Nikolaj Nielsen | Brussels | May 23

euobserver - National Roma integration strategies submitted by member states to the European Commission fail to fully assess the needs of Europe's largest minority.

Speaking to reporters in Strasbourg on Wednesday (23 May), EU justice commissioner Viviane Reding said the desperate situation of Roma is "a wake-up call for leaders."

EU leaders in June 2011 had backed a European Commission plan to end the centuries-old exclusion of the continent's 10 to 12 million Roma minority. Most live in Bulgaria, followed by Slovakia, Romania and Hungary. Access to education, jobs, healthcare and housing are among the four policy priorities.

The interview was conducted by Martin Hesse and Thomas Schulz | May 24

Speigel Online - In a SPIEGEL interview, Nobel Prize-winning economist Paul Krugman argues that this is not the time to worry about debt and inflation. To save the euro zone, he argues that the European Central Bank should loosen monetary policy and the German government should abandon austerity.

London | May 24

AFP - A British stuntman became the world's first skydiver to land without a parachute on Wednesday, falling 731 metres (2,400 feet) to drop safely onto a crash-pad of cardboard boxes.

Wearing a specially-made "wing suit", Gary Connery leapt from a helicopter over Henley-on-Thames in southern England, aiming -- with his life hanging in the balance -- at a "runway" of 18,000 cardboard boxes.

After plunging at a speed of approximately 130 kilometres (80 miles) an hour the 41-year-old landed successfully onto the boxes, but the anxious crowd had to wait several minutes before he emerged from the pile.

Connery, who has appeared as a stuntman in films including "Harry Potter and the Chamber of Secrets" and the Bond movie "Die Another Day", said the experience had been "absolutely amazing".

"I'm in a strange space, if I'm totally honest," he told Sky News. "I guess I haven't digested what's just happened."

"(The landing) was so comfortable, so soft -- my calculations obviously worked out and I'm glad they did," he added.

The Guardian's Nick Hopkins reports that British defense chiefs are dusting off and updating contingency plans after being told by M.I.6 that there's still a "25-50% chance" that Israel will decide to attack Iran before the US elections in November, inevitably drawing in the US and UK.

Israel must weigh up whether President Obama is likely to take a harder line on pre-emptive action against Iran next year if he has won a second term.

"The Americans might hang out the Israelis to dry after the election, but not before," said a senior Whitehall source. "Obama would have to support Israel if there was an attack before November."

British contingency measures are mostly defensive: making sure British troops in Helmand, Afghanistan are properly prepared for the prospect of Iranian-sponsored attacks as well as by Talibanesque groups and moving UK minesweeping vessels to the Persian Gulf to help keep shipping lanes open if Iran mines the Strait. Hopkins reports that some cabinet ministers would strongly resist UK involvement in any missile or air strikes on Iran by the US if Israel does drag the allies into war. That resistance seems to extend into the British civil service and military establishments.

The Guardian has spoken to a number of Foreign Office and military officials in recent months, and all of them have expressed dread at the thought of a conflict with Iran.

One spoke of fear every time Obama and Cameron are left to discuss the issue and what may have been agreed. "We have our hearts in our mouth," said the source.

I wonder if US officials feel the same way? Probably.

I always find it both amusing and frustrating when American national security analysts decide they're going to pontificate on NATO and Europe. Try as they might, it seems impossible for them to see the issue in any other than a highly polarized, American exceptionalist, way. Take my friend Michael Cohen at the national Security Network, writing today:

the biggest problem with NATO funding (and this has been true for quite some time) is not that President Obama is undermining the alliance with defense cuts here at home, but rather that America's NATO allies refuse to fully pony up their share of NATO's defense budget. And why they should they? Indeed, as long as NATO funding is used as a political football then the United States will continue to be played for a sucker by the Europeans who know that for all our complaining about their lack of financial support for the military alliance . . . we're never going to pull the plug.

At some point, it's worth asking whether this makes any sense at all. Why should the US be responsible for underwriting European security (and in turn the European welfare state), especially when European countries face not a single legitimate military threat to their well-being? Moreover, it Europeans don't think it's important enough to spend their own money on their own security why should America? Now granted, the Europeans are a little short on cash these days, but then so is the United States. But of course as the House of Representatives reminded us recently - as they eviscerated key social safety net programs to restore cuts made to the defense budget -- you can't put a price tag on a huge American military that does little to keep America safe and underwrites the security of other countries.

