Author: Tejinder Singh
8 December 2008 - Issue : 811
A fter addressing an overflowing house of European Parliament December 4, the Dalai Lama, the Tibetan spiritual leader, appeared at a joint press conference with Hans-Gert Poettering, the President of the only directly elected European institution, the European Parliament. Wit, humour, serenity and positive vibes were present in the packed environs of the Anna Politkovskaya European Parliament press room, named after the slain Russian journalist, as the Dalai Lama was at ease with international journalists.
Answering a question about economic crisis, the spiritual leader explained the ongoing market crisis around the world. Saying, “Market itself is a creation of human beings,” the Buddhist leader asked, “What is the real cause of this sort of economic crisis?” Citing answers from his business friends, the Dalai Lama told journalists: “Too much speculation and ultimately greed,” adding, “The pot - ential to help is: reduce greed and (increase) self-discipline. “Economic crisis is something urgent so it will be helpful to reduce some other conflict (that are going on) in the name of faith and nationality.”
Going down memory lane, the Dalai Lama listed the Khmer Rouge genocide in Cambodia, and Burma and North Korea as some of the instances that could not have happened or are still happening without China nodding its approval. Citing the “uncomfortable people of Hong Kong,” “reunification of Taiwan,” and the separatist factions in the southwestern Chinese province of Xinjiang as areas where such a moral authority should be displayed, the Buddhist leader insisted he only wants meaningful autonomy for Tibet under Chinese rule.
The leader from Tibet told journalists, “actually the whole world knows we are not separatists and also many Chinese writers and thinkers and many Chinese students if they have the opportunity to know the reality really support it and are in fact very critical of their government policy. “If Chinese government still accuse us of being splitists, we ourselves are confused. We are not ‘splittists,’ but the Chinese government still accuses us of being ‘splittists,’” he said.
China cancelled the annual EU-China Summit slated for December 1 when French President Nicolas Sarkozy announced he would meet the Dalai Lama in Poland. Sarkozy also represents the EU Presidency as France holds the rotating EU Presidency till the end of the year before handing it over to the Czech Republic for next six months.
When asked to comment on his meeting with Sarkozy, the Dalai Lama, with a cheerful smile said, “I have met the wife (Mrs. Sarkozy) and will be meeting the husband.” Praising the Chinese people for their diligence and perseverance and citing “manpower, economic and military power” as positive desired contributors for China to becomes “a superpower,” the Dalai Lama pointed out, “Now one important factor is moral authority and that is lacking. “Because of its very poor record on human rights and religious freedom and freedom of expression and freedom of the press — too much censorship — the image of China in the field of moral authority is very, very poor,” he said.
“The sensible Chinese realise China should now give more attention to this field to get more respectability in world affairs,” the Nobel peace laureate said, adding, “My faith in Chinese people has never shaken,” while the top echelons of Chinese leadership is divided into hard liners and soft approach advocates.
The Dalai Lama called the Chinese regime a “capitalist totalitarian regime,” and urged the importance of trust and transparency telling journalists, “trust is the key factor and for that transparency (is) really very much needed.” Calling upon the Chinese authorities to “adjust to new reality,” the Buddhist leader suggested that the Chinese authorities also can change to fit into the changing world scenario. Earlier, he addressed the European Parliament during his second day in the Belgian capital, where he was greeted by loud applause and Tibetan flags.
President Poettering, assured that the parliament would “continue to defend the rights of the Tibetan people to their cultural and religious identity.” He called on Chinese leaders to hold meaningful talks with representatives of the exiled Dalai Lama, who lives in exile in India, and has sought “meaningful autonomy” for Tibet since he had to leave his homeland following a failed uprising in 1959 against Chinese rule, nine years after Chinese troops invaded the region. Ruled by China since the 18th Century, Tibet became independent in 1911, but the new Communist regime in China reasserted control in 1951, and installed a Communist government in 1953.
Showing posts with label China. Show all posts
Showing posts with label China. Show all posts
Monday, December 8, 2008
Saturday, November 8, 2008
Afghanistan set to benefit from Obamania in Europe
Afghanistan will stay on top of the list of priorities of US President-elect Barack Obama as he taps into the post-US election euphoria in Europe, reaching out to grass root level European sentiments to coax Europe to do more to help defeat the Afghanistan insurgency, political pundits observed in Brussels last week.
David Ignatius, associate editor and columnist for the Washington Post said, “Obama has to deliver on his promise to end war in Iraq along with, to move early on Arab-Israeli conflict so as not to lose momentum,” adding, “intensity of enthusiasm of Obama supporters can be tapped into to get much needed support for Afghanistan policies.”
Addressing a select audience of journalists, diplomats and civil society representatives, Ignatius said, “The essence of Obama’s style is that he is Mr. Cool to an unusual level and is not yet knocked off from center point ... I have never seen a campaign better run than this one.”
“Depending on the recommendations of US General (David) Petraeus coming later, I have the impression from Obama’s advisors at this moment that the policy will be go for a surge and then negotiations,” Ignatius told an event titled, “Transatlantic Relations after the US elections: What now?” organised by the German Marshall Fund of the United States on November 7 in Brussels.
IRAN
On relations with militants and Iran, he said, “Saudi Arabia is trying to meditate with Taliban and it seem there will be talks with reconcilable elements of Taliban. There can also be broad dialogue with Iran but on the assumption that Iran may not be ready for yes yet,” adding, “Obama has an unusually gifted sense of timing.”
Warning, “The clock is ticking,” Ignatius asked Europeans to be prepared to impose tough sanctions if diplomatic efforts fail, saying, “We need to make tougher sanctions - much to what really hurts.”
Citing the upcoming “renewal of NPT (nuclear non-proliferation treaty),” Robert Cooper, Director General for External and Politico-Military Affairs at the Council of the European Union said, “If we wish to maintain it, its not just about dealing with Iran but its also about providing all countries with nuclear options for peaceful uses.”
CHINA, RUSSIA
“With Russia and China,” there is a “need to have a fundamental relationship,” Ignatius stressed.
Cooper called the events in Georgia, “a profound shock,” saying, “that changed the context of relations with Russia.” He, however, ruled out the military solutions saying, “solutions to problems are always political and that involves talking to people.”
CLIMATE CHANGE
On the issue of fight against climate change the speakers agreed that the US will be able to take the lead as the recent falling apart of the EU consensus on the issue was pointed out.
In a lighter tone, Cooper said, “Europe is always divided on something then agrees and then gets divided on something else but in Europe being divided means Europe is in the process of making a decision.”
Ignatius pointed at the “intensity of enthusiasm of young supporters of Obama,” with their passion and suggested that this can be involved both in the US and Europe,” along with Asian giants China and India, to address the climate change on a global scale.
David Ignatius, associate editor and columnist for the Washington Post said, “Obama has to deliver on his promise to end war in Iraq along with, to move early on Arab-Israeli conflict so as not to lose momentum,” adding, “intensity of enthusiasm of Obama supporters can be tapped into to get much needed support for Afghanistan policies.”
Addressing a select audience of journalists, diplomats and civil society representatives, Ignatius said, “The essence of Obama’s style is that he is Mr. Cool to an unusual level and is not yet knocked off from center point ... I have never seen a campaign better run than this one.”
“Depending on the recommendations of US General (David) Petraeus coming later, I have the impression from Obama’s advisors at this moment that the policy will be go for a surge and then negotiations,” Ignatius told an event titled, “Transatlantic Relations after the US elections: What now?” organised by the German Marshall Fund of the United States on November 7 in Brussels.
IRAN
On relations with militants and Iran, he said, “Saudi Arabia is trying to meditate with Taliban and it seem there will be talks with reconcilable elements of Taliban. There can also be broad dialogue with Iran but on the assumption that Iran may not be ready for yes yet,” adding, “Obama has an unusually gifted sense of timing.”
Warning, “The clock is ticking,” Ignatius asked Europeans to be prepared to impose tough sanctions if diplomatic efforts fail, saying, “We need to make tougher sanctions - much to what really hurts.”
Citing the upcoming “renewal of NPT (nuclear non-proliferation treaty),” Robert Cooper, Director General for External and Politico-Military Affairs at the Council of the European Union said, “If we wish to maintain it, its not just about dealing with Iran but its also about providing all countries with nuclear options for peaceful uses.”
CHINA, RUSSIA
“With Russia and China,” there is a “need to have a fundamental relationship,” Ignatius stressed.
Cooper called the events in Georgia, “a profound shock,” saying, “that changed the context of relations with Russia.” He, however, ruled out the military solutions saying, “solutions to problems are always political and that involves talking to people.”
CLIMATE CHANGE
On the issue of fight against climate change the speakers agreed that the US will be able to take the lead as the recent falling apart of the EU consensus on the issue was pointed out.
In a lighter tone, Cooper said, “Europe is always divided on something then agrees and then gets divided on something else but in Europe being divided means Europe is in the process of making a decision.”
Ignatius pointed at the “intensity of enthusiasm of young supporters of Obama,” with their passion and suggested that this can be involved both in the US and Europe,” along with Asian giants China and India, to address the climate change on a global scale.
Friday, October 31, 2008
MEP in Seoul predicts EU Trade Agreement possible in 2008
South Korea and the European Union are ready to sign the free trade agreement (FTA) according to visiting European lawmakers in Seoul. The Chairman of the European Parliament's Korea delegation, Austrian conservative Member of European Parliamnet (MEP) Hubert Pirker said in a statement from Seoul, “The trade agreement between the European Union and South Korea is practically ready for signing.”
After a range of meetings in Seoul, Pirker said, “In our meetings and negotiations with the South Korean Prime Minister, the ministers for foreign affairs and trade as well as with the responsible Korean negotiators for the trade agreement, we were able to come to an agreement on concluding the negotiations. Some fine points will have to be ironed out over the next month, but I expect a final agreement ready for signature before the end of this year.”
The statement from the MEP came as a surprise to business observers in Seoul and Brussels as during the FTA talks in August, South Korean Trade Ministry sources had hinted at differences on those “sticky issues,” while EU negotiator Ignacio Garcia Bercero told New Europe on August 30 in Seoul, “We had a very fruitful discussion and we agreed to continue talks.”
South Korean Deputy Trade Minister Hye-min Lee and Deputy chief negotiator in August told New Europe about the “sticky” issues and expectations on both sides, lamenting, “On the services sector, the EU expects we should give more than what we have given to the US - but when we negotiated with the US - we already had EU FTA in mind.” “What we have agreed with the US is not just for the US but also for the EU. The Europeans are asking for more than that which is very difficult,” he said. “We will be obliged to change our regulations but European will not change anything while Europeans are set to gain from the FTA,” the Korean negotiator added.
