La vague verte qui nous fera couler à pic!

Caring about protecting the environment does not mean accepting the fiscal onslaught being prepared by "enlightened-greened politicians" guided by "repainted-green ideologues" (Leader of Europe Ecologie, "Danny-le-Rouge" Cohn-Bendit....).

Dr. Garello comments on what he calls the "fiscal tsunami" being triggered by the green political wave. A wave sweeping now across Europe and certainly across France where the Europe Ecologie party came third (16.28%) in the European elections just behind the Socialist Party (16.48%). 400€ billion are needed to launch what the French government has labelled "the green growth" (croissance verte). With the rise of the "green political wave", it's time for reckoning.... And that means new taxation!

La vague verte et tsunami fiscal : 400 milliards pour la croissance verte (Publié le 17 juin 2009, article extrait du site irefeurope.org)
The most immediate and tangible consequence of the green wave will be to trigger a fiscal tsunami. The fosil energies tax and the overtaxation of polluting foreign products are coming. A good deal for the taxman and a disaster for enterprises and consumers. Below a commentary by Jacques Garello, administrator of the Institut de Recherches Economiques et Fiscales.

Dès la conclusion du Grenelle de l’environnement on savait qu’il faudrait trouver quelque part le financement des 400 milliards d’euros que Jean Louis Borloo a promis pour organiser la « croissance verte » (une promesse renouvelée au soir des élections). Les choses se précipitent, et grâce au succès électoral des thèses écologistes, on en vient maintenant à l’heure de vérité avec deux initiatives majeures : la taxe sur les énergies fossiles et la taxe européenne anti-pollution.

Taxe sur les énergies fossiles: Son principe doit être voté par le Parlement au cours de la session actuelle. Elle ne supprimera pas la taxe carbone qui concerne déjà les « grandes sociétés » qui utilisent des énergies fossiles. Elle frappera toutes les entreprises qui utilisent des énergies traditionnelles, non renouvelables : charbon, pétrole, gaz, essence. Le cas de l’électricité est en suspens, car il faudrait savoir si elle est d’origine nucléaire, thermique, ou hydraulique – en attendant l’électricité des éoliennes dont on sait en haut lieu qu’elle se substituera bien vite (au cours du 22ème siècle) à toutes les autres.

Premier avantage de cette innovation : les produits de cet impôt viendront à point nommé combler les pertes subies par le Trésor public du fait de la suppression annoncée de la taxe proportionnelle. Bercy respire : on a trouvé un impôt de substitution. Deuxième avantage : comme les entreprises seront tentées de répercuter la facture énergétique grossie par l’impôt sur la masse des consommateurs, ceux-ci vont voir leur pouvoir d’achat diminuer. Les coûts du transport et du chauffage, mais aussi de tout ce que les diverses entreprises produisent vont en effet augmenter et grever le budget des ménages. Qu’à cela ne tienne : le gouvernement versera une allocation aux ménages à faible revenu, et seuls les riches paieront, ce qui est d’une part très social, d’autre part très logique et très simple : après avoir pris de l’argent aux Français on le leur rend.
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Taxe anti-pollution: Les produits en provenance des pays étrangers qui font du dumping écologique seront taxés pour rétablir une concurrence équitable avec les produits français qui, eux, sont non polluants ou moins polluants, grâce aux efforts incessants menés par notre administration et notre fiscalité. A la différence de la précédente, l’idée n’est pas nouvelle puisqu’elle avait été lancée aux Etats-Unis, pour freiner les importations en provenance du Mexique, pays échappant à la rigoureuse réglementation américaine en matière d’environnement. C’est cependant une taxe que les Français auront du mal à faire passer au niveau européen, surtout avec la nouvelle majorité au Parlement.

