection (Mogherini & Katainen, 2017), which presents alternative scenarios, the accomplishment of which will depend on the decisions the European Union and its member states take from now on. Thus, as it makes no sense to describe again the three scenarios, I will be focusing on the most ambitious one: a common security and defence.

To do so, I will begin by briefly depicting where we are today, in terms of EU security and defence. Afterwards, I will introduce the core ideas outlined in the Reflection Paper[1] and develop the 3rd scenario. A variety of issues which include funding, industry capabilities and intelligence, among others, will be tackled. 

EU Security and Defence in 2019

As of 2019, the security and defence policies of the EU are embedded in the Common Security and Defence Policy (CSDP) which, although having the astronomical combined budget[2] of more than $220 billion in 2016(How much is spent on defence in the EU?, 2018), it is far from being the military superpower it ought to be. It is true that the EU Global Strategy[3] provides some guidelines for the development of EU's policies, but for now it is just a vision and hasn't yet had the time to deliver tangible results. The Permanent Structured Cooperation (PESCO), on the other hand, offers the potential to work toward the achievement of those goals.

Meanwhile, we can appreciate a costly fragmentation of resources which is embodied in the multiplicity of weapons systems in the EU (up to 178) compared to the US, which has around 30(Munich Security Report 2017, 2017). Duplication is quite pricey: since every EU Member State has to acquire a little bit of everything to cover its wide range of military necessities, we end up having repeated and useless systems and a lot of money is consequently wasted. The lack of interoperability[4] between different European armies complicates the deployments even more and brings equipment shortages. This gives a strong explanation to why less than 3% of European troops are actually deployed(Defending Europe Factsheet, 2017). Besides, the inexistence of a large fund for military operations and research in technology has hindered the development of European-made equipment and has also prevented large-scale operations. If the member states want to launch a military mission, they need to resort to different sources of funding, such as the Athena Mechanism, the African Peace Facility, the Instrument Contributing to Stability and Peace and several Trust Funds, which causes confusion and a loss of efficiency. The aforementioned examples are not thought to be exhaustive; they are just some examples of today's chaos in the field of security and defence in the EU.

How ambitious is the EU?

The 'Reflection Paper on the Future of European Defence' presents three scenarios of incremental cooperation among the EU member states, with each projection having its own principles and reach (Mogherini & Katainen, 2017).

Scenario A is characterized by the lowest degree of cooperation, which would remain voluntary and member states would not be bound to a common security and defence. The EU would only be able to deploy civilian missions and small-scale military operations; and its defence industry would remain largely fragmented.

Scenario B depicts an EU defence policy with stronger financial resources and a greater ability to project its military power. Duplication would be reduced and cooperation with NATO would increase.

Scenario C is by far the most interesting one, where a real common security and defence policy would be developed, and it would effectively balance the contributions and competencies among the member states (Bierman, 2018). Such will be the main object of analysis of the present paper. 

Ten predictions

Being this section my contribution to the conversation, I hope to be creative enough without falling into vagueness and imprecision.

a) In regards to the structure, the CSDP[5] will remain as a part of the Foreign Affairs Configuration within the Council of the EU and will evolve into the communitarian decision-making-style; that is, intergovernmental decision making (which requires consensus) will become democratic (only requires majority). This inflection point will accelerate development of this field, since consensus will no longer be necessary. In regards to the material capabilities, national armies will begin their transition toward a unified European army. Right now, this may seem crazy. But Europe has taken similar steps before in other areas; and even if states have lost their national decision-making power on economic issues, no big disaster has happened.

Although member states are now fearful of transferring defence competences to the Union, I believe this will eventually occur. Many worry because member states will be losing sovereignty and control of their own army, and they will be at the mercy of the EU's will. The problem is that defence is a very dear issue to states and there will be little progress toward efficiency and interoperability unless the EU takes complete control. Europe needs to continue advancing in its integration project to face increasingly challenging crisis; staying still will be synonymous with collapse.

b) Funding will be unified under a single European defence fund that will have a dual purpose. Firstly, it will be devoted to research and development; secondly, it will finance all kinds of operations and cover its costs, be it civilian or military ones[6] (a similar idea to the European Peace Facility). Existing funds such as the Athena Mechanism or the APF would obviously disappear. Ideally, all EU member states would devote the equivalent of a 0.4% of the GDP to such fund, which would account for more than $75 billion[7].

c) Apart from that, EU member states should spend a minimum of 1.1% of their GDP in defence, which accounted for $206 billion in 2018. A superior body will coordinate the efforts to ensure that duplication doesn't take place, and that all materials that are produced, acquired and used are interoperable. Thus, member states will have to follow certain guidelines when investing their resources. If we want to avoid having too many radar stations or minesweepers, the superior body will draft a list with the quotas that each unit, vehicle or system will have and will distribute it among the member states. It will probably be the case that only certain countries will be spending on aircraft carriers, but that won't mean that such carrier belongs to the country that built it. The novelty is that all the equipment and units will be controlled by a unified European Command Center. Defence will be a policy concerning the community of member states.

d) The multiplicity of systems will be drastically reduced and the EU will only produce a small amount of tanks, battleships and aircrafts models. Such specialization and the optimized production will lower the costs of manufacture[8]. This will bring competition among the different actors in the defence industry, which will definitely produce higher quality technology and equipment. The EU could enhance its cooperation with the industries by inviting such companies to the military exercises; so that they can see which gaps they do they have and develop innovative ideas.

