No Way Forward in France?

An establishment voice casts further doubt on whether French elites see possible progress in the European Union

Jacques Julliard, the weekly’s deputy editor, explains in an interview with François Sionneau that he does not see how the constitution could return to the agenda. “Projecting five to 10 years into the future – the most that is possible – I am frankly not that optimistic about Europe’s political hopes. We have fallen too far behind. We must also remember that an enormous gap exists between the motivations that pushed people to vote ‘no’ – reasons having to do with domestic politics which may be legitimate – and the consequences of this ‘no’, which transcend domestic politics and are not remediable in the short term. The world’s major dates with destiny will proceed without Europe. Large European countries will participate, but not as a Union.”

From Le Nouvel Observateur, via Eurotopics.

The Union’s energy is now mostly coming from the east, but will it be able to overcome blockages from the old members in the west?

Bleg: the new EU Services Directive?

Blegging for information here.

Apparently we’ve passed a Services Directive. Remember the Bolkestein Directive that everyone was excited about? Well, same same, except not. The new version, I’m told, is a much-watered-down version of Bolkestein.

Only thing is, casual googling doesn’t turn up much. Am I badly confused? Or is this just a story that’s not attracting much attention?

Links welcome; and also, if anyone can tell us more (like, whether this actually accomplishes anything), I’d be interested to hear.

Meeting Up Again in Europe

Europe’s newest state, Montenegro, has just been given the go-ahead for the first step towards EU membership, as Enlargement Commissioner Olli Rehn agrees with the Montenegrins that a Stabilisation & Accession Agreement could be signed by the end of the year. Rehn is due in Belgrade next, although you’d have to be very optimistic to expect anything concrete.

It certainly looks like a certain theory of post-cold war Europe is being born out. As early as 1996, Tim Garton-Ash was arguing that perhaps the international community’s failure in Bosnia was down to trying too long to keep a unitary state in being, or in slightly different terms, that diplomats tended to assume any move from bigger to smaller units decreased stability. Perhaps it would be better to accept that the genie was out of the bottle and instead seek peaceful separation, with an eventual view to reintegrating all the units into the European Union.

Well, here we are. The last domino has clattered to the ground, and we’re already talking about agreements with the EU. It’s just a pity about the blood and treasure lost before then. Realistically, there’s probably a preliminary, “little EU” stage of regional integration to go through – getting the quango count down somewhat by sharing some of the new “entities” and states’ responsibilities, whilst also starting the process of making the borders less relevant – before looking at EU membership for the lot. Fine. If France and Germany could be in the Organisation for European Economic Cooperation and the European Payments Union by 1948, the ECSC by 1950, NATO by ’55 and the EEC by 1958, thirteen years from the end of the war, surely intermediate integration is possible before 2009 – ten years from war’s end.

The Edwyn Collins option – rip it up and start again – does pose some serious questions. If anything, if peaceful separation was a good idea in 1995-6, it would have been even better in 1992. But equally, if the eventual solution is to get back together and melt the borders in the EU, couldn’t we have skipped the whole horror show? Doug Muir’s last Montenegrin post caused a thread that with luck should yet reach the half century. In that thread, the point was raised that during the 1980s, Yugoslavia – the old full-cream version – actually made noises about joining the EC (as was) before being dissuaded.

A fine counterfactual question, no? What would have happened had Yugoslavia joined the EC?

The “Teuro” Dissected

Did prices really go up when the Euro arrived? The public mind, or at least the dominant media discourse, says they did. The inflation indices say they didn’t, or at least the prices that did go up were outweighed by the ones that went down. This paradox may have been solved. Erich Kirchler, of Vienna University’s Institute for Economic Psychology, tells Der Standard how.

Kirchler formed three representative groups of volunteers, and showed them prices in Schillings, then in euros. One group’s price was exaggerated by 15%, one reduced by 15%, and a control group saw correctly converted prices. All three groups were convinced the prices had risen…yes, including the second group. When he repeated the experiment with wages, rather than prices, the guinea pigs were convinced the opposite was the case.

He theorises that two well-known cognitive biases are at work – irrational perception of risk (the difference between accepting €10 now, or a 90% chance of €90 later) and the salience heuristic (unrepresentative but extreme events are over-perceived).

I was in Austria for the introduction of cash Euros, and I recall not so much that prices went up, as that the standard sums of money one withdraws from ATMs (20, 50, 100 etc) were suddenly considerably more and hence it was easy to spend more. Everyone was convinced that prices went up, though. And the German-speaking press had been hammering the word “Teuro” (roughly: “dearo”) into the meme-pool for months before the switch. (Especially, of course, Bild Zeitung and the execrable Krone..)

