Blair & Sarkozy host Paris Financial Conference

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REPORTS FROM THE BLAIR/SARKOZY “New World, New Capitalism” CONFERENCE IN PARIS

8th January, 2009

Comment at end

President Sarkozy, Chancellor Merkel and Tony Blair at Paris financial conference, 8th January 2009

Tony ever-the-optimist Blair, the Values Man,  highlighted the threats AND opportunities within the world’s economic turmoil. “What is obvious is that the traditional welfare systems are not properly equipped to deal with the scale or nature of the tsunami affecting us.” Calling for a better system of financial regulation, reform of the IMF and World Bank, he also reflected on the “absurdity” of the G8. Blair called for a new financial order based on “values other than the maximum short-term profit.”

France’s President Sarkozy blamed financial speculators for encouraging a system fueled on debt. He called financial capitalism based on speculation “an immoral system” that has “perverted the logic of capitalism.” He said, “In capitalism of the 21st century, there is room for the state.”

And German Chancellor Angela Merkel singled out the American budget deficit and China’s current account surplus — the difference between exports and imports — as problems upsetting the global economy. “We would be making an error if we were content to look solely at financial markets.” She deplored huge debts that governments are accumulating to spend their way out of the present crisis. But she said she recognized, for the moment, that “there is no other possibility.”

The CATCHWORDS/PHRASES in Paris

Blair – ‘values’, Sarkozy – ’state intervention’, Merkel – ‘better trade balance’

With both Blair & Sarkozy so heavily involved in the ongoing Gaza/Israel conflict I wondered if this conference, to which I referred here in November, might have been postponed. But no. Politics and economics go on. So Blair & Sarkozy are joint-hosting this meeting in Paris today.

As Britain’s interest rates are reduced by 0.5% to the lowest ever – I can’t imagine Brown wanted to see this under THESE circumstances – Mr Blair must be relieved to be out of the domestic fray. The Bank of England’s Monetary Policy Committee’s move takes the rate to 1.5% – the first time it has fallen below 2% since the Bank was founded in 1694.

That’s 315 years ago! For a bit of perspective, try this: the USA is only 233 years old!

BACKGROUND TO THE PRESENT ENTENTE CORDIALE (+ GERMANY)

(The original entente)

It may seem a surfeit of get-togethers on the plight of the world’s economy, since the G20 met a few short months ago, and will meet again, in London in April. But this Paris meeting will hear from economic experts as well as the three top-billed political individuals.  The economists are unlikely to be invited to London when countries’ leaders meet , including Mr Obama. Nor, of course, will Mr Blair, as a former UK leader.  But many will wish to hear from him, and he will wish to put down a marker, as he often has before for “VALUES”.

This reminder is timely, as some look to emerging nations and emerging financial systems to replace rather than just reform present capitalism.

BRITAIN IS LAGGING, BUT NOT UNDER BLAIR

A patriotic Sarkozy may well smile in the presence of his friend Tonee, because “for the first time since Tony Blair became prime minister nearly 12 years ago, the French economy is now larger than Britain’s“.  Quote:

“Alone among the Group of Seven economies, France is not in recession, at least by the conventional standard of two successive quarters of negative growth. The French economy, to the delighted surprise of the government, managed to grow by 0.1 percent in the third quarter of last year. But it certainly shrank in the fourth quarter, and analysts at the bank BNP-Paribas say it will shrink again by at least 2 percent this year.”

Of course the British shrinkage happened after Blair left office, by luck, serendipity or happenstance. It was hardly design, as by choice he would have served until the next election. Even if the economy’s withering roots were established while he was PM, its economic architect, as we all know and were reminded frequently, was a certain Monsieur LeBrun. He is presently taking the Cabinet around the cold economic country, in a bid to warm up the people.

So, right now Mr Brown is neither exactly vocal on Gaza/Israel or on a way forward for the world’s economy, after ’saving the world’ last month.  Not that he can be blamed for either of these signs of reticence. The fact that he has a difficult situation at home financially, and an upcoming general election, means that his priorities need to be seen to be home based. And of course David Miliband, our Foreign Secretary is presently engaged in UN discussions, the most recent driven by the United States, Britain and France who have “dropped objections to a binding U.N. resolution on the Gaza crisis” and are working on one that calls for an “immediate ceasefire.”

Mr Blair is likely to be keeping Mr Brown informed as to the diplomatic niceties internationally around both these pressing issues.

I don’t accept that these two, Blair & Brown, are as far apart as used to be reported on the big issues. The main difference is that Tony could say and do it all so much better than Gordon. He knows instinctively how to tie together the frayed ends of the pieces of string. Whether Brown can ever engage in that kind of cohesion I have my doubts, even if he accepts and understands them. He still has an unfortunate  propensity to tie himself in knots.

This message delivery was part of Blair’s strength. And how the world needs it now.