According to business sources speaking to New Europe the EU had during talks in August flatly rejected the demand of South Korea with a booming auto-industry, to drop tariffs on South Korean cars within three years after the bilateral talks take effect.
Another major obstacle to the FTA negotiations is the legal sector as Doo-Sik Kim, an international trade lawyer told journalists at a lunch organised by the Korea Press Foundation on August 25. Addressing the fear of Korean legal sector about the take-over and expansion of the European law firms in the Korean market, Kim said it was one of the least highlighted subjects but there is a strong opposition from the concerned lawyer lobbies.
After meeting with Korean Prime Minister Dr. Han Seung-soo and the Speaker of the National Assembly, Kim Hyeong-o, responsible for the ratification of the agreement, all involved ministers of President Lee Myung-bak's government, Pirker, “In view of the international financial crisis and the regional and global security implications, this visit of the EU delegation is of high importance, also in the eyes of our South Korean counterparts.”
The EU is South Korea’s second largest trade partner after China. In 2007, the bilateral trade volume between South Korea and the EU amounted to USD 89.8 billion.
After a range of meetings in Seoul, Pirker said, “In our meetings and negotiations with the South Korean Prime Minister, the ministers for foreign affairs and trade as well as with the responsible Korean negotiators for the trade agreement, we were able to come to an agreement on concluding the negotiations. Some fine points will have to be ironed out over the next month, but I expect a final agreement ready for signature before the end of this year.”
The statement from the MEP came as a surprise to business observers in Seoul and Brussels as during the FTA talks in August, South Korean Trade Ministry sources had hinted at differences on those “sticky issues,” while EU negotiator Ignacio Garcia Bercero told New Europe on August 30 in Seoul, “We had a very fruitful discussion and we agreed to continue talks.”
South Korean Deputy Trade Minister Hye-min Lee and Deputy chief negotiator in August told New Europe about the “sticky” issues and expectations on both sides, lamenting, “On the services sector, the EU expects we should give more than what we have given to the US - but when we negotiated with the US - we already had EU FTA in mind.” “What we have agreed with the US is not just for the US but also for the EU. The Europeans are asking for more than that which is very difficult,” he said. “We will be obliged to change our regulations but European will not change anything while Europeans are set to gain from the FTA,” the Korean negotiator added.
According to business sources speaking to New Europe the EU had during talks in August flatly rejected the demand of South Korea with a booming auto-industry, to drop tariffs on South Korean cars within three years after the bilateral talks take effect.
Another major obstacle to the FTA negotiations is the legal sector as Doo-Sik Kim, an international trade lawyer told journalists at a lunch organised by the Korea Press Foundation on August 25. Addressing the fear of Korean legal sector about the take-over and expansion of the European law firms in the Korean market, Kim said it was one of the least highlighted subjects but there is a strong opposition from the concerned lawyer lobbies.
After meeting with Korean Prime Minister Dr. Han Seung-soo and the Speaker of the National Assembly, Kim Hyeong-o, responsible for the ratification of the agreement, all involved ministers of President Lee Myung-bak's government, Pirker, “In view of the international financial crisis and the regional and global security implications, this visit of the EU delegation is of high importance, also in the eyes of our South Korean counterparts.”
The EU is South Korea’s second largest trade partner after China. In 2007, the bilateral trade volume between South Korea and the EU amounted to USD 89.8 billion.
Thursday, October 30, 2008
EU sets out ambitious plans to tackle financial crisis
The European Commission announced on Wednesday (October 29) it will outline late November an economic recovery plan for the European Union to guide it from the present “financial crisis” to the “sustainable development” to avoid the prospect of recession.
“We will bring forward on November 26, a comprehensive EU recovery plan, based on the framework we have approved today,” Commission President Jose Manuel Barroso told journalists, adding, “that recovery plan will include targeted short-term actions to add to the medium-term reform agenda.”
Outlining a four-pronged framework as the basis of the plan, Barroso highlighted pragmatic measures to help families and households across Europe, coordination and solidarity among member states, full use of flexibility allowed by EU rules and global governance.
SOCIAL RESPONSIBILITY
"Our top priority is to minimise the impact on jobs, purchasing power and prosperity of our citizens," he said. “We must keep unemployment to the absolute minimum and support those who have lost their jobs," Barroso added.
In a commission communication relating to the financial crisis, released after the press conference, the Commission stressed the need for social solidarity, saying that households and employees need to be cushioned from the full effects of the economic downturn.
The communication stated the chances for reviewing the terms for releasing money from the European Social Fund, which aims to provide educational opportunities and improve job skills, and review the effectiveness of the Global Adjustment Fund, which was established in 2007 to help workers laid off by companies that have moved their operations outside Europe.
Addressing a joint press conference with Barroso, European Economic and Monetary Affairs Commissioner Joaquin Almunia said, “We are now facing not only a financial crisis but a serious slowdown in our economies that is hitting households, businesses and jobs.”
FLEXIBILITY IN APPLICATION OF RULES
Calling on member states to use flexibility provided in European fiscal rules in the case of sharp slowdowns, Almunia said, “They should use the room for manoeuvre they have to cushion the impact," adding, “we have red lines, we cannot put an excessive burden on the next generation.”
Almunia said: "Given that inflationary pressures are now easing, monetary and fiscal policy can contribute to supporting demand ... member states can now use the room for maneuver they have created.”
Almunia insisted that the Stability and Growth Pact is the appropriate policy framework for the EU, adding that in case of extra-ordinary condition like present, the pact will be interpreted flexibly, allowing budget deficits to exceed three percent of gross domestic production provided the deviation is small and temporary.
“The pact is about peer support in a difficult situation as the one we are living in and not only about peer pressure,” he said.
Echoing Almunia, Barroso said EU countries should use to its full potential the flexibility that exists within the EU fiscal discipline, as well as within the competition, state aids and internal market rules.
Warning, “We need to swim together or else we will sink together,” Barroso also acknowledged that the member states held the "main instruments" for reviving growth and not the European Union adding, “Europe must confront the economic downturn with the same robust and coordinated approach we have taken on the financial crisis.”
Commission President Barroso, however, cautioned against using the financial crisis to bring in protectionism saying, “Trade barriers shut out prosperity and open the gates instead to short-term, economic populism. So yes to pro-activism, but no to protectionism.”
ENHANCING ROLE OF EIB, EBRD
Barroso and Almunia also urged the member states to look at the possibility of strengthening supranational financial institutions. Barroso said governments should also consider giving more money to the European Investment Bank that could direct funding to infrastructure projects or provide loans for small businesses hit by the credit crunch.
The European Bank for Reconstruction and Development (EBRD) could also receive more capital. The commission communication stated, “The EBRD has been playing a key role in financial sector reform and in financing the private sector in our newer member states. In the current financing environment its activities in these countries could be strengthened.
FINANCIAL SOLIDARITY
In the spirit of solidarity, EU governments agreed late Tuesday (October 28) to lend Hungary 6.5 billion Euro in a joint bid with the International Monetary Fund (IMF) to help the country deal with the financial crisis.
Barroso said the EU stands ready to provide substantial medium-term financial assistance to other member states experiencing balance of payments pressures or serious financial stability risks saying, “we need to be prudent but also vigilant.”
Amid fears that several new EU member states and other countries might eventually need assistance, Commissioner Almunia confirmed that no other country has asked for a rescue package similar to one provided to Hungary.
Hinting at the crisis-situation in Ukraine and others, Commission President Barroso said, “neighbours are under stress but EU institutions are ready to provide.”
INTERNATIONAL COOPERATION
Barroso promised EU support to improve cooperation and coherence at international level saying, “When you have global interdependence, you need global governance.”
Commenting on the Summit of Group of 20 in Washington on November 15 to reform the global financial system, Barroso said the summit must deliver the first results so as to rebuild a climate of confidence, which is part of the solution to the current crisis.
Urging China to be part of the solution, Barroso said, “China has been benefiting from this globalisation and has made big financial reserves and its time to show that they can help in this time of crisis.”
Barroso called on the IMF to be prepared to intervene with emergency financing as there were signs that the crisis is spreading to emerging markets. China and the Gulf countries could do more to help the IMF support countries hit by the financial crisis, Barroso said adding, “The idea put forward by (British) Prime Minister Gordon Brown, and I completely agree with him, is that China and others could help more the IMF ... Not only China but also the Gulf countries could maybe give a concrete demonstration of their sense of responsibility.”
On the subject of overhaul of the relevant financial institutions, the commission communication stated, “Europe is well placed to play an active role in designing the new global architecture and making it work effectively,” based on key principles of efficiency, transparency plus accountability and representation.
LACK OF CONFIDENCE
Commenting on the plunging stock markets even with the pumping of liquidity in the banking system, Barroso blamed it on lack of confidence in the economy, Barroso said, “People are expecting the negative effects on the so-called real economy and that's why it's important ... that we are acting in a coordinated way to address the problems of the real economy.” Barroso sounded positive as he declared, “Europe will come through this financial storm and will emerge stronger.”
Almunia said that he had made a proposal to raise the maximum EU aid to member states facing financing troubles to 25 billion Euro as according to a 2002 rule, the EU can provide up to 12 billion Euro in total financial assistance to member states that do not use the Euro when they run into a balance of payments crisis.
"We sent to the council (of member states) proposals for increasing this ceiling to 25 billion Euro," Almunia told journalists. EU officials later said that it will be on the agenda of the meeting of the EU finance ministers on Tuesday (November 4) in Brussels.
“We will bring forward on November 26, a comprehensive EU recovery plan, based on the framework we have approved today,” Commission President Jose Manuel Barroso told journalists, adding, “that recovery plan will include targeted short-term actions to add to the medium-term reform agenda.”
Outlining a four-pronged framework as the basis of the plan, Barroso highlighted pragmatic measures to help families and households across Europe, coordination and solidarity among member states, full use of flexibility allowed by EU rules and global governance.
SOCIAL RESPONSIBILITY
"Our top priority is to minimise the impact on jobs, purchasing power and prosperity of our citizens," he said. “We must keep unemployment to the absolute minimum and support those who have lost their jobs," Barroso added.
In a commission communication relating to the financial crisis, released after the press conference, the Commission stressed the need for social solidarity, saying that households and employees need to be cushioned from the full effects of the economic downturn.
The communication stated the chances for reviewing the terms for releasing money from the European Social Fund, which aims to provide educational opportunities and improve job skills, and review the effectiveness of the Global Adjustment Fund, which was established in 2007 to help workers laid off by companies that have moved their operations outside Europe.
Addressing a joint press conference with Barroso, European Economic and Monetary Affairs Commissioner Joaquin Almunia said, “We are now facing not only a financial crisis but a serious slowdown in our economies that is hitting households, businesses and jobs.”
