New York, U.S.A. — U.S. designation of Hezbollah as a primary supporter of the Assad regime’s brutality “is another important step in efforts to confront the murderous Syrian regime,” said David Harris, executive director of AJC, the global advocacy organization. The U.S. government announced the new designation of Hezbollah in a conference call with reporters.

Ambassador Daniel Benjamin, the State Department’s Coordinator for Counterterrorism, one of the U.S. officials announcing the new designation, said “it serves the very, very important purpose of making clear to parties around the world – both domestically and internationally – the true nature of Hezbollah’s activities.”

The U.S designation states that Hezbollah has been training Syrian government personnel inside Syria, facilitating training of regime forces by Iranian Revolutionary Guards, and actively helping to expel Syrian opposition forces from some areas of Syria.”Hezbollah’s actions in Syria are particularly egregious, extending and prolonging this deadly conflict,” said Ambassador Benjamin.

“The Syrian people are suffering and dying at the hands of this unholy alliance of Hezbollah, Iran and the Assad regime,” said Harris. “State terrorism at its worst is playing out on the streets of Aleppo, Damascus and many other Syrian cities and towns.” The U.S. designated Hezbollah as a terrorist organization in 1999. Canada, the United Kingdom and Israel have similarly labelled the group.

Several years ago, an attempt to secure European Union designation came close, but ultimately failed because a few European leaders maintained that Hezbollah, with representatives in the Lebanese Cabinet and Parliament, was a “legitimate” political organization.

“Serving at the highest levels of a government does not facto legitimize a terrorist organization,” said Harris. “Hezbollah should not be allowed to have it both ways — on the one hand, maintain its own militia and global terrorist apparatus, while, on the other hand, being recognized as a legitimate political force.”

Hezbollah, created with Iran’s aid nearly 30 years ago, is one of the world’s most dangerous terrorist organizations with a record of deadly attacks and foiled attempts in Latin America, Europe and the Middle East. Most recently, Hezbollah has been implicated in terrorist plots in two EU countries — Bulgaria andCyprus — as well as in other attempts from Kenya to Thailand.”

AJC last week sent letters to the foreign ministers of all 27 EU member states, the first step in a renewed campaign to encourage the EU to formally designate Hezbollah as a terrorist organization.”European nations should be among the very first to understand the true nature of Hezbollah and the regional and global threat it continues to pose,” said Harris. “It’s deadly involvement in Syria, as underscored by the new U.S. designation, only further underscores the point.”

Image Courtesy of   homeros / Shutterstock.com

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New York, U.S.A. — Amid continued economic, financial, and political turmoil, several E.U. countries are seeing improvement in a crucial measure of competitiveness. According to a new Executive Action Report from The Conference Board, the cost of labor per unit of output has fallen significantly in a number of the hardest-hit economies, led by Ireland and Eastern Europe.

For the Euro Area, controlling unit labor cost (ULC) — defined as nominal labor compensation per unit of real output —may be key to redressing the competitive unbalance between core and periphery that has haunted a continent and fueled four years of recurring crisis.

“A drop in unit labor cost is an important sign of the beginning of adjustments in Europe’s most trouble economies,” said Bart van Ark, The Conference Board Chief Economist and co-author of the report. “For now it is mainly the reduction in wages which leads the adjustments, but once productivity begins to increase as well, it could be the key to a more sustainable recovery.”

Since states within the Euro Area cannot devalue their currencies or dictate interest rates, boosting ULC and, thus, competitiveness relative to other members of the zone can only come about through real changes in worker efficiency,” he adds.

There are early signs that the rebalancing through unit labor cost adjustments is under way. While France, Germany, Austria, and other relatively strong continental economies have pursued social welfare policies to limit unemployment during the downturn — thereby reducing productivity and increasing unit labor costs — countries with more flexible labor markets in the “Anglo-Saxon” model have been able to make faster adjustments.

Ireland lowered its ULC by 5.3 percent between 2008 and 2011, a success only rivaled by less mature Eastern European countries such as Hungary, Latvia, and Lithuania, which still retain their own currencies. Elsewhere outside the Euro Area, ULC in the U.K. has fallen by 3.6 percent — the sharpest decline of any large economy.

In the most troubled European economies of Greece, Portugal, and Italy, a tradition of rigid labor markets kept unit labor costs rising through the early years of the crisis. Continued weakness and deepening austerity measures, however, have recently pushed them towards turning points suggesting a strong reduction in costs and faster efficiency gains compared to the Euro Area’s northern core.

In Greece, ULC rose by 4.4 percent overall between 2008 and 2011, but fell by more than 5 percent from 2010 to 2011. With its large contingent of flexible part-time workers, Spain is further along; Spanish ULC fell 4.4 percent between 2008 and 2011. Across the Euro Area, unit labor costs in manufacturing have fallen by 3.9 percent in the past two years, after rising at the outset of the crisis.

Because of the rapid shifts in unit labor cost in recent years, the German manufacturing sector has become less competitive in terms of cost per unit of output relative to the manufacturing in many other European economies — again, led by Ireland, Eastern Europe, and the United Kingdom. Dramatic reductions in workforce and compensation have propelled British firms ahead of formerly more cost-competitive French, German, and Italian rivals. Meanwhile, Ireland is now Europe’s most efficient manufacturing economy by far, ahead of even low-wage off-shoring destinations like Poland.

In contrast to manufacturing, the service sector — which is more labor-intensive with output largely composed of non-tradables — remains a weak performer across Europe. Only Spain and the United Kingdom have managed to substantially lower unit labor costs in the services sector. With output falling faster than workforce or wages can be cut, Germany, France, Greece, and Ireland all saw significant ULC increases in services. The remarkable 41.5 percent decline in Irish ULC for manufacturing was largely offset by a 26.4 percent ULC increase in services.

Given the significant private and public sacrifices needed to bring down unit labor costs against an over-strong currency, an exit from the Euro Area altogether has become a tempting option for the most troubled economies. To test the consequences of a Euro Area exit, The Conference Board modeled the impact that regaining a national currency — and independent monetary policy — would have on unit labor costs in a country like Greece compared with alternative scenarios.

“The huge devaluation following an exit from the Euro Area would certainly boost competitiveness in the first year or two,” said Bert Colijn, labor market economist for The Conference Board Europe and co-author of the report. “But these effects would quickly evaporate, as the subsequent recovery in labor compensation in the medium- to long-term outpaces GDP growth. Hollowing out labor costs can only do so much. Lasting competitiveness gains must ultimately come from the productivity side of the unit cost labor equation.”

“For this reason, we found that neither a troubled economy nor the Euro Area as a whole is likely to benefit in the long run from a unilateral exit, or a wider breakup, or the status quo of muddling through,” says Colijn. “Ultimately, the best outcome for competitiveness is achieved with greater fiscal integration, including a banking union and Eurobonds, that will encourage the sort of investment needed for productivity, innovation, and competitiveness that is substantive and sustainable.”

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Kyiv, Ukraine — The parliament of Ukraine adopted a law providing for open, transparent, and democratic parliamentary elections on October 28th, 2012. The parliament ruled to equip most polling stations with web-cameras, broadcasting the signal from the stations online.

The installation of the web-cameras at the voting stations enables anyone with internet access to watch elections in Ukraine in real time. According to the Ukrainian Prime Minister Mykola Azarov, 34,000 voting stations will be equipped with cameras. Each voting station will be equipped with at least two cameras.

According to the new law, the cameras should be placed in a way that does not interfere with the secret ballot system and the freedom of voting, while ensuring the procedures of voting and vote count are abided. “We will have to provide the whole country with satellite communication in order to run these web-cameras,” said the leader of the Party of Regions Olexandr Yefremov.

