Swedish Industry Minister Maud Olofsson will be facing a tough parliamentary question session on Tuesday, Dec. 16, when the opposition Socialist Party demands to hear a clearer verdict on the bailout of SEK28 billion earlier promised to the car manufacturing industry. It is a question of whether the coalition government is going to pursue said bailout or is simply misleading the industry and the Swedish people.
"If it shows that the government's crisis package is not actually SEK28 billion as promised, then it is serious", says Tomas Eneroth, spokesman for the Socialist Party Industry Committee. He wants to see the bailout papers on Olofsson's table.
Last Thursday, Dec. 11 the coalition government through Finance Minister Anders Borg and Industry Minister Olofsson, presented the rescue package for the car industry which consists of a SEK28 billion financial injection.
The billions from the European Investment Bank (EIB) can not be loaned directly to either SaaB or Volvo since they are both owned by the American company Ford or GM, and not either to Opel in Germany. The problem is that they are under a common financial system with their respective US owners.
"It would mean that if (these car companies) were given the rescue money at this time and GM or Ford declares bankruptcy, the money would simply disappear into a black hole, without a cent left. This is a huge amount for Europe and even if both US companies were to survive, they could announce that they will develop new car technologies in Detroit, for which European taxpayers will not be too happy to get involved in, much less pay for," said Lars Holmquist, European car sub-contractor.
Holmquist believes that the Swedish government would want to build a new company, something of a Swedish car development type, with the state as primary owner and thereafter place the multi-billion rescue money into this new organisation designed to develop new technologies such as petrol-saving engines and hybrids. Then later, Saab and Volvo could be allowed to use these technologies to meet the present demand for environment-friendly vehicles. In this way, the Americans could not lay hands on the rescue money but could later avail of the results of the research.
As far as the EIB rescue money is concerned, the SEK20 billion is earmarked for the European car industry for 2009. The money will not be paid during a one year term but within a period of four years up to 2012. It is hoped that with several car manufacturers needing financial help, the amount promised by EIB will be increased accordingly.
(Translated and edited from Dagens Nyheter, 14 Dec. 2008)
Sunday, December 14, 2008
Thursday, December 11, 2008
Reduced aid can lead to war and terrorism, Ahtisaari warns
Nobel Peace Prize winner for 2008 Martti Ahtisaari of Finland reminded aid donors not to reduce or hold back on their commitment to development assistance because of the current economic crisis because this could lead to war and terrorism. He had a clear message to say after he received his peace award: "All conflicts can be resolved."
"We should not accept excuses from holders of political power. Peace is a question of will," he was quoted as saying. He warned at the same time that peace negotiators like him take too much attention instead of focusing on the parties in conflict. He says that this creates a wrong picture that peace comes from outside instead of inside.
He stressed that poverty and inequality are reasons for war and terrorism, reminding the rich donor countries that the current economic crisis should not be made an excuse for reducing aid to poor countries that are already suffering from hard climate changes and reduced world trade. " Hundreds of young people risk losing their jobs," he said. "If we don't do anything, this could create criminality, instability and war when all these young people lose hope."
To the US President-elect Barack Obama, he admonished prioritizing the resolution of the Middle East conflict.
"The international community's credibility is under challenge. We cannot pretend year after year that something is being done about the situation. We must have results."
Ahtisaari's accomplishments as peace negotiator are particularly significant in the following: In Kosovo, along with Russia and USA, succeeded with a peace agreement in 1999 that ended civil strife; In Aceh province in Indonesia, where a bloody conflict for independence raged for centuries, a peace agreement was signed in 2005; and Namibia in southern Africa, which after years of quiet negotiations got its independence in 1990. # (Translated and edited from Dagens Nyheter, 11 dec. 2008)
"We should not accept excuses from holders of political power. Peace is a question of will," he was quoted as saying. He warned at the same time that peace negotiators like him take too much attention instead of focusing on the parties in conflict. He says that this creates a wrong picture that peace comes from outside instead of inside.
He stressed that poverty and inequality are reasons for war and terrorism, reminding the rich donor countries that the current economic crisis should not be made an excuse for reducing aid to poor countries that are already suffering from hard climate changes and reduced world trade. " Hundreds of young people risk losing their jobs," he said. "If we don't do anything, this could create criminality, instability and war when all these young people lose hope."
To the US President-elect Barack Obama, he admonished prioritizing the resolution of the Middle East conflict.
"The international community's credibility is under challenge. We cannot pretend year after year that something is being done about the situation. We must have results."
