Germany says ‘Yes We Cem’ as first Turk takes charge of mainstream political party

Secular Muslim voted new leader of Green Party hints at coalition with Merkel

By Tony Paterson in Berlin
Wednesday, 26 November 2008

PA
To become the country’s first ethnic Turk to be elected leader of a major political party, Cem Ozdemir’s supporters coined the slogan “Yes We Cem!”

He has been described as “Germany’s Obama”, and as he campaigned to become the country’s first ethnic Turk to be elected leader of a major political party, Cem Ozdemir’s supporters coined the slogan “Yes We Cem!”

Whether the Obama factor helped or not, the son of a Turkish immigrant – who describes himself as a secular Muslim not averse to the odd glass of vodka – won the leadership of the country’s Green Party this month, shattering a racial barrier that had held sway in post-war Germany for decades.

As Green Party leader, the last thing Mr Ozdemir, 42, appears to want to do is campaign on behalf of Germany’s still disadvantaged Turks. Instead he wants to help them via osmosis. “I hope that people will notice my name and realise that someone with an ethnic Turkish background can also play a role in politics,” he says.

His parents arrived in Germany’s southern state of Baden-Württemberg in the early 1960s as “Gastarbeiter” or guest workers. They came at the invitation of the German government in search of well-paid jobs and although they intended to return to Turkey, like millions of others, they stayed.

Germany’s 2.7 million Turks are the country’s biggest ethnic minority. But decades of policy has kept many in the ghetto. Less than a quarter have German passports, and therefore, a vote.

Mr Ozdemir escaped but admits “many Turks are still in the ghetto”. He grew up in a Turkish-speaking household and learnt German mostly at school. English followed, as did training as a social worker and membership of the Green Party. He gained German citizenship in 1992, and two years later became the first MP with an ethnic Turkish background.

The only blemish on his record are allegations in 2002 that he used air miles from government trips to fund private travel. They forced him to resign as an MP. He spent 2003 in America as a fellow and subsequently linked up with the Democrats and met with several members of the Obama team. In 2004 he became one of Germany’s Green Party Euro MPs, attracting attention for his criticism of human rights abuses in Turkey.

Now, Mr Ozdemir is out to inject new life into a Green Party that many feel has lost its way since it was ousted from power in 2005 after seven years in a ruling coalition.

But with Chancellor Angela Merkel’s conservative/SPD grand coalition facing a general election next year, Mr Ozdemir has already suggested a conservative-Green alliance. In the state of Hamburg, the conservatives and Greens already share power.

Austrian minister quits over EU referendum clause.
VALENTINA POP

25.11.2008  the EUobserver - Austria’s pro-European foreign minister Ursula Plassnik has refused to be part of the country’s new governing coalition because it did not rule out future referendums on EU treaties.

“I was not ready to serve as an EU warranty or fig leaf for a government where some of its members do not distance themselves enough from a fruitless and energy consuming alliance with EU-critical forces,” Ms Plassnik told Die Presse.

The minister’s center-right OVP party formed a “grand coalition” with the populist Social-Democrats (SPO) at the weekend, following two months of talks that locked Austria’s resurgent far-right factions out of power.

The new SPO chancellor, Werner Faymann, declined to insert a clause into the coalition pact guaranteeing that future EU treaties will be ratified through parliament instead of referendums, prompting Ms Plassnik’s departure, she explained.

Instead, the coalition signed up to a “self-destruct clause” under which the two parties can seek EU-wide or national referendums by mutual agreement. In case of disagreement, the government would be dissolved.

The OVP and SPO both officially want the Lisbon treaty - which was ratified by the Austrian parliament in May - to come into force.

But in tendering her resignation, Ms Plassnik recalled that Mr Faymann and the then SPO chancellor Alfred Gusenbauer in July wrote a letter to Hans Dichand, the editor of the tabloid Krone newspaper, pleading for national referendums on EU affairs.

“Future changes on the EU treaty, which touch upon Austrian interest, should be decided through a referendum in Austria. The same applies to a possible EU accession of Turkey, which would overstrech, in our view, the current EU structures,” they said, as part of the SPO election campaign.

