Development matters

It´s time to bring the international debate back to the development issues. We cannot forget that there are still many men, women and children out there that need drinkable water, basic health, elementary education, real jobs and full respect for their human rights. But we tend to put that reality aside and just focus on two or three current affairs matters. Greece, for instance, has taken so much of our attention. We did not lose sight of the Greeks ´ situation but we lost sight of the misery and despair that make the daily life of more than two billion people in many parts of the world. It is time to be reasonable again and also to regain a sense of the proportions. 

Iran´s nuclear accord

The nuclear agreement with Iran has been reached after nine years of negotiations.

During the last stage of the discussions, the discussions were carried out by the Foreign Ministers themselves. And as we look at them sitting around the table for so many months and incredibly long hours, we can only say that they represent the elite in terms of knowledge and capacity to understand the importance of such a deal for the world of today and tomorrow.

We should therefore trust their judgement and recognise this accord has to be a good thing for peace and security in the Middle East. The parties to the agreement deserve our trust and our support. 

The Eurogroup has to take a decision that is clear

The Eurogroup meeting of finance ministers is still on at the very end of this evening. It has been a long meeting. And also a very tense discussion, from what I can understand at this stage. All this shows that the EU is confronted with a very serious crisis that has a major impact on Greece, of course, but also on the rest of euro zone countries.

It is time to be very balanced and to think positively. It is also time to be very clear, in one direction or the other.

Major crisis are complex matters, difficult to decide upon, but at the same time they call for clarity. People want to know the direction things will take.

Politics is about opting. And in the case of a grave situation is also about making sure that whatever is decided is the most reasonable approach, among a choice of options that are all rather painful. 

Spain: difficult times and the people´s response

Life is today more challenging for many Spaniards. These have been difficult years and a long period of painful adjustment processes. But it is also amazing to see how people have accepted the changes and how they are trying to cope with lower levels of income and higher levels of unemployment. That does not mean they have accepted the new situation. But they have kept a very healthy level of pragmatism. 

BRICS and the cyber disputes

As the BRICS summit comes to an end, one could see that “internet governance” was a major issue very much present in the informal discussions. 

Russia is particularly concerned by the fact that the Domain Name System (DNS) is entirely managed by the Internet Corporation for Assigned Names and Numbers (ICANN. This Corporation is a US-based entity and it therefore follows the North-American legal rules. For Vladimir Putin this is seen as a strategic risk. 

He was very much counting on India´s support to gradually create an alternative system, but Prime Minister Modi is not ready for a move that would jeopardise his relations with Washington. India wants to be a key player in the world´s digital economy but in very clear terms: India sees itself as a service centre for customers all over the planet. And they know that the US can become the most important market for the Indian expertise.

The BRICS summit

Today´s BRICS summit has more or less escaped the attention of the mainstream media. It is true that a meeting in Ufa, a far-flung city in the middle of vast Russian steppe, is not easy to cover. But it is also true that Greece and the Chinese stock exchange crisis are taking a lot of headline space. And they are much easier for international reporters to access.

Within the BRICS, the trend is for a deepening of the economic cooperation between the three big ones: China, India and Russia. These countries, contrary to Brazil and South Africa, can take advantage of their geographic proximity. Their political relations are also rather friendly and that adds leverage to their economic exchanges.

Besides that, one should recognise that every one of these five countries have the same concern: they want to get a stronger voice in international affairs. And that´s the cement that brings them together. 

One very last chance?

Greece was told tonight three things: one, they have to come up with a detailed and implementable financial reform programme; two, the European Commission has already prepared a contingency plan in case Greece leaves the euro zone; and third, their new policy reform proposal has to be ready for a careful analysis by the Euro group by Thursday, in view of the EU extraordinary summit called for Sunday, 12 July.

All in all, this sounds like the final leg of a very confusing process. A deadline.

The major risk, besides the one related to missing the deadline, is related to a possible split within the EU. Some countries might go one way and others adopt a different direction. That has to be avoided at any cost.

As we have to prevent any decision that takes flexibility beyond the reasonable enactment of the rules. The rules are essential for the survival of the union.

The risks of a political earthquake in Shanghai

The Shanghai Stock Exchange lost more than 25% of its value in the last three weeks. This is a major shock. If this trend continues the situation will develop into mass panic – many very small investors had borrowed money in the recent past to invest in the Shanghai bourse. It is therefore a major political issue for the authorities in Beijing. They have shown signs of serious concern. Action will be taken in the next few days, for sure. We should observe with great attention the measures they will put in place to respond to the matter. 

On Greece´s next steps

We should congratulate Alexis Tsipras this evening. The Greek voters have shown they unmistakably support him and his approach to country´s debt issue.

Now Tsipras has to come up with a clear negotiating position. It has to be on the Euro group tables by tomorrow. There is urgency. And it is also very urgent to show that there is a way forward.

The proposal has to come from the Greek side. And be ready for a decision to be taken on Tuesday evening, when the Euro group leaders meet in Brussels.

These are indeed extraordinary times. They call for very clear commitments and well defined boundaries. Indecision and vagueness are key risks to avoid. As one has to avoid to be trapped by personal likes and dislikes. We might not like the other side, but we have to sit with him and talk in a very frank and constructive way. 

Celebrating the US big day

US Independence Day: time to salute all my American friends and to reiterate that the alliance between Europe and North America is critically important for both sides. And one way of showing it passes through the strengthening of the European side. A stronger Europe makes the alliance more solid. We tend to forget this dimension of the cooperation. Therefore, let me take advantage of the day to evoke it.