The European Union: Where Corporate Fantasies Come True
By David Cronin | New Left Project | July 18, 2013
Edward Snowden has exposed more than a massive spying operation. The whistleblower has – perhaps unintentionally – drawn attention to just how obsequious Europe’s political leaders are towards the US.
Angela Merkel and François Hollande are reportedly furious over revelations that America has been reading their diplomats’ emails (though their fury can’t be that intense given that a rumour that Snowden was on a flight to Bolivia was sufficient for France to block the plane from its airspace). There were hints too that a planned trans-Atlantic trade agreement could be in jeopardy as a result of the controversy. Yet the talks have opened this month as planned. With many of the world’s most powerful corporations adamant that the talks take place, they were unlikely to be derailed by a spat over snooping.
In May this year, a ‘business alliance’ to support the planned trade deal was established. Many of the firms belonging to this coalition – BP, Coca-Cola, Deutsche Bank, British American Tobacco, Nestlé – have been involved in similar initiatives since the 1990s. Using a highly dubious methodology, the alliance estimates that a transatlantic trade and investment partnership (known by the ugly acronym TTIP) would bring benefits of €119 billion to the EU and €95 billion to the US per year. What they don’t spell out is that the price of any such benefits could be the destruction of democracy.
A leaked document detailing what EU officials wish to achieve in the negotiations says that an eventual agreement should include ‘state-of-the-art’ provisions on ‘dispute settlement’. Under this plan, special tribunals would be set up to allow corporations to sue governments over laws that hamper them from maximising their profits.
When clauses like those being envisaged have been inserted into previous investment treaties, corporations have invoked them in order to challenge health and environmental laws that were not to their liking. Australian rules that all cigarettes be sold in unattractive packaging and Germany’s decision to abandon nuclear power are among the measures that corporations have tried to torpedo in the name of ‘investor protection’.
What will the masters of the global economy take on next: minimum wage levels; restrictions on hazardous chemicals; food quality standards? All of these advances are the results of struggle by workers and campaigners. All of them could be at risk if European and American negotiators go ahead with their plan to set up a special court system that corporations alone may use.
Peter Mandelson must shoulder some of the blame for the extremist agenda now being pursued. In 2006, when he was EU trade commissioner, Mandelson published an official blueprint called Global Europe. It committed the Brussels bureaucracy to work in tandem with corporations to remove any obstacles they encountered throughout the world.
The blueprint closely resembled recommendations made by pressure groups like the European Services Forum (ESF). Bringing together Microsoft, BT, Veolia and – at the time – Goldman Sachs, the ESF has its origins in the 1999 conference of the World Trade Organisation, best remembered for the ‘Battle of Seattle’ – the large-scale protests against it.
In The Brussels Business, an excellent film about corporate lobbying, the ESF’s Pascal Kerneis waxes emotional as he recalls how some ‘high-VIPs’ were unable to attend important meetings in Seattle because of the demonstrations outside their hotel. Kerneis, however, did not allow this display of people power to weaken his determination to refashion the international economy in the way that his elitist pals wanted.
In his dealings with Mandelson’s team of advisers, Kerneis argued that if the EU is unable to have the wishes of corporations fulfilled at the WTO level, it should concentrate on twisting the arms of individual governments. The stilted phrasing of some ESF briefing papers though could not conceal that they were designed to turn some of the wildest capitalist fantasies into reality. One advocated that the EU should strive to remove all capital requirements for banks and caps on foreign ownership of companies in its key trading partners, as well as any pesky rules preventing corporations from sending profits abroad (to, say, a tax haven).
As they were drafted before the financial crisis that erupted in 2008, these papers have a carefree, almost naive feel to them. And yet the European Commission is still striving to attain the core goals identified in such documents. The Commission’s latest annual report on ‘trade and investment barriers’ says that all ‘relevant instruments and policies’ will be marshalled worldwide ‘to make sure the playing field is levelled’. On the surface, that may sound innocuous. In practice though, it means that corporations are accorded more rights than human beings.
If an Indian arrived in Heathrow Airport tomorrow and demanded to automatically have the same entitlements as a British citizen, he or she would probably be arrested. Yet the EU executive believes that big Western companies active in India should enjoy ‘national treatment’ – that is they should be treated exactly like Indian firms. Britain’s industrialisation was achieved at least partly because the textiles sector was shielded from foreign competition. Yet blinkered by neoliberal ideology, Brussels officials want to prevent poorer countries from applying the same tactics, which they now describe as ‘protectionist’ (a dirty word, according to these ideologues).