“It is not about cutting ‘the people’ out. Mr Dichand [the editor of Krone] is not ‘the people.’ It is about explaining carefully and clearly the EU and its co-operation with Austria. The EU must not be chased as a scapegoat through the villages. This is false and brings Austria to a dead end. And Austria is no dead end country,” Ms Plassnik told Kleine Zeitung.

A coalition cannot assume governing responsibilty and have an “official pro-EU line,” but at the same time “enter a coalition with EU opponents,” she added. “It shouldn’t be the case that Austria becomes a risk country [in terms of future EU integration].”

The Austrian public is the most eurosceptic in the union - only 28 percent had a positive view of the EU in a June 2008 survey, the lowest among all 27 states.

The majority of Austrians also wanted a referendum on the Lisbon treaty, with 59 percent saying they wanted a popular vote in a Gallup poll in April 2008.

=============

Prague - It is inevitable for the Irish to vote on the EU Lisbon treaty in a referendum again, Dick Roche, Irish minister for European affairs, told CTK in Prague today.

He emphasised that the new referendum would take place only after careful negotiations with the EU removed objections and dispelled the apprehensions the Irish public feels about the reform treaty.
In a month Dublin is to disclose the main areas the Irish want to discuss with the EU in this connection, Roche said.
At the European Council meeting in December the Irish prime minister will propose a “road map” to identify the main areas we believe we have to discuss with our European colleagues in order to clarify the problems the Irish feel worried about, Roche said.
The complex negotiations will probably continue throughout the period of the Czech Republic’s EU presidency in the first half of 2009 and they could even be completed not before the start of the Swedish presidency, Roche said.
After the Irish apprehensions of the Lisbon treaty are dispelled, Ireland will see another referendum, Roche said.
He said the Irish government has not discussed the referendum’s date as it will be topical only after a final agreement with the EU is reached.
Roche said he personally hoped the process not to take more than a year.
One of the issues for the Dublin-EU discussion will be the proposed new size of the European Commission. Ireland insists on the principle of one commissioner from each member state, Roche continued.
The Lisbon treaty, nevertheless, contains a mechanism that enables to preserve this principle until 2014. Afterwards it will be possible for the EC to decide on an increase in the number of commissioners.
Dublin also objects to the EU’s liberal approach to abortion. Roche said Ireland respects it that other EU countries have a different approach, it is their right, Roche said.
He said the planned negotiations could bring about a declaration recognising Ireland’s different view in this respect.
The other problems Ireland considers important include the sovereignty of individual member countries in deciding on their own systems of taxes.
In this respect Roche said he believes that the Czechs and most small countries share a similar view.
He said the Irish also differ from most European countries by their strive for neutrality.
Other countries ensure their security by their participation in NATO. Ireland respects this, but it has a different view, Roche said.
He said he believes that a result can be achieved after all the worrying problems are analysed. The Lisbon treaty must not be approached with fear. It is necessary to assure the Irish that they rights will be guaranteed, he said.
The negotiations will last many months and they will require much good will. The discussion must not destroy the balance the other EU states have achieved, Roche pointed out.
In the Czech Republic, which is the last of the 27 EU countries not to have taken an official position on the Lisbon treaty so far, the document has been assessed by the Constitutional Court these days.
At the court’s public proceedings today, Czech President Vaclav Klaus, an ardent opponent of the treaty, said in his opinion the treaty is at variance with the Czech constitution.
Klaus previously said that if the court gave the green light to the treaty and if the Czech parliament ratified it, he would not sign it until it is ratified by Ireland.
Roche said he would not dare to comment on a political debate in the Czech Republic as it would be impolite.
He said the ratification process in an EU country should not be made conditional on the ratification elsewhere.
Roche said there will always be discussions about the balance between national sovereignty and the advantage to be a member of a bigger grouping.
The Irish do not have a feeling of being less Irish in the EU. The opposite is true, Roche said.
Author: ČTK
=============

Irish parliament to debate second Lisbon referendum.
LUCIA KUBOSOVA

November 26, 2008, EUobserver - An Irish parliamentary committee is to debate a report arguing that a second referendum on the EU’s Lisbon treaty is legally possible.

The draft report, first seen by the Irish Times, has been discussed in a private session by the Subcommittee on Ireland’s Future in the EU and is due to be presented to the joint Committee on European Affairs on Thursday (27 November).

