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from MacroScope:

EU slowly tightens screw

A coffin of one of the victims of Malaysia Airlines MH17 downed over rebel-held territory in eastern Ukraine, is carried from an aircraft during a national reception ceremony at Eindhoven airport

The EU is slowly tightening the screw on Russia, with senior officials proposing yesterday to target state-owned Russian banks in its most serious sanctions so far. Ambassadorial talks on how precisely that is to be done continue today and the measures are likely to be enacted next week.

One key proposal is that European investors would be banned from buying new debt or shares of banks owned 50 percent or more by the state. These banks raised almost half of their 15.8 billion euro capital needs in EU markets last year. That is a big deal and there are increasing signs of investors turning their back on Russia lock, stock and barrel. However, with its giant FX reserves, the central bank can provide dollars to fund external debt for a considerable period of time.

The ambassadors did agree to add more people and entities to the EU's asset freeze list, using expanded criteria including Russian companies that help to undermine Ukraine's sovereignty. The 15 individuals and 18 entities, half of which are companies, will be named today. Russian shares are down about 1 percent in early trade.

The United States said Russia was firing artillery across its border to target Ukrainian military positions. It also said there was evidence the Russians intended to deliver heavier and more powerful multiple rocket launchers to separatist forces.

from The Great Debate:

Israel’s Iron Dome is more like an iron sieve

An Iron Dome launcher fires an interceptor rocket in Ashdod

Israel's vaunted Iron Dome defense system is more like an iron sieve. It fails to destroy all but a few of the rockets that Hamas and other Palestinian militant groups fire at Israeli communities. But Israel’s early-warning civil-defense systems have proved highly effective.

The radar-guided Iron Dome missile, meant to intercept and smash incoming rockets in the seconds before they strike their targets, works just a small fraction of the time, according to a detailed analysis carried out by scientists at the Massachusetts Institute of Technology. The study was funded by the John D. and Catherine T. MacArthur Foundation and Ploughshares Fund.

from The Great Debate:

The war in Gaza threatens Egypt too

A Palestinian woman wearing clothes stained with the blood of other relatives, who medics said were wounded in Israeli shelling, cries at a hospital in Gaza City

Cairo’s efforts to mediate between Israel and the Palestinians in Gaza, according to conventional wisdom, have largely been dictated by President Abdel Fattah al-Sisi’s animosity toward Hamas. After all, Hamas is an offshoot of the Muslim Brotherhood, which Sisi’s government has declared a terrorist organization and regards as a serious threat.

That is why, this argument goes, the Egyptian ceasefire proposal ignored Hamas’ conditions and why the Israelis so quickly supported it. The proposal called for an immediate ceasefire. Only then would the terms be negotiated, including Hamas’ demands for an end to Israeli attacks, an end to the blockade of Gaza and the release of rearrested Palestinians who were freed in a prisoner 2011 exchange.

from MacroScope:

EU on Russia sanctions: slowly, slowly

Ukraine's President Poroshenko and Dutch ambassador to Ukraine Klompenhouwer commemorate victims of Malaysia Airlines Flight MH17 outside the Dutch embassy in Kiev

EU foreign ministers meet to decide how precisely to deploy sanctions agreed 10 days ago to hit Russian companies that help destabilise Ukraine and to block new loans to Russia through two multilateral lenders.

The EU foreign ministers are tasked with preparing a first list of people and entities from Russia that would be targeted. The number of individuals and companies to be penalized is up for grabs so there is scope to adopt a tougher posture.

from Stories I’d like to see:

The facts on Iron Dome, suing over Flight 17 and reviving the VA

An Iron Dome launcher fires an interceptor rocket in the southern Israeli city of Ashdod

1. Figuring out the Iron Dome:

As I kept reading and seeing television reports last week about how the Iron Dome missile defense system was doing such a good job protecting Israel from Hamas’ rockets, this intriguing story by the highly regarded veteran journalist James Fallows appeared on the Atlantic website.

Fallows points to other reports suggesting that the system’s success might have been greatly exaggerated and, in fact, that in the midst of war, reporters – he singles out this Washington Post story -- often get seduced by military officials and weapons makers into overstating how effective some new piece of weaponry has been.

from MacroScope:

Acid test of EU’s resolve over Russia

Emergencies Ministry member walks at the site of a Malaysia Airlines Boeing 777 plane crash near the settlement of Grabovo in the Donetsk region

EU leaders said over the weekend they would be prepared to impose tougher sanctions on Russia, giving Vladimir Putin one more chance to douse the violence in eastern Ukraine and help investigators do their work at the site of the crashed Malaysian airliner or face the consequences.

A statement from the British government said Germany’s Angela Merkel, Britain’s David Cameron and France’s Francois Hollande agreed on a telephone call that their ministers should be ready to announce a fresh round of sanctions at a meeting of the European Union's Foreign Affairs Council on Tuesday.

from MacroScope:

A turning point?

Emergencies Ministry members work at the site of a Malaysia Airlines Boeing 777 plane crash in the settlement of Grabovo in the Donetsk region

Could the shooting down of a Malaysia Airlines plane over Ukraine be a fundamental turning point in the crisis that has pitted Russia against the West? And if so which way – towards rapprochement or a further escalation?

Kiev accused militants fighting to unite eastern Ukraine with Russia of shooting down the Boeing 777 carrying nearly 300 people from Amsterdam to Kuala Lumpur with a Soviet-era ground-to-air missile. Leaders of rebels in the Donetsk People's Republic denied any involvement, although around the same time their military commander said his forces had downed a smaller Ukrainian transport plane.

from John Lloyd:

As Israel attacks Gaza, Jews elsewhere feel an impact

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As the death toll in Gaza rises, so does anger against Israel -- and sometimes, by extension, Jews -- in Europe and elsewhere.

We should mark how unique this is. There's a very large, and often very rich, Russian community in London -- and there are no attacks on Russians or their mansions, restaurants or churches because of the Russian seizure of Crimea and sponsorship of uprisings in eastern Ukraine. 

from MacroScope:

EU carve-up

Elected president of the European Commission Juncker is congratulated by European Parliament President Schulz after his election in Strasbourg

EU leaders meet for a summit at which they were supposed to decide who gets which European Commissioner posts – one for each member state – in what will be a huge carve-up, so huge in fact that it may well be that only a very few jobs are decided tonight.

Current best guesses – though they are just guesses – are that despite a willingness among some to play nice with the Brits, Prime Minister David Cameron may lose out again having voted against Juncker at a June summit. He is seeking one of the big economic portfolios; internal market, trade or competition but putting forward a low-profile politician as his point person in Brussels has not that made that any more likely.

from MacroScope:

New EU takes shape

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The new EU aristocracy will be put in place this week with the European Parliament to confirm Jean-Claude Juncker as the next European Commission President today and then EU leaders gathering for a summit on Wednesday at which they will work out who gets the other top jobs in Brussels.

Although Juncker, who will make a statement to the parliament today which may shed some light on his policy priorities, is supposed to decide the 27 commissioner posts – one for each country – in reality this will be an almighty horse-trading operation.

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