VOL. 1 NO. 4 WEDNESDAY, MAY 13, 2015 POLITICO.EU The five DGs lobbyists love most People who want to influence legislation are heading right to the policy wonks

By JAMES PANICHI in charge of important dossiers, can meet only with people and “I have a better conscience,” ists, industry groups and NGOs and QUENTIN ARIÈS manage large bureaucracies and organizations listed on the EU said Jos Delbeke, the director- are still choosing to meet with have the ear of their commis- Transparency Register. general for climate action, of the the EU’s top public servants, de- It’s a move right out of EU Lob- sioners. The new rules also require new accountability. “We need spite the new scrutiny. bying for Dummies: If you need But these top staf ers are not that directors-general disclose order in the lobbying business Here, we look at fi ve infl uen- to infl uence a piece of legislation, allowed to meet with just any- publicly the meetings they have in this town.” tial directors-general who are you set up face-time with the Eu- one. Under new transparency with lobbyists — just as commis- The openness means lobby- taking the most meetings with ropean Commission director- rules introduced by Commission sioners and their staf must do. ists have to consider the strate- lobbyists, according to their web- general in charge of the issue. President Jean-Claude Juncker It is now possible, by checking gic value of a sit-down with a top sites. The list is ranked in order The Commission’s 32 direc- in December, departmental the public websites of the vari- director-general when the dis- of most lobbyists met since De- tors-general have the full skill chiefs have to follow the same ous departments, to see who is closure will let everyone in town cember 1, 2014. set: They are policy wonks with rules that commissioners do meeting with which lobbyists know about it. But hundreds of strong political instincts who are when it comes to lobbyists: They and when. Europe’s most infl uential lobby- LOBBYING: PAGE 5

A lot of noise on the A girl named Courage eastern front Migrants rescued from Mediterranean waters arrive at the Sicilian port of Augusta. POLITICO prof les one young woman, 17-year-old Courage Odafeh Loren, who survived the journey Russian threat from Libya to European shores. MARE NOSTRUM: PAGE 12 forces Poland and Baltics to rearm

By JAN CIENSKI and LINDA KINSTLER

TALLINN — At Estonia’s Tapa military base, Lieutenant Colo- nel Aron Kalmus spends much of his time dealing with the rotation of US troops bringing tanks, armored personnel car- riers and training skills to boost his country’s tiny army. The Bal- tic countries, with no proper air forces of their own, also rely on their NATO allies to patrol their skies. But trusting in foreign military muscle is being seen as increasingly dangerous in an era of hybrid warfare, and countries across the region are beefi ng up their own defense spending. With western Europe reluc- tant to permanently base troops in the region, the Baltic coun- JURE ER JURE tries, and even regional powers like Poland, are increasingly re- Ž EN/DELO lying on their own resources —

DEFENSE: PAGE 20

PLAYBOOK PLUS Europe’s chief operating officer Who’s up and who’s down on the continent? Ryan Heath and Kristalina Georgieva wants to change how the EU works — or doesn’t work Tara Palmeri have the answer PAGE 3

By RYAN HEATH another person working a more years of cynicism about how the built a reputation as a tough ad- nuts-and-bolts approach to re- EU spends money. ministrator. The six-month-old Juncker Com- form. Vice President Kristalina She is shaping a new role fo- “Every job I took I would re- TECHNOLOGY mission has promised a new way Georgieva is hoping to reverse cused on changing the way the vamp it, restructure it and leave,” of running the EU — one more EU functions internally rather Georgieva told POLITICO in an Why competition commissioner accountable to voters and more than the legislation it adopts. She interview. “Fifteen years later it Margrethe Vestager gives telecoms streamlined in its approach to is ef ectively the EU’s chief oper- is still running pretty much the deals a close look PAGE 7 regulation. Everything is sup- ating of cer. same.” posed to be “smarter and better.” In a career spanning low-paid That one of the most capable But while conventional Brus- academic work behind the Iron and reform-minded members of sels wisdom is preoccupied with Curtain in her native Bulgaria, the current Commission comes FORUM the European Commission’s all- to managing 186 national in- from one of Europe’s most no- ISSN 2406-5250 powerful fi rst vice president, terests as vice president of the toriously corrupt states is espe- British elections: Why the Queen Frans Timmermans, as the point World Bank, to running the EU’s cially notable. is less inclined to retire than ever man in the war on over-regu- Kristalina Georgieva is changing humanitarian aid agency in the before PAGE 14 lation and over-reach, there’s the way the EU functions EPA last Commission, Georgieva has GEORGIEVA: PAGE 21 A yearlong series examining the politics and issues driving today’s energy and climate conversation in Europe.

DRIVING THE ENERGY TRANSITION: LAUNCH EVENT WHAT ROLE FOR THE CARBON PRICE?

JUNE 2 DOORS AT 6:00 P.M. SPEAKERS INCLUDE:

POLAK ROOM MAROŠ ŠEFČOVIČ RESIDENCE PALACE European Commission Vice President for Energy Union CONTINUE THE CONVERSATION AT: JOHN ABBOTT @ENERGYVISIONSEU Downstream Director and Member @EVENTSPOLITICO of the Executive Committee, Royal Dutch Shell

RSVP: IVO BELET WWW.POLITICO.EU/CARBONPRICE MEP, Member of the Environment, Public Health and Food Safety Committee

MARCIN KOROLEC Secretary of State, Ministry of the Environment, Poland

Presented by POLITICO WEDNESDAY, MAY 13, 2015 3

PLAYBOOKPLUS

By Ryan Heath and Tara Palmeri

COIN of the EU realm +++ Parliament’s LOGO rhythm +++ COMMISSIONER (low talker)

EVERY VOTE COUNTS: Conser- ing without a Parliamentary too shy to confront him, but vative Glyn Davies, from Mont- WAS VAROUFAKIS’S WIFE THE INSPIRATION FOR PULP’S SONG Pass if you don’t have some other with the stakes in his portfo- gomeryshire in Wales, is pleased “COMMON PEOPLE”? Tantalizing facts match. Like the char- pass or invitation AND your lio this high, Playbook wonders to have won re-election to the acter in the song, Danae Stratou is Greek, rich, and studied passport or ID card. At the Com- what’s the price of a little UK House of Commons — with sculpture at Central Saint Martins college … at the same time mission, just bring your pass. At embarrassment? the help of some phallic graf- as Jarvis Cocker, the musician who wrote the song about a rich the Council, just get someone to fi ti by a voter. The MP wrote on student who disdained him. But another Greek artist claims to vouch for you if you forget it all SOMETHING’S ROTTEN IN THE Facebook: “One voter decided be the real inspiration. or never registered in the fi rst STATE OF GREAT BRITAIN: A foul to draw a detailed representa- place! smell has been wafting through tion of a penis instead of a cross fl oor 70 of the Justus Lip- in my box on one ballot paper. WE HEAR: Party groups at the sius building and some say it’s Amazingly, because it was neatly Parliament are getting around coming from the old rugs in the drawn within the confi nes of the strict new rules on orga- British o ces. “The building as a the box, the returning o cer nizing events. The idea was to whole just always has and proba- deemed it a valid vote. Not sure reduce the security risk; the bly always will have a slight reek the artist meant it to count, but I e ect was just to annoy every- of cigars and whiskey from the am grateful.” one. Now that individual MEPs really old days,” a spry observer have been told they can’t orga- noted. It’s time for some spring COIN COMPETITION: Yes, citi- nize events, they just do exactly cleaning UK. New government, zens, while you may not have any what they intended but under new rugs! control over whether you pay their party’s name instead. for a Greek bailout, don’t worry! TOUGH COOKIE WINS Instead, you get the chance to WE SEE: The suspiciously JUNCKER’S HEART: Kudos vote for which design you want wrinkle-free forehead of David to Commission spokesperson on the next €1 coin. Surf to: Cameron splashed everywhere Natasha Bertaud for not miss- www.coin-competition.eu after a sleepless night. Why all ing a beat on the migration cri- the crow’s feet but perfectly fl at sis while sporting a conspicu-

STATISTIC OF THE WEEK: GETTY forehead? ous pink cast on her left wrist. European policymakers love She broke the bone in a nasty to defend the “European WHICH DISH: Which commis- fall while roller-blading. Com- Social Model” — often billed as sioner in Brussels is such a “low mission President Jean-Claude the world’s best social safety talker” that some of his sta Juncker is the only person who net. Not for everyone it seems. Parliament, together with the institutions all apply di erent are worried they will misunder- has signed the cast. He scribbled Médecins du Monde (Doctors accompanying graphical rules conditions for gaining access to stand his mumbling? (Was that his name with a big heart. of the World) says 95 percent of for its use, was designed and de- their buildings. At the Parlia- millions or billions you said, pregnant women who presented veloped entirely using internal ment don’t even think of enter- Mr. Commissioner?). They’re PRICEY DIGS: The EU’s foreign to a Doctors of the World clinic resources, with the help of the service arm leases one of the in Belgium had no health care Publications O ce of the Euro- most expensive properties in the coverage. The European average pean Union. No specifi c budget EU zone, according to market is 81.1 percent. was therefore needed for this research data. The European process.” What she means is no WHO’S UP, WHO’S DOWN External Action Service recent- PHRASE OF THE WEEK: “Taking extra budget was needed. When ly leased a property at Rond- stock” — a personal favorite of 12 the Commission changed its logo Point Schuman 6 for €275 fi nance ministers at this week’s in 2012 it spent around €125,000 per square meter, higher than Eurogroup meeting in Brussels. on the design alone. others are paying in the Commissioner Pierre Moscovici  neighborhood. is especially keen. He wants to BUT WAIT, THERE’S MORE ...  “take stock” of even “substantial Lahousse does, however, David Cameron (pictured) Election pollsters — they all got 140 CHARACTERS OF progress.” concede that the Parliament’s and Nicola Sturgeon — they’ve it wrong in the UK, sparking a BRILLIANCE: “I wonder why o cials authorized spending won their election battles, but collective global depression @pierremoscovici decides to €120,000 “specifi cally for the now they’ll have to win their amongst psephologists. speak about Greece in French physical replacement of the logo constitutional wars and Cyprus in English, but in places of high public visibility, Ed Miliband and Nigel Farage. #Eurogroup famously lacks essentially buildings, the plena- Peace — this week we’ve transparency” — James Kanter ry chambers and press confer- celebrated 70 years since the Russell Brand (pictured) — for of the International New York ence rooms.” Look out for that end of World War II in Europe, rst announcing that he wouldn’t Times @jameskanter logo! and 65 years since the Schuman be endorsing a candidate in the Declaration, which led to creation UK elections and then putting his WORK-LIFE IMBALANCE: Want to EUROVISION TRAFFIC LIGHTS: of the EU. money on Miliband, who then lost. work for Tesla? Well, don’t think Inspired by Conchita Wurst, the birth of your fi rst-born is a 2014 Eurovision winner and Greece — who made good on its Hungary — which may have to good enough excuse to get the boundary breaker, Vienna’s traf- promise and actually paid the take in refugees who cross the day o . Tesla founder Elon Musk fi c lights are getting a makeover International Monetary Fund back Mediterranean from Africa under sassed an employee for skipping ahead of the annual Eurovi- €750 million back on Monday, one the Commission’s new migration a work day to see the birth of his GETTY sion Song Contest. They now day early. Only about €25 billion plan a er prime minister Viktor child. According to an upcoming feature same-sex couples, and more to go. Step by Orbán said he would ercely biography of the entrepreneur, PARLIAMENT’S NEW LOGO: love hearts, instead of red and step. defend its Musk said: “That is no excuse. I The Parliament’s director- green men. borders. am extremely disappointed. You general of communication, need to fi gure out where your Juana Lahousse, explained to WE SEE: That despite having a priorities are. We’re changing MEP Christofer Fjellner (in an shared accreditation system and the world and changing history, email seen by Playbook) that being under the same level of and you either commit or you “the new logo of the European security alert, the three big EU don’t.” GETTY GETTY

[email protected] +++ @POLITICORyan +++++++++ [email protected] +++ @tarapalmeri Go to Politico.eu to sign up for Ryan’s must-read daily briefing on what’s driving the day in Brussels POLITICO 4 WEDNESDAY, MAY 13, 2015 News Greece pays IMF but gets no bailout cash A repayment has bailout and avoid a catastrophe. “There is no time to be lost,” been made, but Pierre Moscovici, the European commissioner for economic and the question now financial affairs, said after the eurozone meeting. is just how much The problem is that the po- litical and financial calendars time is left before aren’t meshing. “I don’t think it’s realistic to expect a deal on a Greece runs out new program for the end of June, not only because time is running of money out but also because there’s an intellectual divide between what By ZEKE TURNER the creditors want and what the Syriza government wants,” said The cash-strapped Greek govern- Miranda Xafa, a Greek economist ment made a €750 million repay- formerly on staff at the IMF and ment to the International Mone- a senior scholar at the Center for tary Fund this week, but the big International Governance In- question now is just how much novation. “I just cannot imagine money Greece has left to stave off the radical left Syriza govern- a default that would throw both ment restarting privatizations the heavily indebted country and making a dedicated push to and the broader eurozone into make Greece an attractive place chaos. to invest.” The IMF payment didn’t signal A return to the That’s not good news. The a broader breakthrough in talks drachma hangs government has squeezed local with creditors; Greece made lit- over Greece. authorities and state firms for tle headway this week in getting GETTY cash, and there are questions finance ministers from the euro- over how it will handle the pay- zone area to release a final €7.2 ment of increasingly overdue billion tranche of a second bailout reform package, said eurozone ably,” but then pointed out his fakis have failed to finesse the invoices as well as salaries and package. negotiators. government has issues of social issue. pensions. Greece owes the IMF Eurozone finance ministers Those key reforms are exactly fairness it will not touch despite Polls now show that Greeks a further €6.9 billion and must issued a tepid joint statement the issue. Greece is being pressed outside pressure. “Red lines are becoming increasingly wor- roll over more than €11 billion of after the meeting citing a “more to tackle them, but the anti-aus- by necessity are inflexible,” he ried about their government’s short-term debt before mid-July. substantial discussion” but added terity Syriza government in Ath- said. hardball negotiating tactics, with The country faces further repay- that still “more time and effort ens seems ideologically incapable Those red lines come from only 54 percent backing the gov- ments, including €3 billion to the are needed to bridge the gaps on of making the required move- Syriza’s overwhelming electoral ernment’s strategy, down from 82 European Central Bank in July the remaining issues.” ment. That yawning gap was un- victory four months ago based on percent in February. and August. Changes to Greece’s pen- derlined by Greek Finance Min- a desire to overturn the austerity But while Tsipras weaves be- One estimate of just how much sion system and reform to the ister Yanis Varoufakis, who made policies agreed to by past Greek tween domestic and foreign po- time is left comes from Varou- country’s labor market haven’t nice by saying that differences governments. litical pressure, time is running fakis, who guessed Greece has “a reached sufficient clarity for the between Greece and its creditors But so far Greek Prime Min- out. Greece has until the end of couple of weeks” before facing a country to propose a concrete “have been narrowing consider- ister Alexis Tsipras and Varou- June to get the remainder of the liquidity crunch.

