A 260-page declaration of class war was issued in Cannes earlier this month.
The final report of the B20 summit, a gathering of business chiefs coinciding with the Group of 20 meeting for political leaders, contains this explicit demand: “Restore fiscal stability by reducing public spending rather than by increasing corporate taxation.” If a software package is ever developed to translate executive speak into plain English, it might just transform that sentence into: “Indulge the wealthy; make life miserable for everyone else.”
It would be comforting if this paper was destined to gather dust. Tragically, that core demand is already being put into effect in many countries, without the governments and institutions overseeing its implementation having any democratic mandate to do so. We saw how George Papandreou was browbeaten into retreating when he dared to suggest that the Greek people should be allowed to vote in a referendum on austerity. Less widely-reported, the Irish finance minister Michael Noonan has lately described as “sacrosanct” the deficit reduction targets set for his country by the European Union and International Monetary Fund. When standing for election in February this year, the same Noonan pledged to renegotiate the diktats he now regards as “sacrosanct”.
Can the European Parliament strike a blow for the disadvantaged? In theory, the EU’s only directly-elected institution can. In practice, it seldom does.
This week, the Parliament’s economics and monetary affairs committee will probably approve its official position paper on the innocuous-sounding but highly dangerous “European semester” arrangement.
Even though that arrangement usurps democracy by requiring the national governments of EU states to have their annual budgets vetted by the unelected European Commission, most MEPs sitting on that committee appear untroubled. The draft version of the paper they are considering merely recommends a few tweaks to the Commission’s proposals such as keeping MEPs abreast of what other EU bodies get up to.
It is telling that Pervenche Berès has drawn up the Parliament’s paper. As chairwoman of the economic and monetary affairs committee, she made it to number eight on the “Top 50 Power List” compiled by the Accountancy Age in 2008. According to the magazine, she has been prepared to “ruffle the feathers” of the International Accounting Standards Board by querying moves by that (ironically unaccountable) private sector body to converge US business reporting standards with those used in the rest of the world.
Affront to democracy
Rather than making a habit of ruffling feathers among the titans of finance, Berès is generally accommodating towards them. She has combined holding one of the more coveted positions within the Parliament’s structures with membership of the European Parliamentary Financial Services Forum (EPFSF).
That forum is another affront to democracy. In return for an annual fee of 8,000 euros, banks and other providers of financial services enjoy privileged access to the MEPs who are supposed to be regulating their sector. Companies who are not fully signed up to the forum can still take part in the “briefing sessions” it organises, provided they pay 200 euros each time. If political parties were holding fund-raisers, where businesspeople coughed up comparable sums to have chinwags with ministers, the press would rightly be curious.
While Berés told Spinwatch, a group monitoring relations between business and politics, in 2008 that she was not an active member of the EPFSF, the forum’s own website indicates that she chaired at least five of its meetings between 2003 and 2008. In 2005, she was in the hot seat for a discussion on mortgages, where the two “guest speakers” came from BVBA and BNP Paribas. There is no suggestion that Berès benefitted personally from the discussion. But the fact she was also chairwoman of the economic and monetary affairs committee surely meant there was a conflict of interests involved. She cannot seriously claim that a corporate-funded body is a neutral or objective forum for debate.
Among the corporate participants in the forum are Barclays, DeutscheBank, Goldman Sachs, the International Swaps and Derivatives Association (ISDA) and the crediting ratings agency Standard and Poor’s.
Hedge funds write the script
The ISDA has been lobbying to ensure that EU rules on hedge funds end up being to its liking. Its work has inevitably brought it in close contact with another French MEP, Jean-Paul Gauzés, who has been tasked with preparing the Parliament’s official positions on hedge funds and credit ratings agencies. Guess what? Gauzés is also a member of the financial services forum.
The influence of hedge fund lobbying on the Parliament was apparent from the outset. During the first debate on proposed new rules that the economic and monetary affairs committee held in 2009, German MEP Wolf Klinz argued that the recommendation on the table failed to distinguish between different types of investment funds. “The problem is the one-size-fits-all approach,” he said.
