Thursday, January 13. 2011Europe and China: Weapons for Investment?Posted by Joerg Wolf in European Issues, International Economics, Transatlantic Relations on Thursday, January 13. 2011
Kurt Volker, a former U.S. ambassador to NATO and now managing director at Center for Transatlantic Relations at Johns Hopkins University commented: "If all this were to play out - that is, lifting the embargo, subsequent sanctions, etc. - it would be a new low point in U.S.-E.U. relations." (HT: NATO Source) I agree. I hope the EU does not lift the arms embargo. In my opinion NATO countries should not sell any arms to non-NATO members.
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Defined tags for this entry: AC, Bailout, China, Debt, Defense, deficit, Economics, European Union, Moral Values, Strategy
Tuesday, November 23. 2010Blaming Each Others Financial PoliciesPosted by Joerg Wolf in International Economics, Transatlantic Relations on Tuesday, November 23. 2010 From a Washington Post editorial:
A good defense of German policy against US criticism of its "export-led growth model" can be found on Atlantic Community: Stop Lecturing and Do Your Homework, America!
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Defined tags for this entry: AC, Economics, Euro, European Union, Finance, Financial Crisis, Germany
Sunday, October 3. 2010Reunification: Germany Succeeds in Icy NegotiationsPosted by Joerg Wolf in European Issues, German Politics, Transatlantic Relations on Sunday, October 3. 2010 Germany has been criticized for a self-centered foreign and economic policy lately: Afghanistan, economic stimulus, Greece. Germany's commitment to the transatlantic alliance and European integration is called into question. I wonder how much of this is influenced by German reunification 20 years ago. We achieved our main goal (the jackpot) back then and need allies less since. Besides, our friends in the West were not very supportive of our main foreign policy goal, if the Spiegel's summary of the road to unification is to believed. President Bush is described as "rather indifferent to the question of unification" and erecting "the highest hurdle when he stated that the United States would only agree to reunification if the new Germany were brought into the NATO fold."
Why did Gorbachev agree so quickly? According to Spiegel he was so busy with the Soviet Union's domestic troubles that he did not care that much about Germany. (Another reason was that he was a moralist and did not want to be seen as an extortionist by putting more demands on Germany.) Though, opposition to reunification grew in the West in 1989 and 1990: Continue reading "Reunification: Germany Succeeds in Icy Negotiations" Tuesday, April 27. 2010Progress in the BalkansPosted by Andrew Zvirzdin in European Issues on Tuesday, April 27. 2010
There has been a lot of positive news coming out the Balkans recently. Some of the highlights include:
(1) Albania and Bosnia-Herzegovina will soon be approved for visa-free travel to Europe. According to a recent EU report, the two countries have made significant progress and could be cleared for unrestricted travel in the Schengen area as soon as October. (2) Two weeks ago, Croatian president Ivo Josipovic apologized for his country's role in the Bosnian wars. The apology followed Serbia's apology for the Srebenica massacre one month ago. Serbian President Boris Tadic has taken a decidedly more conciliatory tone, promising to work towards reconciliation between the nations in the region. (3) In a historic summit, presidents from Turkey, Bosnia-Herzegovina, and Serbia met in Istanbul this weekend and agreed to intensify efforts to resolve border disputes and encourage greater regional cooperation. The meeting was an unprecedented show of cooperation between BiH and Serbia, and the presidents emphasized their desire to continue the cooperation in the future. (4) NATO continues its tentative expansion into the Balkans with Bosnia being offered a Membership Action Plan (MAP) during the recent summit of NATO ministers. Significantly, Serbia has stated it supports Bosnia's NATO aspirations. NATO also discussed "militarily disengaging" from the country, removing the remaining peacekeepers. All is not perfect in the Balkans of course. Serbian fugitive Mladic remains at large, unrest continues in Kosovo, and significant minorities in Croatia and Serbia continue to vociferously deny any wrongdoing in the Balkan wars. But all things considered, there are many reasons to be optimistic. Personally, I believe the lure of membership in the European Union and NATO are valuable catalysts in motivating the needed reforms. The progress in the Balkans is incremental and slow but it is substantive. That should offer some assurance to NATO officials struggling with Afghanistan and to EU supporters wondering about the long-term relevancy of the Union. Sunday, April 25. 2010Has Germany Changed to the Worse?Posted by Joerg Wolf in European Issues, German Politics on Sunday, April 25. 2010 John Kornblum, a former American ambassador who has lived for nearly four decades around Germany, responds to the many articles that question Germany's commitment to the European Union:
Unfortunately, his NY Times op-ed does not elaborate this dilemma sufficiently for me to understand it. However, he reminds us that Germany pursued self-interests in the past as well. Though, I don't think Germany pushed for NATO enlargement like this:
It's a great analysis, but it would be even better, if Kornblum would get into more detail regarding these remarks: "Most maddening for most thinking Europeans is the knowledge that the Germans are right." and "European fecklessness seems to worry Washington officials these days." Any readers with interpretations? Friday, February 19. 2010Yanukovych: Ukraine Will Be a Bridge Between East and WestPosted by Kyle Atwell in European Issues, Transatlantic Relations on Friday, February 19. 2010
Ukraine's President-elect Viktor Yanukovych writes in the Wall Street Journal that “Ukraine Will Be a Bridge Between East and West”:
