NEWEUROPE 19 th Year of Publication | Number 983 | 22-28 April, 2012| € 3.50 www.neurope.eu On Tuesday 24 April, MEPs in the Industry Research and Energy Committee of the European Parliament will launch the debate on the industrial and energy aspects of shale gas. There have been various estimates regarding the existence of shale gas resources in Europe, while it has also become appar- ent that public attitudes to shale gas developments differ from one Member State to the other. On the one hand, countries such as Poland view shale gas as an opportunity for more energy diver- sity, as well as energy security - especial- ly in terms of reducing dependency on third country gas imports. On the other hand, we have the more environmentally conscious view that if we continue to burn fossil fuels at the same rate, then the EU will never achieve its goal for reducing green house gas emissions by 80-95% by 2050. The European Union, by and large, currently finds itself caught in the mid- dle of a fascinating geopolitical energy equation. From across the Atlantic, the shale gas boom in the USA has proved to have had a significant impact on the dynamics of the natural gas market and on prices. Within the next 20 years, it ismestimated that natural gas will repre- sent around 50% of the USA's energy mix - giving the US the potential, from mass importer, to become a mass exporter of natural gas. FEMEN, the woman's activist group, is on a crusade to protect women's rights throughout Ukraine, and Europe, while attempting to stop the sex industry and from vulnerable women being exploited. Their trademark? To protest topless holding signs for their cause. The founder of the organisation, Anna Hutsol, told New Europe, “a naked woman is a free woman... and is uncontrolled by the patriarchate. Her unexpected appearance especially makes the patriarchy nervous”. The sex industry is where they see the fight. Kiev, the capital of Ukraine, has become notorious as a sex tourism mecca in Europe. Many young women from rural areas in Ukraine migrate to Kiev to find a better life. But, because of the eco- nomic hardship and the difficulty of get- ting a job, many of them support them- selves by prostituting themselves. In fact, these type of women make up 90% of the prostitutes in Kiev. Prostitutes enjoy no form of civil law protection in Ukraine. The police still treat prostitutes violently, intimi- dating and blackmailing them. Sex workers remain extremely stigmatised and excluded from society, and with the upcoming UEFA Euro 2012 joint- ly-hosted by Ukraine, which is pro- ducing both positive reporting on a major football event, but also negative negative headlines linked to an antici- pated rise in prostitution and sex tourism, this problem needs to be addressed by politicians, law enforce- ment authorities, and society alike. This is the main reason why FEMEN was formed: to address this issue, to bring it to the conscience of society, and to fight it while changing people's perception. But more importantly, FEMEN want to empower women to break free of society's gender chains. Hutsol sat down with New Europe to discuss their strategy on how they will be achieving this, the hidden side of the industry, and the upcoming UEFA Euro 2012. Grassroots initiative for a right cause Shale gas production in Europe on the road to 2050 INTERVIEW ANNA HUTSOL ·Page 6 Viva la revolución E U R O P E A N B U S I N E S S EUROPE NEW In association with: S K I L L S F O R G R O W T H .Inside POVERTY UN Under-Secretary-General Rebeca Grynspan has helped focus global attention on the need to reduce inequality, build social cohesion, empower women... ·Page 14 ·Page 7 ANTI-FRAUD The European Anti-Fraud Office (OLAF) announced the recovery of €9 million in customs duties after an investigation of companies fraudulently... ·Page 3 PHARMA The European Association of Pharmaceutical Full-line Wholesalers (GIRP) has pre- sented the findings of a study on the distribution sector in six European countries... ·Page 5 KASSANDRA On May 6, the Greeks will vote for a new govern- ment. The political climate is very bad as the two, for- merly leading, political parties... ·Page 32 Anna Hutsol, founder, and other activists of the Ukrainian female rights organisation FEMEN. |EPA/SANDRO CAMPARDO The China-EU High Level People-to- People Dialogue (HPPD) Forum was organised on 18 of April by Madariaga – College of Europe Foundation, Friends of Europe, European University Association and European Youth Forum with support from the Chinese mission to the EU and their embassy in Brussels, as well as the European Commission. China-EU High Level People-to-People Dialogue ·Pages 10-11
Transcript
NEWEUROPE19th Year of Publication | Number 983 | 22-28 April, 2012| € 3.50 www.neurope.eu
On Tuesday 24 April, MEPs in theIndustry Research and EnergyCommittee of the European Parliamentwill launch the debate on the industrialand energy aspects of shale gas. There
have been various estimates regardingthe existence of shale gas resources inEurope, while it has also become appar-ent that public attitudes to shale gasdevelopments differ from one MemberState to the other. On the one hand,countries such as Poland view shale gasas an opportunity for more energy diver-sity, as well as energy security - especial-ly in terms of reducing dependency onthird country gas imports. On the otherhand, we have the more environmentallyconscious view that if we continue to
burn fossil fuels at the same rate, thenthe EU will never achieve its goal forreducing green house gas emissions by80-95% by 2050.
The European Union, by and large,currently finds itself caught in the mid-dle of a fascinating geopolitical energyequation. From across the Atlantic, theshale gas boom in the USA has provedto have had a significant impact on thedynamics of the natural gas market andon prices. Within the next 20 years, itismestimated that natural gas will repre-sent around 50% of the USA's energymix - giving the US the potential, frommass importer, to become a massexporter of natural gas.
FEMEN, the woman's activist group,is on a crusade to protect women'srights throughout Ukraine, andEurope, while attempting to stop thesex industry and from vulnerablewomen being exploited.
Their trademark? To protest toplessholding signs for their cause.
The founder of the organisation,Anna Hutsol, told New Europe, “anaked woman is a free woman... and isuncontrolled by the patriarchate. Herunexpected appearance especiallymakes the patriarchy nervous”.
The sex industry is where they see thefight. Kiev, the capital of Ukraine, hasbecome notorious as a sex tourism meccain Europe. Many young women fromrural areas in Ukraine migrate to Kiev tofind a better life. But, because of the eco-nomic hardship and the difficulty of get-ting a job, many of them support them-selves by prostituting themselves. Infact, these type of women make up 90%of the prostitutes in Kiev.
Prostitutes enjoy no form of civillaw protection in Ukraine. The policestill treat prostitutes violently, intimi-dating and blackmailing them. Sexworkers remain extremely stigmatisedand excluded from society, and withthe upcoming UEFA Euro 2012 joint-ly-hosted by Ukraine, which is pro-ducing both positive reporting on amajor football event, but also negativenegative headlines linked to an antici-pated rise in prostitution and sex
tourism, this problem needs to beaddressed by politicians, law enforce-ment authorities, and society alike.
This is the main reason whyFEMEN was formed: to address thisissue, to bring it to the conscience ofsociety, and to fight it while changingpeople's perception.
But more importantly, FEMENwant to empower women to break freeof society's gender chains.
Hutsol sat down with New Europeto discuss their strategy on how theywill be achieving this, the hidden sideof the industry, and the upcomingUEFA Euro 2012.
Grassroots initiative for a right cause
Shale gas production inEurope on the road to 2050
INTERVIEW ANNA HUTSOL
·Page 6
Viva la revolución
EUROPEAN BUSINESSEUROPENEW
In association with:
SKILLS FOR GROWTH
.Inside
POVERTYUN Under-Secretary-GeneralRebeca Grynspan has helpedfocus global attention on theneed to reduce inequality, buildsocial cohesion, empowerwomen... ·Page 14
·Page 7
ANTI-FRAUDThe European Anti-FraudOffice (OLAF) announcedthe recovery of €9 millionin customs duties after aninvestigation of companiesfraudulently... ·Page 3
PHARMAThe European Association ofPharmaceutical Full-lineWholesalers (GIRP) has pre-sented the findings of a studyon the distribution sector in sixEuropean countries... ·Page 5
KASSANDRAOn May 6, the Greeks willvote for a new govern-ment. The political climateis very bad as the two, for-merly leading, politicalparties... ·Page 32
Anna Hutsol, founder, and other activists of the Ukrainian female rights organisation FEMEN.|EPA/SANDRO CAMPARDO
The China-EU High Level People-to-People Dialogue (HPPD) Forum wasorganised on 18 of April by Madariaga– College of Europe Foundation,Friends of Europe, EuropeanUniversity Association and EuropeanYouth Forum with support from theChinese mission to the EU and theirembassy in Brussels, as well as theEuropean Commission.
China-EU High LevelPeople-to-People Dialogue
·Pages 10-11
ANALYSIS Page 2 | New Europe NEW EUROPE22-28 April, 2012
NE 15 YEARS AGOThe Americans were asked about President Karzai's achievements...|EPA
The Shooting Gallery
During the 1990s, all over Central Europe consecutive governments could not find a way to effectively solve the tran-sition problems, from the centrally planned economies of the communist era to market led structures. The obvioustarget was to create new or modernise the old productive apparatus. However those things are not at all straight for-ward and the time factor is crucial. The issue was to convince foreign investors that those newly emerging marketeconomies, were to be trusted. In the mean time working or unemployed people had grave everyday problems secur-ing for their families even the mere necessities. Those problems led at times to explosive political and social con-frontations. The usual solution to crisis was early elections. Whenever there was no bread...democracy was a goodsubstitute.
The home frontSo, is Europe under attack? The far right seem to think it is;,that Europe is under attack from a conspiratorial alliance ofleft-wing politicians and foreign extremists; a modern-dayTrojan Horse stuffed with underhand, malevolent predators. That is certainly what Anders Breivik thinks. The 33 year-old,would-be member of the Knights Templar, who last July yearkilled 77 members of the Labour youth wing on the Norwegianisland of Utoeya, believes that fortress Europe is under threatfrom this sort of combination of perfidious politicians andmarauding foreign-types. At his trial, currently ongoing inOslo, he claimed that he was ready to behead the country’s for-mer Labour prime minister, Gro Harlem Brundtland, as a grue-some warning against the apparent Islamisation of Europe. Healso claimed to be basically a nice guy.His trial, during which he is giving his evidence in a chillingmatter-of-fact manner, is taking place against the rise of right-wing extremism in Europe, partly inflamed by the economiccrisis, and the political responses to it. One such band ofextremists is the so-called counter-jihad movement, which, asNick Lowles says in these pages, contains an combination ofneo-Conservatives, Christian evangelicals, hardline racists,football hooligans, nationalists, right wing populists and evensome former leftists. It is a relatively new phenomenon, in thatits members are united in their common opposition to Islam,emotively utilising the concept of jihad for its own ends.But more and more, we see the far right infiltrating mainstreampolitics, including the European Parliament, which has founditself housing various strays from that side of the political spec-trum. In France, currently about to elect a new president, the farright has, once more, gained some exposure during campaign-ing, with Marine Le Pen, daughter of former MEP Jean-MarieLe Pen who faced Jacques Chirac in a second round run-off inthe 2002 campaign, leading the charge for the Front National.Le Pen may not get to the second round like her father, but shewill undoubtedly use this campaign as a springboard for June’slegislative elections. But the mainstream parties are taking note,too. In an attempt to keep from losing votes, president NicholasSarkozy has openly courted a more hardline, right-wing agen-da, ranging from a basic kind of conservative Euroscepticism toa more aggressively tough stance on immigration, and reform ofthe European Court of Human Rights. In the last part, he has support from the UK, which currentlyhold the presidency of the Council of Europe, has has used itsterm of office to plead for reform of the court, with theConservative government apparently upset that so many cases,including the deportation trial of Islamist cleric Abu Quatada,being referred to Strasbourg. Human rights is not a good sellright now.With all this, Europe needs to be strong against extremism, andthe European Union has a good track record in this regard.Now, the European parliament has called for the creation of ahuman rights czar, who will take a lead in shaping the Union’shuman right policy. UK MEP, Richard Howitt says that anyEU special representative for human rights must be a big-hit-ter on the international stage, someone who can commandaction in places like Egypt, Libya and Syria. He is absolutelyright, but it is sad that this initiative comes at a time when cer-tain European leaders and politicians are willing to treat thedomestic human right agenda as expendable for the sake ofpolitical expediency.
Signed Contributions express solely theviews of the writers and do not necessarily reflect the opinion of thenewspaper.NE is printed on recycled paper.
Over the past months, and more pre-cisely from the moment that the Eu-rozone drafted its Fiscal Pact, toimpose zero primary deficits to gov-ernments signing it, there is a growingnegative criticism that such a prospectwill suffocate growth.
And this criticism does not comeonly from neo-Keynesian or left wingeconomists. The main adversaries ofthe Eurozone's austerity programmesare well known liberals and marketloving commentators with vested in-terests in the ideals of market su-premacy and 'market fix it all' ideology.At the least, it is odd to see people whobelieve that whatever the state does iswrong, support the idea that theremust be more spending by alreadyover-indebted governments all overthe Western world.
The answer to this question is sim-ple.
In today's world there is no otherideology than 'more money'. Underthe guidance of people believing inthis money ideology, the United Statesare tolerating even the Chinese cyber-espionage against their industrial sec-tor hoping for more Beijing purchasesof US debt bonds. But let’s return tothe financial field.
Analysts for all seasonsIt is a fact that one after the other,
some major liberal market analysts,commentators and even academicsclamour for more growth, financedthrough more government spending.It is the second time during the lasttwenty years that such people are wor-ried about economic growth, advocat-ing for more public spending to fixthat.
The first time they did that waswhen the real estate bubble burst inthe US, leading to the the greatest fi-nancial meltdown of our times. Thenthe 'money ideologists' demanded thatthe already over- indebted Americangovernment, borrowed more andhanded it out free to banks and insur-ers to pay CDSs at face value (100%).
This kind of money helped the NewYork banks to play again their game of:'betting other people's or taxpayers'money, keep the gains and ask the gov-ernment to pay for the losses'. Theonly ideology there is to it, is 'just takethe money'. We are confronted herewith nothing less than a real end ofideologies.
The EurozoneNow that the Eurozone is under the
spell of a sovereign over-indebtednesscrisis, the same kind of people favourmore government spending, but of avery special character. They want it tobe used to recapitalise the banks,
which have already spent other peo-ple's money
(deposits) to finance an obviouslyexuberant sovereign debt, which wasproducing, until recently, a lot of bal-ance sheet profits and bonuses.
Who cares if the initial capital can-not be retrieved. Let the taxpayers payfor that...It is their deposits which areat stake. A real blackmail! A proof ofthat is that everybody was happy withthe write down of the face value of theGreek debt by 53.5% and in presentvalue terms by 70%. Politicians insistthat Greece is THE exception and thiswrite down will not be repeated forother Eurozone over-indebted coun-tries.
Few believe that. In any case the Eu-ropean Central Bank rushed to handout to all the Eurozone's banks €1 tril-lion in unheard of three year liquidityloans at 1% interest rate cost, just tocover their immediate needs in cash.After that market analysts have alreadystarted complaining that it is notenough and the 'money ideologists' to-tally agree that the favourable reper-cussions of this free trillion are alreadyfading out. So there is need formore...trillions.
Unfortunately there are very limitedmanufacturing profits going around tolubricate the machine, so the rulingclasses in the West had to turn to thefinancial spinning machine, for theirbread and butter. Manufacturing in-dustry is now an Asian affair. In anycase the issue in the West is growth,but as the financial sector means it.
Unemployment is unacceptable onlyif consumers stop paying their creditcard or mortgage instalments. In theUS the banks have gone as far as tocharge 2-3% commissions on everyconsumer purchase through debit
cards. And everybody agrees that thiswill be the name of the game fromnow on. Money for nothing...butonly for the banks. The rest of the peo-ple labouring in the real economy willhave to go on sweating their waythrough life. And this only if they havework. The unemployed are to be con-sidered as non existent entities.
No ideologyIn reality the old worries about the
devastating repercussions of unem-ployment are not any more a strongpolitical argument. Countries likeGreece and Spain despite being tornapart by unemployment rates in theregion of 22% and more than 50% foryoung people, they are advised by theEuropean Commission and the Inter-national Monetary Fund to go on ap-plying more austerity measures.Seemingly those countries have toreach general unemployment levels ofup to 30%, in order to be considered ascompetitive.
At the same time unemploymentbenefits and old age pensions shouldbe reduced to mere subsistence orlower levels. In short, at least the twothirds of the population are expectedto be out of any mainstream activitiesjust for the banks to be recapitalised.What is happening today in Greeceand Spain is the exactly the same withwhat happened in the US after the2008 credit melt down. It took trillionsof dollars from the Washington gov-ernment and the Fed to mitigate therepercussions on the real economy.Again it was the liberals who pressedfor more state borrowing and spend-ing in favour of the banks. It was re-ally sad to watch the end of allideologies, with money becoming themeasure of all things.
FINANCE
The end of ideologies
Peter Praet, Chief Economist of the European Central Bank (ECB) gestures as he speaks atthe German finance ministry 19 April, 2012. |AFP PHOTO / JOHN MACDOUGALL
The Eurozone meetsthe voters
With the Eurozone's financial firewall falling short by about€200 billion, as it was decided to set it at a round sum of€700 billion, the euro area money zone is in dire straits, be-tween the Greek and Portuguese fiscal gaps and the recap-italisation problems of most Spanish banks.The Greek elections on 6 May are predicted to turn out achaotic new Parliament of up to ten parties and Portugal'sPrime Minister is accepting that his country may need fur-ther help from its euro area peers in a Financial Times arti-cle. On top of that, Spain is pressing officiously for directcapital support to its banks from Eurozone's firewall toolthe European Financial Stability Facility (EFSF), a prospectthat Germany strongly denies. Not everything is grey however in the Eurozone. FrançoisHollande, the French socialist presidential candidate who ispredicted to win the second round of the elections and re-place Nicolas Sarkozy, had initially provoked a lot of reac-tions with his demand to change the newly drafted austereEU Fiscal Pact, has now degraded his rhetoric saying that hecan accept it if it is fitted with a growth addendum.Thank God the value of the Paris–Berlin axis is deeply em-bedded in the French political thinking and action. Proba-bly that is why European stock markets and the parity ofeuro with the dollar are not having such a bad time, despitethe Greco - Spanish- Portuguese problems. As for Ireland,Dublin's decision to hold a referendum on the Fiscal Pactdoes not seem to create major problems. For one thing the Pact itself may acquire a growth extension,making it more attractive if Hollande wins, and secondly apossible Irish 'no' will not deter the rest of Eurozone coun-tries to apply austere fiscal policies. As Italy does it very suc-cessfully. What about the short term developments?
ElectionsIt seems that elections in France and Greece have not yetattracted the interest of capital and money markets. Proba-bly the reason is not that markets are negligent, but rutherbecause the predicted outcomes in both countries are notthreatening the overall functioning of the Eurozone, nor theprospects of the financial markets.As stated above, François Hollande does not question thebasics of the Fiscal Pact. What about the Greek electionsthough and the prospect of a lot new anti Memorandumparties in the Athens Parliament? It must be noted at thispoint that the Memorandum of Understanding is the basicagreement between this country and the troika of itslenders/auditors, namely the EU-ECB-IMF. The basic itemin it is the €130 billion soft loan package for the Greek gov-ernment and the country's banks. It also contains detailsabout the obligations of Greece to apply a highly unpopu-lar austerity programme to restore its fiscal equilibrium andincrease competitiveness. The unpopular character of thisplan has shaken the country's major parties, the socialistPasok and the centre-right New Democracy, both of whomaccepted and undersigned it by backing the Papademos gov-ernment. The current political environment favours all theparties which adopt an anti-Memorandum rhetoric.In any case, opinion polls predict that even with ten partiesin Parliament, Pasok and New Democracy can still muster155-158 Parliament seats in a house of 300, making it pos-sible for them to form a coalition administration and try toapply the MoU. In short, in both the French and the Greekelections there is not a threatening possibility, and probablythat is why markets do not seem to focus on those two coun-tries. At least, not yet. So for the time being there is only thequestion of the recapitalisation of the Spanish banks thatshadows Eurozone. And the issue there is if this will burdenthe Madrid Treasury or the EFSF.
Note BookNE
ANALYSISNew Europe |Page 5NEW EUROPE
22-28 April, 2012
Amid strong demands, theSpanish treasury raised on19 April, €2.5 billion intwo- and ten- year bonds, ata very slight increase of in-terest rates cost but which isclearly disproportionate (onthe good side) with the cur-rent concerns over thecountry's alleged financialproblems.
According to the Span-ish ministry of finance, thetreasury sold €1.1bn worth
of two-year bonds matur-ing on 31 October 2014 atan interest rate of 3.463%.The auctioned amount wascovered 3.3 times by offersfrom investors, eager totake advantage of theslightly higher interestrates. The treasury raisedalso €1.4bn through a longterm bond sale maturingon 31 January 2022. In thiscase the interest rate was5.743% instead of 5.403%
compared to a similar auc-tion last January. The issuewas covered 2.4 times byinvestors' offers in relationto 2.2 times in January.
This sovereign debtplacement was consideredsuccessful, and it helped theeuro to gain some groundsagainst the American dollar.According to analysts,Spain is now seen as themost difficult case amongstthe Eurozone countries in
distress. With Greece, Por-tugal and Ireland absorbedin the effort to attain thetargets set by the pro-grammes drafted for themby the troika of the EU-ECB-IMF, and Italy beingat the safe side at least forthe time being, it seems thatonly Spain remains for 'test-ing' by 'market forces'. Inci-dentally, a marketcommentator said that,until Madrid can prove that
it can apply to the letter theprogramme it drafted for it-self containing additionaleconomies of €10bn, andalso providing for large re-duction of deficits in the 17regions of the country, in-vestors will continue to con-sider Spain as a grey area.
In any case this strongcomment is not justifiedafter today's successful bondplacement by the Madridtreasury.
ECONOMY
Good news for Madrid and the euro
The European Association of Pharmaceu-tical Full-line Wholesalers (GIRP) has pre-sented the findings of a study on thedistribution sector in six European coun-tries; France, Germany, Italy, Netherlands,Spain and United Kingdom.
The research was conducted by the Vi-enna-based Institute for PharmaeconomicResearch (IPF). The purpose of the studywas to analyse the role and functions of thepharmaceutical full-line wholesalers, as themain providers of medicinal products incomparison to alternative distribution sys-tems. According to the GIRP, the study ex-amines the significance of the full-linewholesaling model from an economic per-spective, as well as presenting the benefit forpublic health in general.
There are currently 772 pharmaceuticalfull-line wholesalers in Europe that providemedical products around 172,700 retail phar-macies, hospitals and dispensing doctors.
Furthermore, the study reports that an-nually over 703 million transactions takeplace between the full-line wholesalers andmanufacturers in the markets of the six ex-amined countries. It becomes clear from thedata that without the presence of the full-line wholesalers, the number of transactionswould increase up to 97.9 billion per year,
leading to much higher healthcare bills. In addition, in 2010 the pharmaceutical
full-line wholesalers generated a totalturnover of €136 billion in EU 27, of which67% was in the markets of the examined sixcountries. IPF also found out that exactlythis type of wholesalers cover around threequarters of all medical products sold whichassigned them a very important role in thesupply of medical products around Europe.
Despite the general positive views on thepharmaceutical full-line wholesalers’ distri-bution (99% of pharmacists in Spain and90% in France are satisfied with the distri-bution of full-line wholesalers), their marketgrowth rates are decreasing due to the in-creasing importance of alternative distribu-tion systems and the increase of direct salesin other countries.
Pharmacists expressed satisfaction alsowith the delivery time of full-line whole-salers. The average delivery time in the sixexamined countries is about 2.66 hours. Thepercentages of satisfaction among pharma-
cists in Germany is around 92%, in Francemore than 95%, in the UK 75%, theNetherlands over 86% and around 97% inSpain. The results of the study point outthat the immediate availability of medicinessaves costs by avoiding hospital admissions,while speed and frequency of the full-linewholesalers leads to the prompt delivery of
the medicines. The IPF also found out that the full-time
wholesalers contribute to continuous sup-ply of medical products and secure the cashflow of the social insurers. Additionally, ac-cording to the findings of the study, thepharmaceutical full-line wholesalers are theonly ones to assume a financial function to-wards manufacturers and pharmacies and,in this way, pre-finance almost the wholemarket for medical products (an average of€10.2 billion for a period of 41 days in themarkets of the six examined countries).
The study also presents important infor-mation on the saving of pharmacy processcosts. The results clearly show that the costdifference between a delivery from a manu-facturer and a delivery from a full-linewholesaler is €3.38. Furthermore, IPF re-veals that without pharmaceutical full-linewholesalers, keeping the same frequency ofdelivery by other operators, the process costper pharmacy would increase by€164,992.43 per year.
The director general of the European As-sociation of Pharmaceutical Full-lineWholesalers (GIRP), Monika Derecque-Pois, shared for New Europe her views onthe advantages of having full-line whole-salers aligning with the fey findings of theIPF study.
Derecque-Pois explained that throughthe services of pharmaceutical full-linewholesalers, patients are guaranteed to re-ceive the right medicine, at the right timeand in the right place. She also clarified thateven in the most distant areas, patients canreply on safe and timely manner of phar-maceuticals distribution by the full-linewholesalers. Additionally, if a particular typeof medicine is not available in the pharmacy,it could immediately be made available onlythe full-line wholesalers. In Derecque’sopinion, this is when patients ‘witness first-hand the services of pharmaceutical full-linewholesalers’.
The GIRP director general also revealed
that without pharmaceutical full-linewholesalers, the costs in pharmacies to gethold of the necessary assortment of medi-cines would increase from €6,000 to €80,000 per year per pharmacy, if only half ofthe medicines needed by pharmacies weredelivered directly from manufactures. Fur-thermore, according to the key findings ofthe IPF study and GIRP, pharmaceuticalfull-line wholesalers fulfil a crucial bufferfunction in holding enough medicines onstock in case of viral out-breaks and otheremergencies to bridge peak demands.
The existence of pharmaceutical full-linewholesalers is essential for the Europeanhealthcare sector because they ensure a safe,rapid, continuous and cost-effective supplyof medicinal products throughout the mar-kets of EU member states. They also signif-icantly contribute to the financing of theEuropean healthcare systems and have beenand remain trusted partners for manufac-tures, pharmacies and patients.
