Archive for May 2013
Tourists Tricked into Spending More with Euro Monopoly Money
In early May the ECB announced the release of updated euro notes. The redesigned bills are touted as more secure and less easy to counterfeit-despite having a look and feel similar to computer paper. Key features include a holographic number and a watermarked photo of what can only be compared to as the monetary equivalent to a female version of Cecilia Gimenez's Jesus.
In a recent press conference European Central Bank President Mario Draghi explained the changes, “The idea was actually born a few years back. I was on the phone with Bill Bernanke trying to figure out this whole sovereign debt crisis thing and he just couldn’t get over the fact that euros seemed so much like monopoly money. Now this is something the Americans in particular have a hang up about so I was quick to dismiss it, but then I thought, ‘Hey, maybe we can capitalize on this. Literally.’ And bingo bango there you have it.”
With the favourable exchange rate and even less real-looking bills, the European Union stands to gain a great deal from tourists spending money without even noticing. European Commission President Josè Manuel Barroso endorsed the change in a recent internal meeting with the College of Commissioners saying, “Look people. We’ve been pushing the ‘jobs and growth’ line here for a while now in the Commission and we’ve seen how far that’s got us. Good on the old Dragon for stepping in and taking control of the situation.”
The new bills will be phased in gradually over the year, starting with the 5 euro note, rather than all at once. The fear of rolling out an entirely new series of bills is that it might spook the markets into questioning their credibility, thus, dropping their value to the near equivalent of actual monopoly money.
So far the switcheroo seems to be paying off as shopkeepers have noticed a 17.31% increase in sales over the last month. That number is bound to grow as the summer approaches and high tourist season in Europe sets in. The only evident downside to the new notes has been a decline in cigarette sales in key markets like Italy. 27 year old Italian Marco Barassi said of the new notes, “Honestly, the only thing they’re good for is rolling cigarettes. The old machines won’t even accept the stupid papers.”
With the favourable exchange rate and even less real-looking bills, the European Union stands to gain a great deal from tourists spending money without even noticing. European Commission President Josè Manuel Barroso endorsed the change in a recent internal meeting with the College of Commissioners saying, “Look people. We’ve been pushing the ‘jobs and growth’ line here for a while now in the Commission and we’ve seen how far that’s got us. Good on the old Dragon for stepping in and taking control of the situation.”
The new bills will be phased in gradually over the year, starting with the 5 euro note, rather than all at once. The fear of rolling out an entirely new series of bills is that it might spook the markets into questioning their credibility, thus, dropping their value to the near equivalent of actual monopoly money.
So far the switcheroo seems to be paying off as shopkeepers have noticed a 17.31% increase in sales over the last month. That number is bound to grow as the summer approaches and high tourist season in Europe sets in. The only evident downside to the new notes has been a decline in cigarette sales in key markets like Italy. 27 year old Italian Marco Barassi said of the new notes, “Honestly, the only thing they’re good for is rolling cigarettes. The old machines won’t even accept the stupid papers.”
Commission Moves from Real Smokers to Virtual Ones
Smokers watch out. No, not you in the stairwell lighting-up underneath the, clearly labelled, "No Smoking Sign". Or you, that guy casually blowing smoke in the faces of everyone in Place Lux. I’m talking to you, kid on the bus giddily huffing away at your electronic cigarette. While you may think you’re cheating the system, what you may actually be in store for is a healthy dose of More Europe!
In December 2012 the European Commission issued a press release about a proposal to revise the 13 year old Tobacco Products Directive (2001/37/EC). The revision would focus on five policy areas that include “Smokeless tobacco products and extension of product scope (i.e. nicotine containing products and herbal products for smoking).” This extension of the scope of the Directive would mean that "Nicotine Containing Products (e.g. electronic cigarettes) below a certain nicotine threshold are allowed on the market, but must feature health warnings; above this threshold such products are only allowed if authorised as medicinal products, like nicotine replacement therapies (NRT).”
Currently the threshold for these "nicotine containing products" is 4 mg/ml. Considering most e-cigarettes that contain nicotine have an average of 18 mg/ml, smokers using e-cigarettes compliant with the Directive would get just about the same nicotine fix as they would from this:
A 2012 Eurobarometer survey found that students between the ages of 15-24, as well as ex-smokers, were the most likely of all socio-economic groups to think that e-cigarettes are harmful to health. Nevertheless, there is the ever present concern among the old and worried that cigarette substitutes will become a gateway for youngsters. Ricardo Polosa dismissed this argument in a recent video released by the European Parliament saying that, "There's no evidence in the literature (suggesting increased youth usage) and quite frankly I cannot see any young 14 year-old tapping on the internet, stealing the father's credit card and buying electronic cigarettes." And while a recent gripping headline, "East Lancashire school to stub out pupils smoking the e-cigarette" seems damning, the actual contents of the article are decidedly anticlimactic: “We have no evidence that they (e-cigarettes) are being used in school covertly by pupils but clearly detection is more problematic due to the lack of smell and visibility." Really?
