Photo : REUTERS/Dado Ruvic/Illustration
IN FOCUS
By Ashwin Dhanabalan
Omicron - The New Virus Taking over Europe
Europe’s immediate reaction to the new variant
On 30 November, countries in Europe scrambled to impose travel restrictions and regulations to stop the spread of the new COVID-19 variant called Omicron. Cases of the new variant continued to be reported from all across Europe leading to an immediate halt of flights to and from South Africa, with a few countries issuing travel bans. Since the new variant had undergone a high number of mutations, there were speculations of the variant being more transmissible and deadly. This new variant has increased risks to global economic growth and inflation. These have come to the forefront as countries started restricting travel to other countries, discouraging tourism. Governments like the UK had re-imposed restrictions on compulsory wearing of masks in public, mandatory PCR tests to enter the country, and suspected cases of Omicron were to self-isolate for 10 days. In other countries, existing restrictions to curb the spread of the Delta variant would momentarily be continued and expanded to control the spread of Omicron.
Effects of the variant on state regulations and economies of the countries
On 30 November, the economic impact of the variant led to a sudden fall in global stocks. The Euro fell 0.3 per cent against the dollar, while investors used the volatility to buy big; the variant brought more risks and volatility. The economic impact on the emerging markets has differed as the emergence of the new variant has stretched the already stretched supply chains and raised inflation to a higher level. Travel within Europe and to Southern African countries had been restricted with the strict imposition of a 14-day quarantine for fliers from the region, regardless of whether they test negative or positive. Austria extended its lockdown by ten days bringing the total duration of the lockdown to 20 days.
On 02 December, the European Commission chief Ursula von der Leyen urged the member countries to consider making the vaccines mandatory to curb the rising cases of Omicron in the region; this led to protests in Brussels against the European Union institutions. Austria would make vaccination compulsory from February, while Greece stated mandatory vaccination for people aged 60 and above. Germany decided to bar all the unvaccinated people from non-essential businesses and were only allowed to work in essential jobs at grocery stores and pharmacies.
On 03 December, Ireland moved to tighten the restrictions, closed nightclubs, and reintroduced social distancing in restaurants. Norway introduced strict measures over Oslo and its surrounding regions with work from home and limited attendance at events.
Recent Developments regarding the virus
On 07 December, Prime Minister Boris Johnson stated that the new variant is more transmissible than the delta variant as cases were doubling every two days. While the EU discussed easing travel curbs on South Africa as the new variant "was possibly mild" the hopeful updates motivated the European stocks to climb uphill, bringing confidence to European investors. But as the WHO suggested, it was too early to decide if the new variant is possibly mild or more aggressive. Europe had over 400 confirmed cases over the week, which led to an immediate meeting of the health ministers to evaluate the situation. They discussed measures to control the spread of the new variant by reinforcing the use of masks and other social distancing measures as they realized that vaccination jabs were not enough. Europe should not panic but prepare for a possible spread of the new variant.
References:
Andrea Shalal, “IMF chief says Omicron could dent global economic growth,” Reuters, 04 December 2021.
Anisha Sircar and Susan Mathew, “European shares bounce on hopes Omicron may be mild,” Reuters, 06 December 2021.
“EU Commission chief urges countries to consider mandatory vaccines amid variant fears,” France 24, 07 December 2021.
“EU health ministers meet as Omicron cases rise in Europe,” Times of Malta, 07 December 2021.
