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By:

Shoumojit Banerjee

27 August 2024 at 3:27:52 pm

Europe in the Twilight of Certainties

From pension disputes in Paris to housing protests in Athens and Tirana, mounting unrest exposes the strains in the continent’s postwar social settlement. Liberty Leading the People, by Eugène Delacroix, 1830. Paris’s defaced Monument to the Republic. Civilisations sometimes encounter their most perplexing problems not when they fail, but when they succeed too well. Between the 1880s and the mid-20th century, Western Europe achieved something unprecedented in human history. Clean municipal...

Europe in the Twilight of Certainties

From pension disputes in Paris to housing protests in Athens and Tirana, mounting unrest exposes the strains in the continent’s postwar social settlement. Liberty Leading the People, by Eugène Delacroix, 1830. Paris’s defaced Monument to the Republic. Civilisations sometimes encounter their most perplexing problems not when they fail, but when they succeed too well. Between the 1880s and the mid-20th century, Western Europe achieved something unprecedented in human history. Clean municipal water, mass vaccination, antibiotics, and statutory pensions rendered old age less precarious, childhood less lethal, and disease less routinely fatal. Living into one’s eighties ceased to be an extravagant wager against nature and became a standard civilisational expectation. But this demographic triumph created a political challenge: How does a society honour its financial and social promises when citizens live significantly longer and the inflow of young tax-paying workers can no longer keep pace with those retiring? According to Eurostat, citizens aged 65 or older accounted for 22 percent of the European Union’s population in 2025, up from 17 percent in 2005. Over the same period, the EU’s median age rose from 39.6 to 44.9 years. In Italy, the median age has reached an astonishing 49.1. It is tempting to look at the unrest rippling across European capitals, from pension strikes in Paris to housing protests in Athens and Tirana, and label it a simple crisis of state solvency. But the deeper question is whether a social settlement forged for one demographic and economic era can survive another without destroying the moral principles that justified its creation. Bismarck’s Irony Bismarck, the conservative who built the welfare state to save the monarchy. In the 1880s, the fiercely conservative Otto von Bismarck, the ‘Iron Chancellor’ of a newly unified Germany, paradoxically laid the foundations of the modern welfare state. Sickness insurance in 1883 was followed by accident insurance in 1884, and old-age and invalidity pensions in 1889. Bismarck recognized that rapid industrialisation had clustered urban workers in crowded German cities, generating acute economic vulnerability and fuelling the rise of revolutionary socialism. His calculated move was to bind the working classes directly to the Imperial state through statutory protection. As the British historian A.J.P. Taylor famously observed in Bismarck: The Man and the Statesman (1955), Bismarck sought to buy off the proletariat with a state pension, offering social security to render revolutionary socialism redundant. The delicious historical irony here was a conservative chancellor seeking to preserve a monarchy established institutions that subsequent generations of Social Democrats would expand and defend as universal human rights. Bismarck’s achievement lay in making social protection a systematic, law-bound responsibility of the modern state. Yet, the state Bismarck built was never intended for a continent where mass longevity would become the norm. Malthus Inverted Malthus, Prophet of too many mouths, in an age of too few workers. In 1798, Thomas Malthus published his Essay on the Principle of Population, arguing that human numbers would inevitably outstrip the earth’s ability to feed them, checked only by war, pestilence, and famine. For the next two centuries, Malthus served as the patron saint of economic pessimism, warning that human progress would always founder on material limits. Today, Europe faces an inverted Malthusian nightmare where the crisis is not too many mouths to feed, but too few working hands to generate the tax revenue needed to support an aging society. This demographic imbalance cannot be reduced to a ‘moral’ failing on the part of the elderly, who planned their retirements around long-standing legal contracts. Nor is it the fault of younger generations, who face high housing costs, real wage stagnation and insecure labour markets. Furthermore, the current protests are not just about pension ages. Greece has seen university students and teachers protest over runaway rent prices, low purchasing power and public education cuts. In Albania, mass citizen movements like Lëvizja Bashkë have mobilized against state corruption, oligarchic urban developments and the mass emigration of young talent who see no domestic future. Viewed from the periphery, the street unrest is less about generational warfare than institutional capture. The post-war European generation built families under conditions of expanding public housing, rising real wages, and shared prosperity. A state cannot reasonably expect its youth to embrace the family-building norms of their grandparents while operating under the wages and housing odds of the present. Postwar Pluck The modern European welfare state acquired its moral authority after the Second World War. Having mobilized entire populations for war, governments faced a peace-time question: if the state could demand everything from citizens in conflict, what security did it owe them in peace? In Britain, William Beveridge’s 1942 report mapped out a war on five “Giant Evils” of want, disease, ignorance, squalor and idleness. Across Europe, distinct social models emerged - from Britain’s universal services to France’s labour-managed funds, from West Germany’s social market economy to the Nordic universal safety nets. As the Danish sociologist Gøsta Esping-Andersen observed in his classic The Three Worlds of Welfare Capitalism (1990), these were not uniform social-democratic experiments, but fundamentally different compromises balancing the responsibilities of the state, the market and the family. Crucially, these welfare expansions were underpinned by an exceptional historical moment what the French demographer Jean Fourastié dubbed Les Trente Glorieuses (the “Thirty Glorious Years”) of economic expansion between 1945 and 1975. This period was characterized by high productivity growth. rapid industrialization, low unemployment and a massive baby-boom workforce. Thus, expanding welfare was easy when a wide base of young workers supported a small apex of retirees. But over decades, public pensions and universal healthcare ceased to look like historical compromises dependent on economic growth and began to resemble rights as immutable as the seasons. Pay-as-you-go pension systems are essentially intergenerational compacts which hold that current workers will finance current retirees, trusting that future workers will do the same for them. That trust faces a structural political asymmetry. The defender of an existing entitlement is an active voter with an immediate stake. The younger or future taxpayer who will shoulder the long-term bill faces a cost that is dispersed and easily deferred by politicians. In The Logic of Collective Action (1965), Mancur Olson explained how small, well-organized interest groups routinely outmanoeuvre large, diffuse populations. This dilemma is not entirely new and history offers compelling parallels. In 5 CE, Emperor Augustus faced a severe crisis when retiring legionnaires demanded promised land and pensions that the state could no longer afford. To prevent military rebellion, Augustus established a dedicated military treasury (Aerarium Militare) funded by new sales and inheritance taxes. Rome learned early that when state promises outpace fiscal realities, it destabilizes social peace. It is easy to reach for grand literary narratives of decline. Gibbon found gloomy majesty in Rome’s slow decay while Oswald Spengler prophesied the deterministic winter of Western civilization. Yet, merely treating the current unrest sweeping Europe as a story of civilisational collapse misses the mark. The challenge today is to re-engineer its institutions with the realization that there are no frictionless policy choices. Raising retirement ages is fiscally necessary, but imposes a heavier burden on manual labourers than office workers. Raising taxes risks dampening economic dynamism while increasing immigration helps plug labour deficits, but requires integration and social cohesion. Shakespeare’s King Lear dramatically illustrates that political crises erupt when authority and entitlement are divorced from ongoing responsibility. Lear sought to retain the privileges of majesty while shedding the burdens of governance – something all too observable in today’s European leaders. The post-war generation’s achievement was that they had the intellectual courage to construct institutions capable of answering the realities of their era. They certainly had the leaders and political will. Europe today needs to recover that courage to renegotiate its terms. The arithmetic is demanding, but it is not a Götterdämmerung written in the stars.

