Category Archives: Europe

Aid, Britain, Europe, European Union, Government, Politics, Uncategorized

Taking back control of the foreign aid budget

uk-aid

Destinations and allocations of British foreign aid in 2015.

BRITISH FOREIGN AID

Intro: Enshrined into UK law is Britain’s ill-judged legal commitment to spend 0.7 per cent of GDP on foreign aid which ministers are obliged to spend.

The statement made by the European Commission that hundreds of millions of pounds spent on international aid will be returned to the Treasury will be welcome news for Out campaigners. This goes to the heart of the Brexit cause and why British voters chose to leave the European Union: leaving means that decisions taken in the name of British voters, using money that belongs to British taxpayers, are made by people who are directly accountable to those people.

This is one of the starkest examples of what was wrong with Britain’s involvement with the EU; a situation where large sums of money were extracted from taxpayers and handed to unelected and unaccountable Commission officials to spend on aid and vanity projects about which British voters were never consulted. Regaining control of such cash and such decisions is the essence of Brexit.

But, as things stand, that money will not be used very differently. Enshrined into UK law is Britain’s ill-judged legal commitment to spend 0.7 per cent of GDP on foreign aid which ministers are obliged to spend. This grim irony, a policy which is as unpopular with voters as EU membership was, shares similar undemocratic origins: a political project beloved by metropolitan elites who felt entitled to foist that commitment on taxpayers who did not consent to it.

Taking back control of money sent to Brussels, just as voters instructed, reconciles directly to what Brexit means. The same control must now be restored over the aid budget: the 0.7 per cent target should follow our EU membership into history.

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Britain, Economic, Europe, European Union, Financial Markets, Government, Italy, Politics

Italy’s populist vote and the uncertainty of the euro

EUROZONE CRISIS

IN a continuation of a wave of populist voting following Brexit and the election of Donald Trump, Italy has now followed suit. The ousting and forced resignation of Matteo Renzi, a very successful prime minister in Italy, adds yet more resonance to an EU that is breaking at the seams.

Despite what Marine le Pen, the far-right leader of France’s National Front, would like to portray, Italy’s revolt was not particularly based on an anti-EU stance. The top populist parties in Italy, Five Star and the Northern League, are not opposed to membership of the EU itself but they are averse to the Eurozone.

Nevertheless, it will hardly be seen as a ringing endorsement of the actions of the EU. The issues that have driven this latest referendum result – fears over the waves of refugees from Africa, a desire to rise up against the establishment, and unhappiness over the way the economy has been managed – are the same dissenting signals that we have seen elsewhere.

It is the economic impact that we have most to fear from the Italian result. There is also the issue of what that might mean for the negotiations over Britain’s exit from the EU. The Italian economy is far from healthy, despite marginal improvements in unemployment rates, and the banks remain weak. The country’s debt-to-GDP ratio, at a staggering 133 per cent, is second only to Greece’s in the Eurozone. Despite Italy being the Eurozone’s third largest economy, the country has contracted by around 12 per cent since the financial crisis of 2008.

President Sergio Mattarella will be anxious now to ease fears of instability. But regardless of what action he takes there will be a delay as the markets adjust. In reality, he remains helpless as to what he can do to ease those fears. How long that period of instability lasts is the biggest uncertain factor the markets face. Financial markets do not like uncertainty or instability.

There is a risk that the failure of a major Italian bank, such as the troubled Banca Monte dei Paschi di Siena, could set off a wider crisis. Making the banks strong enough becomes more difficult amid political ambivalence.

That could well provoke another crisis in the euro, at a time when Britain will be in negotiations about its withdrawal from the EU. The fusion of these events is not going to help any new euro crisis or aid Theresa May and her government getting a favourable Brexit deal.

The most telling comment yet has come from the German finance minister Wolfgang Schaeuble, who has said there was no reason for a euro crisis but that Italy urgently needs a functioning government. Startling. Mr Schaeuble infers that a currency crisis was not inevitable. Unfortunately, ending the uncertainty is more than just an Italian problem.

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Europe, France, Government, Islamic State, Society, Terrorism

Europe and Islamist attacks

TERRORISM IN EUROPE

Intro: President François Hollande of France may think that declaring war on the extremists will shore up his own fragile political position

THE INSTINCTIVE RESPONSE on horrors such as those that have taken place in France and Germany in recent days is to look for a pattern, a narrative that might go some way to explain the inexplicable.

The brutal and bloody murder of an 86-year-old priest in Normandy invites such thinking, since it follows years of attacks on Christians in the Middle East: first by al-Qaeda and then by Islamic State of Iraq and the Levant (ISIL). Is radical Islam seeking a war with Christianity?

The very suggestion or notion of such a conflict between faiths would delight followers of ISIL, but it is hard to reconcile with that group’s dreadful persecution of fellow Muslims. ISIL has killed many more Muslims than it has Christians or Jews.

Or are the Islamists targeting Western liberal values more broadly, seeking to reinstate the Islamic Caliphate that once existed across the Middle East and parts of Southern Europe?

If so, that end has been poorly served by the enormity and mayhem in Normandy and Bavaria, lands that were never home to Muslims in the middle ages and which have only come to have Muslim residents as a result of those liberal Western values.

Seeking some kind of explanation for the evil that has been perpetrated is perfectly natural, but we should not impute too much calculation or design to those individuals who carry out such heinous crimes.

Whilst we may look for explanations the truth is there is no rationale or logic, nor any coherent argument in explaining away why Europe is suffering such appalling atrocities on its streets. These are the acts of inadequate and disturbed individuals with a nihilistic desire to destroy anything that challenges them and their ill-formed and warped idea of the world.

We must harden our defences against such acts, but we should be wary of the idea that those acts represent a clash of cultures – for that suggests some sort of parity between irrational extremist ideology on the one hand and a civilisation of shared traditions developed over thousands of years on the other.

President François Hollande of France may think that declaring war on the extremists will shore up his own fragile political position. Such a response, however, also risks validating the arguments of Marine Le Pen’s National Front (i.e. that the French establishment has failed to face up to the existential threat of terrorism).

Security and intelligence operations should be reviewed in the face of these latest attacks, particularly as the numerous intelligence agencies that operate in France are highly dysfunctional and disjointed. Great care must be taken not to dignify the attackers or their pathetic dreams of grandeur. They are murderers only deserving of contempt.

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