Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (44635)	9/19/2003 4:35:29 PM
From: IQBAL LATIF	Respond to of 50167

Left Out: Aznar and Berlusconi Excluded from Summit José Maria Aznar (left) and Silvio Berlusconi haven't been invited to Saturday's summit in Berlin. Though the prime ministers of Spain and Italy have played down the idea that their exclusion from Saturday’s Franco-German-British summit is a snub, leading newspapers in both countries say that’s exactly what it is. Officially, there haven’t been any complaints. But behind the scenes, the decision not to invite the leaders of Spain and Italy to Saturday’s Iraq summit in Berlin has roiled the chattering classes in Madrid and Rome. Though the governments of the Mediterranean countries aren’t expressing it, observers say they feel left out. At their meeting on Saturday, German Chancellor Gerhard Schröder, French President Jacques Chirac and British Prime Minister Tony Blair will seek to end the rift that has lasted for months between the countries on the Iraq question. That’s all well and good, but major newspapers in Spain and Italy have complained in editorials that the exclusion of Spanish Prime Minister José Maria Aznar and Italian Prime Minister Silvio Berlusconi is a form of punishment from German and France for those leaders' steadfast support of U.S. President George W. Bush's hawkishness. Deliberately excluded? Describing the snub as an "affront" to Spain, the influential El Mundo wrote that "it’s obvious the leaders of Germany and France have deliberately excluded" Spanish Prime Minister José Maria Aznar. "More than any other European country Spain should have been at this meeting" because of its support for US President George W. Bush and British Prime Minister Tony Blair and its role as a UN Security Council member, the paper wrote. Madrid has already contributed €81.9 million to the U.S.-led war effort in Iraq, and the Defense Ministry estimates the country’s contributions to the reconstruction of Iraq could reach €170 million. "How long," the paper asked, "are Paris and Berlin going to punish Aznar for his pro-American stance?" El Mundo also wrote that Aznar’s snub may also have been influenced by his recent criticism of France for failing to do more to reign in its deficit spending. Earlier this month, French officials admitted the country would exceed the 3 percent ceiling in deficit spending required by the Stability and Growth Pact that guarantees the strength of the euro for the third year in a row. Aznar’s criticisms also drew a rebuke from German Chancellor Gerhard Schröder, who reminded the Spaniards that their own economic growth has been fueled by EU subsidies – 25 percent of which are funded by Berlin. Another major Spanish paper, El Periodico, opined that "Jose Maria Aznar is starting to pay for his unconditional support of President Bush’s warlike strategy. Chancellor Schröder has excluded him from the Berlin summit." The paper also noted that Aznar was unable to paper over his differences with France over the Iraq war at a recent meeting with Chirac. And the country’s unofficial paper of record, El Pais, said the development showed Aznar "finds himself marginalized on major negotiations" over Iraq. Criticism has also been strong in Italy, which currently holds the rotating presidency of the European Union. Rome’s La Repubblica opined this week that Berlusconi’s exclusion suggested that Italy was losing its diplomatic importance. Playing down the tensions Still, politicians in both countries have sought to play down the significance of their exclusion. Italian Foreign Minister Franco Frattini characterized the Berlin meeting as an "informal meal," and Aznar has taken pains to point out that he will be meeting in London with Blair one day after the meeting and that he has discussed the Iraq resolution with both Chirac and Berlusconi. "Not everybody is invited everywhere," Spanish Foreign Minister Ana Palacio told reporters in Madrid. "It is a working meeting proposed by German so that France and the United Kingdom -- two key states in the construction of Europe -- can overcome certain positions that they have had at one time or another." A spokesman for Tony Blair said on Tuesday that he valued his contacts with Aznar and other European leaders "as much as he valued his contacts with Chancellor Schröder and President Chirac." And a report in the British newspaper The Guardian suggested that Blair had argued unsuccessfully in favor of inviting Aznar to the meeting. Meanwhile, German government spokesman Bela Anda also sought to play down the decision not to invite Italy or Spain to the informal meeting, saying the meeting was "not directed against anyone." Additionally, the leaders of Germany, Britain and France have also contacted other EU member states to discuss the meeting, but have not extended invitations to any other countries.

To: IQBAL LATIF who wrote (44635)	9/19/2003 4:35:45 PM
From: IQBAL LATIF	Respond to of 50167

