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Russian billions for Iceland?

Russian billions for Iceland?

 

In the current financial crisis, Iceland is the first state to end up on the verge of bankruptcy. A four billion euro loan from Russia could help Reykjavik out of its financial squeeze. Although Moscow has yet to give its approval, Europe's press sounds the alarm for Iceland's independence.

With articles from the following publications:
Svenska Dagbladet - Sweden, Süddeutsche Zeitung - Germany, The Times - United Kingdom

Svenska Dagbladet - Sweden

The Stockholm-based daily Svenska Dagbladet asks who stands to gain from Russia giving Iceland a loan: "What happens if Iceland gets its huge loan from Russia and then can't pay it back? Will the Kremlin take over this strategic island? Iceland is a Nato member but it lacks its own armed forces and the last American soldier left Keflavik two years ago. This would be an interesting case for international bankruptcy law. States and rulers have often defaulted on payments, but it was mostly others who suffered the economic consequences ... As an open Western economy Iceland cannot run away from its debts. However, now it's not Iceland as a state but its expansionary banks that have borrowed money. If the banks had gone bankrupt the assets would have been divided up among the debtors." (08/10/2008)

Süddeutsche Zeitung - Germany

A loan to Iceland running into the billions would be good for Russia's political image, writes the Süddeutsche Zeitung. "The request from Reykjavík puts the Kremlin in an agreeable situation. After months of European and American accusations for having abased and dismembered Georgia, Russia of all countries is now to come to the rescue of the small Icelandic democracy. And other countries are lining up to do the same. No Kremlin screenplay could have done a more dramatic job, and it fits in wonderfully with the image Dmitry Medvedev was trying to project in calling for  'joint action' vis-à-vis the global crisis when he delivered the first Internet message by a Russian president in front of a high tech landscape of screens and telephones. Russia would be only too happy to help. Sceptics suspect Moscow wants to earn political interest on its loan by gaining economic influence or support in controversial questions like its Georgia policy. That would bring Moscow out of the defensive and allow it to buy its way back into diplomatic favour, so to speak." (08/10/2008)

The Times - United Kingdom

The Times expresses concern over Iceland's economic and political independence in the event that Russia steps in to bail it out: "Iceland's crisis is not only a morality tale of global concern, given the number of foreign, especially British, investors; it also lays the country open to predators ready to seize this prize. Russia has offered to bail out Iceland to the tune of four billion euros. ... Moscow has the money, means and motivation. And however nervous this staunch Nato ally may feel, Iceland's politicians have little option but to talk. For the Kremlin there could be no greater relish than extending its influence into the North Atlantic. If we are not careful, Iceland will signal the ominous start of a new round of mergers and acquisitions – not of companies, but of whole countries." (08/10/2008)

POLITICS

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Diário de Notícias - Portugal

Politicians reject same-sex marriages

Portugal's leftist party Bloco de Esquerda has tabled a bill that would allow same-sex marriages. The governing Socialist Party (PS) has instructed its members of parliament to vote against the draft, although its programme supports homosexual unions. The Diário de Notícias writes that the PS's move makes no sense: "Why are there 230 representatives in parliament if they can't be guided by their own consciences in their decisions? ... And the PS's justification for its instruction only makes things worse: ... The PS is not voting against same-sex marriages but against the 'political opportunism' of the Bloco de Esquerda. That means the PS is convinced that the current situation is unfair to homosexuals, but that now is not the right time to remedy this injustice. Unbelievable. We live in a country where the government believes that even passing a law to remedy an injustice is a matter of correct timing." (07/10/2008)

Delo - Slovenia

War against crime just a publicity stunt?

