Shada Islam quoted in ‘Greek Deal Makes Europe More German. But at What Cost?’ (Bloomberg 13/07/2015)

Europe’s deal with Greece was variously denounced as blackmail, an attack on national sovereignty and an end to the European dream. The accord’s detractors could at least agree on one thing: the chief culprit was Angela Merkel.Having held sway in the unequal struggle with Alexis Tsipras over the terms of a third bailout, Merkel has ensured that the 19-nation euro area remains a club whose members abide by the rules or are shown the door. The question is what toll that stance has taken on her reputation and the extent of the damage to the international standing of Germany and Europe.Shada Islam, director of policy at the Friends of Europe advisory group in Brussels, said that months of EU acrimony since Tsipras’s election in January as Greek premier at the head of an anti-austerity coalition has tarnished the bloc in the eyes of both its own citizens and globally.“They reached a deal on Greece but at a huge cost,” Islam said by phone. “Merkel tried to play the middle ground but Schaeuble will be seen by some critics as the true villain of this piece.”Both Merkel and Schaeuble have become hate figures in Greece, where comparisons with the World War II occupation by Nazi forces have become commonplace. In Germany, members of Merkel’s coalition have competed for outrage against a backdrop of the constant drumbeat of calls by the best-selling Bild newspaper for Greece to be ejected from the euro.For the full article, visit:http://www.bloomberg.com/news/articles/2015-07-13/greek-deal-makes-europe-more-german-but-at-what-cost- 

View from Abroad: Europe and the new world order (Originally published 11/07/2015 at dawn.com)

Entangled in the Greek debt crisis, few European policymakers had the time or interest this week to pay attention to the summit talks in the Russian city of Ufa between the leaders of Brazil, Russia, India, China and South Africa (BRICS).True, Europe has its hands full with Greece and the looming possibility of a Greek exit from the Eurozone. But the world doesn’t stop for Europe. And pretending that the BRICS and their self-confident leaders don’t matter — or matter little — is not an option.Discussions about the rapidly-transforming world, the role and influence of the BRICS and Europe’s relations with the emerging powers appear to be off the European Union agenda. For now, the focus is rightly on the existential threat posed by Grexit, the acrimony the Greek crisis has triggered across the EU and the worsening relationship among Eurozone leaders.Solving the Greek problem should of course take priority. But Europeans know that more is at stake. Italy’s Prime Minister Matteo Renzi has so far been most vocal in signalling his fears that the fury unleashed by the difficulties in Greece is damaging the very existence of the EU. But this thought is also in many other minds. If Europe can’t get its house in order, it really does run the risk of becoming irrelevant on an increasingly crowded global stage.For the moment, most Europeans seem to fall into two categories: those who fear the rapidly-changing world order and the increasingly long list of nations clamouring for a stronger role on the world stage and those who hope that if they look the other way, firm up their bonds with the United States, the world won’t change too much and the BRICS will gradually fade away.There are some, wiser, people in the middle: they may not be enthusiastic about the changes being made to the global status quo; but they also know that times are changing fast and that Europe needs to adapt, adjust and accommodate.It was on the advice of such people that despite strong pressure from the US not to do so, several EU countries decided to join the Asian Infrastructure Investment Bank (AIIB) set up by China.While many Europeans voice fear that China is “buying up” European assets, cooler heads are urging the EU to join forces with China’s ambitious ‘One Belt, One Road’ transport networks to boost domestic growth and jobs.Similar arguments for and against cooperating with emerging nations are likely to come to the fore as Europeans discuss membership of the New Development Bank (NDB) being set up by the BRICS to fund projects in member countries.Headquartered in Shanghai, the bank is expected to be operational by end of 2015. Once fully operational, it will become an alternative financing source for the BRICS nations and other emerging markets.Like the head of the AIIB, the first chief of the BRICS bank, India’s K. V. Kamath has been quoted as saying that the NDB sees other multilateral lending institutions such as the International Monetary Fund (IMF), World Bank and Asian Development Bank (ADB) as partners rather than rivals.And yet many continue to be suspicious. The US and Japan have not yet joined the AIIB and many EU policymakers continue to voice fears that the new banks will fall short of high Western standards of transparency and accountability.The BRICS have made clear that they don’t really care. The Old Guard is welcome to come on board, but the world is moving on and they won’t stop for the laggards.Russia, given its tense relations with the West following the crisis in Ukraine and the annexation of Crimea, has taken the toughest line in its dealing with Europe and America. As Foreign Minister Sergei Lavrov underlined in Ufa, emerging nations represent a “new polycentric system of international relations” and demonstrate new global centres of power.As he shook hands with his Chinese, Indian, South African and Brazilian counterparts, a beaming Russian President Vladimir Putin made clear that he was far from the sad and isolated man that the West wants him to be.And it’s not just about the BRICS. An array of newly-empowered nations and groupings are challenging Europe and America’s dominance of the post World War II order. Mexico, Indonesia, Korea, Turkey and Australia are part of MIKTA which claims to act as a bridge between old and new powers.New Zealand says it is the champion of “small nations” without whose support nothing can be achieved on the global stage. The Group of 20 remains relevant as a forum which brings together industrialised and emerging countries.And then there is also the Shanghai Cooperation Organisation (SCO) which EU and Nato policymakers also tend to shrug off as an impotent “paper tiger”.They shouldn’t. As India and Pakistan set out on the road to membership of the SCO, it is clear that while the security organisation does not see itself as a rival to Nato, it does intend to make its voice heard on global security challenges.Underlining just how significantly the world has changed, the five BRICS countries and the six SCO members which include China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan — joined by India, Pakistan, Afghanistan, Iran and Mongolia which have observer status — held a joint summit in Ufa.The Greek crisis was on the BRICS agenda of course. While Europe may not like the new world out there, emerging nations know that in an interconnected and interdependent world, what happens in Europe affects them. And that a failed Europe is in nobody’s interest.

