Monday, May 18, 2026

Hong Kong protesters have promised a ‘miracle’ but China’s national security law seems impossible to stop

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Sunday’s march was the first opportunity many Hong Kongers had to respond to the revelation last week that China’s National People’s Congress (NPC) — the country’s rubber-stamp parliament — will bypass Hong Kong’s legislature to impose sweeping anti-sedition laws that could drastically undermine civil liberties in the semi-autonomous city.

From the get go, however, it was clear the authorities had no intention of tolerating the protest, which had not received police permission. As crowds gathered in the Causeway Bay shopping district, they were met by an exceptionally large police presence and warnings that any protest would be in violation of both the city’s public order laws and coronavirus social distancing measures.

Hong Kong police were roundly criticized over their heavy-handed tactics last year, including most recently by a former member of a government-sponsored panel looking into the protests. On Sunday it was not just the force police used — tear gas, baton charges, and water cannon against unarmed, mostly peaceful protesters — but also the speed at which they deployed it. The first round of tear gas was fired within 25 minutes of the proposed start time for the march.

By comparison, several unauthorized marches last year — in which hundreds of thousands of people protested a proposed extradition bill with China, eventually succeeding in forcing the government to shelve it — were only broken-up after clashes between protesters and police, often many hours after first getting underway.

Millions of people took part in the protests last year, which changed the city’s character forever and created a yawning political divide that has only grown larger since. Hong Kong now seems set for another summer of unrest, with the key anniversaries of the Tiananmen Massacre and the city’s handover to Chinese rule on the horizon.

The coronavirus caused a pause in the unrest at the beginning of this year, but as the danger passes in Hong Kong, people are more willing to come out. At the same time, however, the police are better equipped and more prepared, and the local authorities seem determined to wipe out any dissent before it gets off the ground.

Looking for hope

Writing in response to the proposed anti-sedition bill, Nathan Law, a former pro-democracy lawmaker, urged Hong Kongers not to be disheartened, pointing out that they had achieved “miracles” in the past.

But short of divine intervention, it’s hard to see how anyone in the city can block the bill. On Wednesday, legislators will resume debate on another law demanded by China, making it a crime punishable by imprisonment to insult the country’s national anthem. That bill has taken over three years to pass, thanks to repeated filibustering and delaying tactics, and protesters plan to encircle the legislature in an attempt to delay it even further.

Neither tactic can be used against the anti-sedition bill, which will be debated and imposed by Beijing’s parliament, not Hong Kong’s, and will come into force regardless of what happens in the city in the coming weeks. Pro-Beijing lawmakers and bodies in the city have already lined up to support the bill, while Hong Kong’s police commissioner said Monday the new law will “help combat the force of ‘Hong Kong independence’ and restore social order.”

With its options limited, the city’s opposition is looking to the international community to pressure Beijing into changing course.

Reaction to the proposed law has been damning. More than 200 parliamentarians and and policymakers from two dozen countries signed an open letter last week slamming the anti-sedition bill as a “comprehensive assault on the city’s autonomy, rule of law, and fundamental freedoms.”

Signatories included Chris Patten, the last British colonial governor of Hong Kong, six US senators including Ted Cruz and Marco Rubio, and numerous UK, European Union, Australian and New Zealand members of parliament.

Later this month, the US Congress is due to decide whether Hong Kong remains sufficiently autonomous from mainland China to justify continuing its special trading privileges. Secretary of State Mike Pompeo said the proposed anti-sedition bill would “inevitably impact our assessment,” and other lawmakers have suggested imposing sanctions against Beijing and Hong Kong officials responsible for the move.

Pressure campaign

Historically, China does not respond well to international pressure. Indeed, part of the stated-motivation for the anti-sedition bill is Beijing’s paranoia that Hong Kong has become a base for anti-regime activity fostered by malicious foreign powers.

By this logic, the denouncement of its moves by those same governments may only strengthen China’s resolve and play into the narrative that overseas actors are behind the unrest.

