Archive for the 'NATO' Category

Bucharest, Romania:  The final fronteer.

It was the first NATO summit where the US failed to get what it publicly asked for - granting Ukraine and Georgia a next step in the NATO-accession process, the so-called "Membership Action Plan" or MAP.  MAP does not mean automatic NATO membership and can take 5-10 years to complete because the requirements laid out in MAP are dependent on the reformist drive of the respective governments. In the battle over whether to grant MAP to Ukraine & Georgia, French President Sarkozy, whom Bush qualified as "the last reincarnation of Elvis", suddenly switched sides and joined the opposition led by German chancellor Angela Merkel, who was against MAP from the very beginning.

After bitter quarrels at a working dinner hosted by the Romanian president Traian Basescu, the leaders of Old Europe prevailed. Bush and Brown got a measly compromise - a second chance in December, when NATO foreign ministers could decide to give MAP to the two former Soviet countries. But German Foreign Minister Frank Walter Steinmeier already qualified as "unconceivable" the prospects of changing his mind by December, when, in his view, there will only be a "first assessment". Followed by a second, third, etc. until Ukrainians and Georgians give up hope of ever joining NATO.

The real winner of the NATO summit in Bucharest was none other than Vladimir Putin. It was he who delivered the final speech on the last day of the summit, it was he whom Germany and France were thinking of as these two stalwarts of "Old Europe" fought to keep Georgia and Ukraine out of NATO. Self-confident and pleased that "our concerns were heard", Putin gave the audience at the Summit a condescending discourse which seemed as if the West was already at his disposal and he, the "Tsar of the Kremlin" didn’t feel the need to bully his loyal servants.  If the result of the NATO Summit are any indication, Putin was right.

During the closed-door NATO-Russia Council in Bucharest, Putin threatened the statehood of Ukraine in the event that it would become a NATO member.  Putin noted that "there are 17 millions Russians there" and that "Ukraine is a patchwork of territories from other states". But in the following press conference he refrained himself form directly attacking Ukraine or Georgia. The argument against NATO enlargement, in Putin’s public speech, was that "NATO is not a democratizer", but "a powerful military block whose appearance on our borders will be considered by Russia as a direct threat to our country’s security.

He also stressed that no threat - from terrorism to proliferation of WMD, from cyber attacks to energy - can be tackled without Russia. NATO was set up during the Cold War against an "evil empire" - the USSR - "but it remains to be seen who was right then", Putin said. That statement alone should set off alarm bells among military strategists and historians throughout the West. 

Putin also mentioned Iran and that, although Russia opposes a military nuclear program, it is "fully committed to honor its contractual obligations in terms of civilian technology and fuel for the civilian Iranian nuclear program".  No comment.

So what will be the future of NATO after Bucharest, after Russia got a veto right through its advocates in the NATO Alliance, especially Germany?

Hopefully Russia will make another mistake, the way it cut off gas to Ukraine in 2006 and let German consumers shiver. And hopefully we’ll have a strong leader in the White House next year. One who knows Russia from the Cold War and sees the new threat it has become. One who doesn’t look Putin or Medvedev in the eyes and thinks he has "seen into their soul", as George W. Bush famously stated after meeting with Putin. That would be the only hope for the transatlantic community. It cannot rely on a reincarnation of Elvis in France and a jello-like chancellor in Germany, too weak to break the will of her half-socialist, pro-Russian government. 

It is a sad indication of where the power truly lies in Europe when Bush and Sarkozy, both hawkish on foreign policy in general, are not able to secure the nomination of two former Soviet satellites to one of the most important military blocs in the world.  Perhaps, in the end, Putin smiles because he knows the truth:  Putin has also looked into the West’s eyes to see its soul and has found that the West is lacking both a soul and a backbone. 

