Photo : REUTERS/Christian Mang
06 January 2024, Saturday | NIAS Europe Daily Brief #723
In Brief
By Meenakshi R, Alka Bala and Rosemary Kurian
ESTONIA
Government receives Piorun air-defence systems from Poland
On 06 January, ERR News reported on government of Estonia decision to enhance its airspace protection with the Polish Piorun air-defence systems. This EUR103 million agreement provides the Estonian Defence Forces with these highly effective short-range weapons significantly strengthening their capabilities. The Piorun system with its impressive eight-kilometre range and ability to operate day and night has already demonstrated its effectiveness in Poland and Ukraine. It is user-friendly and requires minimal training making it ideal for equipping a dedicated Estonian reservist unit. This ensures the swift deployment and safeguarding of critical infrastructure beyond the immediate frontline. This development represents a significant advancement for Estonian air defence and serves as a symbol of the strong security partnership between Poland and Estonia. The joint procurement emphasises both nations' commitment to regional stability in the face of evolving threats with a focus on fast delivery and technical compatibility. ("Estonia takes delivery of Polish Piorun air-defense systems," ERR, 06 January 2024)
GERMANY
Farmers stage protest against increase in tax
On 06 January, Politico reported on intense demonstrations in Germany against budget cuts. More than 100 protesters criticized Habeck for proposing increase in taxes on diesel fuel and other agricultural benefits. This highlights the escalating tensions over government's austerity measures which have sparked significant farmer protests in recent weeks. The government denounced the protest as "shameful" and a violation of democratic norms. Farmers continue to demand a complete reversal of the tax increases and plan larger protests for the following week. ("Mob of German farmers accosts top Green as protests escalate," Politico, 06 January 2024)
Scholz visits Saxony-Anhalt due to floods alert
On 04 January, Deutsche Welle reported Olaf Scholz, German Chancellor visit to Saxony-Anhalt, where the village of Bennungen, near the river Helme, remained on high alert. Members of Scholz's Social Democratic Party (SPD) urged the federal government to consider declaring a state of emergency, allowing extra borrowing for flood relief in the worst hit northern Germany. By 03 January, about 100,000 individuals, encompassing emergency services and volunteers, were activated in Lower Saxony, and French emergency crews were also present to contribute to flood relief in the region. The Lilienthal area in one of the most severely impacted regions, 20,000 residents were forced to evacuate. (“Germany: Flooding persists in north and east, Scholz visits,” Deutsche Welle, 04 January 2024)
Inflation relaxed to 5.9 per cent; Food and energy prices remain high
On 04 January, Deutsche Welle reported Germany’s ease in inflation to 5.9 per cent in 2023 compared to 6.9 per cent in 2022 as published by German Statistics Agency Destatis. While inflation had been consistently decreasing since June, there was a rise in December, driven by persistent increases in food and energy costs, 4.5 and 4.1 percent. According to data released, 2023 proved better than 2022, as German industries dependency over Russian fuels were hit and faced high prices after Russia’s invasion of Ukraine in February 2022. (“Germany sees inflation ease to 5.9% for 2023,” Deutsche Welle, 04 January 2023)
“Deustchlandtrend” opinion poll reveals pessimistic country prospects for 2024
On 05 January, Deutsche Welle reported on the results of a nationwide poll of 1,321 eligible voters executed by pollster Infratest dimap, The report revealed citizen’s fears over harsh weather conditions, price rise, refugee influx, while also indicating uncertainty over of Russia-Ukraine war and Israel-Hamas war. Therefore, only nine per cent believed that these conflicts to end by 2024. Voters' perspectives on Germany's stance in Ukraine have generally remained steady, however 41 per cent of respondents now view Germany's financial aid to Ukraine as overly extensive, reflecting the country's escalating budgetary challenges. Germany had pledged USD 8.6 billion as military aid in 2024. Around 80 per cent of voters expressed skepticism over chances of US reducing its Ukraine support and EU managing the balance. Nationally, only 19 per cent are satisfied with Scholz's performance, with just 17 per cent approving of the federal government's overall job. (Sabine Kinkartz, “War, inflation, flooding: Germans' negative outlook on 2024,” Deutsche Welle, 05 January 2023)