In Romney's statement he noted "NATO is a testament to the fact that the price of weakness is always far greater than the price of strength." If anything it's increasingly becoming a testament to how divorced from reality our own national security debate has become. The new American weakness is apparently when you don't let key European allies take enough advantage of you.

Now there are exactly two unarguable facts in all that: that Europe refuses to pony up its share of the NATO budget and that European countries face not a single legitimate military threat to their well-being. Do you think the two might be connected?

Look, from a European point of view - and I don't mean the poodlish yes-men in London - the NATO budget may be agreed to by all parties but it is set to an American agenda and only agreed to after a lot of American arm-bending. It funds an organization which has outlived its original purpose, surviving now only to give a modicum of cover to American military adventurism - which is why the US will "never pull the plug". NATO only survives because the costs that would be imposed by America on any European nation who withdrew would be greater than the status quo.

It is ridiculous to suggest that European allies are "taking advantage" of the US or that the US is "underwriting European security" while admitting that there's no threat to Europe needing all that money spent on it. But Michael isn't the only smart American making the same logical mistake this week, to say nothing of what gets said by the not-so-smart hawks over on the Right.

P.S.: Is America sure it wants a well armed Europe? Remember the last time it was true? The US spent the next thirty years guaranteeing Europe's security partly so that Europe (Germany) wouldn't have to stand up seriously continental-sized armed forces itself. And if it does, why does it keep trying to put its own spanner in the works of a European Defense Force and other intra-European defense pacts?

John O'Brennan cuts to the heart of the Eurozone crisis, outlining the political consequences of issuing aloof, one-size-fits-all austerity requirements from afar:

The European crisis is as much a crisis of politics as economics. The current paralysis of the Greek political system demonstrates the point very clearly. EU policy has actively contributed to this crisis by effectively sealing off discussion of the political problems thrown up by austerity.

Budgetary policy is at the core of traditional democratic politics in Europe but the management of the euro zone is increasingly being effected not through democratic institutions but via a centralised and depoliticised form of technocratic fiat. The “stability” narrative has triumphed over the need for legitimacy as the crisis in Europe has deepened.

Ivan Krastev, the eminent political scientist, argues that we have now arrived at a point where national governments have politics but are no longer in control of policy, including budgetary policy, which is moving via the fiscal treaty and other measures to the EU level.

On the other side of this divide the European Union has policies but no politics, since decisions are increasingly being made by technocratic managers rather than directly elected representatives of the European public. The euro zone crisis has thus amplified an existing problem – the absence of both a European citizenry and a transparent European level political process.

The whole thing. Read.

h/t RCW.

Chicago | May 21

AFP - NATO leaders launched Sunday the first phase of a US-led missile shield for Europe and sought to appease Russian anger over the system by renewing an invitation to cooperate.

President Barack Obama and his allies declared an "interim capability" at a Chicago summit, putting a US warship carrying interceptors in the Mediterranean and a Turkey-based radar system under NATO command in a German base.

The alliance insists that the shield is not aimed at Russia and aims to knock out missiles that could be launched by enemies such as Iran, but Moscow fears the system will also serve to neutralize its nuclear deterrent.

"We have invited Russia to cooperate on missile defense and this invitation still stands," NATO Secretary General Anders Fogh Rasmussen told a news conference.

"We will continue our dialogue with Russia and I hope that at a certain stage Russia will realize that it is in our common interest to cooperate on missile defense," he said.

Besides the ironic title, I guess it explains why Putin refused to go to Chicago.

Aleksandar Vasovic & Matt Robinson | Belgrade | May 20

Reuters - * Pro-Western incumbent Tadic bidding for 5 more years
* Opposition alleges fraud, threatens street protests
* Low turnout favours opposition challenger Nikolic
* Economy stalling, unemployment at 24 percent

Voter apathy and accusations of fraud marred a presidential run-off in Serbia on Sunday, where pro-Western incumbent Boris Tadic is vying with rightist Tomislav Nikolic for the right to lead the nation into talks on joining the EU.

Seven hours after polls opened, just 23.2 percent of the 6.7 million Serbs eligible to vote had done so.

Tadic began the day as the frontrunner, but analysts have said a low turnout might favour Nikolic, whose supporters are considered more disciplined voters.

Twice elected president since 2004, Tadic, 54, was part of the reformist bloc that ousted strongman Slobodan Milosevic in 2000 after a decade of war and isolation during the collapse of Yugoslavia.

