NEWEUROPE19th Year of Publication | Number 1001 | 7 - 13 October, 2012 | € 3.50 www.neurope.eu

Croatia is very interested in South Streamand is waiting for a decision from Russiangas monopoly Gazprom on the route ofthe gas pipeline but any agreement withRussia on the project will not take prece-dence over EU law and follow full consul-tations with Brussels, Croatia's AssistantMinister of Economy Alen Leveric toldNew Europe.

“About South Stream, we are in contactwith the European Commission as are allother countries and we are waiting thedecision of the Russian part,” Leveric saidon the sidelines of the Balkan 2012 Oil &Gas Summit on 26 September in Athens.“We are very interested if South Streamwill pass through Croatia or we will be the

part of South Stream.” He reminded thatCroatia will enter the EU on 1 July 2013and therefore his country - like all thepotential partners of South Stream -“isdiscussing with the Commission and wewill do what we agree together with theEuropean Union”.

Croatia missed its first chance to be atransit country for South Stream when thepipeline was originally planned and settledfor a branch off in 2010 when Russia andCroatia signed an inter-governmentalagreement in Moscow to design, build,and operate a pipeline section of SouthStream on Croatia’s territory in the pre-sence of then-prime ministers VladimirPutin and Jadranka Kosor.

Unemployment in Europe has exceeded

25 million for the first time, with 11.4%

of the European labour force currently

without a job.

Unemployment has increased in 20

member states in the past year, with

youth unemployment continuing to be

major headache for Europe’s leaders. In

August this year, youth unemployment

(those out work between 15 and 24) was

at 22.7% in the EU and 22.8% in the

euro area, compared with 21.5% and

20.7% respectively at the same time last

year.

On 4 October, the European Council

endorsed the Commission’s April 2012

Employment package.

According to László Andor,

European Commissioner responsible

for Employment, Social Affairs and

Inclusion, “the Employment Package is

an important strategy providing a

medium-term agenda for EU and

Member State action to support a job-

rich recovery.”

The package sets as strategy priority to

encourage EU jobs recovery by “reducing

taxes on labour or supporting business

start-ups.” It also identifies that the areas

with the biggest job potential are green

economy, health services and ICT.

According to the Commission press

the package aims to boost the labour

market in order to become more dynam-

ic and resilient to economic change. The

proposals include stimulation of “inter-

nal flexibility to reduce job insecurity

and fiscal costs; establish decent and sus-

tainable wages and avoiding low-wage

traps; ensuring appropriate contractual

agreements to prevent the excessive use

of no standard ones; enhance higher

investment in skills.”

Regarding discussions on the

European Social Fund (ESF), the

Commissioner commented that he very

much welcomed the opportunity to dis-

cuss the Fund saying that “at least 25% of

cohesion policy – namely €84 billion –

should be devoted to human capital

investment by the ESF.”

Furthermore, on the negotiations

about the EU multiannual financial

framework (MFF), Andor warned on

the very real risk that EU investment in

human capital could be significantly

reduced. Therefore, he asked emphati-

cally from the Employment and Social

Policy Ministers to ensure consistency in

their respective national positions in

negotiations on the MFF and not

neglect the fundamental contribution of

the ESF to a job-rich recovery and

human capital investment.

More than 25 million Europeans jobless

Hungary may lose out toCroatia in South Stream transit

· Page 3 & 4

Unemployment hits 11.4%POLITICSGeorgian Dream coalitionwin election afterSaakashvili concedesdefeat gracefully...

·Page 8

·Page 12

FOR EUROPEGuy Verhofstadt, and DanielCohn-Bendit, have teamedup to write a new book, ‘ForEurope! A manifesto for apost-national revolution inEurope’... ·Page 6

ECONOMYThe Greek government has"agreed" to cut another €13.5billion from public spending.And it's still not enough forthe tyrannical troika...

·Page 7

ENVIRONMENTAs countries struggle to getout of the crisis, they need to“adjust and reform” theireconomies, according the EU’senvironment commissioner...

·Page 11

Activists of the SAT Andalucian trade union and their supporters march in Madrid on September 9,

2012 to denounce the Spanish government's handling of the economic crisis and its latest austerity

measures. In Andalucia, a region particularly hard hit by recession due to the collapse of the local

construction industry, the unemployment rate is nearly 34 percent, higher than Spain's overall rate of

roughly 25 percent. |AFP PHOTO/ PIERRE -PHILIPPE MARCOU

The Greek based EuropeanAgency for Network andInformation Security under DGCONNECT (former DG INFSO)had its Chief Accountant removedfollowing his reporting of financialirregularities. Only fulfilling his jobdescription Udo Helmbrecht tookthe matter up with the EuropeanCourt of Justice.

ENISA failure

·Page 32

No Sugar Added

in Paris

Pages 16-17

FASHION & STYLE

NE 10 YEARS AGO

German ministers prepare for the Chancellor's visit to Greece | EPA/MICHAEL KAPPELER

The Shooting Gallery

The cry of those protesting the imminent war in Iraq had the chant 'No blood for oil!' As things turned out there was plen-ty of blood but precious little oil. Ten years later we can see the terrible damage the conflict, courtesy of the US neo-con-servatives dogmatism, caused the world. Founded on duplicitous 'informers', dodgy dossiers and in an atmosphere of delu-sion where, as one British mandarin described, "the facts are being fitted around the policy". The US teamed up with theBritish and a rag tag bunch called 'the coalition of the winning' but one ambassador whose nation supplied soldiers pri-vately told New Europe that the term 'coalition of the coerced' was more appropriate. The EU had its own expansionistdreams, pursued through negotiation and, of course political compromise and convenience. There was a new air battle, withAeroflot dithering over joining international alliances. They eventually joined SkyTeam four years later.

The union of the stateAlejo Vidal Quadras is in belligerent mood. The Vice-President of the European Parliament has suggested thatthe national guard be sent into Catalonia to quell therowdy locals. The Spanish region, with breakaway preten-sions, is suffering, as is the rest of the country, through theeconomic crisis; though some local politicians believe thecrisis will be the catalyst for a wider independence strug-gle. Maybe, but the senior MEP is having none of it, andseemingly wants to back-up his desire for a unified Spainwith the use of force.Understandably, his comments have received condemna-tion. The President of the European Parliament, MartinSchulz, said that the remarks should not be assumed tohave been made within his official capacity, and instead“reflect a personal opinion made in a national politicalcontext”, thus avoiding calls for a resignation, and insteadsaid that his remarks should be assessed by the voters ofCatalonia. Guy Verhofstadt, former Belgian prime minister and nowsenior MEP leading the charge for a federalist Europe,said that the remarks, made on Spanish television, were a“relic of the past”. He said, with a suitable amount ofhyperbole, that “by citing the option of violent repressionagainst a section of the population they fall into the samecategory as the indefensible actions of those regimes in theArab Spring who have tried to suppress the will of thepeople by force. These kinds of careless remarks under-mine everything democrats have fought for over the past60 years and have no place in today's society”.Verhofstadt is currently embarking on a whistle-stop pro-moting his thoughts on the future of Europe, one whichoutlines a post-nationalist solution to the EU’s currentwoes. His partner in all this is Green leader Daniel Cohn-Bendit. Together they suggest they are leading a new rev-olution.European federalism, the kind which they are advocating,is not an easy sell, although, following on from its appar-ent endorsement by European Commission President, JoseManuel Barroso, in his recent state of the union address, ithas gained a certain prominence in European debate oflate. Of course, regional nationalism, like the kind emerg-ing in Catalonia, or, indeed, in Verhofstadt’s own country,may undermine somewhat the federalist argument, but theauthors of the book believe that it can lunch a new era inEuropean political thinking.This may be ambitious. The Irish Prime Minister, EndaKenny, was in Brussels on 3 October to meet Barroso, aswell as European Council President, Herman VanRompuy. Kenny was essentially there to discuss Ireland’sforthcoming presidential of the council, but, as noted bymost commentators, couldn’t help but bring up the Junesummit agreement, and the assurance that there would beno roll-back on the ‘no legacy assets’ clause. Citizens expectleaders to follow through on decisions, was the quotedstance, one which seemingly targeted the leaders ofFinland and the Netherlands, both of whom agreed to onething in Brussels, and denounced it outside, much to thechagrin of Barroso and Van Rompuy. Both EU leadersmade public statements assuring Kenny that agreed com-mitments would be honoured.Both Mark Rutte, the Dutch prime minister, and JyrkiKatainen, his Finnish equivalent, feared their respectiveelectorates as much as their European peers, it seemed.Whether or not federalism, which favours commitment to ashared Europe rather than national interests, is the way toavoid such contrary attitudes is a debatable point. But soon-er or later, one way or another, the choice needs to be made.

MANAGING EDITOR

Alia Papageorgiou alia@neurope.eu

SENIOR EDITORIAL TEAM

Kostis Geropoulos (Energy & Russian Affairs)

kgeropoulos@neurope.eu

Cillian Donnelly (EU Affairs)cdonnelly@neurope.eu

Andy Carling (EU Affairs)

acarling@neurope.eu

Ariti Alamanou (Legal Affairs)

aalamanou@neurope.eu

Louise Kissa (Fashion)

lkissa@neurope.eu

Alexandra Coronakis (Columnist)

acoronaki@neurope.eu

DIRECTOR

Alexandros Koronakisakoronakis@neurope.eu

EXECUTIVE LAYOUT PRODUCER

Suman Haque

suman@neurope.eu

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NEWEUROPE

© 2012 New Europe all rights reserved. No part of this publication may be reproduced, stored ina retrieval system, or transmitted in any form by any means, electronic or otherwise, withoutexpress permission. The Publishers accept no liability for third party views published, nor damagecaused by reading, viewing or using our content. All information is correct at the time of going toprint, we accept no liabilities for consequent changes.

ISSN number: 1106-8299

02NEW EUROPE7 - 13 October, 2012

ANALYSIS

SPAINSpain´s budget cuts are adding to the unem-

ployment figures, achieving a total number of4,705,279 people without a job in the country,according to the last study published by theMinistry of Employment.

In September, the number of jobless citizensaugmented 1,72%, over passing again the 4,7million barrier after three months. In compari-son with the same period last year, the unem-ployment has grown 11,36% and there are26,455 more people without job than in 2011,according to the ministry.

The service sector was the only one that reg-istered an augmentation, due to the end of thesummer period. Therefore, the number of un-employed citizens increased 4,339, giving a totalnumber of 148,543 jobless in this segment ofthe Spanish society.

GREECEGreece's unemployment rate in June 2012

was the second highest in Europe followingonly that of Spain and touching 24.4 % forthose under 25 years of age the statistic breaksall records and hits more than half of the popu-lation of that age at 55.4 % in June 2012.

On 2 October following meetings betweenthe European Commission and European Cen-tral representatives and the International Mon-etary Foundation in Athens the Minister ofEmployment, welfare and social security Ioan-nis Vroutsis stated that discussion on setting aminimum wage was revisited, guidelines fromthe International Labor Organisation on activepolicy to handle the high youth unemploymentand employment, they also touched upon thesubject of cuts to payouts in case of terminationsa topic the Greek government says it is not asyet willign to discuss.

Since the beginning of the austerity meas-ures to arrive at sums requested in order to payback the deficit debt Greece has accrued the so-cial economy has almost come to a standstill.Today up to 70% of the business in centralAthens have closed, immigration out of thecountry has increased and a move to ruralGreece has been noted.

IRELANDIreland, on of the Eurozone’s troubled

economies, recorded a slight decrease in thenumber of people claiming unemployment ben-efit in September 2012 compared to the previ-ous month.

According to the Central Statistics Office,435, 220 were unemployed in the country inSeptember, a decrease of 400 from August. Thestandard unemployment rate for Septemberstood at 14.8%, not change from August, but anincrease of 0.4% from September 2011.

Eurostat, the EU statistics office, records Ire-land’s unemployment rate at 15%, above boththe EU27 (10.5%) and Eurozone (11.4%) av-erage. Youth unemployment (those out of work

aged between 15 and 24) is around 30.5%, rep-resenting 11.7% of the labour force.

PORTUGALIn 2011, Portugal recorded one of the highest

increases in the number of unemployed in Eu-rope, and 2012 figures show that along withCyprus, Greece ans Spain, Portugal againrecorded one of the highest increases with15.9% out of work in August 2012, comparedwith 12.7% at the same time last year. As itstands, Portugal has the third highest unem-ployment rate in Europe, behind Greece andSpain.

Figures for the final quarter of 2011 showthat youth unemployment in Portugal (34.1%)was also one of the highest in the EU, be-hind.Lithuania, Greece and Spain, and repre-senting 11.7% of the workforce.

Unemployment was at 15.9% in August, pre-dicted by the government to increase to 16.4%next year before falling. Finance Minister VitorGaspar said that the situation was “worrysome”but added, “the government expects to see a2013 drop in employment from 1%to 1.7%."

The number of people out of work is 1.393million. Under normal circumstances unem-ployment falls in the Summer due to tourism.

Youth unemployment, those under 25, is at analarming 35.9%.

UKUnemployment in the UK stands at 8.1% in

the three months to July, some 2.59 million peo-ple, a drop of 0.1% on the preceding threemonths.

In the same period, youth unemployment, ofthose between 16 and 24, increased by 7,000and remains at over a million. EmploymentMinister Mark Hoban said, "We're not com-placent about youth unemployment - we needto do more to get young people into work."

Over 900,000 have been unemployed for ayear.

Unemployment has trended slowly downsince hitting a peak of 2.7 million at the end of2011, following the financial crisis and reces-sion.

BULGARIAAccording to Eurostat data, the unemploy-

ment rate in Bulgaria for the months of July andAugust 2012 was steady at 12.5%, but marked asmall increase, compared to June 2012 when therate was 12.4%.

On the other hand, the data of the NationalStatistical Institute (NSI) shows that the per-centage of unemployment for the second quar-ter of the year was 12.3%. Compared to thesecond quarter of 2011, the rate marked an in-crease of 1.1 percentage points.

Interesting to point out is that the Bulgariangovernment plans to increase all pensions andthe minimum salary in the country from 290leva to 310 leva as of 1 January 2013.

SOCIETY

Unemployment in Europe at a glance03NEW EUROPE

7 - 13 October, 2012ANALYSIS

New Europe's editors explore the figures in a few countries of the European Union as summerleaves us and the hard facts of winter start showing their brashness.

(EP.EUROPA.EU)

Eurostat figures have revealed that levels of un-employment in the Eurozone and the Euro-pean Union (EU) for August were stablecompared to July, but for the first time everthere are more than 25 million without em-ployment across the 27 member states.

In the Euroarea there is now 11.4% unem-ployed, with 10.5% out of work in the EU, bothmatching the figures for the previous month,but when compared to a year ago unemploy-ment has risen 1.2% and 0.8% respectively,leaving 83,000 more people jobless in the last12 months. It is now estimated that there are25.466 million now not working in the EU.

Compared to August 2011, the unemploy-ment rate has increased in twenty memberstates, with six countries successful in gettingpeople back in to work.

The largest falls came in the Baltic countries,Estonia has now 10.1% unemployment, nowslightly lower than the EU’s 10.5% average,with a drop of 3.1%. Lithuania and Lativiaboth still have high rates of unemployment at12.9% and 15.9%, but can point to reductionsin jobless rates of 2.1% and 1.1% respectively.

Although once again the focus was on theongoing problem of youth unemployment, asEurostat figures show that the problem is notgoing away.

In August this year, the youth unemploy-ment rate was 22.7% in the EU and 22.8% inthe euro area, compared with 21.5% and 20.7%respectively in August 2011.

An EU official said: “Youth unemploymentis of particular concern, as young people aretwice as likely to be unemployed as the adultpopulation. Youth unemployment, especially ifprolonged, threatens to harm the self-esteemand economic potential of young people nowand in the future.”

“Although the unemployment rate is stable

compared with previous months, the figures aremuch higher than a year ago, and demonstratethe importance of putting in place effective re-forms to reverse the trend in unemploymentand youth unemployment.”

“Moreover Member States' employmentand social situations are diverging more thanever. This is why Member States should ur-gently implement the 2012 country-specificrecommendations adopted last July, and shouldput in place the measures outlined in the Com-mission's Employment Package to create moredynamic labour markets.”

He added: “The critical unemployment sit-uation demonstrates the need to end the cur-rent economic crisis and to give priority to jobcreation. There is no quick fix, but the packagepresented by the Commission in April outlinesmeasures and initiatives to be taken at the bothat EU level and by member states to supportthe creation of not only more but also betterand more sustainable jobs.”

Austria is currently enjoying the lowest un-

employment rate in the EU with 4.5% out ofwork, and is joined by its central Europeanneighbours Luxembourg on 5.2%, the Nether-lands 5.3% and Germany 5.5%, as the best per-formers out of the EU member states.

Thomas Url, an economist with the AustrianInstitute of Economic Research, put this downto the labour market conditions and incentives.“We have favourable economic conditions aswe sort of say lets follow the German leadwhen it comes to GDP and economic growth.The hiring and firing conditions are very liberal,and we can fire people with the maximumdelay of three months and sometime with nodelay at all.”

“Unemployment insurance is not so high sothat it provides incentives to get back to work,and we also use the flexicurity principle fromDenmark, as we look to re-educate and trainthose without work.”

On the other hand Spain continues to strug-gle to reduce its unemployment rate of 25.1%,the worst in the EU, and a severe handicap as

they try to alleviate themselves of their moun-tainous economic problems.

“We have had to make amendments sincethe labour market relationships have stayedthe same since 1980. The focus is to havemore elements towards internal flexibility.”Explained Iñigo Sagardoy de Simón, an em-ployment partner at Spanish law firm Sagar-doy Abogados.

He added: “This means that it hands com-panies more scope in adapting to the economiccircumstance and can offer better alternatives,for example reductions in salary as opposed todismissals, it’s a move more towards the tradi-tional European direction to have these kind ofalternatives. There has been changes imple-mented, but its too early to say if they haveworked”

The European Council outlined their pro-posals for Spain as part of the country specificrecommendations, after examining the Na-tional Reform Programme and Stability Pro-gramme, that was also overseen by theCommission.

They include labour market reforms by in-creasing training, advisory and job matchingservices, and by strengthening coordination be-tween the national and regional public em-ployment services.

The taxation system was also targeted, witha suggested move away from labour relatedtaxes to more consumption based ones such asVAT, and to broaden the tax band of VAT.

“This is definitely the kind of changeneeded in the tax system, we also need tohave a system where the provision of col-lective agreements with unions are movedaway from per sector agreements to a morecompany base d system..“ Iñigo Sagardoyde Simón added. “This is what is needed toensure that the scope of working conditionsof the future are more relative to the em-ployers of the future.”

UNEMPLOYMENT

EU jobless reaches 25 millionBy Peter Taberner

04NEW EUROPE7 - 13 October, 2012

ANALYSIS

A queue of people wait at an unemployment office in Madrid. At 25.1%, Spain has the highest rate of jobless

in the European Union.

Spanish statistics from the Ministry of Employment showing the progression of data as the austerity cuts have

made an impact on unemployment figures (c) gov.es

The overall statistics on Unemployment comparing the US, Eurozone Area, the European Union and Japan

between the years of 2000 - 2012 (c) eurostat

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Implementing a banking union could ul-timately force European Union memberstates to confront Eurozone inclusionand broader issues of sovereignty andfederalism.

According to EU policymakers on 4October, the risk of the ambitious actionfailing is preferable to continued indeci-sion that has done nothing to mitigate theeconomic crisis.

Whether or not the Commission’s recentroadmap to a banking, which would put sig-nificant power in the hands of the EuropeanCentral Bank, will work provoked differingopinions. But Martin Merlin, head of fi-nancial services DG Market and Services,and Philippe Lamberts, an MEP(Greens/EFA) on the economic and finan-cial committee, agreed that a central super-visory role with the purpose of restoringconfidence in European banks must occurbefore further progress can be made. Theyalso suggested that a scenario in whichmember states had to choose whether theywant to commit to long-term European in-tegration would be controversial but not un-desirable.

“We see the legislation of a bankingunion as an indispensable response to theeuro-area crisis. If we want to restore trustand integrity, we must break negative, vi-cious circles,” Merlin said. “I’m not sure ifwe’re ready for more federalism, but weare ready for crisis to be over.”

The European Council called for abanking union at its leaders’ summit inJune. The Commission followed up with aproposal on 12 September. Theoretically, abanking union would ease the burden ofalready indebted governments by takingresponsibility for bad banks. It wouldallow the European Stability Mechanism,the permanent recue fund approved inSeptember, to directly recapitalize banks.A supervisory board, separate from Presi-dent Mario Draghi and monetary policyresponsibilities, would also set the stan-dards at which banks had to function. TheCommission would like to see the pro-posal adopted at a December summitmeeting and installed early next year.

The proposal is controversial for a fewreasons. Though there are 6,000 banks inthe EU, approximately 90% of all assetsare held by about 200 of them. Germanyhesitates to see its state-owned Landes-banks fall under ECB control and for theECB to lose its independence from EUpolitics. The citizen-elected Parliamentwould need to have final oversight if thebanking union were to have a semblanceof a democratic institution. Meanwhile,London fears a banking union not underthe roof of its European Banking Author-ity (EBA) would perpetuate the percep-tion that Frankfurt (home of the ECB) isthe new European financial capital.

More on point, a banking union wouldpolarize the 17 states in the Eurozonefrom the 10 which are not. The Commis-

sion’s proposal says states outside of theEurozone would be encouraged to enterinto “close cooperation” agreements withthe ECB that would allow it to use thesame supervisory powers (requiring doc-uments, unannounced inspections, etc.) asin Eurozone states.

Legally, though, non-Eurozone stateswould not be allowed any representation onthe supervisory council. Therefore, thosestates would be ceding regulation of itsbanks without having any say in how theregulation would work. It’s difficult to seewhy any states would opt in to the plan.

Lamberts said that contrary to popularbelief, there are euro-empathetic statesnot within the Eurozone and Euroscepticstates within the Eurozone. A bankingunion might push both to the fringe inthe larger debate about integration.

“We don’t want to build a two-speedEurope,” he said. “Seventeen and 10would not be healthy.”

He also doubted the likelihood of theECB both maintaining its independenceto the satisfaction of Germans while alsomeeting democratic standards.

“The ECB is already perhaps the mostpowerful central bank on planet,” Lam-berts said. “Concentrating too muchpower in one place is not attractive. I don’tsee too much checks and balances in thissystem.”

However, Lamberts believes some formof bank supervision would work. He indi-cated that the EBA should not be counted

out yet. And while he does not approve offorcing more federalism on memberstates, he likes the idea of a banking unionultimately forcing citizens in each state tovote whether or not they want to be partof the Eurozone. As the British are “morerealists than idealists,” they would followtheir best interests: joining.

Either way, a banking union would forcestates to decide, which would finally allowthe EU narrative to continue.

“It’s something the political class has todecide: Is it ready to surrender the tiny bitof power it still thinks it has? That’s thereal question,” Lamberts said. “It’s quitelogical to start with the supervisory (role).As trust builds up, the (perceptive need)for more federalism increases, and we cando more.”

Merlin asked that the banking unionnot be considered in static terms as aquick fix to the economic crisis but as along-term tool for growth. On the sameday Draghi announced the ECB is readyto deploy its bond-buying scheme inSpain if they so request it, Merlin reiter-ated that while a banking union wouldcome with ideological flaws, that debatewould be better held in a recovering unionthan a stagnant one.

