Photo : Freedom House
01 August 2024, Thursday | NIAS Europe Daily Brief #899
By Samruddhi Pathek
GREECE
Marks 50 years of democracy
On 31 July, Greece celebrated its 50th anniversary of restored democracy. After Turkey had invaded Cyprus, Greece experienced seven years of military junta and finally restored democracy in 1974. The period of Greece’s quest for democracy is known as ‘Metapolitefsi.’ With the establishment of democracy, the country had legalised parties that were outlawed by the Communist Party. The country became a part of the European Economic Community (EEC) in 1981 and also adopted the Euro in 2001. When Greece declared itself a democracy in 1974, its literacy rate was less than 66 per cent and 40 per cent of the population was dependent on agrarian income. The newly declared democracy overcame these problems and even thrived through the Great Recession of 2008. Politico enlists some lessons from the Greek democratic principles including avoiding populist narratives, enabling a borrowed prosperity model and functional bipartisanship. Greece increased its foreign direct investment after 1974 to restore its financial stability as it realised the need for private-sector led growth. The country also capitalises on its strategic location, as it provides supply routes for Ukraine and Israel during the wars. However, like many European nations, even Greece is facing polarisation in politics. (“Democracy in dark times: Hopeful lessons from Greece’s 50-year odyssey,” Politico, 31 July 2024)
GERMANY
GDP falls by 0.1 per cent in Q2; Unemployment rate at peak
On 30 July, a federal statistics agency, Destatis, released new data that estimated an increase of 2.3 per cent in Germany’s inflation rate. Meanwhile, its GDP has also contracted by 0.1 per cent in the second quarter of 2024. This goes in contrast with the rest of Europe where the average growth rate is 0.3 per cent. The contraction is a result of a shortage of skilled labour, high energy prices and a slump in the automobile industry due to a shift towards EVs and tough competition from Chinese manufacturers. On 31 July, the Federal Employment Agency (BA) of Germany reported a rise in unemployment with over two million people being unemployed. The number is 1,92,000 higher than June 2024. The rate has increased by 0.2 per cent. There is also a fall in demand for labour. Meanwhile, there is also an increase in foreign workers. In July, 9,03,000 people received unemployment benefits from the Government. There is an increase of 1,05,000 people than last year. (“German inflation edges up to 2.3% in July,” Deutsche Welle, 30 July 2024; “German economy contracts unexpectedly in second quarter,” Deutsche Welle, 30 July 2024; “Germany's unemployment rises as economic growth stalls,” Deutsche Welle, 31 July 2024)
Foreign Ministry accuses China of espionage
On 31 July, Germany’s Foreign Ministry summoned the Chinese ambassador over the 2021 cyberattack on the German government’s mapping agency. While speaking on the rule-based behaviour in cyberspace, the spokesperson of the Foreign Ministry also stated that the threats posed by Chinese espionage should be undermined. There have been many incidents in the past where China was accused of espionage by several governments, including the US, Canada, the Netherlands and Australia. (“Germany summons Chinese envoy over 2021 cyberattack,” Deutsche Welle, 31 July 2024)
SWEDEN
Government tightens rules to counter gang violence
On 22 July, a gangster threw a grenade inside a shop in Södertälje which killed two people. The incident has raised concerns over ongoing drug gang violence, which the ruling party had promised to eradicate two years ago during the elections. Sweden has the highest rate of deaths due to shooting in Europe. In 2024 itself, there have been 148 shooting incidents so far and 20 people have lost their lives, meanwhile 26 were injured. There were 53 deaths due to gun shootings in 2023 and 62 in 2022. The Government has also lowered the age of punishment for gun crimes and extended the punishment. The government has also passed a law that allows police to stop and search in sensitive areas. (“Warring drug gangs turn up the heat on Sweden’s government,” Politico, 31 July 2024)
REGIONAL
EU countries worry about their dependency on imports for food security
On 26 July, Politico wrote about Ursula von der Leyen, the European Union President, being worried about Europe’s food imports. France has launched an inquiry over “loss of food sovereignty.” Politico quotes Tim Lang, emeritus professor at City, University London, “Food security is a paradox.” However, the report alleges that European politicians aim to increase the food exports and not the food sovereignty of the continent. Imports from the EU have prevented farmers from the Middle East and Africa from prospering. Thus, the slogans by European leaders on “food security” are actually about increasing food exports. According to Politico, European farmers are being misled by being said that “they have the responsibility to feed the world.” Solutions suggested by the report to increase food productivity is to find solutions to weather climate change and keep the food productivity going through floods and droughts. (“The EU says it wants food security. It really wants exports,” Politico, 26 July, 2024)