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    Failing to Protect the Independence of the European Commission

    I have always believed that the independence of members of the European Commission (EC) was a keystone of successful European integration. Commissioners are obliged by their oath of office to seek a European solution to problems, rather than just seek a balance between conflicting national interests. They have done so ever since 1958. This is why European integration has succeeded, while integration efforts on other continents have failed under the weight of national egoism.

    As the European Union grows, the independence of commissioners from national politics has become ever more important. Some believe the European Commission is too large. From an efficiency point of view, they have a point. But Ireland, among others, has insisted that despite this, each member state should have one of its nationals as a member of the commission at all times.

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    But if the one-commissioner-per-member-state rule is to be upheld as the EU enlarges, commissioners from all states — large and small — must demonstrate that they put European interest first and are not subject to the vagaries and passions of politics in their country of origin. In other words, European commissioners must be independent. All member states must be seen to respect this.

    This is why I am deeply troubled by the attitude taken by the Irish government, and then by President Ursula von der Leyen of the European Commission, to call for Phil Hogan to resign as EU trade commissioner. Both of them failed in their understanding of the European Union and of one of its vital interests — namely the visible independence of members of the European Commission from the politics of any EU state, large or small.

    I was genuinely shocked by what happened. Late in the evening of August 22, leaders of the Irish government called on Hogan to “consider his position.” That means to resign. They piled on the pressure thereafter, with a further statement on August 23 containing a political determination that he had broken the government’s quarantine rules to combat the spread of COVID-19 after returning to Ireland from Belgium. Hogan resigned on August 26. That was his decision and one he was entitled to make.

    Lessons From This Precedent

    But there are profound lessons to be learned by President von der Leyen — and by the European Commission as a whole — as to how and to whom commissioners should be held accountable, and a need to understand what this precedent means for the future political independence of commissioners from their home governments. Separately, there are also questions to be asked about the internal management of and the collegiality of the EC.

    I will set out my concerns here, drawing on the words of the EU treaty, which I helped draft as a member of the Convention on the Future of Europe.

    On August 26, von der Leyen clearly withdrew any active support from Commissioner Hogan and unquestioningly accepted the line of the Irish government. This influenced him to resign from his position. In this action, I contend that the president did not fulfill all of her responsibilities under the treaties. I know she faced genuine political difficulty. But the treaties were framed to deal with fraught political situations while preserving the independence of the EC and due process.

    Embed from Getty Images

    The European Commission is the guardian of EU treaties and should be seen to defend the rules laid down in the treaties under all circumstances, even when it is politically difficult. Article 245 of the treaty requires member states to respect the independence of commissioners. Ireland is bound by that article, after having ratified it in a referendum. One should note that Article 245 refers to respecting the independence of commissioners individually, not just to the EC as a whole.

    It is for the Irish government to say whether publicly demanding a commissioner’s resignation for an alleged breach of Irish rules is compatible with the Irish government’s treaty obligation under Article 245. But it had other options,

    If a commissioner is visiting a member state for any reason, he or she is subject to the laws of that state on the same basis as any other citizen. A visiting commissioner would not be above the law, nor would they be below it either. If they breached the law, due process in the courts ought to be applied — as with any citizen. This is what would have happened if the visiting commissioner was from any country other than Ireland and had experienced the difficulties that Hogan did, and due process would have been followed.

    The statements of the Irish government, and the unsatisfactory explanations by Hogan, created political problems for von der Leyen. She had to do something, but not necessarily what she did. Yet there were options available to her, which she inexplicably failed to use or consider.

    Rules Ignored

    Commissioners are subject to a code of conduct. Under that code, there is an ethics committee to determine if its guidelines have been breached. If the matter is urgent, there is provision for a time limit to be set for a report by the committee. Nonetheless, a reference to the ethics committee would have allowed for due process and a calm and fair hearing. More importantly, using this process would also have asserted the independence of the European Commission as an institution.

    The code says that it is to be applied “in good faith and with due consideration of the proportionality principle,” and it allows for a reprimand that does not warrant asking the commissioner to resign. Due to the course followed, we will never know if there was any breach of the code at all by Hogan.

    President von der Leyen’s failure to use these mechanisms seems to be a serious failure to defend due process and proportionality and to protect the independence of individual commissioners, as was required by the treaty. The EC and the European Parliament should inquire into why she did not do so. There are consequences now for the viability of the code of conduct if it is not to be used in a case like this.

