EUROPEAN UNION: Summit Displays Division [6 March 2009]

Summary: As the recession deepened in Eastern Europe, an EU summit showed less unity than European solidarity.

Development: A summit of the EU on 1 March refrained from creating a US-style blanket bailout package for the nations of Eastern Europe who are undergoing a financial meltdown. Instead, the financial aid provided by the EU will go to those nations on a case by case basis. A $228 billion recovery plan proposed by Hungary was denied on Sunday causing the President of that nation to warn of a possible division among the nations of the EU. Czech Prime Minister and current EU President, Mirek Topolanek, has stated that no EU nation would be allowed to fail, however, by EU rules, nations are not allowed to ‘bail each other out’. After the members of the summit failed to present any new ideas or strategies to deal with the crisis or affirm European solidarity, Eastern European stocks plummeted.

Analysis: The political and economic structure of the EU is undergoing an unprecedented test that will determine the actual effectiveness of the system. While the EU has made a pledge of solidarity, the organization has yet to substantiate it with an effective and unified plan for stimulating the economies of Eastern Europe. Because each of the individual EU nations still hold some degree of sovereignty over their financial system, it will be difficult for the EU to create an internationally supported financial assistance package. Instances of protectionism, such as in France’s recently proposed loan to Renault and Peugeot-Citron, which initially contained protectionist stipulations—which  were removed at the suggestion of the EU—will undoubtedly increase as the recession deepens. These decisions will determine the economic future of the European Union.

[Andrew Stover]

EUROPEAN UNION: Anti-Terrorism Package Adopted [20 November 2007]

Summary:  Legislation that criminalizes acts supporting terrorism, tightens airport security and puts controls on commercial explosives shows the EU is increasingly aware that tough measures are needed to protect its peoples.

Development:  In light of the 2004 Madrid bombings, the 2005 London bombings, and numerous foiled terrorist plots in Western Europe, the European Union (EU) is both standardizing and intensifying counterterrorism programs amongst member states.  Open calls to commit terrorist acts, recruitment and training for terrorism, printing explosive-making and usage material, and spreading violent propaganda are now criminalized when publicized through the internet, the media, and in public speeches.  Airlines must now make Passenger Name Records (PNR) of those on inbound and outbound EU flights available to national and EU law enforcement agencies.  Lastly, the legislation calls for the creation of a national alert system to pinpoint missing commercial explosives and questionable sales.  The legislation also mandates the formation of an EU-wide network of professional bomb squads, an explosive forensics division in Europol, and background checks on critical industry personnel. 

Analysis:  This package clearly reflects the EU’s fierce commitment to fighting the War on Terror.  Their policies on airline security and industry surveillance are increasingly synchronizing with those of the United States.  Yet, unlike the US, EU law enforcement agencies do not operate under the same restrictions with respect to individual rights.   Rising levels of cooperation between counterterrorism units and internet service providers permit authorities to identify and apprehend suspects quickly in accordance with the law, whereas issues of freedom of speech and the right to privacy slow down, if not entirely deter, similar investigations in the US.  Increased access to suspects’ information, and the ease with which the authorities can apprehend terror suspects, enable EU law enforcement agencies to act robustly to prevent domestic and/or international attacks.  Having repeatedly demonstrated a willingness to work with the US in counterterrorism, these newly-adopted measures also will help ensure American security.  

[Lauren DeHamer]

EUROPEAN UNION: Ariane Tests ‘Space Truck’ Sequence [7 October 2007]

Summary: The successful test of an Ariane rocket engine re-ignition is key to building Europe’s Automated Transfer Vehicle (ATV), a planned delivery vehicle for the International Space Station (ISS).

Development:  The Ariane rocket tested the engine re-ignition sequence required to launch the future ATV on a path to the ISS.  The Ariane rocket re-ignited its upper stage engine, after orbiting two communications satellites, built by the US company Orbital Sciences Corporation.  The test is designed to alter an elliptical orbit into a circular one, from which an ATV can then travel under its own guidance system to the ISS.

Analysis:  The engine test is a necessary step in developing the ATV, although whether the ATV will actually be ready by its planned start date in 2008 remains to be seen.  Once it is operational, however, the ATV will carry up to 7,500 kg of cargo to the International Space Station, or about three times that of the Russian Progress craft.  The ATV will weigh 20 tons and will be launched by the latest multi-stage Ariane rocket.  The European Space Agency plans to build five ATVs.

EUROPEAN UNION: Fraud Raids Occur Across Europe [31 March 2007]

Summary: European police and the European Anti-Fraud Office (OLAF) raid over 30 properties to solve a serious fraud case within the EU.

Development: European police along with the European Anti-Fraud Office (OLAF) raided over 30 properties mainly in Belgium and Italy, but also in France and Luxembourg.  The search and seizure involved EU banks, offices, and homes to probe civil servants who allegedly have been linked with “suspected bribery of European civil servants, forming a criminal organization, violating professional secrecy, breaches of public tender laws and forgery," said a spokesman for the prosecution.  Investigations began in 2004 into a fraudulent tender on an estimated multi-million euro project.  EU Commission spokesman Johannes Laitenberger has offered the Commission’s full cooperation to OLAF. Three Italians working for the EU have been detained thus far.

Analysis: This incident is another in a series of corruption allegations that taint the European Union’s reputation. In the worst case so far, corruption allegations in 1999 forced the Head of the European Commission Jacques Santer and all those under him to step down the day an investigative report revealed malpractice and corruption in the Commission. Thus far, the detainees are not high ranking EU officials.  If this remains the case, it is doubtful a mass restructuring will occur.  The development reverses the progress the EU has made to distinguish itself as a corruption free organization, but, at the same time, shows the organization is willing to police itself.   

[Samson Ajir]

EUROPEAN UNION: The EU, US, and India Are Reopening Global Trade Talks [8 March 2007]

Summary: The EU, US, and India are discussing the continuation of the Doha negotiations for the WTO.

Development: In New Delhi, the EU, US, and India are attempting to reopen trade talks of the Doha negotiations of the World Trade Organization. The Doha negotiations collapsed last July because the EU, US, India, Brazil, and Australia could not reach a common consensus on liberalizing agriculture and industrial trade. French President Jacques Chirac spoke out that EU Trade Commissioner Peter Mandelson may be offering far too much agricultural concession, at least until the US is more willing to be flexible on its part. No agreement has been reached yet.

Analysis: This could prove difficult to achieve because both the US and EU possess opposition to the rise in agricultural compromise on their home soils. To be feasible the US must make larger farm subsidy cuts and the EU would have to further reduce agricultural import tariffs while developing states would need to willingly allow industry goods and services into their markets. If advancement is achieved, this could be an opportunity to enhance the economy on a global scale and help millions climb out of poverty.

[Samson Ajir]