The EU’s fight against sovereign debt has entered a new stage. In France, Francois Hollande defeated French President Nicolas Sarkozy in the presidential election this weekend, and in Greece, the governing party was routed in the parliamentary elections. As the political climate in Europe is changing, the question is whether German Chancellor Angela Merkel will be able to remain a pillar of strength able to hold the ground for the euro and the EU. Failure to do so could result in a new and unpredictable situation in Europe.
The changes in France and Greece caused international stock markets to drop across the board. The concerns are not about the relative strengths or shortcomings of Sarkozy and Hollande, but rather about the prospects of a solution to the EU sovereign debt crisis. Political commentators say this round of elections has caused anxiety among Europeans, and international observers are focusing on whether Hollande, following his criticism of Sarkozy’s policies during the campaign, will introduce major changes to the current policies that are aimed at consolidating the European project. Since Germany and France have been the driving force behind the finalization of the EU’s agreement on fiscal discipline, it will be difficult for Germany to save the situation if France pulls out, and that could result in a difficult situation for both the euro and the EU.
The French and Greek votes were an expression of voters’ dislike of their governments’ austerity policies. After the onset of the sovereign debt crisis in the EU, one European country after the other has had problems with shortages in the national treasury and high debt levels. As these countries implemented strict austerity policies, public welfare suffered, unemployment increased and the economy took a dive, with labor strikes and national protests making an economic recovery even more difficult. As governments are unable to tell the public when the suffering will be over, a feeling of uncertainty and agitation is spreading through society, and elections offer voters with an opportunity to vent their anger.
The main reason French voters supported Hollande was that they wanted to express their dissatisfaction with Sarkozy. Although voters supported the socialist line, the fiscal situation is not very positive and increasing the tax load on the wealthy will not necessarily be enough to improve the fiscal situation in the short term. In addition, the government is also under different international pressures, and neither Hollande or the new Greek government will have enough room to implement all the changes they promised during their campaigns. They have no access to any magic formulas that would immediately eliminate public suffering and solve their problems. They may not be able to do much more than implement minor policy changes, so it is not very surprising that many people are worried over future reform prospects.
The skies over the EU are turning gray and the clouds are spreading over all Europe. With the changes in France and Greece, the debt problem could take another turn for the worse, and it might even spread across the entire globe. Although Taiwan is far away from the EU, and although our budget problems are not as bad, data from the Directorate-General of Budget, Accounting and Statistics shows that total government debt reached NT$21.47 trillion (US$732.88 billion) last year, NT$93,000 per capita. That was an increase of NT$2.3 trillion last year alone. This is a serious warning signal.
President Ma Ying-jeou (馬英九) might have already won a second term in office, but low approval ratings, vociferous public complaints and high debt could easily translate into loud public demands for him to step down.
Saudi Arabian largesse is flooding Egypt’s cultural scene, but the reception is mixed. Some welcome new “cooperation” between two regional powerhouses, while others fear a hostile takeover by Riyadh. In Cairo, historically the cultural capital of the Arab world, Egyptian Minister of Culture Nevine al-Kilany recently hosted Saudi Arabian General Entertainment Authority chairman Turki al-Sheikh. The deep-pocketed al-Sheikh has emerged as a Medici-like patron for Egypt’s cultural elite, courted by Cairo’s top talent to produce a slew of forthcoming films. A new three-way agreement between al-Sheikh, Kilany and United Media Services — a multi-media conglomerate linked to state intelligence that owns much of
The US and other countries should take concrete steps to confront the threats from Beijing to avoid war, US Representative Mario Diaz-Balart said in an interview with Voice of America on March 13. The US should use “every diplomatic economic tool at our disposal to treat China as what it is... to avoid war,” Diaz-Balart said. Giving an example of what the US could do, he said that it has to be more aggressive in its military sales to Taiwan. Actions by cross-party US lawmakers in the past few years such as meeting with Taiwanese officials in Washington and Taipei, and
The Republic of China (ROC) on Taiwan has no official diplomatic allies in the EU. With the exception of the Vatican, it has no official allies in Europe at all. This does not prevent the ROC — Taiwan — from having close relations with EU member states and other European countries. The exact nature of the relationship does bear revisiting, if only to clarify what is a very complicated and sensitive idea, the details of which leave considerable room for misunderstanding, misrepresentation and disagreement. Only this week, President Tsai Ing-wen (蔡英文) received members of the European Parliament’s Delegation for Relations
Denmark’s “one China” policy more and more resembles Beijing’s “one China” principle. At least, this is how things appear. In recent interactions with the Danish state, such as applying for residency permits, a Taiwanese’s nationality would be listed as “China.” That designation occurs for a Taiwanese student coming to Denmark or a Danish citizen arriving in Denmark with, for example, their Taiwanese partner. Details of this were published on Sunday in an article in the Danish daily Berlingske written by Alexander Sjoberg and Tobias Reinwald. The pretext for this new practice is that Denmark does not recognize Taiwan as a state under