EU-DIGEST

Sweden: Stockholm is the Only European Knowledge Economy Region in Global Top Ten

"Stockholm region is one of the global frontrunners in the knowledge economy, especially within sectors such as ICT, life sciences and finance. WKCI 2008 is yet another proof of that", said Sten Nordin, mayor of Stockholm and chairman of the board at Stockholm Business Region. The top rating is based upon gains across a range of indicators, in particular business R&D spending, biotechnology employment and higher educational spending.

Labels: EU, Sweden, Technology

Moscow transforms real-world game of RISK - by Shawn McCarthy and Matthew Campbell

In early 2002, some 200 U.S. Special Forces soldiers landed in the former Soviet republic of Georgia to train the Georgian army in anti-terrorism techniques, including how to protect a planned oil pipeline from secessionist or anti-Western saboteurs. With strong encouragement from Washington, Georgia was finalizing a deal with its neighbours, Azerbaijan and Turkey, and Britain's BP PLC to build a $3.9-billion (U.S.) pipeline from the oil-rich Caspian region to the Turkish port of Ceyhan on the Mediterranean Sea. The 1,768-kilometre, somewhat-circuitous route bypassed major U.S. rivals in the region, Russia and Iran, as well as Armenia, the traditional enemy of Turkey and Azerbaijan.It was part of the United States' effort to reduce Russia's dominance of the region's booming oil trade, and by doing so to encourage the development of independent-minded states on its rival's southern flank.

For more than a decade, Russia watched while the U.S. and Europe played the new “great game” of energy geopolitics in its own backyard. It was 10 years ago this weekend that Russia plunged into financial crisis by devaluing the ruble and defaulting on its mounting debt. With the Georgian invasion, the Kremlin has sent notice that it now controls the Risk board. And that it is willing to use its armed forces to back up what it regards as its national interest in neighbouring states. At stake is control over one of the world's most promising new sources of crude oil – one that could rival the impact of the North Sea a generation ago. The U.S., in particular, has worked strenuously to minimize Russia's influence over this energy development.

Labels: Energy, EU, Russia, US

New EU project focuses on lipidomics technology

Europe has so far played a pioneering and leading role in the biochemistry and analysis of lipids and most of the leading mass spectrometry providers are European companies. These mass spectrometry based nano-scale and high throughput technologies combined with molecular imaging and modern information technology will certainly revolutionize our understanding of the complex interaction networks in a functioning cell and how lipids together with genes and proteins determine cellular functions in health and disease.

Lipids are central to the regulation and control of cellular processes by acting as basic building units for biomembranes, the platforms for the vast majority of cellular functions. Recent developments in lipid mass spectrometry have set the scene for a completely new way to understand the composition of membranes, cells and tissues in space and time by allowing the precise identification and quantification of alterations of the total lipid profile after specific perturbations. In combination with advanced proteome and transcriptome analysis tools and novel imaging techniques using RNA interference, it is now possible to unravel the complex network between lipids, genes and proteins in an integrated lipidomics approach.

Labels: EU, Lipidomics, Research

The last two weeks have been a disaster for U.S. foreign policy. - by Daniel Benjamin

Russia's invasion of its neighbor is a clear demonstration that the United States-led effort to integrate post-Soviet Russia into the West has failed. Whether the process can be restarted remains to be seen, but in light of the events since Aug. 8, doing so soon would be indecent.

Labels: EU, Russia, US

Soccer - Russia score late to hold Dutch to 1-1 draw

Robin van Persie's first-half strike gave the visitors a deserved 1-0 lead with the Dutch eager to avenge their defeat by Guus Hiddink's men in the Euro 2008 quarter-finals two months ago. The Arsenal forward beat Russia keeper Igor Akinfeyev, curling a delicate left-footed shot into the top corner from just outside the area in the 25th minute. The Dutch dominated for much of the lively encounter at Moscow's Lokomotiv stadium on Wednesday, with van Persie being the most active for the visitors until he was substituted by Ibrahim Afellay midway through the second half. But Zyryanov calmly fired from the spot for the equaliser 12 minutes from time after Giovanni van Bronckhorst fouled Dmitry Torbinsky inside the box.

Labels: EU, Netherlands, Russia, Soccer

The statements of American officials would lead one to conclude that the crisis began when Russia sent in its troops to support its peacekeepers there. Meticulously avoided in those statements: The decision of Tbilisi to use crude military force against South Ossetia in the early hours of Aug. 8. The Georgian army used multiple rocket launchers, artillery and air force to attack the sleeping city of Tskhinvali.