IN BRIEF
By Joeana Cera Matthews and Padmashree Anandhan
AUSTRIA
Austria sees third Chancellor in two months with Nehammer’s swearing-in
On 06 December, Austrian President Alexander Van der Bellen swore in Karl Nehammer as the country’s Chancellor at Vienna’s Hofburg Palace. The new chancellor took to Twitter, tweeting: “There is much to do! The pandemic is not over and it is straining our people… It must be our goal to drive back the division in our country and to fight together against the real enemy of our freedom and thus regain the trust of the people.” The third leader in two months and the sixth in five years, Nehammer is now burdened with setting the government on a non-scandalous path along with curbing the pandemic’s surge. The previous chancellor Alexander Schallenberg is expected to return to his post of foreign minister. The shift in power followed the resignation of former Austrian Chancellor Sebastian Kurz, who stepped down from politics to spend more time with his family. Nehammer, the Interior minister since January 2020, is also a Kurz-supporter who backs a hard-line anti-immigration stance. Before he was officially sworn in, the new chancellor had reshuffled the Cabinet. (“Austria: Karl Nehammer sworn in as new chancellor,” Deutsche Welle, 06 December 2021; Laurenze Gehrke, “ New Austrian chancellor vows to ‘drive back division’ in the country,” POLITICO, 06 December 2021)
FINLAND
UN names Finland as the happiest country in the world
Recently the UN Sustainable Development Solutions Network named Finland as the happiest country in the world. Prime Minister of Finland Sanna Marin who became the youngest world leader in 2019 during an interview said: “Equality, a well-funded education system and a strong welfare state are the secret to the success of the world’s happiest nation.” During the pandemic, Marin gained popularity for managing the crisis but the five-party coalition has begun to show the gaps within. On a question posed to her on her thoughts if future governments would continue to push for equality, She said “ I think so. Because it’s work that’s ongoing. We have always worked for equality in Finland, and I think it’s also important in the future, and not only the equality of men and women, or the genders, but also the equality of minority groups in society. We have to make sure that structures don’t act as barriers to people. So, there are many things to do.” (Alexandra Topping, “Finland is the world’s happiest nation – and I want to keep it that way, says prime minister,” The Guardian, 05 December 2021)
REPUBLIC OF IRELAND
Storm Arwen’s devastation to be followed by Storm Barra
On 06 December, The Guardian reported the Republic of Ireland to have issued a red alert while the UK issued yellow warnings in anticipation of the storm named ‘Barra’. Barra follows in the footsteps of the Storm Arwen that ‘wreaked havoc’ in Ireland and the UK. Warnings include those of dangerous coastal waves, atrocious driving conditions, travel delays, flooding and infrastructural damage. The Met Office meteorologist Annie Shuttleworth said: “That means that we’ll have especially large waves so there is a potential risk to life in these areas… likely to cause quite widespread travel disruption and potential road closures, delays to rail and ferries and so on, there is a chance of damage to buildings too.” The 80 mph forecasted gusts are predicted to make landfall by 07 and 08 December. (Mark Brown, “Storm Barra: multiple warnings issued for Ireland and UK,”The Guardian, 06 December 2021)
REGIONAL
ECB announces plans to redesign Euro banknotes
On 06 December, the European Central Bank (ECB) disclosed its plans of renewing the look of euro banknotes. The input from the public is scheduled to be taken by the 19-member eurozone on the redesigning. According to the ECB President Christine Lagarde After 20 years, it's time to review the look of our banknotes to make them more relatable to Europeans of all ages and backgrounds. The new designs are expected to be released by 2024. Eight EU member states, Bulgaria, Croatia, the Czech Republic, Denmark, Hungary, Poland, Romania, and Sweden will remain unaffected by the changes. (“European Central Bank plans euro bill redesign,” Deutsche Welle, 06 December 2021; Richard Partington, “Euro banknotes to get a first big redesign with 19-nation consultation,” The Guardian, 06 December 2021)
INTERNATIONAL
Ukraine: West backs Kyiv against Russian aggression
On 06 December, leaders of the West expressed their support to Ukraine amidst the ongoing Russian aggression at the border. German, French, US, Italian, and British leaders reiterated the “need to protect the sovereignty of Ukraine”. Both the White House and Downing Street verified the talks between the US President Joe Biden, the UK Prime Minister Boris Johnson, German Chancellor Angela Merkel, Italian Prime Minister Mario Draghi, and French President Emmanuel Macron. According to a senior official of the Biden administration: “We have had intensive discussions with our European partners about what we would do collectively in the event of a major Russian military escalation in Ukraine, and we believe that we have a path forward that would involve substantial economic countermeasures by both the Europeans and the United States.” The US also assured military backing to NATO along with the imposition of sanctions in the face of such an attack. On 03 December, Biden spoke to reporters, stating: “What I am doing is putting together what I believe to be will be the most comprehensive and meaningful set of initiatives to make it very, very difficult for Mr. Putin to go ahead and do what people are worried he may do.” Biden and Putin are set to conduct a secure video call on 07 December at 1500 GMT where the US President is expected to clarify the possibility of Ukraine being a member of NATO. (“West determined to protect Ukraine sovereignty in face of 'Russian aggression',” Deutsche Welle, 07 December 2021; Andrew Roth and Julian Borger, “US says it will send troops to eastern Europe if Russia invades Ukraine,” The Guardian, 06 December 2021; Quint Forgey, “ U.S. and Europe ready 'significant and severe' sanctions if Russia invades Ukraine,” POLITICO, 06 December 2021; “Biden to warn Putin of 'very real costs' of Ukraine invasion in high-stakes call,” France24, 07 December 2021)