“We are doing this not because we wantsupranational powers, but because this is acentral response to the crisis,” he said. “Itremains extremely acute, and as capitalflees from periphery to core countries, thismakes it more difficult for recovery.”

ECONOMICS

EU banks on full union“Not sure if ready for more federalism, but ready for crisis to be over.”

057 - 13 October, 2012ANALYSIS

Union leader President of the European Central Bank (ECB) Mario Draghi

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By Andrew Wagaman

NEW EUROPE

06NEW EUROPE7 - 13 October, 2012

ANALYSIS

A spectre is haunting Europe, the spectre ofself-interested nation states, according to afiery new book by veteran European politi-cians, who see a federal Europe as the fu-ture. Two political rivals teamed up to offera radical vision of how they believe the Eu-ropean Union should change.

Guy Verhofstadt, president of the Eu-ropean parliament’s liberal ALDE groupand Daniel Cohn-Bendit, co-president ofthe parliament’s Green group teamed upto write a new book, ‘For Europe! A man-ifesto for a post-national revolution inEurope’.

The former Belgian Premier, now MEPand aspiring Commission president hasambitions for the publication, “I hope thatthis book is not just a manifesto but thestart of a new era in European politics,creating a new pro-europe political force.”

Speaking at the launch of the book inBrussels (there will be launches in fiveother countries later), Verhofstadt said,“What we have tried to describe, is whata more federal Europe means. It meansmore than a discussion on policy, it meansyou build a real European government, aEuropean democracy. “

However, the authors are clear that theydo not wish to see the creation of a ‘superstate’ but a tightly integrated Europe thatcan meet the needs of its citizens. Verhof-stadt explained the call to the citizens, “Ifyou want to protect your own interests, weneed sovereignty at the European level.

It’s an illusion to think the sovereignty ofthe people can be protected at the na-tional level. Ask the Spanish, Greeks, Por-tugese or Irish. Their sovereignty is notprotected by the nation state. Only Eu-rope can do that in the globalised worldof tomorrow.”

The book is no less forthright thanwould be expected from two of the mostpassionate and hard hitting federalists inthe European parliament, who have foundstrength since European CommissionPresident Barroso raised the subject of in-creased federalism, and the possibility ofthe Commission president being chosenby popular vote.

The authors paint a picture of the EUas 27 squabbling nation states, with anaging population, too dependent on fossilfuels and unable to compete with the “po-litical and economic powerhouses of thecaliber of China, India, Brazil or theUnited States.”

Scathing about the EU being blamedfor the euro crisis, austerity led recessionand alienating people from politics, an ac-cusation they describe as “absurd” and“nonsense” the authors state “It is theMember States who bear the full respon-sibility for today’s debacle.”

Speaking about the Eurozone crisis, thetwo lawmakers explain, “The essence oftoday’s crisis: a shared currency is incom-patible with the continued existence ofthe old nation states, at least in their cur-rent form.” They argue that the solutionis a European federal state or “the Euro-

pean currency must disappear.” They con-tinue, “The reality in Europe is clear: it isthe egoism of the member states that isnow determining Europe’s course and notthe common European interest.”

The inability of the EU to respond tothe crisis is repeatedly made and withforce. “Nobody now believes in the inter-governmental model, whereby MemberStates supposedly monitor and sanctioneach other.” They argue that the “Euro-pean Council is nothing other than a syn-dicate of national interests.”

Their solution is “a genuine revolu-tion.”The authors lay out their vision of“The establishment of a genuine federalunion with supranational institutions”which will have “the power to determineeconomic, budgetary and fiscal policy forthe entire Eurozone.” They would alsolike to see a euro-bond market. Commis-sioners, in the offered vision, would be-come “genuine European ministers’.

The provocative MEPs write, “One ofthe core aims of European politics shouldnot be the pursuit of the self interest ofthe nation states” but that of the citizens.

Not satisfied with the choices facing theelectorate, which they describe as largely eu-rosceptics, who sneer at all the EU does, na-tionalists who they describe as wishing topull up the drawbridges and returning to anidealized and often imaginary past of gloryand soft pro-Europe parties, who wish tomove closer but not unified enough, the au-thors argue for a re-birth of the federalistmovement and a direct call to citizens.

Daniel Cohn-Bendit says, “We proposethat after the 2014 election, the EuropeanParliament should proclaim itself as theConstituent Assembly, in agreement withthe Council of Ministers, the other leg-islative chamber, and should draw up adraft European Constitution, which willnot be a repeat of the current treaties, aswas the case in 2004.”

“This text must define the principles ofa federal Europe and be brief,” he contin-ued. Stating that the draft must be ap-proved in all states by referendum, by adouble majority, if achieved, states whovoted against the draft, will get a secondreferendum, to remain inside, or leave thenew federal union.

This is only the beginning of the con-troversial ideas in the book. Others in-clude having a UN seat, common defenceand foreign policy. The latter has been themost difficult to achieve and the Euro-pean External Action Service has beenheavily criticized, but it can be argued,that the flaws in the EEAS were put inplace by the Member States, fearful of los-ing national prestige.

The ambitious project is likely to getthe support of the federally minded, buthow will the centre-right European Peo-ple’s Party or the centre-left Socialists andDemocrats react?

More pointedly, how successful couldan appeal to the European citizens be,over the heads of national governments?

The two firebrands are about to findout.

EU

The federal revolutionVerhofstadt and Cohn-Bendit lambast member states

By Andy Carling

Guy Verhostadt (R) and Daniel Cohn-Bendit (L), launch their book "For Europe".|

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ANALYSIS

Here we go again. The Greek governmenthas "agreed" - at gunpoint, let's be frank -to cut another 13.5 billion euros from pub-lic spending. And it's still not enough forthe tyrannical troika.

Olivier Blanchard, chief economist andclairvoyant for one of these tyrants, the In-ternational Monetary Fund, is now tellingus that the difficult times will last for atleast six more years. This is the latest pub-lic comment from a man who outed him-self as a sadist in March, when he describedthe pain being inflicted on Greece as "fair".

Blanchard maintained that "shared sac-rifices" are being made between Greeceand its lenders. It would take someonewith a twisted sense of humour to con-tend that German banks are suffering asmuch as the elderly or jobless in Athensand Thessaloniki.

I don't buy the explanation from EUand IMF officials that the economic situ-ation leaves them with no alternative thanto demand austerity measures with devas-tating consequences. The reason why Idon't buy the explanation is that I havebeen studying the history of the euro anddiscovered that plans now being imple-mented have been under discussion by thecurrency's "architects" for some time.

The most important thing I havelearned is that the euro always was an in-human project. Looking at who laid thefoundations for the euro, it could not havebeen anything else.

In 1987, the Association for the Mone-tary Union of Europe (AMUE) was offi-cially formed. According to the officialnarrative, it was the brainchild of ValéryGiscard d'Estaing, the former French pres-ident, and Helmut Schmidt, the formerGerman chancellor. Only a moist-eyedfederalist could believe that version ofevents. A document held by the Frenchnational archives indicates that the steer-ing committee for the association was set

up in 1986. Far from being a response toa polite request from two statesmen, theAMUE was comprised of corporationsthat sniffed an opportunity to fight and ul-timately win a class war.

The membership of the AMUE hailedexclusively from the owners of industry.Headquartered in the eight arrondisse-ment of Paris, the association was com-posed of 400 private firms or tradeassociations. They included GoldmanSachs (of course), Deutsche Bank, Total,Siemens, Volkswagen and British Ameri-can Tobacco. The employers' confedera-tion UNICE (now called BusinessEurope)was there, too.

In 1988 the association came forwardwith an action plan for monetary union.Many of its points were recycled by JacquesDelors, then the European Commission,when he presented his "vision" on thistopic the following year. Delors' call for thecomplete liberalisation of capital move-ments read like an answer to a banker'sprayer. And that is exactly what it was.

Right until it eventually decided that itsmission had been accomplished and todissolve itself in October 2001 - a fewmonths before euro notes and coinsstarted filling cash registers - the AMUEengaged in a process of what the propa-gandist Walter Lippman called "manu-facturing consent". On average, itorganised 250 conferences per year atwhich the advantages of a single currencywere accentuated and the pitfalls - as faras I can gather - ignored. A significantamount of this "public relations" (a morepolite term for propaganda) was fundedby grants from the European Commis-sion - in order words, by the taxpayer.

Several of the association's staff mem-bers continue to dispense their "wisdom"at various forums. As its director of re-search, Stefan Collignon appears to havebeen the most prolific analyst in theAMUE. A few years after leaving thatpost, he wrote a 2002 paper for Harvard

University in the US. In it, he advocatedgiving the European Commission thepower to instruct national governmentswhat their budgets should contain.

Collignon does not deserve any kudosfor prescience or for individual thought. Hewas proposing ways of ensuring that theeuro project helped the people it was al-ways supposed to help: the bankers. Andthe fact he was talking about these ideas adecade ago illustrates that Herman vanRompuy, the EU's unelected president, wasless than candid when he claimed earlierthis year that responding to the euro crisiswas like "building a life-boat at sea". Themore plausible truth is that it involved em-barking on a voyage that had long beenpre-planned.

Collignon has lately been hired to advisethe European Parliament on "competi-tiveness" (another concept originating withcorporate lobbyists). His 2012 study for theParliament concludes that there should bea "much more aggressive debate" abouteconomic governance. The focus of thisdebate should be on wage restraint, headds. Despite the turgid nature of his prose,the essence of his argument is clear: eco-nomic policy must primarily serve the in-terests of capital, not of workers. Class waris being waged, with the euro's architectsstoutly defending the class we have cometo know as the 1%.

Etienne Davignon, the Belgian politi-cian turned banker, served as the AMUE'schairman at one stage. Last year Davignonstated that George Papandreou, then theGreek prime minister, had responded sen-sibly to the economic crisis but "ended thatcourse of action by calling a referendum".

Those few words reveal everything. Theeuro was conceived by an unaccountableelite. The elite spawned a monster thatstomps around Europe, robbing pension-ers, workers and welfare recipients wher-ever it goes. "Sensible" politicians are toldto keep mum as the monster devours thelast vestiges of democracy.

Former French President Valery Giscard d'Estaing, speaks during the 10th Anniversary of the euro in the European Parliament in Strasbourg 13, January 2009.

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ECONOMY

The euro: an inhuman project

By David Cronin

In 2002, a young Baghdad architect tried to track down hisfriend. Blocked from using normal web services, he turned tothe blogosphere, dodging Saddam’s censors, to post irreverentreports of life during the dictatorship, and later, during the firstGulf War. The blog - Where is Raed - became a milestone inmedia history, the first crossover between amateur observationand professional journalism.Salam Pax, aka the Bhagdad Blogger, was one of the first citi-zen journalists. Four years before either Facebook or Twitter,he redefined classical roles and provided the first glimpse of aworld where news arrives with the ping of a mobile phone,newsprint is replaced by a 2048-by-1536-pixel screen and gov-ernments are challenged and changed at the touch of an “event”icon. As social media has gathered speed, it has brought newweight to an old debate: how much can we trust our sources ofinformation, and can they really guide us, as citizens, to makethe right choices?This uneasy relationship between journalism, new technologyand democracy is one of the main themes to be discussed dur-ing the World Forum for Democracy in Strasbourg this week,focussing on the dual problem of stifled media freedom on theone hand, and non-transparent relationships between govern-ment and media on the other. Where do the lines of media re-sponsibility lie, and what are the consequences for democracyif the lines are crossed?A free media is essential for democracy. The best journalists stillbelieve that their first duty is to tell truth to power, often withfatal consequences. Last year, according to the annual press free-dom index, 67 reporters were killed, along with 2 media assis-tants and 3 citizen journalists. Yet never has the reputation ofprofessional journalism been so low, with poll after poll puttingjournalists at the bottom of the trustworthiness league. Some of this, sadly, must be laid at the door of the media itself.The long-running UK Leveson enquiry has exposed a sorrycatalogue of media malpractice, and hardly a day goes by with-out revelations of compromising relationships between pressand politicians – to say nothing of press and business. But withnews flying around the globe in a nano-second, even the mostethical can find it hard to keep up; creating what UK Guardianjournalist Nick Davis, whose investigative work helped to ex-pose the extent of phone-tapping at News International, calls“churnalism”: over-worked reporters drowning in a sea of in-formation whilst chasing the rolling deadlines of 24 hour news.Today is a far cry from the days of Woodward and Bernstein;when editors gave time and money for long and careful inves-tigations. For many reporters, the most they can achieve is to actas fact-checkers for stories breaking on the Internet, makingthem curators rather than creators of news. And what of citi-zen journalists, many of whom, like the Baghdad Blogger, aregifted amateurs? Media training foundations are starting tooffer courses in how to report accurately and responsibly, buteven these efforts cannot guarantee the reliability of the infor-mation we get in the public domain.And who, in the end, is to blame? If journalists have claimedfor years that “the public gets what the public wants” thenperhaps it is time to look closer to home. If we, as citizens, donot demand quality from our media; if we continue to con-sume sub-standard news from shady sources, then we havelittle ground for complaint. Media responsibility may startwith media outlets, but it ends with us. In the end we will getthe media we deserve.

The World Forum for Democracy will be webcast via the Council ofEurope’s website: www.coe.int from Monday Oct 8th to ThursdayOct 11th. Follow the conversation on Twitter at #CoE_WFD.

By Gutenberg

Media responsibility –not just a problem for

the professionals

It was an election that was tense andwith grave accusations and threats ofviolence, but when it came to thecount there was little to argue aboutand Georgian President MikheilSaakashvili conceded defeat graceful-ly and the Rose revolution came to anend after nine years.

"It is clear from the preliminaryresults of the parliamentary electionthat the Georgian Dream coalitionhas secured a majority," Saakashviliannounced in a television broadcast tothe nation. "This means that the par-liamentary majority should form thenext government and I, as president,within the framework of the constitu-tion, will help make it possible forParliament to begin its work, choose aspeaker and also form a new govern-ment."

Noting the differences between theruling party and the opposition, thepresident bowed to the voters’ verdict,saying, "We think their views arecompletely wrong," he said. "Butdemocracy works through the major-ity of the Georgian people making adecision, and we respect this verymuch."

Bidzina Ivanishvili’s GeorgianDream coalition won and he will be thenext Prime minister, a position hewishes to use as a springboard to thepresidency, whose election is next year.

International monitors were cau-tiously positive. The Organisation forSecurity and Co-operation in Europe(OCSE) said, “Georgia’s parliamen-

tary elections marked an importantstep in consolidating the conduct ofdemocratic elections, although certainkey issues remain to be addressed.”

The election monitors continued,“While freedoms of association,assembly and expression wererespected overall, instances of harass-ment and intimidation of partyactivists and supporters negativelyaffected the campaign environment,and often ended with detentions andfines of mostly opposition-affiliatedcampaigners. This contributed to anatmosphere of distrust among con-testants.”

“Despite shortcomings, these elec-tions were very competitive,” saidLuca Volontè, the Head of the Parlia-mentary Assembly of the Council ofEurope (PACE) delegation. “Thepolitical forces elected to the newParliament, both in the majority andopposition, should now take up theirresponsibilities and work together toaddress these shortcomings for thefurther democratic development ofthe country. PACE will continue toco-operate actively with all forces inthe new Parliament in these impor-tant reforms.”

“Georgia is an important partnerfor the EU, and we continue to be asteadfast supporter of promotingdemocracy and reform in Georgia,”said Milan Cabrnoch, the Head ofthe European Parliament delegation.“This will be possible if those whohave been elected, in power or inopposition, exercise their democraticprivileges responsibly in continuing

reform for the benefit of the Geor-gian people.”

In Brussels, where it is hoped thatGeorgia will continue to integratewith the EU, a cause GeorgianDream say they will pursue, the reac-tion was positive.

European Parliament PresidentMartin Schulz said, “"I congratulateGeorgia on conducting free, competi-tive and peaceful elections, despite theoften tense and polarising electoralcampaign. Despite certain proceduralshortcomings, these elections are asign of Georgia's growing politicaland democratic maturity.” However,he also cautioned, “We also hope for aconstructive and meritocratic cooper-ation among executive and legislativeinstitutions in Georgia during thelikely period of cohabitation."

Guy Verhofstadt, ALDE Leaderwelcomed the results, “The con-frontation and animosity seen duringthe election campaign must be putfirmly to one side and focus must nowturn to the real needs of the Georgianpeople. The new government shouldbe formed with no delays and itshould build on the good work doneby the United National Movementand pursue a national consensus onkey projects like justice and jobs,Euro-Atlantic integration and terri-torial integrity".

However, the hard work starts, forboth sides as they have to learn towork together and, Ivanishvili has tokeep a diverse coalition together, atleast until the presidential electionsnext year.

By Andy Carling

ELECTIONS

Georgian Dream win electionObservers say some problems but a step forward

08NEW EUROPE7 - 13 October, 2012

ANALYSIS

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The new digital agenda

Europe is going to implement a New Digital Agenda. In-formation and communication technology (ICT) now per-meates virtually all aspects of our lives. The New DigitalAgenda is strongly connected with our desire as a collectivesociety for a prosperous and competitive economy, a sustain-able environment, and a more democratic, open, healthy so-ciety. The New Digital Agenda should be seen as a keypositive element, empowering EU citizens, growing busi-nesses and helping us build an open, innovative, secure andsustainable innovation society.More than ever, Europe needs a clear, balanced New DigitalAgenda based on a full understanding of the policy issuesand of the context in which they are adressed. A pragmaticstrategy is needed for sustainable growth and prosperity sothat Europe can respond to the following main challenges:- Transforming Europe into the high skill / high employ-ment economy needed in a globalised environment;- Tackling the effects of an ageing population while improv-ing the major services for the public;- Doing so in a way that takes account of foreseeable expen-diture and environmental constraints;Is is very important that the European Comission is able tounderstand the extreme importance of these issues in terms ofpromoting a real effective New Digital Agenda understoodby the European Citizens as a decisive enabler of change. The effective implementation of a New Digital Agenda inEurope demands an Action Plan centered in the main fol-lowing priorities:- The Innovation Economy - driver of future wealth;- The Knowledge Society – participation for all;- Green ICT – support for an eco-efficient economy;- Next Generation Infrastructure : balancing investment withcompetition;- Soft Infrastructure : investing in Social Capital;- SMEs and ICT – supporting Europe´s small enterprises;- A single information market – enabling cohesion and growth;- Transforming Egovernment – rethinking delivery of publicservices;- Online trust – a safe and secure digital world;- Clear leadership – rethinking the EU s policy making processThe challenge of the New Digital Agenda demands an ef-fective Partnership Contract between all the actors (States,Universities, Companies, Civil Society), in order to build areal Strategy of Confidence in the implementation of the dif-ferent policies. The focus on Innovation and Knowledge asthe drivers of creating added value with international dis-semination is a unique challenge that may be the answer toa new way of interaction between those who have the re-sponsibility of thinking and those that have the responsibil-ity of producing goods and services.In the New Global, Innovation Society, the New DigitalAgenda has a central role to play towards a permanent insat-isfaction with the creation of value and a focus on creativity.In a time of change, the New Digital Agenda can´t wait. TheNew Digital Agenda in Europe must confirm itself as an “en-abler actor” in a very traditional system, introducing in theeconomy a capital of trust and change that is essential to en-sure a central leadership in the future.

Francisco Jaime Quesado is the General Manager of the In-novation and Knowledge Society in Portugal, a public agencywith the mission of coordinating the policies for Informa-tion Society and mobilizing it through dissemination, qual-ification and research activities. It operates within theMinistry of Science, Technology and Higher Education

New Europe content partner

By Francisco Jaime Quesado

ADVERTISEMENT

Tunisia Prime Minister Hamadi Jebali

asked for the EU’s patience and support as

its new, more democratic government expe-

riences growing pains following its revolu-

tion last year.

Meeting with the European Parliament’s

foreign affairs committee on 2 October, Je-

bali condemned the recent violent protests

in other North African countries like Libya

and Egypt as well as the rape of a woman by

Tunisian police. He also requested more

economic support to establish a democratic

government so the Arab Spring ‘would not

become an Arab Winter.’

MEPs, in turn, questioned Jebali about

progress regarding a new constitution and

how the country is dealing with persisting

human rights issues.

Jebali said Tunisia had planned to finish

drawing up its constitution within the year

following the ousting of President Zine El

Abidine Ben Ali in January 2011 and the an-

nouncement two months later that Tunisia

would hold public elections. The constituent

assembly, Jebali said, means no “malicious in-

tent” in missing the deadline but rather does

not want to hurry the process.

Early and often during the hour-long

meeting, Jebali highlighted the fundamen-

tal rights and equality of women in the new

society.

“Women are an essential and crucial part-

ner of development,” he said. “We respect

diversity and refuse all forms of extremism

and fanaticism.”

Earlier this week, though, reports surfaced

that police had raped a woman outside a

Tunisian courthouse and then charged her

with public indecency when she filed a com-

plaint. MEPs such as Hélène Flautre

(Greens/EFA, FR) asked what the govern-

ment was doing to guarantee security forces

act within the framework of international

standards for human rights.

“Ensuring citizens can trust in security

forces is a hallmark of the democracy you’re

seeking to establish,” Flautre said.

Jebali acknowledged the abused freedoms

but also the difficulty enforcing new stan-

dards when ‘problems are left over from the

earlier dictatorship.’

“It’s not easy to bring about change,” he

said. “It’s hard to turn the police around.

We’re working on a change of mentality…

we have learned lessons from security diffi-

culties and weaknesses.”

The EU’s part in promoting democracy in

North Africa is a touchy one because of the

religious element to last year’s uprising and

its implicit role in recent violent conflicts.

Muslims protested last month in both Cairo

and Benghazi, and in attacks on the U.S.

embassy in the latter city the U.S. ambassa-

dor to Libya and one other American were

killed. The attacks may have been connected

to the North African wing of al Qaeda.

In Tunisia, moderate Islamists such as Je-

bali and President Moncef Marzouki have

gained political power. However, Marzouki

himself said this week that militants like the

country’s Salafists still have links to al

Qaeda and look to still cause more problems

during the lingering transitional disorder.

Speaking for North Africa as a whole, Je-

bali said it was a miscalculation to let pro-

testors near embassies while also reiterating

the Tunisian government’s intolerance for

extremists of any kind. He doesn’t believe

religion in itself will clash with a move to-

ward a more democratic society.

“Our heritage is clear, but it shouldn’t be

an obstacle,” he said. “We shouldn’t be theo-

cratic, we want a democratic state that serves

our citizens.

“We reject violence in all forms and man-

ifestations.”

Besides the transition to a democracy,

other significant challenges Tunisia faces in-

clude a fair distribution of wealth and un-

employment, particularly among the

younger generations which spurred the rev-

olutions in the first place. Their continued

dissatisfaction will lead to more problems,

which is why Tunisia requests the EU’s help.

“We need the support of our partners, and

the EU is one of most important,” Jebali

said. “We are expecting the EU to

strengthen relations with Tunisia in all

areas… We hope you’ll stand shoulder to

shoulder with us.”

