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Showing posts with label EU European Union. Show all posts
Showing posts with label EU European Union. Show all posts

20 August 2023

Germany’s far-right party is more popular than ever — and more extreme 18AUG23

 

" If AfD is the answer, how stupid is the question? "

HOPEFULLY the popularity of the AfD is just protest "voting" and not a move towards fascism like politics in Hungary and to a lesser but still disturbing extent in Poland, Florida and Texas. That members of extreme right wing political parties have visited Russian occupied Ukraine should be a warning to Germans of the kind of government these people want to impose on Germany and the devastating, destructive and criminal results of electing a fascist German government.  This from the Washington Post.....

Germany’s far-right party is more popular than ever — and more extreme

August 18, 2023 at 4:00 a.m. EDT

Loveday Morris is The Washington Post's Berlin bureau chief. She was previously based in Jerusalem, Baghdad and Beirut for The Post. Twitter
Kate Brady is a researcher and reporter based in The Washington Post's Berlin bureau. She has been at The Post since early 2023 and has been reporting from Germany for the best part of a decade. Twitter


BERLIN — Maximilian Krah, the newly elected top candidate of the far-right Alternative for Germany for the European elections, doesn’t believe in watering down political messages to win centrist votes.


Hailing from what analysts describe as the party’s ethno-nationalist wing, he has described Pride Month as “disgusting,” is a proponent of deporting immigrants and peppers his speech with allusions to white-supremacist conspiracy theories.

“We have become clearer in what we what we want and what we think,” the 46-year-old rising star of the far right said of his party, known by its German acronym AfD. “We have more of the Trumpian style of communication.”


Germany’s far right stokes new grievances for voters: Mask rules and vaccine mandates

Far-right experts say his recent election as lead candidate to represent the party in the 2024 European Parliament elections was just another sign of the AfD’s increasing radicalization.

But while the party is becoming unpalatable as a partner even to some of Europe’s most radical right-wing populists, it is attracting a record number of German voters.

In recent months, the AfD has surged to become the second strongest political force in the country after the opposition Christian Democrats, polling at around 21 percent, ahead of all members of the country’s liberal governing coalition.

Buoyed by the cost-of-living crisis and immigration angst, its rise has caused soul-searching for a country still mindful of its Nazi past. And for the conservative Christian Democrats, which are leading the polls, the increasing temptation to cooperate presents an existential dilemma.

The AfD is in a process of “progressive radicalization” and is “very, very far to the right” in comparison to other far-right parties in Europe, German political scientist Wolfgang Merkel said. “The strange thing so far is that this radicalization has not been punished in voter polls.”

Members of the German citizen initiative “Grannies Against the Right” hold up placards during a demonstration against the far-right Alternative for Germany in Magdeburg in July. (Ronny Hartmann/AFP/Getty Images)

While other European far-right parties, including Italian Prime Minister Giorgia Meloni’s Brothers of Italy, have toned down and turned their focus to courting more centrist conservatives, the AfD stands apart.

“The experts and pundits always tell us that if you want to have better election results, you have to give up your positions, you should become a more centrist style party,” said Krah, who has eight children by three women and also dishes out dating advice for German men on his TikTok channel.

“We are not the kind of singer that asks what your audience wants and then sings a song,” he said, speaking via Zoom from Brussels. “We have a clear ideology.”


Far-right German party members to tour Russian-held regions of Ukraine

At the European Union level, even Hungarian populist Prime Minister Viktor Orban last year said he was “forced to sacrifice relations with the AfD on the altar of good international relations” while far-right Italian politician Matteo Salvini has indicated he’s looking for more centrist allies.

“The AfD is openly radicalizing, whereas other European populist parties have gone the other way,” said Benjamin Höhne, a political scientist at the University of Münster. “They have a hardcore extremist core, but around the party they try to give a normal image. But not in Germany. Still, it works for them.”

At the summit in Magdeburg over weekends in late July and early August, 600 candidates vied to represent the party and adopt an election program that branded the European Union a “failed project.”

Guest speakers included Bulgarian right-wing extremist Kostadin Kostadinov, who fondly referred to the alliance between Germany and Romania during both world wars and called for Germany to take “its rightful place as a great power, and not only in Europe.”

One would-be candidate is being investigated by authorities after making homophobic slurs during his speech.

Thomas Haldenwang, the head of Germany’s domestic intelligence agency, accused speakers of spreading “right-wing extremist conspiracy theories,” including the “great replacement theory,” which holds that elites are plotting to replace White Europeans with non-White populations.

“It is already apparent that people who have attracted attention in the past with positions that are not compatible with our free democratic basic order will be part of the AfD delegation in the upcoming European Parliament,” he said.

The party has so far failed to overturn a decision by the agency to put it under surveillance, with a Cologne court ruling in March last year that there were “sufficient indications of anti-constitutional endeavors within the party” to justify its monitoring.