    Criteria Not Applied

    Was what Phil Hogan did a resigning matter anyway? Article 247 allows for only two grounds for asking a commissioner to resign. These are that he or she is “no longer being able to fulfil the conditions for the performance of [their] duties” or “has been guilty of serious misconduct.” I do not think either condition was met in Hogan’s case.

    Hogan would have been fully capable of carrying out his duties while the ethics committee did its work. Instead, his position is now effectively vacant.

    Most people I have spoken to do not think the breaches committed by Hogan — while foolish — amounted to “serious misconduct” within the meaning of Article 247. Failure to recollect all the details of a private visit over two weeks, or to issue a sufficient apology quickly enough, may be political failing, but they hardly rise to the level of “serious misconduct.” Any deliberate and knowing breach of quarantine measures should have been dealt with in Irish courts without fuss.

    In any event, von der Leyen would have been far wiser to have gotten an objective view on all of this from the ethics committee before allowing Hogan to resign.

    Why Did the European Commission Not Meet?

    Another issue is the president’s failure to call an EC meeting if she was considering that a commissioner should resign. Under Article 247, it is the EC — not the president alone — that can make a commissioner resign, and even then it must be approved by the European Court of Justice. These safeguards were put in the treaty to protect the independence of the European Commission. They were ignored in this case.

    The subsequent weakening of the institutional independence of the commission is very damaging to European integration and to the interests of smaller EU states. This should be of concern to the European Parliament.

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Donald Trump hopes for election boost from Kosovo-Serbia talks

    The leaders of Kosovo and Serbia will meet at the White House on Thursday and Friday, in an encounter that some see as a push for a diplomatic win for Donald Trump to brandish during his re-election campaign.Kosovo’s prime minister, Avdullah Hoti, will meet with the Serbian president, Aleksandar Vučić, in talks that Trump aides say will be primarily about economic issues between the two countries, but may pave the way to a broader deal.The goal of the talks is “to create economic development that will then somehow change the dynamic amongst the political class”, said a senior adviser to Trump in a call with reporters earlier in the week. The adviser said it was not yet clear whether Trump would take part in the meetings – suggesting he would only meet the two leaders if there is a deal to be signed.Kosovo broke from Serbia after a war and Nato bombing campaign, and declared independence in 2008, but the two sides have no relations.The White House diplomatic push, led by the Trump loyalist Richard Grenell, has irritated some European diplomats, who say the EU’s long-running mediation process should be given priority.It has also prompted fears that a land swap could be on the table as part of the deal, which many believe would have knock-on effects in other parts of the Balkans. Grenell has long denied that a land swap is under consideration.Grenell, who has courted controversy as Trump’s ambassador to Germany and then as acting director of national intelligence, has also attracted criticism for his negotiation tactics. In April, Kosovo’s ousted prime minister Albin Kurti accused Grenell of mounting a coup to overthrow him so he could present Trump with a diplomatic success in an election year. “My government was not overthrown for anything else but simply because Ambassador Grenell was in a hurry to sign an agreement with Serbia,” said Kurti.A meeting at the White House planned in late June fell apart at the last minute after prosecutors at a court in The Hague announced they had filed a draft indictment against Kosovo’s president, Hashim Thaçi. The statement was released as Thaçi was already en route to Washington.Now, two months before the US election, the meeting will finally take place, with the emphasis on economic progress.“We can either sit around and continue talking about political issues that get us nowhere, or we can do something that President Trump thinks might work, and we’re going to test it to see if it works,” said the Trump adviser.The EU-brokered talks were on hold for two years after Kosovo imposed import tariffs on Serbian goods, but have recently resumed. Meetings in Brussels, including expert dialogue and top-level discussions, are planned for next week.The EU envoy for Kosovo-Serbia talks, Miroslav Lajčak, has said an EU-brokered deal to normalise relations between Belgrade and Pristina could be ready soon.“Let’s see how much time we need, but I am speaking about months, I am not speaking about years,” he said at a forum in Slovenia this week. “Both parties are committed, both parties are serious, respecting each other.” More

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    Negotiating the End of Brexit

    It is increasingly likely that, unless things change, on January 1, 2021, we will have a no-deal Brexit. That would mean the only deal between the European Union and the United Kingdom would be the already ratified EU withdrawal agreement of 2019.