The willingness to allow corporate lobbyists to set the rules is not confined to trade policy. Financial regulation too has been heavily influenced by the world’s most powerful banks.
Charlie McCreevy, the EU’s single market commissioner from 2004 to 2010, displayed a deep aversion to oversight during his time in office. His hands-off approach can be attributed to the fact that the ‘experts’ he appointed to guide him held exorbitantly-paid posts at the investment banks Goldman Sachs and Morgan Stanley. A consultative group on hedge funds that the Irishman assembled was comprised entirely of insiders from the financial services industry.
When Michel Barnier was tasked with taking over McCreevy’s portfolio, Nicolas Sarkozy (remember him?) contended that giving this post to a Frenchman was a defeat for the Anglo-Saxon model of capitalism. Like many of Sarkozy’s proclamations, it was fanciful. Barnier has kept up the dishonourable tradition of relying primarily on advice from the private sector. An ‘expert group’ on banking reform set up at his behest last year had a token representative from the European Consumers’ Organisation (known by the French acronym BEUC) and a couple of academics. Most of its eleven members, however, were sitting or former bankers – or, worse still, weapons salesmen.
Financial service whizzkids are held in awe by EU policy-makers. This became much apparent during 2009. Boris Johnson hopped on the Eurostar to Brussels that year to champion the City of London and predictably grabbed the headlines. Away from the glare of publicity, however, an army of hedge fund managers succeeded in eviscerating a law designed to restrain their gambling. When the law went before the European Parliament, the hedge fund industry prepared a voluminous set of amendments. Sharon Bowles, a Liberal Democrat MEP who chairs the Parliament’s economics committee, admitted to me that she signed amendments drafted by the financial industry and then tabled them in her own name. This obviously begs the question of whether she is really working on behalf of her constituents or on behalf of banks.
The corporate lobby has proven adept at concocting myths. Whereas it was patently obvious that the economic crisis was caused by the reckless behaviour of banks, powerful groupings have spread the falsehood that extravagance in public spending was really to blame. The European Roundtable of Industrialists (ERT) – which includes the chief executives or chairmen of Shell, Volvo, Nestlé, Vodafone and Heineken – has been leading efforts to demolish the welfare state. Among its core demands are that healthcare should be privatised so that Europe more closely resembles the US. The ERT enjoys the kind of access to top-level politicians that defenders of the underprivileged are denied. Herman Van Rompuy, the EU’s unelected ‘president’, is known to have dined with ERT delegations in private clubs, without any details of these encounters being posted on his website. And in March this year, Merkel and Hollande, along with the European Commission’s head José Manuel Barroso, met ERT representatives in Berlin. The ERT is pushing the Union’s governments to agree on a ‘competitiveness pact’ over the next twelve months. Under this pact, each EU country would become obliged to drive down its wage levels and dilute its labour laws.
‘Competitiveness’ is a byword for crony capitalism. It should not be confused with competition: among the ERT’s demands are that the EU becomes less fussy about controlling mergers between large companies. Far from encouraging diversity, it wants to have wealth concentrated in increasingly fewer hands.
Repeated so often, the idea of ‘competitiveness’ has assumed an almost religious significance among the EU elite. Opposing it is regarded as heretical.
Despite Thatcher’s tetchy relationship with the EU institutions, the main tenets of Thatcherism have gone mainstream in Brussels. Attempts made in earlier decades to give the Union a social dimension – by, for example, championing gender equality – always amounted to fig-leafs for a project that was essentially right-wing and anti-democratic. In more recent years, these fig-leafs have become increasingly slender.
Barroso is among a new generation of leaders who are demonstrably in thrall to the ‘Iron Lady’. While he habitually describes the EU as a ‘social market’ economy, it is evident from his favoured policies that his real agenda is to bolster corporate power. One key objective of the European Commission is to promote ‘public-private partnerships’. This idea of handing over services financed by taxpayers to unaccountable companies can be traced back to Thatcher and her successor, John Major.
With few exceptions, the Union is cuddling up to big business and screwing the rest of us. Building a mass movement to confront corporate power has never been more urgent.
US, Israel launch joint aerial drill
Press TV – July 21, 2013
The United States and Israel have begun a joint aerial drill. According to a statement by the Israel military the two-week “Juniper Stallion 13” aerial exercise began Sunday morning.
