segunda-feira, 30 de março de 2009

Icelandic banks play hardball with British firms

Iceland is taking a tough new approach to its struggling UK investments as the Reykjavik government fights to recover as much cash as possible, according to bankers involved in rescue talks.

Companies financed by any of the failed Icelandic banks will have to fight harder to survive the recession, as banks are less willing to grant them a second chance. Glitnir, Landsbanki, Straumur and Kaupthing are now in the hands of the Icelandic government, which is trying to rebuild its collapsed economy.

"They are very aggressive," said a person directly involved in restructuring deals involving Icelandic banks.

Earlier this week, sports chain JJB proposed a plan to avoid insolvency as it could not repay the £60m it owes to Lloyds, Barclays and Kaupthing. Barclays and Lloyds offered the beleaguered firm another £25m each for working capital, but the Icelandic bank has not.

"For all banks, it's a tough time," said Peter Williams, JJB's executive director. "The role of any administrator is to recover the money, for the benefit of creditors."

Icelandic banks, however, may have less patience than others. Shortly after the government took control of the financial institutions, Landsbanki called in its loans on Baugur, effectively putting some of Baugur's British assets into administration - including House of Fraser, Hamleys and Iceland food group.

Similarly, soon after being nationalised, Kaupthing called in its loans on Mosaic, a fashion group which owned eight brands including Coast, Karen Millen, Oasis, Principles and Warehouse.

"We are in the process of securing our interest in some holdings," said Kristján Óskarsson, a member of Glitnir's resolution committee in Reykjavik, in a telephone interview. "We will maximise our value, we will not start fire-selling assets." He declined to give more details about Glitnir's UK assets.

Icelandic banks invested in property and are still lenders to British businesses and individuals, including the Candy brothers and Robert Tchenguiz.

The future of West Ham United, the east London football club, may be decided at a bankruptcy hearing in Reykjavik Municipal Court as Hansa, its parent company, is in negotiations with its creditors. The club was bought in 2006 by Icelandic billionaire Björgólfur Gudmundsson, who held a 41% stake in Landsbanki bank, now nationalised.

Kaupthing also held stakes in UK companies as it expanded following the acquisition of Singer & Friedlander. According to its 2007 annual report, Kaupthing was an investor and provided debt facilities to Refresco, a soft drinks maker, as well as to La Tasca, the Spanish food chain.

The bank also helped finance Enic's acquisition of Tottenham Hotspur shares in 2007. Spurs director Matthew Collecott declined to comment on whether Kaupthing was still a lender, saying the facility was with Enic, a Bahamas-based company.

Water scarcity stalking Europe north and south, says report

LEIGH PHILLIPS

18.03.2009 @ 09:10 CET

EUOBSERVER / BRUSSELS - Europe's use of water is unsustainable and is facing water scarcity and drought, the European Environment Agency has warned in a new report. The solution is no longer expanding supplies, the EEA argues, but cutting demand and the introduction of water pricing across all sectors.

Water stress is not just a southern phenomenon anymore (Photo: EUobserver.com)

The EEA, the European Union's environment advisory body, says that it is no longer just southern European member states such as Spain and Italy that are experiencing water stress, but the phenomenon is growing in northern Europe as well.

"We are living beyond our means when it comes to water," said Jacqueline McGlade, the agency's director. " The short-term solution to water scarcity has been to extract ever greater amounts of water from our surface and groundwater assets. Overexploitation is not sustainable."

Adding to the threat to already stretched supplies, climate change will increase the severity and frequency of droughts in the future, exacerbating water stress, especially in the summer.

Although the EEA says there is some room for expansion by authorities of the use of alternative water supplies, such as treated wastewater, greywater (domestic wastewater), and ‘harvested' rainwater, the agency says fundamentally, there needs to be a shift in policy focus from increasing supply to minimising demand.

"We have to cut demand, minimise the amount of water that we are extracting and increase the efficiency of its use," Ms McGlade added.

In response, the agency recommends that member states do a better job of implementing drought management plans and focus on the risk of water stress rather than waiting for a crisis and then attempting to manage it.

The report also warns against the use of bioenergy crops, whose cultivation is very water-intensive, in areas of water scarcity. The authors also say that desalination is no real answer, given its high energy requirements and brine by-product.

Elsewhere in agriculture, the agency says that a combination of crop selection and irrigation methods can substantially improve agricultural water efficiency if backed-up with farmer advisory programmes, and that national and EU funds including the EU's Common Agricultural Policy should be deployed in ways that promote sustainable water use in the sector.

Leakage in public water supply systems must also be addressed, argues the report, noting that in some parts of the continent, water loss as a result of leakage exceeds 40 percent of supplies.

The agency also recommends beefed up surveillance of water systems and stronger penalties for illegal water abstraction, a phenomenon it describes as "widespread" in some regions.

However, the major recommendation is that water pricing be introduced across all sectors, including agriculture.

The agency suggests that effective water pricing requires the implementation of water metering and needs to be based on the volume of water used, rather than adopting a flat-rate approach. At the same time, in order to guarantee universal access to clean water and sanitation, pricing should not result in anyone compromising their health in order to pay their water bill.

Macedonia holds peaceful elections

ELITSA VUCHEVA

23.03.2009 @ 09:10 CET

Macedonia on Sunday (22 March) voted in presidential and local elections seen as crucial for its EU bid, with no sign of the violence that marked last year's parliamentary elections.

"The elections were conducted in a good atmosphere, without incidents and with no major irregularities," electoral commission chief Aleksandar Novakovski was quoted as saying by AFP after polling stations closed on Sunday.

The second round of the presidential elections will take place on 5 April (Photo: Martin Schroeder)

Gjorge Ivanov, the ruling conservative party's candidate (VMRO-DPMNE), led in the race, obtaining nearly 38 percent of the votes, followed by Ljubomir Frckoski of the main opposition Social Democrats (SDSM), who got around 20 percent, according to first results reported by Macedonian news agency Makfax.

Former interior minister Ljube Boskoski, who was last year acquitted by the UN war crimes tribunal in The Hague and is now running as independent candidate, came third with around 16.5 percent.

The final results are to be announced later on Monday, but a runoff will most certainly take place on 5 April, as Mr Ivanov fell short of obtaining a clear majority in the first round.

The elections in the Balkan country - which has been an EU candidate since 2005, but has yet to start EU membership negotiations - were followed closely by the EU.

"This is probably the last opportunity for quite some time for the country to show that it has not only the capacity, but also the political will, to organise elections in line with international standards," the EU's representative in Macedonia, Erwan Fouere, was quoted as saying by the BBC.

'A calm and positive atmosphere'

Earlier this month, EU enlargement commissioner Olli Rehn had also called the elections a "moment of truth" for Macedonia and the "key outstanding condition" for Skopje to be allowed to start EU accession talks. A dispute with Greece over its name has also caused problems for Macedonia's EU and NATO bids.

