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Posts Tagged ‘Angela Merkel

Of German wurst, French fries and an IMF bullet

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A closed chips stall called 'La Reine des Fritures' ('The Queen of French Fries') in French Flanders. Photo: Stephan Vanfleteren / Panos Pictures

Le Monde Diplomatique, that fearless critic of globalisation and the tyranny of the multilateral lending institutions, has said in its 2011 December issue that in November, the Franco-German directorate of the European Union, the European Central Bank and the International Monetary Fundthe ‘troika’ — were furious when the Greek prime minister, George Papandreou, announced plans to hold a referendum.

Absolute oligarchs dislike referendums because the idea has a great deal to do with consultation – not a favourite subject for the IMF in the 67 years it has claimed to shape the global economy. That is why, summoned to Cannes for an interview during a summit that his country was too small to attend, kept waiting, and publicly upbraided by Angela Merkel and Nicolas Sarkozy (who were responsible for exacerbating the crisis), Papandreou was forced to abandon the plan for a referendum and resign. His successor, a former vice-president of the ECB, promptly decided to include in the Athens government a far-right organisation banned since the Greek colonels lost power in 1974.

In ‘Europe in crisis, rule by troika’, Serge Halimi has written in LMD that the European project was supposed to secure prosperity, strengthen democracy in states formerly ruled by juntas (Greece, Spain, Portugal), and defuse “nationalism as a source of war”. But it is having the opposite effect, with drastic cuts, puppet governments at the call of the brokers, and renewed strife between nations. Everything, in short, that the IMF and the World Bank have pursued since 1944 mostly successfully in Asia, Africa and South America.

Former bankers Lucas Papademos and Mario Monti have taken over in Athens and Rome, exploiting the threat of bankruptcy and the fear of chaos. They are not apolitical technicians but men of the right, members of the Trilateral Commission that blamed western societies for being too democratic. “Having crushed Greece and Italy, the EU and the IMF have now set their sights on Hungary and Spain,” Halimi has written, and it is a grim warning.

A ferris wheel runs in the centre of Brussels next to an old building advertising Martini and Zanussi. Photo: Stephan Vanfleteren / Panos Pictures

Red Pepper has more on the ways and means of the IMF.

“It’s stripped millions of people of their livelihoods, but the global economic crisis has brought one institution back from the dead: the International Monetary Fund. Two years ago, the IMF looked to be on its last legs. It had got to the stage where nobody wanted to borrow its money. Many developing countries started accumulating reserves to avoid ever having to go to the IMF loan shark. Developed countries in trouble would go just about anywhere – China, Russia, Saudi Arabia – to avoid the IMF.”

Then came the meltdown. “The IMF failed to see it coming – pretty damning for a body supposed to oversee global financial stability – but bankrupt countries suddenly had no choice but to come begging.” Exactly the point – the IMF did see it coming because this is what its prescriptions for the previous decade were aimed at in the first place. In April last year, the G20 pumped the organisation with £330 billion of new funds. Uruguayan writer Eduardo Galeano called the decision ‘black humour’, saying it would ‘rub salt in the wound’ of countries hit by a crisis they did not create. The IMF is now re-armed and doubly dangerous, with large new areas in what was formerly the Eurozone to subjugate.

Not quietly by any means. After all, the Greeks are Greeks first and then, perhaps, Europeans. Ditto with the Italians, Portuguese, Hungarians, Spaniards and Latvians. It is looking rather like the Germans and the French (elite, mind you, not the labour, the unemployed, the migrants and the armies of informal workers struggling on 25 euros a day) are the last Europeans left.

But this is why major protests have been convulsing Greece throughout the autumn with strikes, and occupations of the main squares in many towns. Civil servants blockaded their ministries, preventing ministers from accessing their departments in September and October. The early November surprise announcement of a popular referendum in Greece on the EU-IMF loan terms and conditions would have marked the first time an IMF lending package was subjected to a test of popular ownership. In the end the political pressure heaped on the Greek prime minister by other European countries, the Greek political opposition and factions from within his own government forced him to back down and resign as prime minister.

After the collapse of the Greek government, Elena Papadopoulou of the Athens-based Nicos Poulantzas Institute said: “Despite the proclaimed enthusiasm, there is no realistic reason to believe that the new coalition government – with the participation of the extreme right – will follow anything other than the socially destructive policies applied according to IMF recipes with the agreement of the European elites.”

Germany and Iran, a long-running hypocrisy reprised by the blocking of India’s oil payments to Tehran

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The German government has stopped the government from India from paying for oil, bought from Iran, through a German bank. This action has been explained by the German government as halting its dealings with Iran, which America, Germany’s Nato ally, has placed under an economic blockade for allegedly pursuing a nuclear weapons programme.

