Archive for November, 2012

Does Turkey Need Air Defence Help?

Tuesday, November 20th, 2012

Here, let me ask you this (answers and/or commentary as usual welcome at the €S e-mail address): Does Turkey currently face a military threat across the Syrian border? At least through the air?

Those are the important questions now before the German parliament, or Bundestag:

Luftabwehr für Türkei: Patriots-Debatte zwischen Skepsis und Fremdscham http://t.co/RSZflivE

@BMOnline

Berliner Morgenpost


Or rather: they are supposed to be before the Bundestag, as we learn in the Berliner Morgenpost article. Rather incredibly, though, it actually seems that the German government was ready to deploy Patriot anti-aircraft missile units to Turkey just on its own authority.

But Homey don’t play that, as opposition politicians are now reminding the German public. Indeed, as a spokesman for the opposition Socialist Party (SPD), Rainer Arnold, maintained in a separate newspaper interview, the German “Supreme Court” (Bundesverfassungsgericht) has made it clear in its decisions that such a deployment outside the country must be approved by the Bundestag.

If you ask Arnold’s boss, the SPD’s faction-leader in the Bundestag, Frank-Walter Steinmeier, it’s not clear-cut that Turkey lies under any threat. And his Green Party counterpart, Jürgen Trittin, will be glad to tell you – you don’t need to ask – that in fact a UN mandate (presumably from the Security Council) is also necessary for such a deployment. (That’s his own opinion, though, not that of the Bundesverfassungsgericht.)

On the other hand, the article also says that Turkey had asked for – or was very close to asking for – NATO assistance of that kind, so that this can easily be viewed as a case of providing solidarity to another NATO ally. That’s certainly the line that the governing coalition has taken up; some leading spokespersons profess to be ashamed that there is even any doubt that Germany is willing to come help.

Then again – is there really a threat? German deployments outside Germany for decades (after the mega-deployment known as WWII) never happened at all, but in any event are very sensitive matters domestically – and the latest one that is just winding down, to Afghanistan, did little to inspire confidence. Anyway, the nature of the Turkish situation is not decided in Berlin, yet, and so neither is the whole issue of Patriot deployment.

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Blue-Sky Tokenism for Poland

Tuesday, November 13th, 2012

Here’s a story that has come under the radar (no pun intended) of most of the international press, but at least we have it here in Poland’s Gazeta Wyborcza:


“In Łask, the Americans have NOT landed,” it reads.

Well – yes they have, yet they also have not. Łask is a Polish village just to the West of the city of Łódż, whose only claim to fame is that it has an airbase. There, the American and Polish air forces recently staged a joint ceremony – you can click through if you’d like to see the photo – marking the arrival of 16 American F-16 fighter-bombers and associated personnel, flight and ground (among which, strangely, only 10 pilots). This is noteworthy because, as the article notes, it is the first permanent stationing of US armed forces on Polish soil.

It’s a big deal, among other reasons because it’s a sign of the American commitment to Poland’s defence within NATO. (Against whom? Against parties to the East, of course.) This is not so much because of the equipment itself – the F-16 is a good, if ageing, plane, but 10 of them (only 10 pilots, remember) is not many should a general war break out – but instead due to the very presence of such American personnel within Poland, and thus within the line-of-fire should Poland be attacked. It’s likely then that these would come to harm, thus increasing the pressure on the US president to actually fulfill America’s promises under NATO to intervene. (more…)

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What Is Romney’s Next Act?

Thursday, November 8th, 2012

Maybe it’s a question you haven’t devoted much thought about. But the journalists at the Dutch paper De Volkskrant are on it:


“What does Romney do now?

Indeed: What do you do with yourself when you’ve basically spent the last six years running for president, but came up short at the finish line? “Spend more time with my family” – OK, of course, but once that starts to wear thin there aren’t really many firm answers about what comes next. Apparently wife Ann doesn’t want any more presidential campaigning, yet according to this piece “In the US there is a general consensus that the 65-year-old ex-governor will not disappear from the public eye.” There may nonetheless well be another attempt at the presidency; in any case, some future active role in the Republican Party seems likely.

BTW the Volkskrant web-editors have not been kind to Romney with their choice of picture to head this piece. Check it out: it’s Mitt smooching with Ann on-stage after he delivered his concession speech, but considering her expression it’s probably better described as an oscular assault!