Mr Rehn's comments came after violent incidents marked the general elections in the country last year, killing one person and wounding several others in an ethnic Albanian area.

Some 8,500 police officers were deployed on Sunday in order to prevent any recurrence of the June 2008 shootings.

"It seems that everything was in order ...It was a calm and positive atmosphere," Mr Fouere said.

"For this I would like to congratulate the electoral board and especially the voters who despite the bad weather came out to vote," he added.

Heavy snow disrupted the voting in some parts of the country, postponing the process in over a hundred polling stations. The overall turnout still surpassed 50 percent, however.

Local polls for mayors and city councils were also held simultaneously.

An assessment report is to be issued later on Monday by the Organisation for Security and Co-operation in Europe (OSCE), which monitored the elections.

EU expanding its 'sphere of influence,' Russia says

VALENTINA POP

21.03.2009 @ 16:17 CET

EUOBSERVER / BRUSSELS - The Eastern Partnership is an EU attempt to expand its "sphere of influence" in the quest for hydrocarbons, Russian foreign minister Sergei Lavrov has said, in Moscow's first major broadside against the new policy.

"We are accused of having spheres of influence. But what is the Eastern Partnership, if not an attempt to extend the EU's sphere of influence, including to Belarus," the minister said on Saturday (21 March) at the Brussels Forum, a high-level symposium.

Russian foreign minister Sergei Lavrov sees spheres of influence in Europe (Photo: wikipedia)

He added that the Czech EU presidency and the European Commission are putting undue pressure on Belarus by suggesting it might be marginalised if it follows Russia in recognising the independence of Georgian breakaway regions South Ossetia and Abkhazia.

"Is this promoting democracy or is it blackmail? It's about pulling countries from the positions they want to take as sovereign states," Mr Lavrov said.

The EU on Friday formally launched the Eastern Partnership, a €600 million policy to forge closer political and trade links with six former Soviet countries - Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine.

Azerbaijan and Georgia are important for the EU's pursuit of alternative gas and oil import routes from the Caspian Sea region. Belarus also hosts a major gas pipeline system.

The invitation of Belarus leader Lukashenko to an Eastern Partnership launch summit in May and the pace of EU-Belarus rapprochement in the partnership process continue to hang in the balance, however. Czech foreign minister Karl Schwarzenberg in February said it would be "difficult" to make progress if Minsk takes the Russian line on Georgia.

Mr Lavrov's choice of words on Saturday was piquant, with former-Communist EU members often accusing Moscow of blackmailing its neighbours or thinking in terms of Cold War-era spheres.

He said Russia has special relations with eastern European countries because of "hundreds of years of common history" and Russia's open labour market.

Sweden, the co-author of the Eastern Partnership project together with Poland, rejected Mr Lavrov's position as "completely unacceptable."

"The Eastern Partnership is not about spheres of influence. The difference is that these countries themselves opted to join," Swedish foreign minister Carl Bildt told EUobserver at the Brussels Forum.

The EU's position on Georgia is not 'blackmail' but "is about upholding the principles of the EU and international law, which Russia should also be respecting," he added.

'Appeasement won't work'

The Lavrov speech should dispel the idea that Russia will agree to a formula of more EU, less NATO for its former vassals, according to EU and NATO-aspirant Georgia.

"Mr Lavrov just confirmed that whatever choices Eastern European countries make, be it NATO or EU, they are not acceptable to Russia. Moscow continues to see the Euro-atlantic aspirations of these countries as an attempt to leave its sphere of influence," Georgian minister for reintegration Temuri Yakobashvili told this website.

"The fact that Russia sees the European Partnership as a zero-sum game proves wrong those who believe that giving up NATO aspirations would solve the problems with Moscow. Appeasing Russia will not work."

Ukraine, home to a large ethnic-Russian minority hostile to NATO expansion, is taking a more nuanced approach.

"There is a difference, NATO has a huge legacy from the bipolar world of the Cold war, which the EU does not have," Ukraine deputy premier Hryhoriy Nemyria said.

"The strategic priority of our country is integration in the EU. This is the way to modernise our country and we welcome the Eastern Partnership policy, because it uses de facto the same instruments as for EU candidates. We know it's not about membership, but membership is also not completely ruled out for the future."

Eastern partnership approved

By Toby Vogel
20.03.2009 / 11:56 CET
EU leaders give their backing to scheme to deepen the EU's relations with six eastern neighbours, including Ukraine and Belarus.

European Union heads of state and government have approved a scheme to tie the EU's neighbours to the east – Azerbaijan, Armenia, Belarus, Georgia, Moldova and Ukraine – closer to the Union.

The scheme, which is known as the eastern partnership and is due to be launched on 7 May, will form an integral part of the EU's existing neighbourhood policy.

Karel Schwarzenberg, the Czech foreign minister and chair of the EU's foreign ministers' meetings, said that the decision meant that "great dream has been achieved".

The EU's leaders agreed to set aside €600 million for the scheme.

There had initially been concerns about financing a proliferation of new EU forums and schemes. The eastern partnership was first proposed by the Swedish and Polish governments last year, partly in response to the French-backed Union for the Mediterranean, which also falls under the neighbourhood policy.

The European Commission set out its plans for the scheme in a proposal last December. That has since then discussed and adjusted by EU member states, led by the Czech Republic, the current holder of the EU's rotating presidency.

Ukraine lukewarm

The partnership holds out the promise of “political association and further economic integration between the European Union and its eastern partners,” language that reflects the EU's determination not to encourage these countries to seek full membership. While the partnership offers a tangible upgrade of existing links in the case of countries like Armenia, others – above all Ukraine – see little added value in the scheme because they see it as a distraction from ongoing association talks and their ultimate goal of gaining membership of the EU.

Viktor Yushchenko, Ukraine's president, told European Voice in an interview on 19 March that he “welcomed” the partnership, but he also stressed that he saw bilateral negotiations as the proper venue for deepening relations. Arseniy Yatsenyuk, a former foreign minister of Ukraine and likely liberal candidate in presidential elections next year, told reporters today that the eastern partnership was “very important for the EU”, suggesting that it was of far less consequence for his country.

Tricky partners

The partnership offer comes just two days after a referendum in Azerbaijan to scrap presidential term limits (18 March). According to preliminary figures from the election commission, more than 90% of voters approved the measure, paving the way for President Ilham Aliev – who succeeded his father, Heydar Aliev, in 2003 – to be president for life.

The inclusion of Belarus – Europe's most authoritarian regime – raises the possibility of Alyaksandr Lukashenka, often dubbed ‘Europe's last dictator', attending a summit with EU leaders. A spokesperson for the Czech presidency said that it had not yet been decided who would be invited and that the Czech government would follow earlier decisions by the EU on travel restrictions on members of the Belarusian regime. Earlier this week, EU foreign ministers had extended the suspension of visa bans on senior representatives of the Belarusian government by another nine months, following an initial six-month suspension.

