The Lafontaine Factor.

In a state election (Landtagswahl) in the Saarland that was widely considered another benchmark for the approval of the German federal government’s reform efforts, particularly of the labour market deregulation programme known as “Hartz IV” – these elections are, often to a significant extent, second order national contests – the Social Democrats have been dealt the predicted crushing defeat, gaining likely just under 30% of the vote, losing about 15% compared to their 1999 result, according to early, but usually very reliable exit poll data from Forschungsgruppe Wahlen, broadcast by ZDF television (German labelled graphics here).

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Digitally Scared.

No doubt about it – revolutions are truly scary. Whether you think of the French one, the ones that freed Eastern Europe, or the digital revolution that is currently changing much of the transactional structure of our economies, and in particular the music industry. But contrary to most people, I do pity major label executives who never even stood a chance of understanding just what happened to them. After all, this is an industry where the average person?s desk had not seen a computer in 1996, as some insider once said.

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It’s Election Time in Europe

So Greece has a new government, Haider seems to be staging a comeback and next Sunday Spain is going to the polls. On this latter I will post something during the week, meantime, since I confess to knowing next to nothing at all about the significance of the Greek results, or the real state of play with Haider: anyone out there feel willing and able to give us some insight? Especially with those tricky and potentially significant Cyprus negotiations looming right in front of us.
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Public Demand and Social Prorities?

Now here’s an interesting one. (And please note that in keeping with recent Fistful tradition – as identified by Ms T – I am putting a question mark before the title). Pascal Lamy is reportedly considering a discussion paper which proposes allowing countries to impose import bans on products from other countries that do not share their national values and standards.
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I Don’t Understand Modern Conservatism

The recent biography of Mrs Thatcher by John Campbell (in particular volume one, The Grocer’s Daughter) did a good job of setting out just how much Hayek’s writings shaped Thatcher’s political outlook from her student days in Oxford onwards, in particular by paying close attention to her political speeches around 1950, when she was running for Parliament in Deptford, some of the few occasions in her early political career when she was making speeches without being bound by front bench discipline.

That part of the Right of the Conservative Party which is most keen to claim its legitimate political descent from Mrs Thatcher is most adamantly opposed to the European Union in general and British participation in the single European currency in particular.

I sometimes think that this should puzzle us more than it does…
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Diversity Within Unity

Following Scotts recent post in the mailbox we have Amitai Etzioni drawing our attention to a piece he wrote on the same topic in the International Herald Tribune. His key point seems to be that it is important to “utterly reject the multicultural notion that we should abolish societal identities to accommodate the sensibilities of the newcomers”.

I appreciate the thrust of what Amitai is saying here, but I still think he is mistaken. Identities are not static, but fluid: they are processes. Our identities as much as the cells which compose our bodies are changing everyday. We do not need to abolish anything, but we do need to accept both the fact of and the need for change. To do otherwise would seem not to be living in Europe, but rather to be living in Denial. So in this context I would prefer to go down another road, that opened up by the French Philosopher Emmanuel Levinas: one of the measures of our degree of civilisation as a community is our open-ness to the other. This would be my main point of departure from the US notion of diversity, which for all its sophistocation and its appeal, is still feel IMHO far too structured by a US, non-US dichotomy: one that we here in Europe are in danger of assimilating. The limitations of such a failure to grasp the radical difference presented by ‘otherness’ can be found, for example, in the attitude to Japan (why can’t these Japanese just set up a normal capitalist system like everyone else does), in China (why don’t the Chinese simply rebel against all this centralised communist dictatorship stuff), or – dare I say it – in Iraq (why the hell don’t these guys just accept democracy).

What Levinas suggests is that we are setting up the problem in the wrong way. The other is just ‘other’. Our challenge is to accept this. To take the marriage (or co-habitation) model: love is not consuming the partner and turning them into a figment of your own desire. Love is accepting your partner as they are, warts and all, and loving them for what they are.

