Trade policy in the EU Germany's blast at Barroso

My previous post on the Commission's flawed proposal on giving itself the power to retaliate against countries that restrict European firms access to public-procurement markets mentions the strong opposition of Germany.

It is striking that Germany finds nothing good to say about an idea so assiduously pursued by France, its closest partner. It may be because Germany runs the EU's biggest trade surplus, so has most to lose from a trade war. Or it may be that it understands that délocalisation, which so worries France (with its big trade deficit), is precisely what has helped Germany gain competitiveness by creating a global supply chain that controls production costs.

While fully agreeing with the aim of the proposal, to strengthen the EU´s leverage in negotiations with third countries, we disagree with the tactical approach. It would be difficult to argue against "buy American" while installing "buy European" at the same time. The proposal would seriously damage the credibility of the EU in its fight against protectionist measures established elsewhere.

The EU´s leverage in negotiations with third countries can be strengthened by other means.

The proposal causes the risk of retaliatory measures by third countries.

[It] would create a "fortress Europe" at a time when the EU is depending on open markets to work our way out of the crisis. The major aim of public procurement is "best value for taxpayer´s money". To achieving this aim, we need more competition on the procurement markets, not less.

The proposal would also seriously endanger the internal market and distort competition between EU companies.

In a globalised economy components of EU products are frequently produced in third countries. This is especially the case in the following sectors: IT-industry, electronic industry, engineering industry and automotive sector. The possible exclusion of tenders could therefore endanger the leading position of many EU companies in several sectors. The Commission proposal would also have a particularly negative impact on small and medium-sized companies.

The proposal would create new bureaucratic burden on contracting authorities and companies, instead of making procurement procedures more simple.

Trade policy in the EU: Protect trade, or protect Sarkozy?

China dissident Chen Guangcheng 'in US embassy'

China dissident Chen Guangcheng is in the US embassy in Beijing following his dramatic escape from house arrest, fellow activist Hu Jia has told the BBC.

Mr Hu said Mr Chen - who is blind - had scaled a high wall and was driven hundreds of kilometres to Beijing.

Mr Chen escaped on Sunday, activists say, and has since released a video addressed to Prime Minister Wen Jiabao.

There are reports that his brother and nephew have now been held by police.

The rights group Human Rights in China quoted a source who knew about Mr Chen, and said his nephew Chen Kegui was taken away from his home by more than 30 police officers.

The UN human rights chief Navi Pillay said she was concerned for the wellbeing of Mr Chen and his family, who live in Dongshigu town, Shandong province.

"I'm disturbed to hear reports that other family members, including his brother Chen Guangfu and nephew Chen Kegui, have now been detained," she said in a statement.

The US state department has refused to comment on the claim that Mr Chen is in its embassy. The US embassy in Beijing has also not commented.

Around midnight, about two hours ago, they entered our property by jumping over the enclosed walls, they pried open the locks and kicked on the doors"

Nephew of Chen Guangcheng, who lives in same town

Unidentified raiders

Blogger Yaxue Cao says he spoke to Chen Kegui on Friday at about 01:30 local time (Thursday 17:30 GMT), and he has transcribed the interview on his blog Seeing Red in China.

The transcript suggests that at the time of the interview Chen Guangfu had already been detained.

Chen Kegui was awaiting police arrest, having initially resisted an attempt to detain him by unidentified men less than two hours before by slashing at them with kitchen knives.

"Around midnight, about two hours ago, they entered our property by jumping over the enclosed walls, they pried open the locks and kicked on the doors. I heard my mother crying inside, helplessly: 'Please don't come in! Please don't come in!'"

Chen Kegui, who often sobs during the interview, insists: "I did not take knives to go out to kill anyone.