Let me say here, a Yanukovych presidency is committed to the integration of European values in Ukraine. Ukraine should make use of its geopolitical advantages and become a bridge between Russia and the West. Developing a good relationship with the West and bridging the gap to Russia will help Ukraine. We should not be forced to make the false choice between the benefits of the East and those of the West. As president I will endeavor to build a bridge between both, not a one-way street in either direction. We are a nation with a European identity, but we have historic cultural and economic ties to Russia as well. The re-establishment of relations with the Russian Federation is consistent with our European ambitions. We will rebuild relations with Moscow as a strategic economic partner. There is no reason that good relations with all of our neighbors cannot be achieved. Can Yanukovych bridge the gap between East and West? Will he even try, or is this article simply political posturing to console those concerned about his pro-Russia stance?Yanukovych was the most pro-Russia candidate, and has quickly sought to improve ties with Russia; he already suggested the Russian Black Sea Fleet may stay in Ukrainian waters and made clear Ukraine will not seek NATO membership. Ukraine will however continue moving toward EU membership (Businessweek). His rival in the campaign and a leader of the 2004 western-supported Orange Revolution, Yulia Tymoshenko refuses to concede, and has requested the high court in Ukraine overturn the election results – an outcome seen as highly unlikely. President Obama, the EU and NATO have already sent congratulations to Yanukovych. With Yanukovych ditching NATO and seeking to improve ties to Russia and EU membership, the United States is the biggest loser from Yanukovych’s election. This outcome should not come as a surprise however: popular support in Ukraine for NATO membership has been consistently at or below 30 percent over the past few years, making NATO membership never really likely anyhow (AR forecasted this here). * Ukraine will likely continue to develop a partnership with NATO, though not membership; * Ukraine will want pragmatic and productive relations with the United States, and still seeks EU membership; * The acceptance by international observers of Yanukovych's election and his intent to pursue EU membership both support the fact that while the Orange Revolution leadership has been voted out, the western values it respresented - a democratic and free society - are now embedded into Ukraine. Whether or not Yanukovich can balance between the West and Russia is tough to predict. However, Yanukovich's intent to pursue this balance is likely a genuine aspiration. Wednesday, February 3. 2010The EU's Increasing Irrelevance to the USPosted by Joerg Wolf in European Issues, Transatlantic Relations on Wednesday, February 3. 2010 Reuters reported yesterday:
Oh, that will make many in Europe's political class angry. Summits are so important to them, especially the "family photo" is considered of vital importance to national security. An unsentimental President Obama has already lost patience with a Europe lacking coherence and purpose, opined Nick Witney and Jeremy Shapiro with the European Council on Foreign Relations and the Brookings Institution respectively in November 2009. Apparently, last year's EU-US summit in Prague, "at which President Obama was subjected to 27 interventions from the EU's assembled heads of state and government was an eye-opener for his administration." Witney and Shapiro argued in Towards a post-American Europe: A Power Audit of EU-US Relations:
Will Europeans soon miss President George W. Bush? Related posts on Atlantic Review: Merkel got back-rubs from Bush, but she gets only a cold shoulder from Obama "Europeans Mourn End of Bush's Presidency" Bush's Farewell Tour: Looking Ahead and Missing the Favorite "Punching Bag" Thursday, January 7. 2010The Annual "Will Europe Freeze?" MonthPosted by Andrew Zvirzdin in International Economics on Thursday, January 7. 2010
Ah yes, it is that wonderful time of year. Fresh snow, college football bowl games in the US, a new year...and uncertainty surrounding European energy security. Some things never seem to change.
This year adds a few new wrinkles to the annual, "Will Europe Freeze?" month however. For the first time in years, the center of energy disruption does not appear to be the Ukrainian border. Ukraine has paid in full and on time for its use of Russian gas during 2009, and both Russia and Ukraine appear determined to avoid a gas war during an election year. So this year, the energy disputes have shifted north. First, Belarus and Russia remained locked in heated (excuse the pun) negotiations about oil supply prices between the two countries. Russia has already cut oil supplies to Belarus once this week and many analysts expect further restrictions in the weeks to come. The clash feels all too familiar: Russia, frustrated with its neighbor's overtures to the West decides to throw its weight around in the energy sector to bring it to heel. Of course, the blame also resides with Belarus which has for years subsidized its economy through cheap energy from Russia. If the country truly wants to play on the international arena, it must now be prepared to pay market prices for its resources. Second, Lithuania has been compelled to shut down its aging nuclear power plant on New Year's Eve, leaving it completely dependent on Russia for its energy supply. The closure was required by the European Union, but leaves Lithuanians feeling very nervous. Russia has already played its energy card in the Baltic, shutting down its oil pipeline to Lithuania in 2007. Energy supply form other EU countries remains extremely weak, and a dramatic increase in energy prices is very likely for this Baltic country already struggling through an extremely difficult recession. Finally, the UK is approaching capacity limits as it struggles with an extremely cold winter. The Wall Street Journal is reporting today that Britain only has gas storage capacity equivalent to 4% of annual consumption, compared with over 100% storage in the US and 19% in Germany. And National Grid warned this week that supply will be tight in coming weeks. None of the preceding events really come as a surprise. Despite that, Europe has again been caught off guard. The Spanish Presidency is trying to salvage a July Commission proposal regarding gas security and supply but countries continue to insist the Commission is overstepping its authority. And efforts to encourage greater infrastructure developments within Europe remain merely efforts. So what will it take to really see the development of a true European energy policy? In the US, it took two oil embargoes before the country started developing strategic reserves. And the price of oil reached $160 a barrel before consumer's behavior started to change. Readers Pat and Pamela both suggested that the Atlantic Review analyze Russian and European energy policy in the upcoming year. This will certainly be an important topic, particularly in the first few months. But at first glance, little has changed. The Russian energy policy of 2010 seems identical to that of preceding years: throw its weight around in the natural resource arena to extract concessions in the political realm. And there still is no real European energy policy to discuss. Europe continues to shiver and simply hope the heat stays on.
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