Johnson the Brexit ‘Hulk’ finally meets EU’s Juncker

EU chief Jean-Claude Juncker, left, and British Prime Minister Boris Johnson met on Monday to discuss a possible Brexit deal with just six weeks to go before departure day. (AFP)
Updated 16 September 2019

Johnson the Brexit ‘Hulk’ finally meets EU’s Juncker

  • Downing Street has confidently billed the Luxembourg visit as part of efforts to negotiate an orderly divorce from the union

LUXEMBOURG: British Prime Minister Boris Johnson met EU chief Jean-Claude Juncker for talks Monday insisting a Brexit deal is possible, despite deep skepticism from European capitals with just six weeks to go before departure day.
After a weekend in which he compared himself to comic book super-smasher Hulk, the British leader will enjoy a genteel working lunch of snails and salmon in Luxembourg with the EU Commission president.
Downing Street has confidently billed the Luxembourg visit as part of efforts to negotiate an orderly divorce from the union before an October 17 EU summit.
A UK spokesman said Johnson would tell Juncker that “progress has been made, given that before the summer recess many said reopening talks would not be possible.
“The UK needs to enact the referendum result and avoid another delay; the UK wants to deliver Brexit and move on to other priorities, and EU member states’ leaders want to renegotiate an orderly Brexit.”
But Brussels has played down talk of a breakthrough, insisting Johnson has yet to suggest any “legally operable” proposal to revise a previous withdrawal accord.
As he shook hands with Johnson, Juncker declared himself “cautiously optimistic” and insisted that “Europe never loses patience” despite the tortuous Brexit saga dragging on over three years.
Finland’s European affairs minister, Tytti Tuppurainen, who was chairing an EU ministerial meeting in Brussels, gave a more downbeat assessment, repeating the bloc’s long-standing complaint that London has simply not come up with detailed ideas for replacing the so-called “Irish backstop” section of the divorce deal.
“The European Union is always ready to negotiate when a proper proposal from the UK side is presented,” Tuppurainen said.
“So far I haven’t seen any proposal that would compensate the backstop.”
The EU’s chief Brexit negotiator Michel Barnier, who joined the leaders for their talks in Juncker’s native Grand Duchy, said last week he has “no reason to be optimistic.”
The European Parliament will this week vote on a resolution rejecting Johnson’s demand that the backstop clause be stripped from the deal.
Johnson insists this measure, which temporarily keeps the UK in the EU customs union, has to go if he is to bring the agreement back to the House of Commons.
But the accord will also have to win the support of the other 27 EU leaders and the European Parliament if Britain is not to crash out with no deal on October 31 — a scenario that businesses warn would bring economic chaos.
Johnson, in turn, boasts that he would rather be “dead in a ditch” than ask his European counterparts to postpone Brexit for a third time.
“Be in no doubt that if we cannot get a deal — the right deal for both sides — then the UK will come out anyway,” Johnson said, writing in the Daily Telegraph on Monday.
A UK spokesman said that Britain would refuse an extension even if one were offered.
It is difficult, then, to see what might come from the lunch. There is no plan for a joint statement, but Barnier will meet Britain’s Brexit minister Stephen Barclay for separate discussions.
Speaking to the BBC on Sunday, Barclay indicated that any post-Brexit transition period could be extended past 2020 in order to resolve issues with the border.
Johnson, meanwhile, compared himself to Marvel comics hero Hulk, the rampaging mutant alter-ego of a mild-mannered nuclear scientist.
“The madder Hulk gets, the stronger Hulk gets and he always escaped, no matter how tightly bound in he seemed to be,” Johnson told the Mail on Sunday.
Johnson’s strategy faces resistance at home, where rebel and opposition MPs have passed a law aimed at forcing him to seek a Brexit delay.
Britain’s Supreme Court will rule this week on a bid to overturn Johnson’s decision to suspend parliament and limit time to debate the crisis.
Barnier will address the European Parliament session in Strasbourg on Wednesday as MEPs vote to reaffirm and reinforce the EU Brexit stance — and insist that the backstop must stay.
After his lunch with Juncker, Johnson is due to meet Luxembourg’s Prime Minister Xavier Bettel. The pair will hold a joint news conference.


Why the UN is struggling to function

Antonio Guterres, UN secretary-general, called the budget shortfall “the worst cash crisis facing the UN in nearly a decade,” jeopardizing, among other things, peacekeeping efforts and the management of the UN’s New York headquarters. (Ray Hanania)
Updated 16 October 2019

Why the UN is struggling to function

  • World body facing 'the worst cash crisis' in nearly a decade due to mounting arrears
  • Crisis is marked by lack of cash to pay staff and vendors or to fund critical programs