Meanwhile, during a meeting with a delegation of the NATO Parliamentary Assembly Azarov said that Ukraine welcomed foreign observers from the CIS, the EU, the OSCE, et cetera at the autumn elections. He invited everyone who wanted to come, saying that since Ukraine hosted two million visitors during EURO 2012 it was sure ready to receive 34,000 observers. The Vice President of the OSCE Wolfgang Grossruck already accepted the invitation of the Prime Minister.

In efforts to hold free and fair elections, the Ukrainian parliament passed a new election law on November 17, 2011. It reintroduced the mixed electoral system in Ukraine. According to the new system, 225 members of the Ukrainian parliament will be elected through party lists and 225 MPs – through single-member districts.

The new law also set the election threshold of five percent, banned blocks of political parties to participate in elections, as well as excluded the previously available option of not supporting any party or candidate on the list by ticking the respective box.

Image Courtesy of   Iurii Osadchi / Shutterstock.com

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As of July 1, new sanctions against Iran are taking effect, effectively banning crude oil imports to the EU, which accounts for some 18% of Iranian crude oil exports. These new sanctions are coming into play as talks between the Iranian regime and the so called P5+1 nations (the U.S., U.K., China, Russia, and France plus Germany) are not making much headway.

Neither the May 23 meeting in Bagdad nor the June 23 meeting in Moscow resulted in anything substantial. Arguably, Iran is moving closer to the “point of no return” with threats being handed out on all sides and the rhetoric growing fiercer. Although a military solution seems to become more and more likely, there are compelling reasons why an air strike should be avoided at all costs.

An air strike on Iran is neither going be as easy as the Israeli strike on Iraq’s Osirak reactor in 1981, nor the strike on Syria’s reactor near al-Kibar in 2007. Iran, having learned a lesson or two from history, has gone to great lengths to protect their enrichment plants – spread out all over Iran – composing at least a dozen different sites. A top US air-force planner estimates that at least 400 targets would have to be hit, and that at least 75 would require the use of penetrating munitions (such as so called “bunker buster bombs”).

Furthermore, these sites are buried deep under ground, (such as the enrichment plant at Fordow which is located under a mountain), and are protected by sophisticated Russian-made air defence systems.

The air strike would have to be massive, continuous and surgical – and the problem is, it would do nothing but postpone the Iranian nuclear venture, (with some 2-5 years according to analysts). And detriment to the whole cause, a strike would naturally add enormous incentive for Iran to actually acquire the bomb, instead of keeping to peaceful uranium enrichment.

Following an Israeli strike, the Iranians would undoubtedly counterattack. Such a strike would be delivered both by means of conventional weapons such as ballistic missiles towards Israel (Iran has got the biggest stock of ballistic missiles in the Middle East), and also by the use of proxy forces such as Hezbollah who could target Israel with rocket strikes from the neighbouring Lebanon.

Other notable proxy strikes would come from the powerful warlord Moqtada al-Sadr, commander of the Shiite Mahdi Army, who’s openly promised to strike back at U.S. coalition forces in Iraq in the case of a U.S./Israeli strike against Iran.

If such a scenario unfolds, the U.S. would undoubtedly launch its own strike against Iran. The U.S., having built up a presence of some 125,000 troops in close proximity to Iran according to recent CENTCOM figures have the ability to hit some 10,000 targets inside Iran overnight.

However, the aftermath of a potential U.S. strike could prove to be very dangerous, as it would galvanize the other pro-Iranian powerhouses China and Russia, active in the region, and, in a worst case scenario, spark a new cold war.

Furthermore, a U.S. strike would have to be continuous and conducted over a long time span, in order to quell any resumed Iranian nuclear efforts, putting further strain on an already badly overstretched U.S. army, not to mention its economy. And all the while, soaring global oil prices would put the final nail in the coffin of an already badly beaten Western economy.

This is simply a scenario, but makes a rather convincing case why a military strike should be avoided at all costs. But amidst the threats and the gloomy outlooks, there are some positive notions.

Although the conflict has seen some escalations, such as cyber attacks on Iranian enrichment plants, as well as several mysterious and dramatic deaths of leading Iranian nuclear scientists, it has mostly been a war of words up to this point.

Historically, Israel has shown that when they are really intent on striking, such as in the cases of Iraq and Syria, it was done in the quiet, without any warning. The current amount of warnings and threats is thus a sign that Israel is content at keeping it “a war of words,” at least for now. But this rather precarious stalemate is not going to last forever.

Image Courtesy of  Mahmoud Ahmadinejar 

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The European Union (EU) has officially started the membership negotiation with the Republic of Montenegro. The talks are held to persuade other countries in the Western Balkan that the reforms are paying off. The Montenegrin government submitted an EU membership application on December 15, 2008.

The negotiation might take several years before the country can be an official member of the Union. Also, Montenegro has conducted improvement in the judicial system to curb corruption and organized crime.

In January 2011, some of Montenegro’s senior municipal officials faced accusations of corruption. The former Prime Minister, Milo Djukanovic, was investigated by the Italian police and faced charges, over one billion US dollars, for a cigarette smuggling operation based in Montenegro in 2009. Montenegro has made additional efforts to further strengthen its anti-corruption by legalizing anticorruption legislation and strategies in governmental anticorruption institutions and agencies to help the government’s effort in fighting it. Also it made efforts in independence, impartiality and efficiency of the judiciary.

According to the official European Commission website, European Commissioner for Enlargement and European Neighborhood Policy Štefan Füle said, “Montenegro already did a lot. But much more still needs to be done. This next phase of the accession process will mean even more work in more areas, with continued focus on fundamental freedoms, judiciary, fight against corruption and organized crime.”

The EU leaders have approved to begin the talks at the summit on Friday, June 29. The next screening of the Montenegrin progressive would be in September 2013.

Of the former Yugoslav republics, Slovenia, as of 2004, and Croatia, which will be an official member in July 2013, have joined the EU, while the Republic of Macedonia and the Republic of Serbia are recognized candidates of the EU. Bosnia and Herzegovina Republic and the Kosovo Republic are potential candidates with no submitted membership applications.

Montenegro is a small country that lies on the Adriatic Sea with a population of about 680,000 and an area of 13,812 square kilometers (5,333 square miles). It became an independent state from Serbia in 2006.

The Montenegrin economy is mainly based in tourism and real estate industries. Montenegro has very rich natural and historical tourist destinations in all regions of the country. Also, it has a coast line of 293 kilometers, making more than 120 great beaches in Ulcinj, Bar, Budva, Tivat, Kotor and Herceg Novi municipalities. the Natural and Culture-Historical Region of Kotor and Durmitor National park are two destinations with UNESCO’s world heritage list.

Between 2006 and 2007, Montenegro experienced a real estate industry boom. Most Russian and UK  investors in the country bought properties in the Montenegrin coast. The direct investments in Montenegro made a rapid growth of the economy. The investments in tourism and real estate fields supported the government to meet the requirement of EU membership program.

Montenegro has no national currency, but uses the Euro. Prior to 2002, it used the German Mark as the official currency. Although it was in federation with Serbia between 1992-2003, it stopped using the Serbian Dinar in 1999.

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German Chancellor Angela Merkel met with the English Prime Minister David Cameron to discuss the Eurozone crisis. Both leaders support a two-speed approach to the future of Europe.

Several leaders outside of the Eurozone, such as U.S. President Barack Obama, have urged Germany and the other participating nations to take immediate action on the crisis. Cameron stated, “I’m very clear that urgent action is needed to deal with the market uncertainty… [it] is about building firewalls and recapitalizing the banks.” Although Cameron has urged the Eurozone to solve this crisis, he has made it quite clear that he expects them to solve their own problems.

The United Kingdom and Denmark, although members of the European Union, negotiated agreements in 1992 to be excluded from the euro. Both countries wanted to maintain their own currency, which now appears to have been the best course of action.

