NEWEUROPEwww.neurope.eu 20th Year of Publication Number 1018 17 - 23 February, 2013 € 3.50

ECONOMICS Page 03 Page 06 KASSN A DRA Page 32

T he Greek Secretary GeneralTruth of the Fi- is power nance Ministry came out with a short comment creating a big impact, Gio- rgos Mergos said the minimum wage “remains at high levels, and this is so- TP RANS Ort Page 08 mething we have to be careful of in our Berlusconi returns course towards development.” One of the great-unanswered political Responses have varied but the sim- questions of our time is a simple one; ple fact is that many of the terms of the what does Silvio Berlusconi have to do restructuring of Greece's debt are just for the European People’s Party to say “Enough”? not discussed and here was someone At what point does his behavior become willing to hint at the truth below the incompatible with the values of Europe’s surface. (Continued on page 6) Christian Democrats?

PENSIONS Page 04 Page 06 U K tackles pensions and grey power HorseEU to lead investigation Trading into horsemeat scandal EU -US Page 06 uropol is to take the lead in the current health scare over contaminated beef products Eon the European market. EU -US trade Horsemeat, fraudulently labelled as beef, has found its way into the agreement ‘biggest European food chain, resulting in the closures of processing plants across the EU and several arrests. European deal ever’ Union authorities are claiming that health threats to the general public are minimal, and that the real pro- ENERGY Page 12 blem, which is believed to affect 12 member states, is one of mislabelling. Speaking as ministers gathered in ‘Show of force’ Brussels on 13 February to discuss the issue, EU Health Commissio- strengthens ner, Tonio Borg, said that member states should carry out random tests on beef for three months. A further TAP meeting by the EU’s expert group on the food chain on 15 February put to- A butcher holds a tray of horse meat on sale at his shop in Bremen, northern gether the details. Germany on February 14, 2013. | AFP PHOTO / INGO WAGNER ENERGY Page 13 The meeting comes after the French government suspended the with ongoing inquiries in alleged involved submit the data necessary operating licence on 14 February, of mislabelling of beef. Three people for Europol to conduct the appro- C onoco out the food processing firm Spanghero, have been arrested in connection priate analysis. Europol will provide which imports beef from Romania, with fraudulent meat labelling. its expertise and will co-ordinate and which has been implicated in Responding to the calls, EU the efforts put in place by many EU of Kazakh the deliberate fraudulent mislabel- Commissioner for Home Affairs, Ce- Member States. We must fight cross ling of horsemeat as beef, allegations cilia Malmström said on 14 Februa- border crime through cross border projects the company denies. There have also ry that “the extent of the horsemeat cooperation. I welcome Europol´s been arrests in the UK. case makes it clear that this needs to readiness to quickly help determine The UK government has called be addressed at European level”. responsibilities. I hope this leads to for Europol to lead investigations “Europol is already investigating the identification of those who have into a potential criminal conspiracy. the data submitted so far and is rea- committed crimes, misled consu- Earlier in the week, farms in the UK dy to assist even further. It is there- mers and undermined trust in the were raided by police in connection fore crucial that all Member States internal market”. NEWEUROPE 02 www.neurope.eu ANALYSIS 17 - 23 February, 2013

The Shooting Gallery M FundingM the far right

The far right is rebranding itself. Needing a cash injection from the EU, various parties across the EU are clubbing together to benefit from eligi- ble funding for pan-European parties. They are, depending on the sour- ce (true to form, the far-right is split, and are currently coalescing into two rival blocs), either “EU critical parties”, or “patriots”, apparently an endangered species. According to Bruno Gollnisch, from the National Front in France, it is him and his cohorts, such as Nick Griffin from the British National Party (FN), an organisation so short of money that, apparently, they are redu- ced to selling scrap metal to keep afloat, that are the upholders of Europe- an values; European values been a prerequisite for pan-European political party funding. The FN, apparently, stand for freedom, the rule of law and equality; they represent the “moral and spiritual stock of Europe”. Echoing earlier calls by Griffin, Gollnisch said in the European Parlia-

ment recently that reluctance to grant funding to his current alliance of A horse, a horse, my kingdom for a horse.| EPA/Federico Gambarini far-right colleagues proves the “totalitarian direction of the European Union”. His, and likeminded parties, uphold a “tremendous legacy of western Europe to the rest of the world”, and are “better at defending THE EUROPEAN WEEKLY those values than our adversaries”, such as the mainstream centre-right, cyan mage yello centre-left and other parties. According to the far-right, it is they that black New Europe th represent the upholding of under-siege values in Europe; freedom (from 11 Year, Number 508 www.new-europe.info February 16 - 22, 2003 EARS New Europe bylines 10 Y immigrants), the rule of law (for the indigenous, white population), and Russia firms ne Bashir Khanbhai, MEP its stance On Asylum policy fails, p. 5 equality (see previous parentheses). on Iraq issue Europe ready for The Despite close ties between AGO Washington and Moscow, veto The whole thing is comically reminiscent of the late 1970s song, Power Russian President Vladimir Putin has said the unilateral use post-NATO era The Greek Presidency of the European of force against Iraq is Union announced its initiative to con- absolutely unacceptable at this Another voke an extraordinary European Council in the Darkness, by the Tom Robinson Band, which parodies the gross time. Russia has the right to meeting, devoted solely to the Iraqi crisis. veto at the UN Security Coun- (editorial p. 2) cil and, if it sees it fit, will exer- amicable cise this right. "We have used I n the run up to the Iraq War, there were skirmishes excess of right-wing sloganeering: “Today, institutions fundamental to this right more than once, and divorce Divide and we can do it again," the Krem- lin leader told French regional in the conquer legacy between the EU and NATO. The military alliance, press in Bordeaux. France also has the right to veto. With the dissolution of the USSR in the the British system of government are under attack…the public schools, At the same time, Putin said he making early 1990s there remained nothing to once formed to protect Europe from the Red Army believes "we should not fuel fear -- except the world's fearfully controversy on this issue." The dynamic Muslim population. p. 3 the House of Lords, the Church of England, the holy institution of mar- Russian leader reiterated that Flying colours may had changed into one that was pushing back against Russia and France hold the stimulate a whirlwind same positions on this problem of affairs Banks and and believe that international better times former Soviet allies. Europe wasn‘t as unified, strugg- weapons inspectors should be ATO and the Warsaw diplomatic initiatives to disarm Iraq military reach into eastern Europe, but riage, even our magnificent police force are no longer safe from those allowed to continue working in Pact: the two tried bal- peacefully. also the European Union's economic After one of the worst years since World Iraq. Moreover, Putin noted ancing each other for Belgium-France-Germany rejected market and the conclusion is a clear ling between hawkish and dovish members, it never there are no grounds for arriv- War II, European banks are hoping that a decades till the latter even a scaled-down proposal put forth indication of US tactical strategy aimed ing at long-term and serious N tough round of cost cutting and restruc- became null and void after the collapse by NATO Secretary General George at moving the centre of political gravity who would undermine our society, and it‘s about time we said ‘enough conclusions in light of the most turing will help buttress them against what of the former Soviet empire. NATO Robertson including AWACS radar in Europe from the resistant, critical is likely to be another tough year. p. 9 did get a coherent line in the sand over Iraq. Was the recent statements from inter- national terrorist Osama bin started expanding into the Warsaw planes, Patriot missiles and special founding states in Western Europe to Laden. Putin commented on a zone unhindered but with no defined units to counter biological attacks. the more pro-American new members is enough’ and saw a return to the traditional British values of discipline, relatively recently published direction cosines for existence. It is crystal clear to the dumbest in the east. Olympic EU to be as pro-US as NATO or find its own path and transcript of bin Laden's tape And now the deep-seated divisions layman also that the White House Time for Europe to unite and pre- saying, "If bin Laden is alive, he surfaced as NATO remained dead- gloated over the split within Europe. sent European Union members will do destinations is poking his nose everywhere, locked over bolstering Turkey's Add to that a not so subtle approach; well to rethink as the future lies in the policy? Russia was more confident and objected to obedience, morality and freedom..” Freedom, that is, from the likes of re- but this does not prove his links defences, with France, Germany and Washington's persistent and forceful European Union and not in obsolete The Olympic Games are bound to put with Baghdad." Belgium insisting the move would stifle support to expand not only NATO's NATO. an end to Athens' traffic chaos by dimin- ishing the duration time of transporta- the coming conflict, believing they had French sup- tion and radically changing the transport asonable opposition, and the rational acquiescence to a changing society. NOTEBOOK map of the Greek capital. p. 11 A foot in the EU door port. As Putin said, there was nothing to prove the The European choice of development All this wouldn’t be a problem, except that it looks as if Griffin and his but support for the Challenging allegations of an Osama bin Laden/ Saddam Hus- When it comes to the European model of mate goal for the EU's economy but indirect- URTiP economic development European Commis- ly shows the path to achieve it. So Prodi US gains momentum Poland's leading telecom company sion President Romano Prodi is still thinking offered the European answer to the kind of TPSA announced it will challenge the sain alliance. There was optimism in Greece, where it far-right mates will get some EU money; funds from a system they de- like an economist and not as a politician. productive relationship between the state and he fall of the Iron Curtain 12 years ago fuelled democ- Telecommunications and Postal Regu- Speaking recently on Europe's economic the private sectors. "The Lisbon Strategy -- latory Office (URTiP) again. p. 26 T racy in central Europe, with Hungary, Poland, the stance Prodi said that the successful intro- economic prosperity, social cohesion and was thought that the work over the Olympic Games Czech Republic and Slovakia grabbing hold of all possible duction of the single currency and the environmental protection -- and the synergies means to ensure a better future. Along with that came the plore. They have just received extra funding for a foundation (EIT), in advanced degree of the integration process in they generate in combination give our devel- countries' objective to gain membership in the European Russia's new the Union now pose the question of the one opment model its driving force and its origi- would put an end to traffic chaos in the city. Several Union. And although the four states are inching their way nality," he said. towards that goal, they have succeeded in placing frowns on European model of economic growth. oil venture So the European choice vis-a-vis the dilemma addition to their group, The European Alliance for National Movements the faces of France, Germany and some other member But in search of the European way of eco- Alfa Group, Access/Renova and BP have of a productive relationship between the pri- former Iron Curtain states were moving towards Eu- states, which disapprove of the US stance for military nomic development the Union has to decide announced plans to set up an oil firm that strikes against Iraq and have expressed concern over the what type of relationship it wants for the pri- vate and public sectors is now pretty clear. The will include TNK and Sidanco. p. 46 position taken by these countries. But Hungarian Ambas- vate and public sectors of the economy. The Union chooses "controlled" liberalisation of ropean Union membership, but were also becoming (EANM). sador to the US Andras Simonyi underlined that the United target for the European economy is being set the markets. And this applies first and fore- Australia $3.4, Austria EURO 1.81, Balkans EURO 4, Belgium States is the best friend an expanded European Union could in Lisbon "to become the most competitive most in the case of the big network industries, have and vice versa. "Democracies need to focus on econom- such as telecommunications, postal services, EURO 3.22, Holland EURO 2.69, Central Asia USD7.5, Central and dynamic knowledge-based economy in Europe USD5, Canada $5, Denmark: DKK 19,95, Eastern Europe more pro-US, a position heightened by their stance ic and strategic challenges, working hand in hand to find the world, capable of sustainable economic transport and energy. Add to that the EU's USD7.5, France EURO 3.04, Germany EURO 3.57, Greece EURO According to its secretariat of the European Parliament the group “ful- solutions to these issues," the ambassador said. The four growth with more and better jobs and greater policies on competition, state aid, employ- 4, Hungary HUF400, Japan Y900, Italy EURO 3.62, Nordic coun- countries believe Iraq is a threat and a source of terrorism. ment and enlargement and one can accurate- tries USD7, Pacific Rim USD8.5, Russia USD 4, Switzerland social cohesion." Putting an end to that calls for a united front and tough ly describe the European choice of economic SFr4, UK GBP 4.5, USA $2.95, all other countries EURO 6 on Iraq, while the US was positioning itself as “the filled the necessary criteria” for funding “It provided the necessary action to ensure a peaceful solution, Simonyi said. The European Council set not only the ulti- development path. best friend Europe could have.” proof for legal personality, is affiliated with one of the European parties (EANM)) and presented a reasonable budget planning without recur- ring to contributions in kind. Its management structure meets the re- MANAGING Editor Director Brussels headquarters quirements and a work programme could be accepted being in line with Alia Papageorgiou Alexandros Koronakis Av. de Tervuren/Tervurenlaan 96, [email protected] [email protected] 1040 Brussels, Belgium the grant request. There are no indications that the foundation would Tel. +32 2 5390039 Senior Editorial Team Executive layout producer Fax +32 2 5390339 infringe the principles on which the European Union is founded, namely [email protected] the principles of liberty, democracy, respect for human rights and funda- Kostis Geropoulos Suman Haque mental freedoms, and the rule of law”. 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at the problem until it goes away. It is certainly hard to see how there Ariti Alamanou (Legal Affairs) ISSN mber: 1106-8299 INDEPENDENCE External contributions are “no indications that the foundation would infringe the principles on [email protected] Louise Kissa (Fashion) New Europe is a privately owned Signed Contributions express solely the which the European Union is founded”, considering the political parties [email protected] independent publication, and is not views of the writers and do not necessa- upholding the foundation have actively fought against those principles. Alexandra Coronakis (Columnist) subsidised or financed in any way rily reflect the opinion of the newspaper. by any EU institution or other entity. NE is printed on recycled paper. The European Parliament, as one of the EU institutions, is committed [email protected] © 2013 New Europe all rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form to combatting racism and prejudice across its member states. With this by any means, electronic or otherwise, without express permission. The Publishers accept no liability for third party views published, nor gesture, it prolongs it. damage caused by reading, viewing or using our content. All information is correct at the time of going to print, we accept no liabilities for consequent changes. NEW EUROPE NEWEUROPE www.neurope.eu 03 17 - 23 February, 2013 ANALYSIS

By Paola Subacchi Paola Subacchi is Research Director of International Eco- nomics at Chatham An economic agenda for Italy the country’s embassies and trade agencies to House. promote Italy globally, while working to build strong bilateral relations with other EU mem- bers, particularly southern countries like Spain. At the same time, the new leaders need to MILAN – At the end of this month, Italian vo- “sell” Europe in Italy, where Euro-skepticism is ters will choose their next government, from rampant. According to the Pew Research Global which they expect jobs and a more level econo- Attitudes Project, only 30% of Italians view the mic playing field – and from which Italy’s Euro- euro positively. In the country’s wealthier north, pean partners expect structural reforms and fis- where average per capita income, at €30,000 cal probity. What should the new government’s ($40,500), approaches that of Germany, people economic-policy agenda be? are questioning the rationale of EU membership. To reduce public debt, which stands above The costs are evident, they argue, but what are 120% of GDP, while minimizing painful adjust- the benefits? Meanwhile, fears of structural de- ments, Italy needs economic growth – some- cline pervade the country. thing that has eluded policymakers in recent ye- The crisis has lasted for a long time, and ars. Indeed, Italy’s average annual GDP growth people are tired. Unemployment has risen to a rate since joining Europe’s economic and mo- record 11.2%, with 35% of young people jobless. netary union in 1999 has been an anemic 0.5%, And the tax burden, which has exceeded 40% of well below the eurozone average of nearly 1.5%. GDP since 1990, now stands at almost 43% of In the four years since the global financial crisis GDP. A Scandinavian level of taxes would be struck, the growth rate fell to -1.2%, compared to bearable if public services did not remain infe- the eurozone average of -0.2%, and it is expected A view of Castel Sant’Angelo in Rome, Italy. |AFP PHOTO / FILIPPO MONTEFORTE rior to those offered in Scandinavia. For exam- to remain negative this year. ple, per capita health-care spending in Sweden, The new government’s biggest challenge ductivity growth from that of capital and total this progress. Denmark, and Finland exceeds $3,000, compa- will be to implement reforms that enable Italy’s factor productivity. According to the OECD, Despite positive developments, the road red to only $2,300 in Italy, where households economic performance to catch up to that of its lower regulatory costs and more efficient public ahead is bumpy. Navigating it will require Italy must contribute roughly 20% of total health-care neighbors after years of bad policies and neglect. administration (building upon measures intro- to retain its credibility with other European Uni- spending. This requires increased investment in innovati- duced by the previous government, led by Mario on member states and international investors. Moreover, Italy spends around 4.5% of GDP on and human capital. Monti) could add 0.3-0.4% to average annual The new prime minister will need to persuade on education, while the Scandinavian countries From 1992 to 2011, labor productivity grew GDP growth by 2020. Germany, financial markets, and the European spend more than 6% of GDP. As a result, Italian at an average annual rate of 0.9%, the lowest in Likewise, labor-market reform, improved Council that Italy is a reliable partner. students’ scores in the Program for International the OECD. Since 2001, unit labor costs have education, and enhanced human capital could The ability to refinance government debt Student Assessment are significantly lower than been growing faster than real GDP and employ- contribute an additional 4% to GDP growth in and keep costs down is essential to strengthe- those of their counterparts in many other OECD ment, undermining the economy’s competitive- the next decade. Moreover, Italian policymakers ning public finances and boosting GDP growth. countries. ness vis-à-vis developing countries. In the last should strive to boost the female labor-force par- Furthermore, attracting more direct investment Italy’s new government will have to display decade, Italy’s share of global exports dropped ticipation rate, which, at 49%, is one of the lowest is crucial, given that capital inflows, while reco- leadership and vision to guide the economy to- from 3.9% to 2.9%. in the OECD. Doing so would raise per capita in- vering, remain 30% below their pre-crisis level; ward stable growth, avert a race to the bottom, Persistently weak labor-productivity growth come by 1% annually through 2030. with outflows exceeding inflows, Italy has be- and stem growing social tension. Most impor- has created a situation in which unit labor costs At the same time, fiscal adjustment remains come a net capital exporter. tant, economic renewal depends on the next do not fall, even if real wages remain stagnant or essential to Italy’s short- and long-term stability. “Selling” Italy in Europe should entail more government’s willingness and ability to address decline. Indeed, despite a 1.3% drop in real wages According to the International Monetary Fund, than photo opportunities with other leaders in the institutional weaknesses that have made con- in 2011, unit labor costs remained unchanged. the budget deficit is declining, and the primary Brussels and the occasional road show to finan- certed action increasingly urgent. Italy’s new leaders must address this situa- surplus (net revenues minus interest payments) cial institutions in London. Italy’s leaders should Copyright: Project Syndicate, 2013. tion by decoupling labor’s contribution to pro- is growing. Italy’s new leadership must sustain engage actively in commercial diplomacy, using www.project-syndicate.org

By Silvana Koch-Mehrin MEP 2010, and 2012). The latest research carried Sylvana Koch-Merhin out by Credit Suisse Institute (2012) shows is a Member of the Controversial but unavoidable that those companies with at least one woman European Parliament on their board outperformed companies with in the Alliance for Democrats and Liber- to ensure gender balance no women by 26% over the course of six years. als of Europe she is gender is dominating. Despite the flexibility of the legislative propo- Boards then have an opportunity to serve as on the Committee on The proposed Directive has been established to sal, some Member States and companies hotly role models by creating gender balance within Women’s and Gender pave the way for the less represented gender to contest it. Others welcome it. In some eleven their structures. Equality and on the take up top management positions by setting an EU-Member States national quota legislation In these difficult economic times, women have Committee for Nordic Relations. objective of 40% of non-executive directors on has already been implemented. The vast ma- a crucial role to play in getting things back on The push for gender balance and female repre- the boards of big listed companies by 2020. jority of the Parliaments of the EU-Member track. Women account 50% of the population, sentation on company boards in Europe is ma- Obviously, qualifications and merits of candi- States have chosen to support the EU-proposal. and 60% of all university graduates. Why waste king the headlines, and momentum is gaining dates remain the key criteria for board positions. However, the directive divides politicians, busi- this potential? around the issue. Following years of marginal The directive demands a minimum harmoniza- nesses and corporations. It is controversial, yet The European Parliament and the Council, the and insignificant progress, the EU Commissio- tion of corporate governance requirements, as supported by experience. body that represents the EU-Member States, ner for Justice Viviane Reding has stepped in to appointment decisions will have to be based on A good example is the economic performance will start their discussions on the proposed propose a directive designed to put career pro- objective assessment. Imperative sanctions will of Norwegian companies after the introduction Directive in the coming weeks with a view to gression of both men and women on par, and be made against companies not following the of mandatory quotas - with a much larger scope adopting the proposal by the end of 2013. Both to do away with the far from proverbial glass legal requirements for quotas. These sanctions than the envisaged EU-legislation. Studies from institutions stand on equal footing, with the ceiling which exists in too many organisations. will be determined by Member States them- various countries show that enterprises with a Council voting by qualified majority and the The figures speak for themselves – women selves. The minimum objective of 40% should better gender balance deliver stronger organiza- Parliament by simple majority make up only 17% of non-executive boards, and be attained by 2020 by publicly listed compa- tional and financial performance, e.g. “Women If Japan were to yield, the South China Sea only 10% of executive boards. It’s clear which nies, and by 2018 by public undertakings. matter” by Mc Kinsey (2007, 2008, 2009, would become even more fortified. NEWEUROPE 04 www.neurope.eu PENSION REPORT 17 - 23 February, 2013

UK tackles pensions and grey power By Peter Taberner fined benefit schemes, although the latter is becoming more rare, the plan is that by 2018 n the UK, pensions have triggered a more automatic enrolment pensions will be funded contentious debate, as new regulations three ways. These are through minimum pay- change the landscape of how pensions will ments from the employee reaching 4% of his or Ibe delivered in the future, and when they will be her qualifying earnings, joined by the employer received. contributing a minimum 3% of the qualifying The Conservative-Liberal coalition go- earnings, and the government a further 1%. Alt- vernment, since they took power in 2010, have hough dependant on the scheme what the em- put their foot on the peddle of pension reform, ployer and employee pay can be variable. which will effect the public and the private sec- It is hoped that this change will be the shot tors. in the arm needed to boost apathetic rates of Currently there is a draft pensions bill, workplace pensions. which could bring forward the new state pen- “It is a good start, and its very welcome” sion age of 66 rising to 67 between 2026 and James Walsh reflected. “The pressure will be 2028, replacing the previous law that stated the there to ensure that there will be good work- pension age would increase between 2034 and place schemes in place, as I don’t think that the 2036. The speeding up of the rise of the pen- minimum 8% funds will be enough, most of the sion age is the predictable response to an aging pension schemes offered will be defined contri- population, where the government argues that bution ones rather than defined benefit as that the average 60 year old is expected to live ten is the current trend.” Austerity is making more people concerned over the future of their pensions. | EPA/ANDY RAIN years longer, when compared to someone of the Looking at where UK pensions are inve- same age in 1970. rewards savers with the incentive to build up already been made, from the 2012/13 financial sted, which with 9.3% of the global pension Another major reform of the state pension their own savings not being subjected to means year, contributions from those earning between asset market is the third biggest in the world is the ‘single tier rate’, that will replace the cur- tested ways.” £15,000 and £25,999 will increase by 0.6% per after Japan and the United States, shows some rent system of a basic state pension, which is Reforms to public sector pensions have year, and for those whose salaries reach between changing trends according to the Tower Watson then increased by calculations on lifetime con- courted the most controversy, even causing £26,000 and £31,999, pension payments will be Global Asset Survey released last month. tributions and means tested benefits. street protests, which are not as easily provo- increased by 0.9%. Equities are still the largest investment area, This will be implemented at the earliest in ked in the UK as countries such as France and The lack of enthusiasm for participation in with 45% of UK pensions traded through them, 2017, with the objectives for the change based Greece. The Public Service Pensions Bill is also private pension schemes is palpable, as figures and 37% being invested in the bond market, alt- on simplifying the state pension by removing currently in the processes of the UK parliament, from the UK’s Office of National Statistics hough the growing trend is investment in ‘other’ means testing, and to equalise the age of re- and the aim is to create a career average scheme show. In 2011 there were just 2.9 million who areas such as the alternatives market including ceiving the state pension between men and in the public sector that will end the final salary were contributing to workplace pensions, a re- hedge funds. Compared to ten years ago, equi- women, with a qualifying period of 35 years of system, where pensions are paid based on lon- cord low since records began in 1953. ties commanded 16% more of the UK market social insurance contributions. gevity of service and end of career salaries, a A report by the annual Occupation Pensi- ,with less conventional ‘other’ investments in- The government say they will set the rate of system usually used in the public sector and is on Schemes survey blamed the lack of defined volved in just 3% of pensions say Tower Watson. the single-tier pension higher than the means te- thought by the government to be costly. benefit pensions, with defined contribution “There are regulatory aspects, such as Sol- sted support version, incorporating an uprating The argument being this way would create schemes offered more, where returns being re- vency II, that will prolong pushing pension triple lock system based on highest earnings the incentives for the lower earners to enter into lated to the performance of the markets. schemes into investing in the bond market and growth, consumer index growth, or a basic 2.5% pension schemes. In response to this, the government from into lower risk plans, but as gilt yields are low increase. James Walsh, senior policy adviser, Contributions from public sector emplo- October last year introduced automatic en- there are alternatives such as investing in infra- for the National Association of Pension Funds, yees will also rise to reduce the burden on tax- rolment, where the employer is responsible structure, so the patterns that are emerging over said: “We are supportive of this measure, as this payers as part of the austerity drive, chancellor for choosing a pension scheme for employees, investments may continue.” Walsh explained. is a simplified way, which is far less complicated George Osborne stated this during the drama- where qualifying earnings are between £5,564 As pension regulations continue to be deba- than the endless benefits that people could re- tic 2010 spending review, where he wanted to and £42,475 a year, or the employee’s entire sa- ted, them full picture is still yet to emerge, ex- ceive. This should ensure that people receive save £2.8 billion from public sector pensions by lary before tax. pect more policy shifts and controversy in the more than the pension guarantee level, and it 2015. Changes made to teacher’s pensions have These can be defined contribution or de- future.