Some online traffic may be more equal than others

those in the Council and Com- the Parliament want all Inter- connected cars, e-health and access. “Telcos do not want Dispute over mission, according to a leaked net traffic to be treated equally, other “smart” devices and transparency into their traffic net neutrality draft obtained by POLITICO. barring exceptional circumstanc- services. management practices,” said As the three sides gathered for es. The conservatives, on the “It would jeopardize a well- Marietje Schaake, a Dutch MEP jeopardizes a deal meetings in Brussels this week, other side, want to revert to an functioning Internet with all the and ALDE member. “They want the debate over so-called net neu- earlier Council proposal that prescription and limitation,” said more freedom to manage traffic on mobile roaming trality threatened to erode their would allow “reasonable” dis- a top executive for a telecom com- how they want to, but it becomes surcharges progress on mobile phone roam- crimination based on service pany, who was not authorized to a slippery slope.” ing charges. type (video versus e-mail, for speak to the media. Neither side seems willing to MEPs from the Alliance of Lib- example). The Commission sits “The Parliament doesn’t budge. “The last group consen- By ZOYA SHEFTALOVICH erals and Democrats for Europe, in the middle of these warring understand how the Internet sus was that maybe it is better and RYAN HEATH the European Conservatives and parties. works … When I talk to my engi- to walk away than agree to a bad Reformists, and the Socialists If the left wins the fight, neers they say it’s simply not in compromise. We don’t want net The European Parliament’s latest & Democrats groups are threat- telecoms companies say there line with reality.” neutrality to be watered down,” compromise on Internet traffic ening to walk away from talks will be disastrous consequenc- If the Conservatives win, tele- said an ALDE insider, who was rules shows there is still a chasm on the telecoms single market. es, with Europe’s competitive- coms operators could have more not authorized to talk to the press between their negotiators and Those on the political left in ness held back in areas such as freedom to govern Internet and requested anonymity.

EXECUTIVE EDITORIAL POLITICO.eu Printed on recycled paper by: Corelio Printing, Follow us on Twitter Keerstraat 10, B-9420 Erpe-Mere, at the John F. Harris...... EDITOR IN CHIEF Carrie Budoff Brown...... MANAGING EDITOR coldset printing department of VUM – Groot- @POLITICOEurope Bijgaarden, Brussels. Matthew Kaminski...... EXECUTIVE EDITOR Florian Eder ...... MANAGING EDITOR, EXPANSION Send comments to © Politico. All rights reserved. Neither [email protected] Sheherazade Semsar de-Boisséson...... MANAGING DIRECTOR Bill Nichols...... EDITOR AT LARGE this publication nor any part of it may be CONTACTS: reproduced, stored in a retrieval system, Jan Cienski...... BUSINESS NEWS EDITOR, ENERGY Editorial: (+32) 02 540 9068 or transmitted in any form by any means, [email protected] electronic, mechanical, photocpoying, Gabriel Brotman ...... HEAD OF STRATEGY AND BUSINESS DEVELOPMENT Kim Dixon...... NEWS EDITOR, HEALTH Sales: (+32) 02 540 9073 recording or otherwise, without the the prior Bertrand Mougnaud...... CHIEF FINANCIAL OFFICER Noelle Knox...... NEWS EDITOR, TECHNOLOGY [email protected] permission of: Subscriptions: Dari Gessner...... EXECUTIVE DIRECTOR, POLITICO PRO Craig Winneker...... NEWS EDITOR (+32) 02 540 9098 POLITICO SPRL [email protected] Dénomination sociale: POLITICO SPRL Forme sociale: SPRL POLITICO SPRL a joint venture between POLITICO and Axel Springer Siège social: Rue de la Loi 155, 1040 Bruxelles BOARD MEMBERS: Ralph Büchi | Duncan L. Evans | Christoph Keese | Nina Ranke | Roy Schwartz | Jim VandeHei Numéro d’enterprise: 0526.900.436 RPM Bruxelles

Print subscription €199 (excluding VAT) for one year POLITICO Lobbying WEDNESDAY, MAY 13, 2015 5

BRUSSELS BUBBLE The five DGs lobbyists love most

1 2 3 4 5

ROBERT MADELIN DOMINIQUE RISTORI JOÃO AGUIAR DANIEL CALLEJA JOS DELBEKE DG Communications Networks, DG Energy MACHADO CRESPO DG Climate Action DG Internal Market, Industry, Content and Technology DG Mobility and Transport Entrepreneurship and SMEs

With 51 meetings with external French veteran Eurocrat Dom- Not many senior public ser- Now known as DG GROWTH, It’s hard to find a stronger sup- stakeholders logged since the inique Ristori is another of the vants can claim to have met this is one of the largest de- porter of the new transpar- new transparency measures most accessible directors-gen- representatives from Rolls- partments in the Commission ency rules than Jos Delbeke, were adopted, Robert Madelin eral in town, logging 45 meet- Royce the day after sitting because it has aggregated all the Belgian director-general of is the most popular director- ings with lobbyists since De- down with a delegation from internal market competences the department responsible for general in Brussels. cember 1, 2014. the European Cyclists’ Fed- of the institutions. Spaniard managing the EU’s response to This is hardly surprising. Ristori started working at eration. Yet that’s what João Daniel Calleja Crespo has been climate change. The 58-year-old Briton’s de- the Commission in 1978 and Aguiar Machado, a Portuguese the director-general since 2012 Delbeke, who reported hav- partment is responsible for the joined the energy department national, did in April with just and is well known to industry ing 16 meetings with lobbyists digital single market strategy, in 1996, developing expertise two of the 42 groups and lobby- players. over the past five months, says one of the most heavily lobbied in an area that has become one ists he has met during the past The sprawling portfolio the new system makes his posi- legislative packages in the EU’s of the most politically sensitive five months. means Calleja Crespo’s 34 tion much easier to defend. history. around, taking in geopolitics A College of Europe gradu- meetings with lobbyists cov- “In the past, I would meet The department also did well and energy security. ate, the 56-year-old Aguiar ered a wide range of interests. many lobbyists and sometimes in the reshufing of portfolios Not surprisingly, energy Machado was formerly at the Société Générale had a meet- I would get questions about that came with the launch of companies and associations World Trade Organization be- ing to discuss the banking sec- those meetings,” he said. “This the Juncker Commission last top Ristori’s guest list, with fore joining the Commission’s tor; Italian electricity company kind of suspicion has now large- November. Madelin picked up BusinessEurope — which rep- trade department, where he ENEL, which reported spend- ly disappeared.” copyright reforms, online ser- resents energy companies indi- was deputy director-general ing over €2 million on lobby- Delbeke, who has led the de- vices and media issues as well rectly through its national as- from 2008 to 2014. ing in 2014, also met with the partment since it was created as the fight against pirating. sociations — also getting some The main reasons for his director-general on internal in 2010, met with environmen- Madelin told POLITICO that of the director-general’s time. popularity with lobbyists in re- market strategy. tal NGOs and industry organi- his popularity has more to do One organization on Ris- cent months: first, he is new in Some of the lobbyists who zations. For example, he spoke with his desire to be accessible tori’s list of meetings was the the job — which inevitably cre- met with the DG were reluctant with the Polish Electricity As- than his portfolio. “My person- American-European Commu- ates a flurry of activity among to talk — and some only found sociation in December. He also al approach is that if I am free nity Association (AECA), which those who had established links out that the details had been met with Ford Motor Company, and in Brussels and there are counts among its members a with his predecessor; second, made public when contacted which in 2014 spent between appropriate interlocutors who number of prominent energy this is a portfolio that covers a by POLITICO. €500,000 and €560,000 on EU want to meet me, then I find companies (those listed on the wide range of policy areas, from DigitalEurope, representing lobbying. time for them,” he said. Association’s website are also infrastructure to safety regula- the digital technology industry “Lobbyists want to meet me That determination to be listed separately on the EU’s tion. and national trade associations, for two reasons,” Delbeke says. available may not have served lobby register). One of the organizations met Calleja Crespo to discuss “For them, it is both a fishing Madelin well last month, when AECA’s CEO, Erik ter Hark, lobbying the director-general the “digitalization and interop- expedition and a chance to he sat down with Sir Martin says such meetings are mainly was German vehicle-safety erability of chargers for mobile plant their story. They want Sorrell, the high-profile British a chance to invite policymak- inspection company DEKRA, electronic devices” — a plan to to find out policy details while businessman who is the CEO of ers to speak at their members’ which met with Aguiar Mach- standardize charges that the also explaining what matters to WPP, a multinational advertis- gatherings, as well as an oppor- ado in February. DEKRA is the Commission has been working them the most.” ing and public relations compa- tunity to gather information. largest company of its kind in on since 2010. DigitalEurope Delbeke also says that out- ny. Madelin disclosed meeting “Our members can read Germany; the third largest in declined a request for comment siders often underestimate how Sorrell and two WPP lobbyists about big policy statements in the world. It spent between about the meeting. important these meetings can on April 21 to discuss the digital the press,” ter Hark says. “It is €500,000 and €600,000 on Cosmetics Europe, the “per- be for the Commission to glean single market, even though his the technical details which are lobbying in 2016, with seven sonal care association” of Eu- information from the lobbyists. guests were not listed on the of interest” — which is why a full-time lobbying positions. rope, said its February meet- “We see this as an opportunity transparency register. meeting with the director-gen- “Firstly, we wanted to intro- ing with the director-general to press information out of Asked by POLITICO about eral was seen as the right move. duce ourselves,” said the head was part of its “normal” lobby- them,” Delbeke says. “We push the encounter, Madelin said of DEKRA’s ofce in Brussels, ing eforts in Brussels. “Why them for data — hard data. If it was a “lean back, what’s the Oliver Deiters. “Of course, we do we meet? Simple: we talk to they are clever, they can still world looking like at this mo- do not only talk with the direc- everyone who can help our or- make their point.” ment” kind of meeting, rather tor-general — there are many ganization,” said the associa- But could Delbeke, like Mad- than something relating to the others.” tion’s president, Loïc Armand, elin, run the risk of meeting nuts and bolts of policy settings. a former French public servant with unregistered lobbyists? But Madelin’s ofce conceded who is now president of L’Oréal “No,” he says. “My secretary that Sorrell’s failure to sign up France. has an instruction to check. If to the register was an oversight. they are not on the register, we When contacted by POLITI- do not meet with them.” CO, WPP said that “individual WPP operating companies that provide public afairs ser- vices are already listed on the EU Transparency Register” but that it would now “register WPP itself.” EPA (4), EC Data retrieved on May 5, 2015 James Panichi and Quentin Ariès POLITICO 6 WEDNESDAY, MAY 13, 2015 News The power chancellor George Osborne is now the UK’s chief diplomat

By BEN JUDAH secretary, but her archrival Mi- chael Gove has been promoted to LONDON — Welcome to the the cabinet as minister of justice. Osborne ascendancy. Boris Johnson, who was David Cameron may have won widely touted as a potential suc- the election, but George Osborne, cessor to David Cameron if the his chancellor and partner in Conservative party failed to win power, won the cabinet reshuffle. a majority in the elections, finds Osborne is now in position to himself allowed to attend the be the most powerful chancellor “political cabinet,” but with no in modern British history. He is role as he wraps up his term as already more influential in gov- Mayor of London. ernment than Gordon Brown was This is not what Boris John- as chancellor under Tony Blair. son wanted. He is alleged to have Where Brown was Blair’s fren- hoped to play a major role in the emy, Osborne is Cameron’s con- EU renegotiation – a task now in fidante. The reshuffle leaves him Osborne’s hands. Johnson had with octopus-like control over also dreamed of running, and the cabinet, in which six of his at times is alleged to have de- close allies are now sitting. manded, a super-ministry of in- Cameron is letting Osborne frastructure that would have al- lead the new government’s ap- lowed him to brand new “Boris” proach to its most pressing issue: airports and “Boris” highways. the chancellor will be in charge of the UK’s renegotiation with MISSED OPPORTUNITIES the EU. Osborne’s grip over the cabinet, Osborne hopes that delivering and the lack of certainty over in the EU renegotiation will earn Johnson’s role in parliament, him the respect of the Tories’ will leave many of his support- Euroskeptic right, and help win ers wondering if he has for now Cameron’s promised referendum missed his chance. Many of them George Osborne has been victorious in the cabinet reshuffle. EPA to stay in Europe. fear that after stepping down as Cameron and Osborne sense Mayor, Boris Johnson may see momentum, which is why they his popularity wane. Osborne’s Conservatism, has now been school educated son of a penni- apparent: but he remains are talking about moving the party men are emerging as stars. promoted to deputy chairman less Pakistani immigrant. He unpopular as the driver of referendum forward to 2016. The Three of Osborne’s last four of the party. Halfon, perhaps not looks set to slowly emerge as a big austerity. This is why he is stak- scale of their election victory has permanent private secretaries entirely seriously, says he wants player in the government, and is ing new ground. Success in the already brought the Euroskeptic are now in the cabinet. to rebrand the Conservatives as already widely seen as a future EU renegotiation, or in laying and Europhile wings of the party Robert Halfon, the Tory MP the “Workers Party” because it Tory leader. the groundwork for the “North- closer together. for Harlow, emerged as an unex- rewards work. By leading on London’s most ern Powerhouse,” would give him The Euroskeptics have long pected media star in the election He is not the only Osborne important foreign policy objective, a new narrative. argued that the reason the To- by sitting by the roadside into minister emerging. Sajid Javid, EU renegotiation, Osborne is now The Osborne ascendancy now ries had not won a majority since London and waving at commut- a former banker, is another new the country’s chief diplomat. looks as complete as it is unex- 1992, when the party divided over ing drivers. Halfon, who walks kind of Tory that Osborne has Many Tories are already talk- pected. Wildly inaccurate poll- Europe under John Major, was on crutches, promotes a working promoted. Javid is the new busi- ing as if the reshuffle crowns ing predicted a hung parliament because it was too soft on Eu- class, not public school kind of ness secretary, and is the state- Osborne as prime minister with both Tory and Labour neck- rope. That theory has now been and-neck right up to the exit disproved. poll on May 7. These polls were After Cameron’s entry to par- WEEKLY FACT CHECK +++ ARE POLITICIANS GETTING THEIR FACTS RIGHT? already eating into the chancel- liament on Monday, accompanied lor’s credibility and the party’s by rapturous applause and table choice to campaign not on a big banging, Bill Cash, a Euroskep- vision for Britain but on its eco- tic icon, pledged him “undying nomic record. There was talk of loyalty.” Bill Cash is more than a the weakened liberal wing of the backbencher: he was the leader of Conservative Party, from which the 1992 anti-Maastricht Treaty Cameron and Osborne both hail, rebels that first split the Tories being forced to put up their own over Europe. This means that leadership candidate in the case when Osborne eventually comes of a hung parliament. back from Brussels, renegotia- Osborne’s emergence fol- EPA tion in hand, he should be able to ALMOST ✓ 50/50 EPA lowing the election now puts unite the Tory party. Britain back on course of an Beyond Europe, Cameron is “If you think back to 2010 — we could have been “The Australians have not only stopped the boats emerging historical trend. The also empowering Osborne to ac- Greece. Our deficit was almost as big as Greece’s, our from coming, they have also stopped people from centrality of finance to power tualize his vision of a “Northern banking crisis was a whole lot worse.” drowning.” in the twenty-first century has Powerhouse.” seen a seepage of power from The boldest promise in the During the Leaders’ Election Special Question Time on Europe’s migration policies have remained in the head- prime ministers to chancel- Tory manifesto is a radical plan Sky News, Nick Clegg justified his party’s choice to join lines since the deadly boat tragedy off the coast of Libya. lors. While Margaret Thatcher to decentralize power to Britain’s David Cameron’s Conservative Party in government in While officials in Brussels and across Europe discussed ruled with dispensable chancel- northern cities and link them to- 2010 with a reminder of what — he claimed — could have the issue, UKIP Leader Nigel Farage suggested to col- lors, both Tony Blair and David gether via high-speed rail. been. Is it true, as the former deputy prime minister leagues in the European Parliament that we should learn Cameron have ruled in tandem Osborne’s pet project now has claimed, that the UK was in the same dire straits as from the Australian migration policy implemented at the with Gordon Brown and George its own minister. Greece in 2010? end of 2013, known as “No Way.” Is Farage right? Osborne, who may now follow David Cameron is not stand- Greek and British deficit levels were indeed relatively While Australia received fewer boats in 2014 compared Brown as his prime minister’s ing for a third term. He made similar in 2010 (11.1 percent of GDP vs 9.7 percent). The to 2013, the boats did not exactly “stop coming.” Instead, natural successor. this clear during the election second part of Mr. Clegg’s statement — that the banking they were halted by Australian authorities and redirected The reshuffle confirms Britain campaign, singling out Boris crisis was worse in the UK — is less straightforward to to other countries or offshore processing centers. When is also following another histori- Johnson, the charismatic mayor verify. Research by economists Laeven and Valencia it comes to drownings, there is not much data, especially cal trend: the eclipse of foreign of London, and Theresa May, the indicates that both Greece and the UK were experiencing since the Australian government has stopped updating its ministers in the EU. The euro- home secretary with a Thatch- a systemic banking crisis in 2010. “Our banking crisis was a own numbers. However, the Monash University database zone crisis and the G20 finance eresque demeanor, as potential whole lot worse” is, however, somewhat of an exaggera- does indicate a decrease between 2013 and 2014. The first ministers meeting have pushed successors, along with Osborne. tion. “Almost” for Clegg. part of Farage’s statement is seriously flawed, while the foreign ministers to the sidelines, Cameron has empowered Os- second presents some caveats. That’s “50/50” overall. from Germany to Greece. borne at the expense of his rivals. Source: factcheckeu.org The United Kingdom is no Theresa May will remain home exception. POLITICO Tech WEDNESDAY, MAY 13, 2015 7 Vestager gives telecoms deals a close look

