Italy Slows Down Purchases of US F-35 Jets to Cut Spending – Reports
Sputnik – 12.11.2018
The previous government ordered some 90 of the fifth-generation jets for its military, but the Five Star and Lega parties, which won the last election, have been trying to either scrap the deal or reduce spending on it.
The Italian government is planning to reduce the number of F-35 jets it will buy over the next five years from 10 to six or seven aircraft, Defence News reported citing an anonymous source. According to the media outlet, Rome will not reduce the total amount of ordered jets, but instead will leave the final decision on their fate to the next government.
The move will allow Italy to avoid or reduce contract penalties and free up some resources for the government’s commitments, Defence Minister Elisabetta Trenta told the media earlier.
“What I would like to do is lighten the load, since we have other spending commitments in Europe. We will try to stretch out deliveries instead of cutting the order, which would reduce offsets and mean penalties,” she said.
The outlet’s source added that the money saved by postponing the delivery of three or four of the F-35 jets will help Rome fund its social programs and tax cuts.
Earlier, a member of the now-ruling Five Star party in the Italian parliament, Tatiana Basilio, vowed in 2017 that the country will scrap the contract for the delivery of F-35 warplanes. Italy intends to buy a total of 90 of the fifth-generation jets. Eight jets have already been delivered to Amendola air base, and three others are being used to train pilots in the US.
US Blocks $199Mln in Assets Belonging to Iran, Syria, N Korea in 2017 – Treasury
Sputnik – 07.11.2018
WASHINGTON – The United States blocked nearly $200 million in assets belonging to Syria, Iran, and North Korea in 2017 as a result of the sanctions imposed on the three countries, the Treasury Department said in its annual report to Congress released on Wednesday.
“Approximately $199 million in assets relating to the three designated state sponsors of terrorism in 2017 have been identified by OFAC as blocked pursuant to economic sanctions imposed by the United States,” the report said.
The statement comes days after the US fully reinstated sanctions against Iran, including measures that curb Tehran’s oil industry. At the same time, the United States temporarily exempted eight nations — China, Greece, India, Italy, Japan, South Korea, Taiwan and Turkey — from the sanctions on importing oil from Iran.
In May, US President Donald Trump announced that the United States would withdraw from the Iran nuclear agreement, officially known as the Joint Comprehensive Plan of Action, and reimpose sanctions against Tehran that were previously lifted under the accord, including secondary restrictions.
The first round of the US sanctions was reimposed in August, while the second round, targeting over 700 Iranian individuals, entities, banks, aircraft and vessels, came into force this week.
US Nuclear Missiles Deployed in Italy, … against Russia
By Manlio Dinucci | Global Research | October 18, 2018
The B61-12, the new US nuclear bomb which replaces the B-61 deployed in Italy and other European countries, will begin production in less than a year. The announcement was made officially by the National Nuclear Security Administration (NNSA). It reveals that the revision of the final project has now been completed with success, and the qualification stage will begin this month at the Pantex Plant in Texas. Production will be authorised to begin in September 2019.
In March 2020, the first unit of production will begin fabricating a series of 500 bombs. As from that time, in other words in about a year and a half, the United States will begin the anti-Russian deployment in Italy, Germany, Belgium, Holland and probably certain other European countries, of the first nuclear bomb in their arsenal with a precision guidance system. The B61-12 is designed with penetrating capacity, built to explode underground in order to destroy bunkers housing command centres.
Since Italy and the other countries, in violation of the Non-Proliferation Treaty, are offering the USA the bases, the pilots and the aircraft for the deployment of the B61-12, Europe will soon be exposed to a greater risk as the front line of the developing nuclear confrontation with Russia.
An even more dangerous situation appears at the same moment – the return of the Euromissiles, meaning the nuclear missiles which are similar to those deployed in Europe in the 1980’s by the USA, with the official aim of defending against Soviet missiles.
Source: PandoraTV [English subtitles]
This category of ground-based nuclear missiles of intermediate range (between 500 and 5,500 km) were eliminated with the INF Treaty of 1987. But in 2014, the Obama administration accused Russia of having experimented with a cruise missile (# 9M729) whose category was forbidden by the Treaty. Moscow denied that the missile violated the INF Treaty and, in turn, accused Washington of having installed in Poland and Romania launch ramps for interceptor missiles (elements of the “shield”), which could be used to launch cruise missiles bearing nuclear warheads.
The accusation aimed by Washington at Moscow, which is not supported by any evidence, enabled the USA to launch a plan aimed at once again deploying in Europe ground-based intermediate-range nuclear missiles. The Obama administration had already announced in 2015 that “faced with the violation of the INF Treaty by Russia, the United States are considering the deployment of ground-based missiles in Europe”. This plan was confirmed by the Trump administration – in fiscal year 2018, Congress authorised the financing of a “programme of research and development for a cruise missile which could be launched from a mobile road base”.
The plan is supported by the European allies of NATO. The recent North-Atlantic Council, at the level of Europe’s Defence Ministers, which was attended for Italy by Elisabetta Trenta (M5S), declared that the “INF Treaty is in danger because of the actions of Russia”, which it accused of deploying “a disturbing missile system which constitutes a serious risk for our security”. Hence the necessity that “NATO must maintain nuclear forces which are stable, trust-worthy and efficient” (which explains why the members of the Alliance rejected en bloc the United Nations Treaty for the prohibition of nuclear weapons).