It argues that a second poll on the EU’s new reform treaty - following the debacle in June when the Irish voters rejected the document by a clear majority - would be preferable, suggesting a vote on the same text but accompanied by clarifying declarations on controversial issues.

One concrete issue of the kind likely to be considered is a protection of the country’s neutrality. Parliamentarians argued that a new procedure should be set up to boost national decision-making powers regarding military-related matters.

Also, they would like to see in an attached declaration assurance that all member states keep their commissioner - if other European partners agree with the move.

Under the Lisbon treaty, EU member states would take turns at having a representative in the commission, meaning that once every 15 years, each country would be without a commissioner for a period of five years, as the number of commissioners is scheduled to be reduced from 27 to 18 as of 2014.

Earlier this month, Irish foreign minister Micheal Martin hinted that his government is in talks with other governments and EU officials on the issue of the composition of the bloc’s executive.

But some insiders doubt this modification could be achieved, as it is one of the major elements of Lisbon’s institutional reform and was introduced parallel to similar changes for other institutions, notably the European Parliament.

Under the Lisbon treaty, the new EU legislature will have 750 members instead of the current 785.

However, if the new parliament is elected according to the currently applied Nice Treaty in June, its size will be reduced to 732. In such a case, the new commission - due to be appointed later this year - should also have fewer than 27 members.

Julian Priestley, the parliament’s former secretary general, believes that Ireland itself should face some “consequences” if there is no second referendum by mid-2009.

Speaking on Tuesday (25 November) at a debate on the next EU elections organised by the European Policy Center, he argued “it would be a mistake to get some kind of a fix around the clear provision of the Nice treaty.”

Mr Priestley rejected the possibility of having 26 commissioners and to not count the president of the commission as part of the team, stressing that the EU should respect the provisions of whatever treaty is in force.

“If Ireland is the only country that hasn’t ratified the Lisbon treaty and at least superficially prefers the Nice treaty, it should face the consequences of Nice and lose the commissioner,” he concluded.

Waiting for the verdict on Lisbon

Meanwhile, Prague is expecting a verdict from the Czech constitutional court on whether the EU reform plan is in line with the Czech constitution after a heated exchange between the country’s president and government officials in the courtroom on Tuesday (25 November).

The Czech Republic is the only country that has not yet voted on the Lisbon treaty. Despite this fact, the republic is preparing to take over the helm of the EU from France in January, when it assumes the six-month rotating EU presidency, and must then lead talks with Ireland on how to solve the institutional problem.

But top politicians in Prague are divided on the issue. While deputy prime minister Alexander Vondra praised the document and its improvements to the bloc’s functioning, President Vaclav Klaus strongly criticised it at a public hearing.

He argued that the democratically elected institutions in the Czech Republic would be weakened and that key conditions for the country’s EU membership - as stated when the citizens voted on entry in 2003 - would change due to the new treaty.

In a radio interview on Monday (24 November) President Klaus also indicated he might sign the treaty - if adopted by parliament - only after it is ratified in Ireland, echoing the stance of Poland’s President Lech Kaczynski.

Meanwhile, Ireland’s minister for European affairs, Dick Roche, told the Czech CTK news agency that a second referendum on the Lisbon treaty is “inevitable,” adding that he hopes the whole process would not take more than a year.

 Discussion: EUROPE AND THE US - A NEW HONEYMOON AFTER THE PRESIDENTIAL ELECTIONS.
austrian cultural forum     <newsletter@acfny.org> to PJ

EUROPE AND THE US - A NEW HONEYMOON AFTER THE PRESIDENTIAL ELECTIONS?

The Dietrich W. Botstiber Series

THURSDAY, November 13th, 2008  -  7:00 PM

With ANTON PELINKA (Central European University) and TODD GITLIN (Columbia University)

Introduction and moderator: ANDREAS STADLER (Austrian Cultural Forum New York)
The land slide victory of Barack Obama on November 4th 2008 might also become a turning point in European - American relations since the United States of America seem to have made a significant change in political development. How will Europe react? What has become of the European idea that has shown so brightly after the democratic revolutions in Eastern Europe in 1989 and the establishment of the European Union?