changes were being made to their Antitrust regulator existing contracts.” has dashed hopes Margrethe Austria’s competition author- Vestager, ity opened an investigation last she will go easy on the European year into the “significant price commissioner increases” in the wake of the telecoms mergers for competition. merger. A spokesperson for the EPA agency declined to comment on — a stand that the ongoing probe, but said its conclusions will be published af- may spark tensions ter the summer. Three operators are not with her boss enough to ensure vigorous com- petition and low prices, argues By NICHOLAS HIRST Antonios Drossos, managing and FLORIAN EDER partner of telecoms consultancy Rewheel. He warned that “politi- Just six months into the job, Eu- cal influence was key” to all three rope’s top antitrust regulator has decisions that were approved un- dashed hopes she will go easy on der Almunia. “Will there be again telecoms acquisitions, a stand someone who will again put pres- that may spark tensions with sure?” he asked. her boss European Commission That analysis is hotly contested President Jean-Claude Juncker. by the Commission, which main- As telecoms companies take tains it reviews mergers in an “im- advantage of their high stock partial and objective way,” as well prices and low interest rates to as by the large telecom operators. snap up rivals, they should pre- “We were the first country in pare to appease Margrethe Ve- (€14.3 billion) hook-up in the UK tion law with a continental spir- Vestager is a walking pin prick Europe to experience consolida- stager, the European commis- between leading operators Three it,” Juncker said during an April to those hopes. She explained tion from four to three operators. sioner for competition. She has and O2 announced in March. 2014 speech in Finland. that a wholesale overhaul of Eu- We can see that we now deliver already put a Danish deal on ice, Europe’s 507 million citizens He declined this week to ex- rope’s telecoms rules is a prereq- better products to customers,” pending an in-depth investiga- spend some €240 billion annu- pand on his comments. uisite to her approach. Hannes Ametsreiter, the chief tion, and will soon review a mam- ally on telecoms, about half of A spokeswoman for the Com- “We react to regulation made executive officer of Telekom Aus- moth merger in the UK. which comes from mobile devic- mission denied there was any in other [arms of the Commis- tria, said in a speech last week. In an interview with POLIT- es, according to ETNO, an indus- contradiction between Juncker sion], when we see the effects on “Furthermore, we almost tripled ICO, Vestager said she wants a try association that represents and Vestager’s remarks. the markets,” she said. the level of investment after con- more unified regulatory struc- the largest telcos. Europe has “It is the role of EU merger The country-by-country re- solidation.” ture for the industry under the more than 100 telecoms firms, control to make sure that com- view was championed by her pre- He renewed calls on the Com- European Commission’s digi- compared to four major players pany tie-ups do not lead to higher decessor, Joaquín Almunia. mission to revise the way it re- tal single market, unveiled last in the US, which has a market prices or reduced choice for con- Although he approved mergers views telecoms mergers. Vestager week. She is reviewing deals on a roughly the same size. sumers and do not restrict com- that reduced the number of mo- is likely to turn a deaf ear. country-by-country basis, rather Intense competition and di- petition in the internal market,” bile network operators in Aus- “If the digital single market than pan-Europe, because she vided markets constrict the in- said Mina Andreeva, the Com- tria in 2012, and in Ireland and can bring the member states has seen how less competition dustry’s ability to generate profits mission’s deputy spokesperson. Germany in 2014, he demanded on-board to make pan-Europe- locally can lead to price hikes for and spend on new infrastructure, “At the same time, we want to tough conditions that galled top an or EU-wide regulation, well consumers. operators say. Europe’s telecoms encourage all companies to de- executives. that makes room for companies “Where you have 28 regula- sector will need as much as €170 velop, invest and make the most Nevertheless, research emerg- which can be more trans-border tors, you have 28 markets,” she billion of additional investment out of a market… by offering their ing from Austria, where Almunia because then the market will en- explained. by 2020, ETNO estimates. networks and services no longer allowed Three to buy Orange’s lo- large itself,” Vestager said. The region’s fragmented tele- Of course there is a risk that only nationally, but on a Euro- cal business, indicates customers The Commission’s new digital com sector is the result of a “lack Vestager could be overruled by pean scale,” she added. have suffered. strategy aims to overhaul Eu- of regulation,” not over-zealous Jean-Claude Juncker, the presi- Juncker’s remarks were Following the merger, “all [mo- rope’s telecoms regulations. The competition enforcement, she dent of the European Commis- echoed in October by Günther bile] providers in a single month Commission wants to harmonize said, disputing the idea that Eu- sion. Oettinger, the European com- raised their prices,” says Daniel Europe’s spectrum auctions, rope’s telecoms firms are too On the election trail last year, missioner for the digital econo- Zimmer, a consumer policy ex- which are held nationally, as well small. he argued for relaxing antitrust my and society, who argued that pert at the Vienna Chamber of as take other measures to reduce In December, TeliaSonera and rules for Europe’s telecoms op- European telecom companies Labour, who said customer bills market fragmentation. Telenor forged a joint-venture erators. should be more profitable and al- increased between 29 percent Digital markets, Vestager con- partnership to combine their “If we ask companies to offer lowed to consolidate. and 78 percent, depending on the tinued, “will slowly but surely Danish units to create a market their networks and services no Taken together, those state- package of services. grow due to changes in consum- leader, but the companies are still longer only nationally but on a ments created a bubble of expec- “The lowest offers disap- er behavior, business behavior, waiting for Vestager to sign off. continental scale, we should in tation among telecoms investors peared,” she said. “Consumers regulatory issues and new regu- Next in her sights: a £10.3 billion my view also apply EU competi- late last year. were concerned and angry that lation.” Seven EU countries put brakes on blind book treaty

ratify the Marrakesh Treaty on “The main impact is, of course, are stalled and there is no de- Julia Reda, an MP for Germany’s Commission and behalf of all 28 member states, for countries that belong to the bate scheduled before the cur- Pirate party, said her country’s po- despite the fact that 15 EU coun- developing world. They have rent Latvian presidency ends in sition made little sense because the European Blind tries — including Germany and down to two percent of books June. EU has already claimed exclusive the UK — signed it. A total of 20 that might be in some way acces- In addition, internal legal competence over copyright excep- Union decry signing countries must ratify the sible,” said Wolfgang Angermann, advice at the German justice tions. She cited, for example, the procedural delays agreement for it to be enforced president of the European Blind ministry, which is handling the exception for temporary copies across all the signatories. Union (EBU). “You have vast lin- Marrakesh Treaty in the Coun- included in the Information So- in Marrakesh If the 2013 United Nations gual areas for English, Spanish, cil, says the treaty’s ratification ciety Directive, a 2001 attempt to treaty goes into effect, signatories Portuguese and French. All these “falls into the exclusive compe- harmonize parts of copyright law Treaty would have to make exceptions countries are dependent on an in- tence of the European Union,” across the EU, and exemptions within their national copyright ternational treaty.” according to information seen for libraries, museums and edu- By DAVID MEYER laws for the reproduction and He said the Germans in par- by POLITICO. cational institutions added in the distribution of published works ticular are concerned that “the “I hope that the member states 2012 orphan works directive. Germany, Italy and the UK are in braille and audio. Less than 10 EU might claim more and more blocking the compromise will The Latvian presidency, how- among seven countries that have percent of the books published exclusive competence in terms review their position as soon as ever, is still optimistic of reaching formed a minority voting bloc to each year are available in such of dealing with international possible in the interest of the a deal. stop the European Union from formats, according to the World treaties.” common cause,” Andrus Ansip, “This proposal is still open,” ratifying an international treaty Blind Union. However, advisers to the Eu- Commission vice president, said said a person with first-hand to help the blind and visually im- The countries also would ropean Commission, Parliament in an interview. knowledge of the talks, who re- paired get access to books, PO- have to allow cross-border ex- and Council have all weighed in Germany, Italy and the UK quested anonymity because of LITICO has learned. change of published material in with legal opinions that sup- have taken the public position the sensitivity of the discussions. Those countries, plus another these formats for educational port the EU’s exclusive right that the EU governs cross-border “We still hope that the blocking four whose identities remain institutions and associations to ratify the treaty. But formal trade, but the copyright aspects member states will come back to unknown, don’t want the EU to for the blind. negotiations within the Council are for member states to decide. unblock this.” POLITICO 8 WEDNESDAY, MAY 13, 2015 Energy

