French interest in Libya remains strong

France is set to re-establish itself as an arms supplier to the new independent state of Libya, following a recent military contract between the two countries

France is set to re-establish itself as an arms supplier to the new independent state of Libya, following a recent military contract between the two countries

In February, France signed a long-term contract with the Libyan government and agreed to refurbish Libya’s Mirage F1 fighters and also offer pilot training to the country’s air force. French defence minister, Gerard Longuet has been reported as saying that France is embarking on a long term cooperation with Libya in order to “neutralise the traffic in drugs, people and arms.” France manufactures the Dassault Rafale fighter plane, but at this time, the country isn’t actively promoting the fighter plane in the Libyan market. The de-mining of Libyan harbours and offering training for the military are seen as France’s primary short-term goals in Libya. The Libyan air force used to have 12 Mirage F1 planes but recent events have seen that reduced to two. Previously, Russia used to be a major arms supplier to Libya, and will be competing against France to re-supply the Libyan military.

Some cynical observers believe that the intervention by Nicolas Sarkozy, together with the UK and other NATO forces, to oust Gaddafi, was a bid to regain popularity at home, in an election year, by putting France to the fore on the international stage. France’s unique position within NATO as an individualist has often commanded respect among the non-aligned countries of the world and also served to encourage the US to take part in the UN 2011 security mission. The French intervention in the Libyan war could be seen as a triumph of French diplomacy.

The French regime is still seeking justice, following the 1989 terrorist attack on a French plane, believed to have been masterminded by the Libyan intelligence chief, Abdullah al-Senussi. Currently a diplomatic battle is being waged between the international Criminal Court (ICC), Libya and France. The ICC want to put al-Senussi on trial for his activities which resulted in the attacks on countless unarmed Libyan civilians. The Libyans want al-Senussi to be returned to them in order that he can be brought to trial in the country where, it is claimed he was responsible for the murder of the 1,200 Abu Salim prisoners. France wants al-Senussi to be released into their custody in order to stand trial for the plane bombing.

Another benefit for both France and the UK, following their joint military intervention in Libya, has been a closer relationship between the two countries. At a recent summit held in London’s Lancaster House both nations pledged to strengthen their military ties. The communiqué issued as a result of the conference referred to the shared Libyan experience and both countries promised to “prioritise joint work in the key areas of command and control; information systems, intelligence, surveillance, targeting and reconnaissance; and precise munitions” (Lancaster House official statement 2012). With many potentially valuable military contracts on the table both the UK and France want to be in a position to benefit from their assistance to the National Transitional Council during the Gaddafi crisis.

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  • Christian Benesch

    “France manufactures the Dassault Rafale fighter plane, but at this time, the country isn’t actively promoting the fighter plane in the Libyan market.”

    That is mainly because they are hoping to sell the Mirage 2000-9 from the UAE to Lybia.
    In return the UAE will buy Rafale. Lybia is less likely to be able to afford the Rafale.

The May – June 2013 Issue

Highest corporate tax
rates in Europe

European countries are scrambling to raise every last penny of funds through taxes. But some countries may have gone too far...

Belgium

Though all business taxes in Belgium can be paid online with little effort and preparation, the rates are still sky-high at 57.7 percent, including a staggering 50.8 percent total rate on profits only in social security contributions.

Belarus

In Belarus, a company spends up to 338 hours annually preparing for and paying ten different taxes and duties. The total tax rate has incredibly been lowered to 60.7 percent, from 117.5 percent in 2008.

France

A company in France pays seven different taxes and duties, the sum of which can amount to 65.7 percent of profits; though President François Hollande has announced a wave of business tax rate cuts coming up.

Estonia

A business in Estonia pays 67.3 percent of profits in tax, 37.2 percent exclusively in social security contributions. The country has gone against the grain in Europe by raising businesses taxes from 48.6 percent in 2008 to the current rates.

Italy

While corporate income tax (IRES) in Italy is limited to 38 percent of taxable profit, a company operating in Italy can expect to pay 14 other taxes and duties, including social security contributions, bringing their total payable tax to 68.7 percent of profits, according to the World Bank.

Norway

Norway taxes motor fuels twice, with a road use tax and a CO2 emissions tax. Combined with strikes in the energy sector that have curbed output, the price of gas at a local pump has soared to $10.12 per gallon.

Turkey

Though Turkey sits on the Suez Canal and neighbours many oil rich countries, the price of a gallon of average gas clocks in at $9.41 in Turkish pumps, because of a 60 percent share of taxes. 

Israel

Like Turkey, Israel is surrounded by oil-rich neighbours, but drills very little itself. Gas prices are controlled by the government, so about half of the $9.28 per gallon goes to taxes.

Hong Kong

There are few gas stations in Hong Kong, but the ones available charge up to 76 percent more per gallon than mainland China, where the government caps the cost of fuel. A gallon at the pumps will cost around $8.61 on the island.

Netherlands

Expensive labour costs make the Dutch petrol prices the dearest in Europe, at $8.26 per gallon; though the 57 percent tax add-ons don’t help.

The credit crisis

8 February 2007
HSBC warns of subprime mortgage losses

2 April 2007
New Century goes bus

14 September 2007
Wholesale markets have dried up

17 March 2008
Rescue of Bear Stearns

7 September 2008
Rescue of Fannie Mae

15 September 2008
Lehman Brothers file for bankruptcy

3 October 2008
US congress approves $700bn bailout

14 February 2009
$787bn stimulus approved by congress

 

The effects of the current financial crisis are global and irrefutable. With the collapse of Lehman Brothers, the domino effect of irresponsible public monetary policies, huge levels of unsustainable debt, and a deregulated financial sector, has escalated to the point where no corner of the globe has been left untouched.

1973 oil crisis

October 1973
Syria and Egypt launch an attack on Israel on Yom Kippur and set off a twenty day war;

1977
US President Carter creates Department of Energy, which develops the US strategic petroleum reserve

 

The Organisation of Petroleum Exporting Countries (OPEC) used their oil reserves as a weapon with the Arab Oil Embargo against those who supported Israel. By January 1974, world oil prices were four times higher than they were at the start of the crisis, especially in the US, and the shock led to a huge drop in the stock market with NYSE losing $97bn in just six weeks.  The embargo lasted five months, and the effects are still seen today.

German hyperinflation

1922-1923

Hyperinflation
1923 – 1924
Stabilisation

 

The trouble began when Germany missed a repatriation payment, worth about one third of the German deficit in this period. Inflation was already high but by 1923 it was raging. Prices doubled within hours, and by late 1923, it cost 200bn marks to buy a single loaf of bread. People burned money as it was cheaper than buying firewood. Germany eventually regained control of its economy when it introduced the Rentenmark into circulation in 1923, and then the Reichmark in 1924.

The Great Depression

1929-1933
The Great Crash
1934-1939
Recovery and Recession

 

After the decadence of the Roaring Twenties, the 1930s saw the biggest economic slump of all time. The stock market crashed on 29 October 1929, and optimism and decadent living tumbled along with the figures. The GDP fell from $103.6bn in 1929, to $66bn in 1934 and the subsequent years of recovery were the most dramatic in US history.

1907 bankers’ panic

1907
Otto Heinze and his brother Augustus Heinze bought shares of United Copper.

 

The stock market was already cautious over the tight money supply, but the US was thrown into a depression after the stock market fell nearly 50 percent from its peak in 1906. The Heinze brothers thought they could influence market shares but ended up bankrupting lenders that provided the financing to buy the stock. A chain reaction left nine institutions bankrupt. By February 1908, the panic was over and the government created the Federal Reserve system, to prevent banks from exercising too much control over the economy.