The summit and the nomination of Krah “complete the transformation” of the AfD from its early iteration when it was an anti-euro party to “a clearly extremist far-right party,” said Johannes Kiess, a researcher on right-wing extremism at the University of Leipzig.

Krah rejects the notion that the party is becoming more extreme or that he’s to the right of it, while at the same time espousing the “remigration” — or effective deportation — of refugees and defends the “great replacement theory” as being fact.

The idea that immigrants are replacing ethnic Germans is “a description” of the situation rather than a conspiracy theory, said Krah, who also doesn’t see an issue with saying that Germany should reclaim its rightful place in the world.

“Germany is a country in a crisis, and it’s not just an economic crisis. It’s also an identity crisis,” he said. “It’s a crisis where Germans forgot to be proud of their own fathers and grandfathers. Mothers and grandmothers.”

Members of the AfD, from left, include Leif-Erik Holm, Maximilian Krah, Alexander Gauland and Joerg Urban. (Sean Gallup/Getty Images)

The AfD’s record-high position in the polls comes amid brimming dissatisfaction with Germany’s ruling three-party coalition, led by Chancellor Olaf Scholz’s center-left Social Democrats.

It also comes on the back of multiple crises, including the pandemic and war in Ukraine that have boosted populists Europe wide.


Kremlin tries to build antiwar coalition in Germany, documents show

Krah puts the party’s success down to the population’s distain for liberal policies on climate, gender and LGBT issues, immigration and the war in Ukraine, saying established political parties have no answer to real issues German face.

Analysts, however, chalk much of the party’s gains up to protest voting. In polls, voters can express their dissatisfaction “risk-free,” said Merkel, the political scientist. “And the strongest way to express this is to vote for the most radical political formation.”

He estimates around half those saying they will vote for the party are protest voters. “Polls are not election results,” he said.

But with European elections only nine months away and votes in the eastern German states of Brandenburg, Saxony and Thuringia — where the AfD is polling around 10 points higher than the national average — set for fall of next year, the poll numbers have caused alarm.

A continued slow economy and high inflation could help the AfD, said Höhne, the analyst. “When people can buy their house and their car and they can go on vacation, it’s easier to support democracy.”

Germany still remains behind other countries in Europe when it comes to teaming up with the far right. Former Italian prime minister Silvio Berlusconi brought Meloni into government as a minister in 2008, but such alliances are still a political taboo in Germany.

But the party’s increased success makes it difficult for others to make viable political coalitions without them. However, recent comments by Friedrich Merz, the leader of the Christian Democrats, hinting that his party could work together with the AfD at a political level appear to be “testing the waters,” said Kiess.

And for the moment, Krah and his colleagues exude a confidence. “The right wing is on rise,” he said. “And that’s Europe wide.”

31 August 2013

UPDATE: Bayer vs. the bees: we're winning...& Bayer is suing *Europe* for saving the bees31AUG&3SEP13

