Photo : Politico
11 January 2024, Thursday | NIAS Europe Daily Brief #727
Europe in Brief
By Meenakshi R
BELGIUM
De Croo under pressure to balance equation with China
On 10 January, Politico reported on Alexander De Croo, Belgium Prime Minister’s challenges ahead of his visit to China. This trip is considered significant due to strained trade relations, escalating tensions over Taiwan's presidential election. The EU currently grapples with a substantial trade deficit, De Croo's requires a delicate balancing act. While it seeks economic opportunities, it also aims for greater "reciprocity" and endeavours to reduce its reliance on China in sensitive sectors such as green technology. Belgium has come under scrutiny for potential Chinese influence in its political affairs, further intensifying the pressure on De Croo. His emphasis on green energy investment during the trip underscores the EU's careful approach of seeking cooperation while safeguarding its strategic interests. (Camille Gijs, "Belgian PM faces high-wire act in China as EU, Taiwan fears intrude," Politico, 10 January 2024)
BELGIUM
Belgium Avoids EU Blunder as Government Renews Central Bank Chief's Term
On 10 January, Politico reported on an intense political deadlock that poses risk to Belgium's EU Council presidency. The government announced its decision to extend Pierre Wunsch's tenure as the governor of the National Bank of Belgium. This timely resolution guarantees Wunsch's involvement in the crucial European Central Bank (ECB) meeting scheduled for 25 January. The previous delay was stemmed from disputes regarding other government appointments, raised concerns about the independence of the central bank and necessitated Wunsch to temporarily assume a leadership role. Now officially appointed for a second five-year term, the governor will continue to be an advocate for stricter monetary policies within the ECB council.("Belgian government breaks deadlock over renewal of central bank governor mandate," Politico, 10 January 2024)
DENMARK
Far-Right Party steps down after election loss
On 10 January, Politico reported on The New Right, a political party in Denmark known for its anti-Islam, anti-immigration, and anti-tax stance, decision to step down. Despite receiving 3.7 per cent of the vote in 2022, due to internal divisions within party, it lost support. This move created an opportunity for other right-wing parties, such as the Danish People's Party, to expand their influence and gain more support from the right-wing electorate. While the future political plans of Pernille Vermund, the founder of The New Right, remain uncertain, it is evident that the right-wing political landscape in Denmark is on the verge of a significant reshuffling. (Barbara Moens and Carlo Boffa, "Danish anti-Islam, anti-immigration, anti-tax party dissolves," Politico, 10 January 2024)
GERMANY
German rail operator faces new strike action from labour union
On 10 January, Deutsche Welle reported on German train travel is currently experiencing fresh turmoil due to the announcement of another strike by the GDL union (labour union). This strike is a result of an ongoing wage dispute with Deutsche Bahn. The union demands shorter working hours of 35 per week, against current 38 hours, without any effect on pay. Negotiations between the two parties have reached a deadlock. Passenger trains is expected to halt as a result of this strike till 12 January. The union claims that Deutsche Bahn has not made a serious offer since the Christmas break and is demanding improvements in working hours, pay EUR 555 per month with inflation bonus, and an earlier agreement. Deutsche Bahn considers the strike to be "unnecessary and illegal" and is offering a wage increase and a longer contract term instead of reduced hours. It also seeks a court injunction to prevent the strike from taking place. Previous strikes have caused significant disruptions, highlighting the immense pressure faced by both sides. ("Deutsche Bahn: German rail union plans fresh strikes," Deutsche Welle, 10 January 2024)