Tag Archives: Spain

Spain: Breaking Up Is Hard To Do

Spain: Breaking Up Is Hard To Do

Dispatches From the EdgeConn Hallinan

Aug. 22, 2017

 

When the Catalans goes to the polls Oct. 1, much more than independence for Spain’s restive province will be at stake. In many ways the vote will be a sounding board for Spain’s future, but it is also a test of whether the European Union—divided between north and south, east and west—can long endure.

 

In some ways, the referendum on Catalan independence is a very Spanish affair, with grievances that run all the way back to Catalonia’s loss of independence in the War of the Spanish Succession (1701-1714). But the Catalans lost more than their political freedom when the combined French and Spanish army took Barcelona, they lost much of their language and culture, particularly during the long and brutal dictatorship of Francisco Franco from 1939 to 1975.

 

The current independence crisis dates back to 2010, when, at the urging of the rightwing Popular Party, the Spanish Constitutional Court overturned an autonomy agreement that had been endorsed by the Spanish and Catalan parliaments. Since then, the Catalans have elected a pro-independence government and narrowly defeated an initiative in 2014 calling for the creation of a free republic. The Oct. 1 vote will re-visit that vote.

 

But the backdrop for the upcoming election has much of Europe looking attentively, in part because there are other restive independence movements in places like Scotland, Belgium and Italy, and in part because many of the economic policies of the EU will be on the line, especially austerity, regressive taxation, and privatization of public resources as a strategy for economic recovery.

 

When the economic meltdown of 2008 struck, there were few countries harder hit than Spain. At the time Spain had a healthy debt burden and a booming economy, but one mainly based on real estate speculation fed by German, Austrian, French, British and U.S. banks. Real estate prices ballooned 500 percent. Such balloons are bound to pop, and this one did in a most spectacular fashion, forcing Spain to swallow a bailout from the EU’s “troika”—the International Monetary Fund, the European Commission, and the European Bank.

 

The price of the bailout—the bulk of which went to pay off the banks whose speculation had fed the bubble in the first place—was a troika-enforced policy of massive austerity, huge tax hikes, and what one commentator called “sado-monetarism.” The results were catastrophic. The economy tanked, unemployment rose to 27 percent—over 50 percent for youth—and some 400,000 people were forced to emigrate.

 

While the austerity bred widespread misery, it also jump-started the Left Podemos Party, now the third largest in the Spanish parliament and currently running neck and neck with the Spanish Socialist party. Podemos-allied mayors control most of Spain’s largest cities, including Madrid, Valencia, and Barcelona.

 

In the 2015 election the ruling Popular Party lost its majority and currently rules as a minority party, allied with the conservative Catalan Ciudadanos Party and the main Basque party.

 

Needless to say, the PP’s control of Spain is fragile.

 

Starting in 2014 the Spanish economy began to grow, unemployment came down, and Spain seemed on its way back to economic health. Or at least that is the story the Popular Party and the EU is peddling.

 

The economy is the fastest growing in the EU, averaging around 3 percent a year. Next year projections are that it will grow 2.5 percent. Unemployment has dropped from 28 percent—50 percent for youth—to just over 17 percent.

 

But youth unemployment is at 37 percent, the second highest in Europe, and wages have still not caught up to where they were before the 2008 crisis. Spain is adding some 60,000 jobs a year, but many of them are temporary and without the same benefits as full time workers.

 

This temp worker strategy is continent-wide. Of the 5.2 million jobs created between 2013 and 2016, some 2.1 million were temporary.

 

The “recovery” is partly due to “labor reforms” that make it easier to layoff workers and replace full-time workers with “temps.” The shift has been from full-time workers protected by labor agreements to insecure temps with few protections. While that might make products cheaper and, thus, more attractive, it impoverishes the work force.

 

The strategy has become so widespread that economists have borrowed a term from physics to describe it: hysteresis.

 

Hysteresis describes a phenomenon where force permanently distorts what it is applied to.

 

“When unemployment is high for a long period of time, the shape of the labour market alters,” says Financial Times economist Claire Jones. “Would-be workers lose their skills, or find that technology or other economic forces make them obsolete. When the recovery comes, they are unable to join in. longer-term, or structural levels of unemployment set in and economy’s potential diminishes.”

 

In short, hysteresis produces an army of under and unemployed workers, whose living standards decline and who are economically marginalized. It also creates a vicious cycle that eventually dampens an economy. If governments are not spending—and under the strictures of the troika that is a given—and if consumers don’t have money, growth will eventually come to a halt, or at least become so anemic that it will be unable to absorb the influx of a younger generation.

