On Wednesday the European Commission again delayed a decision on whether European farmers may grow more genetically modified (GM) crops. The commission claimed that more scientific analysis is needed before three new crops can be approved. But curiously, the European Food Safety Authority (EFSA) has already twice analyzed the crops and found that they pose no danger to public health.

Divisions seem to have broken out within the commission on how to proceed with GM food. This comes at a time when biotech investors are increasingly exasperated with European procrastination on the issue.

The intra-Commission conflict on GM food is most bizarrely expressed in the open attempts by Environment Commissioner Stavros Dimas to discredit the EFSA, an agency set up by the Commission in 2002 in order to specifically investigate food safety concerns. By undermining the authority of the EFSA, Dimas is colliding with Agriculture Commissioner Mariann Fischer Boel, who has defended the agency. The result is a complete stalemate which may leave the Europe years behind in biotech investment compared to the US and other countries.

Dimas’s hostility to GM food is cheered on by some environmental NGOs, in particular Greenpeace and Friends of the Earth. Greenpeace boasts that it orchestrated a campaign of 130,000 emails in order to obstruct the approval of the crops.

These NGOs have virtually no expertise in the area of consumer health research but join Dimas’s ritual attacks on the risk assessments done by the EFSA. It is particularly striking that they try to bring the EFSA into disrepute by implying that the World Health Organization (WHO) is speaking out against GM crops. But here’s what the WHO actually says:

“GM foods currently available on the international market have passed risk assessments and are not likely to present risks for human health. In addition, no effects on human health have been shown as a result of the consumption of such foods by the general population in the countries where they have been approved.”

European worries about food safety are to a large extent based on the experience of the 1990s when a number of food scandals, in particular BSE or mad cow disease, caused understandable anxiety among consumers. All of these scandals, however, were entirely unrelated to GM food; it is irresponsible to exploit these fears in the current debate on biotechnology.

It is not difficult to see that at bottom the controversy is not so much about health and science but about politics and whose ox is being gored. In the European Council of Ministers, more agrarian-based countries like Greece (Dimas’s home country), Italy, Austria and Poland tend to vote against GM foods while states where traditional farming is not as dominant like the UK and the Netherlands are more open to biotech.

The politicization of the GMO debate is especially damaging at a time of global food price inflation. Future improvements in agricultural productivity will become increasingly necessary and biotech can play an important role in this area. The Commission must not allow pseudo-scientific excuses to stand in the way of serving the interests of the European, and indeed the global, consumer.

French president Nicholas Sarkozy has recommended the formation of a “Council of the Wise,” which would have the task of “elaborating proposals for the future development of Europe.” A recent survey by the Bertelsmann Foundation finds a lot of support for the idea in France, the UK, and Germany. I suppose there are various ways to read this. One, hinted at by the survey story linked above, is that people in the EU are uneasy about the direction Europe is moving and want to establish a counterweight to the politicians in Brussels. More likely, it seems to me, is that this would be one more bureaucratic agency--only this one not actually doing any of the work of government but instead churning out grandiose projects that would gobble up even more of the continent’s tax dollars. All of which leaves aside the at once frightening and amusing title of the group, which calls to mind something out of Tolkien’s Lord of the Rings.

If you haven’t been following this story, now might be a good time to look into it - Belgium may be dividing into two separate entities sooner rather than later, with Brussels possibly becoming an independent city-state in the process:

Belgium is the host country for the EU project, and the bureaucrats in Brussels are terrified that the epicenter of European anti-nationalism may be about to break apart due to national differences. Also, free-market-oriented Flanders, where 60-percent of the population lives, generates 70-percent of the national wealth, effectively subsidizing socialist-leaning Wallonia. So the move to partition carries powerful economic lessons as well. If Belgium does break up, Brussels, the capital of Europe, could become an independent city-state. It would also be the first Western European state with a Muslim majority.

“If a man will not work, he shall not eat.” That’s a good rule, I think.

The Care of Creation blog is noting, however, that “people who work longer hours use more energy and generally contribute more to the decline of the ecological quality of life on planet earth.”

The basis for the claim is a report that comes from the Center for Economic and Policy Research, and “finds that if all countries worked as many hours per week as U.S. workers do, the world would consume 15 to 30 percent more energy by 2050 than it would by following Europe’s model.”