EU member states to push ahead with financial transaction tax The final steps towards the creation of a finan- lowed for the tax to be implemented through stantial contribution to public revenues. Final- instruments. The real economy continues to be cial transaction tax (FTT) in Europe are un- enhanced co-operation. ly, the FTT will support regulatory measures protected, as we ring-fenced ordinary financial derway after eleven member states have agreed The tax proposes a 0.1% levy for shares in encouraging the financial sector to engage in activities of citizens and businesses, as well as to its introduction. and bonds, and a 0.01% levy on derivatives. more responsible activities, geared towards the activities linked to raising capital”. Member states have agreed to the FTT Speaking on 14 February, the European real economy”. “Eleven Member States called for this pro- under the enhanced co-operation procedure, Commissioner for Taxation, Algirdas Šemeta, “What we have proposed is an unquestio- posal I have presented today, so that they can whereby a core section of countries agree to said that the agreement between the eleven nably fair, technically sound and legally robust move ahead with the FTT through enhanced move forward on an EU initiative. According member states “lays the final paving stone on tax”, he said, “a tax which will strengthen our cooperation”, Šemeta said on 14 February. “I to European Commission estimates, about the road towards a common FTT in the EU - single market and temper irresponsible finan- now call on them to continue to push ahead €31 billion a year could be raised by the tax. the first financial transaction tax ever to be im- cial trading”. with ambition. This would respond to the Austria, Belgium, Estonia, France, Germa- plemented at regional level”. “As clearly requested by the 11 participating long-time demands of our citizens, who have ny, Greece, Italy, Portugal, Slovakia, Slovenia According to the commissioner, the tax member states, the commission stuck closely to long understood the benefits that a harmo- and Spain have agreed to sign up to the tax, will do three things. “First, it will strengthen our original FTT blueprint when drawing up nised approach on the FTT can bring. Every proposed first by the European Commissi- the Single Market by reducing the number this proposal. This means we kept the low ra- procedural step to facilitate an FTT through on in September 2011, and backed-up by the of divergent national approaches to financial tes of 0.1% for shares and bonds, and 0.01% for enhanced co-operation has been met now, parliament in December 2012. An agreement transaction taxation. Secondly, it will ensure derivatives. We maintained the wide base, co- and nothing stands in the way of its imple- in January 2013 between finance ministers al- that the financial sector makes a fair and sub- vering all financial institutions and all financial mentation”. ADVERTISEMENT

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Mr. António Mascarenhas Monteiro Mr. Masoud Barzani Mr. Aminu Waziri Tambuwal Mr. Alain Michel Luvambano Former President of Cape Verde President Speaker of the National Assembly, Nigeria Secretary General, MOWCA UN Special Envoy for Nutrition for West Africa Kurdistan Regional Government, Iraq

NEWEUROPE 06 www.neurope.eu ANALYSIS 17 - 23 February, 2013

EU-US trade agreement ‘biggest deal ever’, says Barroso By Cillian Donnelly free trade agreement (FTA) between the European Union and the United States will amount to the “biggest bi- lateralA trade deal ever”, according to European Commission President, Jose Manuel Barroso. Speaking in Brussels on 13 February, Barro- so, flanked by EU Trade Commissioner, Karel De Gucht, announced the intention of both sides to begin proceedings that would bring about a formal transatlantic deal on trade and investment. US President Barack Obama an- nounced the initiative during his annual state of the union address on 12 February. A joint statement by Obama, Barroso and European Council President, Herman Van Rompuy, said that the deal would “advance tra- de and investment liberalisation, and address regulatory and other non-tariff barriers”. This was echoed by Barroso on 13 February, who said the deal would advance “the development of global trade rules”. He said, if successful, the deal would create European Union Trade commissioner Karel De Gucht (L) and European Commission President Jose Manuel Barroso give a press conference on “the largest free trade zone in the world”. the EU-US trade deal trade on134 February at the European Commission headquarters in Brussels. |AFP PHOTO/JOHN THYS He thanked the “business community on both sides of the Atlantic” for its help in the in- While admitting that reaching a deal will ment “the economic relationship for decades to cy of the council has already said it expects to itial success of the deal, and said that “we will not be easy, Barroso said that if implemented, a come”. launch formal negotiations before its leave of- definitely need their support for the next step”. comprehensive agreement could bring “tens of With the correct political will, he said, “we fice at the end of June. The European Commis- Currently, the EU and US account for billions of euros per year” to the EU, as well as can dismantle the existing tariffs and make sion will present a draft negotiating mandate to about 47% of global GDP, about one-third of “tens of thousands of jobs”. He said, it provided headway on market access”. The main focus of member states (which, according to De Gucht the world’s trade flow, while about €2 billion a “boost to the economy that does not cost a lot the deal, he added, should be removing barri- is almost complete), while the US administrati- worth of goods and services are traded daily of taxpayer’s money”. ers, overcoming divisive technical regulations on will send notification of the deal to congress, between the two. According to estimates, a free “This sends a positive signal: that we mean ad harmonising standards and certifications. which will trigger a 90-day period of discussion. trade deal between both parties would bring business”, he said. “It shows Europe and the US He said that the EU hoped to begin formal Both sides say they are willing to open formal annual gains of 0.5% GDP increase for the EU, are strategic partners, that are willing to go that negotiations on the deal by June, and “ideally, negotiations as soon as possible. with an equivalent 0.4% for the US by 2027. extra mile”. we would like to complete negotiations in two “We need to work together on developing Negotiations on the agreement will focus Trade Commissioner Karel de Gucht also years’ time, and hopefully within the mandate global rules and standards, which will shape the on three main areas, market access, regulatory admitted that finalising a deal “won’t be easy”. of this commission”. future business environment of the world in the issues and new modes of co-operation, inclu- Speaking alongside Barroso in Brussels, he Both parties must now play a waiting game, years to come”, said De Gucht. “This deal will ding the contentious issue of intellectual pro- said that this represented a “groundbreaking” although both are keen for developments to represent real savings for business and better perty rights. deal between the EU and US, which would ce- move before the summer. The Irish presiden- value for consumers”. (Continued from page 1) It is no secret that as part of the Euro- pean Structural Mechanism used to bailout Greece‘s debt the minimum wage programme should come up for review by 2014 under- DNA tests to be carried out on European meat lined European Commissioner for Monetary EU member states should carry out random Borg said that member states should re- whether or not the product presents a risk Affairs Olli Rehn. So Greece, has no much tests on processed meat in an effort to elimi- port their initial findings after 30 days, alt- and whether it complies with applicable le- time left and must move fast forward. nate mislabelled horsemeat from the food hough continue the tests for three months. gislation”, said Borg. “In the specific case of The lack of discussion on what needs to chain, the European Commission has said. Results are expected by 15 April. horsemeat the commission has carried out be changed to bring forth development in Speaking after meeting of relevant mi- Again, he stressed that the risk to human extensive audits on compliance by member Greece has been palpable in the past five al- most six years now since the economic reces- nisters in Brussels of 13 February, the EU health was a minimum, and that the real issue states of hygiene requirements and residues sion hit the Southern Mediterranean state but Health Commissioner, Tonio Borg, said that is one of mislabelling. of veterinary drugs, as our primary concern only recently things are changing in Greece in member states should carry out DNA tests “It is important to underline that the evi- is always the safety of our meat”. the right direction despite the strong reactions on processes beef for three months from 1 dence to date in relation to this episode does The Irish Agriculture Minister, Simon of opposition parties and trade unions. March. There should also be tests to detect not suggest a health crisis”, he said. “Horse- Coveney, who chaired the meeting, said that. Mergos went on to state that according to traces of phenylbutazone in abattoirs. meat, according to EU legislation, can be used Although it is up to member state authorities OECD figures in the region, Greece’s mini- According to Borg, the commission “will for the production of minced meat and meat to carry out tests, “this is a Europe-wide issue mum wage was comparably high to its neigh- recommend to the Member States to carry preparations. However, it has to be declared that needs a Europe-wide solution”. bors, for example Bulgaria. out appropriate controls at market level of on the label, the animal species must be in- The commission is in close contact with The minimum wage in Greece stands abo- products that are presented as containing dicated on the label of minced meat or meat food and consumer authorities throughout ve €500. In Bulgaria €158; in Czech Republic beef, in order to identify the scale of any preparations intended for the final consumer”. the EU, says Borg. €312; in Romania €163; in Portugal €485. Sources in Brussels have confirmed that these misleading labelling practices as to the pre- “The issue before us today is therefore “The health and consumer policy autho- issues just are not raised in Greece, as the politi- sence of horsemeat”, and, “as a preventive overwhelmingly one of fraudulent labelling rities in the member states are now doing cal parties are still worrying about the “political measure, it will ask Member States to carry rather than one of safety”. what they are required to do”, he said, ad- cost.” Yet the Mergos case, a simple true state- out appropriate controls for the detection of Individual member states are currently ding “I can assure you that the Commission ment, which raised much populist criticism, phenylbutazone residues in establishments responsible for ensuring the compliance of is very active at both political and technical indicates that the Greek government is in the handling raw horsemeat, including impor- EU food labelling rules. “Once a food pro- levels in co-ordinating the ongoing investiga- right direction in addressing the basic problems ted goods, so as to unearth any related safety duct is put on the market in the EU, it is the tions to identify the true picture as soon as which led the country in the present crisis. concern”. responsibility of member states to check possible”. CD NEWEUROPE www.neurope.eu 07 17 - 23 February, 2013 ANALYSIS

By Sanjay Pradhan Is the EU handing our welfare states to Goldman Sachs? Open Contracting: By David Cronin t first I thought it was a joke. Towards a smarter way Goldman Sachs, the epitome of greed and power, wants to of doing business lookA after the little people. Bigwigs from We live in unsettling times, where the effects of a persistent global fi- the bank‘s offices in the City of London nancial crisis and corporate and government scandals call into questi- have been in touch with the European on the viability of capitalism as we know it. The private sector is too Commission about initiatives that seem focused on short-term profit and pays insufficient consideration to to be of a social nature, according to in- broader societal issues. It is therefore understandable that public trust ternal documents that I‘ve seen. in business has fallen substantially since 2008. As shown by the 2011 Then it dawned on me that the idea European Trust & Purpose survey, “trust in multinationals has decrea- wasn‘t as fanciful as it appeared. If there‘s sed by 36% over the past two years and trust in CEOs has decreased by a whiff of money in the air, then the almost 50% during the same time.“ Yet we do know that trust is one of “vampire squid” (as Rolling Stone me- the most important commodities that any organization – governmen- morably christened Goldman) can‘t be tal or private – can have. far away. But the interests of business and society do not have to be mutually ex- In a “social investment package” - to clusive. We need to reinforce innovative approaches whereby business be published shortly - the EU executive generates - as a core value proposition - economic value including by will set out some proposals for “moder- tackling society’s major needs and challenges. Business is part of the nising” the welfare state. One of the sug- problem, but also a vital part of the solution. One innovative way to gestions being toyed with is to encoura- Laszlo Andor, the European Commissioner for Employment, Social Affairs | EPA/ restore some of that trust is to strengthen transparency and accounta- ge the use of “social impact bonds”. OLIVIER HOSLET bility in dealings between the public and private sectors. In this time of These instruments were introdu- deep financial constraints, it is even more important that public resour- ced in Britain during 2010. They were closely by the employers’ federation ble one. So the “efficiency” case made by ces be utilized as effectively and efficiently as possible. Public-private first tried out in Peterborough prison BusinessEurope. Towards the end of proselytisers for privatisation is essenti- contracts represent an estimated US $9.5 trillion each year. Failings in Cambridgeshire, which is run by the January, BusinessEurope organised a ally a canard. (Belgium, admittedly, has in public contracting –corruption, opaque contracting processes and for-profit corporation Sodexo. Under breakfast meeting to discuss ways of pro- a mixture of private and public healthca- poor oversight of contract implementation—are undermining deve- the bond programme, released detainees moting corporate involvement in social re providers but without the extremes lopment outcomes as well as the legitimacy of our institutions. are helped to find housing and jobs. If policy. The group had the neck to claim found on the other side of the Atlantic). Open Contracting is a new collaborative effort focused on tackling the men and women in question desist that “public private partnerships” are in The “social investment package” these issues through enhanced disclosure and monitoring of contracts. from re-offending, their “investors” reap the “common interest”. is being presented as the brainchild of Supported by a growing list of government, civil society and donor a handsome reward. This is manifestly not the case. Re- László Andor, the Union‘s employment partners, including the World Bank Institute, Open Contracting is A similar scheme has begun in the forms to Britain’s arguably most egali- and social affairs commissioner. Andor building a global movement to establish contract disclosure as the New York “correctional facility” Rijkers tarian institution, the National Health signalled recently that he wishes to give norm and ensure effective capacity across a wide set of actors—go- Island. Goldman is the key backer of Service, are not designed to benefit the a “human face” to economic policies, es- vernment, private sector and citizens—to monitor contracts. Signs of the scheme, along with Bloomberg Phi- masses. They are designed to let a hand- pecially to the euro. progress are already evident at global and country levels. Government lanthropies, a foundation run by the ful of companies make a killing. The His veneer of compassion does not agencies from Brazil to Timor Leste to the United Kingdom are ope- city‘s mayor. (Philanthropy, by the way, health care and social care act, which conceal how the euro is an inhuman ning up contract documents. There are Open Contracting coalitions is something rich guys do to avoid pa- came into effect last year, provides for project designed by bankers (Goldman in 21 countries, from Mongolia to Ghana, working in a wide range of ying tax). the NHS‘ evisceration. Analyses publis- Sachs was represented on the Associa- projects, from monitoring the construction of schools to advocating Am I alone in finding this offensive? hed by the British Medical Journal show tion for the Monetary Union of Europe, for improved procedures for the award of natural resource concessions. Bankers have for the most part not been how it paves the way for restricting the which drafted a blueprint for the sin- The private sector is already an essential part of this work and I encou- punished for their reckless behaviour provision of free medical care. A system gle currency). Cutbacks demanded by rage more companies and industry associations to play a leadership leading to the financial crisis. And now financed by taxation is being replaced Andor‘s colleagues have triggered a hu- role. While openness may seem somewhat unsettling for some at first, these same bankers are gambling on with a model more akin to that in place manitarian catastrophe in Greece. The ultimately, environments that are more open lead to more stable invest- whether run-of-the-mill criminals will in the US, where health insurance firms homelessness situation there - affecting ments and spur competition. Open Contracting initiatives are directly re-offend. have the power to decide who gets life- an estimated 40,000 people - is unparal- connected to and can complement many similar efforts in support of Of course, this all fits in with a wider saving operations and who doesn‘t. leled for a Western European country transparency, clean practices and the pursuit of value for money. We push to hand over almost every aspect of None of this is in the “common interest”. in modern times. Ireland, meanwhile, is need to make use of available platforms for engagement that can bring the economy to corporations. It was that The constant refrain from suppor- still being pressed to reduce its health together industry, government and civil society. The World Forum for supposedly unhip prime minister John ters of “public private partnerships” is spending by the EU and International Ethics in Business (WFEB), where I spoke recently, is one such plat- Major who set a trend for “public private that they want to guarantee efficiency. Monetary Fund. Spain has been told form. One of the unique value-propositions of the WFEB is the pro- partnerships”. His successor Tony Blair In their warped worldview, markets cut by the European Central Bank that cut- motion of a frontal focus on values and ethics at the level of the indivi- was sympathetic to some of the surroun- out any unnecessary flab and so the ex- backs forcing teachers to work in over- dual and corporate organizational cultures, an approach that is needed ding thinking. Yet it is David Cameron’s chequer ends up footing a smaller bill. crowded classrooms has put the country as the foundation of this new paradigm for business. current government that is really advan- It doesn’t work that way in practice. on the “right track”. The time is right for a new approach to capitalism that is imbued with cing this malign ideologically-driven When my daughter was born in Brussels “We must not allow those at the a social purpose and is founded on strong ethical values. By joining the agenda. The fiasco of last summer‘s last month, I was deeply impressed with bottom of society pay the highest price broader movement towards increased participation and transparency Olympics - when G4S wasn‘t up to the the quality of health care in this city. To for the moral failure and misconduct of and by making commitments to such efforts as Open Contracting, the task of meeting the games’ security re- my astonishment, I learned that Belgium others on the top,” Andor has said. He public and private sectors will be reinforcing their common long term quirements - illustrated why key services spends only about half as much per ca- can‘t really have believed those words. interests. If we join forces to level the playing field, decrease corruption must be kept under public control. That, pita on medical care as the US. Having a If he did, he wouldn‘t be so intent on and improve the business environment, we can ensure value for mo- however, hasn’t restrained the Tories. hugely unfair health care system such as “modernising” the welfare state to ney, improve the delivery of basic services, while promoting socially Preparation of EU’s new “social in- America’s places a higher burden on the please corporations headed by moral inclusive economic growth, sustainable development and ultimately a vestment package” has been followed public purse than having a more equita- degenerates. better world for all. NEWEUROPE 08 www.neurope.eu ANALYSIS 17 - 23 February, 2013

By Francisco Jaime Quesado Kick-starting Europe’s economy by investing in public transport The risk of the Capital We need to face a new risk to the capital. The agenda of growth that our companies are facing represents the opportu- nity of developing new challenges focused on innovation and creativity with strong impacts in terms of economy and soci- ety. The capital is a central asset to the development of a new competitive agenda and only with a dimension of risk it will be possible to face new challenges in the future of our economy. Europe is facing new challenges for the future and it will have to decide about the most suitable strategies for this Capital Risk. In a time of uncertainty and uncontrolled global financial crisis, Europe must focus more and more its attention on laun- ching the basis for a Capital Risk centered in the drivers of high growth rate and civil society capacity of creating and develo- ping added value for the international market. More than ever, Leaders of public transport in major 6 European cities call for more investment in their Rome Declaration, just signed. |UITP we need to develop colectively aa agenda of change in Europe. The effectiveness of this Capital Risk in Europe demands a stron- in, it becomes even clearer that investing wards providing a supportive and stable By Alain Flausch ger coordination among the different partners towards action: in public transport represents good va- legal, regulatory and funding environ- ■ Develop active policies towards the participation of SME in Alain Flausch, lue for money. ment for the sector, allowing long-term global networks; Secretary General, It was with this in mind that UITP planning as well as increased investment ■ Reinforcing the role of “Clusters of Innovation” as Centers International As- gathered six of Europe’s largest capital opportunities from the private sector, of Excellence for new areas of knowledge (biotech, renew- sociation of Public city public transport operators in Rome institutional players and external sour- Transport (UITP) ables energies, new communications); in December 2012, to issue a collective ces. This would allow public transport ■ Reinventing the role of Universities as active players in the declaration. In the first such meeting undertakings to modernise and extend development of a culture of competitiveness among civil so- of its kind, the CEOs of Transport for their networks in the most cost effective ciety; n tough times when finance mini- London, BVG (Berlin), RATP (Paris), manner. ■ Enabling the States to progressively eliminate obstacles to sters across Europe are pulling the Metro Madrid, ATAC (Rome) and In tight financial times, the public investment and innovation; strings of the public purse ever ti- Moscow Metro together sent out the transport sector has a certain responsi- The recent approval of the New Europe 2020 Agenda Finan- Ighter, public services are coming under message to policy makers at all relevant bility therefore to justify its worth and cing Budget is a good example of this new strategic vision for a increasing pressure. levels that public transport can help de- to demonstrate it can deliver higher new agenda of excellence. But it´s not enough. It must be effec- In this context, reflection about how liver a sustainable recovery solution to capacity and better quality services. tively complemented with an active participation of policyma- public funding can and should be allo- Europe’s anaemic economy. Ever-rising fuel prices and increasing kers in disseminating the new message for the future. The Risk cated means that essential services such Efficient urban mobility provides urban (and sub-urban congestion) will Capital will be an effective and strong enabler to the social and as pensions, healthcare and education the foundation for economic growth draw more people towards collective economical development of the institutions and the citizens. are often prioritised. and creates social integration. Rapid transport modes. Customer-orientation That´s why we need new programs, new answers, new solutions. So where does this leave public urbanisation means that there is an ur- is essential therefore to ensure that the In this way, the extremely positive experience of integrated transport? Let’s not forget that in Euro- gent need to invest in Europe’s cities and sector delivers the level of quality and projects like the “Poles of Competitiveness” and Clusters of pe, public transport operators provide support expansion, which in turn spurs convenience that people are coming to Innovation across the different regions should be replicated 1.2 million direct jobs and the sector as growth and encourages job creation. It expect. in other European countries. It allows – as it can be confir- a whole represents between 1 and 1.2% should be no secret then that the cities Customers expect mobility solu- med by its results – a very strong commitment between the of EU GDP. It’s also worth noting that with the most modern and efficient tions that are fast, safe, clean, comfor- implementation of a global national economic strategy and every euro of value created from public public transport systems are also the table and affordable, coupled with un- specific areas of regional development, which is now consi- transport is linked to a further value cre- ones attracting the brightest minds and derstandable and useful information. dered by the European Union as a key enabler for the future. ation of €4 in the total economy. So, it’s a the most innovative businesses, linking This means that the public transport This new economic strategy demands an effective Part- sector that provides and will continue to people to jobs, education and health sector will have to become a true mobi- nership Contract between all the actors (States, Universities, provide, economic value as well as local services. lity provider, which in certain cities will Companies, Civil Society), in order to build a real Strategy of green jobs that cannot be delocalised. Investment in public transport require a fundamental shift in mentali- Confidence in the implementation of the different policies. The Public transport is both a major should not mean of course that pensi- ty, in order to provide services to meet focus on Innovation and Knowledge as the drivers of creating contributor to national and local eco- ons, education and healthcare bills go changing lifestyle patterns and increa- added value with international dissemination is a unique chal- nomies. It may still come as a surprise unpaid, it is instead a question of recog- sing demand. Intermodal strategic part- lenge that may be the answer to a new way of interaction bet- though that in Amsterdam, Barcelona, nising that the sector is a valuable motor nerships and alliances with taxis, bikes, ween those who have the responsibility of thinking and those Brussels and Dublin, public transport for growth and job creation and should car sharing, parking facilities and infor- that have the responsibility of producing goods and services. operators are the largest city employers. therefore, despite limited public resour- mation providers are needed as well as Whilst there’s no hiding from the ces, be allocated the stable and reliable integrated information, tariffs and fare fact that large-scale public transport financing that it deserves. Full integra- products. Francisco Jaime Quesado is the General Manager of the Inno- projects - to create extra capacity or tion into urban planning, to ensure that This is not a challenge to be taken vation and Knowledge Society in Portugal, a public agency wi- increase quality - are costly, the cost of sustainable modes are considered from lightly. The arguments in favour of pu- th the mission of coordinating the policies for Information So- enhancing urban mobility is actually si- the outset, is also a prerequisite to help blic transport are clear but the sector ciety and mobilizing it through dissemination, qualification and gnificantly lower than the direct cost of liberate our urban environments from needs to do more to ensure that it recei- research activities. It operates within the Ministry of Science, Te- congestion. If the external costs and so- congestion. ves the financial and political support chnology and Higher Education cial impacts of congestion are factored Policy makers should also look to- that will enable it to flourish. NEWEUROPE www.neurope.eu 09 17 - 23 February, 2013 ANALYSIS

