Western European News Digest
Schiller Institute Calls for New Bretton Woods at Tremonti Speech in Berlin
On Oct. 22, at a reception at the German Industry Association (BDI), Italian Finance Minister Giulio Tremonti presented his plan for infrastructure under the title "New dealfair trade." The speech had remarkable elements, compared to what is usually heard from European politicians these days: Tremonti spoke about a "historical time of huge problems for Europe, a whole period is coming to an end: We have geopolitical changes, and the crisis of the stock markets is much more severe than in 1929, although the social effects are not as strong." He said that we lost the power of the sovereign state, while the power of new European structures has yet to be found, "we have to look for a new model, after first the social welfare state and then the new economy collapsed."
However, the weakness in the discussion became evident, when Tremonti went more into the details of his own plan, a renewed "Delors plan," as he said, but without ever becoming concrete concerning the financing mechanisms. He said, of course, the European Infrastructure Bank has to be the engine for investments by issuing bonds, but the combination of private and public capital is still in the process of being worked out.
Tremonti was strongest in his rather clear-cut attack on free trade, saying, "Let's look at China. China is a metaphor for all that is happening in the world todaywe should not have the illusion, that the competition with them will be forever on the sector of low-wage products. China will become rich, and therefore playing Karl Marx for a moment, so to speak, from the standpoint of the old working class in Europe we try to compete with China by having standardized low wages today in Europe, while the living costs are highso to speak, eastern wages and western costs.... This can lead to a grave crisis of our continent. Therefore, when, at the last G-7 summit in Paris, all were praising free trade, we said, 'No, we need fair trade.' Finally, what was decided, is to have rule-based trade." Tremonti demanded a stop to "currency dumping," development of new tariff mechanisms, and formulation of a "social clause which defends the dignity of man.... We can demand this in Italy, because we don't have a left government, so we are not suspicious," he said.
When a Schiller Institute representative intervened with the reality of the U.S. economic debacle, and called for Lyndon LaRouche's New Bretton Woods, the limits of the "defined" debate in Europe became apparent. The Schiller Institute organizer noted that $32 trillion in debt is exploding in the U.S., and that the dollar right now is a kind of financial nuclear bomb; he also added Europe should learn from China right now, which is investing $200 billion per year in public credit into infrastructure. Here, Tremonti said, "No, I am not supporting this catastrophe scenario, I don't see the situation in the U.S. as bad, and also EuropeI think, we have in front of us a new phase, everything will be goodconcerning Bretton Woods, I think, you mean it more as a metaphor."
The limitation is also evidenced by Minister Tremonti's emphatic defense of the Maastricht pact, and his very emphatic stress on "private capital." He said it is "very complicated." And indeed it is, since some circles have vehemently opposed the whole Tremonti plan, as a violation of the Maastricht "austerity" regime.
Italian Prime Minister Urges Easing of Maastricht Rules
At a Strasbourg press conference, on Oct. 22, Italian Prime Minister Silvio Berlusconi said that nobody calls into question that, "the main task of the European Central Bank is the fight against inflation." But in the present conjunctural crisis situation, "as the economy is stagnating, it is urgent to rethink the inflation fight."
"The European Union must grant exceptions from the deficit rule of 3% GDP, in times of weak growth," Berlusconi said, calling for "a more mature reading of the stability regulations" of the Maastricht Pact.
"We have to accept exceptions for certain countries, if we take into consideration the specific condition of their economy, as well as extraordinary events like Sept. 11, the war on terror, the Afghanistan campaign and the Iraq War."
Letter from Princess Diana Predicted Car Plot
In a letter written 10 months before her death, Princess Diana wrote that she feared the brakes of her car would be tampered with. The letter was addressed to her butler, Paul Burrell, who released it for publication in the Daily Mail, a British tabloid, which ran it on Oct. 20.
The Daily Mail quoted the letter directly: "This particular phase in my life is the most [the word most is underlined] dangerous. [Word here is blacked out] is planning 'an accident' in my car, brake failure and serious head injury in order to make the path clear for Charles to marry." (Diana named who she believed was plotting to kill her, but the Mirror says it was not able to repeat the allegation for legal reasons.)
In the letter, Diana went on to say that she had been "battered, bruised, and abused mentally, by a system for 15 years now" but she felt no resentment or hatred. She also wrote she had "cried more than anyone will ever know," but that her "inner strength" never let her down and she would "never surrender."
Burrell, who waited until now to release the letter, was quoted saying, "With the benefit of hindsight, the content of that letter has bothered me since her death." He said he had released the letter in the hope that it would lead to a British inquest and a "thorough investigation of the facts by the British authorities."
This development follows an announcement by the Surrey County Council coroner in August, that an inquest would be held into the 1997 deaths by a car crash in Paris, France, of Diana and Dodi Fayed. This would be the first British inquest. But county coroner Michael Burgess, who is also the official coroner of the royal family, would not name a date, and no date has been set.
French Authorities May Open Diana Crash Probe
The release of Prince Diana's letter has prompted French authorities to reconsider reopening their own investigation, report several British newspapers. The 1997 car crash also killed Dodi Fayad and driver Henri Paul, who was blamed for the crash.
A French police spokesman said, "When evidence like that emerges after an investigation is completed, it would be normal to reopen it."