Forget It Jacques, It’s Clearstream

It never stops when your blog has to cover an entire continent. Hardly had the Italian left taken AFOE’s advice to get Giorgio Napolitano elected as president than the Clearstream scandal in France was getting out of hand, and nothing at all on the blog! Fortunately, at the moment the news from that quarter is coming so thick and at such a howling rate of speed that it wasn’t going to be hard to catch up. The latest despatches suggest that, firstly, it was De Villepin and Chirac, and secondly, that the victim-Nicolas Sarkozy-probably has something to hide too, as in any good film noir.

And that’s before you get on to the 300 million francs in the president’s secret Japanese bank account. Allegedly.

So what is a Clearstream and why is it a scandal? Clearstream is a bank clearing house in Luxembourg that permits banks to carry out international payments on a net basis, paying just the balance of their transactions in cash every business day. It has a bad reputation in France because of one Denis Robert, who has written three books alleging that it’s responsible for money laundering on a vast scale. But more relevantly, it’s also the supposed cause of a major political crisis.
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European stereotypes and jokes

Just a short and light post pointing you to this article on the BBC News site in which Stephen Mulvey talks about how the EU is trying to seduce its voters and why that is necessary:

Europe has been searching for years for something to inspire a new generation of citizens – a generation unimpressed by 60 years of peace and the ending of the continents’ Cold War divisions.

The piece itself is well worth a read, but what I really liked were the European jokes in the comments to the article. One example, from commenter Robert Fromow:

A prize was to be awarded for the first person to discover a horse with black and white stripes like a zebra. A German, a Frenchman, an Englishman and a Spaniard participated hoping to win the prize of 1,000,000 euros. The German decided to spend weeks in the National library researching into horses with black and white stripes. The Englishman went straight to a shop in Piccadilly which specialises in hunting gear, bought all the equipment necessary and set off for Africa in his quest for this strange creature. The Frenchman bought himself a horse and painted it black and white . The Spaniard went to the best restaurant he knew in Madrid, ordered an expensive meal for himself with a fine bottle of wine; after the meal he ordered an expensive Havana cigar and a Napoleon brandy, sat in a luxurious arm-chair in the hotel and began to consider what he would do with the 1,000,000 euros once he had found this remarkable horse with black and whte stripes. Robert Fromow, Beaconsfield UK

Go and have a laugh. And, if you know of any decent European jokes yourself, please feel free to submit them in our comments section.

The Accordion Strategy

And so it begins. Back in Italy, the Left has comprehensively disrupted the Right’s systems by folding Massimo D’Alema’s candidacy (German link) and producing a surprise candidate, the 81-year old Democratic Leftie Giorgio Napolitano. The effect has been to split the Right coalition, with ex-cause célébre Rocco Buttiglione annoucing that his neo-Christian Democrats will back Napolitano, the Northern League announcing they will oppose him, whilst Forza Italia and the ex-fascists hold their peace – perhaps for lack of a decision on what to do.

Fascinatingly, as yesterday blogged, part of the problem is managing the vote so the Democratic Left’s honour is maintained. Apparently, if it looks like Napolitano won’t make it, the Left will spoil their ballots rather than submit him to a defeat. However, the split on the Right raises another possibility: in the first three rounds of voting, a two-thirds supermajority is needed to elect a president, but if there is no agreement by then, in the fourth round only a simple majority, 504 votes, is needed. It might pay to keep the Left vote down for three rounds, then plunge for the 50%+1..

Update, 1700BST: The voting has begun. Unione candidates are apparently going to cast a blank ballot in the first round. Are they pursuing the AFOE strategy?

Berlusgone

Well, this is a little late, but we ought to put on record that the fun-lovin’ minicaudillo’s fingers were eventually pried from the Italian prime ministership. As predicted, he went out with a considerable degree of low comedy, as the Italian senate struggled to elect a speaker largely because the Berlusconi side insisted on making a fuss about whether ballots cast for the eventual winner read “Franco” or “Francesco” Marini. Eventually, though, it was done.

The Senate speakership had been the last real opportunity to cling on, as the Left has a working majority in the lower house and therefore appointed its man without trouble. The deeper play of the Senate vote, by the way, was an effort to cause trouble in the Unione’s ranks – Romano Prodi chose to put forward a Refounded Communist, Faustino Bertinotti, as speaker of the lower house, thus getting the far Left on side, and therefore needed to balance the ticket by putting someone from the ex-Christian Democrat wing of his coalition in the Senate. This being achieved, Berlusconi had no longer any excuse to hang on.

