Saturday, 14 October 2017

Highlights of events and news in the EU in the week ending on 14 October



Independence: divisions in Barcelona, cooling-off in Madrid, Halloween in Brussels?

The political sort of Cataluña (pronounced Catalunya) remained last week at the top of the news from Spain. On Monday, the head of the separatist coalition was expected to declare the independence of the Catalan province, following the victory of his political movement in the 1st October referendum. He did not, however, cross that line, preferring to launch to the central government, in Madrid, an invitation to discuss the modalities of the separation.

The immediate reaction of the Spanish Prime Minister was to demand a clear position from Barcelona: are the Catalans declaring independence or not? His question was assorted with a threat: in the affirmative, he would trigger Article 155 of the National Constitution, which provides for prohibition of sedition by an autonomous province and grants to the central government the powers to use the armed forces in order to impose order, and to abolish the autonomy of the dissenting entity. This would mean Catalunya returning to the status it had during the dictatorship years of General Franco (1939-1975).

Constitutionalists on both sides were quick to remark that applying Article 155 is not as simple as some politicians believe and that it might bring the whole country into chaos and provoke the reaction of foreign states and of the international financial community.

Meanwhile, the views of the independentist parties are increasingly split among those who want an immediate implementation of the result of the referendum and those who would prefer patience and a negotiated divorce with Madrid. The reasons for the latter are mostly economic: in the nine days after the vote more than 500 firms headquartered in Barcelona have announced their decision to relocate to Madrid, fearing that independence would cause rapid exit of the independent region from the Euro and commercial isolation from the EU.

Barcelona -- Avenida Gaudi


In fact, the Commission has been avoiding to take a clear position on Catalunya’s vote which favours independence. Its president Jean-Clause Juncker said on Friday that he was “very concerned” with the prospect of the Catalans splitting from Spain. He said that if it happened, other EU member states would experience similar events. “It is already difficult to govern a Union of 28 states, even 27…I don’t want to be in a position to have to deal with 98 members”, he added.

Catalunya had asked before the referendum for the Commission or the European Council to mediate between Barcelona and Madrid and find an amicable way for the separation. But Brussels had declined the request, saying that the only way for a Union institution to be involved was through an invitation to intervene by both conflicting parties. It should be reminded that Juncker had on 14 September declared that he would respect the result of the referendum, even if it meant independence for Catalunya.

A the end of the week, Madrid moderated its tone, after the central government admitted that it would have to revise downwards its projections for growth for 2018. It made allusions to the possibility of focusing the forthcoming negotiations with the break-out region on granting the latter more powers to manage its own financial income—a long standing point of tension between the parties.

Euro. Disunited Eastern Europe

While Spain and Catalunya are obviously moving apart, Juncker faces another strong headache. The Eastern members of the EU, who joined in 2004, 2007 and 2013 are in growing disagreement with one another on the emerging monetary policy of Brussels and of the leading powers of the Union.
French President Emmanuel Macron in September announced his plan to “deepen the Eurozone integration”, by enlarging it in order to have a common currency throughout the EU. Juncker echoed the intention, in his speech on the ‘State of the Union’ on 13 September:
“If we want the euro to unite rather than divide our Continent, then it should be more than the currency of a select group of countries. The euro is meant to be the single currency of the Union,” he concluded.
The more recent member states, Bulgaria, Croatia and Romania, have expressed their willingness to go along with the project. But other Eastern countries—the Czech Republic, Hungary and Poland—are sceptical, even hostile to the idea. Their current main concerns are their comparatively low and stagnating GDP per capita, migration, defence (looking at Russia), and terrorism. They are not necessarily against the common currency, but they resent any move by Brussels and Paris to impose their timing on them. Brexit has also added to their questioning of the true meaning of European Integration. Spirits are not likely to calm, as we are moving towards the elections of 2019 for the European Parliament.

German President: “Reconciliation, the European Model for Peace”

In Rome last weekend and Monday, for the commemoration of the 500th anniversary of the Reformation of the Church by the Protestants of Martin Luther (1517), the German President  Frank-Walter Steimeier seized the opportunity to remind to his audience that Europe has experienced devastating wars throughout its history, but has survived thanks to its prevailing culture of reconciliation.
“From Britain and Catalonia, to Poland and Greece […] it is clear the effect people’s emotions can have on politics,” he said. “Emotions and feelings are never secondary.”

And he added: 
“Reconciliation between Protestants and Catholics could be used as a model for coexistence in Europe.”

True. But reconciliation always followed conflict, such as the Thirty Years War (1618-1648), which put the Protestants and the Catholic against each other, causing tremendous casualties and massive displacements of populations. According to historians, Germany lost 20 percent of its people. Nevertheless, the ‘European Way’ still remains the best remedy for halting ethnic and religious hatred. Ideally, it should be adopted before, rather than after disaster!

February 1945, Yalta -- Charchill and Stalin
Reconciliation of interests, before the Cold War!


Competition. Commission’s New Target: Food Retail Distribution

The Commission has plans for a new war: ‘straiten up’ the food retail industry of the EU. Brussels is considering a series of laws to discipline the major supermarkets, which have been, apparently, abusing of their bargaining power in respect to the farming community.
On the Commission’s list: Tesco, Carrefour, Lidl, and a few others. Updates in the coming weeks.

EU farmers -- Never happy?
Credit for images above: Wikimedia Commons



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