India waits to lasso diamantaire Mehul Choksi

Quaid Najmi
Apr 14, 2025
5 min read

Mumbai: India rubbed its hands gleefully as the Belgium Police honoured its request to arrest the absconder diamantaire Mehul Chinubhai Choksi – more than seven years after he, along with his nephew Nirav Deepak Modi - allegedly duped the Punjab National Bank of nearly Rs. 13,800-crores.

 

The scam involving the ‘Mehul Mama-Nirav Bhanja’ erupted in Jan 2018, after the PNB lodged a complaint with the Central Bureau of Investigation (CBI).

 

By then the kin, along with many of their family members, winked and slipped out of the country, leaving a rattled India rubbing its palms in disappointment.

 

A political-cum-financial storm raged, embarrassing the Bharatiya Janata Party government of Prime Minister Narendra Modi a year before the Lok Sabha elections.

 

Multiple agencies launched a multi-pronged probe into what became the biggest banking scam in the past quarter century – and almost four times bigger than the stock market-cum-banking fraud the late Big Bull Harshad Mehta had inflicted on the Indian economy 33 years ago (in April 1992) – when it was just opening up.

 

In Belgium

According to official reports, Choksi was living with his Belgium citizen-wife Preeti in Antwerp, a global diamond hub, presumably for the past 18 months on a ‘residency permit’ acquired through questionable means, for medical reasons.

 

Earlier, he shot to the headers (June 2021) while being taken in a wheelchair to a court by the Dominican Republic's Police on charges of sneaking into the small country in the Caribbean Sea, North America.

 

Interestingly, as the Antigua & Barbuda government initiated the process to cancel his citizenship acquired through an investor visa, Choksi had suddenly gone ‘missing’ till he surfaced in the Dominican Republic.

 

The April 2025 action by Belgium followed a request by India’s CBI and the financial frauds specialist Enforcement Directorate (ED) to nab Choksi as the InterPol had revoked his Red Corner Notice in 2023.