It is up to the American side to decide whether it wants a relationship with Russia that our two peoples deserve. The geopolitical reality we'll have to deal with at the end of the day will inevitably force us to cooperate. To begin down the road of cooperation, it would not be a bad idea to do a very simple thing: Just admit for a moment that the course of history must not depend entirely on what the Georgian president is saying. Just admit that a democratically elected leader can lie. Just admit that you have other sources of information—and other objectives—that shape your foreign policy.

Labels: EU, Russia, US

Madrid plane crash: Crash history of MD-80 series - by David Millward

The accident involving a Spanair aircraft which crashed at Madrid's airport on Wednesday killing at least 45, is one of the most deadly in Europe in the past 15 years. It is the worst in Spain for 23 years, when a February 1985 crash at Bilbao claimed 148 lives. Last year the Federal Aviation Authority ordered American Airlines to ground its 300-strong fleet of the aircraft to inspect a hydraulic wing. Of the 11 fatal crashes, two are understood not to have involved any potential failing of the aircraft itself – one was attributed to an air traffic control misunderstanding and the other to a passenger lighting a fire on the plane.However although the plane has been involved in a number of crashes, experts regard the MD-80 - a short-haul workhorse with a range of up to four hours – as among the safest in the sky.

Labels: Aircraft disaster, EU, Madrid, Spain

Five Forces Driving the Euro Down - by Kathy Lien

Five forces are driving the EUR/USD lower, and with no respite in sight for any of these trends, the currency pair should be headed for 1.45. These 5 factors are oil prices, eurozone and US economic data, market sentiment and the chances of a rate hike by the Federal Reserve before the end of the year.

Note EU-Digest Basically all bets are off given the volatility of present market forces and the financial stability in the banking sector.

Labels: Economy, EU, euro

Please Mr. President, Don't Make Promises to Fools -"When goods don't cross borders, soldiers will."

In the Balkans, the U.S. readily accepted the results of a plebiscite in the Serbian province of Kosovo in which the population voted nine to one for independence. With American support, Kosovo became a sovereign state in February 2008. At the same time, the U.S. seemed to say that some separatist movements are more equal than others. American support for the will of the people as registered on ballots did not extend to the breakaway South Ossetia and Abkhazia regions, which had largely been beyond the control of the Georgian government since the fall of the Soviet Union. Both regions had voted overwhelmingly for separation from Georgia and had welcomed Russia troops as protectors from the Georgian military. The U.S. embassy in Tbilisi felt compelled to issue a press release to mollify its Georgian friends: "The United States has long held that each separatist conflict anywhere in the world is unique. Indeed, the situation in Kosovo is a special case and does not serve as a precedent for other regions, including the Abkhazia and South Ossetia regions of Georgia."

Labels: EU, Russia, US

Bush rebuking Russia? Putin must be splitting his sides - by Simon Jenkins

Putin would die laughing if he read this week's American newspapers. The president, George Bush, declared the Russian invasion of Georgia "disproportionate and unacceptable". This is taken as a put-down to the vice-president, Dick Cheney, who declared the invasion "will not go unanswered", apparently something quite different. Bush says that great powers should not go about "toppling governments in the 21st century", as if he had never done such a thing. Cheney says that the invasion has "damaged Russia's standing in the world", as if Cheney gave a damn. The lobby for sanctions against Russia is reduced to threatening to boycott the winter Olympics. Big deal.What is clear is that the Georgian president, Mikheil Saakashvili, is a poor advertisement for a Columbia University education. He thought he could reoccupy South Ossetia and call Russia's bluff while Putin was away at the Olympics. He found it was not bluff. Putin was waiting for just such an invitation to humiliate a man he loathes, and to deter any other Russian border state from applying to join Nato, an organization Russia had itself sought to join until it was rudely rebuffed.

Saakashvili thought he could call on the support of his neoconservative allies in Washington. Tbilisi is one of the few world cities in which Bush's picture is a pin-up and where an avenue is named after him. It turned out that such "support" was mere words.

Labels: EU, EU Russia, Georgia, USA

Ten French and 20 US troops killed in Afghanistan battle

Ten French soldiers have been killed in fighting with Taliban insurgents east of the Afghan capital, an Afghan military official said today. The soldiers, part of NATO's International Security Assistance Force (ISAF), were killed in a major battle with insurgents that began on Monday about 30 miles east of Kabul, he said.The Taliban said on its Web site that 20 US soldiers had been killed in the fighting, which they said erupted after militants ambushed a convoy of Afghan and foreign forces late on Monday.

