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June 29, 2018 | EU Agrees on Refugee Camps in Africa: One Problem, Africa Doesn’t

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
A deal has been worked out at the last moment. Whether it satisfies CSU or is in accordance with rules is in debatable.
  • After a 12-hour negotiation marathon, the member states agree to set up reception centers for boat refugees in the EU.
  • Italy had previously threatened with a blockade of summit decisions and demanded concessions from the other EU countries.
  • It is unclear whether the result achieved by Chancellor Merkel and her EU counterparts can point the way out of the bitter asylum dispute in Germany.
  • The partners also decide to extend the economic sanctions against Russia.

The member states agreed on refugee reception centers within the EU. Maritime rescued migrants should be “based on joint efforts” in voluntary “controlled centers” established by Member States, it said. It should check “with full EU support” whether it is “irregular migrants being returned” or those in need of protection. Asylum seekers will then apply the “principle of solitarity” among EU Member States, the summit stated. They could then enter other EU countries, but only if they agreed voluntarily. Which EU members are doing that is still unclear.

At the same time, according to the will of the EU states, mass transit camps are also to be established in North African states so that fewer migrants make their way illegally across the Mediterranean. However, the affected countries reject this so far.

Turkey receives another three billion euros from the EU to provide for refugees from Syria. After months of discussion, the heads of state and government agreed to finance the aid. According to this, two billion euros will be taken out of the Community budget. National budgets are expected to generate another billion.

The Wall Street Journal reports Euro Jumps After EU Leaders Reach Migration Deal.

“The details are fairly thin at the moment…but it seems that most parties are content with the deal and it’s averted a potential significant conflict in the EU.”

There are quite a few details. the WSJ simply did not have them.

Perhaps this buys Merkel time. I am not convinced.

Mike “Mish” Shedlock


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June 29th, 2018

Posted In: Mish Talk

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