Photo : Reuters
30 October 2024, Wednesday | NIAS Europe Daily Brief #973
By Advik S Mohan
FINLAND
President Stubb aims for closer cooperation with China during his visit
On 29 October, the South China Morning Post reported on the visit of Alexander Stubb, Finland’s President to China. Stubb along with Xi Jinping, the President of China agreed to forge closer cooperation on areas such as green transformation, information technology, the digital economy and artificial intelligence, new energy and other emerging industries. Xi also promised to expand “humanistic exchanges,” including visa-free entry to China for Finnish nationals to promote “people-to-people” exchanges. In addition, Stubb urged for peace in Ukraine and condemned Russia for “violating international law.” They also agreed to collaborate on climate change, biodiversity and global sustainable development. Stubb is the first Finnish leader to visit China in five years. ("China’s Xi seeks closer ties with Finland on green energy, peace plan for Ukraine,” South China Morning Post¸ 29 October 2024)
LITHUANIA
Social Democrats aim to improve security after favourable election results
On 29 October, an article in Deutsche Welle News informed the new Lithuanian government to be headed by the Social Democrats party or LSDP would prioritize security. Teodoras Zukas, a political scientist informed that support for Ukraine, attention to human rights violations in authoritarian countries, and higher levels of spending on defence needs were likely to remain integral to the foreign policy of Lithuania. Andzej Puksto, a political science professor at Vytautas Magnus University informed the new government might disagree with the frequency and intensity of its official contacts with the Russian opposition, due to its failure to influence political outcomes in Russia. The government might also take a tougher stance towards Russian emigration to Lithuania, unlike the previous government which provided shelter, residence permits and protection to Russians opposed to the government of Vladimir Putin. Puksto also stated the new government might normalize ties with China, which declined under the previous government. However, he also stated the new government would not cut ties with Taiwan. While the established parties still hold power in Lithuania, the populist Nemunas Dawn party is likely to pose a significant challenge to their stronghold. (Konstantin Eggert, “Lithuania’s Social Democrats look to bolster security,” Deutsche Welle, 29 October 2024)
GEORGIA
US President Biden criticises Georgian election conduct
On 30 October, Politico reported on Joe Biden, the President of the United States had criticism on the conduct of the recent parliamentary elections in Georgia. Biden stated that the elections in Georgia were not described as free and fair by domestic and international observers. He urged the Government of Georgia to launch a transparent investigation into possible election violations. He also informed that the government must begin an inclusive dialogue with all political forces in Georgia about restoring election integrity. Additionally, Biden stated the Georgian government must repeal the controversial foreign agents law. (Dato Parulava, “Biden deeply alarmed by democratic backsliding in Georgia after election outcry,” Politico, 30 October 2024)
ITALY
Confidential data of politicians breached; Opposition demand inquiry
On 29 October, an article in Politico informed that Nunzio Samuele Calamucci, an IT consultant was accused by Italian prosecutors of breaching a national security database. The prosecutors stated that Calamucci led a team of young software engineers which created and maintained databases on Italian citizens, as part of a remote team for the Ministry of the Interior of Italy. However, the group later downloaded private data belonging to thousands of Italians, including Sergio Mattarella, the President of Italy, and Matteo Renzi, the former Prime Minister of Italy. The breach was led by Equalize, a private investigative company, which allegedly used a computer virus to control government servers remotely and through moles. Suspicious financial activity, private bank transactions, and police investigations were among the information found in the databases. According to reports, the data was sold to clients or used for the blackmail of entrepreneurs and politicians. Opposition parties demanded a parliamentary inquiry into the case, and an explanation from Giorgia Meloni, the Prime Minister of Italy. The Italian data protection authority also informed it would launch a taskforce to deal with the security of national databases. (Hannah Roberts and Antoaneta Roussi, ”Massive hack-for-hire scandal rocks Italian political elites,” Politico, 29 October 2024)
THE UK
Chancellor promises increase in taxes and employer insurance and inheritance tax in the latest budget