It is unlikely that an outright ban will come from the Commission; but until the issue is sorted-out, the world of e-cigarettes sits in regulatory limbo between tobacco and pharmaceutical legislation. So while they're busy sorting out whether liquefied nicotine is tobacco or a drug, feel free to knock yourselves out “vaporizing.” But please, remember not to light your e-cigarette. According to How Stuff Works, "Artificial flame is the only safe kind when using an e-cigarette - trying to light the device could cause the battery to ignite and explode." Pity the Commission doesn't regulate stupidity.
Please Don’t Leave, Dave!
Why Euroscepticism is Bad for a Traveler’s Health
A nice British officer with puffy red cheeks is smiling at me. I have just handed him my ID card, an old, consumed piece of paper covered with a plastic cover that is about to fall apart. The officer stares at me a couple of times. I know he doesn’t need to look at the blurred words on the paper to figure out I am Italian. He tries to take out the paper from its plastic cover. It has been there for quite a long time. It is sticky. When taking it out to scan my photo, he almost tears out the remaining strip which is still keeping the two parts together. He sighs. Then he stares at me for the third time. He's still smiling, but I can sense a feeling of compassion in the way he is now lifting only one corner of his mouth.
"Do you have a passport, sir?" he asks.
I am confused. I don't know how to reply. "Something should have happened," I figure. A series of questions suddenly pop into my head. "Has the UK pulled out of the EU already?". And then again: "What if I need a visa now?" "I don't have any visa." "I don't even have my passport with me." "That's it. I am an illegal immigrant now."
The officer is still waiting for my answer. I am still confused, but I decide to go with the most simple and logical answer. "Yes, sir." No reaction. He is still staring at me. "...at home, in Italy" I add, ten long, awkward seconds later. He sighs, again. "You should have brought it with you". I panic. I start thinking about the few basic EU rules about free circulation that I have been taught. At this point – to be honest – I suddenly feel particularly insecure. I cannot come up with a rational conclusion. Ok, there's no Schengen in the UK, bla bla bla, I remember that. But I am still pretty sure that my simple ID card is more than enough to circulate within the EU. "Right, within the EU". I think. And I am suddenly back to my initial intuition. "Something should have happened".
I picture myself being stuck forever at the Gatwick airport, brushing my teeth in the public toilet and building my own shelter in a narrow space between Starbucks and Pizza Hut, Tom Hanks' style. People behind me are starting to get agitated. Most of them are Italians and they have then no problem making it explicitly clear that this ID card thing is taking way too much time. Only when, almost desperate, it occurs to me that I didn't even bring any toothpaste, does the officer break the silence: "Your ID has no electronic chip, so I have to scan it and write down your information. It would be much quicker with the passport. You can pass through the automatic gates with it".
I get out of the airport, relieved, holding the prehistoric ID card in my hand. I light a cigarette right outside the door. Two seconds later the guy from the currency exchange starts waving at me. "If you smoke here you'll get a ticket. You need to go five steps further and pass the no-smoking sign", he kindly points out. I apologize. "Right, I am not in Italy anymore” I think. “I am in the United Kingdom, EU."
A nice British officer with puffy red cheeks is smiling at me. I have just handed him my ID card, an old, consumed piece of paper covered with a plastic cover that is about to fall apart. The officer stares at me a couple of times. I know he doesn’t need to look at the blurred words on the paper to figure out I am Italian. He tries to take out the paper from its plastic cover. It has been there for quite a long time. It is sticky. When taking it out to scan my photo, he almost tears out the remaining strip which is still keeping the two parts together. He sighs. Then he stares at me for the third time. He's still smiling, but I can sense a feeling of compassion in the way he is now lifting only one corner of his mouth."Do you have a passport, sir?" he asks.
I am confused. I don't know how to reply. "Something should have happened," I figure. A series of questions suddenly pop into my head. "Has the UK pulled out of the EU already?". And then again: "What if I need a visa now?" "I don't have any visa." "I don't even have my passport with me." "That's it. I am an illegal immigrant now."