e) Relations with external actors will change profoundly. As the national external action will be subsumed under the CFSP, the EU will have an even stronger negotiating power when facing foreign threats, such as Russia. Its relationship with NATO will become awkward, since the EU will have its own army capable of performing high-end operations and will be perfectly fitted to deter Russia. At the same time, the EU will be able to pursue a foreign policy that might not suit the interests of the US, so NATO might become a parallel corpus which, although awkwardly separated from the EU, will maintain its ties with it. In some cases, certain countries will find themselves belonging simultaneously to both NATO and the EU CSDP. What will happen is that EU member states may change their membership status to NATO partners.

f) Other improvements will include a readjustment of the training areas and the recruitment processes[9], which will be brought to an EU scale; this will in turn improve the integration among European soldiers, since they will train jointly from the beginning. Language barriers will be broken and cultural differences will be easily overcome.

g) Nuclear weapons will also be crucial to the future of the CSDP: although it may sound naive that France will give its sovereignty over nuclear weapons to the EU, it still is a possibility that we should not ignore[10]. Maybe we could design a special mechanism on the usage of nuclear weapons by the EU, in which France would have a sort of veto. The UK, on its part, will not be included in the CSDP, and its nuclear weapons and conventional capabilities will continue under their sovereignty.

h) An emphasis will be put on cyber security, Artificial Intelligence systems, quantum technology, laser weapons and autonomous weapons. This is too wide of a topic to be developed here, but what is certain is the need to invest extensively in research. Once all funds come together, research labs and facilities should also start collaborating between them, and this should improve the return on investments.

i) A redesigned Battle Group (BG) concept will impact the way the EU understands its security. Since conflicts after the Cold War have tended to be very localised and asymmetric, it makes little sense to have only such big and numerous forces prepared for combat. What I propose is to create smaller high-readiness special operations forces, which can be deployed in less than 3 days, instead of the 15 days that it takes for Battle Groups[11]. Again, smaller units with cyber support and advanced technology will be a lot more efficient, silent and precise. War is evolving, the EU should as well.

j) Africa will change a lot in the coming years. Right now it is the EU's primary foreign policy concern and it will probably continue to be in 2030. The EU has realised how dangerous another major crisis in Northern Africa might be, because if mixed with the massive population growth and poverty it may provoke colossal migration waves, as we have never seen. To avoid it, the EU should ideally adopt a double-pronged strategy: on the one hand, it should focus on the development of the region. On the other hand, it should address one and for all the chaos present in certain Northern African countries. I am aware of how complex this is, since regional factions, terrorists and liberation groups are often mixed up. Training the police forces through capacity-building missions and strengthening the judicial system and other governmental institutions is a needed step, which should be followed by more development-focused approaches.

Conclusion

I have laid out in this paper where we are today in terms of EU Security and Defence, and I have then further developed the ideas proposed by the 3rd scenario of the Reflection Paper, the most ambitious one. But, what is the utility of projecting such scenario? Well, the EU is facing today multiple challenges that range from terrorism, to migration and a potential internal disintegration. Brexit means that the strongest European army is leaving and the EU now needs to rethink itself. This is a critical point for the future of Europe: crisis means a crucial time in which a decisive change is impending. We need to think extreme during onerous times and consider proposals that would have otherwise remained in the shade.


[1] The 'Reflection Paper on the Future of European Defence' sets the different scenarios for moving towards a security and defence union

[2] USD $220 billion is the aggregate amount that all countries participating in the CSDP spend in defence

[3] The European Union Global Strategy was adopted on 28 June 2016.

[4] Interoperability is defined as the intellectual capacity of military professionals to come together in one formation, face one common problem and try to develop solutions for it. Its biggest challenges are logistics, communication systems and a common understanding of what 'interoperability' actually means (Piatt & Leed, 2014). Today, the lack of interoperability creates an opportunity cost of $27 billion a year (Europe is starting to get serious about defence, 2017).

[5] CSDP will continue to be subsumed to the Common Foreign Security Policy (CFSP). As part of Scenario C, I also envisage the community asserting its rule over the CFSP But this is a different topic that we will not tackle here

[6] The legal restrictions on financing military activities from the EU's budget would disappear

[7] According to the GDP in 2018; in 2030 it will probably be a bigger amount.

[8] According to the European Parliament, joining up the EU defence market would save $27 billion a year (Europe is starting to get serious about defence, 2017).

[9] Another proposal is an EU military conscription, which would diminish the costs greatly

[10] Given that we are projecting Scenario C, we are aiming for a coherent CSDP

[11] Battle Groups would then be used as back-up forces for longer and bigger operations.

 

REFERENCES 

Bierman, B. (2018). A Critical Analysis of the Future of the EU's CFSDP. Global Affairs & Strategic Studies. Retrieved March 1, 2019, from

Crisis (n.d.). Retrieved from

Defending Europe Factsheet(2017). Retrieved from

Europe is starting to get serious about defence (2017). The Economist. Retrieved from

How much is spent on defence in the EU? (2018). Retrieved from

Mogherini, F., & Katainen, J. (2017). Reflection Paper on the Future of European Defence. Brussels. Retrieved from

Munich Security Report 2017. (2017). Munich. Retrieved from

Piatt, W., & Leed, M. (2014). The Future of European Collective Defense. Washington DC: Center for Strategic & International Studies. Retrieved from

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