Photo : Wolfgang Rattay/Reuters
26 September 2024, Thursday | NIAS Europe Daily Brief #947
By Samruddhi Pathak
THE EU
AI firms fear impact of escalating compliance costs
On 25 September, Deutsche Welle reported on the extensive level of Artificial Intelligence (AI) regulations present in the EU risked stifling innovation in the bloc. Oleg Stavisky, the Chief Executive Officer (CEO) of AI-powered music app Endel stated regulations and bureaucracy would stifle local development in the EU. ‘Big Tech’ firms like Apple and Meta have delayed releasing AI models and features in the EU, over concerns regarding the level of regulations. Cecilia Bonefeld-Dahl, the Director-General of DigitalEurope which represents over 45,000 European technology firms stated the overregulation and rising costs of regulatory compliance were forcing several European firms to leave the market. Alexandru Voica, the Head of Corporate Affairs and Policy at Synthesia, an AI video platform, stated regulations meant European startups could not compete with their US counterparts. Another point mentioned was the lack of sufficient funding for European tech firms. According to Asparuh Koev, the CEO of Bulgarian logistics firm Transmetrics, the EU failed to adopt and create technologies on its own due to limited funding. (Arthur Sullivan, “Europe’s AI bosses sound warning on soaring compliance costs,” Deutsche Welle, 25 September 2024)
EU Africa fund not enough to combat migration fears says an opinion in Deutsche Welle
On 25 September, Deutsche Welle informed the EU's fund for Africa was "spread too thinly" to deal with migration. The European Court of Auditors released a report which stated the EUR five billion Emergency Trust Fund for Africa (EUTF) financed a broad range of actions in the areas of development, humanitarian aid, and security. According to the report, the EUTF had kept broad priorities, and not dealt with the root causes of migration. The report stated the EUTF functioned in an ad-hoc way with different projects such as the renovation of a Roman theatre. The report noted there was no guidance as to which project must be given a pre-eminent position. Another point given in the report was that the number of jobs created and the number of industrial parks and business infrastructures were over-reported. For instance, a project in Ethiopia to increase employment in order to prevent irregular migration succeeded in reducing the unemployment rate in five migration-prone areas by only 0.32 per cent. Niels Keijzer, a Senior Researcher at the German Institute of Development and Sustainability stated some EUTF member states prioritized increasing border security projects and funding. The report also stated the EU lacked formal procedures to follow up to report, record, and follow up on alleged human rights violations in EU projects. (Anchal Vohra, “EU’s Africa fund ‘spread too thinly’ to reduce migration,” Deutsche Welle News, 25 September 2024)
Climate change causes floods across Europe
On 25 September, a report was published by World Weather Attribution which said that rains caused by Storm Boris were the heaviest rains ever recorded in Central Europe. The floods in September claimed 24 lives. The report said that heavy storms like Storm Boris occur once every 100 to 300 years. However, given the fossil fuel induced climate change, such storms might become more frequent. The report emphasised on the urgency of replacing oil and gas with renewable resources. Today, earth temperature has increased by 1.3 degree Celsius from pre-industrial era. If the earth further warms by two degree Celsius, the frequency of such storms will increase by 50 per cent. (“Climate change made Central Europe floods more likely: study,” Deutsche Welle, 25 September 2024)
Europe’s potential role in Israel-Hezbollah conflict
On 25 September, Josep Borrell, the Foreign Affairs chief of the EU, held a press conference on the sidelines of the United Nations General Assembly meeting in New York. He spoke on how Europe could play a vital role in the Israel-Hezbollah conflict. He said, “Civilians in Lebanon are paying an intolerable price.” The EU bloc is focussing on de-escalating the war. Deutsche Welle highlighted the importance of the EU for Israel and its persuading power. The EU is Israel’s largest trading economy. It contributes to 31.9 per cent of Israel’s imports. Critics of Israel’s aggression in Gaza have urged the EU to use its economic leverage and sanction Israel. Deutsche Welle enlists reasons behind the EU’s inactivity towards Israel. The EU bloc is divided on every issue in the Middle East to take a unified decision. (Rosie Bichard, “Can Europe help contain spiraling violence in Lebanon?,” Deutsche Welle, 25 September 2024)
Estonia and Finland to cooperate on Gulf of Finland protection plan
On 23 September, Major General Andrus Merilo, commander of Estonian Defence Forces, said that cooperation between Finland and Estonia is underway on plans to completely block enemy activity in the Gulf of Finland and the Baltic sea. In 2022, Estonia has announced plans to expand its naval forces. It has purchased several naval mines and long-range Blue Spear anti-ship missiles. Merilo said that Baltic countries need to come together and invest more in countering Russia’s Baltic fleet. (“Estonia and Finland establishing Gulf of Finland protection plan,” Baltic News Network, 23 September 2024)
AUSTRIA
General elections offers chance for far-right to return to power