    There are only around 50 working days left in which to make a broader agreement for a post-Brexit trade deal between the UK and the EU. The consequences of failing to do so for Ireland will be as profound — and perhaps even as long-lasting — as those caused by the COVID-19 pandemic.

    A failure to reach a UK-EU agreement would mean a deep rift between the UK and Ireland. It would also mean heightened tensions within Northern Ireland, disruptions to century-old business relations and a succession of high-profile court cases between the EU and the UK dragging on for years.

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    Issues on which a deal could have easily been reached in amicable give-and-take negotiations will be used as hostages or leverage on other matters. The economic and political damage would be incalculable. And we must do everything we can to avoid this.

    Changing the EU trade commissioner, Phil Hogan, under such circumstances would be dangerous. Trying to change horses in midstream is always difficult. But attempting to do so at the height of a flood — in high winds — would be even more so.

    The EU would lose an exceptionally competent trade commissioner when he was never more needed. An Irishman would no longer hold the trade portfolio. The independence of the European Commission, a vital ingredient in the EU’s success, would have been compromised — a huge loss for all smaller EU states.

    According to the EU’s chief negotiator, Michel Barnier, talks between the European Union and the UK, which ended last week, seemed at times to be going “backwards rather than forwards.” The impasse has been reached for three reasons.

    The Meaning of Sovereignty

    First, the two sides have set themselves incompatible objectives. The European Union wants a wide-ranging “economic partnership” between the UK and the EU, with a “level playing field” for “open and fair” competition. The UK agreed to this objective in the joint political declaration made with the EU at the time of the withdrawal agreement, which was reached in October 2019.

    Since then, the UK has held a general election with the ruling Conservative Party winning an overall majority in Parliament, and it has changed its mind. It is now insisting, in the uncompromising words of it chief negotiator, David Frost, on “sovereign control of our own laws, borders, and waters.”

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    This formula fails to take account of the fact that any agreement the UK might make with the EU (or with anyone else) on standards for goods, services or food items necessarily involves a diminution of sovereign control. Even being in the World Trade Organization (WTO) involves accepting its rulings, which are a diminution of “sovereign control.” This is why US President Donald Trump does not like the WTO and is trying to undermine it.

    The 2019 withdrawal agreement from the EU also involves a diminution of sovereign control by Westminster over the laws that will apply in Northern Ireland and thus within the UK. That agreement obliges the UK to apply EU laws on tariffs and standards to goods entering Northern Ireland from Britain — i.e., going from one part of the UK to another.

    This obligation is one of the reasons given by a group of UK parliamentarians — including Iain Duncan Smith, David Trimble, Bill Cash, Owen Paterson and Sammy Wilson — for wanting the UK to pull out from the withdrawal agreement, even though most of them voted for it last year.

    Sovereignty is a metaphysical concept, not a practical policy. Attempting to apply it literally would make structured and predictable international cooperation between states impossible. That is not understood by many in the Conservative Party.

    The Method of Negotiation

    Second, the negotiating method has proved challenging. The legal and political timetables do not gel. The UK wants to discuss the legal texts of a possible free trade agreement first and leave the controversial issues — like competition and fisheries — until the endgame in October. But the EU wants serious engagement to start on these sticking points straight away.

    Any resolution of these matters will require complex legal drafting, which cannot be left to the last minute. After all, these texts will have to be approved by the European and British Parliaments before the end of 2020. There can be no ambiguities or late-night sloppy drafting.

    The problem is that the UK negotiator cannot yet get instructions on the compromises he can make from Boris Johnson, the British prime minister. Johnson is instead preoccupied with combating the spread of the COVID-19 disease, as well as keeping the likes of Duncan Smith and Co. onside. The prime minister is a last-minute type of guy.

    Trade Relations With Other Blocs

    Third, there is the matter of making provisions for the trade agreements the UK wants to make in the future with other countries, such as the US, Japan and New Zealand. Freedom to make such deals was presented to UK voters as one of the benefits of Brexit.

    The underlying problem here is that the UK government has yet to make up its mind on whether it will continue with the European Union’s strict precautionary policy on food safety or adopt the more permissive approach favored by the US. Similar policy choices will have to be made by the UK on chemicals, energy efficiency displays and geographical indicators.

