Thursday, 30 October 2014

energie-wende oder junck bonds

Lately, the press regarding the Transatlantic Trade and Investment Partnership treaty has mostly been lately either smug resignation to the inevitable or nebulous fears that come across a bit feeble and embarrassing for the agreement’s opposition.
Naked Capitalism, however, delivers an accessible and literate summary of the arguments and developments that are coinciding with Germany turning sour on the whole deal with America with its perceptions and understanding of what’s at stake matured and appropriately jaded. Aside from the mutual watering-down of environmental- and labour-regulations and other concerns, there is more over the clear potential for corruption with revolving-door commissars and “judges” to act as the court of last appeal in disputes between member states and businesses. It is this last point that is focusing Germany’s awareness—what with the German government already at the mercy of the trade courts and one foreign energy concern’s self-interests over the country’s resolution to wean itself away from nuclear power. Germany faces reparations for losses the company will incur due to this decision—and the company’s right to seek compensation for its investors is already enshrined in legislation that could override a stand taken by the state. Settlement was eventually reached without invoking arbitration—which is a very Byzantine process by design—but if the legal framework is unraveled and corporate bullying is made easier and pushed out of view, it is not hard to imagine that Germany’s energy-reform could have taken a very different trajectory.