Former European Central Bank chief and Italian prime minister Mario Draghi presented a report at a news conference in Brussels on Monday, titled "The Future of European Competitiveness." In the report, he calls for EU to "radically change." However, is the "prescription," offered by Draghi amid the EU's extreme anxiety over declining competitiveness, really what Europe needs?

The report's main concern is Europe's declining competitiveness. Europe is facing an unprecedented dilemma now, with sluggish economic growth, declining industrial competitiveness, high unemployment, and low business confidence. As a result, Europe has begun to explore various "prescriptions" for its challenges.

In the 69-page "Draghi's Report," China is mentioned in 25 pages. The report points out that "the EU's competitiveness is currently being squeezed from two sides. On the one side, EU companies are facing weaker foreign demand - especially from China - and rising competitive pressures from Chinese companies." In April, Draghi specifically condemned China for "threatening to undercut" Europe's industrial base by "attempting to capture and internalize all parts of the supply chain in green and advanced technologies."

"Draghi's Report" reflects Europe's overall anxiety. Understandably, Europe is seeking a way out of its current predicament. However, this solution should not involve position China as a target obstructing European development, nor should it come at the expense of China-EU relations. If the EU resorts to such an approach, it would not only fail to help Europe overcome its challenges but could even exacerbate its problems.

Europe's current economic difficulties reveal deep-seated structural defects. In the face of intense market competition, European companies are struggling to transform and adapt to new economic and technological developments, putting them at a distinct disadvantage in the global market. In this context, as China has made significant strides in emerging fields like renewable energy, some European viewpoints, with added pressure from the US, perceive the normal market relationship with China as excessive dependency and risk.

However, this perspective not only obscures Europe's own problems but also conflates competitiveness issues with complex geopolitical games, deepening Europe's economic predicament.

As a matter of fact, China and Europe share deep mutual interests in economic and trade relations, global governance, and politics. Despite their differences, the China-EU relationship enjoys strong endogenous driving force and bright prospects of development. The essence of China-EU cooperation lies in complementary advantages and mutual benefits. China can support Europe in the development of new energy, helping address the bottlenecks Europe faces. 

The decline in competitiveness acts like an invisible net, making it difficult for Europe to compete globally. The more anxious Europe becomes, the more clear-minded it should strive to maintain. A simplistic pursuit of protectionism, as the US and EU are currently doing, cannot address the fundamental, deep-seated issues facing Europe. The EU should resolve trade frictions with China through dialogue and consultation, taking into account each other's legitimate concerns, while avoiding retaliatory trade conflicts and preventing a lose-lose situation. Only by doing so can the EU enhance its competitiveness. Europe's "prescription" should not focus on exaggerating how China has "squeezed" Europe's survival space; instead, it should concentrate on fixing its own structural defects.

https://www.globaltimes.cn/page/202409/1319608.shtml

 

 

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Despite a drastic reduction in EU gas imports from Russia, member states still rely heavily on on the country's supplies, European Commissioner for Energy Kadri Simson admitted to journalists on Wednesday.

Russian gas accounted for 18% of the EU’s imports as of June 2024, according to the European Commission’s latest report, which notes that Russian supplies accounted for 45% three years ago. The report added that imports from Norway and the US have increased.

“I know the numbers are still impressive, although they have fallen from 45% in 2021,” the energy commissioner said during a press conference in Brussels, as quoted by TASS.

According to Simson, EU member states are well prepared for a complete halt of Russian gas transit via Ukraine after the current agreement expires at the end of 2024.

Brokered by the EU, the five-year deal between Kiev and Moscow provides for Russian energy giant Gazprom to transit 65 billion cubic meters (bcm) of gas through Ukraine in 2020, and 40 bcm annually from 2021 to 2024. Earlier this year, Ukrainian leader Vladimir Zelensky said Kiev would not extend the gas transit agreement after it expires on December 31.

"Referring to the lessons we’ve learned and considering the strengthened security of supply system, the EU is well prepared for next winter and the end of the gas transit agreement between Russia and Ukraine,” Simson said, emphasizing that the bloc “is ready to live” without this agreement thanks to alternative routes and sources of supplies.

EU companies can still legally purchase Russian gas, and will continue to do so until sanctions prohibit it, she noted, adding that Brussels should adhere to the sanctions policy against Moscow to support Ukraine.

Ukraine-related sanctions introduced by the EU against Russia have not targeted pipeline gas supplies, but many members, including Poland, Bulgaria, Finland, the Netherlands, and Denmark, have halted their imports voluntarily. However, several EU nations, including Austria, Slovakia, the Czech Republic, and Italy are still importing Russian pipeline gas.

 

https://www.rt.com/business/603860-eu-reliance-russian-gas-supplies/

 

 

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WARSAW, Poland (AP) — The German government says it is cracking down on irregular migration and crime following recent extremist attacks, and plans to extend temporary border controls to all nine of its frontiers next week.