FROM SumOfUs, an update on the campaign against the giant chemical companies, like Bayer, to get the pesticides they sell that are killing off the bees banned. Bayer and the other chemical companies are running scared and the EPA is feeling the pressure to ban these very chemicals that have been banned in Europe. Check this out....
THIS UPDATE ON 3SEP13 Bayer is suing *Europe* for saving the bees See the full article below....
Dear friends,
I just got back from a whirlwind trip to Chicago, where beekeepers from across the US were speaking out about the danger of bee-killing pesticides on behalf of thousands of SumOfUs supporters. And here’s what I learned: the pesticide industry really, really doesn’t want people to hear our message.
I went to Chicago to attend a massive commercial gardening convention, where the beekeepers (who call themselves ‘beeks’) and I were delivering the voices of over 140,000 SumOfUs supporters. Our message: stop selling the pesticides that are killing the bees! It wasn’t a message that Bayer and the pesticide giants wanted the world to hear. I was barely off the plane in Chicago when I learned that the industry-sponsored convention organizers had threatened SumOfUs with a lawsuit if we took our message inside the convention grounds!
But we had come prepared (thanks to thousands of donations from SumOfUs supporters!) -- and we didn’t leave until the beekeepers had reached out to thousands of commercial garden center owners and the national media about the dangers of these bee-killing pesticides. Here’s the most remarkable thing: many of the garden center owners signed on in support as soon as they heard our message -- exactly why Big Pesticide is scared of our campaign to save the bees.
Big Pesticide is determined to silence us, but we’re not going to let them -- and we won’t back down to legal intimidation. Our colorful bus ads blanketed Chicago during the conference, and were featured on morning TV news across the US -- and now, thanks to you, we’re taking the message straight to garden center owners themselves with ads in the biggest commercial garden publications. With your support, we’re going to keep fighting until these pesticides are banned around the world and the bees -- and our food supply -- are safe.
The threat of a lawsuit wasn’t the only tactic they used to silence us in Chicago. They rolled out a full campaign of intimidation, including:
  • telling hotels across the city not to book rooms to our beekeepers, and not to allow us to screen a documentary about bees; 
  • ordering security guards to prevent our accredited beekeepers and two human-size bees (okay, our friendly volunteers in bee costumes!) from entering the conference; 
  • and even stopping an 85 year-old local beekeeper from delivering 140,000 signatures from SumOfUs members to Bayer, one of the largest manufacturers of bee-killing pesticides!
Meanwhile, Bayer spent hundreds of thousands of dollars on huge ads all over the convention center and a booth advocating their “bee care” program, all the while selling the pesticides that are killing them at the convention!
But despite these dirty tactics, we got our message out loud and clear. Our beekeeper friends had hundreds of one-on-one conversations with convention attendees, handed out thousands of flyers about the deadly effects of ‘neonics’, the pesticides that are killing the bees, plastered the city’s buses with our ads, and took the city by swarm.
Bayer’s reaction shows one thing -- it’s scared. Europe has already banned these killer chemicals, so now the industry is fighting with all they’ve got to dump the neonics on North America. Just last week, Time Magazine wrote about the global bee die-off and neonic bee killers in its cover story, and this week, the American Environmental Protection Agency (EPA) ordering an immediate reduction in the use of these pesticides, and admitted that the chemical is partly responsible for the disappearance of honey bees. Big Pesticide is terrified that its profits will take a hit if we win in the US as well.
Thanks to your support, we’re going to keep up the fight. First up, we’re planning hard-hitting ads in gardening industry publications next month, to make sure the garden center owners get this vital information. And we’ve got more ideas in the works -- but after the legal threats in Chicago, we’re keeping them under wraps to stop the industry from trying to block us again.
Together, we can save the bees. We hope you’ll stay with us until we win this fight.
On behalf of all of us,
Angus and the beekeepers (Terry, Reba, Sam, Amy, and Edie)
PS: we don’t take any corporate funding, so all of this and more is made possible through your support. If you want to donate to make sure that we can keep campaigning to save the bees in the months ahead, you can do that here.

Bayer is suing *Europe* for saving the bees

I know it's less than 72 hours since we emailed you to update you on our bees campaign -- but Bayer is now suing Europe to overturn the landmark ban on bee-killing pesticides! See the full story below, and let's all sign now to stop this outrageous move! -- Claiborne
---------------------------
Bayer has just sued the European Commission to stop the ban on its bee-killing pesticides -- despite clear evidence its products are behind the massive bee die-offs.
We can't let Bayer and Syngenta get away with this blatant threat while the bees disappear. Sign the petition to tell them to drop the lawsuits now!

I know it's less than 72 hours since we emailed you to update you on our bees campaign -- but Bayer is now suing Europe to overturn the landmark ban on bee-killing pesticides! See the full story below, and let's all sign now to stop this outrageous move! -- Claiborne
Wow. Bayer has just sued the European Commission to overturn a ban on the pesticides that are killing millions of bees around the world. A huge public push won this landmark ban only months ago -- and we can't sit back and let Big Pesticide overturn it while the bees vanish.
Bayer and Syngenta, two of the world's largest chemical corporations, claim that the ban is "unjustified" and "disproportionate." But clear scientific evidence shows their products are behind the massive bee die-off that puts our entire food chain in peril. 
Just last month, 37 million bees were discovered dead on a single Canadian farm. And unless we act now, the bees will keep dying. We have to show Bayer now that we won't tolerate it putting its profits ahead of our planet's health. If this giant corporation manages to bully Europe into submission, it would spell disaster for the bees.
The dangerous chemical Bayer makes is a neonicotinoid, or neonic. Neonics are soaked into seeds, spreading through the plant and killing insects stopping by for a snack. These pesticides can easily be replaced by other chemicals which don’t have such a devastating effect on the food chain. But companies like Bayer and Syngenta make a fortune from selling neonics -- so they’ll do everything they can to protect their profits. 
The EU banned these bee-killers this past May, after a massive public campaign and a clear scientific finding from the European Food Safety Authority that neonics pose huge risks to bee populations. Bayer fought against the ban every step of the way, using tactics taken from Big Tobacco -- pouring millions into lobbying and fake science to stop decision-makers from taking action. 
We have to stand up for the European ban now, from Europe and from around the world. The current ban only lasts for two years before it's up for review, and Bayer is now determined to stop it before it even comes into force in December 2013. If it is allowed to intimidate the European authorities with impunity, then the pressure to overturn the ban will be huge. This will be a massive victory for the poison industry, and a devastating loss for the bees, and all of us. It will make every environmental regulation more difficult, because companies that can't win on the facts can use their enormous profits to fund expensive, baseless lawsuits.
Bayer is an enormous company with a ton of public-facing brands. Neonics are a big part of its bottom line, but it can't afford poor publicity on a global scale. And if word gets out that Bayer is wrecking our ecosystem and threatening a creature responsible for pollinating a third of all our crops, the company will have to back down.
SumOfUs staff and members have literally just gotten of the plane from a convention in Chicago where we took the fight for a ban in the US right to the industry itself -- so we know how important it is to hold the line.
Thanks for all you do,
Claiborne, Kaytee, and the team at SumOfUs

