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Washington dictates EU energy policy

Europe finds itself torn between opposing ideologies

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The Nord Stream 2 pipeline project is clearly showing itself to be one of the most polarizing issues in European political circles, and demonstrates in a very clear manner how foreign policy is perceived by European states. Some are able to forego certain aspects of their political hostility towards Russia in areas where insisting upon it would result in considerable damage to their own economic outlook, where others persist in their political russophobia regardless of the consequences. A former Turkish diplomat and finance and energy geopolitical expert discusses this subject with Sputnik, as well as the influence being exerted by Washington on the issue.

Sputnik reports:

Denmark has claimed that it can legally stop the Nord Stream 2 project if it chooses to. Mehmet Ogutcu, a former Turkish diplomat and expert in finance, energy and geopolitics and who now chairs the investment advisory group Global Resources Partnership, as well as the Bosphorus Energy Club, has given his take on the prospects of the project.

Mehmet Ogutcu: This project is one of the most polarizing projects that the EU has ever discussed. I have no doubt that whatever the EU is doing right now, especially some factions within the EU, is politically motivated.

Mostly inspired by Washington, because the US is clearly against Nord Stream 2, for a couple of reasons; one being that they want to sell their over-priced LNG [Liquefied Natural Gas] across the Atlantic, which is not in the interests of the European Union; and the second one, it is often heard, that this project is going to increase the EU’s dependence on Russia, which is around 30 percent overall, as for Germany it’s about 40 percent.

These concerns are leading to confusion within the European Union, and I don’t think it is only the legal arguments that the European Commission is putting forward. And it’s really motivated by political imperatives, especially the US threat with sanctions on European companies, as it does also not only in the case of Russia, but Iran, starting from November 4.

There is a very clear push for banning Iranian crude exports. It’s part of a concerted effort from Washington to penalize countries which are not in line with US interests.

Sputnik: Denmark has recently withheld from granting permission for the implementation of the project. Several European politicians have stated that Europe no longer has hard legal leverage to halt the project. What’s your feeling regarding that matter?

Mehmet Ogutcu: Denmark is the last string among all other countries, so it has already passed through Finland, Sweden, so Denmark is the last one. I think again here, the US probably has used its influence to block this project, which has already left it almost 5 billion euros, almost half of the whole investment foreseen for the project.

I believe that the pressure is real, coming from Washington, and also the concern among Central European countries, some of them at least, is very real; with increasing dependence on Russia and the fear that Russia might be using the pipeline as leverage in its relationships with these countries.

And the fate of the existing Ukrainian gas transit route arrangement, which will expire in 2019, as you know, at the end of the year, when also Nord Stream 2 is expected to come on stream – that’s another serious concern, because when you look at it from outside, objective thinking requires that a route that is stable and direct without any transit country, should be preferable to Ukraine, where we know what difficulties are, in terms of transparency, in terms of political difficulties and additional costs. However, in this project, Nord Stream 2, we cannot look at it only from the commercial, rational [perspective].

There are very strong geopolitical imperatives that we have to bear in mind. Also, you have to think of Nord Stream 2, not in isolation from the TurkStream Project, which is going ahead full speed in the Black Sea coming to Turkey.

I think everything is on schedule for bringing Russian gas to the Turkish Thrace, there are two strings there as well; altogether we have about 31 bcm [billion cubic meters] of gas coming. Part of it will stay in Turkey and part, especially from the second pipeline, will go to South and South Eastern Europe.

Again, when you discuss Nord Stream 2, you have to see it in the broader context of other Russian projects coming also through Turkey. We have to understand different dimensions in this project.

As it stands, I don’t think we can say that Danish concerns or Eastern and Central European concerns can easily be done away. The US, through the trade wars that we saw the Trump administration start, through sanctions towards Iran, China, Russia are real, I don’t think they’re going to go away. But this might lead to some modifications of the dates and approach of Nord Stream 2, as well as Turkish Stream I think; although the first stream has been completed, there is concern whether US sanctions will also be felt there.