Labels: Afghanistan, EU, France

Europe Has a Choice: Russia as A Wartime Enemy, or as a Partner - by Helga Zepp-LaRouche

The Russian government's decisive reaction to Georgia's sneak attack against the South Ossetian enclave has fundamentally changed the world strategic situation. Lyndon LaRouche's view that it would have been absolutely tragic for human civilization, had Russia capitulated to the "Soros puppet regime" in Georgia, is shared in many nations, as is LaRouche's characterization of this aggression as an outgrowth of British imperial policy. But Russia has drawn the line, and has made it clear that no longer will it tolerate the continuation of the almost 20-years-long policy of encirclement that has been behind the eastward expansion of NATO and the European Union. David Blair, the London Daily Telegraph's diplomatic correspondent, wrote on Aug. 12 that by seizing this opportunity to intervene militarily into Georgia, Russian Prime Minister Vladimir Putin "is sending an emphatic message with global consequences. The curtain has fallen on the era when NATO steadily expanded into Eastern Europe and onwards to embrace the former republics of the Soviet Union—and Russia was able to respond with nothing more than bluster.... The balance of power in Europe has fundamentally changed." And Michael Binyon, writing in the British TimesOnline on Aug. 14, observed: "Russia has not made one wrong move. Mr Bush's remarks yesterday notwithstanding, in five days it turned an overreaching blunder by a Western-backed opponent into a devastating exposure of Western impotence, dithering and double standards on respecting national sovereignty.... There are lessons everywhere. To the former Soviet republics—remember your geography. To NATO—do you still want to incorporate Caucasian vendettas into your alliance? To Tbilisi—do you want to keep a President who brought this on you? To Washington—does Russia's voice still count for nothing? Like it or not, it counts for a lot."

Labels: EU, Russia

Missile Defense: Washington and Poland just moved the World closer to War - by F.William Engdah

"The signing on August 14 of an agreement between the governments of the United States and Poland to deploy on Polish soil US ‘interceptor missiles’ is the most dangerous move towards nuclear war the world has seen since the 1962 Cuba Missile crisis. Far from a defensive move to protect European NATO states from a Russian nuclear attack, as military strategists have pointed out, the US missiles in Poland pose a total existential threat to the future existence of the Russian nation. The Russian Government has repeatedly warned of this since US plans were first unveiled in early 2007. Now, despite repeated diplomatic attempts by Russia to come to an agreement with Washington, the Bush Administration, in the wake of a humiliating US defeat in Georgia, has pressured the Government of Poland to finally sign the pact. The consequences could be unthinkable for Europe and the planet. The preliminary deal to place elements of the US global missile defense shield was signed by Polish Deputy Foreign Minister Andrzej Kremer and US chief negotiator John Rood on August 14. Under the terms, Washington plans to place 10 interceptor missiles in Poland coupled with a radar system in the Czech Republic, which it ludicrously claims are intended to counter possible attacks from what it calls "rogue states," including Iran.

To get the agreement Washington agreed to reinforce Poland's air defenses. The deal is still to be approved by the two countries' governments and Poland's parliament. Polish Prime Minister Donald Tusk said in televised remarks that "the events in the Caucasus show clearly that such security guarantees are indispensable." The US-Polish missile talks had been dragging for months before recent hostilities in Georgia. Any illusions that a Democratic Obama Presidency would mean a rollback of such provocative NATO and US military moves of recent years should be dismissed as dangerous wishful thinking. Obama’s foreign policy team in addition to father Zbigniew Brzezinski, includes Brzezinski’s son, Ian Brzezinski, current US Deputy Assistant Secretary of Defense for European and NATO Affairs. Ian Brzezinski is a devout backer of US missile defense policy, as well as Kosovo independence and NATO expansion into Ukraine and Georgia. "

Labels: EU, Missile Crises, US

On Conflict in Georgia : Georgia unleashed this war

Although there has been widespread coverage in the American and European media of the tragic events unfolding in South Ossetia, essential background information about the conflict has often been omitted. First and foremost, nearly all of the articles avoid calling Georgia's action on Aug. 7 what it was - a clear act of military aggression by Georgia directed against the residents of South Ossetia and the Russian peacekeepers deployed in the region.It also seems to have been largely forgotten in the Western press that this is the second time that such a tragedy has happened. In the early 1990s, President Zviad Gamsakhurdia, then the leader of Georgia, proclaimed a policy of "Georgia for Georgians," abolished the autonomous status of South Ossetia (even though two-thirds of the population of South Ossetia is ethnic Ossetian or Russian rather than Georgian), and launched war against its people. It was after the resulting bloodshed (more that 1,000 killed and 2,500 wounded, many of them civilians) that a peacekeeping coalition comprised of Georgians, Ossetians, and Russians was established. Russian peacekeepers have been stationed in South Ossetia since that time to make sure that there is no further violation of peace in the conflict zone.