Nor does the threat of sanctions or international condemnation have a strong track record in recent history. Sanctions can cause misery and death for ordinary people — cut off from vital supplies and hurt by the economy — but they often do not shake those they are designed to punish.

North Korea has defied decades of being a global pariah and crippling economic punishment to pursue its nuclear program, while sanctions imposed on Vladimir Putin’s Russia did not stop him from seizing Crimea from Ukraine in 2014. China is far, far more secure economically and militarily than either country, and can draw on strong alliances elsewhere in the world to balance any aggression from the US.

“The US does have tangible options in its toolkit to exert pressure on China. But after the two-year long trade war, China has encountered all possible US punitive tools and has built its resilience,” the nationalistic state-backed tabloid Global Times said in an editorial Friday. “China’s latest announcement showed its strategic contempt for Washington’s tactics of pressuring Beijing. As long as the US dares to play its cards, China will play the game without hesitation.”
Riot police stand guard during an anti-government rally on May 24, 2020 in Hong Kong.

No way out?

Protests against the anti-sedition bill will continue in Hong Kong, at least for now. Multiple demonstrations have already been planned or called for — though it remains to be seen how many will be willing to come out when police have shown a willingness to crack down hard and early.

Commemoration of the Tiananmen Square massacre is also due to go ahead on June 4, despite continued coronavirus restrictions preventing a mass rally being held for the first time in over two-decades.

Once the law comes into force, and any criticism of the government potential “subversion” charge — as many dissidents in China have learned only too well — a major chilling effect can be expected. There may also be a further radicalizing of those already prepared to use violence, particularly among separatists who might face arrest for past promotion of Hong Kong independence. The increased risk of injury, arrest and prison time as the protests escalated last year turned some away, but it did not stop the unrest, and there is no reason to think the new law will do so immediately either.

But the ability provided under the new law for Chinese state security agencies to operate in the city for the first time, could see many protesters swept up before they have a chance to take to the streets.

Already, some are talking about heading for the exits, a task made more difficult by the coronavirus pandemic, but not impossible. Last year, two protesters sought on riot charges were granted asylum in Germany, and pressure is already growing in the UK for Westminster to do something to protect its former colonial citizens.
Taiwan, where sympathy protests were held in support of Hong Kong over the weekend, has long been a destination for those fleeing Communist rule in China. While the island does not currently have legal protections for refugees, on Sunday its president, Tsai Ing-wen, vowed to “proactively improve and forge ahead with relevant support work, and provide Hong Kong’s people with necessary assistance.”

A similar exodus was seen in the run up to 1997, when China first assumed control over Hong Kong. Ultimately, Beijing’s hands-off approach and honoring of the city’s existing freedoms helped convince many of those who had left to return. Now, as China’s mood over its truculent special administrative region seems to have soured for good, they may be questioning that decision.

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UK to impose 14-day quarantine for international arrivals from 8 June – EU Reporter

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Britain will introduce a 14-day quarantine for almost all international travellers from 8 June, Interior Minister Priti Patel said on Friday (22 May), with anyone breaking the rules facing a £1,000 ($1,218) fine, write Estelle Shirbon and Alistair Smout.

The government said there would be some exemptions, including road haulage and freight workers, medical professionals travelling to help with the fight against the coronavirus and those coming from Ireland.

“Now we are past the peak of this virus, we must take steps to guard against imported cases triggering a resurgence of this deadly disease,” Patel said at the government’s daily news conference.



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Teens face court on murder charges, as Kevin Kourtis’ family grapple with his death

Mr Kourtis was in his house in Langton Street, Riverstone, in the early hours of Sunday morning, when, police said, “a group of at least five males entered the home and stabbed the male occupant, before fleeing”.

Friends and family are baffled about how the tradesman, who had moved to Australia from Cyprus eight years ago, came to lose his life in such horrific circumstances.

“It’s so confusing to me that a bunch of teenagers would [allegedly] do this,” said the friend who said that, to her knowledge, Mr Kourtis wasn’t mixed up with shady people and didn’t do drugs.

“He only had certain people close to him.”