FLEXIBILITY IN APPLICATION OF RULES
Calling on member states to use flexibility provided in European fiscal rules in the case of sharp slowdowns, Almunia said, “They should use the room for manoeuvre they have to cushion the impact," adding, “we have red lines, we cannot put an excessive burden on the next generation.”
Almunia said: "Given that inflationary pressures are now easing, monetary and fiscal policy can contribute to supporting demand ... member states can now use the room for maneuver they have created.”
Almunia insisted that the Stability and Growth Pact is the appropriate policy framework for the EU, adding that in case of extra-ordinary condition like present, the pact will be interpreted flexibly, allowing budget deficits to exceed three percent of gross domestic production provided the deviation is small and temporary.
“The pact is about peer support in a difficult situation as the one we are living in and not only about peer pressure,” he said.
Echoing Almunia, Barroso said EU countries should use to its full potential the flexibility that exists within the EU fiscal discipline, as well as within the competition, state aids and internal market rules.
Warning, “We need to swim together or else we will sink together,” Barroso also acknowledged that the member states held the "main instruments" for reviving growth and not the European Union adding, “Europe must confront the economic downturn with the same robust and coordinated approach we have taken on the financial crisis.”
Commission President Barroso, however, cautioned against using the financial crisis to bring in protectionism saying, “Trade barriers shut out prosperity and open the gates instead to short-term, economic populism. So yes to pro-activism, but no to protectionism.”
ENHANCING ROLE OF EIB, EBRD
Barroso and Almunia also urged the member states to look at the possibility of strengthening supranational financial institutions. Barroso said governments should also consider giving more money to the European Investment Bank that could direct funding to infrastructure projects or provide loans for small businesses hit by the credit crunch.
The European Bank for Reconstruction and Development (EBRD) could also receive more capital. The commission communication stated, “The EBRD has been playing a key role in financial sector reform and in financing the private sector in our newer member states. In the current financing environment its activities in these countries could be strengthened.
FINANCIAL SOLIDARITY
In the spirit of solidarity, EU governments agreed late Tuesday (October 28) to lend Hungary 6.5 billion Euro in a joint bid with the International Monetary Fund (IMF) to help the country deal with the financial crisis.
Barroso said the EU stands ready to provide substantial medium-term financial assistance to other member states experiencing balance of payments pressures or serious financial stability risks saying, “we need to be prudent but also vigilant.”
Amid fears that several new EU member states and other countries might eventually need assistance, Commissioner Almunia confirmed that no other country has asked for a rescue package similar to one provided to Hungary.
Hinting at the crisis-situation in Ukraine and others, Commission President Barroso said, “neighbours are under stress but EU institutions are ready to provide.”
INTERNATIONAL COOPERATION
Barroso promised EU support to improve cooperation and coherence at international level saying, “When you have global interdependence, you need global governance.”
Commenting on the Summit of Group of 20 in Washington on November 15 to reform the global financial system, Barroso said the summit must deliver the first results so as to rebuild a climate of confidence, which is part of the solution to the current crisis.
Urging China to be part of the solution, Barroso said, “China has been benefiting from this globalisation and has made big financial reserves and its time to show that they can help in this time of crisis.”
Barroso called on the IMF to be prepared to intervene with emergency financing as there were signs that the crisis is spreading to emerging markets. China and the Gulf countries could do more to help the IMF support countries hit by the financial crisis, Barroso said adding, “The idea put forward by (British) Prime Minister Gordon Brown, and I completely agree with him, is that China and others could help more the IMF ... Not only China but also the Gulf countries could maybe give a concrete demonstration of their sense of responsibility.”
On the subject of overhaul of the relevant financial institutions, the commission communication stated, “Europe is well placed to play an active role in designing the new global architecture and making it work effectively,” based on key principles of efficiency, transparency plus accountability and representation.
LACK OF CONFIDENCE
Commenting on the plunging stock markets even with the pumping of liquidity in the banking system, Barroso blamed it on lack of confidence in the economy, Barroso said, “People are expecting the negative effects on the so-called real economy and that's why it's important ... that we are acting in a coordinated way to address the problems of the real economy.” Barroso sounded positive as he declared, “Europe will come through this financial storm and will emerge stronger.”
Almunia said that he had made a proposal to raise the maximum EU aid to member states facing financing troubles to 25 billion Euro as according to a 2002 rule, the EU can provide up to 12 billion Euro in total financial assistance to member states that do not use the Euro when they run into a balance of payments crisis.
"We sent to the council (of member states) proposals for increasing this ceiling to 25 billion Euro," Almunia told journalists. EU officials later said that it will be on the agenda of the meeting of the EU finance ministers on Tuesday (November 4) in Brussels.
Wednesday, October 29, 2008
European leaders to meet ahead of financial summit
European leaders are set to gather in Brussels Nov 7 to try and agree to a consensus ahead of a global financial summit to address reforms to international financial institutions.
France, which holds the rotating European Union presidency this year, said in a brief statement Friday that the informal meeting of EU heads of state and government will prepare the EU's 27 member-states for an upcoming financial summit Nov 15 in Washington on the global financial crisis.
The summit was announced by the White House after a meeting last weekend between US President George W. Bush, French President Nicolas Sarkozy and European Commission President Jose Manuel Barroso.
The White House said President Bush would host leaders of 20 of the world's richest nations and biggest emerging economies, including India and China.
At an emergency EU Summit Oct 15-16 here, EU leaders had agreed that a massive overhaul of the world's financial system is needed to prevent another financial crisis and asked Sarkozy and Barroso to hold further discussions with the US administration.
The European Commission, the executive arm of the EU, however, failed to answer questions from journalists over what preparations were in place for the Nov 7 summit.
Commission spokesperson Pia Ahrenkilde Hansen said European Commission members are to meet Oct 29 to prepare for the upcoming global summit in the US.
The US-hosted talks are expected to draw leaders from the Group of 20: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, Britain, the US, and the European Union.
France, which holds the rotating European Union presidency this year, said in a brief statement Friday that the informal meeting of EU heads of state and government will prepare the EU's 27 member-states for an upcoming financial summit Nov 15 in Washington on the global financial crisis.
The summit was announced by the White House after a meeting last weekend between US President George W. Bush, French President Nicolas Sarkozy and European Commission President Jose Manuel Barroso.
The White House said President Bush would host leaders of 20 of the world's richest nations and biggest emerging economies, including India and China.
At an emergency EU Summit Oct 15-16 here, EU leaders had agreed that a massive overhaul of the world's financial system is needed to prevent another financial crisis and asked Sarkozy and Barroso to hold further discussions with the US administration.
The European Commission, the executive arm of the EU, however, failed to answer questions from journalists over what preparations were in place for the Nov 7 summit.
Commission spokesperson Pia Ahrenkilde Hansen said European Commission members are to meet Oct 29 to prepare for the upcoming global summit in the US.
The US-hosted talks are expected to draw leaders from the Group of 20: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, Britain, the US, and the European Union.
European managers learn 'good guanxi' in China
The European Union (EU) has teamed up with China in a two-way partnership for training professionals and managers. The programme offers high-level training for EU managers and professionals interested in gaining China expertise, as well as Chinese managers with an ambition to train in Europe.
According to a survey published recently by the human resource consultancy Hewitt Associates, 55 percent of corporations with a presence in China plan to hire new staff in 2008.
For the EU-based companies, especially small and medium enterprises (SMEs), the EU-China Managers Exchange and Training Programme (METP), financed by the EU and China, offers the possibility to train their employees to become qualified experts in the Chinese market.
Stefan Hell, team leader in Beijing said: 'Despite the strong coverage China has received through the Beijing Olympics, the country and its business culture remain unknown to most European managers.'
"To be successful in China, one needs a profound knowledge of economy, culture and business ethics. And this is what METP offers applicants. At the same time, the programme functions as a platform where Europeans and Chinese meet and build long-term relationships - the basic foundation for successful business in China,' he added.
Julius Daujotas from Lithuania, who has already travelled to China and participated in the programme, told IANS: 'The company I am working for (Umega AB) manufactures heating equipment for industrial and laboratory purposes. Mainly it's heating furnaces up to 1,800 degrees Celcius.'
'Our company is selling quite a lot in Asian markets, for example Pakistan, India, Indonesia, but the Chinese market was still unexplored for us. So, one of the main objectives was to enter China with our production. To do that is a lot easier when you are able to speak Chinese, when you are familiar with local traditions and customs,' Daujotas explained.
'During the cultural training, we had a chance to meet each other more closely. For doing business in China, to have good 'guanxi' (relations) is very important,' he said.
'The most interesting experience during my stay was seeing the bargaining in markets - and the way salesmen try to attract your attention. Initially I was shocked, but then I understood the way of doing this and it became fun. Also it's a really good practice for your Chinese language,' Daujotas added.
According to a survey published recently by the human resource consultancy Hewitt Associates, 55 percent of corporations with a presence in China plan to hire new staff in 2008.
For the EU-based companies, especially small and medium enterprises (SMEs), the EU-China Managers Exchange and Training Programme (METP), financed by the EU and China, offers the possibility to train their employees to become qualified experts in the Chinese market.
Stefan Hell, team leader in Beijing said: 'Despite the strong coverage China has received through the Beijing Olympics, the country and its business culture remain unknown to most European managers.'
"To be successful in China, one needs a profound knowledge of economy, culture and business ethics. And this is what METP offers applicants. At the same time, the programme functions as a platform where Europeans and Chinese meet and build long-term relationships - the basic foundation for successful business in China,' he added.
Julius Daujotas from Lithuania, who has already travelled to China and participated in the programme, told IANS: 'The company I am working for (Umega AB) manufactures heating equipment for industrial and laboratory purposes. Mainly it's heating furnaces up to 1,800 degrees Celcius.'
'Our company is selling quite a lot in Asian markets, for example Pakistan, India, Indonesia, but the Chinese market was still unexplored for us. So, one of the main objectives was to enter China with our production. To do that is a lot easier when you are able to speak Chinese, when you are familiar with local traditions and customs,' Daujotas explained.
'During the cultural training, we had a chance to meet each other more closely. For doing business in China, to have good 'guanxi' (relations) is very important,' he said.
'The most interesting experience during my stay was seeing the bargaining in markets - and the way salesmen try to attract your attention. Initially I was shocked, but then I understood the way of doing this and it became fun. Also it's a really good practice for your Chinese language,' Daujotas added.
Friday, October 24, 2008
European Parliament puts China in tight corner with Sakharov Prize for dissident
The European Parliament (EP)’s prestigious Sakharov Prize for Freedom of Thought was awarded to a jailed Chinese human rights activist and political dissident, Hu Jia whose field of work ranges from environmental causes to HIV/AIDS advocacy and a prominent voice calling for an official enquiry into the 1989 Tiananmen Square massacre.
