Sorry: this has nothing to do with doing-over the financial crisis of late 2008-2009 to get another chance to deal with it right, even only as it hit Belgium. Rather, I noticed from a piece by Bert Broens in that nation’s business newspaper De Tijd that two of the biggest domestic banks, KBC and Dexia, will have undergo so-called “stress tests” all over again right after they thought they were done with all that.

What these “stress tests” are all about is an auditing exercise whereby banks’ balance-sheets are subjected to a standard scenario positing a business downturn, meaning theoretically that more people would not be able to pay back their loans, there would be lesser demand for new loans, and the like, and so you see how the bank would do in such a situation – first of all whether it would even stay solvent and so survive (at least without receiving some sort of state aid). And, as stated, both these Belgian banks already did the exercise and came through it with OK results. But the whistles have sounded and the competitors are being directed back to their starting-blocks to do it all again, and for a good reason: those previous stress tests did not include checking for any situation in which government bonds held by the banks might not be fully repaid. That’s rather an important omission: we’re talking in particular Southern European (or PIGS, if you like) government bonds here, and KBC Bank alone has €60 billion worth of them in its portfolio.

How then could anyone have considered the previous stress tests, which did not account for those public obligations, anything but a waste of time? Well, many cynics (or call them analysts) have felt that the real purpose of such tests was in the first place as a propaganda exercise meant to return a comforting “All OK!” for each such bank tested to calm investors’ and markets’ fears. This whole “stress test” idea was taken over in the first place from the American financial authorities, who performed them on the big American banks in spring-summer of last year, and ongoing coverage particularly from the Naked Capitalism financial weblog not only blew the whistle on that American exercise but also has found serious flaws in the European stress tests happening now. In fact a major complaint (also put forward in a related financial blog here) about the validity of the European tests was their alleged failure to take into account such sovereign risk.

Broens’ piece shows that that at least is not happening in Belgium, although he doesn’t say why, like who decided to make these exercises a bit more bona fide and call back KBC and Dexia to do them “right.” His language is in the passive tense – “in the meantime it has been decided to expand the test” – although one first guess would have to be the Belgian financial authorities.

UPDATE: A new entry on Naked Capitalism tacitly concedes that these European “stress tests” will in fact include banks’ exposure to sovereign debt in their calculations. It then goes on to sketch the great worry resulting from that: What happens when these more-honest tests reveal that too many banks in fact stand in need of more capital, possibly from governments which in many cases are no longer in a position to provide the same?

Starbucks: there have already been whole books written about this international marketing phenomenon, and that should be no surprise. Perhaps only George W. Bush himself better illustrates how a product, however average, can successfully be sold to the masses if you just have the ad money to spend and get the promotional campaign right. For me, Starbucks’ success in making an outright fetish out of coffee – so that people are willing to line up at a counter to spend on the order of $5.00 for a single cup – is emblematic of the American go-go years of not so long ago, before the big Crash, as innumerable people stuck a Grande Caffè Mocha into the drinks-holder of their SUV as they set off to visit the properties they had bought no-money-down to “flip” for a profit as soon as possible.

The company’s progress within Europe is of particular amusement, especially Central Europe which, after all, originally introduced the café/coffeehouse and coffee culture in general to the world a little less than four centuries ago. It’s a bit as if GM were to establish a high-performance automotive division in Northern Italy, with the explicit mission of showing Ferrari, Lancia, etc. how the game should be played. Belgium, at least, has heretofore largely avoided this scourge, but apparently not for long, as we see from the recent article by Caroline Boeur in La Dernière Heure with the breathless title Soon a fifth Starbucks? (more…)

On second thought, forget the Roman Catholic Church: it’s the music industry that is the institution really going down the drain these days! (Not only that, you just know that the latter has many more instances of depraved sexual abuse hidden away in its dark closets – but do you ever hear of journalists or the authorities getting upset about those?)