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The New European

Nicholas TaubmanU.S. Ambassador to Romania Nicholas Taubman recently spoke to a group in Atlanta, Georgia about investing in Romania.  An excerpt of his speech can be found below:

  • Good Morning. I am delighted to be here…to share with you my experience as the U.S. Ambassador to one of the most dynamic and fascinating markets in Europe, a country that has become the hottest market for Foreign Direct Investment throughout the entire region. 
  • Romania is often referred to as “the best kept secret in Europe” and now - the European Union. I trust that after our brief remarks this afternoon, you’ll understand why, as the U.S. Ambassador and the founder and former CEO of what is now a Fortune 500 company, I would urge you to carefully consider Romania as your next market, if you are not there already (Advance Auto Parts).
  • I’ve played witness to tremendous changes in Romania in my time as Ambassador. Romania has emerged from the long, dark night of communism and has made incredible progress in the last few years. One can sense the casting off of the old ways and a rediscovery of latent possibilities.
  • Romania's recent achievements are impressive. They include NATO membership in 2004, EU membership in 2007, and eight years of solid economic growth that have refashioned the country into a modern democracy and a market economy.
  • Romania is a country of enormous promise and potential with a marketplace of 22 million consumers. It is rich in agricultural lands, energy and mineral resources, and human capital, with a well-educated and productive labor force. I’ve been impressed by the creative, entrepreneurial spirit of the people. Their talent, skill, and ambition are already turning Romania into a key player in the region and beyond.
  • Romanians can be found in the boardrooms of major corporations from Silicon Valley to Wall Street, as well as at the helm of operations in Romania. The country's human talent has allowed major multinationals to move quickly to reliance on domestic managers, rather than expensive foreign staff. Romanians are known for having both outstanding engineering and language skills. People are beginning to talk about the so-called “Return to Romania,” which is a very encouraging sign. I’ve heard plenty of stories about some of Romania’s brightest, including many who left under very trying circumstances, returning home to establish companies and capitalize on their Western know-how, some after more than two decades. A well-known American executive recruiting firm tells me they’ve been quite successful at placing Romanian-born executives in positions back in their home country. 
  • One of the Romania’s great success stories can be found in the Information Technology sector. Not only is it recognized as one of the strongest in the region, boasting 85 percent American products and continuing to attract high-levels of investment; Romania’s own innovations have become globally recognized products. The legislation governing the sector has served to encourage investors and helped stem the so-called “brain drain” experienced in other sectors. I recently read that the Economist Intelligence Unit ranks Romania ahead of India, Russia, and China in terms of IT sector competitiveness (Impressive!).
  • On the occasion of the inauguration of Microsoft’s Global Technology Support Center in Bucharest a year ago, I asked Bill Gates “why Romania?” His response was simple - great geographic location, great engineers, and great foreign language speakers. They say that after English, one of the languages heard most often at Microsoft’s Seattle headquarters is Romanian, spoken by the 300 plus Romanians employed there. Bill Gates knows a thing or two about the war for talent…
  • But Microsoft is not alone. Leading U.S. and European companies have moved eagerly into the Romanian market. Airline connections throughout Europe and beyond are proliferating. In fact, Georgia’s own Delta Airlines made it that much easier to bridge the Atlantic last June when they inaugurated their direct flight to JFK. It's amazing to think that Foreign Direct Investment in Romania from the U.S. and Europe is up over 600% since 2000!
  • In a few short weeks, Bucharest will be in the world spotlight as dozens of foreign leaders, including President George Bush, converge there for the NATO Summit. For this, the people and leaders of Romania have good reason to be proud.
  • What can you expect to find upon arrival to Bucharest? A city bustling with activity, framed by construction cranes and anchored by bumper to bumper traffic, serving as testimony to the city’s exponential growth. In fact, Romania now ranks first in the EU in construction works - boasting an annual growth rate of 33 percent. You could make a case that the construction crane should be the new "national bird" of Romania. 
  • But the explosive growth is not limited to the capital city. The fact that the investment locations are decentralized is one of the attributes that makes Romania so attractive. Constanta, known as the “eastern gateway of Europe” is home to the second largest port in Europe in terms of capacity, and still has potential to grow; Iasi, Timisoara and Cluj are recognized as industrial and IT hot spots, experiencing some of the fastest growth rates in the country. Ploiesti and Craivoa are becoming automotive hubs, with Ford Motor Company slated to open its largest new plant in 36 years in Craiova. 
  • Cluj is attracting plenty of investment and media interest. You may have noticed the hoopla surrounding Nokia’s new mobile-phone plant. I saw first hand what the excitement was about when I visited Cluj last November to check on the progress of the Transylvania Motorway, a 3.2 billion dollar project that will nearly triple the amount of motorway in Romania. The four-lane road, the biggest project in Europe, will cut travel time to Hungary in half, making it much easier to get your products to the major European markets. And you know the road will be quality, because Bechtel is building it. This road is drawing investment to the region already, and it's not even done. St. Louis-based Emerson is set to join Nokia with a new Cluj plant in the near future. The list goes on and on, and so could I, but I won’t as I want to leave time for your questions.
  • I’ll end with this. The more I travel the globe, the more I come to realize that we need to start focusing on our similarities as people rather than our differences. In the case of Romania that is a pretty simple task as our two countries and peoples have much in common. In fact, Ambassador Vierita even shares a birthday with the United States! He is in for quite a surprise when he celebrates his first birthday party this 4th of July in our nation’s capital. From my own experience, I have found Romanians to be warm, open and friendly. Romanians are hard workers and we both believe in working hard to make our lives better. I believe that the time to build on success is while you're successful. For Romania, that time is now. It should be for you as well. Thank you.

