olivier védrine

The European Union Energy Policies:

The energy policy of the EU is based on concerns about security of supply, investment in infrastructure, ecological damage and the unequal access to energy by the world population. The consumption of energy will continue to grow rapidly with fossil fuels continuing to dominate the energy mix. Consumption of energy by developing countries is approaching that of the OECD countries.

Efforts made through new energy policies and the use of cleaner technologies will provide some energy savings and encourage the use of low carbon emitting fuels. The automotive industry is already investing in areas of research concerned with these new policy objectives. The OECD reports that such applications could lead to the stabilization of greenhouse gas emissions in OECD countries by 2030.

The EU for sees an energy policy that takes into account different national considerations. Among the proposals from the European Commission, is the complete opening up of the market, policies strengthening foreign relations and taking steps in the direction of renewable energy. However there are still differences about the choices of energy especially in the area of nuclear energy. The European Commission proposes different options in order to put together an internal EU energy policy:

• Ending the internal market for gas and electricity. A European energy regulator could be established to discuss issues relating to cross-border distribution of electricity and to define a common network code;

• Strengthen solidarity between member states when energy supplies are under threat or experiencing difficulties. This could be done through the build up of gas reserves in addition to existing oil reserves, already mandatory under European law;

• Diversify the energy mix of the EU, while respecting diverging national energy policies. A regular strategic analysis of the EU energy policy would show the impact of national energy policies on other European countries. This process could provide the basis for creating common remedial measures in the case of conflict;

• Regarding the rising temperatures caused by global warming and subsequent climate change, a new road map on renewable energy is proposed;

• A strategic plan is needed regarding new technologies in the energy field to ensure European Industrial domination of this market;

• A common foreign policy is required on the issue of energy, to coordinate suppliers such as OPEC and Russia. This policy would include a list of new pipelines and terminals for liquefied natural gas (LNG), in order to improve security of energy supply. A revision of the energy dialogue between Russia and the EU should include the rapid signing by Russia of the Charter Treaty on Energy, an international convention which was a leading topic during the gas conflict between Russia and Ukraine in January 2006.

An energy policy is needed to define relations between the EU and ex-soviet states such as Azerbaijan, Kazakhstan and Turkmenistan. This will improve their independence and secure new sources of energy for the EU.

The role of Russia in the world energy markets defines to a large extent its geopolitical influence. In this perspective, the oil and gas sector are more than ever before, instruments of internal and foreign policy. They complement or replace nuclear arms, the legacy of the cold war era. The gas company Gazprom, is a selected player in Russian foreign policy in the post cold war era and has become the third largest enterprise of the world. Gazprom’s dreams of dominance upset the Europeans especially since the company obtained a share in the market supplying gas to Western countries. Its desire to own and control the whole energy chain, from production to distribution is worrying. Certain contradictions are irritating: Whilst claiming to be great believers in the “market” in Europe, its leaders do not appear to be in a hurry to apply these principles at home. In other words, they refuse to allow the West to invest in the production and delivery of resources in Russia.

Russia supplies about 44% of Europe’s gas imports and 25% of its total gas consumption. The countries most dependent on supplies from Gazprom relative to their total gas consumption are: Slovakia (100%), Finland (100%), Greece (86.8%), The Czech Republic (80.8%), Austria (73.4%), Hungary (63.4%), Poland (50.2%) and Germany (44.9%). France with 26.8% is slightly below the EU average. Turkey and Switzerland are at 28.3%.

Russia is the main external supplier of oil to the EU, representing 30% of total imports( 27% of total consumption). These percentages are expected to increase as reserves of North Sea oil diminish. The EU summit with Russia in Paris in October 2000 saw the launch of the bilateral energy dialogue aimed at securing access to Russia’s massive oil and gas reserves (one third of global gas reserves are in Russia). This dialogue was based on the assumption that regional interdependence would grow over time: the EU, for reasons of security of supply and Russia in order to secure foreign investment and facilitate access to European and international markets (exports to the EU represent more than half of the value of total Russian exports).

It seems clear that the issue of energy supplies has become a major concern to the EU, especially the need to diversify its energy routes.

Since securing energy supplies involves diversification of suppliers and supply routes into the EU, it affects the external relations of the EU. For this reason, the European Commission has attached great importance to energy in the development of the European Neighbourhood Policy (ENP). In May 2003 it published a communication to the European Council and European Parliament about the development of an energy policy with the neighbours and partners of the enlarged EU.

This paper presents the steps the EU should take to achieve the creation of a large integrated European market for gas and electricity based on common rules and principles. The development of new oil and gas infrastructure as well as the harmonization and technical interoperability of national gas and electricity networks plays a crucial role. According to this communication, the EU should invest heavily in these areas. There are some neighbouring countries that have a significantly greater importance in the securing of energy supplies to the EU and these are the signatories of the Eastern Partnership agreement of the summer of 2009.

For the European Commission, the inclusion of the energy guidelines in the European Neighbourhood policy is fundamental to the stability and prosperity of the European Union.

One of the regions which is of growing interest to the EU as a huge potential source of energy is the Caspian Sea. Given the sensitive geographical situation of this area, the Commission is emphasising the importance of securing the delivery routes of the energy resources. The control of transit routes for oil and gas is vital for the security of energy supplies to the EU and also for the economic, social and political development of the Caspian Sea region. In this context, planning alternative energy routes through Iran and Turkey is as important as securing the existing routes through Russia.