The European Parliament every year since 1988 awards the Sakharov Prize for Freedom of Thought, in honour of the Soviet physicist and political dissident Andrei Sakharov. Individuals or global organisations are eligible if they have made a mark in the field of the fight for human rights or democracy.
Announced on October 23, on the eve of the 7th ASEM (Asia-Europe Meeting), hosted by Beijing on October 24-25, the award is an open snub to the Chinese officials who had warned that they would consider it an affront.
Hu Jia is in prison and is stated to be in poor health with stomach problems. “To present this type of prize to a criminal amounts to interference with China's judicial sovereignty, and also shows disrespect towards human rights,” spokesman Qin Gang of China's Ministry of Foreign Affairs was cited as saying before the award announcement was made in Strasbourg at the Plenary session of the European Parliament, the only directly elected European institution.
With the formal acceptance of six new members, Bulgaria, India, Mongolia, Pakistan, Romania and the ASEAN (Association of the Southeast Asian Nations) Secretariat, the gathering is set to swell the membership to 45.
According to political pundits, the Summit will be more a testing ground for the new arrivals with agenda being overshadowed by ongoing global financial events.
Yeo Lay Hwee, senior research fellow at the Singapore Institute of International Relations and Associate Director of the EU Centre based in Singapore warned, “we must not expect too much or we will be disappointed,” as ASEM is “not a venue for negotiations,” but “an ideal platform for testing new and evolving ideas.”
She was addressing a select gathering of diplomats, academics and journalists at a Brussels event titled, “Injecting new momentum into ASEM, an uphill struggle?” organised by Brussels based think-tank “European Policy Centre,” (EPC).
Addressing the audience Geoffrey Barret, senior advisor for Asia at the European Commission said, “ASEM is based entirely on political will,” and outlined four building blocks of the ASEM platform: Climate negotiations, Development co-operation on Millienuium Development Goals, Labour employment and social cohesion, Human rights.
With Hu Jia being bestowed with European prize, “human rights,” are set to be a thorny issue even if global financial crisis is supposed to hog the limelight.
The European Parliament every year since 1988 awards the Sakharov Prize for Freedom of Thought, in honour of the Soviet physicist and political dissident Andrei Sakharov. Individuals or global organisations are eligible if they have made a mark in the field of the fight for human rights or democracy.
Announced on October 23, on the eve of the 7th ASEM (Asia-Europe Meeting), hosted by Beijing on October 24-25, the award is an open snub to the Chinese officials who had warned that they would consider it an affront.
Hu Jia is in prison and is stated to be in poor health with stomach problems. “To present this type of prize to a criminal amounts to interference with China's judicial sovereignty, and also shows disrespect towards human rights,” spokesman Qin Gang of China's Ministry of Foreign Affairs was cited as saying before the award announcement was made in Strasbourg at the Plenary session of the European Parliament, the only directly elected European institution.
With the formal acceptance of six new members, Bulgaria, India, Mongolia, Pakistan, Romania and the ASEAN (Association of the Southeast Asian Nations) Secretariat, the gathering is set to swell the membership to 45.
According to political pundits, the Summit will be more a testing ground for the new arrivals with agenda being overshadowed by ongoing global financial events.
Yeo Lay Hwee, senior research fellow at the Singapore Institute of International Relations and Associate Director of the EU Centre based in Singapore warned, “we must not expect too much or we will be disappointed,” as ASEM is “not a venue for negotiations,” but “an ideal platform for testing new and evolving ideas.”
She was addressing a select gathering of diplomats, academics and journalists at a Brussels event titled, “Injecting new momentum into ASEM, an uphill struggle?” organised by Brussels based think-tank “European Policy Centre,” (EPC).
Addressing the audience Geoffrey Barret, senior advisor for Asia at the European Commission said, “ASEM is based entirely on political will,” and outlined four building blocks of the ASEM platform: Climate negotiations, Development co-operation on Millienuium Development Goals, Labour employment and social cohesion, Human rights.
With Hu Jia being bestowed with European prize, “human rights,” are set to be a thorny issue even if global financial crisis is supposed to hog the limelight.
Tuesday, October 21, 2008
EU looks forward to taming Asian giants at ASEM Beijing Summit
French President Nicolas Sarkozy, the current holder of rotating EU Presidency on Tuesday (October 21) announced his intentions to bring China and India to the international negotiating table slated for next month to streamline global financial reforms aimed at international financial institutions including International Monetary Fund (IMF).
Addressing the Plenary Session of the European Parliament at its Strasbourg seat, Sarkozy said, “With (European Commission) President (Jose Manuel) Barroso, we are going to visit China, the aim being also to convince China and India to take part in this summit.”
Reiterating, “This is a global crisis so the response can only be global,’’ the EU Council President asked, “Who will take part in this summit?”
“There are a lot of different schools. I believe the most straightforward thing would be the G8, obviously with Russia. We need to add the G5 to that, obviously with China and India,’’ Sarkozy said answering his own question.
Beijing is hosting the 7th ASEM (Asia-Europe Meeting) on October 24-25 and with the formal acceptance of six new members, Bulgaria, India, Mongolia, Pakistan, Romania and the ASEAN (Association of the Southeast Asian Nations) Secretariat, the gathering is set to swell the membership to 45.
According to political pundits, with the presence of Asian economic heavy weights China and India along with arch-rivals Pakistan and India, the Summit will be more a testing ground for the new arrivals with agenda being overshadowed by ongoing global financial events.
Yeo Lay Hwee, senior research fellow at the Singapore Institute of International Relations and Associate Director of the EU Centre in Singapore warned, “we must not expect too much or we will be disappointed,” as ASEM is “not a venue for negotiations,” but “an ideal platform for testing new and evolving ideas.”
Addressing a select gathering of diplomats, academics and journalists at an event titled, “Injecting new momentum into ASEM, an uphill struggle?” organised by Brussels based think-tank “European Policy Centre,” (EPC) on Monday (October 20), Lay Hwee pointed that there was no doubt that China will deliver “a superbly organised and executed meeting.”
Quoting the theme of the Summit, “Vision and Action --Towards a Win-Win Solution,” she said, “Taking ASEM for what it is, an informal dialogue form, one should be realistic and not expect anything beyond a talk fest, the outcome of which will be more declarations noting the challenges ahead and stating common positions on some of the issues.”
Going down the memory lane, Lay Hwee said, “Ten years ago, the EU agreed to help (Asian) member states affected by the Asian financial crisis and today we have another financial crisis.” Citing, “crisis brings opportunity,” she added, “ASEM, not to look irrelevant, must make an impact.”
“We expect to consolidate progress made at the Helsinki (Summit) in 2006,” hoped Geoffrey Barret, senior advisor for Asia at the European Commission. Addressing the audience Barret said, “ASEM is based entirely on political will,” and outlined four building blocks of the ASEM platform:
Climate negotiations, Development co-operation on Millienuium Development Goals, Labour employment and social cohesion, Human rights.
BURMA IN, NO NORTH KOREA
On the question of Burma, Lay Hwee said, “the EU changed attitude saying better to engage than to leave them alone.”
Professor Xing Hua, senior researcher and director, Centre for EU studies, CIIS, added, “If we are patient and skillful, we can help Burma to seek solutions to their internal problems.”
No speaker on the panel responded to the question of participation of North Korea in ASEM as China, the mentor of North Korea was holding the Summit.
FINANCIAL PERSPECTIVE
Moreover, Barret said he expected another declaration on international financial development adding that ASEM 7 will be the largest event ever hosted by the Chinese after the Olympic games representing 60 percent of the world population and 60 percent of global trade.
Founded in 1996, with 27 members, ASEM is going to be 45 members strong at Beijing and is looked at as the main multilateral channel for communication between Asia and Europe and six summits have taken place till date.
According to figures released on Monday (October 20) by the European Union’s statistics bureau Eurostat, the EU exports between 2000 and 2007, to the 16 Asian countries in ASEM rose from 146 billion Euro to 228 billion, while imports increased from 285 billion to 459 billion Euro.
The Asian countries accounted for more than a quarter of the EU's total external trade in goods in 2007. However, their trade with EU showed very different patterns between 2000 and 2007.
Among the 16 Asian countries, China was not only the leading destination for EU exports in 2007, accounting for 31 percent of the total, but also the leading source of EU imports, according to Eurostat.
Addressing the Plenary Session of the European Parliament at its Strasbourg seat, Sarkozy said, “With (European Commission) President (Jose Manuel) Barroso, we are going to visit China, the aim being also to convince China and India to take part in this summit.”
Reiterating, “This is a global crisis so the response can only be global,’’ the EU Council President asked, “Who will take part in this summit?”
“There are a lot of different schools. I believe the most straightforward thing would be the G8, obviously with Russia. We need to add the G5 to that, obviously with China and India,’’ Sarkozy said answering his own question.
Beijing is hosting the 7th ASEM (Asia-Europe Meeting) on October 24-25 and with the formal acceptance of six new members, Bulgaria, India, Mongolia, Pakistan, Romania and the ASEAN (Association of the Southeast Asian Nations) Secretariat, the gathering is set to swell the membership to 45.
According to political pundits, with the presence of Asian economic heavy weights China and India along with arch-rivals Pakistan and India, the Summit will be more a testing ground for the new arrivals with agenda being overshadowed by ongoing global financial events.
Yeo Lay Hwee, senior research fellow at the Singapore Institute of International Relations and Associate Director of the EU Centre in Singapore warned, “we must not expect too much or we will be disappointed,” as ASEM is “not a venue for negotiations,” but “an ideal platform for testing new and evolving ideas.”
Addressing a select gathering of diplomats, academics and journalists at an event titled, “Injecting new momentum into ASEM, an uphill struggle?” organised by Brussels based think-tank “European Policy Centre,” (EPC) on Monday (October 20), Lay Hwee pointed that there was no doubt that China will deliver “a superbly organised and executed meeting.”
Quoting the theme of the Summit, “Vision and Action --Towards a Win-Win Solution,” she said, “Taking ASEM for what it is, an informal dialogue form, one should be realistic and not expect anything beyond a talk fest, the outcome of which will be more declarations noting the challenges ahead and stating common positions on some of the issues.”
Going down the memory lane, Lay Hwee said, “Ten years ago, the EU agreed to help (Asian) member states affected by the Asian financial crisis and today we have another financial crisis.” Citing, “crisis brings opportunity,” she added, “ASEM, not to look irrelevant, must make an impact.”
“We expect to consolidate progress made at the Helsinki (Summit) in 2006,” hoped Geoffrey Barret, senior advisor for Asia at the European Commission. Addressing the audience Barret said, “ASEM is based entirely on political will,” and outlined four building blocks of the ASEM platform:
Climate negotiations, Development co-operation on Millienuium Development Goals, Labour employment and social cohesion, Human rights.
