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Trichet, call it ‘austerity’ or ‘danger control’
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With Europe still mired in recession, euronews asked the former President of the European Central Bank, Jean-Claude Trichet, to consider the results of efforts to stabilise the region, and if he still thinks the eurozone is taking the right medicine.
Giovanni Magi, euronews: “Are austerity policies really the best solution, or, as some economists are saying, are they simply an application of counterproductive dogma?”
Jean-Claude Trichet, former ECB President: “I believe that words count. We talk about austerity as much in the United States as in England, or even in Japan, in a country with a very big current account payment deficit, like Greece or other countries which are in excess. The term [austerity], I think, is inappropriate.
“There is a need for wise, healthy management, when one is spending more than one is earning. For what reason? It is not really a choice but an obligation, because, I’d say, generous donors are no longer to be found – eternally ready to finance the countries that spend far more than their income. And it seems to me that sound management is the best way to lay the groundwork for future growth and job creation in the future.”
euronews: “But we get the impression that, on the world chess board, Europe seems to stand alone with its obsession for public accounts.”
Trichet: “No, I don’t think we can say that. There is major pubic debate in the United States, over whether the first thing to do is to place the stress on putting the public finances back into working order, or not. This is also under debate in England: austerity or growth. Europe is still the epicentre of the global crisis of sovereign debt risk and, therefore, budget crises. Unfortunately, that is partly its own fault, because, in some cases it was negligent.
“It was and still is the epicentre, if I may say. But I think we still have to look at things clearly: Europe has made enormous progress. It is still at the very crux of this crisis but it has distanced the risk of catastrophe thanks to the decisions it has taken – governments, the European institutions and the Central Bank. Therefore, we are now at a stage where we absolutely must consolidate everything which might permit a return to growth.”
euronews: “What lesson can we draw from the Greek or Cypriot crisis? Perhaps some economies were too feeble to be admitted into the euro zone? Or are the stronger euro zone economies not ready to pay a high cost to protect the poorer members?”
Trichet: “First of all, saying that countries are necessarily richer or poorer is debatable, you know. Our problem today is that there are countries, fortunately relatively numerous, that are competitive, that sell their goods and services comfortably on the domestic, European and world markets, and have good reasons for that, because they have a good grip on their costs and structural reforms; and then there are countries that have mastered their costs far less well, and which have not reformed structurally, and these countries are evidently in difficulty.
“So, I believe that the great lesson is that there has to be a staggering improvement in the economic and budgetary governance of the whole euro zone. It has to be very firm when this or that country becomes dangerous to itself and to the entire zone.”
euronews: “Are you in favour of a European economic and budgetary federation? What should its criteria be, and do you think that would be a realistic route for Europe to take today?”
Trichet: “I do believe we need to go further along the path of a European economic and budgetary federation, which obviously would mean a new change in the Treaties. Personally, I think there are several possibilities to consider. One of them seems imaginable to me, though I don’t say it’s the only one, and I’m not saying it’s necessarily the best, but I think it fulfils three criteria.
“One: it is efficient, which I will develop for you; two: it is democratic; and three: it respects the principle of subsidiarity. These three things appear essential to me. If a country manages its affairs very badly, does not respect recommendations made to it by the European Commission and the Council, and in doing this endangers the euro zone’s stability, as we have seen amply in the crisis, then there are sanctions that are supposed to act as a deterrent – sanctions in the form of fines. I don’t believe that works. It hasn’t worked in the past and I don’t think it will in the future.
“Instead, what I myself see as more realistically imaginable is, instead of fines: activate a federal decision process at the level of the European institutions taken together. The Commission plays the role of government, it anticipates a government; the Council of governments is a sort of upper chamber, a Senate, and the European Parliament with its members elected by direct universal suffrage and who will be elected in the next European poll, act as the lower chamber. I suggest that the Commission say: here is what needs to be done; let the Senate, the upper chamber, think about it and then say to the European Parliament: here’s what we think, and then the European Parliament decides – evidently limited to the representatives of the euro zone, and after contact with the national parliaments.
“That is a federation – we have ‘activated’ federal institutions. But they respect the principle of subsidiarity, because this is not applied generally; it would only be in absolutely exceptional cases, and when the stability of the whole zone is in question. It’s evidently democratic. The ultimate decision is taken by the representatives of the people, and that makes it relatively certain that these are not just empty words, and that this is not an ineffective dissuasive measure of fines.”
euronews: “There is an alignment being formed in Europe, notably with France, Italy and Spain, who are adopting an approach of reasoning by dialogue with the policy of German Chancellor Angela Merkel. How do you see that?”