The Commission proposes making full use of aid programs provided within the European Neighbourhood Policy to help develop economic activity in the energy sectors of the Caspian Sea region. The EU could participate in the financing of projects through the European Investment Bank. In addition, it proposes launching discussions with countries in the region on energy cooperation and economic development with the aim of making the region more attractive to European investors. These discussions seek to reduce potential risks, commercial and political, which could be triggered by projects related to these new sources of supply, such as the construction of the Nabucco pipeline. This forms part of the objectives of the above mentioned Eastern partnership.

These wide ranging analyses underline the importance of the provision of academic training to meet these challenges.

MANAGEMENT MBA IN ENERGY AND SUSTAINABLE DEVELOPMENT

Fossil fuels have shaped modern society and have enabled us to enjoy an unprecedented level of development. In the coming decades, fossil fuels will remain important drivers and factors for economic growth. However it is imperative that we begin the transition to renewable energy sources that is essential for a viable future on this planet. The investment in the diverse areas of renewable energy will create sustainable growth, employment and wealth.

Based on this observation, IPAG Paris and the Khazar University of Baku have decided to unite their efforts to create an MBA “Energy and Sustainable Development”.

This MBA aims to give future leaders an understanding of current and future energy issues from an economic, political, geopolitical and environmental viewpoint. By enabling them to anticipate the future they will be in a position to act appropriately.

The MBA program will focus on four main areas:

- The world of oil and gas

- International relations in the energy market

- Risk analysis and financial analysis of the energy market and its projects.

- Environmental issues

You can view the brochure at this internet link.

With sincere regards,

Olivier VEDRINE

Programme Manager

Russia is indeed a european country

Russia is the biggest country in the world stretching over 9,000 kilometres and with a surface area 35 times that of France (17 million square kilometres).  Russia has an unmatched wealth of natural resources and a population of over 140 million (eighth most populated country in world rankings).  These parameters alone make it a major player on the international geopolitical scene.

73% of the population live in urban areas and 80% of these inhabitants live to the west of the Ural mountain chain and consequently in Europe.  Russia boasts one of the best literacy rates in the world (99.5% in 1999) and despite the many ethnic groups speaking more than 70 dialects, most inhabitants are bi-lingual.  The fact that Russia is a federation allows it to manage the diverse ethnic groups spread over the vast area of the country. The population is young with 75% under the age of 45, however the death rate currently exceeds the birth rate despite policies introduced which favour the young.

The climate in Russia is subject to extremes between summer and winter months resulting in an average annual temperature of minus 5.5°C. The seasons of spring and autumn are almost non-existent.  The lowest recorded temperature of minus 70°C was taken in the town of Verkhoiansk and the average winter temperature hovers at around minus 25°C. Average summer temperatures vary between 20°C in the north and 38°C in the south. 

The climate has a direct influence on lifestyle and economic activity.  In some areas, the permafrost, which means that the soil sub-strata never de-frosts, creates financial and technical constraints for the construction and petroleum extraction industry.  

Since the break up of the USSR in 1990, Russia has had to face two major challenges: the transition from a closed Soviet economy to a liberal capitalist economy and to the acceptance of an economy ruled by the market resulting from supply and demand.

Russia is a member of the G8 group of industrialized countries with its economy ranking eleventh in the world according to the World Bank statistics of 2007.

Russia experienced an average growth in GDP of 6.8% from 1999 to 2004(after a financial crisis in 1998).  However its economic performance is based largely on the success of its natural resource industries, especially oil and gas.  This has led to the company Gazprom becoming a key element in Russian foreign policy.

90% of Russian oil is extracted from two major basins: Western Siberia (Tyumen area, 2144 kilometres east of Moscow) and the Volga-Ural (the Samara region, 860 kilometres south-east of Moscow and the autonomous Republic of Tatarstan).

Russia is classified as an emerging market but it qualifies as a special case for various reasons:

Firstly, it is the only country in this category not to be a newly industrialised country: for much of the 20th century it was the ideological and industrial heart of the military superpower, the USSR.

Secondly, it is a country which makes up a part of continental Europe. The capital city Moscow is situated before the Ural mountain range and it shares a common history with other European countries. 

Thirdly, Russia, unlike other emerging market economies, has an ageing population in common with its European neighbours. This decline will soon become a problematic issue when considering the growing Chinese presence in Eastern Siberia.

Politically, Russia is governed by a democratically elected government with a semi-presidential system.  The president and the prime-minister both have important roles regarding domestic decision making and in foreign policy.

For many reasons, often unjustifiable, Russia instils fear in Western countries, who would like to see this newly democratized country behaving according to the political norms of the old democracies of Western Europe.  We must beware of making ethnically based political judgments of third countries. In the case of Russia, the trials and tribulations of the past 20 years appear to have been forgotten.  The end of the USSR brought anarchy and the collapse of Russian influence in the Yeltsin years, a fall in living standards and demographic decline. A new state was created with the election of President Putin heralding a successful return to the international political scene (G8 membership) and real economic success (several years of high economic growth).  We must leave it for the Russians themselves to choose their path to democracy and the time to develop their own democratic model.  None of the old Western democratic models can be transferred from one state to another. Just imagine imposing French style democracy on the British and vice versa.  Russian democracy is targeted repeatedly by Western media, often demonstrating ignorance of Russian history and culture.  