On 25 September, Politico reported on the far-right Freedom Party (FPO) being in favourable position to win the general election in Austria. The FPO narrowly leads opinion polls at 27 per cent, ahead of the People’s Party(OVP) which is polling at 25 per cent. The possibility of the FPO gaining power has caused fear in the EU. This is due to the party’s antagonistic stance towards the bloc, and its friendliness with Russia. Additionally, Austria is a centre for trade due to its position at the centre of Europe. Austria has served as the gateway to the Balkans for Western Europe, and the main north-south corridor for the EU cuts through Austria. The country has also taken in the most refugees per capita in the EU in the past decade. Herbert Kickl, the leader of the FPO had proposed border closures in Austria, alongside the remigration of foreign residents. During his time as Minister for the Interior, Kickl was accused of questioning the legitimacy of the Austrian intelligence services and taking a hard line on migration, renaming asylum registration centres as “Departure Centres.” However, even if it wins the election, the FPO gaining power will depend upon whether other parties like the OVP decide to work with it. The OVP has had coalitions with the FPO in the past, alongside an ideological proximity. However, Alexander Van der Bellen, the President of Austria has the power to reject candidates for chancellor and ministers. Van der Bellen, who is a former leader of the Green party, could reject Kickl and the FPO, on grounds of protecting Austria’s position in the EU. ( Matthew Karnitschnig, “Austrian election offers far right a springboard back to power,” Politico, 25 September 2024)
GERMANY
Green party leaders resign; Escalating German government crisis
On 26 September, Deutsche Welle reported that the leaders of the Greens party in Germany, Ricarda Lang and Omid Nouripour had resigned from their positions. The resignations came after the Greens suffered humiliating defeats in the regional elections in three east German states. The party even failed to cross the minimum threshold of five per cent of the vote required for representation in the state parliament in two of the states. Lang stated Germany was at a crossroads between those who favoured a position of climate neutrality protecting prosperity and those against that. The Greens party has been in a steady decline, losing power in three eastern states where they formed the government in 2019. Additionally, in the elections in June to the European Parliament, the Greens were reduced to just 11.9 per cent of the vote from 20.5 per cent five years ago. Emanuel Richter, a political scientist stated the agenda of the Greens such as the heating law and transition away from fossil fuels to renewable energies had contributed to its decline. Additionally, Richter stated the Greens needed to improve their ways of communication, in order to change the perception that they were rigidly implementing their ideological policies. Olaf Scholz, the Chancellor of Germany stated the resignations would have no impact upon the German coalition government. (Marcel Furstenau, “Germany: Government crisis deepens as Green leaders resign,” Deutsche Welle, 26 September 2024)
Authorities issue warning for flood in German-Polish border
On 25 September, authorities in Brandenburg issued the highest flood warnings, on four-scale measurement, for areas bordering Poland. The Oder River continues to grow in eastern Germany. The German Polish border uses the Oder River as the demarcation line. Dietmar Woidke, the state premier of Brandenburg, will be visiting Eisenhüttenstadt and Ratzdorf, two worst hit areas in Brandenburg . In Ratzdorf, a border village, many roads and houses are completely submerged in water. Firefighters are preparing to evacuate the village. Similarly in Eisenhüttenstadt, some parts are flooded. The authorities and citizens are reinforcing sandbags to manage the floods. However, the highest flood warning in Germany does not mean a state of emergency or “catastrophe.” (“Germany: Flood warnings on Oder River in eastern Brandenburg,” Deutsche Welle, 25 September 2024)
HUNGARY
Residents of Budapest deals with aftermath of Storm Boris
On 24 September, the World Health Organisation published a report that discusses the plight of the Hungarian public. It has personal stories of residents of Budapest after the water levels in the city have come down. The report highlights the struggle of families that dwell near the banks of the Danube river. The families are still living in distress of floods, property damages and an uncertain future. There are several dwellers in Budapest who live in houseboats which have been destroyed due to floods. The report says that the floods are a reminder for the European government to work on a joint action plan to fight climate change. (“Flooded but not defeated: the residents of Budapest navigate catastrophic flooding,” World Health Organisation, 24 September 2024)
NORWAY
International Development Minister determined to sign Global Plastics Treaty
On 25 September, Anne Beathe Tvinnereim, the International Development Minister of Norway, said in an interview that Norway will not allow countries to hinder the drafting of the global plastics treaty. The treaty is planned to be signed in November in Busan, South Korea. The aim of the treaty is to contain plastic pollution. However, the progress of the treaty has been slowed down due to disagreements between countries. According to the Organisation for Economic Cooperation and Development, plastic demand has almost doubled in the past two decades and will be tripled by 2060. Meanwhile, oil-rich countries like Iran, Kingdom of Saudi Arabia and the Russian Federation are already facing challenges due to the introduction of EVs. These countries are counting on plastic production to keep their oil demand going. (Leonie Carter, “Norway: Oil producers cannot be allowed to derail plastic treaty,” Politico, 25 September 2024)
SWITZERLAND
