Today's divides aren't between states, they're across them

In Europe and America, today's urban educated elites have more in common with their counterparts in other countries than their own compatriots. It is resulting in a new type of international nationalism.

I was in Belgrade last week moderating at the Belgrade Security Forum, an annual policy dialogue about Balkan and European issues. 

During a discussion on challenging inequality, one of the panelists made a point that stuck with me. Responding to a comment from former Greek prime minister George Papandreaou about the uneven benefits of globalization, Hakan Altinay from the Global Civics Academy noted that the benefits are being felt by a certain class in each country, and that is bringing them closer together across borders while they drift ever-further apart from their countrymen. 

People working in and around the European Union institutions in Brussels are often accused of living in a bubble, forming an international echo chamber in which they have more in common with each other than with people back home in their own countries. But in fact, this is a phenomenon that is linking national capitals across Europe - and it has little connection to the EU. The bubble isn't just in Brussels. It is spread across Europe's cities.

A few days later, I heard a very similar description of the situation in the US on NBC's Meet the Press, America's main public affairs program. During a 'data download' segment, host Chuck Todd described how NBC News had crunched the numbers. Despite the caricature of America being divided between red and blue states, the divide is really between red and blue people - and that split defies geography.

“Why are you still here?”

As they exit international bodies, the US and UK are refusing to give up their seats at the tables they plan to leave. The question is whether their international partners will let them get away with it.

This week, the difficult negotiations over the UK’s exit from the European Union began in earnest in Brussels. David Davis, the UK’s chief negotiator, squared off against Michel Barnier, his EU counterpart.

Davis called for both sides to “get down to business” for arranging a swift British exit from the EU. He then promptly went back to London, 60 minutes later. He gave no explanation for his own swift departure, which left the EU negotiators perplexed. Just days earlier, Barnier had warned the UK that it is is running out of time to negotiate its exit, which must be completed by March 2019. “The clock is ticking” he said sternly.

The 'Brexit delegation' at Trump's convention

The Tory-led ECR group will attend Donald Trump's nominating convention, but Merkel's center-right EPP will not. It reflects the path British Conservatives have chosen to take.

Years before his faustian bargain to offer an EU referendum to maintain his Conservative Party leadership, David Cameron tossed the eurosceptics another bone to become party leader.

In his 2005 campaign to become Conservative leader, he promised to take the Tories out of the main-centre-right bloc in Europe, the European Peoples Party (EPP), and form a new eurosceptic bloc. For years, the eurosceptic wing of the Conservative Party had complained that the EPP, which contains the main center-right parties of Europe including those of Germany, France, Italy and Spain, was too 'federalist' in its approach to the European Union.

The pan-sceptic ticket

Nigel Farage's state of the union response suggests UKIP will make climate change denial a centrepiece of their European election campaign.

I was a bit taken aback on Wednesday when, during his response to President Barroso's State of the European Union speech in Strasbourg, UKIP leader Nigel Farage devoted almost the entirety of his speech not to warnings about the creeping European super-state, but to an impassioned denial of climate change.

The subject is nothing new for UKIP. The official party line is that there is no proof that climate change is man-made, and this is often brought up by UKIP MEPs. The party has been particularly vocal about renewable energy, blasting “ugly” wind turbines blotting the English countryside and biofuel subsidies it says are responsible for fuel poverty in the UK. This was made clear by UKIP MEPs during Monday's debate on biofuel legislation, which strangely put UKIP on the same side as the Greens.

But it was surprising to see Farage devote so much time to the issue during a big-picture debate on the EU that had nothing to do with climate change. The EU had fallen victim to a “green obsession”, he said. The resulting legislation had driven manufacturing away from the UK and forced people into fuel poverty.

Two different animals

If you needed evidence of just how different the British Conservative Party is from the American Republican Party, this week's party conference provided two particularly illuminating illustrations.

Conservative Prime Minister David Cameron stood before the yearly gathering of Conservative Party members – similar to the 'national conventions' in the US – and said he wholeheartedly supports gay marriage and will work to enact it in the UK next year (to replace the current civil unions). This was met with thundering applause in the hall. Try to imagine the reaction if a presidential candidate said this to the Republican National Convention!

In the second example, a huge row has developed after the Conservative Home Secretary Theresa May used an incorrect fact in her speech to the conference. Explaining why she wants to dismantle the Human Rights Act, which is the British transposition of the European Convention on Human Rights, she listed as an example a case where the act's requirements meant that there was an "illegal immigrant who cannot be deported because – and I am not making this up – he had a pet cat."

As it turns out, she was making this up. As the decision shows, the actual verdict against deportation had nothing to do with a pet cat, the decision was instead due to a mistake made by the Home Office's prosecution. A pet cat, which had been mentioned in the appellant's brief along with his partner as reasons why he has a home life in the UK, was merely mentioned by the judge in his verdict as an attempt at humour. It was later revealed that May had taken the cat story from a speech made by UK Independence Party leader Nigel Farage.

EU banker tax? UK says no

"In the last three years member states - I should say taxpayers - have granted aid and provided guarantees of €4.6 trillion to the financial sector. It is time for the financial sector to make a contribution back to society. That is why I am very proud to say that today, the Commission adopted a proposal for the Financial Transaction Tax."

With these words European Commission President Jose Manuel Barroso put forward what is bound to be an enormously controversial piece of EU legislation, a transaction tax on bankers and investors who invest in stocks, bonds and derivatives. Speaking to the European Parliament in Strasbourg today for his annual 'state of the union' address, Barroso said the tax would bring in €55 billion per year, starting from 2014.

The language used by the president was clearly populist in nature, emphasising a sense of fairness and responding to a public feeling that the bankers who caused the economic crisis of 2008 have never been called to account and have not been asked to contribute to the recovery from the pain they caused. Stock markets and investment firms have made remarkable recoveries over the past few years, and executive pay has steadily risen. But at the same time the economy as a whole has suffered enormously and continues to suffer.