 

Those marginalized communities and sectors of the economy are fertile ground for rightists who use xenophobia and racism to whip up anti-immigrant sentiment, as recent elections in Europe and the U.S. have demonstrated.

 

The vote by Britain to withdraw from the EU was put down to racism, but ,while anti-immigrant sentiment did play a role in the Brexit, that argument is a vast oversimplification of what happened. Much of the Brexit vote was not so much xenophobic as a repudiation of the major political parties that abandoned whole sectors of the country.

This particularly included the policies instituted by former Prime Minister Tony Blair and the “New Labour Party” that jettisoned its ties with the trade union movement and bought into the neo-liberal policies of free trade and globalization.

 

However, many of those Brexit voters turned around a few months later and backed the Labour Party and Jeremy Corbin’s left agenda. Given an opportunity to vote for ending the long reign of austerity, and for free university tuition, improved health services, and re-nationalizing transportation, they voted Labour, xenophobia be dammed.

 

Because the Spanish Popular Party claims that the current economic recovery is the direct result of its austerity and labor policies, other EU players are paying attention to the Catalan vote. If the vote goes badly for Catalan independence—and polls are currently showing it will be defeated 42 percent to 48 percent—the PP will claim a victory, not only over Catalan separatism, but also for the Party’s economic recovery strategy.

 

The French are certainly paying attention. Newly elected President Emmanuel Macron is preparing a similar program of cutbacks and labor “reforms” that he intends to ram through by executive decree, bypassing the French parliament.

 

A victory for the PP is also in the interests of the troika as proof that its recovery formula works, even though the track record of austerity as a cure has few success stories, and even those are questionable. For instance, low energy prices and a weak euro have more to do with the Spanish recovery than cutbacks in social services and the evisceration of labor codes.

 

The Popular Party should be riding high these days, but in fact its poll numbers are declining. It is still the largest party in Spain, but that translates into only 31 percent of the voters. Between them, the Spanish Socialist Party and the leftist Podemos Party garner just short of 40 percent.

 

Part of the PP’s woes stem from the fact that many Spaniards recognize there is something sour about the recent “recovery,” but there are also the corruption charges leveled at the PP, charges that have even ensnared Mariano Rajoy. The Prime Minister was recently forced to testify in a bribery and fraud case against some leading members of his Party.

 

While the Socialists have also been tarred with the corruption brush, the current case has riveted the public’s attention because some of it reads like a script from the Sopranos. The key defendant is Francisco Correa, who likes to be called Don Vito, Marlon Brando’s character in The Godfather. Two of his associates are known as The Moustache and The Pearl. Correa and 10 others have already been sentenced to prison for fraud and bribery, but Correa is also on trial for setting up a slush fund. Rajoy testified in that trial, although so far the Prime Minister is not accused of any wrongdoing.

 

A survey by the CIS Institute found that almost 50 percent of Spanish voters are deeply concerned with corruption, and that sentiment is dragging the Popular Party down.

 

The left and center-left parties are split on the Catalan question. Both oppose separatism, but they come at it very differently. Podemos is urging a “no” vote Oct. 1, but it supports the right of the Catalans to have their initiative. That position, along with Podemos’s progressive political program, has made it the number one party in Catalonia.

 

The Socialists have traditionally opposed Catalan separatism, and even the right of the Catalans to vote on the issue. But that position has softened since a major upheaval in the party that began last year when the Socialist’s right wing pulled off a coup and drove the Party’s left wing out of power. But the Socialist right-wingers made a major mistake by voting to allow Rajoy to form a minority government and continue the austerity policies. That move was too much for the Party’s rank and file, who threw out the right this past May and reinstated the Socialist’s left wing.

 

The Socialists’ willingness to consider allowing the initiative is partly a matter of simple math. The Party’s opposition to Catalan independence has resulted in it being virtually annihilated in the province, and no Socialist Party has ever come to power in Spain without winning Catalonia.

 

Whatever happens Oct. 1, Spain is not going to be the same country it has been since the restoration of democracy in 1977. The old two-party domination of the government is over, and there is general recognition that there has to be some shift on the Catalan question. Even Rajoy—who has hinted that he might consider using the military to block the Oct. 1 vote, or ruling the province from Madrid—has offered to give Barcelona the same deal the Basque province have. That would include collecting taxes, something Catalans now don’t have the right to do.

 

There is no little irony in Rajoy’s offer. When the Catalans made that same offer in 2012, Rajoy and the Popular Party wouldn’t even discuss the proposal. It is a measure of how the issue has evolved that Rajoy is now making the same offer as the Catalans did a half decade ago.

