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Even the most optimistic of Democrats struggle to believe they’ll hang on to a majority in the House. There seems to be no way back to the filibuster proof majority required in the Senate. However, fear not those who believe all hope for action on environmental issues dies with those majorities. There may be a case to be made that Republican majorities may lead to more rather than less environmental and consumer safety legislation being agreed at a federal level.

Currently sat in Congress are bills on TSCA reform and cosmetics, not to mention the elephant in the room that remains energy and climate. Stymied by the toxic partisan atmosphere in Washington these bills seemed to be going nowhere fast with Democratic majorities. Would a Republican one as of next week improve their chances?

As last night’s Daily Show with President Obama once again highlighted there is a widely espoused view (at least on one side of the aisle) that special interests, i.e. business, have been blocking many of the things Democrats wanted to do. No doubt including the legislation mentioned above. And it’s true that industry people I have spoken to in recent days suggest that some of the bills currently in Congress are indiscriminate in their approach, disproportionate in their effect and will die a quick death in a Republican controlled legislature.

However, the interesting idea I’ve come across is that Republican majorities will not mean the end of efforts at a federal level to deal with these subjects, rather it will increase the chance that legislative activity will succeed. It seems the risk of inaction at federal level may be too great for business. What a Republican led Congress may mean is advocacy efforts from green groups moving to the state level or towards federal regulators (the latter already has happened to some extent both on climate and chemicals).

Now business may be many things but it aint stupid. Would you rather deal with firefighting in fifty different states, with the possible outcome of fifty different sets of rules for your industry and products, or have just one? Especially if the fifty are hard to control, whereas the one you have a sympathetic bunch in Congress who could be persuaded to back a bill you can live with. Do you also want to sit tight for two years at a federal level, while in that time the tide may turn, returning the initiative to folks who’s ideas you can’t live with? Business at the end of the day wants certainty and a level playing field.

As such, the next two years may be a good opportunity for work to get done on some of these topics. Many would agree that an energy bill is needed, TSCA reform necessary, but until now no consensus could occur due to the nature of the politics. With this in mind, the question is whether green groups can hold their noses and compromise with a Republican led Congress and whether Republicans selected and elected by people that want to see an end to big (i.e. federal) government will take a political gamble of supporting it. In any case, my bet is that business will be advocating that they do so.

James

Last week over dinner I listened to former E.U. commissioner Guenter Verheugen make an impassioned and at times enlightening plea for a strengthening of the Trans-Atlantic relationship. Listening to the BBC World Service this evening at home there was certain irony in the fact that there would be one less American alive this evening if he had already got his way.

As the former chair of the Trans-Atlantic Economic Council at least part of Guenter’s plea was for more movement in reducing the NTBs that prevent the trans-Atlantic relationship from reaching its full potential. One of the proposed solutions on offer around the table that would kickstart the regulatory convergence agenda? Mutual recognition of standards across the Atlantic.

The argument was made that regulatory convergence in areas already regulated was at best a long shot due to the different legal approaches of the two areas and the politics in play. Better for both sides to accept that neither U.S. nor E.U. governments want to kill their citizens and accept that product standards offer equivalent levels of protection, leaving a regulatory convergence approach for yet to be regulated areas such as nano technology.

Alas we were all perhaps forgetting that in some cases the U.S. does actually want to kill its citizens. This evening there is a news from Arizona that the fact that a drug to be used in a lethal injection has come from Europe is enough for a judge in that state to accept a stay of execution because the drug may not meet U.S. standards of safety. It seems there are some upsides to the lack of a true trans-Atlantic marketplace after all.

James

You may not agree with them, but you have to admire the cajones of the Con-Lib government in the U.K. The kind of swinging cuts that have been announced and widely trailed have given rise to a fair bit of consternation. Like, do these guys expect to get reelected?