largest coal miner, the state- To appease owned Kompania Węglowa (KW), is being accused of dumping its coal surplus in a frantic attempt regulators, to improve its cash flow. Two rival coal miners — Bogdanka and Ka- GE weighs towicki Holding Węglowy — have accused KW of selling coal at below the cost of mining it, something concessions that Kompania Węglowa manage- ment denies. Bogdanka, a rare pri- on Alstom vately owned coal mine, has seen its share price fall by a quarter in By NICHOLAS HIRST the last half year. The European Commission on RUINING THE COAL MARKET Tuesday extended its review of “They are ruining the coal mar- GE’s €12.4 billion bid for Alstom ket,” Markowski says of Kompan- after GE signaled it was prepared ia Węglowa. “They’ve also ruined to make concessions to allay reg- the coal market for themselves, ulators’ concerns. because buyers are going to insist “We still believe in the merits on these below market prices in of the case and we continue to ar- the future.” gue them,” said Jim Healy, a GE Hit by falling demand, lower spokesman. “We are willing to prices and high costs, Poland’s explore remedies to get the deal coal mines are losing a fortune. done, but only remedies that pre- The government estimates that serve the economics of the deal the sector as a whole lost a net and the strategic value.” €325 million last year. However, he said it was too The main problem is that in early to speculate on what kind the mines in Silesia, where coal of remedies the company would has been extracted since the offer to regulators who are wor- Middle Ages, the cheapest layers ried about the loss of competition A miner, happily laughing, on a conveyor belt in the Murcki Staszic coal mine in Katowice. EPA/ANDRZEJ GRYGIEL of deposits have been tapped out. in Europe’s gas turbine industry. Miners have to dig ever deeper GE announced its bid for Al- to get at geologically complex stom’s energy business in April seams, something that demands 2014. The deal was met with enormous investments the com- an immediate backlash from Poland fights for coal, panies are too cash-strapped to France’s socialist government, afford. In some mines, the coal- which rushed through a law to faces are so far from the shafts block a takeover and played an down which miners travel that active role in later negotiations. they must spend two hours get- It eventually gave its blessing af- but Russia may benefit ting there and two hours getting ter GE committed to bolstering back, leaving only three hours a Alstom’s rail business and hiring day for actual mining. more employees in France. The measure of energy independence might actually be an The sector’s funk is becom- But Paris’s blessing offered no ing a political problem for Ewa guarantee the deal would be ap- asset to the Kremlin’s influence Kopacz, Donald Tusk’s successor proved in Brussels. The Commis- as prime minister, who is trying sion has extended its deadline to By JAN CIENSKI 2005, angry miners wielding Ministry. However, last year the to lead the ruling Civic Platform August 21, after a pause of almost ax handles threatened to storm average sale price in Poland was Party to its third consecutive vic- three weeks. WARSAW — When he was Po- parliament, and the spooked only €69 a tonne. The cost of tory in parliamentary elections land’s prime minister, European politicians inside quickly voted buying foreign coal, sold in Am- slated for this fall. Kompania MISSING INFORMATION Council President Donald Tusk through a generous pension pro- sterdam and Rotterdam, is only Węglowa ran into such deep trou- The Commission had stopped its called coal “the strategic founda- gram for them. about €60 a tonne. Global coal ble at the beginning of this year review of the bid for Alstom be- tion” of his country’s energy se- prices, battered by falling de- that the government was forced cause it was missing information curity, and Polish diplomats have MUCH LOWER GLOBAL PRICES mand thanks to sluggish growth to cobble together a rescue plan. from the parties, said Ricardo Car- acquired a reputation as some of The unions have also fought hard worldwide, by China’s lackluster The idea was to close four of the doso, a Commission spokesperson. the EU’s toughest negotiators, to retain a gilt-edged pay package expansion and falling oil and gas company’s costliest mines, which Fourteen years ago, the Com- doing battle in summit after that has miners earning some of prices, are unlikely to rebound would have reduced production mission scuttled GE’s plans to summit to minimize restrictions the highest salaries in the coun- any time soon. costs and cut overproduction. acquire Honeywell International, on its use. try. A recent report by the Adam As a result, exports of Polish even though US regulators had But paradoxically, Poland’s Smith Center, a Polish economic coal have plummeted and im- POLAND IS NOT RETREATING given the green light. dogged defense of coal, which policy think tank, finds that ports steadily risen. Poland im- Instead, unions went on strike Jeff Immelt, GE’s chief execu- generates almost 90 percent of its the average miner earns about ported 10 million tonnes of coal, and Kopacz balked at becom- tive, was in Brussels on Tuesday electricity, may now end up ben- €1740 a month, 90 percent higher about 6.5 million tonnes com- ing Poland’s Maggie Thatcher. and met with Vestager. He de- efiting Russia. That is because than the average Pole; retires at ing from Russia. A decade ago, Rather than confront the miners, scribed the talks as “constructive.” cheap Russian coal is grabbing a the age of 48 instead of 60 on a Poland imported only 3 million she gave way, agreeing to sell the GE contends that the market for growing share of Poland’s mar- pension subsidized by the gov- tonnes but exported 20 million. four worst mines to private inves- heavy-duty gas turbines is global, ket, while local coal producers ernment; and benefits from an In all, last year the country’s coal tors (who have yet to be found) with the same firms from Europe, bleed red ink thanks to high pro- overall government subsidy of companies sold 70 million tonnes and put the rest into a new, and the US, Japan and China compet- duction costs and very low prices. €16,000, while the average Pole of coal, but dug up 72.5 million hopefully profitable, company. ing for contracts worldwide. The “Individual mines can still be gets nothing. tonnes. That has added to grow- The whole operation is expected company also argues any supposed saved, but what cannot be saved Those fat checks and early ing coal mountains — at last to cost at least €575 million and European market for gas turbines is the state-owned coal mining pensions mean that labor ac- count holding more than 8 mil- still needs to be approved by the is effectively dormant, with many sector,” says Jerzy Markowski, a counts for about two-thirds of lion tonnes of unsold coal. European Commission. power plants sitting idle. former deputy minister of econ- a mine’s operating cost. It costs In an echo of the self-defeating Despite coal’s problems, the The review may now turn on omy and coal mining executive. about €77 to mine a tonne of hard economic policies of communist Polish government continues to whether GE can offer remedies Poland’s coal sector has long coal, according to the Economy times, Poland’s (and Europe’s) battle in Brussels against mea- that would resolve the Commis- been a mainstay of the econo- sures that would reduce its use. sion’s concerns. my. In communist times, when After a recent EU summit Philippe Nogues, a lawyer at the Poland’s decrepit factories pro- dedicated to constructing the firm of O’Melveny & Myers, said duced little that the West wanted MINERS ARE BETTER OFF energy union, Kopacz declared the pause was probably positive to buy, coal was one of the coun- that despite pledges to decarbon- for the parties: “The Commission try’s few “profitable exports” Age of retirement Monthly salary Benefit * ize Europe’s economy “Poland is is saying we need to stop the clock — even if it was sold abroad for not retreating from coal.” and give you more time to think precious hard currency at less One of the reasons Poland is about where this case is going.” than it cost to mine. The mines such a strong advocate of coal is Yet GE is concerned that the employed almost half a million that it provides a measure of en- slow process is taking a toll. Al- people, and the power of the ergy independence from Russia, stom reported fiscal year earn- brawny miners prompted the its old imperial master. Russia ings Tuesday, showing the busi- communist regime to treat them supplies two-thirds of Poland’s nesses being sold to GE reported with kid gloves. 59,5 48,3 € € €0 €16.000 natural gas and almost all of its net income of €104 million ($116.8 A quarter century and €25 bil- years years 900 1720 crude oil. But if the country can- million), down from €396 million lion in restructuring costs later, not figure out a way to rebuild a in the prior 12-month period. not all that much has changed. competitive coal sector, those “All sides need to get through The mines now employ only hard-won victories in EU energy this process and get the thing about 100,000 workers, but talks may end up with Polish closed as soon as possible,” said their unions are still some of Average worker Average Miner *average government subsidy per workplace power stations being fueled at

Healy. the toughest in the country. In ADAM SMITH CENTER least in part with Russian coal. POLITICO Health care WEDNESDAY, MAY 13, 2015 9

cines to patients, and that cutting ISTOCK prices should not be an end in Drug buying plan itself. Pharmaceutical companies want to retain the right to negoti- ate prices in confidence, he said. Commission officials still may disappoint defend the agreement as prog- ress. They suggest that partici- pating member states might gain Limits of joint EU system are laid better access to the market, more equitable access to pandemic bare in Luxembourg: a far cry from vaccines and some treatments, improved security of supply, and enthusiasm when scheme was launched more balanced prices. VALUABLE TOOL By PETER O’DONNELL health department, noted the They also claim that it could be limits at a closed-door meeting in valuable for the pharmaceutical Hard-pressed state health sys- Luxembourg of government and industry by reducing administra- tems hoping to cut their drug industry officials late last month, tive burdens and costs, providing bills through new bulk-buying according to documents and offi- predictability of turnover and arrangements may see their cials who attended the meeting. revenues, and improved planning hopes dashed. He pointed to questions that of capacity. Right now, the only European Commission offi- still need to be answered over other moves beyond procuring cials now publicly acknowledge how even the current limited protective equipment relate to that limits to the so-called joint scheme might deal with pricing. vaccines. procurement pact — touted as a “Can there be several joint Croatia and Lithuania face way for authorities to stand up to purchase agreements for a giv- imminent shortages of pertussis big pharma — may not lead to a en product, clustering member vaccines and have sought help much better deal. states by purchasing capacity?” in procurement, Jean-Luc Sion, Twenty member states have he asked, illustrating his ques- an official in the Commission’s signed up and most others are tion with slides seen by POLIT- health department, told the Lux- set to join, but the scope is ICO, which underline the wide embourg meeting. He said clarifi- restricted to health care assets variations between purchasing cation was needed as to whether to counter cross-border threats. power across the member states. the problem lay in production or Only Belgium, Croatia, Cyprus, in difficulties seeking offers of and Malta have tried to use the THE CHALLENGES supply. process so far, with plans to buy The practical challenges temper The Commission is mulling protective clothing for handling the earlier enthusiasm, typi- whether the joint procurement infectious patients. fied by Italian Health Minister mechanism can be used for these It’s a far cry from the ambi- Beatrice Lorenzini’s proposal, products. tions of some health ministers, when she was president of the EU Similarly, Latvia, Lithuania, MEPs and officials when the deal health council last September. Cyprus and Estonia face dif- was ratified in July 2014. She called for joint procure- related health issues (anti-micro- ing, which he attended, had con- ficulties in acquiring the BCG “The Commission can further ment to play a role in “coopera- bial resistance and healthcare- firmed the limitations of the sys- vaccine, which treats a type of explore the use of the joint pro- tion on prices of health technolo- associated infections related to tem. “We didn’t have very high tuberculosis and of which the curement mechanism to obtain gies,” amid repeated calls from communicable diseases), and expectations of this scheme from World Health Organization says better prices from the phar- MEPs for leveraging drug prices biotoxins or other harmful bio- the outset,” he said. there is a shortage of 65 million maceutical industry,” said the downwards using joint procure- logical agents not related to com- But he still believes in the tons. The Commission has been European health commissioner ment. municable diseases.” value of such initiatives and the asked to consider using the joint at the time, Tonio Borg. Officials in Luxembourg It makes no mention of treat- recent Belgian-Dutch plan for procurement mechanism here Vytenis Andriukaitis, the cur- outlined the pact’s limits, with ments for chronic conditions joint negotiation of drug prices. too. rent health commissioner, has detailed references to the under- such as hepatitis C or diseases “They are steps towards The agreement has generated also talked up making wider use lying legislation. such as cancer — the categories breaking through the secrecy its own complex bureaucracy, of the scheme for medicines as Joint procurement must relate currently posing the toughest about what prices are being paid with a cascade of steering com- well as vaccines: “This is a good to the advance purchase of medi- financial challenges to states in each member state.” mittees to oversee each stage opportunity to move forward cal countermeasures for serious paying for health care. Richard Bergström, director- of a procurement procedure, using enhanced cooperation, cross-border threats to health — Some non-governmental ad- general of Europe’s main drug down to the detailed technical encouraging member states to and these must be hazards that vocates say the MEPs may have industry body, EFPIA, said specifications and the criteria for use procurement in all fields,” can spread across national bor- oversold the idea. Yannis Natsis companies are ready to consider selection — for instance whether he said on taking up his post last ders, said officials. of campaigning group Trans- a “fundamental rethinking of to choose on the basis of the low- November. But Dirk Van Steen, The legislation speci- Atlantic Consumer Dialogue pricing.” But he insisted that the est price or the best value for an official in the Commission’s fies “communicable diseases, told POLITICO that the meet- focus should be on getting medi- money.

“We must seize these market op- is also in Riga, told POLITICO: Federation, warned against a portunities to fulfill a vision for “Digital solutions can increase simplistic top-down approach. E-health success elusive healthcare in the 21st century.” the dynamism of the European There is a role for IT in health, The Commission has been economy and deliver benefits to he said, and particularly in en- struggling for years to bring EU citizens.” For him, the con- suring continuity of care. But in most of Europe greater coherence to EU devel- ference promises the chance to he added: “The Commission and opment of health IT — to poten- explore how mobile health and member states need to talk with tially drive economic growth, as e-health can help EU citizens stakeholders ... and not about Estonia has been an exception, and its well as improve individual health manage their own health by em- stakeholders.” president wants EU neighbors to do more and ease strained health care powering them, as well “ensuring Discussions on clearing the way budgets. the sustainability of our health for more mobile health applica- Greater use of e-health ser- care systems.” tions in Europe provoked concerns vices was pegged as central to But the challenges also in some industry participants. By PETER O’DONNELL 2018, according to industry esti- the EU’s 2011 directive on cross- emerged clearly from other Martin Wrigley of the Applica- mates. But the benefits outside a border care, helping free move- speakers at the meeting, partic- tion Developers Alliance said prog- Tiny Estonia is not above some few countries are hard to find. ment of patients, and improve ularly from health professionals, ress on agreeing on a data privacy boasting to the rest of Europe Ilves touted Estonia as a model access to quality care in remote patient groups and companies. code of conduct was too slow. when it comes to e-health. of how IT in preventive and treat- or underserved areas. The con- Walter Azori of the European A Commission working group President Toomas Hendrik ment services can “improve both ference is addressing many Patients Forum said he backed began last month, but the timeline Ilves used a European summit the welfare of patients and the obstacles identified in recent patient empowerment through set is too leisurely for an industry on e-health in Riga this week to health care system in general.” Commission consultations — IT, but questioned whether Eu- that moves so fast, and risks hold- attack his neighbors over their But more widely across Europe, notably privacy and security, rope was yet able to achieve that. ing up innovation, he said. failure to seize opportunities in “health care is lagging ten years safety and transparency, interop- The concept “is still not clearly Dee O’Sullivan, director of information technology to im- behind when compared to other erability of systems, and web understood across Europe,” and myhealthapps, may have been prove health care. industries,” he said. entrepreneurs’ access to the mar- is even perceived as a threat by the most pessimistic. She said Estonia has been a frontrunner The conference comes a week ket. It is also exploring how far some doctors, he said. He said the the meeting revealed “a discon- in e-health: nearly all prescriptions after the EU released its digital large-scale deployments could EU needs a strategy to promote nect between all stakeholders are issued electronically, and two- single market strategy, which be supported by EU funds from greater commitment from health — patients, doctors, app develop- thirds of hospitals use e-health stressed that “digital technolo- its Connecting Europe Facil- professionals, education and sup- ers, industry” on mobile health, technologies in some way. gies for health and care offer op- ity that backs new cross-border port for patients, and quality of with disagreements over how Spending is on the increase: portunities for citizens, health infrastructure and services. data to help patients to make in- and where health apps should be EU governments and health care and care providers and industry.” Pēteris Zilgalvis, a senior formed choices. certified or regulated, and “a lack providers will spend more than Health commissioner Vytenis Commission official with direct Paul De Raeve, secretary- of understanding of each group’s €12 billion a year on health IT by Andriukaitis told the meeting: responsibility for health IT, who general of the European Nurses’ key needs and problems.” POLITICO 10 WEDNESDAY, MAY 13, 2015 DC Digest Waiting for Jeb Bush to jump