PHARMACEUTICAL
IPF study: Pharmaceutical full-line wholesalers ensuresafe, speedy and cost-effective supply of medical products
Director General of the European Association of
Pharmaceutical Full-line Wholesalers (GIRP),
Monika Derecque-Pois
Luis de Guindos Jurado,
Spanish Minister of Economy
and Competitiveness
By Stanislava Gaydazhieva
Page 6 | New Europe NEW EUROPE
ANALYSIS22-28 April, 2012
How did you first establish FEMEN andwhat are your objectives and missions?
Officially founded on 10 April 2008, wedecided to organise a women's organisation,under the name FEMEN, which originallywas a "girls party". Honestly, we did not re-ally imagine exactly what we would do inpractice, and thus, our first real action tookplace only on 1 June of the same year. Itstarted as a company of friends and friends offriends. Alas, we grew and became "friends-in-arms".
The situation in Ukraine itself drew, andstill draws, our attention to the problemswomen face, which gives rise to a strong de-sire for us to achieve real change by means ofcreating a civil organisation - a female organ-isation. This is how I came to the idea offounding a women's organisation that wouldprotect our basic rights as women – this is theessence of FEMEN.
Initially, our objectives were simply limitedto the protection of women’s' rights, but laterwe realised that being free is impossible in acountry where there is an overall lack of free-doms, no right to assemble to protest, andwhere censorship exists.
The way of life and women's destiny iscompletely different from that of a Europeancountry's way of understanding it. We thusrealised the most important thing: the prob-lem of women's rights reaches far beyond itsnarrow interpretation and it should be solvedon all levels - economic, political, interna-tional.
What is the symbolic nature of your signa-ture of going topless while protesting?
We can of course find a lot of symbolism.For us, it has this meaning: a naked woman isa free woman.
A naked woman is uncontrolled by the pa-triarchate, and her unexpected appearance es-pecially makes the patriarchy - the rulingman - nervous. It is different from the con-trolled appearance of a naked woman, let's say,on TV, a movie, or advertisment, etc., which isaccepted and liked. We understood that in thebeginning, it would be interesting for societyand the media alike, and draw their attention.
However, later, when we were in constantconflicts with the authorities and militia,which are the most fierce representatives ofthe patriarchy, we concluded that this methodwas chosen very well, and we continued to useit. It turned out there is nothing more terri-fying in such a patriarchal country than aprotesting naked woman on your territoryduring some very important events.
The sex trade in Ukraine is a big business.However, more so now, girls are entering thistrade from desperation rather than fear.From what is this trend attributed to andwhat do you think is the key to avert this from
occurring?First of all , the desperation you referred to
is one of an economic nature. A good exam-ple of this was when a woman, who became aporno actress in order to feed her family dueto the dire situation she was facing, was de-prived of her maternity rights by the author-ities. We stepped in to prevent this fromoccurring. Unfortunately, becoming a prosti-tute is still considered as a viable option for aUkrainian woman.
On the other hand, the overall corruptionfrom the very bottom up to the top of thehierarchy makes it a big business. It is not asecret that the main souteneur is the policeand respectively the corresponding depart-ment of the Ministry of Interior. It is tragicand everybody knows about it. One way orthe other, parliament representatives are alsoinvolved, for example, some own the hotelswhere these activities are knowingly takingplace. This is a big business and the highestofficials cannot turn a blind eye. That iswhy it is extremely difficult to fight thisproblem.
There are different ways to solve the prob-lem. One method used by some countries isby legislation. There is an other way, mostlyused by the northern European countries likeSweden, which seems more acceptable to me:the criminalisation of the person who engagesthe services of a prostitute. The person usingthe service shall be the "guilty" party as hisdemand generates the supply. By punishingthe “client”, these countries started to educatetheir society that buying another humanbeing is illegal, immoral and lacks dignity. Ithink this is the most important meritbrought by this law in those countries.
We would recommend such a practice forUkraine, and also all other countries, in orderto get rid of this negative phenomenon com-ing from times of slavery. Somehow human-ity wants to regulate its members willing tosteal or kill, but not when it comes to buyinganother human being for sexual services, ex-ploiting their poverty and “secondary status”as a person.
This summer, the UEFA Euro Cup willjointly be held in Ukraine. What do youthink is the best way to stop people from see-ing the Euro as an opportunity to engage theservices of sex workers?
Unfortunately, any sport event relying ongreat numbers of fans is generates growth andmigration of prostitution. There is a clear un-derstanding that great numbers of fans shouldbe entertained somehow, not only with sportbut also with women.
Even in Ukraine, some propose to legaliseprostitution for the UEFA Euro cup. Takingthis into account, FEMEN submitted a pro-posal for UEFA to set up an awareness pro-gram, “Don't Buy Women!”. This wascompletely ignored by them, which allows meto come to the conclusion that sport com-mittees and federations have tight relation-ships with the sex industry, just like they dowith beer companies, making money not onlyfrom sport, but also from sex and alcohol as aby-product of entertainment.
This is why we cannot expect improve-ment of the situation from their side. Theonly thing that we can do is to inform thesport fans that prostitution is illegal, andthat the AIDS virus among prostitutes isbetween 17-20% (and this is only a docu-mented number).
Also, attention should be drawn to the factthat this is a criminal industry, contributingto murders and other criminal acts. This iswhat concerns the sport tourists . But let'slook from the point of view of our women: itis not only prostitution but sex tourism.
I don't know what type of people will comeor how they see our country, but if they thinkit is a 'brothel country', how will they behavewith young women on the streets? You know,our girls dress quite liberally, which is usuallynot accepted in a European country, and tosome could seem as a sexual call . This willalso influence the behaviour of the sport fans.Thus, we need drive home the message: “Yes,Ukrainian girls usually dress like this, but theyare not prostitutes.”
We are already 2 years on from the estab-
lishment of the "Euro 2012 without prosti-tution" campaign, and we already have seensome positive results in changing the imageof Ukraine and of our women.
I think we are going in the right directionconcerning the campaign against prostitutionand sex tourism for the Euro 2012.
FEMEN has openly campaigned againstthe legalisation of prostitution and sextourism. Some have said that you are not aserious dialogue partner in relation to theseissues. How do you respond to this?
I don't know who could say that: from thevery beginning we were lobbying this law (in-troducing the “responsibility on the buyers ofsex services” notion). We explained our viewon this subject, introduced a draft law thatmakes changes to the Ukrainian criminalcode, and was submitted to the SupremeCouncil (the Parliament) by a representativefrom party "Our Ukraine" .
It was not easy protesting in front of theparliament in December when the tempera-ture reached 15 below zero. Nevertheless, wewere distributing leaflets among the repre-sentatives, using the slogan: "Vote for this andget a kiss!".
We did what we could to achieve adoptionof the law in the parliament, but unfortu-nately, we had to see that all these actionswere fruitless, as the draft did not even gothrough the legislative committee. Even theinitiating representative himself stopped car-ing about it. At this time, governmentalpower changed and he was actually trying tosave his own skin, joining another politicalparty. So we came to understand that thisway does not work in our country. Only rad-ical measures, protesting actions, shockingevents on this subject can make societychange its opinion, and to allow popularopinion press the parliament to vote for thelaw.
So, I have no idea who can state that we arenot a serious partner, if there were forces re-ally interested in this law, we would join themwith great pleasure and do everything toachieve that this law is passed into legislation.
Does FEMEN do anything else thanprotesting to help sexual workers or to pre-vent them from engaging this line of work,e.g. social programs?
First of all, we take young women to ourmovement and bring them up to become freewomen, free-thinking women, able to protectthemselves and others, and paying special at-tention to the problem of others.
As for workers of sex industry, we are not arehabilitation centre and we are lacking spe-cial knowledge and resources. When theycome to us, we redirect them to specialisedorganisations that can give them qualifiedpsychological support and professional advicein finding alternate paths for turning aroundtheir life.
INTERVIEW ANNA HUTSOL
FEMEN sheds light on Ukrainian sex industry'There is nothing more terrifying than a naked woman protesting on your territory'
Femen
By Stratis G. Camatsos
ANALYSIS
New Europe | Page 7NEW EUROPE
22-28 April, 2012
On Tuesday 24 April, MEPs in theIndustry Research and EnergyCommittee of the European Parliamentwill launch the debate on the industrialand energy aspects of shale gas. Therehave been various estimates regardingthe existence of shale gas resources inEurope, while it has also becomeapparent that public attitudes to shalegas developments differ from oneMember State to the other. On the onehand, countries such as Poland viewshale gas as an opportunity for moreenergy diversity, as well as energysecurity - especially in terms ofreducing dependency on third countrygas imports. On the other hand, wehave the more environmentallyconscious view that if we continue toburn fossil fuels at the same rate, thenthe EU will never achieve its goal forreducing green house gas emissions by80-95% by 2050.
The European Union, by enlarge,currently finds itself caught in themiddle of a fascinating geopoliticalenergy equation. From across theAtlantic, the shale gas boom in theUSA has proved to have had asignificant impact on the dynamicsof the natural gas market and onprices. Within the next 20 years, it isestimated that natural gas willrepresent around 50% of the USA'senergy mix - giving the US thepotential, from mass importer, tobecome a mass exporter of naturalgas. Furthermore, the shale gasrevolution in the US has causedliquefied natural gas (LNG) that wasintended for the US market to beredirected. Elsewhere, to Europe'seast: China has already madeagreements with companies and isbusy auctioning exploration rights;while between the EU and China,Russia is intently watching thedevelopments. We might not have aglobal market for gas, but more andmore we are beginning to see theemergence of various regional gasmarket clusters, and Russiarecognises that if shale gas takes offin Europe and other regions, it willaffect competition and force Russiancompanies to rethink their ownpricing strategies.
Ultimately, the extent to whichunconventional gas will be used inthe EU will be decided by themarket. As the EuropeanCommission has stated in its EnergyRoadmap 2050 Communication: gaswill be critical for the transformation
of the energy system, and it is aflexible energy source than cancomplement renewable energy. Ourexpectations though, about the paceof shale gas development in the EUshould be realistic. The massiveincrease in shale gas production inthe US has been supported by anestablished industrial environment,necessary manpower and anexperienced and well-equippedservice industry. It will take time forthe necessary service sector to build-up adequate capacity and forcompanies to acquire the necessaryequipment and experience to supporta high level of shale gas production,which means higher costs in theshort term.
Concerning the potential dangerslinked to shale gas, the USEnvironmental Protection Agency isexpected to publish a report in thenext few months, while in Europe,Member States have beenundertaking their own examinationsand studies into shale gas and theeffects of hydraulic fracturing - withthe United Kingdom most recentlygiving the green light to continueshale gas activities. Wherever shalegas development activities are takingplace, it is imperative that companiesapply the best available technologies,the best operational practices andthat we continue to improve thesetechnologies and these practices.There should be minimum safetystandards and inspections at safety-critical stages of well constructionand hydraulic fracturing. In addition,it is important that operators restorethe land used and conduct post-operational monitoring on thecompletion of their activities. On amore creative note, we must urge the
exchange of best practices andinformation between the EU and theUS; in particular, we shouldencourage the pairing of Europeanand US cities and municipalitieswhich have discovered shale gas,while ensuring the transfer ofknowledge about shale gasdevelopment from the industry tothe local communities.
Finally, the role of public opinionwill undoubtedly play a defining rolein whether shale gas is a hit or a missin Europe. In some Member Statesfor example, there is a lack of publicconsultation in the authorisationphase for drilling licenses. It isparticularly important for EU shalegas operators to engage and buildstrong relationships with localcommunities at every stage of theiroperations, given that the EU has ahigher population density than theUSA and landowners in Europe donot own underground resources andso do not benefit directly fromextraction, as in the USA. Shale gascompanies therefore need to comeup with solutions on how they canprovide local communities withincentives. Moreover, all publicauthorities in EU Member Statesshould check, and if necessary,improve regulatory frameworks inorder to ensure their adequacy forshale gas projects. The Europeanpublic need and deserve better publicinformation, and as policy-makerswe must emphasise and stress theimportance of a transparent andopen dialogue with civil society,based on scientific evidence, andwithout fear mongering.
Niki Tzavela, Member of theEuropean Parliament
A Consol Energy Horizontal Gas Drilling Rig explores the Marcellus Shale outside the town of
Waynesburg, PA on 13 April, 2012|AFP PHOTO/MLADEN ANTONOV
ENERGY
Shale gas production in Europe on the road to 2050
By Niki Tzavela
The CitizenshipSociety
We need more than ever to fight for a strong citizen-
ship society. Where people know who they are and
have a strong commitment with the values of freedom,
social justice and development. This is the reason to be-
lieve that a new standard of Democracy in a complex
world, more than a possibility, is an individual and col-
lective necessity for all of us, effective global citizens.
This is the message of the present for the future – the
difference in the present will be in the exercise of the
capacity of the individual participation as the central
contribution to the reinvention of the collective society.
The citizenship society is a process that is not deter-
mined by law. It is effectively constructed by all the ac-
tors in a free and collaborative strategic interaction. In
a certain sense, we need a new strategic order for the
world. When we speak about this special global capac-
ity of creating a new commitment between citizens to-
wards the challenge of the future, we are in fact
speaking about this commitment with a New Democ-
racy in the world. Based in new standards of Social In-
novation, this kind of New Strategic Order is above all
the confirmation that in this citizenship society the in-
dividual performance in a complex ecossystem is pos-
sible, desirable and above all necessary for the future.
In the citizenship society the freedom of participation
is the confirmation of the obligation of following the
rule of law. In this way it´s essential to learn the lessons
that more than ever emerge from a world that is trying
to rebuild its competitive advantage and to reinvent its
effective place in a complex time. In the New Global
Economy and Innovation Society, the world has a cen-
tral role to play towards a new attitude connected with
the creation of value and focus on creativity.
In a time of change,the citizenship society is a sense of
urgency. The citizenship society must confirm itself as
an “enabler actor” in a very demanding world, intro-
ducing in the society and in the economy a capital of
trust and innovation that is essential to ensure a central
leadership in the future relations with different people
in a more and more dynamic developing world. The
actors from the world should be more and more global,
capable of driving to the social matrix a unique dy-
namic of knowledge building and selling it as a mobile
asset on the global market.
The citizenship society is a new strategic challenge.
Reinventing society and giving the social actors the
opportunity of developing new challenges focused on
innovation and creativity is in a large sense giving a
central contribution to a New Global Order. The rein-
vention of society is the reinvention of its people and
institutions. An active commitment, in which the focus
in the participation and development of new compe-
tences, on a collaborative basis, must be the key of the
difference.
Francisco Jaime Quesado is the General Manager of
the Innovation and Knowledge Society in Portugal, a
public agency with the mission of coordinating the
policies for Information Society and mobilizing it
through dissemination, qualification and research ac-
tivities. It operates within the Ministry of Science,
Technology and Higher Education
New Europe content partner
By Francisco Jaime Quesado
Page 8 | New Europe NEW EUROPE
ANALYSIS22-28 April, 2012
Profile writers habitually compareAung San Suu Kyi and Nelson Man-dela for obvious reasons. Both havedisplayed immense bravery; bothhave endured many years of incarcer-ation at the behest of brutal regimes;both are articulate and photogenic.
I fear that it will soon be possibleto draw another parallel. Followinghis release, Mandela and his com-rades were persuaded to turn SouthAfrica into a dreamland for globalcorporations. The ANC proved so“generous” in allowing foreign in-vestors take their profits out of thecountry that in 2001 George Sorostold the World Economic Forum inDavos, Switzerland: “South Africa isnow in the hands of internationalcapital.” By some indicators, the poorgot poorer.
Is a similar process underway inBurma?
On 1 April, the day of Suu Kyi’selection, a 12-storey “colonial style”hotel in Phonm Penh hosted the sec-ond annual business summit betweenthe European Union and the Asso-ciation of South East Asian Nations(ASEAN). Participants, includingthe EU’s trade commissioner Karelde Gucht, were invited to a sideevent titled “Building Business inMyanmar” (as Burma is officiallyknown).
Not having previously heard of theevent’s organisers, Vriens & Partners,I spent some time examining who isbehind this outfit. Eventually, Ifound a 2009 article from the maga-zine PublicAffairsAsia, saying it is ajoint project between Hans Vriens(previously a bigwig in the commu-nications firm APCO) and NokeKiroyan, Indonesia director with themining colossus Rio Tinto. In 2008,Rio Tinto was excluded from Nor-way’s state-owned pension fund overthe environmental damage theAnglo-Australian company’s activi-ties had caused in West Papua (offi-cially part of Indonesia).
You would have to be sufferingfrom an incurable strain of naivety tothink Vriens and Kiroyan have an al-truistic motive in promoting Burma’sinvestment opportunities.
Earlier this month, Human RightsWatch stated that it would favour agradual easing of the EU’s sanctionson Burma but urged that restrictivemeasures should remain in placeagainst certain sectors of theBurmese economy for the timebeing. Mining, gems and timber arestill monopolised by the military.
Rio Tinto is the single largestshareholder in the Canadian firmIvanhoe, which struck a deal in 1994to exploit the Monya copper deposit
in Burma. Thirteen years later, Ivan-hoe supposedly withdrew from theproject, supposedly selling its Monyaassets to an independent trust regis-tered in Canada. Recently, though,WikiLeaks published a US diplo-matic cable revealing that Ivanhoe’s50% stake in Monya was in fact soldto the Burmese military junta. Theregime then re-sold the assets to aconsortium headed by Norinco, aChinese weapons firm. Tay Za, aBurmese “regime crony” (as the cabledescribes him) brokered the deal andwas expected to pocket $50 million;he was one of the Burmese rulingelite subject to EU sanctions.
Vriens & Partners has an office inRangoon (also known as Yangon),the Burmese capital. In a Februaryletter to The Financial Times, itschief representative there RomainCaillaud wrote: “Western companiesclearly have many allies amongMyanmar’s business and politicalelite as well as among the broaderpopulation, and many more will ap-pear once these companies establisha presence in the country. Havinglived and worked in Yangon for morethan four years now, I can say thatwestern companies have a positiveimage here. Their investments areexpected by many Myanmar nation-als to be made in a more responsiblemanner than that displayed by someAsian companies not blocked bysanctions, which, in the longer term,are unlikely to face political and con-sumer pressure to behave more re-sponsibly in Myanmar.”
This notion that European entre-preneurs are more ethical than theirChinese or Indian counterparts isflimsy.
When David Cameron touredsouth-east Asia, including Burma,earlier this month, he was accompa-nied by executive types from Shell,BAE Systems and BHP Billiton. It
would take a considerable degree ofchutzpah to defend Shell’s despolia-tion of the Niger Delta or the back-handers BAE gave to the Saudi royalfamily in return for weapons con-tracts on the grounds that the Chi-nese might do worse.
BHP Billiton – a merger betweenAustralian and South African re-source exploiters – has a strong his-torical connection to apartheid.Billiton’s parent company Gencorran the Kincross gold mine, wherethe worst disaster in South Africa’smining history occurred in 1986.Some 177 workers were killed in anunderground fire. Even in death,they faced discrimination: white vic-tims were named; the only details re-leased for the blacks was thenumbers who belonged to Sotho,Xhosa and other tribes.
I have no principled objection tothe suspension or step-by-step re-moval of the EU’s sanctions onBurma. Clearly, the country will needboth aid and investment if it is to un-dergo a successful transition fromdictatorship to democracy (or whatpasses for democracy nowadays).
But there should be no illusionsabout what is really happening here.Far from striving to improve the lotof Burma’s general population, a fewcorporations are eyeing Burma’s re-sources lasciviously. In February,BusinessEurope, the most powerfulcorporate group in Brussels, urgedthat the sanctions be lifted for prag-matic reasons. Its argument went likethis: everyone else is getting a slice ofBurma, so why can’t we?
“Just call me a Thatcherite,” ThaboMbeki, Mandela’s successor, quippedin 1996 as he announced plans toslash government spending and in-crease privatisation. I just hopeBurma doesn’t have a Thatcheritewaiting in the wings.
Yet.
POLITICS
The race is on for Burma’s resourcesBy David Cronin
UK Prime Minister, David Cameron (L), speaks to Burma's President Thein Sein during
their meeting at the president's official residence in Naypyidaw on 13 April. It was the first
visit in decades by a western leader to the former pariah state, as world powers consider lift-
ing sanctions. |AFP PHOTO/Hla Hla HTAY
The Spanish banks' over indebtedness, the Greek impotency tocontrol government deficits, and the Italian frictions, consti-tute the most important problems for Eurozone. And, if theyare not straightened up soon, they may just derail the entire ed-ifice in the medium term.Evagelos Venizelos, until recently the Greek Minister of Fi-nance and leader of the socialist party, Pasok, in view of the elec-tions of 6 May, said that Athens will ask for a one year extensionof the programme period - from 2014 to 2015 - in order tozero its primary (without interest payments) deficits. This state-ment is an indication that the Greek political system is nearingits limits despite the fact that the new programme imposed onthis country by the troika of EU-ECB-IMF creditors/auditorshas only been inked some weeks ago.Athens has an obvious implementation problem of what thegovernment agreed with the troika under two consecutiveMemorandums of Understanding. The second one was con-cluded last month and already stutters, while the first was de-railed in June 2011 one year after it was agreed in May 2010.In March 2012, the Troika concluded a new agreement (secondMoU) with Athens containing generous debt reductions andmore soft loans to the order of €130bn. Now, two weeks aheadof the Greek elections, the country says it might yet again missthe targets of the last MoU.There is no doubt that Greece will present the Eurozone withmore problems over the immediate and medium future. Thereason is that the results of the 6 May election are predicted toproduce a fragmented political system, with up to ten partiesprobably gaining access to Parliament. In such an environment,the two main political formations that can engage in a struc-tured dialogue with the country's lenders (EU-ECB-IMF), thesocialist Pasok and the centre-right New Democracy, may falljointly short of the 151 deputies needed to form a governmentin a house of 300. Even in the case that Pasok and ND man-age to come up with 151-155 deputies, the political and socialenvironment will remain so hostile to any additional austeritypolicies, making the implementation of the MoU to falter. Asafer option will be if Pasok and ND muster around 170 Par-liamentary seats, a possibility envisaged by pollsters.In any case Greece will continue to give a bad time to Eurozonedecision makers in Brussels, Berlin and Frankfurt. As for Paris,the highly probable win of François Hollande will compromisefor some time France's ability to effectively intervene in euroarea financial affairs.
Spanish banksComing to the Spanish banks the latest news about their badloans reaching 8.5% are quite alarming. Even more threateningis the prospect of further deterioration of this this percentage, apossibility which will greatly compromise their ability to recap-italise. The government of Mariano Rajoy, is currently pressingBrussels and Berlin to support the recapitalisation of the coun-try's banks through direct injections of capital from the Euro-pean Financial Stability Facility (EFSF). This means that theMadrid treasury will not be obliged to undertake this task, evenwith EFSF money. If the new EFSF money goes to banksthrough the Spanish government, it will be counted as sover-eign debt, further increasing the cost of new borrowing forMadrid.
ItalyLast but not least, Italy also is in the awkward position of hav-ing a strong government and a well designed programme tozero its public deficits, but still time seems to play a very im-portant role. The Mario Monti administration has already saidthat the zeroing of deficits might not be achieved in 2013 aspredicted but one year later. All in all, Eurozone is still far awaynot from a final solution but even from a concrete way to this.
Economics
Eurozone still far awayfrom a virtuous path
ANALYSIS
New Europe | Page 9NEW EUROPE22-28 April, 2012
Knight ofnothing
I’ve got a little advice this week, if that doesn’t soundtoo presumptive, but here we go: If you’re thinking ofdoing anything specific on the grounds that it will trig-ger off a ‘race war’ or something similar, just stop rightnow and forget about it and visit a doctor.There’s a reason for this; it doesn’t work and you’re anutter. From Charles Manson to bin Laden to battyBreivik the dangerously deluded believed that toppinga few people would lead to an inevitable clash betweenGods chosen few and Johnny Foreigner. I thought I should mention this, on the off chance, be-cause there’s going to be more Breiviks. Not because ofsome Holy immutable law, but because the language,symbolism and world view of the Norwegian killer isall too common, even in the European Parliament.There is a frighteningly large number of MEPs who useexactly the same imagery and even praise the killer, likeMario Borghezio, whose Lega Nord share the leader-ship of the EFD Group with Nigel Farage’s UKIP.There are, of course others.What is deeply scary, is that many of these deludeddeputies were about to get up to a million euros a yearfor forming two right of sanity pan-european politi-cal parties, thanks to the generosity of the ParliamentBureau.Just imagine watching the Breivik trial, knowing thattaxpayer’s money was being given to the defendant’sideological buddies..Anyway, the narcissistic Norwegian proceeded to borethe court rigid with a prolonged nonsensical ramble,this time limited to half an hour. I read his previousmissive, some 15,000 words of utter drivel. It was aglimpse into an utterly tedious mind, a dull, repetitiveone, but the savior of the white race wasn’t just a bore,but a lazy one. Most of the manifesto wasn’t so muchthe product of extensive research and study, but an overexcited use of copy and paste.Yet, in his head, he had become a member of theKnights Templar, seeing himself as a noble knight ofold, upholding the purest values. Of course, he had tomake his own uniform, with the assistance of e-Bay andphotoshop. Then our brave heart went off and killed alot of unarmed children who were trapped on an island,having chosen the target because it was a youth campfor ‘multiculturists’ and, going that step beyond sanity,the camp was also just like the Hitler Youth.I might be wrong in this, but I don’t recall that organi-zation fully embracing multiculturalism.However, his claim to be the world’s most boring manwas given credibility as he gave his account of his ac-tions, because the audience in the court, who were rel-atives of the deceased and survivors of the murders,couldn’t stop yawning.There’s nothing to fear in his manifestos or other ut-terances, no cause that is going to attract anyone but thelosers and wasters who want to blame others for theirfailings, indeed, the prosecutors are demolishing his be-liefs and actions, piece by piece, revealing a man madefrom lies.But we should fear those who share Breivik’s world view,those who parrot the same rubbish, the same lies. Someof them are nonentities, who may go rogue, some arehigh level politicians on the election trail. These are the ones we should be worrying about.