So the grounds are being laid for a European deployment, on the borders of Russian territory, of ground-based intermediate-range US nuclear missiles. It’s as if Russia were deploying in Mexico nuclear missiles pointed at the United States.
This article was originally published in Italian on Il Manifesto.
Read more:
Illegal US Nuclear Weapons Handouts
By John Laforge | CounterPunch | September 27, 2018
The US military practice of placing nuclear weapons in five other countries (no other nuclear power does this) is a legal and political embarrassment for US diplomacy. That’s why all the governments involved refuse to “confirm or deny” the practice of “nuclear sharing” or the locations of the B61 free-fall gravity bombs in question.
Expert analysts and observers agree that the United States currently deploys 150-to-180 of these nuclear weapons at bases in Germany, Italy, The Netherlands, Turkey and Belgium. The authors of the January 2018 report “Building a Safe, Secure, and Credible NATO Nuclear Posture” take for granted the open secret that nuclear sharing is ongoing even though all six countries are signatory parties to the Treaty on the Nonproliferation of Nuclear Weapons (NPT).
In a paper for the journal Science for Democratic Action, German weapons expert Otfried Nassauer, director of Berlin’s Information Center for Transatlantic Security, concluded, “NATO’s program of ‘nuclear sharing’ with five European countries probably violates Articles I and II of the Treaty.”
Article I prohibits nuclear weapon states that are parties to the NPT from sharing their weapons. It says: “Each nuclear-weapon State Party to the Treaty undertakes not to transfer to any recipient whatsoever nuclear weapons or other nuclear explosive devices or control over such weapons or explosive devices directly, or indirectly….” Article II, the corollary commitment, states says: “Each non-nuclear weapon State Party to the Treaty undertakes not to receive the transfer from any transferor whatsoever of nuclear weapons or other nuclear explosive devices or of control over such weapons or explosive devices directly, or indirectly … or otherwise acquire nuclear weapons or other nuclear explosive devices….”
What nuclear sharing means in practice
The five NATO countries currently hosting US H-bombs on their air bases are officially “non-nuclear weapons states.” But as Nassauer reports, “Under NATO nuclear sharing in times of war, the US would hand control of these nuclear weapons over to the non-nuclear weapon states’ pilots for use with aircraft from non-nuclear weapon states. Once the bomb is loaded aboard, once the correct Permissive Action Link code has been entered by the US soldiers guarding the weapons, and once the aircraft begins its mission, control over the respective weapon(s) has been transferred. That is the operational, technical part of what is called ‘nuclear sharing.’”
This flaunting of the NPT is what peace activists on both sides of the Atlantic refer to when calling the US bombs in Europe “illegal.” Nassauer notes, “The pilots for these aircraft are provided with training specific to use nuclear weapons. The air force units to which these pilots and aircraft belong have the capability to play a part in NATO nuclear planning, including assigning a target, selecting the yield of the warhead for the target, and planning a specific mission for the use of the bombs.”
“NATO nuclear sharing,” Nassauer writes, “was described in 1964 by one member of the US National Security Council … as meaning that ‘the non-nuclear NATO-partners in effect become nuclear powers in time of war.’ The concern is that, at the moment the aircraft loaded with the bomb is on the runway ready to start, the control of the weapon is turned over from the US, a nuclear weapon state, to non-nuclear weapon states. … To my understanding, this is in violation of the spirit if not the text of Articles I and II of the NPT.”
How Do the US and its Allies Explain their Lawlessness?
An undated, 1960s-era letter from then-US Secretary of State Rusk explained the US ‘interpretation’ of the NPT. The pretext for ignoring the treaty’s plain language, the Rusk letter “argues that the NPT does not specify what is allowed, but only what is forbidden. In this view, everything that is not forbidden by the NPT is allowed,” Nassaure explained.
In its most absurd section, Rusk simply denies the treaty’s obvious purpose and intent. “Since the treaty doesn’t explicitly talk about the deployment of nuclear warheads in countries that are non-nuclear weapon states,” Nassaure writes, “such deployments are considered legal under the NPT.”
It is so easy to show that the United States and its nuclear sharing partners are in violation of the NPT, the governments involved work hard pretending there is nothing to worry about, no lawbreaking underway, no reason to demand answers. This is why so many activists across Europe have become nonviolently disobedient at the air bases involved.
The transparent unlawfulness of NATO’s nuclear war planning is also the reason why prosecutors in Germany don’t dare bring serious charges against civil resisters; even those who have cut fences and occupied hot weapons bunkers in broad daylight. Some Air Force witness might testify at trial that US nuclear weapons are on base.
John LaForge is a Co-director of Nukewatch, a peace and environmental justice group in Wisconsin, and edits its newsletter.
Italy’s NATO Racket… A Bridge Too Far
By Finian CUNNINGHAM | Strategic Culture Foundation | 16.08.2018
The catastrophic bridge collapse in Italy this week has prompted a public outcry over the country’s crumbling infrastructure and how it is putting lives at risk. But the question the public in Italy and across Europe should be asking is: why are their governments spending extra tens of billions of dollars on NATO militarism, while neglecting vital civilian infrastructure?
When the iconic Morandi motorway viaduct came crashing down this week over the city of Genoa – with a death toll so far of 39 people – the consensus among Italian news media and members of the public is that the bridge was a disaster waiting to happen.