Last month, a deadly knife attack by a Syrian asylum-seeker in Soligen killed three people. The perpetrator claimed to be inspired by the Islamic State group. In June, a knife attack by an Afghan immigrant left a police officer dead and four other people wounded.

The border closures are set to last six months and are threatening to test European unity. Most of Germany’s neighbors are fellow members of the European Union, a 27-country bloc based on the principles of free trade and travel. And Germany — the EU’s economic motor in the heart of Europe — shares more borders with other countries than any other member state.

The Polish prime minister on Tuesday denounced the closures as “unacceptable” and Austria said it won’t accept migrants rejected by Germany.

Here’s a look at some of the issues:

How do Europeans travel currently? 

The EU bloc has a visa-free travel area known as Schengen that allows citizens of most EU countries to travel easily across borders for work and pleasure. Iceland, Liechtenstein, Norway and Switzerland also belong to Schengen even though they are not EU members.

According to the EU, member states are allowed to temporarily reintroduce controls at the EU’s so-called internal borders in case of a serious threat, such as one to internal security. But it also says border controls should be applied as a last resort in exceptional situations, and must be time-limited.

 

Such limitations are often put in place during major sporting events, including the recent Olympic Games in Paris and the European soccer championship this summer.

What’s Germany doing now?

Nine countries border Germany and all are part of Schengen. Germany already imposed restrictions last year at its borders with Poland, the Czech Republic, Austria and Switzerland.

Germany’s Interior Ministry on Monday ordered the extension of checks at those borders, as well as controls at borders with France, Luxembourg, the Netherlands, Belgium and Denmark.

Interior Minister Nancy Faeser said the aim was to limit irregular migration and protect the nation from “the acute dangers posed by Islamist terrorism and serious crime.”

Growing backlash against migration

The government and many Germans welcomed refugees fleeing conflicts in Syria and elsewhere from 2015-16, when more than 1 million asylum-seekers entered the country.

But as large-scale migration to Europe continues nearly a decade later, a backlash is fueling the growth of far-right parties.

Some people say social services are overwhelmed, and extremist attacks by asylum-seekers have led to security fears. It has added up to growing support for firmer immigration policies — and in some cases, backing for the far-right parties that champion such limits.

The unpopular coalition government of Chancellor Olaf Scholz is trying to crack down on irregular immigration after the far right did well in two recent state elections in eastern Germany. Another comes Sept. 22 in Brandenburg, the state surrounding Berlin.

Economic worries

As the EU’s largest economy, Germany is a key trading partner for neighbors. The interior ministry’s announcement has prompted economic worries for the main Dutch transportation lobby group, the Dutch Association for Transport and Logistics. It said the decision was undermining the Schengen principle of free trade and it fears major economic damage.

At home, Germany’s DSLV logistics and freight association urged a selective approach that would spare trucks moving goods across borders — which would mirror what occurred during the European soccer championships. Those checks avoided economic disruptions because officials focused on individuals and not trucks, the association said.

Dirk Jandura, the president of the Federation of German Wholesale, Foreign Trade and Services, said in an statement to The Associated Press that restrictions on the free movement of people “always mean delays and thus cost increases for the economy and especially for wholesale and foreign trade.”

He added: “However, if migration policy findings require restrictive measures, then this is understandable. For us, it is important to implement the measures with a sense of proportion.”

Political repercussions

The ruling conservative government in Austria — which is facing a tight race against the far-right party in an election this month — says it will not accept refugees who are turned back from Germany.

Interior Minister Gerhard Karner told reporters that Germany has the right to send people back if another EU country is responsible for their asylum application. But that would require a formal procedure and the consent of the member state concerned.

Meanwhile, Polish Prime Minister Donald Tusk called Germany’s plan “unacceptable” and called for urgent consultations by all countries affected. Poland has struggled with a migration crisis on its border with Belarus since 2021. Warsaw accuses Belarus and Russia of luring migrants from the Middle East and Africa there to destabilize the West.

Agnieszka Łada-Konefał, deputy director of the German Institute of Polish Affairs, said random checks at the German-Polish border create traffic jams that make it more difficult for people to cross for work and discourage Germans from shopping in Poland. Poles also argue that Germany first introduced a policy of openness to refugees but is now pushing them back to Poland.

“Due to the negative perception of the influx of migrants in Poland, any report of migrants being returned by Germany also negatively affects Polish-German relations and Germany’s image in Poland,” Łada-Konefał told the AP.

But in the Netherlands, where the anti-immigration Party for Freedom won last year’s election, the minister for asylum and migration pledged to step up Dutch border controls as well.

Slovenia, Austria and Italy also have extended temporary border controls in some areas or all along their frontiers.

___

Associated Press writers Mike Corder in Amsterdam, David McHugh in Frankfurt and Philipp Jenne in Vienna contributed to this report.

 

https://apnews.com/article/germany-borders-eu-migrants-a9d7a025bab08160c772b8644441c66b

 

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YOURDEMOCRACY.NET RECORDS HISTORY AS IT SHOULD BE — NOT AS THE WESTERN MEDIA WRONGLY REPORTS IT.