This lack of comprehension leads to misunderstandings which can only be negative for Europe as a whole and could lead to a new political barrier running across the heart of Europe.  In these times of global geopolitical uncertainty we do not need new divisions in Europe but a tightening of the ranks behind a united front!

The history of Russia began in the 9th century in an area shared today by Ukraine, Belarus, and Western Russia. It was the time of the Kievan Rus’, founded by the Varangians, Vikings who came from Scandinavia and who were ruled by the Rurik dynasty. The Kievan Rus’ ruled over a federated state of oriental tribes with slave status.  In 988 AD, the Grand Prince Vladimir converted to Orthodox Christianity, the religion of the Byzantine Empire. Orthodoxy became the state religion and a major factor in maintaining Russian national unity. The thirteenth century Mongol-Tatar invasion put an end to the Kievan Rus’ and began the State of the Golden Horde. This state was founded by the Mongols in the south of the Volga and all the defeated Russian Principalities were forced to pay tribute and recognize Mongol Sovereignty which lasted for three centuries. Russia considers, certainly rightly, that its suffering and sacrifice under Mongol rule saved Europe from the Tatar- Mongol Yoke of servitude and allowed Western Europe to enjoy freedom and prosperity giving it the history it has today.

From the 13th to the 16th centuries, one Russian Principality, Muscovy, whose Capital was Moscow, took the lead in the revolt against the Mongols and created Russia.  This marked the beginning of the end of Mongol rule and the integration of the independent Russian principalities of Novgorod in 1478 and Pskov city-state in 1510.

Ivan IV also called Ivan the Terrible was the first prince to call himself Tsar seizing the remaining Mongolian kingdoms and extending the territory of Russia to the East without any obstacle.  Ivan IV considered himself to be the sole heir of Prince Vladimir.

Troubled times followed the end of the dynasty of the descendents of Rurik (dating from the Varangian Princes), until the creation of the Romanov dynasty in 1613. An era of great rulers followed: Peter the Great (1685-1725) who founded St Petersburg and declared it the new capital in 1712, symbolizing the openness of Russia to Europe.  Catherine II (1762-1796) called Catherine the Great, enlightened autocrat, patron of the arts, literature and education (based on the Encyclopaedia of Diderot and Alembert). She corresponded with Voltaire and invited Diderot to the royal Court. The Russian nobility became westernized through the influence of German philosophers and the French language. Some were enthusiastic about the ideas of the era of Enlightenment and even by the French Revolution. 

Russia entered the 19th century as a great powerful nation thanks to the reign of Alexander 1st who played an important role in the Napoleonic wars and the Holy Alliance.  Alexander II (1818-1881) also referred to as Alexander the Liberator, attempted to reform Russian society by proposing changes to the constitution in order to bring about the abolition of serfdom, reform to the judicial system and the laws of censorship, changes to the electoral system and even the military. He was assassinated for his efforts on the 13th March 1881 before he had realized his dreams. Alexander III ascended to the throne following the assassination of his father and led a series of contra-reforms in reaction to his fathers` violent death.  During his reign, industrialization of Russia grew rapidly thanks to foreign investment and the expansion of the rail network to over 30000 kilometres of track by 1890.  Russia continued to expand its sphere of influence covering China and Korea right up to Japan.

The defeat suffered by Russia in the war against Japan triggered the first Russian revolution in 1905.  Nicholas II (1868-1918) who became Tsar in 1894 was obliged to seek other opportunities for expansion of its sphere of influence.

Russia entered the war against Germany and the Austro-Hungarian Empire in 1914 in defence of its Serbian ally.  The Russian forces attacked Eastern Poland and suffered humiliating defeat.  Social unrest erupted in February 1917 leading to the abdication of Tsar Nicholas II and the declaration of a Russian republic.  The October Revolution triggered by the Bolshevik political party on the 25th October 1917 led to the execution of the Royal family on the 17th July 1918 at Yekaterinburg.  A civil war between the Bolsheviks and the White Russians (Republicans or Monarchists) lasting three years ended with victory for the Bolsheviks on the 22 December 1922.  The Union of Soviet Socialist Republics was established with Russia as a member state.

In the ensuing period, the USSR became a world power and one of the victors of the Second World War. With end of the war in 1945, the USSR and the USA divided the world into two powerful political spheres.  The battle of Stalin-grad (January 1943) was a key turning point in the war bringing the Soviet army to Berlin.  Europe was divided in two and the so called Iron Curtain remained in place until the fall of the Berlin Wall in 1989.  On December 21st 1991 the CPSU was dissolved by Mikhail Gorbachev and the Soviet Union collapsed.  As the main successor of the USSR, Russia has its place in International Institutions and a permanent seat at the Security Council of the United Nations.  A political and economic union, the CIS was created in 1991 in an attempt to retain ties between former members of the USSR.

The election to power of President Putin in 2000 brought about a Russian revival and a return the world political scene, after the period of political and economic collapse marked by the Yeltsin years.

