In the upcoming issue of European Affairs, economist J. Paul Horne takes a look at the long-term outlook for the falling dollar. Citing a lack of willingness on the part of U.S. authorities to reverse the current downward trend, Horne speculates that their negligence may be part of a plan to pay off massive American debt in less-worthy dollars– a bleak forecast for foreign investors, to be sure. Along the way, Horne also offers a deft analysis of the current market situation and the extent to which subprime mortgages are to blame.
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Michael Mosettig reviews the new book Life of a European Mandarin by Derk-Jan Eppink, who was a civil servant at the European Commission for more than a decade. 

Life of a European Mandarin.
By Derk-Jan Eppink. Ianoo. 386 pages.

Reviewed by Michael D. Mosettig

Two decades ago television viewers in Britain and the United States were alternately amused and appalled as they laughed through episodes of “Yes, Minister,” a British situation comedy about the way government bureaucracies really work at the top among insiders. In the series, a clever, glib high-ranking civil servant named Sir Humphrey would run circles around his Cabinet minister, aware that his power came from institutional memory and career longevity while the minister, an elected Member of Parliament, would soon be off on other pursuits.

Now, a former civil servant of the European Commission has turned out on paper the Brussels equivalent of “Yes, Minister,” an amusing memoir of how things work and don’t work at the Berlaymont headquarters of the commission. Perhaps the Life of a European Mandarin can be worked up into a European-wide sitcom – “Yes, Commissioner” – though to be true to Brussels protocol it would have to be dubbed and aired in 23 languages.

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The clashing views of Moscow and Washington about the future of Kosovo were laid out powerfully and clearly in a recent semi-public exchange between two well-placed individuals on opposite sides of the argument. Dimitri K. Simes, a scholar specialized in the affairs of his native Russia, who now heads the Nixon Center in Washington. Ambassador Frank G. Wisner, the U.S. special representative to the talks on Kosovo’s future headed by United Nations envoy, Martti Ahtissari.

Their dialogue of articles and letters was circulated by the Committee for the Republic, an informal circle of policy intellectuals in Washington. One of the circle’s members is former U.S. Ambassador Chas Freeman to whom some of the correspondence was addressed. European Affairs found it a clarifying account of the fundamental arguments on both sides. (more…)

Despite continuing basic differences about how to combat climate change, Europe and the United States are now taking the same road on one important initiative: imposing cuts on CO2 emissions from passenger cars.

Congress has legislated an increase in fuel efficiency of 40 percent for cars by 2020, a move designed to eventually cut U.S. gasoline consumption by 20 percent. Similarly, the European Commission has moved to impose very strict ceilings on CO2 emissions on car makers in Europe even faster, by 2012. (more…)

The White House announced today that it wants a new ambassador at NATO, Kurt Volker, currently Principal Deputy Assistant Secretary for Europe and Eurasia at the Department of State. His nomination will be submitted for senate confirmation shortly. The Bush administration seems to expect easy confirmation for Mr. Volker who has been a key aid under Assistant Secretary of State for European and Eurasian Affairs Dan Fried in rebuilding U.S.-European relations in the second Bush term.

European Affairs published a profile of Mr. Volker in conjunction with an interview with him in the current issue. He outlined the Administration priorities for its remaining months in office.

Before his appointment as the Principal Deputy Assistant Secretary for Europe and Eurasia at the Department of State, Mr. Volker served as the Director of NATO Policy and Acting Senior Director for Europe at the National Security Council.

The current Ambassador, Victoria Nuland, a career diplomat who has been in the post several years, is reportedly leaving government. Her husband, author Robert Kagan, recently published A Dangerous Nation on the history of American foreign policy. The second volume is due to appear this spring. His book was reviewed by European Affairs.