On the opening day of the Olympic Games - a symbol of peace and international cooperation - Georgia for the second time unleashed war in South Ossetia, violating the cease-fire that it had agreed to earlier in the day by attacking Russian peacekeepers, civilians, residences and humanitarian convoys. In this situation, Russia had no other choice but to respond. One might expect Georgia's violation of the cease-fire and use of force against South Ossetians to be met with strong international condemnation, but this did not occur. Instead, we saw attempts by some American experts and politicians to shift responsibility away from their Georgian ally by attributing to Russia ulterior motives in its response to the attack, such as the wish to restore its domination over this former part of the Soviet Union, to obstruct NATO enlargement, and so on.

Labels: EU, Georgia, NATO. US, Russia

East Europe Best Not Depend on 'Obsolete' NATO - by Jeam Matouck

For the founders, the European Union was destined to become a confederation with the partial status of a sovereign state and which implied political integration. For the East, just as for the British, it should remain just a vast single market. With fear in the belly of the Russian bear, they have never relied on European integration to ensure their security. In their view, only the United States could provide that. Hence their absurd following of the Americans into the Iraqi adventure. Hence their irrepressible desire to join NATO.A grave error on their part, because the United States, entangled as it is in the Iraqi affair and with its allies in Afghanistan, won't budge for a piece of the former empire's confetti [Georgia] and perhaps not even in case of a more serious invasion. Especially since the new American leaders, starting in November, are likely to mobilize all their forces on domestic affairs.

And by the way, what is NATO? It was intended to consolidate the capitalist countries of Western Europe and the United States to defend against a supposed Soviet attack, which everyone knew to be unlikely as soon as a certain level of nuclear symmetry had been achieved. From the moment the USSR had disappeared and Russia, somewhat weakened, no longer threatened anyone, what use did it serve? We must work tirelessly to convince our Eastern European partners that in the long run, the political integration of East Europe is the best guarantor of security, and incidentally, that we haven’t welcomed them simply to finance their development or receive their homeless! And we must simultaneously maintain good relations with Russia, which is recovering and which obviously has no desire other to develop and enrich itself with dignity.

Labels: Eastern Europe, EU, Nato

China seeks Caucasian crisis windfall - by M K Bhadrakumar

A geopolitical convulsion measuring six points on the Richter scale is bound to produce aftershocks. The reverberations of the conflict in the Caucasus are beginning to be felt. We may be unwittingly bidding farewell to the "war on terror". In any case, the international community has lost interest in Osama bin Laden. Rice is sure to try to rally European opinion and to make a strong pitch for Georgia's membership of NATO. But major European powers apprehend Moscow will take NATO's further expansion into the territory of the former Soviet Union as a grave provocation. If Washington succeeds in overcoming their reluctance, US diplomacy registers a signal victory. Moscow seems to estimate Europe may ultimately succumb to US pressure. Its decision to go slow on withdrawing troops from the Georgian hinterland needs to be seen in this perspective.

In real terms, Europe is competing with China for Russian energy supplies. This competition may begin to border on rivalry. According to the US Department of Energy, Europe's demand for gas will rise by more than 50% by 2025. There is simply not enough gas going for Europe to sidestep Russian supplies. (Russia already meets 30% to 50% of Europe's energy needs.)

Labels: China, Energy, EU, Russia

Labels: Energy, EU, Russia

"Making sense of the Russia-Georgia conflict requires unbiased examination - by Joy Franklin

Many things influence how a person or a group views a political situation like the unfolding drama in Georgia and South Ossetia. Identification, self-interest, fear, ideology and many other factors weigh in as we watch from afar.The citizens of Asheville’s Sister City, Vladikavkaz, located in the Russian Republic of North Ossetia-Alania in the foothills of the Caucuses, see the conflict in very different terms. And for them, it’s much more personal. Vladikavkaz is only a few miles from South Ossetia where the majority of the population, like that of North Ossetia, is Ossetian. “I cannot even try to explain in words how terrible it was in Tskhinvali (South Ossetian capital) and other villages on the nights beginning with the eve of the 8 of August (beginning of the Olimpiade, by the way) and up till now,” Georgy A. Tuayev, a native North Ossetian who lives in Vladikavkaz, wrote in an e-mail to his friend Kitty Boniske on Aug. 10.

