Photo : The Berlin Process Summit 2024
11 October 2024, Friday | NIAS Europe Daily Brief #958
THE EU
Deutsche Welle analyses failures of Berlin Process over EU enlargement
On 10 October, Deutsche Welle reported on the lethargic progress of the Berlin Process. The Berlin Process was launched in 2014 by Angela Merkel, former chancellor of the Federation of Germany. Albania, Bosnia, Kosovo, Montenegro, North Macedonia and Serbia signed three agreements in November 2022 on recognition of ID cards, university degrees and some professional qualifications. However, the implementation has been halted since then. The Berlin Process aimed to bring Balkan nations closer to the EU. The EU has also paused its enlargement policy since then. This year, the Balkan nations signed the Central European Free Trade Agreement (CEFTA), an agreement to create a common market among the countries to bring them closer to the EU through single market cooperation mechanisms. (Anila, Shuka, “The Berlin Process: 10 years of hope and disillusionment,” Deutsche Welle, 11 October 2024)
Parliament wary of cooperation between right and far-right parties
On 11 October, Daily Sabah published an article on rising cooperation between right and far-right parties in the EU parliament. The centre-left parties perceive this as a threat. Recently, the parties united in the parliament to recognise Venezuela's opposition candidate Edmundo Gonzalez Urrutia as president following the country's disputed election. The cooperation, therefore, is apparent. Few parliamentarians are also calling the cooperation an "institutional majority." (“EU parliament establishment wary of growing far-right cooperation,” Daily Sabah, 11 October 2024)
FINLAND
Hate crime rises
On 10 0ctober, a report published by Police University College suggested a rise in hate crime against immigrants. A total 1,606 hate crimes were reported in 2023, a rise of 29 per cent. Out of them, 1,090 were motivated by nationality and ethnicity. Amongst the victims 60 per cent were men and 40 per cent were women. This suggests that the report did not account for crime against non-binary people. The hate crimes have nearly doubled since 2020. Last year, Somali nationals living in Finland were the minority group most frequently targeted by suspected hate crimes relative to their population size. (“Somalis and people with disabilities make up large share of hate crime victims,” yle, 11 October 2024)
FRANCE
Government promises to not hit middle class with tax hikes
On 10 October, Antoine Armand and Laurent Saint-Martin, budget ministers of France, assured French citizens that the new taxes introduced will not affect the middle class. Saint-Martin told the media, “We’re not going to put public finances back on track by destroying growth.” He said that the hikes will only affect around 65,000 households. Meanwhile, the government has also announced spending cuts of EUR 3.8 million on healthcare. France’s High Council for Public Finances, an independent watchdog, said that the new hikes are overly optimistic. The two year corporate tax hike will affect 440 corporate offices. Tax hikes are also being introduced on share buybacks. (Georgio Liali, “France pledges to spare middle class after unveiling draconian budget cuts,” Politico, 10 October 2024)
POLAND
New regulations over visa approval
On 10 October, the government announced that it will be tightening the visa approval process after the cash-for-visa scandal during the previous government. There were allegations that Polish consulates sold temporary work visas to migrants for thousands of US dollars. The estimated number is around 2,50,000 since 2021. Government officials said that even student visas will be scrutinised. Visa fees have also been hiked to tackle irregularities in visa applications. The Supreme Audit Office said that a total of 46 kinds of irregularities were identified in five different regions. (Monika Sciclowska, “Poland tightens visa rules as probe confirms previous government’s cash-for-visas scandal,” The Associated Press, 11 October 2024)
PORTUGAL
Government to control brain drain by eradicating taxes temporarily
On 10 October, the government of Portugal introduced a new scheme after the right-wing government held discussions with left-wing opposition. Under the new scheme, youngsters earning up to EUR 28,000 per annum will have a tax exemption of 100 per cent during the first year of their employment. The tax exemption will be decreased to 75 per cent from the second to fourth year of employment then 50 per cent from fifth to seventh year and 25 per cent until the tenth year of employment. According to the government, it will stop 3,50,000 to 4,00,000 youngsters from settling outside the country. The government estimated that the scheme will cost around EUR 645 million in 2025. The scheme has been introduced to stop the outflow of the youth of the country. According to the Emigration Observatory, 30 per cent of the population aged between 15 and 39 have left the country due to low wages. (Sam Jones, “Portugal proposes decade of tax breaks for young people to stem brain drain,” The Guardian, 11 October 2024)
THE NETHERLANDS
Government plans to strengthen domestic chip industry
On 10 October, Dirk Beljaart, the Economic Minister of the Netherlands, announced that he is willing to form a coalition within the EU to remain competitive against the US and China in the semiconductor industry. Beljaart held a meeting with Adolfo Urso, the economic minister of Italy, to discuss cooperation for bringing investment in the chip industry. Although the Netherlands is not a member of the G7, it has been invited to discuss technology policy. Thierry Breton, former EU industry chief, is called the architect of EU Chips Act. The act was introduced in April 2023 proposed a subsidy plan of EUR 43 billion and aims to boost the EU’s share in chip industry to 20 per cent globally by 2030. Beljaart also met Gina Raimondo, the US Secretary for Commerce, to discuss cooperation. Meanwhile, the US Secretary’s office is expected to introduce new restrictions on China’s semiconductor equipment. (“Dutch economy minister pushes for European chip industry coalitio,” Reuters, 11 October 2024)
THE UK
Rise in anti-Semitic incidents by 25 per cent
On 10 October, the government of the UK released an official data suggesting a rise of 25 per cent in religious hate-related crime in the UK. Most incidents were primarily driven by anti-Semitic sentiments. There has been a drastic increase since the Israel-Hamas war began in October 2023. The Interior Ministry said that the incidents increased to 10,484 from 8,370 in the previous year. Meanwhile, crimes against Jews have doubled and those against Muslims have increased by 12 per cent. Nonetheless, the overall number of hate crimes has decreased by five per cent and most of them are racially motivated. (“Religious hate crimes up 25% in England and Wales, driven by anti-Jewish offences,” Reuters, 11 October 2024)