Under Tadic, Serbia in March became an official candidate for EU membership, but there is deep frustration among Serbs over the grinding transition from socialism to capitalism and an economic slowdown that has driven unemployment up to 24 percent.

Nikolic, 60, was an ultranationalist ally of Milosevic when Serbia was bombed by NATO in 1999. But, since losing to Tadic in 2008, he has tried to rebrand himself as a pro-European conservative, accusing his opponent of presiding over a creeping culture of elitism.

Berlin | May 19

AP - At least 20,000 people held a major rally of the local Occupy movement in Frankfurt on Saturday to decry austerity measures affecting much of Europe, the dominance of banks, and what they call untamed capitalism.

The protesters peacefully filled the city center of continental Europe's biggest financial hub on a warm and pleasant afternoon, said Frankfurt police spokesman Ruediger Regis. He said 20,000 people were there, while organizers put the number at 25,000.

The Guardian's Helena Smith talks to Greek leftist leader Alex Tsipras:

Tsipras, who turns 38 in July, wants me to know that the war is not personal. The enemy is not Berlin, until now the biggest provider of the monumental rescue funds keeping the debt-stricken economy afloat. "It is not between nations and peoples," he says. "On the one side there are workers and a majority of people and on the other are global capitalists, bankers, profiteers on stock exchanges, the big funds. It's a war between peoples and capitalism … and as in each war what happens on the frontline defines the battle. It will be decisive for the war elsewhere."

Greece, he says, has become a model for the rest of Europe because it was the first country to fall victim to the enforcement of hard-hitting "growth through austerity" policies pursued in the name of resolving the crisis.

"It was chosen as the experiment for the enforcement of neo-liberal shock [policies] and Greek people were the guinea pigs," he insists.

"If the experiment continues, it will be considered successful and the policies will be applied in other countries. That's why it is so important to stop the experiment. It will not just be a victory for Greece but for all of Europe."

Even the old capitalist robber-barons understood that the way to get wealthy was to create wealth for all while making sure you kept the lion's share. Neoliberal austerity policies are just asset stripping under a false banner.

Thomas K. Grose | London | May 18

National Geographic News - This summer at the largest urban mall in Europe, visitors may notice something different at their feet. Twenty bright green rubber tiles will adorn one of the outdoor walkways at the Westfield Stratford City Mall, which abuts the new Olympic stadium in east London.

The squares aren't just ornamental. They are designed to collect the kinetic energy created by the estimated 40 million pedestrians who will use that walkway in a year, generating several hundred kilowatt-hours of electricity from their footsteps. That's enough to power half the mall's outdoor lighting.

Frank Dohmen & Alexander Jung | May 19

Speigel Online - With the planned Nabucco natural gas pipeline in southern Europe hitting snag after snag, Russian natural gas giant Gazprom is considering the construction of a second Baltic Sea pipeline to go with the just-finished Nord Stream. With unconventional natural gas from the US flooding the market, however, the strategy is not without risk.

Conal Urquhart | May 19

The Guardian - German-Greek relations were further strained on Friday after the German chancellor, Angela Merkel, was heard advising Greece to hold a referendum on its membership of the euro.

Greek politicians reacted angrily, but Merkel's aides insisted she had not suggested a referendum during a telephone call on Friday with the Greek president, Karolos Papoulias.

The Greek government's spokesman, Dimitris Tsiodras, said: "[Merkel] relayed to the president thoughts about holding a referendum in parallel with the elections on the question whether Greek citizens wish to remain in the eurozone."

A German government spokesman rejected the idea that Merkel had proposed a referendum. "This is false and we completely dismiss this," he said.

Some commentators suggested that the misunderstanding was due to an error in translation. One said that Merkel had said that the 17 June elections in Greece would be like a referendum on the country's membership of the euro.

But Greek politicians criticised Merkel's perceived interference in Greek affairs.

Alexis Tsipras, the leader of the leftwing Syriza party that wants to renegotiate Greece's bailout by the EU and the IMF, said: "Ms Merkel is used to addressing Greece's political leaders as if the country was a protectorate."

Washington | May 19

AFP - France's President Francois Hollande used his White House debut on Friday to restate his intention to get French combat troops home from Afghanistan this year - breaking with NATO's 2014 schedule.

Hollande met President Barack Obama for the first time since taking office three days ago, ahead of a testing weekend of international summits, with G8 leaders at Camp David and NATO chiefs at a 61-nation gathering in Chicago.