Today we see Russia re-instated as a great nation participating in international decision making and an important player in geopolitics. 

During the 1990`s, the West was judged to have hurt the feelings of the Russian people by underestimating them as a nation.  With the arrival of Putin in 2000 a deep distrust developed towards the European Union mostly as a result of the “Colour Revolutions” and the ensuing encroachment on the traditional Russian sphere of influence.  Before this time, the Kremlin had been seeking an arrangement with the EU to counter American influence in Europe especially concerning the missile shield project, which had served to deepen the humiliation felt by Russia after the collapse of the Warsaw pact.  The limits of Russian tolerance were reached with the case of Georgia and Ossetia, where the Georgian President Saakachvili was under the illusion that he could act with impunity due to alleged re-assurances of support from third countries.  The Russian response was rapid and meant to send an unequivocal warning to the USA and to certain European countries.  Russian emerged from this political crisis with its place in the Caucasus firmly repositioned and its political role as the dominant player in the area reaffirmed.  It is without any doubt the first combined military and political success story for Russia since the collapse of the USSR.

If we wish to avoid a face-off between the European Union and Russia and a new rift dividing Europe, we must seek to define a mutually agreeable space to work in together. Failure to do so will weaken the influence of Europe as a player on the stage of world geopolitics and give pleasure and advantage to our political and economic competitors.

We need to work together to build a strategic partnership using a model of the project based on the four “Common areas”. Following the Saint-Petersburg Summit in May 2003, Russia and the EU made a joint declaration for the creation and establishment of four common areas relating to, Economics, freedom, justice and security, external security and research.  The road maps of the four areas were adopted at the Moscow Summit on the 10th May 2005 due to the personal involvement of the Russian President Vladimir Putin.  These were for Brussels and Moscow, real working documents, less restrictive than International treaties and brought an important political dimension to co-operation between Russia and the EU.  Whilst certain criticisms have been directed at these roadmaps, they do nonetheless serve as a starting point for the building of a truly Pan- European shared space in economic, political and cultural issues.

A Europe reflecting the vision of General Charles de Gaulle: From the Atlantic to the Ural passing through the axis of Paris-Berlin-Moscow!
 

Olivier VEDRINE

Professor at the IESEG School of Management, Catholic University of Lille.
Lecturer of the European Commission (TEAM-EUROPE France).
President of The Atlantic-Ural College.

Energy Sustainable Development Management MBA in France and Azerbaijan

Our modern societies have been shaped by fossil energies which have carried us to an unprecedented level of development. For the next decades those energies will carry on being important actors and mainsprings of the economic world. But it is necessary to start preparing an imperative transition for our future; furthermore efforts in the field of renewable energies will be leading to growth, wealth and employment

Considering these facts, the French business school IPAG and the Khazar University of Baku decided to create a new MBA dealing with energy and sustainable development management.

This MBA aims to give tomorrow’s actors the keys of a political, economical, geopolitical and environmental comprehension of the energy issues so that they will be able to anticipate the future and to act.

In order to reach this goal, the training programme is focused on four main ideas:

- The oil and gas scene

- International relations and energy markets

- Risk and financial analysis of energy market and projects

- Environmental issues.

Let’s discover the presentation brochure (see attachment).

 
Olivier VEDRINE
Head of the Programme

THE ORIENTAL PARTNERSHIP, THE GEOPOLITICAL STAKES AND AZERBAIJAN

On May 7th and 8th , the Czech presidency of the European Union was able to reunite  the key players of Eastern Europe in the hopes of reestablishing ties between the EU and its ex-Soviet Union neighbors (Armenia, Azerbaijan, Belarus, Georgia, Moldavia and Ukraine) to help reinforce their independence and assure new sources of energy supplies.  The EU is trying, on a basis of pragmatic cooperation, to maintain European presence in these countries, which has lead to speculation that it is about to encroach on the sphere of Russian strategical interests.  But appearances are deceiving.

To begin, Europe does not have a strategic global vision, and it would be wrong to view the whole new oriental partnership as an attempt to diminish Russian influence.  Two factors support this point of view:

 

-         Firstly, the EU is not yet a powerful political/military force and prefers to cooperate with Russia in the handling of crises;

-         Secondly, the economic ties between Russia and its immediate neighbors are sufficiently strong, and the latter doesn’t want to risk such a market, which absorbs their industrial and agricultural products as well as millions of migrant workers, for a project whose future is still uncertain.

 

Although certain elements of the partnership remain promising, it is a long way off from making a useful contribution to the emergence of an economic pole in geopolitical pluralism within the Commonwealth of Independent States (CIS). It is more likely destined to promote relations between the EU and its partners and reinforce their integration in different means of cooperation but at the same level of interaction as with Russia. It is more a matter of complementarity of cooperation than of competition and more about reinforced integration than membership. It is for this reason that the affected States of the ex-USSR adopt a more reasonable approach even if Ukraine still hopes for full membership pure and simple.  The greatest weakness of this partnership is in fact the lack of means for its goals and above all, its incentives in terms of membership. 