 

Polls—weak reeds to lean on these days—show the initiative going down to defeat, but the situation is fluid. Rajoy’s recent proposal and the softening of the Socialist Party’s position might convince the majority of Catalans that some kind of deal can be cut. Young Catalans favor independence, but older Catalans are uncomfortable with what will be a leap into darkness.

 

On the other hand, if Rajoy comes down hard it will likely bolster the “no” vote.

 

The European Union is in a crisis of its own making. By blocking its members from pursuing different strategies for confronting economic trouble and, instead, insisting on one-size-fits-all strictures, the trade group has set loose centrifugal forces that now threaten to tear the organization apart.

 

The eastern members of the EU have charted a course that throttles democracy in the name of stability. The southern members of the bloc are struggling to emerge from austerity regimes that have inflicted widespread, possibly permanent, damage to their economies. Even members with powerful economies, like Germany and France, are trying to keep the lid on the desire of their people for a better standard of living.

 

The Catalan vote reflects many of these crosscurrents, and is likely to be felt far beyond the borders of Iberia.

 

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The European Union and the Left

The EU & the Left

Dispatches From The edge

Jan. 10, 2017

 

When European Union President Jean-Claude Juncker addressed the European Parliament in Strasbourg this past September, he told them the organization was facing an “existential crisis” and “national governments so weakened by the forces of populism and paralyzed by the risk of defeat in the next election.”

 

Indeed it has been a bad year for the huge trading group:

  • The “Breixit,” or the United Kingdom’s vote to withdraw.
  • Rome’s referendum to amend the country’s constitution was trounced, and several Italian banks are in deep trouble.
  • The austerity policies of the EU have kept most of its members’ economies either anemic or dead in the water. Even those showing growth, like Ireland and Spain, have yet to return to where they were before the 2008 economic melt down. Between 2007 and 2016, purchasing power fell 8 percent in Spain and 11 percent in Italy,

 

It is also true that number of national governments—in particular those in Germany and France—are looking nervously over their shoulders at parties to their right.

 

But the crisis of the EU does not spring from “populism,” a term that many times obscures more than it reveals, lumping together neo-fascist parties, like France’s National Front and Germany’s Alternative for Germany, with left parties, like Spain’s Podemos. Populism, as Juncker uses it, has a vaguely atavistic odor to it: ignorant peasants with torches and pitchforks storming the citadels of civilization.

 

But the barbarians at the EU’s gate did not just appear out of Europe’s dark forests like the Goths and Vandals of old. They were raised up by the profoundly flawed way that the Union was established in the first place, flaws that did not reveal themselves until an economic crisis took center stage.

 

That the crisis is existential, there is little doubt. In fact, the odds are pretty good that the EU will not be here in its current form a decade from now—and possibly considerably sooner. But Juncker’s solutions include a modest spending program aimed at business, closer military ties among the 28—soon to be 27—members of the organization, and the creation of a “European Solidarity Corps” of young volunteers to help out in cases of disasters, like earthquakes. But there was nothing to address the horrendous unemployment rate among young Europeans. In short, rearranging the Titanic’s deck chairs while the ice looms up to starboard.

 

But what is to be done is not obvious, nor is how one goes about reforming or dismantling an organization that currently produces a third of the world’s wealth. The complexity of the task has entangled Europe’s left in a sharp debate, the outcome of which will go a long way toward determining whether the EU—now a house divided between wealthy countries and debt-ridden ones—can survive.

 

It is not that the European left is strong, but it is the only player with a possible strategy to break the cycle of debt and low growth. The politics of racism, hatred of immigrants, and reactionary nationalism espoused by the National Front, the Alternative For Germany, Greece’s Golden Dawn, Denmark’s People’s Party, and Austria’s Freedom Party, will not generate economic growth, any more than Donald Trump will bring back jobs for U.S. steelworkers and coal miners and “make America great again.”

 

Indeed, if the anti-immigrant Alternative for Germany Party gets its way, that country will be in deep trouble. German deaths currently outnumber births by 200,000 a year, a figure that is accelerating. According to the Berlin Institute for Population and Development, to have a sufficient working-age population that can support a stable pension system, the country will require an influx of 500,000 immigrants a year for the next 35 years.

 

Many other European countries are in the same boat.

 

There are several currents among the European left, ranging from those who call for a full withdrawal, or “Lexit,” to reforms that would democratize the organization.

 

There is certainly a democracy deficit in the EU. The European Parliament has little power, with most key decisions made by the unelected “troika”—the International Monetary Fund (IMF), the European Central Bank, and the European Commission. The troika’s rigid debt policies mean members have lost the ability to manage their own economies or challenge the mantra that debt requires austerity, even though that formula has clearly been a failure.

