Brussels Brief | 42nd Edition
2 March — 8 March 2018
It’s the 42nd Edition of Brussels Brief* and we are back with Italian populist uprisings, Trump trade wars and magical Brexit realism.
You might have heard that a certain country of 40 million people just voted for populist / right-wing parties in an election this past weekend. Quietly in another European country, this time of 80 million people, just finalised a gruelling process to form a government of their own (documentary), a status quo government with a figure that has survived more than her fair share, ‘Frau Europa’ Angela Merkel.
The victory of Macron or the permanence of Merkel are nothing to be comfortable about. As the Visegrad Bad Boys troll away the European ideal, Brexit is taking up too much of the attention of the EU top brass to be able to reign in what is essentially a slow-moving coup across the European Union. A population of 508 million people, many of whom have suffered the hangover of the financial crisis in the past decade where they have seen austerity being imposed from European institutions and little else to show for such radical change around them.
Brexit happened, Marine Le Pen almost happened, the AfD took a bite out of the most populism weary country (for good reasons) and a toxic mix of populists (Five Star) and right-wing ideologues (Lega Nord) have effectively taken over one of the original 6 member states. The centre-right of the EU establishment has been able to quieten leftist sentiment following the financial crisis, only to allow that void to be filled by authoritarian, demagogic nationalism that seems here to stay. When people like Steve Bannon feel at home in Europe and the identitarian movement emerges as a more dangerous form of alt-right, it is time to stop the worrying and start acting. Defending the values to the EU to their core before complacency and deterioration kick in.
It’s time to say time’s up on populism.
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The Brussels Brief Team 👨👩👦 ✌️ 🇪🇺
Collated and Curated over ‘Giorgia Angiuli live @ Ibiza Es Vedrà for Cercle’ on Youtube and a cup of hot something ☕ in Brussels Brief HQ.
- Steven Bannon
Populist evangeliser, former White House Chief Strategist and nationalist troll-in-chief on the immensity of Italy’s shift to the right.
🔝 FRONT PAGE — Top News This Week
Wake up and smell the Lavazza. Monday mornings are never easy but when Italy woke up on 5 March to no absolute majority for the formation of its new government it was like a bad limoncello hangover. On top of this, the elections reflected an overwhelming support for the anti-establishment and populist parties in the Italian political scene. In first place was the centre-right coalition with 37% of votes, luckily (or not) enough to lead the State. The anti-Euro Five Star Movement held a strong 31%, claiming its place as the most supported single party in the country. The centre-left Partito Democratico, reached an all-time low of almost 24% votes, placing an end to its 20-year dominance in Italian politics. However, the biggest (unexpected) loser was the current convict and former ex-Prime Minister Silvio Berlusconi getting fewer votes than the younger and more radical Lega del Nord leader Matteo Salvini thereby cementing the demise of the once all-powerful tycoon. This leaves the Head of State, Sergio Mattarella, with the unenviable role in leading talks for possible coalitions with parties that are fundamentally in contrast. What this means for Italy, or worse for Europe, is unclear to say the least. What is fundamentally evident is that these elections are a result of anti-establishment votes and an undesired pro-EU future for Italy. [EUobserver, Votewatch, Euronews, Eurotopics, New York Times]
Selmayrgate. The monster of berlaymont, blackadder of Brussels and the EU’s Rasputin. These monikers are all both a badge of honour and slur for the most (un)civil of civil servants. Martin Selmayr’s reputation precedes him whether it’s an exposé in Politico or particularly the French press, Selmayr has been under the scrutiny of many. He has during the past four years, run the Juncker cabinet with an iron fist and an even more metallic heart but yet with a robotic efficiency only a cyborg could manage. However, as time on the JCJ Commission runs out a switch in job titles (if not job description) was on the cards for the zealous Selmayr in order to cement his place in the Commission beyond 2020. As such, he was recently appointed as Secretary-General of the Commission. However, the move did not go past that very same scrutiny lightly and questions surrounding the surreptitious nature of the appointment snowballed last week culminating in an excruciating press conference for the Commission press service who claim that the appointment was “perfectly normal and legal” almost angelic according to some. The issue though has caught the attention of the European Parliament and several MEPs have threatened to address the issue at next week’s plenary. The time may well be up for Selmayr himself. [Politico Europe, The Times, The Guardian, Liberation, EUobserver]
💸 ITS THE ECONOMY, STUPID — Top Economic, Trade and Innovation News
Trade Wars Episode I: Return of the tariffs. Going big league US President Donald Trump threatened a tremendous tariff, 25% on steel and 10% on aluminium, causing world markets to enter a mild panic and his own economic advisor to quit. Although most steel is produced by China, the EU is not escaping the wrath of the Donald who claims that Europe has been treating the US very unfairly and vows to put a 25% tariff on European cars if the EU retaliates. Unfazed by the big bold blustering from the Donald, Commission President JCJ quipped back that the EU is ready to take countermeasures and reassured that ‘we can also do stupid’ in a not so veiled jab at the US president’sunderstanding of international trade. Among the prime targets for EU counter-sanctions are Kentucky bourbon, Harley Davidson Motorcycles and orange juice all finely tuned to inflict economic nausea in areas Trump relies on for political support. And to finish off a terrible week in trade Malaysia might join the tariff brawl over a dispute on palm oil. One can only hope the sequel to this saga will end up better than it began. [Politico Europe, New York Magazine, Euractiv, Chicago Tribune, Vox, BBC News]