As this recent piece from the Washington Post suggests, Republicans here may be talking about cutting back on government but actually doing so is a little bit harder said than done. Democrats will of course tell you that budget deficits tend to rise with Republican leaders, not fall. Tax cuts and a propensity not to want to cut back on programs that benefit the folks back home before the next election cycle only lead in one direction.

With my U.S./European comparative hat on my interest was sparked by what was “ringfenced” from the cuts in the UK: schools, the National Health Service and overseas aid. I think we can conclude that the U.S. may choose to “ringfence” other things if it ever gets round to deep cuts. A thought; perhaps a comparison of what gets “ringfenced” in each state may give us some insight into the values and outlook of each country?

My guess for the US: defense, ethanol subsidies and Congressional expenses all survive.

James

(Tuesday October 26) – It seems I am not the only one thinking about the need to compare cuts. This U.K. based website is trying to crowdsource where the cuts are falling in the U.K. and asking whether folks in other countries would like to do the same.

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My post last night on my reflections on time here in the U.S. led to a comment from Dan in Brussels. His comment reminded me of the video below from the RSA in the U.K. on the subject of how our perception of time affects us. Interesting video from a great series, you can check out more of them here.

James

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Now there’s a problem

I think I may slowly but surely becoming more American. Earlier this week I noted I became irritated by the fact that five minutes after sitting down in a D.C. restaurant I was still without a menu or the obligatory glass of iced water.

My response goes to show that Brussels is but a fading memory. The city does have many fantastic and very affordable restaurants that serve on average better fare than here for the equivalent price. However, it is the complete opposite of America in terms of service. You can sit there for what seem like eons before even an acknowledgement of your existence by the waitress. Complain and you’ll get the Belgian roll of the eyes (the equivalent of the Gallic shrug). Perhaps even a suggestion that you’re lucky to be a customer. You are of course free to go elsewhere, the waiter may seem to suggest. After a few years in Brussels this, of course, all seems quite normal.

Despite this, I think the Belgian, and dare I generalize and say the European, approach may have something to recommend it to America. Whether I seem to look in the U.S. there seems to be an assumption that things should happen now. Evidence of this can’t wait culture, and its negative effects, occur to me almost every day i am here.

Conspicuous consumption abounds on the Rockville Pike just down the road from my house. Can’t wait till Monday morning to buy that widget you don’t really need, fear not they’re open now. You don’t even have to have money to pay for it. They’ll offer easy credit on today only sales prices, always. Of course, one doesn’t have to be a genius in this post credit crunch world to work out where this gets us all. Folks without homes they could never afford and a fragile global economy.

In politics, the twenty four hour news-cycles and the stinging long tail of social media mean government officials can be let go for snippets of video taken out of context by right winger bloggers or attacks on opponents generated with less than a satisfactory examination of the facts from the other extreme. We expect action now. Obama delivers historic healthcare reform. He staves off economic depression. But the voters get angry because he hasn’t done something about a nine point six percent unemployment rate now.

It all leads me to the reason why I think there’s a sense of frustration when i hear Americans talk about our little European project. Things rarely happen now in Europe. It must be quite frustrating for a bunch of people who are used to getting what they want now.

However, i’ve come to the conclusion that sometimes waiting is good. Time allows one to focus on what’s important, not for the instant but for tomorrow. Time allows judgements to be considered, consensus to be reached or directions to be changed after sober reflection. Time allows for that Belgian chef to cook my food, rather than microwave it. For my appetite to grow so I know I’ll enjoy it.

Some things just can’t happen now. They take time and there are some advantages to the fact that they do.

James

Dazed and Confused is one film that I’ve never got my wife to watch. It lasted all of ten minutes the last time I put it in the DVD player. To be fair to the missus, the film does not have a huge amount to recommend it. Despite being stocked full of stars before they were famous (Ben Affleck, Milla Jovovich and Dr. Green’s wife from ER to name but a few) my fondness is probably due to the fact it reminds me of my own care free years at High School. I had hair that was far too long and did far too many things that weren’t too smart in retrospect. It also has one great line from Matthew McConaughey character:

“That’s what I love about these high school girls, man. I get older, they stay the same age.”