BURMA IN, NO NORTH KOREA
On the question of Burma, Lay Hwee said, “the EU changed attitude saying better to engage than to leave them alone.”
Professor Xing Hua, senior researcher and director, Centre for EU studies, CIIS, added, “If we are patient and skillful, we can help Burma to seek solutions to their internal problems.”
No speaker on the panel responded to the question of participation of North Korea in ASEM as China, the mentor of North Korea was holding the Summit.
FINANCIAL PERSPECTIVE
Moreover, Barret said he expected another declaration on international financial development adding that ASEM 7 will be the largest event ever hosted by the Chinese after the Olympic games representing 60 percent of the world population and 60 percent of global trade.
Founded in 1996, with 27 members, ASEM is going to be 45 members strong at Beijing and is looked at as the main multilateral channel for communication between Asia and Europe and six summits have taken place till date.
According to figures released on Monday (October 20) by the European Union’s statistics bureau Eurostat, the EU exports between 2000 and 2007, to the 16 Asian countries in ASEM rose from 146 billion Euro to 228 billion, while imports increased from 285 billion to 459 billion Euro.
The Asian countries accounted for more than a quarter of the EU's total external trade in goods in 2007. However, their trade with EU showed very different patterns between 2000 and 2007.
Among the 16 Asian countries, China was not only the leading destination for EU exports in 2007, accounting for 31 percent of the total, but also the leading source of EU imports, according to Eurostat.
Monday, October 13, 2008
EU, CoE join hands against death penalty
The European continent got together on October 10 to reiterate its commitment to work towards the universal abolition of the “Death Penalty” punishment. On the occasion of the World and European day against the death penalty, European Commission Vice President Jacques Barrot, Commissioner responsible for freedom, justice and security stated, “Europe has created a ‘de facto’ death penalty-free zone stretching from Iceland in the west to Vladivostok in the east and from Norway in the north to the south-east of Turkey – this is one of Europe's greatest achievements.”
"Nevertheless,” the Vice-President continued, "public debates within our societies demonstrate the need to reiterate, time and time again, that the abolition of the death penalty is an essential achievement for the respect for human dignity. This is the reason the European Commission works side by side with NGOs that are active in this field and supports abolitionist actions.”
European Commissioner for External Relations and European Neighbourhood Policy, Benita Ferrero-Waldner commented: "I am proud of the EU's leading role in the international efforts to abolish the death penalty. Although over half the countries in the world have abolished the death penalty in law or practice, the global figures for its use remain much too high.”
Recognising the “plight of victims of violent crime,” the Commissioner observed that the “death penalty is not the solution,” adding, “on the contrary, it only serves to aggravate a culture of violence and retribution. The Commission is determined to work towards the universal abolition of the death penalty through all available diplomatic channels and as a leading donor in this field.”
The President of the European Parliament, Hans-Gert Pöttering said: "The European Day against the death penalty is the day on which we remember that the defence of human rights and the necessity of a justice system which is based on the respect of human rights and the dignity of the human being, is an essential part of our common values.”
The death penalty is a breach of fundamental human rights and failure to respect the dignity of the human being and the right to life. The European Parliament will fight against the death penalty under any circumstances everywhere in the world."
Signing a Joint Declaration with the Presidents of the European Parliament, of the Council and of the European Commission, on the EU side, and by the President of the Parliamentary Assembly, the Chairman of the Committee of Ministers and the Secretary General of the Council of Europe, PACE President Lluís Maria de Puig said, "To die by order of the state, decreed by a judge or a politician as punishment for a crime, is thankfully a thing of the past in Europe.”
"But human dignity demands that we put our arguments to those who still carry out this practice. Once a year, we join with others across the world to press for a global moratorium on executions. The tide is turning and one day, I am sure, the death penalty will pass into history," PACE President added.
Abolition of the death penalty is a condition of membership in the 47-nation Council of Europe, where no executions have taken place since 1997, the statement noted.
During 2007, at least 1,252 people were executed in 24 countries, and at least 3,347 people were sentenced to death in 51 countries. 88 percent of all known executions took place in five countries: China, Iran, Saudi Arabia, Pakistan and the US.
"Nevertheless,” the Vice-President continued, "public debates within our societies demonstrate the need to reiterate, time and time again, that the abolition of the death penalty is an essential achievement for the respect for human dignity. This is the reason the European Commission works side by side with NGOs that are active in this field and supports abolitionist actions.”
European Commissioner for External Relations and European Neighbourhood Policy, Benita Ferrero-Waldner commented: "I am proud of the EU's leading role in the international efforts to abolish the death penalty. Although over half the countries in the world have abolished the death penalty in law or practice, the global figures for its use remain much too high.”
Recognising the “plight of victims of violent crime,” the Commissioner observed that the “death penalty is not the solution,” adding, “on the contrary, it only serves to aggravate a culture of violence and retribution. The Commission is determined to work towards the universal abolition of the death penalty through all available diplomatic channels and as a leading donor in this field.”
The President of the European Parliament, Hans-Gert Pöttering said: "The European Day against the death penalty is the day on which we remember that the defence of human rights and the necessity of a justice system which is based on the respect of human rights and the dignity of the human being, is an essential part of our common values.”
The death penalty is a breach of fundamental human rights and failure to respect the dignity of the human being and the right to life. The European Parliament will fight against the death penalty under any circumstances everywhere in the world."
Signing a Joint Declaration with the Presidents of the European Parliament, of the Council and of the European Commission, on the EU side, and by the President of the Parliamentary Assembly, the Chairman of the Committee of Ministers and the Secretary General of the Council of Europe, PACE President Lluís Maria de Puig said, "To die by order of the state, decreed by a judge or a politician as punishment for a crime, is thankfully a thing of the past in Europe.”
"But human dignity demands that we put our arguments to those who still carry out this practice. Once a year, we join with others across the world to press for a global moratorium on executions. The tide is turning and one day, I am sure, the death penalty will pass into history," PACE President added.
Abolition of the death penalty is a condition of membership in the 47-nation Council of Europe, where no executions have taken place since 1997, the statement noted.
During 2007, at least 1,252 people were executed in 24 countries, and at least 3,347 people were sentenced to death in 51 countries. 88 percent of all known executions took place in five countries: China, Iran, Saudi Arabia, Pakistan and the US.
Sunday, September 7, 2008
South Korea, EU fail to resolve FTA differences
Seoul, September 1 - South Korea and the European Union failed to narrow their gap in their free trade agreement (FTA) talks, South Korean Trade Ministry sources said on August 29, but European Union negotiator Ignacio Garcia Bercero told New Europe on August 30 in Seoul, “We had a very fruitful discussion and we agreed to continue talks.”
About the ministerial level meeting before the end of the year, the EU negotiator told New Europe, “We expect to have the meeting sometime in October this year.”
About the ministerial level meeting before the end of the year, the EU negotiator told New Europe, “We expect to have the meeting sometime in October this year.”
South Korean Deputy Trade Minister Hye-min Lee joined his European counterpart Bercero in the eighth round of talks held in the framework of FTA negotiations since April last year.
During a three-day negotiations in Seoul, South Korean capital, the two sides decided to go ahead and seek a package solution on “sticky” issues like auto trade with a meeting proposed in mid-September, Korean sources told New Europe.
According to business sources speaking to New Europe the EU had flatly rejected the demand of South Korea with a booming auto-industry, to drop tariffs on South Korean cars within three years after the bilateral talks take effect.
Earlier on the eve of the talks, Deputy Minister and Deputy chief negotiator Lee spoke to New Europe on the “sticky” issues and expectations on both sides. “On the services sector, the EU expects we should give more than what we have given to the US - but when we negotiated with the US - we already had EU FTA in mind.” “What we have agreed with the US is not just for the US but also for the EU. The Europeans are asking for more than that which is very difficult,” he said.
Earlier on the eve of the talks, Deputy Minister and Deputy chief negotiator Lee spoke to New Europe on the “sticky” issues and expectations on both sides. “On the services sector, the EU expects we should give more than what we have given to the US - but when we negotiated with the US - we already had EU FTA in mind.” “What we have agreed with the US is not just for the US but also for the EU. The Europeans are asking for more than that which is very difficult,” he said.
“We will be obliged to change our regulations but European will not change anything while Europeans are set to gain from the FTA,” the Korean negotiator added.
On the general relationship with the EU, Minister Lee lamented, “If all the countries are place in order of relation with the EU, Korea will be placed last,” asking, “Please name any country that has less relations with the EU.”
The Minister Lee was, however, hopeful in saying, “FTA can be a backbone for future relationships with the EU and Korea. Privileged relationship originating from FTA can give rise to more generalised relationship development between two sides.” Min-soon Song, assemblyman of the opposition Democratic Party and former Korean Minister of Foreign Affairs and Trade till 2007 told New Europe, “These negotiations started when I was the Minister for Foreign Affairs and Trade and Korean government is eager to have the FTA.”
Pointing to already finalised US Korea FTA, he said, “The successful record of negotiations with the US for the FTA can be a good analogy and personally I support these negotiations.” Another major obstacle to the FTA negotiations is the legal sector as Doo-Sik Kim, an international trade lawyer told journalists at a lunch organised by the Korea Press Foundation on August 25.
Addressing the fear of Korean legal sector about the take-over and expansion of the European law firms in the Korean market, Kim said it was one of the least highlighted subjects but there is a strong opposition from the concerned lawyer lobbies. The EU is South Korea’s second largest trade partner after China. In 2007, the bilateral trade volume between South Korea and the EU amounted to USD 89.8 billion.
Wednesday, May 28, 2008
India, EU at crossroads
Common values can play catalyst for compatible views
Rising from the ashes of two World Wars and expanding to include 27 Member States with more in the waiting, the European Union today is a bastion of peace, harmony and prosperity. On the other hand, India, with 28 States and seven Union Territories, has emerged over last six decades in a buoyant mood thanks to its democratic principles, freedom of speech and its new found economic strengths.
At The Hague Summit 2004, India and the EU agreed to forge a “Strategic Partnership,” which was a result of an earlier EU publication in December 2003 when the EU published its first-ever security strategy identifying India along with the US, Russia, Japan, China and Canada, as the ones with whom it should develop a “Strategic Partnership,” in order to build an “effective multilateral system leading to a fairer, safer and more United World.”
India, riding on its financial success story, is focusing on greater worldwide visibility, prestige and political clout with a demand for a UN Security Council seat and favourable visa exchange partnerships. In the same vein, the EU wants to use its Strategic Partnership with India, the world’s largest democracy, to meet 21st Century challenges like terrorism, proliferation of Weapons of Mass Destruction (WMDs), failed states and regional conflicts.