Merkel Is Ready to Greet, and Then Resist, Obama


BERLIN — Chancellor Angela Merkel of Germany, an avowed friend of the United States and the leader of the European Union’s biggest economy, is diplomatic about the coming visit by President Obama. But she is clear that she is not about to give ground on new stimulus spending, stressing the need to maintain fiscal discipline even as she professes to want to work closely with the new American president. “International policy is, for all the friendship and commonality, always also about representing the interests of one’s own country,” Mrs. Merkel said in an interview with The New York Times and The International Herald Tribune. During the hourlong interview, Mrs. Merkel made clear that she was not wavering in her response to the economic crisis, by loosening the German checkbook or encouraging the European Central Bank to follow the Federal Reserve in pumping money into the system. She also said she expected Mr. Obama to keep his word to gradually rein in imbalances that would cause American indebtedness to grow sharply as a result of his domestic stimulus plans. For a new president in difficult times who may miss the simplicity of campaigning, Mr. Obama might be well served to think of Mrs. Merkel as the swing state of European leaders. “On an international level, we must all recognize that after the crisis we need to return again to solid financial policies,” Mrs. Merkel said. “Otherwise, we run the risk of already preparing the next crisis.” For all the domestic pressures, Mrs. Merkel has always been dedicated to the strong relationship that sprang up between the United States and Germany. She stressed during the interview, “It is in the interest of Germany that America plays a strong role in the world and emerges from the crisis stronger.” “I firmly believe that the crisis has made it clear that no country can solve its problems on its own, and we, at the beginning of the 21st century, must have the will to enhance international cooperation to a new qualitative level,” Mrs. Merkel said.


( Retirado do jornal INTERNATIONAL HERALD TRIBUNE - 30.03.09 )

Europa em termos econômicos, política e problemas internacionais

A contemporaneidade no velho continente berço da civilizaçao - Europa - tem sido pautada por novos desafios internacionais que por sua vez demandam novas políticas econômicas, sociais, e ecológicas. De um mundo em acelerado processo da globalização, Europa hoje depara-se com questões outrora por ela consideradas pouco relevantes mas que atualmente são de extrema importancia na formulação de políticas públicas nacionais das nações que compõem a União-Européia. Já se tem a percepção de que no desenvolvimento/ crescimento econômico e social não podem se trilhados em esquemas e ou estratégias individualistas, o que é fundamental e indespensável para garantir eficácia na resolução dos problemas atuais que o mundo enfrenta e particularmente a Europa.

Sociedade

Nesta particularidade a migração(emigração e imigração) constituem sem duvida uma questão -chave na livre circulação dos cidadãos europeus naquele continente , permitindo-lhes usufruir dos seus direitos de aproximação entre povos, mais oportunidades melhores condiçãoes de vada, mais informação, formação, conhecimento acesso a tecnologias e um entendimento mais realista do globo e particularamente da Europa.
O emprego desejado sobretudo nos países mais vulneráveis como Portugal e os novos estados da ex-Uniao Sovietica, política habitacional previdencia social, subsidio do desemprego ... são apenas algumas das questões tidas como mais relevantes nas questões social da europa dos que correm.

Economia da Europa

A semelhança do que acontece na sociedade com a sociedade com alivre circulação das pessoas apela-se com uma verdadeira uniaõ dos mercados ou seja livre circulação de bens e serviços; restringir ou seja quebrar a barrera alfandigarias acertar a viabilidade e o escoamento dos produtos por via terretre e aeria, maritima e fluvial..


Europa em termos políticos

É nesta esfera que tudo pode ser feito para que se alcance a sociedade europeia desejado na economia para todos e ainda com este instrumento para políticas pode-se alcançar exito em outros dominios com mais democracia, união, e o espírito da globalização.


Novos desafios internacionais da Europa

Alguns novos fenômenos como a migração clandestina, o terrorismo, aquecimento global, avanço desenfreado cada vez mais do HIV/ SIDA no globo, resentimesnto a brutal crise financeira que assolou os grandes bancos mundiais e o setor imobiliario são apenas, algumas das questões problematicas da agenda internacional e particularmente da Europa.


Felismina

Berlusconi seeks more power after party merger

Rome Silvio Berlusconi, the Italian Prime Minister, yesterday told members of a new conservative party that united his own Forza Italia with the right-wing Alleanza Nazionale that he needed more powers vested in him to help to modernise Italy.

About 6,000 delegates, gathered in Rome for a three-day congress officially to baptise the Il Popolo della Libertà (People of Freedom) party, heard Mr Berlusconi, who is 72 and has been Prime Minister three times, promise reforms in education, women’s rights and environmental policy. But he said that his position commanded only “false” power and that he had been hamstrung in the past from carrying out changes by an “irresponsible opposition”, an unwieldy parliament and the inability to change his Cabinet.

Many analysts believe that he intends to strengthen the role of the president of the republic and then manoeuvre himself into that position when this legislature ends, but he made no mention of the presidency in his speech.


( Retirado do jornal TIMES - 30.03.09 )

Four arrested ahead of G20 protest in London

Four people arrested in the West Country in possession of “explosive material” today are believed to have been planning to disrupt the G20 summit.

The four were being questioned at a police station in Cornwall. An unofficial police source said they had been in possession of flares and other material.

He added: “Items have been seized which would come under the Explosives Act rather than bomb-making equipment”. It would seem they were in possession of material which would not have the potential for causing injury so much as disruption."

The two men and two women were arrested by “pure chance”. Police have not confirmed where they were picked up by the inquiry is believed to centre on Plymouth.

"It appears these people and their arrests are connected to the G20 summit in London this week. The initial arrests of three of them appear to have been pure chance and then a fourth individual was held by police this morning."

A spokesman for Devon and Cornwall police confirmed arrests have been made and said an official statement would be released shortly.

Scotland Yard confirmed that it had been informed of the arrests and was monitoring the situation in advance of expected street demonstrations this week. A source said: "We are aware of some activity."


( Retirado do jornal TIMES - 30.03.09 )

domingo, 29 de março de 2009

Recognition of Kosovo's independence might set precedent for future trouble: Serbian president

Serbia's President Boris Tadic said here on Friday that the recognition of Kosovo and Metochy's independence might create a precedent for future trouble in the Balkan area.

Paying a state visit to Bucharest, Tadic thanked his Romanian counterpart Traian Basescu for the support granted to his country on the Kosovo issue and Serbia's accession to the European Union.

"I am against accepting the independence of Kosovo Province ...At the same time, our country will never give up joining the European Union. I wish to thank President Basescu and the entire Romania for their support in the problems of Kosovo and Metochy, as well as in Serbia's joining the EU," Tadic told a joint press conference with Basescu following their official talks.