View from Abroad: Can’t live with EU — can’t live without EU (Originally published 30/05/2015 at dawn.com)

The European Union is gearing up for another bout of prolonged, agonising and internal soul-searching.Reflection on Europe’s future, its identity and role in a rapidly changing world is certainly necessary. But the European landscape has become increasingly complicated, making it imperative that even as it ponders over its future, the EU deals with the many crises on its borders — and beyond.Also, at a time when unity is a compelling necessity, many of the 28 EU countries often appear to be headed in different and often contradictory directions.Take a look: Cameron calls for ‘flexible and imaginative’ EU reformsThere is no denying that triggered by demands by Britain’s newly re-elected Prime Minister David Cameron for an across the board overhaul of key EU priorities, the bloc looks set to enter another period of deep introspection on its future direction, main concerns and general raison d’etre.Britain will hold a referendum — probably next year — on whether it should remain in the EU. But London is not alone in envisaging a withdrawal from the Union.There is also dangerous talk of a Greek exit from the Eurozone as Athens struggles to meet its massive financial obligations vis-à-vis its international lenders.Meanwhile, Poland has elected a conservative new president, Andrzej Duda, while Spain seems to have voted in the opposite — leftist — direction in recent regional elections.In addition, the European economy remains mired in stagnation. Jobs remain scarce across the bloc while the debate on immigration and reception of refugees becomes ever more toxic and complex.Ironically, even as Europeans wring their hands in despair over their many interrelated problems, countries outside the bloc can’t wait to get in.Ukraine, Moldova and Georgia have joined the long list of countries which want a so-called “road map” leading up to membership of the EU.They are not going to get any such thing. At a meeting in Riga last week, the EU made clear that while it wanted closer relations with the three countries — and despite the growing influence of Russia in the region — EU membership was not on the cards.Also in Europe, the leaders of six Western Balkan countries have told the EU that they are becoming impatient with their long wait to join the bloc and needed EU funds to keep up reforms.The prime ministers of Serbia, Montenegro, Macedonia, Bosnia, Kosovo and Albania, all hoping to join the bloc, have said their cooperation should be rewarded with projects like new road and rail links.Slovenia and Croatia are the only countries in the region to have joined the EU. The others have lagged behind because of conflicts with neighbours after the break-up of Yugoslavia and a failure to achieve reform.And then there is Turkey which is still waiting on the sidelines, anxious to become an EU member but unlikely to become one any time in the future.For the moment, all eyes are on Britain and Prime Minister Cameron’s calls for a renegotiation of the EU’s Treaty of Lisbon, the latest version of its constitution.Many EU countries are sympathetic to Britain’s demands for an overhaul of the EU — but do not want another long, difficult and complicated treaty negotiation.Details of what Britain really wants are still deliberately sketchy. But, some salient demands stand out.First, Cameron wants Britain to opt out from the EU ambition to forge an “ever closer union” of the peoples of Europe.He wants to restrict access to the British labour market of EU migrants.And he would like to free business from red tape and “excessive interference” from Brussels and providing access to new markets through “turbo charging” free trade deals with America and AsiaFinally, he says Britain would resist any move towards a European army and has ruled out Britain joining the euro.Controversially, Cameron has said that while British, Irish and Commonwealth citizens over 18 who are resident in the UK will be eligible to vote, nationals from other EU countries residing in the UK will not.Very few EU leaders would like Britain to leave the bloc. Britain’s membership of the EU is good for both Britain and other European states.But many in Brussels and other EU capitals are becoming increasingly frustrated with the tone and content of the toxic British debate on Europe.As a result, many are warning that Britain may have to leave in order to ensure the survival of the EU.The prospect of a Greek exit from the Eurozone is equally problematic, with many worried of the repercussions of such a move on the credibility of the single currency.Still, while things may look very complicated for those inside the EU, membership of the club remains a goal for many of the EU’s neighbours. As Turkey has learned, however, getting a seat at the EU table is not easy. It requires hard work, time and effort — and a great deal of patience.