For example, the EU expected Delhi with its growing economic ties, to stand up for democracy and human rights during Burma’s military crackdown on dissidents, but Delhi responded saying it does not believe sanctions work. There will always be differences but those as such need not become insurmountable obstacles to building a deeper and wider relationship.
Political ties can not go far without financial bonds and a look at the trade figures from recent past show that its time to inject much needed momentum into an uninspiring trade relationship. The trade statistics shifted a gear from a meagre less than five billion Euro in 1980 to a respectable more than 45 billion Euro in 2006. Although trade with the EU is 20 percent of India’s import-export business, making the EU India’s largest trading partner in 2006, India’s share is only 1.8 percent of total EU trade.
In the context of the ongoing negotiations in the EU-India Free Trade Agreement, there are some stumbling blocks that need to be addressed on both sides. According to reliable sources, the major hurdle is in the fields of agriculture which is a protected sector in the EU which earmarks 40 percent of its total budget to this sector where there are subsidies galore.
The EU has, in recent times, accepted the fact that Indian import tariffs have been substantially reduced but it complains they are still high by international standards. The EU calls it a “complex and non-transparent” system as it points at additional duties, taxes, and charges that are levied on top of the basic customs duties.
Pointing to the “non-tariff” barriers, the EU lists quantitative restrictions, mandatory testing, import licensing, certification for a large number of products and a complicated procedural modus operandi as the major speed breakers for a smooth trade relationship. With Indians finding the EU institutions bewildering and complex, India has its own set of complaints, foremost being in recent times the frequent use of anti-dumping duties on its exports including footwear.
The OECD (Organization for Economic Cooperation and Development) in a recent report highlighted the need for India to go for tough and bold reforms in opening its economy more rapidly to international trade and FDI (Foreign Direct Investment) by loosening service sectors like insurance and retailing, while India argues it has liberalised the FDI regime considerably.
The figures are still disappointing, as in recent years the FDI flow to India from the EU has been a paltry less than two percent of the total FDI outflow from the EU.Climate Change is another major sticking factor in the relationship equation, as India negates EU calls for a stricter binding commitments to reduce greenhouse gas emission, while Delhi argues that as a developing country it can not be expected to slow down its pace of industrialisation.
The EU has allotted 470 million Euro between 2007-2013 to tackle cooperation in the energy sector and environmental concerns while making efforts to reach its Millennium Development Goals.Doha is another word that sends alarm bells ringing in Delhi and Brussels as the former has failed to soften tough line in the WTO (World Trade Organization) Doha round negotiations refusing to cut industrial tariffs and demanding the EU comes clear on agricultural subsidies.
The global disparity between the South and the North seems to be playing a pivotal role here also. India, along with Brazil and others, has emerged as the leader of the equatorial hunger belt with billions of people and still counting, while the EU with an overaging and ever-decreasing population of the North highlights the threat of this growing southern human avalanche.
With the present stalemate at the Doha Round consultations, it is a miracle of sorts that can revive the Doha Round to the fullest potential as it’s already surviving on life-support devices of optimistic political statements.
The EU and India are together in many global projects, like the European Satellite project “Galileo” which got a goahead last week from the European Parliament, International Thermonuclear Experimental Reactor (ITER) to produce electricity using nuclear fusion, Indian space agency ISRO with its European counterpart ESA.
With the EU-India Free Trade Agreement in the pipeline along with other fields of cooperation being explored, both India and the EU are ready for taking a qualitative leap forward in relations, but the political leaderships on both sides have to transform all the talk of shared values of democracy, diversity and multilateralism into concrete pragmatic actions, thus making an effective and cohesive EU-India Strategic Partnership out of the present patchwork of sectoral cooperation.
Rising from the ashes of two World Wars and expanding to include 27 Member States with more in the waiting, the European Union today is a bastion of peace, harmony and prosperity. On the other hand, India, with 28 States and seven Union Territories, has emerged over last six decades in a buoyant mood thanks to its democratic principles, freedom of speech and its new found economic strengths.
At The Hague Summit 2004, India and the EU agreed to forge a “Strategic Partnership,” which was a result of an earlier EU publication in December 2003 when the EU published its first-ever security strategy identifying India along with the US, Russia, Japan, China and Canada, as the ones with whom it should develop a “Strategic Partnership,” in order to build an “effective multilateral system leading to a fairer, safer and more United World.”
India, riding on its financial success story, is focusing on greater worldwide visibility, prestige and political clout with a demand for a UN Security Council seat and favourable visa exchange partnerships. In the same vein, the EU wants to use its Strategic Partnership with India, the world’s largest democracy, to meet 21st Century challenges like terrorism, proliferation of Weapons of Mass Destruction (WMDs), failed states and regional conflicts.
For example, the EU expected Delhi with its growing economic ties, to stand up for democracy and human rights during Burma’s military crackdown on dissidents, but Delhi responded saying it does not believe sanctions work. There will always be differences but those as such need not become insurmountable obstacles to building a deeper and wider relationship.
Political ties can not go far without financial bonds and a look at the trade figures from recent past show that its time to inject much needed momentum into an uninspiring trade relationship. The trade statistics shifted a gear from a meagre less than five billion Euro in 1980 to a respectable more than 45 billion Euro in 2006. Although trade with the EU is 20 percent of India’s import-export business, making the EU India’s largest trading partner in 2006, India’s share is only 1.8 percent of total EU trade.
In the context of the ongoing negotiations in the EU-India Free Trade Agreement, there are some stumbling blocks that need to be addressed on both sides. According to reliable sources, the major hurdle is in the fields of agriculture which is a protected sector in the EU which earmarks 40 percent of its total budget to this sector where there are subsidies galore.
The EU has, in recent times, accepted the fact that Indian import tariffs have been substantially reduced but it complains they are still high by international standards. The EU calls it a “complex and non-transparent” system as it points at additional duties, taxes, and charges that are levied on top of the basic customs duties.
Pointing to the “non-tariff” barriers, the EU lists quantitative restrictions, mandatory testing, import licensing, certification for a large number of products and a complicated procedural modus operandi as the major speed breakers for a smooth trade relationship. With Indians finding the EU institutions bewildering and complex, India has its own set of complaints, foremost being in recent times the frequent use of anti-dumping duties on its exports including footwear.
The OECD (Organization for Economic Cooperation and Development) in a recent report highlighted the need for India to go for tough and bold reforms in opening its economy more rapidly to international trade and FDI (Foreign Direct Investment) by loosening service sectors like insurance and retailing, while India argues it has liberalised the FDI regime considerably.
The figures are still disappointing, as in recent years the FDI flow to India from the EU has been a paltry less than two percent of the total FDI outflow from the EU.Climate Change is another major sticking factor in the relationship equation, as India negates EU calls for a stricter binding commitments to reduce greenhouse gas emission, while Delhi argues that as a developing country it can not be expected to slow down its pace of industrialisation.
The EU has allotted 470 million Euro between 2007-2013 to tackle cooperation in the energy sector and environmental concerns while making efforts to reach its Millennium Development Goals.Doha is another word that sends alarm bells ringing in Delhi and Brussels as the former has failed to soften tough line in the WTO (World Trade Organization) Doha round negotiations refusing to cut industrial tariffs and demanding the EU comes clear on agricultural subsidies.
The global disparity between the South and the North seems to be playing a pivotal role here also. India, along with Brazil and others, has emerged as the leader of the equatorial hunger belt with billions of people and still counting, while the EU with an overaging and ever-decreasing population of the North highlights the threat of this growing southern human avalanche.
With the present stalemate at the Doha Round consultations, it is a miracle of sorts that can revive the Doha Round to the fullest potential as it’s already surviving on life-support devices of optimistic political statements.
The EU and India are together in many global projects, like the European Satellite project “Galileo” which got a goahead last week from the European Parliament, International Thermonuclear Experimental Reactor (ITER) to produce electricity using nuclear fusion, Indian space agency ISRO with its European counterpart ESA.
With the EU-India Free Trade Agreement in the pipeline along with other fields of cooperation being explored, both India and the EU are ready for taking a qualitative leap forward in relations, but the political leaderships on both sides have to transform all the talk of shared values of democracy, diversity and multilateralism into concrete pragmatic actions, thus making an effective and cohesive EU-India Strategic Partnership out of the present patchwork of sectoral cooperation.
Sunday, March 9, 2008
Decline of the American dollar
Fiscal policies over the years take toll on the greenback
The days when the greenback ruled with absolute supremacy and simultaneously commanded the unparalleled confidence of chiefs of international and domestic financial institutions along with the man in the street in the remotest parts of the planet are over. The American dollar is no more “The Currency” that can be relied on for value, as was evident by a recent CNN news clip showing an antique store in New York preferring Euro over the local currency.
Since World War II, when the American dollar started replacing gold as a means of transaction on the international level, the dollar has taken some hard knocks in recent years.
With the launch of the Euro nearly a decade ago, much was written in the pro-dollar media and EMU, as the Eurozone is called, and it was compared with the “EMU,” a bird that cannot fly. But then, compared to the launch and subsequent drop as the nascent currency took baby steps, the Euro has come of age and has crossed the threshold One Euro=USD 1.5 plus. And the dollar has also lost against the other leading currencies, like the Japanese Yen and British Pound.
With the way things are going, one must understand why and when the American dollar got to that place on the pedestal. Only then does it become clear what is happening now. As mentioned earlier, a walk down memory lane shows that till World War II the exchange rates of major currencies were reflected in terms of the price of gold in the respective countries, but with the manipulation of costs of other goods then, gold was a growing discomfort among trading partners across the globe, and the dollar came as a suitable solution.
World War II ended with the emergence of the United States as the dominant military and economic powerhouse, and as countries gathered to this epiccentre for military and financial support, the dollar emerged as the financial powerpoint of the financial world.
With the issuing of US government securities there was an added charm of earning interest over dollar deposits.But to the discerning eye, there was a Catch-22 situation that stayed afloat all these decades - and still is. The use and abuse of the technical term “Balance of Payments” was so rampant by the US that one shudders to look at the figures over the years. The United States consumed more than it produced, financing the payments with printed paper and all had been well till 1971 arrived.
The US devalued the “International Currency” unilaterally. Internationally-held dollar reserves overnight lost value and that was quite a hard knock for some of the poor countries of the world.Five years later, in 1976, came the Jamaican Agreement that gave the financial world a floating exchange rate system where the markets started playing a lead role.
But again, it was not a free float and, instead, government intervention in the form of buying and selling determines the final results at the end of the day.With the arrival of the Euro in the world F/X (foreign exchange) market scene, things started changing.
