Courcy's Intelligence Brief - 25 April 2012


Items

  • France: disillusion with the elite

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    There were two key points to emerge from the first round French presidential election.  The first is clearly the precipitous climb in the National Front vote from 10.4% in 2007 to 18% this time.  The second is that the two main anti-establishment candidates (Marine Le Pen of the hard-right National Front and Jean-Luc Melenchon from the hard left) together outpolled each of the two establishment candidates.  Le Pen and Melenchon between them polled 29% compared with 28% for the socialist Francois Hollande and 27% for the mainstream right’s President Nicolas Sarkozy.  The true significance of these points is a matter of debate, but it is likely that the message from the French electorate may be even more profound than commentators and Europe’s political echelon are yet admitting.

    On the first point, some commentators have tried to make the case that just under 20% of the vote going to the far right is nothing exceptional in France and should not be considered a significant change in the political landscape.  After all, they point out, in 2002 Marine Le Pen’s father Jean-Marie got 16.9% of the vote to which should be added the 2.3% that went to the other far-right candidate, Bruno Megret, and some of the 4% that went to a hunters’ rights candidate.  All-in-all, it could be argued that just over 20% expressed a preference for the hard-right in 2002.

    Possibly that is so, but if it is then it only serves to highlight even more strongly the level of disillusion that has set in since 2007.  Clearly with the National Front vote falling from 16.8% in 2002 to 10.4% in 2007, Sarkozy must have siphoned off a significant number of NF voters in his successful 2007 campaign.  But even with his anti-immigrant rhetoric Sarkozy has now lost this vote and it has returned to the National Front because he failed to deliver on the pledges that secured these voters in the first place.

    The evidence for this is not hard to find.  On immigration, for instance, average net immigration for the years 2000-2006 was 0.66 per thousand inhabitants.  Since 2006 it has averaged 1.48 per thousand.  Despite his rhetoric, President Sarkozy has not returned the trust that was put in him in 2007.  He has not turned his words into action.

    But we believe it was not just the mainstream right but the mainstream in general that was punished in the polls, and on an astonishingly high turnout of 80%.  Apart from the 10% of the votes going to the hard-left Melenchon, it could be argued that a vote for Hollande was also partially a vote against the mainstream, with the front-running socialist candidate’s rejection of the German-dictated fiscal pact for the eurozone and the anti-capitalist nature of his tax proposals.

    So there would appear to be a wider disillusion than just with the failure of Sarkozy to deliver on his promises.  Partly it is anti-capitalist, and the effect, if not necessarily the cause, could be a turning away from France’s hitherto unswerving devotion to European integration.  Le Pen, of course, would take France out of the euro, while Melenchon would have nothing to do with Germany’s insistence on fiscal rectitude.  But even the two mainstream contenders have been less pro-Europe than in the past.  Hollande is campaigning against German orthodoxy, and he has proclaimed: “We are a great nation, a great country, whose choices are not made by the heads of state or governments of countries that are friendly but external to our democracy".

    Sarkozy, for his part, has threatened to freeze contributions to the EU budget, to suspend France’s membership of the Schengen open-borders agreement, and to support a protectionist ‘Buy European Act’ that goes against the grain of EU policy.  The contrast with Chancellor Angela Merkel of Germany is obvious.  In recent speeches she has been advocating the need for full political union.  But, for once, France’s leaders are not responding to a European crisis with the traditional cry of the European elite for ‘more Europe’ – or, at least, not on the electoral stump – and this is significant.  European integration has been built on the dictum of never letting a good crisis go to waste.

    We are not yet saying that France is turning its back on the 50-year project of trying to re-establish French glory through a French-controlled united Europe paid for by Germany.  In France, the attraction of this project extends much further than the elite.  Nevertheless, as the flaws in the project become increasingly apparent (principally the costs of building and maintaining European unity and the reluctance of Germany to foot the bill forever), so perceptions are changing.  The 2012 French presidential election could prove to be about a far more significant shift in French political forces than just a surge in support for the National Front, and it reinforces our long-held view that European integration has passed its high-water mark.  JdeC.

  • Double reminder of Israel's strategic squeeze

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    From a strategic perspective, it has been a profoundly bad week for Israel, with a sharp deterioration in relations with both Egypt and Turkey – and, as a consequence, a profoundly bad week for those hoping to avoid a clash between Israel and Iran.

    On the Egyptian front, a $2.5bn gas-supply deal signed between Egypt and Israel in 2005 and intended to run for 15 years was terminated by Egypt last Thursday (19 April), ostensibly on the grounds of arrears in payments by Israel.  From Israel’s point of view, however, the gas supply has been regularly interrupted since the 2010 Egyptian revolution, with the Sinai pipeline that carries the fuel being bombed 14 times.  Before the interruption in supplies, Egypt was providing Israel with 40% of its natural gas needs, but since the attacks began Israeli electricity prices have increased by 20%.  It is possible that the cancellation is intended to pressure Israel into calling off the lawsuit for compensation of $8bn over Egyptian failure to provide gas as promised, and it is possible that it is temporary.  This theory agrees with the announcement by diplomatic officials in Jerusalem that the decision stemmed from a ‘business dispute’.  But business dispute or not, it has rapidly become intensely political.