Following America’s withdrawal from the nuclear nonproliferation agreement with Iran (JCPOA), reactions from European leaders were like that of a pendulum swinging back from its prior orientation. French President Emmanuel Macron was quoted as saying “If we accept that other major powers, including allies… put themselves in a situation to decide our diplomacy, security for us, and sometimes even make us run the worst risks, then we are not more sovereign and we cannot be more credible to public opinion.”  However, the Nord Stream 2 project demonstrates that this sentiment is not universal across Europe.

The pipeline would bring Russian gas to Europe, but is perceived as an ‘energy weapon’ wielded by Russia in order to exert its control by Eastern European nations Lithuania, Moldova, Ukraine, and Georgia. The perception from the political perspective of these countries is that there is a growing ‘Russian threat‘ that must be contained, and in terms of the Nord Stream 2 project, this means that it must be countered. For this reason, political leaders from these four countries have travelled to Washington, in hopes that they can lobby American politicians to exert their influence to help stop the Russian energy project:

InsideSources reports:

Russian revanchism is a repeated concern for the governments of many of the Central and Eastern European states. For these countries, membership in western organizations including the European Union and NATO offers economic benefits, but comes with the risk that moving too far away from alliance with Russia will provoke some sort of aggressive response from the government of Vladimir Putin. On Wednesday, leaders from Lithuania, Ukraine, Georgia, and Moldova spoke to reporters and lawmakers at an event hosted by the American Foreign Policy Council, emphasizing the role that European energy security plays in global security and reiterating the need to both stop the Nord Stream 2 project and to promote the use of American energy and technology.

“Putin’s action is not limited to his aggression or use of military force. Russia’s sophisticated use of information warfare including cyberattacks is well know. Vladimir Putin also uses Russia’s energy supplies as a weapon against neighboring states. Nord Stream 2 is a political project that will increase Europe’s reliance on Russia,” said American Foreign Policy Council President Herman Pirchner.

The Nord Stream 2 pipeline is a proposed project that would bring natural gas from Russia through the EU to Germany. For the countries whose leaders spoke on Wednesday, the pipeline is far more than an infrastructure project. Construction of the pipeline would provide Russia with additional leverage over European countries, they warned.

“Nord Stream 2 is one of the elements of energy weapons used by Russia against the world,” said Ukrainian parliamentary chairman Andriy Parubiy, who spoke through an interpreter.

The importance of energy security is not lost on Ukraine, where Russia has used its control over the energy markets to enact political concessions. On two occasions in recent memory, Russia halted gas shipments to Ukraine in the middle of a winter cold snap until the government there agreed to price increases and political concessions.

“Ukraine knows for sure that gas supplies, for Russia, are not about the economy. For Russia natural gas, first of all, is a mechanism for political influence,” Parubiy continued.

While some analysts have questioned America’s involvement in the region, saying that it has provoked Russian revanchism, the leaders repeatedly expressed their desire to work with both the U.S. government and American businesses to expand their sources of energy. Allowing Russia to have a monopoly over energy supplies gives the Russian government a worrying amount of control over neighboring countries, the leaders emphasized.

“Nord Stream 2 is a political, not an economic, project,” said Lithuanian Speaker of the Seimas Viktoras Pranckietis.

For Lithuania, constructing a gas terminal which allows it to recieve gas shipments from overseas was an important step in reducing its dependence on Gazprom and Russian energy. After completion of the terminal, natural gas prices fell by 30 percent. Last year, Lithuania received shipments of American natural gas for the first time, a sign that its dependence on Russian energy was further weakening.

When possible, Lithuania, Moldova, Ukraine, and Georgia are looking for ways to become energy secure through the development of domestic energy sources or through trade with neighboring countries. This offers an opportunity for American businesses, many of which have the technical expertise these countries need.

“It is very important that U.S. business comes to this part of the world,” said Pranckietis.

The Moldovan government agreed.

“In order to have independence, we look for solutions and we found a solution. Now we are starting the process of building a gas pipeline between Romania and Moldova, because Romania in three years will have enough gas to cover their needs and our needs,” said Andrian Candu, chairman of the Moldovan parliament.

