EU

“Farming” for dollars in the EU

by Fran Smith on July 17, 2009

in Agriculture, International, Trade

Most of us knew that the European Union’s system of farm subsidies, the Common Agricultural Policy (CAP) gives out huge amounts to farmers in the EU countries.  What hasn’t been clear is that a lot of the monies go to businesses only tangentially connected — if at all — with farming.

Now the New York Times has an in-depth article detailing how large sums of CAP money go to such businesses as asphalt manufacturers, and to such people as the Queen of England, Prince Charles and other royal and — very wealthy — individuals.

Here’s some NYT  information about the cost of these subsidies:

The E.U. pays out more than half its annual budget, around €53 billion, in farm subsidies, four times as much as the United States. The subsidies cost each European Union citizen around €110 a year, according to the European Commission, a healthy chunk for a family of four. The money is raised from customs duties, sales taxes and a contribution made by each E.U. country based on its wealth.

“Individual families are paying double for their food — one for their higher prices in the stores and then for the taxes that they pay out for subsidies,” said Stefan Tangermann, an agricultural economist.

The article details some of the more far-fetched of the non-farm recipients:

That is how a gravel manufacturer like Arids qualifies for farm subsidies, as did Pasquina, which collected €1.13 million for its new asphalt factory in Spain. The Spanish utility Endesa also was eligible — it received €466,000 for installing electrical connections.

These aren’t just funny stories, but the policy has real economic consequences for taxpayers and the poor in developing countries:

Farm subsidies are a controversial economic tool — a sacred cow for politicians in the United States and Europe. But some economists view them as trade-distorting instruments that hit the pocketbooks of taxpayers and destroy the livelihoods of farmers in some of the world’s poorest countries by prompting Western states to dump surplus food there while also reaping the benefit of subsidies.

Check out CEI’s video on U.S. farm subsidies, “Farming for Dollars.”

LibertyWeek 46: The Great Porn Wall of China

by Richard Morrison on June 9, 2009

in CEI Projects, Podcast

Your faithful host Richard Morrison welcomes back special guest co-hosts William Yeatman and Michelle Minton for Episode 46 (listen HERE!). We start with the investors that are getting worked over by the politically-distorted bankruptcy of Chrysler, the ascension of the Swedish Pirate Party to the European Parliament and the Great Porn Wall of China. We then move on to proof that beer is better for you than water, a sign that airline travel may get more expensive, and an example of how voters deal with corrupt politicians. Finally, we wind things up with some very educational Olympic News.

LibertyWeek 42: Hugo Chávez, Robber Baron

by Richard Morrison on May 12, 2009 · 1 comment

in CEI Projects, Podcast

Richard Morrison and Cord Blomquist bring back special guest co-host Jeremy Lott to create the work of art known as Episode 42. We start with the continuing buzz over the Supreme Court’s next member, President Obama’s trillion dollar healthcare plan, and an update on how Hugo Chávez is turning Venezuela’s petroleum reserves into his personal piggybank. We add good news from East Texas for beer drinkers, bad news from Europe for technophiles and sad news from Philly for basketball fans.

Listen to the episode HERE.

Klaus vs. the Eurocrats

by Ivan Osorio on May 11, 2009

in International

In The American Spectator, former CEI Bastiat Scholar Doug Bandow (now at the Cato Institute) describes how “[o]nly the Irish people and Czech President Vaclav Klaus” stand as “formidable obstacles” in the way of Eurocrats’ dream of political consolidation — and how fanciful that dream is to begin with.

After winning some theoretical concessions, essentially promises to make future changes, on issues of interest to Irish voters, the government in Dublin announced plans to hold a revote later this year. Current polls have the “ayes” ahead and the EU is spending more than $2 million to lobby the Irish public. But the apparent upsurge in support may be temporary, reflecting economic fears, and groups like Declan Ganley’s Libertas, which played a key role in defeating the treaty in the first Irish vote, plan to keep fighting.