By GLENN THRUSH a clue how that question will ultimately be answered, but it’s a By the end of last week, almost decisive one, and they are antsy everyone had jumped into the to find out. The early polls, which pool. Almost everyone except show Jeb getting clobbered in John Ellis Bush, who still sits at Iowa, barely ahead — if at all — the water’s edge of the 2016 presi- in New Hampshire, and trading dential campaign, suit dry except a narrow lead nationally with for the stray splash thrown his his fellow Floridian Marco Ru- way by his jostling Republican bio, are predicting a ferociously rivals Mike Huckabee, Marco competitive campaign. But who Rubio, Ted Cruz and Rand Paul. knows how it will play out when It wasn’t clear at the time, Bush actually announces? “A but is increasingly so now, that month ago, the whole story was Jeb Bush’s decision last Decem- that Hillary was rusty, that she ber to signal, but not formally hadn’t been out there doing any- announce, his candidacy was a thing,” said a veteran GOP opera- short-term logistical master- tive who worked on one of George stroke befitting his family’s repu- W. Bush’s campaigns. “Well, she’s tation for mastering the mechan- been out there taking hits for a ics of elections. His undeclared month. Jeb hasn’t. It’s time to get status has freed him to raise what this thing going.” aides are saying will be as much as $100 million from rich patrons and outside groups (the second he files presidential paperwork, he’s prevented from requesting big “Bush’s campaign super political action committee checks), and it has temporarily is slowly, inevitably shielded him from being the tar- get of shots many of his would-be pushing him into opponents are leveling at Hillary the water, nudging Clinton. (Aside, that is, from lots of hand-wringing about the in- him into more high- creasingly hereditary nature of American politics, and mockery stakes situations” of his insistence that he’ll be his “own man” on foreign policy.) Jeb Bush leaps on stage at the First In MODEL CAMPAIGN Nicolle Wallace, a White House The Nation Republican This inversion — building a communications director to Leadership Summit. campaign on the back of a super George W. Bush who started her GETTY PAC instead of vice versa — is political life as a 25-year-old ad- novel and could be a model for viser to Jeb Bush in Florida, also the future, but it also puts a lot sees undeniable parallels with the of pressure on an opaque candi- Democrats’ presumptive nominee, high-stakes situations ahead of a himself from other candidates That Bush is increasingly, in- date who publicly has done little Hillary Clinton. “I think some of formal announcement that could who more explicitly bring their evitably, becoming a focal point more than a set of sporadic, low- their strengths are parallel. Some come as early as mid-June. People religious fervor to their politics, of 2016 came as welcome news in octane speeches with few specif- of their strengths are on the policy close to the campaign tell me he namely Huckabee and Cruz, the utilitarian, poorly air-con- ics to offer. Given his fundraising side, not the retail political side. I plans to do some press-the-flesh warning against feeding into ditioned warren of re-purposed focus, he’s already dogged by the think some of their strengths are retail campaigning on a trip to Democratic arguments that the bank back offices that serves as notion, eagerly pushed by his ene- in a room, not on a stage,” she told New Hampshire in late May — and GOP is turning into a party of Hillary Clinton’s headquarters mies among the party’s tea party me during a taping of last week’s his Liberty University commence- religious rigidity. “The mistake in Brooklyn. There was a clear hard-liners, that he’s a bankroll POLITICO podcast. ment address on Saturday was a is to confuse points of theology feeling, for the first time, among in search of a soul. “I think they have some of the risky operation, considering the with moral principles that are Clinton’s inner circle last week Which is why we’ll see the me- same weaknesses, too. They’re rock-star reception conservative knowable to reason as well as that she won’t be alone in the fir- dia coverage of the Republican both in a constituent-free zone. fire breather Ted Cruz received at by faith,” Bush said, pointedly ing line for long. “The whole dy- presidential race coalesce, and Neither of them represents any- the Jerry Falwell-founded school refusing to bash the move to- namic of the race changes when soon, around a single question: Is body right now. Neither of them when he announced his candidacy ward legalizing same-sex mar- the Republicans start attacking Bush actually the front-runner, is advocating on anyone’s behalf, there in March. riage that Cruz has embraced as each other, when Jeb gets in,” or just a guy with a lot of money except their own campaigns. And Bush, a midlife convert to an affront to his faith. “And this Tom Nides, a former Clinton trying to buy the nomination? I think it’s awkward, frankly, for Roman Catholicism, used the confusion is all part of a false State Department aide close to A dozen or so Republican op- both of them.” speech to emphasize that he is a narrative that casts religious the campaign, told me. eratives and donors I spoke with Bush’s campaign is slowly, in- man of deep belief — a key signi- Americans as intolerant scolds, last week, most of them open to evitably pushing him into the fier in a party that values faith. running around trying to impose This article was first published on a Bush candidacy, didn’t have water, nudging him into more But he also sought to differentiate their views on everyone.” POLITICO.com. New Hampshire poll shows muddled GOP field

By STEVEN SHEPARD Jeb Bush and Florida Sen. Marco Arkansas Gov. Mike Huckabee Clinton alternative, earning more state. In the battle for the Granite Rubio, who are at 11 percent. is backed by four percent, and than three times the support of State’s four electoral votes, Clin- A new poll portrays the Republi- While the top four candidates former Hewlett-Packard CEO any other potential rival to Clin- ton posts 2-point leads over Bush can presidential primary field as are the only ones to earn double- Carly Fiorina is at three percent. ton, including Vice President Joe and Rubio, three points over Paul a muddled mess in the first-in- digit support, a number of other A handful of other candidates — Biden. and six points over Walker. the-nation primary state of New contenders (and possible con- Louisiana Gov. Bobby Jindal, for- The poll shows Clinton with The poll was conducted May 2-6. Hampshire, with the four leading tenders) follow close behind. Self- mer Texas Gov. Rick Perry, South an overwhelming 62 percent of For the general election, 500 likely candidates separated by only one promoting real-estate magnate Carolina Sen. Lindsey Graham, the vote. But Sanders earns 18 voters were surveyed, for a margin percentage point. Donald Trump, who is again toy- former Pennsylvania Sen. Rick percent, outpacing Biden, who’s of error of plus or minus 4.4 percent- The survey, conducted by the ing with a presidential bid, earns Santorum and Ohio Gov. John at five percent; former Maryland age points. There were oversamples bipartisan, DC-based firm Purple 8 percent of the vote. Embattled Kasich — each got one percent. Gov. Martin O’Malley, at three of 400 likely voters for both primary Insights for Saint Anselm College New Jersey Gov. Chris Christie is There is greater clarity in the percent; and former Rhode Is- fields; results for each party carry and Bloomberg News, shows Ken- at seven percent, and Texas Sen. Democratic primary, where for- land Gov. Lincoln Chafee and margins of error of plus or minus tucky Sen. Rand Paul and Wiscon- Ted Cruz is at six percent. mer Secretary of State Hillary former Virginia Sen. Jim Webb, 4.9 percentage points. sin Gov. Scott Walker atop the field, Rounding out the bottom, Clinton remains the prohibitive both at one percent. each with 12 percent. Right on retired neurosurgeon Ben Car- favorite. But Vermont Sen. Bernie New Hampshire will also be This article was first published on their heels are former Florida Gov. son is at five percent, former Sanders is far and away the leading a contested, if small-haul, swing POLITICO.com.

POLITICO 12 WEDNESDAY, MAY 13, 2015 Forum

MARE NOSTRUM

The staggering challenge migrants face begins in the scorching depths of the Sahel. 17-year-old Courage Odafeh Loren, who fled fighting in Nigeria and Libya,S tells her story By BOŠTJAN VIDEMŠEK looked, yet the staggering chal- lenge faced by the refugees — so SIRACUSA, Sicily — Sometimes callously abetted by the Europe- the name says it all, and 17-year- an Union’s inaction — normally old Courage Odafeh Loren from begins in the scorching depths the Edo state in Nigeria couldn’t of the Sahel. have a more appropriate one. Courage was lucky. All the Indeed, you’d have to look far potential sexual predators she and wide to find a braver, more encountered on her journey courageous human being — or a somehow opted to leave her A girl clearer example of the human toll alone. Her protector, A Nigerian that Europe’s immigration crisis compatriot named Vivian proved has taken on desperate refugees to be a very powerful, influen- from Africa. tial one. In the end, Courage’s Two years ago, Courage safe passage was the exception named decided to join her mother, who that proves the rule — a minor had migrated to Libya a few years miracle. before the outbreak of first the “I was not afraid — not at all,” civil war — and before the inter- she told me in Siracusa, on the national military intervention island of Sicily, where she is now that turned the country into a living under the twin protections Courage failed state. Just fifteen at the of Italian immigration law — and time, Courage was living in Nige- Vivian. “Yes, it was hard. It was ria with her aunt, who had taken so hot! But I was looking forward her out of school, imprisoned her to seeing my mother after such a in her house and made her a vir- long time. It was all I could think tual slave. She couldn’t take that of. It was what kept me going. any more, so she decided to con- I couldn’t wait to leave Nigeria tact her mother in Tripoli. She behind.” could not rely on her father, since When Courage reached she had grown up without one. Tripoli, the city was in turmoil. Powerless Libyan authorities had little control over a country With some savings* at her dis- that had been taken over by tribal posal, Courage’s mother hired a militias and crime syndicates in Nigerian woman to serve as her the wake of Colonel Muammar daughter’s protector on the long Gaddafi’s demise. For four years, and arduous smuggler’s route these groups had been grappling leading from Nigeria through for control of practically every- Niger and eventually into south- thing, from oil to water, from ern Libya, where borders are vir- gun-running to people trafck- tually non-existent. Both in the ing. Today the center of some of Libyan desert and in the no man’s the most sordid forms of disaster land of Niger, there is no such capitalism. thing as federal authority. These It didn’t take long for Courage dark and perilous places are con- to grasp the full precariousness trolled by rival militias, and the of her situation. “When I got to organized criminal alliances that Libya, I was very happy,” she said. specialize in smuggling people, “All I cared about was getting to- drugs and guns through the gether with my mother again. But Sahel, one of the hottest and dri- the situation was far from safe… est places on the globe. My mother was worried about For some time, smuggling peo- me, so very worried.” Italian ofcials greet incoming coast guard vessels carrying ple has been the most profitable rescued migrants. JURE ERŽEN/DELO venture of all — and little wonder, since the entire region has been Sitting next to me,* drinking a cup consumed by chaos, while legions of cofee that had been sweetened of desperate men and women are several times, Courage spoke no matter the cost. Their first Africa, has become the trafck- “Apart from the Nigerians, there also fleeing north from countries haltingly. At times, just when I choice destination was Italy, ers’ favourite point of entry. were many people from Soma- like Somalia, Ethiopia and Er- got the impression she was about so they got in touch with some Courage, who even now looks lia and Eritrea on the boat, and itrea in the Sub-Sahara and the to open up, something seemed to seemingly reliable trafckers. In at least three years younger than some Egyptians as well. I re- Horn of Africa. force her to cut herself of again, Libya, this was far from difcult, her actual age, was the only fe- member it was very dark. I was It took Courage a month and a barricading herself behind a since the trafckers’ lavish life- male passenger among the 150 so terribly afraid … I prayed all half to get from Edo to the Libyan brave smile. style made them all but impos- souls bound for Europe, all mak- the time. This was my first time capital. The woman her mother Courage knew all too well that sible to miss. ing their last desperate bid for a on a boat — my first time at sea, hired proved a resourceful and in Tripoli, sexual violence against And so it was that on April 9, better life. This time, she cast of actually. And it was such a small steadfast ally. Yet on a journey women — especially against 2014, after a little less than seven without a protector, alone and boat, you know. We were pressed as rough and hazardous as this, dark-skinned refugees and im- months of hiding in her mother’s chillingly vulnerable. This time, against each other, it was like women are always a weak and migrants — was the norm. So she apartment, the sixteen-year-old she recalled wistfully during our being stufed inside a can of sar- open target. On a daily basis, the wisely spent all her time behind Courage embarked on a suppos- conversation, she had only God to dines. We were out in the open, deserts of the Sahel still produce the four walls of her mother’s edly sturdy old boat manned turn to in times of trouble. but it was still so hard, trying to gruesome tales of mass rape, rented flat. The fighting in the by several supposedly reliable get some air.” torture and people disappearing streets was only getting worse. characters. The destination was Courage’s ocean crossing was without a trace. This part of the Her mother decided to send her Lampedusa — the Italian islet “We sailed of* around two in typical of the brutal passage refugees’ odyssey is often over- teenage daughter of to Europe, that, due to its proximity to North the morning,” she remembered. that has claimed over a thou- POLITICO WEDNESDAY, MAY 13, 2015 13

Courage Odafeh Loren. JURE ERŽEN/DELO

shy and reserved girl instantly spent another three days on the should be, Vivian told me. Then gave way to someone very difer- military ship, as it scoured the Courage’s life was upended by a ent. Her thespian aspirations, it sea in search of other refugees. single phone call. Last August, turned out, were far from pure “They treated us well,” she word came from Libya that her fancy. On May 15, she is to make remembered. “They gave us both mother had died in bomb blast so her debut at the local theatre in food and water. And I was finally powerful that no body remained Siracusa, which is staging a pro- able to get some sleep. When we for identification. Fighting duction on the vagaries of the landed in Sicily, they put us on between militas smashed Cour- immigrant life. The very mention a bus and took us to some aban- age’s world was to pieces, and she of the play made Courage’s eyes doned old building in Augusta. I was utterly alone. According to dance with glee. spent about a week there. All the Vivian, she became hopelessly time I wanted to call my mother, alienated. And so Vivian decided but they wouldn’t let me. Not to take her under her wing. The small ship* that brought even once. They never told me “There was no other way,” Viv- Courage to Europe — hardly big- why.” ian explained. Together with her ger than a boat, really — soon After a week, Vivian — who is husband, who works as a light- got into trouble. The trafckers employed by one of the immigra- ing technician in Siracusa’s re- didn’t find it necessary to fur- tion centres in Siracusa — arrived nowned Greek theatre, they did nish the ship with a captain, only at the facility, accompanied by a everything they could to help with someone able to man the en- couple of Italian humanitarian their ward get back on her feet. gine and keep an eye on the basic workers and activists, who had This June, when Courage cele- course. First the compass broke learned that an underage Nige- brates her 18th birthday, she will down, then the engine developed rian girl was also residing at the be granted ofcial permission an ominous cough. For refugees center. One of the humanitar- to stay in Italy with all the ben- like Courage, who book passage through the black market, this is far from an uncommon occur- rence, and when the engine sput- ters out for good, the passengers EU UNVEILS MIGRATION AGENDA are usually left at the mercy of the Italian or Maltese coast guard. The European Commission will of migrants among EU states Yet those organizations are so unveil Wednesday the details of its would use a formula that takes strapped and understafed that, long awaited agenda on migration. into account, the strength of the despite their best eforts, they are Expectations are high afer the economy and unemployment rates unable to save everyone in need. death last month of 800 migrants in each country, the size of the in a boat disaster of the coast of population as well as the number Sicily. Commission President Jean- of refugees they have taken in so This has been especially* true over Claude Juncker has made clear, far. the last few months, following during a debate in the European the demise of the Mare Nostrum Parliament, his ambitions: “If we A resettlement program: operation — an efcient rescues don’t open the door, even partly, According to the drafs that program that should have been you can’t act surprised when POLITICO has seen, the a beacon for EU bureaucrats. But the unfortunate from across Commission will propose also an since continuing the program the planet break in through the EU-wide resettlement program to would cost more money, EU of- window” — and he has the backing take up to 20,000 refugees a year ficials simply scrapped it, efec- of the German government. from camps outside the Union (for tively turning the Mediterranean example in Lebanon or Turkey). The into a mass grave, with hardly a These are the main points on the exact target should be proposed flicker of hope for real change migration policy as debated so far: by the end of May and be funded anytime soon. with €50 million in 2015-2016. The situation is worsen- A quota system: Juncker ing. At the moment, as many as suggested binding quota for A Blue Card: for highly skilled 200, 000 men and women are taking in refugees across all 28 migrants, similar to the US Green waiting along the shores of North EU member countries. Under Card program. Africa and the Middle East — the proposal, the distribution Jacopo Barigazzi waiting for safe passage to the ever more elusive European for- tress. Most of the would-be refu- gees are in Libya. While these poor desperate souls are drown- ian workers, Carla Trommino, efits that entails, beginning with ing en masse, an increasingly made sure the Italian authorities health and social insurance. racist and xenophobic Europe placed Courage under so-called is putting up more barriers and humanitarian protection, since spouting “us v. them” rhetoric. she had entered the country un- “It’s hard,” Courage* told me. “My Refugees arrive at the Sicilian port of Augusta. derage and unaccompanied, and wish is to stay living here in Italy. JURE ERŽEN/DELO her repatriation was not possible. I have nowhere else to go. There “For some time,* we sailed in a cir- As soon as she was permitted, is no one for me back in Nigeria. cle,” Courage said “No one knew Courage let her mother know she I don’t want to go back. I barely where we were or where we need- was alive and “safe”. For a while even follow the news about what’s sand lives in the last four weeks unending bureaucratic battle ed to be. They told us we got lost. she lived with some nuns in one going on there. I want to make alone — and nearly 23,000 since her young ward had faced upon That someone was bound to come of Siracusa’s many churches, friends here in Italy. But I find it the turn of the century. Hers is a reaching the European Union, pick us up. This was after we’d al- where refugees and immigrants very hard to make a connection. tale of bitter struggle, yet as I sat Courage kept fiddling with her ready spent two days at sea. We can still get help. Then she took I go to school in Augusta, while I talking with her, her tone never fashionable sunglasses. At such had no food or water. I was badly up residence with an Italian fam- live all the way back in Siracusa. wavered. She spoke quietly, dis- moments, the glaze of utter alien- afraid for my life. I couldn’t stop ily back in Augusta in a sort of in- I don’t get to meet many new peo- passionately, and at times seemed ation in her eyes could still give thinking about death. All I could formal foster care arrangement. ple. I hope things get better once I almost unable to finish her sen- way to flashes of childish vivacity, do was pray.” She started going to the local join the drama class. I hear some tences. Every word was an efort, even if only for a moment or two. After another day of waiting, school. She was quick to learn ba- people there are older than me. and sometimes she had to take “Someday I am going to be an the 150 despairing souls were sic Italian, and she is now proud “But then so what,” she said. “ I in an extra lungful of air just to actress,” she said at one point rescued by an Italian coast guard to report she can also speak some did say I wanted to be an actress, muster the will to keep going. At when I pressed for details of her vessel, part of the Mare Nostrum English, French and Spanish. She didn’t I?” a certain point, she simply de- ordeal. “In movies or in the the- operation. But instead of taking says she only has problems with cided to leave the rest of the tale atre, I don’t really care. Oh, and the refugees to their original des- math. to Vivian, her Nigerian-Italian I’m also very much into music.” tination on Lampedusa, the Ital- But Courage’s stay with the Boštjan Videmšek is a foreign guardian angel who had arrived The moment Courage got talk- ian sailors took them to Augusta, Italian foster family lasted just correspondent at the Slovenian daily in Europe in the 1990s. ing about her future acting ca- on the eastern shore of Sicily. Be- two months. They argued and DELO and author of 21st Century As Vivian summed up the reer, she was transformed. The fore they reached shore, Courage fought, and nothing was as it Conflicts: Remnants of War(s). POLITICO 14 WEDNESDAY, MAY 13, 2015 Forum

