Photo : JOHN THYS / AFP
10 October 2024, Thursday | NIAS Europe Daily Brief #957
By Samruddhi Pathak
THE EU
ESA launches Hera spacecraft towards an asteroid
On 09 October, the European Space Agency launched Hera spacecraft to investigate a cosmic crash. The spacecraft was launched by SpaceX from Cape Canaveral. The mission will cost the ESA around USD 400 million. Hera is the size of a small car and is carrying scientific equipment. It will swing around Mars in 2025 for a gravity boost. Its destination is Dimorphous where it is estimated to reach by 2026. The asteroid will be 120 million miles from Earth by then. It is controlled by a flight team based in Germany. Hera will survey the asteroid for six months. Two cubestats will pop out from Hera to carry out drone-like inspections. The Cubesats will attempt to land on the moonlet once their survey is complete. (“Europe's Hera spacecraft blasts off to investigate asteroid already rammed by NASA,” France24, 09 October 2024)
Hungarian PM Orban delivers speech in the EU parliament
On 09 October, Viktor Orban, the Prime Minister of Hungary, delivered his speech in the EU parliament. The speech highlighted Hungarian interests in the EU. Members of the European Parliament from left-wing parties boycotted his speech. Ale Daniel Freund, MEP from the Greens Party in Germany said, “Orbán has turned Hungary into the most corrupt country in the European Union.” Several MEPs also criticised Hungary’s migration policy. Meanwhile, he was praised by right-wing parties like Patriots for Europe and other right-wing groups like European Conservatives and Reformists and Europe of Sovereign Nations. Jorge Buxadé Villalba, MEP from the Spanish party Vox, called Orbán's speech "a breath of fresh air." (Vincenzo Genovese, “Viktor Orbán splits the European Parliament with presidential speech,” Euronews, 09 October 2024)
FRANCE
PM Barnier to unveil 2025 Budget in the National Assembly
On 09 October, Michael Barnier, the Prime Minister of France, will unveil the Budget for 2025 in the National Assembly. The Prime Minister has proposed EUR 40 billion of spending cuts and EUR 20 billion in tax hikes. Barnier has called France’s fiscal deficit “colossal debt.” France was put under “excessive deficit procedure” in 2023 by the EU but the deficit has only increased since then. Thus, the new budget is expected to have unpopular taxes and cuts. The left-wing New Popular Front coalition is supporting Barnier’s tax cuts, which were implemented by Emmanuel Macron, the President of France. Meanwhile, lawmakers from Macron’s right-centre party will oppose the budget since the policies will kill growth, according to them. They will push the government to drop tax hikes. There is still confusion on the situation that might arise if Macron’s party rejects that budget. However, the previous two budgets were passed in the Assembly without an absolute majority. A controversial constitutional mechanism allows the government to bypass a vote unless a no-confidence motion is passed within 48 hours. (Victor Ghoury-Laffont and Clea Caulcutt, “Barnier’s first big test: A budget to cut France’s ‘colossal debt’,” Politico, 09 October 2024)
GERMANY
Economy to further contract in 2025
On 09 October, Robert Habeck, the Economy Minister of the Federation of Germany, announced that the country’s GDP is expected to shrink for the second consecutive year by 0.2 per cent. Earlier, a growth rate of 0.3 per cent was predicted. The economic slowdown has been caused by multiple announcements like Volkswagen’s decision to lay off several workers and closing down some domestic plants. Meanwhile, even Intel, a chip making company, announced suspension of its plans to build a plant worth EUR 30 billion. Due to the high fiscal deficit, the government did not announce any economic stimulus. During his announcement, Habeck said that disputes within the federal government and within the EU were deteriorating the situation further. Habeck said that the growth is expected to resume from 2025 with one per cent and in 2026 with 1.6 per cent. (Nette Nostlinger, “Germany’s economy goes from bad to worse,” Politico, 09 October 2024)
SPAIN
PM Sanchez announces plans to integrate migrants in to labour market
On 09 October, Pedro Sanchez, the Prime Minister of Spain, announced plans to ease the assimilation and settlements of migrants in Spain and promote migration in an effective way. The announcement comes in sharp contrast with other European countries. Sanchez justified his stance as Spain needs migration since its birth rate is amongst the lowest in the EU and migration is a realistic means to grow the economy and sustain the welfare state. The plan aims to integrate migrants into the labour market and to reduce red tape for residency applications. In May 2024, few reports called Spain the fastest growing economy in the EU. He urged the citizens of his country to reject stereotypes and hoaxes about migration. (Ashifa Kassam and Sam Jones, “Pedro Sánchez unveils plans to help migrants settle in Spain,” The Guardian, 09 October 2024)
THE UK
Employee rights bill to be pass in the Parliament
On 09 October, Louise Haigh, Transport Secretary of the UK, said that a new bill will be tabled by the Labour party this week on amendments in the employment rights bill to address some loopholes exploited by employers. The provisions are being introduced in reference to the layoffs announced by P&O Ferries company in 2022. The company had fired more than 800 crew members without any prior notice. Under the new regulations, ferry operators based outside the UK will have to pay the national minimum wage of GBR 11.44 per hour from 01 December under the Seafarers’ Wages Act. P&O Ferries and Irish Ferries offer competitive market prices because they hire workers on low wages. The new amendments will apply to ferry operators that dock ships at least 120 times in a year on British ports, irrespective of the nationality of the ferry operator. If an operator fails to provide minimum wage, they will have to pay a surcharge every time they dock on a British port. Most cargo and cruise ships will not be affected by the new laws because they spend more time in international waters. (Gwyn Tophan, “New UK laws to stop repeat of P&O mass sackings scandal go before parliament,” The Guardian, 09 October 2024)
Government to build renewable energy storage
On 10 October, the Labour government launched a new scheme to attract investments in renewable energy storage infrastructure. This will help in creating backup in renewable energy facilities. The scheme aims to boost investors’ confidence and create new jobs. The government seeks building infrastructure for low duration energy storage (LDES) facilities. Currently, the government has facilities to store up to 2.8 GW. Other storage facility technologies include liquid air energy storage, compressed air energy storage and flow batteries, which are currently in development. The report said that 20GW of LDES could save the electricity system £24 billion between 2025 and 2050. This will reduce household energy bills and dependence on natural gas. The National Electricity System Operator has estimated that 11.5 to 15.3 GW of LDES will be required by 2050 to achieve net zero emissions. (“New scheme to attract investment in renewable energy storage,” Government of the UK, 09 October 2024)
Foreign Secretary Lammy to visit China for win-win cooperation
On 09 October, Reuters published an exclusive report that David Lammy, the Foreign Secretary of the UK, will visit China in the coming week. The government is looking to rebuild its ties with China and resume investment. Lammy will be meeting Chinese officials and British businessmen in Shanghai. The Chinese foreign ministry has said that it seeks win-win cooperation with the UK. Meanwhile, there is a case of espionage being held against two British nationals in China. China is also looking forward to building a new embassy in London. The two countries also hold historical baggage over Hong Kong. More than 180,000 people have moved to Britain from Hong Kong under a special visa programme set up after there was unrest in Hong Kong after China introduced new amendments which compromised Hong Kong’s autonomy. (Jeo Cash and Laurie Chen, “British Foreign Secretary Lammy to visit China in bid to reset ties, sources say,” Reuters, 09 October 2024)