The extreme but characteristic hypocrisy of Germany with regard to countries of the Middle East has once again come to the fore with this action. Ever since the outbreak, in 1991, of the American invasion of Iraq, Germany’s private sector role in providing engineering and technical know-how to countries of the Middle East – specifically Iran, Iraq (under Saddam Hussein) and Libya – has been exposed. (America’s own complicity in arming, supporting and dealing with all manner of governments is too well-known.) More on the German hypocrisy follows after a brief description of the immediate action.

New media have today reported that India has agreed to stop paying for its Iranian oil imports via Germany. Payments to a Hamburg-based bank handling international trade with Iran had been halted. The Handelsblatt business daily has reported that German chancellor Angela Merkel had intervened by instructing Germany’s central bank, the Bundesbank, to stop clearing payments from India headed to the bank, known as EIH, which is under USA but not EU sanctions.

Reuters has reported that this action will end “a trade conduit that had drawn strong disapproval from the United States and Israel” and that “the decision was a result of consultations between Berlin and New Delhi, and not pressure from Chancellor Angela Merkel at home or abroad to disrupt the payment scheme”. The news bulletin has been picked up by a number of small and regional newspapers in the USA, going under the headline ‘Germany won’t funnel oil money from India to Iran’.

The initial response from India, according to a few early reports, is that India’s finance ministry is now considering routing its payment for Iranian oil through a European bank which is ‘more neutral’ than the European Iranian Trade bank (EIH). The Indian Express has said that so far, India has paid 1.5 billion euros through EIH to the Iranian central bank. The Indian Express quoted a finance ministry official as having said: “EIH can’t be a long-term solution. We are looking at banks in Europe where Iranian central bank has an account. We will also open an account with (that) bank. We will have to look for a neutral bank, which EIH is not.”

India depends on Iran for about 15% of its crude oil imports. Iran is India’s second-biggest oil supplier after Saudi Arabia. India had imported 400,000 barrels per day (bpd) of oil from Iran in 2009-10 and about 178,000 bpd during April-September. India, Asia’s third-largest oil consumer, imports over two-thirds of its oil needs and depends heavily on volumes from the West Asia to power its economy. India and Iran have been negotiating for months on ways to resolve the payment deadlock on a long-term basis and salvage the trade, which is worth around US$12 billion annually.

So much for India’s oil dealings with Iran. What moral standing has Germany in such a matter? Let’s revisit the recent past to see what Germany’s current imperialist ally in Libya – the USA – has itself had to say on German interest in Middle Eastern and North African business opportunities.

Foreign energy in Libya. Map: Stratfor

Remember Rabta? This was reported to be the largest chemical weapons factory in the developing world, and in the 1990s it was estimated that the Rabta factory’s potential output was between 8.5 and 33 tons of mustard gas and nerve agent daily. The Rabta plant, about 65 km south of Tripoli, was seen as having been buit and operated with the assistance of western (i.e. from western Europe) companies. At the time, it was the USA which concluded that a West German company played a central role in the design and construction of the rabta plant. Ronald Reagan was US president then and Helmut Kohl the German chancellor. The company was Imhausen-Chemie, and both the company and the feckless German government of the day claimed that all it was doing at Rabta was making plastic bags.

Let’s turn to Germany and Iran. Germany has been intensely involved in the international effort to thwart Iran’s nuclear weapons development program. Yet, while Chancellor Merkel has vocally stated her opposition to Iran’s acquisition of a nuclear weapon, Germany has continued to be Iran’s largest trading partner in the EU and – whatever shape the coalition government in Berlin has taken – it has been pro-business, favouring commercial ties over the West’s security interests – this is typical, after all, for the country that until last year was the world’s biggest expoert economy, business comes first, never mind who it’s done with and what it’s used for. Germany’s exports to Iran reached about US$426 million in September 2009, while its imports were about US$140 million. This has been reported by The Jerusalem Post (September 29, 2009) and by Tehran Times (December 17, 2009). Which are the major companies that have, with the full knowledge and encouragement of the German government, done business in and with Iran? Some of the best-known are Siemens, ThyssenKrupp, BASF, Bayer, Herrenknecht and MAN Ferrostahl.

It is tiresome to hear sanctimonoius claptrap about Germany’s replacement of the primitive nationalisms of the past with multilateral principles of an integrated Europe, as its lying and double-dealing officials assure the European Parliament and international fora every so often. The “forgetting of power” in the West German peace movements and in the political language of détente used by its over-intellectualised political commentators is plain rubbish, for what Germany does abroad is quite different from what it says at home in Europa.

UN head gives Europe blunt message on ‘integration’ and immigrants

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Secretary-General Ban Ki-moon addresses the European Parliament in Strasbourg, France. Source: UN News

There are times when the United Nations gets it right, and this is one of thise times. The UN Secretary General Ban Ki-moon has delivered a ringing statement to the rightists of Europe, against what he called a new “politics of polarization”.

