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For several years, now, Denmark has been seeking to purchase new howitzers. A first request for proposals stalled in 2015 and is now being re-launched. But a very similar shortlist is confusing experts, wondering what caused the initial deal to fall through, if only to do the same thing all over again. Here is a closer look at the various parameters and working hypotheses.

The military purchase isn’t only military. It’s about becoming a key-player in multi-national operations and strengthening alliances. And this political aspect of the howitzer-renewal operation is probably what makes it so obscure. Denmark has been ramping up its military capacities over the past years, in order to compensate for the small size of its army and become an important player in multi-national and NATO operations. Advanced artillery systems would enable the Danish army to control large areas of territory on foreign battlefields and therefore be a major contributor to allied missions. After cancelling last year’s deal, which was rumored to give the technical advantage to the Israeli ATMOS 2000, Denmark is repeating the same process. Today, the shortlist contains the ATMOS 2000 from Israel (1), again, the French Nexter Caesar (2), and the Korean K9 Thunder (3).

One of the main criteria when choosing self-propelled artillery systems is the chassis: both wheeled systems and tracked systems exist. Tracked howitzers provide increased mobility and capacity to overcome extremely rough terrain, like most tracked armor. Wheeled systems, on the other hand are slightly less able to evolve in very rough conditions, but compensate with all-wheel drive, and much higher speeds on roads and tracks. Wheeled systems therefore enable quicker deployments and larger areas of control. In the current Danish shortlist, the K9 Thunder is a tracked vehicle; the ATMOS 2000 and the Caesar are wheeled truck chassis. Wheeled chassis are also easier and cheaper to maintain, which should interest Denmark, with its limited military budgets.

The origin of the artillery is also an important matter for the Danes. Such a purchase will be (rightly) seen as a strengthening of ties between Denmark and the selling country. Copenhagen needs to be able to fully trust the supplying country – and firm -, as it will continue relying on it for many years, for maintenance, training, and upgrading services. This led to the withdrawal of one of the previous bidders: BAE Systems and its Archer. Although BAE systems comes from a trusted ally (Great Britain), Denmark cited delays and performance problems as a withdrawal motive.

In addition, choosing the supplying country will have political consequences abroad: any purchaser of Israeli weapons systems can expect to be harassed by anti-Israel activists (4) and blamed for its partaking to so-called “Israeli imperialism”. This would tend to turn Denmark (or any other country) away from the Israeli ATMOS 2000, but is compensated by American support, which pressures allied countries to purchase from Tel-Aviv. In April 2016, following an article (5) on the Danish deal cancellation from the armament blog Snafu Solomon, it was suggested that “It was cancelled by the retard extreme left wing government then in power, exclusively for political reasons, that is to say because the Israeli system won the competition, and the rabid anti-Israeli (and pro-Palestinian) parties simply couldn’t live with that so they came up with a bogus excuse* to cancel the project altogether. They used the lame excuse of having to divert funds to replace the then recently crashed helicopter in Afghanistan, to say there wasn’t enough money for artillery. As if a 20-million-dollar helicopter would eat up the several hundred-million-dollar artillery budget.”

The technological level is also an important factor. Many of the artillery systems for sale today are based on the M109 Howitzer. The K9 Thunder is one upgraded and re-engineered version of it. While this howitzer did become a world reference for it reliability and excellent design, it was created in another context, of low-mobility and high-intensity cold-war battlefields. The Korean K9 Thunder comes with several modifications on the initial M109 design (longer tube, beefed up on-board computers for firing and navigation), but remains quite close to the initial idea. The ATMOS 2000 and the Caesar come as completely new systems, designed for lower-intensity and higher-mobility modern-day battlefields.

Norway is just across the Skagerrag, and they’re in the middle of the same kind of deal (6). Norway is currently considering the alternative between the upgraded M109 and the K9 Thunder, which is a bit of a non-choice, as they bear the same characteristics. What is clear is that both neighbors are paying a lot of attention to what the other chooses. The first country, between Denmark and Norway, to make a choice will have a heavy influence on the other. If both countries choose the same system, they could save substantial maintenance and operating funds – an important factor since financial reasons were given as a motive to cancel the first deal.