Two teenage boys, aged 16 and 17, were tracked by police dogs from his home to a property on nearby Regent Street, where they were arrested.

The pair, who are not believed to be co-operating with investigators, were charged with murder.

They were both refused bail and were due to appear at Parramatta Childrens Court on Monday.

As police continue to hunt for the other alleged attackers, detectives are inestigating whether Mr Kourtis knew the boys.

“One of the lines that we are pursuing [is] that it was a targeted attack or that the offenders were known to the deceased or the deceased knew the offenders,” Superintendent Jenny Scholz said on Sunday.

Mr Kourtis’ cousin Jodie Kourtis said that his violent death would haunt the family for the rest of their lives.

“Kevin had a kind heart and never deserved such a tragic ending to his life,” she wrote on Facebook.

“Our cousin Kevin will be missed and we will always remember our times together.”

The family are now raising money to repatriate Mr Kourtis’ body to Cyprus, where his mother still lives.

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Court rules on $51 million raised by Celeste Barber during bushfires

The $51 million raised during the bushfire crisis by Celeste Barber won’t be divided among other states and charities despite the comedian’s assurances.

The NSW Supreme Court advised the NSW RFS donation fund today that the money could not be funnelled elsewhere.

But Justice Michael Slattery said the cash could be used to set up a fund to support injured volunteers and the families of those killed.

The RFS was nominated as Ms Barber’s charity at the height of the bushfire crisis in December and January which destroyed thousands of homes and properties and left 33 people dead across the country.

But she made further public statements about her plans as donations soared well beyond the $30,000 target.

“I’m gonna make sure that Victoria gets some, that South Australia gets some, also families of people who have died in these fires, the wildlife,” Ms Barber posted to Instagram in January.

“I want you to know that, otherwise why raise this money if it’s not going to go to the people who absolutely need it.”

Justice Slattery today described Ms Barber as a “public spirited” NSW citizen and he agreed the fundraising drive was a “spectacular success”.

But he said the terms of the trust did not allow the money to be divided up.

“The various public and perhaps private statements made by Ms Barber or any of the donors do not bind the trustees’ application of the funds,” he said.

As well as helping those injured and the families of those killed, the RFS was also told it can spend the money on physical training, mental health training and trauma counselling.

The costs of the court case will also come out of the fund.

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UK aims to reopen primary schools from 1 June, transport minister says

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Britain’s government intends to stick with a plan to reopen primary schools to some pupils from 1 June, Transport Minister Grant Shapps (pictured) said on Sunday (24 May), writes Costas Pitas.

“That’s certainly the intention,” he told Sky News.

The government faces opposition to the plan from some teachers and labour unions.

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Coronavirus live updates: Mental health gets $20m funding boost

Australia did not overestimate the risk the deadly coronavirus posed to the country, Health Minister Greg Hunt has said.

There have been 102 deaths in Australia from just over 7000 confirmed cases.

The country has been shut down for weeks, causing huge job losses, in an effort to stop the spread of the virus.

Mr Hunt said people should just look abroad to see “the speed of spread, the extent of contagion” and the devastation it can cause.

“What we have done is planned for the worst and been able to deliver the best,” he said.

“It shows what we have avoided in Australia could have been catastrophic on a scale unimagined.

“Australians would have suffered not just an outbreak of disease, but huge human suffering, economic suffering.”

Mr Hunt applauded the government’s approach, the health system and its workers and the Australian public.

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Tom Brady Just Pulled Off One Of The Weirdest Double Feats In Golf History

NFL icon Tom Brady pulled off an unusual twofer during a televised golf event on Sunday, nailing two holes with one shot. 

The longtime quarterback of the New England Patriots, who joined the Tampa Bay Buccaneers, in the offseason pulled off an incredible ― and, given his play to that point, very unlikely ― shot to sink the ball for a birdie.

Then, either on his shot or on his way to retrieve the ball, he ripped a hole in the rear of his pants during the coronavirus charity event, which paired him with golfer Phil Mickelson against the team of Tiger Woods and Peyton Manning. 

