Timmermans vs. Schmidt

Pfäffikon SZ, Switzerland – The much appreciated European Commissioner Frans Timmermans is gloomy about a united Europe – and that’s worth noting. Timmermans, of all people, I consider one of the best advocates of the European idea. It will not have escaped your attention that former German chancellor Helmut Schmidt passed away last week at 96. Schmidt is seen as one of the founding fathers of the current European Union. After all it was Schmidt who got along well with Giscard d’Estaing, which solidified the Paris-Bonn axis at the time.

Splitting Off
No elaboration is needed when one states that the EU has been fumbling along for quite some time. The Scotts wanted to split off, the Catalans now want the same and the UK is setting hard requirements for an extension to their stay in the union. Meanwhile the Swiss have sent out a clear signal. They will not be taking part in an EU adventure, moreover they are horrified at the current migrant crisis. I’ve noted before that the Schengen Treaty has run its course and Switzerland is increasingly critical of the “Einwanderung”. I observe a considerable difference with several years ago.

Positive
It should go without saying, I am tremendously positive about the future. This week I again received confirmation on the actual situation in China from a Swiss asset manager with a specific focus on Asia. China will be the source of much growth in the world the coming decades – do not be mistaken. In the meantime cooperations between China and Russia are strengthening every day, in part fueled by the pointless EU imposed sanctions. The EU in my view is not in the position to be imposing sanctions because by doing so they undermines the fragile economic objectives of their citizenry.

Problems
Europe has a debt problem and now a migrant problem is being added to the mix. Yours truly lost faith in the EU around 2005. This is not to say that I would like to see the European project stranded. Timmermans’ doubts come at an unfortunate time since the EU is already too far gone. Going back is not an option and continuing will require much determination and perseverance from the citizens and politicians. The EU is far from perfect and is replete with design flaws.

Helmut Schmidt has at times noted that he also believed that the EU was a far cry from functioning optimally. In doing so, he also pointed out the large European mountain of debt. Still, according to Schmidt, the current EU is better off than roughly 50 years ago. With that, Schmidt has a point. Many citizens and politicians could use a refresher course on European history.

It remains for me to wish you a good weekend.


Jan Dwarshuis is a senior asset manager at Thirteen Asset Management AG, where he is responsible for the Thirteen Diversified Fund. Dwarshuis writes his columns in a personal capacity and is not paid for them. Nor is he paying for his columns to be placed. Professionally, he holds positions in major European, American and Russian stock funds. The information in his columns is not intended as professional investment advice or a recommendation to make certain investments. At the time of writing, he has no position in the above mentioned shares and has no intention of doing so in the next 72 hours.