Jebali also met with Commission Presi-

dent Jose Barroso as well as Council Presi-

dent Herman Van Rompuy, European High

Representative for Foreign Affairs Cather-

ine Ashton and Belgian Prime Minsister

Elio di Rupo. The EU doubled its assistance

to Tunisia between 2011 and 2013 to €400

million in July.

EU – NORTH AFRICA

Tunisia PM: Theocracy no, democracy yes‘We respect diversity and refuse all forms of extremism and fanaticism’

10NEW EUROPE7 - 13 October, 2012

ANALYSIS

European Council President Herman Van Rompuy (R) welcomes Tunisian Prime Minister Hamadi Jebali on October 2, 2012 before to their meeting at EU head-

quarters in Brussels.

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A standard definition of democracy can noloner be assumed in Europe, and a possible newdefinition needs to be debated, a major newforum will propose.“Democracy is a little bit of a Cinderella”, saysJean-Louis Laurens, Senior Co-ordinator ofthe World Forum for Democracy, a new initia-tive organised by the human rights watchdog,the Council of Europe (CoE). “The Council isbased on three pillars: democracy, human rightsand the rule of law”, he continues. “We know

about the last two through the European Courtof Human Rights, for instance, but democracy,we tend to take as evident. But this is no longerthe case”.The forum brings together, not just high-pro-file speakers and guests, such as UN SecretaryGeneral Ban Ki-moon and Tunisian PresidentMoncef Marzouki, but also a great number ofparticipants from civil society from a diverse setof countries including, Afghanistan, Fiji, Chadand the Maldives.The past decades have seen the emergence ofnew democracies in central and eastern Europe,

as well as the Arab Spring in North Africa andthe Middle East, which have progressively al-tered the perception of democracy as being asimply defined, universal concept. “In a way, thedefinition needs to be updated”, he says. “Weneed to confront our more classical view ofdemocracy”.Such recent developments as the social mediarevolution, as well as more public demonstra-tions and confrontations between different po-litical institutions all contribute to a shiftingsense of how democracy is defined.“What we see more and more, is that elections

are not the only expression of democracy, withsocial media and citizen movements and thelike”, says Laurens. “At the same time we seethat less and less people vote, and this is disas-trous, but we must look at the contradictions”.Democracy, however, is still at its heart achoice people make, he says. “We have toask, are people free to choose? Democracy isa choice, but, if you look at recent elections inbelarus, for example, where the people therefree to choose? We have to ask these kindsof questions. That’s what the Council of Eu-rope is all about”.

A new democracy?By Cillian Donnelly

By Andrew Wagaman

As Europe struggles to get itself out of theeconomic crisis, it is vital for memberstates to “adjust and reform” theireconomies, according the the EU’s envi-ronment commissioner.

Speaking at the annual conference of the Eu-ropean Environmental Bureau (EEB) JanezPotočnik said that Europe needs to adopt eco-nomic models based on sustainable develop-ment and resource efficiency.

Following the Rio summit earlier thisyear, which, he said, could be interpretedas “being weak on the green economy”, hesaid that it was evermore important forEurope, along with like minded busi-nesses and countries to move ahead withpolicies that would build sustainableeconomies.

“To put it bluntly”, he said, “there is noUN timetable for the green economy”.

He said that Rio did plant the idea ofbuilding green economies into severalparticipants, including business. He said

that Rio, for all its faults, represented “notthe end of a process, but a new begin-ning”, which required the “will and deter-mination” of key collaborators.

“I am very satisfied that in the EuropeanUnion we are taking steps to build a sustain-able, resource efficient economy”, he said,adding that the EU pushed this agenda at Rio,and which still stands a s policy.

He said that it is important not to sep-arate the environment and the economy,and that they “must work hand in hand”to bring Europe out of the crisis.

While he said that the private sector hasa “key role” to play in driving the economyof the future “it is absolutely up to gov-ernments to provide the direction, incen-tives and leadership”.

However, he added that true long-termthinking is needed if the vision of a sus-tainable economy is to come to fruition.“Politicians tend to work around electoralcycles”, he said, “but is is simply impossi-ble to run the 21st century economy on ashort-term vision”.

ECONOMY

Potočnik: EU must forge ahead to a sustainable future

11NEW EUROPE7 - 13 October, 2012

ANALYSIS

EU Environment Commissioner Janez Potočnik:Europe needs an economy based on sustainbility and

resource efficiency

The Rio summit in June did not meet ex-pectations but did perpetuate talks of“green economies” that could lead to moretangible sustainable development, accord-ing to the executive director of the UnitedNations Environment Programme.Achim Steiner, speaking at the EuropeanEnvironmental Bureau’s annual confer-ence, said the Rio summit did not warrantfinal judgement just yet, as its failure toproduce any kind of legally binding agree-ment could lead to bolstered efforts fromanxious leaders. In fact, alarm followingthe summit in itself indicates the envi-ronment’s unprecedented importance topolicymakers. Commissioner Janez Po-točnik, among others at the conference,supported the point by saying that Europeneeds to adopt economic models based onresource efficiency.“(Rio) is one milestone,” Steiner said. “Itshould not overshadow or replace the con-tinuous evolution and narrative of sustain-able development… don’t underestimatethe move towards a green economy as partof the mainstream discourse.”A green economy refers to one in whichimplemented environmental efficiencymeasures and ecological services wouldcorrelate with, and gradually facilitate, eco-nomic efficiency. In a green economy, “nat-ural capital” – things like added forestrythat develop into thriving ecosystems or

increased recycling that leads to more effi-cient use of resources – is valued as much aseconomic capital. Traditionally, a third “pil-lar” has been the social element, in whichthe benefits of natural capital also lead to ahigher, and more equal, standard of living.Potočnik, among others, noted that thesummit paper, The Future We Want wasactually “weak on the green economy.”Steiner tried to explain the obstacles theRio summit faced. Because of the urgencyof the financial crisis, environmental issuesand their more long-term repercussions

have lost their priority. Also, financial anx-ieties have exacerbated the self-interest in-herent in countries’ agenda, which hashampered cooperation. This has made ar-bitrating between nations – what Steinercalled one of the UN’s main responsibili-ties – much more difficult.“There will be no long-term economicprosperity if you ignore inequity or envi-ronmental ignorance,” Steiner said. “Theproblem is, we’re not naïve. The world thathas struggled in finding consensual voice isthe same world now. We can’t delude our-

selves: it will be difficult. We shouldn’t for-get that each one brings a very clear set ofself-interests. We need to look much morecarefully at the things that will help oth-ers… Europe needs to be trusted ally forcountries that have something else toachieve.”Steiner also said environmental advocateshave become “calcified in our approach,”and that they needed to recognize thecause is no longer a fringe one.“We need to accept the responsibility ofbeing part of a larger change,” he said.Egly Pantelakis, speaking on behalf of theCypriot EU presidency, said today’s direeconomic straits gives the world the chanceto try new, innovative solutions. She saidCyprus wanted to send a strong message inthe remainder of its term for the EU to fol-low up in 2013, as Horizon 2020 ap-proaches.Also speaking was the minister for the en-vironment of Ireland, which takes over thepresidency in the first half of 2013. AsIreland has developed a sound reputationregarding environmental issues, expecta-tions are high about how its presidencywill lead. Phil Hogan cited new projectsthat push inter-institutional cooperationand said Ireland hoped to finalize an out-line by the end of the year with a ‘stronglegislative aspect.’“We will make progress because, as Com-missioner Barroso said recently, we must,”Hogan said.

ECONOMY

Progress on green economy ‘a must’

By Cillian Donnelly

By Andrew Wagaman

Employees work on rotor blades at a plant of windmill producer Vestas in Lauchhammer, Germany.

many in Europe believe that the development of green technologies will not only benefit the envi-

ronment, but boost the flagging economy

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Croatia is very interested in South Stream andis waiting for a decision from Russian gas mo-nopoly Gazprom on the route of the gas pipe-line but any agreement with Russia on theproject will not take precedence over EU lawand follow full consultations with Brussels,Croatia's Assistant Minister of Economy AlenLeveric told New Europe.

“About South Stream, we are in contactwith the European Commission as are allother countries and we are waiting the deci-sion of the Russian part,” Leveric said on thesidelines of the Balkan 2012 Oil & Gas Sum-mit on 26 September in Athens. “We are veryinterested if South Stream will pass throughCroatia or we will be the part of SouthStream.” He reminded that Croatia will enterthe EU on 1 July 2013 and therefore his coun-try - like all the potential partners of SouthStream - “is discussing with the Commissionand we will do what we agree together withthe European Union”.

Croatia missed its first chance to be a tran-sit country for South Stream when the pipe-line was originally planned and settled for abranch off in 2010 when Russia and Croatiasigned an inter-governmental agreement inMoscow to design, build, and operate a pipe-line section of South Stream on Croatia’s ter-ritory in the presence of then-prime ministersVladimir Putin and Jadranka Kosor. Putin,who has since returned to the Kremlin, is pu-shing for South Stream in an effort to diver-sify Russian gas routes away from transitcountries such as Ukraine. South Stream isplanned to transport up to 63bn cubic metresof natural gas to central and southern Europe.The pipes will go from Russia to Bulgaria viathe Black Sea; in Bulgaria it will split in two –with the northern leg going through Serbia,Hungary, and Slovenia to Austria and Nor-thern Italy, and the southern leg goingthrough Greece to Southern Italy. The BlackSea underwater section of South Stream bet-ween Russia and Bulgaria will be 900 kilome-tres long.

Putin has brought forward to late 2012 from2013 the start date for building a pipeline totransport gas to Europe under the Black Sea.The first supplies for Europe are scheduled forDecember 2015. The pipeline's core sharehol-ders include Gazprom with 50%, Italy's EMIwith 20% and Germany's Wintershall Holdingand France's EDF with 15% each.

Gazprom has already established nationaljoint ventures with companies from Austria,Bulgaria, Croatia, Slovenia, Greece, Hungaryand Serbia to manage the onshore section ofthe South Stream pipeline.

A member of the board of Croatia’s gas tran-smission system operator Plinacro, RatimirOreskovic, told New Europe in Athens thatZagreb is discussing with Gazprom the possi-bility of Croatia being a transit country insteadof Hungary on South Stream route to northernItaly. “It is interest to get branch, of course,” he

said. “But a much better situation for Croatiawould be if the main pipeline would gothrough Croatia,” he said, noting that there isnow a new possibility that South Stream willgo from Serbia through Croatia, Slovenia toItaly. “By the end of the year Gazprom willmake a decision,” Oreskovic said. “The que-stion is if this next part from Serbia to Sloveniawill go through Croatia or through Hungary,”he said. He noted that the pipeline throughCroatia could possibly be shorter and could belaid along Croatia’s existing old pipelines, faci-litating the work of the project.

Hungary’s Ministry of National Develop-ment and state-owned MVM HungarianElectricity, which represents Hungary in theHungarian South Stream project company,were not immediately available for commenton 2 October.

Asked if South Stream may bypass Hun-

gary and transit through Croatia instead,Gazprom told New Europe on 2 October thatthe Russian company and Plinacro are pre-sently discussing, based on the results of pre-investment stage, the conditions of theshareholders agreement of a joint projectcompany with the purpose of its subsequentestablishment. “After the final investment de-cision will be announced the route of the fu-ture gas pipeline. It will involve manyEuropean companies interested in achievingthe main goal of the current project - stren-gthening the European energy security,” Gaz-prom said in an e-mailed response. “Currently,Gazprom is considering suggestions by somecountries who have expressed their desire tojoin the project as both a consumer and tran-sit country.”

Oreskovic stressed that Croatia will abidewith all European energy laws. “I assure youthat Croatia will follow Europe 100% in everydetail because we are not a member of the Eu-ropean Union, but we’re going to be a mem-ber on July 1 next year,” he said.

But Leveric noted that Croatia’s priority isthe construction of a liquefied natural gas(LNG) terminal in Omisalj on the island ofKrk planned for 2017 that will boost thecountry’s energy security and supply Europewith natural gas from different suppliers.Croatia has already signed a contract with Po-land, but he explained that there are a lot ofconsumers in Europe. “Energy is top priorityof the Croatian government,” he said, notingthat his country is also planning a lot of elec-tricity projects, including thermal plants.

He said that Croatia does not have a hublike Austria’s Baumgarten so it is interested inall gas projects, including South Stream’s rivalNabucco pipeline, the Ionian-Adriatic Pipe-line (IAP) and the Trans-Adriatic Pipeline(TAP), which will connect to IAP. “We’re in-volved in all the pipelines,” he said.

Oreskovic said IAP is also a priority. “It’snot Russian gas. It’s supposed to be Azeri gas.The idea is that you have Russian gas, youhave the Ionian-Adriatic Pipeline and thenyou have LNG,” he said.

Installed wind power capacity for the Eu-ropean Union has passed the 100GWmark, a new report by the European WindEnergy Association (EWEA) shows. Itsaid 100GW is enough generating capac-ity to meet the total consumption of 57mnhouseholds and is the equivalent to thepower production of 39 nuclear powerplants. The group noted that speed with whichthe EU has reached the level comparedwith the slow going of the industry in ear-lier years, pointing out that while it tookthe European wind energy sector 20 years

to install its first 10GW, it only needed 13years to add an additional 90GW.“It would require burning 72mn tonnes ofcoal annually in coal fired power plants tomatch Europe’s annual wind energy pro-duction,” EWEA Chief Executive Chris-tian Kjaer said.“Despite only utilising a tiny fraction of

Europe’s vast domestic wind energy re-sources, wind power is having a substan-tial impact on Europe’s energy securityand environment and benefits us hugely increating green jobs and technology ex-ports,” he added.

ENERGY|RENEWABLES

EU reaches 100GW wind power capacity

On 1 October, Russia's Gazprom Marke-ting and Trading has signed an agreementto supply liquefied natural gas (LNG) toIndia's GAIL for 20 years, the companiessaid in a statement. The supplies are expec-ted to start from 2018-19. Under the termsof the agreement, GAIL will receive 2.5mnmetric tonnes of LNG sourced from Gaz-prom's own production facilities and globaltrading portfolio, the statement read.The price GAIL pays the Russian gasgiant will be based on an oil-indexed for-mula and the gas will be delivered to In-dian LNG import terminals at Dahej,Dabhol and Kochi. "We are looking for-

ward to working together with GAIL tohelp meet India's expanding gas demandwhilst securing a long-term market forRussian gas," Gazprom Marketing & Tra-ding CEO Vitaly Vasiliev said.GAIL Chairman B. C. Tripathi has saidthat to meet the growing appetite of theIndian market, GAIL has been expandingits global presence to secure long term gassupplies. "The deal with Gazprom rein-forces GAIL's commitment to facilitatethe development of the Indian market,"Tripathi said. "The deal also marks our ef-forts to create a well-diversified and secu-red supply portfolio."

ENERGY|GAS

Gazprom signs 20-year LNGsales deal with India's GAIL

ENERGY|GAS PIPELINE

Hungary may lose out to Croatia in South Stream transit By Kostis Geropoulos

12NEW EUROPE7 - 13 October, 2012

ENERGY & CLIMATE

Russian President Vladimir Putin in his Novo-Ogaryovo residence outside Moscow, 28 September 2012. Putin is

pushing for South Stream in an effort to diversify Russian gas routes away from transit countries such as Ukraine.

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Royal Dutch Shell and a number of west-ern banks are examining the plannedTurkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline, newsagencies reported on 3 October. TheTurkmen side conducted several interna-tional road shows for TAPI in Septemberwith the participation of the Asian De-velopment Bank (ADB).

Meanwhile, Turkmenistan's Ministryof Petroleum and Mineral Resources said

multilateral discussions focused on accel-erated implementation of TAPI. Repre-sentatives from Chevron, Exxon Mobil,BP, BG Group and Malaysia's Petronasexpressed interest in participating in theplanned pipeline, Trend reported.

TAPI aims at ensuring the long termsupplies of over 30bn cubic metres ofTurkmen natural gas to South-East Asiaannually. The start of the project wassigned in Ashgabat in late 2010.

In May 2012 Turkmenistan signed amemorandum of understanding withTransit Afghanistan on TAPI. Contractson the sale of Turkmen gas were alsosigned with the State Gas Systems of Pak-istan and Indian GAIL. The governmentof Turkmenistan said delivering gasthrough the pipeline would provide energysecurity to Asia. Prospects for constructingthe pipeline are complicated by securityconcerns in war-torn Afghanistan.

ENERGY|GAS PIPELINE

Energy majors, western banks examine TAPI project

Rompetrol examines data on its future ac-tivities in Iraq, Managing Director GavitKurkimov said. “We have just visited Iraq.The main purpose of our visit to Iraq wasgathering of information on possibilitiesdrilling there,” Kurkimov said.

He clarified that so far they are study-ing the data collected during the trip."There (in Iraq), we do not carry out anyactivities. So far we have opened an officein Baghdad," he said

According to him, the company is con-sidering conducting drilling operations inthe west of Iraq. "But we have not decidedif we are going to work in the west or thenorth of Iraq. We need to analyze the in-formation collected during the trip, andthen develop a business project. The finaldecision will be taken according to the re-sults of this project," he concluded.Kazakh state oil company KazMunaiGazowns 100% of shares of the RompetrolGroup NV (TRG).

Meanwhile, Rompetrol performs serv-ices operations at the oil fields in Libya,

Kurkimov said. “Our upstream businessis represented in Libya. The Libyan gov-ernment pleaded us to start maintenanceservices at the oil fields,” Kurkimov said.

According to him Rompetrol intensifiedits efforts in Libya since the beginning ofthis year. “We have three drilling rigs inLibya. With the help of them we carry outtotal overhaul of oil wells,” he said.

According to him, now, Libya has set anambitious goal - to reach the pre-war oilproduction. "In this regard, Libya today hasa great need for overhaul repair of oil wells,"the managing director of Rompetrol said.

Rompetrol also plans to open 700 fuelfilling stations in Ukraine within the spaceof five years, said to New Europe TimurAzimov, the senior vice president ofRompetrol. "We have already entered theUkrainian market, where we have estab-lished a company Rompetrol Ukraine,which distributes fuel in the domesticmarket of the country. We already havetwo stations there," Azimov said.

He recalled that this year Rompetroland Naftogaz of Ukraine signed a mem-orandum of establishment of Joint Ven-

ture, which aims to build fuel filling sta-tions in the Ukrainian market. “Twoworking groups were created to work onthe implementation of the plannedarrangement. The feasibility study on thedevelopment of Ukrainian market byRompetrol has been already completed.We expect that joint venture will start op-erations by the spring of next year,” hesaid. “We have the potential to enter thismarket, as Ukrainian refineries cover only30% of its needs. Our deliveries to thiscountry reach 350,000 of light oil prod-ucts. We consider several alternatives ofbrands: either Rompetrol – Naftogaz orKazMunaiGas, Azimov said.

In 2007 Kazakh state Oil CompanyKazMunaiGas took up the 75% of sharesof the Rompetrol Group. This dealopened access for KazMunaiGaz to thetwo refineries and to a large oil productsdistribution network. In June 2009 theKazMunaiGas completed the acquisitionof the remaining 25% of shares ofRompetrol Group, previously owned byRompetrol Holding SA, as a result of thistransaction.

By Kulpash Konyrova

13NEW EUROPE7 - 13 October, 2012

ENERGY & CLIMATE

Yalta talksyield no gas

YALTA, Ukraine - Yalta is all about conferences andagreements. At the Livadia Palace in 1945, Churchill,Roosevelt and Stalin met to re-draw the map of Eu-rope at the end of WW II.At the same beautiful and historical place which wasthe summer home of the last of the Russian Tsars,Ukraine’s Vice Prime Minister for Social Policy SergiyTigipko told a press conference on 4 October in thecontext of the Crimea Black Sea Economic Forum2012 that Kiev is always ready and open for gas-pricenegotiations with Russia. But he stressed that whilewithin the framework of commercial arrangements,Ukraine is ready for any concessions or agreements,Kiev “cannot agree to compromises to some strategicaspects. We cannot discuss political compromise”. Hewas responding to a question by New Europe onwhether Ukraine would make concessions to Russia –for example selling its national oil and gas companyNaftogaz or joining the Customs Union - in order toachieve a reduction in the price of Russian gas.Clashes between Russia and Ukraine over gas prices ledto suspended deliveries to Central and Western Europein the winters of 2006 and 2009. Asked by New Europeif he foresees another gas crisis, Ukraine’s First VicePrime Minister Valeriy Khoroshkovskyi told the pressconference in Yalta the EU should not worry. “I believethat in the nearest future, in the nearest winter, therewill be no crisis because we work within the frameworksof the agreement that has been signed. I see no prob-lems for the EU first of all because of some troubles thatmay exist between Ukraine and Russia. I’m sure thiswinter will be okay,” he said.Meanwhile, Edward Chow, a senior fellow in the En-ergy and National Security Programme at CSIS inWashington did not rule out the prospect of anothergas crisis between Russia and Ukraine. “I would not beshocked if there were one because this government isnow backed into a corner. It either accepts Russia’sterms and Russia’s terms are quite open and simple: Jointhe Eurasian Economic Community, forget about EUand share control of the international gas transitpipeline,” he told New Europe in Yalta. “Or if it finds forits own reasons that those terms are unacceptable, thenwe have a problem and a kind of problem that is noteasily resolved,” he said.Chow noted that regardless whether Russian Presi-dent Vladimir Putin and the Russian authoritieschose to heighten a gas dispute this winter or nextwinter, the probability of a crisis goes up every year.“We are almost overdue for one: 2006, 2009 and 2013is coming up,” he said.Meanwhile, Russia’s Gazprom is pushing ahead withthe planned South Stream via the Black Sea andSouth-Eastern Europe, bypassing Ukraine. Chowsaid that in the medium term and the long-termUkraine matters less and less. However, he noted thatSouth Stream probably wouldn’t be ready for anotherfive years and in the meantime Ukraine is still im-portant to Russia. But he also added that, given thatGazprom would like to control as many of the exportroutes to Europe as possible, the Russian gas giantmay still want the Ukrainian pipeline system after itcommits to building South Stream.

KGeropoulos@NEurope.eufollow on twitter @energyinsider

By Kostis Geropoulos

ENERGY INSIDER

Rompetrol Group General Director Zhanat Tussupbekov and Romanian State Secretary of the Economy Ministry Rodin Traiku cut

the ribbon at an official ceremony of the completion of the modernization programme of Petromidia Refinery by the Rompetrol Group.

ENERGY|OIL

Rompetrol mulls Iraq, Libya, Ukraine activities

It seems certain that the UK willhold a referendum on Europe, butwhen, and what will be the question?

UK Premier, David Cameron saidduring a recent visit to Brazil, “I don'tthink it is in Britain's interests toleave the EU, but I do think what it isincreasingly becoming the time for isa new settlement between Britainand Europe, and I think that new set-tlement will require fresh consent. Inthe next parliament, I think there willbe opportunities for a fresh settle-ment and for new consent to that set-tlement.”

This can be interpreted as sayingthere is likely to be a new treaty,when the nuts and bolts of ‘MoreEurope!’ have been decided and thissuccessor to Lisbon will be put to areferendum.

The three degreesHowever, there are those who are

not satisfied by this; the three differ-ent eurosceptic groups.