Nearly 200 meters of the motorway flyover section spanning a river, houses and an industrial area collapsed while dozens of cars and trucks were passing. Shocked witnesses described the scene as “apocalyptic” as vehicles plunged 40 meters along with concrete and iron girding to the ground below.
Lack of due maintenance has been blamed for why the bridge collapsed. Weather conditions at the time were reportedly torrential rain storms and lightning. But those conditions can hardly explain why a whole motorway viaduct wobbled and crashed.
The Morandi Bridge was built 51 years ago in 1967. Two years ago, an engineering professor from Genoa University warned that the viaduct needed to be totally replaced as its structure had seriously deteriorated. There seems little doubt that the disaster could have been avoided if proper action had been taken by the authorities rather than carrying out piecemeal repair jobs over the years.
Italian media reports say the latest is the fifth bridge collapse in the country over the past five years, as cited by the BBC.
Now the Italian government is calling for a nationwide survey of roads, tunnels, bridges and viaducts to assess public safety amid fears that other infrastructure facilities are prone to deadly failure.
What should be a matter of urgent public demand is why Italy is increasing its national spending on military upgrades and procurements instead of civilian amenities. As with all European members of the NATO alliance, Italy is being pressured by the United States to ramp up its military expenditure. US President Donald Trump has made the NATO budget a priority, haranguing European states to increase their military spending to a level of 2 per cent of Gross Domestic Product (GDP). Trump has even since doubled that figure to 4 per cent.
Washington’s demand on European allies predates Trump. At a NATO summit in 2015, when Barack Obama was president, all members of the military alliance then acceded to US pressure for greater allocation of budgets to hit the 2 per cent target. The alleged threat of Russian aggression has been cited over and over as the main reason for boosting NATO.
Figures show that Italy, as with other European countries, has sharply increased its annual military spending every year since the 2015 summit. The upward trend reverses a decade-long decline. Currently, Italy spends about $28 billion annually on military. That equates to only about 1.15 per cent of GDP, way below the US-demanded target of 2 per cent of GDP.
But the disturbing thing is that Italy’s defense minister Elisabetta Trenta reportedly gave assurances to Trump’s national security advisor John Bolton that her government was committed to hitting its NATO target in the coming years. On current figures that translates roughly into a doubling of Italy’s annual military budget.
Meanwhile, the Italian public have had to endure years of economic austerity from cutbacks in social spending and civilian infrastructure.
Rome’s new coalition government comprising the League and Five Star Movement has called for a reversal in austerity policies and has vowed to increase public investment. Its leaders, like deputy prime minister Matteo Salvini, have also at times expressed a lukewarm view of NATO.
After this week’s bridge disaster, the populist coalition government has renewed its calls for more investment in public services.
Nevertheless, why then is Italy’s defense minister giving assurances that the country will adhere to Washington’s demands for increasing its NATO budget? Minister Trenta, who belongs to the Five Star Movement, says her government remains committed to buying up to 90 units of the US new-generation F35 fighter jet.
Aggregate figures show that Italy spent nearly $300 billion over the past decade on military. The previous decade’s outlay was even higher in constant dollar terms, before the financial crash in 2008. And yet the Italian government – despite its populist appeal – is planning to allocate even more resources to military over the coming years in order to meet Washington’s ultimatum for the NATO 2 per cent of GDP target. A target figure that seems wholly arbitrary and abhorrent in the light of so many urgent social needs and neglected public infrastructure.
If Italian motorway bridges are collapsing now, the future for public safety looks even bleaker when more of the country’s economy is diverted to satisfy US-led NATO demands.
Moreover, this dilemma is not confined to Italy. All European members of NATO are being railroaded by Washington to significantly expand their military budgets. President Trump has lambasted European states as “free loaders” cadging off “American protection”. Trump has singled out Germany for harassment to boost its military budget. After all the hectoring, the Europeans seem to be responding too. At the annual NATO summit held last month in Brussels, the Norwegian secretary-general Jens Stoltenberg boasted that non-US members had increased their national military budgets by an aggregate $40 billion in one year alone.
A cruel irony is that last year NATO planners complained that Europe’s infrastructure of roads, tunnels and bridges needed significant upgrades to facilitate mass-transport of military forces in case of a war with Russia. The implication was that European governments would have to increase their national spending on civilian transport networks specifically to facilitate NATO military requirements.
That is tantamount to a parasite craving for more blood from its host. Already European infrastructure is in disrepair largely because of economic austerity enforced by disproportionate spending on NATO militarism. At a time when public need for social investment is acute, European governments are obeying orders from Washington to plough more financial resources into subsidizing the American military-industrial complex. All this madcap, irrational expenditure is supposedly to keep European citizens safe from Russian threats.
All too evidently, however, the biggest threat to European citizens is the way Washington and its NATO racket is bleeding Europe of financial resources – resources which instead should be spent on building safe roads, bridges and other infrastructure.
Closer ties with Ukraine, Georgia would have dire consequences for NATO: Putin
Press TV – July 19, 2018
Russian President Vladimir Putin has expressed his strong opposition to the expansion of the North Atlantic Treaty Organization (NATO) eastward, warning the US-led military alliance against unspecified consequences in case it seeks to forge closer ties with Ukraine and Georgia.
Addressing a meeting of Russian ambassadors and envoys in Moscow on Thursday, Putin said there was a need to rebuild trust in Europe, and that NATO’s attempts concerning deployment of military contingents and infrastructure near Russia’s western frontiers were not acceptable.