It strikes me that chemicals policy debates are pretty analogous. I’ve changed city, but the debate seems to have remained the same. The NGO  community is saying: hey there are lots of chemicals in consumer products, they are finding there way into you, our current regulatory system is not dealing with this and if it has data, industry isn’t sharing it. In essence, (chemophobia + inadequate regulatory regime) times by mistrust of industry = need for reform. If you want a take on what’s being discussed check out this blog. Industry comes back with facts about safety of individual products and a nod to the need to remain competitive. Alas, it didn’t work in Europe, and while the US political situation is different, my betting would be in the long term some kind of reform is coming down the tracks. With industry as far as I can see not proposing an alternative, it’s going to be all about keeping the cost of legislation under control and ensuring that it does give some business certainty; two areas where I think European industry would suggest REACH failed.

Happily, I am doing my bit to try and get industry to not remain dazed and confused and learn from the past. Next week, Fleishman-Hillard’s International Advisory Board member, Guenter Verheugen, former Vice President of the European Commission and one of two Commissioners to lead on REACH, will speak at a working breakfast at the U.S. Chamber of Commerce in an effort to help industry think about what it can learn from European debates. You can find out more here.

James

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Juxtaposition

NYT editorial this morning:

“…recession and resurgent German nationalism have weakened the authority of E.U. institutions.”

EU Ambassador in the Washington Post on Saturday:

” The union is alive and well, taking strong, decisive action that is having an impact on Europe and the world.”

According to the Wall Street Journal earlier this week, it seems those of us who believe in the benefits of free trade are losing the argument here in the U.S. It strikes me however that an upcoming event at the U.S. Chamber of Commerce on the economic opportunities afforded by increased U.S./E.U. trade may at least provide some of the antidote. If only we could get U.S. business and political elites to stop fixating on Asia and instead see the political and economic upside of a political reengagement with Europe on trade.

The Chamber event should hopefully build upon the case made by a study funded by the European Commission from 2009 that suggested that addressing actionable non-tariff measures  would result in benefits of €41 billion (USD 56.7 billion) per year for GDP and 6.1% for export for the United States.

Alas, despite the best efforts of the folks at the Chamber one has to feel a little bit despondent as a European in D.C. I have been to a number of E.U. focused think-tank events in recent months and have to report that you are lucky to find half a dozen students in attendance. Forget policy or business elites. One commentator I heard speak noted that the White House is the first in living memory not to have a natural reflex towards Europe as a continent, while another noted that he could count those business people interested in U.S./E.U. engagement on one hand. When speaking to committed free traders out and about, I have to remind them that their biggest trading partner is the E.U. not the Canadians. It’s all rather sad given the progress our project has made in the last fifty or so years.

A renewed focus post elections on removing trade barriers with Europe should be interesting for a number of reasons. The Commission study points to concrete measures that would result in concrete gains for the both economies. At a time when the American economy still needs a boost, such gains would surely be welcome on both sides of the Atlantic.

Politically, it would seem hard for even the most ardent opponent to argue that lowering trade barriers with Europe would lead to jobs being shipped overseas due to lower labor costs or poor environmental standards. Indeed, it would be interesting to see whether the White House would have an interest in working with Congressional Republicans post-election on this issue in order to slay some of its own party’s demons on free trade, as well as of course prove that it’s not anti-business and it is for economic growth. The increased exports forecast by the Commission study would of course help Obama’s own goal of doubling exports within five years.