I checked a briefing paper that the EPFSF circulated on the same proposals in 2009. It closely resembled Klinz’s comments by warning of a “one-size-fits-all approach of regulation to a very heterogeneous group of fund types”. The resemblance is unlikely to be accidental. Klinz is the current chairman of the forum.
Also this week, Michel Barnier, the EU’s single market commissioner, is scheduled to come forward with new proposals on credit ratings agencies. Don’t be surprised if the MEP put in charge of responding to them sits on the aforementioned forum.
Theodore Roosevelt once spoke of an “unholy alliance” between business and politics. That kind of alliance is commonplace in Brussels.
●First published by New Europe, 14 November 2011.
Showing posts with label George Papandreou. Show all posts
Showing posts with label George Papandreou. Show all posts
Friday, November 18, 2011
Wednesday, July 13, 2011
How Greece abandoned Palestine
When Andreas Papandreou died in 1996, The New York Times noted that he often left Western governments “befuddled or exasperated” as he took positions “diametrically opposed to theirs.” Citing examples of his “maverick” behavior, the paper’s obituary referred to how the Greek prime minister granted diplomatic status to the Palestine Liberation Organization in 1981, the year he first took office.
Like most political leaders, Papandreou was a man of contradictions. He professed to despise American imperialism, while allowing the United States retain military bases on Greek soil. Yet he deserves some posthumous acclaim for saluting the PLO when it was still a genuine resistance movement and for criticizing Israel more trenchantly than any of his counterparts in the then European Community.
In recent times, the current Greek premier George Papandreou has acted as if he wishes to totally negate his father’s legacy. No doubt, Greece’s refusal to allow the Freedom Flotilla II set sail for Gaza was partly the result of pressure -- and possibly even financial blackmail -- from the US and Israel. Nonetheless, it was not an isolated occurrence but the logical consequence of a process that was already underway.
In July 2010, Papandreou Junior visited Israel barely one month after the assault on the Mavi Marmara, in which nine Turkish peace activists were murdered by Israeli forces. As an immediate response to that massacre, Greece called a halt to a joint military training exercise then being undertaken with Israel off the island of Crete. But Papandreou had no qualms about going ahead with his trip to Israel as planned.
Israel was swift to reciprocate. In August last year, Benjamin Netanyahu became the first Israeli prime minister to visit Greece. Netanyahu reportedly used the occasion to recommend that the two countries be connected by a gas pipeline. It is not known whether the two men discussed how the Leviathan gas field – the source of the energy on Netanyahu’s radar screen at the time – is located off the Lebanese coast and how Israel’s exploitation of its reserves could spark a new conflict with Lebanon.
It is known, however, that both Israel and Greece continue to strengthen their military cooperation. Codenamed Minoas 2010, the operation that was stopped at the time of the Mavi Marmara bloodbath was, in fact, resumed in October last year. Apache and Black Hawk helicopters were used in the exercise, which tested out landing and take-off procedures in mountainous areas and under several different weather conditions. In December, Flight International stated that there had been at least four such exercises between Greece and Israel over the preceding few months.
Friction between Greece’s historic foe Turkey and Israel have almost certainly helped the Netanyahu-Papandreou relationship to blossom. Papandreou is surely an astute enough politician to have scented an opportunity for Greece to replace Turkey as Israel’s most valued ally in the Mediterranean. The similarities in the men’s backgrounds could well be another factor. Both were educated at highly regarded universities in the US (Papandreou in Harvard, Netanyahu in the Massachusetts Institute of Technology) and despite heading parties that are nominally different in ethos, both are heavily influenced by US politics and culture.
Perhaps more significantly, the recent intensification of relations has followed several years where the two countries have worked alongside each other under the umbrella of NATO. That US-dominated alliance has formed a ring around the entire Mediterranean. Almost every country bordering that sea is either a full member of NATO or has signed up to its Orwellian-titled Partnership for Peace.