“We will respond appropriately to such aggressive steps, which pose a direct threat to Russia,” the Russian leader said.
He added, “Our colleagues, who are trying to aggravate the situation, seeking to include, among others, Ukraine and Georgia in the orbit of the alliance, should think about the possible consequences of such an irresponsible policy.”
Putin said he had discussed the matter with his US counterpart Donald Trump at a summit in the Finnish capital of Helsinki on Monday.
Russia and Georgia fought a war in August 2008 over the breakaway Georgian region of South Ossetia. Moscow continues to garrison troops there and to support another breakaway region, Abkhazia.
The strategic Black Sea peninsula of Crimea declared independence from Ukraine on March 17, 2014 and formally applied to become part of Russia following a referendum, in which 96.8 percent of participants voted in favor of the move.
After Crimea rejoined Russia, an armed conflict broke out in eastern Ukraine when Kiev launched military operations to quell pro-Russia sentiments there. Kiev accuses Moscow of involvement in the conflict. Russia, in return, has denied the charge.
The US and its Western allies have imposed several rounds of sanctions against Russia over its reunification with Crimea and the Ukrainian crisis, which has killed about 10,000 people since it began in 2014.
German soldiers attend a ceremony to welcome the German battalion being deployed to Lithuania as part of NATO deterrence measures against Russia in Rukla, Lithuania, on February 7, 2017. (Photo by Reuters)
Earlier this year, a senior member of the Italian Five Star Movement (M5S) and vice president of the European Parliament told Russia’s Sputnik news agency that the presence of NATO troops close to Russia’s borders contributes to an arms race, and maintains an atmosphere of mistrust between Moscow and the alliance.
Massimo Castaldo also called for the easing of tensions between NATO and Moscow.
“I think that we should bet on the gradual easing of tension, including with the help of signals that we send as NATO, hoping to restore useful and constructive relations [with Russia],” Castaldo pointed out.
Italy will not buy F-35s anymore, mulls walking out of existing contracts – Defense Minister
RT | July 7, 2018
The anti-establishment Italian government’s defense minister has said that the country won’t purchase any more Lockheed Martin F-35 fighter jets from the US and will review the existing order for 90 planes.
Elisabetta Trenta, the country’s new minister of defense from the Eurosceptic Five Star Movement, has ruled out new contracts with the US for the purchase of F-35 stealth fighter jets, adding that the order for 60 F-35A and 30 F-35B jets, which concluded in 2012, might be placed under review.
“We won’t buy any more F-35s,” Trenta said in an interview with Italian broadcaster La7’s Omnibus program on Friday.
“We are assessing what to do regarding the contracts already in place,” she added, noting that while her party has always been a vocal critic of the program, she said that scrapping it altogether may “cost us more than maintaining it.”
The fact that the cancellation of the bulk deal and the resulting “strong financial penalties” might cost the Italian budget a hefty sum is one of the main reservations that is holding the government back, she explained.
The termination of the contract can negatively impact Italian workers who are employed in the production, she said, listing other merits of the deal such as “technological activity” and “important research” in a Facebook post accompanying the interview
Italy became the only country with an F-35B assembly line outside the US. In May 2017, it rolled out the first jets. However, they had to be delivered to the US Navy base in Maryland for certification and crew training.
The line in Cameri is set to produce a total of 30 F-35Bs to be delivered to the Italian Navy, Italian Air Force and the Royal Netherlands Air Force.
Back in 2012, Italy already downsized its initial order for 135 jets to 90 as it was battling with a sovereign debt crisis.
The March general election in Italy, following weeks of uncertainty and political bickering, propelled a new government of the right-wing Lega Nord and anti-establishment Five Star Movement to power. The fact that it is now a part of the ruling coalition might have put some constraints on the party’s policy, which has always been in stark opposition to the costly program.
As the party presented its defense manifesto in May last year, Tatiana Basilio, then a Five Star MP in the parliament, said that “there will be no ifs or buts about leaving the F-35 program” if her party clinched the vote.
“€14 billion for 90 F-35s is too costly and we are putting ourselves in the hands of the US,” Basilio said at the time.
One aircraft currently costs Italy €51.3 million, while, overall, it has to spend some €14 billion on the jets.
Meanwhile, the program has been bogged down by unresolved technical issues, such as faulty helmets, malfunctioning ejector seats and overblown costs.
Defending the EU Rather Than One’s Own Country
By Andrew Spannaus | Consortium News | June 24, 2018
Milan – By invoking his power last month to reject a proposed government minister because of the his critique of the EU, Italian President Sergio Mattarella made it clear that his priority is not to defend the Italian state—his job, theoretically—but rather the European Union.
This put into the open something rarely admitted publicly: that Italy—like other European countries—has essentially given up its existence as a sovereign nation-state. The EU treaties adopted by national parliaments now take precedence over the basic principles of each member country’s constitution.
Mattarella had announced on May 27 that Paolo Savona, the minister of the economy proposed by the populist parties that won the March elections, was unacceptable because of his critical position towards the EU. The president said the appointment would spook the markets and threaten the survival of the Euro. When the two populist parties that had joined together to govern, the Five Star Movement (M5S) and the League, insisted on keeping Savona, Mattarella exercised his power to reject their choice and began plans to appoint an IMF technocrat who would guarantee the current budget orthodoxy while taking the country towards new elections.