NEW YORK CITY: The UN is facing its worst liquidity shortfall in 74 years of operation with a deficit of $1.385 billion, which is making it difficult for the world body to pay staff and vendors or fund missions.
The crisis has forced Antonio Guterres, the UN secretary-general, to begin cutbacks in all operations.
Warning on Oct. 8 that the problems are at a “tipping point,” he called it “the worst cash crisis facing the UN in nearly a decade,” jeopardizing peacekeeping efforts in Yemen, Myanmar and the management of the UN’s New York headquarters, offices in Geneva, Vienna and Nairobi, and investigative commissions in Bangkok, Addis Ababa, Santiago and Beirut.
A UN budget review presented this week showed that the crisis is being driven by the lack of cash to pay staff and vendors or to fund critical programs, and outlined spending cuts that will begin immediately pending a resolution of the situation.
“The cash deficits occur earlier in the year, linger longer and run deeper,” said Catherine Pollard, UN under-secretary-general for management strategy, policy and compliance.
“For the second successive year, we have exhausted all regular budget liquidity reserves, despite several measures we had taken to reduce expenditures to align them with available liquidity.”
Chandramouli Ramanathan, UN's controller, detailed the debt in a presentation with Pollard on Oct. 11 that identified $1.385 billion in debts, more than half of the UN’s 2019 annual budget of $2.85 billion.
Ramanathan said that only $1.99 billion had been collected this year, including past year arrears.
“If the trend continues … you will pretty much see that at some point we are running out of liquidity so often — everything depends on the liquidity if the liquidity runs down, we have to prioritize the payment,” he said.
“It will come to the point where you will not have enough staff or not have enough to pay the vendors.”
Ramanathan said that 75 percent of the UN’s budget is for employee and building costs. The remainder includes air charters, fuel, rations, IT support and political missions, which he said are all in jeopardy.
This does not include the costs of peacekeeping missions, nearly $8 billion for 2019, but which are nearly $3.7 billion in arrears.
A slew of operating spending cuts at the UN began on Oct. 14, ranging from no new hirings or filling of vacant positions to switching off heating and airconditioning.
Ramanathan said that these were emergency steps but warned failure to address the “liquidity crisis” would result in other more serious cutbacks including funding of operations, missions and more.

UN OPERATING SPENDING CUTS

• No new hirings or filling of vacant positions

• Reducing operating hours of UN facilities including the New York City headquarters

• Suspending release of new documents, studies and translation of documents

• Curtailing travel of UN officials, meetings or publicly scheduled receptions

• Cutting back operations at the UN headquarters and its worldwide centers, including turning off the use of electricity for certain building operations such as escalators, and shutting down the UN’s fountains

• Heating and air conditioning to be turned off at 6 p.m. each day and not turned on until 8 a.m. at UN buildings

“We are trying to cut back on non-salaried costs, operating hours to meet obligations and to vendors,” he said.
Ramanathan said that the UN was prohibited by its charter from borrowing money. He acknowledged that traditionally member countries were late in paying, usually until the last half of the year or last quarter, but the late payments had become “later and later” each year.
“The US is the largest contributor and they have a large outstanding amount … the US has a large amount outstanding,” Ramanathan said, noting that the UN does single out and list specific debts or debtors.
“We are in active engagement with all the states that owe large amounts.”

Ramanathan identified seven member nations that had failed to pay their memberships fully and accounted for 97 percent of the debt owed: the US ($1.06 billion), Brazil ($143 million), Argentina ($51.5 million), Mexico ($36 million), Iran ($26.9 million), Israel ($17.7 million) and Venezuela ($17.2 million).
He said that a total of 65 other countries were in arrears for their annual dues, based on country size and per capita income, but that represented less than 3 percent of the operating budget shortfall. Only 128 members were fully paid up for this year.
According to Ramanathan, the US owes its annual membership dues of $674 million for 2019, and $381 million for previous years.
UN officials declined to comment on reports that Guterres is seeking to address the unpaid US monies in a meeting with US President Donald Trump, who has repeatedly criticized the UN and the US financial obligations.
But an independent report by UN Dispatch, which is funded by the UN Foundation, reported on Dec. 6, 2016, that the UN’s headquarters generated $3.69 billion in benefits to New York City’s economy through jobs, commerce, hotels and retail spending by delegates and their staff.
One example of the costs includes accommodating the more than 1,500 journalists, delegates and support staff at the opening of the UN’s 74th General Assembly in New York City on Sept. 23.

The cash deficits occur earlier in the year, linger longer and run deeper.

Catherine Pollard, UN under-secretary-general for management strategy, policy and compliance

The UN erected a huge outdoor media tent in its grounds to accommodate journalists, providing access to the internet, electrical outlets, video and audio feeds, tables and work stations.
But these journalists, staff and delegates also brought with them revenue for the host city — filling hotels and restaurants, and generating profits for retailers, cabs and other businesses.
Despite the financial benefits New York City reaps from the UN headquarters presence, and the power the US wields at the UN, Trump brushed aside reports of the budget crisis or his nation’s failure to pay its share of the UN costs during his address on Sept. 24 to the UN General Assembly.
And a week later, Trump tweeted in response to UN officials’ budget concerns: “So make all Member Countries pay, not just the United States!”
The UN could suspend the voting of any nation that fails to pay its dues under Article 19 of the UN Charter, which states: “A Member of the United Nations which is in arrears in the payment of its financial contributions to the Organization shall have no vote in the General Assembly if the amount of its arrears equals or exceeds the amount of the contributions due from it for the preceding two full years. The General Assembly may, nevertheless, permit such a Member to vote if it is satisfied that the failure to pay is due to conditions beyond the control of the Member.” (Article 19 of the Charter of the United Nations)
A UN staff member said that it was unlikely that the UN would implement the rule against the US and that they fully expected the US “to pay at least part of what it owes” before the end of the year.
The UN was created in 1945 with the goal of ending human-rights abuses.
The power of the UN rests with the 15-member Security Council, which the US is a member of and controls through its veto to block any policies or resolutions it opposes.
The UN General Assembly includes 193 nations, serving as a platform for advocacy and action.