The stymie inside the deal is simply whether Copenhagen will give in to Western-American pressure and purchase the Israeli ATMOS 2000. It is likely that Denmark will choose a wheeled system. Most Western multinational operations (NATO or others) nowadays are area control missions or counter-insurgency missions. In both settings, high mobility and speed are key. With a quick and agile enemy around, putting 4 soldiers inside a box that fires shells, with low mobility and even lower visibility seems like a poor choice. A rapid self-propelled howitzer with all-around visibility and easy disembarking seems better fitted. In addition, Denmark’s army is small and wishes to compensate for this size so as to fully integrate with allies. It therefore needs a rapidly deployable vehicle (Caesar and ATMOS 2000 can emplane on a A400 or even a C130), with a long firing range (K9 and Caesar can hit targets in excess of 40 km, using rocket assisted shells), with high deployment speed and range (the ATMOS has longer range on roads than the Caesar, but the Caesar is faster – the K9 is both slow and has much shorter range). Having said this, the hidden key to the deal will always be political.

(1) http://www.army-technology.com/projects/atmos2000/
(2) http://www.army-technology.com/projects/caesar/
(3) http://www.army-technology.com/projects/thunderselfpropelled/
(4) https://stopthewall.org/2015/05/28/denmark-elbit-deal-postponed-not-yet-cancelled
(5) http://snafu-solomon.blogspot.fr/2016/04/denmark-selects-5-bidders-for-artillery.html
(6) http://www.defense-aerospace.com/articles-view/release/3/172854/five-firms-qualify-for-danish-artillery-competition.html

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Economy

Hungary And Poland To Lose Up To 25% Allocation Of EU Funds

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Hungary and Poland are set to be hit with new cuts in cohesion support after EU commission proposed new radical changes. This came to light after a series of propositions were published recently by the EU executive. Eastern European countries will be hard hit by the propositions, but more impact will be felt in Hungary and Poland.

The changes come in light of the immigration policies that certain countries have chosen to adopt. The two most affected countries will lose nearly 25% in cuts due to their problematic policies. The repercussions of the cuts could be felt very soon especially if the Eastern European countries decide to take on Western Europe.

Even though the commission has maintained that the new changes are not meant to be punishment for inconsistency and criticism, there is a general feeling that the countries will not take the changes well. The commission also argued that there is no need to compare the allocations between EU member states as each country has their own share of prosperity.

The proposed changes will also affect more countries in Eastern Europe including Lithuania, Czech Republic, Slovakia, and Malta. Germany will also get a reduction in the allocation to the tune of 20%. There are some countries however that will get a raise in their allocation including Greece, Romania, Bulgaria, and Italy.

The EU commission, through its commissioner for regional development, Corina Cretu, says that the recent changes have no political bearing behind them.

How the commission arrived at the figures

In previous years, the commission had an established formula for calculating the allocation of funds. This year though, it seems like there was a break from tradition since the calculation method was visibly adjusted. The GDP would be used to determine prosperity in the region during the past, for instance. This criterion seems to have been adjusted in addition to the inclusion of other factors like climate, education levels, employment levels, and of course the attitude of the countries towards immigrants.

It is yet not clear how these changes will affect the forex market in Europe. What is clear though is that the aftermaths of major decisions in recent years have often caused some disturbances in the stocks and forex markets. At times like these, stock and forex traders need to be on the lookout for any major breaking news. Admiralmarkets.pl suggests using the current forex and stock platforms to get market feeds in real-time.

The current feeling from the Eastern European countries is that the commission is finding ways of diverting money from the region to other regions that have faced challenges in recent years. The southern part of Europe has for instance been in the red for a couple of years now. The crisis in Greece and Spain is yet to completely settle.  The sentiments of Eastern Europe do not seem to bother the commission, however. The commission argues that these countries have seen major growth in recent years and that they would even handle stiffer cuts. This, the commission argues, would especially be true if issues like GDP per capita were to be considered.