    The more the UK diverges from existing EU standards on these issues, the more intrusive the controls on goods coming into Northern Ireland from Britain will have to be, and the more acute the distress will be for Unionist circles in Northern Ireland. Issues that are uncontroversial in themselves will assume vast symbolic significance and threaten peace on the island of Ireland

    The UK is likely to be forced to make side deals with the US on issues like hormone-treated beef, genetically modified organisms and chlorinated chicken. The US questions the scientific basis for the existing EU restrictions and has won a WTO case on beef over this. It would probably win on chlorinated chicken, too.

    If Britain conceded to the US on hormones and chlorination, this would create control problems at the border between the UK and the EU, wherever that border is in Ireland. Either UK officials would enforce EU rules on hormones and chlorination on the entry of beef or chicken to this island, or there would be a huge international court case.

    All this shows that, in the absence of some sort of partnership agreement between the EU and the UK, relations could spiral out of control. Ireland, as well as the European Union, needs its best team on the pitch to ensure that this does not happen.

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Lies, suspicion and silence in the Tory party | Letters

    In your admirably concise analysis of the government’s failings over the past week, there are two flaws: one of them delusional, the other an omission (The Guardian view on Boris Johnson’s government: an omnishambles week, 20 August).First the delusion: “Much depends on Conservatives with consciences” may have made sense until 12 months ago. Then MPs who dared to challenge the leadership on a range of topics, not just Brexit, but crucially the unlawful prorogation of parliament, were thrown out of their party. Others who shared those opinions decided not to seek re-election, and as a consequence the Conservative parliamentary party can now easily be passed off as a slightly more media-friendly version of Farage’s Brexit party. If any are left who have the conscience necessary to challenge “the New Tory party”, they will be fearful of showing themselves until such time as things are much worse and they have no alternative.The omission: aside from citing one opinion poll that suggests Labour is beginning to eat into the Tory lead, the opposition does not feature.I hope that MPs from all other parties are hatching plans to harry ministers at every turn, challenge every decision and use the full force of parliamentary procedure to expose the lies and to investigate the growing suspicion that public money is being misused to feather friends’ nests.Les BrightExeter, Devon• Martin Kettle quite rightly sees Boris Johnson as a threat to parliamentary democracy (Johnson vowed to strengthen parliament. Yet he and Cummings are silencing it, 19 August). But we should not be surprised. “Johnson talked about how MPs didn’t count, they were just marriage-guidance counsellors on a Friday,” Tony Benn wrote about a radio discussion between the two in 1997. “I just went for him. I shouldn’t lose my temper, but actually it was quite good.” And good too if a few more people now lose their temper about what Kettle chillingly identifies as already almost amounting to “a quiet coup”.David KynastonNew Malden, London• What an amazing speech by Barack Obama to the Democratic national convention. Perhaps Theresa May could download it, replace the words Donald Trump with Boris Johnson, president with prime minister and America with the United Kingdom, and then deliver it in the Commons. If only parliament was sitting.Elizabeth BrettWelling, Kent• Join the conversation – email guardian.letters@theguardian.com• Read more Guardian letters – click here to visit gu.com/letters More

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    'Never give up': Greek asylum fight is gifted student's hardest lesson

    Europe’s dreamers

    ‘Never give up’: Greek asylum fight is gifted student’s hardest lesson

    Amadou Diallo arrived in Greece from west African nearly four years ago.
    Composite: Enri Canaj/Magnum

    Amadou Diallo fled child labour in an African gold mine. Only by proving his ability to an elite university has he won the right to a future in Europe
    ‘We want to build a life’: Europe’s paperless young people speak out
    by Fahrinisa Campana

    Main image:
    Amadou Diallo arrived in Greece from west African nearly four years ago.
    Composite: Enri Canaj/Magnum

    From the stack of books Amadou Diallo took with him last summer to the Greek islands, it was a biography of Frederick Douglass that kept finding its way back to the top. One quote from the 19th-century slavery abolitionist particularly resonated: “Once you learn to read, you will be forever free.”
    Diallo was on Sifnos, a holiday destination for cultured Athenians and well-heeled foreign families. An asylum seeker from Guinea, he was working long hours in a hotel. At night he would read the life stories of great men, wondering what shape his own freedom might take.
    Still just 20, the boy who arrived alone from west Africa nearly four years ago has seized every chance given to him. From boutique hotels on fashionably offbeat islands, to a private school where diplomats send their children, he has seen a vision of what Europe has to offer. He has read voraciously and worked hard to educate himself and to belong. But his place in this new world relies on Greece’s asylum process.
    Q&A Who are Europe’s dreamers?
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    Dreamers is the US term collectively given to young people without legal immigration status who were brought to the US as children. Some young people living in Europe without legal status now also call themselves ‘dreamers’ because their struggle against hostile European migration and asylum policies echoes the US campaign. Between 3.9 and 4.8 million people in Europe are believed to be living without residency permits, about 65% of whom are under 35 years old, according to the Pew Research Center. In the UK, a recent University of Wolverhampton study commissioned by the mayor of London estimated there are 332,000 children and young people living undocumented in the UK, including 106,000 children born in the country. Estimating numbers of undocumented people necessarily involves guesswork – and the methodologies are often criticised – but it is thought there are millions of dreamers across Europe. 