Not to worry, though: Belgium is on the case! Minister for Culture Fadila Laanan – that’s right, she’s of Moroccan extraction – has just unveiled a twenty-point plan for coming to the rescue, as the mysterious journalist “S.L.” discusses in La Libre Belgique. (You can get the 13-page PDF of Minister Laanan’s plan – in French, bien sûr – here. Yes, in the meantime the Belgium government has fallen, but it takes so long to put a new one together that you can be sure that Ms. Laanan will remain at least in a caretaker capacity for some time.) (more…)

Department of Confirmation of Things You Already Realized: The Belgian newspaper De Morgen has an article out today about how Western Europe is at the front of the Global Warming pack, with average temperatures here having risen since the 1950s at least twice as much as those in the rest of the world. (The article’s headling speaks of Belgium – Belgium Warming Up Twice As Fast as the Rest of the World – because De Morgen writes for its Belgian audience, but it quickly qualifies the area it is talking about as “the area from France to Poland.” You already knew that Belgium was a unique sort of hard-luck state – see for example the Dutch-French speaker dispute threatening to tear it apart – but even still, you didn’t really think that it could experience such temperature patterns all by itself, like it has some permanent black cloud of misfortune hovering over its territory?) (more…)

As I noted in this previous post, July 21 – yesterday – is each year the Belgian National Holiday: think along the lines, for example, of the 4th of July in the US. Except that yesterday in Belgium the occasion was more like America on 4 July 1860: then, Abraham Lincoln had just been nominated to be the Republican Party candidate for the upcoming presidential election in November, and it was evident that, while he had a good chance of sweeping the more-populated Northern states with his party platform forbidding any more slavery in US territories, nobody in the South would vote for him. Indeed, if he turned out to win the presidency nonetheless (which of course he did), there was very likely to be serious trouble, yet it was hard to think of any alternative scenario by which the presidency could be won by any of the other candidates, each of which were politicians backed by yet-narrower sections of the country. Likewise, there was precious little of any “national” nature to be celebrated in Belgium on its “National Holiday” yesterday, even as one can assume that any similar implicit prospect of violence does not apply in this modern case.

When last we left portly, avuncular old King Albert II, he had received Prime Minister Yves Leterme’s resignation but had yet to decide whether to accept it. (more…)

Don’t look now – but Belgium is once again in a governmental crisis. Prime Minister Yves Leterme yesterday evening (Monday, 14 July) submitted his resignation to King Albert II, after having served in that capacity for thirteen months. You’ll recall that Leterme – leader of the Flemish political party Christen-Democratisch en Vlaams (CD&V) – had been the compromise candidate for prime minister in the first place, voted in by the kaleidoscope of Dutch-, French-, and German-speaking parties of the Belgian political landscape pretty much in desperation after nine months of haggling after the latest national elections of June, 2007. July 15 (i.e. today) was the deadline he had set to be able to present a new plan for re-structuring Belgium’s governmental structure. It seemed that the deadline was coming up fast and little to no progress on forming such a plan had been made. So Leterme resigned. The Economist weblog “Certain ideas of Europe” is keeping on top of developments with an summary entry Time to dissolve Belgium?. (more…)

The Czech Republic’s leading business newspaper, Hospodárské noviny (yes, of all sources) has tipped the successor to Romano Prodi as President of the European Commission when the present Commission’s term of office expires at the end of this year: Guy Verhofstadt, currently Belgian prime minister. Described in the article’s lead as a “Euro-optimist and centralist,” Verhofstadt is said to have strong support for the job from both French President Jacques Chirac and German Chancellor Gerhard Schröder. (It helps that Verhofstadt, from the Dutch-speaking half of Belgium, also speaks fluent French. I’m not aware whether he speaks German.) In days gone by those two endorsements would have been all that it took to get the job, even in the teeth of what the article calls British “reluctance” towards him and even American distrust. But the recent addition since then of ten new member-states, who have shown themselves unwilling simply to blindly fall in line with the dictates of the Franco-German EU “motor,” may turn out to change this dynamic – although the article also reports that the new member-states have all uniformly had good experiences with Verhofstadt. (more…)

Time to consider the portrait of Belgium presented in the Danish newspaper Politiken’s “Europa XL” series of cultural treatments of EU member nations, as submitted by respected literary figures of each such nation. The writer in charge for Belgium is the Belgian fiction-writer and translator Paul Claes – or rather, the Flemish fiction-writer and translator, i.e. one who writes in and translates into Dutch and so not into the French language spoken by around half of his countrymen, mostly in the south of the country. And I’m afraid that we start off on the wrong foot in our quest for impartiality and an even-handed cultural treatment, since Claes’ last-name is truly an ultra-Dutch one (in the sense of the language’s history). That “ae” vowel combination lying at that name’s heart, which merely signals the “long a” sound, is a relic from old Dutch spelling, used much more these days for Belgian names (both of people and places) than Dutch ones.