The main group are the right wingof the Conservative party. They havenever forgiven David Cameron fornot winning the last election, onethey felt should have been a landslidevictory. Their view is that oustingCameron in favour of a ‘real conser-vative’ such as Liam Fox, David Davisor Boris Johnson, who would committo an in-out referendum, which theysee as both flagship policy and a votewinner.

This group has influential support-ers in the party and in some sectionsof the media. Although they are com-mitted eurosceptics, their real priorityis to re-align the Conservative partypolicy agenda.

The second is UKIP, the brandname leaders for eurosceptics. Formany years they have campaigned fora referendum, but, perhaps seeing oneapproach on the far horizon, are inthe process of transforming them-selves from a single issue pressuregroup into a fully fledged politicalparty with a wide policy range. Theyare concentrating their political fireon the Conservatives, making al-liance with disaffected Tories, butthey will not trust Cameron unless areferendum promise is “written inblood.”

The final group is centred aroundNikki Sinclaire, the former UKIPMEP, now an independent. This

small group has sent two 100,000signature petitions to the UK gov-ernment and triggered a debate in theHouse of Commons. They are nowworking on a non-party politicalcampaign for a referendum, promis-ing to stand in the next Europeanelections and could gain supportfrom former UKIP supporters, whofeel the party has achieved little andfrom left wing skeptics who may beput off by the rightwards march byFarage’s party.

Making friends with NigelThe enigma in the centre of the

referendum issue is Nigel Farage,who is the embodiment of UKIPwith a high recognition factor. Fewpredict much future for UKIP afterhis departure, but they do seem to bepolling slightly higher at around 8%.They’re coy about the reason, but thecollapse of the far right British Na-tional Party seems to be connected tothe rise in support.

This is not to say that UKIP is aracist party. Aware of disillusionedBNP and similar supporters consid-ering moving to UKIP, or even aim-ing for an overthrow, Farage quicklyinstituted a list of parties whose for-mer members were banned fromjoining UKIP. However, what Faragewants is subject to speculation.

Once the front man for UKIP, hehas increasingly taken a lower profileand no longer stands in by-elections,perhaps after suffering too many hu-miliating defeats.

He appears to have become less

concerned with Brussels and lookstowards the UK. The party does havea problem though; people won’t votefor them in anything but Europeanelections.

Unnoticed and unremarkable, inthe upcoming Corby by-election,UKIP have a competitor, from a UKnewspaper sympathetic to euroscep-ticism. This candidate is campaign-ing against wind farms, a new butcentral policy for UKIP. So, why is hestanding? Is this a spoiler from theTory right or just the usual disorgan-ization from the sceptics?

The Tory right and UKIP do havecommon interests, when it comes to areferendum, but who is playing who?

There is one more point. The lastreferendum in the UK, on changingthe voting system, was a farce. Thelevel of debate was pitiful and whocan say an EU referendum would beany better?

However, the vote is likely to bewon or lost, not in the British ballotbox, but in the Brussels corridors.There is an argument for postpon-ing a referendum until another treatyis ready to be put before the Euro-pean electorate, if only because theUK can contribute to the framing ofa replacement for Lisbon.

Should such an offering be clear,concise and a significant change, notthe product of a stitch-up betweenpowerful nations, it could get thepublic’s approval.

But another botch job, anotherLisbon will certainly be defeated, andnot only in the UK.

THEME: EU

UK edges towards EUmembership referendumThe complex world of eurosceptics

By Andy Carling

14NEW EUROPE7 - 13 October, 2012

ANALYSIS

President of European Commission Jose Manuel Barroso (L) and British Prime Minister David

Cameron chat during the EU summit in Brussels, Belgium, 9 December 2011

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Down thehighway

As Brussels gears up for another decade of navel gaz-ing in the attempt to botch the union together withwhat amounts to a new treaty, we can only look backat the long and winding road to Lisbon and preparefor the worst.Meanwhile the EU is punishing the citizens with thecosh of austerity for the failings of the political lead-ers who disregarded all warnings about the fatal flawsof the Eurozone, believing they would all fade awayin the glow of their supreme achievements.We can look towards the Commission headquartersand see the busy little bees inside, safe from auster-ity, with their kids going to the ‘right’ schools, takingthe ‘right’ courses, filling the Erasmus gravy train forbeginners courses and then, into the hallowed hallsof Berlaymont. It’s one of our little secrets, our bur-geoning hereditary bureaucracy. Yet another sign ofeventual collapse.The truth about the EU is damning: The institu-tions are full of decent people, the parliament is fullof decent people. This is where decent people haveled us. It’s not their fault and it’s not going to getany better.It’s human thing. Basically, humanity has peaked. Assomeone who has an IQ higher than the alcohol con-tent of Belgian beer, it has been obvious that some-thing is going on. Take Mars for example. There’s anatomic powered laser wielding robot storming allover the place. We also lobbed a bit of metal towardsthe nothingness and today, Voyager is about to enterdeep space, helpfully inscribed with an etching of hu-mans and our address. Did we really think throughhanding that information over? Guess that was thedays before data privacy.That’s a sign of our potential, a taste of what we cando and will continue to do, but when we look athuman potential and what human society has be-come, the obvious conclusion is that, as a species,we’ve blown it.Take something as basic as climate. Planet Earth,13.7 billion years to make and we wrecked it in lessthan a century. Not only that, but we are utterly un-able, despite all the worthy institutions, the massivebudgets and the overwhelming importance to oursurvival, to actually solve it.This comes after spending forty years in a nuclearstandoff that put generations in the face of suddenannihilation. We think we solved that little issue, butwe haven’t, we just don’t talk much about it, unlessit’s another ‘sounded like a good idea at the time’ ex-cuse for war, death and destruction in order to saveourselves from war, death and destruction.We’ve peaked. Evolution is a slow process and theworld is moving far too fast for our DNA to keeppace. Add to this, the fact that we’ve physicallypeaked. Our brains won’t get any bigger or smarter.But evolution marches onward. In 10,000 years, ifanything is still living on the ash strewn burned rockthat Earth looks certain to become, we’ll be backwith HG Wells and the Eloi and Morlocks. I thinkwe know who is going to be Eloi and whom theMorlocks will be. All I can do is take some small satisfaction in theknowledge that my descendents will eat them.

ACarling@NEurope.eu

By Andy Carling

CONSTRUCTIVE AMBIGUITY

We have a historic opportunity in our hands.The Common Fisheries Policy is reformedevery ten years and this is the only chance wewill get to reverse the catastrophic trend ofovercapacity and overfishing.

Today, three out of four stocks are over-fished: 82% of Mediterranean stocks and63% of Atlantic stocks. The fishing industryis experiencing smaller catches and facingan uncertain future. To safeguard the eco-nomic and social sustainability of our fleet itis vital to ensure that the long-term sus-tainability of our fish stocks and we musttherefore make sure that the necessarymeasures to do so are included in the cur-rent reform.

In our vision of the CFP, a radical re-form is needed and the establishment of anetwork of fish stock recovery areas is avital and effective tool in securing the re-versal of the collapse of the European fish-ing sector. These areas, in which all fishingactivities are banned, will enable commer-cially exploited fish stocks to replenish. As

a result of spill over fishermen will greatlybenefit as they will be able to catch largerquantities of fish whilst exerting much lessfishing effort.

A European Parliament scientific studyon the establishment of fish stock recov-ery areas to be presented in the FisheriesCommittee on 8 October indicates thatthe benefits of such areas are undisputed.In order to ensure that this tool is effectiveit is vital to include a clear legal obligationwith an overall target in terms of the per-centage of the territorial waters these areasshould cover and an end date for their es-tablishment.

According to the study a 20% target is aminimum, based on robust scientific datataken from existing examples of such areasthroughout the EU. This may be the onlychance we get to ensure that there is life inour oceans; we need to make sure that wedon't miss it.

Kriton Arsenis and Guido Milana areMembers of the European Parliament andon the Fisheries Committee

FISHERIES

Fisheries: Radical reform neededThree out of four stocks are overfished

15NEW EUROPE7 - 13 October, 2012

ANALYSIS

Fisher Eike Kaehler of Fischerei Koellnitz checks the nets early morning on Schauen Lake in Gross

Schauen, eastern Germany, on October 3, 2012. The fishers go out onto the lake to check the nets

twice a week. Fish caught on Schauen Lake are eels, luce, and zander.

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The animal health domain must continue toprove its worth and justify why it warrantspublic investment as the EU drafts its latestbudget amid the financial crisis, said Healthand Consumer Policy Commissioner, JohnDalli. Speaking at the EU veterinary week,Dalli said good animal health policies can helpgo a long way in helping the EU meet its 2020initiative, which calls for more efficient use ofresources to build a sustainable long-termeconomy.

Dalli said the EU would explore ways to re-

duce costs associated with animal health, in-cluding a proposal to revise the official certifi-cation currently required to slaughter animals.A simplification could save up to €80 million“without compromising the high levels ofsafety European citizens demand and enjoy.”

Dalli also said the Commission plans toadopt proposals reinforcing food safety, in-cluding a new Animal Health Law and oneimplemented into the financial framework ofthe 2014-2020 budget. The proposals will re-quire any potential investments to more clearlystate how the investment improves animalhealth and food safety.

“The economic and veterinary fields mustcontinue to work together to establish themost efficient and effective use of resources toinvest in animal health,” Dalli said. “This is ourclear duty when spending money that EU cit-izens have contributed towards the commongood.” Livestock farming in the EU alone isvalued at €149 billion per year.

Dalli said the key to maintaining animalhealth in an efficient manner is to focus on ap-propriate investment areas such as animal pro-ductivity and safe, easy trade within the EUand with the rest of the world.

“We have succeeded in greatly expanding

trade in animals and animal products becauseof (and not despite of ) high animal healthstandards,” Dalli said.

According to Dalli, the private and publicsectors must continue to both pay for invest-ments in animal health that prevent major an-imal diseases or to react to outbreaks. He alsosaid it is “essential” that a strong case for in-vestment is made.

“We must be able to reassure politicians andcitizens that a high level of animal health con-tributes not only to human health and well-being but also to growth and prosperity in theEU,” he said.

HEALTH

Commissioner Dalli: Invest in animal health

By Kriton Arsenis & Guido Milana

By Andrew Wagaman

ANIMAL WELFARE

Animal welfare report highlights case of exotic petsThe illegal trade in so-called exotic pets threatenpublic health and the environment in Europe,according to a new report.

The report, Wild Pets in the European Union,complied by ENDCAP, a pan-European col-lection of animal welfare NGOs, and launchedat the European Parliament on 3 October, high-lights the health threats to Europe through hetransportation of non-native species into Europefor use as domestic pets.

“The trade not only threatens biodiversity andthe local ecology but, many experts agree, repre-

sents an increasing risk to the health and welfareof European citizens. Animals, particularly thosecaught from the wild, may carry harmfulpathogens that are potentially infectious to hu-mans. Such diseases are called zoonoses. Morethan 60% of all human infectious diseases andup to 75% of emerging diseases may be traced towild animals”, co-author of the report, DanielTurner said in a statement accompanying the re-port.

According to the report, animals such as wildbirds (such as the African Grey Parrot, which arelisted as ‘near extinct’ by the International Unionfor the Conservation of Nature), various kinds

of reptiles, meerkats and monkeys are increas-ingly finding their way into the European mar-ket. The report recommends that the EU“should urgently review the impacts of the on-going trade in wild pets, in relation to its com-mitments to preserving biodiversity, reducing theimpact of invasive animal species, protecting thepublic, improving animal welfare and safeguard-ing the EU economy”.

It recommends that “appropriate and imme-diate action” be taken to harmonise animal pro-tection laws across the EU, the introduction ofsuitable import controls for exotic animals, aswell as stringent welfare protections for trafficked

animals. Speaking at he launch of the report, UKMEP Catherine Bearder said “the sheer amountof legal imports of wild pets into the EuropeanUnion each year is staggering. The ENDCAPreport goes to great lengths to show just how dif-ficult it is to care for these unfamiliar, unpre-dictable and dangerous animals. Aside from therisk to European citizens, there is also the im-pact to consider on the sustainability of these an-imal populations in their natural habitats. It mustbe stopped. I intend to make sure the EuropeanCommission fully digests this report and con-siders stringent, urgent rules to bringing thistrade in wild pets under control.”

By Cillian Donnelly

MUGLER© Mugler

CHALAYANphoto: Martin Bureau © AFP

CHRISTIAN DIOR© Christian Dior

BASIL SODA© Basil Soda

16NEW EUROPE7 - 13 October, 2012

FASHION & STYLE 17NEW EUROPE7 - 13 October, 2012

FASHION & STYLE

Tending towards the ‘counter-deco-rative’, last week’s Paris fashionbrands clearly set themselves apart

by showing a strong preference for amore-than-usual minimal style; some-thing of a Northern twist with a Japanesetouch. Silhouettes were long, lean andrather ‘closed’, as outfits had the flat-look-ing appearance of ‘solid structures’ (Lan-vin and Balenciaga).

This architectural tailoring, whichfavours thick frills, layering and draping,was undoubtedly influenced by JapaneseKirigami, paper cutting, and Origami,paper folding, techniques (Haider Acker-mann, Anne Valérie Hash and Givenchy).

White, old pink and sky blue were rem-iniscent of the ‘nude’ trend (Valentino,Viktor & Rolf, Pedro Lourenco and Paul& Joe), while ‘metallic’ hues, neon yellowand green tones, referred to futuristic in-terior design (Christian Dior, Basil Soda,Mugler and Chalayan). The checkerboardstyle predominance of black and whiteemphasized the impeccable cuts while ac-centuating the bust, waist or hips(Chanel, Roland Mouret and Balmain).

Prints were more than scarce, being re-placed by colour blocks in pure forms(Elie Saab). There was certainly an easy-to-wear confidence in the comfortable-seeming ‘one-piece only’ outfits,sophisticated enough to be worn just ontheir own (Jean Paul Gaultier and An-thony Vaccarello). Hairstyles were either‘day-time efficient’ or ‘evening-ly natural’,as makeup highlighted either fierce eyesor lips.

Indeed, the outrageous 80’s powerwoman figure seems to have undergone

quite a few transformations, becoming the2013 more reserved-but-proudly-unapologetic power girl with an athleticsilhouette and no time to waste.

Louise Kissalkissa@neurope.eu

GIVENCHY© Givenchy

BALENCIAGA© Balenciaga

ELIE SAAB© Elie Saab

BALMAINphoto: Pierre Verdy © AFP

CHANELphoto: Patrick Kovarik © AFP

ROLAND MOURET© Roland Mouret

HAIDER ACKERMANNphoto: Martin Bureau © AFP

PEDRO LOURENCOphoto: Francois Guillot © AFP

VIKTOR & ROLF© Viktor & Rolf

ANNE VALERIE HASH© Anne Valérie Hash

VALENTINOphoto: Martin Bureau © AFP

PAUL & JOEphoto: Martin Bureau © AFP

JEAN PAUL GAULTIERphoto: Pierre Verdy © AFP

ANTHONY VACCARELLOphoto: Pierre Verdy © AFP

No Sugar Added in ParisPARIS FASHION WEEK: SPRING/SUMMER 2013

LANVINphoto: Francois Guillot © AFP

Welcome to NE’s Brussels Agenda. All you need to know for a complete professional and personal life in Brussels.

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www.arsene50.be

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

In 1906, Victor Horta constructed the ArtNoveau temple. In 1989, it reopened asthe Belgian Comic Strip Center. Withinthe confines of this impressive building aretemporary and permanent exhibitionscovering an array of artistic delights. TheComic Strip Center has been known asthe number one place for comic lovers tomeander through, because the country ofBelgium is known to have more comic stipartists per square kilometer than any othercountry in the world. The most famous

comics that are housed within this muse-um are Tintin, Bob and Bobette, theSmurfs, Blake and Mortimer, among oth-ers. This Comic center is located not farfrom St. Hubert Galleries and the GrandPlace, and it is a great place to bring chil-dren who enjoy colorful displays of char-acters as well as a place where as adults weare able to reminisce on the joys of child-hood. For more information, go tohttp://www.comicscenter.net/en/home.

18NEW EUROPE7 - 13 October, 2012

BRUSSELS AGENDA

Lulu loopy

Lulu - opera playing at Le Monnaie from14 Oct to 30 Oct‘Lulu’ was Austrian composer AlbanBerg’s second and last opera. Adaptedfrom Frank Wedekind’s plays ‘EarthSpirit’ and ‘Pandora’s Box’ in 1937, ‘Lulu’depicts the extremes of human relations.Lulu is a woman who repeatedly succumbsto temptation and in the process destroysthe lives of her lovers and eventually her-self. Her brutal fall from glory ends in theclutches of infamous serial killer Jack theRipper. Musically, it champions the 12-tone method. Berg actually died with the opera unfin-ished in 1935, but the completed version is

considered one of the major works of the20th century. This version is directed byKrzysztof Warlikowski, who previouslydid productions of ‘Médée’ and ‘Macbeth.’With ‘Lulu’, the Polish director once againdelves the innermost depths of the humanpsyche and produces a moving requiem ‘tothe memory of an angel.” Paul Daniel willconduct the opera on most nights, withMichael Boder filling in on others.Barbara Hannigan and Kerstin Avemoplay the role of Lulu, and DietrichHenschel plays both Dr. Schön and Jackthe Ripper. For more details, seehttp://www.lamonnaie.be/en/opera.

12 - 20 Oct various locationsThis play should be one of the highlightsof Daba Maroc, the artistic season dedicat-ed to Morocco. Womens’ status comes upin every play of Ben Hamidou andGennaro Pitisci. ‘La Civilisation, ma mere!’takes place in pre-war Morocco and isabout a woman married at age 13 andignorant to everything outside her home,where she lives with her husband and twosons. Her sons, though, reveal the world toher by taking her travelling with them. Indoing so, they initiate her emancipation.The play examines the consequences ofthis newfound freedom and asks universalquestions about the female condition. Italso represents the modernization ofMorocco. In the oral tradition of his nativeculture, Ben Hamidou does right by DrissChraibi’s magnificent novel and allows

people to rediscover the work of the vision-ary author. In an interview for the journalSouffles, Driss Chraïbi declared in 1967:“But tell me: is not woman, wherever sheis, the last colony on earth?”‘La Civilisation’ plays at Maison DesCultures from 12 to 14 October and at LesHalles from 16 to 20 October. See daba-maroc.com for more details.

TAKE A LOOK

CREDIT: BELGA

(C) LA MONNAIE / DE MUNT - HOFMANN

‘La Civilisation, Mamere!’ Ben Hamidouand Gennaro Pitisci

Les Halles website

Would you like to advertise in New Europe’s Brussels Agenda? Ask for more infoadvertising@neurope.eu or don’t hesitate to call us at +32(0)2 5390039

Brussels Agenda 8 - 18 October

PLAYsuggest your event for our agenda:agenda@neurope.eu

Nocturnes 2012 Every Thursday evening from 17 to 22 thisfall, Brussels museums open their doors forfree. Among those taking part for the firsttime are the Belgian Museum ofFreemasonry (25/10) and the Museum ofLetters and Manuscripts (18/10). For a fullschedule and more information, go towww.brusselsmuseumsnocturnes.be.

Scissor Sisters 8 Oct 20:00 AncienneBelgique A product of New York’s gay scene, theScissor Sisters have been the 21st century’sanswer to Queen. They play pop/glamrock and have electronic disco inclinations.Mostly, they like to have a good time.Since their eponymous 2004 album andbreakout Pink Floyd cover hit‘Comfortably Numb,’ the band has built alarge following. This past spring, theScissor Sisters returned with a new album,‘Magic Hour’ this past spring. It includesthe single ‘Only for the Horses.’

Angus Stone 12 Oct 19:30 Botanique Having parted professional ways with hissister Julia Stone in 2011, the Australianfolk singer re-started his solo career andreleased an album, ‘Broken Brights,’ thispast July. It debuted at No. 1 on iTunes inAustralia. With his lazy but gritty drawl,Stone injects a blues element to hisacoustic music.

Chris Isaak 14 Oct Ancienne Belgique Being a famous voice that we heard in the80’s, Chris Isaak has still not lost his touchwith the new launching of his album‘Beyond the Sun’. This new album starts atthe Sun studio where famous musicianssuch as Elvis, Roy Orbison, Johnny Cash,

and Jerry Lee Lewis first recorded theirmasterpieces. This is a tribute album to allof these ancient but unforgettable singersthat have heavily inspired the life of ChrisIsaak since he started his musical career somany years ago.

Slash featuring Myles Kennedy 17 OctAncienne Belgique (following G_Ralbum)Guns N’ Roses phenomenal guitarist Slashhasn’t stopped playing since the glory daysof rock and roll. Slash has produced manyside projects and bands, such as Slash’sSnakepit and Velvet Revolver, as well astwo solo albums. His newest album,‘Apocalyptic Love,’ features MylesKennedy as his lead singer. Kennedy hasbeen a part of three bands and is currentlyassociated with Alter Bridge. The new hitsingles on this album are ‘Halo,; ‘Standingin the Sun,’ and ‘Bad Rain.’

Nikki Minaj 18 Oct Forest National Trinidad and Tobago native and New Yorkresident Nikki Minaj might be the mostinfluential woman rapper of all time.Before Minaj embraced her musical tal-ents, she was known as an actress, televi-sion personality and voice actress. In 2010,she released her first album, ‘Pink Friday,’which made the Billboard Top 100 in notime. Minaj released her newest album,‘Pink Friday: Roman Reloaded,’ and onceagain she has reached the top of the chartswith her popular hits such as ‘Starships’and ‘Pound the Alarm.’

The economic situation in Greece: A viewfrom the Commission 8 Oct 13:15 - 14:30 1, Place du CongrèsThis CEPS event will feature HorstReichenbach, head of the EuropeanCommission task force for Greece.Reichenbach has had the unenviable task ofimplementing structural reforms in thestruggling country. Extremists evenattacked his home in Potsdam in May.Recently, though, Reichenbach has praisedGreece for its “substantial progress” in car-rying out structural changes. ExpectReichenbach to specify the ways in whichGreek Ministry of Development is spurringthis progress. Non-members may attendfor 50 euros, paid in cash at registration.

Oncopolicy Forum 2012: The Future ofPersonalised Cancer Medicine in Europe09 Oct 2012 08:30 - 17:30 BibliothequeSolvay Parc Léopold, Rue Belliard 13A new up and coming developmentalbreakthrough has finally emerged from themedical field of oncology. The theory nowposits that each patient is individual andunique, and the cancer that is forming canbe treated according to diagnosing thepatient individually, resulting in a betterchance of completely eradicating tumorsout of the body. Researchers and physiciansalike are still trying to form concrete evi-dence in order to back up their newlyformed ideas. Nonetheless if you have lost aloved one to cancer or seek to learn newinformation on this cutting-edge advance-ment in medicine all are encouraged tocome.

Towards a Common European frameworkfor Sustainable Building Assessment(CESBA)10 Oct 14:00 - 17:00 Euroregion AlpesMediterranee Rue Du Trone 62The European Federation of RegionalEnergy and Environmental Agencies(FEDARENE)The European Union has set ambitious cli-mate protection targets for 2020. The build-ing sector represents a cornerstone. Newquality standards for buildings are develop-ing. Challenges for all stakeholders arise.Building assessment is the crucial tool toface these challenges.Several European projects have developed,

compared, harmonized, and explored vari-ous building assessment tools. 5 Europeanprojects have held four joint working ses-sions over the last 2 years to find a collectiveagreement for a common framework forassessing sustainable building. Speakersinclude Paul HODSON, Head of theEuropean Commission's energy efficiencyunit, DG Energy, European Commission;Andrea MORO, Enerbuild/IRH.