 

Mama and Bhanja

‘Mama’ Choksi is the founder-owner of Gitanjali Group while ‘bhanja’ Nirav’s Firestar plus other companies – and the duo, with some PNB officials hand-in-glove – conspired to make a ‘mamu’ of not only PNB, but other banks, as it subsequently tumbled out.

 

After making a quiet exit, Choksi was detected living in the verdant Antigua & Barbuda Isles (West Indies), then attempted entry to the Dominican Republic, was sent back to Antigua & Barbuda and then went to Belgium where he was nabbed on Sunday.

 

Similarly, Modi was found sauntering on the streets of London and nabbed in March 2019. He remains in jail there since India's extradition is still pending.

 

However, India is keeping its fingers crossed that it may finally lay hands on Choksi, bring him to India and face trial in the PNB scam, though it may take time.

 

Born in Mumbai (1959) and educated in Gujarat, Choksi, 66, and wife Preeti have three children.

 

The Rs. 13,800-crore PNB scam

In the modus operandi revealed after India’s second-largest PSU bank PNB admitted it was scammed, Choksi and Modi used fraudulent Letters of Undertaking (LoU) to get overseas credits or loans from Indian banks.

 

The PNB first informed the Reserve Bank of India (RBI) of the fraud and then lodged a criminal complaint with the CBI in Jan. 2018, plus another CBI complaint in Feb, that led to a FIR against Modi and Choksi and their companies.

 

The ED entered the scene to probe the allegations of money-laundering through the LoUs – which they allegedly misused to avail short-term business finances from foreign branches of Indian banks.

 

The probe said that the duo were availing the LoUs from the PNB’s Brady House Branch from March 2011, and over the next six-seven years, managed to get a whopping 1,200-plus LoUs like a breeze with the help of some friendly bankers within.

 

Post-scam, the gold-diamond companies Gitanjali Group and Firestone Group with multiple operations in India and abroad have largely wound up, while some personal assets of the mama-bhanja have been auctioned to recover a part of the dues.

 

ED's plea to declare Choksi fugitive stuck for seven years

Even as absconding diamantaire Mehul Choksi, a key accused in the Punjab National Bank loan fraud case, has been arrested in Belgium, the ED's plea to declare him a fugitive economic offender has been pending before a court in Mumbai for nearly seven years.


Choksi, 65, and his nephew diamantaire Nirav Modi are the prime accused in the Rs 13,000 crore PNB bank loan fraud case. Choksi was arrested in Belgium following an extradition request by Indian probe agencies, official sources said on Monday.


The Enforcement Directorate had filed the application in July 2018, seeking to declare Choksi an FEO and confiscate his assets under provisions of the Fugitive Economic Offenders Act.


However, the matter has witnessed repeated delays owing to a barrage of applications filed by the accused in the PMLA court and the Bombay High Court alleging procedural lapses in the Enforcement Directorate's plea.


"The court is kept busy with frivolous applications, and hearing on our application to declare him (Choksi) an FEO has been adjourned for the past seven years,” an ED officer had said after the hearing was once again deferred this February.


"The court should have continued the hearing and taken a decision on the future course of action once the application was moved," the officer had said.

He had urged the court to take note of the repeated filing of similar applications and to not entertain them.


Choksi's lawyer had informed the court that the accused was undergoing treatment for suspected cancer in Belgium and intended to file an application in connection with his health.


Under the FEO Act, an individual can be declared a Fugitive Economic Offender if a warrant has been issued against him for an offence involving Rs 100 crore or more and he has left India while refusing to return. Once declared an FEO, the person's property can be confiscated by the investigating agency.


Choksi had challenged the ED's application in the Bombay High Court, alleging that the agency "had not followed proper procedure before filing the application and, hence, it stands vitiated".


However, in September 2023, the High Court dismissed his plea, ruling that the ED had adhered to the prescribed format under the FEO Act. It also vacated a stay on the special court's proceedings.


Despite this, the hearing on declaring Choksi FEO could not commence, with Choksi continuing to file applications before the special court through his lawyers.


While most of these pleas have been dismissed, a few remain pending. His latest attempt to stall proceedings through a plea to recall the notice issued on the ED's FEO application was rejected in December 2023.


According to ED officials, Choksi left India under suspicious circumstances in early January 2018.


Shifting stance

Choksi's counsel has argued that the ED kept shifting its stance on the material grounds for declaring him an FEO and that the suspension of his Indian passport made it impossible for him to return for investigation.

The court, however, rejected this argument, stating that the notice was issued based on accurate information and not based on "wrong facts or mistaken assumptions".


ED claimed the accused left the country under suspicious circumstances in the first week of January 2018.


Nirav Modi has already been declared as an FEO by the special court. He has been lodged in jail in London since 2019.

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