Trichet: “I don’t share that feeling. I am too deeply attached to the friendship among Europeans, and of course the friendship between France and Germany, to either rule out or not see that, beyond this or that agitation, there is a real will to move forward together, and a real will to overcome the difficulties that Europe has encountered systematically, that it has dealt with and responded to in a way that is indisputable when we look at everything that has been done at this terribly difficult time.”
More about: ECB, European economy, Jean-Claude Trichet
Copyright © 2013 euronews
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European Commission shelves olive oil jug ban after outcry
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The European Commission has shelved a proposed stricter rule on how restaurants can serve olive oil amidst public outcry and accusations of meddling bureaucracy.
Commissioner Dacian Cioloş, responsible for agriculture and rural development, said today at the mid-day press conference at the European Commission that he was withdrawing the proposition.
“I’ve decided to withdraw this proposal and not submit it for adoption,” Ciolos said as he attempted to deflect a barrage of pointed questions. “I wanted to come here today to demonstrate that I’ve been very alive to the current debate in the press.”
The aborted regulation planned that, from January 1, 2014, eateries would be banned from serving oil to diners in small glass jugs or dipping bowls, and forced instead to use pre-sealed, non-refillable bottles that must be disposed of when empty.
The European Commission said the move was designed to improve hygiene and reassure consumers that olive oil in restaurants has not been diluted with an inferior product. The Commission also said its proposal was supported by 15 out of 27 EU member governments, including the continent’s main olive oil producers – Italy, Greece, Spain and Portugal – which are among the countries worst affected by the euro crisis.
UK Prime Minister David Cameron had criticized the ban, saying it was ““exactly the sort of area that the European Union needs to get right out of”.
German newspaper Sueddetsche Zeitung described the plan as “the weirdest decision since the legendary curvy cucumber regulation”, referring to now-defunct EU rules on the shape of fruit and vegetables sold in supermarkets.
Olive oil isn’t quite yet off the European Commission’s menu. To “meet objectives concerning quality” for consumers, Commissioner Cioloş has invited restaurants, hotels and consumers associations to meet next week in Brussels to discuss promoting olive oil quality for consumer without disproportionate regulations, a EC spokesman tweeted.
With Reuters
More about: Agriculture, Brussels, EU Commission, European Union
Copyright © 2013 euronews
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US war crime whistle-blower Manning starts pre-trial hearing
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The first day of the final pre-trial hearing in the case against WikiLeaks whistle-blower PFC Bradley Manning has begun.
Manning has returned to Fort Meade, where he has pleaded guilty to reduced charges and faces up to 20 years in prison. Military prosecutors are aiming to convict him of the greater offense of “aiding the enemy” which carries a maximum life sentence.
Manning, 25, has said he leaked the documents because he thought Americans had a right to know “the true cost of war”.
During the pretrial hearing, the court will discuss how to handle classified material that will be used as evidence in the trial so that the court can remain open to the press and public. Options could include giving unclassified summaries of classified material and using code words to refer to classified information.
The army private, who was nominated for a Nobel Peace Prize, shared around 700,000 secret documents with WikiLeaks, including the controversial video known as “Collateral Murder” that shows the killing of Iraqi civilians and two Reuters journalists.
Speaking to the court in February, Manning said “I believed that if the general public, especially the American public, had access to the information…this could spark a domestic debate on the role of the military and our foreign policy in general.”
Protests were held outside Fort Meade by supporters of Manning.
Since Manning’s arrest there has been much controversy regarding his treatment during his incarceration. An organisation supporting the soldier claims he was kept in solitary confinement for 10 months, stating: “During this time, Bradley was denied meaningful exercise, social interaction, sunlight and on a number of occasion he was forced to stay completely naked”. In 2011 over half a million people signed a petition calling on President Obama to end the “isolation and torture of Bradley Manning”.
Manning’s case has also attracted the support of several high-profile personalities including film-maker Michael Moore, linguist and philosopher Noam Chomsky and most recently fashion designer Vivienne Westwood, who wore a Bradley Manning badge saying “truth” to the recent MET ball.
The main trial is set to begin on June 3 and is expected to run for a month.