The Serbian president was positive that the stance Romania takes is also in its own interests.

"The Western Balkans and Serbia's joining the European Union is a very important strategic point. Recognizing the independence of Kosovo and Metochy might create a precedent that, in its turn, may cause trouble for the future of our area," said Tadic, stressing that Serbia's EU accession is also of great economic importance.

President Basescu said that he and his Serbian counterpart talked about the association agreement between Serbia and the European Union, adding that Romania thinks it must be signed as soon as possible, and Serbia meets all the criteria to seal the document.

Tadic arrived in Bucharest on Friday for a two-day visit to Romania. He also met with Romanian Prime Minister Emil Boc as wellas Chamber of Deputies Speaker Roberta Anastase.

On Saturday, Tadic will go to the city of Constanta in south-eastern Romania, where together with Basescu he will watch a soccer match between Romania and Serbia, in the qualifiers for the2010 World Championships.

Repairing the bridge

Mar 12th 2009 | ANKARA AND TEHRAN
From The Economist print edition

The diplomatic benefits of an undiplomatic outburst


WHEN Recep Tayyip Erdogan stormed out of a panel discussion with Israel’s President Shimon Peres in Davos last January, denouncing Israel’s offensive in Gaza and quoting the sixth commandment “Thou shalt not kill”, many wondered whether he had just demolished Turkey’s position as the bridge between the Jews and the Arabs, and between the West and the Islamic world.

He certainly won plaudits among many Muslims, not least Iran’s President Mahmoud Ahmadinejad. Yet his outburst—and the rancour against America and Europe that many Turks now express—seem not to have done him any harm with the administration of Barack Obama. On the contrary, at a time when America wants to reach out to the Muslim world, Mr Erdogan’s popularity may be useful. After visiting London, Brussels and Prague next month, Mr Obama will travel to Turkey, keeping a pledge to visit a Muslim country in his first 100 days. Delighted Turkish officials see favourable omens: they say it will be the first time an American president has visited Turkey without also making an obligatory visit to its rival, Greece. They interpret Mr Obama’s decision to visit as part of a European tour, rather than a Middle Eastern one, as confirmation of Turkey’s importance in NATO and a message of American support for Turkey’s wish to join the European Union.

One senior official spoke of a new “golden era” in Turkish-American relations, with co-operation on a host of issues: the Arab-Israeli dispute; opening a dialogue between America and Iran to curb Tehran’s nuclear programme; stabilising Iraq as American forces leave; and opening energy pipelines through the Caucasus.

Perhaps the most important of these issues is Iran. This week Turkey’s President Abdullah Gul, in Tehran for a regional economic summit, met the country’s supreme leader, Ayatollah Ali Khamenei. It was the first time the leader of a NATO member state had been given such an audience, said Mr Gul’s entourage. Iranian leaders listened as Mr Gul, who recently met the American secretary of state, Hillary Clinton, urged Iran to take up an American olive branch. Mrs Clinton said Iran would be invited to a meeting in The Hague later this month of Afghanistan’s neighbours and countries contributing troops to the NATO-led stabilisation mission there.

Still, Turkish officials are holding back their hopes of an early breakthrough between America and Iran. It is hard for “an iceberg to melt overnight”, says one. America will probably not want to move until after Iran’s presidential elections in June. It fears that a quick thaw would strengthen the hardline Mr Ahmadinejad, who could claim that his policy of nuclear defiance had succeeded in forcing America to deal with Iran on its own terms. Until then, Turkey hopes America will restrain the incoming Israeli government from turning up hostile rhetoric against Iran, or from trying to attack its nuclear facilities.

Iran, for its part, told Turkey it wants more confidence-building steps from Washington. In public, it shows little sign of softening. Mr Ahmadinejad dismissed Turkey’s mediation. Mr Khamenei said America had made “big mistakes” in Iraq, Afghanistan and Gaza. “The American government is continuing the same previous path and there is no sign of efforts to make up for the mistakes,” he said.

Turkey wants to highlight Mr Erdogan’s other moves: helping repair Syria’s relations with Saudi Arabia and Egypt, and pushing for reconciliation between the two Palestinian factions, Hamas and Fatah. Turkey also claims to have played a part in bringing together the leaders of Afghanistan and Pakistan. “Obama knows that,” says Mr Gul.

As Europe frets about the reliability of oil and gas supplies from Russia—a dispute with Ukraine in January left much of eastern and central Europe freezing—Turkey’s position as the alternative route for energy supplies through Georgia should enhance its standing. This fragile corridor would be strengthened if Turkey were to succeed in another ambition: a grand bargain to resolve border disputes involving Turkey, Armenia and Azerbaijan.

Spain launches a £8.4bn bailout to rescue a stricken savings bank

Spanish government spends €9bn (£8.4bn) to rescue Caja Castilla La Mancha, after it reported 'liquidity problems'

The Spanish government has launched a €9bn (£8.4bn) bailout to rescue the first financial institution that is on the brink of collapse since the beginning of the credit crunch.

Savings bank Caja Castilla La Mancha (CCM) had "liquidity problems" that forced the intervention from the Bank of Spain, Finance Minister Pedro Solbes said. The action was an "isolated incident" among the country's financial sector, he said. The country's Treasury will provide guarantees whilst CCM continues to function normally, he said.

The central bank's move is Spain's first intervention in a financial institution since 1993.

Like other savings banks, CCM expanded beyond its traditional market in central Spain to join lending syndicates throughout the country. Loan defaults are soaring in Spain, where almost one quarter of the economy was linked to the -now collapsed – property market.

CCM had embarked on a process to merge with Unicaja, but the Andalusian savings bank rejected the deal.

As the global credit crunch bites into the economy, mergers and acquisitions are expected to reduce the number of Spanish savings banks to about a dozen, from more than 40. Unlike banks such as Santander (which owns Abbey National) or BBVA, savings banks are more vulnerable as they are not internationally diversified and their loan books are more linked to the property and consumer debt markets.

Barcelona-based La Caixa and Caja Madrid, the largest savings banks, have been the most acquisitive.

Savings banks are not owned by shareholders as they are, in theory, non-profit organisations meant to reinvest their profits in their regional economies. Such banks are often controlled by local ­politicians, who appoint the managers. Savings banks' boards usually represent the different political parties in the same proportion as the regional parliament. This has been criticised by some ­analysts as counter-productive as it has led to investment decisions being taken on the basis of politics rather than on commercial grounds, they say.

European NATO members at odds over strategic priorities

27.03.2009 @ 09:35 CET

EUOBSERVER / BRUSSELS – NATO is increasingly lacking solidarity and unity of vision over future strategic options, such as its relation with Russia and enlargement, a study issued by the Hague Centre for Strategic Studies, a Dutch think-tank, shows.