Va-t-on s’arrêter en si bon chemin ? Le Grenelle de la Mer peut sans doute apporter quelque nouvelle innovation fiscale. D’autre part, Michel Rocard est nommé à la tête d’un groupe « d’experts » pour étudier les principes et les effets d’une fiscalité verte. Un mauvais présage : l’inventeur de la CSG l’avait à l’époque présentée comme une très faible et très passagère « contribution ». En France on a de moins en moins d’impôts et de plus en plus de contributions. L’impôt est haïssable, mais quel honneur et quel plaisir de contribuer volontairement !

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For an incisive analysis of "the new offensive of the ideologues", read Ivan Rioufol's Bloc-notes in Le Figaro.

On the "inconvenient truth" that a politically driven green economy will do more harm to employment than good, read this article by George F. Will (Washington Post) and the report by Spanish economist Gabriel Calzada Alvarez.

Branle-bas de combat!

Divine intervention to save the Lisbon Treaty?

Who needs votes when the gods are on your side? Well, as if EU policy and decision-making mechanisms weren't already complex and confusing enough, it looks like religious leaders have joined in the EU political debate. Indeed the Lisbon Treaty introduces a "stronger consultative role for European religions in EU policy making" (statement made by the President of the EU Parliament at the inter-faith meeting he chaired in Brussels on 11 May). Co-chair European Commission President Jose Barroso added that this treaty provision would positively advance the freedom of religion or non-religion. Really?

In the Daily Telegraph, Bruno Waterfield questions this latest move by the EU leadership.

Why European institutions should be concerned with the divine when reviewing the fishing policy, discussing safety standards for toys or preparing legislation on the regulation of hedge funds is indeed difficult to fathom. Be it as it may, politics and faith are again being mixed and this time round, backed up by a legally enforceable right under the Lisbon Treaty. The introduction of religion into the EU public sphere is worrying. Historically, conflicts have been fueled on this explosive cocktail. So what is the political elite thinking? Are eurocrats and religious leaders ganging up to try and impose on us, the misguided flock, their revealed wisdoms? After more earthly fear mongering of economic and political doomsday, the message going out to the faithful (Irish in particular) is equally sinistre: "do not question (just ratify) the Lisbon Treaty. Or face eternal damnation".

Let us for a moment venture in the realm of legal fantasy. What if this yet-to-be-ratified-treaty opened a legal loophole for the introduction of a "common spiritual welfare policy" of sort? It is all too easy to imagine what would come next. Bureaucratisation with the establishment of a new Directorat Général (DG-DIVINE), the anointment of euro-priest-ocrats (naturally not answerable to the EU flock but their own gods), blessed subsidies and, of course, enlightened lobbies. Non-compliance with sacred rules would see you sentenced to hell...

On planet earth-EU now, punishment takes the form of ever-expanding EU exclusive competences. And more legislation. What this means at the end of the day, is more intrusion into the "private" sphere, i.e. less liberty for all.

To conclude on a point of public finance, the 2009 campaign has revealed that no expenses would be spared to guide from above. Quite literally. From the International Space Station, the Belgium astronaut propelled into orbit for the European Space Agency on a Russian rocket sent his "personal" - DG-COMM would like us to believe - election message to the EU flock below. Arguably the most expensive 2009 campaign spot... For free here.

Looking at the elections turnout (record low of 43%), the EU flock remained unimpressed (or just not interested) and chose not to flock to the polling stations. It is time for a rethink. Until then (...) and while analysts dissect the results of this electoral fiasco, some comic relief...

Mr. Beans' take on ze EU hell....

EU elections: there is always time to scream!

Letter to the editor of the Japan Times sent on 12 May 2009:

Explaining the European Union to its citizens: a way forward.

The article « EU looks outward to create a better world” (May 11, 2009) was informative. I was pleased to read that diplomats from Member States’ embassies spare some time to explain the Union to Japanese school kids ("the EU comes to your school" project). Delightful.