By Andy Carling Brussels falling of telecom map Constructive No 4G for self-proclaimed ‘Heart of Europe’ Ambiguity

ForSong people of a certain for generation Europe in the UK, commonly described as ‘old farts’ by a modern uncaring world, Europe was a rather exotic place. To our fathers and grandparents, it was a place of strange tasting food, odd cheeses and the tedium and horror of the battlefield. To our children it’s just another place across the road. Perhaps, before globalization, each generation discovered its own Europe. For those who were higher up the social scale, Europe occupied a slightly Confucian niche, being the home of the Grand Tour, where young minds might be enlightened by learning and of course, it was the home to Switzerland, where generations of gals were sent to be ‘finished.’ Nobody has explained what that actually entailed and it’s probably best not to enquire. Beyond that, there were books and films. One of the changes in movie making is that it’s all down to quick editing, establishing shots are a rarity and the ‘travelogue’ aspect of storytelling in celluloid has all but disappeared. The earlier Bond films were superb for that, in between the action and seduction we got glimpses of European cities, the roads, the marketplaces and yes, the obvious attractions. Bond Paris, oui, Strasbourg, oui, Brussels, non! | AFP PHOTO/ BERTRAND GUAY seemed to be the most sophisticated man, not because he was a spy but because he seemed so at home, wherever he was in risks being the only place in Europe with tage in technology driven productivity Europe. By Andy Carling no 4G!” erode. It is investing less, and growing In those days, for those whose household budget didn’t stretch he European Commission is The Environment Minister for Brus- that investment slower than places like to skiing, Europe was very far away indeed. I remember the heavily promoting innovation sels Region, Evelyne Huytebroeck, re- Asia. European businesses must leverage annual visit of French onion sellers, who toured on bicycles, and hi-tech as not just a vital part sponded angrily, telling French speaking their years of investment in technology with the regulation jacket, beret and cigarette as a child, but Tof business, but also as a way out of the papers she was “outraged” by Bellens and ensure their digital platforms are they were the only Europeans who made it to our northern financial malaise of our time. comments and threatened to hold talks sufficiently mature, so they make every mill town, apart from the Poles, the ones we didn’t ship back However, the reality is that Brussels, with telecoms companies but excluding investment count and stay competitive to Stalin. the home of the EU institutions and Belgacom. in this tough environment. The techno- Before the EEC, cheap flights and the Channel tunnel our fellow a city that markets itself as being ‘The The Commission is said to be con- logy industry is proving that it can make Europeans seemed to be very foreign, possibly even alien. Heart of Europe’, is set to fall off the te- cerned, and not just out of embarrass- a serious difference to productivity, but There was one thing that made me consider Europe, music. lecom map as the next innovation, 4G ment of being in a digital backwater, but technology must work with the rest of Firstly, David Bowie, whose move to Berlin produced three won’t be found in the city for a very long because of the effect on trade and the the business if it is to be successful.“ of his finest albums, and quite possibly his next, There were time. Digital Agenda, yet there is little they can Another blow was the destruction of other influencers, in particular a quartet from Dusseldorf, The reason for this is the decision do with this problem that is not of their the near €10 billion fund for investing in Kraftwerk, who reinvented music from their mysterious lair, of the Brussels regional government to making. broadband in Europe, ditched in the EU the impenetrable King Klang studio. impose much stricter limits on emissions Commission Vice President and budget talks. Commissioner Kroes wrote They were young Germans without a culture of their own, and from telecoms masts, lowering the levels head of the Digital Agenda, Neelie Kroes on her blog, “broadband is essential for a first hit our shores in 1974 with Autobahn, a record that was from 20 v/m to 3 v/m. The change was said, „This extra spectrum for 4G in Eu- digital single market, the rails on which haunting, melodic, experimental and, well, pop. After than decided in 2007 but it is only now, es- rope means we can better meet the chan- all tomorrow’s digital services will run; came Radioactivity and then a masterpiece, Trans-Europe pecially with the advent of 4G, a much ging and growing demand for broad- and this could have been an innovative Express in 1977. As the Sex Pistols were tearing down outdated more powerful network that allows for band. I want to see Member States acting and highly market oriented way to deli- convention, the digital Dusseldorfers were offering, not only a high speed internet use and so on that swiftly to change existing licenses. We all ver it, almost budget-neutral in the long new sound for the modern world, but also, in the words of one lets modern smart phones exploit their win from faster wireless connections in run.” review, “a sonic poem to Europe”. full potential. Europe.“ She added, “If they do not support Concern is mounting that Brussels The UK is one nation hoping to be- that wider policy agenda, national go- Kraftwerk have a reputation for being mechanical, non-human, will fall behind the rest of Europe. The nefit. Their estimates say that €6.4 billion vernments will not achieve their own but this record is a wonderfully warm sound, with subtle limits for 2G and 3G have been reached could be generated by switching to 4G. ambitions on broadband and the digital humour and an appreciation, not only for technology, but of in the city, but 2G cannot be phased out All 27 EU Member States are meant divide; they will face far more pressure the land the music journeys through. as 60% of phones still use it. to roll out 4G in the middle of 2014. to set up their own support schemes in Their futurism also had a touch of nostalgia, being slightly retro. The chief of one major telecom com- The launch of 4G has been difficult. areas where the market alone will act; It’s not a surprise that travel is one of their major themes, from pany was outspoken on the matter. Bel- Despite the advantages many network and we risk not being able to build a con- the Autobahn, the trains and even a later obsession, cycling. gacom Chief Executive Didier Bellens operators have been cautious, often after nected, competitive continent.” Florian Schneider’s father designed Cologne airport, indeed said “Brussels has the most embassies overspending during the earlier auction- The most prominent symbol of this it’s not hard to imagine walking around the building listening to in the world,” referring to many nations ing of 3G technology and there are con- malaise will be the lack of 4G in Brussels, Kraftwerk, a kind of father and son ‘Music for Airports’. having representations to Belgium, the cerns over pricing levels for customers. which will be embarrassing, but the truth What has made me feel interested about Europe, intrigued, EU and NATO, “All of these embassies There is also growing concern that is even worse, 3G is not as prevalent as it inquisitive and appreciative, is not the billion Euro comms want 4G. And what does Brussels say? the whole of Europe is falling behind. used to be in the city. budget of the European Union, but the humble artist, pursuing F*** you!” John Higgins, Director General, Digital 4G is available in Strasbourg, which their creativity. He added, “The capital of Europe Europe, said, „Europe is letting its advan- may interest MEPs. Europe Endless, in their hands, sounds like a great idea. NEWEUROPE 10 www.neurope.eu ANALYSIS 17 - 23 February, 2013

US government files lawsuit againststates have filed meritless S&P civil lawsuits against By Peter Taberner S&P challenging some of our 2007 CDO ratings he US Department of Justice (DOJ) and the underlying RMBS models. Claims that has filed a civil lawsuit against Standard we deliberately kept ratings high when we knew and Poor, accusing the ratings agency of they should be lower are simply not true. We will Tbeing engaged in a scheme to defraud investors vigorously defend S&P against these unwarran- in financial packages, leading up to the 2008 glo- ted claims. S&P has always been committed to bal recession. serving the interests of investors and all market Structured financial products such as Resi- participants by providing independent opinions dential Mortgage-Backed Securities (RMBS) on creditworthiness based on available infor- and Collateralized Debt Obligations (CDOs), mation.” Unfortunately, Standard and Poor, like where individual loans and bonds can be traded everyone else, did not predict the speed and se- in a portfolio, the lawsuit alleged were misrepre- verity of the coming crisis and how credit quality sented by Standard and Poor; which the DOJ say would ultimately be affected.” resulted in financial institutions losing billion of They argue that the ratings they published dollars on CDO’s, as true credit risks were not on the sub-prime mortgage was based on the made clear. same data that everybody had access to in the Joining the DOJ in filing the lawsuit are the market, and that every CDO that has been tar- attorney generals from the states of California, geted by the DOJ, also received the same ratings Connecticut, Delaware, the District of Colum- from another independent agency. bia, Illinois, Iowa and Mississippi, who like the (L-R) Principal Deputy Assistant Attorney General Stuart Delery, District of Columbia Attorney “Of course Standard and Poor are going to federal body allege that misconduct took place General Irvin Nathan, U.S. Attorney General Eric Holder, Iowa Attorney General Tom Miller, use the word meritless.” David John continued. by Standard and Poor over financial products. Mississippi Attorney General James Hood and Illinois Attorney General Lisa Madigan hold a news “Although its important to note that it’s a civil David John, a senior research fellow on fi- conference at the Department of Justice 5 February in Washington, DC. Holder announced that the case so there will be no criminal prosecutions, nancial institutions, at the Washington based United States is bringing a civil lawsuit against the ratings agency Standards & Poor’s and its parent the problem for the business is the uncertainty think tank the Heritage Foundation said: “We company, McGraw-Hill Companies, over its pre-fiscal crisis bond ratings. |Chip Somodevilla/Getty Images/AFP that this law suit will bring them over a period to have seen a pattern from the DOJ and the states time.” Since the lawsuit was filed, shares in Stan- where negotiations take place, and then agree- corporate credit union in the country before its posed by RMBS and CDOs. According to the dard and Poor’s parent company McGraw Hill, ments are concluded, and monetary compen- collapse in 2008. DOJ, Standard and Poor deliberately weakened started to recover last week after being reduced sation is what usually follows after negotiations “Many investors, financial analysts and the the criteria and models, even though this was to a low of 42.6700 on 8 February, they stood at over a period of time.” general public expected S&P to be a fair and against the opinions of their own analysts, who 44.8600 on Friday, 14 points down from before “We are dealing with two things, one is the impartial umpire in issuing credit ratings, but believed for credit risks to be accurate the origi- the law suit was made public. question of what wrong doing happened that the evidence we have uncovered tells a different nal criteria should have remained in place. The complaint has been filed following an contributed to the causes of the 2008 crash, and story,” said Acting Associate Attorney General It is alleged that between March through investigation code named ‘Alchemy’, that began also we have seen high profile resignations like West. “Our investigation revealed that, despi- to October 2007, Standard and Poor inflated in 2009 and was connected to President Obama’s in the Securities and Exchange Commission, as te their representations to the contrary, S&P’s the ratings on hundreds of billions of CDO’s, Financial Fraud Enforcement Task Force, set up there has been pressure from the left, some peo- concerns about market share, revenues and pro- attempting fraudulently to increase market sha- to investigate any fraud or financial crimes as part ple feel that the follow up on the causes to the fits drove them to issue inflated ratings, thereby re and profits. At the time it is also alleged that of the response to the financial crises. crises should have been better. It is an interesting misleading the public and defrauding investors. the agency knew that the quality of non-prime With more than 20 federal agencies and 94 coincidence that this action is being taken now, In so doing, we believe that S&P played an im- RMBS was severely impaired, and the mortgage attorneys’ offices, in alliance with state and coun- and maybe it’s a reaction to the criticism that not portant role in helping to bring our economy bonds would just not hold up. ty partners, the task force the DOJ claim is the enough has been done to punish actions that to the brink of collapse.” The US government As the lawsuit is an ongoing process, the broadest coalition of law enforcement, and regu- caused the downturn.” alleges that due to Standard and Poor’s concern DOJ have refused to comment any further on latory bodies ever assembled to combat fraud. The action was filed in the Central District with market share, between 2004 and 2007, the the process, and what the next stages of the case Over the past three fiscal years the DOJ has of California, that used to be home to the now ratings agency repeatedly limited, adjusted, and will be. Standard and Poor have strongly rejected filed 10,000 financial fraud cases against nearly redundant Western Federal Corporate Credit delayed updates to the ratings criteria and analy- the allegations made, and in a statement they re- 15,000 defendants, including more than 2,900 Union (WesCorp), which used to be the biggest tical models it used to assess the risks that were plied to the accusations: “The DOJ and some who have been accused of mortgage fraud.

By Antigoni Papadopoulou, MEP Antigoni Papadopoulou MEP is a member of the European Parliament’s massA – areRenewable essential alternatives to fossil fuels. cameEnergy the first major regional Futurenuclear actor incidents, is involving Possible nuclear power stations, in Progressive Alliance of Their use reduces greenhouse gas emissions. to provide binding legal rules to the main the scale of Fukushima or Chernobyl are in- Socialists and Democrats It diversifies energy supply since it reduces international nuclear safety standards by ad- deed rare; unfortunately however, when they (S&D) and the Cyprus sole dependence on unreliable and volatile opting the Nuclear Safety Directive 2009/71/ occur, they have immeasurable consequences Democratic Party. fossil fuel markets (oil and gas in particular). Euratom. This directive sets up a common which cannot be ignored. This is why the Ger- Energy is the fuel of Europe’s economic engi- The growth of renewable energy sources is legal framework for EU Member States. To- man Government has recently announced its ne. Energy production and consumption have one of the main priorities of EU 2020 because day, nuclear stations produce one third of the intentions to shut all nuclear reactors by 2022. however environmental impacts. Energy rela- it leads to creative and innovative new techno- electricity and 15% of the energy consumed in The gradual reduction of nuclear power ted emissions contribute to pollution of air, logies, improves trade balance and stimulates the European Union. However, even though usage across Europe should be paralleled with water and soil while also posing risks to hu- employment in Europe by creating emplo- nuclear power is considered as an attractive a new initiative of promoting Energy from man health, nature and biodiversity. Climate yment opportunities. In January 2007, the source of energy, mainly due to the relatively renewable sources. By switching from fossil change along with an increasing dependency Commission published a Renewable Energy stable levels of costs, the concern for the sa- fuel and greenhouse gas intensive sources of on energy imports are only a few of the risks Roadmap outlining a long-term strategy. It fety risk related to radioactive waste is shared energy, to renewable sources of energy, Eu- the European economy is facing today. In that called for a mandatory target of a 20% share of both in countries with nuclear power plants rope will be able to fully grasp its sustainable spirit, sustainable energy policies aim to red- renewable energies in the EU‘s energy mix by and in those with no nuclear energy. These potential - in economic, ecologic and social uce these threats, while ensuring the security 2020. The target was endorsed by EU leaders concerns became stronger after the recent terms. It is understandable that some states of supply and the competitiveness of the EU in March 2007. To achieve this objective, the catastrophic events in Japan. The disaster in might find this more challenging than others, industries. EU adopted Directive 2009/28/EC in April the Fukushima Daiichi Nuclear Power Plant but the helplessness of Japan to manage the Renewable sources of energy such as – 2009, which set individual targets for each revealed that, despite any safety measures ta- Fukushima Daiichi nuclear disaster should be wind power, solar power, hydro-electric po- Member State. ken by man, nature remains unpredictable and in this case the milestone for a drastic turn in wer, tidal power, geothermal energy and bio- Furthermore on June 25th 2009, EU be- therefore it cannot be controlled. It is true that the Unions Energy Policy. NEWEUROPE www.neurope.eu 11 17 - 23 February, 2013 EU-WORLD

Israeli un-governability hinders integration of Arab minority By Mose Apelblat

he parliamentary elections which took place in Israel on 22 January resulted in a new political situation with two almost Tequally strong blocs: the center-rightist-Ortho- dox bloc gaining 61 seats and the center-leftist- Arab bloc gaining 59 seats. If the electorate´s message of a new bloc-crossing government would be heeded, we might see positive change in both foreign and domestic policies. This might seem paradoxical as the election campaign was almost void of any discussion on substance – such as how to revive the moribund peace process, tackle the Iranian nuclear threat, resolve the growing socio-economic gaps, share the defense burden equally among all groups in society and integrate the estranged Arab mino- rity in the country. In short there is no lack of urgent issues Israeli Prime Minister Benjamin Netanyahu (C) and ultra-nationalist Avigdor Lieberman (L) of the Likud-Beitenu coalition wave to supporters at the party which would need the attention of the new go- headquarters in Tel Aviv early on January 23, 2013 after their Likud-Beitenu list won the Israeli general elections. | AFP PHOTO/MENAHEM KAHANA vernment. But here we have the second paradox in Israeli politics. A wide coalition government threshold for gaining a seat in parliament– cur- Following the ruling, Alexander Yakobson, each-other´s concerns. which enjoys the support of a qualified majority rently 2 percent. In most countries in Europe a historian and political activist, wrote that the It was sad to listen to the aggressive state- in the parliament, Knesset, doesn’t necessarily the threshold is about 4 % so that the smallest level of violence between Jews and Arabs in Is- ments made by the representatives of the Ra’am mean a strong government capable of both ta- parties can be excluded and stable governments rael is remarkably low while the level of freedom – Ta’al party, denouncing as they did the record king desirable decisions and implement them being formed. of expression is very high (Haaretz, 9.1.2013). of religious freedom in Israel and advocating a effectively. A good example of un-governability is the “In Israel, relations between Jews and Arabs, democratic state not of its citizens but of its two In Israel no party has ever received a majo- peace process or rather the absence of it. Opi- though of course far from idyllic, are far more nationalities. rity of the votes and been able to govern alone. nion polls before the recent elections showed complex and on the whole far better than could Here one feels inclined to agree with the Since 1977, when the labour party’s political that there is a majority for a two-state solution, be expected. European interpretation of “sup- former Israeli deputy foreign minister who hegemony was broken, Israel has been ruled by even among rightist voters, and for a compro- porting terrorism” for outlawing parties is far pointed out that bi- or multi-national states in coalition governments, where small parties, in mise on the Jerusalem issue. The three center- more draconian than the Israeli one”. He might Europe have all failed. There is no reason why particular the religious Orthodox parties, have leftist parties who during the election campaign be right but for how long? Israel should embark on such a dangerous expe- extracted a high political price for their support. challenged the ruling center-right-religious However, despite their relative success, the riment when it’s expected to agree to a two-state Change in power from time to time is of government were however busy positioning Arab parties are largely marginalized in Israeli solution of the Israeli - Palestinian conflict. The course healthy from a democratic point of view themselves and failed in agreeing on a common politics because they have never been invited to same idea was in fact expressed before the elec- but in the Israeli case the fragmented political platform. We can only hope that the silent pro- join any coalition government. You would have tions by the Israeli president Shimon Peres in a system has resulted in un-governability. The peace majority will find a strong voice in the to be inside the government in order to cham- speech which angered the government. coalition governments are short-lived, with new new Israeli government. pion an anti-discrimination agenda. According It’s obvious that we have two contradictory parties leaving and entering all the time, and the Another example is the integration of the to Rubinstein & Wolfson, in the vote of confi- narratives about the origin and the solution of prime minister being busy keeping the govern- Arab minority in Israel (see previous article in dence in forming the government a majority of the conflict. Some of the Arab MEPs describe ment together. New Europe, 2 – 8 December 2012). Despite the Jewish MEPs is required by tradition. the conflict as colonization by a foreign power As a result of the coalition bargaining, the calls in media to boycott the elections, voter Partly the marginalization of the Arab par- of their native homeland. For the Jewish side it’s ministers are often being replaced after only turnout among the Arab citizens increased in ties appears to be their own doing as could be a matter of return to the old homeland and the 1 – 2 years. It’s no wonder that they aren’t able the recent elections to 56 %. It was still below seen in the annual Yaffa Convention, a confe- restoration of the right of national self-determi- to carry out long-term policies and fully spend the overall turnout, which also increased a few rence which took place before the elections in nation. We cannot expect the two sides to ac- the budgets their ministries have been allocated. percentage points to 68 %, but might have bro- the Arab-Jewish Community Center in Jaffa cept each-other’s narratives but Jews and Arabs Another disadvantage of the coalition gover- ken a negative trend. outside Tel Aviv. in Israel need at least to understand each other ning is that the ministers treat their ministries as The Arab voters apparently didn´t buy the The convention was launched in 2005 by in order to be able to find a solution which ena- personal fiefdoms, abuse political appointments argument that there is no difference between the Citizens Accord Forum, a NGO with a visi- bles them to live in the same country in peace. and don´t cooperate with other ministers to sol- the “Zionist” parties. Opinion polls before the on of a democratic and pluralistic society where The only comforting message from the ve cross-cutting problems. elections showed that the Arabs in Israel are all groups irrespective of religion or ethnicity convention was that the majority of Jewish Contrary to other democracies, Israel can- more interested in finding a solution to socio- receive equal treatment and a proportional sha- and Arab politicians present at the convention not be ruled by a minority government, with economic problems than reviving the peace- re of public resources, as foreseen in the Israeli could agree, despite their opposite opinions on the tacit support of smaller parties, as any new process. Declaration of Independence and in following the Israeli-Palestinian conflict, that it should be government must be pass a positive vote of con- The three Arab or Arab dominated partiers basic laws. possible to strive for equality and improve the fidence in the Knesset. According to a recent did together gain 11 seats, the same number as The mayor of Tel Aviv – Yaffa acknow- situation of the Arab minority in Israel without book by Rubinstein & Wolfson, “Absence of go- in the 2009 elections. They all benefited from ledged in his key note speech that “it’s not easy first finding the elusive solution to the conflict. vernment” (2012), the right balance between the low threshold, as their share of the votes was to be an Arab in Israel”, but no clear response That doesn´t imply that solving the conflict democratic representativeness and government in the range of 2,6 - 3,7 %. Among the candi- was given to the overall theme of the Conven- wouldn´t contribute immensely to reducing the effectiveness hasn’t been struck in the Israeli po- dates who gained a seat was Ms Hanin Zuabi, tion - “So What´s Next?” On the contrary, the mistrust between Jews and Arabs in Israel. litical system. known for her nationalist rhetoric, whose dis- speakers in the opening political session, all Mose Apelblat, The author is an official in the The election system is characterized by qualification by the central election committee prominent Arab and Jewish politicians, main- European Commission. He has written this country-wide proportionality and a very low was overruled by the Supreme Court. ly talked at cross-purposes and didn´t address article in his private capacity. NEWEUROPE 12 www.neurope.eu Energy & climate 17 - 23 February, 2013

Greek, Italian, Albanian ‘show of force’ strengthens TAP By Kostis Geropoulos ATHENS - The signing of the Inter-Govern- mental Agreement between Greece, Italy and Albania, puts the Trans-Adriatic Pipeline (TAP) in a preeminent position, a pipeline executive told New Europe. “Commercially and technically TAP is in a leading position and with today’s show of force by the governments, let there be no hesi- tation about TAP’s pre-eminent position and commitment to win the selection by the Shah Deniz consortium,” TAP Country Manager in Greece Rickard Scoufias said in Athens on 13 February. He was asked if TAP is catching up to Nabucco West. On 13 February, the governments of Greece, Italy and Albania gave their full sup- port for and commitment to TAP by signing a tri-lateral intergovernmental agreement (IGA). Greek Foreign Minister Dimitris Avra- mopoulos, Albanian Deputy Prime Minister and Energy Minister Edmond Haxhinasto and Italian Development Minister Corrado (L-R) Italian Minister of Economic Development Corrado Passera, Greek Foreign Minister Dimitris Avramopoulos, and Albanian Deputy Prime Passera signed the agreement on behalf of the Minister and Minister of Economy, Trade and Energy Edmond Haxhinasto shake hands during the signing ceremony of TAP, in Athens, 13 Febru- three governments. Avramopoulos said the ary 2013. |AFP PHOTO/ARIS MESSINIS agreement “sends a message of optimism; a message so loud that it can be heard today in carry 10 billion cubic metres of gas available ce today and they see that E.ON, Statoil and Gas Corridor which aims at linking directly Azerbaijan, which, through the TAP, is now from Shah Deniz phase II in Azerbaijan. The Axpo – three of the biggest European compa- the European Union with the rich gas sour- closer to us”. Shah Deniz consortium, which comprises BP, nies – are investing billions in Greece it ine- ces in the Caspian Region,“ Oettinger said in Greek Prime Minister Antonis Samaras Norway’s Statoil, Azerbaijan’s state oil compa- vitably sends a vote of confidence in Greece a statement. made the opening address, saying TAP “will ny SOCAR and France’s Total is expected to internationally”. TAP’s Managing Director Kjetil Tungland turn Greece from a second-tier energy desti- choose one of the two pipeline contenders by The project is designed to expand trans- said this agreement between TAP‘s host coun- nation to a strategic transit point”. TAP will the end of June. portation capacity from 10 to 20 billion cubic tries “lays the strong foundation and long bring €1.5 billion in investment and create TAP‘s shareholders are Swiss energy metres per year. TAP also envisages physical term security that is required to move the pro- 2,000 direct and 10,000 indirect jobs during company Axpo (42.5%), Statoil (42.5%) and reverse flow of up to 80% and the option to ject forward towards selection and construc- the construction phase. Germany’s E.ON Ruhrgas (15%). develop natural gas storage facilities in Alba- tion. We now look ahead to continuing our High representatives from the US govern- TAP will bring significant foreign di- nia to further ensure security of supply during fruitful cooperation in making the TAP pro- ment and the European Commission were rect investment and jobs associated with the any operational interruption of gas deliveries. ject a reality”. also present at the signing ceremony. construction of this major pipeline in all three EU Energy Commissioner Günther Oet- TAP’s External Affairs Director Micha- Scoufias told New Europe that technically host countries – Greece, Albania and Italy. tinger welcomed the signature of a tri-lateral el Hoffmann said “the signing of the IGA and commercially TAP is in a very good posi- Scoufias said that despite Greece’s difficu- intergovernmental agreement (IGA) as an further reinforces the host governments’ tion. He added that now the governments of lt situation, TAP “never hesitated in our com- essential step in the preparation of TAP. „This support for TAP from a legal and regulatory Greece, Italy and Albania have thrown their mitment to Greece ... We have full support in pipeline is instrumental to connect the gas perspective. For TAP, this concludes the last full political support behind the project, ma- investing in Greece. The government is now markets of Italy and Greece and to bring gas remaining high level international political king it absolutely clear that TAP is a very im- working very hard to generate the growth to Albania and potentially to other of our agreement, which is important for the up- portant strategic project for them. agenda and the investment climate in Greece Energy Community neighbours. It could be coming selection process by the Shah Deniz TAP is competing with Nabucco West to and I think that as international look at Gree- among the first components of the Southern Consortium”.