The State of Europe: Escaping theDoldrums11 Oct 9:00 - 16:30 Palais d’Egmont 8 bis,Place du Petit SablonThe ninth annual “State of Europe” round-table held by Friends of Europe will featureJosé Manuel Barroso, Herman VanRompuy, Mario Monti, several EUCommissioners, over 50 MEPs and MPsand more than a dozen ministers anddeputy ministers. The roundtable will bringtogether some 80-100 senior European per-sonalities for a brainstorm on Europe’sfuture. The first session will discusswhether, as the gap between Europe’s richand poor becomes more marked by the pol-itics of austerity, EU politics need to beredefined by demands for fairness. Ways tokeep up with new powers such as Chinaand India will be the focal point of the sec-ond session. The third and final sessionaddresses how the economic crisis has con-tributed to the lack of trust in Europeanintegration. Speakers will discuss whether,among other things, further powers need tobe transferred to the European level inorder to make the single currency sustain-able and if another treaty change isinevitable. Nonmembers may attend bycontributing a one-off admission fee of 350euros excluding VAT (423.50 euros includ-ing VAT), which includes the networkinglunch and summit documentation. Registerat friendsofeurope.org.

19NEW EUROPE7 - 13 October, 2012BRUSSELS AGENDA

WORKsuggest your event for our agenda: agenda@neurope.eu

RESTO BITES

Le PepiniereChaussee de Tervuren 129, WaterlooTel 02 351 0460www.lapepiniere.be;resto.lapiniere@skynet.beJust up the road from the popular Lionmonument at Waterloo is this wonderful restaurant. It may not be quite as famous as the

Lion, which commemorates the Battle of Waterloo, but it’salmost as popular. It isn’t hard to see why. Run by local business-man Dominique Bernard and his wife Catherine, Le Pepiniere isone of six in a ‘chain’ which also comprises ‘The Snug,’ an Irish baradjacent to the restaurant which is particularly popular with themany Brits and American expats living in the area, not least as it’sthe only place locally where they can satisfy their love ofGuinness. Though seafood is the speciality, it boasts a terrific wideand varied menu, including a ‘degustation’, or tasting, menu whichgives you the chance to sample several dishes. There’s also the‘Our Creations’ menu, including delicious duck breast andpigeon. Starters from the main menu include scallop skewers andmarinated salmon while the ‘Classic’ dishes feature croquettes andfish soup. For those who miss home there’s Irish beef and a beefcurry. It's possibly the only restaurant in Belgium (and certainlythe only one of 50 in Waterloo) serving lobsters which are deliv-ered fresh from Brittany every week. Opened 14 years ago withspace for just 16 people,it now seats 130 diners inside and 120 ona delightful heated terrace (where diners can smoke).Best per-haps best known for its oyster and seafood bar, Le Pepiniere usedto be on the site of a garden nursery which Dominique turnedinto a restaurant. Excuse the pun but from humble roots it real-ly has grown rapidly and is, indeed, blooming marvelous. Open7/7 from noon-2.30pm and 7-10.30pm. Highly recommended.

Salle à l’étage ● Banquets - réunions - Terrase en été

Cosmo Cuisine

Av. de Tervueren,1051040 Etterbeek - Bruxelles

Tel: 02/ 732 43 31Fax: 02/ 733 61 17

French director Olivier Assayas competed atthe Venice Film Festival with his movie ApresMai (Something in the Air). It follows a groupof Parisian youths after the May 1968 protestsin the city. Olivier Assayas won the best screen-play award in Venice.

How did you arrive at the initial idea for thismovie?

This is not a movie about 68’, I think it’s verycomplex to do a movie about this period andnobody succeeded in reproducing this intricateperiod of our history. For me it was interestingto reproduce the world that was deeply movingand changing in that period that was the resultof 1968. It was interesting to show a worldwithout that was mutating. In this movie theprotagonists are also naïf while the guys of the68’ were much more mature and articulated.

Then this period was highly ideological andyou were always obliged to articulate your ideasin a ideological way or explain in ideologicalterms to the others.

In your movie you wanted to show differentpolitical groups supporting the ideas 68’, howdid you do that?

This aspect was never presented at the cin-ema, I remember that there was a faith in thefuture and it was a revolutionary period. Therevolution was almost there and the questionwas not to know when the revolution was tak-ing place but the big debate was on how tomake it successful. Another important aspectwas to understand the power dynamics thenthere were a fascination for the political historyof the 20th century and for the factory workersmovement.

There was a strong knowledge of the politi-cal theories of that period and in this frame-work there was a debate between thelibertarians, the Maoists and the Trotskites.

We didn’t speak about the communists be-cause in that movement they didn’t exist at thattime and the debate was among these smallgroups; this aspect defined this generation.

This angle was never presented in a movie,maybe because it was too complex to representand when I was speaking to my young actorsduring the shooting, they didn’t understand thepolitical theories behind it.

I wrote some parts of the movie with a spe-cial political language and my actors were notable to express those theories on the set.

The young protagonists of the movie aredeeply involved in culture, cinema and the arts.How important was this?

At that time nobody trusted the establishedmedia and young people built their own cul-ture running against the institutional norms,ruled by the old establishment.

In that period this generation was commu-nicating through the free-press in a very un-derground grass roots culture. There were alsoa very strong transnational communication be-cause there were other young people express-ing the same ideas in other countries, like in

England for example. They were communicat-ing through music, books and cinema; artefactsof the alternative culture.

What do you view politics today?I wanted to reproduce the intense political

debate because I feel frustrated by the fact thatthe essential political debates are completelyforgotten; today we are living a caricature likesimplification period..

The political debate is complex and one per-son has to clearly define himself while today theaspect is undefined .

CULTURE | FROM VENICE

‘Apres Mai’, looking backInterview by Federico Grandesso

20NEW EUROPE7 - 13 October, 2012

CULTURE

Cinematographer Olivier Assayas

ADVERTISEMENT

In her new book, The Politics of Voter Sup-pression: Defending and Expanding Ameri-cans’ Right to Vote, Tova Wang delves deepinto the issue of voter disenfranchisement. Sixyears in the making, this book is an honest,non-partisan testament to the issue of votersuppression in the United States. I recently sat down with Mrs. Wang for a con-versation about her book and the subject ofvoter suppression in general. A primary thesisof Mrs. Wang’s work is what she calls the VoterInclusion Principle, in which she proposes anew standard for election legislation and reformanalysis. This new standard is a simple one; themajority of legislation and reforms that serve toreduce the size of the electorate are illegitimateand possible illegal, while almost all laws thatserve to increase voter registration are benefi-cial to democratic elections. Mrs. Wang, a native New Yorker, first becameinterested in the subject in the wake of the 2000presidential elections, particularly due to theballot controversies in the state of Florida.Shortly thereafter Mrs. Wang began workingwith the Carter-Ford Commission, formallycalled the National Commission on FederalElection Reform. This commission was estab-lished in order to research ways to improve elec-tions in the United States. In 2006, whileworking with this commission, came the truegenesis of Mrs. Wang’s research for this book.While studying the history voting laws in thestate of Georgia, Mrs. Wang found that thelanguage of voting laws that were designed toexclude certain demographic groups from vot-ing 150 years earlier to be remarkably similar tomodern legislation officially designed to com-bat voter fraud. Interestingly enough, “voterfraud” is not exactly a significant problem in the

United States. In fact, a recent study found thatthere have been just 53 cases of voter fraud inthe US in the last five years. Under new legis-lation in some states, voter fraud can be as triv-ial as a teacher helping students to register asfirst-time voters, as shown by a recent case inFlorida. The issue of modern voter suppressionhas been around since the 1960s and the Vot-ing Rights Act. At this time, the RepublicanParty began attempting to limit the registrationof certain groups known to vote Democratic:African Americans and young people. Themost common shape that voter suppressiontakes is the need for government-issued iden-tification at the polls. This, Mrs. Wang says, isnot necessarily bad, but the system should relymore on the government to provide identifica-tion to the people. In general, demographicsthat tend to not have proper identification arealso on the left. According to Mrs. Wang, one of the hardestparts in writing this book was remaining non-partisan. The Republican Party simply hasmore to gain by limiting the electorate, as thosewho are vulnerable to this tend to commonlyvote Democrat.The biggest problem, and the reason that statelegislatures can get away with these laws, is thatthe majority of the population is unaware. Mrs. Wang also speaks of ways in which to in-crease voter turnout. The most effective tacticto do so is allow same-day registration at thepolls. In North Carolina in 2008, new reformallowed for early voting and same-day registra-tion. The result was a 5.7% increase in voterturnout in that state, and the first time a De-mocrat had won the state since 1976.The Pol-itics of Voter Suppression: Defending andExpanding Americans’ Right to Vote was re-leased on 21 August and is available both dig-itally and in hard copy.

BOOK REVIEW | US POLITICS

Voter suppression in the US elections By Sam Stewart

Philippine government has approved acontroversial cybercrime law signed on 12September, despite citizens and mediagroups' protests, that fear the creation ofa new censorship system.

The law was created to prevent cyber-sex, online child pornography, identitytheft and spamming.

However, it now also punishes cyber-crime by up to 12 years in jail to “addresslegitimate concerns" about criminal andabusive behaviour online. Users' com-ments on social networks can be a reasonto be fined or arrested.

In addition, local authorities will beable to search and seize data from citi-zens' accounts, published the BBC.

"Questions have been raised about theconstitutionality of certain provisions of

the act. We recognise and respect effortsnot only to raise these issues in court, butto propose amendments to the law in ac-cordance with constitutional processes,"said presidential spokesman Edwin Laci-erda.

After the approval, reactions started toappear in different sectors. Anonymousactivists hacked government's sites, jour-nalists have held massive concentrationsand Facebook users replaced their profilepicture with a blank screen.

“The Philippines has been a leader inInternet freedom,” said Harry S. Roque,president of Media Defense South EastAsia, an advocacy organization. “This lawmakes the Philippines at par with otheroppressive regimes in Southeast Asia thatimprison and intimidate bloggers.” NR

Philippines sets online law despite protests

The third 2012 Global MBB Forum inVancouver concluded successfully, accord-ing to the ICT solutions provider. Be-tween 24 and 26 September hundreds ofleaders from global mobile operators, reg-ulatory agencies, industry analysts andchip manufacturers, among others, dis-cussed the development and future of mo-bile broadband (MBB).

Huawei distributed Universal MobileTelecommunications System (UMTS)and Long Term Evolution (LTE) net-works in Canada, which is one of themost developed MBB countries in theworld with the highest device penetra-tion.

At the MBB Forum, attendants sharedknowledge and discussed topics aboutLTE spectrum, new MBB technologies,LTE roaming and future MBB businessmodels. They also experienced Huawei'ssolutions on demo sites of local operators.

Besides, the event also saw the releaseof new industry-changing end-to-endMBB solutions from Huawei that aim totackle signalling and connections stormsas well as other business challenges in-volved in realizing true MBB businesssuccess.

Data traffic is growing day-by-day andHuawei's work is designed to meetchanging customer demands and industrytrends. “The expected 500-fold growth inmobile data traffic within the next tenyears will bring both huge challenges andopportunities”, said David Wang, HuaweiPresident for Wireless Networks.

In addition, the Chinese company “willcontinue to launch innovative solutionsand focus on customer needs and indus-try trends, building ultra-wide pipes andhighly efficient, as well as profitable MBBnetworks, to ensure that operators achievebusiness success.” NR

Huawei bets on Mobile Broadband

21NEW EUROPE7 - 13 October, 2012

TECHNOLOGY

David Wang, Huawei President for Wireless Networks

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Customers at an Internet cafe look at Facebook profiles that have turned black

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The Facebook founder met RussianPrime Minister Dmitry Medvedev on 1October as he visited Moscow to boostthe social network’s presence in thecountry and look out for new talents.His visit was also to attend the Face-book Hack event in the city.After the meeting, Zuckerberg wrote onhis Facebook wall “Good conversationwith Prime Minister Medvedev,” andadded a picture of the two at the Russ-ian leader’s residence.“As you know we do not just have gasand oil and gold and diamonds in Rus-sia but we also have an IT industry,”Medvedev told Zuckerberg in com-ments published by the government.Facebook has an estimated five millionusers in the country, meaning that Rus-sia is one of the few major countries inthe world where the social network isnot number one. Russian users prefer itsrival Vkontakte. The CEO explained in a TV interviewthat “I am here primarily to talk to theentrepreneurs and engineers who arehere building things and about innova-tion in general. I’m here to help and en-

courage people to build stuff.” However,according to local media, he is trying totempt the best Russian programmersaway from Moscow to work on highersalaries in the US.Facebook’s mission is crucial now thatthe country is warning citizens on thepossible influences that foreign sitescould generate. The site has two mainroles in the region, a citizens' tool fortheir private lives, and also a public in-strument for politicians.Two of the largest investors in the so-cial site are Russian (Alisher Usmanovand Yuri Milner) and during the 20minute gathering Zuckerberg andMedvedev talked about the importanceof Facebook in politics, like its role inthe current American campaigns. Theyalso discussed copyright rules and high-tech business and the CEO gave theRussian leader a T-shirt.This is not Facebook’s first attempt toexpand its presence in the Russian mar-ket. Also this month, the companysigned a deal with the mobile phone op-erator Beeline to provide a free applica-tion to subscribers. NR

Zuckerberg visits Russia toincrease Facebook presence

Russia's Prime Minister Dmitry Medvedev (L) receives a T-shirt as a present from Facebook

CEO Mark Zuckerberg

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FINLAND | DEFENCE

Defence Force announcesjob cut detailsDetails of the first stage of the Defence Forces’ reorganisa-tion were announced on 1 October. Some 865 people are tolose their jobs. President Sauli Niinisto said the cuts willnot affect Finland's defence capability, YLE News reported.The Defence Forces reform was announced at the start ofthe year. It included 1,200 redundancies, further staff cutsdue to natural attrition and plans to close a number of gar-risons and military facilities. Of the 865 jobs to be cut, 130will be soldiers' work. Some 400 jobs reprieved under thedetails plan could still face the axe at a later stage. The cutsannounced last Monday will reduce the Defence Forces'payroll by 2,100 people by 2015. Commenting on the re-dundancies, President Niinisto, Commander-in-Chief ofthe Finnish armed forces, said personnel cuts would not af-fect the nation’s defence capability. However, he expressedhis concern over finances for the defence forces after 2015.

SWEDEN | MANUFACTURING

Ikea 'erases' women fromSaudi catalogueSwedish furniture retailer Ikea has removed out all thewomen from the version of the company's famed catalogueto be distributed in Saudi Arabia, prompting a stern reac-tion from Sweden's trade minister, The Local reported on1 October. Nearly 200 million copies of Ikea's forthcomingcatalogue will be printed in 27 languages for distribution in38 countries. And the catalogues will be nearly identical,save for those printed for distribution in Saudi Arabia, acountry where women don't get to vote, drive cars, or movefreely on the streets, the Metro newspaper reported. In theSaudi version of Ikea's annual booklet, all the women whoappear in images featured in the catalogue in other coun-tries have been removed via photo retouching. In theSwedish version of the Ikea catalogue, for example, amother can be seen standing at a sink next to her child in astylized bathroom. In the Saudi catalogue, however, there isno mother; the child stands at the sink alone. In anotherimage, a woman and a little girl who appear to be studyingin the Swedish catalogue have been completely removedfrom the Saudi version, leaving an empty room.

GERMANY | MEDIA

News agency DAPD bankruptGermany's second biggest news agency DAPD said lastTuesday it was declaring bankruptcy, in a surprise move thatwas set to affect 299 of the group's 515 employees, TheLocal reported on 3 October. Six other subsidiaries of theholding company DAPD Media Holding would start in-solvency proceedings last Thursday, the group said in astatement. Sources close to the agency said that salaries forSeptember had not been paid and the Federal LabourAgency would pay employees for this month and in Octo-ber and November. An administrator has been appointedwho will decide the agency's future by the end of Novem-ber, the statement added. "During the ongoing insolvencyprocedure, the DAPD companies will continue its newsproduction operations. Clients will receive their accustomedservice in the same volume and to the quality they are usedto," the firm stressed. DAPD was formed in 2010 after amerger of the DDP agency and the German service of USnews agency Associated Press (AP). Its main competitoron the German market was national news agency DeutschePresse Agentur (DPA). The announcement came as a sur-prise in Germany as the group has said it was expanding.Last year, it took over the photo agency Sipa, which had it-self recently bought AP's French service, in a bid to com-pete with Agence France Presse (AFP) on its home marketin France.

22NEW EUROPE7 - 13 October, 2012

EUROPEAN UNION

According to Bloomberg, Finland mayphase out the use of coal in energy pro-duction by 2025. The news agencyquoted Economy Minister JyrkiHakamies comments published from theparliamentary debate, it was reported on2 October.

The Finnish government subsidiesand taxes seek to boost the use of re-newable energy and cut fossil fuel use

by 2020, according to the national cli-mate and energy strategy. The strategywas drawn first time in 2008, and thecurrent government plans to update itby the end of the 2012.

“ Investments into renewable energywill play a key role in the updated policy.All the imported energy which we canreplace with domestic energy sources notonly creates jobs, but also cuts emissions

and improves our current account,”Hakamies said.

Finland imports all of its coal, mainlyfrom Russia and Poland. Fortum is theFinland’s biggest power producer and itoperates the country’s largest coal-firedstation, the 920-megawatt Inkoo plant onthe south coast. Fortum also has a share inthe 565- megawatt Meri-Pori plant onthe west coast.

Europe's first plan to ban coal in energy production

FINLAND|ENERGY

SAS lifting ban on mobile phonesDENMARK|AVIATION

.One of the last bastions of quiet will beended when SAS introduces technologyinto some of its aircraft that will allowpassengers to speak on their mobilephones during flights.

The airline has already provided wire-less internet on some of their Boeing737-800 aircraft, which will be upgradedto also allow mobile phone use.

During a trial programme, SAS of-fered free internet access for customers onsome of its aircraft. Now, passengers onaircraft equipped with wireless will haveto pay 89 Danish crowns to connect tothe internet.

Passengers in business class and 'Econ-omy Extra' will be granted free access tothe internet however.

SAS primarily uses the internet-ready Boeing 737-800 aircraft forflights to and from Oslo and Stock-holm, so Copenhagen travellers head-ing toward these destinations will beoffered internet access.

There are no reports on whether SASwill also introduce quiet compartmentsfor their aircraft.

Glassmaker to close Orrefors facilitySWEDEN|MANUFACTURING

Financial woes have forced famedSwedish glassmaker Orrefors Kosta Bodato shutter two factories in southern Swe-den and lay off 130 employees, The Localreported on 2 October.New Wave Group, owner of Orrefors

Kosta Boda (OKB), last Tuesday issued aprofit warning as it announced that glass-works located in Orrefors and Aforswould be shut down.

"With the present economic uncer-tainty and economic development we

don’t see any possibility to achieve an ac-ceptable profitability during a foreseeablefuture without taking extensive meas-ures," the New Wave Group said in astatement.

Between 2008 and 2012, New WaveGroup has invested around 300 millionSwedish crowns ($45 million) to coverlosses at OKB but has yet to help returnthe operation to profit.

The company also cited the strong cur-rency as having a negative impact on

OKB's export business.As part of a turnaround effort esti-

mated to cost 212 million crowns, thecompany plans to move glass productionto the glassworks located in Kosta and at-tempt to sell the shuttered facilities.

New Wave Group chief financial offi-cer Lars Jonsson said that it wouldn't beimpossible for new owners of the glassfactories in Orrefors and Afors to con-tinue production at the facilities, but onlyon a much smaller scale.

Exhaust rises from cooling towers of the new Neurath lignit coal-fired RWE power station on September 11, 2012 at Grevenbroich near Aachen,

southern Germany. RWE, one of Germany's major energy provider, invested in new coal conducted power plants.

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23NEW EUROPE7 - 13 October, 2012EUROPEAN UNION

BELGIUM| EMPLOYMENT

Crackdown on ‘fictitious self employed’The Belgian de Standaard newspaper quoted today the in-terview of Jean-Claude Heirman, Director-General of thesocial inspection for de Tijd, according to which almost halfof the 'fictitious' self-employed in Belgium were Romanians,30% were Bulgarians, while 15% came from Poland. In ad-dition, Heirman said that the opening of European bordershas put the Belgian social security system at risk because if thetrend of abuse of social security benefits continues, "in twentyyears there will be no Belgian workers left". The main prob-lem lies in the fact that pursuant to rough estimations, be-tween 35% and 40% of all EU citizens saying they were inBelgium to work as self-employed, actually did not. Accord-ing to the director-general, it was mainly Romanians andBulgarians who committed the most self-employed benefitabuses as they were presenting themselves as being ‘self-em-ployed’ in order to get children or living allowances. He saidthat almost half of the 'fictitious' self-employed in Belgiumwere Romanian, while 30% were Bulgarians.

UNITED KINGDOM | FINANCE

First Derivatives on acquisition trailFinancial Software provider First Derivatives has acquiredthree London-based businesses in a deal valued at €3.9 mil-lion, RTE Ireland reported. The three firms are involved insupplying technology, consulting and investment manage-ment services to the financial services sector. Newry-basedFirst Derivatives works with investment banks and other fi-nancial institutions and has developed technology that helpsmanage electronic, high volume trading systems. The dealwill see First Derivatives take up 15 new staff in London. Ina statement issued to the London Stock Exchange First De-rivatives said it hoped the deal would open up new businessopportunities by expanding its base of clients and adding toits technology expertise.

IRELAND | ECONOMY

MSD sheds 90 jobs Pharmaceutical company MSD has announced that it isto shed 90 jobs at its plant at Brinny, Co Cork, RTE Ire-land reported on 3 October. Over the next six months,90 voluntary redundancies will be sought from 455 staff.The company employs a total of 2,300 people in Carlow,Dublin, Tipperary, Wicklow and Cork. The job cuts fol-low a decision by the company to reduce production lev-els of the Hepatitis C drug Interferon. MSD sitemanager Matt Corcoran said that "reducing the work-force is necessary and sadly unavoidable for the site tostay competitive".

HUNGARY | ENERGY

MOL completes Czech acquisitionHungarian oil and gas group MOL has announced that theacquisition of Bohemia Realty and Pap Oil has been com-pleted, Portfolio Hungary reported on 2 October. The ac-quisition of Bohemia Realty Company s.r.o. and Pap OilCerpaci Stanice s.r.o., announced on 3 July 2012, was com-pleted on Monday, MOL said in a statement on the websiteof the Budapest Stock Exchange (BSE). With the transac-tion MOL Group’s network has been increased with 124petrol stations in the Czech Republic, and therefore with the149 retail stations in total the company possesses a retail fuelmarket share of close to 5% by now.

The senior British MEP MichaelCashman is to step down at the nextEuropean elections in 2014.

Cashman, who has been a member ofthe European Parliament since 1999,announced on 4 October that he willnot contest the next election.

