Daily Briefs


Photo : Sputnik / Russian Defence Ministry

11 September 2024, Wednesday | NIAS Europe Daily Brief #933

Russia conducts largest naval drills Ocean-24

European Court of Justice court rules Google to pay fine of EUR 2.4 billion; Nestle to pay France EUR two million to close probes

By  Advik S Mohan

RUSSIA

Conducts largest naval drills Ocean-24
On 10 September, RT reported on the biggest strategic naval drill launched by Russia in decades. Vladimir Putin, Russia’s president announced the launch of Ocean-24 which will be held in the Pacific and Arctic Oceans and the Mediterranean, Caspian and Baltic Seas. The exercise aimed to test the readiness and interoperability of the Russian Navy and the Air Force. The exercise will include more than 400 battleships and submarines as well as auxiliary vessels, some 120 aircraft and over 90,000 personnel. In a meeting, Putin informed that the drill would involve complex military operations such as simulated launching of high-precision weapons. He noted that the exercise would showcase the Russian military’s experience from the ongoing war with Ukraine. Admiral Aleksandr Moiseev, the head of the Russian Navy informed about the Chinese participation in the drills which involved Four vessels and 15 aircraft. Putin also condemned the US dominance. He said: “We can see that the United States is doing everything to hold on to its global military and political dominance, no matter the cost, by utilising Ukraine and seeking to inflict a strategic defeat on our country.” Putin noted that Russia should be ready for any upcoming challenges or threats amidst the escalating geopolitical tensions. He opted for an increase in military cooperation with alliances to counter foreign threats. Putin also accused the US of sending additional troops to Europe, the Arctic and the Pacific, escalating the crisis in those regions. He considered the commencement of the exercise as a beginning to counter these threats. (“Russia holding biggest strategic naval drills in decades,” RT, 10 September 2024; “US trying to maintain dominance ‘at any cost’ – Putin,” RT, 10 September 2024)

THE EU

European Court of Justice court rules Google to pay fine of EUR 2.4 billion
On 10 September, the BBC informed the European Court of Justice (ECJ) that tech conglomerate Google must pay a EUR 2.4 billion fine. The case began in 2009 when British firm Foundem filed a complaint against Google. The firm argued that Google had made its shopping recommendations appear more prominent than rivals in search results. In 2017, the European Commission agreed that Google had monopolised online price comparison and prevented competitors from gaining.  The Commission also levied a fine of EUR 2.4 billion. However, Google appealed against the decision. The latest decision by the ECJ brings an end to this case. Google responded to the judgement by stating that it was disappointed. Anne Witt, a Professor of Law at EDHEC Business School’s Augmented Law Institute stated that the judgement was “bad news” for Google. Witt also informed that several other cases were pending against Google. The tech giant faces a case against the US Government over its ad tech business; regulators in the UK have concluded that the firm used anti-competitive practices to dominate the online advertising technology market. Google has also faced fines worth EUR 8.2 billion from the European Commission. (Tom Gerken, “EU court rules Google must pay€ 2.4bn fine,” BBC, 10 September 2024)

FRANCE

Macron making his political way through the snap elections
On 07 September, the BBC published an opinion on Emmanuel Macron, the President of France navigating through political dilemmas. The came after Macron took a lot of time to appoint a Prime Minister for the parliament. Isabelle Lasserre, author of a biography on Macron, said, “It’s a mess. Macron has lost his touch.” According to the BBC report, the call for snap was ill-timed and proved counterproductive since it took him two months to appoint the head of the government. She said that Macron ignored the New Popular Front, the left-wing bloc, which managed to win the most number of votes and seats in France. She also said that Macron has recently presented himself as aloof and uninterested in restoring national stability in France. The left-wing alliance, which emerged as the most popular political alliance, felt betrayed by the President for not choosing their candidate as the Prime Minister. The article also concludes that Marine Le Pen came out as a winner in the elections as her party, National Rally, emerged as the largest party in the elections. Macron spent most of political energy and capital in containing her party. However, Macron still has two and half years left in his tenure. So far, he has also managed to maintain a neutral image of himself i.e., neither far-right nor far-left. (Andrew Harding, “Has Macron fixed France's political mess?,” BBC, 07 September 2024)