    Initially Israel’s Prime Minister Binyamin Netanyahu tried to play down the significance of the deal cancellation, saying “We don’t see this cut-off of the gas as something that is born out of political developments.  It’s actually a business dispute between the Israeli company and the Egyptian company.”  Foreign Minister Avigdor Lieberman tried to be equally calm on the surface.  But these reactions only served to emphasize how important good relations with Egypt are to Israel.

    Israel’s opposition leader Shaul Mofaz described the cancellation as a violation of the economic part of the Camp David accords and as presaging an unprecedented crisis.  According to Israel Radio, Mofaz called it a "blatant infringement of the peace treaty".  On 22 April, Israel’s finance ministry called the move “a dangerous precedent that casts clouds over the peace agreements and the atmosphere of peace between Egypt and Israel.”

    And although Lieberman tried to play down the significance of the cancellation, he had been quoted on 22 April by the Israeli newspaper Maariv as having sent a letter to Netanyahu saying that Egypt is more of a threat to Israel than Iran.  He added that the Egyptian forces that Israel had allowed Egypt to move into the Sinai (which is demilitarized under the terms of the Camp David accords) were ineffective against the terrorist threat.

    This prompted Egypt’s de facto leader Field Marshall Mohamed Hussein Tantawi to respond by warning that his country would ‘break the legs’ of those threatening its border.  Addressing troops in the Sinai Peninsula during annual field exercises, Tantawi said:  “Our borders, especially the northeast ones, are inflamed. We do not attack neighbouring countries but will defend our territory.  We will break the legs of any trying to attack us or come near the borders.  Therefore our forces must be on alert and constant combat readiness.”

    On 23 April, a former senior leader of the Muslim Brotherhood who is a leading candidate in Egypt's presidential elections, Abd-al-Munim Abu-al-Futuh, welcomed the abrogation of the agreement, saying: “It's the will of the Egyptian people.”  Another presidential candidate, Amr Musa, a former head of the Arab League and ex-foreign minister, said ending it was “a natural step in light of information related to corruption which tarnished this deal.”  Leftwing Nasserite candidate Hamdin Sabbahi tweeted: "I hail the decision to stop exporting Egyptian gas to the Zionist entity. We hope the implementation of the decision will continue out of respect for the will of the people and the judiciary's rulings, and in order to protect our national wealth."

    The Islamist-dominated parliament issued a statement through the speaker Saad al-Katatni saying it “salutes the decision to stop exporting gas to the Zionist entity...[which] reflected the will of all Egyptians”.  And on 24 April, Abdelbari Atwan, the editor-in-chief of the London-based pan-Arab daily al-Quds al-Arabi, wrote: "Whether the Egyptian authorities' decision to end gas exports to Israel is political or commercial in nature, it is a brave decision that reflects a major change in post-revolutionary Egypt’s attitude towards relations with Israel and normalized economic ties with it."  He added that the decision may be the prelude to the cancelation of the “humiliating” Camp David accords.  Atwan also agrees with Lieberman’s statement that Egypt is more dangerous than Iran, saying: “It was Egypt that led all the Arab states’ wars against Israel...”

    Meanwhile, on the Turkish front, during a Nato meeting in Brussels last week Turkey’s Foreign Minister Ahmet Davutoglu said that Ankara would not allow Israel to take part in 20-21 May Nato summit in Chicago as part of Nato’s Partnership Cooperation Menu programme.  An anonymous senior Turkish official elaborated on the move by saying: “We are blocking Israel in many areas.  We avoid contact with Israel in any international meeting.”

    No doubt huge pressure is being brought to bear on Turkey to rescind this decision.  It has been reported, for instance, that some ministers of Israeli-friendly Nato members have gone as far as to threaten to veto the participation of Egypt, Mauritania, Algeria, Morocco, and other partner countries in the Mediterranean Dialogue if Turkey does not recant on Israel.

    However, the damage has already been done, and it is twofold.  First, Turkey has reconfirmed its hostility to Israel as a time when Israel is for the first time since 1979 contemplating the possibility of a military threat from the south.  Secondly, Turkey has further undermined the idea that Israel could rely for its security, as some in the diplomatic community argue, on Nato.  The message that Israel will once again take from this is that, in extremis, it can rely only upon itself.

    This will not be a new realization for Israel as it is a point that Netanyahu constantly makes.  But it will have reinforced Netanyahu’s argument, and it will have strengthened the case of those who argue that Iran cannot be allowed to buy sufficient time to develop and protect its nuclear programme in a way that puts it beyond Israel’s capabilities to destroy or greatly degrade.

    This key point about Iran crossing into ‘the zone of immunity’ was once again made by Israel’s Chief of Staff Lt-Gen Benny Gantz in an interview with Haaretz published on 25 April.  Gantz chooses his words carefully, but there was little doubt about what he meant when he said: “If [Iran’s] supreme religious leader Ayatollah Ali Khamenei wants, he will advance it to the acquisition of a nuclear bomb, but the decision must first be taken.  It will happen if Khamenei judges that he is invulnerable to a response."