 

As economists Markus Brunnermeier, Harold James, and Jean-Pierre Landau point out in their book “The Euro and the Battle of Ideas,” growth is impossible when consumers, corporations, and governments all stop spending. The only outcome for that formula is misery and more debt. Even the IMF has begun to question austerity.

 

But would a little more democracy really resolve this problem?

 

Nobel Laureate Joseph Stiglitz, a long-time critic of austerity, argues that while the EU does indeed need to be democratized, a major problem is the common currency. The euro is used by 19 of the EU’s 28 members that constitute the Eurozone.

 

Stiglitz argues that the Euro locked everyone into the German economic model of modest wages coupled with a high power export economy. But one size does not fit all, and when the economic crisis hit in 2008, that became painfully obvious. Those EU members that used a common currency were unable to devalue their currency—a standard economic strategy to deal with debt.

 

There is also no way to transfer wealth within the EU, unlike in the U.S. Powerful economies like California and New York have long paid the bills for states like Louisiana and Mississippi. As Stiglitz points out, “a lack of shared fiscal policy” in the EU made it “impossible to transfer wealth (via tax receipts) from richer states to poorer ones, ensuring growing inequality between the core and the periphery of Europe.”

 

Stiglitz proposes a series of reforms, including economic stimulus, creating a “flexible” euro, and removing the rigid requirement that no country can carry a deficit of more than 3 percent of GDP.

 

Former Greek Finance Minister Yanis Varoufakis, however, argues that the Union “is not suffering from a democratic deficit that can be fixed with a ‘little more democracy’ and a few reforms here and there.” The EU, he says, “was constructed intentionally as a democracy-free zone” to keep people out of decision-making process and to put business and finance in charge.

 

Is the machine so flawed that it ought to be dismantled? That is the opinion of British Pakistani writer and journalist Tariq Ali and King’s College Reader in politics, Stathis Kouvelakis, both whom supported the Brexit and are urging a campaign to hold similar referenda in other EU member countries.

 

But since that that position is already occupied by the xenophobic right, how does the left argue for Lexit without entangling itself with racist neo-Nazis? Varoufakis, a leading member of the left formation, DiEM25, asks whether “such a campaign is consistent with the Left’s fundamental principles” of internationalism?

 

He also argues that a Lexit would destroy the EU’s common environmental policy and the free movement of members, both of which find strong support among young people.

 

Is re-establishing borders and fences really what the left stands for, and wouldn’t re-nationalizing the fossil fuel industry simply turn environmental policies over to the multi-national energy giants? “Under the Lexit banner, in my estimation,” says Varoufakis, “the Left is heading for monumental defeats on both fronts.”

 

DiEM25 proposes a third way to challenge the disastrous policies of the EU, while avoiding a return to borders and “every country for itself” environmental policies. What is needed, according to Varoufakis, is “a pan-European movement of civil and governmental disobedience” to create a “democratic opposition to the way European elites do business at the local, national and EU levels.”

 

The idea is to avoid the kind of trap that Greece’s left party, Syriza, has found itself in: running against austerity only to find itself instituting the very policies it ran against.

 

What DiEM25 is proposing is simply to refuse to institute EU austerity rules, a strategy that will only work if the resistance is EU-wide. When Greece tried to resist the troika, the European Central Bank threatened to destroy the country’s economy, and Syriza folded. But if resistance is widespread enough, that will not be so easy to do. In any case, he says, “the debt-deflationary spiral that drives masses of Europeans into hopelessness and places them under the spell of bigotry” is not acceptable.

 

DiEM25 also calls for a universal basic income, a proposal that is supported by 64 percent of the EU’s members.

 

Portugal’s left has had the most success with trying to roll back the austerity measures that caused widespread misery throughout the country. The center-left Socialist Party formed a coalition with the Left Bloc, and the Communist/Green Alliance put aside their differences, and restored public sector wages and state pensions to pre-crisis levels. The economy only grew 1.2 percent in 2016 (slightly less than the EU as a whole), but it was enough to drop unemployment from 12.6 percent to 10 percent. The deficit has also declined.

 

Spain’s Podemos and Jeremy Corbyn of the British Labour Party have hailed the Portuguese left coalition as a model for an anti-austerity alliance across the continent.

 

Debt is the 800-pound gorilla in the living room. Most of the debt for countries like Spain, Portugal and Ireland was not the result of spendthrift ways. All three countries had positive balances until the real estate bubble pumped up by private speculators and banks burst in 2008, and taxpayers picked up the pieces. The “bailouts” from the troika came with onerous austerity measures attached, and most of the money went straight to the banks that had set off the crisis in the first place.