This week the world’s media has beenfocused on the trial of Anders BehringBreivik in Oslo. He admits to killing 77people last July but is pleading not guiltybecause he claims that he acted in self-defence to save his country from Islam.His only regret is that he did not killmore people.
To coincide with the start of this trial,the British anti-extremist group HOPEnot hate released a report into the‘Counter-Jihad’ movement – a networkof groups and individuals who did muchto inspire Breivik. It is online:www.hopenothate.org.uk/counter-jihad/
Our report profiles over 300 organisa-tions and individuals. It is the most com-prehensive study into this world to date.
The report covers the right wing polit-ical parties, who are increasingly usinganti-Muslim rhetoric to garner votes. Itexplores the websites and bloggers whopropagate scare stories about Islam. Itcovers the street gangs, like the EnglishDefence League, and the likemindedgroups they inspire around Europe. It alsoinvestigates the funders and the founda-tions which bankroll the network.
Perhaps most interestingly, it revealsthe inter-connections between the dif-ferent strands.
The ‘Counter-Jihad’ movement is aloose alliance of groups and individualswho actively campaign against Islam. Wedefine it by those groups and individualswho go well beyond just a concern overradical Islam and Islamist extremist groupand generally target Islam as a faith andMuslims as a people.
It comprises of neo-Conservatives,Christian evangelicals, hardline racists,football hooligans, nationalists, rightwing populists and some former leftists.The ‘counter-Jihad’ movement comes inall shapes and sizes but they are unitedin a common loathing of Islam.
The ‘Counter-Jihad’ movement rep-resents a wide spectrum of people andideas, some they will all share, some theywill not. But at its core is a general fearof Islam and of Muslims.
In many ways the ‘Counter-Jihad’movement represents the new face ofthe political right in Europe and NorthAmerica. Replacing the old racial na-tionalist politics of neo-Nazi and tradi-tional far right parties, with thelanguage of cultural and identity wars, itpresents itself as more mainstream andrespectable. And as we have seen incountries such as Switzerland, Nether-lands and Denmark these new right-wing populist parties, with ananti-Muslim and anti-immigration
message, can garner support from farbroader swathes of the population thanthe old-style racist parties.
But the ‘Counter-Jihad’ movement ismore than just right wing populist po-litical parties. As this report shows, thebloggers, radio hosts and journalists areincreasingly shaping and poisoning thewider political and media discourse.
The ideas of the ‘Counter-Jihad’movement are largely based around thebelief that Islam poses a serious threatto Western civilisation. Most of its ad-herents also fail to distinguish betweenthe hardline radicals, such as Al-Muha-jiroun, and the overwhelming majorityof Muslims who reject these extremistviews and just want to live quietly andin peace. Immigration and multicultur-alism are seen by many as the TrojanHorses through which Islam is gaininga foothold in the West.
Their numbers are numerically smallbut their influence is much bigger. Theiranti-Muslim rhetoric poisons the polit-ical discourse, sometimes with deadlyeffect.
Norwegian killer Anders BehringBreivik was inspired by the ‘counter-ji-hadists’. Perhaps he would have gone ona killing spree without them but theyhad an important impact on his politi-cal mindset and in his choice of targetsit is obvious that he had accepted muchof their hatred.
He too believed that Islam was athreat to Western Europe. He too be-lieved that the immigration and multi-culturalist policies of many WesternGovernments were allowing Islam to gounchallenged and to prosper. He be-lieved all this because he read what theywrote. He read it and he digested it. Inhis Manifesto he regurgitated it – some-
times word for word.Almost a quarter of his 1,500 page
Manifesto comprise of quotes fromother people - the overwhelming ma-jority from people featured in this re-port. Half of these 375 pages of quotescame from just one man, the ‘counter-jihadist’ blogger Fjordman.
The ‘Counter-Jihadists’ were so des-perate to distance themselves from hisactions. Many did so because they weregenuinely appalled by what he did. Oth-ers were worried about how it wouldimpact on them.
Many of the key players and organi-sations have never actually met. Someoperate under pseudonyms and othersdo not exist beyond the internet or ablog site. But they are all part of a move-ment - and one that largely inspiredAnders Breivik.
It manifests itself in different ways, indifferent countries, but its underlyingmessage is the same. Sometimes it is fo-cused around the single issue of Islam,but in other situations it becomes inter-woven with wider politics of immigra-tion, culture, loss and identity.
In the United States, three states havealready banned Sharia law from beingpractised. It is being debated by anothertwenty. In Switzerland, people voted fora ban on Minarets despite the fact thatthere were only four in the country. InFrance, Islam and immigration have be-come key fault lines in the Presidentialelection. The fear of Islam is playing anincreasingly important role in the polit-ical discourse in many countries.
The ‘Counter-Jihad’ movement is onethat we cannot afford to ignore.
Nick Lowles is the Director of HopeNot Hate and editor of their magazine.
EXTREMISM
The extremists who influenced BreivikReport lists hate network of over 300 organisations and individuals
Candles and flowers laid on the shoreline opposite to Utoya Island, Norway.| EPA/JOERG CARSTENSEN
By Nick Lowles
Page 10 | New Europe NEW EUROPE
CHINA-EU PEOPLE-TO-PEOPLE DIALOGUE FORUM22-28 April, 2012
State Councillor Liu and CommissionerAndroulla Vassiliou have agreed to estab-lish a new forum on higher education inorder to help identify themes of commoninterest for future joint work. The forum iscalled the EU-China Higher EducationPlatform for Cooperation and Exchange,and it is just one initiative that has beenagreed upon.
The forum will will also expand mobil-ity of students, academics and researchersbetween the EU and China and conductan EU-China “tuning” join study in order
to bring the higher education systems andinstitutions of each country closer.
Liu and Vassiliou will support exchangesof language students and teachers oflesser-spoken EU official languages alongwith supporting the organization of theChina-EU conference on multilingualismat the end of the year.
Vassiliou also touched on cultural initia-tives. The EU-China year of InterculturalDialogue will continue and allow for closercooperation in the future through a jointdeclaration, which will be signed at the
closing ceremony of the Intercultural Dia-logue this year.
“But these are not projects for govern-ments only. None of these initiatives willsucceed without the active support andparticipation of civil society,” Vassiliousaid.
It will be at the hands of the people toallow for new and deeper bonds betweenEurope and Asia. Policy makers can onlyfacilitate so much and can only promote somuch, Vassiliou said.
Before the speech, State Councillor Liu
and Vassiliou inaugurated the High-LevelPeople-To-People Dialogue in order todiscuss multiple possibilities that will allowfor a strengthening of relations betweenEurope and China.
In 2011, a third pillar of EU-China co-operation on people to people exchangeswas established. This third pillar comesalong side of the two that already exist: theHigh Level Economic and Trade Dialogueand the High Level Strategic Dialogue.
Vassiliou said the new dialogue will notweaken the existing join programs or otherforms of cooperation in the field. Rather,it will lay the basis for an on-going stew-ardship of the EU-China relationship andprovide for a forum for exchanging infor-mation and identifying common objectivesand strategies.
By enhancing the contacts between thepeople of Europe and China, the dialoguewill help broaden and deepen the knowl-edge and mutual understanding betweenthe two nations. In addition, it will help toidentify opportunities for cooperationbased on a shared interest and reciprocity.
EDUCATION
New forum on higher education established between EU and China
Chinese State Councillor Liu Yandong and European Commissioner for Education, Culture, Multilingualism and Youth, Androulla Vassiliou at the China-EU People-to-People Dialogue Forum, Brussels, 18 April.
The China-EU High Level People-to-People Dialogue(HPPD) Forum was organised on 18 of April by Madariaga –College of Europe Foundation, Friends of Europe, EuropeanUniversity Association and European Youth Forum with sup-port from the Chinese mission to the EU and their embassy inBrussels, as well as the European Commission.The HPPD Forum featured three panel sessions on culture, per-ceptions and media in EU-China relations; Being young in aglobalised world; and learning in a globalised world. Panels werefollowed by a closing plenary where State Councillor of China
Liu Yandong, one of the rare high-ranking female politicians inChinese establishment, and the European Commissioner for Ed-ucation, Culture, Youth and Multilingualism Androulla Vassilioudelivered key-note speeches. The Forum complements the HPPD launched at the latest EU-China Summit on 14 February when both the European Com-mission President José Manuel Barroso and Chinese PremierWen Jiabao highlighted the need for an increased cultural ex-change between the EU and China which should contribute tobetter understanding of two powers in a globalised world.
FOREIGN POLICY
Cultural dialogue can be vital part of foreign policy
CHINA-EU PEOPLE-TO-PEOPLE DIALOGUE FORUM
New Europe | Page 11NEW EUROPE22-28 April, 2012
As a part of the China-EU High LevelPeople-to-People Dialogue Forum(HPPD) on 18 April a panel on learningin a globalised world took place. Thepanel was moderated by the SecretaryGeneral of the European University As-sociation (EUA) Lesley Wilson and fea-tured Rector of the Tianjin University LiJiajun, Director of the EU-Asia CentreFraser Cameron, President of the NankaiUniversity Gong Ke, EUA Board mem-ber Giuseppe Silvestri, Chairman of theBoard of the Tongji University ZhouZuyi, President of the Executive Boardof the Delft University Dirk Jan VanDen Berg and representative of theErasmus Mundus Students and AlumniAssociation Zhongliang Hu.
Panellists exchanged views on the waysto improve the co-operation between thehigher education institutions and betteranswer the challenges of global innova-tive and competitive economies.
Employability was one of the most
prominent issues addressed by the edu-cation experts, with a special attentionattributed to the role of education mar-ket in meeting supply and demand fromthe labour market, and cooperation withindustries and enterprises. It was pointedout that there’s a global market of stu-dents which all universities need to takeinto account.
The prestige given to the arts and sci-ences in Europe compared to engineer-ing was underlined as one offundamental problems and it was arguedthat China is better preparing its stu-dents for future employments. Chineserepresentatives pointed out that employ-ability is not really the main preoccupa-tion of students in the country and thatas a consequence, there are cases of grad-uates failing to find jobs in their profes-sion due to the market-undesiredmajors.
Creativity in education was high-lighted as another priority, especially for
the Chinese educational system, wherethey clearly underlined desire to move“from made in China to created inChina”. However, on the question ofteaching critical and outside the boxthinking, arguably crucial for innovationand creativity, Chinese representativesfailed to provide substantial response.
Role of the lifelong learning was em-phasised as the way to promote employ-ability, but also to enhance innovationsand creativity. Professional research dur-ing the education and post-graduatestudies during employment were amongexamples put forward. In addition, therole of vocational training and re-educa-tion of redundant occupations werepointed out as potentially crucial forboth European and Chinese economies.
Mobility was another major topic ofdiscussion, with double degrees and gen-eral student exchange taking the mostprominent place in the exchange. It waspointed out that there is a huge discrep-
ancy in numbers of Chinese studentsstudying both in Europe and in the UScompared to Europeans and Americansstudying in China.
Linguistic barriers were underlined asprimary causes for the lack of reciprocity,but it was also pointed out that Euro-peans tend to have a more static ap-proach to education in general. Openingof branches of European universities inChina was warmly welcomed by all theparties, but with reservation that it couldnever compensate cultural dimension ofstudying abroad.
However, a tone was struck by Dr.Cameron who explained his perceptionof educational exchange, saying that“getting drunk in Shanghai or Pariscould never be the same as getting drunkat home”. This 'go to study in Europe forfun, go to the US for excellence' could aswell explain the disturbingly law ratio ofEuropean universities in the world's top100.
Europe should “not be so dismissive” ofChinese attempts to forward its foreignpolicy objectives by the use of ‘soft power’,the China-EU High-Level People-to-People Dialogue (HPPD) Forum, held inBrussels on 18 April, has heard.
Both China and the European Unionhave lately been using so-called ‘softpower’ tools, such as cultural diplomacy toinfluence each other’s perceptions ofthemselves in these key overseas territo-ries; regions that increasingly mean moreand more both in terms of politics andeconomics as time progresses.
For some, soft power is a legitimate andproductive extension of foreign policy, andrepresents a means of progressing one’splace on the global stage without resort-ing to old school sabre-rattling or propa-ganda of a bygone era. For others, itrepresents exactly this kind of behaviour,just with better public relations.
As China is becoming an increasinglyinfluential global force, comparable toEurope in its global outreach, some Euro-peans fear the power of China in this re-gard, that the influence only goes one way.
Christopher Dent, professor of EastAsia International Political Economy atthe University of Leeds in the UK, saysthis is largely down to media misconcep-tions. Speaking at the forum, he said thatattention-grabbing headlines, that speakof, for example, ‘China’s aggressive thirstfor oil’ bring back memories of the coldwar and foster fear and distrust of Chinaa s a global partner. “In a way”, says Dent,“we have to look on this as a function ofglobal capitalism”. It is not necessarilysomething to be feared, instead the natu-ral progression of a globalised world; soft
power, in this case, cultural dialogue andexchanges, can give people the opportu-nity to work together.
Unfortunately, says Dent, despite thepotential good of cultural exchanges, thereremains “a lot on anxiety and apprehen-sion in the western media” about Chinesecultural expansion, despite the fact that
dialogue can bring about positive results,such as in the areas of global security andcombatting climate change.
But, according to Catherine Vuylsteke,Foreign news Editor of Belgian newspa-per, De Morgen, “everything is political”,including the tactics of soft power, whichallows a country to “project an image of
itself that it likes”. However, despite this sceptical view
that overall “I am not sure that softpower is the best method of working to-gether”, this “doesn't mean we should beso dismissive” of Chinese attempts toopen up a cultural dialogue with Europe,she says.
EDUCATION
Education standards need to fit labour market demand
Russian state oil company Rosneft signed a
deal with US oil major ExxonMobil that of-
fers expanded access to Russia’s offshore Arc-
tic fields.
Russian president-elect Vladimir Putin
oversaw the agreement, the broad outlines of
which were agreed to last August, by hosting
the signing ceremony at his Novo-Ogaryovo
residence near Moscow.
“Today Rosneft and Exxon Mobil enter
offshore projects of unprecedented scale,”
Rosneft’s President Eduard Y. Khudainatov
said in the ceremony with Exxon Chief Exec-
utive Rex Tillerson. “In so doing, we lay the
foundation for a long-term growth of the
Russian oil and gas industry.”
"Now we take our relationship to a new di-
mension," Tillerson told Putin. "We become
global strategic partners."
Exxon and Rosneft will form joint ventures
in the frigid Kara Sea north of Siberia and the
Black Sea, with initial exploration plans.
The Exxon-Rosneft deal will open up ex-
ploration in the Arctic and boost foreign in-
vestment in Russia, Moscow-based oil & gas
analyst at Alfa Bank Maria Yegikyan told
New Europe on 19 April.
“[Russia’s Deputy Prime Minister Igor]
Sechin estimated total investment into the
Arctic at around $500bn. We do not know
what are going to be the total investments
from Exxon and Rosneft but we know that
from the preliminary exploration stage Exxon
is going to invest $3.2bn into the exploration
of the assets in the Black and Kara seas so, of
course, this should boost investment activity
into Russian exploration and shelf projects ex-
ploration,” Yegikyan said.
Meanwhile, a Rosneft subsidiary will ac-
quire minority shares in two shale and non-
porous rock oil fields in West Texas and
western Canada and more than a dozen oil
and gas fields in the Gulf of Mexico oper-
ated by ExxonMobil. “But that is not set in
stone yet. There have only been proposals
for Rosneft to acquire 30% stakes in several
of Exxon’s assets in Mexico, Texas and
Canada. But the final decision on whether
Rosneft is going to actually participate or
not is not made yet and we do not know
what the evaluation of those stakes will be,”
Yegikyan said.
The deal is significant for Rosneft, which
will gain some access to modern drilling tech-
niques developed in American shale fields
over the last decade.
Putin has spearheaded Russia’s efforts to
develop its Arctic energy reserves. “Basically
there have been talks for a while about the fact
that Russia has a significant reserve base in
the Arctic and shelf projects and Rosneft
would not be able to actually develop them on
its own due to lack of expertise in projects of
such complexity and Exxon in return has the
experience to do so,” Yegikyan told New Eu-
rope.
Exxon replaced BP in the Kara Sea project
with Rosneft last year. Khudainatov told re-
porters he had also written to four Russian oil
companies - LUKoil , TNK-BP , Bashneft
and Surgutneftegas - inviting them to partic-
ipate in offshore projects.
ENERGY & CLIMATE
Page 12 |New Europe NEW EUROPE22-28 April, 2012
Russia's Prime Minister Vladimir Putin, right, speaks with ExxonMobil CEO and Chairman Rex Tillerson during
a ceremony of signing of the Rosneft-ExxonMobil Strategic Cooperation Agreement in the Black Sea resort of
Sochi, Russia, 30 August 2011. ExxonMobil and Rosneft wrapped up a landmark alliance on 16 April 2012 that of-
Worried by high gas prices, US PresidentBarack Obama introduced a new round ofmeasures that he said would make it easier forthe administration to crack down on oil mar-ket manipulation amid persistently high gasprices.
“We still need to work extra hard to protectconsumers from factors that should not affectthe price of a barrel of oil, and that includesdoing everything we can to ensure that an irre-sponsible few aren't able to hurt consumers byillegally manipulating or rigging the energymarkets for their own gain,” Obama said.
“Today we're announcing new steps tostrengthen oversight of energy markets,”Obama said. Most of the new measures wouldrequire congressional approval, including a re-quest for more “cops on the beat” for the Com-modity Futures Trading Commission, as well
as more money to update the commission’stechnology.
Obama compared the expanding energymarket to professional football, which addsmore referees if it adds more teams. “Imagine ifthe NFL quadrupled the number of teams butdidn't increase the number of refs. You'd endup having havoc on the field and it would di-minish the game. It wouldn't be fair.”
The president also asked Congress to in-crease the maximum penalties for market ma-nipulators and raise the amount of moneyrequired for oil futures traders to back up theirtrades. “Congress should do all of this rightaway,” Obama said.
On 20 April, Brent North Sea crude for Junewas at $118.00 per barrel. New York's maincontract, West Texas Intermediate (WTI)crude for delivery in June was at $102.72.
ENERGY|OIL PRICES
Obama urges crackdown on oil price manipulation
On 16 April, the European Commission an-nounced a new multi-million euro fund to helpcountries develop sustainable energy provisions.The plan seeks to extend sustainable energyservices to 500m people in poverty-strickennations by 2030.Called the EU Technical Assistance Facility,Barroso said it would be made available to
countries that "opt in" to the UN initiative andcommit to the energy market reforms it callsfor. "We will draw on the best EU experts inthe field and promote the development andgrowth of expertise in developing countriesthemselves," he said, noting the Commissionis spending $788m annually in supporting en-ergy initiatives of various kinds.
On 17 April, BP announced the launchof a new phase in Azerbaijan’s ShahDeniz gas field project, saying it will keepit on target to start exporting gas “aroundthe end of 2017”. The consortium devel-oping Shah Deniz will go ahead with theFront End Engineering and Design
(FEED) phase of the estimated $25bnstage II project, BP said. The decision wasannounced at a meeting between AzeriPresident Ilham Aliyev and BP chief ex-ecutive Bob Dudley in the Azeri capitalof Baku. "We are pleased to announce thismajor step forward," said Rashid Javan-
shir, BP's President for Azerbaijan, Geor-gia and Turkey. "Engineering studies,commercial agreements and the supportof the state of Azerbaijan and other gov-ernments give the Shah Deniz consor-tium the confidence to embark upon thisFEED phase," he added.
ENERGY|GAS
BP, Azerbaijan approve next phase of Shah Deniz
On 15 April, the first string of the Russian-German NordStream natural gas pipeline was shut down and will remainoff line until the end of April, the Nord Stream consortiumsaid. "The two-week process of adapting, testing and certi-fying the integrated control system for the twin pipelinesrequires the valves at both Russian and German landfall to
be shut, gas from the Portovaya compressor station to bestopped and the flow of gas through the pipeline to be tem-porarily halted," the consortium said in a statement. Theconsortium noted that the pipeline has transported 3.5bncubic metres of gas from Russia to Germany since becom-ing operational in November last year.
ENERGY|GAS PIPELINE
Nord Stream closed for adapting integrated system
On 17 April, European CommissionPresident Jose Manuel Barroso said hewas "seriously disappointed" by Ar-gentina's decision to take over the Ar-gentine unit of oil major Repsol andwarned Buenos Aires that "this createsan uncertainty which is not helpful toour economic relations and to the econ-omy as a whole". "We emphasise theneed for mutually agreed solutionswhich do not harm the business envi-ronment," Barroso told reporters. "ThusI am seriously disappointed about yes-terday's (16 April) announcement. Weexpect Argentinean authorities to up-hold their international commitmentsand obligations, in particular those re-sulting from a bilateral agreement on theprotection on investments in Spain."
Argentinean President Cristina Fer-nandez de Kirchner has unveiled plansto seize control of the country's biggestoil company YPF, owned by Spain'sRepsol, provoking an angry responsefrom Madrid.
The announcement on 16 April drewswift warnings from key trade partners,who said that relations with BuenosAires would be damaged by the move.
YPF has been under intense pressurefrom Kirchner's centre-left governmentto boost production, and its share pricehas plunged due to months of specula-tion about a state takeover.
Kirchner said the government wouldask Argentina's senate, where her partycontrols a majority, to approve a bill toexpropriate a controlling 51% stake inthe company by seizing shares held ex-clusively by Repsol, saying energy was a"vital resource".
The UK has also thrown its supportbehind Spain. UK Foreign Secretary
William Hague said the move to re-nationalise 51% of Repsol’s 57% of YPF“is the latest in a series of trade and in-vestment related actions taken by Ar-gentina which are damaging to businessinterests, and will undermine Ar-gentina’s economy”. “We will work withSpain and our EU partners to ensure theArgentine authorities uphold their in-ternational commitments.”
Repsol President Antonio Brufau toldreporters that the company demandsjust compensation and will fight Fer-nandez' plan, adding that she "carriedout an unlawful act and made unlawfulcharges after a campaign aimed atknocking down YPF shares and allow-ing expropriation at a bargain price". Hesaid YPF was singled out while otherforeign energy companies with Ar-gentina operations were not targeted.
The decision by Fernandez "is only a
way of covering up the social and eco-nomic crisis Argentina is facing" amidhigh inflation and energy prices, Brufauadded.
YPF has 42% of Repsol's global re-serves, estimated at 2.1bn barrels ofcrude.
Brufau told reporters that YPF isworth $18.3bn, and he valued Repsol's57% stake in the unit at $10.5bn. Ar-gentina wants to take over Repsol sharesrepresenting 51% of YPF, meaningRepsol would be left with 6% and share-holders including a rich Argentine fam-ily would not be affected.
In a sign of the rising tensions be-tween Spain and Argentina over the na-tionalisation plan, the Spanish foreignministry summoned Argentina's am-bassador to Madrid for the second timein five days to mount another formalprotest.
A tanker truck waits to download gasoline at the headquarters of the Argentine Automobile Club in
Buenos Aires, 17 April 2012. A day earlier, Argentine President Cristina Fernandez de Kirchner declared
YPF oil company, controlled by Spain's Repsol, is subject to expropriation. |AFP PHOTO/DANIEL GARCIA
ENERGY|OIL
EU slams Argentina’s take over of Repsol unit
Don't give upyour diesel carjust yet
STRASBOURG – Most MEPs decided against a plan
to strip diesel of its tax advantage over petrol in a vote
in Strasbourg on 19 April on a proposal to reform en-
ergy taxation. The European Commission is proposing
that the advantage diesel enjoys in most countries
should be phased out, saying that fuels should be taxed
reflecting their energy content and polluting potential.
But many EU Member States oppose the plan, as did
many MEPs in committee.
The European Parliament's non-binding position -
adopted with 374 votes in favour, 217 against and 73
abstentions - provides recommendations to the Coun-
cil of Ministers, which must decide unanimously for any
changes to take effect.
The lead MEP on the proposal, Astrid Lulling from
Luxembourg (EPP), backed the proposal's aim of bat-
tling climate change but opposed “tax neutrality” on the
grounds that it would lead to a diesel price hike.
Earlier, French MEP Daniel Cohn-Bendit, co-chair of
the Greens Group, told New Europe on 18 April in
Strasbourg that stripping diesel of its tax advantage
would not put a further burden on France’s economy,
which is an issue in the presidential elections this week-
end. “This tax will take time so you can’t compare with
the economy now. We have a problem with the econ-
omy and I don’t think this tax is a burden on the econ-
omy. It’s a logical necessity for the ecological
transformation,” Cohn-Bendit said, speaking in Eng-
lish. “If you take this evolution as a starting point for
planning new cars with less consumption, it’s a push for
the economy,” he added.
Green’s co-chair Rebecca Harms from Germany told
New Europe on 18 April that energy has to have an ad-
equate price on all levels and in all forms wherever it is
consumed. “The taxation for diesel, for example, is not
fair so far because considering climate protection it’s
dirty and considering the energy content it’s also weak,”
Harms said, calling for adjusting the taxation between
petrol and diesel. “As a Green I’m convinced that by
good energy taxation we will trigger innovations, we will
trigger climate-friendly technologies, for example, cars
which consume less fuel and this will not only help the
climate but will also trigger good economic develop-
ment because if you have to go for new technologies,
you always create innovation.” One of the Greens’ ideas
is to achieve better situation for environment and for
climate by adjusting the tax burdens, she said.