On 30 October, the BBC informed the upcoming UK Government Budget was set to define the political landscape in the coming years. Rachel Reeves, the Chancellor of the Exchequer promised substantial increases in taxes, including an increase in employer National Insurance and inheritance taxes. The UK Government also has the ability to borrow more, after a change in the debt rules. Additionally, the government also plans to increase the minimum wage. Investments in the rebuilding of schools and buying equipment for the National Health Service are other priorities in the budget. Rishi Sunak, the leader of the Conservative Party stated that the increase in National Insurance tax would hurt the working class. While Reeves stated the Budget is required to meet the economic challenges of the UK, its impact remains to be seen. (Chris Reeves, “Reeves’ big Budget will set agenda for years to come,” BBC News, 30 October 2024)
Chancellor announces new funding for health service to ease hospital care backlog
On 29 October, the BBC informed the UK Government had announced GBP 1.57 billion in funding for the National Health Service (NHS). The funding is to be used for the purchase of new surgical hubs, scanners, and radiotherapy machines. The NHS has been facing several challenges, with a hospital care backlog of 7.64 million. Additionally, the NHS iis falling short of its targets for cancer, emergency, and hospital treatment. The government plans to increase the number of NHS hospital appointments and procedures in England by 40,000 per week. Wes Streeting, the Secretary of State for Health and Social Care of the United Kingdom stated the Budget funding would help reverse the NHS decline. However, Streeting admitted it would take time to completely resolve the issues faced by the NHS. Rachel Reeves, the UK Chancellor of the Exchequer stated the Budget would provide resources required to meet the challenges. (Hugh Pym and Philippa Roxby, “Chancellor sets out new funding for extra NHS appointments,” BBC, 29 October 2024)
SWEDEN
Data shows GDP decline of 0.1 per cent
On 29 October, Reuters reported on data from Statistics Sweden, the statistical agency of Sweden showed the Swedish economy was in a recession. According to the data, the Gross Domestic Product (GDP) of Sweden had contracted for two consecutive quarters. GDP in the third quarter declined by 0.1 per cent, compared to the previous quarter. Statistics Sweden informed that the GDP decline in September along with weak development in August contributed to overall weak growth. Additionally, the Swedish central bank informed the Swedish economy was stagnant, and it expected a policy rate cut. (“Swedish economy in recession, preliminary data shows,” Reuters, 29 October 2024)
REGIONAL
EU imposes duties on Chinese car manufacturers benefitting from subsidies
On 29 October, Politico reported that the EU was going ahead with plans to impose duties on unfairly subsidized Chinese car manufacturers. According to the EU, manufacturers of Electric Vehicles(EVs) like BYD and SAIC received benefits like cash and discounts from the Government of the People’s Republic of China. The European Commission imposed duties on Chinese car manufacturers, based on the levels of subsidies they benefitted from and how cooperative they were with the Commission investigation. However, the duties are opposed by the car industry in countries like Germany, which fear a loss from the trade war. Additionally, Europe lagged behind China in terms of EVs and needed to reduce business costs across the EU electric vehicle value chain to compete. The Chinese government has also rejected the EU investigation findings and stated that no subsidies were offered. Despite these challenges, the EU investigation is significant for it shows that Europe is concerned with its industrial and economic future. (Koen Verhelst, Jordyn Dahl and Camille Gijs, “EU-China staring match on EV duties will continue-even after they take effect,” Politico, 29 October 2024)
European mountain stream temperatures witness rise
On 29 October, swissinfo.ch reported on a study by the Institute for Snow and Avalanche Research (SLF) showed that water temperatures in European mountain streams were increasing. The SLF stated that the warmer air caused by climate change was responsible for the warmer water bodies. Amber van Hamel, a hydrologist for the SLF informed that less snowfall in winter due to climate change caused less cool meltwater to reach the rivers in the spring and summer. Additionally, higher water temperatures lead to reductions in water quality, causing problems for the supply of clean drinking water. The SLF report also informed that ecological tipping points were likely as a result of the extreme water temperatures. For instance, the mortality rate for trout fish increased at temperatures above 23 degrees Celsius. (“Water temperatures are rising in European mountain streams,” swissinfo.ch, 29 October 2024)