Following the murder of Ivana Hodak, the daughter of attorney Zvonimir Hodak, Croatian Prime Minister Ivo Sanader has dismissed two ministers and the chief of police and declared war on organised crime. Hodak is the lawyer representing the Croat ex-general Vladimir Zagorec, who was responsible for procuring arms during the Croatian war. The daily newspaper Delo fears that Sanader's initiative could be just a publicity stunt. "That's just the way things are in Croatia: only the worst disasters and the ensuing public wrath can force the government to take serious action. ... With these most recent measures Sanader has signalled that the government is determined to change things. But at the same time he's saving his own skin and the government's credibility. If over the next few days the war against crime doesn't begin and it turns out that this was just another performance, Sanader can say goodbye to his position after the next elections, if not before that." (08/10/2008)

El Mundo - Spain

Miliband calls for European energy policy

British Foreign Secretary David Miliband calls in the Spanish daily El Mundo for a common European policy aimed at producing a "low-carbon" economy: "In times of economic stagnation it may seem tempting to consider the transformation to a 'low-carbon' economy as a matter of secondary importance. But the truth is that this issue is of essential importance for the future well-being of our economy. In view of rising inflation and high oil and gas prices it is a fact that our dependency on 'carbon-intensive' energy forms adds to our economic difficulties. ... This is why the European Union must engineer a global swing towards a 'low-carbon' economy. ... This institution [the EU], which founded its existence on the basis of cooperation on coal and steel to prevent conflicts and instability in Europe must return to its roots. Today it must use all its instruments ... to create global norms and thus prevent the battle for energy from leading to a conflict not within its borders, but outside them."  (08/10/2008)

Népszabadság - Hungary

A difficult relationship

Tibor Kis writes in the left-liberal daily Népszabadság about the most recent tensions between Slovakia and Hungary: "What we have seen in Slovak-Hungarian relations over the past days has not exactly been uplifting. But it seems we will have to get used to this sort of thing. ... Certainly, our biggest problem is Ján Slota and his irrational fear of Hungary. Of course it is not easy to say (as our friends from abroad do) that we should rise above such things. But the fact is you simply can't 'rise above' Slota. We can't avert our eyes to the fact that this primitive, extremely aggressive politician is Premier Robert Fico's right hand man. But there is also a ray of hope: Fico has for the first time - if half-heartedly - distanced himself from Slota. He must be credited for that. But Hungary has also made mistakes. ... In the cacophony of the past days it was perhaps a silence that was most eloquent. It is entirely possible that of all things Prime Minister Ferenc Gyurcsány's silent reserve has done the most for Hugarian-Slovak relations." (08/10/2008)

REFLECTIONS

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El País - Spain

Judith Astelarra on mothers in power

Sociologist Judith Astelarra reflects in a commentary piece for the Spanish daily El País on how the role of mother has changed in politics. The US vice-presidential candidate Sarah Palin and the Spanish defence minister Carme Chacón are just two examples: "The photo of Carme Chacón, pregnant and greeting the armed forces, went round the world. The choice of Sarah Palin put a soccer mum on the Republicans' ballot paper. According to survey results the nomination [of Palin] gave McCain a big boost among white women aged over 40 who now say they will vote for him. These two examples are a novelty because until recently people would say that unlike male politicians female politicians were required to sacrifice their family life if they wanted to make a success of their careers. In reality the situation has barely changed. According to the statistics women in political posts still tend to have fewer children and are less frequently married than their male counterparts. But given these new examples it seems sensible to ask two questions: Is this a sign of women's participation in politics becoming standard? And has motherhood become a factor that provides women with an additional political competence?" (08/10/2008)

Le Monde - France

Michel Reydellet on the French political system

Michel Reydellet, lecturer at the University of Toulon, has harsh words of criticism for the political system in France: "If I had to defend the idea that France had the best political regime I would say the following: parliament having been too important in the past, it is normal that it should now be reduced to an insignificant shadow play. ... While other Europeans have given their monarchs the role of umpires, it is only logical that we, who guillotined our own, should now reestablish him in all his majesty through periodic elections. ... The other Europeans were naive enough to renounce their aristocratic chambers of parliament. But we, the true revolutionaries, have skilfully maintained a senate chosen by the political classes according to such fair and righteous principles that it has not seen a change of power for a century. ... The country of Voltaire has complete freedom of the press. Everyone is free to write what they want - without going too far - in alternative newspapers. But the person in power is on best terms with the concrete emperor and the armament prince who own the major media." (07/10/2008)