"I recalled to President Obama that I had made a promise to withdraw our combat troops from Afghanistan at the end of 2012," Hollande said, as the two leaders spoke to reporters in the Oval Office.

"I also stipulated that there would still be support in another form," Hollande said, adding that the French withdrawal would be done in consultation with French allies in the International Security Assistance Force (ISAF).

Obama did not dispute Hollande's position, but stressed that NATO states must sustain their commitment to help "Afghans build security and continue down the path of development."

Washington is currently soliciting funding from its allies to ensure training and financing for Afghan armed forces after NATO combat troops leave - which it estimates could cost around $4 billion a year.

Apart from Afghanistan, both sides sought common ground, with Obama styling the partners as complimentary as cheeseburgers and French fries, though alarm over the euro zone tempered Hollande's visit.

James Gallagher | May 16

BBC - Thousands of heart attacks and strokes could be prevented if the cholesterol-lowering drugs, statins, were more widely prescribed, research suggests.

The study of 175,000 patients, in the Lancet, said even very low-risk patients benefited from the medication.

The Oxford researchers says the NHS should consider giving statins to healthy people. The NHS drugs watchdog, NICE, is reviewing the evidence.

Not sure exactly when I said it, but I did predict that Greece would exit the Euro. I also said that it should leave the Euro sooner, rather than later and do so on its own terms. Now elite opinion has decided it's okay for Greece to exit. Mostly because the neoliberals have already raped the economy there. You heard it here first.

Sandra Laville | May 15

The Guardian - Former News International chief executive, her husband and four others charged in phone-hacking inquiry

Rebekah Brooks, the former chief executive of News International, has been charged over allegations that she tried to conceal evidence from detectives investigating phone hacking and alleged bribes to public officials.

The Crown Prosecution Service (CPS) announced that Brooks, one of the most high-profile figures in the newspaper industry, would be charged with three counts of conspiracy to pervert the course of justice in July last year at the height of the police investigation. Scotland Yard later confirmed she had been charged along with her husband, Charlie Brooks, and four others.

Brooks is accused of conspiring with others, including her husband, a racehorse trainer and friend of the prime minister, and her personal assistant, to conceal material from detectives.

Brooks and her husband were informed of the charging decision – the first since the start of the Operation Weeting phone-hacking investigation last January – when they answered their bail at a police station in London on Tuesday morning.

Athens | May 15

AP - Greece will hold a new election in June after days of talks failed to resolve the country’s political deadlock, party leaders said Tuesday.

The Athens Stock Exchange plunged on the news, diving 4.86 percent minutes after the announcement before recovering somewhat.

The May 6 election left no party with enough votes for a majority in parliament and repeated efforts over nine days to cobble together a coalition government proved fruitless.

Alan Cowell & John F. Burns | London | May 15

NYT - Once among the most powerful figures in the British media, Rebekah Brooks, the former head of Rupert Murdoch’s British newspaper empire and a close friend of Prime Minister David Cameron, faced charges on Tuesday that she, her husband and four others conspired to pervert the course of justice in the hacking scandal that has burrowed into public life here.

It was the first time that charges have been formulated since the police reopened inquiries into the affair in January 2011. The accusations brought the scandal to a watershed between criminal investigations, which have resulted in around 50 people being arrested and then set free on bail, and the prospect of trial before robed High Court judges.

Howard Schneider & Anthony Faiola | May 14

WaPo - Political deadlock in Greece rattled world markets Monday, reviving fears that the fractious Mediterranean country could spurn an international bailout, abandon the common European currency and risk a fresh round of world economic turmoil.

European stock indexes fell, with Greece’s market now at a 20-year low, while the euro currency continued a recent decline against the dollar. U.S. stocks also fell.

Raphael Minder | Madrid | May 13

NYT - Tens of thousands of Spaniards took to the streets during the weekend to protest austerity budget cuts and commemorate the anniversary on Tuesday of a movement that inspired other groups on Wall Street and across the Western world.

Over all, protesters gathered in about 80 Spanish cities, but again, one of the biggest turnouts was in Puerta del Sol, the Madrid square that almost a year ago became the center of a nationwide, youth-led movement seeking to overhaul Spain’s political parties and other traditional institutions. About 40,000 people gathered in the square on Saturday evening, while a similar number of protesters rallied in a square in Barcelona.