 

For small or underdeveloped countries, it will be impossible to pay off those debts. When Germany found itself in a similar position after World War II, other countries agreed to cut its debt in half, lower interest rates and spread out payments. The 1952 London Debt Conference led to an industrial boom that turned Germany into the biggest economy in Europe. There is no little irony in the fact that the current Berlin government is insisting on applying economic policies to debt-ridden countries that would have strangled that German post-war recovery had they not been modified.

 

It is possible that the EU cannot be reformed, but it seems early in the process to conclude that. In any case, DiEM25’s proposal to practice union-wide civil disobedience has not really been tried, and it certainly has potential as an organizing tool. It is already being implemented in several “rebel” cities like Barcelona, Naples, Berlin, Bristol, Krakow, Warsaw and Porto, where local mayors and city councils are digging in their heels and fighting back.

 

For that to be successful throughout the EU, however, the left will have to sideline some of the disputes that divide it and reach out to new constituencies. If it does not, the right has a dangerous narrative waiting in the wings.

 

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Dispatches News Awards for 2016

Dispatches 2016 News Awards

Dispatches From The Edge

Dec. 21, 2016

 

Each year Dispatches From the Edge gives awards to individuals, companies and governments that make reading the news a daily adventure. Here are the awards for 2016.

 

The Golden Lemon Award had a number of strong contenders in 2016, including:

  • General Atomics for its MQ-9 Reaper armed drone, which has a faulty starter-generator that routinely shorts out the aircraft. So far, no one can figure out why. Some 20 were either destroyed or sustained major damage last year. The Reapers costs $64 million apiece.
  • Panavia Aircraft Company’s $25 billion Tornado fighter-bomber that can’t fly at night because the cockpit lights blind the pilot. A runner up here is the German arms company Heckler & Koch, whose G-36 assault rifle can’t shoot straight when the weather is hot.
  • The British company BAE’s $1.26 billion Type 45 destroyer that breaks down “whenever we try to do too much with them,” a Royal Navy officer told the Financial Times. Engaging in combat, he said, would be “catastrophic.”

 

But the hands down winner is Lockheed Martin, builder of the F-35 Lightning stealth fighter. At a cost of $1.5 trillion it is the most expensive weapons system in U.S. history. Aside from numerous software problems, pilots who try to bail out risk decapitation. The Director of Operational Test and Evaluation recently released an assessment of the F-35’s performance that states, “In an opposed combat scenario,” the “aircraft would need to avoid threat engagement and would require augmentation by other friendly forces.” Translation: “If the bad guys show up, run for your life and pray your buddies arrive to bail you out of trouble.”

Lockheed Martin also gets an Honorable Mention for its $4.4 billion littoral combat ship, the USS Zumwalt, which had to be towed out of the Panama Canal. The ship also leaks, as do other sister littoral combat ships, including the USS Freedom.

Note: U.S. students are currently $1.3 trillion in debt.

 

The Dr. Frankenstein Award to the U.S. Air Force for zapping the brains of drone operators with electricity in order to improve their focus. The electrical stimulation was started after scientists discovered that feeding the pilots Provigil and Ritalin was a bad idea, because both drugs are highly addictive and Provigil can permanently damage sleep patterns. Nika Knight of Common Dreams reports that “European researchers who studied the brain-zapping technique years ago warned that the technology is, in fact, extremely invasive, as its effects tend to ‘spread from the target brain area to neighboring areas.’”

 

The Golden Jackal Award goes to United Kingdom oil companies BP and Royal Dutch Shell for their lobbying campaign following the U.S. invasion of Iraq. Executives of the companies met with UK Trade Minister Baroness Elizabeth Symons five months before the U.S. attack to complain that the Americans were cutting them out of the post-war loot.

 

According to Parliament’s 2016 Chilcot Report on the Iraq War, Symons then met with Prime Minister Tony Blair’s Foreign Secretary, Jack Straw, to tell him it was a “matter of urgency,” and that “British interests are being left to one side.” Straw dutifully told Blair to raise the issue “very forcefully” with President George W. Bush, because U.S. companies are “ruthless” and “will not help UK companies unless you play hardball with Bush.”

 

Runner up in this category is the Washington Post, which won a Pulitzer Prize in Public Service journalism for publishing Edward Snowden’s revelations about illegal U.S. wiretapping and then called for the whistleblower to be charged with espionage. Glenn Greenwald—who met with Snowden and wrote stories about the scandal for The Guardian—said “The Washington Post has achieved an ignominious feat in US media history: the first-ever paper to explicitly editorialize for the criminal prosecution of its own source…. That is warped beyond anything that can be described.”