ECONOMY

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Dagens Nyheter - Sweden

EU finance ministers in Luxembourg

The finance ministers of the European Union met yesterday in Luxembourg to discuss a joint approach to tackling the bank crisis. The meeting underscored the lack of a joint strategy for facing the financial crisis, the Stockholm daily Dagens Nyheter notes: "So far the political leaders of the EU have done more talking than taking action to jointly overcome the financial crisis. Making empty promises will not help to calm the panic and restore confidence. Finance Minister Anders Borg made the situation clear on his arrival at the EU ministers' meeting: if each country tries to solve the problems on its own, the solution to one country's problems will become the problem of another. Such conduct contradicts the basic principles of the EU. ... One positive aspect is that the EU finance ministers agreed on common regulations for dealing with the financial crisis. Each country assumes responsibility for its banks but rescue operations are to be coordinated with the other countries." (08/10/2008)

De Standaard - Belgium

A powerless bystander

The daily De Standaard writes on the role of the EU in the credit crunch: "The basic idea behind the European Union is and remains the creation of a single economic location. With its many rules and guidelines, Europe is omnipresent in financial and economic life. The individual member states are bound hand and foot in their economic policies. Either Europe does not allow something, or Europe demands something. But now, in the midst of the worst financial crisis in decades and with the looming threat of economic derailment, all of a sudden Europe has no answer. Europe's role in the current crisis is that of a powerless bystander. And that will not strengthen the faith of the average citizen in Europe's construction process." (08/10/2008)

CULTURE

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Keskipohjanmaa - Finland

National attitudes towards clothes

In his column for the daily newspaper Keskipohjanmaa, Tapio Lehtinen cites the words of Finnish singer Tomi Metsäketo, who said that he loved Italy because there men are men and women are women and he likes women to wear skirts rather than leggings. "[The singer] is deliberately exaggerating but he's right: it's nice to see an Italian woman wearing a dress. ... It certainly would do our street scene no harm if the Finns had a little more sense of style. But in Finland one doesn't dress up for others; people think the importance of clothes shouldn't be exaggerated. I don't know what the Italians do every day but here in Finland the day begins with bringing the children to the nursery and then they're picked up in the afternoon - no matter what the weather. On the way back we go shopping and then cook. In the evening the children are taken to their hobby activities. With all this hustle and bustle clothes and the way you look simply aren't at the top of your list of priorities." (08/10/2008)

Corriere della Sera - Italy

Chinese art in London

British art lover Charles Saatchi's new gallery in a former barracks in London opens with an exhibition of contemporary Chinese art on Thursday. The daily Corriere della Sera writes that with his third London gallery Saatchi has set his sights on the Orient, China, Iran and Iraq. "The palace is imposing. It was built for the general staff of the royal British Army. Now Charles Saatchi has set up his main headquarters there. The ingenious and controversial art dealer who elevated the Brit Art of Damien Hirst und Tracey Emin to international fame has discovered 'Made in China'. ... Saatchi conceived the gallery as the largest free admission museum for contemporary art. To ensure that the numbers add up he coupled the enterprise with an auctioneer's so that after exhibitions one or two of the art works can be auctioned off. After all, even the Chinese Revolution has realised that business and capitalism are not the worst evils. After the Chinese have had their turn ... Saatchi plans to exhibit the new 'wild' talents that have emerged from the ruins of Iraq and the Islamic rigour of Iran." (08/10/2008)

LOCAL COLOURS

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Diena - Latvia

Transnational deposits on bottles

The daily Diena criticises Latvia's waste disposal system. "Latvia is so full of rubbish that one can barely believe that here in [the central Latvian city of] Jelgava we have the largest recycling plant for PET bottles in Eastern Europe. Only [the northern Latvian city of] Valka is clean because its Estonian twin city Valga installed a machine for taking back bottles like those to be found all over Estonia three years ago. If a Latvian wants to go there and get cash for his rubbish he just has to do one thing: keep his mouth shut and not say a word in Latvian, because you don't pay a deposit on bottles purchased in Latvia. And the Estonians do not react kindly to their neighbours trying to pull a fast one on them." (08/10/2008)

 

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