Issued just a week ahead of NATO's 60th anniversary summit, the study, Finding a path away from NATO de-solidarisation is aimed at feeding into the drafting of the alliance's new strategic concept, which dates back to 1999. The 26 NATO heads of state and government are set to start work on a new concept at the summit.

NATO at 60 - mid-life crisis or fresh start? (Photo: nato.int)

ch as the economic crisis, the race for Arctic resources, and a resurgent Russia and China, NATO is facing the "strategic necessity" of reconciling its traditional role – providing for the security of its members – with that of coping with these new challenges, the report highlighted.

Carried out amongst 300 experts and students on transatlantic security, the study was launched on Thursday (27 March) at the Security and Defence Agenda, a Brussels-based think-tank that focuses on EU-NATO issues.

As is the case with the EU, NATO is found to be divided over relations with Russia because some members see the eastern neighbour as a security threat, especially after the gas crisis and the Georgian war, while others consider it a necessary partner, the study found.

Members are also at odds over the issue of NATO enlargement, which is seen as both inevitable but undesirable. The biggest thorn in NATO-Russian relations, enlargement to Georgia and Ukraine, has been put off for now, yet allies have committed to their membership at some point in the future.

Speaking at the event, Hungarian ambassador to NATO Zoltan Martinusz pleaded in favour of NATO's enlargement policy, which saw his country join after the fall of the Iron Curtain.

"NATO has a strong role in promoting transformation and change, and the political transformation of Eastern Europe was one of the historic successes of NATO, done a hundred percent by political, not military means," Mr Martinusz said.

The Hungarian diplomat dismissed the idea that eastern European members refused to transform their forces to be more expeditionary and deployable abroad, but preferred to keep more "static" troops which could defend them from a classical terrestrial invasion, alluding to the one Georgia faced last summer when after Tbilisi's attack on South Ossetia, the Russian army invaded its territory with tanks.

"We don't have static forces anymore. Hungary only borders allies, and from hundreds of tanks, we only have six now, for training purposes," he said.

German revolution

Meanwhile, on Thursday, German Chancellor Angela Merkel called for a "revolutionary" transformation of NATO, ahead of the summit that she is to co-host with the French president in Strasbourg and Kehl.

Ms Merkel stressed that the military alliance needs to co-operate closely with civil organisations such as the European Union and the United Nations.

"I don't see a global NATO. The alliance is and remains focused on the collective security of north-Atlantic partners," she said.

Eurozone security risks

Meanwhile, the security aspects of the current economic crisis also featured at the event.

A potential break-up of the eurozone, a topic of speculation in financial circles, could have a significant impact on European security and defence, the head of the Dutch think-tank said at the event.

"We don't know yet what the outcome of the financial and economic crisis would be. If the eurozone breaks up - there is this possibility - then it will surely affect defence and security in Europe. But the crisis could also lead to more integration. It could go both ways," said Rob de Wijk, the director of the Hague Centre.

Mr de Wijk later told EUobserver that talk about a eurozone breakup was "no longer as taboo as [it was] two to three months ago" and is being debated in the financial world. Such fears mainly revolve around the troubles that Ireland and southern members of the single currency – Portugal, Spain, Italy and Greece, have in selling bonds and stabilising their growing deficits.

The Dutch think-tank is closely following the security impact of the financial crisis, particularly in terms of a power shift from the West to the East, notably due to China's rising financial power, he explained.

Nokia cutting 700 more jobs in Finland


Mobile telephone manufacturer Nokia plans to cut 700 jobs in Finland. Most of the redundancies are to be enacted by the end of the year.
The international economic crisis has reduced sales of telephones so much that the company’s personnel director Juha Äkäräs feels that cost-cutting measures are needed both in Finland and abroad.
“All cuts will be implemented so that we can also invest in the future. We will seek to make wise strategic choices with which to secure our competitiveness in the short and long terms”, Äkräs says.
In January Nokia estimated that sales of mobile telephones this year would decline by ten per cent from last year. It means a reduction in sales worth more than 100 million handsets.

Trimming product development activities in Finland was not unexpected. Nokia Research and Development employs 14,700 people worldwide, 8,850 of whom are working in Finland.
The company aims to cut operation costs by EUR 700 million by the end of next year. To this end, the selection of models has been streamlined, subcontracting has been reduced, corporate travel has been trimmed, and pay increases have been frozen.
Last autumn Nokia took on over 1,000 new employees when it bought the programming company Symbian.
In other countries, Nokia is cutting 1,000 jobs mainly in the marketing and strategy unit. The greatest number of jobs will be lost in the United States and Britain.


( Retirado do jornal HELSINGIN SANOMAT - 18.03.09 )

International Saturday Night Blackout


We are being asked to make a common stand for climate change tomorrow night by taking part in an international ‘lights out’ campaign

The country is being asked to turn off its lights tomorrow night to play its part in Earth Hour 2009, known as ‘Sluk Lyset’ (Turn off the Light) on Danish shores.

More than 80 countries are taking part around the world, encouraging residents to turn off their lights at 8.30pm local time.

More than two thirds of the nation’s public areas have committed to taking part in the initiative.

The event is organised by the World Wide Fund for Nature and Danish CEO, Gitte Seeberg said taking part in the event this year is especially important.

‘We hope to send a strong signal to world leaders taking part in the Global Climate Conference in Copenhagen this December,’ said Seeberg. ‘By switching off the lights, people in Denmark and the rest of the world can make their voices heard and state that they want action on climate change now.’

Iconic national landmarks such as Kronborg Castle, Tivoli and Nyhavn will all turn off their lights for one hour tomorrow evening to join in the effort.


( Retirado do jornal COPENHAGEN POST - 27.03.09 )

CYPRUS FOREIGN MINISTER - GYMNICH

Cypriot Minister of Foreign Affairs Marcos Kyprianou, who participated in the two-day informal session of the EU Ministers of Foreign Affairs (Gymnich), held in the Czech Republic, has expressed Cyprus` support to the European prospects of the Western Balkans.

The main topic of the meeting was developments in the Middle East and the Western Balkans, as well as the development of the EU`s non-military capacity, in the framework of the European Security and Defence Policy.

During the first part of the meeting, the EU Ministers reviewed developments in the broader region of the Middle East and exchanged views on current developments in the peace process, expressing their support to the solution of two states. They also discussed the relations between the EU and Syria, in the light of positive developments in relations between Syria and Lebanon.

During the second part of the meeting, a broad meeting and working lunch were held, with the participation of candidate for EU accession countries and the Western Balkans. The aim of the EU Czech presidency was to hold an open discussion, focusing on the EU`s future approach and strategy regarding enlargement to the Western Balkans. Kyprianou expressed Cyprus` support to the European prospects of the Western Balkans, noting that this would secure stability and prosperity in the region and the EU itself.