GREECE
Historic site of Alexander the Great’s crowning reopened after restoration
On 06 January, the BBC reported on the reopening of the Palace of Aigai, one of the most significant sites in Greek antiquity, after restoration. The Palace, built by Alexander the Great’s father Philip II in the then capital of Aigai, was the site of the former’s crowning in 336 BC. The restoration of the UNESCO World Heritage Site took sixteen years and EUR 20 million with the help of the EU, and was declared a “monument of global importance” by Kyriakos Mitsotakis, the Greek Prime Minister. The palace, the largest in ancient Macedonia, featured banquet halls, places of worship and courtyards. (Kathryn Armstrong, “Palace of Aigai: Greece reopens huge Alexander the Great monument,” BBC, 06 January, 2024)
NORWAY
Ban on diesel cruise ships sparks fears of diminished tourism
On 04 January, Deutsche Welle reported on the Norwegian Parliament’s decision to adopt a zero-emission policy and to allow only cruise ships that use greener alternative fuels to sail from 2026. Espen Barth Eide, Norway’s Foreign Minister stated that “ships produce world’s highest emissions per passenger and travelled kilometre and pollute the fjords.” A swift ban on diesel cruise ships threatens the livelihood of residents of Geiranger Fjord, who depend largely on mass tourism, which will take a hit post-implementation of the policy. The existing technology that uses Liquified Natural Gas (LNG) achieves “far too little” according to the government which proposes a switch to electric-powered cruise ships. The residents however hope for a longer transition period ensuring that tourism and livelihood remain unaffected. (“Norway bans polluting cruise ships,” Deutsche Welle, 04 January 2023)
SLOVAKIA
Heat pump rises as a sustainable alternative in European energy market
On 03 January, The Slovak Spectator reported on the increasing investments in the heat pump industry as an effective and sustainable fuel alternative, following rise in energy prices spilling from the Russian invasion of Ukraine. Given the increased demand, investments have increased by both existing manufacturers and newer businesses from western Europe, according to the Slovak Investment and Trade Development Agency (SARIO). The largest European investors are German companies, following a change in legislation favouring the sustainable heat pump industry, feeding into its domestic demands as well. (Jana Liptáková, “Energy crisis fuels heat pump investments in Slovakia,” The Slovak Spectator, 03 January, 2024)
SPAIN
Unemployment dips to record low since 2007
On 03 January, spainenglish reported on the lowest unemployment rates in Spain since 2007, having decreased 4.59 per cent since December 2022. As of 2023, over 20.8 million employed people with social security benefits, with the highest annual job creation since 2018 excluding post-Covid recovery. The Balearic Islands peaked with the highest employment rates in the country, with Catalonia, Valencia and La Rioja being exceptions with an increase in unemployment rates. New employment policies have mostly benefited women and the youth, as Prime Minister Pedro Sánchez noted record female employment in the country. (“Unemployment in Spain reaches its lowest level since 2007,” spainenglish, 03 January, 2024)
SWITZERLAND
Culling of wolves alarming for European biodiversity
On 04 January, swissinfo reported on Bern’s decision to allow a preventative culling of up to 70 per cent of the wolf population, citing threats to livestock. The government’s decision came following a thirty per cent annual increase in the predator’s population, a sentiment that has spread as a cross-border issue in Europe. While EU nations are bound by strict conservation laws, the European Commission proposed to downgrade the status of wolves from “strictly protected” to “protected”, creating freer rules like Switzerland. The EU’s decision is also based on a livestock conundrum, with some critics accusing Ursula von der Leyen, the Commission’s President, of furthering a personal agenda. However, a large-scale culling needs the approval of the 27 EU members and therefore might not materialise soon in European policy even if it has Swiss backing. (Domhnall O’Sullivan, “Wolf crackdown in Switzerland: a sign of what’s to come in Europe?”, swissinfo, 04 January, 2024)