EU officials have spent much of the time explaining how their recent propositions are in no way related to the crisis in the south. Instead, the commission has used every opportunity to highlight the changes in GDP as the key reasons for the allocation cuts. It is indeed easy to find reason in this rationale when you analyze the economies of Eastern European countries.

Poland has for instance seen a lot of positive growth in the past few years. In 2017, the economy grew by 4.6%. This growth came in the backdrop of a similarly strong growth the previous year where the GDP growth was recorded as having been 3%. The forecasts for this year do not look bad either. The GDP is expected to grow by at least 4.3% as per what the commission has established on its forecasts. The growth pattern in Hungary was also comparable, being 3.3% in 2016, 3.45% in 2017 and with a projected growth of 4% year.

Looking south, the economy of Italy recorded growths of 0.9% and 1.5% in 2016 and 2017 respectively. The forecast does not look any different also as a projected growth of 1.5% is expected. In order to argue their case, the commission argued the case of Portugal, which is still struggling but which got some cuts due to its strong performance recently.

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Economy

Hungary Economy: Population, GDP, Inflation, Business, Trade

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The Hungarian economy is ranked as the 55th freest according to 2018 statistics. This economy has undergone a lot of transformation and it has particularly improved in the areas of the judiciary, labor freedom and investment. There are some realms however that have not seen great improvements especially in the areas of business freedom, government integrity, and property rights. In overall, Hungary is below average in most metrics in Europe compared to other peers in the region. The country is also just above the world average on the global scale.

Looking at its recent past, this country has seen a bit of relapse into some laws that were previously abandoned. The country has definitely seen much freer and liberal laws in recent years just before the government began to intervene in the areas of policy. Much of the changes over the years have been instituted to support economic growth and to balance out the budget while steering clear of areas that might cause conflict with the European Union. There are many targets that the government has including reducing public debt. It plans to achieve all of them by taking an active role and instituting sectoral laws.

The history of Hungary is long and colorful. It was once part of the communist realm until 1990 when it became completely independent. The country is currently a member of NATO having been in the organization since 1999. When the EU was formed, Hungary was not among the founding members and only joined the organization in 2004. There have been numerous economic reforms in the last decade and today, the economy is supported by strong local demand as well as exports. In recent years, things have been looking very optimistic for the country. The construction industry has boomed and there is a hands-on approach by the government on economic matters. The unemployment rate in the country is low.

Despite these improvements, there are still some challenges that face the government. It is for instance not as open as it ought to be and the judiciary is weak and subject to government interference. The policies surrounding land tenure are pretty straightforward and the government keeps updated records. Because of its somewhat domineering government and a weak judiciary, there are always concerns about corruption. The business sector is thus highly affected by the apparent indifference in the government towards corruption. A lot more needs to be done by the government to deal with prominent figures who have been a menace to business.

Moving on to the financial sector, there is a generally fair support by the government to the financial markets. The tax for corporates is maintained at 19% and tax for individuals is at 15%. The stock market is pretty vibrant with the Budapest SE index enjoying some good figures in recent years. Forex traders can do many things in this country even though the market is not as developed especially compared to the West. Forex trading is supported a lot and there are dedicated providers that allow Hungarians to access tens of thousands of markets.

As a country that is still developing many sectors, Hungary has a government that has a direct oversight over some sectors. You will thus often find direct government support for some industries. There are some sectors where there is not enough manpower. The labor regulations are somewhat basic which makes mobility a little difficult. Most of the product prices are market-determined but some goods’ prices are regulated by the government. Some of the areas in which the government has a hand on the prices include the markets of pharmaceuticals, tobacco, digital money, some machinery and electronic appliances and telecommunication products.