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    Diallo did not grow up with dreams of leaving Guinea. It was only after his father died that his life pitched into something that could have been imagined by a west African Dickens. Along with his younger brother, he was sent to live with his stepmother, who he says was abusive and sold him to the owner of a gold mine.
    His life at the mine was essentially one of forced labour. The first time he tried to escape, he was caught and brutally punished.
    Unbowed, he tried again. Locked in with other children, he screamed that there was a fire. The guards unlocked the door and in the chaos he managed to slip away.
    He crossed the border into Mali and took the route north that would eventually lead him to Turkey. From there, he caught a boat to the Greek island of Lesbos. When the 16-year-old finally reached Athens, two months after leaving Guinea, he was spotted by an aid worker who brought him to a children’s shelter run by the Home Project, a non-profit organisation. It focuses on sheltering lone children who, like Diallo, came in their thousands and ended up surviving on the streets, in camps or detention centres. As an unaccompanied minor he was classed as vulnerable and granted temporary protection.
    Through the Home Project he met Anna-Maria Kountouri, an immigration lawyer. She explains that minors have a race against time to gain legal status to remain in Europe, as when they reach 18 it is more difficult.
    To secure his future in Europe, Diallo needed the Greek authorities to accept his asylum claim. But the rejection rate in Greece for unaccompanied minors has risen sharply in recent years under new hardline asylum laws. Children whose cases are rejected are not deported but coming of age sweeps away that protection.
    Between June 2013 and January 2020 a total of 7,558 asylum applications from unaccompanied minors were processed in Greece, of which 63% were rejected. Of the 186 applications processed in January 2020, 71% were rejected. More

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    Why a Biden presidency might not mean a return to pre-Trump foreign relations

    European leaders, desperate for an end to the Trump presidency, are being warned that four years of Joe Biden may present them with new challenges and not a simple restoration of the benign status quo in transatlantic relations prior to 2016.An evolving Biden doctrine about ending “forever wars” and protecting American workers from Chinese competition would require collective military and economic commitments from the EU that it is still ill-equipped to meet, foreign policy specialists have suggested.The overall tenor of the platform, emphasising post-Covid multilateralism and cooperation with fellow liberal democracies, is already welcome in Europe. Biden’s promised end to the institutionalised mayhem, animus towards allies and pandering to authoritarians will be a relief. Competence, reliability and dialogue may not be a high bar to set a presidency, but simple normality would amount to a revival of the idea of the west, such has been the chaos of the past four years.Forsaken multilateral institutions, such as the World Health Organization, would be rejoined, ending the US practice, in the words of Biden’s chief foreign policy adviser Tony Blinken, of simply going awol. “Ninety per cent of life is about showing up,” Blinken told Chatham House, adapting Woody Allen.Biden may seem to personify an old-school nostalgic Atlanticism of the foreign policy establishment. But the Democrat’s draft policy platform released last month reflects the influence of the progressive left, and an effort to absorb the lessons from the shock 2016 defeat.Matt Duss, Bernie Sanders’ foreign policy adviser, speaking to the European Council on Foreign Relations podcast, agreed that Biden had moved to the left, saying he had faced mobilisation on foreign policy from progressives in a way that Barack Obama never experienced. As a result, foreign policy is no longer a backwater in democratic politics, and new links between foreign and economic policy are being drawn.Many of the Obama-era foreign policy advisers now clustered around Biden, dismissed as a horror show by some on the left, also deny that they crave simple restoration, saying everything has changed since 2016.Stung by Hillary Clinton’s defeat, they recognise the populists’ claim to have better constructed a foreign policy to help Americans’ daily lives at home. William Burns, a former state department official under Obama and one of Biden’s many advisers, recently wrote: “The wellbeing of the American middle class ought to be the engine that drives our foreign policy. We’re long overdue for a historic course correction at home.”Jeremy Shapiro, a senior researcher with the European Council for Foreign Relations (ECFR), also says there has been a pressure on Democrats to make their foreign policy more relevant to daily American lives. “There was this sense that in the Obama administration foreign policy was a plaything of the elites divorced from Americans’ daily existence. The change from Obama to Biden is there will be more focus on America.”Without threatening tariff wars, the Biden platform hints at a new scepticism about globalism and free trade. In broader policy terms, Europe will welcome Biden’s commitment to the Paris climate change treaty, and to Nato, “the single most significant military alliance in the history of the world,” as Biden described the organisation to the Munich security conference in 2019. To the relief of Berlin, the withdrawal of US troops from Germany would stop. A more consistent approach to Turkey would be sought. More