( Retirado do jornal CYPRUS NEWS AGENCY - 29.03.09 )

CYPRIOT FINANCE MINISTER

Minister of Finance Charilaos Stavrakis said President of the Republic Demetris Christofias, the government and the ministers were doing much to limit the consequences of the global financial crisis, noting that figures spoke for themselves.

Addressing a trade union meeting, Stavrakis said that "in the last quarter of 2008 we had the highest growth rate in the Eurozone, in 2009, according to official European Commission projections, we are again expected to have the highest growth rate among the old members of the Eurozone."

Stavrakis pointed out that "the higher the growth rate, the less pressure you have towards unemployment."

"It has been estimated that we will have a growth rate of about 2.5% to 3%, taking into consideration the increase of inflation. Unemployment remains stable," he said.

( Retirado do jornal CYPRUS NEWS AGENCY - 29.03.09 )

Sarkozy ameaça renunciar ao principado de Andorra se não se alterar secretismo bancário

O Presidente francês, Nicolas Sarkozy, ameaça renunciar ao título de co-príncipe de Andorra caso este principado – tido como um paraíso fiscal – não mude a legislação bancária “de secretismo” que pratica, foi hoje revelado por fonte governamental de Paris.
O pequeno território de Andorra, co-governado f
ormalmente pelo chefe de Estado francês e o bispo espanhol de Seu d’Urgell, está na “lista negra” dos centros financeiros “não cooperantes” da Organização mundial para a Cooperação e Desenvolvimento Económico.
Sob pressão de uma campanha global para pôr termo às fraudes fiscais, aos paraísos fiscais e ao secretismo bancário, o principado prometeu este mês que levantará o segredo bancário nos casos em que se apliquem os acordos de troca de informações bancárias – e asseverou que terá legislação aprovada nesse sentido até Novembro de 2009.
Sarkozy está entre o grupo de líderes mundiais que têm vindo a criticar os paraísos fiscais e o segredo bancário, sobretudo desde a crise financeira global, e a instar a uma maior e mais dura acção contra estas práticas – uma ideia, de resto, que irá reiterar na cimeira do G20, dentro de uma semana, em Londres.

( Retirado do jornal PÚBLICO - 26.03.09 )

ECB vice-president says governments should clean up banks more quickly

EUROPEAN BUSINESS SUMMIT 2009

By Simon Taylor
26.03.2009 / 14:48 CET
Lucas Papademos calls for measures to help banks get rid of bad assets

Lucas Papademos, a vice-president of the European Central Bank (ECB), said today that governments should speed up measures to help banks get rid of bad assets.
“A lot has been done. What is important is to implement at greater speed what has been decided by governments,” he said. "Huge commitments have been made, but actual implementation has been rather slow.”
The EU and US have agreed approaches to help banks get rid of impaired assets in a bid to get banks lending again.
The ECB had provided “unlimited liquidity” to the financial sector by expanding the balance sheet of the euro system by 70%.
“The economic and financial situation are characterised by synchronised decline in economic activity associated with collapse of world trade and growing signs of an adverse feedback loop between the real economy and the financial sector,” he said.
Papademos also defended the reluctance of EU governments to agree additional economic stimulus measures. He said that eurozone countries had agreed a stimulus worth 2% of gross domestic product in 2009 and 2010 which he called a “substantial fiscal stimulus”.
He pointed out that automatic stabilisers, increased public spending on unemployment benefit as the number of jobless rose in a downturn, were stronger in Europe than in the US. “An appropriate fiscal stimulus need not rely so much on additional discretionary measures as elsewhere,” he said, referring to calls from the US for the EU to provide a greater stimulus.


( Retirado do jornal holandês EUROPEAN VOICE - 26.03.09 )

By Jennifer Rankin
27.03.2009 / 14:37 CET
WWF accuses EU leaders of breaking international agreement; Environment commissioner defends targets.

Stavros Dimas, the European commissioner for the environment, insisted that Europe was still a global leader on climate change after a stinging attack on the EU by the campaign group World Wildlife Fund for Nature (WWF) at the European Business Summit in Brussels today (27 March).

In a testy exchange, Dimas defended EU policy after WWF said that Europe had broken its promise to developing countries and weakened its own carbon reduction targets.

Stephan Singer, director of global energy policy at WWF's European policy office and a veteran climate change campaigner, said the campaign group was “deeply disappointed” in the EU. He accused EU leaders of breaking an international agreement reached in Bali in 2007, when rich countries promised to transfer funds to developing countries to help them adapt to climate change. Last week, EU leaders agreed that they would do their “fair share” for developing countries, but did not name an amount of money. Singer said this showed that the EU had “empty hands” and was “breaking the Bali mandate”.

The campaigner also said that the EU's goal to reduce carbon emissions by 20% by 2020 would generate only 4-5% real cuts in emissions. The EU has already cut emissions by 8% compared to 1990 levels. Much of the remaining 12% needed by 2020 would come from carbon offsets, said Singer, which he dismissed as a way to “cheat the atmosphere”.

In an especially painful attack on EU policymakers, Singer said that the US goal to stabilise emissions at 1990 levels by 2020 “on paper could be a more aggressive target” than the EU's efforts.

Visibly irritated, Dimas accused WWF of “politicking” and said that the group was “undermining our ability to negotiate in Copenhagen” (at the United Nations' climate change conference, to be held in December). He said “everyone accepts that Europe is leading the fight against climate change”, adding that “other countries have not even talked about what they are going to do”. And he said that the EU would be pressing the US to make comparable emission-reduction targets, going further than a commitment to “stabilise” emissions.

Business leaders urged the EU to reach an international agreement in Copenhagen to ensure “a level playing-field” for industry. They worried that failure to get an agreement would damage European industry. Werner Schnappauf, director-general of the Federation of German Industries, said that “energy-intensive industries needed to have a future in the European continent”. Rudi Huber, of aluminium producer Alcoa, said that the EU's environmental laws were a “burden” on companies and that the emissions trading scheme had increased the cost of electricity. He said that without an international agreement that could be monitored and checked, “we needlessly condemn energy-intensive industries in Europe”.

Joan MacNaughton, senior vice-president for power and environmental policies at the power company Alstom, called for public subsidies to be spent on testing carbon capture and storage (CCS) technology. The EU has promised to build 10-12 demonstration projects by 2015, but there is a shortfall in money needed to build them. MacNaughton said that she expected seven CCS demonstration projects would be agreed at the end of the year and another five in 2011.

( Retirado do jornal EUROPEAN VOICE - 29.03.09 )

Open access to EU documents essential to connecting Europe to its citizens - Kelly

Labour MEP Candidate Senator Alan Kelly today backed calls for a speedy introduction of open access to EU documents and legislation. Kelly believes the EU could learn much from Ireland's Freedom of Information Act which was introduced by the Labour Party when it was last in Government.

The Senator was reacting to a report by British Labour MEP Michael Cashman which proposes greater openness and transparency in EU matters.