And let us not forget that the Euro has replaced 15 European currencies, and some of them, like the German mark, French franc and Italian lira were backed by strong economic and industrial giants of the world.
With the Euro surging not only in value but also as a dependable currency, the world commodity markets, especially relating to oil, will start contemplating a switch to the Euro to protect themselves against instability or the falling dollar.
The US administration will definitely want to sabotage such a move by hook or crook as its financial survival depends on the role of dollar as a legitimate international currency. Now, a look at what is really going on behind the scene.
US statistic reports have repeatedly shown the American C/A (current account) deficit has expanded continuously with billions in fiscal deficit.With China shifting some of its foreign reserves into Euro, there is already a warning ringing for the United States as more countries shift to Euro; more falls in the dollar will result.
Add to those factors the role played by the locomotive economies of Asia including China and India growing by leaps and bounds in the current years. But the financial mechanism needed to keep the dollar at a price that will sustain the US C/A deficit without putting pressure on its import/export ratio, which in turn enhances or erodes the lifestyle of its citizens, will not garner support internationally over a long-term period and US will have to pay the price at some point.
The days when the greenback ruled with absolute supremacy and simultaneously commanded the unparalleled confidence of chiefs of international and domestic financial institutions along with the man in the street in the remotest parts of the planet are over. The American dollar is no more “The Currency” that can be relied on for value, as was evident by a recent CNN news clip showing an antique store in New York preferring Euro over the local currency.
Since World War II, when the American dollar started replacing gold as a means of transaction on the international level, the dollar has taken some hard knocks in recent years.
With the launch of the Euro nearly a decade ago, much was written in the pro-dollar media and EMU, as the Eurozone is called, and it was compared with the “EMU,” a bird that cannot fly. But then, compared to the launch and subsequent drop as the nascent currency took baby steps, the Euro has come of age and has crossed the threshold One Euro=USD 1.5 plus. And the dollar has also lost against the other leading currencies, like the Japanese Yen and British Pound.
With the way things are going, one must understand why and when the American dollar got to that place on the pedestal. Only then does it become clear what is happening now. As mentioned earlier, a walk down memory lane shows that till World War II the exchange rates of major currencies were reflected in terms of the price of gold in the respective countries, but with the manipulation of costs of other goods then, gold was a growing discomfort among trading partners across the globe, and the dollar came as a suitable solution.
World War II ended with the emergence of the United States as the dominant military and economic powerhouse, and as countries gathered to this epiccentre for military and financial support, the dollar emerged as the financial powerpoint of the financial world.
With the issuing of US government securities there was an added charm of earning interest over dollar deposits.But to the discerning eye, there was a Catch-22 situation that stayed afloat all these decades - and still is. The use and abuse of the technical term “Balance of Payments” was so rampant by the US that one shudders to look at the figures over the years. The United States consumed more than it produced, financing the payments with printed paper and all had been well till 1971 arrived.
The US devalued the “International Currency” unilaterally. Internationally-held dollar reserves overnight lost value and that was quite a hard knock for some of the poor countries of the world.Five years later, in 1976, came the Jamaican Agreement that gave the financial world a floating exchange rate system where the markets started playing a lead role.
But again, it was not a free float and, instead, government intervention in the form of buying and selling determines the final results at the end of the day.With the arrival of the Euro in the world F/X (foreign exchange) market scene, things started changing.
And let us not forget that the Euro has replaced 15 European currencies, and some of them, like the German mark, French franc and Italian lira were backed by strong economic and industrial giants of the world.
With the Euro surging not only in value but also as a dependable currency, the world commodity markets, especially relating to oil, will start contemplating a switch to the Euro to protect themselves against instability or the falling dollar.
The US administration will definitely want to sabotage such a move by hook or crook as its financial survival depends on the role of dollar as a legitimate international currency. Now, a look at what is really going on behind the scene.
US statistic reports have repeatedly shown the American C/A (current account) deficit has expanded continuously with billions in fiscal deficit.With China shifting some of its foreign reserves into Euro, there is already a warning ringing for the United States as more countries shift to Euro; more falls in the dollar will result.
Add to those factors the role played by the locomotive economies of Asia including China and India growing by leaps and bounds in the current years. But the financial mechanism needed to keep the dollar at a price that will sustain the US C/A deficit without putting pressure on its import/export ratio, which in turn enhances or erodes the lifestyle of its citizens, will not garner support internationally over a long-term period and US will have to pay the price at some point.
Sunday, November 25, 2007
Euro rally worries EU
ECB to take action; Merkel, Barroso express concern
Money is talk of the town and money, “The social lubricant” with a near free-fall of the US dollar, is sending ripples across the globe affecting all quarters of life. The steady fall of the American dollar against other global currencies and the meteoric rise of the nascent European currency, the Euro, is making financial pundits act and react.
Acknowledging the reemergence of tension in money markets, the European Central Bank (ECB) announced, “To counter the re-emerging risk of volatility, the ECB intends to reinforce in the upcoming main refinancing operation, as well as in the following ones for as long as it is needed and at least until after the end of the year, its policy of allocating more liquidity than the benchmark amount in main refinancing operations.” The benchmark amount is an estimate of the liquidity needed by banks to fulfil their minimum reserve requirements.
“In line with its communication of October 8th, the ECB will continue to closely monitor liquidity conditions, consistently with its aim to limit the volatility of very short term rates around the main refinancing operations minimum bid rate,” the bank in a move aimed at financial markets said.
Reiterating faith in the earlier ECB actions as “effective and flexible,” ECB president Jean- Claude Trichet said, “Looking ahead, and in line with its previous communications and actions, the ECB will continue to steer very short term interbank rates close (to) the minimum bid rate.”
Commenting on the strength of the Euro becoming a problem for some European exporters, German Chancellor Angela Merkel told N24 television on November 22 that the strong Euro and high oil prices pose a risk to the country’s economy — Europe’s largest. “We are pleased that Europe has a strong currency, but this obviously also creates problems for exports,” she said adding, “We are working on an international level to balance currency imbalances reasonably.”
European Commission President Jose Manuel Barroso echoed her sentiments last week. Speaking on the side lines of an EU-ASEAN Summit in Singapore, Barroso said, “It’s true that the very strong Euro is becoming a concern to some export sectors in some parts of the European economy.”
The European Commission this month cut its forecast for 2008 Eurozone economic growth to 2.2 percent from 2.5 percent.
In related fallout in the industry, Airbus CEO Thomas Enders said the Euro has now “crossed the pain threshold” and that the rate of the dollar’s fall “hardly leaves room for reasonable adapting.” “That is lifethreatening,” he was quoted by Der Spiegel magazine as telling the company worker’s council in Hamburg on November 22.
Although the company is expecting a record number of orders, it still must reckon with “tremendous losses,” he said. But the German economics ministry reacted the next day saying it is up to the aircraft maker Airbus and not the government to estimate the impact of the strong Euro on the company’s performance. “Only the company itself can assess how threatening such a development is for the company,” said an economics ministry spokeswoman. “Only the company can say to which degree the Euro has contributed to its development.”
Moreover, there is a flip side of the strong Euro as was pointed out by Merkel’s deputy economics minister. The rising Euro is damping the effect of rising oil prices, noted Bernd Pfaffenbach, who is also Merkel’s advisor on the Group of Eight industrial nations’ issues.
Recalling the worries during the birth of the European currency that Euro will even stay weaker than the Deutsche Mark, Pfaffenback welcome the news that China has announced plans to shift its currency reserves into Euro adding, “This shows a growth in faith in the European currency.”
Although burdened with strikes and transport chaos at home and silent directly on the rising Euro, French President Nicolas Sarkozy was about to address the currency issue during talks with Chinese leaders in Beijing.
According to media reports, a senior French official was cited as saying that Sarkozy will make proposals for an “equitable and fair” relationship among four major currencies - the US dollar, Euro, Japanese Yen and Chinese Yuan.
The common currency for the 13-nation Eurozone is hovering close to the USD 1.50 mark against the American dollar, breaking all records.
Money is talk of the town and money, “The social lubricant” with a near free-fall of the US dollar, is sending ripples across the globe affecting all quarters of life. The steady fall of the American dollar against other global currencies and the meteoric rise of the nascent European currency, the Euro, is making financial pundits act and react.
Acknowledging the reemergence of tension in money markets, the European Central Bank (ECB) announced, “To counter the re-emerging risk of volatility, the ECB intends to reinforce in the upcoming main refinancing operation, as well as in the following ones for as long as it is needed and at least until after the end of the year, its policy of allocating more liquidity than the benchmark amount in main refinancing operations.” The benchmark amount is an estimate of the liquidity needed by banks to fulfil their minimum reserve requirements.
“In line with its communication of October 8th, the ECB will continue to closely monitor liquidity conditions, consistently with its aim to limit the volatility of very short term rates around the main refinancing operations minimum bid rate,” the bank in a move aimed at financial markets said.
Reiterating faith in the earlier ECB actions as “effective and flexible,” ECB president Jean- Claude Trichet said, “Looking ahead, and in line with its previous communications and actions, the ECB will continue to steer very short term interbank rates close (to) the minimum bid rate.”
Commenting on the strength of the Euro becoming a problem for some European exporters, German Chancellor Angela Merkel told N24 television on November 22 that the strong Euro and high oil prices pose a risk to the country’s economy — Europe’s largest. “We are pleased that Europe has a strong currency, but this obviously also creates problems for exports,” she said adding, “We are working on an international level to balance currency imbalances reasonably.”
European Commission President Jose Manuel Barroso echoed her sentiments last week. Speaking on the side lines of an EU-ASEAN Summit in Singapore, Barroso said, “It’s true that the very strong Euro is becoming a concern to some export sectors in some parts of the European economy.”
The European Commission this month cut its forecast for 2008 Eurozone economic growth to 2.2 percent from 2.5 percent.
In related fallout in the industry, Airbus CEO Thomas Enders said the Euro has now “crossed the pain threshold” and that the rate of the dollar’s fall “hardly leaves room for reasonable adapting.” “That is lifethreatening,” he was quoted by Der Spiegel magazine as telling the company worker’s council in Hamburg on November 22.
Although the company is expecting a record number of orders, it still must reckon with “tremendous losses,” he said. But the German economics ministry reacted the next day saying it is up to the aircraft maker Airbus and not the government to estimate the impact of the strong Euro on the company’s performance. “Only the company itself can assess how threatening such a development is for the company,” said an economics ministry spokeswoman. “Only the company can say to which degree the Euro has contributed to its development.”
Moreover, there is a flip side of the strong Euro as was pointed out by Merkel’s deputy economics minister. The rising Euro is damping the effect of rising oil prices, noted Bernd Pfaffenbach, who is also Merkel’s advisor on the Group of Eight industrial nations’ issues.