An undisclosed number of F-15 and F-16 fighter jets from both sides are participating in the training event. It’s held at Uvda Base in the southern Negev Desert, during which pilots will practice air-to- air combat maneuvers, mid-air refueling, bombing runs and other missions.
The United States European Command (EUCOM) is involved in the aerial war games which will focus air-to- air combat maneuvers, mid-air refueling, bombing runs and other missions.
The exercise comes after a two-day visit to Israel on July 14 by EUCOM’s Commander General Philip M. Breedlove.
“The combined exercise is designed to improve the interoperability and cooperation between the Israeli and U.S. air forces, and has been planned for more than a year,” an Israeli military source told Xinhua.
The U.S. is Israel’s biggest ally and international supporter. It supports Tel Aviv financially, militarily and diplomatically. Washington is providing billions of dollars of military aid to Tel Aviv annually.
During Fiscal Year 2013, the U.S. is providing Israel with at least $8.5 million per day in military aid.
Meanwhile Times of Israel has reported that “Israel would receive $3.4 billion in total military aid under the 2014 U.S. budget proposal sent to Congress by President Barack Obama”. The proposal is inclusive of “$3.1 billion in general military aid for Israel, similar to 2013, plus a separate request for $220 million to finance the Iron Dome anti-rocket defense system.”
“Obama’s 2014 proposal also allocates $96 million for joint U.S.-Israel research and development projects, including the David’s Sling and Arrow missile defense systems. The overall budget proposal that Obama submitted to Congress on Wednesday totalled $3.8 trillion.”
The If Americans Knew website (http://ifamericansknew.org/stats/usaid.html) reports that “Beginning in 2007, the U.S. has increased military aid by $150 million each year. Beginning 2012, we will be sending Israel $3.1 billion a year (or an average of $8.5 million a day) and will continue to provide military aid at that level through 2018. U.S. tax dollars are subsidizing one of the most powerful foreign militaries.”
In Israel’s last two wars on the Gaza Strip alone, Operation Cast Lead (27 December 2008- 18 January 2009) and November 2012, hundreds of civilians, including many women and children were killed.
In addition to financial and military aid, the U.S. has vetoed over 40 UN resolutions that have been critical of Israel and its policies towards Palestine.
Jabari family once again facing harassment from settlers and soldiers
International Solidarity Movement | July 22, 2013
Hebron, Occupied Palestine – On Saturday the 20th, whilst taking his sheep out to graze on his land, 56 year old Abd Al-Karim Ibrahim Al-Jabari was stopped and harassed by settlers and soldiers before being taken for questioning to the police station in Givat Ha’avot, an illegal settlement in occupied Hebron.
Abd Al-Karim’s land is located between the two illegal settlements of Kiryat Arba and Givat Ha’avot. When he took his sheep out to graze on his land yesterday morning, he was stopped by settler security guards from the nearby settlement of Givat Ha’avot who subsequently called the Israeli occupation forces. He spent several minutes discussing with the soldiers, who refused to believe that he is the owner of the land and insisted it was Jewish land, as the settlers had told them. A soldier said to Abd Al-Karim: “This land and this house is mine and I will get you out of it”. The soldiers then decided to take him to Givat Ha’avot police station for further questioning. Abd Al-Karim, who speaks Hebrew, heard the soldiers say to each other that they wanted to handcuff him and then push him out of the jeep whilst driving. However, he managed to calmly insist and persuade them that there was no need for him to be handcuffed or blindfolded.
When they arrived at Givat Ha’avot police station, a police officer who knows Abd Al-Karim and his situation scolded the soldiers for bringing him there, confirmed that he owns the land, and told the soldiers to take him home again, which they did. Abd Al-Karim explained that the soldiers who arrested him are Shabbat reinforcements from another brigade that is not normally stationed in Hebron and therefore do not know the Jabari family and their situation.
After Abd Al-Karim was arrested, his son continued discussing with Israeli soldiers and asked them to stay to protect them from settlers, who were gathering in a tent set up on the Jabari family’s land which serves as a synagogue. However the soldiers refused to stay and said they would only come back after a one-hour coffee break. They also prevented international activists from filming the scene. Two hours later, the soldiers still hadn’t returned, leaving the Jabari family vulnerable to settler attacks. Abd Al-Karim explained that this has happened many times before.
The Jabari family used to live where Givat Ha’avot settlement now is, and they owned two more houses that were demolished. They have been living in their current house for 16 years.