As I’ve asserted before, calculations that simply take into account the outputs of various environmentally-relevant factors, like GHGs, without also noting the relevant economic variables, are highly flawed.

So perhaps per capita American workers do work longer hours and therefore use more energy than their European counterparts. But do the American workers also contribute more to their respective country’s GNP than do Europeans? I’m betting they do...and it shouldn’t be surprising that all these factors correlate, because of the energy-dependent nature of the economy in the 21st century. But as recent trends suggest, perhaps even that doesn’t mean that economies must increase GHG emissions to grow.

Who gets more bang for their energy buck? The EU’s share of gross world product (GWP) is roughly 20%. Estimates put the EU’s population right around 490 million. The US’s share of GWP is larger than the EU’s, somewhere between 20% and 30%, but accomplishes that with a fraction of the population, numbering barely above 300 million.

So, work less and “save” the planet, but also contribute less to the global economy. That’s a formula for disaster.

For another take on how you can do nothing and save the planet, see the May 21 edition of the Joy of Tech comic.

John Berthoud of the National Taxpayers Union has a piece in today’s Washington Examiner about the battle between Microsoft and the European Commission. Berthoud writes that it is part of a larger “anti-American” program, and “another example of old-guard European protectionism.”

Berthoud writes, “The EC’s actions against Microsoft are not isolated. It has acted against other American businesses as well. For instance, in 2001 the EC blocked General Electric’s planned acquisition of Honeywell. Assistant U.S. Attorney General Charles A. James said at the time that the EC’s decision ‘reflects a significant point of diversion’ with U.S. American antitrust regulators.”

It’s true that Microsoft isn’t the only target, although it is the one of the biggest and perhaps the most significant in the digital realm. It seems that any American company that successfully innovates and offers a valuable product can be threatened by EU regulators. The Commission has launched an investigation against Apple for potential violations of EU law, by selling music for different prices in different countries.

Berthoud gives the following advice to the EU, “Rather than try to stifle American innovation, perhaps Europe should focus more on encouraging homegrown entrepreneurial advances to vie with U.S companies.”

But it seems pretty clear that in the case of operating systems and software, the EU has chosen its horse to favor: open source. Next week we’ll examine some of the claims of superiority that might be influencing the EU’s adoption of open source software.

The nearly decade-long battle between the European Union and Microsoft took another turn earlier this month, as the EU Commission offered a fresh threat to Microsoft: Submit to our demands or face stiff new penalties. The item at issue is an aspect of the 2004 ruling against Microsoft, in which “the Commission fined Microsoft and ordered it to provide its competitors with information allowing them to develop workgroup server software interoperable Windows desktop operating system.”

That ruling is still under appeal in a Luxembourg court, but the Commission is pushing Microsoft to comply with the original terms of the decision before that appeal is resolved. The EU has given Microsoft until the beginning of April to comply.

The crux of the Commission’s argument is that the interoperability information that Microsoft holds is not sufficiently innovative to be protected as intellectual property, and therefore should be released free-of-charge to competitors. But as Ronald A. Cass rightly asks, “how can such critical information, which is not readily discovered by others, also be deemed obvious and of limited value?”

The fact that Microsoft has licensed Quest Software under its European Work Group Server Protocol Program shows that there is value in the information, such that according to Quest the agreement will allow it “to expand upon its innovative interoperability solutions for customers working across heterogeneous server environments, such as UNIX and Linux.”

Jim Prendergast, executive director of Americans for Technology Leadership, responded to the EU Commission’s threats by saying, “These actions are a de facto trade barrier for American companies who must continue to meet a higher standard of regulation across Europe.”

Again, Cass notes that the decision of the Commission’s antitrust office, headed by Neelie Kroes, “suggests that trade secrets (information that is not disclosed and not patented) are by definition without innovative content -- and therefore unworthy of any significant fee.”

A WSJ editorial concurs and criticizes this move because it arrogates the authority of determining the validity of patents in addition to all its other claimed powers: “Brussels no longer acts as merely prosecutor, judge, jury and executioner in antitrust cases; it now claims the power to assess the worth of patents, too.”