Though internationally South Ossetia is viewed as part of Georgia, as far as Tauyev and most Ossetians are concerned, South Ossetia is independent of Georgia. “To start with I want to remind you that this is not the first war that Georgia has unleashed against South Ossetia,” Tauyev said in his e-mail. “You remember that almost the same scenario was played out in the early ’90s. At that time South Ossetia managed to survive and protect its independence from Georgia, although thousands of South Ossetians have fled to North Ossetia and most of them stayed here.”

Labels: EU, Georgia, Russia

EU/ECB - Hail the (unelected) president of Europe - by Ralph Atkins

The latest downturn – last week came news that the second quarter saw the first quarterly contraction in the eurozone economy since the launch of the euro – coincides with a period of political drift in the European Union, 15 of whose 27 members use the single currency. The sinking by Irish referendum voters of the Lisbon treaty on institutional reforms dashed hopes of the region becoming more politically effective, not least through the creation of a full-time EU president. But Europe does have one high-profile president with a sense of purpose and international standing. Jean-Claude Trichet, president of the European Central Bank, won the hearts of financial markets last year, and the respect of eurozone politicians, for his swift and bold action to ensure the proper functioning of markets. He has stood firm as oil prices drove global inflation sharply higher, refusing to follow the US Federal Reserve in cutting interest rates and even raising eurozone borrowing costs at the start of last month. Mr Trichet’s reputation is helping Europe’s image. Read US economics blogs and you quickly have the impression that quite a few Americans would like him exported to Washington.

Labels: ECB, EU

'New Europe' urges West to rethink Russian ties

They live in a historically battered region between West and East, the Rhine and the Volga, Berlin and Moscow. Now, as Russian tanks rumble in Georgia, the states of "new Europe" are urging the West to rethink its relationship with Russia and are pushing for new security and strong measures against an aggressive Moscow they say they know all too well. From Poland to Ukraine, the Czech Republic to Bulgaria, Russia's invasion of Georgia with tanks, troops, and planes is described as a test of Western resolve. The former Soviet states are vowing to thwart Russian aims – in deals with the European Union, in a missile-defense pact with the US, and in trade and diplomacy. "Poles look at the events transpiring in Georgia from the perspective of 'while America slept,'" says James Hooper, a former senior US diplomat based in Warsaw. "They understand that Russia's mainspring expansionist impulse can be deflected only by a steady US policy in managing European security affairs, and thus pin everything on American power, purpose and resolve."

Note EU-Digest: Not a good idea for a variety of reasons which the former East-Block satellite states of the Soviet Union still not seem to understand

Labels: EU, Russia

Property in France: Market report

According to recent reports, for the first time in 10 years the price of French property is starting to fall. Not by a great deal and not everywhere, but enough to make buying, selling or renting property an even more interesting exercise. In its April issue, the French economic journal Capital (www.Capital.fr) devoted nearly 30 pages to a recent and perhaps surprising phenomenon – the accumulating evidence that property prices are at last starting to fall. After 10 years of steady climb – by a total of 130% since 1997 – two independent reports and research undertaken by the magazine itself show that even by December last year, the price per square metre had fallen by an average 3% (from €3,367 six months earlier to around €3,316 per m²) across a broad spectrum of French properties. One of the consequences of the price rises that lasted up to the end of 2007 has been an overall slowing down of the market for both primary and second homes, as occupiers decided to say put, and potential purchasers found that the cost of buying property had risen from an average 3.8 to 5.1 years equivalent family income.

Government figures for the first quarter of 2008 show a dramatic slowdown, particularly in the sale of new-build properties, down overall by 27.9% compared with the same time last year, with three departments (Limousin, Lorraine and Auvergne) showing reductions of more than 60%. The country’s stock of new-build properties awaiting buyers now stands at 105,600 – an all time record.

Labels: EU, France, Real Estate

Roman walk from Nijmegen (Netherlands)to Xanten (Germany)

Dutch and German historians have set up a new crossborder country walk between the Dutch city of Nijmegen and the German city of Xanten. Hikers will learn about the region’s historical Roman roots thanks to signposts and informationboards between the two former important Roman army posts. The mayor of Nijmegen will inaugurate the new hiking route in April with various experts. The route passes through the eastern part of the city, where the Romans had built a military camp, a forum and an amphitheatre. The city of Nijmegen plans to set up two additional routes along Roman ruins.

