Dutch Caribbean Islands on the Brink

Willemstad Curaçao
View down the Breedestraat in Willemstad, Curaçao (Unsplash/Lakeisha Bennett)

Time is running out for the autonomous Dutch islands in the Caribbean to do a deal with their former colonizer.

Coronavirus has brought tourism, the mainstay of the island economies, close to a standstill. Tax revenue has dried up while unemployment has soared. Without support from the European Netherlands, the governments of Aruba, Curaçao and Sint Maarten will run out of money in weeks.

The Dutch are willing to help, but only if the islands accept temporary Dutch administrators to manage reforms. For most of the Caribbean politicians, this goes too far. Read more “Dutch Caribbean Islands on the Brink”

What’s in France’s €100 Billion Stimulus

Emmanuel Macron
French president Emmanuel Macron chairs a meeting in the Elysée Palace in Paris, August 27 (Elysée/Philippe Servent)

France has unveiled a $100 billion stimulus program, worth 4 percent of GDP over two years, to help its economy recover from the effects of COVID-19.

The money is split almost equally between support for businesses, investments in the green economy, and health and social programs. It comes on top of the €460 billion France has spent on exemptions from social charges, furlough subsidies and soft loans to keep businesses afloat.

France is counting on the EU to provide 40 percent of the money from its €750 billion recovery fund. Read more “What’s in France’s €100 Billion Stimulus”

Dutch Extend COVID Aid for Businesses

The Hague Netherlands
Dutch government offices and parliament buildings in The Hague (iStock/Fotolupa)

The Dutch government has extended support for companies and self-employed workers struggling as a result of COVID-19 until July 2021, although some policies are becoming less generous.

The thinking, reports the national broadcaster NOS, is that firms shouldn’t be subsidized if they aren’t viable long term and workers in sectors with job losses should be coaxed into reskilling.

The measures will cost almost €39 billion this year. The Dutch economy is projected to shrink 6.4 percent. Read more “Dutch Extend COVID Aid for Businesses”

To Trump, Blue America Is Expandable

Chicago Illinois
Chicago, Illinois at night (Unsplash/Max Bender)

Asked about riots in America’s major cities, Kellyanne Conway, President Donald Trump’s outgoing political advisor, told Fox News:

These are Democratically-led cities and most with Democratic governors. It’s not Donald Trump’s watch.

(That didn’t stop Trump from deploying federal troops to Portland over the objections of the city’s Democratic mayor and Oregon’s Democratic governor in June.)

The suggestion that the president isn’t responsible for the whole country, but only to those parts that are loyal to him, is outrageous.

But it is how Trump has governed. Read more “To Trump, Blue America Is Expandable”

Britain Is Once Again the Sick Man of Europe

London England
View of the City of London, England from The Shard at night, June 13, 2018 (Unsplash/Tim Arterbury)

During the 1960s and 70s, Britain, economically stagnant and losing its empire, was known as the sick man of Europe. With COVID-19, the sickness has returned — and this time it may be even harder to heal.

More than 300,000 cases of coronavirus have been confirmed in the United Kingdom. 41,000 Britons have died of the disease, giving the country the second-highest per capita death rate among major countries. British economic output fell 20 percent in April, the worst rate by far among industrial nations.

This comes after a decade of austerity and on top of the economic fallout of Brexit.

It was the tough medicine of Thatcherism that allowed the United Kingdom to recover from its previous bout of ill health and find a new faith in itself — “Cool Britannia” — under New Labour.

But the seeds of the current malaise were planted in the same era. Read more “Britain Is Once Again the Sick Man of Europe”

Coronavirus and Corruption: Protests Against Netanyahu

Viktor Orbán Benjamin Netanyahu
Prime Ministers Viktor Orbán of Hungary and Benjamin Netanyahu of Israel speak in Brasília, Brazil, January 2, 2019 (Facebook/Viktor Orbán)

Israeli prime minister Benjamin Netanyahu saw the largest protests against him in nearly a decade on Saturday, when some 10,000 rallied outside his residence in Jerusalem and outside his private home in the coastal town of Caesarea.

The protesters are upset about Netanyahu’s handling of the outbreak of coronavirus in Israel and his remaining in power despite standing trial for corruption.