**********
More information:
EU insecticide ban triggers legal action, Nature News, 28 August, 2013
 

19 July 2013

‘Why should a person drown?’ from AI Amnesty International 19JUL13

I saw a person drown, and on occasion I still have nightmares about it though it happened about almost 30 years ago. I hear the wind and the crash of the waves in the shore and his screams for help and his brother screaming to him to help was on the way. I do not know how anyone could turn anyone else away from safety, to send them to drown rather than to provide aid and shelter. Thank God Giorgos Mavripidis and his crew were not blinded by politics, nationality, race or religion. Why are the leaders of Greece and the European Union so blind?
Giorgos Mavripidis, a fisherman from Skala Sikamias, saved a family from drowning as they were trying to reach the shores of Lesvos in October 2009. Eight other lives were lost that day.
“There’s no doubt many people are going to drown again this year”, he says.  “Because here the storms are wild and the currents are strong.”
It was a regular morning for Giorgos Mavripidis. He was on his boat throwing his fishing nets when a speedboat loaded with people was capsized by the waves. Giorgos left his nets and rushed to help.
Giorgos managed to save three lives, but he wasn’t able to help everyone. Eight people, 5 of them young children, drowned that day.
“We were throwing them life jackets. They were calling for us. They couldn’t swim. They couldn’t even reach the life jackets which were one meter away.”
Many people who try to enter Europe through Greece by sea are forced to take more and more dangerous routes in an attempt to avoid their boats being intercepted. Stories of Illegal push-backs by the Greek Coastguard are often reported by migrants too.
“If this happens again and we can help, we will. [Because] if you are human, you think: why should a person drown?”
Act now
Read more

26 April 2012

How Europe's Double Dip Could Become America's 25APR12

EUROPE'S double dip recession threatens our recovery. The fact that they are in recession again, after implementing the drastic, conservative fiscal policies of their right-wing political parties should be a warning to the American electorate of what will happen to our economy if the repiglicans and tea-baggers win the presidency and Congress this year. From HuffPost.....
Europe is in recession.
Britain's Office for National Statistics confirmed today (Wednesday) that in the first quarter of this year Britain's economy shrank .2 percent, after having contracted .3 percent in the fourth quarter of 2011. (Officially, two quarters of shrinkage make a recession). On Monday Spain officially fell into recession, for the second time in three years. Portugal, Italy, and Greece are already basket cases. It seems highly likely France and Germany are also contracting.
Why should we care? Because a recession in the world's third-largest economy, combined with the current slowdown in the world's second-largest (China), spells trouble for the world's largest.
Remember -- it's a global economy. Money moves across borders at the speed of an electronic impulse. Wall Street banks are enmeshed into a global capital network extending from Frankfurt to Beijing. That means that notwithstanding their efforts to dress up balance sheets, the biggest U.S. banks are more fragile than they've been at any time since 2007.
Meanwhile, goods and services slosh across the globe. If there's not enough demand for them coming from the second and third-largest economies in the world, demand in the U.S. can't possibly make up the difference. That could mean higher unemployment here as well as elsewhere.
What's the problem with Europe? Don't blame it on the so-called "debt crisis." There was no debt crisis in Britain, for example, which is now experiencing its first double-dip recession since the 1970s.
Blame it on austerity economics -- the bizarre view that economic slowdowns are the products of excessive debt, so government should cut spending. Germany's insistence on cutting public budgets has led Europe into a recession swamp.
German Chancellor Angela Merkel, who has led the austerity charge, and other European policy makers who have followed her, have forgotten two critical lessons.
First, that the real issue isn't debt per se but the ratio of the debt to the size of the economy.
In their haste to cut the public debt, Europeans have overlooked the denominator of the equation. By reducing public budgets they've removed a critical source of demand -- at a time when consumers and the private sector are still in the gravitational pull of the Great Recession and can't make up the difference. The obvious result is a massive slowdown that has worsened the ratio of Europe's debt to its total GDP, and is plunging the continent into recession.
A large debt with faster growth is preferable to a smaller debt sitting atop no growth at all. And it's infinitely better than a smaller debt on top of a contracting economy.
The second lesson Merkel and others have overlooked is that the social costs of austerity economics can be huge. It's one thing to cut a government budget when unemployment is low and wages are rising. But if you cut spending during a time of high unemployment and stagnant or declining wages, you're not only causing unemployment to rise even further -- you're also removing the public services and safety nets people depend on, especially when times are tough.
And with high social costs comes political upheaval. On Monday, Netherlands Prime Minister Mark Rutte was forced to resign. U.K. Prime Minister David Cameron is on the ropes. The upcoming election in France is now a tossup -- incumbent Nicolas Sarkozy might well be unseated by Francois Hollande, a Socialist. European fringe parties on the left and the right are gaining ground. Across Europe, record numbers of young people are unemployed -- including many recent college graduates -- and their anger and frustration is adding to the upheaval.
Social and political instability is itself a drag on growth, generating even more uncertainty about the future.
What European policy makers should do is set a target for growth and unemployment -- and continue to increase government spending until those targets are met. Only then should they adopt austerity.
What are the chances that Merkel et al will see the light before Europe plunges into an even deeper recession? Approximately zero.
The danger here for the United States is clear, but there's also a clear lesson. Republicans have become the U.S. party of Angela Merkel, demanding and getting spending cuts at the worst possible time -- and ignoring the economic and social consequences.
Even if the U.S. economy (as well as President Obama's reelection campaign) survives the global slowdown, we're heading for a big dose of austerity economics next January -- when drastic spending cuts are scheduled to kick in, as well as tax increases on the middle class. But the U.S. economy isn't nearly healthy enough to bear this burden.
If nothing is done to reverse course in the interim, we'll be following Europe into a double dip.
Robert Reich, Chancellor's Professor of Public Policy at Berkeley and former
Secretary of Labor, is the author of Beyond Outrage. His widely-read blog can be found at www.robertreich.org.
http://www.huffingtonpost.com/robert-reich/europe-recession-_b_1452743.html?utm_source=Alert-blogger&utm_medium=email&utm_campaign=Email%2BNotifications

