Friday, 3 July 2015

Young radicals for political reasons

Malek Boutih is a French Member of the National Assembly. His family roots can be found in North Africa and in the Islam. 

At the request of Manuel Valls, the Prime Minister of France, Boutih as looked at the radicalisation of the French youth. After four months of interviews and consultations, he has just issued his report. He called it “Géneration Radicale” and indeed the key point he makes is that many among the French youth are indeed attracted by a radical approach to politics and social engagement. Boutih´s main conclusion is that the extremism the young people espouse is basically a political response – and not a religious option. The extremists see no room for them in the French society, have no hope of a better life, feel they do not belong –notwithstanding they are second or third generation French nationals, as children and grandchildren of North African former immigrants – and then they look elsewhere. They end up by seeing violence as a means to be heard and a way of gaining the protagonism that an European society will never afford them.

The report is worth noting. And the key reading is that Western European societies have to be prepared to respond, in a comprehensive, multifaceted manner to the radical challenge. This is not a temporary problem. It is something that has now deep roots in our societies. It requires top attention.




Thursday, 2 July 2015

Greece: Fast running towards the abyss

The Greek crisis is now getting to the breaking point. Businesses are just closing their doors as they have little or no access to financial resources. Payments to external suppliers are becoming almost impossible. Domestic payments are just paper payments, no real cash is moving around.

Four days without an operational banking system has a major impact on the economy in a developed country.

And I do not see the banks being able to re-open on Tuesday, as the government wants us to believe. People have lost most of their confidence in the financial institutions and are desperate to take out of the system whatever little money they still have in their accounts.

We are running fast against the wall.

And we do not seem to be aware of it.

We just take the days as normal days in a country that can no longer afford to run as usual. The government needs to take exceptional measures. And I do not see the current leadership being able to do it. For whatever reason, they seem to believe that everything will be much easier after the referendum. Or, the referendum is three days away in a country that needs decisions now. 

Wednesday, 1 July 2015

Puerto Rico´s money problems

Today we should look elsewhere. To the US, for instance as we get the news that Puerto Rico is also broke. The public debt is around USD 72 billion and the territory’s government is in no position to honour it. Default is around the corner. But it looks manageable as debt represents only 70% of nominal GDP. In any case, it will end up by causing some losses for those who have placed money in public bonds. That´s what they mean by “manageable”: the State borrows and with time the private citizens get a serious haircut. 

Tuesday, 30 June 2015

Clarifying the relationship with Greece´s political establishment

Political uncertainty is not a good option. The role of leadership is to make it as short as possible. Leaders clarify and define the rules. We expect them to sort things out without too much delay. We also expect them to be able to properly and openly communicate about their decisions.

That´s what is happening in the case of Greece, I want to believe.

We are now in the process of clarifying the relationship with the Greek government. We should also be able to clear up the rapport with the rest of the country´s political class. The connection with them has been too ambiguous. They have to tell us how far they are prepared to go. We should then state if we can go along or not. They have the right to decide about their own future. And we have the same right to choose if we are part of that journey or not.

Both sides have to be wise, in addition to being clear. But above all, both sides have to be sincere and be perceived as such. 

Monday, 29 June 2015

On the road

I have been on the road during the last few days. The blog will be back tomorrow. Thank you for your kind attention to my writing. It is important to be read. 

Wednesday, 24 June 2015

Spying on friends

Friends do not spy on friends. No government, including the US, is authorised to tap the communications of its allied nations’ leaders. This is a very basic principle of healthy alliances.

Keeping this in mind, I fully understand the anger President François Hollande has expressed today when he learned that he, and those before him at the Elysée Palace, have been spied upon by the intelligence services of the US.

Let´s also hope that France is not doing it elsewhere as well. 

Tuesday, 23 June 2015

Calais is a clear example of political weakness

It was again quite obvious that the French authorities have lost the initiative in Calais. The illegal immigrants are just around, at least 3,000 of them, trying to jump into trains and trucks and cross into the UK. They roam around freely and the police can only react when there is an attempt to board a vehicle.

The point is not about the police. It´s about the political masters losing control of the situation. This is just an example of the lack of political response we see in many parts of the European space. With time the problem will grow much bigger. 

Monday, 22 June 2015

Strategic communications are essential and part of the solution

The EU public opinion matters a lot. People have access to lots of information but the average citizen is still very much influenced by what they watch on TV.

My sense is that the leaders are not communicating well on Greece´s crisis. This is a very sensitive matter that can be easily exploited by any camp that promotes populism, and radicalism, and opposes the EU. It can also weaken further the fragile feeling of common interests.

Every leader has his or her part of responsibility. National leaders should address their national audiences and explain what is at stake and the choices that are being made. Juncker and Tusk, in Brussels, they have likewise to step forward and talk about the issue in a way that goes beyond the sound bites and a patronizing approach. It´s very much their call.  

Sunday, 21 June 2015

Tax havens

Hong Kong is included in the just published EU list of tax havens for corporations. It is one of the 30 countries and territories enumerated.

The Hong Kong authorities have reacted with great surprise to their listing. And they are right as the territory has now in place a number of mechanisms to share information. It is true that the territory´s taxes are low. But that´s a political choice. It is part of the competition at the international level.

Many other countries have low corporate taxes and are not listed by the EU. Do you want an example? Look at the Delaware tax system in the US and you will see what competition means. Not to mention Luxembourg, an EU country with a very advantageous tax system for big companies. Luxembourg is not in the list…

Saturday, 20 June 2015

Confused leaders are not my cup of tea

I have a problem with leadership. I do not like weak, confused, or misguided leaders. And as I grow older that dislike becomes even more intense. That´s the reason why I am not in party politics. The parties I know are full of them. Unfortunately, because good leadership can make a sea difference.