Similar demonstrations took place in Tel Aviv last month. Read more “Coronavirus and Corruption: Protests Against Netanyahu”

New Social Contract for the World After COVID

Miami Florida
Skyline of Miami, Florida (Unsplash/Ryan Parker)

The American economy wasn’t healthy before COVID-19. A middle-class life — the American Dream — was out of reach for most.

Social-democratic Canada and Europe prevented more people from falling through the cracks, but even there millions felt economically and culturally left behind.

A sense that the system wasn’t working for them contributed to the election of Donald Trump, the popularity of far-right nationalist parties and Brexit.

The economic impact of the pandemic can only exacerbate the divide between the well-educated and relatively well-off, who populate the major cities of Europe and North America, and the undereducated and underemployed, who live paycheck-to-paycheck in smaller cities and towns.

We need a better deal. A new social contract. Read more “New Social Contract for the World After COVID”

Spanish Congress Approves Coronavirus Recovery Programs

Spanish Congress Madrid
Palacio de las Cortes, seat of the Spanish Congress of Deputies, in Madrid, August 16, 2017 (Shutterstock/Vivvi Smak)

The Spanish Congress has approved three out of four recovery programs proposed by Prime Minister Pedro Sánchez, whose left-wing government does not have a majority.

Right-wing and regional parties supported plans for the economy, EU and health care. A package of social reforms, which included rental protections, a basic minimum wage and measures against gender violence, fell four votes short.

The government could reintroduce those proposals in its 2021 budget. Read more “Spanish Congress Approves Coronavirus Recovery Programs”

EU Once Again Proves the Doomsayers Wrong

Mark Rutte Pedro Sánchez Charles Michel
Prime Ministers Mark Rutte of the Netherlands and Pedro Sánchez of Spain speak with European Council president Charles Michel in Brussels, July 20 (European Council)

Whenever the EU is in crisis, you can count on the doomsayers to predict its imminent demise.

Not just the Euroskeptics: British tabloids, Russian propaganda and far-right politicians amplified by Russian propaganda arguing the EU is on the “brink of collapse”.

Even Europhiles. Former European Commission chief Jacques Delors warned that “the lack of European solidarity pose[s] a mortal danger to the European Union.” Italian prime minister Giuseppe Conte threatened the “destruction of the single market” if other EU countries didn’t agree with his demand for a €750 billion coronavirus recovery fund consisting wholly or largely of debt-financed grants.

Lucas Guttenberg, deputy director of the Jacques Delors Center in Berlin, warned that Austria, Denmark, Finland, the Netherlands and Sweden — the “frugal five” — were “playing with fire” by demanding verifiable economic reforms in return for financial support.

Christopher Wratil, an assistant professor in European politics at the University College London, argued “anyone with a sense of solidarity” would exclude those five countries from the recovery fund altogether.

As the EU summit, where the size and terms of the recovery program were hashed out this weekend, dragged on for days, the patience of pro-Europeans wore thin and inevitably World War II entered the discussion. Philipp Heimberger, an economist at the Vienna Institute for International Economic Studies, tweeted:

Thinking about the Marshall Plan and debt forgiveness after World War II. Striking: leading European politicians today are oblivious to history. How else could you become a nitpicker on essential common efforts for an EU recovery fund, harming your own long-term interests?

Pay up, or war! Read more “EU Once Again Proves the Doomsayers Wrong”

Dutch Caribbean Resist Terms of Coronavirus Aid

Willemstad Curaçao
Cruise ships moored in Willemstad, Curaçao (Shutterstock/Galina Savina)

The prime ministers of Aruba, Curaçao and Sint Maarten have turned down conditions to qualify for as much as €1 billion in coronavirus aid from the European Netherlands. A cabinet meeting in The Hague on Friday, which the leaders of the three islands attended, failed to produce a compromise.

The Dutch have proposed appointing a three-person panel to oversee reforms to which the aid is tied. The Caribbean islands consider this an infringement of their autonomy.

Eugene Rhuggenaath, the prime minister of Curaçao, went so far as to accuse The Hague of having “an agenda for the takeover and control” of the islands, echoing the rhetoric of pro-independence parties that supported violent protests against spending cuts two weeks ago, which prompted the Dutch to deploy troops to support the local police. Read more “Dutch Caribbean Resist Terms of Coronavirus Aid”