Here’s the shot from “The Match: Champions for Charity”:

…and here he is showing off his new air conditioning: 

After the event, Brady cracked:

Brady had been struggling until then. NBA great Charles Barkley, providing color commentary, at one point offered $50,000 to charity if Brady could just hit the green. 

When Brady didn’t come close, Barkley razzed: “I should’ve just said if you can just keep it on the planet.” 

As Brady struggled, Barkley kept up the jeers.

“You can be great in one sport and not great in another sport,” he said. “I just want America to know that.” 

But Brady proved him wrong a little later when he pulled off his unusual double feat.

“Take a suck of that, Chuck,” Brady cracked after sinking the shot. 

Woods and Manning ultimately won the event, which raised $20 million for COVID-19 relief efforts.



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Chris Wallace Slams Kayleigh McEnany: ‘I Never Saw A W.H. Press Sec. Act Like That’

Fox News anchor Chris Wallace took aim at White House press secretary Kayleigh McEnany on Sunday, slamming her for going after reporters about their religious faith and for telling them what questions they should be asking.

McEnany had on Friday accused journalists of “desperately” wanting churches and places of worship to stay closed after she was questioned about US President Donald Trump’s claim he would “override” governors who ignored his demand to immediately reopen churches amid the COVID-19 pandemic. A reporter was asking what legal authority the president has to do so.

“I spent six years in the White House briefing room covering Ronald Reagan. I have to say, I never — and in the years since too — I never saw a White House press secretary act like that,” Wallace said to a panel on “Fox News Sunday.”

Donna Brazile, the former interim Democratic National Committee chair, responded that she personally knows McEnany to be an “extraordinary person” but criticized the “combative” approach she’d taken in her new role.

Wallace continued by playing another excerpt from Friday’s press briefing. During that clip, McEnany posed a series of questions ― complete with prepared slides ― that she said journalists should be asking about former national security adviser Michael Flynn.

Conservative commentator Jonah Goldberg labeled McEnany’s behavior “indefensible and grotesque.”

“What Donald Trump wants in a press secretary is a Twitter troll who goes on attack,” Golberg told Wallace. “Doesn’t actually care about doing the job they have, and instead wants to impress really an audience of one and make another part of official Washington another one of these essentially cable news and Twitter gladiatorial arenas.”

Wallace added that McEnany “isn’t acting like she’s working for the public” and acts instead like “what she used to be, which is a spokesperson for the Trump campaign.”

Another panelist, Josh Holmes, the former chief of staff for Senator Mitch McConnell, defended McEnany. He claimed her behaviour was different from past press secretaries because any spokesperson in the Trump administration and campaign “finds themselves under constant attack by the press.” 

“Let me just say, Sam Donaldson and me in the Reagan White House, we were pretty tough on the White House press secretaries and we never had our religious beliefs questioned or were lectured on what we should ask,” Wallace replied.

Wallace, a frequent and vocal Trump critic, was the subject of Trump Twitter outrage last month after a “Fox News Sunday” segment critical of his administration’s pandemic response. 

His latest comments will likely come as another escalation in tensions with Trump. While some primetime Fox News personalities routinely stump for the president, negative coverage last week sent Trump into a Twitter tailspin against the network. On Monday, anchor Neil Cavuto had harshly criticised the president’s claim he’s using the unproven and potentially dangerous drug hydroxychloroquine to protect against coronavirus.

Trump declared Monday he was “looking for a new outlet” and on Thursday complained that Fox News was “doing nothing” to help him get re-elected in November. And on Friday, he raged at the network for airing a poll that showed him trailing presumptive Democratic presidential nominee Joe Biden.



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Big Pharma rejected vaccine prep efforts, watchdogs say

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In 2017, the European Commission proposed working with the pharmaceutical industry to research ways to get vaccines against dangerous bugs to the market quicker, before an outbreak actually occurs.

Industry declined to sign on, according to a new investigation published Monday by two NGOs focused on corporate accountability.

