EU-DIGEST

EU takes historic step and seizes the initiative for the construction of a new and fair world economic order

This Thursday, the 27 member European Union leaders will call for a supervising body to oversee the world's 30 largest financial companies, among other sweeping changes to the global economic order. This was disclosed today as the EU political leadership began a two-day meeting to consider further steps to tame the global financial crisis, and will agree to expand a rapid action plan the U.K. and 15 euro-zone countries drew up Sunday to other countries in the bloc.

With the U.S. temporarily hobbled by the approaching election, the majority of E.U. politicians see a once-in-a-generation opportunity to seize the initiative, and play a major role in the construction of a badly needed new and fair economic order. Drawing heavily on proposals made earlier in the week by U.K. Prime Minister Gordon Brown, the leaders will call for the overhaul of the Bretton Woods system, an outdated US designed global financial framework which has existed since 1944.

The Europeans want to hold a meeting of leaders from around the globe to get the process underway after the U.S. presidential election. "I've proposed an international summit by the end of the year, preferably in New York, where all these problems started," French President Nicolas Sarkozy said in his opening address to the meeting. France holds the rotating presidency of the EU for the six months ending December, and Sarkozy is chairing the meeting of leaders. Sarkozy added that he wants to see financial supervision extended to hedge funds, and to eliminate offshore financial centers.

Long derided for its lack of maneuverability, the E.U. has surprised observers by responding decisively and coherently to the sharp declines in share prices that accompanied rising fears about the viability of the bloc's banking system in recent weeks.

Labels: Brown, Economic World Order, EU, Financial Crises, Sarkozy

Labels: Britain, Brown, EU, Lisbon Treaty

UK - Politicians' acts of denial give the game away - by Stephen King

When it all begins to go wrong, politicians typically adopt one of three strategies. They deny. They claim it's worse elsewhere. Or they blame others for their woes. The UK economy must, then, be going horribly wrong. Our political leaders adopted all three tactics last week, thereby betraying their deep-rooted fears. Gordon Brown, the Prime Minister, offered the denial. In an interview with the BBC, Mr Brown said: "We've seen house prices rise by about 180 per cent over the last 10 years and they have risen by about 18 per cent over the last three years, so a 2.5 per cent fall is something that is containable. "Mr Brown's decision to blame the US for the world's economic woes is nonsense. It's certainly true that the US has major economic problems. It's also true that, after the slippage in the US economy over the last few months, people are becoming increasingly worried about economic prospects in the UK. But it doesn't follow that there is a causal link running from the US to the UK. In truth, the shock facing the UK economy is remarkably similar to the shock facing the US economy because both countries chose, a few years ago, to do a deal with the debt devil. For every increase in US house prices, there's been an increase in UK house prices. For every rise in US household debt, there's been an increase in UK household debt. And, for every widening of the US balance of payments current account deficit, there's been a corresponding expansion of the UK deficit." Note EU-Digest: "The main culprits behind this present day world-wide economic disaster are Margaret Thatcher and Ronald Reagan. It was their "contribution" that neo-liberal programs antithetical to the interests of the majority could be imposed in a western democracy if one was ruthless enough to exploit certain situations. For Thatcher, the war with Argentina over the Falklands in 1982 was a heaven-sent opportunity to enlist jingoism in the service of radical economic programs, one of her tactics being to portray the labor unions as the “enemy from within.” Thatcher’s tactics prefigured those of George W. Bush in the aftermath of 9/11, when he and his crew exploited the hysterical state of the US population to declare a “war on terror” that was meant to kick-start a new phase of the neo-liberal enterprise. Well known Canadian journalist and author Naomi Klein labels this “disaster capitalism.” Unfortunately Mr. Brown is saddled with the legacy of his predecessors. At the same time a majority of the British still believe in their "sacred sovereignty" and look towards the EU as a threat, instead of embracing it and getting rid of the US economic noose."

Labels: Britain, Brown, Economy, EU, Reagan, Thatcher

Brown defeats drive for EU treaty vote - by Adrian Croft

Prime Minister Gordon Brown defeated a bid on Wednesday to force him to call a referendum on the new European Union reform treaty. Many analysts said they believed the treaty, which overhauls EU institutions, would be rejected if put to British voters. In parliament, about 25 MPs from Brown's Labour Party rebelled against the government and voted with the Conservatives for the referendum on the Lisbon treaty. The British government won the votes comfortably because most members of the pro-European Liberal Democrats, abstained.

Labels: Brown, EU

Labels: Brown, EU, Sarkozy

Brown and Europe

Gordon Brown must be looking forward to his first big foreign policy speech as prime minister on Monday as much as a visit to the dentist. He does not seem to have time or taste for Abroad – especially Europe. Granted, after 10 years of Tony Blair’s missionary foreign adventurism, that is a cause for relief in many quarters. Mr Blair, moreover, blew an opportunity that comes maybe once a generation to change the terms of Britain’s toxic debate on Europe. Pro-euro businessmen in particular felt they were marched to the top of the hill, a former Blair adviser has observed, only to see him “abseil down the other side”.

Labels: Britain, Brown, EU

Brown welcomes deal on EU treaty

Prime Minister Gordon Brown has welcomed the agreeement of a new EU treaty, reached after last-minute changes at a summit in Portugal. "The red lines have been secured. The British national interest has been protected," Mr Brown said. He said Britain can still set its own policies on justice, home and foreign affairs, as well as security.

Labels: Britain, Brown, EU Treaty, Portugal

Sarkozy, Brown seen clashing on Europe's future - by Paul Taylor

Gordon Brown's anointment as British prime minister on Wednesday means the major European Union powers at last have a complete set of new leaders and the prospect of a new treaty to overhaul its rickety structures. But in the corridors of Brussels the talk is of a likely clash between Brown and new French President Nicolas Sarkozy over the direction of Europe that could be as bitter as the 2003 bust-up between Tony Blair and Jacques Chirac over the Iraq war.

They are poles apart on free-market competition versus state intervention, trade protectionism versus globalisation and further enlargement versus drawing final borders for the Union,' a senior EU official said.Sarkozy favours stronger political integration while Brown is described by a British official as 'a European minimalist'.

Labels: Brown, Sarkozy