Recalling the worries during the birth of the European currency that Euro will even stay weaker than the Deutsche Mark, Pfaffenback welcome the news that China has announced plans to shift its currency reserves into Euro adding, “This shows a growth in faith in the European currency.”
Although burdened with strikes and transport chaos at home and silent directly on the rising Euro, French President Nicolas Sarkozy was about to address the currency issue during talks with Chinese leaders in Beijing.
According to media reports, a senior French official was cited as saying that Sarkozy will make proposals for an “equitable and fair” relationship among four major currencies - the US dollar, Euro, Japanese Yen and Chinese Yuan.
The common currency for the 13-nation Eurozone is hovering close to the USD 1.50 mark against the American dollar, breaking all records.
Tuesday, November 13, 2007
Gas era set to dawn in India
Ships equipped with re-gasification gear an answer
Power shortages leading to blackouts are already taking their toll on production, and then the cumulative effect is filtering down to export markets. That’s the scene blurring grand visions of making India a manufacturing hub to alleviate poverty, which keeps more than two-thirds of the rural population engaged in a vicious cycle of an agricultural sector dependent on weather unpredictability.
With an economic boom touching nine percent over the last few years showing no sign of slowing down, India’s insatiable hunger for energy has not been matched by a proportionate increase in supply over the years. Estimates point that India’s energy needs are set to grow by 40 percent, moving it from sixth slot to fourth position in the world’s top consuming nations by 2012.
“Cleaner burning and more efficient than coal,” coupled with the fact that tonnes of stranded gas around the world are just looking for a market, natural gas seems to be the answer to the ever-increasing demand for power in the present Indian environs, where the ways and means to provide sustainable and reliable solutions are far from clear.
Government figures show that the country’s domestic gas supply is 65 million standard cubic metres per day, while demand stands at 231 mmscmd and the projections put it to rise to 313 mmscmd by 2011-2012. India’s Planning Commission in its approach paper to its 11th Five-Year Plan that an ongoing sequence since it was launched five decades ago identified that among other factors, “... above all, power supply are not comparable to those prevalent in our competitor countries.”
Warning that, “... this gap must be filled within the next five to 10 years if our enterprises are to compete effectively,” the paper stressed that, today, Indian companies are not asking for state protection but at least, “expect a level playing field.” It may be noted that although industrial units are savvy about their own power plants, the acute lack of feeding fuel remains a major stumbling block. With focus shifting to cleaner industrialisation, there is a gas era ready to come of age, but latest government figures show the country failed to import only a third of the gas it wanted in 2006-2007.
One of the major reasons is the inadequate infrastructure in the country to handle gas imports as only two of the planned four terminals for LNG (Liquefied Natural Gas) re-gasification viz. Shell’s Hazira terminal and Petronet’s Dahej terminal, are operating while the Kochi terminal and the Dabhol are yet to get commissioned. These special terminals are needed as gas is shipped in liquid form and needs to be re-gasified when the ship berths. Lack of such specialised terminals left not only the power sector but also the fertilizer sector literally gasping for gas.
The geo-political situation around the world has cast its long dark shadows on the Indian government’s options to get international pipeline projects like the Iran-Pakistan-India, the Myanmar-India and the Turkmenistan-Afghanistan-Pakistan-India to deliver.
According to tough-talking sector observers, the first one has an American negative influence on it, the second seems to be lost to Chinese efforts, while the third is losing to its preferred sister project moving toward Russia on its journey to the more lucrative market of Europe, giving leverage to Moscow over Brussels in energy matters.
Dashing any hopes of salvaging the Myanmar-India gas pipeline project, the Oil and Natural Gas Corporation Limited, ONGC – Videsh Limited or OVL scrapped the project in the footsteps of the Gas Authority of India Limited, GAIL. R S Butola, Managing Director of OVL said in New Delhi on May 14: “Since Bangladesh has disagreed to our proposal, the project is now becoming a costly affair while China is trying hard to procure gas from Myanmar through a pipeline because the country has been suffering from a huge energy crisis for long.”
He ruled out any further bid to get back the pipeline project without a cost-benefit analysis. Such a delayed scenario for pipelines leaves the door wide open for imports of gas through ports. The Indian west coast is already dotted with ports which have emerged as leading container handlers with overstretched capacity and the time is ripe for the eastern ports of Kolkota, Haldia and Paradeep to take the initiative to grab this golden opportunity to become a hub of gas imports to meet the energy needs of the parent state, and for the onward transport to other parts of the country.
Usually, it will cost around USD 500 million to equip each port with a re-gasification terminal and a number of years of construction before gas starts flowing to consumers, but pundits offer a new pioneering working model showing a simple way out. With tailor-made delivery-driven solutions catering to exponentially increasing demands for gas, there are technologically advanced vessels which have the facility to re-gasify LNG onboard and discharge natural gas into the pipeline system through an “Energy Bridge” process. The time frame for opening the tap to consumers for this unique way of the re-gasification equipped vessels docking at the ports needs just a year from the time the final decision is taken to when work starts to install various discharge points like a buoy (deepwater port), a turret (shallow water port) or quayside.
Moreover, this also takes care of concerns of vocal environmentalists who have been campaigning against new terminals aimed to boosting imports of LNG. One market expert on India predicted that the move can lead to frenzied investment from abroad in Bengal for constructing short delivery pipelines to industrial units across the region. Calling it “the financial backbone of the future for Bengal (an eastern Indian state),” which is a state striving to transform its poor agro-economy into an industry powered financial giant in the coming years, the expert said in Brussels, “The state can contribute with tax rebates during high risk initial phases with applicant shipping companies committing to help in getting gas contracts at affordable prices.” Time will show if the industry and the state can take advantage of this opportunity to agree on terms of development of gas inlets and beyond.
Written for New Europe, the European Weekly on May 19, 2007 - Issue : 730
Power shortages leading to blackouts are already taking their toll on production, and then the cumulative effect is filtering down to export markets. That’s the scene blurring grand visions of making India a manufacturing hub to alleviate poverty, which keeps more than two-thirds of the rural population engaged in a vicious cycle of an agricultural sector dependent on weather unpredictability.
With an economic boom touching nine percent over the last few years showing no sign of slowing down, India’s insatiable hunger for energy has not been matched by a proportionate increase in supply over the years. Estimates point that India’s energy needs are set to grow by 40 percent, moving it from sixth slot to fourth position in the world’s top consuming nations by 2012.
“Cleaner burning and more efficient than coal,” coupled with the fact that tonnes of stranded gas around the world are just looking for a market, natural gas seems to be the answer to the ever-increasing demand for power in the present Indian environs, where the ways and means to provide sustainable and reliable solutions are far from clear.
Government figures show that the country’s domestic gas supply is 65 million standard cubic metres per day, while demand stands at 231 mmscmd and the projections put it to rise to 313 mmscmd by 2011-2012. India’s Planning Commission in its approach paper to its 11th Five-Year Plan that an ongoing sequence since it was launched five decades ago identified that among other factors, “... above all, power supply are not comparable to those prevalent in our competitor countries.”
Warning that, “... this gap must be filled within the next five to 10 years if our enterprises are to compete effectively,” the paper stressed that, today, Indian companies are not asking for state protection but at least, “expect a level playing field.” It may be noted that although industrial units are savvy about their own power plants, the acute lack of feeding fuel remains a major stumbling block. With focus shifting to cleaner industrialisation, there is a gas era ready to come of age, but latest government figures show the country failed to import only a third of the gas it wanted in 2006-2007.
One of the major reasons is the inadequate infrastructure in the country to handle gas imports as only two of the planned four terminals for LNG (Liquefied Natural Gas) re-gasification viz. Shell’s Hazira terminal and Petronet’s Dahej terminal, are operating while the Kochi terminal and the Dabhol are yet to get commissioned. These special terminals are needed as gas is shipped in liquid form and needs to be re-gasified when the ship berths. Lack of such specialised terminals left not only the power sector but also the fertilizer sector literally gasping for gas.
The geo-political situation around the world has cast its long dark shadows on the Indian government’s options to get international pipeline projects like the Iran-Pakistan-India, the Myanmar-India and the Turkmenistan-Afghanistan-Pakistan-India to deliver.
According to tough-talking sector observers, the first one has an American negative influence on it, the second seems to be lost to Chinese efforts, while the third is losing to its preferred sister project moving toward Russia on its journey to the more lucrative market of Europe, giving leverage to Moscow over Brussels in energy matters.
Dashing any hopes of salvaging the Myanmar-India gas pipeline project, the Oil and Natural Gas Corporation Limited, ONGC – Videsh Limited or OVL scrapped the project in the footsteps of the Gas Authority of India Limited, GAIL. R S Butola, Managing Director of OVL said in New Delhi on May 14: “Since Bangladesh has disagreed to our proposal, the project is now becoming a costly affair while China is trying hard to procure gas from Myanmar through a pipeline because the country has been suffering from a huge energy crisis for long.”
He ruled out any further bid to get back the pipeline project without a cost-benefit analysis. Such a delayed scenario for pipelines leaves the door wide open for imports of gas through ports. The Indian west coast is already dotted with ports which have emerged as leading container handlers with overstretched capacity and the time is ripe for the eastern ports of Kolkota, Haldia and Paradeep to take the initiative to grab this golden opportunity to become a hub of gas imports to meet the energy needs of the parent state, and for the onward transport to other parts of the country.
Usually, it will cost around USD 500 million to equip each port with a re-gasification terminal and a number of years of construction before gas starts flowing to consumers, but pundits offer a new pioneering working model showing a simple way out. With tailor-made delivery-driven solutions catering to exponentially increasing demands for gas, there are technologically advanced vessels which have the facility to re-gasify LNG onboard and discharge natural gas into the pipeline system through an “Energy Bridge” process. The time frame for opening the tap to consumers for this unique way of the re-gasification equipped vessels docking at the ports needs just a year from the time the final decision is taken to when work starts to install various discharge points like a buoy (deepwater port), a turret (shallow water port) or quayside.
Moreover, this also takes care of concerns of vocal environmentalists who have been campaigning against new terminals aimed to boosting imports of LNG. One market expert on India predicted that the move can lead to frenzied investment from abroad in Bengal for constructing short delivery pipelines to industrial units across the region. Calling it “the financial backbone of the future for Bengal (an eastern Indian state),” which is a state striving to transform its poor agro-economy into an industry powered financial giant in the coming years, the expert said in Brussels, “The state can contribute with tax rebates during high risk initial phases with applicant shipping companies committing to help in getting gas contracts at affordable prices.” Time will show if the industry and the state can take advantage of this opportunity to agree on terms of development of gas inlets and beyond.
Written for New Europe, the European Weekly on May 19, 2007 - Issue : 730
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