The countries see energy security as a vital part of their independence and warn that construction of Nord Stream 2 provides Russia with additional money to fund expansionist actions abroad, while spreading corruption in Europe. The pipeline still awaits approval in Europe and the speakers urged the American government to throw its influence against the project.

“Mark my words, Nord Stream 2 will be stopped,” said Parubiy with confidence.

Washington already has incentive to stop the project, both to secure a market for American shale gas, which is significantly more expensive for the Europeans than the Russian gas, as well as to counteract a major Russian energy programme, thereby countering Russian influence in Europe as well as to nix a plan that might be beneficial for the Russian economy as well as for European-Russian relations. Hence, while some European powers are looking to partner with Russia on some key issues, such as the JCPOA and the Nord Stream 2, others are looking for ways to participate in Washington’s plan of Russian containment.

Of course, the excuses being promoted are not quite as sensical in the present political environment, objectively speaking, as Europe finds itself under economic threat not from the Russians, but from the Americans, who are attempting to dictate to them their foreign policy, security, trade, and energy interests under threat of sanctions and a budding trade war. This rift in energy policy in some ways mirrors the division on Europe’s migration policy, with some nations agreeing to take in migrants while others outright refuse, with some EU member states investing in Russian energy programs while others intend to buck it, with all the help from Washington that they can muster. It would appear, then, that all of this talk about ‘an economy of trust‘ and Macron’s words about European sovereignty are falling on deaf ears among some European partners.

 

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Red Pilled ThoughtCrimes
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Red Pilled ThoughtCrimes

US wants EU to buy qatar LNG

John Mason
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John Mason

Don’t understand why Russia even bothers with the Europeans, let them have US oil and gas at exorbitant prices, genetically modified foods, herbicides and pesticides destroying the environment and unfair trade deals. What Russia should be doing is sanctioning the EU if everything and ordering NATO to retreat to pre- Warsaw Pact or Russia will start by annihilating the US.

my2Cents
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This is not between Russia and the EU. It is between Washington and the EU. Russia is fully aware of that.

Nord Stream 2 will not be stopped.

John Burns
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Baltic governments licking the fingers of America in the hope of gaining favours from the dying empire. When did Russia attempt to exert power in Europe via its gas “lever?” I seem to recollect Ukraine holding back payment for gas received on at least two occasions and getting discounts to carry them through.

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French opposition rejects Macron’s concessions to Yellow Vests, some demand ‘citizen revolution’

Mélenchon: “I believe that Act 5 of the citizen revolution in our country will be a moment of great mobilization.”

RT

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Macron’s concessions to the Yellow Vests has failed to appease protesters and opposition politicians, such as Jean-Luc Mélenchon, who called for “citizen’s revolution” to continue until a fair distribution of wealth is achieved.

Immediately after French President Macron declared a “social and economic state of emergency” in response to large-scale protests by members of the Yellow Vest movement, promising a range of concessions to address their grievances, left-wing opposition politician Mélenchon called on the grassroots campaign to continue their revolution next Saturday.

I believe that Act 5 of the citizen revolution in our country will be a moment of great mobilization.

Macron’s promise of a €100 minimum wage increase, tax-free overtime pay and end-of-year bonuses, Mélenchon argued, will not affect any “considerable part” of the French population. Yet the leader of La France Insoumise stressed that the “decision” to rise up rests with “those who are in action.”

“We expect a real redistribution of wealth,” Benoît Hamon, a former presidential candidate and the founder of the Mouvement Génération, told BFM TV, accusing Macron’s package of measures that benefit the rich.

The Socialist Party’s first secretary, Olivier Faure, also slammed Macron’s financial concessions to struggling workers, noting that his general “course has not changed.”

Although welcoming certain tax measures, Marine Le Pen, president of the National Rally (previously National Front), accused the president’s “model” of governance based on “wild globalization, financialization of the economy, unfair competition,” of failing to address the social and cultural consequences of the Yellow Vest movement.

Macron’s speech was a “great comedy,”according to Debout la France chairman, Nicolas Dupont-Aignan, who accused the French President of “hypocrisy.”

