A Must Read article in The American Interest by A. Wess Mitchell, President of the Center for European Policy Analysis (CEPA) in Washington DC and Jan Havranek, Director of the Defense Policy and Strategy Division at the Czech Ministry of Defense, who writes in his personal capacity.
Although the piece is specifically addressed to US readers and calls for more American leadership, European students of history (of all ages) should read it, including those government officials and politicians in Germany and elsewhere who claim to think beyond the next four years.
Continue reading "Why Central Europe Needs Atlanticism Now"
"In short, it isn't just Atlanticism that is in crisis; it is the entire paradigm of post-Cold War Europe. The fact that Central European countries are less Atlanticist has not necessarily made them more Europeanist. On the new European map, economic power resides in the east-central core of the continent, in the nexus of overlapping geopolitical and economic interests between Germany and the states of the Baltic-to-Black Sea corridor. This configuration resembles the Mitteleuropa of Bismarck, stripped of its Prussian military overtones, more than it does the federative European vision of Monnet and Schuman, or the Atlanticist vision of Asmus and Vondra. (...)
The rising economies in Asia and South America have been hyped for many years in the US and European media. Now, finally, there is a renewed focus on transatlantic free trade because the United States and the European Union "remain the anchor of the global economy. Together, they produce more than 50 percent of the world's gross domestic product and account for almost 30 percent of global trade. Europe buys three times more U.S. products than China, and European investment in California alone is greater than all U.S. investment in China and Japan put together."
Stuart E. Eizenstat, a former deputy secretary of the Treasury, and Daniel S. Hamilton of Johns Hopkins University, describe how the new Trans-Atlantic Partnership could look like:
Continue reading "The Next Big Transatlantic Project: A Free Trade Area Plus"
"Germany has become a key arms supplier in the Middle East despite stringent export controls that have inhibited weapons sales in the past," writes UPI (via SeidlersSiPo) in a good summary of recent sales. In the current conflict in Libya, weapons manufactured by German defense companies are being used by both sides:
Continue reading "Shame on us: Germany Boosts Arms Sales to Mideast"
Libyan leader Moammar Gadhafi's forces use tank transporters built by Mercedes Benz, German-made electronic jamming systems and Milan-3 surface-to-air missiles made by the French-German MBDA company. NATO forces employ the twin-engined Eurofighters for their air campaign against Gadhafi's beleaguered regime.
Since it is Easter, CNN writes this:
Continue reading "Kinder Surprise Eggs Banned in the United States"
Kinder Eggs, a popular European chocolate egg that contains a toy inside, is banned from importation into the United States because it contains a "non-nutritive object embedded in it."
With the Easter holiday around the corner, the agency issued the reminder this week, warning that the candy is considered unsafe for children under 3. Last year, Customs and Border Protection seized 25,000 of them in 1,700 incidents.
This is a guest blog post by Donald Stadler, an American living and working in London:
Washington Post economics columnist Robert Samuelson recently wrote a piece about the trade impact of the oil shock on the US, quoting economist Jeffrey Rubin of CIBC World Markets, who predicts that oil will go to $225 a barrel/$7 a gallon before this is finished.
Apart from the obvious impact on per-liter fuel prices in Europe (I have heard of diesel prices as high as £1.99 a litre in the UK), there are some interesting side effects on world trade.
The bottom line is that shipping cheap manufactures thousands of miles make much less sense than it has this past decade. Since 2000 the cost of shipping a 40 foot shipping container from East Asia to the US has gone from $3000 to $8000, and if oil prices go to $200 a barrel this will go to $15,000 per container.
Some production will be brought back to the US and Europe, and other production will go from Asia to nearby low-wage countries like Mexico (for the US) and Poland/Bulgaria/Romania, and perhaps Russia and Turkey (for the EU). This may be good news for factory workers in Italy and in depressed areas of Germany and the UK.
Continue reading "The Impact of the Oil Shock: Trade Networks Shrink"