The health of the economy is definitely good considering that the trading industry is pretty vibrant. Hungary relies a lot on both exporting and importing goods. The total value of goods that either leave or enter the country comprises of up to 175% of the GDP. There are no strict tariff regulations and there is a general preservation of a 1.6% tariff rate. While there is much more government presence in many areas of the economy, the impact is not too big to disrupt economic activities. The financial sector is still in its formative years and it will take sometime before the banks get the necessary regulatory policy that supports growth.

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Europe

Navigating legal matters in Spain

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Starting or expanding your business or investments into a new country can be daunting. The task of understanding and complying with legal obligations and tax commitments can be very difficult, especially when regulations are not in your first language, or you have little experience of the country you are expanding into.

Doing business in Spain can be incredibly rewarding, but it can be tough. Legal bureaucracy runs through every aspect of day to day life, and the smallest mistake can have far reaching consequences for your business. This is why you will need to decide carefully when choosing Legal services in Spain. You need the very best multilingual experts, that can advise and guide you through each task with professionalism and care. You need to look for a partner who can help establish and grow your business.

A one-stop shop for legal services

A business needs to be able to have absolute trust in their legal service provider and will not want to be working with multiple companies for different specialisms. Being compliant with the law is already hard enough without navigating through four or five different law firms.

This is why choosing a one-stop shop for legal services is the best options, especially if you are new to conducting business in Spain. By choosing someone who can advise on everything, you can be sure that you will not suffer the consequences of something being missed. Afterall, whether it is finance, tax, employment law or any other legal formality, you cannot manage each one in isolation, they are all key parts of running your business successfully.

Not only that you want a partner, who can help grow your business and maximise opportunities to do so. One that understands the complexity of the issues your business may face, and can give a sincere and honest opinion.

Get the formalities covered and spend more time doing what you do best

Nobody likes to spend their time struggling with paperwork,but it is a necessary evil with any business. By choosing an expert in legal services in Spain to cover the formalities, you can spend more time doing what you do best and running your business.

Whether it is registering your business successfully, trademarks and patent registration, opening of bank accounts, or managing the hiring and possible expatriation and visa applications of employees, by hiring an expert you can leave all these worries in very capable hands.

The only certainties in life are death and taxes

Tax is always tricky to manage. Not just ensuring you pay what is due, but also being able to make the right business choices that means you do not pay too much. Every business knows it needs specialists to advise  and assist with tax planning, VAT returns, financing and raising funds and mergers and acquisitions. But when starting out in a completely new country you need local experts who know the rules inside and out.

The last thing any business needs is an unexpected tax bill causing chaos with cash flow, especially in the early days.

There is always the challenge of day to day accounting and payroll to consider also. That is why using a service that not only understands the legalities but can actually manage your bookkeeping, payroll and invoicing for you will be worth its weight in gold.

Expert help with all aspects of law when you need it

No matter what area of law you need support with, a good legal service should be able to provide assistance with any aspect. You have the usual corporate law, with things like contract management, corporate compliance, bylaws and shareholder agreements, insolvency. But also commercial and employment law. You will likely also need assistance with real estate law and sometimes even more personal issues that family law and your own residency.

A good service will make it easy for you. They should look to gather a complete understanding of how your business operates. This should include detailed information gathering and design a plan on how to ensure compliance for your review and approval.

They will likely speak to many areas of the business to get a feel for business context and aims in order to properly assess where the business is now, and what recommended strategy should be deployed.

Communication with you and the key stakeholders of your business is paramount. On delivering the agreed actions for you there should be regular updates on progress and important decisions that are needed and clear reporting at the end of the review and delivery. This will give you the reassurance you need that the service is being delivered to suit your exact business model and concerns, leaving you safe and compliant.

One thing is for sure – do not try to go it alone, it could prove disastrous for your business and jeopardise your success. If you want to avoid costly mistakes, find a legal services partner you can trust, can provide a holistic service and is expert in all aspects of running and managing a business. The investment will prove its worth over and over.

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