Anton Pelinka is an Austrian political scientist, Professor of Nationalism Studies at Central European University in Budapest, director of the Institute of Conflict Research Vienna and a widely respected commentator on political affairs. He tours the United States lecturing at Stanford, Chicago, Washington and New York on the initiative of the Austrian Cultural Forum. His research focuses on democracy and transnational politics. Among Pelinka’s voluminous publications are: “Austria. Out of the Shadows of the Past” (Boulder: Westview, 1998); “The Haider Phenomenon in Austria” (ed.with Ruth Wodak; New Brunswick: Transaction, 2002); “Democracy Indian Style. Subhas Chandra Bose and the Creation of India’s Political Culture” (New Brunswick: Transaction, 2003).

Todd Gitlin is a Professor of Journalism and Sociology at Columbia University. He has contributed to the American political debate through activism and critical analysis. Gitlin is the author of twelve books, including, most recently, The Bulldozer and the Big Tent: Blind Republicans, Lame Democrats, and the Recovery of American Ideals (New Jersey: Wiley, 2007) as well of numerous articles on politics, mass media, and culture for The New York Times, Los Angeles Times, Washington Post, Boston Globe, Columbia Journalism Review.

RESERVATIONS |
Free admission. Reservations required. For reservations, please call ACF’s reservation line at (212) 319 5300 ext. 222 or email  reservations at acfny.org. Please leave your name and telephone number !

Admission to all ACF events is free.

 Subject: 2009 POSTDOCTORAL FELLOWSHIPS  - IIASA

The International Institute for Applied Systems Analysis (IIASA) invites applications for two Postdoctoral Research Fellow positions.

IIASA is an international research organization located in Laxenburg, 16 km south of Vienna, Austria. Some 200 mathematicians, social scientists, natural scientists, economists and engineers from over 35 countries conduct inter-disciplinary research on environmental, economic, technological, and social issues in the context of human dimensions of global change, in particular climate change.
 http://www.iiasa.ac.at/docs/what-is-iias…

Candidates should have a doctoral degree for less than five years at the application deadline, with a proven record of research accomplishments.  Scholars will conduct their own research within one of IIASA’s research programs or special projects on topics closely related to IIASA’s agenda.
 http://www.iiasa.ac.at/docs/Research/

The IIASA programs of  past, research projects have included studies of:

global climate changes,

world agricultural potential,

energy resource requirements and implications,

regional patterns of acid emission and deposition,

risk analysis and management,

social and economic impacts of demographic changes,

and the theory and methods of systems analysis.
Many of those earlier research projects form the backbone of current activities.

Following the strategic and research goals set by its governing Council, since 2000, IIASA’s research is being carried out under three core themes:

Environment and Natural Resources
Population and Society
Energy and Technology.

The positions carry a competitive salary, exempt from taxation in Austria, but subject to the principle of income aggregation; an allowance for relocation expenses to and from Austria; and participation in either private or state health insurance plans.  Appointees are offered a fellowship for one or two years.

Closing date for applications is February 1, 2009.  Full details about the Program, including an on-line application form can be found at http://www.iiasa.ac.at/Admin/YSP/pdoc/te…

Contact details
Barbara Hauser
Postdoctoral Coordinator
Schlossplatz 1
A-2361 Laxenburg
Austria
Tel: +43 2236 807 541
Email:  hauser at iiasa.ac.at

China’s Key Energy Policy Institution Joins REEEP

Beijing, October 30, 2008

Today at the Global Wind Energy Conference in Beijing, the Energy Research Institute (ERI), a key division of National Development and Reform Commission (NDRC), formally joined REEEP.  NDRC is the main policy making body in China on energy, environment and climate change. The signing ceremony was attended by senior Chinese government officials from NDRC and the National Energy Agency (NEA) and also representatives from local diplomatic missions of key REEEP partner and donor countries – United Kingdom, Norway, Australia and Italy.

ERI is a national research organisation conducting comprehensive studies on China’s energy issues. It is guided by the Chinese Academy of Sciences in many aspects of its research work. The work carried out by ERI forms the basis of Energy and Climate Change policy implemented in China by NDRC.

Speaking at the Global Wind Energy Conference, ERI Director-General Han Wenke stated “Joining an international partnership such as REEEP allows the Energy Efficiency Center and the Center for Renewable Energy Development (CRED) to further strengthen their ties to international experience. Experiences that can be of use here in China”.