Driver Henri Paul's father, Jean, who did not believe his son was to blame for the crash, commented, "This letter may show what really caused that dreadful crash.... He would never drink while working, especially when driving the Princess. If this letter is true, if it was written by the Princess before she died, it backs up what we have said all along."
The letter was big news in all the British press. The Times reports that the blacked out name in the letter was believed to have been a member of her official security detail.
Al Fayad Challenges Blair: Open Inquiry on Death Of Diana And Dodi
Moyhammed Al Fayad, the influential father of crash victim Dodi Fayad, issued a statement Oct. 21, declaring, "I am disappointed that it has taken Burrell six years to reveal this extraordinary correspondence, and it raises questions as to what other secrets he may be harboring.... In what must be seen as a cynical attempt to silence him, Paul Burrell was prosecuted in the criminal courts, but this bungled move has simply served to highlight the involvement of the royal household in the strange circumstances surrounding Diana's death.
"During the investigation which led to the failed prosecution, Scotland Yard acquired a mass of explosive evidence from Burrell, in the form of letters, tapes, and videotapes, which again, has not seen the light of day. It is extraordinary that Paul Burrell did not volunteer this evidence in time for the French investigation into the crash, but it is now vital that he be called to give evidence in an independent public inquiry.
"The Prime Minister must now accept that the time is right for a full public inquiry. Further delay will look as though he is colluding in a cover-up, and the people of this country will not tolerate that."
Fayad refers to the prosecution last year charging Burrell with stealing some effects of Diana. That case collapsed when the Queen personally intervened on Burrell's behalf. According to the Times, the Queen disclosed to the Prince of Wales that she had talked to the butler shortly after Diana's death about possessions which he was looking after.
While a Times editorial claims the letter does not point to a conspiracy, the paper nonetheless calls for an official inquiry by the Surrey County coroner. This inquest is, in fact, required by law since, Diana, as a British subject, died under unclear circumstances.
German Government Prefers Austerity To Making Fight for General Welfare
The cabinet and the executives of Germany's two coalition parties, the Social Democrats (SPD) and Greens met in Berlin for five hours Oct. 19, and proposed a list of new cuts in the pensions, from 2004 onward.
These cuts include: 1) a freeze of pension increases for 2004; 2) a linkage of any further pension increase to the overall income situation of the pension insurance, from 2005 on (basically, a cut in payments); 3) pensioners must pay a share of the special care insurance (Pflegeversicherung), from April 2004 onward; 4) the state pension system will reduce its iron reserve for covering bigger insurance income gaps, from currently 7.9 billion euros ($9.2 billion) to 3.2 billion euros ($3.7 billion).
All of these measures together are "believed" to cover the acute pension insurance gap of 8 billion euros ($9.3 billion)which has, after all, emerged because of reduced payments of citizens into the pension insurance, which has to do with, for example, increased unemployment and lowered incomes. Whatever the government may thinkwhat is clear is that the vast majority of pensioners will not welcome these cuts. One-third of all German voters are pensioners.
The Red-Green government coalition hopes to appear as the alleged "lesser evil" with its own budget-cutting approach, against the "bigger evil" of what the opposition Christian Democrats (CDU) propose.
But when Health Minister Ulla Schmidt of the SPD portrayed a future in which pensioners would only get 40% of their pay through the modified new state social welfare system, whereas everything above that would have to be covered by individual private revenues, she signalled that the SPD will arrive in a few years where the Herzog-Merkel group of the CDU is now.
For concerned German voters, especially those voters at retirement age, there is no real alternative between the Red-Green camp and the CDU camp, or the CDU and the CSU.
As in the United States, the only alternative that will be posed, will be between voter rage populism of the kind that Arnie Schwarzenegger or stands for in California, or the alternative offered by the LaRouche Movement for a new financial system, and a just economic world order.
British Sources Stress Parallels Between Blair and McMillan Ouster
A British source, knowledgeable about politics and history told EIR last week that "the first thought" he had, when hearing of Tony Blair's heart problems on Oct. 19, "was that they were trying on him what had been done to Harold MacMillan, and something was slipped into Blair's coffee."
Blair's drinking too much strong "European coffee" is being cited as one cause for his irregular heartbeat. When Harold MacMillan was forced from office, he developed the symptoms of bladder problems, and thought he had a deadly disease. Yet, just two weeks after he resigned, the source said, he was "right as rain." It is not unlikely, that Blair is getting similar treatment.
Definitely, the way the mediaespecially the tabloidsare playing the Blair heart issue, is that "Blair could well be on the way out." The media are pushing this spin, the source said, because they know how to read these things.
The source emphasized that the new events in the case of Princess Diana, are not unrelated to Tony Blair's troubles, and that the revelations around the letters released by butler Paul Burrell, are being aimed at circles around Tony Blair and Peter Mandelson. It is notable, the source said, that in the Daily Mirror, Burrell also released another letter from Diana, expressing her view that the Duke of Edinburgh [Prince Philip] is "a wonderful man." Also, keep in mind that Burrell is "the Queen's man,"the Queen had ended the attempted prosecution of Burrell for alleged "theft" of items Diana had left him. Important also is that one week ago, the tabloids were covering reports, that the Queen thought that Tony Blair was out to get her, the source noted.
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