Merkel has already admitted that the Eurozone crisis has been building over the last ten years and will not be solved in a day. Merkel stated, “now it will also take a few years to get things right again.”

Many economic experts have claimed that the Eurozone structure is faulty because seventeen nations are connected through a currency but are not coordinated with their budget plans. This lack of budget coordination is not a problem until a crisis such as the 2008 recession arises; now the weaker economies are dragging down the whole system. Merkel agrees that something must be done to integrate these nations better. “We need more Europe, we need not only a monetary union, but we also need a so-called fiscal union, in other words more joint budget policy,” she said.

European Union officials in Brussels want Germany, the strongest economy in the Union, to accept jointly guaranteed European debt and allow the European Central Bank to issue eurobonds. These eurobonds would help to regain some of the debt for the other countries as well as Germany, but Merkel worries that issuing these eurobonds would harm the German people and the German economy more. Before any kind of fiscal union is created in Europe, Merkel is insistent that there needs to be more stability from other European Union countries. Some experts claim that the integration cannot wait.

Another suggestion from the European Commission and European Central Bank is the creation of a central banking authority that would help alleviate concerns of excessive debt. Currently, Spain’s finance minister has claimed that credit markets are “effectively shut” to Spain at this time, making it impossible for them to get the billions in euros to rescue their banks. As of 6 June 2012, the European Commission has announced a plan for a “bank union” in Europe that would make it easier for countries like Spain to get credit.

Although many worry that Spain will need a bailout, Spain insists that they will not. Merkel has stated that Germany will not pressure Spain to take a bailout although the funds will be there if they are necessary.

The European Central Bank cannot provide bailouts due to the ‘no bailout’ clause of the Maastricht Treaty of 1992. However, starting in July there will be a 500 billion euro rescue fund known as the European Stability Mechanism.

Merkel has insisted on austerity measures in bailout countries such as Greece, but these measures have been met with great opposition. Many claim that what governments should be focusing on is growth. Merkel claims, “budget consolidation [aka austerity measures] and growth are two sides of one and the same coin.”

Currently a budget-discipline agreement is being discussed across Europe and has already been ratified in some countries. The Irish referendum vote in the previous week affirmed the agreement. Merkel’s coalition government in the German Parliament is working to get the two-thirds majority necessary to approve the agreement. However, the opposition party – which believes the debt crisis can only be solved by spending for growth – has also requested a financial transaction tax be added to the agreement or at least followed by Germany.

The United Kingdom, with London being the biggest financial center in Europe, is opposed to a Europe-wide financial transaction tax. Cameron stated that the tax would “simply [draw] those transactions offshore and to other places.”

On 7 June 2012 Merkel stated, “we need a political union first and foremost… step by step we must from now on give up more competences to Europe, and allow Europe more powers of control.” Although Cameron agrees that the Eurozone must become more integrated financially, his country is not a member of the Eurozone and would not have to deal with the consequences.

After meeting with Cameron, Merkel announced that she is tolerant of a ‘two-speed’ Europe, meaning that while the current Eurozone countries become more integrated fiscally and politically, other countries such as Denmark and the United Kingdom that use their own currency would still be a part of the Union but relegated to the edges. Merkel claims, “we have to be open. We always have to make it possible for everyone [to join]… but we must not stop because one or the other don’t want to come along just yet.”

Merkel says that one of the greatest aids for the European Union countries is to become more competitive. She claims that the economies will improve when they begin producing more on the global market.

An EU summit is planned for later in June and the leaders will discuss plans for a political union. However, according to Merkel, the decision and the arrangements will not be completed in one summit and more meetings will have to be planned.

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Kyiv, Ukraine – Investors claim to profit in Ukraine, said Ukrainian First Vice Prime Minister Valeriy Khoroshkovskyi in an interview with the Polish news agency PAP. Ukrainian official said that the incoming investments would be protected and profitable. “I am certain Ukraine can help EU recover from the economic crisis,” stated Khoroshkovskyi.

He noted that the reforms Ukraine was recently implementing brought the country closer to the EU standards, creating favorable investment conditions. Among the most recent changes Khoroshkovskyi listed the adoption of judicial reform, criminal and customs codes, as well as changes in energy legislation.

Among the highlights of the judicial reform were the salary increases for the judges, the limitation of the duration of the court proceedings, and the introduction of random assigning of a case to a judge.

New criminal code provides for equal opportunities for each party in the criminal proceedings. The result of the proceedings should now be based on the principle of competitiveness. The new legal document broadens investigation opportunities and ensures proceedings are not delayed.

Reform in customs provides for faster and more transparent customs operations. New customs code introduces the right of entities involved in foreign economic activities to be subjected to customs processing at any customs body. Now the customs authorities face several limitations that include the enforcement of the time limit to perform customs control procedure, prohibition to confiscate goods and vehicles, as well as absence of the right to execute court rulings independently.

As for energy legislation, Ukraine changed legal regulations of natural gas and crude oil extraction, transportation, refinement, and sale. These functions now have to be performed by separate, financially and legally independent companies. This reflects the norms of the European Union Directive N2003/55.

Such major international companies as Chevron and Exxon Mobil intend to invest in gas production in Ukraine. Accommodating investors’ interest, the government exempted companies producing shale gas in the country from import tax on equipment and export duty.

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Hamburg, Germany- On April 24, 2012 Bulgaria passed an energy efficiency act and by doing so clearly emphasised the necessity for efficiency in energy use.

During a personal visit from Martin Richard Kristek, CEO of Care-Energy, to the Deputy Minister for Economy, Energy and Tourism Valentin Nikolov in Sofia on April 25, Mr Kristek applauded this precedent-setting action and the country’s clear determination to use energy in an efficient and therefore sustainable fashion. Simultaneously, Prime Minister Boyko Borisov adopted the new chapter – energy efficiency – on the implementation of EU energy efficiency guidelines.

The same day, Martin Richard Kristek, in his role as managing director and owner of the Care-Energy group of companies, created the company Care-Energy Bulgaria OOD, with its headquarters in Sofia. “I am very proud that Dr. Atanas Kanchev has agreed to take on the position of CEO for this company, and together with Care-Energy Bulgaria OOD, we will do everything in our power to support the objectives set by the government,” said Martin Richard Kristek.

Dr. Atanas Kanchev studied business at the highly acclaimed “D.A. Tsenov” Academy of Economics in Svishtov, held the post of Deputy Minister of Finance in Bulgaria from 2007 to 2009, and holds key positions in finance to this day.

Care-Energy Bulgaria OOD, with its headquarters in Sofia, will take on the responsibility of building and extending the business activities of Care-Energy in Bulgaria as well as in Croatia, Poland, Romania, Serbia, Slovakia, Slovenia, the Czech Republic and Hungary. All Care-Energy business activities will be modelled on those practiced by Care-Energy in Germany. This includes an energy trading desk for delivering and supplying electricity, gas and other energy related and environmental products from and within the CEE region to resellers and bulk buyers.

Image Courtesy of    President of the European Council

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Kyiv, Ukraine – The global edition of The New York Times – International Herald Tribune – dedicated a page to Ukraine in their Friday issue (April 20th). Articles on Ukraine included a feature on the European integration, article on trade with Middle East, as well as a piece sketching Ukraine – Turkey cooperation.

The page titled Partners in Growth begins with an analysis of prospects of enhancing commercial ties with Turkey. “Turkey is an important exporter to Ukraine, sending its food products – especially fruit and nuts – cars and clothes,” reads the text. Ukraine, in return, exports steel products, mineral fertilizers, and chemical and agricultural products to Turkey, says the article.

Summarizing the pros of closer cooperation with Turkey, the piece reminds that such policy fits within the so-called third way strategy outlined by the Ukrainian foreign minister Kostiantyn Gryshchenko. It suggests that an active foreign policy of increasing trade with non-EU and non-CIS states needs to be implemented.