Luigi di Maio, the 31-year old M5S leader, ultimately got Matteo Salvini, head of the League, to partially relent, shifting Savona to another position in order to avoid the collapse of their newly-formed coalition. Yet the brief firestorm touched off by the clash with Mattarella was revealing, as it risked doing precisely what the president and his EU backers fear most—promote even more opposition to the loss of national sovereignty that has occurred over the past 25 years.
Finance Dominates Government
The EU’s principle aim is to continue the pro-finance policies launched in the 1980s with wide-scale de-regulation and the emergence of what became known as globalization, i.e. the loss of national sovereignty in favor of a borderless world in which financial interests would become more important than governments. The Union adopted the free market mantra, which it imposed through increasing supra-national bureaucracy. State intervention and regulations were considered the enemies of efficiency and growth, while austerity and so-called structural reforms were launched to break down the successful mixed state/market model that had been in place for decades.
Over the years, as national institutions gradually relinquished their power to make economic policy, European political elites adopted the goal of complete EU integration. They followed this dogma despite numerous contradictions, from the failure of austerity policies to increasing economic divisions, from the lack of democratic debate to sharply different foreign policy goals among member states.
Naturally, some members of national elites recognized the folly of the EU policies, one of whom was Paolo Savona. However, he is by no means “anti-European,” against further political cooperation at the supranational level. Rather, he simply recognizes that the neo-liberal policies of budget balancing and prohibiting state intervention are harmful to Italy (and others). And, given the European institutions’ refusal to re-think these rules, he came up with what some saw as a radical idea: draw up a “Plan B” in which Italy would withdraw from the single currency. The aim was to use this threat to the very survival of the Euro to exact changes such as abandoning austerity policies and allowing for large-scale public investment.
In practical terms, it is very unlikely that Italy or any other large country would today simply “leave” the Euro on its own. A more probable scenario is that the EU architecture would crumble if some of its largest members broke with the Brussels and Frankfurt orthodoxy. So, if Italy were to dig in its heels, for example, resisting calls for further deregulation and insisting on large-scale, targeted public investment, it could potentially find support from other victims of austerity such as Greece, Portugal and Spain, but also factions critical of EU policies in France and Germany.
Most of the Italian population now supports such a scenario and populist parties big and small have used it explicitly to increase their popularity. This gave them a crucial margin of added support, beyond exploiting other hot-button issues such as immigration, which despite having taken on more importance in recent years, by itself would not have been enough to bring the outsiders to power.
Thus when Mattarella stood before the TV cameras on May 27 to declare his veto, he made what was potentially a colossal blunder, both formally and politically. Besides overstepping his authority as President, since the Constitution does not allow him to intervene regarding the political orientation of the government, he sparked a backlash that could have easily strengthened his opponents.
Populists Reject Russophobia
The new government has already shown its willingness to break with establishment policies, specifically regarding relations with Russia. At the G7 meeting in Canada this month, Prime Minister Conte supported Donald Trump’s call to bring Russia back into the fold, providing the U.S. President with support on this issue that he has lacked so far among the leaders of the world’s most industrialized countries. Conte stressed Italy’s position as a loyal ally of the United States and NATO, while still insisting that better relations with Russia are needed. This point is also felt strongly among Italian businesses and institutions, particularly due to economic ties developed over many decades.
While the popularity of M5S is based on its anti-existing-system, anti-corruption platform, the League is best-known for its anti-immigration rhetoric. But over the years, the League has also adopted the most “sovereignist” positions among the large Italian political parties regarding economic policy. It now showcases economists who reject budget constraints outright, suggesting that governments can create currency freely, if need be. Further, the party has run national campaigns to re-regulate the banking sector—which would conflict directly with EU rules; both they and M5S promise to abandon austerity policies and increase both social spending and public investment. Last, they aim to implement a soft version of a “flat tax,” simplifying the tax system with only two brackets so as to inject more liquidity into the coffers of companies and the pockets of families, while raising penalties for tax evasion.
Any of these issues can cause an open clash with the EU, given its strict budget rules. The question is if the new government will attempt to finesse the issue and avoid an open fight, or welcome a political debate over the validity of the neo-liberal policies whose failure brought them to power.
Andrew Spannaus is a journalist and strategic analyst based in Milan, Italy. He was elected Chairman of the Milan Foreign Press Association in March 2018. He has published the books “Perché vince Trump” (Why Trump is Winning – June 2016) and “La rivolta degli elettori” (The Revolt of the Voters – July 2017).
Italy: The Center Cannot Hold
By Diana Johnstone | Consortium News | June 3, 2018
The traditional governing parties, center “left” and center “right” all follow the same neoliberal policies and constitute the self-designated “center.” Mainstream media enforce center right claims to authority on the base of orthodox economic expertise, while the center left derives its authority from its “values,” centered on an identity politics version of human rights. “Center” sounds so reasonable, so safe from dangerous “extremes” and unpredictable populism. Against such threats, the Center presents itself as the champion and safeguard of “democracy.”
How true is this?
World Values Survey results indicate that in Europe and the United States, people who describe themselves as “centrist” on the average have less attachment to democracy (e.g. free and fair elections) that those on the left, and even those on the far right. This is not as surprising as it may seem at first, since “centrists” are by definition attached to the status quo. In European countries, the authoritarian neoliberal “center” is institutionalized in the European Union, which imposes economic policy over the heads of the parliaments of the member countries, dictating measures which conform to the choices of Germany and northern Europe, but are increasingly disastrous for the Southern EU members.