12 April 2012

Tell the State Department to Stand Up for Marine Reserves 12APR12

WHILE our government has improved it's stewardship of the oceans in our EEZ http://sanctuaries.noaa.gov/
more can and should be done, especially to protect whales along our East coast and the entire Alaskan marine ecosystem. And now we have the American government standing in the way of an international agreement establishing a network of marine reserves. Check this out from Greenpeace and click the link to participate in their campaign to change this American government policy.
Greenpeace
Tell the State Department that you care about the health of our oceans and urge them to either take the lead on establishing a network of marine reserves or to get out of the way this summer.

There’s almost no protection at all for the world’s oceans. And it shows...
  • Companies like Chicken of the Sea are pushing some tuna and shark species to the brink of extinction in the Pacific Ocean with their destructive fishing practices.
  • Industrial fishing vessels are destroying the breathtaking coral habitats of the Bering Sea canyons and putting an entire ecosystem at risk.
  • Japanese, Icelandic and Norwegian whaling vessels continue to ignore international law and kill thousands of majestic whales from the Southern Ocean to the North Atlantic each year.
These challenges can be addressed together with a single solution — a network of fully protected marine reserves. So why is the State Department standing in the way?

It’s time they took action to protect our oceans. Urge them to take the lead in establishing a network of marine reserves before it’s too late.

Right now, less than one percent of the world’s oceans are set aside as marine reserves. That’s why we’re working on a global agreement which would allow the international community to establish a network of marine reserves on the high seas. Unfortunately, the US government seems to be standing in the way of these efforts by refusing to join along with other countries who are in favor of developing a new agreement to create a network of marine reserves.

The high seas are like the Wild West at the moment. It might be good for the companies that are making billions off the destruction, but it is killing our oceans. If we don’t start protecting and managing our oceans they aren’t going to survive. Marine reserves are a proven and cost effective tool for protecting biodiversity, rebuilding fish populations, and enhancing fisheries in surrounding areas.

The best chance we have to get the international community on the right path toward creating a network of protected areas is this summer in Brazil. The US delegation is developing their position right now. It’s the perfect time to let them know you are paying attention.

A global network of fully protected marine reserves would benefit sea turtles, whales, tuna, seals, narwhals and any other creature (including humans) that you can think of. We’ll be at the meetings this summer working hard for this outcome. Without your support, it won’t matter.

Send your letter to the State Department today and tell them that we need the US to join the G77, the European Union, and most of the rest of the world in standing up for marine reserves.
Thanks for your help.