On 18 April, EU Tax Commissioner Algirdas Semeta
told the plenary debate that, regarding the amendments,
the Commission would insist on keeping the proportion-
ality principle leading to equal taxation of petrol and
diesel. “There is no reason to subsidise the use of diesel
over the use of petrol. The impact on demand for diesel
cars should not be overestimated. The efficiency of the
conversion technology in current diesel cars is higher than
for petrol cars and it would still remain attractive to pur-
chase diesel cars,” Semeta said. “Moreover, long transi-
tional periods should allow time to adjust. It is neither
today’s car nor the car of tomorrow which is at stake. It is
EU WORLDPage 14 |New Europe NEW EUROPE22-28 April, 2012
As the 4th edition of the MilleniumDocumentary Film Festival commencedon 17 April, the UN Under-Secretary-General and UNDP AssociateAdministrator Rebeca Grynspan who is astrong advocate for human development,and has helped focus global attention onthe need to reduce inequality, build socialcohesion, empower women, and achievethe world’s Millennium DevelopmentGoals, attended the opening ceremony toshow her support for the festival and thedocumentary as a communicative mediumto spread the message of the Goals of end-ing poverty and social exclusion, as well asother real issues facing people.
New Europe caught up with her to discussthese topics.
Ending poverty by 2015 is one of the UNMillennium Development Goals but still itaffect about 80 million in Europe and grow-ing everyday. What are the steps to achievethis in such times of economic hardship?
First of all, let’s celebrate that according tothe last numbers of the World Bank, the goalof having extreme poverty since 1990 hasbeen achieved. So, there are today 50% lesspeople in extreme poverty than in 1990.
This is something important to celebratebecause a lot of effort has gone into it. But,there is another half that is still waiting.
On the other hand, many of the peoplethat have gone out of extreme poverty arestill poor.
Therefore, poverty overall has gone downless than extreme poverty. So, there is still alot to be done to separate these people fromthe poverty lines so they can be moreresilient to economic downturns.
Obviously, the financial crisis has affectedthe developed and developing countriesalike.
This is why, we think, that this is themoment not to weaken the support but tostrengthen it to achieve the goals.
Much has been learnt of what works andwhat doesn’t.
We know that investing in girls will accel-erate progress. Now that we have been ableto get girls out of grammar school, we needto get them to secondary school; we havebeen able to get women empowered, butnow we need to get them to economicempowerment.
My overall message is, we have to scale upour efforts, not to downscale them now toachieve the goals.
Do you feel that this year’s MilleniumFestival successfully depicts the issues of
social exclusion, poverty and femaleempowerment?
Well, I think that they help a lot.The films tell stories of real people through-out the world and how they think and whatthe feel.
You cannot really mobilise people in num-bers, you have to mobilise people withhuman stories: they have to understand.
We have been privileged in our lives as wehave not suffered poverty or droughts orfloods which wipe away our whole liveli-hood.
When we know that our fellow citizenshave suffered that and we can help withviable solutions, I believe that we cannot staystill and not do anything about it.
What makes a film a documentary andhow is it important to achieving the millen-nium development goals?
A documentary is more how it is in real-ity and not how I imagine it. It needs thecreativity also because a documentary canportray the facts, but when it is mixed withother elements, it portrays a message aboutreality.
I believe that an image is stronger thananything else we can use. I have been adevelopment practitioner all my professionallife. I have learnt that when I speak and tryto explain something, I am not even half aseffective as art in a film can be.
So, I just accept, in humble way, that wehave a role to play, but the role of communi-cating and explaining and mobilising the cit-izens of the world, it is much better achievedby the art community than by us.
Rebeca Grynspan speaks about human development at conference | United Nations
By Stratis G. Camatsos
INTERVIEW| REBECA GRYNSPAN
Ending poverty by 2015
CULTURE & LIFESTYLENew Europe | Page 15
NEW EUROPE 22-28 April, 2012
With over fortyyears of existence,Video Art hasearned its place
in Art History, museums, privatecollections and specialized gal-leries. Originally linked to theimprovement of television tech-nology in the 60’s, or even to theinvention of the videotaperecorder in the 70’s, video pro-duction also benefited from the
launching of the first affordableportable camera, the Portapaksystem (a revolutionary toolwhich even offered instant play-back) by Sony in 1967. At a timewhen television started dominat-ing the cultural scene, Avant-garde experimental filmmakers,performance and conceptualartists and photographers willingto work with this new medium,were offered huge creative op-
portunities. Initially used to record per-
formance art sequences, or act-ing, poetry, dance, music andpainting presentations to a liveaudience, video production,quickly served as a platform tocriticize and question the so-ciopolitical power of mass mediawhile mocking motion pictureconventions by undermining theviewer’s expectations.
Art historians, museum direc-tors and curators around theworld, recognized the importanceof video as the art form of the fu-ture and began building collec-tions from the 70’s onwards, whenreels were still cheap and easy tofind. The variety of formats, how-ever, makes the preservation of theworks challenging as many ofthem no longer match existingtechnologies.
In Europe, The NetherlandsMedia Art Institute in Amster-dam, the Brandhorst Museumand famous Goetz Collection inMunich, the Ludwig Museum inCologne and the Centre pourl’image contemporaine in Saint-Gervais Geneva are all well-known for their extensive videoart collections.
Furthermore, ‘Video Vintage1963-1983’, an exhibitionpresently displayed at the CentrePompidou’s Musée Nationald’Art Moderne in Paris (untilthe 7th May, 2012), traces backthe first video experiments bypresenting seventy-two worksamong the one-thousand-four-hundred tapes included in themuseum’s collection. Visitors canwatch ‘Button Happening’
(1965) the first video preservedto our day, or the manifesto‘Global Groove’ (1973), pro-duced by famous Korean-bornFluxus artist Nam June Paik,considered by many to be the fa-ther of video.
Additional works includecommissions from the ORTF,national French television, to di-rectors like Jean-Luc Goddardand from the BBC to play-wrights like Samuel Beckett.The exhibition also aims to pres-ent various ‘self-filmed’ perform-ances by artists like MarinaAbramovic and Ulay, Mona Ha-toum, Gina Pane, Nil Yalter andSanja Ivekovic among others.
Often with a Fine art back-ground, a different category of
video artists, (European JosephBeuys, Daniel Buren, Valie Export,Imi Knöebel, Brazilian Anna BellaGeiger or Americans Dennis Op-penheim and Peter Campus) usevideo more conceptually as a tool toattack issues such as consumerism,machismo, politics and the shapingof society or architecture and theuse of space.
Although video is a prevalentmedium today, its presence is stillmuch rarer in museums than inbiennales. This is partly due tothe ambiguous character of art-works that can be easily and infi-nitely reproduced, thus raisingthe issue of their aesthetic andcommercial value.
BRUSSELS AGENDA Page 16 | New Europe | NEW EUROPE22-28 April, 2012
BRUSSELS AGENDA
New Europe | Page 17NEW EUROPE 22-28 April, 2012Welcome to NE’s Brussels Agenda. All you
need to know for a complete professionaland personal life in Brussels.
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Ticket sale: - At BIP, 2-4 rue Royale (Place Royale) 1000 BruxellesTuesday to Saturday, from 12.30 pm to 5.30 pm- Online on www.arsene50.beTuesday to Saturday, from 2 pm to 5.30 pm
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RESTO BITES
20:00, 27 April, Ancienne Belgique
In 1994 Courtney Taylor-Taylor andPeter Holmstrom formed the DandyWarhols in Portland, Oregon, for noother reason, Taylor-Taylor says, thanthey “needed music to drink to.” The group performed in bars all overPortland, gaining local fame for the nudi-ty that pervaded their shows. After theirfirst performance in 1994, the group wassigned by Tim/Kerr Records. In 1995 the group recorded their debutalbum, Dandys Rule OK. The record'sstyle combined garage rock and shoegazemusic and led to a second studio albumin1997, The Dandy Warhols Come Down. Their third album, released in 2000, fea-
tured the group's most popular song,“Bohemian Like You,” which would befeatured in commercials. Several of theirother songs since then have been featuredin popular shows like Veronica Mars. Five more albums would come through-out the 2000s. Their latest and ninthalbum, a greatest hits collection entitledThe Capitol Years 1995-2007, came outin 2010. They plan to release an album ofnew material soon. Since their formation in 1994, the grouphas gone through stylistic changes anddifferent sounds. Their tone has becamemore psychedelic but has become morematured, with pop influences. The group will perform at AncienneBelgique on 27 April at 20:00.
Who says you have to travel to Roma or Milano forauthentic pizza italiano? Take a trip to the St. Bonifacearea and grab a pie from Mano a Mano, a cozy restaurantnestled off Chausse de Ixelles by a large cathedral,offering quite the view as you nosh on fresh mozzarellaand basil. The area has become a popular lunch spot foryoung business men and women and Brussels’ youngercrowd so snag a table on the wooden terrace when theweather is cooperating and eat like you’re a young 20-something. The menu has an extensive pizza selection, offeringtraditional mashups such as the margherita or fourcheese options, along with classic pasta dishes such aspenne with pesto and noodles tossed in and drizzled witholive oil and spices that make mouths water. The pricesare reasonable, with tabs coming in at around 15 euro, 20if you add a piece of sweet Italy for dessert or a glass ofsweet vino. With such a cozy atmosphere, reservations are advised,especially for weekend nights. The restaurant is openseven days a week, though not continuously. Monday-Friday it’s open from 12-2 pm and 7-11pm; Saturday andSunday 7-11 pm.
TAKE A LOOKJeanneken Pis Seeing Manneken Pis is a rite of passage when visiting Brussels,but the little tyke’s gender counterpart, Jeanneken Pis, doesn’t getquite as much fame and notoriety as the little boy peeing whoseface you can find on random trinkets from magnets to wine stop-pers. But she is there and deserves a viewing. The statue was made in 1985, erected in 1987 and has beendelighting passerby sense. The half-metre-high statue made ofblueish limestone shows a little girl with her hair in pigtailssquatting and urinating, looking quite content while doing so. Itis not as well known as its male counterpart, perhaps because ofits relative modernity or because of its hidden location near theclosed end of the street. She is located on the east side of theImpasse de la Fidelite/Getrouwheidsang (Faith Alley), which is anarrow street with a dead end about 100 metres long leadingnorth off the restaurant-crawling Rue des Bouchers.
Military Challenges of the "Third Pillar"ApproachCollege of Europe Foundation, Avenue de laJoyeuse Entree 14, box 2Indeed, NATO’s activities over Libya in pur-suit of UN Resolution 1973 have again raisedquestions over the timeliness, legitimacy, pro-portionality and effectiveness of militaryaction. Such issues have now been made moreacute given the emphasis on the operational-isation of the RtoP principle, which hasstrong support from regional actors such asthe European Union (EU). There is a need toanalyse the consistency, legitimacy and effec-tiveness of civilian and military tools underRtoP, especially in terms of how they impacton and complement preventive and re-build-ing strategies.To weigh in on such issues the Madariaga-College of Europe Foundation, GlobalAction to Prevent War, the GlobalGovernance Institute, the Bonn InternationalCentre for Conversion, the InternationalCoalition for the Responsibility to Protectand the Center for the Study of Genocide atRutgers University plan to organise a one-dayworkshop in Brussels. The workshop willbring together policy-makers from the EU,
UN and regional organisations and scholarsto debate the civilian and military challengesposed by “pillar three” of the RtoP principle.
3-5 May – The European Union inInternational Affairs IIIInstitute for European Studies at VrijeUniversiteit Brussel, Pleinlaan 2 The multidisciplinary EUIA Conf erence willprovide a forum for discussion and exchangeof ideas among the growing number of schol-ars that take an interest in understanding therole of the EU in the world in diverse policyfields (including environment, energy, infor-mation society, freedom and security, finance,security and defence etc). This includes thedebate concerning the EU as an internation-al actor and the dynamic interplay betweenthe EU, its member states, other regions andexternal partners in a multipolar/multilateralworld. It may include topical issues such asthe European response to the upheavals inthe broader Middle East, European foreignpolicy post-Lisbon, the external effects of theEurozone crisis, the EU’s role in global gov-ernance and the international implications ofthe return of nationalism as a political forceon the European continent. Similarly, atten-tion to the external implications of internalEU developments such as the push towards a(Digital) Single Market and creation of thespace of freedom and security are welcomed.
23 April- Regional and Local InitiativesPromoting Active Aging and SolidairtyBetween Generations09:30 – 14:00 Committee of the Regions,Room VM 1, Rue Van Maerlant 2,BrusselsTopics to be discussed include the “Arch ofLife” the new approach for intergenera-tional dialogue; case Studies from 3European regions: Liguria Region, Osloregion and Flanders region; and how tobuild a fruitful interaction at EuropeanLevel.
24 April – Europe in Crisis: The Challengeof Winning Citizens' Trust10:00 – 12:30, European ParliamentCitizens in many Member States of theEU are not only losing trust in theirnational governments, but are also increas-ingly skeptical of the EU's ability to findsolutions to the worst crisis in its history.Speakers include: Jose Manuel Barroso,President of the European Commission;Martin Schulz, President of the EuropeanParliament; Helle Thorning-Schmidt,Prime Minister of Denmark, President ofthe Council of the EU.
24 April – What Does It Really Mean forthe Balkans to be in the EU?18:00, Brussels Press Club Europe, 95 RueFroissart
Jonas Jonsson, Head of the WesternBalkans Division at the EEAS and InesSabalic, Croatian Journalist, discuss; Whatdoes the low turnout in Croatia's referen-dum on accession reveal? Is the currenteconomic crisis threatening the popularityof the European project? Do the Balkanslook down on the enlargement?
25 April – In a Biofool's Paradise? Whatare the Effects of the EU's Biofuel Policieson Developing Countries?12:30-15:00 Edelman, Avenue Marnix 22,BrusselsUnder the EU's Renewable EnergyDirective, member states are committed toincreasing the amount of biofuels that theyuse in their transport fuels. But nearly 90%of the biofuels used to meet the transporttargets will be industrial biofuels - madefrom food crops. But are the full impacts ofthe EU's policies being measured?Topics to be discussed include: are EU bio-fuels policies driving up global food pricesand endangering the food security of poorcommunities?How is land grabbing forbiofuels affecting poor communitiesaround the world? Are the EU's energypolicies coherent with its developmentgoals?
26 April - Operationalising theResponsibility to Protect: The Civilian and
For more events see www.agenda.be25 April – Of Monsters and Men20:00, Ancienne Belgique Of Monsters and Men (preferrednotation) is the band encompassingNanna Bryndis Hilmarsdottir. FromIceland and extremely exciting, cer-tainly for fans of Arcade Fire,Mumford & Sons, School Is Cool...that exuberant blown-up sound.'Little Talks' is the first, immediatelymuch talked-about, single with ahugely playful clip. But 'OMaM' alsoavidly venture into songs about surviv-ing in the wilderness, fighting withbears, walruses with a house on theirback...? ?More of that fantastic andappealingly mad music on the OfMonsters and Men debut: 'My HeadIs An Animal', here too in spring 2012via Universal. And, there you go, live inthe ABClub on Wednesday 25 April!
28 April – Magic System20:00, Forrest NationalWith 13 Gold records, two platinumalbums and a Golden Ring, MagicSystem wanted to please his audienceand leave for their first "tour ofZenith" throughout France, but also inBrussels!"Move move", "Cho C, it burns", "Noteven tired," "Honey Coco" etc. ... Whohas not danced at least once on one ofthese songs? Only four weeks after itsrelease, the album "ANY KALE" hasalready been certified gold record withover 70,000 copies sold.
This album is mostly disk MagicSystem that allows to express them-selves fully, finally and completely, tobe both a reflection of a young andurban Africa and talking to the world.Buy your tickets for an exotic trip, andcome live the magic with us ...
30 April – Alabama Shakes20:00 Ancienne Belgique Jack White is a fan. Proof? AlabamaShakes provided the first single in the‘Live 7” Series’ on Third Man Records,Mr. White's own label. Not surprising,as their sound could be described asextra bold, southern garage soul. JustJack’s thing. Their fully-fledged debut‘Boys & Girls’ will only be released inApril (via Rough Trade) but the buzzaround Alabama Shakes is alreadyhuge. NME described them as ‘one ofthe 100 New Bands You Have To Hearat the start of 2012’.What else should you know? ThatAlabama Shakes hail from – how didyou guess – Alabama (US) and thatBrittany Howard is their impressiveblack front-lady.
After moving to Los Angeles to pursue amusical career that resulted only in yearsof waiting tables, frustration with writer'sblock and working as a writer of com-mercial jingles, the year 2009 proved tobe the one that would bring success toMark Foster, the founder of the groupFoster the People. Foster was joined by drummer MarkPontius and bassist Cubbie Fink to formthe group. Quickly after their formation,the group recorded the song that wouldlift them to fame, “Pumped Up Kicks.” The song was released as a free downloadon the band's website and by March of
2010 went viral. The song would go on toclimb charts, reaching number three onthe Billboard Hot 100. The success ofthe song led to appearances on many latenight shows like Saturday Night Live,The Tonight Show and Jimmy KimmelLive!. They performed with renownedbands like Maroon Five and the BeachBoys. Two months after the song went viral,the group signed their first record con-tract. They released their debut album,Torches, in 2011. By the end of that year,they had toured for 10 consecutivemonths. They plan to tour throughout2012 and continue to work on their sec-ond album. Foster said in an interview with CNNthat the road to success has not beenwithout it's challenges.
The Dandy Warhols
FRANCE · GERMANY· SPAIN · PORTUGAL
New Europe | Page 18 THE EUROPEAN UNION22-28 April, 2012
SPAIN|ECONOMYRajoy urges investors to have patienceSpanish Prime Minister Mariano Rajoy recently called onthe investors to hold patience to see results of the imple-mentations of the governmental plans of cutting down thedeficit figure. He stressed that no one can expect such deeplyrooted issues “to be resolved in a few weeks. Madrid is im-posing the biggest cuts in 30 years in its bid to cut the budgetdeficit from 8.5% to 5.3%. Reacting to critics, Rajoy warnedthat Spain would not be able to fund itself without the sav-age cuts and sticking to the deficit reduction plans. At anews conference in the Spanish capital, the prime ministerreiterated that the government’s “fundamental objective atthe moment” would be to reduce the deficit. "If we don'tachieve this, the rest won't matter: we won't be able to fundour debt, we won't be able to meet our commitments,” Rajoyemphasised. Officials often complain that the regions arethe prime offenders in overshooting the deficit goals. More-over, some regions like Analucia of the south have beenopenly critical of Rajoy's plans. But now the central gov-ernment looks likely to thud-down the regions.
SPAIN|ENERGYWind energy pushes down energy pricesA windy weekend last week helped in reducing Spain’swholesale power prices to their lowest levels in more thantwo years, local reports revealed citing the grid manager REE.On early 16 April, Spain's wind turbines provided a record60.46% of demand for electricity in the country. The newrecord percentage compared with a previous maximum of59.63 percent on 11 November last year. Following the up-surge, the Iberian Electricity Market's (Mibel) spot exchangeOMIE set the benchmark "pool" price in Spain at €10.99($14.38) per megawatt-hour, its lowest since fixing a level of€6.32 for 1 January, 2010. According to experts, wind energycan sway the spot market because producers can sell it at aconsiderable discount to electricity generated by burning coaland gas. The grid needs to regulate wind power on verywindy days because Spain can export only a limited part ofany surplus electricity it generates, and nuclear plants cannotbe shut down easily. A minimum number of coal- and gas-powered plants also need to keep ticking over.
PORTUGAL|ECONOMYLeftists call for public opinion on fiscal compactThe Portuguese leftist expectedly upped their voice againstthe recently approved EU’s Fiscal Compact and the Euro-pean Stability Mechanism. The Left Bloc and PortugueseCommunist Party were immediately critical. The Left Bloc'sAna Drago accused the prime minister of “a pure negationof truth” in his opening remarks backing ratification and re-jected the claim that there was a general consensus on thepact. After criticising the right-wing PSD / CDS-PP gov-ernment she described the pact as "a contract to kill the Eu-ropean social model." The Left Bloc MP recalled theposition of foreign minister, Paulo Portas, when a few yearsago he called for a referendum on Treaty of Lisbon. "Whatdo you fear? If (the treaty) is so important, put it to the Por-tuguese people?," the politician asked. The parliamentaryleader of the Portuguese Communist Party, BernardinoSoares, stated that the Treaty was "a violent attack on na-tional sovereignty and independence" condemning Portu-gal to the "prior approval of Germany." He stressed that thegovernment rushed through the law for "fear that the Por-tuguese become aware of what is at issue and spoil the littlearrangement." Portugal recently became the first Europeancountry to approve the EU’s Fiscal Compact.
Volkswagen is to invest around€14bn in a new factory in China,with an official announcement andcontract signing last Monday, inthe presence of Chancellor AngelaMerkel and Chinese Premier WenJiabao, The Local reported on 18April.
The Handelsblatt reported lastWednesday that the €14bn wouldbe invested over the next four years– to enable Volkswagen to meet
increasing Chinese demand.The first new factory will be built
in Urumqi, northwestern China,and will be capable of producing upto 50,000 cars a year, starting nextyear.
The factory, to be built in part-nership with Shanghai Automotive(SAIC), will be the first foreign en-terprise in a region that has fre-quently been the scene of unrest.Large numbers of minority Uigurs
and Muslims live there and com-plain of government repression.Around 200 people died in riotsthere in 2009.
Last year Volkswagen sold 27%of its cars in China. Wen’s visit toGermany was to celebrate 40 yearsof official relations between thecountries. “The visit will furtherimprove communication betweenboth sides,” a spokesman for theChinese Foreign Ministry said.
Volkswagen set to invest € 14 bln in China
GERMANYAUTO INDUSTRY
German engineering conglomerate Siemens is poised toscrap its full-year target of flat net profit at €6bn amid lossesfrom its offshore wind business, The Local reported on 17April, citing company sources. The difficulties of connect-ing wind-parks in the high seas to the national grid areharming Siemens' balance books. The technology giant isexpecting to set aside a huge reserve for technical difficul-ties, eating into this year's profits.
According to a report last Tuesday, Siemens will have toset up a reserve of €200m for the second quarter of the year,
to make up for delays and difficulties in producing off-shore wind energy. The company said it is likely to revisedown its own prognosis of a € 6bn profit for 2012 when itpresents its first quarter figures this week.
The company also set aside €203mn to offset technicalproblems connected with the wind-parks in the first quar-ter. The company's profit margins have been affected bydelays in the construction of two substation platformsmeant to help deliver the wind energy to the coast. Siemensrefused to comment on the report.
Siemens losing puff on off-shore wind parks
GERMANYENERGY
Germany's SAP, the world's biggestmaker of business software, said on13 April first-quarter software andsoftware-related services revenue in-creased 12% to €2.6bn, while keep-ing its outlook for the full year,
Times Of India reported. Operatingprofit was up 7% to €834mn in thequarter.
The company reiterated its full-year outlook. Furthermore, SAP saidit expects a strong second quarter
2012 with software revenue growthin a range of 15 to 20% at constantcurrencies and non-IFRS softwareand software-related service revenuegrowth in a range of 14% to 16% atconstant currencies.
SAP Q1 profit up, reiterates 2012 outlook
GERMANYIT
The Volkswagen Up is on display after winning the 2012 World Car of the Year award during the second day of press previews at the NY In-ternational Auto Show, New York, 5 April 2012. VW is to invest around €14bn in a new factory in China.|AFP PHOTO/STAN HONDA
AUSTRIA · SLOVENIA · ITALY · MALTA
New Europe| Page 19
THE EUROPEAN UNION22-28 April, 2012
MALTA|EU
Malta supports Turkish EU bidMalta recently confirmed that it would put its weightbehind the EU aspirations of Turkey despite a goodamount of scepticism from among some major EUmembers and the Cyprus issue is yet unresolved. For-eign Minister Tonio Borg said there was no reason whyTurkey should be excluded from the EU as long as themembership criteria were fulfilled. Borg said thereshould be no question on whether Turkey should bepart of the EU and that was why Malta was fully sup-portive of its bid. “There is a set of criteria and if you ful-fill them you have the right to join the EU. If Turkey iswestern enough to be part of Nato and Europeanenough to form part of the Council of Europe, thereshould be no problem for Turkey to become an EUmember state,” he said. The Maltese minister was ad-dressing the media after talks with Turkish Ministerand Chief Negotiator of EU Affairs, Egemen Bagis,who was visiting Malta. Bagis said Turkey greatly ap-preciated the support it had been receiving from Maltaon its bid to become an EU member, following up onthe association agreement it had signed in the 1960s.He said his country was making great strides in this di-rection and “will become an EU member state thanks toMalta’s support.” Borg said Malta would keep “doingits very best” to solve the visa issue. “If there were noproblems in the past, there should be no problem nowwith freedom of movement of Turkish nationals,” hesaid. Malta opened a consulate in Istanbul in Marchthat year. In a meeting with the foreign and Europeanaffairs committee of the House of Representatives,Dagis said that the Turkish prime minister would surelyaccept an invitation to visit Malta with a delegation ofbusinessmen to delve into the possibility of joint ven-tures in various sectors including ship repairing.
AUSTRIA| BUSINESS
COS to open first store in AustriaHennes & Mauritz AB COS the fashion brand,renowned for its clean-cut accessible designs, is pleasedto announce that it will open the doors of the first Aus-trian store at Bauernmarkt, Vienna. The store will bethe 55th COS location on a global scale, having previ-ously confirmed new store openings for 2012 in: Italy,Finland, Poland, Hong Kong and Kuwait, it was re-ported on 18 April. The brand known best for produc-ing timeless wardrobe perennials with a clean aesthetic,whilst also incorporating a subtle design twist that lendseach garment an unexpected yet practical component,will carry their entire men's, women's and children'swear collections. With a focus on natural materials andstylish modern features, the store interior will follow theestablished COS design aesthetic. Marie Honda, COSOverall Brand Responsible says; "We are very pleased tobe opening in Austria, a country renowned for its cul-ture and aesthetic. Opening our first store in Vienna isan exciting step for COS and we hope that our cus-tomers will be happy with the new store space, the col-lection and the brand." COS launched on London'sRegent Street in March 2007. COS is part of theH&M group. COS compliments H&M in sharing thesame business concept - 'fashion and quality at the bestprice' - COS prices start where H&M's finish. COShas a wide product range that is divided into a numberof different concepts, incorporating fashion essentials,reinvented classics and the latest trends for men andwomen. COS currently has 46 stores in nine countries(UK, Germany, Netherlands, Denmark, France, Spain,Belgium, Ireland and Sweden) and currently retails on-line to an additional 9 European markets.