His statement comes in the week following the extraordinary and unconscionable declaration by Angela Merkel, chancellor of Germany, that multiculturalism has failed in Germany and so has integration of foreigners. Ban’s statement, contained in two addresses – to the European Parliament and to the Council of Europe – also comes a month after Nicholas Sarkozy’s government in France deported several thousand Roma to Bulgaria and Romania.

Ban warned Europe against a new “politics of polarization”, discrimination and intolerance over immigration, with Muslim immigrants as primary targets. “Almost seven years ago, my predecessor Kofi Annan stood before you,” he told the 27-nation European Parliament in Strasbourg, France. “In his address, he made an impassioned call for Europe to seize the opportunities presented by immigration and to resist those who demonized these newcomers as ‘the other’. I wish I could report, today, that the situation in Europe has improved over the intervening years. But as a friend of Europe, I share profound concern.”

In a speech earlier to the 47-nation Council of Europe, he highlighted the Universal Declaration of Human Rights’ proclamation of the equal and inalienable rights of all members of the human family. “That is our base line,” he declared at the session marking the 60th anniversary of the European Convention on Human Rights. “That is our standard. There are no exceptions. In a complicated and connected world, this mission is essentially simple and simply essential.”

Germany's persistent discomfort with migrants. Image: Deutsche Welle

In his address to the parliamentarians, Mr. Ban said Europe has served “as an extraordinary engine of integration, weaving together nations and cultures into a whole that is far, far greater than the sum of its parts. But for Europe, ‘winning the peace’ was the narrative of the last century. “The 21st century European challenge is tolerance within. Inclusion, building diverse communities, is as complex a task as the one Europe faced after the Second World War. None of this is easy,” he added.

Migrants, he noted, suffer disproportionately, whether they are from within Europe or beyond, and he pointed to “a new politics of polarization” as a dangerous emerging trend. “Some play on people’s fears. They seek to invoke liberal values for illiberal causes. They accuse immigrants of violating European values. Yet too often, it is the accusers who subvert these values – and thus the very idea of what it means to be a citizen of the European Union,” he said.

Ban made particular reference to Germany’s history of right-wing nationalism. “Europe’s darkest chapters have been written in language such as this,” he said. “Today, the primary targets are immigrants of the Muslim faith. Europe cannot afford stereotyping that closes minds and breeds hatred. And the world cannot afford a Europe that does this.” In his address to the Council, Mr. Ban cited evidence of backsliding on civil and political rights and a growing anxiety in many developed countries over migration and economic hard times that are used to justify policies of discrimination and exclusion.

Germany's violent, racist and xenophobic rightist groups still organise with impunity. Image: Deutsche Welle

The UN Secretary General also said bluntly that none of Europe’s largest and wealthiest powers had signed or ratified the Convention on the Rights of Migrant Workers 20 years after it was adopted. “In some of the world’s most advanced democracies, among nations that take just pride in their long history of social progressiveness, migrants are being denied basic human rights,” he said. “We must respect cultural diversity, while never compromising our fundamental principles and never tolerating intolerance, Lasting social change, including respect for human rights, and particularly women’s rights, cannot be planted from afar. It must take root within societies.”

In a typically clumsy and painfully transparent attempt at camouflaging the Merkel government’s increasingly illiberal position, the German federal government has announced plans for legislation to promote the integration of immigrants into mainstream society. “For a while multiculturalism in Germany was about immigrants living as they wished and not putting integration too much in the forefront,” said spokesman Steffen Seibert at a government press briefing in Berlin. “In everybody’s interest, this society has to act, and the government will act.”

"Demonising the 'other' " as a dangerous political manoeuvre. Image: Deutsche Welle

Seibert said Merkel’s center-right coalition cabinet planned to adopt “concrete” new regulations next Wednesday on immigration policy and residency permits. The legislation would focus on German language courses and combating forced marriages, and make it easier for foreign diplomas to be formally recognized. Deutsche Welle quoted Seibert as saying: “This country is extremely glad to have hundreds of thousands, probably millions, of people with foreign roots who are well integrated. But we also recognize, and perhaps we are stressing it more now than in years gone by, that with some foreigners integration is not happening as it should. In some cases it is quite openly being rejected.”

Seibert’s schizophrenic prose does nothing to explain Germany’s deep-seated discomfort with the foreigner. It’s very label for the immigrant of the 1950s, gastarbeiter, or guest worker, implied that when the ‘guest’ had completed his term of economic usefulness he would cease being the guest by leaving. This is a term that continued to be used by all sections of Germany’s political spectrum even throughout the years when the country claimed it was encouraging multi-culturalism. It did no such thing, choosing instead to raise barriers based on language proficiency, the recognition of educational qualifications and the ‘burden’ on its services. By her contemptible statement, Merkel has revealed the deeply alarming tendency of western European ruling elites to resort to dangerous polarisation in order to disguise the failures of their policies for their own marginalised and economically depressed citizens.