The officer is still waiting for my answer. I am still confused, but I decide to go with the most simple and logical answer. "Yes, sir." No reaction. He is still staring at me. "...at home, in Italy" I add, ten long, awkward seconds later. He sighs, again. "You should have brought it with you". I panic. I start thinking about the few basic EU rules about free circulation that I have been taught. At this point – to be honest – I suddenly feel particularly insecure. I cannot come up with a rational conclusion. Ok, there's no Schengen in the UK, bla bla bla, I remember that. But I am still pretty sure that my simple ID card is more than enough to circulate within the EU. "Right, within the EU". I think. And I am suddenly back to my initial intuition. "Something should have happened".
I picture myself being stuck forever at the Gatwick airport, brushing my teeth in the public toilet and building my own shelter in a narrow space between Starbucks and Pizza Hut, Tom Hanks' style. People behind me are starting to get agitated. Most of them are Italians and they have then no problem making it explicitly clear that this ID card thing is taking way too much time. Only when, almost desperate, it occurs to me that I didn't even bring any toothpaste, does the officer break the silence: "Your ID has no electronic chip, so I have to scan it and write down your information. It would be much quicker with the passport. You can pass through the automatic gates with it".I get out of the airport, relieved, holding the prehistoric ID card in my hand. I light a cigarette right outside the door. Two seconds later the guy from the currency exchange starts waving at me. "If you smoke here you'll get a ticket. You need to go five steps further and pass the no-smoking sign", he kindly points out. I apologize. "Right, I am not in Italy anymore” I think. “I am in the United Kingdom, EU."
The Bastards Are Back
 |
| To be honest Dave you should be a bit nervous. |
Last Wednesday, Queen Elizabeth II gave her annual speech setting out her government‘s programme for the coming year. Before you start puffing with righteous indignation at how undemocratic this is, you should know that the speech she read was written by the Prime Minister. Parliament then passes the speech. Which should be a formality – should it not? Well, what makes a British Prime Minister give his Party free reign to either abstain from or vote against its own legislative agenda? Answer: the bastards.
I wouldn't recommend spending too much of your time thinking about the policy conundrums faced by the British Conservative Party – it can make your head hurt. Surely there are better things to think, read and write about: like more Europe. Unfortunately, this is not a luxury afforded to a Brit in Brussels these days.
In January Dave told the world (well mainly the Conservative Party) in his Bloomberg speech that he wasn't happy and that he wanted less Europe; but that he still wanted a bit of Europe in his life. On making such pronouncements he was hailed as brave and visionary by his Party and UKIP's fox, I was thought, had been well and truly stuffed.
Then two things happened, his colleagues realised what he'd really said – we'll only have a referendum if we win an election that I probably won't win and if I do I'll probably present a weasely compromise as a triumph anyway – and UKIP achieved two thumping election coups in quick succession. Now UKIP look set to win the European Parliamentary elections in 2014.
The problem Dave faces is that he has quite unambiguously said that, "I believe something very deeply. That Britain’s national interest is best served in a flexible, adaptable and open European Union and that such a European Union is best with Britain in it." Whereas others have decided that there's no longer any hiding of the fact that they don't want any Europe in their life at all; excluding that is, their holiday villas in Tuscany and Provence: "stop the continent I want to get off!" is the message now spluttering out of the Conservative Party.
This is not just some back bench rebellion, it goes all the way to the top now. Party grandees such as Lord Lawson, former Chancellor of the Exchequer, has proclaimed that he's changed his mind on the EU since his time in a position of responsibility and decided we're better off out. Two close cabinet allies of Cameron's (and wannabe future leaders) have even said that if a referendum were held today they would vote to leave.
Dave's strategy has misfired spectacularly. It was both bold and a messy compromise that was never going to satisfy those it was designed for. Broadly speaking, those who are desperate for a referendum are those who see it as a means to an end and one end alone: Brexit. Cameron threw a bone thinking that he would keep the Europhobes happy; instead he simply wet their appetite and emboldened them. For the first time they genuinely think that they can win.
So now it comes to this, Cameron has conceded that members of his Party can vote against their own Queen’s speech and Ministers can even abstain. Poor Dave tries so badly to be loved by his Party, but is instead losing everyone's respect. Fear not, Machiavelli will not make a guest appearance at this point; but it will suffice to say that Cameron’s troops would much rather have a leader that they respected and even feared a bit than one they could merrily chillax with over Sunday lunch and a bottle of Beaujolais.
Where do the bastards fit into all of this? When facing cabinet revolt over the Maastricht Treaty from Europhobes in 1993, Conservative Prime Minister John Major labelled such trouble-makers as "the bastards". It was taken as a sign of the fundamental weakness and fragility that had beset the government: it was not one that could be taken seriously. Unfortunately for Dave the bastards are back and this time think that they've got history on their side.