The article on Ukraine’s European integration explains the role of Association Agreement on the way toward becoming a part of the EU. “Polish diplomats hailed the treaty [Association Agreement] as a breakthrough that puts Ukraine directly into the EU orbit,” says the text of the piece that looks onto the possibilities that agreement opens for Ukraine.

According to the article in the International Herald Tribune, Association Agreement targets to eventually lead to a political association and a free-trade area between Ukraine and the EU. Quoting the Secretary of the National Security and Defense Council of Ukraine Andriy Klyuyev, the article states that a free-trade area with the EU would boost the Ukrainian economy by two percent. Overall, association with Europe would allow Ukraine adopt high European standards, reckoned Minister Gryshchenko.

The International Herald Tribune also informs that the country is an important supplier of grain, goods and expertise to the countries of Middle East and North Africa. Unsurprisingly, Ukraine exports large amounts of grain to the region. Moreover, in October of 2011 the Ukrainian parliament ratified an agreement with Saudi Arabia on space cooperation.

The article puts focus on relations with Egypt and Saudi Arabia as Ukraine’s most active partners in the region.

Incidentally, Ukraine got exclusive coverage in The Washington Post in their February 1st special edition.

Image Courtesy of  Anton Gvozdikov / Shutterstock.com

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A new report by 13 leading international and Congolese civil society groups asks the international community and Congolese government to urgently agree upon a new deal to reform the Congolese military. The report argues that the lack of political will to reform the security sector in the Democratic Republic of the Congo (DRC) risks not only billions of dollars of international aid but also the stability of the country.

“At the end of the day, many of Congo’s seemingly intractable conflict-related problems can be traced back to dysfunctional security services: the army, police and courts. The Congolese government has failed to take concrete action to reform these vital institutions,” said Emmanuel Kabengele, National Coordinator of the Congolese civil society Network for Security Sector Reform and Justice.

“Yet the international community has continued to sustain the government, investing money and effort with no actual return. It’s high time that donors demand that Congo engage in real army reform.”

The report, Taking a Stand on Security Sector Reform, was completed after extensive research and interviews in DRC and donor countries. It argues that the army not only fails to provide security but actively preys upon the population, being one of the major perpetrators of human rights violations in the country.

“An effective security sector – organized, resourced, trained and vetted – is essential to solving problems from recruitment of child soldiers, internal displacement and rape, to economic growth or the trade in conflict minerals,” says the report.

The report concludes that the main reason for the failure of army reform in DRC is a lack of political will from parts of the Congolese government – notably those elements which have benefited from endemic corruption.

“The very people in senior positions of the government and military who are responsible for effecting reform continue to profit from the current army, either in raking off salaries of servicemen, kickbacks, or involvement in illegal mining, trade or protection rackets” said Dismas Kitenge, President of the Congolese organization, Groupe Lotus and Vice-President of the International Federation for Human Rights (FIDH)

The paper underscores the critical role the international community must play. In just five years, the report documents that donor countries alone have invested more than $14 billion into the DRC.

Yet only 1%, or $140 million, was spent on security sector reform. International aid is now equivalent to nearly half of the DRC’s annual budget. As such, donors have considerable leverage over Congo. Yet despite this enormous investment, the DRC has actually gone backwards. The DRC is ranked last in the world on the UN’s main development index.

“The international community’s investment in DRC has yielded poor results. Numerous armed groups send thousands of child soldiers into battle, and women and children continue to bear the brunt of violence. Adequate health care and personal security remain the exception rather than the rule,” said Ben Affleck, Actor, Director and Founder of Eastern Congo Initiative (ECI).

“Donors must work to convince the Congolese government to undertake drastic military reform. Unless a new course of action is adopted, we run the risk of losing much of the investment that has already been made.”

The costs of accepting the status quo are high, for the Congolese people but also for the international community. In addition to the traditional donors – US, EU, UK, France and Belgium – key partners such as China, South Africa, and Angola all have a vested interest in the stability and long-term prosperity of the DRC.

“The new government must seize the opportunity to refocus attention on implementing sustainable and effective reform,” said Pascal Kambale from the Open Society Initiative for Southern Africa (OSISA). “Now is the time for the international community and Congolese government to work together to reform the police and army so that Congo is capable of protecting its own civilians.”

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Ukrainian Cabinet of Ministers adopted the 2012 plan of immediate measures concerning the country’s integration to the European Union. The document deals with internal reform issues (the likes of gas transporting system modernization, institutional reform in Ukraine, and hosting EURO 2012), as well as questions of deepening Ukraine-EU ties: visa liberalization, cooperation with EU police and justice offices, expanding trade cooperation, etc.

Besides the listed domestic reforms, the document stipulates measures to enhance regional development of the country, restructuring of the national gas managing company Naftogaz, as well as preparations to the Association Agreement implementation.

Ukraine also plans to enhance cooperation with the EU in the areas of nuclear safety, research and technology, defense, space exploration. Additionally, the new document sets the agenda for creating the common airspace with the EU. According to the plan, Ukraine intends to join the European Network of Transmission System Operators for Electricity.

Ukraine and the EU share a 1,391 kilometer long border and have established close cooperation in a number of areas. Ukraine is EU’s strategic gas transit partner. Its gas transporting system services 70% of the Russian gas export to Europe. The EU is one of Ukraine’s key trade partners with the trade volume in 2011 constituting USD 44 billion and demonstrating a 36% growth.

European integration has been a long-term foreign policy goal for Ukraine. The country began negotiations with the EU in 1999. Various officials of the EU member states, including Czech Republic, Finland, and Lithuania, backed Ukraine’s European ambition.
By 2007 the sides agreed to eventually sign the Association Agreement. After 21 rounds of negotiations over the Association Agreement, Ukraine and the EU finalized the negotiating process on December 19, 2011.

The Association Agreement will regulate political cooperation of the partners, as well as introduce the Deep and Comprehensive Free Trade Area between Ukraine and the EU. Initialing of the political and, partly, economical sections of the document took place in Brussels on March 30, 2012.

Currently the sides are working on the technical aspects of the document preparation for signing and further ratification. Meanwhile, the President of Ukraine Viktor Yanukovych stated that Ukraine perceived the Association Agreement as comprehensive program of reforms.

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Due to the contracts signed by Yulia Tymoshenko in 2009, Ukraine will be overpaying from 3 to 5 billion USD for gas annually up to the year 2019.

On April 10 a press conference of Ukrainian officials was held at the premises of NCI European Parliament in Brussels, with the participation of European journalists, experts and community leaders. The topic of the press conference is “Why is Y. Tymoshenko still in jail?”

These results have already been reported to the Ukrainian Parliament’s deputies on March 20, 2012. After hearing the report, 266 people’s deputies out of 450 agreed with the Commission’s arguments. These are the results of the work of the parliamentary Provisional Investigatory Commission.

The Provisional Investigatory Commission has been working for the period from March 2011 to March 20, 2012 in accordance with the following principles:

а) The Commission’s conclusions were made solely on the basis of documents received through official channels;

b) The Commission’s work was carried out with the participation of the representatives of the governmental bodies as well as the opposition in an open mode;

The results of the Commission’s work had shown that during the negotiations and signing of the gas contracts the Prime Minister Tymoshenko violated the following rules:

а) concealed from the public and the authorities the facts of the conflict of interests and dependence on Russia – namely, the debt of her private companies to the Ministry of Defence of the Russian Federation in amount of 405 million US dollars and the criminal case on a charge of bribery;

b) held secret negotiations with the Prime Minister of Russia, in the result of which she agreed to the signing of unfair contracts that violated the provisions of the previous international agreements;

c) knowing that the government of Ukraine had refused to approve the Directives on signing of the contracts, approved them personally, though, only the Cabinet of Ministers, as the collegial body, has the right for such approval;

d) put pressure on the head of the company and made him sign the contracts, threatening him with the dismissal.