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    Is Europe More United Than the US?

    During the Trump era, America increasingly seems like a motley collection of states brought together for reasons of territorial contiguity and little else. The conservative South is ravaged by a pandemic. The liberal Northeast waits patiently for elections in November to oust a tyrant. A rebellious Pacific Northwest faces off against federal troops sent to “restore order.” The Farm Belt, the Rust Belt and the Sun Belt are like three nations divided by a common language.

    The European Union, on the other hand, really does consist of separate countries: 27 of them. The economic gap between Luxembourg and Latvia is huge, the difference in median household income even larger than that between America’s richest and poorest states (Maryland and West Virginia).

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    European countries have gone to war with each other more recently than the American states (a mere 25 years ago in the case of former Yugoslavia). All EU members are democracies, but the practice of politics varies wildly from perpetually fragmented Italy to stolid Germany to ever-more illiberal Hungary.

    Despite these economic and political differences, the EU recently managed to perform a miracle of consensus. After 90 hours of discussion, EU leaders hammered out a unified approach to rebuilding the region’s post-pandemic economy.

    The EU is looking at an 8.7% economic contraction for 2020. But the coronavirus pandemic clearly hit some parts of the EU worse than others, with Italy and Spain suffering disproportionately. Greece remains heavily indebted from the 2008-09 financial crisis. Most of Eastern Europe has yet to catch up to the rest of the EU. If left to themselves, EU members would recover from the current pandemic at very different rates and several might not recover at all.

    Embed from Getty Images

    That’s why the deal is so important. The EU could have helped out its struggling members by extending more loans, which was basically the approach after 2009. This time around, however, the EU is providing almost half of the money in the new recovery fund — $446 billion — in grants, not loans. The $1.3-trillion budget that European leaders negotiated for the next seven years will keep all critical EU programs afloat (like the European structural and investment funds that help bridge the gap between the wealthier and the less wealthy members).

    Sure, there were plenty of disagreements. The “frugal four” of the Netherlands, Denmark, Austria and Sweden argued down the amount of money allocated to the grant program and the budget numbers overall. Germany has often sided with the frugal faction in the past, but this time Chancellor Angela Merkel played a key role in negotiating the compromise. She also managed to bribe Hungary and Poland to support the deal by taking “rule-of-law” conditionality off the table. Both countries have run afoul of the EU by violating various rule-of-law norms with respect to media, judiciary and immigration. Yet both countries will still be able to access billions of dollars from the recovery fund and the overall budget.

    Until recently, the EU seemed to be on the brink of dissolution. The United Kingdom had bailed, Eastern Europe was increasingly authoritarian, the southern tier remained heavily in debt, and the pandemic was accelerating these centrifugal forces. But now it looks as the EU will spin together, not spin apart.

    The United States, on the other hand, looks ever more in disarray. As Lucrezia Reichlin, professor of economics at the London Business School, put it, “Despite being one country, the U.S. is coming out much more fragmented than Europe.”

    The Coming Storm

    The Trump administration has been all about restarting the US economy. President Donald Trump was reluctant to encourage states to lock down in the first place. He supported governors and even armed protesters demanding that states reopen prematurely.

    And now that the pandemic has returned even more dramatically than the first time around, the president is pretending as though the country isn’t registering over 60,000 new infections and over a thousand deaths every day. Trump was willing to cancel the Florida portion of the Republican Party convention for fear of infection, but he has no problem insisting that children hold the equivalent of thousands of mini-conventions when they return to school.