Ok this is strange stuff for an economist I know, but there it is. I have pasted an extract from Amitai’s piece below. There are lots of other arguments worthy of consideration, about schools about common language, about you name it. This discussion is important, say what you feel like saying, maybe he will join in.
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The Tainted Source

Book Review:
The Tainted Source
by John Laughland

A while back, I discovered that my great-grandfather’s estate in Ukraine, Apanlee, figures in a novel which is something of a favourite among neo-Nazis and Aryan supremacists. This led me to a number of websites that I wouldn’t regularly have frequented, including the Zundelsite and Stormfront’s webpage. There I found something genuinely intriguing: A new historical justification for anti-Semitism. They point to a book written back in the 70’s by Arthur Koestler called The Thirteenth Tribe. Koestler – himself Jewish – makes a case that Eastern European Jews originated in the somewhat mysterious medieval state of Khazar, located in part of what is now Russia. He puts forward evidence that many people in this multi-religious Turkic nation converted to Judaism, and that after the disappearance of the Khazar state these people remained Jewish and formed the core of the Eastern European Jewish population.

It is an interesting idea from a historiographic perspective. Others have taken up Koestler’s case since then. I am not a scholar of Jewish history and I make no claims as to the status or veracity of the Khazar hypothesis. What I found fascinating, in a sick sort of way, was how easily radical anti-Semitic movements in the Anglo-Saxon world manage to incorporate this notion into their worldview. For them, this leads them to the conclusion that the Jews aren’t really Jews, and therefore none of the Biblical status given to Jews applies to them. Modern Jews are, in their minds, merely a Turkic tribe that converted to the false Judaism that killed Jesus, and the real Jews were expelled into Europe by the Romans, becoming the Anglo-Saxon people.

It should go without saying that I find this latter hypothesis to be, to say the least, deeply suspect. In fact, laughable would be a better adjective to describe my opinion of it. I bring this up however, because the kind of thinking that motivates this radical reinterpretation of Jewish and Germanic history also motivates a book I have just read: The Tainted Source. Unfortunately, my finances restrict my ability to purchase books for review, and I have not yet had the gumption to write to publishers to ask for a reviewer’s copy. So, the books on Europe that I read tend to come from the discount rack, where many Euroskeptics seem to end up.

Just as Aryan nationalist justify their anti-Semitism by claiming that Jews aren’t really Jewish because of (in their minds) tainted origins, Laughland’s case against Europe is built atop the idea that Europeanism’s roots are tainted.
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The Strange Case of Odysseas Tsenai

In the news today the Comission and Spain/Poland are still haggling over the price of the constitution. Meantime from another pole of Europe, a curious story of one young Albanian, and the struggle to assert his elementary rights in his new homeland: Greece. My feeling is that in our current preoccupations, our conception of Europe lies too far to the North and too far to the West. I also think, that when we come to look at the contribution and participation of immigrants in Europe, we all too often forget the adversity they face.

Background: in 1990 the Greek Alabania border opened. Over the mountains and across the sea the Albanians started arriving in Greece. Their numbers were large but never counted: their number still constitutes material for scare stories on popular Greek TV. The actual number is unknown but it might be as high as a million all over Greece (if you include the ethnic Greek Albanians ). The first arrivals came from a country whose isolation was proverbial. They were destitute, blinded by the city lights and the consumer goods, and clueless as to what they could do to earn a living.
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Immigration: Europe’s Difficult and Perplexing Road to Reform

The Economist has a couple of useful pieces this week ( here and here ) comparing the politics of immigration in the US and the UK. Meantime US economist Richard Freeman has an NBER paper where he argues we should “Stop spending so much time thinking about the WTO. Technology transfer, international migration, and financial crises have orders of magnitude more important impacts on human welfare and the state of the economy”. In other words globalisation is not after all so much about trade as about labour migration and capital movements. And just how is Europe shaping up to the challenge? Well, by all accounts, not very well. But a surprising proposal has just surfaced from a very unexpected quarter. Immigrants in Italy may (eventually) get the right to vote. Even if this is a very limited proposal, it is certainly a positive one. I am just very surprised by its source.
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Where is the European project headed?