A group of 24 public sector trade unions organising the 18April strike urged the government on 13 April to start ne-gotiating with them, STA news agency reported.
While the negotiations ground to a halt previous week,the head of the government's negotiating team AndrejVizjak said that a new round of talks was expected on 18April. According to the head of the union coordinatinggroup Branimir Strukelj, the government wants to lay theblame for the strike on the unions to cover up the fact thatit was not ready to negotiate.
"This is a prime example of pretending ignorance and
shifting the blame," he said, adding that the governmentfailed to send the bill on the balancing of public finances,which it adopted 12 April, to the unions.
The coordinating group cannot negotiate the bill with-out knowing what it says regarding wages, other expenses,social rights and holiday allowances in the public sector,Strukelj said.
Vizjak commented that the government would draw upits position on the unions' strike demands as soon as pos-sible, but he added that he expected an invitation to talksto come from the trade unions.
SLOVENIA UNIONS
Slovenia's unions urge government to negotiate
Amid various media quips and somefresh uncomfortable revelations, theso-called sex trial of former Italianprime minister Silvio Berlusconitook off last week. The ex-premieris charged for having sex with anunderage prostitute, among others.
A fresh revelation howeverclinched the headlines faster. Onemodel who claims that she had beenpresent at the contentious partynamed one current regional coun-cilor as having stripped beforeBerlusconi on the day.
On 16 April, Model Imane Fadilalso claimed that she was given$2,600 in cash by Berlusconi. Thatnight she allegedly saw two youngwomen in costumes with "black tu-nics, white veils and crosses" strip-ping in front of the then primeminister.
One of them, according to Fadil,was Nicole Minetti, now a regionalcouncillor for Berlusconi's People ofFreedom party in Milan. Referringto Karima El-Mahroug, the thenunderage go-go-dancer also knownas "Ruby the Heart Stealer" withwhom the then premier allegedlyhad sex, Fadil said she stayed thenight at the villa near Milan alongwith Minetti.
The media mogul politician’s pri-vate life is embroiled with lurid dis-closures about his hard-partyinglifestyle. Alongside the charge ofhaving sex with an underage,Berlusconi also stands the charge ofallegedly abusing his powers by get-ting police to release her when shewas arrested for theft to hide hiscrime.
He was not in court on 16 Aprilbut was due to testify later in thetrial. Berlusconi rejects all chargesand El-Mahroug denies having sexwith him. The billionaire tycoonwas ousted from power in Novem-ber 2011 following a parliamentaryrevolt against his increasingly scan-dal-tainted rule.
Also a wave of panic on the finan-
cial markets that pushed Italy to thebrink of default helped to oust himbringing in the technocrat cabinet ofMario Monti. Berlusconi is a defen-dant in two other trials, for tax fraudand for violating official secrets.
An Italian court this year threwout separate bribery charges against
him under the statute of limitationsfollowing a five-year trial. Despitehis being convicted several times ofcorruption and false accounting inthe past, all cases against Berlusconihave either been overturned or ex-pired after years of moving labori-ously through Italy's justice system.
Berlusconi’s sex trial begins
ITALYTRIALS
The trial involving former prime minister Silvio Berlusconi began earlier this week. | GUILLAUME HORCAJUELOs
UK · BELGIUM · NETHERLANDS · LUXEMBOURGPage 20 |New Europe THE EUROPEAN UNION22-28 April, 2012
NETHERLANDS| HEALTH
Knapen and IPPF discussAfrica’s health and educationBreaking the taboo on young people’s sexuality, and respect-ing their right to the information and care they need. Thiswas the main issue discussed in a meeting on Thursday be-tween Ben Knapen, Minister for European Affairs and In-ternational Cooperation, and Tewodros Melesse,Director-General of the International Planned ParenthoodFederation (IPPF). “In order to reach these young people,we need innovative approaches that address both employ-ment and sexual health,” he said. This also means breakingthe taboo on young people’s sexuality. “The Netherlands hasa low percentage of teenage pregnancies owing largely togood sex education and frank discussions about young peo-ple’s sexuality.” The Netherlands has supported the IPPFyouth programmes since 2011, contributing 12.5 millioneuro for a five-year period. Mr Knapen has made sexual andreproductive health and rights one of his four developmentpolicy priorities. Enabling young people to make responsi-ble, healthy choices about sexual matters is important notonly for young people themselves but also for sustainable de-velopment and stability. Mr Knapen is particularly concernedabout the large groups of unemployed, semi-educated youthsin African cities. Every year, 16 million 15- to 19-year-oldgirls worldwide become pregnant. Many of the pregnanciesare unwanted. Complications during pregnancy and child-birth are the number one cause of death for girls in this agegroup. Like the Netherlands, the IPPF champions givingyoung people access to good sexual health services and ed-ucation. The IPPF reaches more than 12 million young peo-ple and pregnant teens, providing them with education,counselling, gynaecological care, mother and child health,HIV-related care, treatment of STIs, family planning, con-traception and abortion-related services.
LUXEMBOURG| COMMUNICATION
NASA TV reaches bigger audi-ence with Encompass and SESSES, a Luxembourg-based Europe's premier direct-to-home (DTH) satellite operator, announced on April 16 thatEncompass Digital Media, a leading digital media serviceprovider, has signed a capacity deal making NASA TVchannels available to satellite TV providers and cable outletsthroughout the United States. As part of the multi-yearagreement, Encompass is utilizing a full transponder of C-band capacity on SES’ AMC-18 satellite to uplink three full-time NASA TV channels (two in High Definition and onein Standard Definition) to cable systems in all 50 states. En-compass is also relying on SES Occasional Use services andbandwidth to deliver most of the popular network’s launchand special event coverage. First created in the early 1980s toprovide NASA engineers with real-time broadcasts of spacemissions, NASA TV is today a widely watched educationalnetwork for audiences of all ages. NASA TV is focused ontaking the mystery out of space through a variety of pro-gramming, including documentaries, feature stories, astro-naut profiles and live coverage of important missions, such asthe upcoming Mars landing set for August. “NASA TV isdedicated to providing television coverage of the Agency’smissions and activities, and, in doing so, providing a look atspace and our planet as only NASA can,” said Fred Brown,NASA Television Executive Producer. “This will offer tele-vision audiences across the country an eye-opening, educa-tional journey into space.” “Fittingly, in AMC-18, NASATV is being delivered over one of the most powerful satel-lites over North America,” explained Steve Bunke, VicePresident of North America Sales for SES. “Navigatingspace is a big part of our business at SES, and we’re extremelypleased to be able to contribute to NASA TV’s importantmission to educate and entertain young and old audiencesalike about the significance of space on earth.”
British phone giant Vodafone hasserved a legal notice on the Indiangovernment over a plan to retro-ac-tively tax overseas business deals,RTE Ireland reported on 17 April.
The company contended it vio-lates the rights of foreign investors.Vodafone asserted the Indian moveis a bid to bypass a Supreme Courtruling dismissing a $ 2.2 billion taxbill.
The tax was imposed on the com-pany over its takeover of HongKong-based Hutchison Whampoa'sIndian cellular unit in 2007.
The notice was served by Voda-fone's Dutch subsidiary, VodafoneInternational Holdings BV, as thetakeover was struck between Voda-fone's Dutch subsidiary and a Cay-man Islands-based company thatheld Hutchison Whampoa's India
assets.New Delhi's planned changeto the Income Tax Act would beretroactive to 1962 and would oblige
domestic and foreign firms alike topay tax on any transaction involvingan Indian asset.
The severe, and growing, global short-age of contraceptives requires a con-certed effort by and improvedcooperation between public and privateparties. Globally, some 215 millionwomen who want to use modern con-traceptives are unable to do so. Womenwho have the choice have fewer chil-dren. This is the message of Ministerfor European Affairs and InternationalCooperation Ben Knapen.
On 16 April, the partners of theUnited Nations Population Fund(UNFPA) Global Programme to En-hance Reproductive Health Commod-ity Security held their annual meetingat the Ministry of Foreign Affairs. The
business community was also invited toattend. With the Netherlands’ support,UNFPA’s Global Programme to En-hance Reproductive Health Commod-ity Security is working to build capacityand logistical systems in 45 countries.In Nicaragua, for example, 80% of clin-ics are no longer short of contraceptives,while use has risen in countries such asNiger, Burkina Faso, Ethiopia andMadagascar.
Sexual and reproductive health andrights are one of Mr Knapen’s four pol-icy spearheads. Products and resourcessuch as medicines to combat complica-tions during pregnancy and childbirth,and contraceptives for preventing un-
wanted pregnancy and STIs, are vital togood health. Half of the global popula-tion is currently aged 25 and under, andtheir number is growing. Many youngpeople are sexually active, or will soonbecome so. All of them have the right toinformation and birth control, but theymust also have access to them. This isnot always the case.
The fact that hundreds of millions ofwomen and young people do not havethis choice is sometimes down to reli-gion or culture. But in some cases thecauses are purely practical; contracep-tives are too expensive for the poor, orthere are no services. The latter oftenapplies in rural areas.
Minister asks business to help tackle contraceptive shortageNETHERLANDS BUSINESS
Vodafone challenges Indiaover retroactive tax
UNITED KINGDOMCOMPANIES
Visiting Chinese State Councilor Liu Yandong said hereTuesday, 17 April, she hopes Belgium could serve not only asa gateway for Chinese investment into Europe but also as a"bridgehead" for cultural exchanges between China and theEuropean Union (EU).
At a meeting with Belgian Prime Minister Elio Di Rupo,Liu said China-Belgium ties have undergone smooth devel-opment in recent years and contacts between the two sides atvarious levels have been frequent, news agency Xinhua re-ported. Trade ties between China and Belgium have also wit-nessed robust growth and bilateral cooperation in variousfields have been fruitful, added Liu, who is also a member ofthe Political Bureau of the Communist Party of China (CPC)Central Committee.
China is willing to work jointly with Belgium to consolidatemutual political trust between the two sides, respect and ac-commodate each other's core interests and major concerns,
and explore new ways of cooperation to achieve win-win re-sults, Liu said.
For his part, Di Rupo expressed admiration for the greatachievements by China in its social and economic develop-ment, noting that China is now among the most significantglobal players.
Belgium is willing to push forward all-round cooperationwith China, especially in the areas of economy and culture,and actively contribute to the improvement of ties betweenChina and the EU as a whole.
Liu also met on Tuesday Belgian Crown Prince Philippeand attended a welcome banquet hosted by Andre Flahaut,president of the Chamber of the Belgian Federal Parliament.Liu is expected to kick off the first-ever China-EU high-levelpeople-to-people dialogue in Brussels on Wednesday, to-gether with Androulla Vassiliou, EU commissioner for edu-cation, culture, multilingualism and youth.
Beijing calls for closer ties with BelgiumBELGIUMRELATIONS
Vodaphone has served the Indian government with a legal notice because of a plan thatwould retroactively tax overseas business deals. | EPA/Achim Scheidemann
POLAND · HUNGARY · CZECH REPUBLIC THE EUROPEAN UNION
New Europe | Page 21
22-28 April, 2012
CZECH REPUBLIC|RELATIONS
Moldova’s bid for entry into visafree regime gets Czech supportA high level Czech parliamentary delegation recentlyvisited Moldova where they confirmed that the Czechgovernment will continue supporting Moldova s effortsto enter the visa free zone of the EU. The delegation wasled by David Vodrazka, the head of the commission forforeign affairs of the Czech Chamber of Deputies. Herevealed the Czech stance at a meeting with Igor Cor-man, the chairman of the Moldovan parliamentary com-mission for foreign policy and European integration,local reports said. Vodrazka reportedly said that theCzech delegation's visit to Moldova was a clear indica-tion that Czech Republic sees the partnership withMoldova as important. Referring to his country’s foreignpolicy, Vodrazka noted that as Moldova is viewed as aleader of the Eastern Partnership and Czech Republicconsiders its entry into the visa free regime as justified.On the part of Moldova, Corman said that the sides dis-cussed bilateral cooperation, as well as the situation inthe region and within the Eastern Partnership. "I in-formed our colleagues about the main short-term pointson our European agenda, about the fact that we are atthe final stage of adoption of the legislative frameworkon visa free regime,” he said. He noted that this processlargely depends on the political will of officials fromBrussels and the European capitals, and at this point “weenjoy full support from the Czech colleagues," Cormansaid. The Moldovan official also noted that the countryis among the five countries selected as cooperation part-ners of the Czech Republic, being the biggest benefici-ary of assistance from the Czech Republic in 2012.
HUNGARY|TRANSPORT
European Court to discussmotorway VAT appealThe European Court of Justice would consider an appealby Hungary against a European Commission decision pro-hibiting Hungary from using European Union funding tocover VAT costs in a motorway construction project, thecourt's schedule showed, Budapest Business Journal re-ported. The VAT costs were accounted in the constructionof a 34km section of the M43 motorway, between Szegedand Mako (SE Hungary). Hungary is arguing in the casethat the VAT costs were included because the state-ownedinfrastructure company could neither reclaim VAT nor in-clude it in its bills. But the Commission said the statewould ultimately receive the VAT back in the motorwayfees paid by users.
POLAND|RELATIONS
Poland and Spain speakwith one voice in EU“Poland and Spain will act together in connection with thenew, multi-year budget of the EU,” Prime Minister Tuskstated at a meeting chaired by the prime ministers of bothcountries. “I was pleased to notice that nothing haschanged as regards our joint actions and the views we shareon the cohesion policy,” said PM Donald Tusk. The PMstated that Poland and Spain may have a genuine influ-ence on the shape of the debate on the EU budget, andthat "the cohesion policy may be a joint undertaking ofboth countries." “We are able to talk using the language ofthe concrete and friendship,” said PM Donald Tusk sum-marising the intergovernmental consultations. The con-sultations took place on the 35th anniversary of theresumption of diplomatic relations between Poland andSpain, and on 20th anniversary of signing the FriendshipTreaty between Poland and Spain.
Denmark’s Grundfos, one of theworld's leading pump manufacturers,is to build its fourth Hungarian pumpfactory in Szekesfehervar (60 kilome-tres west of Budapest) in a HUF 4 bil-lion (€13.46 million) green-fieldinvestment. The project is to be com-pleted in 12 months, Portfolio Hun-gary reported on 19 April.
The new facility, a 15,000-squaremetre production hall, will be built in
the Sosto Industrial Park, adjacent tothe company’s existing plant. Grund-fos will manufacture giant pumps therefor sewage and flood protection sys-tems, dams, reservoirs and cooling sys-tems in nuclear plants. The companyaims to sell these products not only inEurope but also in Russia and Korea.
The new facility will create 350 newjobs. The R&D department alone willhire 50-60 engineers. Grundfos plans
to spend further HUF 4-5 billion onnew equipment and the introductionof new products by 2015.
Grundfos currently operates threeplants in Hungary, manufacturing on65,000 square metres with a nearly2,000-strong headcount. The com-pany’s net revenues amounted to al-most HUF 90 billion in 2010 and itsurpassed the HUF 100 billion marklast year.
Grundfos pumps up investment
HUNGARYBUSINESS
The World Bank is committed to consolidating and furtherbroadening its ties with Poland and keen to work with Pol-ish authorities on global issues, said World Bank ManagingDirector Caroline Anstey. Her comments came at the end ofa two day visit to the country, during which the ManagingDirector met key policymakers as well as representatives ofcivil society organizations. Anstey was also the keynotespeaker at a seminar, jointly organized by the Bank and theNational Bank of Poland, with her speech focused on “De-mocratizing Development in a Transforming World.:
“Countries like Poland have a special role to play in theglobal debates on economic development.” Anstey said.Poland’s experience shows how sound policies and strong
political leadership can deliver success. This experience –the “Polish know how” – is an important ingredient forothers to learn from and to be successful, and only Polandcan provide it.”
Anstey said the World Bank was also looking forward toworking closely with Poland on global issues on common in-terest. “The World Bank also believes that it is the right timefor Poland to step up its international role and increase itscontribution to international development cooperation, “shesaid. The World Bank confirmed its high interest in work-ing with Poland to strengthen the impact of its developmentprograms and to facilitate the transfer of Poland’s knowledgeand experience to other countries.
World Bank to further broaden its partnership with Poland
POLANDFINANCE
Czech-US defence deal makes way forCzech manufacturers to enter US marketCzech Republic and the US last weekfinally inked a defence cooperationagreement last week that was initiatedin January. Czech Defence MinisterAlexandr Vondra represented his side.The US side was represented by De-fense Secretary Leon Panetta.
According to some observers, the dealraised the prospect for US firm West-inghouse of winning the tender for theplanned extension of the Czech nuclearpower plant Temelin. Some good newswas also on the Czechs’ way. The agree-ment has made provisions for Czechcompanies to take part in US militarytenders without any mediators.
The bilateral agreement was signed atthe sidelines of a NATO meeting inBrussels on 18 April. Vondra, formallyconfirming that Czech companies nowcan participate in US army tenders, saidthe agreement was the biggest achieve-ment in relations between the twocountries.
The defence minister named Lom,the Czech state-run company that spe-cialises in repairs and servicing of Russ-ian-made Mi helicopters, as oneprospective company that might reapthe benefits. Local reports revealed thatLom recently won a contract for train-ing US and Afghan helicopter pilots be-
fore their deployment in Afghanistan.However the company had to use
several mediators to be able to applyfor the contract. That was the case forother Czech manufacturers also asthey were permitted only to be sub-contractors of US firms in line withUS legislation.
However this agreement, which alsoincludes supply scope for security andrescue forces in addition to military, hasmade way for direct procurement of
contracts by Czech companies. Vondranoted Czech arms makers and firms de-veloping new technologies like IT andnanomaterials could be among thosethat can profit from the new agreement.
The defence minister recalled thatPoland and the Czech Republic wouldbe the first countries from Central andEastern Europe that would have thesame position like Britain, Germany orIsrael. Poland signed such an agreementwith the United States last September.
CZECH REPUBLICDEFENCE
The meeting of the Foreign Affairs and Defence Ministers of NATO member-countries, at the
NATO headquarters, in Brussels, Thursday 19 April 2012.| |BELGA PHOTO DIRK WAEM
SWEDEN · DENMARK · FINLAND· IRELANDPage 22 | New Europe THE EUROPEAN UNION22-28 April, 2012
FINLAND|TELECOMS
Cold calls for NokiaNokia Siemens Networks began distributing redundancynotifications to employees whose contracts are being ter-minated, YLE News reported. The company aims to in-form all those affected by the end of the week. "Today thosewho will have to go began to receive personal notifications,"confirmed Tuula Aaltola of the Federation of Professionaland Managerial Staff (YTN). "They will now have time toconsider whether to accept a package and resign or if theywould rather be dismissed by the company. They have a fewweeks now as the actual job cuts will take place in May." Amaximum of 630 people are being let go in Finland, downfrom an initial estimate of 700. "More than 300 will haveto go in Espoo, over 100 in Tampere and nearly 80 inOulu," said Nokia Siemens Networks communicationsmanager Riitta Mard. Globally, the network company plansto slash its workforce by 17,000. The reductions in force arepart of a strategic change whereby NSN is focusing on mo-bile networks and seeking to cut costs by one billion euroannually.
SWEDEN|BUSINESS
Eastavab seeks StarlightAfter utilising negotiation strategies, Eastavab Grouphas agreed to merge with Swedish United AudioStarlight, it was reported on 18 April. A tie-up betweenthe two brands will create Norway, Sweden and Fin-land's leading audiovisual equipment rental organisa-tion, helping the groups to expand their market shareand reach new geographies. The transaction is sched-uled to be complete during May 2012, subject to thefulfilment of certain conditions. According to Reuters,the new group is expected to generate turnover of ap-proximately €75 million in 2012. "Our strategy, togetherwith Eastavab management, is to build a leading playerin the Nordic audiovisual equipment rental market. Themerger with Sweden's top equipment rental company,Starlight, is a significant step towards achieving thisgoal,” said Olli Liitola, senior partner at CapMan andresponsible for Eastavab investment. Following themerger, the owners of Starlight will become sharehold-ers in the holding company Eastavab Group.
DENMARK|BUSINESS
Carlsberg sells Valby brewery siteCarlsberg A/S announced previous week that it will sell75% of its historic brewery grounds in Valby to a prop-erty development consortium, Copenhagen Post reportedon 16 April. The company said in a statement that thesale price for the property was 2.5 billion Danish crowns,which will result in an after-tax profit of 1.4 billioncrowns in the second quarter. Analysts said that the salewill free up cash for Carlsberg, the world’s fourth largestbrewer, which it can use to reduce debt and focus ongrowth through acquisitions. The Valby brewery, whichwas built in 1847, was closed in 2008 and production wasmoved to Fredericia. Discussions to sell the land, whichcovers about 250,000 sq m, began in 2009. Carlsbergplans to refurbish some of the historic buildings. The restof the site will be developed into a mix of commercialand residential properties. "Carlsberg Byen (CarlsbergCity) will be a unique cultural, social and architecturalexperience at the highest international level,” said Carls-berg's communication director Jens Bekke. The othermembers of the consortium are property investmentcompany Realdania with a 25% stake, pension fundsPFA Pension with 20%, and pension fund PenSam andinsurer Topdanmark, both with 15%s takes.
The government is to give Bord Gais Eire-ann the responsibility for setting up IrishWater, the body that will oversee the rollout of metering, RTE Ireland reported.The Minister for the Environment, PhilHogan said there would be no bills until2014 and the cost of installation would bepaid by householders through an annualstanding charge.
Phil Hogan said the decision to set upIrish Water was one of the biggest takenby any government since the establishmentof the ESB. He said it would operate on atemporary basis pending legislation, andthe process of installing meters wouldbegin this October. The company, he said,would be set up as a subsidiary of BordGais Eireann and would remain in public
ownership come what may. Hogan said by2014, 95% of households would have hada meter installed, without an upfront pay-ment for installation. The programme wasbeing financed by a loan from the NationalPension Reserve Fund on commercialterms, and the average annual repaymentapproximated to around forty euro perhousehold per annum.
Bord Gais Eireann taskes to set up Irish WaterIRELANDUTILITIES
Youngman in Saab storyChinese automaker Youngman has of-fered to buy bankrupt Swedish carmakerSaab for 3.2 billion Swedish crowns($470 million), The Local reported.
"That's the lowest price that the majorpledgers and real estate owners will ac-cept to settle their pledges and theirproperty," a source said.
According to Dagens Industri (DI),the Chinese firm has also promised toinvest an additional 10 billion crowns inorder to restart production at Saab's fac-tory in Trollhättan in western Sweden, afacility which has been more or less at astandstill for a year.
India's Mahindra & Mahindra is alsoreportedly negotiating with bankruptcyadministrators in hopes of laying claimto what's left of Saab Automobile, whichfiled for bankruptcy protection in De-cember 2011 following months of fi-nancial problems.
Meanwhile, Pang Da, the Chinesecarmaker which for a long time was ex-tremely interested in taking over Saab,has reported that its efforts to revive thecash strapped Swedish brand cost itdearly.
In 2011, Pang Da paid €45 million($59 million) in advance for cars thatSaab was supposed to build.
But the cars were never made andnow Pang Da reported that the paymenthas hit the company's 2011 earnings,
which sunk by 43%, according to Auto-mobile News China.
The report came following a tensehearing in Vänersborg District Court on16 April during which former SaabCEO Victor Muller and Guy Lofalk,the court appointed administrator whohad been charged with trying to reor-ganize Saab to avoid a bankruptcy filing,testified to the accuracy of a recentlycompleted inventory of Saab's debts andassets.
The review revealed that Saab had
around 13 billion crowns in debtsagainst 3.6 billion in assets.
During the hearing, Muller criticizedLofalk for the way he handled the reor-ganization as well for accepting too higha fee for his work.
Muller went on to demand that Lo-falk be required to repay part of the €1.2million he and his staff were paid andthat the administrator also be made topay damages for doing a poor job.
Lofalk was left stunned by the re-quest.
BUSINESS SWEDEN
Finland's Safety and Chemicals Agency Tukes has confirmedthat the Talvivaara mine in Sotkamo can continue operationsfollowing the death of an employee in March, YLE News re-ported.
Tukes shut the site at the end of March over concerns aboutworkplace safety. The worker's death was suspected to havebeen caused by high levels of hydrogen sulphide emissions.
Following an evaluation of safety improvements at the plant,Tukes said it is satisfied with the enhancements made. Amongother upgrades, Talvivaara has constructed a collections sys-tem for hydrogen sulphide emissions.
Tukes had previously given the mining company a tempo-rary green light to operate on 5 April.
The agency inspected the site previous Thursday. Accord-ing to Tukes Director Päivi Rantakoski, inspectors were notinitially pleased with the recorded readings for hydrogen sul-
phide emissions.The hydrogen sulphide gases are collected and channelled
along a pipe system to a lye scrubber. The current must bestrong enough to prevent the gases from escaping into the en-vironment.
Rantakoski stressed that the plant would have been shutdown again, if matters were not in order.
Tukes emphasised that Talvivaara has only conducted thenecessary, interim changes needed to continue operations andthat a new inspection tour would take place during the spring.
“Before the end of spring stoppage, the company will eval-uate the need for other changes. They will then provide a re-port, which will be the basis for judging the need for anotherinspection. This is most likely what will happen,” Rantakoskisaid. The work safety watchdog is still investigating the deathof the worker. That report is expected in June.