How about starting a similar project targetting European citizens living in Japan? There is certainly a lot of explaining to do in the run-up to the parliamentary elections if turnout rates are to improve on the poor results of 2004 (45.47%). The latest opinion polls are hardly cause for optimism.

In 2009, the EU is unquestionably an economic giant but its standing as a showcase for democracy is more questionable. As more powers are being transferred to the Parliament (EP), less citizens appear to care about voting. A lower turnout would be disastrous for the EP's legitimacy.

The European construction has always been an elite-driven project. A lot of "top down-ocracy" rather than democracy... The referenda for its Constitution/Lisbon Treaty are quite revealing in this regard. Consultation with the citizenry was only meant to yield one result: the yes-vote needed by a leadership “who knows best”. The peoples said “no” (Ireland, Holland and France). Yet politicians didn’t listen.

There is something increasingly unbearable about the “top down-ness” of democracy à la EU. And frankly speaking, the glitzy €18 million elections campaign with one the silliest commercials ever produced (There is always time to vote. And scream!), can’t do much to motivate a generally disillusioned electorate. It did nothing for me.

Actually, I am a euro-enthusiast. But with no enthusiasm for the Europe now being dictated from above. Down here in Japan, will I have time to vote come June? “Niet!”. I say it in Russian because a French "non" will get little attention....

Poking fun at euroskeptics in the 2009 campaign...

Ok. Granted. The integration of European economies in the wake of WWII has brought peace, and it's fair to say that in itself, 50 years of peaceful coexistence is a tremendous achievement. The history of Europe is one of never ending feuds between nations. The question is whether the kind of centralised, bureaucratic Europe being built now is not undermining the ideal of a freer European space where citzens can shape their future, rather than it being shaped from above by "know-best-ocrats"!

On 04th June, other eurocitizens will choose too.

Free trade therapy in Hong Kong

Bailouts, regulations, stimulus package, plan de relance économique, subsidies, protectionism, boss snatching, green revolution prophecy, recession, new deals, état sauveur... Feeling depressed? In need a break perhaps? Come to Hong Kong for therapy.

From barren rock to international trade hub, from British colony to PRC's Special Administrative Region.... Hong Kong's history in a nutshell with a skyline bearing testimony to the extraordinary transformative power of free trade.

Walk its bustling avenues. From the heights of Peak, enjoy the view of the city and its busy waters.. The nautical ballet of mighty container ships and splashing sampans. The forest of soaring skyscrapers clad in bamboo scaffolding. Let yourself be swept by the frisson of capitalism....

Selling noodles, buying shares... Up in the International Financial Centre tower, the stock market. Down on the streets, the food and stuff markets. For Western tourists, antics markets well stocked in Chairman Mao memorabilia. On the other side of the border, the motherland joining the market and catching up fast.

Everywhere The Free Market at work doing its magic of wealth creation.

Exalting, therapeutic. And soothing! So visit. Let the extraordinary energy of the city fill you with optimism about the future.... Free trade therapy. Not cheap but effective! Doing something to protect the freedom to trade helps too. Sign up!

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According to the Heritage Foundation economic freedom index, Hong Kong ranks first. Let us hope it stay there.

For more on tax competion as a liberalising force in the world economy, a brief lesson on taxation and why tax havens should be celebrated (more in the WSJ Europe) Cato Scholar Daniel J. Mitchell explains...

Let them eat cake. Or dump tea...

I remember very well learning about the 1773 Boston Tea Party in my American history class in high school. It captured my imagination. Freedom fighters boarding a ship disguised as indians to dump tea in Boston harbour. Gripping! What it was too was a protest against unfair taxation by the British Crown. The Tea Act which granted tax free priviledges to the royal chartered British East India Company was the last straw. To show that measures against free trade would no longer be tolerated, 10,000 £ worth of tea ended up floating in the water. Symbolic and momentous... Then came the American revolution. And change.