Also, the new international context, which is linked to the multilateral approach and to the more pragmatic international policy of the new Obama Administration, tends to put Russia at ease. The new president is fixed on two priorities – Iran and Afghanistan – and is looking, in contrast to his predecessor, to avoid unnecessary provocations by notably abandoning the pursuit of the new version of the containment policy. This policy is aimed at reducing Russian sway by promoting “revolutions of colors”in the ex-Soviet sphere of influence, which were considered to be “natural steps” in the strategic vision of the Kremlin. This approach seems to suit Moscow, as it would be more advantageous for it to adopt a cooperative approach under the condition that it maintains its dominant position in its old guarded domain.  Behind this point of view, one can find a point of equilibrium in the relations between Russia and the United States. For example Washington renounced its unilateral initiative of antimissile shields in favor of a common project with Moscow, in which they engage in problematic affairs, such as those found in Iran and Afghanistan. This could allow for a reconfiguration of the power struggle, and it would assure Russia that it remains the major force in that region, allowing everyone a piece of the pie. Indeed, the help that Russia could bring the Iranian question would be enormous and fundamental for regional and international security. Iran seeks to become a regional power, putting itself in competition with NATO member and EU candidate Turkey, in order to, among other things, contain the influence of the UnitedState. The first trip of Mahmoud Ahmadinejad after his reelection took him as invitee to the Shanghai Cooperation Organization (SCO) Summit in Yekaterinburg in the Ural. This organization was created in 1996 by Russia and China to be an alternative to NATO and in response to US influence in central Asia. Four central Asian countries are members, all the former Soviet republics: Kazakhstan, Kirghistan, Uzbekistan and Tajikistan. Iran holds an observer status. It is important to note, that in October 2007, the Caspian Summit in Teheran, held during the peak of the nuclear crisis, has been a success for Iran as well as for Russia.

            This agreeable arrangement with Russia could also contribute to the settlement of the Nagorno-Karabakh conflict between Armenia and Azerbaijan. Indeed, one goal of the Obama Administration is to improve the American image in the Muslim world. In this context, Turkey is an ally not to be ignored in connecting American interests of becoming a regional player in the Middle East and also in the South Caucasus. Hence the American incentives to normalize relations between Turkey and Armenia, that have been broken off in 1993 following the occupation of 20% of the territory of Azerbaijan by Armenian military forces. But this issue pre-requires diplomatic progress in finding a peaceful solution to the Nagorno-Karabakh conflict, which demands a more active role of the United States and Russia. However, the Russian motivations are different: first, by excluding such a possibility for the resolution of the Ossetian and Abkhazian conflict, Moscow continues its efforts to bring the Saakhashvili regime to its knees, again to ensure direct access to Armenia, its stronghold in the South Caucasus; then in the setting of a potential rapprochement between Turkey and Armenia, the Kremlin thinks about balancing its relations with Azerbaijan, while encouraging them to sell the bulk of its natural gas to the Russian gas giant "Gazprom", which aims to challenge the European gas pipeline "Nabucco".

            Contrary to what one might think, Azerbaijan has not attempted to use its energy weapon as a means of diplomatic pressure in the process of normalization of relations between Turkey and Armenia. But it suggested to lead the two negotiations in a single process and to push the progress in resolving the conflict over Nagorno-Karabakh towards the rapprochement between the two countries. The historical and cultural ties that bind the Turkish people to those of Azerbaijan and the popular reaction that Ankara's policy has sparked in both countries, has made the Turkish government aware that without eliminating the causes that led to the closing of the borders, no action can be taken to remedy the effects. This position has relieved Baku and “dispelled all suspicions" as declared by the President Ilham Aliyev, following the visit of the Turkish Prime Minister on May 13, 2009. Azerbaijan considers its demand legitimate due to the fact that 20% of its territories are still under Armenian occupation. It has called on Turkey and the international community as a whole to adopt a common position and to stand firm in this situation, rather than to consolidate the Armenian position at the round table negotiations demanding open borders between Turkey and Armenia.

Azerbaijan has yet to give in to Russian requests to purchase all of its gas as they are looking to ensure the security of their resource routes by diversifying the pipelines in multiple directions. This is the reason for which, in the past, they postponed the exploitation of the second phase of the Shah Deniz well, expected to produce over 16 billion cubic meters of natural gas per annum. Under the circumstances, Azerbaijan, which already exports gas to Turkey and Greece, was favorable towards the “Nabucco” pipeline project to transport the majority of its gas, although they can no longer infinitely await the Europeans. Furthermore, with its increased gas production, it is in need of markets and competitive prices which only Russia is taking the initiative to offer. During President Medvedev’s visit to Baku on the 29th of June 2009, Gazprom proceeded to sign an agreement of purchase with the Azerbaijanis state petrol company (SOCAR) concerning 500 million cubic meters of gas as of the 1st of January 2010. For Baku, this contract is based on commercial considerations with prices as high as 350 dollars per 1000 cubic meters of gas. For the moment though, the volume in question is too insignificant to be a fatal blow by depriving “Nabucco” of a reliable and vital source. In any case, the danger is not far off if the Europeans do not soon decide the fate of their projects and do not rapidly offer purchasing contracts to Azerbaijan. Wasting time could, in effect, put an end to this project. Even more so as the key actor in the region, which is Azerbaijan, constitutes a strategic transit zone for Central Asia which is among the top suppliers of “Nabucco”. Azerbaijan’s eventual change of course could incite the Central Asian countries, such as Turkmenistan and Kazakhstan, to turn to Asia instead.  Let us be reminded that after the recent explosion on the pipeline between Turkmenistan and Russia, Turkmenistan has been made more aware than even of the vulnerability of their dependence on their large neighbor to the north. It is no coincidence that Turkmenistan’s authorities have recently proposed new opportunities to western companies in the exploitation of hydro-carbons. In this colossal game, the realization of “Nabucco” does not depend on Russian opposition with their competing projects such as “South Stream”, but largely on the engagement of European partners. In this relationship, the European Union has two strategic imperatives, the first being an improved level of cooperation with Russia, which is part of Eastern Europe, and the second being the continuation of the adhesion process for Turkey. It is in the strategic, balanced position that the right path can be found to its policies and the defense of its energy interests.

