Monday, November 11, 2013

No investor-state litigation clause in EU-US trade agreement!

American and European negotiators have met for the second round of bilateral talks for the Transatlantic Trade and Investment Partnership (TTIP) on Monday. In different negotiating groups such as "market access", "public procurement" and "regulatory aspects", EU and US officials are working to simplify business rules for both sides of the Atlantic. 

In one of the groups, negotiators are trying to establish a mechanism for investor-state dispute settlement (ISDS). This would allow an American investor to claim damages from the EU in front of an international court if the EU was to modify its public policy in a way that would spoil the investor's profits. Canada is feeling the heat of such a dispute since a group of investors has sued the region of Quebec under NAFTA for its ban on fracking. Argentina had to pay US investors hundreds of million dollars for their losses after it had to devalue its currency in 2001.

If US and EU negotiators agree to put an ISDS clause into the TTIP, this could curb the EU's and the member states' regulatory powers. A British fracking ban could for example cost the EU millions of Euros if it spoils a planned investment by US investors. In the same way, if a European country was to introduce an eco-tax or a financial transactions tax (FTT), this could also lead to compensation for American investors. 

EU and US negotiations keep affirming that both entities have a well-developed legal system and the need for ISDS should never arise. But once the system is in place, it can be freely used by every investor who wants to. It is a system that can become very dangerous for the shaping of democratic politics.

For this reason, there should be no ISDS clause in the TTIP.

Thursday, October 17, 2013

MEPs ask for an end to Brussels-Strasbourg travelling circus

Members of the Constitutional Committee of the European Parliament on Monday took a first step to end the travelling circus of the Parliament between Brussels and Strasbourg.

In a report (see the draft report here) that was adopted by 20 to 4 votes, the committee urges to give the Parliament the say over its location, its calendar and the modalities of its meetings. 

"We want to have one seat, so that we can save money and carbon dioxide," commented the co-rapporteur of the resolution, British MEP Ashley Fox, in a press conference on Tuesday. At a time where European citizens are asked to make cuts, an estimated 200 million EUR is spent by taxpayers every year to fund the monthly travel of 766 MEPs, their assistants and Parliament staff from Brussels to Strasbourg and back. The MEPs of the Constitutional committee find this an unnecessary waste of money and carbon dioxide.

"This report is a small revolution, but it will be the beginning of a bigger revolution," the second co-rapporteur Gerald Häfner (Germany) added. "We want to take our own decision about where to have the Parliament's seat, but we are hostages of the European Council, the member states and their governments." The seat of the Parliament is written into the EU treaties, and a treaty change requires unanimity by all 28 EU member states. The French government has indicated many times that it will not agree to abolish the EP seat in Strasbourg.

Many people have tried to end the monthly travelling circus before, but always in vain. Fox and Häfner believe that this time will be different. "This is a new thing," said Häfner, "because the Parliament has never before asked for a treaty change that would allow it to decide itself where and when to hold its meetings." 

Fox and Häfner are certain that by now there is a majority in the European Parliament in favour of a single seat, a majority that runs through all the political groups. It appears that quite a few European governments are also in favour of putting an end to the travelling circus but they would not like to directly pronounce themselves in favour of either Strasbourg or Brussels. To bring the report through Parliament, the two rapporteurs have therefore decided not to mention either Brussels or Strasbourg. "We don't take a stance about where the single seat should be," said Fox. 

Nonetheless, there was a bit of opposition to the single seat report. When it was voted on Monday, a number of French MEPs not belonging to the Constitutional committee tried to highjack the decision. They had added 87 amendments to dilute the impact of the report (most of which were rejected) and attempted to cast votes in the committee even though they were not member of it. The committee had to pause several times until the final vote could take place.

The report will now be voted by the plenary on 11 November vote and Ashley Fox believes that only few MEPs will be brave enough to put down their name for a two-seat solution. If the report is adopted, the Parliament would wait until after the elections in May 2014 and then formally submit the report to Council. The Council would then be forced to debate the question of the single seat and take a vote on it.

The next European convention to review the EU treaties, probably in 2015, would then debate the Parliament's request to decide itself on its location, said Häfner. And an agreement would have to be found to compensate the country which would lose its European institutions, added Fox.

Saturday, October 12, 2013

The pope is right: Europe should be ashamed

Since the beginning of the Syrian civil war, 560,000 refugees (or about 9% of the Jordianian population) have crossed into Jordan and asked for asylum. The cost of providing shelter, food, water (Jordan is a desert state) and assistance for all these refugees has cost the government of this upper-middle income country 1.53 billion USD since the beginning of the refugee crisis. Commenting on the refugee situation, Jordan's interior minister said
Jordan is a safe haven; even if we have to share some of our livelihood we will not deprive anyone of the privilege to be here. This is the nature of Jordanians and their leadership, and I pray to God that we are never in a position where we would make a different decision. I want to emphasize Jordan’s moral, humanitarian and political commitment.
Meanwhile, 6,400 Syrian refugees have reached the European Union through Bulgaria. Others come into the EU through Greece or Italy. Two boats carrying African refugees capsized at Lampedusa this week, killing hundreds of them. At the Council meeting of Interior Ministers this week, some of these countries asked for help from their richer, northern European neighbours. They find that the 2003 Dublin II regulation – which obliges asylum seekers to file their asylum request in the EU country of arrival – does not respond to the challenges of today any more.

But the richer north European partners refused to move an inch away from the Dublin II regulation. A representative survey conducted in Germany last week revealed that a majority (52%) of the Germans believe the EU should accepted more refugees, but the same majority (51%) thinks that these refugees should go to a country other than Germany.

For a bloc of the most developed countries in the world, but especially for a union that prizes itself for being a value-community, this is completely unacceptable. The pope put it a bit more bluntly: This a shame.

The EU not only has the economic resources and cultural diversity to accept a far greater number of refugees, but it has also proclaimed to the world that it promotes humanitarian values and human rights.

But the picture that it gives of itself in the African and Syrian refugee crisis is a club of wealthy countries, busy with itself, ignoring the rest of the world.