Labels: EU, Germany, Netherlands, Tourism

Spanish wines offer plenty of personality - by Geoff Last

It's difficult to keep track of all the great wine from Spain these days. It is a rare week when I don't taste yet another well-made vino from Spain, usually at an attractive price. Even regions once regarded as strongholds for mass-produced table wine, such as La Mancha, are turning up the quality dial.

Mencia is a somewhat obscure Spanish varietal once thought to be related to Cabernet Franc, but recent DNA fingerprinting has revealed it to be a unique varietal native to Spain and Portugal, where it's known as Jaen. It yields wines either soft and fruity or dense and concentrated, not unlike Tempranillo, Spain's most famous red grape.

Labels: EU, Spain, Wine Industry

"Black box blues - Insurance Industry Europe - Investors still struggle to understand Europe’s insurers"

After watching bank shares drop by almost a third this year, most European investors probably consider the idea of buying insurance stocks a sick joke. Banks’ balance-sheets may be difficult to understand but insurers can be mind-bogglingly complex too. Insurers also have a track record of fouling up when the economic environment worsens. In the last downturn in 2002 they got things badly wrong. The big European life insurers owned far too many equities. When stock markets fell, their capital positions were whacked, forcing many to issue new shares. “Once bitten, twice shy” is the market’s motto today. The share prices of Europe’s insurers have dropped by almost a quarter this year and trade on the lowest multiple of earnings of any sector, battered banks included. Is that fair?

Labels: EU, Insurance Industry

Britain - The private lives of phone-sex operators - by Catherene Townsend

When I see the late-night ads for premium-rate phone sex lines featuring nubile, tanned young women, I get curious about who is actually on the other end of the phone. Like many people, I sometimes imagine that she's a bored housewife, moaning and calling herself a "naughty girl" while smoking a fag and doing the ironing. In fact, a quick skim of UK websites reveals that any scenario not involving children or animals seems to be up for grabs. There are some who believe that, in an era of YouPorn and free internet chatrooms, phone sex lines may soon become an anachronism. Although callers often pay more than £1 per minute to 0909 numbers, and the industry still rakes in billions, the salaries advertised for operators are from £10 to £24 per hour – and that, presumably, is if the phone rings constantly.

Labels: Britain, EU, Phone sex

Russia's War With Georgia May Revive U.S.-Europe Rift - by Mark Deen and Reed V. Landberg

Russia's attack on Georgia may reopen a U.S. rift with European Union leaders over how the trans-Atlantic alliance should deal with its main Cold War adversary. While President George W. Bush dispatched U.S. air and naval forces to deliver ``vigorous'' humanitarian aid to Georgia, the EU's foreign ministers have carefully avoided assigning blame for the conflict and plan to send non-military monitors to the region only later this year. Europe's caution in responding to Russia's first major offensive since the 1991 breakup of the Soviet Union illustrates differences with the U.S. over the military role of the EU and the development of trade and energy links with Russia.In parallel to the falling out over Iraq in 2003, divisions exist in Europe over how hard a line to take with Russia. Countries subject to Soviet rule during the Cold War are pushing for a tougher response, while the richer Western Europeans want to play down conflict.

Trade between Russia and the EU jumped 23 percent in 2007 to $284 billion, making the EU Russia's biggest trading partner and Russia the bloc's third-largest partner. The EU also depends on Russia to supply a quarter of its natural gas.

Labels: Atlantic Alliance, EU, Georgia, New Europe, Old Europe, Russia, US

Labels: EU, Europe, Fashion

EU-Economy: Lower Euro improves foreign exports for Europe as Consumer goods firms and exporters lead rally in European stocks

European stocks rose Friday, led by consumer-goods companies, as falling commodity prices eased concern that inflation would force central banks to lift interest rates. Carrefour, Ryanair Holdings and Royal Bank of Scotland climbed after prices for oil, gold, copper and corn declined. European Aeronautic Defense & Space Company rallied 5.3 percent as the euro slipped to the lowest since February against the dollar, boosting the value of its overseas sales.

Labels: EU, EU Economy, euro, Export

EU Minister Calls for Closer Russia Ties After Caucasus War

In an interview with Luxembourg's Foreign Minister Asselborn the DW asked: "Were the EU foreign ministers in agreement about who is to blame for the conflict? Answer: "No, we avoided the question of blame. If we got bogged down in playing the blame game, we would have lost a lot of time. We would have never agreed on anything and that wouldn't have solved anything anyhow. We are not judges in the European Union. But some countries, the Baltic States and Poland in particular, have clearly demonstrated solidarity with Georgia, while the German foreign minister, for example, warned against judging Russia too quickly. What does this mean then for the planned new strategic partnership agreement between the EU and Russia? I think it would be a fatal mistake to break off this partnership. I do not find it 100 percent bad that the Baltic States and Poland have taken this stance. But you could still see and feel that the EU presidency -- currently held by France, it could have been another country speaking on behalf of the European Union -- is calling the shots."