OK, off we go, but clearly we’ll inevitably have a different perspective than we have had for most of these portraits, namely what you could call the “Flemish-vs-Walloon scorecarding” view: (more…)

Yes, I haven’t been around for a while. The reason is that I’ve been busy setting up my other weblog, SegwayEuroTour, a process which I confess is as yet still incomplete. Still, the writings over there is rather different from what you’re accustomed to finding here on EuroSavant, so I can make at least a theoretical case that I should be able to pursue both simultaneously. I’ve just had a brand new Segway HT (a p-Series, for those of you in-the-know) shipped over here to me in the Netherlands, you see, where such things are as scarce as hen’s teeth. I’ve already had great fun taking her (her name’s “Marleen,” by the way) out in public, and so far that has just been to take around to show to acquaintances! There are surely many more adventures to come, and they will be chronicled over at that other site.

In the meantime – just to be further selfish about things, but I guess this website here is also basically about me – I have some paid work translating from Danish into English, so I have this renewed interest in the Danish press. It’s lucky that I do, for an Internet-journey over there alerts me to a very interesting series currently going on in the webpages of the main Danish daily Politiken, called Europa XL. (What does that “XL” mean? I can’t quite tell: I suppose it could be Roman numerals for “40″ – but that doesn’t seem to make any sense – or it could mean “extra large.”)

“We know the EU as a big bureaucratic system. Nations without any face, without body,” begins that introductory article. The point of this series is to do something about that for Politiken’s readers, to provide precisely that face to each of the EU’s fifteen current members (in articles appearing up to the big May 1, 2004, expansion date) and then to the ten new members (in articles after that). “How do these different lands see themselves? What are their special values? And how can each enrich a common European culture?” – Politiken intends to approach one “characteristic voice” from each country – generally a prominent cultural figure of that land – to provide the following concerning their respective country (with their commentary, of course): a painting, a photograph, a person, an object, a text, a piece of music or song, a poem, a food-dish, a place, and an event. (more…)

Belgian Lt. General Francis Briquemont: Ever heard of him? Quite probably not, for although he did emerge onto the international stage in the early 1990s, his appearance there was brief – in fact, briefer than anyone could have expected. He was placed in command in July, 1993, of 12,000 multinational troops constituting UN forces in the former Yugoslavia – in the middle of the period of inter-ethnic conflict in Bosnia-Herzegovina – for a tour of duty of one year. Yet he resigned this command after only six months, in early January of 1994, claiming that his job was impossible in view of the “fantastic” gap between UN rhetoric about Bosnia and what it was actually prepared to commit manpower and resources to accomplish.

So General Briquemont speaks his mind, and backs it up with action. Now retired, he is back again, “thinking outside the box” – to put things mildly – in a pair of thoughtful articles in Belgium’s La Libre Belgique that step back and examine the implications – and the fall-out – from the Anglo-American drive last spring to go to war with Saddam Hussein’s Iraq, and the divisions exposed by the EU’s (failed) attempt to formulate a unified response. (more…)

Belgium finally has that new government, after a month of negotiations between the various political parties following the general election of mid-May. And one of its first acts has been to put forward legislation which would replace the “law of universal competence” about which so much has been written in these web-pages – a somewhat extraordinary law which, back during its strapping youth, could be used by anyone, from anywhere, to bring suit in a Belgian court against anyone, from anywhere, for alleged genocide, violations of human rights, and that sort of thing. While it lasted, it provided for great political theater – with personages such as Ariel Sharon and Donald Rumsfeld wondering whether it was safe for them to even set foot on Belgian soil, and Belgium’s hosting of NATO headquarters thrown into doubt – but it has finally met its end – at least so it seems. (more…)