Mr. Li Junfeng, Secretary General of the Chinese Renewable Energy Industries Association who is hosting the REEEP East Asia Regional Secretariat, indicated that ERI has been working closely with REEEP in China from both project and strategic sides. ERI’s joining the REEEP will enhance the existing collaboration between REEEP and ERI, and bring multi-benefits to both parties as they share a common aim regarding the promotion and deployment of renewable and energy efficiency technology in China.

ERI’s joining of an international clean energy partnership is an indication of the Chinese government’s desire to accelerate energy conservation and renewable energy in the country.

REEEP has been working in China since 2003, implementing sixteen projects focused on policies, regulations, finance and business issues. REEEP and CRED, one department of ERI focusing on policy research for renewable energy, worked a National Implementation Roadmap for Wind and a study on the potential for Biomass Co-firing in coal-fired power stations.

China intends to use REEEP as a vehicle to gain access to international experience and best practices on energy efficiency and renewable energy, in order to strengthen the significant efforts that China has already made  in renewable energy and energy efficiency development.

REEEP announced plans to work with the Chinese government and industry associations to develop a report on Chinese Achievements in Renewable Energy and Energy Efficiency.

REEEP will also work together with ERI to support new policy measures that increase the role of sustainable energy in China’s transition to a low carbon economy.

Dr. Marianne Osterkorn, REEEP International Director, stated “while China is becoming the world’s leading economy, China is already the world leader in renewable energy and taking major steps towards energy efficiency. It is remarkable that China gives such importance to renewable and energy efficiency, and that they value their importance on the path to a lower carbon economy.

Agata Gago
Media Relations
Renewable Energy and Energy Efficiency Partnership (REEEP)
International Secretariat
Wagramerstrasse 5
1400 Vienna, Austria
Tel: +48 503 180 791
 http://www.reeep.org

REEEP announces Call for Proposals for EUR 4.3 million in grant funding.
Vienna, 23.10.2008
The Renewable Energy and Energy Efficiency Partnership (REEEP) today announced a call for project proposals which support the development of markets for renewable energy and energy efficiency. The project call is REEEP’s largest in its five year history with more than 4.3 million Euro available for projects in least developed countries and emerging market economies.

The programme cycle received funding from a consortium comprised of Australia, Ireland, Italy, Norway and the United Kingdom.

Australia, with its significant contribution will help intensify REEEP’s efforts in small island states in the Pacific.

The United Kingdom and Norway will continue their focus on emerging economies and Ireland and Italy will continue their focus on Africa.

The REEEP call is an open tender seeking projects from priority countries - Brazil, China, India and South Africa and from across the developing world.

REEEP will build on its experience gained over the last five years with a bottom-up approach to defining priorities and selecting projects.

REEEP is intensifying its efforts to directly engage governments and financial institutions in its programme. REEEP is inviting countries with specific policy, legislative or regulatory needs or development finance institutions with need for financing structures and business models to develop projects directly with REEEP. It is hoped that by assisting governments with lowering risk within the renewables and energy efficiency sector and by working with development agencies to encourage business and finance models, finance can be attracted into new markets.

To increase operational efficiency and to increase transparency and openness, all proposals will be submitted for evaluation via REEEP’s new on-line Programme Management Information System (PMIS).

Dr. Marianne Osterkorn, REEEP International Director stated that the partnership can now add value across a number of areas. “We are grateful to all REEEP donors – UK, Norway, Ireland and Italy and we welcome the new donor Australia to the REEEP programme. We look forward to working with Australia to support the Pacific Islands to develop local energy sources and helping their quest for energy security. We also look forward to intensifying our engagement with governments and development financial institutions to increase the chances of investments in sustainable energy infrastructure “.
REEEP previously disbursed € 3.2 million euro in 2007,  € 2.2 million in 2006 and € 1.1 million in 2005.

Agata Gago
Media Relations
Renewable Energy and Energy Efficiency Partnership (REEEP)
International Secretariat
Wagramerstrasse 5
1400 Vienna, Austria
Tel: +48 503 180 791
 http://www.reeep.org

SANERI Awarded Southern Africa Regional Secretariat for REEEP

Johannesburg, October 20, 2008.