The 2009 Tea Parties refer to the gathering of thousands of American citizens across the country to protest against the expansion of government under the current administration (on the tea party in Kansas). Symbolically tea bags were dumped in water (buckets, garbage cans.... ). According to journalist Andrew Klavan, US mainstream media has mostly chosen to ridicule the whole affair. But he thinks this could be more than a "joke". In fact the start of something big. In this article, he puts the Tea Parties in their rightful historical and constitutional context:
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"James Madison, in the famous Federalist #10, said it was the “first object of government” to protect those “diverse faculties of men, from which the rights of property originate,” and from which also originate “the possession of different degrees and kinds of property.” He warned that these faculties and these rights were in danger when what the Founders called “a majority faction” took over government. The Constitution, Madison said, was intended to help prevent such majority factions from working for “a rage for paper money, for an abolition of debts, for an equal division of property, or for any other improper or wicked project.”.....

Commenting on the media and Democrat Party's attitude towards this grassroots movement Klavan says that "It is that voice—Madison’s voice, and the Constitution’s—with which the protestors spoke on Tax Day, and which the Democrats and the mainstream press have dismissed with such contempt." This "let them dump tea" attitude reminded me of the "let them eat cake" attitude exhibited by the royal court in Versailles. An entirely different context but a similar thread... Contempt, something big. And then change.

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"Qu'ils mangent de la brioche" (eat cake in English) said Marie Antoinette, Louis XIV's consort. I do whenever I can find this délice de la boulangerie française.

"Ich bin ein Overland Park (Kansas) tea party-goer" says Ze Ronin. On the left ze brioche achetée et mangée à Tokyo with a cup of hot water in which a tea bag was dumped...

Beware the cult of Bo

Yes he can (I mean President Obama) express an opinion on EU foreign policy. Can anyone seriously suggest that America does not have an interest in the "geopolitical health" of the EU? The French President seems to (for more on the Turkey-EU remark and political storm). The American President's reply hit the nail though. Hadn't European leaders not liberally been commenting on US policy? Right on Monsieur le Président! How Europe treats Turkey will impact the USA and what goes on in Wall Street or in DC matters to Europe. US politics impact our lives in more ways than we care to think. Recently, I have been impacted by Obamania.
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Reading Gene Healy's excellent book The Cult of the Presidency, America's Dangerous Devotion to Executive Power has been most enlightening. He argues that the Bush years had created a resurgence of "Imperial Presidency". Well, something a French citizen can perfectly relate to. France has a presidential system granting extensive executive powers to the president. Caricaturists often portray our presidents - not surprisingly - as kings or emperors (see February post "Yo c'est qui le roi?).

The US president wrote American history and seems like a nice person. American voters will be the judge of his policies. We can only hope for the best.... But when the cult of the presidency combines with a personality cult of unprecedented scope (read "Beware the cult of Obama"), no matter how cool President Obama may be, we in the old "ringardisée" (rendered uncool) Europe have reasons to be concerned too. And with all due respect, to express an opinion.

Indeed after President Obama's town hall meeting in Strasbourg, a 17 year old French lycéen confided to the magazine La Croix that "Son charisme est impressionnant, il rayonne. On a la chair de poule quand on l’entend, on est vraiment hypnotisé" - His charisma is impressive, he radiates light. It makes you shiver when you listen. You are like hypnotised.... The Obama cult only an American problem?

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There are no statistics on whether his visit has given rise to lurid sexual fantasies amongst European women as is apparently the case in the USA (ref. "Beware" article) but the press frenzy surounding his visit (and the first lady's dresses) is certainly testimony to the Obamania and cultishness currently gripping Europe.

In Tokyo the face of the American brother is visible. Not conspicuously so but it pops up on a T-shirt in a line, a badge on a backpack, shelves in bookstores... Cults have shrines. The fishing village of Obama is hoping for pilgrimage status. Its souvenirs shop is already well stocked in Obama featured chopsticks.... I found an altar of sort in a Shinjuku bookstore. A new English teaching method was launched late last year. Essentially a "yes you can" teach yourself English by learning Obama's speeches (Obama speak?)