I wouldn't recommend spending too much of your time thinking about the policy conundrums faced by the British Conservative Party – it can make your head hurt. Surely there are better things to think, read and write about: like more Europe. Unfortunately, this is not a luxury afforded to a Brit in Brussels these days.
In January Dave told the world (well mainly the Conservative Party) in his Bloomberg speech that he wasn't happy and that he wanted less Europe; but that he still wanted a bit of Europe in his life. On making such pronouncements he was hailed as brave and visionary by his Party and UKIP's fox, I was thought, had been well and truly stuffed.
Then two things happened, his colleagues realised what he'd really said – we'll only have a referendum if we win an election that I probably won't win and if I do I'll probably present a weasely compromise as a triumph anyway – and UKIP achieved two thumping election coups in quick succession. Now UKIP look set to win the European Parliamentary elections in 2014.
The problem Dave faces is that he has quite unambiguously said that, "I believe something very deeply. That Britain’s national interest is best served in a flexible, adaptable and open European Union and that such a European Union is best with Britain in it." Whereas others have decided that there's no longer any hiding of the fact that they don't want any Europe in their life at all; excluding that is, their holiday villas in Tuscany and Provence: "stop the continent I want to get off!" is the message now spluttering out of the Conservative Party.
This is not just some back bench rebellion, it goes all the way to the top now. Party grandees such as Lord Lawson, former Chancellor of the Exchequer, has proclaimed that he's changed his mind on the EU since his time in a position of responsibility and decided we're better off out. Two close cabinet allies of Cameron's (and wannabe future leaders) have even said that if a referendum were held today they would vote to leave.
Dave's strategy has misfired spectacularly. It was both bold and a messy compromise that was never going to satisfy those it was designed for. Broadly speaking, those who are desperate for a referendum are those who see it as a means to an end and one end alone: Brexit. Cameron threw a bone thinking that he would keep the Europhobes happy; instead he simply wet their appetite and emboldened them. For the first time they genuinely think that they can win.
So now it comes to this, Cameron has conceded that members of his Party can vote against their own Queen’s speech and Ministers can even abstain. Poor Dave tries so badly to be loved by his Party, but is instead losing everyone's respect. Fear not, Machiavelli will not make a guest appearance at this point; but it will suffice to say that Cameron’s troops would much rather have a leader that they respected and even feared a bit than one they could merrily chillax with over Sunday lunch and a bottle of Beaujolais.
Where do the bastards fit into all of this? When facing cabinet revolt over the Maastricht Treaty from Europhobes in 1993, Conservative Prime Minister John Major labelled such trouble-makers as "the bastards". It was taken as a sign of the fundamental weakness and fragility that had beset the government: it was not one that could be taken seriously. Unfortunately for Dave the bastards are back and this time think that they've got history on their side.
Cocktail Reception to Follow
WHEN YOU STOP PRENTENDING TO LISTEN
AND GO IN FOR THE FREE FOOD AND DRINK
AND GO IN FOR THE FREE FOOD AND DRINK
Selling Ourselves Short
Like getting caught in an unexpected roundabout, looking for a job as a new graduate is a vicious cycle. Even entry level jobs ask for not just experience, but experience in your particular field. How are you supposed to get said experience if no one is willing to hire? Oh, right. Internships.
With a depressed labour market in Europe, and some countries in outright nightmarish situations (sorry Spain), young workers are competing for paid and unpaid internships alike. Sure, as a student looking to build your CV, unpaid internships can be rationalized as they are done in tandem with your studies and teach you "self-discipline, showing up on time, dressing and comporting oneself properly." But unless you are well enough off to support yourself with no income, taking on an unpaid internship once you've graduated makes no sense whatsoever.
In a city like Brussels even paid internships range from a monthly stipend of 700-1200 euros on average and competition is downright cutthroat. Many of these coveted internships aren't just fetching coffees and trying to figure out how to fax internationally, but are real work and come with real (read: long) working hours. Though there is no European minimum wage, and policies are far from consistent across the EU, examples of some monthly minimum wages are:
Estonia 320 euro
Greece 683 euro
UK 1,264 euro
France 1,430 euro
Belgium 1,472 euro
While companies have clearly figured out that they can get the same work they would have otherwise paid real wages done by young, bright, ambitious "interns" for a handful of euros per hour, the real question is, why haven't we figured it out yet?
In the end it's 99% desperation and 1% expectation. For many, there are no evident alternatives. If we don't take these opportunities as they come along there's someone right behind us ready and willing to gobble up the gruel being handed out with a smile on their face. The second motivation is that maybe, just maybe, these internships will lead to some sort of stable opportunity. However, that illusion is shattered by the fact that many of these internships are specified from the on-set that they are for fixed periods, future employment is not guaranteed, or that employment within the organization thereafter is outright out of the question.