There are clearly some challenges to be overcome. Firstly, Europeans need to realize that they have to make a public case here in the U.S. As the recent Transatlantic Trends study highlighted, the average American and the average European do believe they share values. However, the average American also believes the U.S. shares as much common interests with China as it does with the E.U. It will be interested to see what political elites think when the GMFUS releases its opinion leaders survey later this year. In any case, Europe has no automatic claim on American’s mind space, we’ve got to make the case that collaborating with Europe is in their interests more than collaborating with the Chinese or other parts of Asia.

Secondly, we still have a job to do in educating such elites on the European Union. Americans are still I think scratching their heads over the impact of Lisbon. If we don’t seek to explain the powers of and importance of our Union, the perception will be only of increased complexity of having three Presidents and increased powers to those pesky MEPs who veto sensible trans-atlantic data protection agreements.

Finally, the new European Union delegation needs to work hand in glove with trans-atlantic business in a concerted effort to put this issue on the agenda with opinion leaders, in the media and in Congress and with the Administration. I am not convinced any of the current fora, including the Chamber have the laser like focused required to do this job. A single issue coalition is required to give business on both sides of the Atlantic a true rallying point.

James

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Official logo of Brussels
Image via Wikipedia

I am back home in Brussels for a few days at the beginning of September for work. Before my rose tinted specs are brutally removed by a lack of sun, here’s the first in what may turn out to be an irregular series of posts on things I miss about Europe’s capital.

#1 My feet

Since moving away from the country in which I spent the best part of decade, I am beginning to miss my feet. It’s not that they’ve suddenly become detached from my legs, or that I don’t use them as much. In fact, I think I use them more. This is much to the shock of US friends and colleagues who hail taxis to go more than two blocks. Nor is it that the subsidised snacks  in the office have extended my waistline to such an extent that I can’t seem my little pinkies. Although I have put on a few pounds to be fair. No, it’s that I just don’t need to constantly look at them anymore to avoid standing in the mess left by dogs (and their owners).

In Brussels, through necessity rather than choice, I adopted a concentrated look at the pavement while walking style. While I did bump into the odd lamp post my eye to foot coordination improved to near Olympic class as I navigated the Avenue Louise doggie-do slalom.  (btw – If Brussels ever gets to host an Olympics surely there shall be a lobby for the inclusion of doggie-do slalom in the Games).

Here in DC I have yet to come across anything close to the equivalent of a nursery slope. In fact, dog owners scoop and bag with such alarming regularity that one wonders whether the US will ever make it to the standard of doggie-do dodging proficiency that the Belgians set. The bar, or piles, being so markedly high in my former home town.

Fear not feet lovers everywhere. I have resolved to sit down at the end of each working day and take some special time with my feet. I should not want them to feel neglected or disappear in existential angst the moment I look away. Some day I shall return to Brussels and I may need them.

James

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How do you EU?

I am slowly but surely coming round to the world view (perhaps unsurprisingly) that the first baby step in tackling many of the world’s most difficult challenges is a strong partnership between the US and EU.

On both sides of the Atlantic, we need to quit obsessing with China and start working to making the world a better place through concerted bilateral efforts. With the size of our consumer markets, the share of global trade flows we hold and the political clout we carry, where we lead others may well feel they have to follow.

Here’s my starting point for a list of the organisations here in D.C. that are seeking to help make that US-EU connection happen. If I’ve missed any let me know in the comments section and I’ll happily add them.

EU institutions in D.C.

European Union delegation to the United States

European Parliament’s Liaison Office to the US Congress

US/EU institutional fora

Transatlantic Economic Council

Think-tanks focused with an EU focus

Center for Transatlantic Relations

The Atlantic Council

The European Institute

The German Marshall Fund of the United States

Think-tanks with EU programmes

Center for Strategic and International Studies

The Brookings Institution Center on the United States and Europe

Carnegie Endowment for International Peace

US/EU business organisations

Transatlantic Business Dialogue

European American Business Council

US business organisations with EU programmes/committees

United States Council for International Business

Other US/EU networks

Washington European Society

Transatlantic Policy Network (network of legislators from Congress and European Parliament)

James

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