    Europe, which was much more stringent about prioritizing health over the economy, is now pretty much open for business.

    The challenge has been summer tourism. Vacationers hanging out on beaches and in bars are at heightened risk of catching the COVID-19 disease — which is caused by the novel coronavirus — and bringing it home with them. There have been some new outbreaks of the disease in Catalonia, an uptick in cases in Belgium and the Netherlands, and a significant increase in infections in Romania. Belgium is already re-instituting restrictions on social contacts. Sensibly, a number of European governments are setting up testing sites for returning tourists.

    The EU is determined not to repeat what’s going on in Florida, Texas and California. It is responding in a more deliberate and unified way to outbreaks leading to an average of 81 deaths a day than the United States is responding as a whole to a very nearly out-of-control situation producing more than 900 deaths a day.

    The US isn’t just facing a deadly resurgence of the pandemic. Various economic signals indicate that the so-called “V-shaped recovery” — much hyped by the Trump administration — is just not happening. More people are again filing for unemployment benefits. People are reluctant to go back to restaurants and hang out in hotels. The business sector in general is faring poorly.

    “The sugar rush from re-openings has now faded and a resurgence of domestic coronavirus cases, alongside very weak demand, supply chain disruptions, historically low oil prices, and high levels of uncertainty will weigh heavily on business investment,” according to Oren Klachkin, lead US economist at Oxford Economics in New York.

    The Organization of Economic Cooperation and Development (OECD) released a report in July that offered two potential scenarios for the US economy through the end of the year. Neither looks good. The “optimistic scenario” puts the unemployment rate at the end of 2020 at 11.3% (more or less what it is right now) and an overall economic contraction of 7.3%. According to the pessimistic scenario, the unemployment rate would be nearer to 13% and the economic contraction at 8.5%.

    Much depends on what Congress does. The package that Senate Republicans unveiled last week is $2 trillion less than what the Democrats have proposed. It offers more individual stimulus checks, but nothing for states and municipalities and no hazard pay for essential workers.

    Unemployment benefits expired a few weeks ago, and Republicans would only extend them at a much-decreased level. Although Congress will likely renew the eviction moratorium, some landlords are already trying to kick out renters during the gap. The student loan moratorium affecting 40 million Americans runs out at the end of September.

    The only sign of economic resurgence is the stock market, which seems to be running entirely on hope (of a vaccine or a tech-led economic revival). At some point, this irrational exuberance will meet its evil twin, grim reality. On the other side of the Atlantic, the Europeans are preparing the foundation for precisely the V-shaped recovery that the United States, at the moment, can only dream about.

    The Transatlantic Future

    What does a world with a stronger Europe and a weaker America look like? A stronger Europe will no longer have to kowtow to America’s mercurial foreign policy. Take the example of the Iran nuclear deal, which the Obama administration took the lead in negotiating. Trump not only canceled US participation, but he also threatened to sanction any actors that continued to do business with Iran. Europe protested and even set up its own mechanisms to maintain economic ties with Tehran. But it wasn’t enough. Soon enough, however, the United States won’t have the economic muscle to blackmail its allies.

    Embed from Getty Images

    The EU has certainly taken a tougher stance toward China over the last couple years, particularly on economic issues. But in its negotiations with Beijing, the EU has also put far greater emphasis on cooperation around common interests. As such, expect the European Union to take full advantage of the US decline to solidify its position in an East Asian regional economy that recovers far more quickly from the pandemic than pretty much anywhere in the world.

    Europe is also well-positioned to take the lead on climate change issues, which the United States has forfeited in its four years of catastrophic backsliding under Trump. As part of its new climate pact, the EU has pledged to become carbon-neutral by 2050. The European Commission is also considering a radical new idea: a carbon tax on imports. In the future, if you want to be competitive in selling your products in the European market, you’ll have to consider the carbon footprint of your operation.

    Of course, the EU could do better. But compared to the US, Russia or China, it’s way out in front. The European Union is not a demilitarized space. It has a very mixed record on human rights conditionality. And its attitudes toward immigration range from half-welcoming to downright xenophobic.

    But let’s say that Europe emerges from this pandemic with greater global authority, much as the US did after World War II. A lot of Americans, and most American politicians, will bemoan this loss of status. But a world led by a unified Europe would be a significantly better place than one mismanaged by a fragmented United States.

    *[This article was originally published by FPIF.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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