Even though there appears to be no imminent prospect of Israel joining NATO, its ties to the alliance have grown exponentially over the past decade. An Israeli-NATO agreement on sharing intelligence was signed in April 2001. Five years later, Israel reached agreement on implementing an “individual cooperation program” with NATO. Updated in December 2008, the agreement paved the way for a high number of joint operations between it and the alliance. Greece has been involved too in most, if not all, of these operations. In 2007, for example, Greek warships took part in drills in Eilat, an Israeli port on the Red Sea.
Both Greece and Israel are also participating in Operation Active Endeavor, a NATO-coordinated exercise under which ships patrol the Mediterranean. That operation was, according to the official narrative, launched in response to the 11 September 2001 atrocities in the US. But in practice its remit has expanded beyond keeping a watch out for potential “terrorist” activity on the waves. In particular, it has been used as part of a repressive agenda of helping prevent foreigners who seek to flee poverty from reaching Europe.
In March, Active Endeavor’s scope was further broadened during preparations for the war against Libya. A 24-hour airborne surveillance system was put in place as part of the ongoing operation. Despite its severe economic problems, Greece has provided a number of warplanes and ships to that war effort, in which NATO has availed of at least seven Greek airfields.
Meanwhile, the solidity of Israel’s links to NATO were underscored shortly before Gabi Ashkenazi stepped down as head of the Israeli military in February. Ashkenazi, who oversaw Operation Cast Lead, which killed 1400 Palestinians in Gaza during December 2008 and January 2009, advised NATO strategists on what tactics should be used against Afghanistan and was treated to a farewell dinner in his honor at the Brussels residence of Giampaolo Di Paolo, chairman of NATO’s military committee.
On a proportionate basis, Greece is one of Europe’s largest spenders on the military, although this expenditure is being cut as part of a wider austerity drive that mainly affects vital public services. In 2009, Greece allocated 2.54% of its gross domestic product to military spending, the highest level in the European Union. Britain was next at 2.53%.
Greece is known to have concluded deals with several Israeli weapons makers, although it has not published comprehensive details on such deals. In February, Evangelos Venizelos, the Greek defense minister, confirmed that “precision-guided” weapon kits known as SPICES (Smart Precise Impact and Cost Effective). Elisra, a subsidiary of the leading Israeli arms manufacturer Elbit, has also supplied electronic warfare systems to the Greek air force over the past decade.
It is true that Greece has combined its ever-tightening embrace of Israel with calls for the blockade of Gaza to be lifted. But it is impossible to take those calls seriously now that the Athens government has assisted Israel in thwarting protest against the very same blockade. Andreas Papandreou’s championing of Palestinian rights might have had some moral weight in the early 1980s. Three decades on, his son George has become a craven accomplice in maintaining the Israeli occupation.
·First published by The Electronic Intifada (www.electronicintifada.net), 13 July 2011.
Like most political leaders, Papandreou was a man of contradictions. He professed to despise American imperialism, while allowing the United States retain military bases on Greek soil. Yet he deserves some posthumous acclaim for saluting the PLO when it was still a genuine resistance movement and for criticizing Israel more trenchantly than any of his counterparts in the then European Community.
In recent times, the current Greek premier George Papandreou has acted as if he wishes to totally negate his father’s legacy. No doubt, Greece’s refusal to allow the Freedom Flotilla II set sail for Gaza was partly the result of pressure -- and possibly even financial blackmail -- from the US and Israel. Nonetheless, it was not an isolated occurrence but the logical consequence of a process that was already underway.
In July 2010, Papandreou Junior visited Israel barely one month after the assault on the Mavi Marmara, in which nine Turkish peace activists were murdered by Israeli forces. As an immediate response to that massacre, Greece called a halt to a joint military training exercise then being undertaken with Israel off the island of Crete. But Papandreou had no qualms about going ahead with his trip to Israel as planned.
Israel was swift to reciprocate. In August last year, Benjamin Netanyahu became the first Israeli prime minister to visit Greece. Netanyahu reportedly used the occasion to recommend that the two countries be connected by a gas pipeline. It is not known whether the two men discussed how the Leviathan gas field – the source of the energy on Netanyahu’s radar screen at the time – is located off the Lebanese coast and how Israel’s exploitation of its reserves could spark a new conflict with Lebanon.