John Hocevar
Greenpeace USA Ocean Campaign Director
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Click here to forward this message.
Greenpeace
702 H Street, NW, Suite 300, Washington, DC 20001 | 1-800-722-6995

04 February 2012

The GOP’s ‘Europe’ is a land of make-believe from the WASHINGTON POST 3FEB12

Here is a great rebuttal to the charges by the repiglican / tea-bagger field of candidates that Pres Obama and the Democratic Party want to turn the U.S. into a socialist state a la Europe. WHAT I can't understand is the number of people who support romney's and gingrich(k)'s attacks on the social safety net while they themselves, or someone they know, family, friends or former co-workers, are benefiting from the very programs making up the social safety net. How can they not be aware that these programs are putting food on the table, keeping homes warm, keeping people in their homes, providing medical care when needed for families, for children? Their hypocrisy is amazing, their voluntary ignorance disgusting. If the repiglicans and tea-baggers had their way the poverty rate in the U.S. would be higher than it's current unacceptable level and many more would be hungry, cold, homeless and without any medical care. The attitudes and support of these people for the politics of those who seek to do them harm lends credence to the article on HuffPost on 2FEB12 "Intelligence Study Links Low I.Q. To Prejudice, Racism, Conservatism", http://www.huffingtonpost.com/2012/01/27/intelligence-study-links-prejudice_n_1237796.html?ref=mostpopular
Martin Klingst is Washington bureau chief of the weekly German newspaper Die Zeit. 

Lately it seems that not a day goes by without a Republican presidential candidate portraying Europe as a socialist nightmare. Mitt Romney, Newt Gingrich and Rick Santorum paint a picture of the Old World as unfree, strangulated by bureaucratic and inefficient welfare systems, and unable to reform and modernize. To these Republicans, Europe seems to be the antipode to everything America is meant to be.
I understand that stump speeches are coarse and that, to Republican candidates, Europe must be bad because President Obama occasionally praises some of its achievements, such as universal health care or the “green” revolution.
I also know there is an American tradition of holding up the Old World as an example of all that is wrong and corrupt. There is, unfortunately, a more recent European custom of blaming the United States for all that is perverse and profane. Moreover, there are good reasons to worry about Europe’s fiscal calamities, which stem in part from the unaffordable benefits for its citizens. It is understandable that some on this side of the Atlantic fear that the European debt crisis could drag the slowly recovering U.S. economy under.
But when Romney, Gingrich and Santorum warn about “socialist Europe,” they sound as though they are talking about the Soviet empire, which vanished long ago. Europe is the European Union, a modern entity of 27 democratic countries that, despite many commonalities, greatly differ in history, culture, language, sociology and politics. Europe is difficult to comprehend, but viewing it through a single lens is like calling the United States a Third World nation because there are very poor areas in the South where some people live in shacks or have little access to health care or where some schools are corridors of shame.
My problem as a European living in the United States is that it is not Joe the Plumber who is bashing Europe but three longtime politicians who want to be president — people who should know better. Wasn’t Mitt Romney a missionary in France? Hasn’t he spoken fluent French since the late 1960s? I do not recall any important European politician who ran for prime minister or president and pilloried the United States in the same manner. Even when German Chancellor Gerhard Schroeder came out against the imminent Iraq war before seeking reelection in 2002, the rhetoric was muted in comparison.
It is not necessary here to define socialism or to detail the many distinctions between a state-run economy and a social democracy based on a ­free-market system. But those who seek to be president of a global superpower — and may perhaps one day sit at a table with leaders of the Old World — should know a few things:
All 27 E.U. members believe, more or less, in mandatory health-care insurance and public education. They believe that government should offer a helping hand to struggling businesses and people during economic downturns. That is why we pay high taxes. It is also true that a number of E.U. countries have irresponsibly expanded their welfare systems and can no longer afford their bills.
But some countries have carried out necessary economic reforms, engineered their comeback and managed the storm of the Great Recession quite well. To some extent they can now present better results than the United States. Germany, for example, raised its retirement age to 67 and drastically reformed its social safety net, lowering labor costs to businesses. Thanks to government subsidies, German enterprises were able to keep their skilled workers employed during the recession. When business picked up again, the labor force was in place and the economy more competitive. Unemployment is at a 20-year low of about 6 percent.
Several European states run their mandatory health-care systems more efficiently and at lower cost than the United States while guaranteeing every citizen access to affordable and up-to-date services. The population’s health remains an important economic factor. Moreover, while the national debt is disastrous in Greece or Italy, debt remains at a much more responsible level in Germany, Denmark and Sweden.
Romney pointed out in New Hampshire last month that, despite the economic downturn, the average U.S. worker still takes home a bigger monthly paycheck than the average European (and even the average German, who makes more than, say, Romanians). That’s true, but the comparison doesn’t take into account the much greater wealth gap in the United States nor the fact that Americans have to spend larger portions of their income on medical care and education.
A college education is still free in most Old World countries and produces generally better results than in the United States. The Program for International Student Assessment study by the Organization of Economic Cooperation and Development, released in December, shows that high school students in a number of E.U. countries scored better in reading, math and science than their U.S. counterparts. Another OECD report shows that it is much easier for Germans, Swedes, Danes, Norwegians and Spaniards to climb the socioeconomic ladder than Americans. That’s a stark reversal from the time when greater social mobility was a main reason so many Europeans flocked to the land of opportunity.
Comparing data across societies is risky because cultural and social differences may not be reflected. Yes, pendulums swing. But framing Europe simply as inflexible and outdated, or backward and socialistic, is shortsightedand wrong. Romney, Gingrich and Santorum should know as well as anyone that the globe is no longer flat.
 