The Centrist fear of democracy was resoundingly confirmed by March 4 legislative elections in Italy. The Center was relegated to the margins and outsiders burst in. The winner, with 32 percent of the votes, was the Five Star Movement (M5S) whose campaign “against corruption” won popular support in the impoverished South. In second place, with 17 percent, was “the League”, formerly the Northern League – that is, a party of rich north Italy chauvinists ready to secede from the “lazy good-for-nothing” south. It took almost three months for this extremely odd couple to agree to a coalition government.
The mystique of the European Union is anti-nationalist, based on the theory that “nations” are bad because they caused the devastating wars of the twentieth century, while European unification is the sole guarantee of “peace.” Convinced of their mission, the Eurocentrists have had no qualms in throwing out the baby of democratic choice along with the nationalist bathwater.
The notion that “peace” depends on “Europe” persists despite the NATO bombing of Serbia and European participation in U.S. wars in Afghanistan, Iraq, Libya and Syria, not to mention EU participation in the current major military buildup in the Baltic States against “the Russian enemy.” Indeed, thanks to NATO, the EU is gearing for a war even worse than the previous ones.
Since the “nation-state” is blamed for evil in the world, the Eurocentrists react with horror at growing demands in Member States for a return to “national sovereignty.” This, however, is a natural reaction to the economic and social disasters resulting from policies dictated by EU institutions in Brussels. The 1992 Maastricht Treaty legally bound member countries to centralized neoliberal monetarist policies; not only “socialism” became illegal – even Keynesianism was ruled out. Promised endless peace and prosperity, citizens of European countries were cajoled into giving up their sovereignty to EU institutions, and many now want it back.
Disillusioned Italy
Italian disillusion is particularly significant. Italy was an exceptionally enthusiastic founding member of the unification begun with the 1957 Treaty of Rome. And yet, Italy’s own history illustrates what can go wrong with such unification, since the 19th century political creation of a unified Italy centered in Turin led to the enrichment of the industrial north at the expense of southern Italy, where the splendor of Naples declined into chronic poverty, crime and corruption. Now Italy itself is “the south” in the periphery of a European Union centered around Germany.
Antagonism between northern and southern Italy has given way to a much stronger antagonism between Italy and Germany – each blaming the other for the crisis.
It is only fair to recall that Germans were very attached to their Deutsche Mark and to their own austere financial policies. Germany could only be lured into the common currency by agreeing to let the euro follow German rules. France eagerly supported this concession based on the notion that the common currency would unify Europe. It is doing quite the opposite.
Germany is a major exporting nation. Its trade with the rest of the EU is secondary. It uses the EU as its hinterland as it competes and trades globally with China, the United States and the rest of the world. The proceeds of Germany’s favorable EU trade balance is less and less invested in those countries but in Germany itself or outside the EU. In the official German view, the main function of the Southern EU members is to pay back their debts to Germany.
Meanwhile, Italy’s once flourishing industrial network has lost its competitive edge due to the euro. It cannot save its exports by devaluation, as it was accustomed to doing. Italy’s debt is now 132 percent of its GNP, whereas the Maastricht Treaty governing the monetary union puts a ceiling of 60 percent on national debt. And to continue paying the debt, public services are cut back, the middle class is impoverished, the domestic market declines and the economy gets even weaker.
This is precisely the situation that has plunged Greece into ever deepening poverty.
But Italy is not Greece. Greece is a small peripheral country, which can be pounded to death by creditors as a warning of what can happen to others. Italy, on the contrary, is too big to fail. Its collapse could bring the whole EU crashing down.
Italy’s Potential Strength Through Weakness
The traditional Italian parties had no solution beyond those that have ruined Greece: cut back social spending, impoverish workers and pensioners, and pay back the foreign banks, with interest.
The odd coalition of the League and the M5S was obliged to try something different: basically, to invest in the economy rather than abandon it to its creditors. Their program combines lower taxes with Keynesian stimulation of investment. Since the leader of the League, Matteo Salvini, and Luigi Di Maio of M5S do not like each other, they selected law professor Giuseppe Conte to be Prime Minister in their coalition cabinet. The interesting choice was that of Paolo Savona for the key post of Minister of Economy and Finance. Savona, whose long career has taken him across the summits of Italian and international finance, was certainly the most qualified choice imaginable. Savona knows everything there is to know about the Italian economy and international currency creation.
And yet, it was the appointment of this 81-year-old expert that created outrage in the Eurocenter.
The uproar was spurred by the fact that in one of his books Savona had described the euro as “a German prison.” Savona had also said it was necessary to prepare a Plan B, to leave the euro if there is no other choice. “The alternative is to end up like Greece.”
This hint of disloyalty to the euro was totally unacceptable to the European establishment.
The Center struck back in the person of the largely figurehead President of Italy, Sergio Mattarella, who used, or misused, his unique constitutional power by refusing to approve the government. On May 28, he designated as prime minister Carlo Cottarelli of the International Monetary Fund – a man who represented everything the Italians had just voted against. Known in Italy as “Mr. Scissors” for his advocacy of drastic government spending cuts, Cottarelli was supposed to run an apolitical “technical” government until new elections could be held in the fall.