It’s a particularly timely critique within a broader attack on the Commission’s collaboration with Big Pharma, known as the Innovative Medicines Initiative, as the world races to find treatments and vaccines to help both humans and economies recover from the coronavirus.

With IMI’s survival up for debate as part of negotiations over the EU’s next seven-year budget, the NGOs Corporate Europe Observatory (CEO) and Global Health Advocates are urging member countries and MEPs to reject renewing the public-private partnership without major reforms.

The Brussels pharma lobby EFPIA counters that preparation for meeting urgent needs is at the soul of IMI, and that this particular project just wasn’t a good fit. But the watchdogs say it reflects how IMI is too hobbled by industry influence to serve the public good.

Behind the curve?

Three years ago, the Commission proposed a new research project on the decision-making process for vaccine approvals. The aim was to “facilitate the development and regulatory approval of vaccines against priority pathogens, to the extent possible still before an actual outbreak occurs,” according to a letter from DG Research Deputy Director-General Signe Ratso to Martin Pigeon, a researcher for CEO.

The effort would also help regulators use alternative methods to confidently approve immunizations.

After discussions with industry partners, “the topic idea was eventually not taken up by the EFPIA companies,” Ratso said.

Marine Ejuryan, Global Health Advocates’ advocacy manager, said the industry’s refusal “to work on biopreparedness, even with public subsidies … demonstrates many of the inherent problems with the current biomedical profit-driven R&D model.”

Its agenda, she added, is “overly dominated by industry priorities while sidelining poverty-related and neglected diseases, including coronaviruses, simply because these are not profitable for the industry.”

EFPIA spokesman Andrew Powrie-Smith disagreed, writing in an email that drugmakers did have “significant interest” in the idea.

Ultimately, however, the specifics seemed “better suited” to groups “focused on regulatory evolution rather than a public-private consortium focused on removing scientific bottlenecks,” he contended.

For their part, IMI and the Commission noted in statements to POLITICO that the public-private partnership does have projects that can help fight the coronavirus, launched both before and during the current outbreak.

They include a 2015 biopreparedness initiative known as ZAPI, which resulted in antibodies for the MERS coronavirus that are now being studied to see if they could work against the COVID-19 bug.

Further, they said, some of the elements of the 2017 vaccines proposal have been incorporated into a fast-tracked IMI topic launched in the early days of the current coronavirus emergency, which is already funding eight projects.

As Ejuryan sees it, however, IMI’s coronavirus efforts have come too late.

“An effective response to epidemics requires timely and sustained investments,” she said. “Otherwise, when a pandemic emerges, the research and development simply hasn’t been done in time to respond effectively.”

But Powrie-Smith rejected the watchdogs’ report as a “biased” salvo launched as part of an ongoing campaign against the industry. The emphasis on the 2017 vaccine discussion, he said, “shows an eye for a headline and fundamental lack of knowledge on the topic.”

“IMI has, and continues to play a key role on biopreparedness, focused on its core purpose of accelerating the development of diagnostics and therapeutics,” he said.

Uneasy partnership

Since it started in 2008, IMI has been a bête noire of watchdog NGOs, like the Gates Foundation-backed Global Health Advocates and CEO, which gets funding from George Soros’ Open Society Foundation.

IMI2, the current iteration, has a €3.3 billion budget over seven years, with half coming from the Horizon 2020 research grant program and the other half from industry.

The idea is that the EU taxpayers offer funding to non-profit researchers or small biotech firms, while EFPIA members match the euro figure with either grants or “in-kind” contributions. Projects are supposed to focus on areas where breakthroughs are desperately needed, or where the market doesn’t provide incentives for new investments, like antibiotics.

It’s meant to fight Europe’s “innovation paradox,” as a Commission spokesperson put it: “We have very good science but little innovation and market deployment.”

The problem, according to the NGOs, is that IMI isn’t fulfilling its mission to address unmet need. Rather, investments heavily skew toward research in areas like cancer and Alzheimer’s, which are already key targets for the industry, while other conditions on the World Health Organization’s list of priorities, like AIDS, tobacco use and strokes — not to mention the so-called neglected tropical diseases that primarily affect low-income countries — get little attention.