If the Lisbon Treaty passes, then what? European policies will be further internationalized. European nations’ sovereignty will be further eroded. European traditions will be further submerged. European peoples will be less free.

Which explains Vaclav Klaus’ sharp critique. “Are you really convinced that every time you take a vote, you are deciding something that must be decided here in this hall and not closer to the citizens, i.e. inside the individual European states,” he asked the European Parliament. Unfortunately, most of them are: His talk elicited “boos and catcalls and a walk-out by some members,” explained New Europe.

Yet even if the Eurocrats win, they aren’t likely to create a new nation state capable of challenging Washington for global influence. Rather, the EU will just create a slightly more pretentious political hollow shell.

In his valedictory address as European President, Nicolas Sarkozy said: “the world needs a strong Europe and that Europe cannot be strong if it is not united.” But the Lisbon Treaty does not unite Europe. The wealthier West has rejected a plea by the East for a financial bailout. In a January poll barely one quarter of Europeans knew that parliamentary elections were even scheduled this year. The percentage likely to vote is down from the last election. And the governing establishment is afraid to let the people vote on the Lisbon Treaty. If the only way to strengthen the EU structure is to limit popular participation, then Europe must not be united. Would anyone, other than Belgians (and maybe not even them), today die for Brussels? Passing Lisbon won’t create a continental identity now absent.

In addition to opposing statist schemes like those from the EU, President Klaus is also a consistent opponent of environmental hysteria. His book, Blue Planet in Green Shackles, is published in the U.S. by CEI. To purchase a copy of the book, see here.

Declan Ganley, who played a key role in the Irish opposition to the Lisbon Treaty, spoke recently in Washington at The Heritage Foundation. For video of his talk, see here.

Will carbon market woes tilt U.S. pols towards carbon taxes, CAA regulation?

by Marlo Lewis on February 23, 2009 · 1 comment

in Energy, Global Warming, Legal

In today’s Guardian, Juliana Glover reports that carbon permit prices in Europe’s Emission Trading System (ETS) have crashed from €31 last summer to €8 today. This price is too low to create any incentive for covered entities to invest in ‘green’ technology. [click to continue…]

The Amazonians Speak Out

by Julie Walsh on December 5, 2008 · 1 comment

in Environment, Global Warming

I wrote recently of California’s declaration to allow tropical forestry carbon offsets so that California businesses wouldn’t have to actually reduce their emissions, but I suggested that guilt-laden Californians could be doing more harm than good. The countries where they will supposedly be investing in forests have proven records for corruption.

I now feel vindicated. Reuters Africa reports that yesterday at the EU climate talks:

Brazil ruled out on Thursday letting rich countries offset their greenhouse gas emissions by helping to save the Amazon rain forest, an idea under active discussion by the European Union.

Indigenous peoples attending United Nations-led climate talks in Poznan protested that they had no chance of seeing such carbon cash, and appealed instead for money first to root out corruption and cement their land rights…

Some indigenous peoples groups oppose a carbon market approach until their tenure rights are made secure, fearing the lure of billions of dollars may trigger a land grab instead.

I guess they don’t want Nature Conservancy et al buying up their lands and profitting the corrupt in their countries.

Eurocrats Push European Consolidation

by Doug Bandow on September 18, 2008

in International, Legal, Personal Liberty, Politics as Usual

Nothing horrifies the New Class of bureaucrats, intellectuals, politicians, and activists than an aroused public dedicated to defeating their plans.  The Irish vote against the Lisbon Treaty, which would create a stronger, consolidated government for the continent, shocked Europe’s political elite, who are pushing for Ireland’s government to stage a revote, or simply override the voters.  The latest argument being made is that approving Lisbon would empower Europe to confront Russia on security issues. It’s a silly claim, since the Treaty will deliver neither policy unanimity, an effective military, nor popular support, all of which are necessary for a genuine European nation state.  I offer this argument and more in Taki’s magazine today.

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