In accordance with the comparative analysis of the Criminal Code of Ukraine and other European countries it was proved that 11 EU member states have articles providing the punishment under the criminal law for such crimes.

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The European smart meter market is at a growing stage. While smart meter developments are taking place in countries like Denmark, Finland and Norway, large scale rollout has been planned in countries such as UK, France, Spain and Portugal to meet the energy targets and environmental policies set by the EU. Currently Sweden and Italy are the only mature markets in Europe.

New analysis from Frost & Sullivan (http://www.energy.frost.com), European Smart Meter Markets, finds that the smart meter revenue in Europe is expected to grow from $318.4 million in 2010 to $1.93 billion in 2017 at a compound annual growth rate (CAGR) of 29.3 per cent.

The smart meter installed base in Europe is expected to grow from 43.90 million in 2010 to 200.43 million in 2017 at a CAGR of 24.2 per cent. The market foresees larger growth post 2012 with the publishing of the standardisation mandate. Standardisation will affect the future development and innovation of smart meters.

Europe is a push market where the smart meter and smart grid markets are legislation driven. There is region-wise disparity due to the different regulatory challenges faced by each country, thus having a direct impact on implementation.

“The smart meter market is expected to prosper, owing to the recent impetus from renewable energy and smart grid implementation,” says Frost & Sullivan Research Analyst Neha Vikash.  ”Smart meters are required for integration of renewable energy. Europe is focussed on meeting the 20-20-20 targets which is a necessary driver for increase in renewable energy and the third energy directive targets 80 per cent smart meter penetration in the residential sector by 2020.”

Currently, the European smart meter market has less than 20 vendor companies. The competition among manufacturers, utilities, ICT, network, remote monitoring and automation companies is high and it is forecast to increase along with new participants entering the market. In particular, Chinese and other Asian companies will start to make their appearance in this market during the next 1-2 years.

If you are interested in more information on this study, please send an e-mail with your contact details to Chiara Carella, Corporate Communications, at chiara.carella@frost.com.

European Smart Meter Markets is part of the Energy & Power Growth Partnership Services program, which also includes research in the following markets: Asia-Pacific Substation Integration and Automation Market, Analysis of the Wind Turbine Components Market, Strategic Analysis of the Opportunities in the Brownfield and Marine Support Services, European Cogeneration Market, and European Low Voltage Switchgear Markets.

All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

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Brussels, 27 February 2012. The Council adopted the following conclusions:

“1. The EU welcomes the conduct of elections to both the People’s Assembly and the Shura Council in Egypt and congratulates the candidates and parties that took part in the democratic process. The EU supports Egypt’s transition towards a democratic, pluralist and stable country. The holding of free and fair elections is a first and crucial step in this regard.

2. The EU welcomes the inauguration of a new Parliament by the end of February. The newly elected Parliament will face many serious challenges, including in meeting the need for progress in democratic reform, the rule of law and respect for human rights and fundamental freedoms, inter alia freedom of expression and assembly. The EU encourages an inclusive and constructive approach in tackling them.

3. The EU looks forward to the appointment of the Constitutional Committee responsible for the drafting of a new Constitution reflecting a democratic Egypt, protecting human rights and fundamental freedoms, and the important role of women. The EU emphasises the importance of an inclusive and transparent drafting process, representative of all elements of the Egyptian society, including persons belonging to minorities.

4. The EU underlines the importance of transfer of power to civilian rule as soon as possible and encourages the authorities to establish a definitive timetable for the holding of Presidential elections. The EU reiterates its offer of electoral support. In the meantime, the interim authorities should ensure the protection of civilians in full respect of human rights and fundamental freedoms and ensure early completion of investigations into recent violence, including against religious communities, as well as adequate follow-up of the recommendations following from these investigations.

5. The EU reiterates its deep concern with regard to restrictions on civil society organisations in Egypt. While fully respecting the independence of the judicial system in Egypt, the EU intends to monitor closely the ongoing legal proceedings against NGO staff and underlines expectations regarding due process.

Egyptian civil society has played and continues to play a crucial role in the transition. An active and independent NGO community is fundamental in any democratic society. EU’s support to civil society is a key component of the revised European Neighbourhood Policy, which is based on mutual accountability and a shared commitment to the universal values of human rights, fundamental freedoms, democracy and the rule of law.

Therefore, the EU calls upon the Egyptian authorities to do everything possible to resolve the current situation in a timely and constructive manner. The EU underlines the importance of the adoption of a new law that would be consistent with Egypt’s international obligations.

6. The EU expresses its deep concern regarding the deterioration of economic situation in Egypt and conveys its continued support, including in the framework of the Deauville Partnership and of the revised European Neighbourhood Policy. It underlines the importance for Egypt to engage in the necessary social and economic reforms and to allow the effective use of available international assistance.

7. Recalling the principles and objectives set out in the Council Conclusions of 20 June 2011, and its commitment to supporting democratic reform in its neighbourhood, the EU has outlined an agenda of available assistance to Egypt, including financial support, further integration of markets and launching of a dialogue on migration, mobility and security.

The EU remains committed to working with the new Egypt, its new democratic institutions and eventual government in this regard. Egypt remains a key partner in the region sharing the goal of building stability, peace and prosperity in the Mediterranean and Middle East region.”

Souce: European Council

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The goal of our diplomatic activity is to “stop the violence, stop the massacres, find a new stability for Syria: a great country that must respect the rights of all”. Speaking was Minister Giulio Terzi, at the close of the 5+5 meeting at Villa Madama. “We support the Arab League project”, underscored Terzi, explaining that “we are acting in concert with our EU partners”.

Minister Terzi also referred to the “Friends of Syria” meeting taking place in Tunis on Friday 24 February: a diplomatic initiative of great relevance, not least in view of its inclusive nature. A point that was underscored by the Tunisian Foreign Minister, Rajik Abdessalem, who co-chaired the “5+5” meeting with Minister Terzi.

The Syrian National Council and the Syrian opposition have been invited to the Tunis meeting, said Abdessalem. He explained that “representatives of civil society will also be present, while the opposition will have its own status” at the event. The Minister underscored that no-one wants further “Iraqi scenarios” for Syria but that a “strong message” for Bashar Assad’s government must emerge from the Friends of Syria meeting.

“A radical reform of the political system is needed”, said Abdessalem. He pointed out that “the integrity of Syrian territory” must be protected to ensure that “Iraqi scenarios” are not created. The Tunis meeting will bring together representatives of all the countries concerned with bringing an end to the violence in Syria. It will reiterate the utter condemnation of civilian killings, added Abdessalem, who noted that “the Syrian National Council and other members of the opposition in Damascus have been invited to the summit, where they will have their own status”.

The French Foreign Minister, Alain Juppé, speaking in the margins of the Euro-Mediterranean Forum in Villa Madama, said that “we need to press the Syrian opposition to unite, to organise and to take into account all the sensitivities. The sensitivities of those who are ‘inside’ and those who are ‘out’, and of the various communities who must be represented if the opposition wants to become a partner in the political dialogue that will find a way out of the crisis”.

Much of the discussion at the Dialogue for the Mediterranean ministerial focused on the Syrian crisis, not least in light of the Friends of Syria meeting of 24 February 2012 in Tunis. Juppé commented that “we agree on the goal of supporting the Arab League plan and halting the violence and repression. And we also agree that the process to end the crisis must be a political process”. The head of French diplomacy added: “we hope that the Syrian opposition will be present at the Tunis meeting”.

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One year after the “Arab spring”, the southern shores of the Mediterranean remain unstable and fragile. For European people, the current situation means that they will now have to change their approach to take due account of the four challenges that the countries of the Maghreb must face.