This is a slightly revised version of an early Europundit entry that I thought deserved a second life.

What will enlargement mean?

There has been a lot of talk lately [back in May at least] about what the long-term consequences of enlargement will be, and also about the rift that the Iraq war has caused in Europe. Some people, especially Americans have been saying there’s a risk of crisis, and that the Union will become divided and dysfunctional. There’s one in my estimate strong indication that they’re wrong: Look at the Convention. Divisions have not at all been on the lines of “old” or “new” Europeans, but between small and big states and between intergovernmentalists and supranationalists. The actors have taken positions out of what they think is right, and what they perceive is in their interest. And that’s how things will continue to be.

The Common Foreign and Security Policy have been weakened, but no one has ever imagined nations would take common positions on every issue. I think the Convention also demonstrates there’s a lot of agreement, and a strong will to work together and move forward. Integration and reform has been continued at a rapidly accelerated pace. If the issues of division of power between institutions, between the nations, and the future shape of the EU aren?t causing paralysis, why would fishing disputes or whatever?

There’ll probably be friction between France and the Central Europeans, but what people have missed is that the group of eight’s letter was not the only cause of divisions, but mostly something that brought divisions to the surface. In my opinion, it’s not so much because of any particular irreconcilable differences; rather it’s part of a long-term trend. Starting about five years ago nations stopped deciding almost everything by unanimity. This has to do with the growing number of members and with the increase of decisions taken on the EU level. Indeed, it’s also because national sensitivities have decreased, and issues aren’t looked at only from the national perspective or as national horse-trading, so therefore acceptance has grown of majority voting. Also, the group of eight’s letter was a reaction to French-German hegemonic tendencies, but remember the reaction was because the French-German engine had been revived after being dead 1997-2002. Changing alliances aren’t an impediment to progress or “ever closer union.”

So what we will see is these trends continuing, and being reinforced by, enlargement and further integration. More open divisions, and factionalism, but not so much divisions between any set camps, rather division on an issue-for-issue basis, and not so much one nor two power centers, though France-Germany still will be a power center in many instances. And, I don’t think it will put any brakes on integration.

Ever Closer Still

The last six or eight years saw these trends starting, and at the same time integration has not just continued, but at an accelerating pace. These were also the years of the Commission losing power and initiative to the Council (the national governments.) Integration is not driven by ideology or by some long-term federalist strategy. Rather, it’s the product of a thousand smaller decisions. Rather, it’s driven by “historical forces”, by a situation where every further step makes sense, by a self-reinforcing logic, and because there are no significant factors acting to slow or stop integration.

By the evidence of the Convention, plus my general knowledge of the Candidate countries, I don?t see enlargement seriously working against these trends, though if the constitution will be a drastic step, it may cause a temporary breathing pause. I don’t see anything else seriously slowing the process either in the foreseeable future. (Granted, in these matters, that’s hardly longer than a decade as I see it.)

That begs the question when will it stop? I don’t think this gradualist, often not noticed by the public, process can’t possibly continue to the point where suddenly we find ourselves citizens of a federal state. At some point something’s gots to give. When and how that will happen, I have no idea. Everything about the EU’s development is so gloriously uncertain and unprecedented, which is why it’s so fascinating.

(Actually, things are already changing, integration is no longer mostly by stealth or couched in bureaucratic terms, and there is a debate about what the final goal is.)

I started out sounding like I defended the EU from its detractors and now I sound almost like a eurosceptic. I should note that one explanation for the success of “Ever closer union” is that it simply makes sense, because of increasing interdependence et cetera. But the problem is, no one bothered involving the public, or at least didn’t succeed.