Kiev, Ashgabat agree tentative gas deal Gazprom stands firm on pricing of exports On 13 February, following talks between many areas. Until 2006, Turkmenistan supplied Russian gas monopoly Gazprom Deputy Chief cash,” he said. However, Gazprom is conside- Ukraine‘s President Viktor Yanukovych and his Ukraine with 36 billion cubic metres of gas annu- Executive Alexander Medvedev said the compa- ring proactive measures to ensure its consumers Turkmen counterpart Gurbanguli Berdymuk- ally in exchange for cash and goods. ny is standing firm on how it prices exports for meet contractual obligations. Gazprom said it hamedov, Kiev reached a tentative agreement with Ukrainian Energy Minister Eduard Stavyts- the foreseeable future. “We are not planning to was normal for consumers to take on less na- Ashgabat to resume imports of natural gas from kyy told journalists in Ashgabat talks with other make any additional changes,” Medvedev was tural gas than contracts stipulate. Excessive gas Turkmenistan. parties will follow before the deal can be finalised. quoted as saying by the press. then settles in a gas transmission system. “This “I think it’s time to make medium and long- The deal‘s completion would require the consent of Norway’s Statoil delivered record gas volumes hinders the fulfilment of requests from inde- term plans. I would like to discuss these issues du- Kazakhstan and Russia as transit states. Ukraine has to the region, growing its sales by around 10% pendent producers for gas transmission to other ring today‘s visit,” Yanukovych said. He added that been seeking alternatives to Russian gas imports to in 2012, after it linked many of its contracts to purchasers,” Gazprom said. “In the end, such a Ukraine is ready to continue and expand its co- meet its energy needs. Last month, Russian gas mo- gas prices. But Medvedev said Statoil gained situation keeps down the development of the operation with Turkmenistan. The president said nopoly Gazprom demanded that Ukraine pay back market share at the expense of revenue. “We are Russian gas market which stipulates the flexibi- the two countries had much to offer each other in a $7 billion debt, a claim Kiev disputes. not hunting [sales] volumes, we are hunting for lity of transmission services.” NEWEUROPE www.neurope.eu 13 17 - 23 February, 2013 Energy & climate

By Kostis Geropoulos ConocoPhillips withdraws Energy from 2 projects in Kazakhstan Insider By Kulpash Konyrova ASTANA - The Kashagan field in the Cas- Russia to help Iran but pian Sea is one of the trump cards of Kazak- hstan in conversation between the govern- ment and foreign investors. This Central won’t get fooled again Asian republic hopes much for develop- Following a recent meeting of Russian Energy Minister Alek- ment of the field. Thus, according to EBRD, sandr Novak and Iranian Foreign Minister Ali Akbar Saleh, the GDP growth will be 6% in Kazakhstan Tehran offered Russian companies another chance to develop in 2013 due to introduction of the first pha- a number of its domestic oil and gas fields. The Iranian Fo- se of the Kashagan. reign Minister hailed the expansion of ties between Tehran It is understandable, because the reco- and Moscow. verable oil reserves of Kashagan are estima- The Iranians are desperate to help their economy hit by western ted by experts at 11 billion barrels and total sanctions. Tehran is expected to hold fresh talks with world po- geological reserves of oil stock are 35 billion wers later this month. barrels. It is believed that it is the largest oil field in the world after the Prudhoe Bay in In his State of the Union address, US President Barack Obama, Alaska (discovered in 1968). who plans to visit the Middle East soon, told Tehran it’s time The artificial island at the Kashagan offshore oil field in Kazakhstan’s zone of the to end a standoff over the country’s nuclear programme. “The Recall that the date of production of the Caspian Sea. “first oil” in Kashagan was postponed seve- leaders of Iran must recognise that now is the time for a diplo- ral times due to difficult geological condi- ConocoPhillips in the Kashagan project un- BV (16.81%) and Total EP Kazakhstan matic solution, because a coalition stands united in demanding tions. However, the shareholders of the in- der the legislation. (16.81%). If the situation with Kashagan that they meet their obligations,” Obama said. ternational consortium of NCOC (North “Kazakhstan has not waived its pre- will be clarified only by the summer, when Fadel Gheit, a senior energy analyst at Oppenheimer in New Caspian Operating Company), which is emptive right of redemption, as provided Kazakhstan announces its final decision, York, told New Europe on 14 February “the Iranians should currently engaged in development of the by the legislation of the country,” said the “N” project is already clear. better change their attitude because the world is not going to al- field, after a long phase of negotiations, final- report of the national company. On 25 January, KazMunayGas ac- low them to go ahead with the nuclear -- already have the crazy ly have decided, that the commencement of As emphasized in KazMunayGas, now quired a stake of ConocoPhillips in the pro- child in North Korea so we don’t want another crazy man in the commercial oil production at the Kashagan the question is being considered by the In- ject “N” at the rate of 24.5%. Following the Middle East. The Middle East has enough problems on its own field is expected in June this year. terdepartmental Commission on develop- transaction, KMG has acquired 75.5% of Phase I of the project involves produc- ment of oil and gas and energy industries. mineral rights in the project “N” and 75.5% exploding from every part. The last thing we want a confron- tion volume of about 370,000 barrels of oil The same comments were given to the me- interest in N Operating Company LLC. tation between the Iranians and the Israelis or the Americans.” per day. However, the joy of the expected dia by the Minister of Oil and Gas of Kazak- Now, in this project there are two compa- On 12 February, North Korea defied worldwide warnings by “first oil”, which should be very close, was hstan Sauat Mynbayev. nies: KazMunayGas with 75.5% and the re- detonating what it called a miniaturised atomic bomb in its slightly overshadowed by the news that Meanwhile, an informed source of maining 24.5% is owned by Arab Company third nuclear test. one of the shareholders of the consortium, oil and gas society told New Europe, that Mubadala. “I think the Iranians are trying to find a way out of the hole they American ConocoPhillips, decided to with- Kazakhstan decides to repurchase Conoco- Commenting on the deal on “N” pro- dug themselves into and they try to save face at home, basically draw from the project. Phillips shares in Kashagan not earlier than ject, Mynbayev said that KazMunayGas because the economic sanctions are hurting them pretty badly In the autumn last year, in October, the June. “It is premature to say that Kazakhstan acquired a share of American ConocoPhil- and they know at the end of the day people are hurting and they US company declared on its website that it has waived its right to repurchase the shares. lips at $32.5 million. “This transaction is a are not going to support the regime. A confrontation with the officially had notified the authorities of Kaz- The Government of the Republic may deci- successful and commercially attractive for West is going to make the situation even worse,” Gheit said. “I akhstan and the partners of its intention to de before June 2013,” said the source. In this KMG,” commented KazMunayGas on the just hope it comes to a peaceful ending in everybody’s interest. sell its stake (8.4%) of the project to Indian case, there is another question: If Kazakh- deal. With that, the KMG stressed that “the ONGC Videsh Limited. The deal amount stan decides to exercise his right, then what value of the transaction was a much smaller It’s a shame the Iranians did not really behave in such way to im- is $5 billion. A little later, at the end of Ja- funds it will use to buy out ConocoPhillips, than the historical costs incurred by Cono- prove their economy and improve their standing in the whole nuary this year, Kazakh national company if the transaction price is $5 billion? coPhillips in the project and the estimated world,” the Oppenheimer energy analyst said. KazMunayGas reported that it had made At a press conference in Astana, Na- market value of the asset.” Tehran also said the priority is with Russia should Iran decide a deal with ConocoPhillips to purchase its tional Welfare Fund Samruk-Kazyna Ma- However, the Kazakh company is si- to construct a new nuclear power plant. interest in another project in Kazakhstan naging Director Malik Salimgereev said lent on how much less it cost, although it Iran is one of the world’s biggest oil and gas exporters and its - project “H” on the Caspian shelf. Thus, KazMunayGas is currently considering is known that exploration of a well costs economy is heavily dependent on energy revenues. In No- official confirmation of withdrawal of Ame- purchase of the shares. He noted that Kaz- at least $180 million. In “N” project such vember 2009, Russian gas monopoly Gazprom and Natio- rican ConocoPhillips from the two projects MunayGas can attract foreign loans to works were carried out. nal Iranian Oil Company (NIOC) signed a memorandum of in Kazakhstan has been announced. purchase the shares of ConocoPhillips in Meanwhile, according to the audit of understanding to co-operate on the development of the Azar The reasons for leaving by Conoco- the project of Kashagan in case of a positive the company’s reserves by Gaffney, Cline & and Changuleh oil fields. However in August 2011, Iran de- Phillips were reported earlier. The global decision on the purchase. Some experts Associates the contingent resources in the cided to go back on the deal, operating the fields using local financial crisis has not passed in vain for have expressed a wish that Kazakhstan area “N” make about 244 million tonnes, this company, which is why it had to give up could easily raise funds for the deal of $5 conventional oil reserves are 31.5 million consortiums. Russian oil major LUKoil suffered a $63-million their projects around the world, not only in billion from the National Fund, which to tonnes and contingent gas reserves are loss when it was forced to withdraw from a project in the Aran Kazakhstan. However, there appeared lots date has already accumulated more than about 19 billion cubic metres of gas. And oilfield. of questions on the two Kazakh projects. $70 billion. Kashagan in the North-Caspian according to KazMunayGas, the expected Gheit said that between Russia and China, Iran does not have The first question is: who will get the Co- is developed by the consortium of North start of production on one of the block a lot of friends around the world so the Iranians will probably nocoPhillips stake in Kashagan project? Caspian Operating Company (NCOC), structures of “N” in the Kazakhstan part of honour the new deals. Nevertheless, Russia will obviously pro- KazMunayGas, which is a shareholder whose shareholders are Agip Caspian the Caspian shelf is planned for 2018-2019. bably seek a lot of guarantees, he said. “Well, it goes without in the consortium of NCOC and at the Sea BV (16.81%), KMG Kashagan BV So, in conclusion, ConocoPhillips suffered saying: ‘Fool me once, shame on you. Fool me twice, shame same time represents the interests of the (16.81%), ConocoPhillips North Caspian serious costs after withdrawal from the pro- on me,’” Gheit said. “They’re not going to go through the same Kazakhstan’s government in the project, Ltd. (8.4%), ExxonMobil Kazakhstan Inc. ject “N”. Perhaps, with the sale of its stake task and get fooled again.” told reporters Kazakhstan has not waived (16.81%), Inpex North Caspian Sea Ltd. in Kashagan, the US company can recoup [email protected] its pre-emptive right to purchase shares of (7.56%), Shell Kazakhstan Development their costs generally incurred in Kazakhstan. follow on twitter @energyinsider ADVERTISEMENT

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Is this the best that Brussels can do? One campaign respond to EU budget By Eloise Todd pe who spoke out against cuts to development aid. In the end, the part of the main budget Eloise Todd, Brussels used for ‘external spending’ (known as Hea- Director, The ONE ding 4) saw a slight increase, and the European Campaign Development Fund, a programme that mainly After the budget cuts the president and the singer are further apart. | EPA/OLIVIER HOSLET targets the poorest countries in sub-Saharan Africa , was effectively frozen. Reason then the February summit. With strong leadership, sitive results of EU aid have been highlighted to breathe a sigh of relief; but not to celebrate the Parliament could change the game for the in many independent reports including the fter 24 hours of bartering, bargaining given that, in 2020, in real terms, the EU could world’s poorest. UK government’s Multilateral Aid Review and and horse-trading at the end of last be spending the same on aid as it did last year. Secondly, the debate on how Heading 4 of studies by the Center for Global Development week, EU leaders finally reached a Is this the best Europe can do? Have we re- the budget should actually be spent is about to and Brookings Institution, and the OECD. dealA on a new long term budget. Short-term ally reached the limit of our ambition to be at step up a gear. Maximising the impact of the It’s also in Europe’s economic interest. At a national interests came to the fore, while the the forefront of efforts to lift millions from po- EU’s aid by focusing on the poorest countries, time, when countries like Turkey and South Ko- EU’s role in the wider world took a back seat. verty? There are two important reasons why, the smartest interventions and the best ma- rea are expanding development aid spending, Particularly in the area of spending on develop- if we keep on fighting, there is still hope for a naged spending instruments will be critical. when China is investing heavily in Africa, and ment and humanitarian aid, that was a missed better outcome for the world’s poorest. The Development Cooperation Instrument when many of the fastest growing economies opportunity. It’s now up to the European Par- Firstly, the European Parliament, which (DCI), which focuses on measures for era- on the planet are in Africa – flatlining smart in- liament to seal a deal, hopefully one that gets has the power to reject the budget, has been dicating poverty and the achievement of the vestments in aid just doesn’t make sense. Europe closer to fulfilling its commitments to a strong supporter of development spending. Millennium Development Goals, is crucial, as A recent report by the Overseas Develop- the world’s poorest. The official position of the Parliament said is humanitarian aid. ment Institute, the National Institute of Econo- Ahead of the summit, leaders spoke of fin- a €30bn EDF and a €70bn Heading 4 (the Economic drivers such as agriculture in- mic and Social Research and ONE underlines ding billions more in cuts. With the big beasts figures proposed by the European Commis- vestments must be prioritized. And, in a year this point. The researchers found that develop- of the EU budget – cohesion spending and ag- sion) are the ‘bare minimum’ needed. The when the Global Fund for HIV/AIDS, TB and ment spending under the Development Coo- ricultural funds – effectively ring-fenced, and figures agreed by EU leaders at the summit malaria will be looking to replenish its funding peration Instrument and the European Deve- hints from leaders that many other parts of the were 11 percent lower for the EDF and 16 for the next few years, the EU should set out lopment Fund would not only boost GDP in budget would be protected, development spen- percent lower for Heading 4, a huge cut in an ambitious pledge to increase the EU’s cur- sub-Saharan Africa by 2.5% by 2020, it would ding looked the most vulnerable to cuts. There ambition. rent contribution, as well as increasing fund also boost the EU economy by around €11.5 were serious concerns that smart EU aid would MEPs can now apply political pressure to for vaccines. billion. And that’s after the €51 billion propo- be used as a slush fund with real terms cuts used Member States to get Europe back on track. The results could change millions of lives. sed by the European Commission for those two to finance the favoured funding lines of those Every effort must be made to close the fun- During the five years between 2004 and 2009, aid instruments is recouped by taxpayers. member states holding back a deal. ding gap vis-à-vis the European Commission’s EU helped enroll more than 9 million children Thousands of Europeans, and millions Thankfully, that unmitigated disaster was proposal. The Parliament’s President, Martin in primary education, vaccinate 5.5 million around the world, expect more from Europe avoided, suggesting that some leaders had li- Schulz is a strong supporter of development aid children against measles, and connect more and will be looking to the European Parliament stened to the thousands of people across Euro- and spoke out on the issue in November and at than 31 million people to clean water. The po- to do all in its power to deliver it.

Artists fight female genital mutilation By Stanislava Gaydazhieva felong consequences of female genital muti- Amnesty International Ireland has united lation on the European continent. with a number of organisations in European For that reason, Amnesty International Union member states and will bring its END Ireland will hold at the European Parliament FGM campaign to Brussels on 27 February. on 27 February between 10 and 13h a semi- Annually, three million girls are at risk of nar covering the topic ‘Towards European ac- female genital mutilation (FGM), while in tion to end female genital mutilation’. Isabelle Europe their number is estimated to reach Durant, Vice President of the European Par- 180,000. liament and the UNHCR Bureau for Europe FGM is widely considered as a human are only some of the confirmed participants. rights violation of worldwide concern. It has The seminar will aim at identifying ways been defined by the World Health Organisa- in which the EU can make a difference in the tion (WHO) as „all procedures that involve lives of women and girls. Over 42,446 signa- partial or total removal of the external female tures were raised in 2010 across Europe to genitalia, or other injury to the female genital demand European leaders to end female ge- organs for non-medical reasons.“ nital mutilation and protect young girls and This procedure was found to have no women at risk. health benefits, but to cause only harm to As part of their Art for Action tour, the or- women and girls. Female genital mutilation ganisation will also hold an art event, a invite- is practiced mainly in the Horn of eastern Af- only soirée, at the Bozar in Brussels which Somali women’s groups launch the first ever national campaign against Female Genital Mutila- rica and the Arabian Peninsula. Nevertheless, will involve four artists and designers and will tion (FGM) at a rally in Mogadishu Stadium on International Women’s Day, Monday, 08 March Europe is not immune either- an estimated celebrate the positive vision of women and 2004. Somalia has the highest rate of FGM in Africa -- 98 percent of Somali women having 500,000 women and girls live with the li- girls free from FGM. undergone the painful and potentially dangerous procedure. |EPA/STRINGER NEWEUROPE 16 www.neurope.eu ARTS & CULTURE 17 - 23 February, 2013

Your paintings, our shared culture UK digitalises its artwork, putting it on permanent display By Andy Carling

ritain’s 212,000 oil paintings have just been digitally recorded and placed on- line as part of a project, Your Paintings, Brun by the BBC and the Public Catalogue Foundation. The intention is not just to archive art in public and private hands, but also to involve the public in the project and encourage people to get interested in art and visit museums and galleries in the real world. The paintings are on the BBC website and people are being asked to help catalogue the archive by adding ‘tags’ that describe each art- work. The internet is also providing new ways of organizing and displaying exhibitions. In one section an increasing number of public figures, presenters and others each have short videos, or guided tours, showcasing paintings they have discovered in the collection. Andrew Ellis, PCF Director PCF and BBC staff at the Your Paintings launch The project also marks a watershed, from when art was the cause of the educated elite, New Europe spoke about the project with to when the public are invited to just to be pas- Andrew Ellis, Director of the PCF. He quit the You’ve been dealing with all sorts, from You’re also bringing art into the home sive observers but become art lovers and parti- world of finance to chase paintings instead of official bodies, to galleries, collectors and You can look, learn and experience in the cipate in appreciating culture. profit margins. artists, how have they felt about being digi- comfort of your own home at whatever pace ADVERTISEMENT talized? you want. Well, we started as a book project, but we approached people to reproduce images in But you have to see paintings in front of county by county books, but the contracts an- you to really experience them ticipated online use, so five years ago, we tur- Nothing beats seeing the paintings for real. ned to online and focused on that. We’ve had We’re so keen for people to explore the site and a lot of support from galleries and collections then go and visit the paintings, we try to provi- for this and the participation rate is basically de all the information people need to see them 100%. in person. But there are an awful lot of pain- We also met and talked with people to tings on the website that nobody really knows explain, but in the end there was huge enthu- exist. We’ve photographed these paintings, siasm. For the majority of these collections, many haven’t been photographed before. they didn’t have good quality photos of their collection, neither were many of the paintings You can’t put national boundries on on their own websites. As part of the arran- paintings so easily, because artists travel, gement, we give them high quality photos of many are not location specific. their collection. Exactly! We’ve also got a lot of European There were only around a dozen refusals, and American painters in the collection as mainly from artists on ideological grounds. well. We’ve had 40% of website traffic coming Now it’s all up there, there’s a real sense of a from overseas, that’s really pleasing. Paintings partnership between us, the BBC and the coll- in Inverness are being seen by people in Bogo- ections and people are proud to be included. ta and San Francisco. One of the wonderful things is that each painting has its own presence, whether it’s And bringing in the public? from a small collection or from somewhere We’re encouraging people to tag the pain- like the Tate, from a major or unknown artist. tings and we’ve had help creating a tagger, It’s up to the users, the audience to decide what which allows people to tell us what they see they like. We refer to it as being ruthlessly de- in the painting. It’s fantastic, really pleasura- mocratic! ble. The paintings are delivered randomly so you’re seeing things that you wouldn’t expect. The size of the archive is overwhelming Do have a go! It’s wonderfully addictive and a and you’ve been innovative with guided good way of looking at paintings and contribu- tours and so on. ting to the project because it will make it easier When you have so many paintings, brin- for people in future to find paintings. ging them to the surface is a real challenge. This project is not just about the art, it’s about hundreds of years of British and European cul- Your Paintings: ture and history at the national and local level. www.bbc.co.uk/arts/yourpaintings That’s why we’re trying very hard to say it’s also The Public Catalogue Foundation: about subject matter. www.thepcf.org.uk NEWEUROPE www.neurope.eu 17 17 - 23 February, 2013 fashion & style

NEW YORK FASHION WEEK: FALL/WINTER 2013-2014

s New York Fashion Week comes to sober outfits, came the much awaited, splendid an end and the fashion crowd heads evening gowns. ‘Grand soir’ red carpet dresses NYto London, keep inFlash mind a few of our in flamboyant yellow, orange, mother of pearl favouriteA NY collections for next winter. pale pink and a unique deep cherry violet red After learning thatOscar de la Renta had in velvet and silk, especially the one worn invited former Dior Couturier, John Galliano, by Coco Rocha wore at the end of the show, to work in his studio, last month, all industry conveyed a sense of nostalgia for the long professionals and fans were eager to see what gone days of Hollywood’s Golden Age and the the collaboration would bring. glamorous Divas that went with it. Indeed, there was definitely a fresh, For his new Brood collection, young modern twist to de la Renta’s designs this designer Serkan Sarier kept the romantic season. Cuts were almost minimal, in beautiful floral style he had used for his previous bright colours, like turquoise, red and neon summer collection, only this time, he added a green, although the overall looks were more very distinct vintage, worn out element. Sarier sober than in previous seasons. A great part reworked an 18th century floral motif and of the collection was devoted to daytime wear combined it with strict grey jackets and skirts and black suits, as leather pants and grey all and black bows for an overall dandy effect. co-existed along with more exuberant designs. Sarier’s refined feminine dresses and cute The evening gowns took a curious mermaid costume detailing left us with high hopes for twist and were delicately embroidered with the next seasons to come. baroque motifs, while the long princess gowns Prabal Gurung gave his collection a that de la Renta is best known for were kept for military twist with khaki pantsuits, dresses and the finale. Famous runway models Magdalena jackets, along with all-black leather ensembles Frackowiak and Karlie Kloss closed the show and buckles. Gurung remained faithful to with two beautiful fuschia and violet ball his beautiful silk-printed dresses, which also OSCAR DE LA RENTA gowns, which had hints of historical references, tended towards the Amazon style. © Slaven Vlasic/Getty Images/AFP that have always been dear to Galliano. Johnson Hartig’s new collection for the Zac Posen remained faithful to his brand, Libertine, was mainly inspired by with vibrant red, bright pink, yellow and orange signature retro tailoring and love of delicate India’s traditional crafts and motifs. Hence, florals. Hoschek combined folklore with retro fabrics. Although there were many more most pieces were golden, bronze and mocha, 40’s cuts and accessories, little preppy white daytime ensembles than usual, even the along with Libertine’s typical lively graffiti and collars, and occasional punk touches like thick ‘simple’ jackets and velvet pant looks had a illustration-inspired pixilated prints. black belts, high-legged military boots and Couture-like appeal. Young Austrian designer Lena Hoschek ripped tights, for a humorous lady gone rogue However, Posen couldn’t risk disappointing presented a pretty collection inspired by effect. Louise Kissa ZAC POSEN his long list of fans, and so after the first share of Russian folklore, mainly black printed dresses [email protected] © Mike Coppola/Getty Images/AFP

