27 January 2018

Microsoft, Ireland and the EU

Europe is socialist. Socialism means the government regulates and controls everything.
That's what I was taught growing up. These messages came not only from the public education system but from within my own Right-wing home.
Of course I later came to question this and understand that it's not that simple. Socialism can mean regulation and control and certainly does when it comes to certain aspects of business and society.


And yet many socialists would view themselves and their movement as fundamentally democratic.
In fact they would argue it is Capitalism that ends up destroying democracy and in effect replaces existing government structures with new administrations that openly and deliberately pursue profits, not the interests of the people. Or to view it from another angle when there's a conflict they (the Capitalist ruling class) will do all they can to re-shape the interests of the people in order to bring them in line with what is most profitable.
One need not be a fan of the European Union to find this article noteworthy even striking. It belies the claims of my youth and education. It also clearly demonstrates the trajectory of the American system.
Does the EU retain a greater sense of democracy? Are their power structures less corrupt? 
Some might say so on a practical level. They might argue the EU bureaucracy has less corruption than what is found in the American system. Maybe.
The EU also might be motivated by their own protectionist concerns and a growing unease with Washington's domination. They might feel a little emboldened as America's lapdog the United Kingdom no longer has any sway in Brussels. Additionally with Ireland standing to suffer with the British withdrawal, Brussels wants to make sure they're not left standing alone.
It could be all these things but in this particular case, the EU is trying to assert the validity of its own legal system. They are attempting to stand up to the United States and its claims of world precedence if not domination.
The Supreme Court's ruling will be eagerly awaited by many in the business and diplomatic community. It will help to establish an important precedent with regard not only to business deals and security but the real extent of US understandings of and reliance upon bilateral agreements... the foundation Trump wants to build upon. Trump and those in agreement with him believe the US can wield greater strength dealing one-on-one with sovereign nations as opposed to joining multi-state compacts. Those compacts have clear provisions and procedures when it comes to issues of arbitration. Bilateral agreements are usually lacking when it comes to larger structures and questions of adjudication. If the Supreme Court rules in favour of the US, the power players of Wall Street will be emboldened knowing the State Department will support them.
If the Supreme Court backs down and respects extraterritoriality and comity, something the US has always been reticent to do, then that could set the stage for a game-change when it comes to how the US government, Silicon Valley and Wall Street (the Corporatocracy) do business.
Right now the Supreme Court is tilted to the Right, so without looking deeper into the issues and precedents regarding individual justices I would guess the Court will find in favour of the US government. It's certainly a story I will continue to watch.
I know one thing, Microsoft being a US-based company will be feeling a lot of pressure and they stand to be punished through various means for resisting the desires of the Justice Department and standing with Ireland and even the EU.
Ireland will also continue to watch nervously as it has become a hub of US offshore business activity, particularly related to the tech sector. If US businesses decide to pull out and store data (and cash) in another jurisdiction, Dublin will suffer for it.
Oh and finally, the EU isn't really socialist at all. For the most part it represents Social Democratic politics... it 'seems' socialist when compared to the American model but rest assured the EU elite are full-blown devotees of Transnational Capitalism. They may exhibit socialist tendencies but by definition they (along with figures like Tsipras and Bernie Sanders) are not socialists. Even the many socialist parties and politicians represent capitalist hybrids. The true socialists, let alone the communists are nowhere near the reins of power.

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