He is the longest serving LabourParty member in the West Midlands,

and the sole representative of that con-stituency since 2009. He has also an-nounced he will step down from theparty’s National Executive Committee(NEC), of which he has been a membersince 1998, and of which is is currentlythe chair. Speaking on the announce-ment of his retirement, he said that “ithas been an immense privilege to repre-

sent the West Midlands and I look for-ward to the remaining eighteen monthsof continued hard work. Since 1999 Ihave sought to shape legislation to cre-ate and protect rights at the workplace,fought for manufacturing industry andcampaigned to make the EuropeanUnion more transparent and accessiblefor citizens”

Senior British MEP to step downUNITED KINGDOM|POLITICS

Michael Cashman speaks as Chair of the National Executive Committee, on the first day of the annual Labour Party Conference inManchester, on September 30, 2012.

Swarovski staff go part timeAUSTRIA|CRYSTALS

Austrian crystal firm Swarovski is put-ting their 200 staff at their productionfacility in Lichtenstein on to part-timework because of a drop in demand fortheir crystal creations.

The company confirmed the movein a written release to the media, andadded that at the moment there were

no plans to also make part-time workcompulsory at their facility at Wattens.Wattens, a market town in the Inns-bruck district of Tyrol, is chieflyknown as home of the Swarovski crys-tal company.

The part-time work is likely to af-fect 200 of the 700 staff at the facility

in Triesen until May of next year.The long-term trend towards re-

duction in the popularity of the crys-tal figures has been acknowledged bymanagement for some time – whichfor example recently closed their op-eration in Jordan because of a fall indemand.

Sainsbury's beats second quarter sales forecastsUNITED KINGDOM|ECONOMY

J Sainsbury, Britain's third-biggest su-permarket group, posted better than ex-pected quarterly sales growth,RTEIreland reported on 3 October.

Sales were boosted by strong take-upof its own label range and the roll-out ofits convenience stores.

Sainsbury said that sales at storesopen over a year, excluding fuel, rose1.9% in the 16 weeks to 29 September,its fiscal second quarter.

The company trails industry leaderTesco and Wal-Mart's Asda by marketshare.

Many retailers across Europe are

struggling as consumers' disposable in-comes have been squeezed by risingprices, muted wages growth and gov-ernment austerity measures, and confi-dence has been sapped by the euro zonedebt crisis.

The results at Sainsbury, which en-joyed a healthy profile boost from itssponsorship of the London ParalympicGames, compared with Tesco's 0.1%sales improvement in its home marketafter 18 months of decline.

Sainsbury's outperformance over ri-vals was helped by strong growth onlineand in smaller convenience stores where

it is attracting thrifty customers lookingfor top-up shops rather than bulk buys.

Its sales growth compares with ana-lysts' average forecast of 1.4%, a rise ofthe same magnitude in the firm's firstquarter, and represents a 31st consec-utive quarter of underlying salesgrowth.

Total sales in the period were up4.3%, and 4.4% excluding fuel. Thegroup said its online business grew over20% year-on-year, while it opened 49convenience stores in the first half of theyear, with expansion continuing at a rateup to two new store openings per week.

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SPAIN|LABOUR

Unemployment increases The number of unemployed in Spain rose by 1.7% from Au-gust to September and now stands at 4.7mn, government fig-ures showed on 2 October. The number of people registered asunemployed grew by 478,535 people, or 11.32%, to 4.71mn inthe year to September, a Labour Ministry report said. Whencompared to August, the jobless figures were up by 79,645 peo-ple, or 1.72%. Most of the job losses in the month came in theservices sector at the end of the summer tourism period whileunemployment eased a little in farming, building and facto-ries. If seasonal variations are smoothed out, the number of jobseekers grew from the previous month by 25,078 people, or0.52%, to 4.82mn in September.

GREECE|BANKING

Alpha in talks with AgricoleOn 1 October Greece's Alpha Bank said it is in talks withFrance's Credit Agricole to buy its Greek unit EmporikiBank. Credit Agricole, France's third largest bank, is seek-ing to sell its Greek unit as concern continues over Greece'sfinancial crisis. "This transaction would contribute to theconsolidation of the Greek banking sector as part of the re-structuring and recovery of the country's financial sector,"a Credit Agricole statement said.

CYPRUS|DIVIDED ISLAND

Hydrocarbon diplomacyCypriot Government spokesman Stefanos Stefanou said thehydrocarbons natural gas can contribute to the solution of theCyprus issue because Turkish-Cypriots and Turkey, in theframework of a wider co-operation in the region, could alsobenefit from the exploitation of natural gas. “But this impliesthe solution of the Cyprus problem and we call upon Turkeyto co-operate for the solution, because it will benefit too,” thespokesman said while responding to media query about theon the statements of the Spokesperson of the UN SecretaryGeneral on hydrocarbons. “If Turkey does not consent anddoes not co-operate for the solution of the Cyprus issue, itharms itself and its own interests. This does not mean that theRepublic of Cyprus does not move forward –because there isan attempt to connect the exploitation of natural gas with thesolution of the Cyprus issue- and put the blame on the Gov-ernment of Cyprus”, the spokesman said.

ROMANIA|PRIVATISATION

Oltchim sale cancelledOn 1 October, Romanian Prime Minister Victor Ponta saidthe sale of the petro-chemical plant Oltchim has been can-celled and the privatization has failed, as the tender winner DanDiaconescu didn’t pay the €45mn necessary to seal the deal,Business Review reported on 2 October. Diaconescu tried torenegotiate the privatisation contract in the last 10 days andended up accusing the government of refusing to take his cash.

ROMANIA|BANKING

ING Bank to axe operationsING Bank, the second largest stock market deals intermedi-ary in Romania, will close down its equity market operationsin Romania, Romania Insider reported on 2 October. Thebank, which intermediated the listing of Fondul Proprietateainvestment fund in 2011 on the Bucharest Stock Exchange,will close down its entire brokerage operations in the world, ina strategic move within the group. The only regional broker-age activity left will be in Poland, but ING Bank will continueto be active on the equities markets in Benelux, the bank’s mainmarket. The move will affect 130 jobs in London, and only ateam of 8 in Romania and the Czech Republic.

24NEW EUROPE7 - 13 October, 2012

EUROPEAN UNION

Bulgaria’s Minister of Foreign AffairsNikolay Mladenov met with the newlyappointed US Ambassador to Bul-garia, Marcie Ries. At their first meet-ing, both expressed confidencethat successful co-operation betweenBulgaria and the United States couldbe extended, especially in the field ofeconomy and investment.

Thanking about the support his coun-try had received, Mladenov said that the

two countries shared common prioritiesnot only bilaterally, but also NATO allies.He added: “We have common prioritiesin the policy towards the countries of theWestern Balkans, as well as a shared vi-sion for the democratic future of theMiddle East and North Africa”.

Also today, the Bulgarian governmentapproved a draft intergovernmentalagreement with the States on enhancingco-operation in preventing and combat-

ing serious crime.The draft document contains impor-

tant elements necessary for effective bi-lateral law enforcement co-operation indealing with transnational nature of seri-ous crime, as well as provides for equaland reciprocal exchange of information,including DNA profiles, in accordancewith the laws of the supplying countrywith the aim for prevention and investi-gation of serious crimes.

Bulgaria, US expand co-operationBULGARIA|DIPLOMACY

Radical Islamic leader claims Burgas suicide bomberBULGARIA|TERRORISM

In an interview for the Centre for MiddleEast studies, published in a Bulgariandaily, the radical Islamic leader OmarBakri claimed that the suicide bomberwho killed five Israeli citizens and a Bul-garian bus driver on the airport of the cityof Burgas in July was his disciple.

Furthermore, Bakri was certain that theman of the footage released by the Bul-garian interior ministry was indeedMehdi Ghezali-a Swedish citizen whohas previously been a Guantanamo in-mate. In July, the Bulgarian authoritiesand their Swedish colleagues refuted theversion of Ghezali’s participation in theterrorist attack and stuck to the versionthat the perpetrator was Jacque FelipeMartin, aged 25, from the state of Michi-gan. The complicated situation requiredinternational support, so the Bulgariangovernment appealed to Interpol to de-

ploy team and assist the national author-ities in their investigation of the attack. Asa result, at the end of August, the author-ities in Bulgaria and Interpol jointly re-leased images of a suspected accompliceto the terrorist who was believed to be ofMiddle Eastern origin.

Back to the interview with Bakri-founder of the jihadist group AlMuhadzhirun who currently lives inLebanon after leaving Britain followingthe attacks at the London Underground.Talking about the identity of the menwho blew himself in Burgas, he said:“When I realised that this man was con-sidered to be connected with my people,I called the brothers in Britain to ask whohe was. They told me that he was a guyknown as Abu Ahmed. There was alsoanother nickname. This guy really was adisciple of mine, but just for a while.

Then, he left for Afghanistan. His nameis Mahdi Ghazali from Guantanamo”.

However, Bakri added: “I'm not talk-ing about the photo of the corpse, butabout the man from the footage who waswalking at the airport. For me, this wasAbu Ahmed”.

Asked about who was behind the ter-rorist attack in Bulgaria, Bakri repliedthat Al Qaeda was responsible (eventhough, according to Israel, it wasHezbollah which committed the act) andthat there were “very important people’with ‘a lot of power’ among those whodied in Burgas.

It seems that the tragic events in Bur-gas from this summer remain shroudedin mystery, while more and more detailsaround the attack come to light and‘change the course” of what actuallyhappened.

Intesa Sanpaolo Bank completes merger with CR FirenzeROMANIA|ECONOMY

Italian Intesa Sanpaolo Group success-fully merged its Romanian subsidiaries,after Intesa Sanpaolo took over by ab-sorbing the assets of CR Firenze Ro-mania, marking the first merger in fiveyears in the Romanian banking sector,Business Review reported on 2 October.The newly formed lender will handleassets of more than €5bn. Intesa will op-

erate a network of 90 branches and willhave around 1,000 employees. “IntesaSanpaolo has become one of the lead-ing financial groups in the world as a re-sult of successive mergers.

Our Group is among the top playersin many markets in Central and East-ern Europe and Romania remains oneof the markets with significant growth

potential for our bank,” Intesa SanpaoloBank Romania CEO Ezio Salvai said.Intesa Sanpaolo operates over 1,500branches and has 8.3mn customers in12 countries.

Intesa, which is the leading leader inItaly, has an international network ofspecialists that cater for corporate cus-tomers in 29 countries.

Bulgarian Foreign Minister Nikolay Mladenov said Sofia and Washington share common priorities not only bilaterally, but also as NATO allies.

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25NEW EUROPE7 - 13 October, 2012ENLARGEMENT

TURKEY|CURRENCY

Lira against euroNoting positive scenario of Turkish economy than those ofthe eurozone, the Turkish lira might rise against the euro,Zaman reported. After announcement by the EuropeanCentral Bank about bold and conditional measures to dealwith the euro zone crisis, from an 3 August low of 2.1725the euro/Turkish lira exchange rate rose to 2.3650 on 17September on a wave of euro demand. However, TurkishCentral Bank Governor Erdem Basci expects the inflationrate to reach 6.2% within end of this year, which might limitany short-term leeway to cut rates further, as the centralbank has held the main policy rate, the one-week repo rate,at the all-time low level of 5.75% for more than a year.

TURKEY|CONSTRUCTION

Firm eyes TanzaniaA Turkish business delegation recently expressed interestin importing semi-processed steel materials into Tanzaniato meet high demand. Turkey intends to establish a steelindustry in Tanzania to help add value to huge iron ore dis-coveries in the country which will help transform the coun-try’s economy, Zaman reported. According to Turkish SteelExporters Association Chairman Namik Ekinci, someTurkish steel manufacturers and exporters, who were on re-cent visit to Tanzania, aim to strengthen their co-operationwith Tanzanian manufacturers and business communities.

FYROM|DEFENCE

Regional military co-operationFYROM Defence Minister Fatmir Besimi said Skopje hasmaintained efforts to boost military co-operation with otherSoutheast European countries. The minister said that sucha move will further regional trust and Euro-Atlantic inte-gration, MRTOnline reported. Besimi said FYROM has abroad and intensive co-operation with all countries in theregion, both bilaterally and in the framework of regionalinitiatives. “The period of transition in Southeast Europehas increased the people's consciousness and their great de-sire to live in a common safety environment and to sharecommon values and interests in the region," said RadicaGareva, an associate professor at the FYROM MilitaryAcademy and the state adviser for communication systemsmanagement at defence ministry.

ALBANIA|ENERGY

EBRD to help hydro sectorThe European Bank for Reconstruction and Develop-ment (EBRD) recently announced a loan worth €5.2mnto Albania-based Hydro Power Plant of Korca. Such amove was part of EBRD’s strategy to improve energy ef-ficiency and dam safety. The loan would be used to financethe construction of two small installations in the east ofthe country, reads a press release. The EBRD loan will en-able Hydro Power Plant of Korca to construct two plants,Verbe-Selce 1 and 2.

ALBANIA|UNITED NATIONS

Nishani meets UN envoyWithin the framework of the 67th session of the UnitedNations General Assembly in New York, UN SecretaryGeneral Ban Ki Moon welcomed President of AlbaniaBujar Nishani. During the meeting, UN envoy hailed Al-bania’s contribution to UN especially in the reform processof the organisation, AENews reported. In turn, the Alban-ian premier congratulated the Secretary General for his sec-ond term in office and assured unreserved support ofAlbania.

On 30 September, Turkish Prime Minis-ter Recep Tayyip Erdogan, who is widelyexpected to run for the presidency in2014, was re-elected as leader of the Jus-tice and Development Party (AKP). Er-dogan faced no competition in the vote,which was held at a congress of his AKPparty. It was Erdogan’s last congress asprime minister and party leader as AKPbylaws set a limit of three consecutiveterms. In his speech, Erdogan said that

service was more important than titles.“We have shown everyone that an ad-vanced democracy can exist in a predom-inantly Muslim country,” Erdogan toldthe congress. “We have become a rolemodel for all Muslim countries.” Hevowed to forge a more diverse constitu-tion and turn a new page in relations withTurkey’s 15mn Kurds, in a speech lastingalmost two and half hours and meant tochart the AKP’s agenda for the next

decade. "We called ourselves conservativedemocrats. We focused our change onbasic rights and freedom," Erdogan said."This stance has gone beyond our coun-try’s borders and has become an examplefor all Muslim countries." More than 100foreign guests including Egyptian Presi-dent Mohammed Mursi, Iraqi Kurdishleader Massud Barzani and Khaled Me-shaal, the head of the Hamas movement,attended the congress.

Erdogan re-elected as AKP leaderTURKEY|POLITICS

Turkish Prime Minister Recep Tayyip Erdogan walks towards the podium before his a speech during a congress of his ruling Justice

and Development Party (AKP), Ankara, 30 September 2012.

Turkey rebukes US on its monetary policyTURKEY|ECONOMY

Addressing financial gurus from variouscountries at the third Istanbul FinanceSummit, Turkish Deputy Prime Minis-ter Ali Babacan urged US to make itsmoves more clear as the world’s largesteconomy does not have the luxury ofkeeping under veil its future monetarymoves, Zaman reported.

Babacan said that after looking at theUnited States, Turkey has noted an am-biguity in its finance policies. “Nobodyexpects a move until the presidential elec-tion in November. But right after theelection if the new American governmentdoes not take quick decisions about thedebt ceiling and automatic spending cutsand does not carve out a reliable economypolicy programme for 2013 and the pe-

riod after, 2013 may be a year that theeconomy of the US is debated,” Babacansaid. He stressed that a reliable, reputablemedium-term programmes should tackleeconomic problems.

Since inception of its three-yearmedium-term programmes in 2005, theTurkish government updates it everyyear, said Babacan. Economy-relatedCabinet members put emphasis on suchprogrammes noting high growth ratesfor the last two years. With regards todomestic markets, Babacan said theTurkish economy would be the fastestgrowing and have the highest employ-ment rate in Europe in 2012 and 2013.”Turkey’s growth rate will be low, about3% this year, but it will be a sustainable

one,” he said. Turkey will be able toweather all economic storms and itsbanks did not have any problems andmanaged to stand firm amid the eco-nomic crisis.

Underlining that the financial reformsthat were implemented in 2001 hadstrengthened the country in the face ofexternal shocks, he said four millionpeople had joined the pool of employedin Turkey since 2009. In order to keepthe banking sector resilient, Babacansaid the government would maintaintaxes on the Turkish financial sector at“reasonable levels.” He affirmed thatTurkey will be able to maintain lower taxrates compared with European andAmerican finance centres.

Ankara, Hanoi to boost bilateral trade to $1bnTURKEY |DIPLOMACY

Last month Vietnamese Deputy PrimeMinister Hoang Trung Hai hosted a re-ception for new Turkish ambassadorAhmed Akif Oktay in Hanoi. Hai ex-pressed hope that Vietnam and Turkeyaims to increase their two-way tradeturnover to $1bn this year, Zaman re-ported. According to him, both countrieshave immense opportunities to boost bi-lateral trade turnover from $852mn in2011 to $1bn this year. As a result, he

called on both countries to collaborateclosely and further support each other atregional and international forums.

Hai expects the Turkish diplomat in hismission will positively contribute tostrengthening the friendship ties and co-operation between the two countries.Hailing the rising status of Turkey in theregion, Hai said Vietnam will establishlong-term and effective co-operation withTurkey. He also called on Turkey to sup-

port its candidacy as a non-permanentmember of the UN Security Council forthe 2020-2021 term, the UN HumanRights Council for the 2014-2016 termand the UN Economic and Social Coun-cil for the 2016-2018 term. In turn, Oktaysaid he will try his best to bolster cooper-ation between the two countries in severalfields especially in organising trade fairsand exhibitions and launching a directVietnam-Turkey air route.

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CROATIA | ACCESSION

Preparations highlightedfurtherCroatian Deputy Prime Minister Neven Mimica recentlymet the Commissioner for Enlargement and EuropeanNeighbourhood Policy Stefan Fule in Brussels. The maintopic at the talks was Croatia’s final preparations for EUmembership. Both sides strongly adhered to a successfuland well-prepared accession on 1 July 2013, Javno reported.They also discussed the upcoming comprehensive moni-toring report that will be adopted by the Commission onOctober and especially issues identified in the chapters oncompetition policy, judiciary and fundamental rights as wellas justice, freedom and security. Fule was impressed to seethat Croatia is on track to meet its membership require-ments. He outlined the importance of the translation andrevision of the acquis in time for accession. He suggestedCroatia which is expected to join EU in less than ninemonths, to utilize the time in completing the remainingtasks related to the EU-membership, in particular thoseareas which require further efforts. He is convinced thatCroatia will pay emphasis on the aforesaid recommenda-tion and will continue to respect the commitments taken inthe EU integration talks.

B iH | DEVELOPMENT

IMF oks $€405.3 mln loan to BosniaThe International Monetary Fund (IMF) has approved anew €405.3 million stand-by loan to Bosnia to support thegovernment's economic programme to combat the economicslowdown, Fars news agency reported. The stand-by loan wasapproved late on September 26 in Washington. The IMFexecutive board announced that it has approved the two-yearloan, and released an initial installment of €60.8 million. Therest to be disbursed following a positive evaluation of the pro-gramme implementation on a quarterly basis. “The pro-gramme aims at countering the effects of the worseningexternal environment and addressing domestic structuralweaknesses,” it said. Nemat Shafik, IMF deputy managingdirector, said that Bosnia-Herzegovina's "prudent" financialsector policies have helped the country to tackle the global fi-nancial crisis, but called for improved fiscal policy coordina-tion. The IMF said in a statement that "in recent months,Bosnia's...economic recovery has been losing momentumand risks to the outlook have tilted to the downside.

MONTENEGRO | DEVELOPMENT

Montenegro, Luxembourgenhance bilateral tiesAt the recent 67th session of the U.N. General Assembly,Montenegrin Minister for Foreign Affairs and European In-tegration Nebojsa Kaluderovic met with Foreign Minister ofLuxembourg Jean Asselborn, Montenegro Times reported.In course of talks, Both ministers discussed further ways todevelop and deepen bilateral cooperation in different fields.They also stressed the importance of bilateral agreements oncooperation between Montenegro and Luxembourg, as wellas development projects in education, forestry, local admin-istration sectors. The interlocutors also exchanged opinionson the current situation in the region. World Bank offers €50mln to Croatia Export Finance Intermediation Project(CEFIL) The World Bank Board of Executive Directorstoday recently gave a nod for a loan worth €50 million whichwas granted to the Croatian Bank for Reconstruction andDevelopment, Javno reported. The additional financing loanwould be used for Croatia Export Finance IntermediationProject (CEFIL) which has already yield impressive outcome.Peter Harrold, Country Director for Central Europe and theBaltic Countries said that the global economic recession fol-lowed by the eurozone crisis gravely affected all economies inthe region, including Croatia's.

26NEW EUROPE7 - 13 October, 2012

ENLARGEMENT

Following the decision by the SerbianGovernment to forbid the Pride Marchscheduled for 6 October in Belgradeseveral European political parties andHuman Rights groups have conde,nedthe ban.

"The decision to ban the BelgradePride march for 'safety concerns' impliesthat the Serbian Government does notfeel ready to ensure freedom of expres-sion to its citizens and protect thosedemonstrating from potential violentaggressions. » S&D leader HannesSwoboda said:

"We expect all countries in theprocess of joining the EU to be able tofirmly uphold freedom and security ofall citizens, including lesbian, gay, bisex-ual and transsexual people", concludedSwoboda, who earlier this week hadsent a letter to theSerbian PM IvicaDačić to encourage him to allow thePride March.

Amnesty International and ILGA-Europe also urge the Serbian authori-ties to fully support the Pride march,and to guarantee the rights to freedomof expression and freedom of assemblyto all lesbian, gay, bisexual, trans and in-tersex (LGBTI) people in Serbia.

Amnesty International and ILGA-Europe are concerned that again thisyear, just a few days before the march isdue to be held, the organisers have notyet received full commitment by theSerbian Government to ensure themarch’s security and protection of theparticipants.

Amnesty International and ILGA-Europe note that the 2011 BelgradePride march was banned on grounds ofsecurity threats reportedly from extrem-ist groups. However, few of those whomade such threats were identified, andfew prosecutions have resulted.

The Liberals and Democrats in theEuropean Parliament (ALDE) alsostrongly condemned Serbia's decision toban the Belgrade Gay Pride for the sec-ond year in a row out of safety concernsover ultra-nationalist treats.

Jelko Kacin (Slovenia, LiberalnaDemokracija Slovenije), the EuropeanParliament's rapporteur for Serbia, isvery disappointed and comments:

"It is with deep regret that Iearn ofthis decision as it deprives citizens oftheir constitutional and legal right tofree expression and peaceful assembly. Itis another lost opportunity forSerbiathat perpetuates an image this countrydoes not deserve. It also deprives theSerbianPolice of an opportunity toprove that they are professional and ca-pable of maintaining public safety.

I am convinced that Serbia couldhave secured the safety for all Pride par-ticipants if there had been a will. I cannot help but conclude this decision is apolitical one that questions the rule oflaw in Serbia. The political message thatGovernment and its institutions sent tothe citizens of Serbia and to the LGBTminority has been understood and willbe assessed accordingly in the EuropeanParliament as well as, I am convinced,in other institutions."