ROYAL REALM One’s never been less inclined to retire Never was there a person more wedded to the duties of her office than Her Majesty the Queen. She is even more so after the hurricane of the general elections

By THOMAS KIELINGER

It was Shakespeare who remind- ed us whatI could happen in the lovely month of May when all our senses turn to blossom and beauty, growth and glory. “Rough winds do shake the darling buds Queen Elizabeth II will become the longest-reigning monarch in British history on September 10, 2015. EPA of May,” he averred in one of his most famous sonnets, reminding us of what unexpected weather years ago, when the appeal of the and unforeseeable in the Queen’s of Commons emerged. Elizabeth calmness in adversity, and the con- nature might have in store when House of Windsor languished at an “annus horribilis” of 1992. Now II did not originally warm to the viction that things rarely turn out we are least prepared for it. historic low following an appar- she is reaping the reward for her idea of devolution. In the year as predicted. The change she has On May 7 Great Britain’s ently endless series of scandals, longevity and constancy of service. of her Silver Jubilee, 1977, when witnessed in public perception of “rough winds” turned into a who would have put their money Nothing has ever occupied English this issue was muted she received the monarchy has been dramatic, gale force of change. The general on the safe future of the British kings and queens more than mak- a group of parliamentarians and making her appear unruffled election was a tornado that all monarchy? Today you would have ing sure that the institution they reminded them confidentially amidst all the doomsayers. She but devoured the Labour party to be a fool or an unreconstructed embody is made immune against — a confidentiality soon broken probably doesn’t see the end of the in Scotland and reduced the Lib- anti-monarchist to harbor such the slings and arrows of outrageous — that she was crowned “queen United Kingdom heralded by the eral Democrats to a rump party doubts. What turned it around for instability. of the United Kingdom of Great simple advent of 56 SNP members of no more than eight MPs. Out the Windsors was the luck of the At a time when public confi- Britain and Northern Ireland.” of parliament in Westminster. As of the destruction emerged a new order of succession falling to the dence in many traditional pil- Never mind that the Scots keep one former Tory leader told me, political force to reckon with, the Queen’s grandchild William. By lars of society — in banks, media, repeating that even as a sover- the SNP’s bluff will be called — they Scottish Nationalist Party (SNP). marrying a commoner from an un- politicians, and the church — has eign country they would prefer have to be careful not to overplay Having grown almost overnight sullied middle-class background dramatically eroded, the Crown the Queen as their head of state. their hand. Could a federal solution into the Incredible Hulk of the the Duke of Cambridge added an emerges as an island of calm in That would be no consolation for for Britain be the answer? British polity, the SNP is now the element of normalcy to an almost stormy waters. It is no surprise losing them as part of the United Compared to Scotland, the third-largest party in the House dysfunctional royal family. In ad- that since her diamond jubilee Kingdom. question of UK-EU relations of Commons, with 56 members — dition, Catherine (“Kate”) Middle- Elizabeth II, while visibly older Given so much uncertainty it is ranks somewhat lower down the 50 more than it had in the previ- ton delighted everybody with her today, exudes almost preternatural even more unlikely that the Queen ladder of the Queen’s priorities. ous government. charm and good looks. Here was serenity and composure. The same will ever abdicate. Abdication is Not because she is not intrinsi- But wait a minute, was there an absolute anathema to her ever cally aware of the dynastic ties not another major event preced- since she lived through the tur- between herself and Prince Philip ing May 7 — didn’t something moil caused by the abdication of with the continent, or of the value happen on May 3? Indeed it did, her uncle, King Edward VIII, in of a functioning European Union. and what a welcome antidote it 1936. Never was there a person Rather, like many of her subjects provided to the gloom and doom more wedded to the duties of her she is likely to suspend judgment of the election campaign. Anoth- office than the current queen, who about what the future might er royal baby was born, the sec- has been “current” since 1952. Nor hold for Britain inside or outside ond child of the Duke and Duch- is there any thought of letting her the community. She has visited ess of Cambridge and the fifth retire, allowing Charles to take the European Commission in great-grandchild of Her Majesty, over as “Regent.” The Queen’s pro- Brussels only once. Closer to her the Queen. Baby Charlotte held gramme of engagements ahead heart is the Commonwealth and, Great Britain spellbound, causing of her 90th birthday in April next of course, the unity of her realm uniform excitement. In a country year will undoubtedly be cut back at home. ridden with centrifugal forces so that Charles and Camilla can The monarchy has long been that call into question the very share more of the daily burden. part of Britain’s constitutional re- foundation of the United King- After the end-of-June state visit ality. As a symbol of constitutional dom, the monarchy holds the div- to Germany the new softer regime permanence above the ebb and ers members of the British Isles The Duke and Duchess of Cambridge present baby Charlotte will undoubtedly kick in. But she flow of party politics it allows the together. In her 90th year the Elizabeth Diana to the world. EPA will not let go of the reins in the British to rest assured that not all Queen is at the pinnacle of her business of reigning. is lost in their country. The Queen reputation. Love, respect and awe Scotland, so she will tell David admirably personifies continuity envelop this most iconic of pub- a young couple with the ability goes for her husband, the Duke of Cameron, must continue to be and stability. Let the new govern- lic figures. Come September 10, to kindle a new sense of affection Edinburgh, who will be 94 in June. part of the realm. Try your best. ment begin its arduous journey, she will have surpassed Queen amongst their contemporaries for British doggedness and the She breathed a sigh of relief when while the Queen, in the words of Victoria as the longest-reigning royals and the monarchy. “keep calm and carry on” at- the referendum for Scottish in- the national anthem, may “reign monarch in the history of Great More importantly, since the titude may stand the Queen in dependence failed last year. She happy and glorious” for many a Britain, with exactly 63 years, birth of Prince George, the Queen good stead as she surveys her would be even more relieved if the month yet. seven months and four days on has been able to look forward to a realm today. In Scotland, the threat of a break-up of the Union the throne. stable succession of three genera- allure of nationalism has raised could be lifted once and for all. One of the most astonishing tions — Charles, William, George. its head: “The lion has roared,” But panic she will not. Panic is not Thomas Kielinger has been a London phenomena of contemporary It’s almost as if posterity has ap- ex-First Minister Alex Salmond part of the Elizabeth II the world correspondent for Die Welt since Britain is the resurgence of the peared in the here and now. Such asserted when the final tally of knows and holds dear. Besides, if 1998 and is the author of the biography monarchic idea. Twenty-five prospects were totally unforeseen 56 SNP members of the House longevity teaches you anything it is “Elizabeth II: das Leben der Queen.”

POLITICO 16 WEDNESDAY, MAY 13, 2015 Forum

POWER STRUGGLE

An aerial view of the landscape of Svalbard. EPA/BERIT ROALD

The tip of the iceberg Arctic island Svalbard is at the center of a new global power race – for influence, and oil

By ELISABETH BRAW ex-Soviet defense expert who ty, and for the past nine decades, the shelf, the shelf’s ownership SvalRak can be used to track now serves as research professor Norwegians, Russians and a has taken on sudden significance. ballistic missiles from Russia’s at the Peace Research Institute scattering of Swedes and other “There are many areas around Northern Fleet; and that the Oslo. Some 100 Russian tourists nationals have lived in civil co- Svalbard that are ice-free year communications line between visited Svalbard last year. existence here. round, and climate change will Longyearbyen and the town of But in this unlikely arena of The Norwegians mostly work increase that,” notes Moe. Nor- Ny-Ålesund is compatible with international power politics, for the state-owned mining com- way claims it owns Svalbard’s NATO systems. Russia has a new competitor: pany or in research or tourism, continental shelf, while Russia A spokesman for Norway’s China, which first opened an while Russia operates its own argues that Svalbard as a unique Foreign Ministry calls the claims Arctic research station on Sval- loss-leading coal mine. Germany, legal entity has its own continen- unfounded, and Niklas Gran- bard eleven years ago. Now, Nor- Britain, Poland, Japan and Italy, tal shelf. “Sweden prefers to back holm, an Arctic expert at FOI, wegian media report, a Chinese too, have research stations in Norway’s interpretation because says he’s seen no evidence sup- SvalbardS isn’t a convenient buyer is interested in purchas- Svalbard. imagine what would happen if ev- porting them. “In the past, Rus- location. With its 2,500-odd resi- ing a large swath of land outside ery one of the signatories would sia has used claims of this nature dents, living in towns accessible Longyearbyen currently owned send ships to drill for oil off Sval- in order to justify its own actions: only by plane, boat or snowmo- by a local family. bard,” observes Bo Theutenberg, ‘Look what the others are doing. bile, this Arctic archipelago is With over 99 percent of Sval- a retired Swedish diplomat who We have a right to do the same,’” Norway’s northernmost outpost bard owned by Norwegian gov- Greenland served as the Swedish foreign he explains. of human habitation — halfway ernment companies or organisa- ministry’s top legal official. “It Until now, Norway has been between the mainland and the tions in which it has a control- would be complete chaos.” reluctant to stand up to its Sval- North Pole. But when Deputy ling stake, this is an exceptional bard challengers. But faced with Prime Minister Dmitry Rogozin opportunity to park oneself in a DISPLEASURE REGISTERED Deputy Prime Minister Rogozin’s of Russia provocatively defied the strategic location. But while China’s presence on outspoken scorn, shared via EU’s travel ban on Russian offi- The World War I-era diplo- Svalbard irks Russia, Moscow’s Twitter, the Norwegian foreign cials by descending on Svalbard TESTING THE WATERS mats who signed the Svalbard main adversary right now is Nor- ministry had no choice but to last month, he didn’t choose his “Nobody is sure what’s going on,” Treaty had no way of predicting way itself. The Svalbard Treaty register its displeasure to Rus- destination at random. In fact, reports Arild Moe, a senior re- that climate change would cause forbids a permanent military sia’s ambassador to Oslo. Svalbard is at the center of a new search fellow at the Fridtjof Nan- the Arctic ice to start melting, presence on the archipelago, but But Rogozin’s mission (con- global power race — for influence, sen Institute, which specialises thereby making the Arctic Ocean according to Russia, Norway, ducted by charter plane, perhaps and oil. in Arctic affairs. “Is the buyer a more attractive for shipping and a NATO member, has secretly in a nod to potential tourists) “The Russians are trying to private investor? Is it the Chinese oil exploration, or indeed that placed equipment suitable for may have had the opposite effect find ways of increasing their government? Or is it just a ploy by there was oil off the Norwegian military use on the islands. from the one he intended. “Sval- presence on Svalbard,” says the owner to raise the price?” In coast at all. According to research by bard is extremely vulnerable, Katarzyna Zysk, an associate any event, China’s new attention According to US government Zysk of the Norwegian Defense and Putin’s Russia is very good professor at the Norwegian De- to Svalbard isn’t sitting well with estimates, the Arctic holds 20 University, Russia has made a at exploiting any vulnerability fense University College. Offi- Russia. “Its position is that the percent of the world’s undiscov- host of claims: that satellites it can find”, says Baev. “Rogozin cially, some 500 Russians live in Arctic belongs to the Arctic na- ered oil and gas resources. But belonging to Norway’s state- has brought Svalbard’s situation Barentsburg, the predominantly tions, but China feels it’s open to the otherwise meticulous Sval- owned telecommunication to the attention of the general Russian town that’s also home everyone,” notes Baev. bard Treaty predates such knowl- company, Telenor, can be used public in Norway.” to a Russian-owned coal mine, China’s keen interest makes edge, and makes no mention of to transmit military signals; That’s putting it mildly. “The but observers say it looks desert- perfect sense. the continental shelf, the seabed that Norway’s atmosphere- Norwegian public was quite ed. Besides, the mine is highly The breathtakingly beautiful protruding from any country. tracking radar station Eisat surprised, and even shocked, unprofitable. archipelago’s unique legal sta- With oil available underneath and the weather rocket test site when they realised that the Rus- Moscow’s unorthodox solu- tus has made it a perfect stage sians were using Svalbard as a tion is tourism. Last month the for global power-wrangling. In part of their hostile rhetoric to- coal company Trust Arktikugol, 1920 Norway, Sweden, Denmark, ward neighbouring countries,” which operates the mine, regis- the United Kingdom, Japan, the “Svalbard is extremely vulnerable, explains Trine Eilertsen, news tered itself as a tourism compa- Netherlands, Italy, France and editor at the daily Aftenposten. ny. And Russia opened a tourist the United States signed a treaty and Putin’s Russia is very good at “This is an arena where we’ve de- camp in Longyearbyen, Sval- that gave Norway sovereignty exploiting any vulnerability it can find.” veloped a fairly good relationship bard’s capital, last year. “Russia over the islands but granted and cooperation with Russia.” has plenty of Arctic towns to every country that signed the promote as a tourist destina- treaty unfettered access to them. Pavel Baev Elisabeth Braw is a correspondent for tion, so in focusing specifically A colourful mix — currently 42 Peace Research Institute Oslo Newsweek, which she joined following on Svalbard it’s making a politi- nations, including Russia and a fellowship at the University of cal point,” notes Pavel Baev, an Monaco — have signed the trea- Oxford.