Senator Kelly believes that any move towards greater transparency at EU level would be good for Ireland particularly in the wake of the Lisbon Vote and in the light of the need to make Europe more understandable to the electorate.

He said: "A lot of people find Europe a bit of a turn-off with the amount of jargon and the complexity of how laws are made. It's important that people know that Labour and its sister parties are working to make the system more open and transparent. At least if NGOs and journalists can get documents and draft laws they can then explain them to the public.

"It is still worrying that 36 per cent of complaints to the EU Ombudsman are in relation to transparency issues. I very much welcome the report by Labour MEP Michael Cashman which has set out how EU documents could be made more accessible and transparent. However I would like to see this whole area dealt with as soon as possible. These proposals would also have the effect of letting Irish people know what position our Government took in negotiations and deals which is not public at the moment. The current system allows the Government blame Europe for things it has often supported, like charging schools for water! There is a need of course to have some restrictions and I think the original Irish Freedom of Information Act as introduced by the Labour Party got this balance right with certain exemptions. That was before Fianna Fail filleted the Act, and reduced its effectiveness by undermining many of its provisions.

"What we need now is a Europe-wide Freedom of Information regime. We also need better regulation of lobbyists who are very influential in Brussels. It is Labour and its allies that are working for this transparency at European level and I hope to be part of such a movement if elected to the European Parliament in June.

( Retirado do jornal Waterford Today - 29.03.09 )

Tackling EU issues? It's simply child's play


Friday March 27 2009

MULTI-TASKING took on a whole new meaning in the European Parliament yesterday as one MEP entered the chamber to vote while accompanied by her little girl.

Perhaps the childminder had called in sick, or perhaps Danish representative Hanne Dahl simply couldn't bear to be parted from her gorgeous daughter for even a moment.

Either way, while the Strasbourg politicians knuckled down to the weighty business of the day, Ms Dahl junior simply kicked up her feet and stretched back on her pink blanket, unperturbed, while mum got on with the job in hand .

Yesterday the parliament recommended the European Union stop aid payments to Spain unless it moves to change aggressive and often corrupt housing construction projects.

The EU lawmakers said that Spain should "suspend and review" all urbanisation plans that do not take into account environmental, social effects or legitimate ownership rights.


( Retirado do jornal Irish Independent - 27.03.09 )

Journal accuses Pope of 'distorting science'


By Nick Squires in Rome. Saturday March 28 2009

The Pope has been accused by the leading medical magazine 'The Lancet' yesterday of "distorting" scientific evidence following his claim that distributing condoms in Africa was exacerbating the HIV/Aids crisis.

The British publication, one of the world's most respected medical journals, demanded a retraction of his comments, which it claimed manipulated science in order to promote the teachings of the Roman Catholic Church.

"Whether the Pope's error was due to ignorance or a deliberate attempt to manipulate science to support Catholic ideology is unclear," the journal said in an editorial.

Disservice

Anything less than a retraction of the remarks "would be an immense disservice to the public and health advocates, including many thousands of Catholics, who work tirelessly to try and prevent the spread of HIV/Aids worldwide," the journal says.

Pope Benedict was criticised after saying during his African tour that condoms not only did not help stem the spread of HIV, they in fact "aggravated" or increased the problem by encouraging promiscuity.

The Vatican faces the prospect of being bombarded with condoms in a protest organised through Facebook, the social networking website. Up to 60,000 people have pledged to send prophylactics to the Pontiff in the next few days.

Campaigners described it as "peaceful provocation" by young people.

Senior Catholics rallied to the Pope Benedict's defence this week, with the head of the Italian Bishops' Conference, Cardinal Angelo Bagnasco, saying the depth of opprobrium directed towards the pontiff had "been prolonged beyond good reason". (© Daily Telegraph, London)


( Retirado do jornal Irish Independent - 28.03.09 )

sábado, 28 de março de 2009

Judgment days; Germany's Constitutional Court.

The little-known judges on Germany's Constitutional Court exert real influence, not only at home but also abroad

WHEN the principality of Baden merged with two others to form Baden-Wurttemberg in 1951, its former capital, Karlsruhe, was given a consolation prize: the Constitutional Court of the new federal republic. Modestly housed in squat blocks, the court is far from the capital, Berlin. Yet the federal government (and the states) are forever grappling with its edicts. Any toughening of police powers to deal with terrorism seems to provoke objections in Karlsruhe. So do lesser matters, such as whether commuters can deduct transport costs from taxes or whether bars can let smokers light up. "The Constitutional Court is often called the third chamber of the legislature," notes Dieter Grimm, a former judge. "There is something in it."

Now the court is to rule on the European Union's Lisbon treaty, which critics say could put the judges out of business. In February it heard arguments that the treaty would give the EU the attributes of a state without making it democratically accountable, and would sap the court's powers to protect the fundamental rights of Germans. Yet few court-watchers expect the judges to throw Lisbon out. Germany's EU membership is enshrined in the constitution; and the court has long-standing partnerships with the European Court of Justice (ECJ) in Luxembourg and the European Court of Human Rights in Strasbourg.

Lisbon would tilt the balance of power a bit toward Luxembourg, but not as far as its opponents fear. Judges on the Constitutional Court will not discuss the case, but its vice-president, Andreas Vosskuhle, notes that Germany has often gained influence through the EU. He is right. Moreover, even as the Constitutional Court has been shaping post-war Germany, German jurisprudence has spread to affect Europe and much of the world.

The Constitutional Court is in some people's eyes Germany's most powerful institution. Almost 80% of Germans trust it; less than half have confidence in the federal government and the Bundestag, the lower house. Although a political player, the court is seen to be above politics. Parties nominate judges, but they are usually approved unanimously by the legislature. Unlike America's Supreme Court justices, Germany's seek consensus and seldom write dissenting opinions. Any citizen may bring a constitutional case, an antidote to Nazi notions of justice, and some 6,000 a year do so.

The court is revered partly because Germans' affinity for the rule of law is greater than for democracy, some scholars say. Germany's "constitutional patriotism" resembles the American idea of a nation founded on rights and values. But Germans have a different notion of these. American rights--to bear arms and speak freely, for example--are "small and hard", argues Georg Nolte, a scholar at Humboldt University in Berlin. Germany's, by contrast, are "fat and flexible".

The German constitution, or basic law, which will mark its 60th birthday on May 23rd, is a never-again document. Its first article declares that "human dignity shall be inviolable". It endows Germany with a weak president and strong state governments. Its freedoms do not extend to those who would destroy freedom, which may explain how Holocaust-denial can be a crime despite freedom of speech.

The court has elaborated rights that the constitution's authors never envisaged. The Luth decision of 1958 held that constitutional rights affect citizens' relations not just with the state but also with each other, a judgment so far-reaching as to be termed a "juridical coup d'etat". The court developed a notion of the "duty to protect" basic rights from threats stemming from private action or social forces. In 1983 the court created a right for individuals to control their personal information. Last year, when considering plans to snoop on the computers of suspected terrorists, it found a right to the "integrity of information-technology systems". "German society is over-constitutionalised," observes Donald Kommers, of the University of Notre Dame, in Indiana.

