Photo : David W Cerny/Reuters
20 September 2024, Friday | NIAS Europe Daily Brief #941
By Samruddhi Pathak
THE EU
Storm Boris causes havoc in northern Italy
On 19 September, police in the northern Italian region of Emilia-Romagna reported that at least two persons are missing and more than 1,000 people have been evacuated in the region. The lack of preparedness of Italian authorities have raised questions on the country’s infrastructure to deal with climate change. Even in May 2023, the Emilia-Romagna region reported 17 persons killed due to heavy rains. Italy is among Europe’s climate risk spots. In 2024, it experienced pangs of unprecedented heatwaves, drought, wildfires, storms and severe flooding. Wroclaw in Poland was the worst hit city by the Storm. The European Commission has announced a relief fund of EUR 10 billion for the victims of the floods. At least 24 people have died so far due to floods in Europe. (Angela Giuffrida and Jon Henley, “Two missing and 1,000 evacuated as Storm Boris devastates northern Italy,” The Guardian, 19 September 2024)
Turkey is diversifying its options after halted EU membership
On 19 September, Hakan Fidan, the Foreign Minister of Turkey, said, during his speech, “Turkey acted on good intentions with regards to its ambitions for full EU membership.” Turkey applied for EU membership in 1987 and the negotiations have been stalled. In fact, Turkey signed the Ankara Agreement with the European Economic Community in 1963, showing interest in being associated with it. He defended Turkey’s move to join Russian-led BRICS. The move is seen with cynicism in the West. He said that every country needs political and economic alliances. The BRICS alliance was formed with an aim to counterbalance the eurocentric approach in global economics. Recently, it expanded to include Iran, Egypt, Ethiopia and the UAE. Fidan said that Turkey is also interested in strengthening ties with ASEAN. Turkey’s membership procedure for the EU was halted due to concerns over human rights, democratic governance and the unresolved dispute with Cyprus. (Emre Basaran, “Turkey wouldn't be interested in joining BRICS if it was an EU member state, foreign minister says,” Euronews, 19 September 2024)
EV sales in the EU drastically fall
On 19 September, the European Automobile Manufacturers Association released a report that said that car sales in the EU have fallen by 18.3 per cent in 2024. The four biggest markets for cars in Europe have recorded a steep downfall in sales. Car sales in Germany fell by 27.8 per cent, in France by 24.3 per cent, in Italy by 13.4 per cent and in Spain by 6.5 per cent. Even in 2023, car sales had fallen by 43.9 per cent. The contraction in sales is also increasing concerns over sustainability and zero emissions targets that the EU had set. The spokesperson of the European Automobile Manufacturers Association said, “The European auto industry supports the Paris Agreement and the EU's 2050 transport decarbonisation targets and has invested billions in electrification.” The Association represents 15 automobile makers. (Doloresz Katanich, “EU car industry calls for urgent action as EV new car sales tumble,” Euronews, 19 September 2024)
EU and China to reconsider tariffs on EVs
On 19 September, the European Commission and the Government of People’s Republic of China held high profile talks to resolve the dispute on EVs that has arisen due to imposition of harsh tariffs on Chinese EVs. The EU has accused PRC of providing subsidies to their EV makers which is making the prices artificially lower. Meanwhile, the Chinese Ministry of Commerce has said that it is willing to craft out a solution through negotiations and talks. Wang Yi, the foreign minister of PRC, also organised a roundtable discussion with EVs makers in the EU to tone down the steep rise in tariffs. However, after the discussions, there was a mutual commitment to re-evaluating the option of price undertakings. Euronews also reported on the lobbying efforts that the PRC is making to make some members vote against the imposed tariffs. A majority of 15 countries that represent at least 65 per cent of the European parliament need to oppose the duties to prevent them from being implemented. Hungary is a potential opposer of the tariffs since it is attempting to attract Chinese investments. PRC is also trying to lobby Spain since Pedro Sanchez, the Prime Minister of Spain, asked the EU to reconsider the imposed tariffs in a statement. Next week the EU Parliament will be voting on whether to increase the tariffs imposed on Chinese made EVs to 50 per cent. This is combined with falling demand for EVs in Europe. This is taking a toll on the European EV makers. Moreover, companies like Mercedes Benz are also facing deterioration in their sales in China. The Chinese Commerce Ministry said that if such harsh tariffs are imposed, the move will be met by similar tariffs from China as well. (Jorge Liboreiro, “EU and China fail to deliver breakthrough on electric cars dispute, but talks will intensify,” Euronews, 19 September 2024; Finbarr Bermingham, “EU and China trade negotiators fail to strike deal on electric vehicle imports,” South China Morning Post, 20 September 2024)
GEORGIA
Parliament passes anti-LGBTQ+ law
On 19 September, the Georgian parliament passed a draft law on "Family Values and Protection of Minors" that explicitly discriminates against LGBTQ+ people. Mamuka Mdinaradze, chairman of the ruling Georgian Dream party said that the law is required for countering the LGBTQ+ propaganda. Passing the law is a step further from EU laws. The draft bill covers issues around marriages, adoption and medical procedures. The Georgian government has designated 17 May as the International Day Against Homophobia, Biphobia and Transphobia and as the day of "Purity of the Family and Respect for Parents." (Sertac Aktan and Tamta Dzvelaia, “Georgia passes Russian-style anti-LGBTQ+ law ahead of crucial election,” Euronews, 19 September 2024)
SWITZERLAND
Exodus of Russian assets from Europe to the Middle East due to sanctions
On 18 September, Swissinfo reported an exponential increase in Russian deposits in UAE banks. The UAE recorded the highest annual growth in foreign deposits in 2024. This has led to a steep drop in Russian deposits in Swiss banks. Swiss bankers have argued that Switzerland should in future actively seek to influence global sanctions packages in a way that suits its domestic agenda. Grégoire Bordier, president of the Association of Swiss Private Banks said that Switzerland and Swiss Banks were not a part of the discussions between the US and the EU when the sanctions were being decided. Swiss Banks have marketed themselves as a safe destination for depositing wealth, especially the elite class, due to the law of neutrality followed by Switzerland. However, the government is emphasising that imposition of sanctions does not compromise Switzerland's law of neutrality. (Matthew Allen, “The impact of Russia sanctions on Swiss banks,” Swissinfo, 18 September 2024)