Swiss citizens reject referendum to protect natural habitats
On 22 September, a referendum was organised by the Swiss Federation on more investments to be made in protection of natural habitats and biodiversity. The voters have rejected the referendum with 60 per cent votes going against the implementation. The Swiss Green Party has expressed its disappointment with the results. The groups against the Biodiversity bill included farming lobbies. In April, Europe’s highest court on human rights also said that the Swiss Federation is not doing enough to protect its biodiversity. According to the public, implementation of the new referendum is too costly. Around 600 million Swiss francs are already spent every year on biodiversity. The referendum would increase the expenditure further by 400 million Swiss francs. (“Swiss voters reject biodiversity proposal in blow to conservation campaigners,” The Guardian, 22 september 2024)
THE CZECH REPUBLIC
Central Bank reduces interest rates for seventh time in a row
On 25 September, in response to slowing inflation, the Czech central bank cut its interest rates for the seventh time consecutively. Currently, the interest rate is 4.25 per cent after the cuts were announced. The central bank announced the first reduction in interest rates in December 2023, after June 2022. Even the European Central Bank reduced its interest rates in September to 3.5 per cent. The average monthly wages in the Czech Republic increased by 3.9 per cent in the Q2 of 2024 while the growth rate of the national economy was 0.6 per cent. The Central Bank has predicted a growth of 1.2 per cent for 2024. (“Czech central bank cuts rates with more reductions expected,” Euronews, 25 September 2024)
THE NETHERLANDS
Controversy arises over Stolpersteins
On 23 September, Euronews reported on the controversy to have erupted over the concrete cubes known as Stolpersteins bearing the names of Holocaust victims such as Jews, Romani, and homosexuals. These cubes are widely found on the streets of over 1,200 European cities. However, the decision of the Netherlands to place Stolpersteins for 45 Dutch political prisoners, including activists and communists ran into controversy. This was because the proclaimed mandate to place Stolpersteins was only for Jewish, Roma, and Sinti Holocaust victims, and different victims must have a different mark of remembrance. The recent controversy also shed light on the historical role of the Dutch state and security services in collaborating with the Nazi authorities. Another point of controversy was that political victims must be held to the same level as Jewish victims. Stolpersteins had been criticized in the past, as well. Local Jewish communities in Germany and Poland rejected the plaques on grounds of their placement on the street being undignified. The City of Paris rejected Stolpersteins, because they sent out an unsuitable image for France where 75 per cent of Jews survived. (David Mouriquand, “What is a Stolperstein and why is there controversy in the Netherlands?,” Euro News, 23 September 2024)
THE UK
Government deploys 700 troops to evacuate citizens
On 25 September, Keir Starmer, the Prime Minister of the UK, urged British citizens to leave Lebanon immediately. Israel has been bombarding the southern part of Lebanon. The Royal Air Force helicopters and aircrafts are on standby to provide. The UK has initiated the first phase of the evacuation plan to avoid the havoc that was created in Afghanistan in 2021. During an interview in New York, he said: “We need de-escalation, we need a ceasefire, we need to pull back from the brink.” 10,000 British citizens are estimated to be in Lebanon. The UK has a significant military presence in Cyprus with RAF Akrotiri and Royal Navy ships of RFA Mounts Bay and HMS Duncan. The UK Ministry of Defence has also sent 700 military troops to Cyprus to prepare for possible evacuation. American citizens also have been advised to leave Lebanon. The Israeli attack in Lebanon reportedly killed almost 570 people. (Chris Mason, “Leave Lebanon now, Starmer tells Britons,” BBC, 25 September 2024; Rowena Mason, “UK moves 700 troops to Cyprus ready to evacuate Britons from Lebanon,” The Guardian, 25 September 2024)
INTERNATIONAL
China plans to rally support for its Ukraine peace plan
On 25 September, Politico reported on the Government of the People’s Republic of China plan to work with the United Nations (UN) to enlist support for an agreement to end the Ukraine war. According to a document by the Government of Ukraine, the Chinese government is attempting to persuade diplomats, especially from Latin America, Asia and Africa to support peace talks “taking into account security interests”. The document stated the Chinese government’s objective is to prevent Russia from losing. A joint six-point peace plan released by China and the Government of Brazil earlier had urged no escalation of fighting on the battlefield or provocation by any party. However, the Ukrainian government believes this would allow Russia to continue its hostilities on Ukrainian territory. A spokesperson for the US State Department stated the China-Brazil peace plan did not protect Ukrainian sovereignty and ignored Russian aggression. Antony Blinken, the US Secretary of State stated any prospective peace plan required support from Ukraine. However, Ukraine worries the Chinese peace plan could gain support at the UN. According to the Ukrainian government document, the Chinese government could promote global support for its plan if a substantial number of countries support its plan in the UN. ( Phelim Kine, Nahal Toosi, Suzanne Lynch, and Nick Taylor-Vaisey, “How China plans to get more backers for its Ukraine peace plan at the UN,” Politico, 25 September 2024)