The European Parliament will voteon a report evaluating Serbia's accession

prospects in March 2013. Sophie in 't Veld, (Netherlands, D66),

vice-president of the European Parlia-ment's Intergroup For LGBT Rights,adds: " Gay Prides across the world area celebration of diversity, equality andrespect. The ban of the Belgrade Pride isa sad development for Serbia and ashameful attempt to deny LGBT peo-ple their human rights, as well as a mis-guided provocation of the EU.

This ban threatens the image of Ser-bia and its progress towards becominga candidate EU member since we can-not accept that EU negotiations will beopened for a country that disrespectsequality and freedom of assembly. Localauthorities should authorise peacefuldemonstrations and provide protectionwhere necessary to guarantee free as-sembly, one of the basic freedoms oftheir citizens.

Besides, this is bad city marketing:This ban creates an image of intoler-ance, violence and fear, whereas thecity should work on making Belgradeattractive by displaying openness anddiversity".

Ban of Pride March raises concern

SERBIA|HUMAN RIGHTS

Airlines maintain flights to Serbia's NisMONTENEGRO|AVIATION

Montenegro Airlines recently an-nounced that in the coming winter sea-son it will continue operating flightsfrom Podgorica to Nis Constantine theGreat Airport. The decision was takenafter an agreement was reached with cityauthorities for the payout of subsidesworth half a million, Montenegro Timesreported. “The moment I found out thatsuch a decision has been made I knew Ihad to act immediately. Debt exists andhas to be paid, but I had to find a legalway to settle our obligations. We found a

way after consulting the Ministry of Fi-nance”, the Mayor of Nis, Zoran Perisic,said. The debt will be paid in two install-ments. Few weeks back, Montenegrincarrier suspended ticket sales betweenthe two cities and announced the sus-pension of the route. However now it hasagain started to sell ticket on the route.The airline plans to operate five weeklyflights this winter, compared to the dailyflights which ran throughout the sum-mer season. The airline also plans to op-erate one to two weekly flights from Nis

to Zurich. The managing director of NisAirport, Dragan Bugarinovic, hasblamed Jat Airways for the airport’s woesand has accused the national carrier ofavoiding Nis. The Serbian airline dis-missed any criticism on the ground thatthe flights are unprofitable. Bugarinovicsuggested that Jat should follow footstepsof Croatia Airlines’ recent and lease acommuter aircraft for flights originatingfrom Nis. Nis Mayor announced thattender procedures will soon begin to seeka new airline willing to fly to Nis.

Serbian Gay activists attend a parade in Belgrade, Serbia, 10 October 2010. Prior, during and after

the short march, hundreds of anti-Gay protestors with bricks, flares and bottles clashed in several

areas with the police. Dozens of people, most of them policemen, were reportedly injured.

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27NEW EUROPE7 - 13 October, 2012PARTNERS

NORWAY | DEFENCE

Kongsberg to deliver missiles to BrazilKongsberg Defence Systems has signed a contract withthe Brazilian Navy for the delivery of Penguin anti-ship missiles and associated equipment, Norway Postreported on 2 October. The missiles will be deployedon the Brazilian Navy's new maritime helicopters. Thecontract is valued at €33 million.

SWITZERLAND | AVIATION

Airline slammed for using free pilotsIn a sign of the cost-cutting in the airline business, Basel-based charter carrier Hello is employing pilots who work forfree in order to gain flying experience, The Local reportedon 2 October. The practice, slammed by Aeropers, the SwissAir Line Pilots Association, is revealed in a report by theZurich-based newspaper Tages Anzeiger. Pilots with a li-cence to fly typically need further training on specific typesof aircraft, the newspaper reported. The options can involvetraining programmes costing 80,000 Swiss Franks. Helloprovides an alternative, hiring inexperienced pilots whowork for free in return for gaining flying time. “We need inthe peak of the summer season additional co-pilots and theyneed hours of flight on the A320,” Bob Somers, the Irishexpat CEO of Hello said, referring to the Airbus plane. Thepilots are paid only expenses during the training period, thenewspaper said. It added that pilots even pay for the op-portunity to gain flying time with some European airlines,which are under pressure to cut costs. Aeropers spokesmanThomas Steffen said, whether pilots pay or work for free togain experience, the union views such practices as “repre-hensible”. Airlines are exploiting the plight of young pilotsand abusing them, Steffen said. "We doubt that these com-panies choose their pilots with sufficient care to ensure thatthey have the ability to securely handle the flights," saidSteffen. "This is not conducive to flight safety and cannotbe in the interests of passengers.”

NORWAY | ENERGY

Troll extension awarded to AkerInternational oil service group Aker Solutions has beenawarded a contract by Statoil for the extension of theTroll field on the Norwegian continental shelf, Nor-way Post reported on 1 October. The contract coversthe delivery of three subsea trees, tubing hangers and atool package. Estimated contract value is 250 millionNorwegian crowns. The extension is a call-off from acontract signed with Statoil in February 2012. Thespare tubing hangers will be utilized on several parts ofthe Troll field. The Troll field is the world's biggest sub-sea development with regards to the number of subseawells. Last year, Aker Solutions reached a major mile-stone in delivering the 100th subsea tree to the Trollfield. According to a company press release, the Trollcontract awards and deliveries have helped shape anddevelop Aker Solutions' subsea business. "Troll repre-sents a cornerstone of Norway's offshore oil and gasproduction with Aker Solutions being involved since1996. We look forward to executing this contract andassisting Statoil to realise all of the opportunities onthe Troll field," said Alan Brunnen, executive vice pres-ident of Aker Solutions' subsea business area. Troll islocated in the northern part of the North Sea, approx-imately 65 kilometres west of Kollsnes, near Bergen inNorway. The field contains 40% of the total gas re-serves on the Norwegian continental shelf and is alsoone of the largest oil fields on the continental shelf.Under this contract, Aker Solutions will deliver equip-ment to the oil section of Troll.

Swiss mining group Xstrata andcommodities giant Glencore said on1 October they had agreed on newterms for their tie-up to create amassive company worth $ 86.6 bil-lion and capable of out-muscling allthe other giants in the field, TheLocal reported.

After three weeks of suspense, thetwo companies headquartered in thetax haven of Zug, in central Switzer-land, finally agreed on the terms of thelong-delayed mega-merger to create"Glenstrata".

The general assemblies of bothSwiss companies had been set to ap-prove the blockbuster merger at thebeginning of September but the dealran into major resistance from severalXstrata shareholders demanding bet-ter conditions.

Qatar Holding, which is whollyowned by Qatari's sovereign wealthfund and is the single biggest share-holder in Xstrata with more than 12%of its shares, had led the opposition.

The opposition forced Glencore toraise its offer, giving Xstrata share-holders 3.05 -- up from the previousbid of 2.8 -- new Glencore shares forevery existing stock, which the com-panies said represents a 17.6% pre-mium on the price of the miner'sshares before the merger bid was an-nounced in February.

Xstrata and Glencore want share-holders to vote so that the combinedcompany, with a market capitalisationof about $86.6 billion and with a com-bined turnover of $ 209.4 billion, cancome into being by the end of the year.

If the merger goes through, "Glen-

strata" will become the world's fourth-biggest commodities company interms of market capitalisation, afterthe British-Australian BHP Billiton,Brazilian Vale and British-AustralianRio Tinto.

The merged company "will fuse therespective strengths of the two com-panies into a unique, vertically inte-grated natural resources group,"Xstrata chief executive Mick Davissaid in a statement.

Two major points of contentionwere ironed out in this last deal.

The bickering over who will headthe new entity had been resolved pre-viously, with Xstrata chief executiveMick Davis set to lead the combinedcompany for its first six months andthen step aside to be replaced by Glen-core's Ivan Glasenberg.

Xstrata and Glencore agree massive tie-up

SWITZERLAND|MINING

Mining group Xstrata chairman Sir John Bond passes in front og demonstrators as he arrives for a shareholders assembly of the Swiss commodities giant

Glencore on September 7, 2012 in Zug. A blockbuster merger between Glencore and Xstrata may be salvaged as Glencore offered to raise its offer, after

shareholder Qatar demanded better terms. Glencore had flatly refused to budge, but after a last-minute adjournment of a crucial vote on the merger today,

it made its new offer to exchange 3.05 of the new group's shares for every Xstrata share.

Statoil LNG expansion depends on new gas discoveryNORWAY|ENERGY

The owners in the Snohvit gas field li-cense have decided to stop the work ona possible capacity increase at theMelkoya LNG terminal, Norway postreported on 2 October.

According to a press release, the li-cense owners have concluded that thecurrent gas discoveries do not provide asufficient basis for further capacity ex-pansion. The license has not determinedwhether LNG or a pipeline solution isthe best concept for a potential capacity

increase at a future date.Over the last eighteen months, the

Snohvit license partners have carriedout studies for the expansion of the gasexport capacity from Melkoya. The in-creased capacity would enable the ac-celerated gas production of increasedreserves in the Snohvit license, togetherwith existing discoveries in the area.

Thorough studies have been carriedout of both an LNG train II and a dew-point facility/pipeline solution, and the

Snøhvit license has devoted consider-able resources to finding solutions thatcould make a capacity expansion prof-itable. The pipeline solution was stud-ied in collaboration with Gassco.

The possibility of producing in-creased reserves in existing trains hasbeen an alternative throughout theprocess, in addition to the two conceptsfor capacity increase. With new gas dis-coveries increased capacity may again beconsidered.

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GEORGIA | DEFENCE

Estonia discusses NATO aspirationsEstonia’s Minister of Defence Urmas Reinsalu and Geor-gia’s Minister of Defence Dimitri Shashkini met recently inTbilisi and concluded a defence cooperation treaty betweenthe two countries, Civil Georgia reported. The Estonianminister said that key position contained in the treaty is Es-tonia’s support for Georgia’s aspiration in the direction ofNATO. Reinsalu said, “Georgia is facing a road lined withserious work in order to build a state based on the rule of lawand on the principles characteristic of Western democracy.”The minister also praised works and reforms of Georgiaand also its role in Afghanistan. In turn, Georgia’s Minis-ter Shashkini thanked Estonia for its support and cooper-ation. During trip to Tbilisi, Reinsalu also met withGeorgia’s Deputy Minister of Foreign Affairs NikolozVashakidze, Giga Bokeria, Secretary of Georgian NationalSecurity Council, Elene Khoshtaria, State Minister for In-tegration into European and Euro-Atlantic Structures andLieutenant General Devi Tchankotadze, Chief of JointStaff ofGeorgian Armed Forces. At the National DefenceAcademy of Georgia, the Estonian guest also delivered aspeech on the process of Estonia’s accession to NATO.

ARMENIA | AGRICULTURE

Development in wine industry discussedPrime Minister Tigran Sargsyan attended the opening ofthe 8th “Fruitful Armenia” conference which focused onthe development of wine production in Armenia. Sargsyansaid that the event is a unique opportunity for the partici-pants to discuss a broad range of issues facing agricultureand identify new ways and methods of development. ”Twoyears ago the President of Armenia declared agriculture tobe a priority for the government. The government is takingadditional steps toward agriculture modernization,” thePrime Minister said. The Prime Minister reminded thatviticulture and winemaking have their own place in thefarming sector. In 1990-95 serious losses were recorded inthis area, with about a 65% fall in the level of grape pro-duction due to a standstill in purveyor activities. ”Studieshave shown that we have a great potential for the develop-ment of viticulture It is gratifying that we have new andmajor investments in this area. Surveys evidence that mar-ket demand for grapes will exceed supply over next fewyears. At the same time, quality will be given a greater at-tention. This is why viticulture is to be modernized in Ar-menia,” the head of government stated. The Premierthanked Argentine businessman Eduardo Eurnekian formaking investments in this area and establishing vineyardsnationwide which is a good example for domestic farms.

AZERBAIJAN | COOPERATION

UN projects on the tableAzerbaijani Minister of Communication and InformationTechnologies Ali Abbasov recently had a meeting with UNresident coordinator in AzerbaijanFikrat Akchura. Incourse of talks, the UN diplomat in the annual report of“Global Information Technologies” of World EconomicForum, had evaluatedAzerbaijan’s leadership among CIScountries, news agencies learnt from Ministry's press serv-ice. He noted the presence of UN in the future develop-ment of ICT in Azerbaijan and implementation of jointprojects would also be provided. The UN envoy informedthat next month the 7th Internet Management Forumwould take place in Baku. At this forum, foreign countries,business structures, international and NGOs will be briefedwithAzerbaijan’s achievements and successes. Akchura alsosaid that possible implementation of future developmentstrategy with joint projects with the UN will help in build-ing an e-government.

28NEW EUROPE7 - 13 October, 2012

EASTERN PARTNERSHIP

Following the Georgian Parliamen-tary elections where the oppositionparty Georgian Dream have beenelected Georgian President MikheilSaakashvili continues in his role andhas been quoted as sayign that he willcooperate with the new parliament ex-tensively.

Prior to the election Saakashvili hadvisited New York and participated inthe 67th session of UN General As-sembly. He had bilateral meetingswith the leaders of European statesand international organisations withinthe UN General Assembly session,The Messenger reported.

In his address before speakingabout upcoming parliamentary elec-tions, the President spoke of prisonscandal in Georgia saying that his re-sponse to these “sickening” facts was“swift” and did “what democraciesmust do.” In connection with theprison abuse scandal, two govern-ment ministers have resigned andthe human rights defender, theGeorgian ombudsman, was put incharge of the prison system.

“This is how democracies learn; thisis how we improve and this is how myown government has overcome errorsand challenges in the past to emerge

stronger, more effective and even morecommitted to building institution-alised open society,” he said.

He also slammed Russia by sayingthat such prison scandal happens al-most every day in the region and noone cares about it.

However Georgia strongly reactedto such scandal by firing two ministersand arresting dozens of prison offi-

cials. During talks with EuropeanCouncil President Herman VanRompuy, Saakashvili stressed that anagreement reached between Georgiaand the EU will allow Georgian citi-zens to travel to Europe without visasin the near future, while entrepreneursand farmers will be exempt form feeswhile exporting their products to Eu-ropean markets.

Prison scandal brought up at the UN GEORGIA|HUMAN RIGHTS

Relatives of inmate gather outside a prison in Tbilisi on September 21, 2012, as they wait for meet-

ings with their family members. Georgia's leader on September 20 appointed the ex-Soviet state's

human rights ombudsman Giorgi Tugushi as prisons minister amid continuing protests over videos

showing the torture and rape of convicts.

National airline carrier up for saleARMENIA|AIRLINE

Nana Avetisyan, National air carrierArmavia Company press secretary re-cently affirmed sale of the Company.''Yet it is not clear who is going to pur-chase the company, Italians or some-body else: many wish to buy theCompany ''Avetisyan stated. MikhailBagdasarov, the Russian-Armenianowner of Armavia, has decided to sellArmenia’s national airline and is cur-rently negotiating with potential buy-ers, Armenia Liberty.org reported. Shesaid that negotiations are still underwaybut no results have reached yet. She in-formed that there are different poten-tial buyers of which some Armeniansnot living in Armenia while others areforeigners from the West, from Italy.According to Avetisyan, Bagdasarovwants to sell the carrier because it has

been operating at a loss for the thirdconsecutive year. The losses were re-flected in the decrease in air passengertraffic to and from Armenia handled byArmavia, she said. Armavia’s owes mil-lions of dollars in outstanding debts toYerevan’s Zvartnots international air-port managed by an Argentine com-pany. The airport managementperiodically delays Armavia flights asthe company fails to pay the arrears ontime. It was recalled that Armavia andZvartnots international airports havesigned agreement on March 15, 2011,in accordance to which the airportagreed to meet "Armavia" requirement,particularly reviewing the service tar-iffs.Bagdasarov threatened to file forbankruptcy in March as she believesthat the company is not in a position to

afford exorbitant fees charged by Zvart-nots for airport ground services.Bag-dasarov, who is a Russian citizen ofArmenia descent, was also involved in aserious dispute with the state-run man-ufacturer of Russian Sukhoi SuperJet100 aircraft. Armavia canceled lastmonth a 2007 agreement to buy twosuch planes, as it was too expensive andnot reliable enough. The Russian avia-tion group Sukhoi is seeking a hefty fi-nancial compensation for the move.Shahen Petrosian, a former head of Ar-menia’s civil aviation authority, claimedthat Armavia has incurred massivelosses because of having been badlymanaged. He suggested that the Ar-menian government should nationalisethe company and then sell minoritystakes in it to domestic investors.

Mutual support up to $826 mln in loansAZERBAIJAN|BANKING

Czech ambassador to AzerbaijanRadek Matula recently announcedthat Azerbaijan and Czech Republichas developed a positive cooperationat the bilateral level, news agencies re-ported.

Noting the growing bilateral coop-eration between the two countries intransport sector, he said that Czechcompanies are involved in road con-struction across Baku-Russian border,as well as in reconstruction of Baku-

Tiflis-Gars road. He informed that Czech banks have

offered Azerbaijan expenditures worth$826 million within the last five years.The companies invested in the Azer-baijani transport sector.

The ambassador beleives there ismuch room for further improvementof cooperation between the two coun-tries in the fields of oil-chemistry, nat-ural gas extraction, and military as wellas in compiling a map of Baku Metro.

Czechia also expressed interest toshare with Azerbaijancattle-breedingexpertise.

Meantime, people pf Azerbaijanare also interested in Czechish cul-ture, traditions and cuisine as re-flected in the opening ceremony ofthe “Eden Prague” restaurant held inBaku. It was reported that the eventwas organised in Azerbaijan byCzech embassy in collaboration with“Azerish Co” company.

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29NEW EUROPE7 - 13 October, 2012EASTERN PARTNERSHIP

BELARUS|TRANSPORT

Minsk, Vilnius boost tiesBelarus-Lithuania co-operation in railway transportationshould be developed, BelTA quoted Belarus’ Transport andCommunications Minister Anatoly Sivak as saying at theexpo Transport and Logistics 2012. The expo opened inMinsk on 2 October. “We should work together to turnround the situation regarding the falling transit transporta-tion”. The official attributed the decrease in transit traffic tothe enhancement of port facilities in Saint Petersburg,” hesaid. “New ports have been set up there to deliver Russiancargoes into the western direction. It is necessary to reduceprices to make railway transportation more competitivethan transportation via Saint Petersburg,” he added.

BELARUS|LIGHT INDUSTRY

Belarus, Lithuania ink MoCOn 2 October, a Memorandum of Co-operation has beensigned between Bellegprom Concern and the LithuanianApparel and Textile Industry Association LATIA inMinsk. The business relations were formalised at the open-ing of the 31st international exhibition-fair BelTEXleg-prom - Autumn 2012. Deputy Chairperson of BellegpromConcern Lyudmila Tyaglova noted that the memorandumaims to expand contacts to share best practices in manu-facture of products and development of new technologies.

BELARUS|BORDERS

Grigorovshchina to re-openThe automobile border checkpoint Grigorovshchina at theBelarusian-Latvian border will be re-opened to all kinds oftraffic at 11:00 on 15 October, representatives of the VitebskCustoms House told BelTA. The border checkpoint Grig-orovshchina is located in Verkhnedvinsk District at the Be-larusian-Latvian border. It was closed on 15 July 2012 forlarge-scale reconstruction. The first phase is expected to becommissioned on 15 October. As many as two exit lanesand one entry lane will be available for trucks as well as sev-eral lanes for cars and buses. Refitting automobile bordercheckpoints is a priority for the State Customs Committeeof Belarus.

BELARUS|INVESTMENT

Minsk ends Iranian contract Belarus has terminated the investment contract with theIranian company Azarab Industries. The contract envis-aged accomplishing an investment project to build and op-erate a cement mill in Vetka District, Gomel Oblast. Therelevant decision is laid down by Belarus President decreeNo. 430 of 27 September 2012, BelTA reported. The de-cree has invalidated two more decrees concerning the proj-ect. The investment project envisaged the construction andoperation of a cement mill in Vetka District, Gomel Oblastusing the chalk deposits Podkamenye and Shirokoye in thesame district as the source of raw materials.

UKRAINE|ENERGY

Kiev may reverse pipesUkraine shows a keen interest in reversibility of all pipelines,which supplies, including Bulgaria, Bulgartransgaz CEO KirilTemelkov was quoted as saying by the press. ”Ukraine has talkseven with Germany in terms of reversibility of gas pipelinesand gas quantities that can take on the reverse principle. Oneof these reversible pipelines could be the one for Bulgaria,”Temelkov said. Earlier, Deputy Chief Engineer at Ukrtransgaz,a subsidiary of Naftogaz Ukrainy, Oleh Mykhalevych said theUkrainian gas transport system is ready to accept up to 5bncubic metres of natural gas from Europe.

On 1 October, Belarusian President Alek-sandr Lukashenko said his country’s gov-ernment will be downsized by 25-30%,news agencies reported. Lukashenko saidpresidential Chief of Staff AndreiKobyakov will head the commission thatwill eliminate superfluous functions, par-ticularly at "the top," allowing an increasein the wages of civil servants and law en-forcement, security and military officers.The Belarusian political system is verycentralised under Lukashenko, an author-itarian leader who wants to make surehigh-level officials do not get too powerful

or influential and thus frequently reshuf-fles them. Lukashenko said that in the nearfuture reforms will involve not only the po-lice but other government agencies as well.“Today I gave instructions to set up a statecommission. It will be chaired by the Headof the Belarus President Administration.President Aide Natalia Petkevich will bethe chair’s deputy. They will put togetherthe state commission to reform state ad-ministration bodies”. “I think we will haveto considerably downsize governmentagencies, by about 25-30% I reckon. Lesstrimming downstairs and more trimming

upstairs while cutting away useless func-tions. After it’s done, money allowance andsalaries of civil servants will be raised con-siderably. I mean the police, the militaryand so on,” Lukashenko said. “I under-stand we will not be able to accomplish thetask right away but we have to start doingit. I am saying it because you should keepin mind that some agencies cannot bedownsized in order to enlarge some otherbodies of the Interior Ministry. You shouldkeep in mind that our police bodies shouldbe reduced to some extent down to thenecessary level”.

Lukashenko to cut government by 30%BELARUS|GOVERNMENT

Belarusian President Aleksandr Lukashenko said a commission will eliminate superfluous functions, particularly at "the top".

Black Sea rigs to increase gas output, reduce importsUKRAINE|ENERGY

In an effort to reduce its dependence onimports from Russia, Ukraine’s state oiland gas firm Naftogaz said on 2 Octoberthat the former Soviet republic will buytwo offshore platforms to increase domes-tic natural gas output.

The state-owned oil company has putthe orders out to tender as it looks to reinin the cost of exploration in the Black Sea.The deadline for proposals in the open bid

is 29 October with Naftogaz reckoning itwill cost around $1.4bn for the floatingoffshore rigs.

“The acquisition of high-tech and effi-cient drilling equipment for explorationand development drilling at shallow (up to120 metres) and secondary (from 120 me-tres to 1000 metres) depths is essential forincreasing domestic production of hydro-carbons, reducing purchases of expensive

imported energy and enhance energy in-dependence our state,” Naftogaz said.

Earlier this year Ukraine selected a con-sortium led by ExxonMobil and RoyalDutch Shell to explore the Skifska oil andgas field on Black Sea shelf.

The Skifska field has a potential annualyield of 3-4bn cubic metres of hydrocar-bons. Another Black Sea field, Foroska,could yield 2-3bn cubic metres a year.