This leads to yet another question: are we selling ourselves short? Are we perpetuating these types of positions, helping to depress real job growth and delaying our own careers and those of our peers? If so, what's the alternative?
Sure, we can take a moral stand to the man and say no, we're going to hold out for real prospects that are secure and worthy of our talents and capabilities. But that would undoubtedly elicit a reaction similar to saying you believe in Santa Claus or the Easter Bunny. Until the economy picks up (bringing with it more bargaining power to young workers) such protest will reap little reward.
Government intervention is tricky, as policy can't be guided at the European level. Certain policies have though attempted to address this problem. For example, the region of Tuscany is incentivizing employers to hire interns by offering businesses 4,000 euro for every hire between the ages of 18 and 30 and 5,000 euro for those considered disadvantaged. This policy directly targets dead-end internships, nudging employers to actually pull the hiring trigger, but is difficult to tout as a one-size-fits all solution as not every country or region can fund such programs (again, sorry Spain).
But perhaps there is a silver lining that we're not quite glimpsing yet. Youths with untapped potential and limited outlets to release their frustration and energy could say to hell with the system and make their own opportunities. Rather than working for an organization they can work together to make their own. Admittedly this is easier said than done in a time when financing and potential customers are hard to come by. But then again, creativity is often born out of necessity. Even in times of economic prosperity risk is one of the biggest factors that deters people from branching out and starting their own enterprise. The final question I'd ask is how big is the risk really when you've got nothing else to lose?
With a depressed labour market in Europe, and some countries in outright nightmarish situations (sorry Spain), young workers are competing for paid and unpaid internships alike. Sure, as a student looking to build your CV, unpaid internships can be rationalized as they are done in tandem with your studies and teach you "self-discipline, showing up on time, dressing and comporting oneself properly." But unless you are well enough off to support yourself with no income, taking on an unpaid internship once you've graduated makes no sense whatsoever.
In a city like Brussels even paid internships range from a monthly stipend of 700-1200 euros on average and competition is downright cutthroat. Many of these coveted internships aren't just fetching coffees and trying to figure out how to fax internationally, but are real work and come with real (read: long) working hours. Though there is no European minimum wage, and policies are far from consistent across the EU, examples of some monthly minimum wages are:
Estonia 320 euro
Greece 683 euro
UK 1,264 euro
France 1,430 euro
Belgium 1,472 euro
While companies have clearly figured out that they can get the same work they would have otherwise paid real wages done by young, bright, ambitious "interns" for a handful of euros per hour, the real question is, why haven't we figured it out yet?
In the end it's 99% desperation and 1% expectation. For many, there are no evident alternatives. If we don't take these opportunities as they come along there's someone right behind us ready and willing to gobble up the gruel being handed out with a smile on their face. The second motivation is that maybe, just maybe, these internships will lead to some sort of stable opportunity. However, that illusion is shattered by the fact that many of these internships are specified from the on-set that they are for fixed periods, future employment is not guaranteed, or that employment within the organization thereafter is outright out of the question.
This leads to yet another question: are we selling ourselves short? Are we perpetuating these types of positions, helping to depress real job growth and delaying our own careers and those of our peers? If so, what's the alternative?Sure, we can take a moral stand to the man and say no, we're going to hold out for real prospects that are secure and worthy of our talents and capabilities. But that would undoubtedly elicit a reaction similar to saying you believe in Santa Claus or the Easter Bunny. Until the economy picks up (bringing with it more bargaining power to young workers) such protest will reap little reward.
Government intervention is tricky, as policy can't be guided at the European level. Certain policies have though attempted to address this problem. For example, the region of Tuscany is incentivizing employers to hire interns by offering businesses 4,000 euro for every hire between the ages of 18 and 30 and 5,000 euro for those considered disadvantaged. This policy directly targets dead-end internships, nudging employers to actually pull the hiring trigger, but is difficult to tout as a one-size-fits all solution as not every country or region can fund such programs (again, sorry Spain).
But perhaps there is a silver lining that we're not quite glimpsing yet. Youths with untapped potential and limited outlets to release their frustration and energy could say to hell with the system and make their own opportunities. Rather than working for an organization they can work together to make their own. Admittedly this is easier said than done in a time when financing and potential customers are hard to come by. But then again, creativity is often born out of necessity. Even in times of economic prosperity risk is one of the biggest factors that deters people from branching out and starting their own enterprise. The final question I'd ask is how big is the risk really when you've got nothing else to lose?