THE ENTENTE CORDIALE

The re-titling of this “summit” to a “conference” with no decision-making powers was reportedly in response to ‘ Czech irritation’ at Sarkozy’s seeming desire to continue leading the assault on the financial crisis after he had ceased being EU president on 31st December. The Czechs now hold the European Union presidency. This title change may be a sop to EU colleagues or a reality check/czech from M Sarkozy.

Despite little yet in the British press on this, this entente cordiale in Paris will soon get the tongues wagging.

“France is reported to want an economic government of eurozone countries led by Sarkozy after the French EU presidency expires in December in order to maintain momentum with tackling long-term solutions.”

The Czech Republic, presumably in its role as the EU presidency, made waves last week when it did NOT come out as vehemently as other individual EU states had against Israel. The Czechs were right. The other EU states have had to bite their collective lips, since they can hardly suggest talking to Hamas, a proscribed organisation, at this stage.

Meanwhile Mr Sarkozy has been in the forefront, along with Egypt, in trying to put together a workable ceasefire, albeit jumping the gun on his announcement last night. And Mr Blair is an independent operator, more or less. (If you discount for the sake of the argument the disparate interests of the UN/USA/EU & Russia in the Middle East!)

Isn’t politics interesting?

(Other participants at this symposium include Liberian President Ellen Johnson-Sirleaf, Economics Nobel Prize winners Amartya Sen and Joseph Stiglitz, World Trade Organization head Pascal Lamy and the president of the European Central Bank, Jean-Claude Trichet)

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GAZA/ISRAEL & THE SMOKING TRUTH

Prior to the start of the Paris conference Mr Blair spoke in the British Embassy on his hopes for a ceasefire in Gaza/Israel.

It’s worth remembering this: Hamas broke yesterday’s humanitarian ceasefire, NOT Israel. Since the British press will be loathe to mention this, I will. Like the old adage that smokers really START smoking again with their first cigarette of the day, Hamas re-started the conflict yesterday, within twenty minutes of the ending of the three hour humanitarian truce. It was THEY who fired rockets at Israel again.

I have to wonder why they did this. Presumably to show that they had not yet lost the capability, and were thus not yet defeated. It’s always possible that without this re-start Israel might not have continued bombing, since their main reason for responding would have been negated.

Ahh, but that would never do in Hamas’s quest for world sympathy. They will never concede defeat, until the last school/hiding place for Hamas rocket bombers has been destroyed. Or until they are offered a viable peace treaty without losing face.

I am well aware that Gaza is a small piece of land. But we should also be aware that when it was handed to Hamas an area away from built-up areas was suggested for security training. Hamas refused to agree to this, preferring to keep its militants amongst its residents.

• Speaking in French in Paris Tony Blair urged America to back the French/Egyptian cease-fire plans.
• Prison Planet’s thoughts on the Paris conference
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• Iran’s top leader Ayatollah Ali Khamenei bans suicide bombing Iranians from going to Gaza’s aid after inciting calls from Ahmadinejad. Crisis for Ahmadinejad’s leadership?
• The ‘Iranian Beast’ is the Palestinians’ Enemy

Hamas already has Iranian-made weaponry “Israeli officials say that Hamas has also acquired dozens of Iranian-made Fajr-3 missiles with an even longer range. Many fear that as the group acquires ever more sophisticated weaponry it is only a matter of time before the nuclear installation at Dimona, 20 miles east of Beersheba, falls within its sights. Dimona houses Israel’s only nuclear reactor and is believed to be where nuclear warheads are stored.”

December 24th 2008, Hamas passed Sharia penal bill: Excerpt:

“Flogging was regularly mentioned in the bill as article 84 stated: ‘everyone who drinks wine or possesses it or produces it will be punished by forty lashes if Muslim… and everyone who drinks wine and intimidates people or aggravates or disturbs them, or drinks it in a public place or comes to a public place while drunk, will be punished by no less than forty lashes and imprisonment of no less than three months’. Flogging has also been assigned to offences such as ‘gambling, insulting religious beliefs, committing acts that are debauched, scandalous and that do not abide by public decency, defamation of character, insulting and cursing’. It also states that ‘whoever commits the crime of robbery will be punished by chopping his right hand from the wrist’.

Maajid Nawaz, Director of the Quilliam Foundation said: ‘Hamas are finally showing their true colours, and the true colours of their colleagues in their parent organization the Muslim Brotherhood. To introduce a mode of punishment that was explicitly repealed by leading Muslim theologians of the then capital of the abolished Caliphate in Istanbul is yet another example of Islamists using democratic rhetoric to get into power, and then going on to abolish fundamental democratic principles and human rights.’

Those who argue that democracy demands greater Western support for elected Islamists in Muslim-majority countries, should recognize that elections are only one component of democracy. Pluralism, human rights and personal freedoms are all essential to avoid the ‘elected dictatorships’ that Europe suffered from so severely in the last century.’ He added: ‘Will the UK-based affiliates of the Muslim Brotherhood now condemn Hamas?’ Please see here for original article.”

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