POLITICO 18 WEDNESDAY, MAY 13, 2015 Opinion Lessons to learn from the US on cyber security Europe would be foolish not to follow the example of the world’s cyberspace leader

BY JARNO LIMNÉLL

he United States Department of De- Tfense released a new cyber strategy on April 23, revealing how the US views cybersecurity in the post- Snowden era. One trend is immediately clear: The strategic use of cyberspace to pursue political goals and seek geostrategic advan- tage is rapidly increasing in today’s world. The new cyberstrategy represents a big step forward in the global cyber policy and military debate. It is far more comprehensive and trans- parent than its predecessor, which debuted in 2011. The world’s most technologi- cally advanced nation wants to be more transparent about its military doctrine, policy, roles, and missions in cyberspace, which makes the strategy interesting to read and evaluate — outside of the US. The US is ahead of Europe when it comes to integrat- Hard drives can be vulnerable to low and moderate level cyber attacks. ISTOCK ing cybersecurity into its foreign and security poli- cies. Europe would be fool- cybersecurity is more holis- The new US cyber strat- requires that cyber command heart of the new US cyber ish not to follow and learn tic and strategic than ever egy contains no “cyber structures must be made strategy. from its example. As with before. The US intelligence 9/11” alarmism. Europe- clear; the US strategy clearly 5) But even though the US is most security issues, there community’s annual threat ans should take heed of stipulates when and by whom the most advanced country are signs that in cyberse- assessment once again US estimations that cyber they should be used. The in the world when it comes curity the default behavior identified cyberattacks as attacks will focus on low guidelines also mean that the to cyber, its new cyber for most European coun- the most serious threat to and moderate levels. These speed and significance of the strategy emphasizes that tries seems to be to follow national security. The same consist primarily of cyber digital arms race will acceler- cybersecurity is ultimately espionage, information op- ate. a team sport. erations, denial of services 4) US cyber strategy can be No one can succeed by and degradation of informa- understood as a strategy of themselves. Governments tion integrity. These are not cyber deterrence. It empha- need to cooperate with the IN THE LOOP dramatic attacks, but rather sizes the US’s capability to private sector and to practice longer-term threats that identify cyber attackers, the basic cyber-hygiene, the most POLITICO’s weekly podcast covers the aim to influence the target creation of well-resourced cost-effective way to increase latest news and debates shaping politics country’s economic compet- cyber force, and readiness to cyber security. International in the European Union. This Wednesday’s Italian language version features POLITICO itiveness or social mood. punish attackers in cyber- cooperation is essential, and reporters James Panichi, Sara Stefanini 3) The digital domain has space. The US hopes to send Europe is a key partner for New episodes of IN THE and Florian Eder, managing editor of become an arena where a clear message: Don’t mess the US. LOOP in English are available expansion, on migration, energy and strategic advantage can be with us in the digital domain. Most importantly, the new on POLITICO.eu every Friday Dalli-gate. won or lost, the latter being Historically deterrence has US cyber strategy emphasizes more likely without serious required three elements: that we have to stay alert to indigenous cyber capabilities. attribution, signaling, and activity in the digital domain. The new US strategy is the credibility. These are at the Nation-states, non-state the US approach. For the emphasis is not present in first public indicator that the actors, as well as skilled ter- US, the biggest challenges European countries, even US plans to use cyberwar- rorist groups and individuals at the moment are: updat- though US Director of fare in conflict. This means are all players in the digital ing all legal frameworks, National Intelligence James that Europe must also place Europeans domain, and their operations strengthening cyber rules of Clapper has estimated that more emphasis on offensive should pay are becoming increasingly engagement for the military, the Russian cyber threat is cyber capabilities, which are sophisticated. European building cyber deterrents, more severe than was previ- increasingly becoming the attention to US nations should take a queue and clarifying the roles and ously thought. norm. estimations that from US Defense Secretary cooperation of the govern- 2) Europeans have been In most European coun- Ashton Carter, who, when ment and private sector. aware for many years that the tries, it is not popular to pub- cyber attacks presenting the new cyber Europeans can learn from US is worried about a “cyber licly discuss offensive cyber will be focused strategy, cautioned, “In cyber five main take-aways from Pearl Harbor” or “cyber 9/11” weaponry. But it is necessary I worry about what we don’t the US’s new cyber strategy. that would cause physical to explain the necessity of more at low and know.” 1) Cybersecurity must be destruction and loss of life. offensive cyber capabilities moderate levels. taken more seriously and But cybersecurity is rarely to the general public. In- Jarno Limnéll is a professor of cyberse- planned strategically in discussed in those terms on creased transparency with curity at Finland’s Aalto University and Europe. The US’s strategy the Continent. regard to offensive weapons VP of cybersecurity in Insta DefSec Ltd. POLITICO Opinion WEDNESDAY, MAY 13, 2015 19

BY MIKHEIL SAAKASHVILI Ukraine has huge human of Ukrainian bureaucrats for 20 years and this time tremendous opportunity potential, but who would will be replaced by a young, has come to an end. New laws rather than a threat. The ost-Maidan Ukraine is invest in a war torn country dynamic, well-paid and will be passed to separate emergence of Ukrainian at war. Not only against that does everything to dis- clean public service. “Pub- business interests from poli- national identity during the PRussian invaders, but courage you from investing? lic service” is the key word tics and anti-monopolistic Maidan protests and the war more generally against sovi- Licenses and permits here and implies a mental regulations will be enforced. should translate into a less etism. This war has a mili- are going to be erased and revolution: Bureaucrats have Independence from Moscow centralized system rather tary front in the East, but as reshaped according to Euro- to serve the public and not and integration into the Eu- than a more centralized important is the political, pean standards. enslave it. ro-Atlantic space will never one. A common European economic, social frontline First steps had already be achieved unless there and patriotic vision should in the rest of the country. been taken by the govern- DEOLIGARCHIZATION is a radical change in the unite every region, but every Resisting the invaders and ment, with the ministries socio-economic structures region should be allowed reforming the nation are two of economy and justice Oligarchs are the pleas of a in Ukraine. Western deci- to rule itself without hav- fronts of a same fi ght: the scrapping a number of re- post-Soviet system. Oligar- sion makers should have no ing to rely on Kiev to build a struggle for the emergence of quired licenses and permits, chy is the main enemy of illusions about it: No matter road or change the roof on a a new, democratic, European but it is only the beginning democracy, liberalism, and how much an oligarch spends school premises. From Lviv Ukraine. of the process and a vast pro-market reforms. In a on PR to convince them that to Donbass or Odessa, the While receiving the chair- amount of work still needs to nutshell, why did Poland suc- he is pro-European, he will rule of law is non-negotiable, men of the Council of the EU be done. ceed in the 90s and Ukraine never gracefully accept the but local self-governance is the key to economic success and political stability. Every Ukrainian should fi nally feel they have a stake in the future of their nation. Poroshenko’s EPA/BERND VON JUTRCZENKA VON EPA/BERND

and the Commission, Donald Tusk and Jean-Claude Juncker, for a key summit in The Ukrainian president outlines the roadmap Kiev, President Poroshenko announced an ambitious to “a new, democratic, European Ukraine” plan, which he summed up as the Four Ds of a new Ukraine: deregulation, debureaucra- tization, deoligarchization, DEBUREAUCRATIZATION did not? Poland had no radical changes involved in Putin’s primary target in in- decentralization. oligarchs, and Ukraine has European integration, fi rst vading Ukraine is to prevent One of the main features of plenty of them. Poland built of which is the equality of all the Maidan revolution from DEREGULATION post-soviet societies is the stable, transparent institu- citizens under the law. turning into a successful inability of a plutocratic bu- tions and a booming market Recently, Poroshenko experience of democratic, so- Overregulation is an essen- reaucracy to take decisions. economy while Ukraine started to take realistic steps cial and economic reforms on tial characteristic of Soviet Built to implement orders has an unstable political towards diminishing the his doorstep. The only way to legacy, a powerful killer for coming from Moscow, the landscape and a shrinking infl uence of oligarchs in the defeat his neo-imperialistic investors and a perpetual Ukrainian bureaucracy was economy. Oligarchs have energy sector, the largest ambitions is precisely to generator of corruption. left purposeless in 1991 and turned elections into a black hole of the Ukrainian make sure it happens. Presi- Today, getting a construc- started to serve a local elite farce by dividing candidates economy. This has tradition- dent Poroshenko understood tion permit is an impossible behaving as if it owned the among themselves. The very ally been a sector, divided it very well, which is why he challenge unless you bribe state. Bureaucracy used to idea of statehood has also between several oligarchs keeps stressing that the war half a dozen useless agen- be an instrument to colonize become a joke since public who controlled government in the East cannot be a pre- cies. According to World the people. It is built accord- servants are on their payroll subsidies with their political text to postpone reforms. Bank Ease of Doing Busi- ing to the logics of feudalism. rather than a budget. Maidan leverage, and refused to pay Radical changes are the ness Ranking, you need a Every agency is a separate was a revolution for Europe, taxes or allow any competi- best way to counter Russian minimum of 21 days to open fi efdom that refuses to share but also — fi rst and foremost tion in the fi eld. aggression. On this front too, a company, you have to go its information with the — an anti-oligarchic upris- Ukraine and its leadership through one of the longest others. There is no common ing. Nobody should forget it, DECENTRALIZATION needs Europe’s full support. custom procedures in the database or decision-making or history might repeat itself. world and you’re expected process. Oligarchs have taken ad- Ukraine is a very diverse Mikheil Saakashvili, the president of to wait an average of 270 The fi efdoms will be vantage of ministers, parlia- country consisting of many Georgia from 2004 to 2013, is chair of days to get electricity to your destroyed and the services mentarians, policemen, jour- di erent groups. We should the International Advisory Council on business. merged. The Mexican Army nalists, and tax inspectors look at this diversity as a Reforms for the president of Ukraine. POLITICO 20 WEDNESDAY, MAY 13, 2015 News

cargo planes. The whole Estonian DEFENCE BUDGET PLANS FOR 2015 military, with 6,400 APG (half of them conscripts) doesn’t have a Poland and the in selected EU and NATO states single tank, although it can field Belgium 5,9 % about 80 armored personnel car- riers, enough for two battalions. Bulgaria — 5,4 % Estonia has ordered a bat- Baltics rearm Czech Republic 3,7 % talion’s worth of CV90 tracked fighting vehicles from Sweden, DEFENSE FROM PAGE 1 on defense. Neighboring Latvia, Denmark — 5,5 % said Andres Sang, a spokesman just as exposed to the Russians Estonia 7,3 % for the Estonian Defense Minis- although a NATO base with Ger- and also harboring a large ethnic try. Estonia is also buying Javelin man, American and other allied Russian minority, spends an al- Finland — 2,3 % anti-tank missiles; both systems troops permanently located in liance record low of 0.9 percent, France — 3,4 % are expected to come into service the region remains the goal. although it recently made a com- next year. Estonia is also spend- Because Poland has by far the mitment to reach 1 percent this Germany — 0,5 % ing €113 million to buy 44 infan- largest military in central Eu- year. “Boosting national defense Greece 2,7 % try fighting vehicles from the rope — and has a well-justified capabilities is our priority,” said Italy — 4,9 % Dutch. “If it’s war, so be it,” says historic wariness of Russia — in Raimonds Vejonis, the defense Brigadier General Meelis Kiili, the event of a crisis the hope is minister. Latvia 15 % commander of Estonia’s volun- that Polish tanks and APCs will Lithuania 50 % teer defense league. rumble north to protect the WEAKEST PART OF NATO Lithuania reintroduced mili- Baltics. “There are contingency “Unfortunately, the Baltic states Netherlands 1,4 % tary conscription earlier this plans. It’s clearly spelled out who are militarily the weakest part of Norway 5,6 % year, something President Dalia does what,” says a Polish foreign NATO, because we have a small Grybauskaitė said was needed in ministry ofcial. “These plans population, flat terrain, we’re Poland 20 % light of “new geopolitical circum- will be carried out.” exposed, with very long lines of Portugal — 11 % stances.” Lithuania also recently The danger is there. Russian communication with our allies,” agreed to a deal to buy 12 German warplanes aggressively approach said Sakkov. “Our defense forces Romania 4,9 % PzH 2000 self-propelled howit- the airspace of the Baltic coun- are not very strong, for objective Slovak Republic 7 % zers — giving the Lithuanian mil- tries and are a frequent presence reasons, because we started to Spain 0,5 % itary a punch it currently lacks. over the Baltic Sea. Russian forc- build up just 20 years ago.” Latvia is the only Baltic coun- es stage war games in the area. The Estonians are increasing Sweden 5,3 % try without conscription, and has Eston Kohver, an Estonian intel- their defense spending by 7.5 per- Turkey 7,8 % no plans to reintroduce manda- ligence ofcer, was kidnapped by cent this year, according to the tory military service. Last year, it the Russians last year and is be- Stockholm International Peace had only three ancient Soviet era ing held in Moscow despite EU Research Institute, the Latvians MILITARY SPENDING 2015 tanks as its armored forces, but protests. are up by 15 percent, the Lithua- is buying 123 CVR In Russia’s Kaliningrad region, nians by 50 percent and the Poles Russia $ 66.000.000.000 tracked combat ve- sandwiched between Lithuania are ramping up their spending on hicles from the UK, and Poland, forces have more helicopters, tanks, rockets and Poland $ 9.900.000.00 as well as anti-tank missiles and than doubled in recent years. rifles by 20 percent. Lithuania $ 450.000.000 more vehicles from Norway. There are reports that Russia is “The political and military cri- Although the permanently again putting nuclear capable sis in Ukraine has led to a major Estonia $ 436.000.000 based NATO troops the region Iskander missiles, which have a reassessment of threat percep- Latvia $ 269.000.000 wants are still a distant prospect, 500 km range, into the district. tions and military strategies in the alliance has been beefing up The Estonians, for one, are much of Europe,” notes SIPRI. Source: SIPRI / Infographic: POLITICO its presence, creating a “very realistic about what kind of fire- The Poles have started a €32 high readiness” spearhead force power a military budget of €412 billion modernization program, that performed its first exercises million (a tiny fraction of Rus- and the bulk of new weapons sys- Soviet-era equipment, and with of US APCs wending through six last month. The US sent a rotat- sia’s annual spend of 3.2 trillion tems — from anti-missile systems western Europe reluctant to central European countries in ing crew of 3,000 soldiers to the rubles, or about €55 billion) can to helicopters and tanks — will be permanently base troops in the a bid to reassure them that the Baltic in March, along with 750 buy. deployed by 2018. region, the three Baltic repub- NATO alliance and the US would tanks. “The deterrence force really The Poles have even formu- lics are pressing hard for support protect them in the event of a But the worry is that because needs to be long-term — no one lated a defense policy called the from the US. Russian attack. “Until last year, of the growing danger posed by wants to say the p-word, ‘perma- “Komorowski Doctrine” after Originally built as a Red Army Estonia and Poland were known an aggressive and unpredictable nent,’ but we can use whatever President Bronisław Komorows- air base, Tapa is now a central as the annoying Russophobic na- Russia, the new equipment being euphemisms we can find,” said ki, which calls on the country to training ground for Estonia’s tions in NATO,” says Lieutenant brought into service across the Sven Sakkov, undersecretary for be able to defend itself without armed forces — which need all Colonel Jaak Tarien, commander region may see use. defense policy in Estonia’s De- immediate allied assistance. the help they can get to strength- of the Estonian Air Force. “Now, “No doubt there will be a fense Ministry. “I have openly “The longer we observe NATO’s en their militaries. everybody is saying, ‘oh, that’s fight,” said Raivo Vare, an Esto- joked that we would like allied reluctance to support Ukraine — Tapa has hosted American what you meant.’” nian businessman and former forces to be stationed in Estonia a country that was recently con- soldiers as part of NATO’s Op- But after decades in which war politician. “Estonians are stub- eternally, but if that is not pos- sidered likely to integrate with eration Atlantic Resolve, which seemed to disappear as a realistic born people, and they’re still liv- sible, permanently is alright.” the alliance — the more we are brought battle tanks and Stryker threat and the countries of cen- ing through their traumatized Until that happens, Estonia aware that we have to count on armored personnel carriers to tral Europe allowed their defense memories of 1939-40 (when the is taking matters into its own ourselves,” said Zbigniew Pisar- Estonia, part of a broader mis- potential to atrophy, the scram- country was incorporated into hands. It is one of a handful of ski, head of the Casimir Pulaski sion involving Latvia, Lithuania ble to rebuild military muscle is the USSR). They can’t aford it a NATO countries to actually fol- Foundation, a Warsaw-based and Poland. Tapa was also the going to be long and very expen- second time.” low through on its commitment security think tank. But until starting point of Operation Dra- sive. Tarien commands a force and spend 2 percent of its GDP the Poles get rid of their rusting goon Ride, which sent a column of only four helicopters and two With reporting by Ben Judah