Nestle to pay France EUR two million to close probes
On 09 September, Nestle, a Swiss dairy brand which also owns water brands, was asked by French probes to pay EUR two million to close probes over its water brands. The probe has been launched due to illegal wells and treatment of mineral water. Nestle owns water brands like Perrier, Vittel and San Pellegrino. Nestle has also signed a non-prosecution agreement with France which has received mixed views from the prosecutors. Some opine that the non-prosecution agreement was the “biggest concerning the environment signed in France to date.” While some argue that “the non-prosecution agreement was justified as Nestlé had cooperated with the probe, had brought its practices into compliance and there were no public health consequences.” (“Nestlé to pay €2 million to close France water probes,” Le Monde, 10 September 2024)

GERMANY

Far-right’s bull run to continue says BBC
On 10 September, BBC published a report on the rise of far-right parties like Alternative for Germany (AfD) in eastern Germany. After the election in Thuringia and Saxony, AfD has proven its public appeal. Polls suggest that in the upcoming elections in Brandenburg, AfD will emerge as a strong party. BBC interviewed Christian Democratic Union (CDU), a centre-right party, voters and concluded that people had complaints regarding education services, flatlining economy and rising immigration. Therefore, AfD and Bündnis Sahra Wagenknecht’s (BSW), a far-left party, demand for ending the supply of weapons to Ukraine is resonating closely with people. BSW had advocated left-wing economic policies and a conservative approach towards immigration. According to the opinion poll conducted by ARD, a state-owned broadcast service, almost 27 per cent of votes will go to AfD and Social Democratic Party (SDP), Olaf Scholz’s party belonging to the centre-left, will emerge as the second largest party with 23 per cent of votes. BSW is predicted to win 15 per cent of votes, as per the ARD polls. However, AfD is less likely to be in power because other parties have refused to form a coalition with it. (Jessica Parker, “Rise of far right in Germany’s east isn’t over yet,” BBC, 10 September 2024)

Germany to make border controls stricter
On 10 September, BBC reported that the Federal Government of Germany was expanding border controls after the Solingen stabbing attack. The German government informed controls such as spot checks on roads and in trains would be introduced at all its border points from 16 September. The measures will last for an initial period of six months. Nancy Faeser, Federal Minister of the Interior and Community of Germany stated that the checks would reduce Islamist extremism and cross-border crime. The Solingen attack by a Syrian immigrant and the victory of the anti-immigration AfD party in regional elections have compelled the German government to adopt a harder stance towards immigration. The government has resumed deportations of convicted Afghan criminals to their home country, and allowed asylum seekers at risk of deportation to lose benefits. Meanwhile, the opposition Christian Democratic Union has proposed turning back all asylum seekers at the border. Germany’s proposed border controls were criticised by Donald Tusk, the Prime Minister of Poland. Tusk stated that Germany’s actions amounted to basically a suspension of the Schengen Agreement, which had allowed for unrestricted travel among Germany’s neighbours. Germany’s decision was also criticised by Austria, although the Czech Republic supported it. (Damien McGuinness and Mallory Moench, “Germany to tighten border controls after stabbing,” BBC, 10 September 2024)

IRELAND

Apple ordered to pay Ireland EUR 13 billion in tax
On 10 September, BBC reported that tech conglomerate Apple had been asked to pay the Government of Ireland EUR 13 billion in unpaid taxes. The European Court of Justice (ECJ) confirmed the decision by the European Commission, ordering the Irish government to recover the unlawful aid which it had provided to Apple through tax advantages. The Irish government argued that the tax does not need to be paid. The original ECJ decision had covered the period from 1991 till 2014. The ECJ declared that the tax arrangements for profits generated by two Apple subsidiaries in Ireland were illegal. This was because other companies could not garner advantages in the same manner. While the lower court of the ECJ overturned that judgement; the latest verdict of the higher court of the ECJ makes the first judgement null and void.  Apples responded to the latest judgement by stating that the European Commission was trying to retroactively change the rules relating to tax. The company also reaffirmed that it pays all the tax which it is owed. Meanwhile, the Irish government stated that it would respect the ECJ ruling. The Irish government had argued against tax repayments since it believes the loss is worth it to make Ireland an attractive destination for big companies. The country has one of the lowest corporate tax rates in the EU. The court verdict is also a success for the European Commission, which had been pursuing the case since 2016. (Charlotte Edwards and Theo Leggett,  “Apple told to pay Ireland €13bn in tax by EU,” BBC, 10 September 2024)