THE NETHERLANDS
Heavy rainfalls causes flooding of major highways and provinces
On 05 January, the NL Times reported on the state of flooding in eastern and northeastern Netherlands, leading to road safety concerns and concerning water levels in the Maas River. The flooding of N345 and N36 led to road closures, and freezing temperatures increased the risk of road transportation. The water level in the Maas River reached its highest, releasing 1,700 cubic metres of water per second south of Maastricht at Sint Pieter. The weirs (low dams) along the Maas have been raised to allow the flow of water, currently declining based on inflow from France and the Ardennes. The Noord-Brabant province is simultaneously using available water storage facilities to prevent flooding in the region. (“Major roadways flooded in the east and northeast Netherlands”, NL Times, 05 January, 2024; “Highest Maas River water level has passed Maastricht; Noord-Brabant opens flood defenses,” NL Times, 05 January, 2024)
TURKEY
Hotel faces trial over fatal buildings collapse in turkey
On 05 January, Deutsche Welle reported on a trial against Grand Isias Hotel following the severe earthquakes that struck Turkey in 2023 over building collapse. A charge of "conscious negligence" was placed because of poor building quality the Grand Isias Hotel collapsed after the earthquakes killing 72 people including Northern Cyprus students. Questions concerning government accountability and the state of building standards were raised due to this incident. The prosecution claimed that the hotel was unlawfully altered and inappropriately extended without permits and requested for harsh terms of up to 22 years. In addition, the trial seeks Turkey's commitment to enhance building safety and avert such tragedies in earthquake-prone areas. ("Turkey earthquakes: Trial over collapsed hotel begins," Deutsche Welle, 05 January 2024)
REGIONAL
Power cable between Finland and Estonia goes offline
On 06 January, Sputnik reported on the shutdown of electricity transmission through Estlink 1, the high-voltage connection between Finland and Estonia, after a possible malfunction. The cable commissioned in 2007 went offline while its power capacity stood at 50 MW, according to the operator of Fingrid, the Finnish power grid. Estlink 1 is part of two underwater power cables between the two countries in an attempt to integrate the energy markets of the Scandinavian region and the Baltic states within the EU region and a possible attempt at diversifying Europe’s energy sources. (“Outage Occurs at Estonian-Finnish Undersea Power Cable Estlink 1,” Sputnik, 06 January, 2024)
Commission's DSA Showdown with Tech Giant X: The Climactic AI Showdown
On 06 January, EURACTIV reported on the upcoming conclusion of the EU's AI law with a potential conflict between Germany, France, and Italy over "foundation models" risking the agreement. While France advocated for approval, Germany's Digital Minister strongly opposes it and Italy remains uncertain. If three more dissenters emerge the bill could be blocked, whereas opposing will also lead to political risks and delays in the implementation of the Digital Services Act (DSA). The European Commission demonstrates its authority by initiating an investigation into X (likely Twitter) for alleged violations of the DSA sending a clear message to all major tech companies. ("AI, final Act? Commission’s DSA showdown with X," EURACTIV, 06 January 2024)
INTERNATIONAL
Chinese probe into French Liquor, straining relations with EU
On 05 January, Politico reported on China’s investigation into potential dumping by European liquor producers, particularly targeting France's brandy sector in response to the EU's trade assertiveness. This includes a probe into Chinese electric vehicle subsidies that was strongly pushed by French government. The ongoing investigation by Beijing shall target cognac, Armagnac and other brandies which generate a USD 1.57 billion (EUR 1.44 billion) export business for spirits groups like Remy Martin or Hennessy, while further straining the already tense relationship between the European Union and China and is also likely to impact the upcoming state visit to Beijing by Alexander De Croo, Belgian Prime Minister. (Koen Verhelst, Antonia Zimmermann and Camille Gijs, “Chinese liquor probe escalates trade tensions with Brussels,” Politico, 05 January 2023)