Yet many found Melanchon’s calls to rise up against the government unreasonable, accusing the 67-year-old opposition politician of being an “opportunist” and “populist,” who is trying to hijack the social protest movement for his own gain.

Furthermore, some 54 percent of French believe the Yellow Vests achieved their goals and want rallies to stop, OpinionWay survey showed. While half of the survey respondents considered Macron’s anti-crisis measures unconvincing, another 49 percent found the president to be successful in addressing the demands of the protesters. Some 68 percent of those polled following Macron’s speech on Monday especially welcomed the increase in the minimum wage, while 78 percent favored tax cuts.

The Yellow Vest protests against pension cuts and fuel tax hikes last month were organized and kept strong via social media, without help from France’s powerful labor unions or official political parties. Some noted that such a mass mobilization of all levels of society managed to achieve unprecedented concessions from the government, which the unions failed to negotiate over the last three decades.

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Soros Mimics Hitler’s Bankers: Will Burden Europeans With Debt To ‘Save’ Them

George Soros is dissatisfied with the current EU refugee policy because it is still based on quotas.

The Duran

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Via GEFIRA:


After the Second World War, many economists racked their brains to answer the question of how Hitler managed to finance his armament, boost the economy and reduce unemployment.

Today his trick is well known. The economic miracle of Führer’s time became possible thanks to the so-called Mefo promissory notes.

The notes were the idea of the then President of the Reichsbank, Hjalmar Schacht, and served not only to finance the armament of the Wehrmacht for the Second World War, but also to create state jobs, which would otherwise not have been possible through the normal use of the money and capital markets, i.e. the annual increase in savings in Germany.

The Reich thus financed the armaments industry by accepting notes issued by the dummy company Metallurgische Forschungsgesellschaft GmbH (hence the name Mefo) rather than paying them in cash. The creation of money was in full swing from 1934 to 1938 – the total amount of notes issued at that time was 12 billion marks. The Reichsbank declared to the German banks that it was prepared to rediscount the Mefo notes, thus enabling the banks to discount them.

Because of their five-year term, the redemption of notes had to begin in 1939 at the latest. This threatened with enormous inflation. Since Schacht saw this as a threat to the Reichsmark, he expressed his doubts about the Reich Minister of Finance. But it did not help, and Schacht was quickly replaced by Economics Minister Walther Funk, who declared that the Reich would not redeem the Mefo notes, but would give Reich bonds to the Reichsbank in exchange. At the time of Funk, the autonomous Reichsbank statute was abolished, the Reichsbank was nationalized, and inflation exploded in such a way that Mefo notes with a circulation of 60 billion Reichsmark burdened the budget in post-war Germany.

George Soros also proposes such a money flurry in the style of Schacht and Funk.

Soros is dissatisfied with the current EU refugee policy because it is still based on quotas. He calls on the EU heads of state and governments to effectively deal with the migrant crisis through money flooding, which he calls “surge funding”.

“This would help to keep the influx of refugees at a level that Europe can absorb.”

Can absorb? Soros would be satisfied with the reception of 300,000 to 500,000 migrants per year. However, he is aware that the costs of his ethnic exchange plan are not financially feasible. In addition to the already enormous costs caused by migrants already in Europe, such a large number of new arrivals would add billions each year.

Soros calculates it at 30 billion euros a year, but argues that it would be worth it because “there is a real threat that the refugee crisis could cause the collapse of Europe’s Schengen system of open internal borders among twenty-six European states,” which would cost the EU between 47 and 100 billion euros in GDP losses.

Soros thus sees the financing of migrants and also of non-European countries that primarily receive migrants (which he also advocates) as a win-win relationship. He calls for the introduction of a new tax for the refugee crisis in the member states, including a financial transaction tax, an increase in VAT and the establishment of refugee funds. Soros knows, however, that such measures would not be accepted in the EU countries, so he proposes a different solution, which does not require a vote in the sovereign countries.

The new EU debt should be made by the EU taking advantage of its largely unused AAA credit status and issuing long-term bonds, which would boost the European economy. The funds could come from the European Stability Mechanism and the EU balance of payments support institution.