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Global American

There is something about the Baltic states… something refreshing, inspiring and courageous.

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Their recent history after the breakup of the Soviet Union is an economic success story with double-digit GDP growth rates. Estonia is the most high-tech society in Europe - with e-government & online voting - having earned the nickname "E-stonia".

Yet listening to the their three foreign ministers speaking about the 85 years of US-Baltic relations at the Heritage Foundation last Thursday, some differences do become obvious. Especially concerning their relationship with Russia.

The most pro-Russian stance was the Lithuanian one. Foreign Minister Petras Vaitiekunas, with a strong Russian accent, underlined several times that "Russia is not the USSR anymore, it differs profoundly" when the discussions were becoming too critical of Moscow. He also spoke of a "political brand of the three Baltic states", a brand that was not reflected in their very different views on Russia.

"We need Russia, so in our relationship, patience is the word" - Petras Vaitiekunas, Lithuanian Foreign Minister

Trying to strike a balance, the Latvian Foreign Minister Artis Pabriks first payed his tribute to the role of the US in the Baltic states' quest for freedom:

"All our achievements, in our economies, but also on a personal and professional level, could not have been accomplished if we weren't free countries. During the Soviet occupation, we used every opportunity to listen to Radio Free Europe, despite the Russian scrambling, and we really believed that one day we will be free countries." 

But talking about the Latvian relationship to Russia, Pabriks said that "this relationship shouldn't be a prisoner of the past".

Latvia just recently ratified a border-treaty with Russia, and the Foreign Minister proudly announced that his Russian counterpart Sergei Lavrov promised to visit Riga, Latvia's capital, soon.  Of the three Baltic states, Latvia should be considered the occupier of the middle ground with respect to how they view Russia.

A tougher stance came from Urmas Paet, the Estonian Foreign Minister, who was much more outspoken and than his Slavic counterparts.

"Russia is building up its foreign policy through confrontation with the US & EU, and through confrontations with its neighbors and the new democracies surrounding it." 

The recent row with Russia over the displacement of a Soviet statue and the following cyber-attacks against Estonian websites prompted the government in Tallinn, Estonia's capital, to take a firm stance against the Kremlin: Estonia successfully pushed to expand NATO powers onto the Internet.

"We experienced three weeks of cyber attacks, with 400 times greater traffic than normal, aimed to completely paralyze our country. The Internet has become the battlefield of the 21st century. It is possible to inflict serious damage in highly digitalized societies, just like a regular attack on conventional infrastructures", explained Paet.

The Estonian Foreign Minister requested that a "legal definition of cyber warefare" be formulated as soon as possible and announced the upcoming opening of a "cyber defense center" in Tallinn. 

Daniel Fried, Assistant Secretary of State for European and Eurasian Affairs,  confirmed the fact that "NATO is already working on the technical cooperation"  regarding  "these unconventional threats: Using energy for political aims, cyber attacks or financial pressure", obviously alluding to Russia's new power policies.