BROOD PRABAL GURUNG LIBERTINE LENA HOSCHEK © Mark Von Holden/Getty Images/AFP © Don Emmert/AFP © Fernanda Calfat/Getty Images/AFP © Johannes Eisele/AFP NEWEUROPE 18 www.neurope.eu BRUSSELS AGENDA 17 - 23 February, 2013

oneer of the alternative scene, thematic exhibitions througho- 6Watersth Offscreen Film Tone hits Brussels Roger Corman and he is a deli- ut the month of March featuring Festival 6 – 24 March, cious and delightful raconteur. Larraz’ work: one dedicated to Cinema Nova - Cinema- There will also be a conferen- his photography, the other to his tek - Cinema Rits ce on camp and trash cinema, at illustrations. – Bozar, Brussels Cinema Rits, Av Dansaert on 8 It’s also a fitting time to cele- Just to let you know that this March (Free admission, book brate the 100th anniversary of March is going to be far stran- a place by emailing sam@offs- Nikkatsu. Offscreen has put to- ger and a lot more fun than you creen.be gether a selection of the most may imagine. Other treats include Jayne remarkable films from their ri- The annual gathering for fans Mansfield’s cashemere busting ch catalogue. Nikkatsu coun- of bizarre and cult cinema, the performance inh The Girl Can’t ted amongst the biggest Japa- 6th Offscreen Film Festival, re- Help it and a rare showing of the nese studios in the 1960s and turns to “celebrate independent classic film by Herschel Gordon was a cradle for the Japane- films, classic B-movies and the Lewis, the King of Gore, Blood se New Wave, home to experi- strangest cinema from the four Feast. mental visionaries like Seijun corners of the Earth.” At 84 years old, José Ramón Suzuki. World-renowned spe- They’re not kidding. Neither Larraz continues to be a unique cialist Jasper Sharp, co-founder are they lacking ambition, for figure of 70s-era Spanish cine- of the quintessential Japanese ci- this year has a very special gu- ma. He’ll visit Offscreen to pre- nema website Midnight Eye, to est, the Trash Prince of Bel Air, sent his strange films, including give a lecture. John Waters. the rarely-screened Symptoms There’s also a documentary Called the Pope of Trash, the and the classic B-movie Vam- on Iceland’s penis museum US director will be in Brussels pyres. To mark the occasion, gal- There’s more, a lot more. to present his one-man stand-up leries Hors Série and La Cryp- Check their website for details: show This Filthy World and gi- te Tonique are organizing two www.offscreen.be ve a master class. But that’s not all: an entire section of the festi- val is dedicated to the Baron of Bad Taste. The organizers ha- ve arranged a retrospective pro- the most notorious films ever ged either X or banned. gram covering every production made.” When asked about entering Hemgie’sResto Restaurant Bites from Pink Flamingos to A Dirty That was just the start, but the mainstream, Waters respon- Rue des Dominicains 12, Shame, a special screening of Waters isn’t just after shock. He’s ded, I’d love to sell out comple- Brussels Polyester in Odorama and scre- interested in people who are di- tely. It’s just that nobody has be- Tel 02 502 0777 enings of John Waters’ own per- fferent, from the legendary drag en willing to buy.” [email protected] sonal selection of beloved top 5 queen, Divine, to a young Ri- Polyester is the first scratch Opening Hours camp and trash films. kki Lake who starred in 1988’s and sniff movie, where filmgo- Tuesday to Saturday Pink Flamingos, released in Hairspray, where a ‘pleasantly ers are asked to smell a numbe- 12-2.30 & 7- 11pm 1972 is, well, as Wikipedia de- plump’ teenager takes over a red card at various moments in Closed on Sunday & Monday scribes it, “When the film was dance at a local TV station and the movie. If you like a damn good burger, they initially released, it caused a hu- makes a stand against racism. Despite being almost willful- don‘t come any better than at Hemgies. ge degree of controversy due This film brought Waters close ly controversial, Waters is a mu- Opened almost one year ago by a to the wide range of perverse to the mainstream, and the fist ch loved figure, having given couple of Brussels-born pals, Mathias acts performed in explicit de- of hisd films to receive a PG ra- many their first steps into film Vosswinkel and Gregory Van Loock it has tail. It has since become one of ting, previously he’d only mana- making, rather like an earlier pi- proved very popular despite fierce compe- tition from the glut of restaurants around the Grand Place. It is easy to see why. The €15 lunch menu, comprising starter, burger and a drink, has gone LAST MINUTE TICKETS down a treat while the fixed menu features a whole range of signature burgers, each cooked FOR SHOWS & CONCERTS AT -50% using best quality beef. Some, like the “Smack That Burger” are wonderfully named while there‘s also a great choice

An initiative of the Foundation for the Arts, Brussels of excellent salads plus grills. The sauces, gluton-free bread, mayonnaise, ice cream are all Tickets for half price for performances and Ticket sale: homemade and the portions are more than generous (so no need for starters!). Mathias, who concerts on the same day. Arsène 50 offers you - At BIP, 2-4 rue Royale (Place Royale) 1000 Bruxelles Tuesday to Saturday, from 12.30 pm to 5.30 pm every day a wide range of performances, advises you - Online on www.arsene50.be oversees the kitchen, and Gregg met while working in Thailand, returned to Belgium and took in your choices and takes care of your reservation. Tuesday to Saturday, from 2 pm to 5.30 pm the plunge on opening a new business at the height of the economic crisis. They both deserve

Avec le soutien de www.arsene50.be LA COMMISSION COMMUNAUTAIRE all the success their new venture is bringing. Even visiting Americans have praised their bur- FRANÇAISE gers. Now that is praise but it‘s deserved.

FPA076-NewEurope 84x255.indd 1 8/09/11 12:35 NEWEUROPE www.neurope.eu 19 17 - 23 February, 2013 Cinema

James Bond: the empire strikes back By Cillian Donnelly

he James Bond movie franchise cele- brated its fiftieth anniversary towards the end of last year, an event to be cele- Tbrated at this year’s Academy Awards ceremo- ny in Los Angeles on 24 February. The series, featuring the suave British super-spy, played over the years by seven actors of varying abi- lity, has indeed proved to be enduringly popu- lar, with the latest, Skyfall, breaking box office records and garnering largely positive reviews and several awards nominations to boot. The films, stockpiled with boy’s-own adventure, glamorous locations and casual mayhem, continue to appeal, and remain reassuringly formulaic. They present a world of absolutes, removed from the murky realities of cold war espionage or counter-terrorism, and, just as the refusal of Zero Dark Thirty (2012) to take a stand on the US torture of Iraqi terrorist su- spects is helping to pave the way for its accep- tability in the audience’s minds, the Bond films are an advert for the moral incorruptibility of the state. The first James Bond movie, Dr No (1962), appeared at the start of a turbulent, British actor Daniel Craig poses during a photocall for the Italian premiere of the James Bond movie Quantum of Solace in Rome, 5 November troubled decade, when old empires were 2008. |EPA/ETTORE FERRARI crumbling, and values recast. A decade inde- libly held in the popular imagination as the one forgotten by Bond. But if those attitudes seem judicial killings of non-nationals on third ter- dersea hide-outs, peopled by a private army of that, depending on one’s point of view, chan- dated, they persist in the ethos of the films; the ritories. boiler-suit wearing militias. ged the world with its liberation excess, or sent notion of Bond as an outdated cold war miso- The state, Bond’s relationship with it, and By now, the films, getting bigger and more all moral values on a calamitous freefall from gynist, as put in Goldeneye (1995), the series’ its role in the Bond stories, is central to the bloated, had created their own internal logic, which we have never recovered: the sixties. post-Soviet remodel, was partly an attempt political outlook of the movies. In left-wing their own world, with only occasional nods to The sixties, as they tend to be understood at distance, but attitudes prevail. In Skyfall espionage, for example The Spy Who Came outside culture; for example, the ‘Bond does today, essentially lasted from 1963-1973, and (2012), the female agent, Moneypenny, finds in From the Cold (1965), The Ipcress File blaxpoiltation’ of Live And let Die (1973), the were propelled by such events as the Profumo she isn’t strong enough for fieldwork, and is (1965) and the TV series Callan (1967-72, kung fu affectations of The Man With The affair in the UK, which exposed the sexual instead redeployed to being Bond’s secretary; filmed 1974), the hero was as likely to be be- Golden Gun (1974) or the Star Wars-isms of hypocrisy of aging establishment figureheads, apparently a more fitting role. trayed by his superiors as killed by an enemy Moonraker (1979). Parody, both within and the Kennedy assassination, the civil rights and The sixties did not began as an era of libe- agent. Whereas the protagonists of those films without (Matt Helm, Get Smart (1965-70), sexual liberation movements, Biafra, Vietnam, ration, sexual or otherwise. With the election worked out of seedy dosshouses and grimy the Man From UNCLE (1964-68)), aboun- the rise of armed global terrorist groups and of Kennedy, the Democrat who talked tough offices furnished by morally dubious organisa- ded. The joke was wheezing along. By the other resistance movements, student protests on the space and arms races, and who faced tions, Bond’s world is all oak-panelled splend- beginning of the 1980s, the whole enterprise and Watergate, and it was against this backdrop down Khrushchev over Cuba, the political our and fine wines, sports cars and Savile Row was in need of a respirator (there was even an that the first run of Bond films appeared. centre was shifted to the right. Nowhere in suits. The integrity of the (state) organisation unofficial addition to the franchise, Never Say The British espionage fraternity had taken popular culture was this better typified than was never in doubt, nor was Bond’s loyalty to Never Again (1983), in which the aging Bond, quite a few blows by the time Dr No arrived the James Bond films. Bond, the British secret it. In return for unquestioning loyalty to state played by an aging Sean Connery, has to pass a on screen, globally tarnished in the post-war service’s top agent, backed-up by a seemingly correctness, Bond was, in turn, given a licence medical in order to be deemed fit for service). years by a series of defection and sex scan- bottomless expense account and an array of to kill; he was a state-sponsored vigilante. By It is perhaps ironic then, that the 80s, the dals that prompted Ian Fleming to create the gadgets and weaponry, is a state-sponsored kil- way of contrast, the recent Jason Bourne trilo- decade that began the conservative fightback Bond character, for the novel Casino Royale in ler, a vigilante given a government home. gy (2002-7, the 2012 ‘reboot’ can be discoun- against the legacy of the liberal sixties, should 1952; James Bond was nothing if not loyal to In part, then, Bond is a revenge figure, in ted), had a similarly resourceful superspy at have been made for a man like James Bond. But, Queen and country, his sexuality never in dou- that he carries out government retribution (in its centre, but whereas Bond persecuted his aging and flabby, a younger, harder generation bt. When John F Kennedy took office as US the world of Bond, it is always acting against master’s enemies, Bourne was himself tor- of movie heroes had emerged; with greater fire- president in 1960, he seemed a stark contrast aggression or some other wrong). Hollywood mented by his superiors, experimented upon power and even more tasteless one-liners. to other western leaders, not least aging con- has always had an uneasy relationship with re- and targeted. Bond, with all the might of state The very obvious legacy of Bond is today’s servative blunderbuss, British Prime Minister venge. Conservative films, which valued the power behind him, is a bully, whereas Bourne, modern action hero, armed with a small arse- Harold McMillan, who very quickly came to rule of law, such as Underworld USA (1961) alone and on the run, is a victim. nal and a quip to annul any death. But more, represent something very tired indeed. tended to punish their heroes go-it-alone ac- Bond loves killing. So much so, he can’t re- the films embody and endorse the concept Indeed, as the sixties was partly a rebellion tions, while right-wing films, such as The Big sist doing so without a quip, a wry one-liner. of vigilante justice; of dubious methods em- of sons against fathers, there was something of Heat (1953), which saw the police force stifled Indeed, as the franchise grew more successful, ployed by the state, and never questioned. the decade’s attitudes captured in the tetchy by red tape and inefficiency, indulged their if more ludicrous, the jokes increased. As the Rooted in the early sixties rightward shift, and relationship between Bond and the patriarchal vigilante protagonists. The Bond films veer political and social world fractured ever more maintained for the past half century of trends, secret service head, M. In another way too; closer to that, but it is important to note that during the sixties and early seventies, Bond the films depoliticise international relations, Bond certainly enjoyed the new kind of sexual James Bond is no vigilante; he never goes af- worked hard to preserve its own global set of and present a morally comfortable portrait of freedom then emerging. He also, embodied a ter the villains for personal reasons, but is all circumstances, one far removed from Vietnam, right and wrong, in which the state is the un- kind of macho, pre-liberation sexuality, typi- the time licenced by the state, and it is the state civil rights, political assassinations or creative disputed arbiter of correct justice. Whether or fied by the series’ ongoing sexism played out which, presumably, endorses and excuses his terrorism, and instead concerned itself with not that detracts from their entertainment va- in the parade of decorous women, bedded and tactics, which, for starters, includes the extra- mad villains living out in volcanoes and un- lue is up to individual viewers. NEWEUROPE 20 www.neurope.eu TECHNOLOGY 17 - 23 February, 2013 Apple loses iPhone European Cybercrime naming rights in Brazil Centre dismantles its razilian regulators have ruled on 13 Fe- bruary that the iPhone name in Brazil belongs to a local company called Gra- Bdiente, not to Apple. first criminal network The agency analysing patents in the South American country explained it denied Apple‘s trademark application because IGB Eletrônica SA, better known as Gradiente, already owned rights to the name. However, the tech giant has already lodged an appeal against the decision. Gradiente registered the name in 2000 and the patent was approved in 2008, said the Insti- tute of Industrial Property (INPI). According to the institute, regulators‘ decision is only ap- ne name until December 2012. According to plied to handsets and Apple can use the iPho- the tech company, the Brazilian firm didn‘t use ne name for other products, such as clothing, the name within a five year limit. software and publications. Gradiente was the first company to make Marcelo Chimento, INPI‘s spokesman, cellphones in Brazil, and launched the first na- highlighted that the conclusion doesn‘t forbid tional smartphone in 2004. Gradiente‘s ipho- Apple from using the name in Brazil. It only ne Neo One is only available on the company‘s makes clear that the naming rights belong to website or at one store in a shopping center in the Brazilian company. São Paulo. “As Apple started its applications for iPho- However, their phones are entirely diffe- ne in 2006, they were denied because Gradi- rent from the Apple device. For instance, its ente had a very similar register for cell phones phones run on the Android operating system, applied some years before the American com- developed by Apple rival Google, and it sells it pany”, he said. for $304, a fraction of iPhone‘s price. Apple has defended itself by saying that it Chimento explained that now, “Gradiente should have been given full rights since Gradi- has to prove that it used the brand” in the allo- ente had not released a product using the iPho- tted time, within 60 days. NR EC3 collaborates with Spanish Police in ‘Operation Random’ By Nerea Rial The leader of the operation, a 27-year-old he European Cybercrime Centre Russian, according to Spanish Police and Eu- (EC3) in collaboration with Spanish ropol, was arrested in Dubai in December and Police, took down the largest and most is currently awaiting extradition to Spain. Tcomplex cybercrime network based in Russia, Spanish Police arrested another 10 mem- which infected millions of computers with bers in Costa del Sol: six Russians, two Ukra- fake police ransomwares. inians and two Georgians. Six of these people Eleven people were arrested under the are still detained and the other four are free Operation Ransom, which it is estimated that with charges. brought €1 million per year in profits from Besides, Spanish Police searched six pre- users in 33 different countries, 22 of them Eu- mises in Málaga, where they found the equip- ropeans. ment used for their online criminal activities. “Police ransomware is a type of malware More than 200 credit cards, which were that blocks the computer, accusing the victims used to withdraw €26 000 in cash prior to the of having visited illegal websites containing arrests, were also found. child abuse material or file sharing, and re- The criminals laundered the money em- quests the payment of fine to unblock it”, says ploying both virtual systems for money laun- Europol. dering and other traditional systems using When users click in order to accept the various online gaming portals, electronic pay- €100 fine, criminals have the possibility of ste- ment gateways or virtual coins, according to al his/her data from the computer. The virus Europol. was detected in May 2011 and more than 1200 The European Cybercrime Centre (EC3), people have been affected, but the number which was founded by the European Commis- could be bigger. sion and Europol, launched its operations last “The fact that this virus has been online month in order to stop the theft of users‘ data http://coworking.betagroup.be for so long is because in order to circumvent and its commercialisation. different antivirus, they created mutations to This is the first big success since its launch 02.737.67.69 avoid location” said Chief Inspector of Digital and, according to Troels Oerting, Head of Security, Jose Rodriguez. EC3, more cyber attacks will take place “so Each mutation took the identity of each first of all we will harden the infrastructure, se- country‘s national police, „to generate confusi- condly we will create more awareness, but then Pétillon on among people that had never committed a we will also need to make it unattractive to be a Located in Brussels - crime,“ Rodriguez explained. criminal and right now it’s a free-ride.” NEWEUROPE www.neurope.eu 21 17 - 23 February, 2013 TECHNOLOGY Facebook app allows money transfers

UK start-up company has developed Facebook‘s latest app, which makes possible for users to send remittances directlyA to friends almost anywhere in the world. Azimo, which is based in London, was launched on 12 February and enables users to transfer money to Facebook friends in 125 countries, ranging from Mexico to the Philip- pines. First of all, the sender has to invite recipi- ent to sign up to Azimo through a Facebook be able to make direct transfers between inter- message. Then, the second one has to fill out national bank accounts via Facebook, making his/her details, including where they want the cheaper the process of sending money abroad. money sent to: in one of the 150,000 payout The average commission with transfer ser- desks, a mobile phone ‘top up’, or a bank ac- vices is nearly 10%, rising to almost 20% for count. some countries. By comparison Azimo charges “People share pictures, status updates and a flat fee of £5 to transfer money up to £500 chat on Facebook – this allows you to send and 1% commission for larger sums up to ma- money just as easily. It becomes a digital wallet ximum £15 fee. within your Facebook profile”, stated Michael “It’s cheap because it’s online,” said Kent. Europe bets on ICT Kent, founder of Azimo. After surveying social “The main part is having low overheads and network‘s users, the start-up found that “nearly fewer people in the value chain.” three quarters regularly use Facebook – and of In order to reduce fraud, Azimo says that it those, over 60% were in touch with the persons analyses “key pieces of information about in- for ageing well they wanted to send money to.” dividual Facebook profiles to verify that they The social money transfer service claims are genuine”, such as length of time a Facebook the involvement of social surroundings in the that this is the first time that individuals will profile has existed or how active it is. NR By Nerea Rial system, such as friends or family. ADVERTISEMENT n 14 February, took place the final In order to replicate ICT systems for ag- conference of the TechnolAGE pro- eing well, first of all it‘s necessary to extend ject, which is commissioned by Eu- the benefits that these projects can generate, Oropean Commission‘s DG Connect and aims as well as offer clear business models and to show that ICT for ageing well is an area take into account patients‘ real problems, ex- worth concentrating funds on, and not an un- plained Silvia Mancin, representative of the sustainable and unprofitable model. TESAN case. According to statistics, by 2050 the TESAN works in telecare and remote mo- number of people over 80 years-old will dou- nitoring for older people in Veneto Region. It ble, as a consequence of decreasing fertility has more than 24,000 households connected rates and increased life expectancy. This situa- and offers services such as emergency re- tion might affect negatively Europe‘s economy sponse, which along with home care devices and society, therefore new health models are can collect clinical data from the patient and needed in order to ageing well and generate send it to the health centre. benefits. Louis Paquay, from Wit-Gele Kruis, The ageing of the population is a societal presented the Electronic Nursing Record, challenge, but at the same time an opportuni- a touch-screen device similar to a tablet, ty to create new ICT products and services, as which links patients‘ health information and well as more jobs. organisation‘s back-office via GPRS. Accor- The one-year project began in January ding to him, the internal an collective develop- 2012 and identified twenty sustainable mo- ment increased during the project, but there is dels for existing innovative ICT solutions for still a lot of work to do to offer a complete and ageing well. Five of them were selected and adequate service. presented during the TechnolAGE final con- Despite TechnolAGE project can de- ference to discuss the potential and conditions monstrate that ageing well is possible and for replication in other European regions. cheap, there are still several barriers that must One of the projects presented was Vie- be deleted, like the insufficient awareness of Dome, which was designed by the Dutch market opportunities and user needs, legal company Mextal and is focused in home care. and technological problems and, above all, With a toolbox for personalising home care the lack of attention that older persons receive and a TV, older persons can be in touch with in Europe. their doctors and other patients. The European Commission is already sup- According to Frans Stravers, Commercial porting these projects under the Seventh Fra- Director at Mextal, what makes a project suc- mework Programme, but the message should cessful is the daily use of the service, its incor- be sent to all stakeholders and governments, so poration in individual‘s life, to offer more ser- as to create value and stress the importance of vices (like shopping or chat with others) and the ICT for elderly, concluded Silvia Mancin. NEWEUROPE 22 www.neurope.eu EUROPEAN UNION 17 - 23 February, 2013