EBRD loan to boost residential energy efficiencyMOLDOVA|ENERGY

The European Bank for Reconstruc-tion and Development (EBRD) willprovide a €5mn loan to Moldindcon-bank for on-lending to private indi-viduals and condominium associationsin an effort to increase residential en-ergy efficiency, the Financial reported.

The loan is extended under theMoldovan Residential Energy Effi-ciency Financing Facility* (MoRE-EFF) and will enableMoldindconbank to provide long-term funding to clients implementingresidential energy saving projects.

Moldova relies heavily on expen-

sive imported energy. According tothe EBRD, the high rate of energyloss due to out-dated and inefficientequipment, coupled with the obsoletecondition of the energy infrastruc-ture, makes Moldova one the mostcarbon intense countries in Europe;this adversely affects the environmentand results in high bills for con-sumers. With EBRD financing, indi-viduals and condominiumassociations in Moldova will be ableto invest in energy efficient appli-ances and materials for their proper-ties and thereby significantly reduce

their energy consumption and bills.“Reducing the energy intensity of

economies is one of the EBRD’s keypriorities and we are pleased to buildon our successful co-operation withMoldindconbank to help people inMoldova cut their energy costs, espe-cially during such challenging eco-nomic times,” EBRD FI Director forWestern Balkans, Belarus andMoldova Henry Russell said.

Moldindconbank is the third largestcommercial bank in Moldova and apartner of the EBRD in supportingthe country’s private sector.

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KYRGYZSTAN|MINING

PM: No mine nationalisation On 1 October, Kyrgyz Prime Minister Zhantoro Saty-baldiyev said he would not seek out the nationalisation ofthe former Soviet republic's Kumtor gold mine, a joint ven-ture with Canadian mining firm Centerra Gold, Reutersreported. "Kumtor will not be nationalised," Satybaldiyevtold reporters after visiting the mine and meeting Centerra'stop management. "Problems will be resolved. I asked (theKumtor venture) to keep up its output." "Today I heldmeetings at Kumtor, tomorrow I will meet other investors.We will support investors to work for the good of Kyr-gyzstan." Kumtor, located near the Chinese border inwilderness, employs 2,710 people on permanent staff andlast year it alone accounted for 12% of Kyrgyzstan's GDPand more than a half of the republic's total exports.

UZBEKISTAN|DIPLOMACY

Karimov to visit TurkmenistanThe newly appointed Ambassador of Uzbekistan to Turk-menistan, Jawhar Izamov, presented credentials to Turk-men President Gurbanguly Berdimuhamedov. Izamov hasconveyed the Uzbek President's Islam Karimov's bestwishes to the Turkmen counterpart and informed about theupcoming visit of Uzbek head to Turkmenistan soon,Uzbekreport.com reported. Berdimuhamedov has officiallyinvited President Karimov to visit the country in July. Headded that the Turkmen-Uzbek dialogue has obtainedpowerful dynamics of development due to mutual good willwhich would be elevated to a new level. During the meet-ing, the sides discussed prospects for interstate co-opera-tion, which is successfully developing in bilateral andmultilateral formats through international organisationsand structures. The two countries are linked with somemajor projects. In particular, a gas pipeline was opened fromTurkmenistan to China via Uzbekistan and Kazakhstan inDecember 2009.

TAJIKISTAN|DIPLOMACY

Zarifi visits New YorkTajik Foreign Minister Hamrokhon Zarifi recently paid avisit to New York to attend the 67th session of the UNGeneral Assembly. He also took part in a multilateral meet-ing in New York to discuss regional co-operation in Cen-tral Asia. The participants at the meeting comprised ofRobert Blake, US Assistant Secretary of State for Southand Central Asian Affairs, Miroslav Jenca, Head of theUnited Nations Regional Center for Preventive Diplomacyin Central Asia (UNRCCS), Kyle Peters, Director, Oper-ations Evaluation Department, World Bank and PatriciaFlor, the European Union Special Representative for Cen-tral Asia, the Tajik MFA information department said.

KYRGYZSTAN|DIPLOMACY

Bishkek, Dushanbe co-operationShukurjon Zuhurov, speaker of Tajikistan lower house(Majlisi Namoyandagon) of parliament, recently had ameeting with Kyrgyz parliamentary delegation led byNazarali Aripov, news agencies reported. Zuhurov said thatTajikistan commends the role of Kyrgyz Parliament in de-mocratisation of Kyrgyz society. Both sides discussed issuesrelated to state and further expansion of parliamentary tiesbetween the two countries, said Muhammadato Sultonov,a spokesman for the Majlisi Namoyandagon. Zuhurovurged the Kyrgyz counterparts to take an active participa-tion in implementation of more than 50 government-to-government and interstate agreements signed betweenTajikistan and Kyrgyzstan. In turn, head of Kyrgyz delega-tion Aripov, offered to intensify work on legalisation of thecross-border trade between the two countries.

30NEW EUROPE7 - 13 October, 2012

EURASIA

Envoys of Ministry of Foreign Affairs ofAshgabat and Bern recently met in Bernto discuss the upcoming official visit ofTurkmen President GurbanguliBerdimuhamedow to Switzerland in au-tumn of this year, Turkmenistan.ru re-ported. The envoys of the ministry alsodiscussed state and prospects of bilateralrelations as well as international issues of a

mutual interest. Extending greetings toTurkmen counterpart in her message,Swiss President Eveline WidmerSchlumpf said the visit will play a vital rolein further development of bilateral ties.Currently, more than 10 projects withTurkmen capital are being implementedin Turkmenistan especially in fuel and en-ergy complex, supply of electric equipment

and trade relations. Both countries alsocollaborate in modern technologies sector.Turkmen Academy of Sciences has signeda contract with Globe Interstar AG (SwissConfederation) on the supply of seismicequipment and stations. In November2011 the Delegation of Turkmen CentralBank visited Bern to develop co-operationwith Swiss National Bank.

Ashgabat, Bern gear up for high level talks

TURKMENISTAN|DIPLOMACY

EBRD reviews energy, industrial, financial sectorsKYRGYSTAN|ENERGY

A delegation of European Bank forReconstruction and Development(EBRD) headed by member ofEBRD Council of Directors JonathanOckenden recently met Kyrgyz PrimeMinister Jantoro Satybaldiyev. Incourse of talks, the EBRD envoy saidthat the Bank outlined is energy, in-

dustrial and financial sectors of Kyr-gyzstan as interesting investment sec-tors, the government press service said.The EBRD assured its continued sup-port to Kyrgyzstan. The parties alsodiscussed ways to expand co-opera-tion, investment project in hy-dropower, mining, the development of

industrial sector as well as improve-ment of business environment in theformer Soviet republic.

The Kyrgyz premier pledged thatthe government will continue its re-forms, meant to establish favourableconditions for business and invest-ments in Kyrgyzstan.

Tashkent, Riga to boost co-operationUZBEKISTAN|DIPLOMACY

Uzbek Foreign Ministry's leadership re-cently welcomed a Latvian parliamentarydelegation led by Deputy Speaker SaeimaAndrejs Klementjevs in Tashkent. Incourse of talks, both sides agreed to boostbilateral trade and strengthen co-opera-tion in investment sector enticing severalentrepreneurs of the two countries,Uzbekreporreported, citing the UzbekForeign Ministry.

In presence of Latvian Ambassador toUzbekistan Igors Apokins, both sidesstressed that an important component ofbilateral political contacts are inter-par-liamentary ties between the Oliy Majlisand Saeima. Parliamentary group for co-operation, established at the parliamentsof both countries envisage active devel-

opment of co-operation in this direction.Creating groups of inter-parliamentaryco-operation in the Oly Majlis of Uzbek-istan and Latvia's Saeima has buttressedcontacts at the level of the countries' par-liaments, as well as exchange experienceof legislative activity. Regional and inter-national issues and further developmentof inter-parliamentary and economic co-operation were also discussed at the talks.

The Latvian delegation also met withthe Speaker of the Legislative Chamberof Uzbek Oliy Majlis Diloro Tash-mukhamedova and Senate Chairman Il-gizar Sobirov. Both sides noted thatUzbek-Latvian ties have advanced in sev-eral areas including in the parliamentarysystem. The frequent exchange of visits

between the two countries also con-tributed to enhancing ties in the political,trade and economic, cultural and human-itarian sectors. Positive experience of co-operation in all spheres over several yearshas been the foundation of strong ties be-tween Latvia and Uzbekistan. SeveralLatvian companies specialised in engi-neering, transit cargo traffic, high tech-nologies also expressed interest inpromoting their business in the Uzbekmarket. Bilateral trade between Uzbek-istan and Latvia increased by 44%. Lastyear regular freight transportation alsostarted from Riga via the Navoi transcon-tinental intermodal hub in late 2011,paving for contacts between business cir-cles, as well as logistical structures.

Turkmen President Gurbanguli Berdimuhamedow plans to visit Switzerland in the autumn.

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31NEW EUROPE7 - 13 October, 2012RUSSIA

RUSSIA|ENERGY

Dubai to build Gazprom TowerArabtec Holding Co. (ARTC), the United Arab Emirates’biggest construction company by market value, won a$123mn contract from Russian gas monopoly Gazprom tobuild Europe’s tallest office tower in St Petersburg. TheDubai-based company and Gazprom unit Okhta Centerwill begin the first phase of construction for the 463 metre-high Gazprom Tower, Arabtec said in a statement.Gazprom plans to move its headquarters from Moscow tothe St Petersburg development once it is completed. Sincefirst being proposed in 2006, the Gazprom Tower hasdrawn controversy, with UNESCO at one point claimingthe development could ruin St Petersburg’s historic skyline.

RUSSIA|ENERGY

Gazprom Neft in VenezuelaOn 30 September, Gazprom Neft, a vertically integratedoil and gas company, said it has started first oil productionat the Junin-6 block in the Orinoco River basin inVenezuela. The giant Junin-6 oil field, which has geologi-cal reserves of over 50bn barrels of oil, will be developed ona parity basis by a consortium of five major Russian oil com-panies: Gazprom Neft, LUKoil, Rosneft, Surgutneftegazand TNK-BP through National Oil Consortium (NOC).Alexander Dyukov, Chairman of Gazprom Neft's Man-agement Board said: "The beginning of oil production atthe Junin-6 block is a landmark event for us. Acting as theproject leader on the Russian side, Gazprom Neft has doneeverything necessary to begin developing the block. Thishas allowed the next stage of the development of thisunique oil field to begin".

RUSSIA|MANUFACTURING

Business climate improvesThe business climate for Russian manufacturers im-proved in September, demonstrating the best overallperformance since May, according to the latest HSBCPurchasing Managers' Index data published in theMarkit Economics business survey on 1 October. “ThePMI improved to a four-month high of 52.4 in Sep-tember, up from 51.0 in August and slightly above itshistoric average of 52.1,” Markit said in a statement.HSBC Chief Economist for Russia and CIS Alexan-der Morozov said “the energy-biased structure of Russ-ian exports makes it pretty resilient to weaknesses ininternational trade”.

RUSSIA|GOVERNMENT

Security Council meetingOn 28 September, President Vladimir Putin discussed withRussian Security Council’s permanent members the cur-rent socio-economic issues and the international situation,within the context of the discussions underway atthe UN General Assembly, according to Kremlin sources.The last meeting of the Russian Security Council was on 17August. The meeting discussed topical domestic and for-eign policy issues.

RUSSIA|AGRICULTURE

Grain stocks releaseRussia may sell 500,000 tonnes of grain from Moscow'sintervention stocks in 2012 to slow rising prices on thedomestic market, Deputy Agriculture Minister Ilya Shes-takov said 2 October, Reuters reported. "We offer to sellabout 500,000 tonnes of grain by the end of this year inSiberia, Urals and Far Eastern regions," Shestakov told apress conference.

The appeal hearing for three members ofthe punk rock band Pussy Riot, who weresentenced to two years for performing asong critical of President Vladimir Putin,will resume on 10 October. On 1 Octo-ber, one of the band members YekaterinaSamutsevich said she no longer wants towork with an attorney who doesn't shareher views in the case.

Her fellow band members said theysupported Samutsevich's choice butwould still retain the services of thelawyers. Prosecutors condemned themove as a delaying tactic.

Defence lawyer Nikolai Polozov saidthe group had come under threats andpsychological pressure from authorities."They threatened to take away their chil-dren," Polozov said after the hearing on 1October. "They try to find weak spotsfrom any angle. Essentially, their positionis to push them apart."

The Russian Orthodox Church saidon 30 September the rockers would de-serve mercy if they repent for their Feb-ruary stunt. Earlier, PrimeMinister Dmitry Medvedev had said thatkeeping them in prison any longer wouldbe "unproductive".

The calls reflected an apparent desireby both the government and the churchto put an end to the case, which hascaused international outrage. With PussyRiot now one of the best-known symbolsof the Russian political opposition, anydevelopment in their case attracts enor-

mous attention and mobilisation efforts. Meanwhile, supporters of Pussy Riot

brought an inflatable doll to the court-house wearing a balaclava. Several peoplewere arrested, including members of aUkrainian male dance group calledKazaky, who appeared in support ofPussy Riot.

But a recent official opinion pollshowed that more than half of Russians

are critical of what Pussy Riot did andconsider their two-year jail sentence to bea just one, with less than a third saying theopposite.

Many Russian Orthodox believersconsider Christ the Saviour one of themost revered holy sites in the country,where religion has flourished since theSoviet Union collapsed in 1991, and con-sidered the protest a sacrilege.

Pussy Riot hearing postponedRUSSIA|HUMAN RIGHTS

A supporter of the all-girl punk band Pussy Riot pickets in front of a monument to Russian poet

Alexander Pushkin in St Petersburg, 1 October 2012. The poster reads: ‘Free Pussy Riot!’

Russia doubles price tag for World Cup 2018RUSSIA|SPORTS

Russian Sports Minister and head of theRussia 2018 Organising Committee Vi-taly Mutko said that World Cup 2018will cost Russia around $19bn, whichmeans the budget has nearly doubled incomparison with the figures originallyannounced by the organisers. "We haveroughly estimated of the amount of in-vestment needed to complete the proj-ect,” ITAR-TASS quoted him as sayingat a press conference with FIFA Presi-dent Sepp Blatter in Moscow. “Of course,we understand that this figure isn’t final.We’ll be able to talk more precisely afterall the estimates and revisions are done.But, according to our analysis, we need to

implement 1070 facilities and ac-tions.” “The experts estimate the cost at600bn roubles (around $19bn),” headded.

Only half of the sum will come fromthe state budget, with the rest from pri-vate investors, Mutko said. "We have tounderstand that 40% of the funds will beused to build sporting facilities – stadi-ums, training fields and bases for theteams,” he said. “While the remainingmoney will be spent on infrastructure –airports, hotels, transport logistics, secu-rity, medical and communications sup-port.”

According to Mutko, five stadiums for

the event are already under construction,with projects for four other arenas to becompleted this year.

For his part, Blatter said that never inhis presidency has a host nation been sofar ahead of schedule in preparation fora tournament. "We are in a very comfort-able situation when it comes to the or-ganisation of the World Cup 2018,"Blatter said. "We are one year ahead ofour schedule and this is a new approachto organising world cups."

After a bid championed by PresidentVladimir Putin, Russia was in December2010 awarded the right to host the WorldCup.

BP close to signing deal with Rosneft over TNK-BPRUSSIA|ENERGY

British oil major BP is close to signing adeal that would make it the largest share-holder in Russia’s oil giant Rosneft andwould also allow the UK company to exitfrom its troubled joint venture, TNK-BP,according to media reports. BP’s Presi-dent Robert Dudley was in Moscow twoweeks ago to meet President VladimirPutin and Rosneft’s head Igor Sechin.“The sides discussed issues related to thecontinuation and expansion of BP’s pres-

ence on the Russian market, and also theprospects of co-operation with Russiancompanies,” the Kremlin press office saidafter the meeting. The deal, if it goesahead, is BP’s second attempt at tying upwith Rosneft; it would also allow thecompany to exit from its troubled jointventure, TNK-BP.

In June 2012, BP announced that itwould quit TNK-BP, but said two weeksago that it is not giving up on Russia.

“BP’s management has assured the Russ-ian president that the company is inter-ested in a long-term and mutuallybeneficial partnership with Russia,” thecompany said in a statement after themeeting with Putin.

Meanwhile, AAR, which representsthe billionaire partners in TNK-BP, hiredRothschild Group to organise the loanfrom a group of banks, Chief ExecutiveOfficer Stan Polovets said.

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ENISA is the Greece based Euro-pean Agency for Network and Infor-mation Security, under DGCONNECT (former DG INFSO)and its Chief Accountant, in thecontext of his duties, after reportingfinancial irregularities was removedfrom his position by Udo Helm-brecht …for doing his job conscien-tiously and later he was …fired!

The Chief Accountant took thecase to European Court of Justicewhich ruled this week that the ChiefAccountant of ENISA was dis-missed illegally from his duties afterhe reported financial irregularities inthe agency. However, Udo Helm-brecht, in a move reminiscent of theGreek “patents,” fired the Chief Ac-countant just before the Court rulingwas announced.

The Court Case

The Chief Accountant addressedthe European Court of Justice whichexamined the case and confirmedthat the dismissal was illegal becauseit violated Commission DecisionC(2004) 1597. Moreover the Courtconcluded that the excuse broughtforward by the Executive Director tothe Management Board for the dis-missal of the accountant was ground-less. It should be added that thedismissed Chief Accountant had ex-cellent performance reports and theCourt of Auditors had praised hiswork to the Executive Director.

The Court annulled all the deci-sions pertaining to the dismissal ofthe accountant and condemnedENISA to pay all legal costs.

Another Lost Case

This is not the first time thatENISA has been condemned by theEuropean Court.

Recently, the European Data Pro-tection Supervisor reported thatENISA violated the Data ProtectionRegulation. This is pretty serious sit-uation for an agency that is dealingwith Network and Information Se-curity. However, instead of comply-ing with Data Protection Regulation,ENISA sued the EDPS for havingissued his report. It is worth notingthat this was the first time ever thatan EU institution sued the EDPS. Itcomes as no surprise that ENISAalso lost this unprecedented law-suit.

The ENISA case is being widely re-ported in the Greek media, local andnational, which take advantage of thecase to speak of European corruptionand maladministration claiming thatthe Greeks are innocent victims of theEuropeans. In this logic, there aremore and more voices in Greece ques-tioning the value and role of the Com-mission’s Task Force and in particular

the fact that one of the senior mem-bers of the Task Force was responsiblefor the Greek Cadaste, a few yearsago. During her term, as chief execu-tive of the Cadaste, the lady in ques-tion did not take to the Court theprevious Cadaste administration re-sulting to a big loss and a penalty of€20 million for Greece.

The ENISA case is taking dimen-sions in Greek political and mediacircles and it should be addressed inan exemplary way or it will get outof control. The case, as it involvesCommunity budget, can be easilyand efficiently addressed by OLAF,not only to save budget money butalso to support the image of the Eu-ropean Commission in Greece asthe Greeks are exponentially losingfaith in the European institutionsand it seems very difficult task tobring that country back to Europeanorder.

KASSANDRAAs Turkey gets actively involved in the Syrian conflictwhile enhancing its relations with Iran andWashington is flirting with Ahmadinejad over thenukes, Israel is getting weaker, whatever that implies...

Page 32 | New Europe

7 - 13 October, 2012

Kassandra@NEurope.eu

Once upon a time in the Middle-east

Follow me on twitter @Kassandra_NE

ENISA: When in Greece do as Greeks doOLAF the last resort of EU legitimacy

The Party of European Socialistsheld its largest congress to date asSeptember was closing, includingmost of the Presidents and PrimeMinisters of the countries in Eu-rope which have voted in a socialistgovernment including Austria’sWerner Feymann and Belgium’sElio Di Rupo and leaders of 20other national Socialist the Presi-dent of the European ParliamentMartin Schultz and the President ofSocialists International.Opening up the influence of the

PES was the addition of partner or-ganisations from Tunisia andEthiopia.One glaring omission to the Con-gress was that of Francois Hollande;in his place was a member of theForeign Ministry responsible forEuropean Affairs BernardCazeneuve.Some say that when a new govern-ment in Europe is elected it is quitea task to convince them of the ideaof a political Europe.But European political parties are

not just a fragment of the infamous‘Brussels Bubble’ they determineand influence a lot of the policy thatcomes out of Brussels and impactson everyone’s lives daily, across theContinent.So if the 24th President of theFrench republic has not been for-mally invited and needs further mo-tivation we do hope to see him inthe next PES Congress showing aclearer picture of where he stands,on Europe, ‘un point faible, jusqu'àmaintenant’.

Hollande’s stance on Europe

Van Rompuyspeaks out‘It is time for a positive message, time for a new dynamism!!’This was the upbeat message for citizens, but it wasn’tfrom Herman, but his wife, Gertrui, who is standingin Belgium’s local elections. She is hoping to becomethe Mayor of Brussels exclusive Rhode St Genese dis-trict.She’s leading the list of a party called Respect, al-though it doesn’t seem to be associated with GeorgeGalloway, a relief in several ways for her husband. Thesecond on the list is a former Vlaams Belang member,the exreme right party in, well, parts of Belgium.However, Herman likes to keep a very close eye onBelgian politics, perhaps because he’s headed backthere shortly.Herman also, gallantly, has been out campaigning forhis wife, even, we’re told, going from door to door.While it’s good to see a man support his wife, eyebrowsare being raised over the President of the EuropeanCouncil, on an extraordinarily high salary, getting in-volved in local politics. Clearly there’s nothing at all tooccupy his time, perhaps he did solve the Eurozoneproblem… on his 12th attempt.

Pot calls kettle blackWe receive a press release from UKIP, with the typi-cally forthright subject line: ‘EU Commission has nocredibility on banking reform - UKIP economicspokesman.’It contains this quote from UKIP MEP, GodfreyBloom, “The European Commission has no credibilityon this issue. We should not expect that those who ledus into trouble are going to be the ones to lead us out."The release then helpfully points out, “Godfrey Bloom,UKIP MEP for Yorkshire had his own financial in-vestment firm before becoming an MEP.”He did indeed, TBO Investments Limited. In October 2008, there was a spot of bother. The Fi-nancial Services Authority fined TBO InvestmentsLimited (TBO) £28,000. The FSA found:Between December 2001 and October 2007, TBOfailed to:Obtain and retain sufficient information about cus-tomers' personal and financial circumstances and ob-jectives, leading to an unacceptable risk of unsuitableinvestment advice being provided to TBO's customers;Issue suitability letters that consistently explained whythe relevant transaction was suitable for the customerin question;Adequately supervise and monitor staff providing ad-vice to customers; andArrange adequate systems and controls in relation totrust signatures.Jonathan Phelan, FSA Head of Retail Enforcementsaid, "Obtaining and clearly recording enough infor-mation from customers to ensure the advice given issuitable is an important part of treating them fairly,particularly in areas such as long-term savings andpensions, where the wrong decisions could lead tohardship in retirement. Where we have concerns aboutthe quality of the advice given, we will require firms toundertake reviews of past business, often at consider-able cost to them, to identify and remedy any unsuit-able advice."

Udo Helmbrecht, Director of ENISA and potential client of OLAF, the European Anti-

Fraud Office