Banks, Rio+20, Africa

The summer issue of Europe Infos brings together the news from the COMECE Secretariat, conveyed also in the previous services of SIR Europe. The next issue features an ecumenical reflection on European cohesion policy, on the recent report by the COMECE bioethics working group, an editorial by Stefan Lunte on June’s European Council. Other themes addressed in the issue focus on bank management, Rio + 20 and Africa, presidential elections in Egypt and the summary of an intervention by president Herman Van Rompuy on the theme of united Europe. The op-ed is by COMECE Secretary Piotr Mazurkiewicz, titled: "From Euro-crisis to European crisis?".Managing banks that cannot manage themselves. Jesuit Fr Frank Turner analysed the document that Commissioner Barnier presented on June 6, regarded as "a preliminary step towards a possible later banking union". ‘Proposal for a Directive establishing a framework for the recovery and resolution of credit institutions and investment firms,’ is the title of the "executive summary", of a "full technical proposal of 246 abstruse pages", marked by "force and lucidity", Turner said. One of the knots regards the principle of national sovereignty, which disallows regulatory regimes capable of controlling interconnected globally active institutions. The Commission proposes to this end three types of measures. These are: more centralisation, namely, a minimum level of subsidiarity imposed by the EU; more mutual supervision, and, where necessary, more mutualisation of debts. National regulators may choose to take additional steps to protect themselves and mutual supervision exerted by "resolution authorities" that may require changes "to force banks to operate more prudently, to reduce risk by requiring divestment of certain activities". Bank shareholders would thus become the primary risk-bearers, as they have first claim on profits. "Mutualisation of debts" is the third proposal, and will apply only to institutions within the same group, "to stop the financial problems of parts of a group becoming too serious". "The present banking paralysis is caused largely by ‘risk aversion’ – that they do not trust each other’s soundness. That being so, it is unsurprising that they enjoy even less confidence from the public. These measures are intended to forcibly reduce risk and therefore to rebuild trust". The proposal, examined at the June summit, should lead to a banking union, or to the last at a not less useful a ‘bank regulators’ union’".Rio+20, not exactly "the future that we want". Jesuit Fathe José Ignacio García is the author of a reflection on the outcomes of the UN Conference on sustainable development, held in Rio in the month of June. "The future that we want" is the unsatisfactory final document of an event, which drew scant attention from the world’s media. Considering the past twenty years since the last Conference, if "the balance is positive in terms of poverty alleviation, it is certainly negative on the side of the environment (in relative terms)". Unfortunately, social policies did not feature on the negotiation agenda, as many of the participating states would not pass "a minimum test of transparency, good governance or respect for human rights". The term "green economy", that would integrate the concerns of the environmental impacts of human activity with the legitimate right of states to assist their citizens at out of poverty at Rio + 20 "has not developed this concept, has approved no implementation mechanism, no agreed timing and, of course, no budget". It could instead signal a movement toward renewable energies, more efficient systems of production and more responsible consumption patterns. The EU’s difficult economic situation, the pre-electoral context of the USA has led the diplomatic leadership to be taken almost exclusively by Brazil, "perhaps a sign of further changes in the pattern of global leadership". Africa and sexual and reproductive health. Theresa Okafor is the director of the Foundation for African Cultural Heritage (FACH), a Nigerian civil society coalition of 20 non-governmental organisations dedicated to pro-life and pro-family activities. In an interview, José Ramos-Ascensão (COMECE Secretary), denounced that "the tables have been turned as Europe now seeks to radically re-define African culture, values and morals which have been held dearly by Africans". For example, "A woman is now told that she has the right to decide whatever she wants to do with her body, denying the existence of a life. Freedom and rights are now being cruelly misinterpreted to mean that the rights of the unborn child lie in the hands of the woman". The real need of Africa is "the eradication of diseases and hunger, as well as massive investment in human capital development". In a country where 13% of female mortality is caused by illegal abortions, "what is the rationale behind giving contraceptives to a malnourished woman?" It is instructive that Nigeria and Ethiopia which have high fertility rates feature among the fastest growing economies in the IMF 2011 economic survey.