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Romney’s Money Goes Dutch

Monday, November 5th, 2012

You can now add the Netherlands to the Cayman Islands and Switzerland in the Mitt Romney tax-avoidance Hall of Fame:

#Romney ontwijkt belasting door sluipweg via Nederland http://t.co/S1w4WKy2

@volkskrant

De Volkskrant


“[S]luipweg via nederland” – you can translate that as “Dutch dodge,” through which Bain Capital managed to avoid €80 million in taxation on dividends in 2004 by channeling an investment in the Irish pharmaceutical company Warner Chilcott through a Dutch holding company that held the shares. He also avoided that way a substantial sum in Irish wealth tax.

Note that this is in the period after 1999 when Romney claimed to have cut connections with Bain. This tax-trick was uncovered through cooperative research undertaken by Gawker and a Dutch independent financial investigation website called Follow the Money, using public SEC filings, once-confidential documents made public by Bain, and data from the Dutch Chamber of Commerce. Note that it was apparently perfectly legal.

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In a Bit of a Jam

Friday, November 2nd, 2012

Are you in or headed towards the Czech Republic, but still looking forward to your marmalade at breakfast time? Sorry, that’s probably not possible:

iDnes: Marmeláda se nevrátí, Unie odsoudila Česko k rosolu a džemu: Marmeláda se do regálů českých obchodů hned … http://t.co/6FXkUxdZ

@Zpravy

Zpravy


But don’t despair: it depends on what you call “marmalade,” as we learn from a recent article from Mladá fronta dnes. The European Commission is quite strict about what it allows to be called marmalade. That is one of the EU’s protected food designations – like “champagne” or “Parma ham” – so the Commission has demanding requirements: “marmalade” must at all times be made only of citrus fruits, and must have at a minimum 20% of actual fruit content.

A certain Czech foods company called Hamé realized it was about to get into trouble (e.g. incur fines) for calling some of its fruity breakfast-spread concoctions “marmalade” and so filed an appeal to be allowed an exception. That was rejected; the choices for the label are to be only “jam” (džem) or jelly (rosol). But it might still be what you yourself regard as “marmalade”; you’ll have to examine the label – yes, it will be in Czech, so instead just take the plunge and purchase a likely-looking jar and go home and see!

So now the Czech public can savor – if they haven’t had the chance before – the sort of laughable instance of EU interference in their everyday lives that people in older member-states have been complaining about for years. The thing is, that’s precisely the wrong audience, given the pronounced anti-EU attitudes already prevailing among many leading Czech politicians, notoriously headed by President Václav Klaus himself.

Finally, I mentioned that the Commission was “quite strict” about its protected designations, but that’s not quite true, even in the case of “marmalade”: in Denmark, Greece and Austria you can find products with that designation which do not meet the citrus fruit/20% content requirement. But that’s because the respective governments were careful to get their marmalade exemptions as their countries were becoming member-states, i.e. back when they had a little more leverage. The Czech authorities didn’t think of that back in 2004 when the Czech Republic entered the EU – they were busy defending designations a bit closer to home, like slivovice, a potent fruit-based alcohol.

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Secrets of German Success

Thursday, November 1st, 2012

If you examine the phenomenon closely, there’s a curious aspect to the current European economic crisis, whose most outstanding (but not sole) manifestation is the sovereign debt crisis. I mean looking beyond the threat to the common European currency, to where you see a marked imbalance in economic fortunes. Things are bad – very bad – in Spain, especially in Greece, but in Southern Europe (and Ireland) in general, but then things are rather good in Germany and its own ring of associated economies, the Dutch and the Austrian, but also the Polish (and Slovak) and to a lesser degree the Czech.

Why is that? Hermann Simon is a German, and also Chairman of the Board at the consulting firm Simon Kucher & Partners, and he put forth his ideas in a substantial article that appeared in Germany’s newspaper-of-record, the Frankfurter Allgemeine Zeitung, a few weeks ago. Actually, his piece is but an hors-d’oeuvre to the ideas he sets out in his new book – in German only.

The one-phrase summary for Germany’s success – and that book’s title – is “Hidden Champions.” Germany is overwhelming dependent, not on its domestic demand, but on its exports. The business establishment there is very good at that game. But it’s not large firms which are responsible – Simon mentions that even France has more companies in the Fortune Global 500 than Germany – but rather the smaller firms (famously known as the Mittelstand) that do killer export business even though most people have never heard of them – the Hidden Champions. Of the 2,734 names on the list Simon compiles of them, fully 1,307 are German (and many of the rest are Austrian or Swiss).

How do they do it? Simon conveniently (unluckily?) lists thirteen reasons: (more…)

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