13 January 2012

S&P Downgrades The Credit Of Nine European Countries, Including France 13JAN12

THIS is not good news for the American economy. A stronger dollar makes exports more expensive, a weaker euro means less sold in Europe, downgrading European countries threatens the financial stability of American financial institutions and banks. Is this the beginning of the double dip? See my post on this blog from 29DEZ11

HARRY DENT OF HS DENT ON NIGHTLY BUSINESS REPORT, BEARISH ON THE ECONOMY 29DEZ11 

This from NPR.....

A trader watches a figure showing the fall of the euro in Paris on Friday. The euro fell to a 17-month low against the dollar on news reports that France's credit rating was downgraded by Standard & Poor's.
Enlarge Remy de la Mauviniere/AP A trader watches a figure showing the fall of the euro in Paris on Friday. The euro fell to a 17-month low against the dollar on news reports that France's credit rating was downgraded by Standard & Poor's.
Of course the news would come on Friday the 13th.
After a day of leaks and rumors, Standard & Poor's Ratings Services made it official late this afternoon. The credit-rating agency is stripping unlucky France of its AAA credit rating, knocking it down by one notch to AA+.
Also getting knocked down one notch each were Austria, Malta, Slovakia and Slovenia.
S&P gave even worse news to Italy, Spain, Cyprus and Portugal, marking down their debt ratings by two notches each. That downgrade kicked Cyprus and Portugal all the way to "junk" status, where Greece already resides. Ouch.

Those that escaped a downgrade included Germany, Belgium, Ireland, Finland, the Netherlands, Luxembourg and Estonia.
S&P issued a statement saying it lowered the credit ratings because it had determined that "the policy initiatives that have been taken by European policymakers in recent weeks may be insufficient to fully address ongoing systemic stresses in the eurozone."
Earlier in the day, French Finance Minister François Baroin admitted the downgrade was coming, but S&P itself waited until after the markets closed at 4 pm ET in this country to make the formal announcement.
Baroin said France's debt problem is now pointed in the right direction, and added that his country would not allow a ratings agency to dictate fiscal policies.
Le Monde, a major French newspaper, reported that Marine Le Pen, leader of France's far-right National Front (FN) party, predicted the loss of France's AAA rating would be "the first step in the breakup of the euro area".
In recent weeks, European leaders have been scrambling to find ways to cope with the problem of too much debt in too many countries. They have managed to hold off any major banking crises, but have not taken any steps bold enough to convince credit raters that all defaults can be avoided.
Friday's downgrade news suggested European political leaders still have a long way to go to clean up massive debt troubles and get the European Union's economy growing again. For France's President Nicolas Sarkozy, the downgrade was an embarrassment that could diminish his chances for re-election this year.
Typically, a credit downgrade — even by just one rating agency — would hurt a country's ability to borrow money cheaply. Investors demand higher interest payments when risks are greater, so no country wants to have anything but the highest rating.
But gauging exactly how much this downgrade will hurt European countries is not exactly clear. Last August, S&P cut the United States' AAA rating for long-term debt by one notch — but interest rates did not shoot up on U.S. debt.
Whether investors go as easy on the European countries remains to be seen as they issue new bonds in coming weeks and months.

Baroin, speaking on French television, said the S&P action was "not good news." But he added that given how many other countries are having debt troubles, the downgrade was "not a catastrophe."
Although the official S&P announcement came after U.S. markets closed, Baroin's statements had been made while trading was still in progress in this country . The reaction was muted. In the end, the Dow Jones industrial average fell only 48.96 to 12,422.06. The value of the euro tumbled Friday to a new 16-month low against the dollar.
We live blogged the news as it happened. Read below for a blow-by-blow look. Note that we re-wrote the top of this post to reflect the news.
 