Labels: EU, Russia

Georgia War: A Neocon Election Ploy? - by Robert Scheer

Is it possible that this time the October surprise was tried in August, and that the garbage issue of brave little Georgia struggling for its survival from the grasp of the Russian bear was stoked to influence the US presidential election?

Before you dismiss that possibility, consider the role of one Randy Scheunemann, for four years a paid lobbyist for the Georgian government, ending his official lobbying connection only in March, months after he became Republican presidential candidate Senator John McCain's senior foreign policy adviser. Previously, Scheunemann was best known as one of the neoconservatives who engineered the war in Iraq when he was a director of the Project for a New American Century. It was Scheunemann who, after working on the McCain 2000 presidential campaign, headed the Committee for the Liberation of Iraq, which championed the US Iraq invasion.

Labels: EU, Georgia, Russia, US, US elections

America Watches the War in Georgia with Dumb Goggles - by Mark Ames

Five days after Georgia invaded and seized the breakaway separatist region of South Ossetia, sparking a larger-scale Russian invasion to drive Georgian forces back and punish their leaders, Russia surprised its Western detractors by calling a halt to the country's offensive. After all, the mainstream media, egged on by hawkish neocon pundits and their candidate John McCain, had everyone believing that Russia was hellbent on the full-scale annihilation and annexation of democratic Georgia.Up until now, this war was framed as a simple tale of Good Helpless Democratic Guy Georgia versus Bad Savage Fascist Guy Russia. In fact, it is far more complex than this, morally and historically. Then there are two concentric David and Goliath narratives here. The initial war pitted the Goliath Georgia-a nation of 4.4 million, with vastly superior numbers, equipment and training thanks to US and Israeli advisers-against David-Ossetia, with a population of between 50,000-70,000 and a local militia force that is barely battalion strength. Reports coming out of South Ossetia tell of Georgian rockets and artillery leveling every building in the capital city, Tskhinvali, and of Georgian troops lobbing grenades into bomb shelters and basements sheltering women and children.

At the root of this conflict is a clash of two twentieth-century guiding principles in international relations. Georgia, backed by the West, is claiming its right as a sovereign nation to control the territory within its borders, a guiding principle since World War II. The Ossetians are claiming their right to self-determination, a guiding principle since World War I. These two guiding concepts for international relations-national sovereignty and the right to self-determination-are locked in a zero-sum battle in Georgia. Sometimes, the West takes the side of national sovereignty, as it is in the current war; other times, it sides with self-determination and redrawing of national borders, such as with Kosovo.

Labels: EU, Georgia, Russia, US

Europe Economy Shrinks as Spending, Investment Falter by Fergal O'Brien and Christian Vits

Europe's economy contracted for the first time since the introduction of the euro almost a decade ago as faltering sales undermined investment by companies and soaring costs eroded consumer spending power. Gross domestic product fell 0.2 percent in the second quarter from the first, when it increased 0.7 percent, the European Union statistics office in Luxembourg said today. The year-on-year growth rate slowed for a third straight quarter, to 1.5 percent. Separate figures showed inflation held at 4 percent in July, less than initially estimated. While oil prices have retreated 20 percent from a record $147.27 a barrel reached on July 11, they are still 60 percent higher than a year ago.

Labels: Economy, EU

'New Europe' shows resolve' - "or are they just plain wrong like they were on Iraq?" - by Peter Goodspeed

The Five Day War has revealed deep new divisions between Old and New Europe.

There is an obvious rift within the EU's 27 member states and between former Soviet satellite states who want to take tough action against Moscow and the Western European powers who cautiously warn against antagonizing a resurgent Russia.Ironically, the divisions almost mirror the splits that surfaced in Europe over the 2003 invasion of Iraq, when Donald Rumsfeld, then the defense secretary, dismissed invasion critics, saying, "You're thinking of Europe as Germany and France. I don't. I think that's old Europe." His comments raised a furor, with Europeans accusing him of being both wrong and undiplomatic. Today, European tensions between the ageing West and the impatient, still insecure newcomers from the East are increasingly evident.