  • Gulf nightmares

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    The Gulf Arab states are almost as fearful of a deal between the US and Iran as they are of no deal.  As the Saudi al-Riyadh put it last Friday (20 April): “If Iran ends its crisis with the West it will be the new good ally in the long-term, replaying the experience with the Shah when the US set him up as the Arabian Gulf's policeman and the buffer that repulses Soviet schemes.”

    The nightmare future that the Gulf Arabs are contemplating is one in which Iran is rehabilitated with the West following a nuclear deal but maintains its ambitions in Iraq.  These ambitions, which have never been in doubt, were articulated by Iran’s President Mahmoud Ahmadinejad, in comments reported on 22 April, following a meeting with Iraq’s Prime Minister Nuri al-Maliki.  He said: "Should Iran and Iraq stand together, there would be no place for the enemies of the people in the region, including the US and Israel.”

    Rihaimi met with Maliki during the latter’s two-day visit to Tehran, and he added that both countries were facing “international conspiracies due to their beliefs and goals”.  The “beliefs” to which Rihaimi refers are clearly the Shia beliefs shared by Iran and the majority of Iraq’s Arab population.

    Ostensibly Turkey is aligned with the Gulf states, but Jordanian sources say that there are concerns about Ankara’s apparent willingness to contemplate a partition of Iraq.  Ankara is consolidating a strange relationship with Iraqi Kurdish leader Masoud Barzani in return for Barzani’s pledge to help pacify the Kurdistan Workers’ Party (PKK) in Turkey; and as part of Ankara’s play against Iran, having had its overtures to Tehran rejected, Turkey is said to be prepared to back a split between the Sunni Iraqis (Arab and Kurdish) and the ruling pro-Iranian Iraqi Shias.

    For the Gulf Arabs, the key point is that all this is going on beyond their control.  They have been weakened by the Arab Awakening and they appear powerless in the face of a combination of populist forces and major-power machinations, including those of the US, which is no longer trusted.

    The almost total confusion is perhaps best summarized by the 20 April commentary in the pro-government Saudi daily al-Riyadh quoted above.  It foresees a Western deal with Iran in which the first step “was handing over Iraq's affairs to Iran and total cooperation with it over Afghanistan”, and in which the end result will be “once again tightening the bilateral [Israeli/Iranian] cordon around the Arabs’ neck...to be followed by full recognition of the Zionist entity and Iran as a regional power”.  This seems a very long way from the present reality, but it does reflect the extent to which the Gulf Arabs are feeling isolated and buffeted.  At the moment, they appear to see disaster whichever way the present confrontation with Iran plays out.

  • Risk pointers

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    *** Warning of Kashmiri escalation.  On 8 April, Pakistan’s President Asif Ali Zardari visited India’s Prime Minister Manmohan Singh in New Delhi for talks, the first visit to India by a Pakistani head of state for seven years.  As we reported at the time, the talks came against a background of improved security in Kashmir.  According to the Director-General of Police Kuldeep Khoda, there was a 45% decrease in militancy-related incidents in the first three months of 2012 compared with last year (26 versus 48).  Moreover, there was a 47% fall in militancy-related issues during the first three months of 2011 compared with 2010.

    On 24 April, however, the chairman of the Jammu and Kashmir Liberation Front (JKLF), Mohammad Yasin Malik, warned that the group would start the armed struggle again if a solution was not soon agreed between India and Pakistan.  He said that freezing the Kashmiri issue was not acceptable and that “the Kashmiris should be allowed to decide whether they wanted to merge with Pakistan or India or they wanted a sovereign state".

    Speaking in Lahore, he said that since the Kashmiris had given up their armed struggle and begun a peaceful movement, India had started “their genocide” in a bid to crush the freedom movement.  Malik said the Kashmiris were being arrested and tortured, and he warned that the Kashmiris would be forced to begin their armed struggle again.

    Alongside Malik at the press conference was Jamaat-i-Islami (JI) chief Syed Munawar Hasan, who was critical of Pakistan as much as India.  He said: "The Pakistani government, political parties and even the media are ignoring the Kashmir issue.”

    *** France mocked by internet.  The first round of the French presidential election (see this week’s main briefing) also provided a nice illustration of the impotence of governments in the face of determined internet users.  There is a French electoral regulation banning the publication of exit polls.  Twitter users, however, found ingenuous ways of getting round this.  President Nicolas Sarkozy, whose father came from Hungary, was referred to as the Hungarian Tokaji wine, while socialist challenger Francois Hollande was referred to as the Dutch cheese gouda.  French Twitter users then broadcast exit polls published abroad by using devices like: “Dutch cheese at 27 euros, Tokaji wine at 25 euros”.

    *** South Korea warns of 3rd North Korean nuclear test.  On 24 April, a South Korean Defence Ministry spokesman said that North Korea is ready to conduct a third underground nuclear test.  He said: "Substantial preparations have been made.  We have information that all that remains is a political choice.”