The first of these is the economic and social challenge. Unless we meet expectations expressed, political reforms will not be sufficient. The question of how to use and draw up a new development model must be at the heart of the leaders’ concerns. Though Morocco undoubtedly has the most offensive strategy, the Tunisian economy is now fragmented and Algeria has a rentier economy characterised by closure.

Only a response to this first challenge will overcome the challenge of democratisation. Though revolutions have brought a return to aspirations for change by the populations, the results of elections are cause for concern. However, the reality principle must be imposed on everyone. Everything is working to reinforce the democratic framework and the new teams should not be demonised – we should give them the powers they need, work with them and judge them by their actions.

Economic and social developments will also help confront the security challenge. Al Qaida, which has sought to use aggressive tactics, has not as yet reaped any major successes in the Maghreb. Another risk has to do with the increasing insecurity in the Sahel, under the dual effect of terrorist groups establishing bases there and the repercussions of the war in Libya.

There will not be any progress without a real desire to face up to the cooperation challenge. The “Arab spring” should be an opportunity to determine the need for regional integration. However, any improvement could be compromised if the conflict in the Western Sahara is not settled, despite the independence proposal tabled by Morocco in 2007, the most credible and most realistic solution. Europeans have, in all instances, nothing to lose by relying on initiatives moving towards maximum synergy.

The report was presented in Brussels at the Second Meeting on Sustainable Security in the Maghreb on Thursday 16 February 2012. For further information, visit http://www.institut-thomas-more.org and http://securitedurable.com.

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The European Union and the United States announced that beginning June 1, 2012, organic products certified in Europe or inthe United States may be sold as organic in either region. This partnership between the two largest organic-producers in the world will establish a strong foundation from which to promote organic agriculture, benefiting the growing organic industry and supporting jobs and businesses on a global scale.

The organics sector in the United States and European Union is valued at roughly 40 billion euroscombined, and rising every year. Formal letters creating this partnership were signed on February 15, 2012, in Nuremberg, Germany, by Dacian Ciolos, European Commissioner for Agriculture and Rural Development; Kathleen Merrigan, U.S. Agriculture Deputy Secretary; and Ambassador Isi Siddiqui, U.S. Trade Representative Chief Agricultural Negotiator.

The signing took place at the BioFach World Organic Fair, the largest trade show for organic products in the world. ”This agreement comes with a double added value,” said EU Agriculture and Rural Development Commissioner Dacian Ciolos. “On the one hand, organic farmers and food producers will benefit from easier access, with less bureaucracy and less costs, to both the U.S. and the EU markets, strengthening the competitiveness of this sector.

In addition, it improves transparency on organic standards, and enhances consumers’ confidence and recognition of our organic food and products. This partnership marks an important step, taking EU-U.S. agricultural trade relations to a new level of cooperation.”

“This partnership connects organic farmers and companies on both sides of the Atlantic with a wide range of new market opportunities,” said U.S. Deputy Agriculture Secretary Kathleen Merrigan. “It is a win for the American economy and President Obama’s jobs strategy. This partnership will open new markets for American farmers and ranchers, create more opportunities for small businesses, and result in good jobs for Americans who package, ship, and market organic products.”

“This is a significant step in strengthening our bilateral trade relations,” added Ambassador Isi Siddiqui. “I am confident that this arrangement will facilitate and boost agriculture trade between the European Union and the United States – and lead to more jobs in this important sector for both America and Europe.”

Previously, growers and companies wanting to trade products on both sides of the Atlantic had to obtain separate certifications to two standards, which meant a double set of fees, inspections, and paperwork. This partnership eliminates significant barriers, especially for small and medium-sized organic producers. All products meeting the terms of the partnership can be traded and labeled as certified organic produce, meat, cereal, or wine.

Leading up to today’s historic announcement, both parties conducted thorough on-site audits to ensure that their programs’ regulations, quality control measures, certification requirements, and labeling practices were compatible. Although there are small differences between the U.S. and European Union organic standards, both parties individually determined that their programs were equivalent except for the prohibition on the use of antibiotics.

The USDA organic regulations prohibit the use of antibiotics except to control invasive bacterial infections (fire blight) in organic apple and pear orchards. The European Union organic regulations allow antibiotics only to treat infected animals. For all products traded under this partnership, certifying agents must verify that antibiotics were not used for any reason.

In addition, all products traded under the partnership must be shipped with an organic export certificate. This document will show the production location, identify the organization that certified the organic product, verify that prohibited substances and methods were not used, certify that the terms of the partnership were met, and allow traded products to be tracked.

Both parties are committed to ensuring that all traded organic products meet the terms of the partnership, retaining their organic integrity from farm to market. The European Commission’s Directorate General for Agriculture and Rural Development and the U.S. Department of Agriculture’s (USDA) National Organic Program—which oversees all U.S. organic products—will both take on key oversight roles.

The United States and the European Union will continue to have regular discussions and will review each other’s programs periodically to verify that the terms of the partnership are being met. The EU and U.S. will also begin to work on a series of cooperation initiatives to promote organic production and tackle important topics such as animal welfare and other issues.

Both programs will share technical information and best practices on an ongoing basis to further enhance the integrity of organic crops and livestock production systems. Currently, this agreement only covers products exported from and certified in the United States or the European Union.

For more information, please see:
USDA National Organic
http://www.ams.usda.gov/NOPTradeEuropeanUnion
European Commission Organic Farming
http://ec.europa.eu/agriculture/organic/home_en
Speech by EU Agriculture Commissioner Dacian Ciolos
http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/12/98

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As Russia’s Gazprom admitted that it had cut gas supplies to Europe at the height of the current cold spell, Ukraine said it is ready to help Russia deliver the necessary volumes of gas to Europe and called for greater European cooperation to modernise its gas transport infrastructure and improve energy security for the EU.

Italy, Austria and France were reporting cuts of as much as 30 percent of Russian gas over the weekend. Analysts have said that Ukraine, which as a transit country accounts for more than 70 percent of Russian gas shipments to the EU, is as much a victim of Moscow as the rest of Europe.

Gazprom Deputy Chief Andrey Kruglov was reported to be conferring with Prime Minister Vladimir Putin, who has in the past both threatened and implemented cuts to Ukraine and the EU.

Ukraine’s Energy Minister Yuri Boiko was quoted by news agencies saying that shipments to Ukraine had fallen in recent days. Gazprom admitted this but claimed the reason was Russia’s enhanced need because of the cold. Ukrainian President Viktor Yanukovych meanwhile called on energy market participants to seek joint solutions for the future.

“We rely on our European partners, international financial institutions to implement the agreements on their participation in upgrading Ukraine’s gas transportation system,” the Ukrainian president said at the 48th Munich Security Conference on Friday.

He stressed that the situation showed the need for cooperation among all parties and respect for clear, transparent and fair rules of the game in the energy sector. There was a need to balance the interests of Ukraine as the main transit country, Russia as the main supplier, and the European Union as a consumer, President Yanukovych said.

In his speech at the Munich conference, the Ukrainian president also spoke of what he termed the one-sided conditions of the 2009 gas contract with Russia. In 2009, then Prime Minister Yulia Tymoshenko, signed a multi-billion and multi-year dollar gas deal with Vladimir Putin’s Russia that is currently forcing Ukraine to pay more than $500 a cubic meter for Gazprom’s supply of gas, even though world market prices are around $400 per cubic meter.

Analysts in Washington are concerned that Russia may be using its Gazprom supplies to pressure Ukraine to submit to closer Soviet-style ties. They fear that Moscow may try and use its energy supplies and pricing to stop President Yanukovych from his announced aim of signing an Association Agreement with the EU and developing closer ties with Europe.