Ahtisaari's accomplishments as peace negotiator are particularly significant in the following: In Kosovo, along with Russia and USA, succeeded with a peace agreement in 1999 that ended civil strife; In Aceh province in Indonesia, where a bloody conflict for independence raged for centuries, a peace agreement was signed in 2005; and Namibia in southern Africa, which after years of quiet negotiations got its independence in 1990. # (Translated and edited from Dagens Nyheter, 11 dec. 2008)
Thursday, December 4, 2008
No to clusterbombs, the Swedish dilemma
Over 100 countries - among them Sweden have signed in Oslo yesterday, an international agreement which forbids the use of clusterbombs. The so-called bombs contain minor bombs which explode close to the ground and covers a much larger area.
The convention which forbids the use, development and trading of clusterbombs was taken up in Dublin, Ireland in May last year. However, countries like the USA, Russia, China and Israel have not accepted the ban. Even Finland has not agreed to it.
Sweden has not shown the inclination to accept the prohibition when Norway brought it up two years ago. For one thing, Sweden has a type of clusterbomb, the Bomb Capsule 90, which is part of the Jas Gripen equipment. It weighs 600 kilos, inclusive of 118 kilo of explosive material which has a gliding, flying effect towards the target where around 72 minor bombs detonate when released.
However, in the middle of November Swedish Prime Minister Fredrik Reinfeldt stated that even Sweden will sign the agreement. He said that the decision is in line with Sweden's disarmament ambitions and on ban against anti-personnel mines.
The use of clusterbombs has been criticised for its military strength - that they could effectively strike at troop formations over a large territory - which is also its weakness. They are not precision weapons and they can hit both civilians and military targets. The wars in Kosovo, Iraq and Afghanistan have shown that not only personnel mines but even clusterbombs contributed to a huge humanitarian problem than other conventional weapons. It is also common that some minor boms do not explode when they spread, which leaves blind bombs that are more powerful and deadlier than landmines.
For Sweden, it would mean discontinuity in the use of Bomb capsule 90 and reduced effectivity of the Jas Gripen against any armed attacks against the country. It means that the Swedish defense must replace it with another kind of weapon to complement Jas Gripen's capacity.
In order to become legally binding, the international agreement requires the ratification by 30 countries. " As Chairman of the European Union in Autumn 2009, it is important that Sweden prioritises and with credibility expand the coverage of the agreement. We therefore expect us in the government already in spring 2009, to present a proposal to the parliament for a Swedish ratification," said Anna Ek, chairperson of the Swedish Peace.# (Edited and translated from Dagen Nyheter, 4 dec. 2008)
The convention which forbids the use, development and trading of clusterbombs was taken up in Dublin, Ireland in May last year. However, countries like the USA, Russia, China and Israel have not accepted the ban. Even Finland has not agreed to it.
Sweden has not shown the inclination to accept the prohibition when Norway brought it up two years ago. For one thing, Sweden has a type of clusterbomb, the Bomb Capsule 90, which is part of the Jas Gripen equipment. It weighs 600 kilos, inclusive of 118 kilo of explosive material which has a gliding, flying effect towards the target where around 72 minor bombs detonate when released.
However, in the middle of November Swedish Prime Minister Fredrik Reinfeldt stated that even Sweden will sign the agreement. He said that the decision is in line with Sweden's disarmament ambitions and on ban against anti-personnel mines.
The use of clusterbombs has been criticised for its military strength - that they could effectively strike at troop formations over a large territory - which is also its weakness. They are not precision weapons and they can hit both civilians and military targets. The wars in Kosovo, Iraq and Afghanistan have shown that not only personnel mines but even clusterbombs contributed to a huge humanitarian problem than other conventional weapons. It is also common that some minor boms do not explode when they spread, which leaves blind bombs that are more powerful and deadlier than landmines.
For Sweden, it would mean discontinuity in the use of Bomb capsule 90 and reduced effectivity of the Jas Gripen against any armed attacks against the country. It means that the Swedish defense must replace it with another kind of weapon to complement Jas Gripen's capacity.
In order to become legally binding, the international agreement requires the ratification by 30 countries. " As Chairman of the European Union in Autumn 2009, it is important that Sweden prioritises and with credibility expand the coverage of the agreement. We therefore expect us in the government already in spring 2009, to present a proposal to the parliament for a Swedish ratification," said Anna Ek, chairperson of the Swedish Peace.# (Edited and translated from Dagen Nyheter, 4 dec. 2008)
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