More immediately, New Europe's fears of being the next potential target of Russian aggression spurred Poland to conclude an agreement with Washington yesterday, establishing a controversial anti-missile defense shield on Polish soil. After 18 months of inconclusive bargaining, they signed a deal in which Washington will set up its new anti-missile shield in exchange for a promise to base 10 Patriot anti-missile batteries permanently in Poland. Washington also agreed to a mutual defense pact that commits each country to come to the others aid in a crisis.

Note EU-Digest "Some of the former European east block countries which are now members of the EU and who have enormously benefited from the economic aid provided to them by the EU seem to be unwilling to be part of a common European policy. They rather prefer to be part of the US sphere of influence. This should not be acceptable and they must be made to understand by the majority of the EU members that this behaviour is not conducive to the unity of the European Union.".

Labels: EU, EU Russia, European Unity, Georgia, New Europe, Poland, Russia; US

Georgia: Rivals say they plan to remove Georgian president - by Charles Clover

Levan Gachechiladze, Mr Saakashvili's former campaign manager, who ran against him in January's presidential elections, said Georgia's political opposition would campaign for elections to be held "at the earliest opportunity", perhaps within two months. "This government has no chance of establishing trust with Georgians," he said. Kakha Kukava, secretary-general of the opposition Conservative party of Georgia, similarly criticised the president for the war. "Saakashvili was personally responsible for the military operation, and for starting a war we could not win," he said, adding that his party would wait until the situation had cooled and then call for mass demonstrations aimed at removing the government.

Labels: EU, Georgia, Mikheil Saakashvili, Russia

U.S., U.K. officially pull out of Russia-NATO joint exercise

The U.S. and Britain have officially pulled out of a Russia-NATO naval exercise in the Sea of Japan slated for August 15-23, a spokesman for the Russian Pacific Fleet said on Friday. The destroyer, U.S.S. McCampbell (DDG-85), and Royal Navy frigate, HMS Kent were due to have taken part in the FRUKUS exercise off Russia's coast.He said that the French frigate, Vendemiaire, and Russia's Marshal Shaposhnikov ASW ship had successfully held bilateral drills in the Sea of Japan as had earlier been agreed.

Labels: EU, Georgia, Military, Russia

Is the United States Poking the Bear? - by Keith Porter

"At my house, when one of the kids deliberately does something known to antagonize another family member, we say they are "poking the bear." Today, with U.S.-Russian relations at a state of high tension over the Georgia conflict, the United States might have just poked the bear. "An agreement to place American anti-missile interceptors in Poland was announced yesterday even though the Russian are strongly opposed to the deal. According to the BBC, "The US says the system will protect itself and Europe against long range missile attacks by 'rogue states'." On the other hand, "Moscow has said the project would upset the military balance in Europe and warned it would have no choice but to point its own missiles at the installations." So maybe the timing of this agreement announcement is coincidental. The deal with Poland has been in the works for some time. But it could also easily be a U.S. attempt to make sure the Russians know America still has friends in the region.

Note EU-Digest: It is amazing to see how the EU is "asleep at the wheel" letting themselves be taken into an extremely dangerous political situation as to their relationship with the Russians and Americans. The US presence in Europe which used to be based on mutual respect, has now in a sense become a liability. The fact remains that Georgia started the conflict and Russia reacted, not only based on the invasion, but also because it feels threatened by the encroachment of its territory by NATO, and the potential of the US endangering its position as an energy supplier to Western Europe. Just imagine the reaction of the US if a foreign entity would place anti missile-interceptors in Mexico or Canada, or if the Mexicans went into Southern Texas and reclaimed parts of it based on ethnic minorities being discriminated against and in the process blocked US Oil exports ? Would the US accept it? Of course not.

Consequently Europe must also not accept to become a casualty of either the US or Russian geopolitical strategies, but develop its own independent policies, most importantly one on energy. Nicolas Sarkozy's intervention as EU president in Georgia was shrewd and clever and deserves kudos. His "six-point plan" for South Ossetia is no road map to lasting peace in the Caucasus. But the manner of his negotiation hints at what might be possible if Europe spoke to Russia and the US with one voice. Russia needs access to European energy markets and the US needs support in the Middle East. A united EU front on that score would give the EU leverage over Washington and the Kremlin. As the biggest single market in the world, Europe has considerable "soft" power. Exercising it as a unified group is the most intelligent way to oppose Russia bullying its former satellites and US imperialistic tendencies.

Labels: EU, Georgia, Russia

Labels: Energy, EU, Georgia, Russia