FRENCH REGIONS MERGER ally runs a mile from anything PANIC: It’s a topsy-turvy world resembling an unrecognized in which even French regional BRUSSELSINFLUENCE By James Panichi and Quentin Ariès state, fearing the ire of the EU’s public servants need to start 28 member countries who like to worrying about job security. Yet pretend their separatist move- from January 1, 2016, France is ency regime), there is no short- a sprawling, logic-defying legal The documents suggest that ments don’t exist. This reluc- undertaking a regional purge age of them. According to Ger- case and it may not be the last. when Trentea was fired from her tance to mingle with sub-state which will reduce the govern- many’s ofcial representation to Yet OLAF’s latest foray into the role with the Vienna-based Fun- actors will be put to the test ments from the current 22 to the EU, there are 15 delegations matter (the ofce’s statement has damental Rights Agency (FRA), when lobbyists from the Confed- 13. This is creating restlessness in Brussels for 16 Bundesländer been seen by Brussels Influence) she took her case to the Civil eration of Independent Football among staf of the regions’ ofc- (states) — the only two states indicates just how complex it has Service Tribunal (CST). There, Associations (CONIFA) start to es in Brussels — it goes without who are prepared to share facili- all become. According to the doc- as she alleged in a subsequent swan around the Berlaymont. saying that all 22 currently have ties are Hamburg and Schleswig- uments, what started of as a run- written submission to the Eu- CONIFA, established in 2013, is delegations to the EU. Brussels Holstein (it’s called the “Hanse- of-the-mill story of an EU insti- ropean Court of Justice (ECJ), the grouping of football leagues Influence is told that Rhône- Ofce”). Italian regions are also tution clashing with an internal her case was handled by a court (football is what Americans call Alpes and Auvergne are already immune to cost-cutting, with all auditor after she raised concerns judge who was also being paid soccer) from non-states. There’s merging into one ofce but there 20 regions lobby-ready. over a procurement process has by the FRA for legal advice. In a Romani team; Padania (north- is uncertainty about what will now descended into the plot of a short: Trentea alleges (relying ern Italy) is represented; Occita- become of the rest — and staf are OLAF, THE JUDGE AND THE spy novel, with Trentea claiming on documents she has obtained) nia (southern France) is ready to getting worried. WHISTLEBLOWER 1: The recent her home address was passed on that there was a conflict of inter- take to the pitch. decision by the EU’s anti-fraud to a private eye who twice banged est. The response of the ECJ was REGIONAL RESISTANCE: Because ofce OLAF to open an investi- on her door late at night demand- to say that its code of conduct did regional ofces are able to lobby gation into the case of Romanian ing that she sign documents in a not cover such an eventuality, so To sign up for a complimentary for local industries without hav- whistleblower Cornelia Trentea language she did not speak. its hands were tied. trial of the weekly Brussels ing to appear on the EU Trans- is hardly surprising. It is not Infuence email newsletter, sent parency Register (governments the first investigation OLAF has OLAF, THE JUDGE AND THE WHIS- SECESSIONIST FOOTBALL: The on Mondays, go to Politico.eu/ are exempt from the transpar- opened into what has become TLEBLOWER 2: It gets weirder. European Commission usu- registration POLITICO News WEDNESDAY, MAY 13, 2015 21 She wants to explain how every euro is spent

GEORGIEVA FROM PAGE 1

Georgieva is clearly proud of her native country — she organizes an annual folk-dancing event in Brussels — but even she recently joked that 96 percent of Bulgar- ians don’t trust their judiciary and that the other 4 percent must be judges. Her first appointment to the Commission, in 2010, came after an earlier Bulgarian candi- date was accused of corruption. Her fast-rising trajectory has many wondering whether Geor- gieva might seek to lead the Unit- ed Nations when Ban Ki-moon leaves ofce at the end of 2016. The job of secretary-general has been expected to go to a candi- date from Eastern Europe, but a UN diplomatic source says the eastern bloc countries have yet to mount an efcient campaign to secure the post. “They aren’t ready for all the necessary vote swaps” to win approval in the UN assembly, a second diplomatic source said. “They couldn’t answer basic questions about whether any bipartisan consensus had been reached internally, or across the Kristalina Georgieva opens the “Grand Horo Dance” at the Grand Place of Brussels. The event took place for a third year in a row at the eastern bloc.” initiative of the vice president as part of the “Balkan Trafk!” Festival 2015 for music and arts. EC / AUDIOVISUAL SERVICES Another obstacle: Bulgaria already has a candidate for the post in UNESCO head Irina Bo- plans,” she said. senior aide to President Juncker, wants to complete by the end of other] people to know I am not kova. So Georgieva would have Georgieva is betting that her who likened the Commission’s summer. The reviews are being after them.” to defeat an insider from her focus on discipline — rather than processes to the French civil performed by a mix of in-house But ofcial spokespeople own country. But the UN source making the traditional pleas for service of 30 years ago. Georgieva and external consultants, and confirmed she is also guided by said an important consideration “more Europe” and the money said that first among her changes closely resemble an overhaul Juncker’s all-consuming priority was that a successful candidate that requires — will prove politi- is the rollout of “360 degree” per- she managed during the last of aligning departmental agendas would have to be “amenable to cally acceptable. formance reviews, in which Com- Commission, when she ran the with the “10 political priorities” both Russia and the US.” Geor- The approach won an early vic- mission ofcials will be subject to humanitarian aid department. he presented to the European gieva’s successful stint at the tory in December, when Georgie- feedback from junior staf as well “What I want to do is first look at Parliament in 2014. That means World Bank included four years va successfully shepherded a €3.5 as bosses. the horizontal services,” she said. other departments are facing in Moscow managing Russia’s billion budget for 2015 through a Alongside this, all depart- “Increase the ratio of staf to one cuts as early as June. Georgieva funding portfolio. process that required agreement ments are undergoing rapid HR ofcer, same in IT. I want to has already won approval from Georgieva herself refused to from the European Parliament macro-reviews that Georgieva do it first with HR — I want [the colleagues to move or efectively comment on her future plans, fo- and 28 member states. demote seven directors at DG cusing instead on the challenge of “She didn’t ask for a euro she GROW— the directorate-general reforming at EU level. But if she didn’t need,” said one of the ne- for internal market, industry, succeeds in shaking up the Brus- gotiators in the process. “She was TWEET STREET entrepreneurship and small sels bureaucracy, she will be well playing an honest broker role.” businesses. Internal Commission placed for another big interna- A spokesperson from one of the By JULES JOHNSTON documents seen by POLITICO tional role. EU’s budget-hawk member states indicate that DG GROW will end “You have no idea how big my said: “She doesn’t wag her finger @SpiegelPeter: URGENT: @J_ up losing around 200 staf. current job is,” Georgieva said. at countries like us. She listens Dijsselbloem speaks in Dutch. Unlike the Commission’s six oth- and that goes down well.” Adds Mid-sized country in northern A SELLABLE STORY er vice presidents, who have only one director-general who reports Europe listens. Georgieva’s spokesperson Al- small central teams supporting to Georgieva, “She is perceived exander Winterstein said she them, Georgieva has thousands as a very serious partner for both @BBCJLandale: Politics can be so started with GROW because of of staf in 10 departments report- Parliament and Council. She’s brutal. Tory MPs have taken over the the “high potential for rational- ing to her. respected because she has a past Lib Dems’ table in the Commons tea ization” — Commission code for a Among the changes she’s try- of authority based on discipline.” rooms. bloated department. It’s a recur- ing to implement: end the atti- She’ll need it. Georgieva, ring problem that partly explains tude of entitlement to taxpayer among other goals, wants to @Unnamedinsider: Lord Sugar has why Georgieva has created the money that has gripped the create an app that explains how quit Labour, he’s also deleted his post of “Chief Economic Analyst Commission and Parliament every euro is spent by the EU. MySpace page and closed his of the Commission.” for decades; subject ofcials to There is already concern that Blockbuster account. While trade unions physically tougher performance reviews; such openness will only invite @mark_johnston: :) #Gazprom blockaded Georgieva’s predeces- and reorganize Commission de- more scrutiny. versus renewable energy. #eu2030 sor in 2013 for not doing more to partments so their structure and One recipient of EU funding, #energyunion win them salary increases, none goals match President Juncker’s who requested anonymity, said of the three unions contacted by political priorities. that EU processes are so com- @JamesMelville: The Tories have POLITICO were willing to criti- plicated, and reviews of funding begun cleaning up the mess they cize the current plans. “EXTREME SPORTS” reports so weak that “in the end inherited from the last The vice president herself Scrutiny of EU spending is higher we completely lie” about how the government... claims “everyone is ready for than ever. National governments organization uses the EU money change,” based on a listening facing their own tough economic it receives. A full-disclosure app @BrunoBrussels: Afer a weekend tour she conducted during her times continue to pressure Brus- could simply make it easier to ‘festival of leaks,’ @MargSchinas first weeks in ofce. sels — the UK’s David Cameron spot the abuses throughout the and @NatashaBertaud ‘advise Ultimately though, Georgieva recently called cutting the budget system. caution’ on texts will need the College of Com- his signature EU achievement, missioners united behind her. and his re-election victory has SUBJECT TO FEEDBACK She is relying on their political given his Brussels reform mes- Along with changing the EU’s @DanJamesReed: A new instincts rather than their afec- sage new momentum. spending culture, Georgieva is candidate has come forward for the tion to carry the day. Georgieva’s predecessor as intent on upending its manage- #UKIP leadership #GE2015 “I tell them and they know it, budget commissioner, Janusz ment culture. “Change is now I would only be credible and I Lewandowski, called the job “ex- permanent. We have to learn to @mvanhulten: I’m hereby starting would only carry water for you treme sports.” Former Commis- adjust,” Georgieva said, adding a campaign to replace the #Brexit if you help me … help me to have sioner Neelie Kroes, who visited that the Commission’s 33,000 hashtag with #EUreform, because @NBCNewYork: Pope Francis a story that is a sellable story to Georgieva last week, highlight- staf will just have to live with despite what you may think IT’S named an honorary Globetrotter the taxpayer,” she said. “If people ed the unwieldy nature of EU the consequences. NOT ALL ABOUT YOU, UK. http://4.nbcny.com/wC0K60v don’t know what we do with their spending as another challenge. “If you want to reform the EU money, why would they support “Not even Stalin had seven-year you have to start with HR,” said a us?” POLITICO 22 WEDNESDAY, MAY 13, 2015 Cartoon Carousel

By Tom Janssen Published in Caglecartoons.com, May 11, 2015

By Petar Pismestrovic First published in Kleine Zeitung, February 21, 2015

By Petar Pismestrovic First published in Kleine Zeitung, February 1, 2015

By Chris Riddell — First published in The Guardian, May 10, 2015 POLITICO WEDNESDAY, MAY 13, 2015 23

By Nate Beeler First published in The Columbus Dispatch, May 7, 2015

By Matt Wuerker — First published in POLITICO.com, May 1, 2015 By Adam Zyglis — First published in The Bufalo News, May 8, 2015

By Paresh Nath — First published in The Khaleej Times (UAE), May 7, 2015 By Rick McKee — First published in The Augusta Chronicle, May 6, 2015 B:8.25” T:8” S:7” T:10.75” B:11” S:10”

TO SOMEONE WHO NOT ONLY REACHED FOR THE SKY, BUT ALSO WENT THERE. GE congratulates Jim McNerney on winning CEO of the Year. From serving as CEO of GE Aviation to his current position as Chairman and CEO of Boeing, Jim’s vision and leadership has allowed him to reach incredible heights.

This advertisement was prepared by BBDO New York Filename: P55079_A_GE_ICO_V3.indd CLIENT: General Electric Proof #: 1 Path: Studio:Volumes:Studio:MECHANIC...echani- Created: 3-18-2015 11:46 AM PRODUCT: 2015 Program Guide – Congrats Jim cals:P55079_A_GE_ICO_V3.indd Saved: 5-8-2015 12:05 PM McNerney Operators: Robison, Blane / Casanova, Joe Printed: 5-8-2015 12:07 PM JOB#: P55079_A Print Scale: None SPACE: Page 4/C BLEED: 8.25” x 11” Fonts Ink Names TRIM: 8” x 10.75” Helvetica Neue (93 Black Extended, 55 Roman), GE Inspira (Bold, Cyan SAFETY: 7” x 10” Regular), Minion Pro (Regular) Magenta GUTTER: None Graphic Name Color Space Eff. Res. Yellow Black PUBS: Chief Executive 2_CMYK.psd (CMYK; 200 ppi), GE_LOGO_WHT_I.ai ISSUE: None TRAFFIC: Mary Cook ART BUYER: None ACCOUNT: Elizabeth Jacobs RETOUCH: None PRODUCTION: Mike Musano ART DIRECTOR: Sara Kara x1a A