View from abroad: When it comes to Hungary, Europe should practise what it preaches (Originally published 09/05/2015 at dawn.com)

Believe it or not, there is more to the European Union than the recent elections in Britain and London’s erratic and volatile relationship with Brussels.The EU is also not just about the dire financial and economic straits in which Greece finds itself — and unrelenting speculation about whether or not Athens is ready to exit the troubled Eurozone.In addition to fears of a Brexit and Grexit, Berlin is mired in a new spying scandal which threatens to engulf German Chancellor Angela Merkel.And, of course, the EU is under attack over its less-than-impressive response to the humanitarian tragedy unfolding on its southern shores as hundreds of refugees and economic migrants drown even as they seek to enter “Fortress Europe”.The EU’s southern and eastern neighbourhoods are in turmoil. Relations with Russia remain tense and EU governments have no influence over events in the Middle East.These and other troubles facing the 28-nation bloc capture the media spotlight and lead to endless hand-wringing over the EU’s future.All of these troubles deserve attention. But, interestingly, neither the media nor EU policymakers appear to be paying serious attention to a country — Hungary — whose leaders appears intent on defying many of the key values — human rights, democracy and tolerance — that the EU holds so dear.It is an important paradox. The EU wields enormous power over countries which are seeking membership of the 28-nation club. But once a so-called “candidate country” joins the Union, Brussels loses much of its influence over the future direction of a “member state”.This is exactly what has happened with Hungary and some other “new” EU countries which joined the Union earlier this decade.Before it entered the EU club, Hungary had to meet very strict criteria on issues like democracy and adherence to the principles of a market economy. Human rights standards had to be adhered to. Every move made by the government was scrutinised and judged.No longer. Hungary is now accused of a host of sins — and while Brussels often chides and scolds, it has little — actually it has NO — power to change the course of events in the country.There is no doubt: Hungarian Prime Minister Viktor Orban is the bad boy of Europe. He cultivates close links with President Vladimir Putin at a time when the rest of the EU is seeking to distance itself from the mercurial Russian leader.Putin’s visit to Hungary earlier this year was widely seen as a defiance of the EU’s decision to keep cool diplomatic relations with Russia.More controversially, Orban has sent shock waves across the EU by insisting that the bloc should protect its borders against immigration by using military force because it doesn’t need new migrants.While other EU leaders in Brussels struggled to come up with a coherent plan to stem the tide of immigrants seeking shelter in Europe, Orban urged tougher measures.“Europe’s borders must be protected. We cannot be like a piece of cheese with holes in it so that they [immigrants] can be crossing in and out. Serious police and military steps must be taken and also steps that they remain at home,” he said.Going even further, Orban said the Hungarian government wanted to be able to detain all those who cross borders illegally, something that is only allowed in exceptional cases under EU law. It also wanted to have migrants work to cover the costs of their accommodation or detention in Hungary.In a questionnaire to be sent out to eight million citizens over 18 years of age, Hungarians will be asked to answer 12 questions on whether “the mismanagement of the immigration question by Brussels may have something to do with increased terrorism”.“The questions are leading and manipulative,” according to Dutch MEP Sophie In’ t Veld who said the whole questionnaire was “horrible”. Her colleague Cecilia Wikstrom, a Swedish liberal MEP, said it showed how Orban is distancing Hungary from Europe and “transforming Hungary into a mini-Russia”.There are suggestions that Orban, whose Fidesz party has seen a plunge in polls recently, is seeking to embrace issues championed by the far-right Jobbik party, the largest opposition force in Hungary.Hungary’s EU partners are equally vexed at the prime minister’s statements in favour of re-introducing the death penalty.Orban “should immediately make clear that this is not his intention. Would it be his intention, it would be a fight,” EU Commission President Jean-Claude Juncker has warned.Budapest has since then retracted Orban’s statements, saying it has no plans to restore the death penalty.Worryingly for Brussels, Orban has also staged an autocratic crackdown on the nation’s press, which the independent watchdog Freedom House now ranks as only “partly free”.While the EU has so far managed to keep Hungary in check, the country is a worrying example of how things can go very wrong in the heart of Europe and the European Union.EU officials and members of the European Parliament rant and rave about Hungary and Orban but the stark truth is that while the EU wields a huge stick before a country joins the club — demanding changes in government rules and regulations and overall conduct — its influence dims once a country becomes a member.So, while the talk in Brussels is understandably about Britain, Greece and Germany, it is time that EU leaders exerted some real pressure to bring Hungary in line with Europe’s standards of conduct.It’s about consistency, coherence in the EU and above all making sure that Europe practices what it preaches to the rest of the world.