Watchdog clears Talvivaara metal plant for continued operationsFINLAND
BUSINESS
Workers at the Swedish car company Saab Automobile leave the factory in Trollhattan, southwesternSweden.| EPA/BJORN LARSSON ROSVALL / SCANPIX
LATVIA · LITHUANIA · ESTONIA · SLOVAKIA
New Europe | Page 23THE EUROPEAN UNION22-28 April, 2012
SLOVAKIA|HEALTHPrivate doctors now seek a salary increaseSlovakia’s Association of Private Doctors (ASL) called onthe Health Ministry to arrange an increase in their salariessimilar to the one recently received by doctors working inhospitals, Slovak spectator reported on 17 April, noting thatdoctors at state-run hospitals achieved an average salary in-crease of €300 per month after a mass protest action lastNovember/December. According to ASL PresidentLadislav Pasztor, private doctors want to have a basicmonthly salary of € 1,600, which would require another €118 million allocated to the health-care system each year.TASR wrote that Pasztor said that private doctors do notchallenge the right of nurses to higher salaries (€640-€928per month as of 1 April) but that doctors must have at aratio of at least 2.2-times the salaries of nurses. There arearound 1,100 private paediatricians, 2,200 private generalpractitioners and around 2,000 private specialists in thecountry, Pasztor said, without indicating what kinds ofprotests, if any, the association may engage in.
SLOVAKIA|INSURANCE Fico targets private health insurersSlovakian Prime Minister Robert Fico will again seek toban private health insurance companies from retaining ordistributing profits and has asked Health Minister ZuzanaZvolenska to find a way to do so without violating the con-stitution since the attempt to do this in the first Fico gov-ernment in 2007 was found to be unconstitutional, Slovakspectator reported on 16 April. “It will not be easy, but westill assume that it is immoral and unfair when somebodygenerates profit from public resources,” Fico said. The re-striction on the private health insurers from retaining ordistributing profits might also be supported by oppositionparties as they were presenting similar proposals duringtheir pre-election campaign. But Viliam Novotný from theSlovak Democratic and Christian Union (SDKÚ) said thatif the new proposal is similar to the one from 2007 his partywill be prepared to turn to the Constitutional Court again.“The first attempt was unsuccessful and we had to fix it,”added former Health Minister Ivan Uhliarik from theChristian Democratic Movement (KDH). An expert saidthat though it will be difficult to pass such a ban, it is notimpossible. Constitutional lawyer Peter Kresak said it issimilar to the situation of mobile phone providers whomust set their prices in accordance with the rules of the EU.“Certain regulation is possible, it depends on how it isdone,” he said.
SLOVAKIA|DEFENCEGeorgia, Slovakia discuss NATO summit preparationsGeorgia and Slovakia have discussed a wide range of bilat-eral and multilateral cooperation, including preparationsfor the NATO summit in Chicago and co-operationwithin the framework of the ISAF, Georgia Foreign Min-istrysaid, Trendz News reported on 13 April. Georgia mustobtain a clear signal at the NATO Summit in Chicago,Slovak Foreign Minister Miroslav Lajcak said after themeeting with head of the Georgian Foreign MinistryGrigol Vashadze in Bratislava. Lajcak noted that Georgiais making a significant contribution to the NATO opera-tion in Afghanistan and it must be properly priced.Vashadze told reporters the meeting was focused on theupcoming NATO summit, "Before this, we are holdingmeetings with our partners to coordinate our positions andapproaches," he said. The ministers also discussed the sit-uation in the region.
A significant Lithuanian business del-egation led by Deputy Foreign Minis-ter Asta Skaisgiryte Liauskiene wasrecently in Mongolia to discuss vari-ous ways of improving the scopes ofbilateral business exchanges. Officially,the visit was aimed at strengtheningLithuanian-Mongolian economic co-operation with focus on promoting ex-
port of Lithuanian goods and servicesto Mongolia.
The delegation comprised of repre-sentatives of nine Lithuanian businesscompanies in consulting, banking,higher education, environmental pro-tection and catering. The representa-tives attended a business forum inUlan Bator held by Mongolian
Chamber of Commerce. They metwith potential partners in Mongoliaand visited some local companies. TheLithuanians also discussed with Mon-golia's officials opportunities of coop-erating in bilateral trade, transportconnections between the countries, asalso on ways of exchanging Lithuanianhigher education opportunities.
Lithuanian businesses eye Mongolian market
LITHUANIABUSINESS
The Latvian Association of Unions lastweek indicated they might invoke thereferendum option against the govern-ment’s plan of rescheduling the gradualincrease of retirement age, local reportsrevealed. Latvian Association of FreeTrade Unions maintain that the gov-ernment should stick to the acceptedscheduled of rising the retirement agestarting from 2016. According to them,the increase should not be more thanthree months per year, so the retirementage would reach 65 by 2028. Howeverthe government seems to be in hurry.
The Saeima Social and Labour Af-fairs Committee was shortly to beginreviewing the government's amend-ments to the law on state pensions.Representatives from the Latvian Wel-fare Ministry, Finance Ministry, Om-budsman’s office, Latvian Pensioners'Federation, Latvian Employers' Con-federation and Latvian Free Unions'Association had been invited to attendthe Saeima committee's meeting.
According to the government's plan,retirement age would be increased by
three months on 1 January 2014 and2015, and starting from 2016 by sixmonths every year, until reaching 65 in2020.
The unions last week had an extraor-dinary meeting on this issue. They fi-nally decided to begin preparations for
staging a referendum against increasingthe government’s plan if Saeima doesnot adhere to the previous agreement.The amendments would see the mini-mum insurance record being raisedfrom 10 to 15 years starting from 2014and to 20 years starting from 2020.
Early increase in retirement age set to be protested
LATVIA LABOUR
Estonia has invited Japan to intensify bilateral defenceco-operation. During a recent visit to the Asian country,Estonia’s Permanent Secretary of the Ministry of De-fense Mikk Marran met with Japan’s Vice Minister ofDefence Hironori Kanazawa where both sides discussedvarious issues of mutual interest.
Especially, Marran called on Japan to share its expert-ise in strengthening cyber defence and to take part injoint cyber defence exercises. NATO member Estoniaplays an important part in the organisation’s cyber com-bat. In Tokyo, Marran reportedly discussed various issuesof military cooperation focusing on cyber security. “Thestructure of the Estonian and Japanese agencies involvedin cyber defence is very similar; however, contacts be-tween Estonian and Japanese cyber specialists to datehave been few,” Marran said, inviting Japan to contributeto the work of NATO’s Cyber Defence Centre inTallinn.
Estonia has been advocating the establishment of in-
ternational cyber security bodies since 2007 after a seriesof targeted online attacks disrupted the operation ofsome of Estonia’s most important web services. Russiawas accused by Estonian authorities for staging the“cyber assaults,” but Moscow repudiated those accusa-tions as ungrounded.
Later, however, cyber security experts from the EU andNATO revealed that the attacks had been launched bysoftware running on machines in more than 100 differ-ent countries. In May 2008, seven NATO nations andthe Allied Command Transformation signed the docu-ments for the formal establishment of a CooperativeCyber Defence (CCD) Centre of Excellence (CoE) inTallinn.
There are currently 11 countries involved within thecentre: Estonia, Germany, Italy, Slovakia, Latvia, Spain,Hungary, Poland, Lithuania, the United States and theNetherlands. Turkey has announced its intent to join thework of the centre in the near future.
ESTONIADEFENCE
Tallinn, Japan to strengthen military co-operation
Workers repair broken windows after riots in Old Town of Riga, Latvia. Unions warn thatthe government’s plan of rescheduling the gradual increase of retirement age may lead toprotests.|EPA/NORA KREVNEVA
GREECE · CYPRUS · BULGARIA · ROMANIA
Page 24 | New Europe THE EUROPEAN UNION22-28 April, 2012
Romania’s Highways and National RoadsCompany (CNADNR) will spend some€8.9m on nationwide expansion of the is-suance and control system for road tax,which is now collected mainly through‘rovinieta’, Romania Insider reported on 18April. Drivers will be able to pay road taxby text message with the new system,
which will expand during a second stage.With the expanded system, Romanian au-thorities aim to increase the amount raisedby road tax by 25% for certain types of cars.
The first stage was developed with abudget of €8m in 2010 and 2011 to reacha minimum starting point for the system,which features fixed and mobile control
areas. Novensys Corporation/UTI Sys-tems developed the first stage of the proj-ect. A second stage will expand this systemto a national level, by adding more controlpoints, hardware and software infrastruc-ture, introducing new modules for theIT&C system and equipment for a newcall centre.
Romania to expand electronic road tax system
ROMANIATRANSPORT
Romania’s hydro power generator Hidroelectrica included inthis year’s budget investments of €358m, up 1% from 2011,Business Review reported on 17 April. Around 60% of the in-vestments (€205m) came from Hidroelectrica’s budget, while€94m originated from banks loans, and €59m from othersources. Hidroelectrica’s estimated revenue for 2012 is down1.2% to €711m against 2011, while expenses fell by 2.6% year-on-year to €699m this year. A 10% package of new shares inHidroelectrica will be floated on the Bucharest Stock Ex-
change later this year, part of the privatization program in theenergy sector agreed with the International Monetary Fund(IMF). A consortium comprising of BRD, the second largestbank in Romania, Citigroup Global Markets Limited andSociete Generale, both investment banks and SSIF Inter-capital Invest, a brokerage, will handle Hidroelectrica’s ini-tial public offering (IPO). Romania’s Ministry of Economyowns 80% of Hidroelectrica’s share capital, while the Prop-erty Fund has 20%.
Hidroelectrica plans €358m investments in 2012
ROMANIAENERGY
STRASBOURG - The European Par-liament’s Greens Group hailed the Bul-garian government's decision to suspendthe Belene nuclear power plant projecton the banks of the River Danube, Ger-man MEP Rebecca Harms told NewEurope in Strasbourg on 18 April. “Ifought for this decision [to cancel Be-lene] since 10 years. I have been in Be-lene several times. I’m in closeco-operation with the Greens and alsothe anti-nuclear environmental move-ment of Bulgaria and it was a very goodday for us when this decision came,” saidHarms, who is co-chair of the EPGreens Group.
The cancellation of the Belene proj-ect is another blow to European nuclearpower, further denting confidence in itssafety and cost effectiveness, especiallyafter the Fukushina nuclear disaster inJapan following the earthquake andtsunami. “To continue after Fukushimawith plans to construct nuclear powerplants in earthquake regions is foolish.Bulgaria for several reasons, especiallybecause they could not find invest in-vestors, scrapped this plan for Belene,”Harms said, adding that she hopes thatother nuclear options in the Balkancountry will also fail. She noted thatBulgaria needs to increase efficiency andstop wasting energy.
But a day earlier in Bulgaria, four pro-nuclear organisations came up with adeclaration against the suspension of the
Belene NPP project.The Bulgarian Atomic Forum (Bu-
latom), the Bulgarian Nuclear Society, theCommittee for Protection of Belene andthe Women in Nuclear Association senton 17 April a declaration to PresidentRosen Plevneliev, Prime Minister BoykoBorisov and Parliament Chair TsetskaTsacheva, insisting on holding a broadpublic discussion of the impact of the de-cision to terminate the Belene project.
According to the statement, the deci-sion to install the reactor earmarked forthe Belene NPP on the site of the Ko-zloduy NPP contradicts the latest con-cepts of nuclear safety and costlier. Thefour groups argue that the breakdown ofthe reactors at Fukushima led to theconclusion that the concentration of toomuch nuclear generating capacity onone site must be avoided, especially if
there are repositories for spent nuclearfuel there.
The experts claim that the existenceof already built infrastructure at the Ko-zloduy NPP plant is a disadvantagerather than an advantage. What is more,some of the facilities for the new unitmust be built from scratch". "The site ofthe Belene NPP project has already beentested and licensed, while the KozloduyNPP site will have to undergo thoroughtesting and secure a license anew," thestatement read.
Meanwhile, in the town of Belene,local citizens organised a protest to de-clare their determination, a year after theFukushima disaster, to have a nuclearplant - even in an earthquake zone. TheBulgarian Socialist Party announced thefirst thing it would do in power wouldbe to revive the project.
EU Greens hail Belene scrapping but fight not over
BULGARIANUCLEARGREECE|ECONOMY
EU to help boost growth, employment in GreeceOn 18 April, European Commission President JoseManuel Barroso told the European Parliament in Stras-bourg that if Greece implements measures agreed as partof an EU-funded scheme, growth would soon return tothe country. A 41-page EU paper sets “Priority actions toreturn Greece to growth and the creation of jobs”. Thepaper calls for the determination on the side of allGreeks, and the full support of the rest of the EU. “Theseactions, if properly implemented, should quickly unblockgrowth, create jobs and mitigate the social impact of thecrisis,” Barroso said. The paper contains a total of 30 vitalmeasures to improve Greece's competitiveness. Most ofthese are already in the current austerity programme forthe heavily indebted country but have not been imple-mented - particularly those that have become points ofcontention in the current Greek elections. The measuresrange from the privatisation of state-owned power plants,to the recapitalisation of Greek banks, to a pension re-form. There is no new direct aid to Greece in the EUinitiative, and the role of the European Central Bank asguardian of the stability of the common currency is notcalled into question. Barroso said that Greece and itspeople deserve support. “The Greeks have made greatefforts to implement the second austerity programme,"he said. European Parliament Vice President GeorgiosPapastamkos from Greece told a group of journalists inStrasbourg on 19 April that on a political level the EUpaper is a necessary intervention that sets up compli-mentary measures to foster Greek growth given that theausterity measures have sunk the country deeper to re-cession. But he stressed that their success also depend onthe Greek government’s co-operation.
CYPRUS|DIVIDED ISLAND
China backs negotiations for Cyprus problem solutionChina supports the continuation of the negotiations forthe solution of the Cyprus problem. “The position ofChina on the Cyprus problem is clear and consistent. Werespect the territorial integrity and the sovereignty ofCyprus and we support the continuation of the negotia-tions,” said ambassador of China to Cyprus Li Guobang,who was received on 17 April by Cyprus PresidentDemetris Christofias at the Presidential Palace. “We be-lieve that the continuation of the negotiations will signif-icantly contribute to the reunification of Cyprus and tostability in the region,” the ambassador added.
CYPRUS|DIPLOMACY
Nicosia, Tel Aviv eye energy, tourism tiesIsrael’s Foreign Minister Avigdor Liberman said that bilat-eral relations with Cyprus continue to develop at a good paceand that today they are at their peak since the foundation ofthe two states. He expressed the hope that there will be pos-itive results not only in the number of interactive visits of theMinisters, but also in the figures of bilateral trade. Liberman,who paid a three-day official visit to Cyprus, held talks withCyprus’ Minister of Commerce, Industry and TourismNeoklis Sylikiotis on 17 April. Liberman underlined thatco-operation is currently under way in many fields, includ-ing those of tourism, energy, management of water resourcesand investments in industry and real estate. Sylikiotis saidthat among the issues discussed were the prospects and theneed for further expansion of the co-operation between thetwo countries in the fields of energy and tourism, as well asto the existing interest for investments in Cyprus.
Workers are pictured during the launch of the project for the construction a building of the first
1,000 MW unit of the second nuclear plant of Belane, some 220 kilometres from Sofia, Bulgaria, 3
September 2008. In late March 2012, the Bulgarian government decided to cancel plans to build a
2,000 MW nuclear power station at Belene. |EPA/VASSIL DONEV EPA/VASSIL DONEV
By Kostis Geropoulos
NORWAY · ICELAND · SWITZERLANDNew Europe | Page 25PARTNERS
22-28 April, 2012
Aker wins key Egypt contractNorwegian and international oil services group Aker Solu-tions has signed a two-year frame agreement with Egyptianoil giant Badr Petroleum Company (Bapetco), Norway Postreported on 13 April.
Aker Solutions will be the sole supplier for all of the oilcompany's surface wellhead equipment, installation and life-cycle services operations in the Western Desert of Egypt.Contract value is undisclosed.
Dave Hutchinson, president of Aker Solutions in Asia Pa-cific said: "We are very excited about this award, as it marksthe successful entry of our surface business into the Egyptian
and North African markets. Our ambition is to grow AkerSolutions' operations in the Middle East and North Africa."
The contract will be delivered out of Aker Solutions' sur-face products manufacturing centre in Batam, Indonesia,which was established in 1992. In 2009, Aker Solutions up-graded the Batam facility in order to increase its productioncapacity. As a result, manufacturing capacity for productionand assembly of surface wellheads and trees has increased bymore than 50 percent, or equivalent to 300,000 man hours.
Aker Solutions employs approximately 320 people inBatam of which 90% are locals.
NORWAYBUSINESS
Swiss Austrian tax deal to save privacy lawsSwitzerland and Austria have clincheda bilateral deal aimed at legalising un-declared assets in Swiss banks and in-troducing a withholding tax, Swiss Inforeported on 13 April.
The agreement, which still needs ap-proval by the parliaments in both coun-tries, is the third so-called “Rubik” dealthat Switzerland has negotiated. Ger-many and Britain have also agreed tosimilar treaties.
The Austrian treaty, scheduled tocome into effect next January, wassigned by Swiss Finance Minister Eve-line Widmer-Schlumpf and her Aus-trian counterpart, Maria Fekter, in Bernon 13 April.
The trio of Rubik treaties have beengreeted with great suspicion by tax eva-sion campaigners and a degree of polit-ical opposition in all three countries.The European Commission even chal-lenged the legality of initial deals withGermany and Britain which forcedmodifications.
"How can it be that a cheat can buyamnesty by returning part of their illicitbooty?" asked Werner Kogler of theAustrian Green Party on news of Fri-day's treaty signing.
But Widmer-Schlumpf said the con-clusion of the treaty with neighbouringAustria was further proof that Switzer-land is serious about its new financialstrategy to accept only taxed assets.
“The agreement satisfies the interestsand requirements of both countriesequally well. It respects the protectionof bank clients’ privacy in Switzerlandand also ensures the implementation ofthe Austrian authorities’ legitimate taxclaims,” said a statement by the StateSecretariat for International FinancialMatters. The Swiss Bankers Associa-tion (SBA) also welcomed the deal as atemplate for others. "This sends out aclear signal for future tax agreementswith other European countries," theSBA said in a statement.
Under the agreement, residents in
Austria can make a one-off payment –at a rate of between 15% and 38% onthe assets concerned - or disclose theiraccounts to regularise their existingbanking relationships in Switzerland.
Future investment income will besubject to a withholding tax at a rateof 25%.
The finance ministry said both coun-tries also agreed to ease access to cross-border financial services and facilitateconditions for banking licences in Aus-tria. Despite being a European Unionmember state, Austria, along with Lux-embourg, has blocked such EC de-mands as it has similar banking secrecylaws as Switzerland.
Non EU-member Switzerland iskeen to safeguard its cherished bankingsecrecy laws which have come underpressure by the Organisation for Eco-nomic Co-operation and Development(OECD), including major Europeanstates and the United States, over thepast few years.
SWITZERLANDPRIVACY
The first direct scheduled flight be-tween Reykjavík and Husavík in north-east Iceland, the country’s proclaimedwhale watching capital, in 12 years tookplace previous Sunday with Eagle Air.There will be seven flights four days aweek and a year-round schedule ishoped for, Iceland, Review reported on16 April. A celebration was held inHusavík to welcome the first flight, at-tended by approximately 300 locals. Thefirst passengers included Minister of theInterior Ögmundur Jonasson, the min-istry’s undersecretary Ragnhildur Hjal-tadottir and MP Kristjan L. Moller,according to reports.
“Inhabitants are very pleased,” com-mented Jon Helgi Bjornsson, chair ofthe district council Norourbing. “It
shortens the travel time to Reykjavík;now people no longer have to drive toAkureyri but can jump onboard a planeright outside their front door.”
He added that travelling to Akureyrican be expensive; it costs around $55(€42) to take the bus. Bookings are re-ported to be off to a good start.
Eagle Air Introduces New NorthIceland Destination
ICELANDTRANSPORT SWITZERLAND|TAXES
Banks allowed to revealstaff names to USThe Swiss government has authorised 11 banks under in-vestigation by the United States over tax evasion issues torelease names of employees involved, Swiss Info reportedon 16 April. Until now, all information handed over to USauthorities investigating tax evasion by its citizens wasdone on the basis it was encrypted. A spokeswoman forthe finance ministry confirmed reports in weekend mediathat the government had recently decided to allow banksto deliver non-encrypted details of employees and thirdparties to US authorities. The decision means the govern-ment has effectively waived the obligation under article271 of the penal code which punishes “acts carried outwithout right for a foreign state”. The spokeswoman saidthe decision had been taken to “defend the interests” of thebanks concerned by the US investigations.
NORWAY|LABOUR
Nationwide strikes avoidedA nationwide strike in the building industry was avoided, afterthe parties reached a new salary agreement in the early hoursof 17 April morning, four hours after the deadline. Earlier anew salary agreement was reached in the industrial sector,Norway Post reported. The new agreement in the building in-dustry covers 18,000 members of the Fellesforbundet union.The agreement is following along much the same lines as theearlier agreement which covers around 800 companies in theindustrial sector. Here the agreement between the Norwe-gian United Federation of Trade Unions (Fellesforbundet)and the Federation of Norwegian Industries (Norsk Indus-tri) gives employees a salary increase of 1.25 Norwegiancrowns/hour, and 14 days of paid paternity leave. The tariffsfor minimum wage and shift work will also be raised. Theleader of Fellesforbundet, Arve Bakke, is especially pleasedthat their demand for two weeks of paternity leave has beenhonoured. The parties also reached an agreement regardingtemp workers from various agencies, who will now be coveredby the same tariffs as the employees in the businesses they arehired to work for. The work hours for offshore workers havealso been sorted out. This year's negotiations were particu-larly demanding, according to Stein Lier Hansen, CEO of theNorsk Industri. However, the collective result will most likelynot bring the wage increase in Norway close to that of ourtrade partners, said Hansen. "It remains to be seen what thelocal negotiations lead to. I both hope and expect moderatelocal increases," he told reporters.
NORWAY|ENERGY
Development of the Grieg Field approvedThe Norwegian government announced previous Fridayit had approved the $4.2 billion development of the Ed-vard Grieg oil field in the North Sea. This is the first fieldoffshore Norway to be operated by Swedish independentoil and gas company Lundin Petroleum, Norway Post re-ported on 16 April. According to Lundin Petroleum, theEdvard Grieg area contains 186 million barrels of oilequivalent, and peak production is expected to be 90,000barrels of oil equivalent a day. The field, formerly knownas Luno, is located 180 km west of Norway's oil city Sta-vanger and is the first of several new developments on theUtsira Height (Utsirahøyden) in the North Sea. "This isthe beginning of a new chapter in Norwegian oil history,"said Minister of Oil and Energy Ola Borten Moe, addingthat the Utsira Height fields--Edvard Grieg, Draupne andJohan Sverdrup--are expected to contain 2.8 billion bar-rels of oil equivalent in total recoverable resources, worth$328 billion with the current oil prices.
There is now a direct flight offered between Reykjavík and Husavík, Iceland’s wale-watching capital. | EPA/S. OLAFS
CROATIA · ALBANIA · SERBIA · BiH
Page 26|New Europe CANDIDATES22-28 April, 2012
ALBANIA | POLITICS
Bershias accused of plottingwith Serbian energy mogulsSocialist leader of the opposition, Edi Rama, urged the Al-banian Prime Minister Sali Berisha to explain why Albania’sstate-owned electricity transmission operator blocked thetender for the construction of a power line between Albaniaand Kosovo. Rama accused on 17 April the government ofblocking the project to benefit Serbian energy traders alleg-ing they had ties to Berisha's family. The transmission lineproject is considered a key energy project by both Albaniaand Kosovo, net importers of electricity who pay hundreds ofmillions of euros every year. Pristina's daily Zeri reported thatthe son of the Albanian prime minister, Shkelzen Berisha,met representatives of Serbian electricity trading companiesin order to block the project. Both the prime minister and hisson rejected the allegations and called the Zeri report untrue.Two companies entered the bid for the project. Croatia'sDalekovod offered to build the power line for €36 millionand Bosnia's Energo Invest for €29 million. Croatian firm,whose offer was higher was eventually selected, but the Al-banian transmission operator refused to sign the deal. Zerireported that Shekelzen Berisha struck a deal with a highlycontroversial Serbian energy mogul, Vuk Hamović, and aBosnian businessman Damir Fazlić, who is allegedly a fam-ily friend of Berisha's family. Kosovo's only way to importelectricity currently goes through Serbia, effectively givingmonopoly to Serbian transmission operators.
BiH | BUDGET
Austerity budget to end'temporary financing'Council of Ministers of Bosnia and Herzegovina approvedon 18 April the austerity state budget, after running the pro-visional ones for over a year and a half. The 2012 state budget,worth some €485 million lowers the salaries in the public ad-ministration by some 4.5%. Finance Minister Nikola Špirićstressed that “not a single function of the country on its Euro-Atlantic path will be endangered” and reminded that in 2011,the country operated on a “temporary financing” scheme withover €20m less than in the new budget. The budget proposalhas to be approved by the State Parliament and it allocatedfunds for the 2013 census, which is one of the major demandsfrom the EU and the 2012 local elections, as well as for build-ing and equipping the new border crossings with Croatia,which fulfil the EU standards. Some €10 million were bud-geted for ex-soldiers, who have been protesting over unpaidpensions for nearly a month now.
CROATIA | DEVELOPMENT
Croatian government tocopy-cat Milosevic's plan fordevelopment of the capitalCroatian Government presented on 19 April a general planfor building, development and reconstruction of publicbuildings worth €2 billion. The proposed project should beimplemented through a private-public partnership. FirstDeputy Prime Minister, Radimir Čačić, presented theplanned projects, as well as an ambitious development proj-ect "Zagreb on Sava". Namely, Croatian capital is placed onSava river, but the area around river banks is underdeveloped.Curiously enough, Serbian government had a project of de-veloping its capital in 1990s under the rule of SlobodanMilošević, called “Europolis – Belgrade on Sava”. Throughthis private-public partnership, the government plans re-construction of public buildings, primarily schools, hospitalsand government buildings. €2 billion earmarked for theseprojects should be spent in the next three years, just in timefor the next general elections.