The next problem will be to elect a President. In Italy, the presidency is a nonexecutive position more like that of Germany than that of France, but the president does choose who is asked to form a government, so without a prez there can be no prime minister. Now, the simplest option would just have been to re-elect Ciampi, but he says he’s too old. This is where it gets complicated, because a super-majority is needed to elect a president.

Recalling that the Refounded Communists got the speakership of the lower house, and the ex-democristiani the speakership of the upper house (and in all probability the prime ministership). Which major faction on the left is empty-handed? That’s right, the non-refounded communists, who in fact really did refound themselves to become the Democratic Left, unlike their former comrades in the Refoundation who didn’t refound themselves and remained communist. Their leader, former PM Massimo D’Alema, was therefore put forward as a candidate for the presidency even though the chance of Berlusconi’s side supporting him was exactly nil.

In fact, the Right is threatening a campaign of mass demonstrations in the event of his election, and suggesting that Marini be the President. This, your keen and agile minds will soon perceive, is a transparent device to reopen the speakership issue and thus destabilise the Left. Alternatively, the Right proposes, the secretary of the Presidency, Gianni Letta, might be a candidate.
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Liberation Day

It’s a national holiday in Italy today, the anniversary of Liberation. So there was a suitably grand state ceremony at the Quirinal palace – the President’s residence – and, as tradition demands, a big demo for the Left to march through the streets, sing “Bella Ciao” until they get hoarse (well, hoarser, given how most people sing on demonstrations).. Only one man was missing.

It will come as no surprise to know that it was Silvio Berlusconi, who still won’t go away. Despite the highest court in the land ruling that the election results are valid, and unfavourable to him, he’s still clinging to the trappings of office. Yesterday, he produced yet another drama-queen eruption, entertaining a gathering of supporters in Trieste with a song of his own composition, threatening to paralyse the legislature, and promising that he would turn up for work at the prime minister’s office as usual on Friday.

Much as it is tempting to think he was getting back in practice for a possible return to his old career as cheesetastic hotel lounge crooner, it seems he meant it. As Existing Phil translates from La Repubblica, his remarks since the election, especially towards the President, have been alarming – according to him, there ought to be a recount because the centre-left won’t govern in the interests of the country.

It seems quite clear that he won’t go without some final indulgence in low comedy. Will he be refused access to the prime minister’s office by cops, appeal to force in some way, or perhaps flee the country? Will he sing on television? Perhaps they will use the same approach favoured by British newspaper proprietors with editors who fall out of favour, involving a black bin liner and 30 minutes to clear your desk before security guards throw you out in the street.

Shipbuilding

The European Union will soon have the world’s second-biggest amphibious warfare fleet. As well as the Royal Navy’s two LPDs (Landing Platform Dock – what the RN used to call an “assault ship”, basically a ship with a large dock in the stern, a shitload of radio gear, a heli deck, and space for several hundred soldiers and a gaggle of landing craft) Albion and Bulwark and one LHA (a helicopter carrier) Ocean, France has one LHA, and is building two more of the Mistral class, Spain has two LPDs and is building a large LHA, Portugal is building one LPD, Italy is building three LPDs, and Holland has a big (18,000 ton) LPD. That adds up to a fleet of 14 amphibious warfare ships of various kinds, not counting the UK’s four auxiliary dock transports that are a-building. By comparison, the biggest fleet is the US Navy’s, which has 10 LHAs and 12 LPDs organised in several amphibious warfare groups, usually of one LHA and two LPDs and a regiment of Marines.

Rob “Lawyers, Guns and Money” was discussing this in terms of the pre-1914 battleship race and the curious way countries with no need of battleships, indeed who could not maintain a meaningful fleet, were desperate to have just one ship. I replied that you had to look at the whole, and that he was right to think it might be about taking part in multinational operations. Just not necessarily the same ones…

In essence, these ships are the fruit of the late-90s efforts to lessen EU dependence on US assets in defence, and specifically the Nice Treaty’s goal of a EU Rapid Reaction Force similar to the NATO Allied Rapid Reaction Corps but without the Americans. One might think nothing had come of this except for a new HQ in the Brussels ‘burbs, what with the change of emphasis from the 60,000 man EURRF to small scale battle groups (essentially a way of fulfilling the letter of the plan without more money). But the ships are a-building…