The recent trial and conviction of Opposition leader Yulia Tymoshenko, who was herself a one-time business partner of Russia in the natural gas sector, focussed on her signing of the high-priced 2009 deal with Gazprom without any Cabinet consultation when she was Prime Minister. It was that same deal which is now causing Ukraine to find itself in financial difficulty and a potential hostage of Moscow’s leverage.

 
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Consumer Watchdog recently praised European data protection authorities for asking Google to delay implementation of its new privacy and data policies and said the U.S. Federal Trade Commission should determine whether the new policies violate the terms of Google’s consent agreement with the commission.

Under the new policies, announced by Google last week, the Internet giant would combine data from different services that it had kept separate in the past.

“Google is making a huge change that weakens your privacy protection,” said John M. Simpson, Director of Consumer Watchdog’s Privacy Project. “I am glad the Europeans have taken the lead on this, but now it’s imperative that the FTC determine if Google has violated its consent agreement. I think they have. Google is using your data in a new way and not making the change on an opt-in basis as the consent agreement requires.”

Jacob Kohnstamm, chairman of the Article 29 Working Party, an association of the data commissioners from the European Union, wrote Google CEO Larry Page seeking the delay in implementing the policies, due to go into effect March 1.

“Given the wide range of services you offer, and popularity of these services, changes in your privacy policy may affect many citizens in most or all of the EU member states,” wrote Kohnstamm. “We wish to check the possible consequences for the protection of the personal data of these citizens in a coordinated procedure.”

He said the French data protection authority, the CNIL, would take the lead in the analysis. Google’s consent agreement with the FTC came as a result of the “Buzz” debacle in which the Internet giant displayed users’ email addresses without their consent as it tried to launch a social network. Under the terms of the agreement, Google can’t use data it has collected in new ways unless users opt in to the new use.

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Ukraine has moved up 15 places in the World Press Freedom Index [http://en.rsf.org/press-freedom-index-2011-2012,1043.html ] published this week, reflecting an improved media landscape in the nation during what proved to be a year of critical world attention.

Ukraine climbed from 131 to 116 on the international table placing it well above many former Soviet republics such as Tajikistan at 122, Russia at 142, Kazakhstan 154, Uzbekistan 157 and Belarus 168out of the 178 countries surveyed globally. The World Press Freedom Index 2011/2012 was produced by Reporters Without Borders.

The boost to Ukraine’s ranking in 2011 reflects a more relaxed working and reporting environment for both domestic journalists and those who visited the country during a year of difficult long-running issues. The trial of Yulia Tymoshenko for abuse of office in committing the cabinet, without consultation, to very high gas prices with Russia in 2009 drew sustained critical reportage both domestically and internationally and the on-going gas dispute with Russia has also been featured.

“While we don’t agree with many foreign assessments of media freedom in our country the Government of Ukraine notes the substantial improvement in our global ranking from Reporters Without Borders,” a foreign ministry spokesman said.

“Last year showed that journalists in this country are free to cover the important issues whether favourable or unfavourable to the government.

“We invite those same journalists to also report the story of Ukraine’s economic improvements, our commitment to our European identity, and the progress toward an Association Agreement with the European Union,” the spokesman said.

A new Electoral Law, modelled on the Council of Europe’s recommendations and requirements, was recently approved by the Ukraine’s Parliament with the support of both the Government and the Opposition. This should set the scene for fair and democratic elections next October.

The EU has significant economic interests in the country, with considerable imports of natural gas that transit Ukraine, and trade valued at some EUR40 billion a year. In 2011 Ukraine’s GDP grew by 5.2 percent and inflation declined from nine percent to five percent.

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Poland has been America’s historically staunch ally and fellow fighter for freedom, but despite the close ties between the two countries, the Polish are often denied entry to visit relatives in America. Citizens of every member of the EU can travel freely to the USA without a Visa except Bulgaria, Romania, and Poland. And Poland has paid her dues.

After World War II, and despite being a devout ally, the West conceded to the Soviets, and Poland was incorporated into the eastern bloc to be under the Kremlin yoke for the next five decades. Upon the demise of the USSR, Poland immediately became an ardent American supporter, restoring strong diplomatic relations that continue unheeded to this day.

Polish patriots seeking liberation from occupying forces of the 18th century contributed greatly to the American Revolution. “Father of the American Cavalry,” Casimir Pulaski, was given a national holiday for his prowess and saving the life of George Washington. A good friend of Thomas Jefferson, expat Taddeusz Kosciusko engineered fortifications to defend against the British. He would later leave his will toward black emancipation and education. Countless towns, bridges, parks, monuments, mountains and even a submarine have been dedicated to such Polish-American heroes of valor.

Continuing to align themselves with the West, and in effort to prove themselves militarily with NATO, Poland has greatly contributed toward America’s War on Terrorism. Poland deployed the fourth-most troops in the second Iraqi war, and currently has over 2,500 soldiers engaged in Afghanistan.

Controversially, Poland has hosted black CIA interrogation/torture sites against suspected members of Al-Qaeda. A complaint was filed by The European Court of Human Rights for failing to investigate the CIA prison. A criminal case was launched in 2008 and is still ongoing for crimes against humanity. Additionally, NATO-Poland has harassed Russia by approving American SM-3 missile bases to be built near the border with Belarus.

Even as a member of the UN, NATO and Schengen committee, Polish people must enter a costly, time consuming application process to visit America. With a sizable Polish Diaspora, many family members are denied the right to visit relative émigrés.

Poland is the only European country that avoided recent economic depression, and even rated a positive GDP growth in 2010. The majority of Polish visitors are not looking to overstay their Visas during a boom time in their home country. An enormous Polish diaspora (Polonia) exists outside her European borders. America harbors an estimated ten million citizens of Polish descent. Chicago alone has over 180,000 Polish-speaking residents.

In April of 2011, the Polish American Congress raised the issue enough to garner attention from Senator Mark Kirk who sponsored bill S. 497 and Congressman Mike Quigly wrote up the corresponding H.R. 959 to modify existing immigration restriction rates to include Poland on the Visa Waiver Program. Currently, the visa refusal rate is the standard for a nation to qualify for the VWP.

The bill seeks to replace the standard, using overstay rates as the deciding factor. Quigly testified before the House Subcommittee on Immigration Policy and Enforcement Dec. 7. “This is an issue of fairness and equity for a longstanding friend and partner, Poland,” said Rep. Quigley. “Expansion of the Visa Waiver Program will improve our international diplomatic relationships, create jobs, stimulate the economy and strengthen national security. It’s time to expand outdated travel standards to include our proven allies.” VWP travelers spent more than 51 billion dollars in the U.S. That spending generated 512,000 jobs, 13 billion dollars in payroll and 7.8 billion dollars in taxes for the American economy.

Obama promised to sign both bills if they pass through their respective committees. “I am going to make this a priority,” Obama said, sitting alongside Polish President Bronislaw Komorowski. “I want to solve this issue before very long. My expectation is, is that this problem will be solved during my presidency. I am well aware that this is a source of irritation between two great friends and allies, and we should resolve it.”

The USA raised the standards of visitation in the post 9-11 world, and, with more than ten-percent of Poles being denied entry for suspicion they may overstay their Visa, they become disqualified from the VWP.

Grzegorz Kostrzewa-Zorbas, a former member of the Polish foreign affairs ministry, said, “Poland feels discriminated against,” Kostrzewa-Zorbas said, “differentiated from other allies of the United States around the world.”

“Will al-Qaeda penetrate America disguised as Polish peasants? Will the job market be flooded by unqualified, culturally alien workers from Poland? Of course not,” Kostrzewa-Zorbas said.

Contact members of your state’s Committee of the Judiciary to support the bill or become co-sponsor if they are not in the committee the bill was referred to, or sign the VISA Waiver Petition.