The South African National Energy Research Institute (SANERI) has been awarded the rights to host the Southern African Regional Secretariat for the Renewable Energy and Energy Efficiency Partnership (REEEP). REEEP was formed in 2002 at the World Summit on Sustainable Development in Johannesburg as a multilateral partnership, to promote the uptake of renewable energy and energy efficiency, particularly in developing countries and economies in transition. REEEP currently consists of over 260 partners of which 40 are governments.

REEEP has successfully supported over 80 policy, regulatory, business and finance initiatives in developing countries. In Southern Africa, projects have been developed in Zambia, Lesotho, Mozambique and South Africa. REEEP facilitates market conditions in developing countries in order to accelerate deployment of renewable energy and energy efficiency through introduction of suitable policies and measures as well as business models and finance facilities.

Regional priorities will be developed by a Regional Steering Committee guided by SANERI for the selection of projects for funding. REEEP’s International Secretariat in Vienna and its Governing Bodies, are responsible for project approval. For the coming year, REEEP will disburse over € 4 million to more than 35 projects across the developing world.

SANERI will take a leadership role in the development of a framework for projects in the region. Regional workshops and an electronic information platform called REEGLE ( http://www.reegle.info )  will contribute to sharing of information and development of regional priorities. The Southern Africa Regional Secretariat will also be responsible for coordinating regional inputs into the strategic direction of REEEP’s international programme of work.

Dr. Marianne Osterkorn, REEEP’s International Director, expressed her support for SANERI: “I am delighted that we are forging a partnership with a national entity of such caliber as SANERI, which has established itself as a major player in the energy R&D sector in South Africa. Moving our Regional Secretariat from Cape Town to Johannesburg will allow REEEP to enhance its significant role in the drive towards global greenhouse gas reduction while supporting the Southern Africa region in its path to sustainable economic development.”

SANERI takes over this responsibility from Agama Energy, an energy consultancy based in Cape Town. The CEO of SANERI, Mr. Kadri Nassiep indicated the significance of this award to the region: “Becoming part of an international partnership that is accelerating the transition to a lower carbon future means taking responsibility for local measures that will build more supportive mechanisms for renewable energy and energy efficiency. SANERI is a key funder of energy R&D in South Africa, and the spin-off benefits of these projects will find their way into the region. It is therefore vital that a strong linkage is developed between technology-driven R&D and policy and regulatory studies that work together to facilitate implementation.”

SANERI takes over responsibilities in October 2008.

For further information on this and related REEEP activities visit the REEP and REEGLE websites www.reeep.org and www.reegle.info. To contact the new secretariat in Johannesburg please email Ms Amanda Luxande at amandal@saneri.org.za

Agata Gago
Media Relations
Renewable Energy and Energy Efficiency Partnership (REEEP)
International Secretariat
Wagramerstrasse 5
1400 Vienna, Austria
Tel: +48 503 180 791
http://www.reeep.org

Florian Bauer
REEGLE Product Manager

Tel:    + 43 1 26026 3714
Fax:    + 43 1 21346 3714
Mobile: + 43 664 418 21 06
 florian.bauer at reeep.org

Internet: www.reeep.org and www.reegle.info

Monday, October 13th - Columbus Day 2008 - In Financial Markets The Chefs Of Europe Came To Washington to Save the Old World - The Week Will End With The Europeans Fighting Among Themselves For Positions at the UN.

The good news are that this Monday is much better then the Monday of last week. This because after serious tutoring by the Chefs of Europe, the US was softened to accept what George Soros and a few others said for quite a while - you do not just bailout those that undermined the economy because of their greed, that was allowed to grow thanks to a wrong headed concept of “Less Government Is Best Government.” You re-capitalize the banks and take equity position in them, so you can re-establish rule of ethics in those institutions. The Europeans started by Nationalizing their weak institutions rather then let them fail (like the Lehman case in the US) or bail them out (like the Goldman-Sachs case in the US). As George Soros said, by letting the system in the hands of Goldman-Sachs graduates, you really do not signal that you want to see change indeed. (We add to this that it would be like seating McCain in the Oval Office when the need is to create deep change in Washington.)