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Notre première dame Carla Bruni no longer makes fontpage world news (no statistics on fantasies either but plenty of comments from French males). Madame Obama does. Yet just when the "Obamas go to Europe" buzz had abated a little, that it looked like we were going to get a break.... entered a new character in the thickening politico-pop culture plot: Bo le premier chiot (the first puppy)! Cute I thought for a moment. Then I come across this picture and decide it's time to speak out.

.Beware the cult of Bo!

PS: French singer Bo Frenchy (oui "Bo" comme le premier chiot et "Frenchy" as in French) got inspired by it all. So he wrote a song: "I wanna be your dog Barack". Funny. Or maybe just barking mad....

The unbearable top down-ness of European democracy. And the Irish Robin Hood.

To vote or not to vote in the upcoming European Parliament’s elections….

Voters’ interest is once again very low (e.g.: in France source LH2) so the EU Parliament launches a glitzy €18 million elections campaign :"European elections, it's your choice". It may be so but the real question is: does it matter if we vote?

Truth be told, “le machin européen" to paraphrase Charles de Gaulle, is running "itself” just fine without people having a real say (voters turnout in 2004 dropped to 45.47%). As ever more powers are being transferred to the EU Parliament (even more under the European Constitution/Lisbon Treaty), the issue of legitimacy is getting hotter. Or it is just hot air? Valéry Giscard d’Estaing, the former French president and architect of the constitution on which the treaty is based, said “public opinion will be led to adopt, without knowing it, the proposals that we dare not present to them directly”. Enters the Irish-voters-who-dare-say NO (53.4%) in the referendum of June 2008 (yes-vote 46.6%) ...

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"We are not sheep"

Our political elites are no longer amused and many view this expression of sovereign will as an "inconvenience”, an "obstacle" that must be overcome. The post-ballot message from the EU top sounded like "thou shall vote YES for we know best." Essentially a rethink is out of the question even though the message from the EU bottom is quite clear: citizens are apprehensive, disillusioned and also fed up of being patronized by politicians. Given a chance, the populace rebels by exercising its democratic right to say NO. But even after the translation into the EU official languages (the other 22), the leadership “didn’t get it”. A Russian NIET might have got more attention…

To my mind, the Irish no-voters have become the Robin Hoods of the EU forest. The rebellion had the merit of bringing to light the real nature of the EU democratic process, i.e. consultation of the citizenry is only meant to yield a YES-result. Referenda or elections shouldn’t question let alone stop the momentum engineered from above. Hence begging the question of whether the ideal of a free Europe where citizens can shape their own future isn't slowly being replaced by an ideology tolerating no dissent. If there is no doubt that the Parliament has a few good men and women fighting to do the right thing - while shuttling between their country, Brussels and Strasbourg -, the sad fact that national parties tend not to pick the best (not to mention the recycling of the old like Libertas is doing for its pan-European campaign), does not abode well for the future (for more see Européennes, le PS fait le choix de la médiocrité).

While citizens - rebellious or not - are cutting on their spending to weather the global economic storm, Members of the European Parliament are discussing plans for a new multi-million euro aqua gym/sport centre (according to the Daily Telegraph €8.1m - the EU Parliament hits back and says only €4.1m). Should this rather unclear proposal turn into reality - in whatever shape or cost, it most certainly will -, the thought of healthier, more relaxed parlementarians would hardly be comforting to the struggling EU citizen-taxpayers. A referendum on the issue is unlikely but somehow it is easy to imagine our elected representatives in grand aquatic isolation pondering about the most bearable wellness "top-down" democracy can bring them. See the Times on how MEPs make millions...

Thank you Ireland for being the voice of reason, for keeping alive the hope of a freer, more accountable and democratic Europe ! And on the occasion of your National Day, Happy St. Patrick!