What are some of the potential motivations for the EU Commission to take such steps? They are numerous. A giant corporation can be easily seen as a source of significant cash. The fines levied by the EU Commission could total more than $1 billion.

Then there is the perennial government instinct to expand the scope of its own powers. The Commission apprently bristles at any restriction of its authority.

Cass intimates that there is a larger trade issue at work. That is, EU officials want to put American companies at a competitive disadvantage by erecting “a de facto trade barrier.”

But there may be another aspect to this. Many EU governments are adopting open-source operating systems as cost-cutting moves. So, for instance, France announced late in 2006 that it would be moving from Microsoft to Linux (they recently decided on the Ubuntu distribution). The French government “believes it can save money using open-source software, despite the near-term costs of switching from Microsoft systems and retraining all employees.”

But those cost-savings could be hampered by Microsoft charging licensing fees for server interoperability. Novell has even noted that given the whole structure of licenses, fees, and costs associated with open-source software, “Microsoft is cheaper than Linux.”

Could the EU Commission be taking such an active role in reducing the costs of running Linux in order to reduce the costs paid by the constituent governments? That seems like a major potential conflict of interest and gives good reason to question the objectivity of the Commission in these cases. And if this is the case, it falls to the EU courts to uphold the integrity and objectivity of the rule of law in deciding Microsoft’s appeal.

About a month ago I posted some responses to the editorial position taken at the Economist. One of their claims was with regard to the Kyoto Protocol and that “European Union countries and Japan will probably hit their targets, even if Canada does not.”

At the time I registered skepticism with respect to these estimates. Turns out my skepticism was well-founded.

From Wired News:

Between 1990 and 2004, emissions of all industrialized countries decreased by 3.3 percent, mostly because of a 36.8 percent decrease in the former Soviet bloc, the U.N. reported. Since 2000, however, those “economies in transition” have increased emissions by 4.1 percent.

Well, I’ve examined the decreased emissions in Russia before, which has been due in large part not to any government action but by the extensive contraction of the Russian manufacturing sector. The decrease in carbon emissions came at a huge economic cost, all of which was incidental and unrelated to the ratification of Kyoto.

More from Wired,

Of the 41 industrialized nations, 34 increased emissions between 2000 and 2004, the U.N. reported.... Among countries bound by Kyoto, Germany’s emissions dropped 17 percent between 1990 and 2004, Britain’s by 14 percent and France’s by almost 1 percent, the U.N. reported. But Kyoto signatories such as Japan, Italy and Spain have registered emissions increases since 1990.

Looks like Russia might have some buyers for those carbon credits after all.

Despite a recent surge in economic growth in the European Union, the lack of political will to reform unsustainable welfare systems and curb regulatory excesses does not bode well for the future. Samuel Gregg looks back to the Freiburg Ordo-Liberal School, practitioners of an economic philosophy that helped engineer the post-war revival for West Germany, as a possible path toward greater freedom and economic growth.

Read the full commentary here.

Another one for the “is there anything they won’t try to regulate?” file:

Not every idea that sprouts in Brussels is good for you...

THE Government is seeking to prevent an EU directive that could extend broadcasting regulations to the internet, hitting popular video-sharing websites such as YouTube.

The European Commission proposal would require websites and mobile phone services that feature video images to conform to standards laid down in Brussels.

Ministers fear that the directive would hit not only successful sites such as YouTube but also amateur “video bloggers” who post material on their own sites. Personal websites would have to be licensed as a “television-like service”.

Viviane Reding, the Media Commissioner, argues that the purpose is simply to set minimum standards on areas such as advertising, hate speech and the protection of children.

But Shaun Woodward, the Broadcasting Minister, described the draft proposal as catastrophic. He said: “Supposing you set up a website for your amateur rugby club, uploaded some images and added a link advertising your local sports shop. You would then be a supplier of moving images and need to be licensed and comply with the regulations.”

Not that this is a big surprise; the European Union is practically synonymous with bureaucratic over-reach and hyper-regulation. But still, shouldn’t common sense kick in at some point?

EUObserver: “New figures released on Thursday have revealed that the EU is falling far short of reaching its emissions targets under the international climate change treaty, the Kyoto Protocol.”

HT: Townhall C-Log