 

The Thin Skin Award is a five-way tie among the governments of Spain, India, Israel, Turkey and Thailand:

 

*Spain-Under Spain’s 2015 public security law—nicknamed the “gag rule”—police are trying to fine a woman for carrying a bag on which was written “All Cats Are Beautiful.” The police say that the writing and color of the bag is “traditionally associated with insults to the police” and that the four capital letters really mean “All Cops Are Bastards.”

 

*India: The rightwing government of Narendra Modi is proposing a law that would make it illegal to publish any map indicating that Kashmir is disputed territory divided between India and Pakistan. Currently such maps are censored by either preventing the publication’s distribution or covering the maps with black stickers. The new law would fine violators $15 million and jail them for up to seven years.

 

*Israel: The Ministry of Education has removed a novel—“Borderlife” by Dorit Rabinyan about a romance between a Jewish woman and a Palestinian man—from the list of required reading for Hebrew high schools literature classes. Education official Dalia Fenig says, “Marrying a non-Jew is not what the education system is educating about.”

 

Turkey: In the aftermath of July’s failed coup, novelist and journalist Ahmet Alten, and his brother Mehmet, a professor of economics, were arrested for “colluding with the military” even though both men are known to be sharp critics of the Turkish armed forces. The prosecutor had no evidence against the men, but charged them with giving “subliminal” and “subconscious” messages backing the coup during a TV talk show. The authorities also closed down the Smurfs, Maya the Bee, and SpongeBob SquarePants, because the cartoon characters were speaking Kurdish on Zarok TV, a station that does programming in the Kurdish language. According to Al-Monitor, “Many social media users went into lampoon mode, asking, “Who is the separatist: SpongeBob or Papa Smurf?”

 

*Thailand: Patnaree Chankij, a 40-year old maid, is to be tried by a military court for breaking the country’s lèse-majesté’ law that makes it a crime to insult the royal family or their pets. She replied “ja” (“yeah”) to a private post sent to her on Facebook. She did not agree with the post, comment on it, or make it public. One man is currently serving a 30-year sentence for posting material critical of the Thai royal family. Following the military coup two years ago, the authorities have filed 57 such cases, 44 of them for online commentary. One person was arrested for insulting the king’s dog.

 

The Cultural Sensitivity Award goes to Denmark, France, and Latvia.

 

The center-right Danish government, which relies on the racist Danish People’s Party to stay in government, passed a law that confiscates valuables, including jewels and cash, from refugees. Immigrants can only keep up to $1,455. The Danish town of Randers also required pork to be used in all public day care centers and kindergartens in what the Socialist People’s Party (SPP) charges is aimed at Muslims. “What do children need? Do they need pork? Actually not,” said Charlotte Molbaek, a Randers Town Council member from the SPP. “Children need grownups.”

 

Several French towns run by rightwing mayors have removed alternatives—like fish or chicken—from school menus when pork is served. On those days Muslim and Jewish children eat vegetables.

 

The rightwing government of Latvia is banning the wearing of full veils, in spite of that fact that, at last count, there were three such women in the whole country. Former Latvian president Vaira Vike-Freiberga told the New York Times, “Anybody could be under a veil or under a burqa. You could carry a rocket launcher under your veil.”

 

A runner up in this category is former National Security Advisor Condoleezza Rice, who, during a speech in Kiev, said that Ukrainians should stop complaining about the economic crisis that has gripped the country since the 2014 coup that overthrew President Viktor Yanukovych. “Anyone who believes that life is bad in Ukraine should go to Liberia, where the standard of living is much lower, and then you will be thankful.”

 

The Head In The Sand Award to British Prime Minister Theresa May for closing down the government’s program to study climate change. A co-winner is the conservative government of Australia that laid off 275 scientists from its climate change program. Some were rehired after an international petition campaign, however, the leading international researcher on sea levels, John Church was let go permanently.

 

In the meantime, the U.S. Air Force is spending $1 billion to build a radar installation in Kwajalein Atoll in the Marshall Islands. The Atoll is halfway between Australia and Hawaii and is only a few feet above sea level. It is estimated that sea levels will rise at least six feet by 2100, but the increase is moving far faster than scientists predicted. “The future does not look very good for those islands,” says Curt Storlazzi, and oceanographer with the U.S. Geological Service.

 

The Little Bo Peep Award to the U.S. Defense Department for being unable to account for $6.5 trillion in spending. Yes, that is a “T.” According to Mandy Smithberger, director of Straus Military Reform Project at the Project On Government Oversight, “Accounting at the Department of Defense is a disaster, but nobody is screaming about it because you have a lot of people in Congress who believe in more military spending.”