This coup against the Italian voters caused momentary rejoicing in the Authoritarian Center. The European Budget Commissioner (a German of course), Günther Oettinger, was reported to be gloating over the prospect that “the markets” (meaning the financial markets) would soon teach Italians how to vote. Italy’s economy “could be so drastically impacted,” he said, as to send a signal to voters “not to vote for populists on the right and left.”
This simply intensified Italian indignation against “German arrogance.”

Savona: Plan B just a negotiating tactic
Meanwhile Savona wrote a letter to President Mattarella which introduced a bit of cold reason into an increasingly hysterical situation. He reminded the president that an important meeting of EU heads of state was to be held at the end of June; without a political government, Italy would be absent from negotiations which could seal the fate of the EU. Italy’s plea for economic change could expect French support. Savona denied having called for leaving the euro; in the spirit of game strategy, he had mentioned the need for Plan B in order to strengthen one’s position before negotiations. He made it clear that his strategy was not to leave the euro but to transform it into a genuine rival to the dollar.
“Germany prevents the euro from becoming ‘an essential part of foreign policy’, as the dollar is for the United States”, wrote Savona. But change becomes necessary, as the dollar is less and less suitable for its role as world currency.
Indeed, the Italian crisis merges with a mounting trans-Atlantic crisis, as the U.S. uses sanctions as a weapon in competition with its European “partners.” The paradox is that Italy could use its very weakness to oblige Germany to reconsider its monetary policy in a moment when the German economy is also facing problems due to U.S. sanctions on deals with Russia and Iran, as well as protectionist measures. Savona’s message was that clever diplomacy could work to Italy’s advantage. In its own interest, Germany may need to accept transformation of the euro into a more proactive currency, able to defend European economies from U.S. manipulation.
It was a matter of hours before Cottarella stepped back and a new M5S-League government was formed, with Savona himself back as Minister of Relations with the European Union.
Italy’s Double Jeopardy
The new Italian cabinet sworn in on June 1 is riven with contradictions. Despite all the released anti-EU sentiment, it is definitely not an “anti-EU” government. Conte is back as prime minister. The new foreign minister, Enzo Moavero Milnesi, is a staunch pro-European. As interior minister, the northern Italy chauvinist Salvini – who doesn’t particularly care for southern Italians – will get tough with migrants. As minister of economic development M5S’ Di Maio will try to find ways to improve conditions in the southern regions that elected him. Since Salvini is the more experienced of the two, the League is likely to profit from the experiment more than the M5S.
Some Italians warn that by leaving the “German prison” Italy would simply find itself even more dependent on the United States.
One should never forget that ever since the end of World War II, Italy is an occupied country, with dozens of U.S. military bases on its territory, including air bases with nuclear weapons poised to strike the Middle East, Africa or even Russia. The Italian Constitution outlaws participation in aggressive war, and yet Italian bases are freely used by the United States to bomb whichever country it pleases, regardless of how Italians feel about it.
Worst of all, the U.S. used its Italian “NATO bases” to destroy Libya, a disaster for Italy which thereby lost a valuable trade partner and found itself inundated with African refugees and migrants. While international financial experts exhort Italy to cut government expenses, the country is obliged by NATO to spend around 13 billion euros to buy 90 U.S. F-35 fighters and to increase its military spending to around 100 million euros per day.
Italy’s economic prospects have also been badly hit by U.S.-enforced sanctions against trade with Russia and Iran, important potential energy sources.
U.S. economic aggression, in particular Trump’s rejection of the Iranian nuclear deal, is the issue with the potential to bring European leaders together at a time when they were drifting apart. But at present, the Europeans are unable to defy U.S. sanctions in punishment for trade with those countries because their international dealings are in dollars.
This has already led to the U.S. exacting billions of dollars in fines from the biggest French and German banks, the BNP and Deutsche Bank, for trading that was perfectly legal under their own laws. The French petroleum giant has been obliged to abandon contracts with Iran because 90% of its trade is in dollars, and thus vulnerable to U.S. sanctions. And that is why the idea is growing of building financial instruments around the euro that can protect European companies from U.S. retaliation.
The Disappearance of the Left
The disappearance of left political forces has been almost total in Italy. There are many reasons for this, but a curable part of the problem has been the inability of what remains of the left to face up to the two main current issues: Europe and immigration.
The left has so thoroughly transformed its traditional internationalism into Europism that it has been unable to recognize EU institutions and regulations as a major source of its problems. The stigmatization of “the nation” as aggressively nationalistic has held back the left’s ability to envisage and advocate progressive policies at the national level, instead putting its hopes forever in a future hypothetical “social Europe.” Such a transformation would require unanimity under EU rules – politically impossible with 28 widely differing Member States.
Without such inhibitions, the far right capitalizes on growing discontent.
Another related handicap of the left is its inability to recognize that mass immigration is indeed “a problem” – especially in a country like Italy, with a flagging economy and 20 percent official unemployment (although this figure is probably too high, considering undeclared labor). There is resentment that prosperous Germany issued a general invitation to refugees, which for geographic reasons pile in Mediterranean countries unable to cope. The mass influx of economic migrants from Africa is not even “taking jobs away from” Italians – the jobs are not there to take. These migrants fled war and misery to come to Europe in order to earn money to send back to their families, but how can they possibly meet these expectations?