It is known, however, that both Israel and Greece continue to strengthen their military cooperation. Codenamed Minoas 2010, the operation that was stopped at the time of the Mavi Marmara bloodbath was, in fact, resumed in October last year. Apache and Black Hawk helicopters were used in the exercise, which tested out landing and take-off procedures in mountainous areas and under several different weather conditions. In December, Flight International stated that there had been at least four such exercises between Greece and Israel over the preceding few months.
Friction between Greece’s historic foe Turkey and Israel have almost certainly helped the Netanyahu-Papandreou relationship to blossom. Papandreou is surely an astute enough politician to have scented an opportunity for Greece to replace Turkey as Israel’s most valued ally in the Mediterranean. The similarities in the men’s backgrounds could well be another factor. Both were educated at highly regarded universities in the US (Papandreou in Harvard, Netanyahu in the Massachusetts Institute of Technology) and despite heading parties that are nominally different in ethos, both are heavily influenced by US politics and culture.
Perhaps more significantly, the recent intensification of relations has followed several years where the two countries have worked alongside each other under the umbrella of NATO. That US-dominated alliance has formed a ring around the entire Mediterranean. Almost every country bordering that sea is either a full member of NATO or has signed up to its Orwellian-titled Partnership for Peace.
Even though there appears to be no imminent prospect of Israel joining NATO, its ties to the alliance have grown exponentially over the past decade. An Israeli-NATO agreement on sharing intelligence was signed in April 2001. Five years later, Israel reached agreement on implementing an “individual cooperation program” with NATO. Updated in December 2008, the agreement paved the way for a high number of joint operations between it and the alliance. Greece has been involved too in most, if not all, of these operations. In 2007, for example, Greek warships took part in drills in Eilat, an Israeli port on the Red Sea.
Both Greece and Israel are also participating in Operation Active Endeavor, a NATO-coordinated exercise under which ships patrol the Mediterranean. That operation was, according to the official narrative, launched in response to the 11 September 2001 atrocities in the US. But in practice its remit has expanded beyond keeping a watch out for potential “terrorist” activity on the waves. In particular, it has been used as part of a repressive agenda of helping prevent foreigners who seek to flee poverty from reaching Europe.
In March, Active Endeavor’s scope was further broadened during preparations for the war against Libya. A 24-hour airborne surveillance system was put in place as part of the ongoing operation. Despite its severe economic problems, Greece has provided a number of warplanes and ships to that war effort, in which NATO has availed of at least seven Greek airfields.
Meanwhile, the solidity of Israel’s links to NATO were underscored shortly before Gabi Ashkenazi stepped down as head of the Israeli military in February. Ashkenazi, who oversaw Operation Cast Lead, which killed 1400 Palestinians in Gaza during December 2008 and January 2009, advised NATO strategists on what tactics should be used against Afghanistan and was treated to a farewell dinner in his honor at the Brussels residence of Giampaolo Di Paolo, chairman of NATO’s military committee.
On a proportionate basis, Greece is one of Europe’s largest spenders on the military, although this expenditure is being cut as part of a wider austerity drive that mainly affects vital public services. In 2009, Greece allocated 2.54% of its gross domestic product to military spending, the highest level in the European Union. Britain was next at 2.53%.
Greece is known to have concluded deals with several Israeli weapons makers, although it has not published comprehensive details on such deals. In February, Evangelos Venizelos, the Greek defense minister, confirmed that “precision-guided” weapon kits known as SPICES (Smart Precise Impact and Cost Effective). Elisra, a subsidiary of the leading Israeli arms manufacturer Elbit, has also supplied electronic warfare systems to the Greek air force over the past decade.
It is true that Greece has combined its ever-tightening embrace of Israel with calls for the blockade of Gaza to be lifted. But it is impossible to take those calls seriously now that the Athens government has assisted Israel in thwarting protest against the very same blockade. Andreas Papandreou’s championing of Palestinian rights might have had some moral weight in the early 1980s. Three decades on, his son George has become a craven accomplice in maintaining the Israeli occupation.
·First published by The Electronic Intifada (www.electronicintifada.net), 13 July 2011.
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