Can we make a deal? There’s more news on the old Belgian “law of universal competence” front. I’m not sure whether my faithful EuroSavant readers are waiting out there with baited breath about new developments here – or whether this is just of interest to me. It’s reported in today’s on-line De Standaard; maybe I’ll give you that link and just a brief description, and then let those interested (and, of course, those who can read Dutch or can have the article translated) get into the issue further. (That not good enough? E-mail me! I’ll be very obliging!) (more…)

There goes another one of my favorite weblog-entry subjects! The Belgian government is now in the process of modifying its infamous “genocide law” (formally known as “law of universal competence” – the law that used to allow criminal complaints from anyone, from anywhere, against anyone, from anywhere, whom they could charge with crimes against humanity) so that it more-or-less conforms to the sort of legislation most other countries have for the prosecution against those sorts of serious crimes. Crucially, with the changes that are now being added either the accuser or the accused must be of Belgian nationality or must have at least lived in Belgium for three years. (EuroSavant recently had the occasion to discuss this law, and the displeasure it was prompting among American officials, here.) (more…)

Remember that “genocide law” in Belgium (formally known in English as the “law of universal competence,” and which EuroSavant first commented upon a few weeks ago here)? The one that allows anyone, from anywhere, to take to court in Belgium anyone, from anywhere, whom they wish to accuse of committing violations of human rights and/or of the laws of war? It has by no means gone away; indeed, lately Belgian-American tensions have risen to new highs. (more…)

EuroSavant is back, and so back on the lookout for interesting items out of the European news that you won’t find reported in the Western Hemisphere. Before embarking again on an examination of some larger theme – that “old favorite” of US-European diplomatic relations looks like it may be a good candidate to be taken up again, given Colin Powell’s arrival tonight in Berlin – here’s a tidbit out of Belgium, where a criminal complaint has been filed in a Brussels federal court against War in Iraq commanding general Tommy Franks for having permitted war crimes to be committed by soldiers under his command in the recent conflict. (more…)

Once again Iraq is causing divisions within NATO. This time it’s between the Poles and the Germans. In one respect, this is nothing new: Chancellor Schröder’s SPD-Green administration had always made it clear that it would not support a war in Iraq, in any way, even if it were given official United Nations approval – e.g. if the so-called “Second Resolution” had passed the Security Council. On the other hand, Poland was one of the few nations (the others including only Australia and Albania) to actually send troops to contribute to the military effort of the War in Iraq. In fact, Polish commandos did some rather good work in securing Iraqi oil platforms offshore in the Persian Gulf once hostilities got under way.

But the war phase is now over, and the occupation phase has begun. (more…)

Germany was the odd-man-out at the recent defense summit between the German and French presidents and Belgian and Luxembourgian premiers: Chancellor Schröder’s government has been the one trying the hardest for a rapprochement with the American administration after the divisions caused by the War in Iraq. Indeed, as Anke Bryson notes in the Frankfurter Algemeine Zeitung Weekly, both Schröder and his foreign minister Joschka Fischer wanted to keep this “mini-summit” a low-profile affair, out of respect for the sensibilities of the Bush Administration – “but the publicity damage had already been done.”

We’ve seen how elements of the French press took this meeting seriously, while the Belgian press was more cynical, doubting that anything would ever come of this summit taking place on its own soil. Whatever the sotto voce protestations of German officials, they did accept the invitation to attend the Brussels meeting and did show up there. It’s time to check the German press’ reactions. (more…)

Belgium provided the locale for this week’s meeting of the German, French, Belgian, and Luxembourgian heads of state to discuss the new European defense initiative. What do the Belgian papers have to say? (more…)

The heads of state of France, Germany, Belgium, and Luxembourg met yesterday in Brussels to launch a new European defense initiative for a multinational force to flesh out the European Union’s foreign and security policies. Presidents Chirac and Schröder and Prime Ministers Verhofstadt and Juncker took pains to emphasize that they were not acting against NATO nor against that alliance’s senior partner, the United States.

Of course, besides Luxembourg, it is true that these were the European countries in the forefront of opposition to America and its “coalition of the willing” as they undertook their assault on Iraq. And many do intrepret this as an anti-NATO gesture – the Times of London‘s foreign editor Bronwen Maddox speaks of a “direct hit on Nato” and “payback time” for these four countries. What do the countries involved have to say for themselves? (more…)