Chirac wants an honourable way out from French led Iraq EU policy. <Germany and France have accepted the Anglo-American occupation of Iraq as a given, which indicates that they’re now willing to legitimize it> Schröder, Chirac, Blair to Seek Deal on Iraq The leaders of France, Germany and Great Britain are meeting in Berlin on Saturday. Topping the agenda will be the future of Iraq and Europe's involvement in rebuilding the country. (Sept. 19, 2003) Rome’s La Repubblica newspaper was very upbeat in advance of the meeting between French President Jacques Chirac and German Chancellor Gerhard Schröder, emphasizing that a good Franco-German relationship was good for the rest of Europe too. It wrote approvingly of their declaration that they’re prepared to contribute towards the reconstruction of Iraq by training Iraqi police and military. In doing this, Germany and France have accepted the Anglo-American occupation of Iraq as a given, which indicates that they’re now willing to legitimize it, the paper said. The Italian daily described the move as a clear signal to U.S. President George W. Bush that they won’t leave America all on its own. Another Italian paper, Milan-based Corriere della Sera, also saw the summit as evidence of new openness towards the U.S. But it made pointed note of the French president’s insistence that handing over the government of Iraq to the Iraqis should be a "matter of months, not years." Washington has already dismissed the French proposal as unrealistic. But the paper pointed out that Berlin and Paris are worried that unless this happens soon, the security situation in Iraq will get completely out of control. French conservative daily Le Figaro wrote the international community has no choice but to help Washington. It has to help it find an honorable way out, because it’s in no one’s interest to see both Iraq and the Middle East go up in flames. That, the paper commented, is the big difference between Iraq and Vietnam – no one can wish for a U.S. failure in Iraq. According to Spain’s El País, ‘New Europe’ met in Berlin on Thursday – and it wasn’t ‘New Europe’ as U.S. Defense Minister Donald Rumsfeld defined it. According to the paper France and Germany are a bit arrogant, but they form an axis that’s essential for the functioning of the European Union. The left-wing Spanish daily suggested that it might be a good idea for Spain to ally itself with the Franco-German avant-garde, instead of hanging back with U.S. President Bush. German business daily Handelsblatt wrote Schröder and Chirac have demonstrated that their countries are marching side by side within the EU. Their viewpoints on the decisive issues of EU policy are now very similar, something that was almost unimaginable just three years ago, the paper commented. And neither care much what others think of their alliance. The Handelsblatt saw a danger that France’s demands for special treatment within the EU, for example over farming subsidies, may now be replaced by joint Franco-German arrogance, and it cited their cavalier attitude to the EU Stability and Growth Pact as an alarming example. Britain’s Daily Telegraph was also unimpressed by the two countries’ announcement on Thursday of a billion-dollar investment package to try and stimulate growth in the European Union. Both France and Germany have broken the Stability Pact and have huge budget deficits, the paper wrote. It pointed out that neither country was able to give a satisfactory explanation of where all this money is to come from.

To: IQBAL LATIF who wrote (44635)	9/19/2003 4:40:09 PM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

IMF Report Criticizes German and EU Economies The board of the International Monetary Fund prepares for tough talking in Dubai The latest International Monetary Fund forecasts suggest that a global economic recovery in the next two years remains possible but ailing economies such as Germany’s may continue to contribute to its brittle nature. The international financial community prepares itself for a week of tough talking in Dubai this week as the annual meetings of the World Bank Group and the International Monetary Fund (IMF) informally begin on Thursday. And despite initial optimism that the economic outlook has brightened since the end of the Iraq war, the IMF has warned that global recovery from the sluggishness of the past two years remains fragile. One area of concern remains the performance of the euro zone. In the IMF’s Economic Outlook document released on Thursday, in which forecasts for economic growth, potential dangers and opportunities are outlined, the European economy has been identified as the slowcoach in the tentative global marathon towards recovery with Germany singled out as one of the most persistent stragglers. While hopes abound that the current growth in the United States will continue to improve this year and next, the IMF believes it will not be enough to drive the world economy forward on its own, despite concerted efforts of assistance by the Japanese. A strong showing by Europe, however, would provide a well-needed helping hand. Unfortunately, the IMF doesn’t see this happening any time soon. Euro zone growth forecast slashed The IMFconfirmed it has slashed growth forecasts for the 12-nation euro zone both for this year and 2004. According to its report, the deficits in gross domestic product (GDP) in both Germany and France will widen to 3.9 percent. It will be Germany’s largest shortfall since 1975; for France the biggest since 1996. Both nations are violating an EU deficit ceiling of 3 percent of GDP this year and probably will for a third year in 2004, a situation which threatens the EU’s Stability and Growth Pact. The performance of Germany, Europe’s largest economy, is likely to contribute to the estimated sorry growth of the euro zone economies over the coming two years, according to the IMF. The ailing EU powerhouse, struggling to drag itself from recession, will continue to add to the economic woes of the region where growth is predicted to be only 0.5 percent this year and 1.9 percent in 2004, in contrast to IMF estimations released in April which projected growth rates of 1.1 percent and 2.3 percent. In contrast, global economic growth will accelerate to 4.1 percent in 2004 after reaching 3.2 percent this year, staying true to IMF forecasts made in April. Germany named as one country responsible The report went on to blame Germany for not adhering to the euro zone fiscal rules because of its failure to reduce its structural deficits when there was an economic boom. France and Italy were also included in the criticism for similar breaches. “For the third year in succession, the German economy has stayed in a feeble state, contributing to the below average performance of the whole euro zone and threatening the prospects of a recovery,” the report stated. However, the IMF’s chief economist Ken Rogoff added his own comments on the state of the German economy in relation to the euro zone at the unofficial opening of the talks in Dubai, praising the efforts of the German government to get things under control through the proposed implementation of the Agenda 2010 reform package. IMF praises and encourages reforms The IMF has said that countries should be allowed to breach the EU pact's three-percent limit, if they are undertaking credible long term actions to strengthen their underlying budgetary position. But Rogoff stressed that Germany’s Agenda 2010 plan was just one step in the wider reforms that should be put into action within the European Union. He added that the euro zone should embark on "more sustained and vigorous structural reforms," starting with the job market and pensions, to aid economic recovery.