 

According to UK watchdog group Action on Armed Violence, the Pentagon also can’t account for 1.4 million guns shipped to Iraq and Afghanistan.

 

The CIA won some laurels in this category as well. According to an investigation by Al Jazeera and the New York Times, Jordanian intelligence operatives stole millions of dollars in U.S. weapons bound for Syria. Some of the guns were used to kill Americans at a police training school in Amman.

 

The Annie Oakley Award to the American firearms manufacturers and the National Rifle Association (NRA) for their campaign to arm kids. The guns for tots are lighter than regular firearms and have less recoil. They are also made in “kid-friendly” colors, like pink.

 

Iowa recently passed legislation making it legal for any minor to own a pistol. According to state Representative Kirsten Running –Marquardt, the law “allows for one-year olds, two-year olds, three-year olds, four-year olds to operate handguns,” adding, “We do not need a militia of toddlers.”

 

The Violence Policy Center reports, “As household gun ownership has steadily declined and the primary gun market of white males continues to age, the firearms industry has set its sights on America’s children. Much like the tobacco industry’s search for replacement smokers, the gun industry is seeking replacement shooters.”

 

If your two-year old is packing and really wants that Star Wars droid, Dispatches recommends you buy it.

 

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Europe’s New Barbarians

Europe’s New Barbarians

Dispatches From The Edge

Aug. 28, 2015

 

On one level, the recent financial agreement between the European Union (EU) and Greece makes no sense: not a single major economist thinks the $96 billion loan will allow Athens to repay its debts, or to get the economy moving anywhere but downwards. It is what former Greek Economic Minister Yanis Varoufakis called a “suicide” pact, with a strong emphasis on humiliating the leftwing Syriza government.

 

Why construct a pact that everyone knows will fail?

 

On the Left, the interpretation is that the agreement is a conscious act of vengeance by the “Troika”—the European Central Bank, the European Commission and the International Monetary Fund—to punish Greece for daring to challenge the austerity program that has devastated the economy and impoverished its people. The evidence for this explanation is certainly persuasive. The more the Greeks tried to negotiate a compromise with the EU, the worse the deal got. The final agreement was the most punitive of all. The message was clear: rattle the gates of Heaven at your own peril.

 

It was certainly a grim warning to other countries with strong anti-austerity movements, in particular Portugal, Spain and Ireland.

 

But austerity as an economic strategy is about more than just throwing a scare into countries that, exhausted by years of cutbacks and high unemployment, are thinking of changing course. It is also about laying the groundwork for the triumph of multinational corporate capitalism and undermining the social contract between labor and capital that has characterized much of Europe for the past two generations.

 

It is a new kind of barbarism, one that sacks countries with fine print.

 

Take Greece’s pharmacy law that the Troika has targeted for elimination in the name of “reform.” Current rules require that drug stores be owned by a pharmacist, who can’t own more than one establishment, that over the counter drugs can only be sold in drug stores, and that the price of medicines be capped. Similar laws exist in Spain, Germany, Portugal, France, Cyprus, Austria and Bulgaria, and were successfully defended before the European Court of Justice in 2009.

 

For obvious reasons multinational pharmacy corporations like CVS, Walgreen, and Rite Aid, plus retail goliaths like Wal-Mart, don’t like these laws, because they restrict the ability of these giant firms to dominate the market.

 

But the pharmacy law is hardly Greeks being “quaint” and old-fashioned. The U.S. state of North Dakota has a similar law, one that Wal-Mart and Walgreens have been trying to overturn since 2011. Twice thwarted by the state’s legislature, the two retail giants recruited an out-of-state signature gathering firm and poured $3 million into an initiative to repeal it. North Dakotans voted to keep their pharmacy law 59 percent to 41 percent.

 

The reason is straightforward: “North Dakotans have pharmacy care that outperforms care in other states on every key measure, from cost to access,” says author David Morris. Drug prices are cheaper in North Dakota than in most other states, rural areas are better served, and there is more competition.

 

The Troika is also demanding that Greece ditch its fresh milk law, which favors local dairy producers over industrial-size firms in the Netherlands and Scandinavia. The EU claims that, while quality may be affected, prices will go down. But, as Nobel Laureate economist Joseph Stiglitz found, “savings” in efficiency are not always passed on to consumers.

 

In general, smaller firms hire more workers and provide more full time jobs than big corporations. Large operations like Wal-Mart are more efficient, but the company’s workforce is mostly part time and paid wages so low that workers are forced to use government support services. In essence, taxpayers subsidize corporations like Wal-Mart.