RUSSIA

Conducts largest naval drills Ocean-24
On 10 September, RT reported on the biggest strategic naval drill launched by Russia in decades. Vladimir Putin, Russia’s president announced the launch of Ocean-24 which will be held in the Pacific and Arctic Oceans and the Mediterranean, Caspian and Baltic Seas. The exercise aimed to test the readiness and interoperability of the Russian Navy and the Air Force. The exercise will include more than 400 battleships and submarines as well as auxiliary vessels, some 120 aircraft and over 90,000 personnel. In a meeting, Putin informed that the drill would involve complex military operations such as simulated launching of high-precision weapons. He noted that the exercise would showcase the Russian military’s experience from the ongoing war with Ukraine. Admiral Aleksandr Moiseev, the head of the Russian Navy informed about the Chinese participation in the drills which involved Four vessels and 15 aircraft. Putin also condemned the US dominance. He said: “We can see that the United States is doing everything to hold on to its global military and political dominance, no matter the cost, by utilising Ukraine and seeking to inflict a strategic defeat on our country.” Putin noted that Russia should be ready for any upcoming challenges or threats amidst the escalating geopolitical tensions. He opted for an increase in military cooperation with alliances to counter foreign threats. Putin also accused the US of sending additional troops to Europe, the Arctic and the Pacific, escalating the crisis in those regions. He considered the commencement of the exercise as a beginning to counter these threats. (“Russia holding biggest strategic naval drills in decades,” RT, 10 September 2024; “US trying to maintain dominance ‘at any cost’ – Putin,” RT, 10 September 2024)

Russian birth rate hits lowest rate in quarter of a century
On 10 September, Euronews reported that the Government of the Russian Federation was distressed about a decline in the birth rate of the country. The Russian birth rate is the lowest since 1999, with the country recording less than 100,000 live births in June. According to the Russian governmental statistical agency Rosstat, 599,600 children were born between January and June of 2024. This is 16,000 less than the same period in 2023. At the same time, Russia recorded 49,000 deaths more than the previous time. This amounts to a population decline of 18 per cent. Nina Ostanina, Head of the State Duma Committee for Family Protection stated that the country required a “special demographic operation.”  A spokesperson for the Russian President, Dmitry Peskov stated that the low birth rate was “catastrophic.”  Since the 1990s, Russia has had to deal with a population crisis. The birth rate has been in decline constantly. The Russian government has introduced several measures to increase the population, like expanding paid childcare for low-income families and introducing tax breaks for larger families. The Russian invasion of Ukraine has exacerbated the demographic crisis, with thousands of young men being forced to fight on the border. Alex Kokcharov, a country risk analyst for Eurasia stated that money issues and a tense security situation were compelling families to delay decisions on having children. A report by the Atlantic Council informed that the labour market could shrink as a result of the demographic crisis. The Deputy Prime Minister of Russia, Dmitry Chernyshenko stated that the country could face a shortage of up to 2.4 million workers by 2030. ( Tamsin Paternoster, “Kremlin distressed as Russia’s ‘catastrophic’ birth rate drops to its lowest in quarter century,” Euro News, 10 September 2024)

INTERNATIONAL

Serbia: a ground for proxy war between global powers
On 09 September, Politico published a report that opinionated on an ongoing proxy war between the US and China in Serbia. The US, China and Russia are setting their footprint in Serbia. Serbia acts as a buffer country between the US and Russia. Europe lost its influence over the region after the war with Kosovo was over. After the war between Serbia and Kosovo, the West became distant from Serbia. During the 1990’s, Serbia fought four wars because of the political ambitions of the Serbian leader, Slobodan Milošević. However, in 2000, pro-democratic forces replaced him and turned him to the International Criminal Court. These democratic efforts made by Serbia were not applauded by the West. The West, meanwhile, was preoccupied with the conflicts in the Middle East Serbian ambitions to join the EU and NATO were also not reciprocated well by the West. In 2017, when Aleksandar Vučić came to power in Serbia, he sought better economic and political relations with Russia and China. Before the Russia-Ukraine war, EU and US leaders did not make active efforts to attract Serbia for economic agreements. China signed a free trade agreement with Serbia. However, after the war broke out, Russia’s footprints in the region became a concern for Europe. In 2024, Germany emerged as the largest investor in Serbia and signed a deal on lithium mining, on behalf of Europe. France sold 12 Rafael fighter jets to Serbia in September 2024. Meanwhile, Serbia always said that it wants to join the EU. Politico blames the EU’s lethargy to appease Serbia that it is not an open supporter of Ukraine in the war. Thus, the agreement of Rafael jets with France is more than just a military buy, according to Politico. (Matthew Kaminski, “Will America or China Win the Serbian Proxy War?,” Politico, 10 September 2024)

 

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