It is all very well to extol the glorious hospitality of America entreating the world to “Give me your tired, your poor, Your huddled masses yearning to breathe free, The wretched refuse of your teeming shore. Send these, the homeless, tempest-tossed to me…”. Such generosity was suited to a new nation with huge empty spaces and rapidly growing industry in need of a work force. The situation of a “full” nation in a time of economic downturn is quite different. What is to become of the tens of thousands of vigorous young men arriving on Italian shores where there is nothing for them to do except sell African trinkets on the sidewalks of tourist centers? To make matters worse, the great contemporary thrust of technical innovation aims at replacing more and more workers with robots. Leftist denial of the problem leaves its exploitation and resolution to the extreme right.
Some leftist politicians in Italy, such as Stefano Fassina of the Sinistra Italiana are waking up to this need. A left that dogmatically ignores the real concerns of the people is doomed. A bold, honest, imaginative left is needed to champion Italians’ independence from both German-imposed austerity and the expensive military adventurism demanded by the United States. But the interlaced problems created by unregulated globalization do not lend themselves to easy solutions.
Diana Johnstone is a political writer, focusing primarily on European politics and Western foreign policy. She received a Ph.D. at the University of Minnesota and was active in the movement against the Vietnam War. Johnstone was European editor of the U.S. weekly In These Times from 1979 to 1990, and continues to be a correspondent for the publication. She was press officer of the Green group in the European Parliament from 1990 to 1996. Her books include Queen of Chaos: The Misadventures of Hillary Clinton, CounterPunch Books (2016) and Fools’ Crusade: Yugoslavia, NATO and Western Delusions, Pluto Press (2002).
Euroskeptic coalition in Italy agrees on new government bid
RT | May 31, 2018
Italian anti-establishment parties that won the latest general election have reached an agreement for a new bid to form a coalition government, averting the possibility of new snap election.
Former International Monetary Fund official Carlo Cottarelli, who was appointed by President Mattarella as interim head of the government until a potential to new election, formally gave up his mandate after the success of the talks was announced.
“All the conditions have been fulfilled for a political, 5-Star and League government,” 5-Star chief Luigi Di Maio and League leader Matteo Salvini said in a joint statement on Thursday. The two parties, which lie on the opposite sides of the left-right political spectrum, negotiated the revival of their coalition for several hours.
The new bid for the cabinet keeps Giuseppe Conte, a law professor close to 5-Star, as the proposed prime minister. Paolo Savona, whose candidacy for the position of the economy minister was vetoed by President Sergio Mattarella earlier this week, is no longer proposed for the job. He was replaced in the proposed government by Giovanni Tria, an economy professor at Rome’s Tor Vergata University, according to Reuters. Tria is a Eurosceptic, but he didn’t argue for a possible withdrawal of Italy from the euro zone, which was the reason for Savona getting blocked.
According to the parties, the League’s Salvini will lead interior ministry in the would-be cabinet while Di Maio of the 5-Star will take portfolios of labor and industry under a newly-created ministerial position.
Enzo Moavero, a former EU affairs minister under Prime Minister Mario Monti, is slated ty become foreign minister in the Conte government. Savona was proposed for the consolation prize, the position of EU affairs minister.
“Maybe finally we have made it, after so many obstacles, attacks, threats and lies,” Salvini said on Facebook shortly after the deal was announced.
Lebanon launches search for first oil & gas reserves despite Israeli threats
RT | May 30, 2018
Beirut has announced the start of its oil and gas exploration for offshore energy reserves in the Mediterranean after approving a plan submitted by a consortium of France’s Total, Italy’s Eni and Russia’s Novatek.
Energy and Water Minister Cesar Abi Khalil said Lebanon plans to launch a second offshore licensing round by the end of 2018 or early 2019.
In February, the country signed its first offshore oil and gas exploration and production agreements with the Total-Eni-Novatek consortium for offshore Blocks 4 and 9.
Part of Block 9 contains waters disputed with neighboring Israel but the consortium said it had no plans to drill in that area. Lebanese authorities gave the go-ahead this week for exploration of the two blocks to begin, said Khalil.
The exploration period can last up to three years and the first well is expected to be drilled in 2019, providing all government departments grant necessary licenses and permissions “on time and without delay”, he added.
The minister explained that drilling would determine whether Lebanon had commercial reserves and, if so, their scale. Lebanon shares the Levant Basin in the eastern Mediterranean with Israel, Cyprus, and Syria. A range of big sub-sea gas fields have been discovered in the area since 2009.
However, the country was far behind Israel and Cyprus in exploring and developing its share of resources as a result of political issues over the past few years, and a dispute with Israel over Lebanon’s southern maritime border.
Israel had earlier threatened Lebanon over drilling in areas which it considers to be disputed. It warned Lebanon that it would pay a “full price” if another war breaks out between the two countries.
Three months ago, Lebanese President Michel Aoun appealed to US Secretary of State Rex Tillerson, asking for Washington’s “effective role” in settling the dispute with Israel over offshore oil drilling areas. After the US proposed sharing the offshore blocks, Lebanon rejected its offer to “help.”
The US proposal reportedly specified that the Lebanese would take up 65 percent of the disputed sections of the shelf. Commenting on the proposal Aoun said Lebanon will not give Israel a “millimeter.” He underlined that the offshore energy blocks are located in Lebanon’s waters and thus are within Beirut’s exclusive economic zone.
Lebanon and Israel’s dispute runs over a triangular area of around 860 square kilometers (332 square miles) of waters, which could contain huge reserves of natural gas and maybe even crude oil.