Update at 5:15 p.m. ET. What Happens Now?:
As we said when the United States' credit rating was cut in August, it's unclear how this cut will affect the Eurozone. But one thing to watch, reports the Wall Street Journal, is a Treasury bill auction the eurozone bailout organization known as the European Financial Stability Facility plans to hold on Tuesday.
Update at 5:13 p.m. ET. Good News For Five Countries:
The S&P also announced it affirmed the ratings of Germany, the Netherlands, Belgium, Estonia, Finland, Ireland and Luxembourg.
Update at 5:06 p.m. ET. Austerity Not Enough:
Reading deeper into the S&P announcement, it's clear the ratings agency is unhappy with the steps taken by European countries to curb the sovereign debt crisis. In short, it says austerity measures are not enough.
"We believe that a reform process based on a pillar of fiscal austerity alone risks becoming self-defeating, as domestic demand falls in line with consumers' rising concerns about job security and disposable incomes, eroding national tax revenues," the S&P said.
Update at 4:55 p.m. ET. Lowering Ratings On Nine Sovereigns:
The S&P has made their cuts to France official and has added eight other European countries to the list. From their press release:
"We have lowered the long-term ratings on Cyprus, Italy, Portugal, and Spain by two notches; lowered the long-term ratings on Austria, France, Malta, Slovakia, and Slovenia, by one notch; and affirmed the long-term ratings on Belgium, Estonia, Finland, Germany, Ireland, Luxembourg, and the Netherlands."
Update at 4:23 p.m. ET. Downgrade 'Long Overdue':
Our Newscast unit just spoke to Peter Morici, an economist and professor of business at the University of Maryland. Morici said this downgrade "was long overdue."
Essentially he said, France has a "systemic risk." With the Euro, the northern countries have flourished, said Morici. In fact, he said if France was valued using its own currency it wouldn't be worth as much. So, now, as the southern European countries face defaulting and the risk of a eurozone split becomes real, any advantage the Euro gives France is gone.
"[The downgrade] is not the end of the world," said Morici. "But it is an indication that the stability and opportunity for growth promised by the creation of the Euro have not come to fruition."
Update at 4:03 p.m. ET. France's National Politics:
French President Nikolas Sarkozy is facing an election. This downgrade will no doubt have an effect on its politics. The Wall Street Journal's Angelique Chrisafis reports from Paris:
"With less than 100 days until the first round of the French presidential race, the credit-rating downgrade in Paris will seriously complicate Nicolas Sarkozy's already difficult bid for re-election.
"'If France loses its AAA, I'm dead,' Sarkozy told aides in October, according to Le Canard Enchaîné. The president has staked his re-election on convincing France that he is the only person with the guts, strength and character to save it from economic doom. The rating cut will seriously dent his image as the Caped Crusader of the financial world."
Update at 3:11 p.m. ET. Shouldn't 'Overrate The Assessments':
Quoting an interview on German television, The Wall Street Journal reports Germany's Finance Minister Wolfgang Schaeuble tried to minimize the significance of a downgrade saying, "In recent months, we have grown to agree world-wide that we shouldn't overrate the assessments of rating agencies. It's not new that there is a great uncertainty in financial markets regarding the euro zone."
Update at 3:09 p.m. ET. Rating The Same As The U.S.:
It's worth noting that a AA+ rating is the same S&P has assigned to the United States.
Update at 3:05 p.m. ET. 'Like Most Of The Eurozone':
In his interview with France 2, Baroin also said France's rating had been lowered one notch "like most of the eurozone."
The AP points out that there is no confirmation from S&P that any other European country has been downgraded. The Guardian runs through what that may mean:
"Of the 17 members of the eurozone, 15 were warned by S&P last month that they could be downgraded. We've heard strong denials from Germany, Finland, the Netherlands and - in the last few minutes - Ireland.
"That leaves ten on the table — Austria, Belgium, Luxembourg,Estonia, Italy, Malta, Portugal, Slovakia, Slovenia and Spain."
Update at 2:56 p.m. ET. The Markets:
As we've said, this announcement was widely expected, so the markets don't seem to be reacting dramatically. The Dow, Nasdaq and the S&P were down less than 0.75 percent.
The AFP reports on the European markets:
"European markets had expected the downgrade, which was widely reported during the day even if Standard and Poor's were not expected to confirm it until later in the evening, and stocks only slid back slightly.
"But the single currency itself was rocked by the news, which coincided with a breakdown in talks to agree a Greek debt writedown, and the euro slipped to 16-month lows against the dollar."
Update at 2:50 p.m. ET. AA Or AA+?
The AP is reporting that S&P cut the rating to AA, but several other news sources, including the Wall Street Journal, The Guardian and France 24, are reporting it's been cut to AA+. We're going with AA+ for now. But we'll revise if we need to.
Update at 2:35 p.m. ET. Rating Cut 'Isn't A Catastrophe':
The Wall Street Journal, which is running a live blog on the news, reports that François Baroin, France's finance minister, sought to minimize the effect the downgrade may have on the country and the eurozone.
In an interview with television station France 2, he said ratings "don't dictate French politics."
"Of course we would have preferred to keep our Triple A credit rating," Baroin said.
Update at 2:25 p.m. ET. No Confirmation From S&P:
NPR's Marilyn Geewax reports S&P has not yet confirmed the downgrade, but it is widely expected they will make an announcement at 4 p.m. ET., after the markets close.
This news was not unexpected. In December, Fitch, another of the major credit rating agencies, assigned France's sovereign debt a negative outlook.