Angela Merkel is a pleasant practitioner of the art of suffering. She loves to share the crackpot notion that belt-tightening in times of Depression represents sound policy. Reminds me of Krugman's statement of shock when, at a gathering of academic economists, he realized that about 1/2 of them knew little about John Manyard Keynes. Now Merkel is getting another message from the German public (this happened a few years ago but this is harsher).

Merkel's party humiliated by shock election defeat
German voters reject austerity programme in favour of pro-growth opposition in state poll Tony Paterson, May 14, Berlin The Independent

"Angela Merkel's ruling conservatives suffered a humiliating defeat in key elections in Germany's most populous state yesterday when voters rejected her party's austerity policies and handed a resounding victory to her pro-growth Social Democratic Party opponents.

"Ms Merkel's Christian Democrats were shell-shocked by the devastating result they returned in the poll in North Rhine Westphalia, which has a total population of 18 million. Exit polls showed that they secured a mere 25.5 per cent of the vote – their worst performance ever in the state.

From the Guardian's letters column:

The annual Sunday Times Rich List yields four very important conclusions for the governance of Britain (Report, Weekend, 28 April). It shows that the richest 1,000 persons, just 0.003% of the adult population, increased their wealth over the last three years by £155bn. That is enough for themselves alone to pay off the entire current UK budget deficit and still leave them with £30bn to spare.

Second, this mega-rich elite, containing many of the bankers and hedge fund and private equity operators who caused the financial crash in the first place, have not been made subject to any tax payback whatever commensurate to their gains. Some 77% of the budget deficit is being recouped by public expenditure cuts and benefit cuts, and only 23% is being repaid by tax increases. More than half of the tax increases is accounted for by the VAT rise which hits the poorest hardest. None of the tax increases is specifically aimed at the super-rich.

Third, despite the biggest slump for nearly a century, these 1,000 richest are now sitting on wealth greater even than at the height of the boom just before the crash. Their wealth now amounts to £414bn, equivalent to more than a third of Britain's entire GDP. They include 77 billionaires and 23 others, each possessing more than £750m.

The increase in wealth of this richest 1,000 has been £315bn over the last 15 years. If they were charged capital gains tax on this at the current 28% rate, it would yield £88bn, enough to pay off 70% of the entire deficit. It seems however that Osborne takes the notorious view of the New York heiress, Leonora Helmsley: "Only the little people pay taxes."
Michael Meacher MP
Labour, Oldham West and Royton

Things aren't very much different in the U.S. I wonder just how the collected wealth of the top 0.1%, say, compares to the national debt here.

Douwe Miedema & Sarah White | London | May 11

Reuters - Banks are quietly readying themselves to start trading a new Greek currency. Some banks never erased the drachma from their systems after Greece adopted the euro more than a decade ago and would be ready at the flick of a switch if its debt problems forced it to bring back national banknotes and coins.

From the end of the Soviet Union - which spawned currencies such as the Estonian Kroon and the Kazakh Tenge - to the introduction of the euro, they have had plenty of practice in preparing their systems to cope with change.

Planning behind the scenes has been underway since Europe's debt crisis erupted in Greece in 2009, said U.S.-based Hartmut Grossman of ICS Risk Advisors who works with Wall Street banks.

"A lot of the firms, particularly in Europe and also here, have been looking at that for a long time," said Grossman, who added that the latest Greek political crisis had brought matters "to a little bit of a head".

"But there really has been contingency planning at all of the financial institutions for that to happen ... Greece leaving the euro zone is not a new idea," he said.

Photo: REUTERS/Eddie Keogh

Given that the Conservatives have always tried to paint themselves as the "law and order" party and biggest friends of the police force, this is more than embarassing - it's a Tory disaster:

Thousands of off-duty police officers took to the streets in London on Thursday in a rare display of anger against government austerity, joining a protest by public sector workers including immigration officials, healthcare workers and prison officers.

Unions predicted some 400,000 public sector workers would walk out, a smaller protest than in November when Britain saw the biggest strike in years, but a significant show of discontent just after Prime Minister David Cameron's government took a drubbing at local elections.

The government said only about 150,000 had taken part and dismissed the action as "futile". Cabinet Office minister Frances Maude said, "public services were mainly unaffected".

However, the sight of some 30,000 police officers marching through London will be embarrassing for Cameron's centre-right Conservatives, who pride themselves on being the party of law and order.

Thirty thousand is close to a quarter of all the police officers in England and Wales. Mark my words, Cameron's headed for a Last Days Of Thatcher scenario - ousted by his own party's rats to save themselves.