Serbian authorities will not organiselocal elections in Kosovo accordingto the Serbian minister for KosovoGoran Bogdanović. He explainedthat Belgrade received a negative an-swer from the UN administration inPristina – UNMIK – which is ad-ministrating Kosovo in accordancewith UN Security Council resolution1244.
“We do not intend to break UNSCResolution 1244 in any way and en-danger Serbs living south from theIbar river,” Bogdanović stressed, re-minding that according to the Reso-lution, UNMIK is in charge oforganising local elections in Kosovo.He added that this situation does notimply closure of Serbian institutionsin Kosovo, pointing out that electionswere not held in 1999 or 2008.
Bogdanović rejected announce-ments of two Serbian municipalitiesin northern Kosovo who stated theywill hold local elections regardless ofthe UNMIK stance. He reiteratedthat no one has the right to break theUNSC Resolution 1244.
Minister Bogdanović emphasisedthat if Serbian side is regarded as theone breaking the international agree-ment, it could not have legitimacy toexpect the international communityand Kosovo Albanians to eventuallynegotiate status of Kosovo with Bel-grade. He urged local authorities ofSerbian municipalities not to holdthe local elections and pointed outthat recognition of their resultswould be responsibility of the newgovernment in Belgrade, adding thatthe recognition would be harmful forSerbia.
“We cannot accept that someoneworks against the interests of Serbia,”
Bogdanović said and added that fol-lowing this round of elections, newnegotiations with UNMIK will takeplace to determine the optimal wayof addressing the issue of local gov-ernance in Kosovo.
Withdrawal of all institutions ofSerbia from Kosovo was one of thekey conditions for granting Belgradethe EU candidate status in Marchand that encompasses local munici-pal authorities. Resolution 1244clearly mandates UNMIK with or-ganisation of local elections inKosovo and their representatives al-ready voiced their objection to Bel-grade's call for local elections inmunicipalities with Serbian majority.
However, Serbian authorities didcall for elections in Kosovo to takeplace along with general, provincialand municipal ones and later presi-dential election was called for thesame date. The international com-munity, including the EU earlier in-dicated that holding of generalelections, and presumably presiden-tial, would be acceptable.
Constitutionally, Serbia regardsKosovo as its integral part and doesnot recognise its independence. Of-ficial Belgrade has already madesome concessions which indicaterecognition of the factual status, es-pecially during the EU sponsoredBelgrade-Pristina dialogue, but on adomestic political front, Kosovo's sta-tus still remains a taboo.
Serbs from northern Kosovo re-jected by an overwhelming majorityin a referendum earlier this year sub-jection to Pristina's authority, but re-sults of that referendum were rejectedby Belgrade and Brussels alike.
This decision of the government
will surely affect the upcoming elec-tions, as the nationalist oppositionwill likely interpret this as an act ofsubordination to the interests of theWest and accuse the ruling majorityof sacrificing Kosovo for the sake ofthe EU agenda.
However, president of municipal-ity in northern Mitorvica, KrstimirPantić, announced that Serbs arecompelled to hold local elections asthe speaker of Serbian Parliamentcalled for them for the whole terri-tory of the country.
"No one takes calls of [minister]Bogdanović for serious,” Pantić saidand added that “surely elections willtake place in municipalities ofZvečan i Zubin potok, as well as Štr-pce”. He stressed that in the rest ofKosovo it would be difficult to holdelections as “international missions inKosovo do not want to guaranteepeace and security on the electionday”.
Milan Ivanović, one of representa-tives of Serbs in Kosovo pointed outthat Serbs in Kosovo have a consti-tutional obligation to hold elections.“It is beyond the reason to hold par-liamentary and presidential elections,but not local,” he said and added thatBogdanović's call and policy of theruling Democratic Party in factmeans “abolishing the institutions [ofSerbia] and recognition of Kosovo'sindependence.
Pristina stated that it would notallow for Serbian local elections totake place in Kosovo and internalminister Bajram Rexhepi added thatSerbs will be allowed to vote in gen-eral and presidential elections by postor via the international institutions inKosovo.
Serbs divided over elections in Kosovo
SERBIAPOLITICS
Serbia’s EU hopes could go to ashes over Kosovo | EPA/VASSIL DONEV
During a recent visit to China, TurkishPrime Minister Recep Tayyip Erdoganattended Turkey-China Economic andTrade Co-operation Forum meeting inBeijing. Speaking at the meeting Er-dogan said Turkey and China need tojoin forces for greater cooperation, newsagencies reported. “As the two countriesthat built great civilizations on the op-posite ends of the Asia, Turkey andChina could create a fresh synergy todevelop intense co-operation in econ-omy, international politics, and socialand cultural life,” he said, adding thatTurkey offers great opportunities forforeign investors especially with the lat-est economic stimulus package.
Describing Turkey as a gateway to Is-tanbul, Erdogan said a four-hour flightfrom Istanbul, Turkey's major commer-cial hub, gave access to 50 countries anda vast geography that housed one-fourth of the global trade. In this regard,he noted that China’s investment inTurkey has declined in past decade. Heinvited Chinese entrepreneurs to investin Turkey and offered strong support forstrategic investments such as defence,aerospace, technology, transportationand textiles. He expressed hope thatChina will show interest in Turkey’sstimulus package.
Turkey and China are the two spotswith biggest construction companiesin the world with 54 Chinese and 33Turkish firms. As a result, Erdogancalled on both countries to co-operatein the construction sector. In 2011
Turkish-Chinese trade volume in2011 was $24bn with 10% of the totalfigure constituted Turkey's exports toChina which equalled $2.5bn. Erdo-gan also said Turkey and China hadagreed to increase their bilateral tradevolume to $50bn in 2015 and to$100bn in 2020.
Turkish Energy Minister TanerYildiz, who accompanied Erdogan toChina, announced that the country isreceiving separate bids from China,Japan and South Korea for the con-struction and operation of its secondplanned nuclear power plant at Sinopon the Black Sea coast. Currently thenegotiations with all three countriesare underway. Yildiz said Turkey is ex-pecting three separate bids to con-struct and operate the plant using
three separate models. Turkey will signthe agreement with the country whichmakes the best offer. In the upcomingmonths, Turkey is expected to sign theagreement.
Earlier Turkey had talks with SouthKorea and Japan on the basis of theplant being constructed by a consortiumof companies from each country andthen operated by a single company withlengthy experience of operating nuclearpower plants. In 2010 talks with SouthKorea failed after power plant operatorKEPCO was unwilling to accept non-sovereign off take guarantees fromTurkey's state power marketing com-pany TETAS. Again talks with Japanalso failed last year after TEPCO wasunable to continue with negotiationsdue to the Fukushima disaster.
TURKEY · FYROM · MONTENEGRO
New Europe |Page 27CANDIDATES22-28 April, 2012
MONTENEGRO|ECONOMYMontenegro plans to revise 2012 state budgetMontenegro’s Finance Ministry spokesperson Marija Rade-novic recently announced that the government is preparingto revise its 2012 state budget. Montenegro’s 2012 budgetsets a deficit target equivalent to 1.25% of GDP. Budget rev-enues were planned at €1.21 billion, while the budget deficitis seen at €42m. The government plans to reduce expendi-tures by €15m and a decrease by €5m in spending on capi-tal projects, said Radenovic. By mid of this month, theexpected budget amendments would be submitted to cabi-net, Montenegro Times reported.
MONTENEGRO|DIPLOMACYMontenegro, India talk on bilateral relationsDuring his first official visit to India, Montenegro's ForeignMinister Milan Rocen met with his Indian counterpart So-manahalli Malliah Krishna to discuss bilateral relations, mul-tilateral co-operation, regional affairs and political andeconomic co-operation between their countries, Montene-gro Times reported. This first top level visit to India sinceMontenegro’s independence reflects new phase in reinforc-ing political and economic relations between the two coun-tries. Minister Rocen said it was very important to intensifyeconomic co-operation with India, especially in agriculture,energy, culture and tourism. A joint economic committeeshould be established in order to facilitate co-operation. TheIndian minister said that both countries were acknowledgedas multicultural and multi-confessional societies, and marketoriented economies.
FYROM|CUSTOMSSkopje, Baku sign customs agreementCustoms services of Azerbaijan and FYROM recently inkedan agreement to boost co-operation in customs matters inBaku. The signing of the agreement took place within theconference of heads of customs services of the World Cus-toms Organisation (WCO) European Region in Baku,MRTOnline reported. The agreement envisages providingmutual assistance on various directions of customs activity.After the signing ceremony, Azerbaijan’s State CustomsCommittee Chairman Aydin Aliyev said that both coun-tries will collaborate in counter-smuggling and ensuring se-curity. He said that the Customs Committee has signedsimilar agreements with more than 40 countries. Currentlythe Committee continues to work on preparing agreementswith a number of countries of South America, as well asKuwait, Qatar and others.
FYROM|DIPLOMACYSkopje, Yerevan to boost business tiesConsul of FYROM to Armenia Arayik Sargsyan recentlystated that presence of FYROM businesses in Armenia maycontribute to deepening of co-operation between Armeniaand FYROM, MRTOnline reported. He underlined thepossibility of realisation of Armenian products in theFYROM market, attaching importance to development ofcultural ties. After talks with the FYROM archimandrite,the Concul said that Armenians were allowed to hold a serv-ice in Orthodox Church in Skopje. Sargsyan also stressedthe importance of organising cultural events in both coun-tries. The official said that Armenia may benefit fromFYROM’s experience in conducting negotiations with theEU in the direction.
Bangladeshi-Turkish Business Council and Federation ofBangladeshi Chambers of Industry and Trade are jointlydetermined to boost business ties between Turkey andBangladesh, Zaman reported. Delivering an openingspeech at the first joint meeting of the Turkish-BangladeshiBusiness Council, President of the Federation ofBangladeshi Chambers of Industry and Trade, AbdulKader Azad said that Bangladesh entrepreneurs would de-
liver speeches and make presentations to introduceBangladesh's economy and commercial relations. He saidTurkey's exports were worth $130bn and imports $212bnwhile Bangladesh's total exports were $23bn and imports$33bn. Azad noted that Turkey offers great potential forimporting goods from Bangladesh. Last year Bangladeshexported goods to Turkey worth $720m while importsfrom Turkey were worth $136m.
Turkish, Bangladeshi firms to boost ties
TURKEYDIPLOMACY
Brunei Sultan Hassanal Bolkiah re-cently paid his first official visit toAnkara to meet Turkish President Ab-dullah Gul, news agencies reported. Inthe course of talks, Gul said that Turkeyhas inked deals with Brunei to boosteconomic, commercial and technicalco-operation, as well as to remove visa
requirements between the two coun-tries. He said Turkey is pleased to wel-come the Sultan and expressed hopethat the visit will open a strong page be-tween the two nations.
The visit of Sultan will contributeto positive developments in boostingtrade, as well as cooperation in econ-
omy and in defence industry. Gulsaid that both countries could col-laborate in energy, especially naturalgas and liquid natural gas. For hispart, Bolkiah hailed the two sides'co-operation within the Organiza-tion of the Islamic Cooperation(OIC) for many years.
Turkey, Brunei ink technical, economic deals
TURKEYDIPLOMACY
Ankara, Beijing call for greater co-operation
TURKEYDIPLOMACY
Chinese Vice President Xi Jinping, right, meets with Turkish Prime Minister Recep Tayyip Erdo-gan at the Great Hall of the People in Beijing, 10 April 2012. |AFP PHOTO/KAZUHIRO IBUKI/POOL
UKRAINE · MOLDOVA · BELARUSPage 28 |New Europe NEIGHBOURHOOD22-28 April, 2012
Former Ukrainian Prime MinisterYulia Tymoshenko, who is currentlyimprisoned for seven years for abuseof power during her term when shesigned what was deemed harmfulcontract with a Russian gas supplier,refused on 19 April to attend a newtrial amid health problems.
Tymoshenko asked the court tohold its preliminary hearing in her ab-sence, citing long-lasting back pain asthe reason. "Using my rights stipulatedby the Ukrainian Criminal Code, I re-quest that the preliminary hearing ofthe case be conducted in my absenceowing to my poor health," Ty-moshenko said in a statement. Thetrial is being held in Kharkiv, whereshe is serving her sentence for whatwas widely regarded as a politicallymotivate persecution.
Latest charges against Tymoshenkostipulate that during her term asmember of the parliament, she al-legedly gave instructions to a UnitedEnergy Systems of Ukraine (UESU)accountant. It surely does not help theUkrainian authorities to lift the stigmaof political persecution which alreadybrought Kiev's relations with the EUand the US to considerable tensions.
Tymoshenko's lawyer SerhiyVlasenko said that "the accountantdenies it, Tymoshenko denies it, thereis no evidence of this, but the author-
ities are taking advantage of all thepropaganda opportunities to tell a dif-ferent story".
About 1,000 people have gatheredoutside the courthouse where Ty-moshenko's new trial should com-mence, with about 300 police officerskeeping order. Both supporters andopponents of Yulia Tymoshenko or-ganised rallies.
The EU and Ukraine recently ini-tialled the agreement on a broad co-operation. However, the EU leaders
conditioned ratification and entry intoforce of it by putting an end to perse-cution of political opponents by Kiev.The new trial against the formerprime minister Tymoshenko could putadditional strains on the fragile rela-tionship.
Ukrainian authorities also accusedTymoshenko of involvement in the1996 contract killing of a powerfulbusinessman, Yevhen Shcherban. Ty-moshenko denied these allegations,too.
Tymoshenko to miss the UESU trialUKRAINE HUMAN RIGHTS BELARUS|DEFENCE
Russia to sell missile systems to BelarusOn 18 April, Russian Defence Minister Anatoly Serdyukovsaid that Moscow will continue selling TOR-M2E air de-fence missile systems to Belarus in 2012 at discount prices."Belarus is a leading market for Russian weapons and mil-itary hardware among other CIS (Commonwealth of In-dependent States) member states and we will continuediscount-price sales of TOR-M2E air defense missile sys-tems and deliveries of Russian-made weapons and militaryhardware to Belarusian security services," Serdyukov saidafter a session of the joint board of the Russian and Belaru-sian defence ministries in Minsk. Serdyukov said Russiaplans to continue training personnel for the Belarusianarmed forces, including as part of no- fee programmes. "Thepresent-day situation is prompting us to step up cooperationwith our allies, primarily Belarus. We are troubled both byan increase in NATO's activity near the borders of the Rus-sia-Belarus Union and plans of the U.S. and other membersof the alliance to deploy elements of a missile defence shieldin Europe," Serdyukov added. Belarusian Defense MinisterYury Zhadobin said military co-operation between Belarusand Russia plays a central role in the country's security. "Be-larus is interested in further development and expansion ofco-operation with the Russian Federation," Zhadobin said.
BELARUS|ECONOMYS&P improves outlook of Sovereign Credit RatingsOn 18 April, international rating agency Standard & Poor's(S&P) informed about improving outlook of sovereigncredit ratings of Belarus. Whereas previously the country'srating was a B-/ C "negative," now the rating agency givesa "stable" outlook, indicating stabilization of the economicsituation in the country. Standard & Poor's said in its offi-cial report that strengthening of Belarus’ reserves in foreigncurrency made it possible to improve the outlook, as in thiscase the pressure on the exchange rate was significantly re-duced. The experts of the rating agency also say that a slow-down in inflation had a positive impact on the economy aswell. S&P noted that the credit ratings of Belarus are stilllimited to political risks, as well as high dependence on ex-ternal sources of funding. In addition, the analysts say thegovernment's reluctance to carry out necessary structural re-forms for economic growth negatively affects the credit rat-ings of the country. Long-term and short-term ratings(B-and C) may be raised by the agency "in case of improv-ing the current account balance and reducing the nationaldebt of the country," said the Standard & Poor's.
MOLDOVA|LIVESTOCKPoultry and pork prices to rise about 12%The prices for poultry and pork in Moldova will rise about 12%in the next few months due to the increase of value-added tax- from 8% to 20%, news agencies reported. Local producers saythat they could not raise the price for meat because people willsimply stop buying. According to some pork producers inMoldova the figure of 12% is too cautious, and in reality, theprice for poultry and pork production could rise by 18% - 20%.Currently a kilogram of poultry meat in the country is sold at32-34 lei ($2.72-$2.89), and experts predict that as a result ofthe introduction of the new VAT price, it will automatically in-crease to 39-41 lei ($3.31-$3.48) per kilogram. The price forpork will increase from 38-40 leis ($3.23-$3.40) to 45-48 lei($3.82-$4.07). The increasing of prices for poultry and pork,however, will also result in local producers being unable to com-pete with imported meat, which is initially less expensive, andis also subject to 20% VAT.
On 18 April, the Council of the Republic of the National As-sembly of Belarus ratified an intergovernmental agreementwith Russia governing the setting of prices for supplies of nat-ural gas to the country and its trans-shipment via Belarusianpipelines. "The agreement, signed in Moscow on 25 Novem-ber 2011, is aimed at creating conditions for the further de-velopment of mutually beneficial Belarusian-Russianco-operation in the gas sector and determines the pricing pro-cedure for supplies of natural gas to Belarus, as well as its trans-portation through the country," Interfax quoted the upperhouse of parliament's commission for international affairs andnational security as saying. The agreement has already beenratified by the House of Representatives, the lower house ofparliament.
The Belarusian Parliament said the implementation of the
measures specified in the agreement will make it possible tosignificantly lower prices for such supplies compared to theprices in effect prior to the signing of this agreement. “This willcreate the necessary conditions for increasing the competi-tiveness of Belarusian products on the domestic and foreignmarkets," it added.
Belarus’ Deputy Energy Minister Rimma Filimonova toldthe upper house that the agreement's effect for Belarus wouldamount to about $7.5bn in 2012-2014. She said the agree-ment is intended to be in effect until the end of 2014 becauseCustoms Union countries plan to switch to net-back paritygas prices as of 1 January 2015. "If the members of the Cus-toms Union do not switch to net-back parity prices by 1 Jan-uary 2015, the price of natural gas for Belarus will be setaccording to this agreement," Filimonova said.
Parliament ratifies gas pricing deal with RussiaBELARUSENERGY
Bulgarian Minister of Agriculture andFood Miroslav Naydenov and Moldova’sPrime Minister Vlad Filat took part in theofficial opening of a Bulgarian-Moldovanbusiness forum, news agencies reported.“Such events give opportunities for estab-lishing contacts with the business and mayhelp for the establishment of new partner-ships. The volume of the Bulgarian export
registers 10% increase and is estimated at$75m. The import has increased by 31%and has reached nearly $21m,” Naydenovsaid.
Bulgaria’s Prime Minister BoikoBorisov has proposed a programme of ac-tion that will enable Bulgaria to avoid highcustoms duties that Moscow imposed onthe Bulgarian goods. It envisages entering
free trade zones in Moldova. Borisov airedhis idea at a meeting with his Filat in Bul-garia. In the southern Moldovan town ofTaraclia where a 60,000-strong Bulgariancommunity lives there are two free tradezones. Bulgaria will be able to export semi-finished products via these areas that willbe further manufactured and then im-ported to Russia.
Bulgarian-Moldovan forum to strengthen economic tiesMOLDOVABUSINESS
Journalists try to get in a court building in Kharkiv prior to the trial opening of jailed oppo-sition leader Yulia Tymoshenko, 19 April 2012. A Ukrainian court opened new criminalhearings against Tymoshenko in a case set to further dent the ex-Soviet nation's EU mem-bership hopes. |AFP PHOTO/ SERGEY BOBOK
KAZAKHSTAN · TAJIKISTAN · TURKMENISTANNew Europe | Page 29NEIGHBOURHOOD
22-28 April, 2012
Iran's closer cooperation with the Cen-tral Asian countries, in particular withTajikistan, decrease the impact of thesanctions, imposed by the internationalcommunity against the country, Seniorfellow at Nanyang Technological Uni-versity's S. Rajaratnam School of Inter-national Studies, James M. Dorsey toldAsia-Plus. The expert was commentingon Iran's willingness to provide financialsupport for the construction of Tehran-Ashgabat railroad through Afghanistanto improve regional energy and watersupplies.
The expert added that every expan-sion of relations helps Iran lessen theimpact of international sanctions. Ob-
servers note the recent expansion of co-operation between Iran and the CentralAsian countries.
For instance Iran is ready to constructa gas and water pipelines, railroad andtransport road towards Tajikistanthrough Afghanistan. Tehran is alsowilling to pay for the construction ofTajik part of the gas pipeline. Also Iranexpands cooperation with Turkmenistanand Kyrgyzstan.
Dorsey said the closer cooperationwith these countries allows Iran to arguethat it is not isolated, particularly on theeve of new talks on Iran's nuclear pro-gramme. However Dorsey added thatthe closer cooperation is unlikely to be
welcomed in Washington even if ittechnically flouts the sanctions. Tehran’slong-serving ambassador to Dushanbe,Ali Asghar Sheardoost said that in 2011trade turnover between Iran and Tajik-istan exceeded $500 million. Sheardoostsaid Tajikistan is far from Iran and thereis no pipeline between the two, so oiland gas must be brought here by truck,making it more expensive.
During recent visit of Iranian presi-dent to Tajikistan, a memorandum wassigned by the presidents of Iran, Tajik-istan and Afghanistan agreeing to builda road from Iran to Afghanistan andTajikistan and from here to China, saidthe ambassador.
Iran-Tajikistan cooperation reduces impact of international sanctions TAJIKISTANRELATIONS
According to a relevant decree signed byTurkmen President GurbangulyBerdimuhamedov, Berdiniyaz Myatiyevhas been appointed Deputy Minister ofForeign Affairs of Turkmenistan, Turk-menistan.ru learnt from an official Turk-men source. Turkmenistan's foreignpolicy follows a status of positive neu-trality adopted on December 12, 1995by a UN General Assembly resolution.
During the deteriorating aggravationof the situation in neighbouringAfghanistan, Turkmenistan has pro-vided a transportation corridor solely forhumanitarian goods and recently pro-posed holding UN-sponsored inter-Afghan peace talks in Ashgabat.Ashgabat hosted series of talks under theaegis of UN which have played an im-portant role in achieving peace and rec-onciliation in Tajikistan. At a meetingwith Foreign Ministry staff,Berdimuhamedov outlined the priorities
of the country's foreign policy. TheTurkmen Head noted that brotherly tiesand common values link Turkmenistanwith Pakistan, India and Turkey.
One of the key trends of Turk-
menistan's foreign policy is also todevelop multi-faceted, mutually ben-eficial, friendly relations with majorworld powers such as Russia, China,USA and the EU.
Turkmenistan has new deputy FMTURKMENISTAN FOREIGN AFFAIRS
A regular government session was recently held under the aegis ofPrime Minister of Kazakhstan Karim Massimov to discuss issuesof improving the customs administration of goods and the prepa-ration process for the spring sowing campaign in the country,Gazeta.kz reported. At the meeting, Chairman of the CustomsControl Committee of the Ministry of Finance Mazhit Yessen-bayev presented the main directions of modernising the country'scustoms service in the nearest future, including reduction of thenumber of documents required at the border entry points to theminimum, the Kazakh MFA's online publication reads. For in-stance if one needs to provide 13 documents for export operationsand 12 documents for import operations, the number of docu-ments will be reduced to four for both actions with the introduc-tion of finance ministry’s initiative, said Yessenbayev.
The Committee has proposed to introduce an integrated cus-toms tariff, in order to ensure a transparent customs clearance.The integrated customs tariff means a systematised and codifiedlist of information about all tariff and non-tariff measures appliedfor import, export or transit, including all state requirements for
particular goods. The Committee has also proposed to transferthe rights for levying indirect taxes such as VAT, excise taxes,royalties, to the tax authorities. The government session also re-viewed the measures on optimising the risk management system,introduction of public services to the customs administrationprocess, particularly the customs operations at the border entrypoints and customs clearance.
In his report, Yessenbayev noted the work within the SingleEconomic Space as one of the important directions. Yessenbayevsaid that the integration process of the customs-transit system ofKazakhstan, Russia and Belarus is under way, the procedures ofconfirming the removal of exported goods from the territory ofthe Customs Union is being automated, the exchange of infor-mation on registered goods among the control and analyticalcentres of the customs bodies are being implemented, and theworking groups are still dealing with unification of the nationalrisks management system. Masismov gave a nod to the aforesaidmeasures on modernisation and instructed to continue the workon upgrading the customs service.
Plans to ease import-exportKAZAKHSTAN CUSTOMS
KAZAKHSTAN | DEVELOPMENT
Astana ranks among advanced developing cities Astana is entering a new stage of development and isranked as the advanced dynamically-developing cities ofthe world. The statement was made by Kazakhstan’sPresident Nursultan Nazarbayev during a sitting on thefurther development of Astana city, Gazeta.kz reported.He went on to say that Astana is a home to 100,000 peo-ple from 77 countries of the world. National Geographicdescribes Astana as the land of future and the city at-tractive to search for success. Last year the EuropeanFoundation for Quality Management certified Astanacity administration (akimat). The President said that lastyear unique facilities such as a republican cardiac centre,palace of schoolchildren, Zhas Ulan school building wasunveiled in Astana. "The budget of Astana city may becompared to Prague, Czechia,” Nazarbayev said."Gener-ally, the Astana budget made KZT 353 billion in 2011.Astana outstrips Kiev by 1.5 times and Minsk by 2.5times by budget volume. That is the result of our work.And the city is just 12," added the President. "The firstphase of Thermal Power Plant 3 will be completed by2015," Astana Mayor Imangali Tasmagambetov said atthe sitting. "The first phase is being realized now. Be-sides, expansion and reconstruction works of the existingTPP 1 and TPP 2 are underway. All these measures areaimed at ensuring reliability and solving power shortageproblems," the Mayor noted.