LITHUANIA| BILATERAL AFFAIRS GERMANY | carmaker LIthuania, Ukraine and their EU Affairs Probe into Porsche stock Lithuania fully supports the EU-Ukraine dialogue towards the signing of EU - Ukraine Association Agreement, said Li- thuanian Prime Minister Algirdas Butkevičius during his mee- manipulation widens ting with the visiting Ukrainian President Viktor Yanukovych German prosecutors said on 12 February on February 6, 2013. “The Ukrainian Government declares they have extended their probe into sus- its commitment to follow the path of the European integrati- pected stock price manipulation at sports on. However, Ukraine’s success in euro-integration depends car maker Porsche, The Local reported. primarily on Ukraine’s determination to undertake political, The investigation had now been wide- economic and legal reforms and to ensure democratic deve- ned to include “everyone who sat on the lopment. The EU has made it clear that Ukraine’s success and supervisory board of Porsche‘s holding progress towards political and economic integration, and thus company between March and October the Association Agreement, will depend on the extent of adhe- 2008, as well as a former employee,” a spo- rence to common democratic values, and respect for the ru- kesman for prosecutors said. le of law”, the Prime Minister was quoted as saying. The lea- That means that Ferdinand Piech, su- ders have also agreed to share experience in energy policy, and pervisory board chief of Europe‘s biggest commended the Ukrainian-Lithuaniancooperation in eco- carmaker Volkswagen, Porsche superviso- nomy and transport. “One of the most effective examples of ry board boss Wolfgang Porsche and works the long-term relations between Lithuania and Ukraine is co- council head Uwe Hück are now implica- operation in transport. To mark the tenth anniversary of the ted in the probe. railway project Viking, an international conference has been The accused are being investigated on scheduled for 28 February. It is important to continue our co- suspicion of “complicity to manipulate the operation in this area”, – said the Prime Minister. market,” the spokesman added. In December, prosecutors charged Porsche‘s former chief executive Wendelin At least some things can still be horse powered without complaints | AFP PHOTO / JOHN MACDOUGALL GERMANY | STEEL INDUSTRY Wiedeking and former finance chief Hol- ger Härter with manipulating Porsche‘s denying the plans, even though prepara- The two companies then made a fresh ThyssenKrupp to axe share price in connection with the – ulti- tions for the takeover were already under- attempt to tie the knot in 2009, with VW mately unsuccessful – attempt to take over way. It was not until several months later initially acquiring 49.9% in Porsche in the 2,000 European steel jobs Volkswagen. Wiedeking and Härter allege- that Porsche revealed in a surprise state- first stage of the complex takeover agree- German heavy industry giant ThyssenKrupp unveiled plans on dly made false statements in public with re- ment its takeover plans, sending the share ment, the completion of which ran into a 8 February to axe more than seven percent of the workforce at gard to Porsche’s intentions in 2008. Both price rocketing. number of legal and tax hurdles. its Steel Europe division to make the business more competiti- Wiedeking and Härter deny the charges. Porsche’s bid to acquire the much-big- Last year, a German court rejected ve, The Local reported. ThyssenKrupp said in a statement it wo- The prosecutors argued that Porsche ger VW eventually unravelled, leaving the two compensation claims brought against uld axe “more than 2,000 jobs” out a total workforce of 27,600 at issued at least five public statements bet- luxury sports carmaker with more than € Porsche by investors who felt duped by the its Steel Europe division in a € 500-million ($ 671-million) cost- ween March and October 2008 publicly 10 billion in debt. company over the tie-up. cutting drive. “Overall, the workforce of Steel Europe will be cut by more than 2,000 from around 27,600 at present as part of an GERMANY | packaging optimisation programme,” the statement said. “A further 1,800 jobs could be cut via possible divestments,” it added. The unit’s administrative headquarters in Duisburg, western Germany, wo- MWV expands pharma manufacturing centre of excellence uld bear the brunt of the cuts and management hoped would not MeadWestvaco Corporation (MWV), a based upon the business’s rapid growth, optimisation and broad material know- entail any forced redundancies. Pending approval by the super- global leader in packaging and packaging especially in the Preservative-Free packa- ledge, and project management support. visory board and consultations with unions and labour represen- solutions, has expanded its pharmaceuti- ging market. The Centre includes further Customer tatives, they would be implemented by its 2014/2015 busine- cal manufacturing Centre of Excellence, “This investment underlines MWV’s Service, Technical Laboratory and Regu- ss year, the statement said. ThyssenKrupp, which runs its busi- based in Hemer, Germany. The facility position as an innovation leader in health- latory teams. MWV’s healthcare products ness year from October to September, said the cuts were „a first expansion will begin in early 2013 and is care dispensing systems and our com- are manufactured according to ISO 9001, step in improving the position of our European steel business expected to finish by the end of the year. mitment to manufacturing high-quality Quality Management System for Medical in a difficult competitive environment.” The Centre is the core for MWV’s products in the appropriate regulatory Devices ISO13485, GMP ISO15378 and global pharmaceutical dispensing systems environment,” said Sven-Uwe Höhm, vice 93/42/EEC Annex 5 Medical Device Di- manufacturing network. The $7.5 million president & general manager, Medical rective standards. FINLAND |ENERGY project includes expanding clean room Plastics Division. MeadWestvaco Corporation is a glo- moulding and assembly capacity, and the The current Centre of Excellence bal packaging company providing innova- Wartsila supplies introduction of a state-of-the-art logisti- consists of clean rooms for precision tive solutions to the world’s most admired cs system to control the flow of finished injection-moulding and high-speed com- brands in the healthcare, beauty and per- Oregon gas plant goods and components. MWV is making ponent assembly, R&D Facilities with sonal care, food , beverage, home and gar- Finnish engineering company Wartsila has received an order this investment in its Healthcare business fluid dispensing, fluid atomisation, design den, tobacco, and agricultural industries. to supply the generating sets and related equipment for a new power plant being built near Clatskanie in Oregon, United Sta- SWEDEN | DEVELOPMENT tes, it was reported on 12 February. The Port Westward Unit Two plant is being built for Portland General Electric Company and is scheduled to be fully operational by 2015. The plant will be powered by 12 Wartsila 50SG natural gas-fuelled engines wi- SwedishThe Swedish Public Employment employment Service tion grounds butoffice who have not to yet arrived open backgrounds, in theEthiopia Public Employment Ser- th an electrical output of approximately 220MW. The Wartsila (Arbetsformedlingen) plans to open an of- in Sweden. In 2012, a Swedish Migration vice hopes to find suitable places in Sweden 50SG gas engine will allow Portland General Electric to respond fice in the Ethiopian capital Addis Ababa in Court decision opened the door for many where they can apply for work. quickly to variable input levels of wind and hydro power to the an effort to prepare emigrating Somalis for Somalis to join family members who have Participants in the project will not recei- system. The global trend in power generation is clearly moving life in Sweden, The Local reported on 9 Fe- permission to stay in Sweden. The Swedish ve any financial compensation and the time towards greater flexibility and increased efficiency, and this or- bruary. The purpose of the pilot project is embassy in Addis Ababa processes these spent in the preparation training will not be der is yet another example, said Wayne Elmore, Regional Direc- to assist Somalis who have received a Swe- applications. By mapping out the residen- deducted from the total two-year establish- tor, Power Plants Sales, Wartsila North America. dish residence permit on family reunifica- cy applicants‘ professional and educational ment period which awaits them in Sweden. NEWEUROPE www.neurope.eu 23 17 - 23 February, 2013 EUROPEAN UNION

UNITED KINGDOM | BANKING SLOVENIA | BUSINESS Agrokor to bid for Mercator Croatian company Agrokor is expected to bid for Slovenian re- tailer Mercator when non-obligation offers openned last week, Barclays to cut 3,700 it was reported on 12 February. The company had earlier drop- ped its bid because of stalling and opposition from Slovenian officials. This week’s bid will be for 53% of shares in Mercator. jobs as profits plunge Slovenian business daily Finance said Agrokor is expected to Scandal-hit banking giant Barclays has offer less than € 221 per share. said it was axing at least 3,700 jobs under a strategic overhaul, but revealed it was paying £ 1.85 billion sterling in bonuses UNITED KINGDOM | TRADE to staff, RTE Ireland reported on 12 February. Chief executive Antony Jen- Cameron pleased kins is shutting the bank's controversial Structured Capital Markets tax advisory with EU US Trade deal division. He said 1,800 jobs would go in In a move that has been brewing for a long while the State of corporate and investment banking and the Union address delivered by the American President Barack another 1,900 across its European retail Obama on 12 February heralded the move towards a free trade and business arm as part of a plan to deal for Europe and the US, none more pleased than the UK’s slash costs by £ 1.7 billion. Prime Minister David Cameron. "It's great that President Oba- Nearly £ 2.5 billion of cash set aside ma has set out his determination to agree a trade deal betwe- to cover mis-selling compensation en the EU and the United States, ” the PM said following the claims contributed to a plunge in pre-tax announcement of the news. "We discussed this issue on 11 profits to £ 246 million in 2012 from £ February and we are both committed to launching negotiati- 5.9 billion the previous year. ons this year. A deal will create jobs on both sides of the Atlan- Anthony Jenkins, Group Chief Executive of Barclays bank, poses for photogra- The bank's bonus pot will mean each tic and make our countries more prosperous. ” Cameron said. phers during an interval in a media conference in central London on February 12, employee gets £ 13,300 on average, with "Breaking down the remaining trade barriers and securing a 2013.|AFP PHOTO/CARL COURT an average of £ 54,100 for investment comprehensive deal will require hard work and bold decisions banking staff. not including movements in the value of lying basis. All of the 1,900 retail job on both sides. But I am determined to use my chairmanship of The pool is lower than the £ 2.2 billi- its own debt. cuts announced today involve the bank's the G8 to help achieve this and to help European and American on paid out last year, the bank noted. The bank's bottom line profits were European arm, with redundancies across businesses succeed in the global race, ” Obama’s UK counter- Barclays said 1,600 jobs have already heavily impacted by mis-selling provi- Spain, Italy, Portugal and France. part proclaimed. Solvay increases global derivatized guar pro- been cut in the investment banking busi- sions, with £ 1.6 billion put by to cover "There is no doubt that 2012 was a duction by 40%. Solvay, the Belgium-based an international ness since the start of the year. claims relating to payment protection in- difficult year for Barclays and the entire chemical and pharmaceutical Group has finalized plans to in- Jenkins announced he was waiving surance (PPI) and £ 850 million for in- banking sector,'' the bank's chief executi- crease its global derivatized guar production by 40 percent wi- his bonus for 2012 earlier this month, terest rate swaps sold to small businesses. ve said. th the completion of recent expansions in the USA and Chi- but the overall staff bonus pot for 2012 is Barclays said its investment banking He is leading a campaign to fix the na. “These expansions represent a significant step in the exe- likely to stoke further controversy given business delivered a 37% rise in pre-tax bank's reputation following the Libor cution of our 2016 growth ambition,” Solvay Novecare Presi- the recent series of scandals to rock the profits to £ 4.1 billion in 2012. Its UK and mis-selling scandals. But Barclays dent Emmanuel Butstraen said. “They enhance our leaders- group. retail and business banking division saw is facing yet more investigations over hip position and will support the growth plans of our custo- Barclays said profits rose 26% to £ profits tumble 71% to £ 292 million after its fundraising in the Middle East at the mers and their innovation needs.”Derivatized guar is a polymer 7.05 billion on an underlying basis, with PPI provisions, although it said profits height of the financial crisis, which hel- produced from a bean grown mainly in India. Its inherent na- mis-selling provisions stripped out and rose 4% to £ 1.5 billion on an under- ped it avoid a government bail out. tural properties make it an ideal bio-based solution for appli- cations in the oil and gas industry as a gelling agent, in hair ca- LUXEMBOURG |INTERNATIONAL AFFAIRS re as a conditioner, and in agrochemicals as an anti-drift for- mulation. The expanded Vernon, Texas USA derivatized gu- ar facility will serve Solvay’s customers in the dynamic North American oil and gas market. AIn trade the newsletter profile from the European by sq.the km) the Australians people of Luxembourg pride Kevin Skipworth and said the delegation Affairs Office of Western Australia this themselves on their innovation and en- was likely to consist of a small group of week we receive a profile of the small trepreneurship. Getting involved in We- leaders from companies which are world SLOVENIA | assets in land mass but big in business power- stern Australia’s resources industry is a leaders in their fields of activity. house that is Luxembourg. major draw card for Luxembourg firms “We would like to convince Austra- Slovenia to start European headquarters for online looking to enter the Australian market. lian companies that we are the gateway giants, Amazon, EBay, ITunes and Skype Jean-Claude Vesque, the Head of Fo- into the European markets and we have selling state-owned assets and one of the richest countries in the reign Trade at the Luxembourg Cham- a strong global reputation in a number The Slovenian government previous Wednesday adopted a world, the Grand Duchy of Luxembourg ber of Commerce hopes to tap into this of industries. So far Luxembourg has ne- classification of investments that will be put up for privatisati- has an interesting story to tell. potential by bringing a business delega- ver taken a trade delegation to Australia on, Balkans reported on 8 February. According to the Minis- With a small population (0.5 mil- tion to Perth in April. He recently met but feels very strongly that the time has try of Finance, the privatisation will be conducted in four di- lion) and not much land (2.6 thousand with Western Australian Agent General, come. fferent ways, with the investments being categorised as "stra- tegic, important, and portfolio investments". Strategic invest- AUSTRIA |CRYSTALS ments generally include companies that conduct public uti- lity services, have jurisdiction over public affairs, or have a do- minant market position. In strategic investments, the govern- ment will retain 50% plus one share. In important companies, RecordPalfinger, the manufacturer turnover of cranes, lo- Palfinger. for The turnover Palfinger was € 940 million, sing insecurity and decreasing willingness the government will retain 25% plus one share, but the state cated in Bergheim (Salzburg),obtained its which is almost eleven percent more than to invest. he turnover was largely due to may be able to reduce its stake below 25% provided this wo- largest turnover in its history, AustrianIn- in 2011. The management said that this business deals in North- and South Ame- uld lead to "significantly better conditions" for a sale, while al- dependent reported on 12 February. The was thanks to the internationalisation of rica and in the states of the former Soviet so guaranteeing long-term development. The important com- record turnover is the perfect present for the company. Herbert Ortner, chairperson Union. Palfinger has recently established a panies mainly include those holdings that secure influence on Palfinger’s 80th birthday. The financial of Palfinger plc, explained that business in joint venture with the Sany-Group, which strategic and development decisions, keep seat in Slovenia, or year 2012 turned out to be a record year for Europe could be characterised by increa- is one of the biggest Chinese companies. secure productive jobs. NEWEUROPE 24 www.neurope.eu EUROPEAN UNION 17 - 23 February, 2013

GREECE|ENERGY ITALY|POLITICS Russia’s Sintez offers top bid for Greek DEPA Russian energy firm Sintez Group is offering up to €1.9 billion Elections and the challenges in a bid for Greek gas company DEPA, the highest price among bidders, Russia’s Kommersant business daily reported on 12 February, citing a banking source. Sintez’s rivals in the bid to acquire DEPA and its subsidiaries include Russian gas mono- the country will have to face poly Gazprom, Azerbaijan’s state oil company SOCAR as well New Europe’ talked, about the possible as two Greek consortiums comprising M&M GasCo, Mytili- outcomes of the Italian elections on neos Holdings, Motor Oil Hellas Corinth Refineries and a joint 24-25 February and the challenges bid by PPF and GEK Terna Holding Real Estate Construction. that the country will have to face. Federico Grandesso talked with two top correspondents of the foreign press in ROMANIA|TECHNOLOGY Rome. Robert J. Mackenzie from Reuters tries Mobile Works acquires to draws for us a possible scenario: “The result is still open and uncertain even Magnetic Studios though the pools are showing that the Mobile marketing agency Mobile Works announced that it Bersani coalition is leading. As I said, I took over Magnetic Studios, with an expertise in program- wouldn’t also exclude a positive result for ming and research. Magnetic Studios has a team of 15 specia- Berlusconi. After the vote we will have two lists, most of all with more than 5 years of experience in these important issues on the agenda: the fear fields, and will work as a technology lab for Mobile Works, wi- of a sudden growth of the spread on the th a focus on developing native applications for iOS and An- financial markets and the need for a long droid, Augmented Reality projects but also website optimisa- term strategy of structural reforms. The tion for the mobile phone. Mobile Works took over 70% from next Italian government will have to follow Magnetic Studios. The operational management is still ensu- a fixed path on financial policy. No matter The leader of the Italian centre left Democratic Party (PD) Pier Luigi Bersani, centre, red by Ionut Grigorescu, who owns the remaining 30% stake. which the coalition will win the elections, holds a public debate with the healthcare personnel of the Forlanini hospital in Rome Bersani and Berlusconi are not going to as part of the campaign for the upcoming general elections, 6 February 2013. |AFP have the possibility to put aside the EU PHOTO/ANDREAS SOLARO ROMANIA|ENERGY agenda. Then, another crucial point on the long term will be the structural reforms”. society. I’m not against his methods of the difficult point of the labour reform Electroprecizia to invest If Bersani will win the election he might going in the squares and speak directly to (the article 18). We saw recently various search an alley in the French President the electorate instead of sitting in a TV meetings of Monti and Bersani with €3mn in hydro power plant Hollande, Mackenzie comments: studio and I understand the reasons of German politicians in Italy and in Germany Romanian Electroprecizia, a manufacturer of electrical “Hollande was the first to change direction his protest. The real problem here is that and at the end I think that the Germans are equipment, plans to invest €3 million in building a hydroe- talking about growth and not only most people see this protest movement in favour of a Bersani-Monti coalition. lectric plant in the Brasov County, which would cover more austerity in Europe then Monti, Draghi, as the only alternative to the conventional Bremer is then also very sceptical than half of the group’s electricity consumption, Business Re- etc. agreed with him; for this reason I politics.” about the new party of Beppe Grillo, view reported on 11 February. The Electroprecizia plant will think that Bersani could find a partner in For the German correspondent of he emphasises “Grillo is only a very be located at the base of the Tarlung-Sacele dam, replacing a Europe to put the growth on top of the Frankfurter Allgemeine Zeitung, Jorg dangerous populist because he is doing former plant closed in the 60s. The Romanian company will agenda. Bersani then is not an extremist Bremer, the electoral campaign is in Italy politics without taking any responsibility also replace the pipe that connects the water treatment plant and he will not impose a radical change is presenting some problematic issues, he and he is not a candidate. Why is he active is Sacele city with the Tarlung dam, which supplies drinkable to the Italian economic policy. Then I see said: “For me the big negative surprise was in politics? We see that in some areas of water to 300,000 people. “We started in 2012 a project that more a fear of a success of Berlusconi than this successful coming back of Berlusconi Italy this movement is governing quite will create new jobs, protect the current jobs at Electropre- of Bersani. Finally we have Beppe Grillo then I see that this campaign is not focus well some medium size cities like Parma cizia and protect the environment and increase the security who is an interesting phenomenon that on pragmatic themes but only on every day but because of his demagogic style and his of the drinkable water supply,” Electroprecizia General Di- reflects very well the lack of confidence new promises. This situation is not helping dictator’s attitude inside the movement, rector Dumitru Matei said. “It will allow us to cover betwe- for the old parties. He has many ideas Italy. Then inside the coalition of Bersani he is not better that Berlusconi. In Italy en 60 to 70% of the Electroprecizia group’s electricity con- and proposal on some issues while parts we can see some different opinions, we we have two orientations, we have these sumption.” Sacele city Mayor Radu Nistor said the invest- of his programme seem to me lacking of have Matteo Renzi and Nichi Vendola anarchists like Berlusconi and Grillo, ment will increase the transport conditions for drinkable substance. His movement appears to me who will likely to find an agreement with for them the state and the democracy water to Sacele’s citizens. like a protest initiative but he would not the coalition of Monti. I hope that after the are not important. On the other side we be so strong to rule the country while I’m election the extreme positions are going to have Bersani, Monti and Ingroia that are concerned because the vote to Grillo it’s be softened, for example, Vendola seems bringing positive ideas for Italy in this ROMANIA|MINING an extreme act of frustration of the Italian to be open to discuss with Monti about campaign.” Moldavian investor BULGARIA|ENERGY takes over half of Romaltyn Investment fund Fribourg Investments, controlled by busine- Bulgaria accelerates IBS construction ssman Ion Sturza, the former Prime Minister of Moldova, took By Stanislava Gaydazhieva This motion is likely to ease the ad- were released. over 49% in Romaltyn Limited, a company which owns a mi- On 13 February, the Bulgarian govern- ministrative procedures for obtaining per- Also last month, a possible 61.6-kilo- ning project in Baia Mare, Romania Insider reported on 11 Fe- ment adopted measures to speed up the mits for construction activities, as well as metre long route of the pipeline on Bulga- bruary. The deal also covers the operational control of the re- construction of the Interconnector Bulga- give legal possibility for obtaining proper- rian territory was selected. cycling project for mining waste and includes an expected € 18 ria Serbia (IBS). ty rights to build the connection. The minimum capacity of the pipe- million bill in taxes and royalties. In April 2012, Russian Polyus After it was announced on 4 Janua- In December, Bulgaria and Serbia si- line is 2 billion cubic metres annually Gold International Limited sold Romaltyn Mining SRL. and ry that the operation of the pipeline was gned a memorandum of understanding and, according to the Bulgarian Energy Romaltyn Exploration SRL- both under the Romaltyn Limi- expected to commence in the middle on (MoU) for the implementation of the Ministry, the connection would contri- ted umbrella – to a company from Kazakhstan, SAT & Com- 2015, the authorities in Sofia declared the project, while in January the results of bute to real diversification of natural gas pany JSC, for some $20 million. pipeline a project of national importance. the feasibility study of the interconnector supplies. NEWEUROPE www.neurope.eu 25 17 - 23 February, 2013 ENLARGEMENT

TURKEY |ENERGY ALBANIA |ENERGY San Leon Energy eyes Alban structure TurkishCzech Prime Minister Recep talks Tayyip sprout action San Leon Energy (SLE) has decided to extend its farm-out pro- Erdogan recently paid a visit to Prague cess in order to “maximise value for shareholders”. The com- to attend Czech-Turkish business forum. pany said a reservoir engineering study is being undertaken at Erdogan is accompanied in Prague by 80 the Alban structure, Albania, aimed at an exploration well be- Turkish businessmen, in addition to Tur- ing targeted in 2014. The Alban structure is part of the Durre- kish Minister of Economy Zafer Caglayan, si Block, offshore Albania, AENews reported. The structure EU Minister Bagis, Energy Minister Yildiz is estimated to contain prospective resources of approxima- and Health Minister Muezzinoglu, Zaman tely 3.2 trillion cubic feet (tcf) of gas and 145 million barrels reported. (mmbbls) of gas condensate in the mean case. Estimates for Speaking at the forum, Erdogan said the identified prospects and leads on the Durresi Block indi- that Turkey is ready to give Turkish ci- cate it contains prospective resources totalling up to two billi- tizenship to Czech business circles who on barrels of oil equivalent of un-risked mean case recovera- would like to invest in Turkey. Erdogan ble prospective resources. stated that Turkey and the Czech Republic reached a consensus on creating a high- level cooperation council. Noting positive TURKEY |EUROPEAN AFFAIRS developments, he said that bilateral trade turnover grew to a record $2.5 billion in Czech Prime Minister Petr Necas (heart) and Turkish Prime Minister Recep Tayyip Waiting for Europe 2011.However he said that the trade volu- Erdogan leave after reviewing a guard of honour during a welcoming ceremony Turkish Prime Minister Recep Tayyip Erdogan slammed me between the two countries is not suf- before their meeting.| AFP PHOTO / MICHAL CIZEK the European Union’s stance towards Turkey. Speaking in fice, as he aimed for the target trade volu- tions and are symbolic given the size of the grant Turkish citizenship to any Czech en- Prague, Erdogan said that his country’s long-standing bid to me to reach $5 billion by 2015. “If barriers Turkish economy. He outlined visas as the trepreneur interested to launch business in join the European Union is “unforgivable,” and that it should to trade are eliminated, bilateral trade may main problem. the country. “Turkish imports amount to be admitted immediately, Zaman reported. He added, “Our climb to new record highs,” he said.Accor- Erdogan said that a Turkish entre- $240 billion, of which $1.4 billion worth cooperation and solidarity with European countries will of ding to Erdogan, Turkish investment in preneur cannot pick up and leave for the of goods comes from the Czech Republic, course continue, even if they do not accept us. But our wish the Czech Republic is insignificant and Czech Republic to examine investment which is not sufficient,” Erdogan added. would be for Europe, even though they have not accepted he called for an improvement in this area. and trading opportunities there but Turks He underlined energy projects as the most us, to realize that 5 million citizens of Turkey live in the EU He noted that Turkish investments in the are willing to open up the door. He ex- dynamic area of the two countries econo- ... We say: ‘Don’t delay. Let’s finish it’.” The Premier said that Czech Republic fail to meet the expecta- pressed the readiness of the government to mic cooperation. his country “has been standing in front of the EU gates for 50 years since 1959. The country’s EU accession bid formally FYROM | INTERNATIONAL AFFAIRS began in 2005, though talks first started in 1963. The pro- cess has stalled as it was opposed by France and Germany. In addition, unresolved differences over the division of Cyprus Interparliamentary advice also led to the delay in EU process. It was reported that the A FYROM parliamentary delegation led relations between US and FYROM as implemented in FYROM regarding the Muslim country has been in negotiation for years its possi- by Speaker Trajko Veljanoski recently intense and productive, he said that US country‘s economic development and ble membership in the EU but has made little progress in its had meetings with several US Congress- is pleased to renew ties with this Balkan attraction of foreign investments. He candidacy. Erdogan said he plans to visit Brussels to discuss men, as well as representatives of foun- nation. The Parliamentary Institute in also called on the United States to be in- the issue but gave no details. Last October, he also said that dations and organisations, MRTOnline the FYROM Assembly was focus of the volved in integration of Balkan states in Turkey might lose interest in becoming an EU member if the reported. Veljanoski was accompanied meeting. The project which was backed EU and NATO. country doesn’t join the bloc by 2023, the centennial of mo- by MPs Vladimir Gjorcev and Aleksan- by Price‘s committee, will be launched in In separate meeting with Congress- dern Turkey’s founding. Ankara has accused the EU of “bi- dar Spasenovski. After talks with the second half of this year. The Parliamen- man Peter Roskam, FYROM parliamen- goted attitudes” in its application process. delegation, David Price, chairman of tary Institute will be in charge of making tary speakers said that a strong will and The Premier also said that Shanghai Cooperation Organisa- the House Democracy Partnership, in a professional analysis and provide sup- sincere approach is required to resolve tion is not an alternative to the EU.He restated that Turkey charge of cooperation with countries port to MPs when developing draft-laws. Greek-FYROM age old name dispute. is already a dialogue partner of the SCO and the organizati- worldwide said that United States has Speaker Veljanoski also met with Roskam said that FYROM and the Uni- on is not only a security oriented but an economic and coo- a partnership of seven years with the House Foreign Affairs Committee ted States should share joint values such peration union. Parliament of FYROM. He said that US Chairman Ed Royce. The sides dis- as freedom, freedom of expression, and considers the Parliament of FYROM as cussed name dispute between Greece respect of religions and cultures. Both a key democracy in the Balkan region, a and FYROM and Veljanoski‘s recent officials expressed hope that criteria for ALBANIA |RENEWABLES democracy that can serve to be an ideal meetings with UN‘s top officials. Vel- other countries when joining NATO for other countries in the region. Calling janoski briefed Royce with the reforms would also be valid for FYROM. Call for green ideas Partners Albania will organize for the first time the national TURKEY |ASIAN AFFAIRS competition Call for Green Ideas 2013. Through a competiti- ve process, “Call for Green Ideas 2013” competition aims that civil society organizations, social enterprises and small busine- ss ventures in country to be involved in identification, selecti- Inflation in Jan up above expectations on, prioritization and to support innovative green ideas. To- Inflation in January rose above expec- “Though the figures are above the 0.8% to inflation. The remainder of the rise day, one of the biggest challenges to economic stability is fin- tations mainly due to soaring food prices. expectations, since the core figures don’t in inflation can be attributed to food prices, ding new ways to organize and involve local communities to The country’s inflation for January has look negative, the outlook doesn’t seem which rose 6.9% yoy from just 3.9% yoy ensure sustainable development by reducing negative impacts risen to 1.65 % compared with the same critical to force the Central Bank to ad- in December 2012. This year the inflation on the environment, therefore encouraging a more equitable month a year earlier, surpassing the market just its strategy,” Is Investment Domestic is expected to end the year well above the distribution of benefits. When connections to the land and expectations that were around 1.1 %. Offi- Markets Manager Yasin Demir said. He central bank target of 5.3%. According to to its resources are lost, the sense of community solidarity al- cial data released by TUIK showed that the claimed that the increase in inflation was the first quarter inflation report recently so suffers. The emergence of multinational companies in the 12 month average inflation rate amounted due to a surge in food prices, which had unveiled, CBRT had predicted that inflati- marketplace has threatened many businesses, including small to 8.62 % as of January. The year-on-year a positive impact on December inflation, on will resume its downward trend towards farmers and traditional manufacturers, increasing unemploy- figure has moved up to 7.31 %, Zaman re- which was 0.38 %. In line with prediction the 5.3% year-end projection, following an ment rates and generating dependency, producing undesira- ported. of CBRT, the tobacco tax increase added initial rise in January. ble social, economic, and cultural changes. NEWEUROPE 26 www.neurope.eu ENLARGEMENT 17 - 23 February, 2013

BOSNIA-HERZEGOVINA|INVESTMENT BOSNIA-HERZEGOVINA|POLITICS German firms eye BiH Germany supports institutions in the economic development of Bonia-Herzegovina entailing improve conditions for invest- NATO envoy appeal Bosnia ment, said Jens Wagner, the spokesperson of the German Em- bassy in BiH. He added that through the organisation Society for International Co-operation (GIZ), Germany supports the- to implement reforms se institutions to further develop political co-operation, Fars ne- ws agency reported. He mentioned that the German Embassy supports German firms and acquaints the latter with the secti- on in BiH.