 

 

Olivier VEDRINE

President of the Atlantic-Ural College

Paris, FRANCE

Lecturer of the European Commission

(TEAM EUROPE France)

 

Fazil Zeynalov                                                         

Political scientist                                             

Baku, Azerbaijan

 

This text is also available at: http://blog.multipol.org/post/2009/08/01/ANALYSE-%3A-The-Oriental-Partnership-the-Geopolitical-Stakes-and-Azerbaijan

                                                      

TECHNICAL PATHWAYS FOR A POWERFUL EUROPE:

The only way that we “the Europeans” could participate in the World Geopolitical Game would be through a re-organization of our institutions.Two goals present themselves to us: A redefinition of the functions of the European Commission and a search for a new decision making process in the Council of Ministers (The European Union Council).

The European Commissioners have an ill defined status and a poor perception from the European public (State representatives or a Supranational Government body?). All this explains the difficulties encountered in the decision making process and the competitive race between countries to install their own Commissioners on the Council. We should bear in mind that in legislative matters, the council has no autonomy from its member states.

It is imperative that the European Union Council reviews its voting methods and abolishes the principle of unanimity.

The European Commission:

The improvement of this organization would send a strong political message to all citizens of the Union. The European Commission is often considered by the citizens to be all powerful and totally disconnected from the real problems that they are meant to deal with.

The first problem is a legal one : according to article 213 of the treaty “the members of the Commission shall carry out their duties in a fully independent manner” and “each member state undertakes to respect this principle and not seek to influence members in carrying out their duties”. The fact that we are far from these grandiose expressions, is demonstrated by the race for Commissioners seats.

The second problem is institutional: article 219 of the treaty stipulates that voting should be collegial but it is taken by a simple majority. Consequently, any increase in the number of members does not create any obstacles in the decision making process. The real obstacle is the cumbersome decision making process which must be improved.

The third problem is administrative: the enlargement of the European Union to include the countries of Central and Eastern Europe begs the question of how to increase efficiency without revising the whole administrative set-up. One could propose the streamlining of the European Commission to make it work eventually as a federal Government. With a President, a Vice President and several Commissioner Ministers responsible for different portfolios. This is the ultimate goal which requires us to agree urgently on a European Constitution, despite the disastrous results in the 2005 referendum.

The Lisbon Treaty permits us to revive the idea and to provide solutions to the problems discussed above, resulting in a bigger and better Europe.

The Council of the European Union:

A major reorganization of the European Union Council with the abolition of unanimity in the voting of the 27 member states seems an obvious necessity in order to facilitate decision making.

Even if voting is often avoided, by the efforts of the Presidency of the Council, to find compromises between participants. It is extremely difficult to find an agreement between two member states who are completely opposed to each others ideas. Without the introduction of a qualified majority voting system, the situation will worsen with the arrival of each new member state into the Union. The Treaty of Lisbon allows for these “operational challenges”. The problem is clear: how can member states pass from a decision making process based on unanimity to a system of qualified majority voting where influence would be eroded and decisions taken without the approval of some states?

In the case of a simple majority vote, each state has one voice. In the case of unanimous voting, the decision is passed if there is agreement by all member states. One may ask the question about re-determining the weight allocated to member states if a qualified majority voting system were introduced. The big question would be about how many voices to allocate each member state. We can highlight the demographic criteria (already present in the current calculation) which help small states like Luxembourg, Belgium etc... In order that small states do not become second class members by the reduction of their voting weight, we should return to the principle of Democracy, that is to say : one State = one voice.

We must not lose sight of the fact that reform, with regard to qualified majority voting, should not be limited to revising the current rules of implementation but should seek to broaden the scope for change. The Europe of 27 and its recent expansion would be easier to manage.

Already, with reference to four important subjects, the question of qualified majority voting was discussed by the European Council in Féria in June 2000.

Initially with reference to a group of subjects relating to the internal organization of the European Union ( appointment of members to the court of auditors, appointment of the General Secretary of the European Union Council).

Secondly, to those areas concerning the ESDP, the drawing up of International agreements and the problem of Intellectual property rights.

The third group, concerns measures which touch upon the functioning of the internal market. (Market access and unpaid activities, taxation and social problems, problems of discrimination, double taxation and tax evasion).

Finally, there is a group of problems concerning the “Internal space“ of the European Union (The rights of citizens to circulate freely and to live in any member state, the allocation of visas, asylum and refugee rules, immigration problems and legal co-operation between member states on civil issues).