Further - just look at The Financial Times of today - for example at page 11 - “Goldman Connection Raises Questions Over Conflict of Interest’ and Page 24 - “Key Lehman Figures Stay On In Europe” - this after Japan’s Nomura bought the European and Middle East operations of Lehman Brothers. Then see page 24 - “Is Nationalization the answer to banks behaving badly?” and look for what went on in Iceland where the whole banking system was Nationalized. Look at the argument - “shareholders win - taxpayers lose” and the question “why not resolve it by making the two groups identical?” That is neither socialism nor demagoguery. It is not Corporate Socialism but plain “Country First” argumentation that has nothing to do with “me interrupt the campaign and go to Washington to pass the Paulson three page non-plan.”

OK, President Bush listened to the G7 on Friday - and magic - after he declared that the US will now buy into banks - not just the “toxic assets” of those banks, the New York Stock market this morning, followed the example of global markets over the week-end, and started returning value to the share-holders. While I write this, Monday at noon, the New York Stock Market DOW is up 520 points. Clearly, not because they trust now Messrs. Paulson & Bernanke more then they did a week ago - it did happen because they trust more the Gordon Brown, Nicholas Sarkozy, Angela Markel consortium of individuals.

But, do not jump yet at conclusions - this article is not exactly an ode to old Europe. You can conclude that I trust more The Financial Times then the Wall Street Journal, but I will also point out the show of hands that will happen at the end of this week at the UN, and that will bring to the limelight also shadier aspects of Europe 2008.

 ***

The event will happen on Friday, October 17, 2008, when the UN General Assembly elects five non-permanent members of the UN Security Council.

Outgoing council members are Belgium, Indonesia, Italy, Panama, South Africa.

Uganda is the sole candidate for Africa and will replace South Africa. Mexico is the sole candidate for Latin America and will replace Panama. But for Asia there are two candidates and Japan has the definite advantage over Iran as replacement of Indonesia.

The only real fight will be for the European two seats where Austria, Iceland and Turkey will be fighting for the two seats vacated by Belgium and Italy.

Conventional wisdom at the UN says that Turkey will be a shoo-in with the 192 States voting, but Austria and Iceland will be in a tough fight for the second seat. And this is the reason for my bringing up now these elections.

The last months was very hard on Austria and Iceland. Think of the complete melt-down of the Iceland financial system, and the melt-down of the Austrian governing scheme.

 ***

Let us start with Iceland, as this is the easier case - it is on the surface only about money, but then also about eventual political freedom.

Richard Portes writes in The Financial Times of today “The shocking errors behind Iceland’s meltdown.” Iceland’s Glitnir Bank was the first casualty of Washington letting down Lehman, and precipitating the hermetic closure of the global credit market. Like fellow Icelandic banks, Landsbanki and Kaupthing, they were all solvent and posted good first-half results and had healthy capital adequacy ratios. And that is important - NONE HAD ANY TOXIC SECURITIES. All of them were very well managed for the last two years, but when the credit crisis hit Glitnir, the Icelandic Central Bank (CBI) did not help and moved to Nationalize the bank, creating in its wake a run on all banks. All this triggered a fall of the Krona and a margin call from the European Central Bank. Eventually the banks became collateral damage and some foreign branches taken over.

The problem was that the Icelandic banks  were highly leveraged, and like in the UK and Switzerland, too large relative to the domestic economy. The joke was that the large Icelandic banks had a small country attached to them.

The CBI did some terrible mistakes. They announced on Monday a peg of the Krona to the Euro at a rate well above the market that was unsustainable, and abandoned by Tuesday. They contacted the International Monetary Institutions in Washington and when help was not forthcoming they asked for $4 Billion from Russia that was answered positively, but the deal was not yet consumeted. Now, following the Friday agreements in Washington, it is probable that Iceland will be the first country in this crisis to be helped by the IMF. Perhaps also the Russian deal will be finalized this week, and the question is at what political price will this be for a small country, not an EU member, and positioned from Russia at the opposite end of Europe.

For our story here - What will this do to Iceland obtaining the votes it wants at the UN General Assembly, in its quest for a first-time membership at the UNSC - this as part of the group of Nordic States (that at the EU are indeed part of Europe). Will they get now sympathy votes, or will they be considered as economically non-viable?

***

The other contestant is Austria, and its problems seem even worse. The problem is purely political and this week-end it got thrown into total chaos by the auto-racing death of its fast talking right wing politician Joerg Haider.

The Story started with the brake-up of the traditional governing Red-Black coalition. That i