SERBIA|DIPLOMACY Serbia, Kosovo hold talks The presidents of Serbia and Kosovo vowed to mend their ties after holding the highest level talks held between the sides sin- ce Kosovo declared independence from Belgrade in 2008, Beta news agency reported. European Union foreign affairs chief Ca- therine Ashton, who has mediated between Belgrade and Pris- tina, held the brief talks with Serbia’s Tomislav Nikolic, once an advocate of the Greater Serbia policy that fomented the Yugos- NATO Secretary-General Anders Fogh Rasmussen, left, gives a press conference after meeting with members of Bosnia and Herzego- lav wars of the 1990s, and Atifete Jahjaga of majority-Albanian vina’s tripartite presidency, Nebojsa Radmanovic, right, and Zeljko Komsic, in Sarajevo, Bosnia, 7 February 2013. |AFP PHOTO / ELVIS BARUKCIC Kosovo. European Union foreign affairs chief Catherine Ash- ton, who acted as mediator between Belgrade and Pristina, held During a recent visit to Sarajevo, NATO that such a move shows that the country called on all communities to show the lea- the brief talks with Serbia’s Tomislav Nikolic, once an advoca- Secretary General Anders Fogh Ras- is adhered to becoming a security pro- dership which will help Bosnia and Her- te of the Greater Serbia policy that fomented the Yugoslav wars mussen met with the Chairman of the vider, and contributing to international zegovina show the way to move closer of the 1990s, and Atifete Jahjaga of majority-Albanian Kosovo. Presidency Nebojsa Radmanovic, with stability. “You aspire to join our Alliance. to NATO. He added, “This is a historic the Chairman of the Council of Mini- NATO stands ready to assist your reform opportunity and a historic responsibility. sters Vjekoslav Bevanda, with Minister efforts. But only Bosnia and Herzegovi- NATO will be with you, every step of the MONTENEGRO|INVESTMENT of Foreign Affairs Zlatko Lagumdzija and na can lead them,” the Secretary General way. But only you can walk that path – with Minister of Defence Zekerijah Os- said. He said he is confident that Bosnia and take the next step”. On concluding his Abu Dhabi discusses projects mic. The aim of the visit of NATO envoy and Herzegovina can implement the visit, Rasmussen seems more positive as Montenegro’s Prime Minister Milo Dukanovic recently had a was to discuss with Bosnian politicians reforms which are necessary to achieve he was assured by political leaders about meeting with Mohammed Saif Al Suwaid, Director General of how to advance the country’s aspirations the set goals which will benefit all peo- their intentions to reaffirm their commit- Abu Dhabi Fund. The topic at the meeting was development move towards membership of the alli- ple in the country, from all entities. The ment to the agreement on immovable de- projects in a several areas of common interest, Montenegro Ti- ance, Fars news agency reported. NATO envoy also met separately with fence property and their determination to mes reported. The Montenegrin premier was pleased with the Rasmussen thanked his Bosnia and other members of the Presidency, of the implement it at the earliest. The NATO overall relations between Montenegro and the United Arab Emi- Herzegovina counterpart for their role Council of Ministers, members of Parlia- envoy said he is now looking forward for rates. He stressed that co-operation between the two states ser- in contributing to NATO’s mission in ment and the leaders of the main politi- actual implementation of the assurances ves is a solid foundation for further improvement of co-opera- Afghanistan. In this regard, he stressed cal parties. In course of talks, Rasmussen made by the politicians. tion in economy and investments. The premier also expressed satisfaction over the fact that Abu Dhabi Fund for Development CROATIA|TOURISM considers Montenegro as an attractive country for investments. Croatia plans to invest €7 billion by 2020 CROATIA|TOURISM Croatian Tourism Minister Veljko rism to some €14.3 billion in 2020 and mostly flocking to its stunning Adriatic Ostojic recently announced that €7 bil- increase the number of overnight stays coast. Croatia was ranked 34th out of Arrivals down by 3.6% lion will be invested in tourism sector by 43%. At present the number of over- 139 nations, according to the World Eco- Official statistics showed that last December 1,5781 tourists vi- by 20202 in order to reach the world‘s night stays stands at 70 million annually. nomic Forum‘s 2011 report on Travel & sited Montenegro, 3.6% less than in December 2011, while they top-twenty list of attractive holiday de- The minister stressed that Croatia need Tourism Competitiveness. made 48,124 overnight stays which is 4.0% more than in De- stinations, Javno reported. One-third of to become a competitive, globally recog- Ostojic said sales tax on tourist ser- cember 2011, Beta news agency reported. In December 2012, the fund will be allotted for construc- nised tourism destination, attractive for vices will be reduced from 25% to just overnight stays of domestic tourists represent 21.7% while the ting new hotels and resorts, mostly on investments by 2020. 10%. Croatia is expected to see a large foreign tourists represent 78.3% of all overnight stays. Most fo Croatia‘s popular Adriatic coast, as well Tourism, a key sector of Croatia‘s increase in tourism this summer thanks thrm were tourists from Serbia (19.4%), Russia (11.0%), Bos- as into renewing existing structures such economy had contributed around 19% to its entry to EU. These changes mean nia and Herzegovina (10.8%), Albania (9.9%), Slovakia (9.3%), as camps or ports. of its gross domestic product (GDP). Brits wanting to holiday in the Mediter- Italy (7.1%), Macedonia (6.3%), Kosovo (4.6%). Tourists from The investments aimed to double Last year more than 12 million tourists ranean country could find in Croatia a other countries registered 21.6% overnight stays. the country‘s current income from tou- visited the former Yugoslav republic, better deal on trips.

CROATIA|AIRLINES INDUSTRY SERBIA|INVESTMENT Croatia Airlines delays flights Last November Croatian Airlines were instructed by the govern- BelgradeA Qatari business delegation tries recently had to a lureAt the meeting,Qatari the delegation businessmen ex- bia for the investment coming from across ment to launch domestic flights from Osijek Airport this win- meeting with Serbian Minister of Finance pressed interest to invest in Serbia, espe- the globe. The government of Serbia and ter but with just over a month left until the season ends, the ser- and Economy Mladjan Dinkic. This is the cially in electronics and construction. the Ministry of Finance and Economy will vice is least likely to materialise, Javno reported. The flights we- first delegation of businessmen from Qatar The Serbian Ministry of Finance and continue to generate business contacts with re scheduled to launch in the aforesaid year with a leased Em- who visited Serbia. The aim of the visit of Economy said the reason of growing in- entrepreneurs from around the world. The braer EMB120 from Budapest Aircraft Service. In December, the delegation is to begin a successful co- terest among Gulf States to invest in Serbia goal of Serbia is to achieve the best possible the government of Croatia ordered its national carrier to launch operation between Serbia and the United was due to the good business environment business cooperation with all countries and services from Osijek to Zagreb by the end of 2012. Arab Emirates, Beta news agency reported. and the openness of the government of Ser- garner more investment. NEWEUROPE www.neurope.eu 27 17 - 23 February, 2013 PARTNERS

SWITZERLAND | PHOTOGRAPHY SWITZERLAND| BANKING Credit Suisse posts A Swiss digital press for Kodak fourth quarter net profit Eastman Kodak Co on 11 February The Credit Suisse Group on 7 February posted a profit for launched a new digital press at an indus- the fourth quarter of 397 million Swiss Franks, a turna- try event in Switzerland, it was reported. round from a year ago that reflected a tough year of cost- The Prosper 5000XLi press was in- cutting and consolidation, local press reported. The chief troduced at Hunkeler Innovation Days executive of Switzerland‘s second-biggest bank, Brady W in Lucerne, Switzerland. The device Dougan, said in a statement that 2012 was „a year of tran- pairs the high-speed continuous inkjet sition“. The bank struggled with tough market conditions printing performance of the Prosper and made aggressive cuts in costs and risks while meeting press platform with new press ma- new requirements that it hold more capital. In the fourth nagement technology, Intelligent Print quarter of 2011, the Zurich-based bank had reported a net System, that constantly monitors and loss of 637 million Franks its first fourth-quarter net loss adjusts settings to ensure the highest since 2008. Credit Suisse also said that its full-year results quality output, Kodak said. for 2012 showed a net profit of 1.483 billion Franks, a 24% The Prosper press, which uses the drop from 1.953 billion Franks in 2011. With some 47,400 company’s stream technology, is a key to staff around the world and 924 million Franks in assets as of Kodak’s future as shifts its focus on com- the fourth quarter, the bank is on the list of the 29 „global mercial imaging. systemically important banks“ that the Bank for Internatio- Mercury Print Productions Inc in nal Settlements - the Basel, Switzerland-based central bank Rochester has been beta testing the new for central banks - considers too big to fail. But the latest press. financial results, posted before the opening of the Zurich Kodak is unveiling new develop- exchange, also show that the total assets managed by Cre- ments in the Prosper press platform and dit Suisse in the fourth quarter represented a 12% decrease its commercial printing market portfolio from 1.05 trillion Franks in the fourth quarter of 2011. Someday, my prints will come. | AFP PHOTO / TOSHIFUMI KITAMURA through Friday at the event.

ICELAND |HEALTH NORWAY | ENLARGEMENT Hospital wage dispute EEA , Norway agree to €306 mln financing for Romania Norway and the countries in the Europe- programs are to be launched during the take all the necessary measures in order in deadlock an Economic Area (EEA) will grant a € current year. to increase the absorption rate during this Few of the 280 nurses at Landspítali National University 306 million non-reimbursable financing “During discussions, ambassador Ho- funding period, according to Eugen Teo- Hospital, who are set to leave on 1 March, have withdrawn package for Romania, by 2016, according vdkinn noted the high absorption rate of dorovici, Romania’s Minister of Europe- their resignations and almost 20 additional nurses have re- to the Norwegian Embassy to Bucharest, 85 percent reported in the previous fun- an Funds. Romania has received funding signed, Iceland Review reported on 11 February. The dead- Romania Insider reported last week. ding period. For this period, Romania since entering the EU and EEA in 2007. line to accept Landspítali’s pay raise offer was last week. The money will be managed by the received some EUR 100 million in the fol- In the period covering 2004 – 2009, Ro- “Everyone is waiting for doomsday, 12 February, hoping Romanian Ministry of European Funds lowing key areas: environmental protec- mania received € 98.5 million in EEA and that nurses will stick together,” stated nurse Hildur Dís and will be used for supporting programs tion, sustainable production, health and Norwegian Grants, according to EEA. Kristjansdottir. In a mass meeting previous Sunday, nurses and projects in areas such as environ- child care, cultural heritage and NGOs,” Norway provides 97% of the funding, wowed to show solidarity. Hildur said she senses that nurses mental protection, cultural heritage pre- according to the Norwegian Embassy. with Icelandand Liechtenstein providing enjoy support from the public. A demonstration was orga- servation, justice and civil society. These The Romanian authorities intend to the rest. nized in front of Alþingi, the parliament, on 13 February between 12 and 1 pm. “We believe more needs to be done,” SWITZERLAND | AVIATION added chair of the Icelandic Nurses’ Union Elsa B. Frio- finnsdottir. “A bigger step must be taken and we need some certainty that there will be a continuance of the equal sala- ries initiative.” According to Frettablaoio, Elsa is waiting for Lufthansa Technik Switzerland Technik (LTSW) Switzerland, Switzerland said: „Due to the fall in de to- CloseThe Lufthansa Technik Group, with a response from director of Landspítali Bjorn Zoega, while in Basel has been unable to sustain its mand and the associated decline in our more than 30 subsidiaries and about Bjorn stated he is waiting for Elsa to make the next move. operations and will be closing its two customer base, closing the facility was 26,000 employees worldwide, is one of Line Maintenance and Logistics Ser- sadly unavoidable. In particular, it goes the leading manufacturer-independent vices businesses on 30 April 2013, it was without saying that we regret the associa- providers of services for the aviation in- SWITZERLAND | chocolate reported on 11 February. ted consequences for our employees and dustry. Lufthansa Technik is licensed in- This plant closure will lead to 31 re- we are making every effort to support ternationally as a repair, production and Swiss chocolate sales dundancies. Another 29 employees will them where possible. However, thanks development enterprise. The Group‘s have the opportunity to stay on as em- to our agreement with SWISS we have portfolio encompasses the entire spec- lowered by strong currency ployees of SWISS at the Basel site. succeeded in finding alternative direct trum of services in the areas of mainte- Swiss chocolate makers were left with a bittersweet taste Explaining the circumstances, Rai- employment in the same field of activity nance, repair, overhaul, modification and in their mouths last year as a strong Swiss currency melted ner Lindau, CEO of Lufthansa Technik for almost half of the workforce.“ conversion, engines and components. away the appetite for their products, the top industry body said on 8 February, The Local reported. Switzerland‘s 18 SWITZERLAND | MINING chocolate manufacturers, including such brands as Lindt, Frey and Faverger, sold 4,000 fewer tonnes last year than in 2011 as an “overvalued Swiss Franks made Swiss chocolate Glencore considers South African listing products more expensive abroad and made imported cho- Metals and mining giant Glencore is The potential move could be part of Glencore is yet to comment on me- colate cheaper,” Chocosuisse said in a statement. The cho- considering listing itself on the South a drive to increase Glencore‘s clout as it dia reports that it is studying the South colate makers saw their sales fall 2.2% in terms of quantity to African stock exchange, the world‘s top seals its merger with fellow mining mul- Africa listing. The group was listed in 172,376 tonnes, while their turnover fell 3.4% to 1.6 billion minerals bourse, a source familiar with tinational Xstrata, the source said. London and Hong Kong in 2011, rai- Franks ($ 1.8 billion), it said. More than 60% of Swiss cho- the issue said, The Local reported on 9 Both groups are headquartered in sing $ 7.5 billion in the process. colates are exported, and foreign sales were hit especially February. the tax-friendly Swiss canton of Zug. hard, Chocosuisse said. NEWEUROPE 28 www.neurope.eu EASTERN PARTNERSHIP 17 - 23 February, 2013

GEORGIA|EU AFFAIRS AZERBAIJAN|FROZEN CONFLICT PM dreams of Europe Georgia’s Prime Minister Bidzina Ivanishvili recently sta- ted that he dreamed of Georgia becoming part of single Europe in 20 years. The announcement was made at a MEPs concerned with airport meeting which was convened to summarise his 100 days in power since the victory gained in October parliamen- tary polls of his Georgian Dream coalition, The Messen- re-opening in Nagorno-Karabakh ger reported. Georgia has to follow the path which is the best for the country, Ivanishvili said. „Of course the pro- bability of Georgia‘s refusal from integration into Europe and NATO is very low and in my opinion insignificant. This is possible, but I do not think it can happen anytime soon, in the following decades,“ he underlined. Ivanis- hvili said that within 20 years Georgia will be a fully- fledged member of Europe and Europe is what Georgia belongs to. Ivanishvili said the Europeans are seriously concerned about the future of the EU. He was also opti- mistic about restoring ties with Russia.

GEORGIA|INVESTMENT Tbilisi establishes funds At a recent government meeting in Tbilisi, Georgian Pri- me Minister Bidzina Ivanishvili recently announced that three new funds will be established in Georgia namely, sovereign fund of Georgia, a private investment fund and MEP Boris Zala from Slovakia MEP Inese Vaidere from Latvia a youth fund, Civil Georgia reported. The premier infor- med that GEL 2 billion sovereign fund will be formed The re-opening of the Khojaly airport in ned. Furthermore, the re-opening of the cates the work of the Minsk Group and the on the basis of Georgia’s partnership fund. He expects Nagorno-Karabakh “would seriously harm Khojaly airport by Armenian authorities EU,” Zala said in an interview. the new fund to spur the influx of investment projects to the peaceful settlement of the Nagorno- could be perceived as disrespecting both, The Chicago Convention, through its Georgia. JP Morgan Chase & Co, a company where Iva- Karabakh conflict, MEP Inese Vaidere the EU and the Minsk Group‘s effort in the Articles 1 and 5 namely, is clear about a nishivli holds shares in the amount of $425,600, will be from Latvia said recently in an interview. whole peace process,” Vaidere said. state’s right to manage its own airspace and the partner of the aforesaid fund. Around $2 billion will “Firstly, the Armenian initiative to The EU’s involvement in the Nagor- exercise sovereignty over it. Asked how the be allotted for private investments fund, said Ivanishvili. open the Khojaly airport can be seen as a no-Karabakh conflict resolution has been Khojaly Airport would operate if opened, claim of a change in the status of Nagor- a relatively passive so far, the MEP said. Zala said, “There is no other way for the no-Karabakh that is a clear disagreement “The EU can certainly do more to help airport to operate but in accordance with GEORGIA|ARMY with the Madrid Principles. Secondly, the resolve conflict in the region, in particular international and standard flight practices - opening of the air traffic between Nagor- through the Action Plans with each of the in other words, only with the authorisation Professional army by 2016 no-Karabakh and Armenia could be seen countries and also by means of the office of the Azerbaijani authorities. Any other Following a recent visit to the Ministry of Defence, Ge- as a violation of the Azerbaijani airspace of EU Special Representative for the South mode of operation would pose risks for the orgian Prime Minister Bidzina Ivanishvili announced and thus, might cause a counter reaction. Caucasus. planes and their passengers - and violate in- that Georgia plans to have fully professional army by Therefore, the opening of the Khojaly air- Yet another way for the EU to get more ternational law. 2016, Civil Georgia reported. He mentioned that Defen- port should be considered a provocation engaged in the conflict resolution would Asked what the actions the European se Minister Irakli Alasania early last month had initially and obstacle to conflict‘s resolution that be to replace France in the OSCE Minsk Parliament may undertake are to prevent announced the plan to abandon conscription system and endangers the mutual confidence buil- Group. Not only would it counterbalan- the opening of Khojaly airport, Zala said gradually move to fully professional army in a next four ding. Instead, both sides should continue ce the key regional players Russia and the that at the moment, individual MEPs are years. The premier said, “This is something that should to comply with current practice for flights USA but would also improve the mediati- voicing concerns. “If the situation grows be welcomed very much; it will stress that the country over their territory,” Vaidere said. on approach. It is necessary to reach a bre- more serious, I expect the EP to adopt a is moving towards Europe and getting closer to NATO The MEP noted that the symbolism akthrough in the 20 years of standstill in resolution, mounting pressure on both standards.” Ivanishvili had a live video chat with Georgi- associated with the Khojaly tragedy in the conflict resolution in order to establish sides to avert escalation of the conflict, and an officers in Afghanistan from MoD’s command centre. 1992 in addition to the opening of the a lasting peace so that thousands of IDPs on the EEAS, the Commission, and the The premier thanked the officers for their role in Afgha- airport, could potentially lead to further are able to return to Nagorno Karabakh,” Council to get more involved. And let‘s nistan and underlined that Georgia was proud to be asso- increased tensions in the whole region. Vaidere said. not forget that the EU is not without poli- ciated with ISAF operation. “The plan of opening the air traffic bet- Meanwhile, MEP Boris Zala from tical and economic leverage over Armenia ween Nagorno-Karabakh and Armenia Slovakia said that there is a clear concern - after all, we are entering the final stages of has already caused a knock-on effect from in Brussels that re-opening of the airport negotiations on a new trade agreement. So, AZERBAIJAN|ISTANBUL PROCESS the Azerbaijani side, which has announced can potentially unfreeze the conflict. “I still even if not directly involved in conflict me- its readiness to destroy aircrafts that are de- hope it will not come to that. My instinct diation, the EU is not powerless. And, for Baku hosts fourth session emed to enter their airspace. Any provoca- tells me that the situation will calm down that matter, neither is the European Parlia- Baku is hosting the 4th meeting of senior officials of the tive action from either of the sides that has after the Armenian presidential elections. ment, which will need to give its consent to Istanbul process to stabilise the situation in Afghanistan. a potential to make the situation more pre- Either way, the issue certainly impedes the closer political and trade association with The event was jointly opened by Deputy Foreign Mini- carious has to be internationally condem- conflict resolution process, and compli- Armenia,” Zala said. ster of Azerbaijan and Afghanistan Araz Azimov and Ja- vid Ludin, news agencies reported. According to deputy AZERBAIJAN|ICT head of the Azerbaijani Foreign Ministry, this was a pre- paratory meeting for the upcoming Ministerial meeting of the Istanbul process scheduled to take place in Almaty ICTAzerbaijan’s toICT Ministergrow Ali Abbasov by 5 lopmenttimes rate by 2-3 times, news agen- and developed countries. He noted that on 26 April. Addressing the meeting, Azimov said, “The recently announced that annual average cies reported. in past few years, the ICT sector of the text of the declaration to be adopted by the ministers in growth rate of ICT sector of the country He believes that at present for deve- country increased by two times in every Almaty will be prepared at the meeting”. made 20-25% in the last 8-10 years and lopment indicators of ICT, Azerbaijan three years. Only last year, GDP made this growth rate advances world deve- is estimated between the developing 54 million manat. NEWEUROPE www.neurope.eu 29 17 - 23 February, 2013 EASTERN PARTNERSHIP