There have also been some high-profile spats between industry and its non-profit collaborators: A network of European specialists in antimicrobial resistance pulled out of an IMI project in 2017 citing “unresolved problems of conflict of interest in shaping policy recommendations” by its industry partners.

The Commission spokesperson rejected the suggestion that IMI is ignoring unmet needs: Alzheimer’s still has few treatment options, for example, and the Commission “massively” funds research into diseases of poverty in other ways, if not IMI.

An IMI spokesperson added that while the public-private partnership didn’t launch its Ebola vaccine initiative until 2014, when the West African outbreak started, it was not on the WHO’s list of priorities in 2013, ruling it out as a strategic research topic.

Unused innovations

One project could have great implications for poor African countries trying to manage HIV, the report notes. But the findings aren’t being used.

The 60-year-old drug flucytosine is a key treatment for people living with HIV-weakened immune systems who are more vulnerable to fungal infections, a top cause of HIV-related death. But it’s not available in much of Africa and Asia because of its cost and lack of generic options.

A project to find a cheaper, more environmentally-friendly way to produce the drug — involving the pharma giant Sanofi, the University of Durham and €10 million from the EU — achieved its goal by early 2017.

Yet neither Sanofi nor Durham appears to have given manufacturers in poor countries the rights to use this new production method. (Durham told the report authors it’s working on it. Sanofi didn’t respond to requests for comment by the NGOs nor to POLITICO’s request for comment Sunday.)

The new method also works for one of Sanofi’s other existing HIV drugs, leading the report to question whether IMI “has merely provided Sanofi with a handy — and publicly-funded — cheaper process in the production of two of its existing medicines.”

The IMI spokesperson acknowledged that there’s not much it can do if companies don’t follow through. Usually, IMI participants report that they’re using the results when the projects close out.

But ultimately, “projects are not obliged to report to us in the long term after the end of the project,” the spokesperson said. “This makes it very hard to follow up on long-term impacts.”

The Commission is working on the next round of the public-private partnership, which would likely see the medical device industry added to the mix along with drugmakers.

Acknowledging the report, a Commission spokesman said that “all constructive criticism is welcome and will be factored into the impact assessments and proposals for the next generation” of public-private partnerships.

Cristina Gonzalez contributed reporting.



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How Merkel caved to Macron

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Angela Merkel has finally caved to France’s Emmanuel Macron | Guido Bergmann//Bundesregierung via Getty Images

Opinion

Redistribution will not cure Europe’s ailments.

By

Updated

Josef Joffe serves on the Editorial Council of Die Zeit in Hamburg. He is also distinguished fellow of Stanford’s Hoover Institution.

HAMBURG — Once the uncrowned empress of Europe, Angela Merkel has finally caved to France’s Emmanuel Macron.

Ever since Macron captured the Elysée in 2017, the German and French leaders have been locked in silent combat over Europe. Merkel stood for reformist vigor and fiscal virtue: no bail-outs, no eurobonds and keep your hand out of our coffers. Macron preached spending, redistribution and centralization.

Now it seems the coronavirus crisis has delivered victory to Paris. Macron and Merkel’s joint unveiling of a European recovery fund worth half-a-trillion euros to bail out the sinking EU economy will remake the bloc in France’s image, turning Europe into a continent-sized welfare state.

The new recovery fund signals an unprecedented power shift from 27 sovereign nations to the European Commission. This unelected body will borrow hundreds of billions and, in the name of “European solidarity,” hand them over as gifts, not loans.

How will the mammoth debt be repaid? We’ll worry about that later. Who would feed at the trough? A large part will go to the usual suspects, known as “Club Med” or the “Olive Belt” led by France — a pre-destined beneficiary of the coming cash bonanza — and running from Lisbon to Madrid, Rome and Athens.

As Hamilton, so Macron: The idea is to spread the wealth and fatten the center.