The Jabari family has suffered countless attacks by both settlers and soldiers over many years. The settlers regularly come to harass and attack the Jabari family when they are out on their land grazing sheep or tending to their trees. They also steal vegetables from their land before the Jabari family can harvest them. In the past, settlers have often thrown rubbish, stones and empty alcohol bottles into their garden. Abd Al-Karim says he has recorded about 1,500 incidents since 2001. Everyone in his family has been arrested at some point or other. They have filed countless complaints at the police station, which has only led to further aggression and arrests by the Israeli military, who are seemingly trying to crush their spirit of resistance and defiance. Abd Al-Karim believes that his family is more vulnerable to settler attacks than their neighbours because they refuse to back down and insist on continuing to enter and use their land.
A few years ago, a couple of thousand settlers entered the Jabari family’s property and prayed outside their house. The settlers have said many times that they intend to take over the Jabari’s house and land.
Once, settlers were throwing stones at one of Abd Al-Karim’s sons. Soldiers came and twisted his arms behind his back and told the settlers to continue throwing stones at him. He was hit in the face by a stone and badly injured.
Two years ago, during Ramadan, soldiers would come to several houses in the neighbourhood just a couple of minutes before the call to prayer for iftaar (breaking the fast). They would force the whole family to move into one room and lock them inside, with all the food prepared and ready outside. The Jabari family’s neighbours were locked inside a room for 24 hours without food or water and were only released for iftaar the next day, meaning they had to fast for 48 hours. They were at the mercy of the soldiers to let them out to use the toilet.
When the soldiers attempted to do this to the Jabari family one day, Abd Al-Karim argued with them and refused to move into a room. The soldiers nevertheless entered their house and watched them break their fast. They then demanded to be shown around the house, but again Abd Al-Karim refused and insisted on calmly drinking his coffee and smoking a cigarette. He told them to go look around the house on their own, but refused to have his break ruined. The soldiers checked the house and left after an hour. Abd Al-Karim says he is proud that he refused to be locked into a room like his neighbours and that the soldiers could not force him.
As the Jabari family was sitting with ISM volunteers telling their story, a settler entered their garden. Abd Al-Karim and his son reassured the worried internationals and explained that this settler was an old friend and came to visit them regularly. They offered him coffee and cigarettes, and told stories of how they already used to play together as children. “We’re not against Jews or Israelis living here. All we ask of God is to live in peace with our children.”
Related articles
- Settlers building illegal road on Palestinian land in Hebron (palsolidarity.org)
- Palestinian activist detained in Israeli raid (alethonews.wordpress.com)
- Settlers from Bracha attack and harass farmer on his land (alethonews.wordpress.com)
NSA docs prove Germany complicit in spying program: Report
Press TV – July 22, 2013
A report has revealed that German intelligence services themselves used one of US National Security Agency’s most valuable spying programs.
The new information was published by German weekly Spiegel on Sunday and was based on secret documents from the US intelligence service.
This report comes as another blow to German Chancellor Angela Merkel and her ministers, who all claim that they first learned about the NSA spying programs from press reports.
The documents show that Germany’s foreign intelligence service, the BND, and its domestic intelligence agency, the Federal Office for the Protection of the Constitution (BfV), both used an NSA surveillance program called XKeyScore.
The obtained documents also revealed that the XKeyScore program collected the major part of the up to 500 million phone calls and data activities monitored monthly by the NSA.
The XKeyScore program is able to reveal retroactively any terms the target person has typed into a search engine through collected metadata, i.e. information about which data connections were made and when, according to an internal NSA presentation from 2008.
The system is also capable of receiving a “full take” of all unfiltered data over a period of several days, including contents of communications.
Furthermore, the secret documents show that the BND head, Gerhard Schindler, had an “eagerness and desire” for Germany’s intelligence agencies to intensify cooperation with the NSA.
“The BND has been working to influence the German government to relax interpretation of the privacy laws to provide greater opportunities of intelligence sharing,” the NSA stated in January.
Elsewhere in the document, the NSA said that in Afghanistan the BND had proved to be the agency’s “most prolific partner” when it came to information gathering.
Moreover, the documents show that a 12-member high-level BND delegation was invited to the NSA at the end of April to meet with various experts on “data acquisition”, just a few weeks before first revelations by the NSA surveillance programs by Edward Snowden were published.
In June, Snowden, an American former technical contractor for the NSA and a former employee of the CIA, leaked documents showing the US spied on the European Union and monitored up to a half-billion German telephone calls and internet activities each month.