BELARUS|ENERGY BELARUS|FINANCIAL CRIME Minsk, Moscow plan watchdog Permanent working groups of the financial crime investigation Zarubezhneft, Belorusneft services of Belarus and Russia will be set up in the near future, De- puty Chairman of the State Control Committee of Belarus, Direc- tor of the Department for Financial Crimes of the State Control KazMunaiGas to co-operate Committee Grigory Veremko told media on 14 February, BelTA reported. “Belarus-Russia economic integration in the Customs Union and the Single Economic Space requires close collaborati- By Kulpash Konyrova on between the financial watchdogs, an adequate response to cri- ASTANA - Three oil producers of the mes in the economic sector. We see common ground for enhan- Customs Union have agreed on mutu- cing the efficiency of our work here,” Veremko said. al co-operation within the framework of the project Soyuznefteotdacha. The project aims to ensure the scientific and BELARUS|TRADE production potential of the Russian Za- rubezhneft, Belarusian Belorusneft and Surplus in trade in goods Kazakhstan KazMunaiGas to achieve In 2012 Belarus posted a $100 million surplus in foreign trade in the main goal of all the oil companies in goods for the first time in the past decade, Deputy Foreign Minis- the world - increasing oil production. ter of Belarus Alexander Gurianov told a session of the Council The initiative to create the project of Ministers of Belarus on 13 February. Some important changes Soyuznefteotdacha belongs to the Bela- took place in foreign trade in 2012. They became a springboard rusian and Russian companies. Last for the further growth. We reached a balance in commodity tra- spring, they invited KazMunaiGas to de by means of a faster expansion of export compared to import. form a consortium within the Eurasian A worker turns a valve at the first pump station on Belarus territory of the Druzhba Thanks to that, we reached an over $100 million surplus in foreign pipeline, near the village of Bobovichi, about 330 kilometres southeast of Minsk. |EPA/ Union. Kazakh Company has given its trade in goods for the first time in the last decade,” Gurianov said. ANDREI LIANKEVICH consent, as the company sees only bene- fits from such co-operation. of actual integration of oil companies wi- collapse of Soviet Union Zarubezhneft “We have no doubt that we will get thin the SES,” Iskaziyev said. remained in these projects, and acquired BELARUS|LOANS a positive effect by utilising scientific Moreover, Soyuznefteotdacha pro- some new ones. and industrial potential of experts from ject is open for other oil companies and Belorusneft was established in 1966 EBRD to present strategy all three countries – Kazakhstan, Russia enterprises interested in new oil produc- and specialises in the oil field explorati- The European Bank for Reconstruction and Development and Belarus to bring in advanced tech- tion technologies. The first meeting of on and development, production of cru- (EBRD) completed the public discussion of the new country nologies,” said the Deputy Chairman of the companies’ joint working team took de oil and oil-associated gas, and is enga- strategy for Belarus for 2013-2016 and is preparing to present it the Board of Directors on geology and place in mid-January. The parties have ged in give and take supplies of foreign in late February - early March, BelTA quoted the EBRD Office in advanced projects of JSC NC KazMu- defined main operational principles of oil to Belarusian refineries. Minsk as saying. According to the head of the office, Francis De- naiGas, Kurmangazy Iskaziyev. the project members such as freedom of KazMunaiGas is the owner of 44 oil laey, the draft was published on the EBRD Internet site. The bank According to him, given that the the rights of the parties and the joint im- and gas onshore fields in Mangistau and received a number of comments from shareholders and civil so- oil reserves in the developing fields in plementation of the common projects. Atyrau region. The total area of fields is ciety, which will be taken into account in the final version of the all three countries are dropping off, the Zarubezhneft was established by the 837,4 square kilometres. The key pro- strategy. Delaey said the EBRD's strategy for Belarus will still be ai- issue of the application of the methods Soviet government for field develop- duction units of the company are in ope- med at providing the support for development of the private sec- to enhance oil recovery is now very re- ment in the friendly countries. In parti- ration more than 90 years, and company tor through investment in private equity across all sectors of the levant. cular, this company received contracts experts have in-depth knowledge and economy, strengthening the mediation cooperation with banks "At the same time - this is an example in Vietnam, Cuba and India. After the experience. for the financing of small and medium-sized businesses, financing of commercial projects. UKRAINE|NUCLEAR

BELARUS|PRIVATISATION Section of roof at Chernobyl collapses after snowfall failed reactor was unaffected, officials said, Minsk expects to raise $5bn but around 80 construction workers were Belarus has compiled a list of 103 companies which assets will be moved away. transferred into private ownership. The sale of these assets is ex- The 1986 explosion and reactor melt- pected to raise $5 billion, Chairman of the State Property Com- down at Chernobyl was the world's worst- mittee of Belarus Georgy Kuznetsov told a session of the Coun- ever nuclear accident. cil of Ministers of Belarus on 13 February, BelTA reported. Kuz- "There are no changes in the radiation netsov emphasised that the state should keep the controlling sta- situation at the Chernobyl nuclear power ke at these companies. “We suggest selling 10% to 25% of shares plant or in the exclusion zone," Chernobyl's of these important companies; the state should maintain control administrators said in a statement. A huge over them,” he said. As for smaller companies, 100% of their sha- new containment structure is currently res might be available for sale. being built to slide over the reactor, amid concerns about the long-term viability of the existing encasement. The concrete MOLDOVA|POLITICS shell is being built by French construction companies and funded by the European Early elections likely A section of the Chernobyl nuclear power plant collapsed on 12 February under the Bank for Reconstruction and Develop- According to Ion Sturza, former Prime Minister of Moldova, the weight of snow. |AFP PHOTO/UKRAINIAN STATE INSPECTION FOR NUCLEAR REGULATION ment (EBRD), as well as other donors. four parliamentary-presented parties in Moldova already begun On 13 February, Ukrainian officials said hall at the fourth power block collapsed Chernobyl is only around 100 kilome- with the preparations for the early elections in the country, Neza- radiation levels were unaffected at Cher- on 12 February, Chernobyl plant spokes- tres from Kiev and lies close to the borders visimaya Moldova reported. “The investigation of the death of nobyl and there was no safety threat after a woman Maya Rudenko said. The collapse with Russia and Belarus. The area around Sorin Paciu, who was mortally wounded during hunting, is badly partial roof collapse at the exploded nucle- was caused by heavy snowfall, emergency the plant is still very contaminated and conducted. The investigation resembles a soap opera for house- ar power plant. authorities said. is designated as a depopulated exclusion wives. The main goal and purpose of all this is the preparation for A section of the roof over the turbine The sarcophagus used to seal off the zone. the early elections to be launched,” Sturza said. NEWEUROPE 30 www.neurope.eu EURASIA 17 - 23 February, 2013

UZBEKISTAN | ENERGY KAZAKHSTAN |ENERGY Shipping gas to Tajikistan According to an official source at the Ministry of Energy and Industries (MoEI), Tajikistan is still continuing negotiations Looking wider for energy resources with Uzbekistan on natural gas shipments for this year, Asia- At a recent government meeting in Asta- Plus reported. The talks were being carried out at the level of na, Kazakhstan Minister of Industry and foreign ministries and relevant agencies of the two countries, New Technologies Asset Issekeshev said without yielding many results. Last December Tajik Prime that technologies for production of com- Minister Oqil Oqilov in a letter to Uzbek counterpart Shavkat ponents for development of green energy Mirziyayev had appealed for help to help solve the natural gas are going to be introduced in Kazakhstan, shipment problem. The Tajik premier had mentioned in the Gazeta.kz reported. letter that the country’s annual requirements in natural gas are He said that Kazakhstan will generate 200 million cubic meters. Uzbek natural gas prices vary quar- 1,040 MW of renewable power capacity terly depending on the world trends and Tajikistan must make in 2020. In accordance with the govern- prepayments every ten days.In 2010, an average price of 1,000 ment-adopted plan,Kazakhstan expect cubic meters of Uzbek natural gas for Tajikistan was $240.00; to generate 1,040 MW capacity in 2020 in the first quarter of 2010, the price of 1,000 cubic meters of including 793 MW generated by 13 wind Uzbek gas was US$231.00 and in the fourth quarter it increa- power mills; 170 MW by 14 hydroelectric sed to $254.00. Last year, an average price for 1000 cubic me- power plants and 77 MW by 4 solar power ters of Uzbek gas in Tajikistan was $300.00. plants. In the near future, Kazakhstan plans to generate more megawatts from renew- able sources, added the minister."We will TURKMENISTAN | BILATERAL AFFAIRS support local innovators within the goal of developing innovations. As we said at the Keen to develop ties with Iran technological policy council, 75 critical Wind turbines at sunse. Astana is looking to increase renewable energy ahead of the Addressing a ceremony in Ashgabat to mark the 34th anniver- technologies had been defined at a scien- EXPO 2017.|EPA/HORACIO VILLALOBOS sary of the victory of the Islamic Revolution in Iran (1979), tific-technological foresight meeting. 23 of should have also operated on green ener- the totaled demand in 2020. Turkmen Foreign Minister Rasit Meredow said that his coun- them are green energy technologies which gy. On instructions by the Head of State, Currently, some regions of the country try intends to increase ties with Iran, Turkmenistan.ru repor- include production of thermal elements, the Government is currently discussing are actively implementing the develop- ted. He underlined that Ashgabat is determined to further de- solar cells, wind generators using airflow the concept of power development up to ment of alternative energy, following a cor- velop and improve the quality of all-out relations with Iran concentrators, new generation batteries, 2030, the concept of development of the responding project advanced by the Go- in the future. The minister noted that the leaders of the two technology of small units working on all fuel and energy sector and the strategy of vernment. Wind turbines and solar panels countries have assigned important responsibilities to further fuel types and many other things,” said the green economy. can be found in Astana and the Akmola re- develop and expand relations and cooperation between Iran Issekeshev. He mentioned that the country The government will be considering gion, while five small hydro power stations andTurkmenistan. Meredow said Tehran and Ashgabat have already have 17 projects in alternative en- their main provisions this summer. The are now in operation on the mountain ri- implemented abundant projects in the oil, gas, energy, electri- ergy which has garnered grants and other government's action plan for the develop- vers near the city of Almaty. Isekeshev said city, economic, water, road-building, railway and other sectors state support and cover solar and wind en- ment of renewable energy for 2013-2020 that Samruk-Energo plans this year to start in the past 20 years, which shows the growing trend of the bi- ergy technologies. years envisages that the renewable power the construction of a 45-MW Ereymentau lateral relations between the two countries. Iran attaches great The Prime Minister Serik Akhme- consumption in 2014 will account for 1% wind farm that is projected to supply po- importance to its strategic ties with Turkmenistan due to the tov added that all facilities of Expo 2017 of the total consumption and cover 3% of wer to EXPO-2017 venues. country's strategic position in the Central Asia.Iranian Am- bassador to Ashgabat Seyed Mohammad Moussa Hashemi TURKMENISTAN |RUSSIAN RELATIONS Golpayegani said Iranian and Turkmen officials are eager to further expand the two countries' bilateral relations in all fields. Russia-Turkmen bilateral trade improves Russian Deputy Prime Minister Arkady of a constructive dialogue with Russia is The sides agreed that the fuel and en- KAZAKHSTAN | BANKING Dvorkovich who co-chairs the Russian- a strategic priority of Turkmenistan's fo- ergy sector, which is traditionally part of Turkmen intergovernmental commissi- reign policy, aimed at mutually beneficial the Turkmen-Russian strategic partner- Korean inks MoU on recently visited Ashgabat to meet his international cooperation in the interest ship, as well as engineering, agriculture A delegation of the Financial Supervision Commission of the Turkmen counterpart Rashid Meredov, of peace, global security and sustainable and a number of other industries will re- Republic of Korea headed by Kim Seok-dong recently paid a Turkmenistan.ru reported. The guest was development. The parties noted oppor- main the priority areas of partnership. visit to Almaty to meet representatives of the National bank of received by President ofTurkmenistan tunities for building up a long-term pro- The Russian minister said that in post Kazakhstan together with its chairman Grigory Marchenko, Gurbanguly Berdimuhamedov. ductive partnership as proved in the con- global economic crisis era, trade between Gazeta.kz reported. The bilateral meeting was organised to The guest conveyed greetings from tinued high pace of development of trade Russia and Turkmenistan has recovered. sign a memorandum on mutual understanding between the Russian President Vladimir Putin and and economic relations, steady growth “Trade has reached the level we achieved National Bank of Kazakhstan and the Financial Supervision Prime Minister Dmitry Medvedev to in trade, particularly high technology before the crisis. We have built up both ex- Commission of the Republic of Korea in financial supervisi- Turkmen President. In turn, Turkmen products, implementation of major joint ports and imports, which means that our on field. It was reported that both sides had ratified the me- Head thanked the guest for his kind projects and expansion of humanitarian cooperation is mutually advantageous,” morandum for cooperation in supervision of financial orga- words and underlined that development cooperation. Dvorkovich said. nizations and its trans-regional subsidiaries, exchange of in- formation about the state of affairs at the financial market and UZBEKISTAN | ENERGY main norms and requirements in the area of financial super- vision between the two countries. Marchenko considers the ratification of the document as crucial. Noting good relations China'sChinese Suntech Power Holdingsfirm plans to to thebuild joint venture Uzbekup in the Navoiy freesolar in- stan andpanel has also enticed factory other foreign between Korea and Kazakhstan, he said that last month invest- construct a solar panel factory in Uzbeki- dustrial and economic zone, the ministry investors. A new solar research institute in ments from Korea to Kazakhstan equaled to almost $1.6 billi- stan in order to manufacture photovoltaic said in a statement. A spokesperson for February 2012 is launched by Tashkent, on and investments from Kazakhstan to Korea equals to $2.6 modules for the Uzbek market and neigh- Suntech said that since the memorandum in cooperation with the Asia Develop- billion. The trade turnover between the two countries is soa- boring countries, Uzbekreport.com learnt of understanding is for future collaborati- ment Bank (ADB), the bank said.2 GW ring and an improvement of relations in this area is also expec- from the Uzbek economics ministry. An on, no further details were disclosed. Ho- solar-based electric power plants have been ted. Kim Seok-Dong, Chairman, Korea Financial services said investment worth $10 million is estimated wever it was reported that Uzbekistan is constructed by Uzbekistan, which are fi- that during 21 years after the establishment of diplomatic re- for the project. Suntech and Uzbekistan's looking to diversify its energy sources away nanced by Uzbenergo and loans from the lations between the two countries, achievements were in the state energy company Uzbekenergo, signed from traditional energy sources. ADB and other international financial or- financial sector and the economy. a memorandum of understanding to set up Huge Investments are made by Uzbeki- ganisations. NEWEUROPE www.neurope.eu 31 17 - 23 February, 2013 RUSSIA

RUSSIA|CORRUPTION RUSSIA|OECD Russia pushes for Russia’s Putin’s ban on officials’ foreign OECD membership On 14 February, Russia’s President Vladimir Putin said he hoped Russia would soon be able to join the Organisation bank accounts hard to implement for Economic Cooperation and Development (OECD). By Kostis Geropoulos “We hope that this gets done some day,” Putin said at a meeting in the Kremlin with Angel Gurria, secretary gene- On 12 February, Russian President Vladi- ral of the OECD, a Paris-based club of rich economies. Pu- mir Putin, in an attempt to crack down on tin thanked Gurria for his organisation lending a helping corruption, submitted a bill that would ban hand to Russia ahead of the G-20 summit, scheduled for Russian Cabinet members and other senior September 2013 in Saint Petersburg. The Kremlin leader officials from having foreign bank accounts expressed hope that Moscow and the OECD will conti- and owning foreign stock. The proposal nue to co-operate on a spate of problems pertaining to the also applies to the officials‘ wives and un- world economy. derage children. Some analysts, however, say this will be very difficult to implement. Putin first mentioned the move in his RUSSIA|NGOs state-of-the nation address in December, casting it as part of efforts to make officials Putin: NGOs mustn‘t accountable to the public. „How can you trust an official or a politician who rants meddle in internal affairs about Russia‘s benefit but tries to keep his On 14 February, Russian President Vladimir Putin war- Russia’s President Vladimir Putin has submitted a bill that would ban Russian senior money abroad?“ he said in the speech. ned foreign-funded organisations against “meddling” in officials from having foreign bank accounts. |AFP PHOTO/RIA-NOVOSTI/POOL/ALEXEY DRUZHININ If the proposed law comes into effect, the country‘s affairs. Russia last year passed a law requiring civil servants will be given three months to implement,” she said, adding that it’s un- home is to announce a tax amnesty. But she all such non-governmental organisations to register as “fo- get rid of their foreign savings and stocks. clear what the penalties will be. “But this warned that if Russia will stop capital out- reign agents”. In his speech to the board of the intelligence Those who fail to do so will lose their jobs. can be used as pretext to put pressure on flow, it would generate capital inflows as the agency FSB, successor to the KGB, Putin on 14 February According to the document, the main some officials.” depreciation will be so dramatic that eco- defended the bill, saying that Moscow won‘t tolerate “any objective of the legislation is to provide The dismissal of Anatoly Serdyukov, nomic growth will evaporate very quickly. meddling in our internal affairs, any forms of pressure on Russia’s national security, increase invest- the minister of defence, in November over “The Russian economy will not grow be- Russia”. “No one has the monopoly of speaking on the be- ments into the country’s economy and corruption allegations has started discus- cause you cannot grow when your ruble is half of the entire Russian society - let alone the organiza- make the fight against corruption more ef- sions about controlling offshore bank ac- too strong. Economically speaking, capital tions which are run (by foreigners) and funded by foreign ficient. counts. “I think there is an overall will to outflow is a very nice way to allow Russia to resources, which means they cannot help serving foreign Asked how it would affect foreign in- increase the transparency of the economy,” ease comfortably the pressure of competi- interests,”he said. Putin, who won a third presidential term vestment in Russia, Natalya Orlova, chief Orlova said. tive depreciation abroad,” Orlova said. in a vote last March, has taken a tough posture toward the economist at Russia‘s Alfa Bank, told New In addition to controlling state officials, “Russia is allowing the capital to flow United States, accusing Washington of fomenting protests Europe on 13 February that the move is the Kremlin also needs to reinforce some away. This is easing the pressure on the ru- against his rule in order to weaken Russia. part of the anti-corruption campaign so laws in the financial sector, the Alfa Bank ble exchange rate. At the moment it’s not a potentially this is probably positive sign for chief economist said. good time to think about tax amnesty - of investors because it means better control of Putin is unhappy about the offshore inviting capital back. This is additional ar- RUSSIA|ECONOMY state officials. transactions but it’s very hard in all cases to gument to doubt this agenda, the anti-cor- “In the meantime, it’s very hard to ima- imagine how concretely the law will be im- ruption campaign and the will to control Shadow economy down gine how this will be implemented,” Orlo- plemented, Orlova said. account transactions will be implemented va said. “I think it is very vague. Internally, She said the official way for the govern- because economically it’s not a good time,” to 35% of GDP in 2011 there’s a feeling that it will be quite hard to ment to make Russians bring their money Orlova said. The volume of Russia’s black economy decreased from an average 46% of GDP prior to 2011 to 35% in 2011. This RUSSIA|ENERGY led to over $211 billion of illicit money fleeing Russia in 1994-2011, according to US financial watchdog Global Financial Integrity (GFI). “Russia has a severe problem with illegal flows of money. Hundreds of billions of dollars Sechin asks PutinOn 13 February, for Russianbroader President Vla- LNGplans to sell gas fromrights their Pacific oil pro- have been lost that could have been used to invest in Rus- dimir Putin faced open pressure from ject, Sakhalin-1. sian healthcare, education, and infrastructure. At the same Russian oil giant Rosneft’s head Igor Se- Putin said earlier on 13 February the time, more than a half trillion dollars has illegally flowed chin – a close ally - to allow offshore gas Russian government should consider a into the Russian underground economy, fueling crime and producers to export liquefied natural gas gradual liberalisation of LNG exports. corruption,” GFI Director Raymond Baker said. Accor- (LNG) by ending Gazprom‘s monopoly Under existing legislation, Gazprom has ding to the World Bank, Russia’s shadow economy is 3.5 of foreign gas sales. a monopoly on gas exports and other times bigger than in other G7 countries. “Such volumes cannot be sold on the producer companies are obliged to sign domestic market and so we are asking export contracts with Gazprom struc- the government to consider liberalising tures. Russia’s largest independent gas RUSSIA|SPACE gas exports, in particular, liquefied gas,” producer Novatek has previously ap- Sechin told the presidential commission pealed to the government to consider Meteor shower injures for development of the fuel and energy ending Gazprom’s monopoly on LNG sector. “If we do not take a share of the- exports. hundreds, sparks panic se markets, others will.” Sechin said LNG market liberalisa- The Russian Academy of Sciences is estimating the mete- Russian oil giant Rosneft CEO Igor With Putin presiding, Sechin and tion would not immediately affect Gaz- or that streaked into the skies over the Ural Mountains and Sechin, right, and ExxonMobil Explo- the head of the exploration division at prom because Russian LNG exports in caused shock waves that injured more than 500 people weig- ration Company President Stephen ExxonMobil also signed agreements the near future are primarily destined for hed about 10 tonnes. The academy said in a statement hours Greenlee leave the podium after a sign- expanding co-operation with Rosneft, emerging markets, including the Asia Pa- after the morning fall on 15 February that the meteor entered ing ceremony at the Novo-Ogaryovo state residence outside Moscow, 13 Feb- including a study of a possible plant as cific nations, and not Gazprom’s existing the Earth‘s atmosphere at a speed of at least 54,000 kilometres ruary 2013. |AFP PHOTO/POOL/SERGEI KARPUKHIN a possible means of kick-starting stalled customers in Europe. per hour and shattered about 30-50 kilometres above ground. 32 NEWEUROPE Once upon a time in a supermarket 17 - 23 February, 2013 There is something about the outside of a horse that is good for the inside of a man. ~Winston Churchill [email protected] KASSANDRA Follow me on twitter @Kassandra_NE

ne of the great-unanswered politi- Silvio Berlusconi together with Beppe Grillo, Berlusconical questions of our time is a simple can possibly form in the next Italian to Parliament bounce back one; what does Silvio Berlusconi the majority necessary to withdraw from the Ohave to do for the European People’s Party to Euro. In the case that Italy withdraws from Euro, say “Enough”? of course, we can certainly kiss goodbye to the At what point does his behavior become common currency. From there on, as to the fu- incompatible with the values of Europe’s Chri- ture of Europe, sky is the limit. stian Democrats? Would that be enough for the EPP to say As we can see, they still proudly feature a ‘Enough’ or would they congratulate themselves grinning Berlusconi on their website, so he’s still on the return of another member of their family. on the team. Of course, there’s going to be another lea- Clearly, spending Holocaust Memorial Day dership election in Italy after Pope Benedict re- praising fascist dictators is something the pious nounced the Papacy for Lent. EPP can live with. To save space and readers’ The resignation came as a surprise. What time, we won’t parade the long list of previous, could make a Pontiff quit; something that hasn’t and in some cases, ongoing sexual issues. happened for 600 years? We may find out where the limit of the EPP’s Well there are a couple of things. We’ve just patience lies in the next few weeks, especially if had the case of the Pope’s butler, imprisoned Berlusconi returns, in one way or another, with inside the Vatican after leaking confidential a central role in the Italian political making. documents that appeared to show corruption It is very possible that Berlusconi will come and intrigue inside the Vatican. The other is the out of the Italian election, if not quite the win- many cases of sexual abuse in the church, which ner, then the king maker and he would find no is leading to some ominous court cases, notably greater pleasure than arranging his own coro- in the US. fects of old age, but perhaps there is a simpler ex- readers the dialogue between Benito Mussolini nation. He’s a bit more bling than your average Investigations are opened, closed and planation, as so far, and for some two thousand after the notorious “march on Rome” with the EPP Premier. sometimes re-opened and allegations that the years most Popes die of old age. then Pope. The subject was the “authorities” The prospect of a return to power for Ber- Vatican’s Congregation for the Doctrine of the We do not wish to enter into the details of Church and State and Mussolini set well the lusconi would cause the most profound con- Faith did not, at the time, take abuse cases seri- of the deeper thoughts of Silvio Berlusconi as separation line between the two telling to the cern, especially when it would risk the Eurozo- ously enough, are beginning to surface. to his future relations with the Vatican, as the Pope, “You take care of the souls and I will take ne recovery and possibly the Euro itself. Indeed The resignation is being put down to the ef- human psyche is an abyss, but will remind our care of the bodies.”

ADVERTISEMENT UKIP accuse Bilderberg of being behind pro-EU groups

The highly secretive group’s webiste lists meetings, attendees, agenda and so on

The Centre for British Influence in Europe, “Is the Centre for British Influence a front for the founded by Peter Wilding, ex Sky and Cabinet Bilderberg Group?” he asks on his website. DN, has had a relaunch and is beginning to make He notes that, according to a single newspaper waves for the pro-Europe Brits. Yes, there are qui- article, that Colarke and the former Trade Com- te a few of these, as Rabbie Burns would say, ‘ti- missioner are heavily involved in the organiza- morous beasties.’ tion. He continues, “The Bilderberg Group has The new group has started hosting events and met annually since 1954 and brings together the has quickly gained a reputation for some pro- world’s political, business and academic leaders, Europe big hitters, such as Ken Clarke and Pe- to discuss we know not what because they refuse ter Mandelson. to reveal their agenda. These meetings of the po- Some might think that this is simply a group of werful go almost unreported in the mass media people wanting to counter a vocal Euroscepticism and have only come to be known to the general in the UK. public through the internet. ” UKIP MEP Gerard Batten has another theory. Ah. The internet.