 “Both also have very similar institutional structures, and they are both backed entirely by the EU budget—and therefore do not require national guarantees or national parliamentary approval.“

In this way, the ESM and the BoPA (Balance of Payments Assistance Facility) would become the new Mefo’s that could issue bills of exchange, perhaps even cheques for Turks, Soros NGOs. Soros calculates that both institutions have a credit capacity of 60 billion, which should only increase as Portugal, Ireland and Greece repay each year the loans they received during the euro crisis. According to Soros, the old debts should be used to finance the new ones in such a way that it officially does not burden the budget in any of the EU Member States. The financial institutions that are to carry out this debt fraud must extend (indeed – cancel) their status, as the leader of the refugees expressed such a wish in his speech.

That Soros is striving to replace the indigenous European population with new arrivals from Africa and Asia is clear to anyone who observes its activities in Europe. The question is: what does he want to do this for and who is the real ruler, behind him, the real leader?

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The French People Feel Screwed

For the first time in his presidency, Macron is in trouble and Europe and America are looking on.

The Duran

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Authored by David Brown via The Gatestone Institute:


On December 4, French Prime Minister Édouard Phillipe told deputies of the ruling party, “La République en Marche”, that a proposed fuel tax rise, which had led to the largest protests France has seen in decades, would be suspended.

The protesters, called Gilets-Jaunes — “Yellow Vests,” because of the vests drivers are obliged by the government to carry in their vehicles in the event of a roadside breakdown — say that the fuel tax was the last straw from a president who took office with a promise to help the economically left-behind but instead has favoured the rich.

Even by French standards, the protests of the “Yellow Vests” during the weekend of December 1 were startling. Burning cars and vast plumes of grey smoke seemed to engulf the Arc De Triomphe as if Paris were at war. Comparisons were drawn with the Bread Wars of the 17th Century and the spirit of the Revolution of the 18th Century.

For more than two weeks, the “Yellow Vests” disrupted France. They paralyzed highways and forced roads to close — causing shortages across the country – and blocked fuel stations from Lille in the North to Marseilles in the South.

During protests in France’s capital, Paris, the “Yellow Vests” were soon joined by a more violent element, who began torching cars, smashing windows and looting stores. 133 were injured, 412 were arrested and more than 10,000 tear gas and stun grenades were fired.

One elderly lady was killed when she was struck by a stray grenade as she tried to shutter her windows against the melee.

There was talk of imposing a State of Emergency.

The “Yellow Vests” present the most significant opposition French President Emmanuel Macron has faced since coming to office in May 2017. Unlike previous protests in France, which have divided public opinion, these have widespread support – 72% according to a Harris Interactive Poll published December 1st.

Fuel tax rises — announced in November before being retracted on December — were intended to help bring down France’s carbon emissions by curbing the use of cars. Macron makes no secret of his wish to be seen as a global leader for environmental reform.

He forgets that back at home, among the people who elected him, fuel prices really matter to those outside big cities, where four-fifths of commuters drive to work and a third of them cover more than 30km each week.

The increases have incensed people in smaller communities, where they have already seen speed limits reduced to please the Greens and cuts to the local transport services.

These additional costs-of-living increases come at an extremely bad time for ordinary French people working outside of Paris. Lower-middle class families are not poor enough to receive welfare benefits but have seen their income flat-line whilst cost-of-living and taxes have risen.

An analysis by the Institut des Politiques Publiques think-tank shows that benefits cuts and tax changes in 2018 and 2019 will leave pensioners and the bottom fifth of households worse off, while the abolition of the wealth tax means that by far the biggest gains will go to the top 1%

This is tough to swallow. Macron is seen as being out of touch with ordinary people and is unlikely to escape his new title, “the President of the Rich.”

“People have this feeling that the Paris technocrats are doing complicated things to screw them,” said Charles Wyplosz, an economics professor at the Graduate Institute of International and Development Studies in Geneva.

It is probably not as complex as that. The French people feel screwed.