 

A key demand of the Troika is “reform” of the labor market to make it easier for employers to dismiss workers, establish “two-tier” wage scales—new hires are paid less than long time employees—and to end industry-wide collective bargaining. The latter means that unions—already weakened by layoffs—will have to bargain unit by unit, an expensive, exhausting and time consuming undertaking.

 

The results of such “reforms” are changing the labor market in places like Spain, France, and Italy.

 

After years of rising poverty rates, the Spanish economy has finally begun to grow, but the growth is largely a consequence of falling energy prices, and the jobs being created are mostly part-time or temporary, and at considerably lower wages than pre-2007. As Daniel Alastuey, the secretary-general of Aragon’s UGT, one of Spain’s largest unions told the New York Times, “A new figure has emerged in Spain: the employed person who is below the poverty threshold.”

 

According to the Financial Times, France has seen a similar development. In 2000, some 25 percent of all labor contracts were for permanent jobs. That has fallen to less than 16 percent, and out of 20 million yearly labor contracts, two-thirds are for less than a month. Employers are dismissing workers, than re-hiring them under a temporary contract.

 

In 1995, temporary workers made up 7.2 percent of the jobs in Italy. Today, according to the Financial Times, that figure is 13.2 percent, and 52.5 percent for Italians aged 15 to 24. It is extremely difficult to organize temporary workers, and their growing presence in the workforce has eroded the power of trade unions to fight for better wages, working conditions and benefits.

 

In spite of promises that tight money and austerity would re-start economies devastated by the 2007-2008 financial crisis, growth is pretty much dead in the water continent-wide. And economies that have shown growth have yet to approach their pre-meltdown levels. Even the more prosperous northern parts of the continent are sluggish. Finland and the Netherlands are in a recession.

 

There is also considerable regional unevenness in economic development. Italy’s output contracted 0.4% in 2014, but the country’s south fell by 1.3%. Income for southern residents is also plummeting. Some 60% of southern Italians live on less than $13,400 a year, as compared to 28.5% of the north. “We’re in an era in which the winners become ever stronger and weakest move even further behind,” Italian economist Matteo Caroli told the Financial Times.

 

That economic division of the house is also characteristic of Spain, While the national jobless rate is an horrendous 23.7 percent, the country’s most populous province in the south, Andalusia, sports an unemployment rate of 41 percent. Only Spanish youth are worse off. Their jobless rate is over 50 percent.

 

Italy and Spain are microcosms for the rest of Europe. The EU’s south—Italy, Portugal, Spain, Greece, Cyprus, and Bulgaria—are characterized by high unemployment, deeply stressed economies, and falling standards of living. While the big economies of the north, France, Great Britain, the Netherlands, and Germany, are hardly booming—the EU growth rate over all is a modest 1.6 percent—they are in better shape than their southern neighbors.

 

Geographically, Ireland is in the north, but with high unemployment and widespread poverty brought on by the austerity policies of the EU, it is in the same boat as the south. Indeed, Greek Finance Minister Euclid Tsakalotos told the annual conference of the leftwing, anti-austerity party Sinn Fein that Greece considered the Irish “honorary southerners.”

 

Austerity has become a Trojan horse for multinational corporations, and a strategy for weakening trade unions and eroding democracy. But it is not popular, and governments that have adopted it have many times found themselves driven out of power or nervously watching their polls numbers fall. Spain’s rightwing Populist Party is on the ropes, Sinn Fein is the second largest party in Ireland, Portugal’s rightwing government is running scared, and polls indicate that the French electorate supports the Greeks in their resistance to austerity.

 

The Troika is an unelected body, and yet it has the power to command economies. National parliaments are being reduced to rubber stamps, endorsing economic and social programs over which they have little control. If the Troika successfully removes peoples’ right to choose their own economic policies, then it will have cemented the last bricks into the fortress that multinational capital is constructing on the continent.

 

In 415 BC, the Athenians told the residents of Milos that they had no choice but to ally themselves with Athens in the Peloponnesian War. “The powerful do whatever their power allows and the weak simply give in and accept it,” Thucydides says the Athenians told the island’s residents. Milos refused and was utterly destroyed. The ancient Greeks could out-barbarian the barbarians any day.

 

But it is not the 5th century BC, and while the Troika has enormous power, it is finding it increasingly difficult to rule over 500 million people, a growing number of whom want a say in their lives. Between now and next April, four countries, all suffering under the painful stewardship of the Troika, will hold national elections: Portugal, Greece, Spain and Ireland. The outcomes of those campaigns will go a long way toward determining whether democracy or autocracy is the future of the continent.

 

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