"Russia's policy is to surround these countries, to encircle them. The EU is very many things, but certainly not a conquering imperialist force. And isn't it in Russia's best interest to be surrounded by democracies? Russia should have learned from its experience that it is not democracies who pose a threat, but totalitarian regimes and dictatorships." - Daniel Fried, Assistant Secretary of State

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The New European

German Defense minister Franz Josef Jung pleaded for the US anti-missile defense shield Poland and the Czech Republic agreed to place on their territory, This decision caused sharp criticism from Russia and subsequently made the EU High Representative for Foreign and Security Policy, Javier Solana, to propose "debating" and maybe limiting the national sovereignty of member states in this regard. But Jung expressed the view that facing new threats form "rogue states" (without naming them), the EU should act preventively, thus justifying the setting up of this defense shield: 

Mr Jung also alluded to Iran's announcement that it can develop uranium on an industrial scale. "Precisely these latest developments also confirm that such protection makes sense",Mr Jung said this week.

"Timely precautions must be taken against the foreseeable increase of the range of offensive missiles of certain problem states, even if it concerns long-term developments," he added.

Jung stressed the fact that the only way to "soothe" Russia's "worries" is to have a common voice within NATO and to back the argument that the shield is meant to PROTECT, not to ATTACK:

"I think it is good that in NATO, as with the NATO-Russia council, we are working together to assuage possible doubts".

Although Jung has voiced support for the US scheme, it is not a view that is universally backed within the German cabinet.

But he did insist it was important for the West "to work on a partnership basis with Russia" on the matter, he added.

Russia should be convinced of the argument so as "to reach an agreement for the protection of populations, for European populations in particular," he said.

Jung also told the European deputies that every possible diplomatic effort should be made "to prevent Iran from equipping itself with nuclear arms".

He added: "It is vital for world peace. The United States, Russia, Europe and China must work together."

President Putin had been very clear on one point, he continued. "It is also in Russia's interests that Iran does not possess atomic weapons."

On April 19, at NATO's Brussels headquarters, the 26 NATO allies — including 21 EU member states — will discuss the anti-missile system in the North Atlantic Council and then with Russia at a NATO-Russia meeting.

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The New European


There’s a witty editorial in the yesterday’s Wall Street Journal (requires subscription) about Angela Merkel’s totally softened policy-making. The title "Angela Schroeder" says it all, the current holder of the EU-presidency has actually more resemblance to her predecessor than to what she initially was supposed to stand for: closer US-German relations, stronger NATO involvement, "less government", cutting taxes, economic reform.

Upon assuming the presidency of the bloc in January, Ms. Merkel decided to use this rare opportunity to shape the Brussels agenda for six months to advance the softest of all soft policies: to revive the European Constitution.
(…)The EU’s real challenges are elsewhere: enlargement to the Balkans and Turkey, economic reform, the incomplete single market, terrorism, immigration, energy security to name only a few. Any of those would have proved more challenging for Ms. Merkel — and so much more beneficial for the EU.

Instead of immigration or energy security, Ms. Merkel has given in to the green obsession (despite her center-right orientation) currently so trendy in the EU: gas emission targets that are merely "PR gimmicks" - 20% by 2020 - when just 2 of the 15 old EU member states are on track to meet the Kyoto protocol. On issues like Iran, Merkel has also visibly given in to her Social-Democrat predecessors and members of cabinet. If one year ago, she was comparing Iran’s rhetoric to the Nazis, now she softened the tone and let her Foreign Minister and Schroeder’s former chief of staff do the talking. In Afghanistan, NATO is "fighting uphill" because of her refusal to move the 2700 troops out of the stable north to the more dangerous south.

The latest Merkel disappointment involves American plans to expand its missile defense shield. Poland and the Czech Republic are in talks with Washington to install radar and missile sites to better protect the U.S. and Europe against an Iranian missile attack. To stir up nationalist furies at home and pressure the Poles and Czechs, Vladimir Putin lashed out against the missile plan, knowing full well this limited system could never put a dent in Russia’s own nuclear threat. Germany’s foreign minister immediately rushed to the defense — of the Kremlin. Mr. Steinmeier accused the U.S. of supposedly failing to inform Russia about the missile plans.
Ms. Merkel could have set her foreign minister straight for resuscitating the Schröder-style coddling of Moscow. But she, who grew up in East Germany, only seconded him. Ahead of a trip to Warsaw last week, the chancellor said, "We, and I will say it in Poland, prefer a solution within NATO and also an open discussion with Russia about it." The Germans aren’t so concerned with NATO cohesion in Afghanistan. In this case, the countries directly involved are the ones to decide.

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The New European

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