Put a G on it. The future is mobile and digital but Europe is at risk of being caught up in the past left behind by the US and China as the world is moving into the new territories of 5G, the new generation of wireless internet, which opens the possibility of anexponentially greater transfer of data and, with it, new technologies like driverless cars. But the future comes at a cost and an expected €500 billion is needed to upgrade digital infrastructure to make it support the new system, which Digital Single Market Commissioner Andrus Ansip acknowledged when an agreement for a new 20 year period freeing up airwaves for the new technology was decided last week. Maybe the EU isn’t moving fast enough but the pace of technology sure is. [City A.M., E&T]
🇬🇧 STATE OF THE (DIS)UNION — Brexit Stories
Magical Realism. There have been wholly unholy exchanges between the two camps of the Brexit process in the past week. After Michel Barnier told UK PM Theresa May that ‘time is running out’, she came back with an “ambitious” speech with “hard facts” setting out what amounted to pledging for an “off-peak membership to the European gym” according to journalist Paul Mason. “Vague aspirations” and “unrealistic” were the response from Brussels as her five tests for Brexit were rebutted by two tests from Council President Donald Tusk yesterday as he introduced the new Article 50 Council guidelines which effectively constituted an elaborate rejection of the details in May’s speech. Bottom line is that the EU is offering a run of the mill free trade agreement whilst Theresa May wants a ‘deep’ deal with ‘opt-ins’ rather than the customary British ‘opt-outs’ that we have all come to know and love. [BBC News, New York Times, BBC Newsnight, The Guardian, Politico Europe, Bloomberg, The Times]
BONUS Brexit Studs. Pick an industry that won’t be affected by Brexit and the Brussels Brief team will eat its respective shoes. This time we bring you an industry that hosts over 32,000 jobs and a combined €5.8 billion a year to the Irish and British economies. No its not butter or tractors but horsepower. Literally. The story of how the business of horse racing became EU -dependent began with a tripartite agreement between UK, Ireland and France whereby 10,000 horses have enjoyed freedom of movement annually as a result. This agreement, dating back to the 1960s is now EU law and will be effectively decimated by the UK’s exit from the EU making breeders worry that the ‘Sport of Kings’ will suffer. [CNN]
— The percentage of the world’s steel that the EU produces.
🏢 BRUXELLES MA BELLE — News about the city
When actions speak louder than words. The international TED conference has removed Brussels’ licence to run TEDx Brussels events for reasons of censorship. This was triggered by the performance of Deborah de Robertis, a controversial and provocative artist, at Bozar on Monday. Despite having agreed that she would not show images of previous scandalous work during her talk, de Robertis in fact did. She was forced off the stage by the event’s organisers prompting complaints of censorship and impropriety from the TED brand. [The Bulletin]
Counterattack. This past Sunday a successful raid arrested 8 in the Brussels’ district of Molenbeek, a neighbourhood that has in recent years been linked to terrorist activity. The men taken into custody were thought to be planning an attack. Searches were also carried out in Grammont and Mechelen, but neither explosives or suspects were found. [Expatica, Xinhuanet]
✂️ EXTRA — From The Cutting Room Floor
Boarding the love train. The young ones always have it easier but this time around they really get a free pass. Some 30.000 young Europeans turning 18 this year will receive a free Interrail pass providing free transportation around Europe. The initiative has been pushed by the conservative EPP group as an initiative aimed at creating a greater sense of European Identity among the younger generations. For now, a total of €12 million has been set aside for trying out the programme and any EU citizen turning 18 this year can apply for a pass. [Euronews]
Bonus: How to make a national identity in 4 simple steps. It is given to take one’s nationality as a central indication of identity today, but take a step back and remember that most nations didn’t exist until recently and the national identity is based on myth and legend creation. The New York Times dissects the myth of nationality (video) and points towards the future. Maybe we need a new European myth. [The New York Times]
💡 OPINION — Top minds muse on the European project
Data prophylactics. Just two months before the General Data Protection Regulation (GDPR) enters into force, only two EU Member States — Germany and Austria — have all the necessary legislation in place to fully adopt it. A UK-run survey shows that 31% of micro firms and 49% of small businesses know what the GDPR actually entails. But Andrew Wrobel claims implementing the new rules is not only key to businesses but fundamental for users and privacy-friendly, high-tech production. Avoiding disasters like the 57 million users affected by Uber’s cyber attack with the implementation of the GDPR is not only about refining our moral compass but also harmonising and unifying European regulations. [Emerging Europe]
Jobs won’t cut it. It is a common misconception that jobs mean less unemployment which means growth which means people get out of poverty. Ive Marx argues differently. Prior to the Great Recession, he claims, most EU countries were doing fine, if not great, and jobs were flourishing. In more than one scenario, however, poverty was not just stagnant but actually growing. Jobs can raise higher living standards but mostly for middle and high class, not necessarily in the lower distribution of society. Plus, getting a job does not automatically signal an escape from poverty. It’s a longer process than that, one that the American (or European for that matter) Dream cannot always reach, but income supplements and child benefits might. [SocialEurope]
🎧 PRESS PLAY — Media Corner
🔊 Podcast of the Week. The kids at the University of Kent’s, Brussels School of International Studies have launched their own podcast. The Beyond Brussels Podcast will feature views from and IR student perspective and will deal with all the hot button topics affecting the global landscape. Check them out here. [Beyond Brussels]
Video(s) of the Week. It’s International Women’s Day today and what better way to spend it but to listen to the European Commissioner Commissioner for Justice, Consumers and Gender Equality Věra Jourová as she waxes lyrical about the gender pay gap male chauvinism and other plagues affecting the European gender landscape [Euractiv]
✏️ Cartoon(s) of the Week. Populism is Back in Italy, Brexit Ice Cream, Trade War [Cagle.com]
📺 GIF of the Week
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