More about: American army, USA, WikiLeaks
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Five Yemenis executed and publically displayed in Saudi Arabia
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Saudi Arabia has executed five Yemenis accused for killing a Saudi national and committing robberies in several towns in the kingdom, the interior ministry stated.
The five men were executed in the southwestern town of Jizan and their bodies were displayed in public, near a university, according to an eyewitness.
In a photo uploaded in Twitter, five men are seen hanging from a rope tied to their waists on a horizontal bar between two cranes. It remains unclear whether they were beheaded or shot.
The number of people executed in Saudi Arabia this year reached 46, according to news agency AFP.
Saudi Arabia’s interior ministry said that Khaled, Adel and Qassem Saraa, Saif Ali al-Sahari and Khaled Showie al-Sahari had formed a gang which committed “several crimes in various regions in the kingdom and robbed stores”.
The gang had killed Ahmed Haroubi, a Saudi, by beating him up and strangling him, the ministry said.
Murder, apostasy, armed robbery, rape as well as drug trafficking are all punishable by death under Saudi Arabia’s strict version of sharia, or Islamic law.
The death penalty in the world. Map by euronews
More about: Execution, Saudi Arabia, Yemen
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European cinema in crisis ?
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The fizz has long come off the European Film industry, even if the champagne corks are popping in Cannes.
The financial crisis of 2007 has hit the business hard, subsidies being cut, even in countries which previously feather bedded the industry. Spain for example has seen state aid go from 124 million euros down to just 55 million.
It’s not just the present that is the concern. The industry may also be setting up problems for the future. The number of films made in the European Union is falling. This may not matter right now, but it will do in the coming months and years.
The only bright star at the moment is the UK. The now reliable banker, James Bond, saw huge success with the franchise’s latest outing, Skyfall. It notched up a box office of more than a billion dollars worldwide.
But fewer people are going to the movies ….. after a slight increase in 2011, a downward trend can be seen for 2012. This may be a reflection of the economic times.
Even in France, the cold winds of recession are blowing. State-run France Televisions, which runs a group of national TV networks, will reduce its movie investment by three million euros this year.
Euronews interview with Claude-Eric Poiroux, Director General of Europa Cinemas
Euronews:
The film industry is not just festivals, it is also a business, there are cinemas which need to make money. Given the crisis how are they performing ?
C-E. Poiroux:
The attendance figures for 2012 are quite a bit lower which therefore means that there is still a slowdown and there may be the beginning of a crisis. We do not know exactly what will be the outcome. What is happening across Europe is also quite uneven, not all countries are in the same situation. Spain, for example, is experiencing a real crisis for two reasons …. there is a crisis in the country as a whole, then there is an additional crisis in cinema. It has suffered from two or three decisions taken by the government, including that of increasing VAT, from 8 to 21 per cent. And at the same time there is a crisis in production because what we seeing today, may not be what is actually happening in terms of creation, production, investment, the type of movies that is, and also the number of being being made in Europe we’ll see the effects of those in a few months or years.
Euronews:
In times of crisis there are some styles of films that work better than others?
C-E. Poiroux:
We used to say in general cinema is not a victim of [economic] problems because it is a safe haven. We take refuge in the theatre [it’s where] we go to forget what is happening outside. This is what happened in the past several times. Now there is always a little more luck compared to other [sectors of the economy] they’re more affected. Now we also think that [going to] the movies also costs. Fortunately we can go into a cinema and not pay very much. This is not the most expensive hobby and [get] a performance of great quality. So we can say the relationship between quality and price is still something [that is] attractive to the public. If we want the public to continue to come and find escapism well there will be perhaps a change in the type of films. The movies may have to become [more] entertainment. Maybe a little less a place of reflection more where is a certain pleasure to be found.
Euronews:
So how we can summarize the crisis of European cinema in two or three words?
C-E. Poiroux:
I think that today there are still questions asked because many countries do not really have the choice to understand culture is essential as a response to the crisis. One of the concerns we feel in some countries, particularly Spain, Italy as well, and in some Central European countries: [in] Hungary, it is clear that today there are still things which threaten the existence of a cinema that Europe knows. …arthouse cinema which Europe is very good at, which can influence the public. The movies are really powerful, and should not be hampered, should be allowed to express itself.
More about: Cinema, Economic crisis, European Union
Copyright © 2013 euronews
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