As employment and growth are slowing, Macron, for the first time in his presidency, is under serious pressure. Unemployment is at 9%; his efforts to reform Europe are stalling, and his approval rating has plummeted to just 23% according to a recent opinion poll by IFOP.

Images of Macron at the Arc De Triomphe daubed in graffiti calling for him to step down, or worse, have done little to bolster his image abroad.

So far, Macron had said he would not bow to street protests. To underline his point, in September 2017, he called protestors against French labour-market reform “slackers”.

The political U-Turn on the fuel tax is a turning point for the Macron presidency. The question is : What next, both for Macron and the “Yellow Vests”?

Macron most likely needs to plough ahead with his reform agenda, and doubtless knows he has the support of a solid majority in the National Assembly to do so. France is crippled by debt (nearly 100% of GDP) and its grossly bloated public sector. There are 5.2 million civil servants in France, and their number has increased by 36% since 1983. These represent 22% of the workforce compared to an OCDE average of 15%.

Tax-expert Jean-Philippe Delsol says France has 1.5 million too many “fonctionnaires [officials]. When you consider that public spending in France now accounts for 57 per cent of gross domestic product. Soon the system will no longer function as there will be less and less people working to support more and more people working less”.

Macron’s mistake, in addition to a seeming inclination for arrogance, is not to have made national economic reform his absolute priority right from his initial grace period after his election. Lower public expenses would have made it possible to lower taxes, hence creating what economists call a virtuous circle. Instead, he waited.

Now, at a time when he is deeply unpopular and social unrest is in full sway he is looking to make further reforms in unemployment benefits, scaling them back by reducing the payments and the length of time beneficiaries can receive the money. The “President of the Rich” strikes again.

There is talk that he may also re-introduce the wealth tax to try to placate the protestors.

Macron’s presidential term lasts until May 13, 2022. Understandably, Macron will be focused on the elections to the European Parliament expected to be held May 23-26, 2019. Headlines have signalled that Marine Le Pen and the National Rally (formally National Front) are ahead in the polls at 20%, compared to Macron’s En Marche at 19%.

The shift is understandable, given the divide between the countryside, where Le Pen has solid support, and the cities, where Macron’s centre-left prevail.

In contrast, the “Yellow Vests” have galvanised support after standing up for the “impotent ordinary”, and seem much buoyed by the solidarity they have been shown by both fire fighters and the police. There are images online of police removing their helmets and firefighters turning their backs on political authority to show their support for the protestors.

Whilst Macron’s political opposition may be fragmented, this new breed of coherent public opposition is something new. Leaderless, unstructured and organised online, the “Yellow Vests” have gained support from the left and right, yet resisted subjugation by either.

Being leaderless makes them difficult to negotiate withor to reason with in private. The “Yellow Vests” seem acutely aware of this strength, given their firm rebuttal of overtures for peace talks from the Macron government.

Enjoying huge support from the public and with reforms to the social welfare system on the horizon, the “Yellow Vests” are not going away.

For the first time in his Presidency, Macron is in trouble and Europe and America are looking on.

After Macron rebuked nationalism during his speech at the armistice ceremony, Trump was quick to remind the French President of his low approval rating and unemployment rate near 10%. A stinging broadside from Trump on twitter suggests that Macron may well be relegated to Trump’s list of global “Losers“:

“Emmanuel Macron suggests building its own army to protect Europe against the U.S., China and Russia. But it was Germany in World Wars One & Two – How did that work out for France? They were starting to learn German in Paris before the U.S. came along. Pay for NATO or not!”

The “impotent ordinary” in the United Kingdom, who might feel betrayed over Brexit, and the nationalists in Germany, who have suffered under Merkel , are no doubt staring in wonder at the “Yellow Vests”, wishing for the same moxie.

The historian Thomas Carlyle, chronicler of the French Revolution, said the French were unrivaled practitioners in the “art of insurrection”, and characterised the French mob as the “liveliest phenomena of our world”.

Mobs in other countries, by comparison, he argued were “dull masses” lacking audacity and inventiveness. The blazing yellow vests of the French protest movement , however, have made Macron appear increasingly dull and weak too.

David Brown is based in the United Kingdom.

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