This power shift recalls America’s fabled “Alexander Hamilton moment” of 1790 when the Feds assumed states’ debts piled up during the Revolutionary War. The first Treasury chief’s generous gesture came with hardball politics, laying out the road to ever-more power for Washington.

As Hamilton, so Macron: The idea is to spread the wealth and fatten the center. Add Merkel who muses: “Alone, the nation-state has no future.” Onwards and upwards for the United States of Europe.

There’s are good reasons however, why such a move has been resisted until now.

As ostensibly compelling it may be, the U.S.-EU analogy falls flat. The differences are glaring. Unlike the 13 ex-colonies, the EU-27 cannot rely on a common history, language and culture. They’ve been around, as separate identities, since the Roman empire. After crystalizing into nation-states circa 1500, they have fought to the death whoever tried to unify Europe under his knout, from Habsburg to Hitler.

Today, war may be out, but sovereignty is still in. France will not cede the scepter to Germany, and vice versa. The rest will not defer to the duo, nor to Brussels. Since the start of the pandemic, in fact, the nation-state has reasserted itself, as countries close borders and coddle sickly national industries.

And then there’s the harmful incentives the recovery fund creates, given the eurozone’s current composition (and the varying willingness to reform among its members).

Jaundiced economists warned from day one that a common currency requires a real state based on nationhood and obligation. Absent such overriding attachment, how could Brussels take from Peter in Berlin to give to Paolo in Rome?

Under the euro, capitals must part with sovereignty over economic policy, a pillar of the nation-state. The price is cruel. States can no longer devalue to stay competitive, for francs and liras are gone. Instead, they’re told to stop splurging and borrowing to buy off powerful domestic interests like public-sector unions. They have to get their house in order with painful market reforms that replace short-lived relief with solid growth.

France and Italy, No. 2 and No. 3 respectively in the EU’s GDP ranking, have not swallowed the bitter medicine. Instead, they have continued to rack up debt along with the rest of the Olive Belt. After all, why swallow it when you know you no longer have to pay a hefty devaluation premium under the solid-gold euro? Pocket the cheap money instead.

As deficits and debits soared, the logical next step was a “transfer union.” Eager to get into the EU kitty, they preferred the dole to more debt.

Meanwhile, Austria, Holland, and the Scandinavians gathered around the German CFO to insist on reform-minded fiscal discipline. The result has been a 20-year power struggle, in which communal virtue kept grinding up against national egotism.

Merkel’s new tune is not as revolutionary as it sounds | Andreas Gora/Getty Images

Now, suddenly, Merkel has openly broken ranks, sacrificing Teutonic rigor to Macron’s Gallic ambitions. But if you look to the euro’s tortured history, this is not all that surprising: For years, profligacy has trumped prudence.

Ever since European Central Bank chief Mario Draghi famously vowed in 2012 “to do whatever it takes to preserve the euro,” the ECB has dodged the treaty constraints. And behold: At each point, those brutal, arrogant Germans fussed and fumed — and then paid up.

The “Club Med” countries got the message: Berlin, which profits most from integration, will not let the project sink.

Merkel’s new tune is not as revolutionary as it sounds; it just formalizes routine practice. Sure, the so-called frugals are not amused, but they will be bought off. The recovery fund will kick in, as have all the other recue mechanisms since Greece went bankrupt.

The harsh truth is that a mountain of free cash will not be enough to cure Europe’s ailments.

So, let’s hold the applause for the Franco-German “engine.” Its recovery fund is where short-term relief trumps Europe’s long-term needs. Why will national governments go up against entrenched interests and pay a murderous political price at home to clean up their economies if they can haul in hundreds of billions for free?

The harsh truth is that a mountain of free cash will not be enough to cure Europe’s ailments. Those predate the coronavirus pandemic.

For Europe to rise again, it will have to do more than transfer riches from north to south. The cure is not redistribution, but restarting the engine of growth.

Don’t count on Macron, who has been foundering against the armies of the status quo since he took office. Nor on Merkel, who has given up coaxing the EU into market-driven rejuvenation.



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