We see the difficulties that the 27 have in taking decisions on so many subjects (some of which are sensitive). Once again, should we not adopt, just as we have proposed to the Commission, a logical re-organization? The Lisbon Treaty provides us with the elements to improve the efficiency of the European Union.

To go further than the Treaty, one should go back to the equation: One State = one voice. This is a simple and democratic proposal. Why not suggest a Chamber of Nations representing the States, with each member state having an equal number of representatives, irrespective of the size of the State (Similar to the Senate in the USA). The Council of Ministers would become the Chamber of Nations. This transformation would call for the creation of a European Constitution.

We should prepare the transition of the Commission to a real European Government with a President, Vice President and Ministers. The President would be elected by direct Universal Suffrage and would be head of the executive with the power to dissolve the first Chamber. The Parliament would require two Chambers, one to represent the citizens and the other, the States. The first “The Chamber of Citizens” similar to the current Assembly in Strasbourg. The second, representing the States and called “The Chamber of Nations” having an equal number of representatives irrespective of the size of the State.

This ground breaking work and the formidable challenges involved in creating a European Constitution would force Europe into the Twenty First Century with the participation of all its citizens, thanks to modern communication systems such as the Internet. This collective participation could launch the beginnings of a veritable European Society.

Olivier VEDRINE

THE RETURN OF OLD REACTIONS?

Will the results of the European elections be characterized by the great victory of the extremes? Will the economic crisis push European citizens to turn towards simplistic solutions from the past? Within its member states, the EU can see the return of nationalistic fallback movements. The flourishing economy of growth did not erase these old derivatives, making the political Union appear more than desirable.

Europe was paralyzed for fifty years by both the Cold War and the occupation of Eastern Europe by the USSR. After the fall of the Soviet model, came the explosion of Yugoslavia, this conflict threw the south-east of the Balkans into a fratricidal war for more than ten years. NATO and the international community had to intervene to put an end to this tragedy. This war was sparked by the use of religious and ethnic differences by politicians who sought to reach their own personal goals.

Within the EU, the return of nationalism on a political level can often be explained by the fear for the loss of national identity due to the expansion of Europe as well as globalization. The lack of politicization of the European debate over the last few years helped fuel these fears. Thus the proposal of a political vision for Europe is urging, a grand and noble social project.

The phenomenon of the return of nationalism has nothing to do with the extremism of the 1930’s. To begin with, these movements did not appear in the industrial cities hit by unemployment but rather in the prosperous region, home to the bourgeoisie. There we could find low level executives and employees of dynamic SME’s (Small and Medium sized Enterprises) or employees of the tourism sector, which represents a lucrative economic activity. Already, this “neo poujadism” saw only waste and exploitation of its labor in the redistribution on a state or European level. At the time, “the extreme right exploited the egoism of a wealthy electorate which sought only to defend its privileges and which was not at all concerned with solidarity.” (Vincent de Coorebyter, director of the centre for research and sociopolitical information.)

These movements were born during an economically prosperous age. What would happen to us if the crisis we are currently undergoing was to endure? What if the EU did not meet the expectations of its member states? An outburst?

To begin with we must respond in a collective, European way to this crisis with a very pedagogic explanation of the decisions taken on behalf of the citizens and parallel to this, create a desire for Europe: Europe must make us dream!

How to make people dream in order to make them join?

“An important psychological factor also contributed to the imperial power: no assertion of identity could compete with the civis romanus sum (“I am a Roman citizen”), source of pride and of aspiration for many. Finally conceded to the subjects of non-Roman birth, the coveted status of “citizen” expressed a cultural superiority which made expansion of the empire a true mission. Wherever it was imposed, the law of Rome found its legitimacy and encouraged those who lived by it to wish for assimilation in the imperial structures. The cultural superiority, obvious to the eyes of the Masters and acknowledged by the subjects, reinforced the established order.” (Zbigniew Brzezinski: le Grand Echiquier, l’Amérique et le reste du Monde).

This Empire, one of the historical cradles of Europe, proposed to the world a federative civilization project. The European Union must, for the sake of its member state citizens, elaborate a new society so as to federate, without reviving an imperial vision. A social humanistic project could fuel the creation and development of a constitution. It is an opportunity to seize for our continent in a world that is becoming multi-polar. There are multiple development and social models and the primary objective is to co-exist comfortably. The European Union could propose a project that would combat instability (essential in times of crisis!), that would respect the environment and that would allow each citizen to indulge in their own search for happiness. We must admit, in a pragmatic way, that the market economy is the only model that works, even though, as the current crisis has shown us, we must rethink it so that the economy serves man and not the other way round.

Let us hope that the destiny of the EU will differ from that of an ancient Greek League which, once the Persian peril gone, collapsed.

We have all the means necessary to become a great power, able to influence in the future of the world and thus our own future. We are still missing the political will; the crisis can be a chance to impose this political will. The Lisbon Treaty is necessary to advance in this success story which is the European construction. Furthermore, a constitution would be the zenith of this long road, it would have the same strength and would symbolize the same as the constitutions proposed in France in 1791 and the United States in 1787.