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The European Central Bank cut its economic growth forecast for the Euro zone amid rising fear for the economic health of the continent. This move is a downward revision of earlier forecast by ECB. ECB President Jean-Claude Trichet said at a press conference that “there is a risk that growth will slow to near standstill nest year.”

The downward spiral of the European economy has been so powerful that it has casted clouds over the future prospect of whole Euro zone. A crisis of sovereign debt might develop unprecedented fissure in the union which perhaps may lead Greece to exit the EU. Furthermore there has been growing concerns over the future of the Euro as currency.

On the possibility of the Euro zone sinking back into recession, Trichet said “it is difficult to make forecasts in the current situation.”An unfortunate economic situation in Europe is emerging from fiscal disintegration among nations in the Euro zone, coupled with an overall fragile economy. Even so, authorities could have averted the debt dilemma if the economy would have been functioning well.

The confidence in the 17-nation currency area was further dented when Italy was forced to pay the highest interest rates since joining the EU. “I think there is a possibility, if wrong steps are taken, that the system goes off the rails” said Sergio Marchionne, CEO of Italian car maker FIAT. Markets have already taken interest rates on Italian bonds to much higher levels indicating the risks involved in the vehicle.

Yields on bonds are determined according to market sentiment — if investors feel very edgy and uncertain, interest rates may soar and vice versa, leading to a breeding burden on governments. Five year bond yield hit a Euro lifetime high of 5.60 percent recently. Domenico Lombardi, president of the Oxford institute of Economic Policy said “European policy makers must act fast to ward off a full-blown market attack on Italy.”

On the other hand, Moody’s rating agency downgraded two top French banks over fear of their exposure to Greek sovereign debt. Moody’s cut the rating of Credit Agricole bank, one of biggest of Europe from Aa1 to Aa2 and also downgraded the rating of Societe Generale from Aa2 to Aa3.

Banking industry in the Euro zone is in the circle of gloom for being exposed to various potentially unsafe securities of government bonds. The institute of international finance told that prolonged inability to deal with Europe’s debt issues put its banking system at severe risk.

In his description of the magnitude of severity of economic uncertainty, European commission head Jose Manuel Barroso said “the most serious challenge of a generation. This is a fight… for the economic and political future of Europe.” It all depends on how the financially big countries of Europe behave in a bid to rescue the area — how well they hear the brawl of economically beleaguered nations by designing a suitable rescue package that optimally saves the EU from disintegration in the future.

What is needed is a temporary bail-out and stringent fiscal integration among nations in the future in order to ward-off economic demons.

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The possibility of the European Economy inviting the double dip recession is almost certain. Experts say Greece will not be able to pay all of its debt. The fate of Europe and European Economy depends on how effectively countries entangled in debt crisis mitigate its impact.

European leaders, and especially leaders of devastated public finance systems, have lost sleep in order to keep the pulse of their economy beating. They are on the brink of collapse that might potentially drag-back the world economic growth rate to lowest in a decade.

The International Monetary Fund (IMF) and European Union (EU) have been attempting to keep the country solvent to avoid another recession hitting already weak global economy. The most outrageous shock will be on the EU banking industry as a whole, since European banks parked heavy doses of money into sovereign debt in the region.

Of all 17 nation bloc of Europe, exposure of France to Greek debt is $56.7bn, German exposure is $33.9bn, and the UK is $14.6bn. The EU and IMF agreed on 110bn Euros of bailout funds for Greece last year and again this year in July a further provision of 109bn Euros was agreed upon.

In July, European leaders agreed to provide an additional 109bn Euros bailout to Greece as it again came on the verge to default. Even so Greek Economy never settled on to that and situation got much worse. The problem with Greece, Italy, Spain, Ireland, and Portugal in a broader sense, is that they all were living beyond their means.

Over the last 5 years, the fiscal gap had been drenching wider and wider. All these nations had been spending far from revenue which led them to put reliance on debt, and because of this, the debt balloon is so big that it will possibly burst. According to Gary Jenkins, the head of fixed income research at Evolution securities, the timing of a Greek default remains in the hands of the troika (EU, ECB, and IMF), and it is difficult to believe that it will pull the plug at this stage.

Louise cooper, Market analyst at BCG Partners, shared his opinion on the situation. “I’m not sure that more austerity will help, which is troika demanding. What is needed is deep structural reform, which neither the Greek electorate or political class seem to have much appetite for.”

A recent report included a plan to eliminate 25,000 public sector employees hired last year, but according to spokesman for the European commission, Amadeus Altafaj-Tardio, new austerity measures aren’t on the table but negotiations are underway for full-fledged compliance with earlier agreed measures.

With drastic drop in public expenditure on various socio-economic fronts there has been wide-spread anger and violent protest in Greece so far this year. Greek default may sky-rocket cost of borrowing in the region and potentially Europe may face credit crunch which will be greatest hindrance to weak economies of the region.

If Greece somehow manages for an orderly default that might push repayments a decade ahead so confidence in the region might not get shaken completely or otherwise trust in the euro zone may be shattered forever. In its semi-annual World Economic Outlook, IMF gave a statement saying, “Global Activity has weakened and became more uneven; confidence has fallen sharply recently; and downside risks are growing.”

The Fund further said, “Greek default already affecting the world economy. Coupled with the economic slowdown in the United States and the impact of the Japanese earthquake, Europe’s debt crisis is putting the global recovery at risk.”
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Soon after the so-called end of the depression period in the global economy, at a time when the global economy started a weak recovery, a more complex economic phenomenon emerged as the next bellwether to world economy.

Since 2009, the European economy has been struggling with slow economic growth rate and indomitable debt crisis that led to political disturbance in some countries of Europe. The crisis has dragged these economics back in to recession.

Years of heavy, unprecedented government spending in Greece and other countries of the Euro zone, led governments to go beyond available budgetary resources, and rely solely on borrowing to finance expenditures. This produced a series of risks to these economies and financial systems as a whole.

Leading economists warned that European debt crisis could spread across the continent in a major blow to the single currency system; further, the International Monetary Fund said turmoil in Greece, Ireland and Portugal may engulf the wider Euro zone despite billions of Euros already spent in emergency aid so far.

In an attempt to reduce dangerously rising levels of debt and forced and deep painful cuts in public expenditure — less government spending — drove up unemployment and put several nations back into recession. Many economists around the world claim that such immediate spending cuts are self-defeating in nature.

After much struggle in 2010 the EU and IMF combined to offer Greece a bailout package of 110 Billion Euros, followed by a broader contingency fund of 500 billion Euros. But the new loans came with the effect of austerity measures that apparently demanded a ceiling on public expenditure leading to widespread protests and political uncertainty in Ireland and Portugal.

Recently, the prime minister of Portugal said the government decided to ask the European Commission for financial help. According to economists, Portugal needs financial aid to the size of 80 Billion Euros.

After Greece and Ireland, Portugal became the third financially troubled country in the Euro zone to request financial assistance from Europe’s Bailout Fund and the IMF.

The era of financial trauma in the Euro zone began in December 2009, after newly elected Greek Prime Minister George Papandreou announced that his predecessors had hidden the actual size of the massive budget deficit. In a bid to regain the lost confidence in the region, the IMF urged European leaders to fix the banking problems and slash national deficits that have undoubtly led to stringent austerity measures.

Economists also say that strong policy responses so far that led to the weakening of Greek, Irish and Portuguese economies have contained the fear to some degree. However, markets are uncertain about the Greece capacity to pay back its debt of 285 million pounds, or $463.95.

As of now, Greece has more than 300 billion Euros of debt constituting to a sum of 140 percent of its total GDP. Recently, the EU and IMF Agreed to a 110 billion Euro bailout. According to Jose Manuel of the European Central Bank, a default would have extreme adverse consequences for the Greek economy.

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