KAZAKHSTAN | RELATIONS
Latvia to cooperate with KazakhstanLatvia is ready to cooperate with Kazakhstan in the de-velopment of transit routes from Asia to Europe andvice versa, Latvian Foreign Ministry Secretary of StateAndris Teikmanis said following a meeting withKazakh Foreign Minister Yerzhan Kazykhanov,Gazeta.kz reported. Teikmanis said that Latvia's trans-port infrastructure is ready to cooperate with Kaza-khstan in goods transportation and development oftransit routes between Asia and Europe through Kaza-khstan, Russia and Latvia. "This year the countriesmark the 20th anniversary of diplomatic relations,” saidTeikmanis. Both countries enjoy well-developed eco-nomic and trade relations and expects to deepen fur-ther especially in transit and transport logistics.According to Teikmanis, Kazakh-Latvian cooperationmay be key point for cargo transported from Europe toAsia and vice versa. The initiative to launch the NewSilk Way aimed at cooperation in this sphere is devel-oping now, Teikmanis said. Teikmanis said the twocountries actively cooperate in many other spheres. Thesides discussed the status and prospects of Kazakh-Latvian relations and cooperation within the frame-work of international organisations. Kazykhanovexpressed gratitude for the support of Kazakhstan'sforeign policy initiatives, particularly during Kaza-khstan's presidency of the OSCE in 2010, implemen-tation of "Path to Europe" State Programme.” He saidthat Latvia is an important partner of Kazakhstan inthe Baltic region. The Kazakh Minister noted the highlevel of trade turnover between Kazakhstan and Latvia,but added it does not reflect the real potential in thisarea. In this regard, the Minister stressed that "ourcountry has created favorable conditions for doingbusiness." He mentioned about a programme of forcedindustrial-innovative development of Kazakhstan andthe benefits of the Customs Union. The meeting alsodiscussed prospects for cooperation in transit transportsector, particularly in the context of the project West-ern China - Western Europe.
Gurbanguly Berdimuhamedov has signed a decree appointing a new Deputy Minister of Foreign
Affairs of Turkmenistan |EPA/ANDREW GOMBERT
AZERBAIJAN · KYRGYZSTAN· UZBEKISTANPage 30| New Europe
NEIGHBOURHOOD22-28 April, 2012
UZBEKISTAN|INVESTMENTTashkent tries to attract foreign investorsUzbekistan is trying to lure investors with new tax con-cessions and rules limiting the government from inter-fering in foreign-owned companies. Such a move wastaken to help Uzbekistan emerge from economic isola-tion, Uzbekreport.com reported. Foreign investors com-plained of harassment by state bodies and seizure of assetsby business interests close to the ruling elite. The Decreeof the President of the Republic of Uzbekistan of 1oApril "On additional measures to stimulate foreign di-rect investments" expanded the system of guarantees,privileges and preferences for foreign investors and en-terprises with foreign investment. The newly establishedenterprises with foreign investment, where contributionof foreign investors is equivalent to at least $5m, within10 years from the date of official registration have theright to use rules and regulations to pay tax on corporateincome, value added tax (turnover on the sale of goods,works and services), property tax, tax on the improvementand development of social infrastructure, unified socialtax, single tax, as well as mandatory contributions to theRepublican Road Fund and the Fund for the recon-struction, refurbishment and equipping of educationaland medical institutions that were in power on the dateof registration, the document reads.
UZBEKISTAN|FINANCINGICD, Uzbek Banks sign financing dealsDuring the 37th Islamic Development Bank Group an-nual meeting in Sudan, Khaled Al-Aboodi, CEO andGeneral Manager of the Islamic Corporation for the De-velopment of the Private Sector (ICD), the private sec-tor arm of IDB, inked additional Line of Financing(LOF) agreements with two Uzbek-based banks namelyIpak Yuli Bank for a $5m facility and Uzbek Industrialand Construction Bank for $6m, Uzbekreport.com re-ported. This shows ICD's firm commitment to developthe private sector in its member countries. Al-Aboodi in-dicated that the success of implementing the LOF toUzbek banks and the impact it had on developing theSME, has encouraged the ICD to extend its financialsupport. ICD is a multilateral financial institution, mem-ber of the Islamic Development Bank (IDB) Group,aims to support economic development of its membercountries through provision of finance to private sectorprojects in accordance with principles of Shariah throughpromoting private sector development.
KYRGYZSTAN|BUSINESSBishkek, Astana to increase business tiesA Kazakh-Kyrgyz business forum was recently heldin Bishkek. The forum was held with the assistanceof the Kazakh Embassy by the National Agency forExport and Investment Kaznex Invest under theMinistry of Industry and New Technology of Kaza-khstan jointly with the Chamber of Commerce andIndustry of Kyrgyzstan, news agencies reported.Kazakhstan was represented at the forum by repre-sentatives of 21 companies from the engineering,pharmaceutical, food, chemical, construction andother industries while Kyrgyzstan was represented byabout 100 business communities and associationsand several ministries and agencies. Speaking at theforum, Minister of Economy and AntimonopolyPolicy of Kyrgyzstan Temir Sariyev said Kazakhstanis considered as one of the largest economic and tradeand investment partners of Kyrgyzstan.
STRASBOURG - On 18 April, Euro-pean Parliament Members adopted bya large majority two resolutions thatmake recommendations to the Counciland the Commission on lines to takewhen negotiating association agree-ments with Azerbaijan and Armenia.MEPs approved the EU-Azerbaijanresolution with - 520 votes in favour, 32against and 24 abstentions and the EU-Armenia one with 508 in favour, 29against and 27 abstentions.
In a debate that went into the nighton 17 April, most MEPs highlightedAzerbaijan’s importance in EU energysecurity and the creation of the South-ern Gas Corridor, but also warnedagainst human rights breaches. TheMEPs praised Armenia's reform ambi-tions, but stressed the need to ensurethat its parliamentary elections on 6May are free and fair.
The Azerbaijan resolution's rappor-teur MEP Anneli Jäätteenmäki fromFinland, Vice-Chair of the Group ofthe Alliance of Liberals and Democ-rats for Europe (ALDE) and a mem-ber of the Foreign Affairs Committee,told New Europe on 18 April that it’simportant to get the association agree-ment “and I understood yesterdayevening that we agree on that. We wantit as soon as possible; we don’t know yethow long it would take, but it’s impor-tant that the European Union has verygood co-operation with both of thecountries and also with Georgia”. “ForEurope the oil and gas is very impor-tant. But it’s not only a question of oiland gas; it’s also a question of co-oper-ation, human rights and democracy,”Jäätteenmäki said.
MEPs also called on Armenia andAzerbaijan to do more to resolve thefrozen Nagorno-Karabakh conflict. Theresolutions condemn the region's mili-tarisation and high military expenditureand call on EU Member States to stopsupplying weapons and munitions toboth countries. Armenia and Azerbai-jan fought a seven-year war over thebreakaway Azerbaijani region, which ispopulated mostly by ethnic Armenians.Despite a 1994 ceasefire, the conflict yethas to be resolved politically. The Par-liament also called on the leaders of Ar-menia and Azerbaijan to tone down thelanguage of their statements to pave theway for a genuine dialogue.
Jäätteenmäki reminded that the EUis not part of the peace agreement. “It isthe Minsk Group and we would like tosay that it would be good if it could worka little bit harder. But it’s not EuropeanUnion that can solve the problem,” shetold New Europe.
The Azerbaijan resolution also notesthat the authorities should ensure thatany eviction and resettlement of Bakupeople to make way for constructionwork for the Eurovision song contest isdone in line with the law. MEPs also ex-pressed concerns about Azerbaijani gov-ernment criticism of human rightsactivists who are using the contest todraw the international community's at-tention to problems in Azerbaijan.
MEP Tomasz Piotr Poreba fromPoland, member of the Bureau Euro-pean Conservatives and ReformistsGroup (ECR) and a member of theCommittee on Regional Development,was the Armenia’s resolution's Rappor-teur. "The parliamentary elections of 6May will be a test of Armenia's deter-mination to have good relations with theEU. If they will be free and fair, and Ibelieve they will, this will demonstratethat Armenia sticks to its commitmentsin serious way," Poreba said. The reso-lution notes that in Armenia's previouselections, people were killed in police at-tempts to prevent an opposition demon-stration and notes that Armenia has yetto complete a "transparent and impar-tial investigation of the events of 1March 2008".
Negotiations for association agree-ments with Armenia and Azerbaijanwere launched in July 2010. So far 24out of 28 negotiating chapters have beenclosed in negotiations with Armeniaand 13 out of 28 with Azerbaijan. Visafacilitation dialogues with both coun-tries were launched in March 2012.
At the parliamentary debate on 17April, EU Enlargement CommissionerStefan Füle told the plenary that theadoption of these reports comes at amoment when the relations of the EUwith the South Caucasus and in partic-ular with Armenia and Azerbaijan areunder the spotlight. He said that he gavetwo major messages at the meetingswith both countries’ officials: “First, our
readiness to strengthen our links and toprovide support; and second, our wish tosee tangible progress on a number of is-sues, including deepened democracy, re-spect for human rights and on conflictresolution”. Füle also said that theseagreements are very important tools todevelop bilateral relations with bothcountries within the Eastern Partner-ship programme.
Bulgarian MEP Kristian VigeninMember Group of the Progressive Al-liance of Socialists and Democrats inthe European Parliament (S&D) toldthe plenary that Azerbaijan showssigns that the relationship with the EUis becoming a priority. “The country isemerging as a strong ally with strategicimportance not only in terms of energybut also in terms of foreign policy andsecurity,” he said.
Romanian MEP Elena Basescu ofthe Group of the European People'sParty (EPP) said Azerbaijan is a veryimportant energy supplier for Europeand highlighted a project expected totransport liquefied Azeri gas fromGeorgia, across the Black Sea, to a LNGterminal to be built on the RomanianBlack Sea Coast.
The EU is looking at Azeri gas sup-plies as a way to diversify its energy re-sources. Azerbaijan’s Shah Deniz field,being developed by BP, Statoil andAzeri state energy company SOCAR, isestimated to contain 1.2 trillion cubicmetres of gas. The originally planned16bn cubic metres from Shah DenizTwo is contracted to supply 6bn cubicmetres per year to Turkey and 10bncubic metres per year for transmission toEurope through an onwards route.Azerbaijan and the development part-ners at Shah Deniz are evaluating pro-posed pipeline routes to Europe viaTurkey, including the Nabucco project,the Trans-Adriatic Pipeline (TAP) andBP’s South-East Europe Pipeline(SEEP).
MEPs push for association agreements with Baku, Yerevan
AZERBAIJANEU AFFAIRS
MEPs take part in a voting session at the European Parliament’s April plenary session inStrasbourg, France. |AFP PHOTO/FREDERICK FLORIN
By Kostis Geropoulos
RUSSIA · GEORGIA · ARMENIA
New Europe |Page 31NEIGHBOURHOOD22-28 April, 2012
Export potential of the three biggestgrain producers in the world, like Kaza-khstan, Russia and Ukraine this year willbe approximately 55m-56m tonnes. Itwould seem that common Soviet pastand territorial proximity creates condi-tions for the creation of a single grainpool by these three countries, to dictateto the world market prices for its rawmaterials. However, there is no consensuson this issue among the three former So-viet republics. To be precise, the grainpool between Kazakhstan and Russiaformed automatically in the frameworkof the Customs Union, but Ukraine doesnot show zeal in this issue.
In the current year Russia plans to ex-port about 26m tonnes of grain, Ukraine- more than 17m tonnes, Kazakhstan –13m, 9m of which in the form of grainand 4m in the form of flour. While theseed vessel of the three countries has notagreed on the establishment of a singlegrain pool, but one thing in common: toincrease grain production is impossiblewithout increasing their infrastructurefor their delivery to world markets.While grain producers of the threecountries have not agreed on the estab-lishment of a single grain pool, but theyhave a unified position that in order toincrease grain production it is necessaryto increase their infrastructure for deliv-ery of the grain to world markets.
The issue of the establishment of asingle grain pool, which would includeKazakhstan, Ukraine and Russia, wasrising several times in recent years, in-cluding at the highest level. However,progress in this issue is not going to hap-pen any time soon.
What are the reasons of this inertia,with seemingly good economic benefits?Top grain producers of the three coun-tries were trying to answer this questionduring the Moscow-Astana-Kiev tele-conference which took place last week.
Russian Grain Union PresidentArtem Zlochevsky said that the creationof the Grain Pool of three states is in the"pending" condition due to the positionof Ukraine, which is "not very interestedin establishing such a union". "The issueof renewal of the working group to de-velop a pool of Grain with representa-tives of our three countries was recentlyraised, but its solution was postponeduntil better times," Zlochevsky said.
According to him, between Russia andKazakhstan, which are members of acustoms union, grain pool is formed au-tomatically. "Within the framework ofthe Customs Union, we have a uniformtariff for the transportation and transitthrough the territory of countries - par-
ticipants of the railway union. Thismeans that the conditions for the transitof Kazakh grain are comparable withRussian grain transit conditions. In otherwords, everything worked out automat-ically. But without Ukraine there is nopoint to discuss the creation of tripartiteGrain Pool"- said the chief Russian grainproducer.
In response to his statement, Ukrain-ian Grain Association PresidentVolodymyr Klimenko said the issue isnot about his country's reluctance toenter the grain pool, but it is about in-sufficient capacity of its infrastructure."We conducted an analysis under whicha wagon loaded with grain, passingthrough the territory of Ukraine, loses85% of its time on the road to the han-dling and processing of documents.Turnover of grain cargoes in Ukraine iseight days, it is taking so long. Two tothree thousand wagons with corn are idlebecause of the lack of transfer points,"Klimenko said.
According to him, in order to competewith their grain all three countries needto improve their logistics and infrastruc-ture. "Increasing grain production capac-ity of our country without theinfrastructure - it's just thrown money.The global market requires high qualitygrain. And this question must be solvedby all of us together. For example, build-ing of new silos with high capacity andnew transfer points will cost to Ukraineaccording to preliminary estimates about6 billion U.S. dollars" Klimenko said.
Kazakhstan Grain Union PresidentNurlan Tuleubayev partially agreed withhim. He also believes that the main dif-ficulties faced today by Kazakhstan whenexporting its grain are the luck of neces-sary infrastructure in the direction where
there is a demand for its goods, as well asthe shortage of the railway wagons.“There is a great demand for Kaza-khstan’s wheat in Central Asia,Afghanistan and Iran. The demand inPersian Gulf countries is three timeshigher than our export opportunities.With demand at 23m tonnes, our exportcapacity is only 13m tonnes. But unfor-tunately, in this favourable for us direc-tion we do not have necessaryinfrastructure,” the head of the GrainUnion of Kazakhstan said. He remindedthat in the early nineties Kazakhstan ex-ported its grain to Iran through the ex-isting railway, which passes throughUzbekistan, Turkmenistan and thenreached the station Siraks in Iran.
"We sent along this route in 2001 to100,000 tonnes of grain per month, it is1.2m tonnes per year, but we started tohave difficulties on this route four yearsago. The fact is that Iran did not havetheir own wagons, and our grain wagonssent to this country were returning fromthere after 40-60 days, which is not wel-comed by the railroad," he said.
Tuleubayev said that another infra-structure issue when exporting Kazakhgrain is limited capacity of Aktau sea-port. "The second route of our grain ex-port is through the Caspian Sea port ofAktau, where the product comes intorailway wagons. There is only one of itsberths for unloading; the second onecannot be built. That is why the ships, nomatter what capacity they are, are loadedalmost two days," said the expert. Ac-cording to him, there is another route - itis in the Black Sea and Baltic Seathrough Russia. "However, transitthrough Russia costs us about $100, andwe will ship there only because there isan infrastructure," Tleubayev said.
Russian President Dmitry Medvedev drives a grain harvester at the Rodina farm in Stavropolregion, Russia, 25 October 2011. Grain Union of Russia President Artem Zlochevsky said thatthe creation of the Grain Pool of three states is in the "pending" condition due to the positionof Ukraine, which is "not very interested in establishing such a union". |EPA/EKATERINA SHTUKINA/RIA
NOVOSTI/KREMLIN POOL
RUSSIAAGRICULTURE GEORGIA|TRANSPORT
Georgia, Kazakhstan to up transport, telecom tiesAt a recent meeting of the Georgian-Kazakh intergov-ernmental commission in Tbilisi, Georgia and Kazakhstanhave agreed to cooperate in the transport and telecom-munications sectors. The statement was jointly announcedby Georgia’s Economy and Sustainable DevelopmentMinister Vera Kobalia and Kazakhstan’s Transport andCommunications Minister Askar Zhumagaliyev, CivilGeorgia reported. A protocol was signed by both officials.Zhumagaliyev noted that during the fifth session of theCommission, several issues of bilateral co-operation intrade, transport, fuel and energy complex, the legal frame-work, environmental protection, agriculture and tourismwas discussed. He mentioned that Georgia and Kaza-khstan are no willing to co-operate in the transport sectorwhich is of interest for the supply of goods from Asia toEurope through Georgia. Kazakhstan expressed interest inthe transit possibilities of Georgia. Both countries also in-tend to co-operate in the telecommunications sector. Inturn, Kobalia said Georgia attach great importance to theGeorgian-Kazakh economic co-operation. He stressedthat both countries have developed close ties in the eco-nomic sphere.
GEORGIA|DEFENCESaakashvili calls for territorial integrityAt the Cathedral of the Holy Trinity in Tbilisi, GeorgianPresident Mikheil Saakashvili said that Georgia will beunited and restore its territorial integrity, Civil Georgiareported. Saakshvili’s wife Sandra Roelofs, Chairman ofParliament David Bakradze, Tbilisi Mayor Giga Ugulavaand other representatives of the executive and legislativebranches were also present. The President also said thatGeorgia will tackle all difficulties and achieve its only ob-jective which according to him is the country’s unification."I believe in it wholeheartedly, and I think that all the pa-triots of the country, whom I congratulate with the holyfeast of Easter, believe in it," Saakashvili said.
ARMENIA|POLITICSTycoon eager to join new governing coalitionArmenia Party (BHK) leader Gagik Tsarukian and oneof the richest businessman of the country recently an-nounced his desire to join the upcoming coalition ex-pected in next month’s parliamentary elections. Duringhis election campaign in Armenia’s central Kotaykprovince, he did not rule out the possibility of cuttingpower-sharing deals with other political forces, probablyincluding President Serzh Sarkisian’s Republican Party(HHK), Armenia Liberty.org reported. After a rally in theindustrial town of Charentsavan, Tsarukian said: “Themain thing is not to look for enemies among ourselves.We must close the ranks. Everyone must think about thecountry’s power, economic development and the people’swelfare. If everyone supports that, then they should unite.”Relations between BHK and HHK parties were straineddue to reluctance of Tsarukian to pledge support for Sark-isian’s candidacy in next year’s presidential election. TheBHK, which is represented in the government by fourministers, publicly expressed it desire to increase its repre-sentation in the National Assembly. Tsarukian remainedsilent on his party’s electoral chances in the 6 May elec-tions. He also slammed the government’s economic poli-cies on the ground that it has been unfavourable for thedevelopment of small and medium-sized enterprises. Hesuggested that amid this financial-economic crisis, thegovernment needs to lower taxes rather than raising them.
Russia-Kazakhstan-Ukraine grain pool talks stall
By Kulpash Konyrova
KASSANDRA“So far, I have not been recalled,” said JamesWarlick in Sofia. “So far” sounds interesting.What he forgot to say, “so far,” is about the…courtesy call of FBI to his Embassy.
Can you work out which of the fol-lowing were said by the Norwegiankiller and those by political leaders?1.A people that does not honor ear-lier generations is a people con-demned to ruin. We shall prove thatwe are not to be wiped out ... We aremorally superior to other people.2. Romani people are vermin andpeople of no use who “live off thecountry” 3. Immigrants are ticks sucking on[the country's] blood as most areunemployed, and receiving socialwelfare. 4. Multiculturalism is a disaster. Al-most everyone acknowledges this,but few dare say why. Let me tellyou why: multiculturalism made ustolerate the intolerant, and now in-tolerance is annihilating tolerance. 5. If you take a book of a thousandpages on the Second World War, inwhich 50 million people died, theconcentration camps occupy twopages and the gas chambers ten or15 lines, and that's what one calls adetail. 6. The Serbs could have halted theadvance of Islam into Europe, but
they weren't allowed to do so.7. I want to help stop the immigra-tion which is destroying this andevery other white nation in theworld. Then I want to see thatdeadly tide turned.8. We kidded ourselves a while, wesaid: 'They won't stay, sometimethey will be gone', but this isn't re-ality. And of course, the approach[to build] a multicultural [society]and to live side-by-side and to enjoyeach other... has failed, utterlyfailed.9.… a political camp, which soundsa little like, you know, the Hitleryouth. I mean, who does a camp forkids that's all about politics? Dis-turbing.10. I'm fighting so I can die a mar-tyr and go to heaven to meet God.
Answers:1. Jorg Haider 2. Silvio Berlusconi 3. Nicolas Sarkozy 4. Geert Wilders 5. Jean-Marie Le Pen 6. MarioBorghezio 7. Nick Griffin 8. Angela Merkel 9. Glenn Beck 10. Osama bin Laden
Breivik or not?UK cops crackdown on the far rightAs Anders Breivik prepared to give evi-dence in Norway, last week, one of thequestions that concerned many, was aboutthe identities of the people the killer hadclaimed to meet in London. There hasbeen a great deal of speculation and a cou-ple of people do seem to fit the descrip-tions, but there are those who want toknow more about the killer’s associatesand contacts.Breivik’s Serbian contact, whom heclaimed to have visited in Liberia has beennamed in a Bosnian news report as Milo-rad Pelemis, who was a military com-mander at the Srebrenica massacre, where8,000 Bosnian Muslims were murdered.The British counter terror police have car-ried out a series of dawn raids throughoutthe UK, arresting several men and charg-ing them with spreading race hatred. Theraids centred on a group who refer them-selves as ‘Infidels’ after splitting away fromthe English Defence League after fallingout with the leadership.However, as the counter terror police wereinvolved, the police’s interest appears tohave moved beyond concern over somehighly distasteful Facebook writings.
On May 6, the Greeks will vote for a new gov-ernment. The political climate is very bad as thetwo, formerly leading, political parties, PASOKsocialists and Nea Demokratia (ND) populists,are loosing voters at an exponential rate. As newmedia have entered fiercely and new cam-paigning techniques are being introduced andmany new parties appeared, no credible predic-tion is possible except that at least five or sixparties (the opinion polls speak of about 10)will pass the threshold of 3% and will enter theParliament. New media are mobilizing theyouth give the opportunity to new candidates,personalities never involved in politics before,to run for office and enter into discussions withthe young who in the past used to abstain fromvoting and any electoral procedure.
For sure, the youth will not vote for one ofthe two formerly big, traditional parties.Presently, the slogan taking dimensions in theFacebook and other social media is “In the elec-tion day, lock your parents home so will notvote for PASOK or ND.”
As to the eldest, the two big parties are loos-ing them, mainly for three reasons. Both partiesare perceived as deeply corrupt, more or less re-sponsible for the national catastrophe and areboth accused for the austerity and recession. Itis for this reasons that at least half of the Greeksare now touching the margins of poverty.
The average Greek is politically intelligentand well understands that his miserable situa-tion is due to two reasons. The large size of thestate machine, which the two political partiesmaintain in order to have secured their politi-
cal clientele and the systemic corruption of theadministration (the political clientele ofPASOK and ND parties). It should be notedthat according to official testimonies while thecitizen pays what must be paid (and it is ratherhigh) for taxes, on the average, only some 20%ends up in the Greek budget. The rest is “de-mocratically” divided among tax collectors andtheir political patrons.
All these and many other abnormalities ofGreece have made the distance between politi-cians and the people unbridgeable. As a matterof fact, traditional politicians still divide them-selves into left of the center (PASOK) and rightof the center (New Democracy) while citizens
divided them into two new categories: Thosein favor with the Memorandum signed withthe EU and those against it. Thus the Greeksthis time will vote either in favor of continuingwith the Memorandum or against it and notfor right or left. This may be bringing Greeceinto an open confrontation with the EU.
In this case, may or may not apply an old po-litical saying well formulated by the Late Greekpolitician Evangelos Averoff. “The sheep whichescapes from the barn will be eaten by thewolfs.” This is the trap set to the Greeks by thetraditional political parties sustaining that if theGreeks vote against the Memorandum, Greecewill go bankrupt.
However, there is a second reading toAveroff ’s saying. “The sheep which escapesfrom the barn, not for sure will be eaten bythe wolfs, yet the sheep staying in the barn,will certainly be slaughter by the butcher.”That means that if the Greeks vote againstthe Memorandum they might find theirway out of this crisis.
As the election is approaching, it becomesclear that for the first time in contemporaryGreek political history, the Greeks are likely tovote against both political parties which signedthe Memorandum. This implies that a new po-litical class may emerge in Greece, which willattempt to abolish all deals reached with theEU in the last two years, thus bringing thecountry very near to the chaos.
All this does not necessarily means that if theanti-Memorandum forces succeed and form agovernment, Greece will withdraw from theEU or the Euro (unless it is kicked out). TheGreeks not only are in favors of Europe, eventhe far Left, but strongly believe in the Euro-pean future of their country.
The Greeks are survivors. They are not dis-ciplined and they have no relation with organ-ization or order, what-so-ever. Yet, they arehard-working when they are motivated, risk-takers and surprisingly inventive. Under the cir-cumstances, no matter what happens and whowill be the winners or the looser of the election,the Greeks are highly likely to survive the cri-sis. As to Greece’s systemic aberrations, this issomething that can wait until the next crisis…
Kassandra
Greece, Sky is the Limit
Latest news from theCharitable InstitutionWhat one might think if finds out that two fel-lowships, one for a European and one for anAmerican Universities, were granted to twohigh-ranking functionaries of the EuropeanCommission, for two consecutive years. Ab-solutely nothing. Thinking begins when that onewill discover that the two high-ranking Com-mission functionaries are …brothers and the se-lection committee was chaired by one of theirco-nationals! One can read your mind easily butwe can ensure you that the two brothers are nei-ther Greeks nor Italians.
Jonny the Lamb, did not take the risk to escape from the barn and ended up in the butcher