"If to please the people, we offer what we ourselves disapprove, how can we afterwards defend our work? Let us raise a standard to which the wise and the honest can repair. The event is in the hand of God." – George Washington. Comments at the First Continental Congress on May 14, 1787 at Philadelphia .

This desire for Europe must be one of the major objectives of the political debates concerning the European elections; it will create the necessary tools for the construction of a fully-fledged European Union, and effectively oppose all types of extremism.

Olivier VEDRINE

“GOVERNANCE” A THOUGHT FOR EUROPEANS ?

To begin this new article, I would like to come back on a few points from the article on capitalism. The crisis that some already qualify as being a "recession" will require us – if we want to come out on top - to reconsider and integrate the role of new actors as forces of suggestion , complementary to the functions of the State. Democracy in its governance is indeed changing, as a result of the enormous advances that have been taking place in the domain of communications, especially with the Internet, which itself is one of the main causes of the globalization of information.

Citizens and civil society, particularly those represented by associations but also by NGOs and foundations, can and should contribute to resolving this crisis that is looming on the horizon, mainly by taking its social aspects into consideration. There are not only inconveniences to this, as it can be a tremendous democratic restitution for our companies, which will lead to discussions that can conduct to changes in the governance of States themselves. With all these new actors and the state, we are confronted by a large debate, in which the role of morality and ethics, in the domain of politics and economics, would have to be discussed thoughtfully and responsibly.

The purpose of governance is to get closer to achieving political equilibrium and thereby guaranteeing an efficient and effective government. This means accepting a global approach of government power, that embodies more dialogue, consensus and taking into account multiple interests. In times of crisis, this integrated approach appears therefore to be a contemporary topic of great importance.

The concept is not only for domestic implementation but also for use on an international level. The inclusion of multiple interests, and the search for consensus could actually be the new guidelines for a modern form of diplomacy as part of a multi-polar world. Following this logic, it seems necessary, for instance, to restructure international organizations such as the United Nations, the IMF or the World Bank. All these organizations were introduced shortly after the Second World War, and the world has changed a lot since then, especially with the end of colonial empires, the end of the USSR and the emergence of new powers.

Taking into account the new face, or should we say multiple new faces, of the world, as an incentive to consider a major democratic reform of international institutions. A Security Council integrating an African country but also India and Brazil, as well as the creation of a seat for the European Union or even the chairmanship of major financial institutions such as the World Bank and the IMF, held by representatives of non-European countries, or from representatives not coming from the United States of America, are important elements to take into consideration if we want to mobilize the entire world in solving this global crisis.

The mobilization of a large number of countries and their citizens, to revive the global economy today, is an imperative that is binding everyone if we want to solve this crisis, that has become social and that we have been experiencing for several months, in the quickest and most evenhanded way possible. It is all the more urgent, as this crisis is not the only one we will have to face in upcoming years because the climate and energy crises also already constitute major challenges to face. The threat posed by the climate crisis can evidently only be faced on an international level as pollution and natural catastrophes know no state boundaries.

As far as energy is concerned, primarily oil, even if oil prices per barrel are currently low, a decrease of demand from industrialized and emerging countries seems unlikely nowadays, especially if we want to revive the economy through policies of large scale change. This is why we should prepare ourselves at present for a sudden rise in oil prices! The geopolitical consequences will be important in this race for energy. They will only be correctable through cooperation as the reserves of oil cannot be extended to meet the exceptional growth rate of our economical needs.

Governance is not only applicable at the international level but also locally. Indeed, consensus-building by taking into account the greater number of partners in policy making makes sense at the local level, in municipalities and at regional level, in the departments. This is a chance to see a direct and sustained involvement of citizens in the life of the city and / or region. This will make the populations feel like a part of the political decision making process, which can, in times of crisis, defuse many social conflicts.

We can also associate the business world with the practice of local governance. Indeed, decisions that are concerted and explained to an entire workshop, a division, or a plant would reduce the potential for conflict. This reduction of the distance between hierarchical floors makes it possible to mobilize all employees in a movement where everyone feels, by consensus, useful and essential for the proper functioning of the group as a whole.

This local governance is an important part of European civil society which is connected first in national governance at state level and, secondly, at a European level in Brussels. The involvement of a greater number of citizens in public decisions is ensured through the proximity to the fact, when the decision is taken closer to the citizen and also when it is explained on a national and European level. It is most probably through this form of participatory involvement, that we can establish a European citizenship that integrates both the local and national feeling of belonging.

The establishment of modern governance techniques appears easy to realize today using modern means of communication, especially the resources offered by the internet, which amply demonstrated its capacity to mobilize nations in the latest American Presidential elections. A great number of European citizens know and use social networks on the Internet, the transition to a form of governance incorporating this logic would be simple to implement for many citizens. Our politicians are already using websites like “facebook” or “viadeo” and their constituents have begun to incorporate the possibilities, for consultation and proposals, of these new platforms that bring politics within reach of the voters. For the European Union, this could be an extraordinary building site for a modernization of democracy which could become, once the work is completed, the real contribution of Europe to global democratic debate, one of the components of this "European way of life !" we have yet to find. We are in the European election year and we possess, through governance, a subject conducive to beautiful and noble political debates, which most probably interest voters, through the prospects they offer and the new dynamic process that they could engage in the European Union.

Olivier VEDRINE

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