Hans-Jurgen Papier, the court's president, thinks its reputation for activism is exaggerated. Since 1951 it has judged laws, or parts of laws, unconstitutional in just 611 cases, a small fraction of the number it has considered. But it happens enough to keep the government busy. Recently, for example, it told the government to reinstate a tax deduction for commuters who live near their jobs, one of a number of tax rulings that is causing the finance minister heartburn. The court did not say that commuting costs must be tax-deductible, only that treating people who live close to work differently from those who live far away was unconstitutional.

Friction has increased over the balance between freedom and security. On rights it deems absolute, the court is implacable. In 2006 it said the air force could not shoot down a plane commandeered by terrorists even to prevent a greater disaster. The court often tells lawmakers to do a better job of balancing means and ends. A decision striking down a state law allowing investigators to monitor suspects' computers ruled that such powers are permitted only with a judge's warrant and evidence of a grave crime. That was meant to be a warning to the federal government, which was preparing its own law. Wolfgang Schauble, the interior minister, has occasionally struck back; last year he grumbled that some of the judges' musings were "not democratically legitimate". Mr Papier says that such tensions between the court and the executive are not new.

In a world densely populated with rights, every legal act is likely to infringe at least one other. The court uses "proportionality" to decide what can be allowed. The judges subject any infringement to a whole gamut of tests. The answers reveal, for example, where a journalist's right to free speech ends and a citizen's right to privacy begins. Possessing a little cannabis is fine, says proportionality, because law enforcement must be balanced against the right to "free development of personality".

Invented by Prussia in the 18th century to limit the Kaiser's power, proportionality has influenced constitutions from Canada's to South Africa's. Mr Nolte calls it "the prime example of the migration of constitutional ideas". Even America's Supreme Court, which employs its own form of rights-balancing, is taking an interest. Justice Stephen Breyer referred to proportionality in a recent opinion on gun control, provoking scholarly excitement.

In the meshing of the German constitution with European law, proportionality provides a lubricant. Each side is jealous of its prerogatives but eager to avoid confrontation. Since 1974 Karlsruhe has made the transfer of powers to Europe conditional on the protection of Germans' basic rights; if these are infringed, the court insists, it can reclaim them. The ECJ, meanwhile, acts as the "motor of European integration" (and on human-rights issues Strasbourg has the last word). Think of an Alexander Calder mobile rather than a pyramid, suggests Renate Jaeger, the German judge on the human-rights court. Occasionally there are conflicts. Strasbourg told the German court that its pro-paparazzi ruling in a case brought by Princess Caroline of Monaco struck the wrong balance between press freedom and privacy. In February the ECJ upheld an EU directive on data collection, using defence of the single market as justification for what looked to Germans like a public-security matter. That raised hackles in Germany.

Lisbon, if ratified, will change things, by giving the European Commission and the ECJ a bigger role in justice and security affairs. Rainer Nickel of the University of Frankfurt foresees a "quantum leap" in the erosion of the Constitutional Court's powers. But judges are more sanguine. European courts collaborate closely and there is little reason for this to change, whether Lisbon is ratified or not. "It's a shared learning process," Mr Vosskuhle argues.

He will become the court's youngest-ever president when Mr Papier retires next year. Karlsruhe, he thinks, will have its hands full coping with the implications of new technologies such as genetic engineering, with "sustainability issues" like demography and climate change and with growing threats to "equal living conditions" across Germany, another constitutional issue. It seems certain that there will be life after Lisbon.

The Economist (US) 390.8624 (March 28, 2009): p34EU. (1338 words) 

Rendering unto Caesar; The Italian right.(The new People of Freedom party).

His newly merged right-wing party entrenches Silvio Berlusconi in power

DELEGATES to the inaugural congress of the People of Freedom (PdL) party on March 27th can buy a new political souvenir: a Russian doll in the image of Silvio Berlusconi. Inside are progressively smaller dolls of the other prime ministers he has left behind in the past 15 years. The doll carries a message as troubling to critics as it is heartening to admirers: that Mr Berlusconi is no longer one of several political rivals, but Italy's uncontested master.

Since he swept to power for the third time last year, opposition has melted like Alpine snow at winter's end. In less than a year, the unions have split, the main opposition party has changed its leader and--thanks to the impact of a global economic crisis on a society in which politics and the economy are inextricably entwined--Mr Berlusconi has gained immense powers of patronage over Italy's apprehensive bankers and industrialists.

The transformation of the PdL from an electoral alliance into a real party is but the latest milestone in his triumphant advance. At its own congress on March 22nd the National Alliance (AN), which grew out of Italy's neo-fascist movement, formally wound itself up and merged with Mr Berlusconi's old party, Forza Italia. Mr Berlusconi has long said his dream was to create a single party of the right. That dream still eludes him, as the anti-immigrant Northern League remains determinedly independent. But the new PdL takes him a big step closer. The right now has a dominant movement comparable to the left's Democratic Party, pushing Italy nearer a two-party system.

Some of Mr Berlusconi's associates fret that heading a more heterogeneous party could turn the prime minister from a leader into an arbiter. That is what happened to the Democratic Party's first leader, Walter Veltroni, who acquired a politically lethal reputation for wishy-washy indecisiveness. But the bigger fear is that the freedom in the new party's title might be that of Mr Berlusconi to do whatever he likes. Francesco Storace, a former Berlusconi minister who left the an to found his own, unambiguously far-right party, said he looked forward to seeing what happened when "it becomes clear only Berlusconi rules". The prime minister is not used to being questioned by his followers. He created Forza Italia as a vehicle for his own ambition. At the start, most of its top people were his employees. AN, by contrast, is a party with a strong tradition of internal debate and dissent.

For many years, Mr Berlusconi's heir-apparent has been AN's leader, Gianfranco Fini. But after the 2008 election he was made speaker of the Chamber of Deputies. Since then, he has become a fierce and, for the prime minister, exasperating champion of the legislature, while appearing to slip rapidly leftward. He has decried Mr Berlusconi's use of votes of confidence to rush through bills without full debate and says the right is in danger of succumbing to "Caesarism". He has criticised plans for government-authorised vigilante patrols, and deplored as "immoral and unjust" a measure allowing doctors to report illegal immigrants to the police.

There has even been speculation that Mr Fini might position himself as a standard-bearer of libertarianism within the PdL. Yet at the AN congress he unequivocally endorsed Mr Berlusconi's leadership. For the moment, the ever-smiling, ever-tanned media tycoon remains a Caesar with no Brutus in sight.

The Economist (US) 390.8624 (March 28, 2009): p35EU. (568 words)