Photo : AP Photo/Christophe Ena
19 November 2024, Tuesday | NIAS Europe Daily Brief #989
By Padmashree Anandhan and Neha Tresa George
FRANCE
Farmers protest against EU-Mercosur FTA
On 18 November, farmers across France protested against the EU-Mercosur trade deal. According to them, the deal risks their livelihoods by allowing cheaper South American agricultural produce under lesser environmental limits. They fear unfair competition and burdening regulations which could impact their income. Arnaud Rousseau, head of France's main farmers' union said: “We are against the conclusion of an unbalanced treaty likely to destroy part of the French agricultural sector." The protests are expected to continue till 19 November in front of government buildings extending till mid-December. The union calls it a “agricultural revolt” in southwestern France. France’s President Emmanuel Macron’s stance has also echoed the same against the deal as it will replace the home-grown products with Brazil and Argentina’s beef, chicken, sugar and maize affecting the farmer income. The debate over pesticides, hormones and land use regulation have long been protested by farmers in Europe. (“French farmers protest EU-Mercosur trade deal,” Deutshe Welle, 18 November 2024)
GERMANY
Chancellor looks for opportunity to seal FTA deal in G20 summit with Mercosur group
On 18 November, Deutsche Welle reported on Germany’s Chancellor Olaf Scholz agenda in the G20 summit, Brazil. According to the report, there is more possibility for Scholz to strike a deal with Mercosur states which includes Argentina, Bolivia, Brazil, Paraguay and Uruguay. The negotiations for a free-trade agreement between the EU and Mercosur states have been ongoing for 25 years yet has been unsuccessful. According to Foreign Policy head of the German Chamber of Commerce and Industry Volker Treier: “This free-trade agreement would be liberating for the German economy. It's almost impossible to imagine a more difficult situation geopolitically — we have to use this opportunity.” However the larger reasons for the EU stressing on signing the agreement at present is due to three reasons. First as a proactive step against the upcoming US protectionism. Second, the raw materials of Latin America has been lucrative for EU’s green transition plan and third to prevent China’s expansion in the region. The deal would help European businesses from paying EUR four billion as export tariffs and this especially benefits Germany’s car, electronics and mechanised goods export which is subject to 25 to 30 per cent tariff. Opponents to this deal have been majorly farmers and environmentalist who fear unfair competition and impact on small-mid sized firms. (“At G20 summit, Germany looking for trade allies,” Deutsche Welle, 18 November 2024)
Faces a shortfall of childcare workers; a bilingual day care centre offers a solution
On 17 November, Deutsche Welle reported on the kindergarten crisis faced by Germany. According to a survey by the Paritätischer Gesamtverband, an association of organizations dedicated to promoting parity, the shortfall of childcare staff in Germany is at 125,000. Currently, there is a shortage of 430,000 daycare spots in Germany. The condition was reported to be exacerbating in western Germany with North Rhine-Westphalia forced to reduce 3,600 times of services in September 2024. The crisis is also affecting Germany’s economy with EUR 23 billion in damage. Against the backdrop of this crisis, a nursery school teacher from the northern German city of Rostock Katja Ross formed the petition Every Child Counts. Being the largest movement signed by 220,180 people, it demands “better working conditions in early childhood.” However, a bilingual daycare centre in Cologne city is hiring trained childcare workers from abroad. According to the director of the kindergarten, many trained childcare workers in Spain or Latin America were not able to find work in their field. This could be a possible solution for Germany to meet the shortage of childcare workers in Germany. (Oliver Pieper, “Germany relies on immigrants to ease child day care crisis,” Deutsche Welle, 17 November 2024)
REGIONAL
EU foreign ministers deny on pausing diplomatic dialogue with Israel
On 18 November, the EU foreign ministers held a meeting in Brussels to discuss on diplomatic dialogue with Israel. EU Foreign Policy Chief Josep Borrell called for a pause in the dialogue with Israel, stating it could add pressure on the government which has ignored the international laws. However, the ministers denied support. He highlighted 44,000 deaths in Gaza and 70 per cent being killed to be women and children and his move was seen as “parting shot” before he left the office. The proposal which needs the vote of 27 member states was opposed as several think it was necessary to “remain in dialogue” as part of the EU-Israel Association Agreement which helps in strengthening the partnership. Spain and Ireland have agreed to review this agreement while several other EU members argue of not suspending the partnership even if the dialogue is stalled. Borrell has also proposed for a ban on imports from Israeli settlements. (“EU ministers reject suspending dialogue with Israel,” Deutsche Welle, 18 November 2024)
Underwater cable between Germany and Finland damaged
On 18 November, authorities in Finland held a investigation on broken underwater cable in the Baltic Sea located in southwest to Germany. According to the state-owned service Cinia, the fault has been found in the C-Lion1 cable. Due to this, the communications on the “C-Lion1 submarine cable are down." The Finnish Broadcasting Corporation YLE also citied the same confirming the damage. According to Samuli Bergström, communications chief at the Finnish National Cyber Security Center Traficom: "The reasons are under investigation. Disturbances occur from time to time and there can be various reasons. For example, they are susceptible to weather and damage caused by shipping. The essential thing is that the problems are identified and corrective measures are taken.” The C-Lion1 cable is close to 1,200 kilometers, connecting the German port city of Rostock to Helsinki. It is the only communication cable between the Nordic and central Europe. (“Undersea data cable between Germany and Finland broken,” Deutshe Welle, 18 November 2024)
Germany and France at risk of facing budget freeze
On 17 November, Deutsche Welle reported on the uncertainties faced by the German and French governments over their budgets. France’s lower house rejected the first part of draft budget for 2025 which proposed a wealth tax on billionaires, a tax hike on "super-dividends" from large corporations, a tax on multinationals and higher taxes for digital companies and a new tax for particularly loud motorcycles. In case of Germany, a supplementary budget for 2024 ahead of the snap elections is necessary as the government faces shortage of money. It needs EUR 3.7 billion for additional expenses covering Citizen's Allowance, and EUR 10 billion to promote renewable energies. In case of failure to arrange the money, it would face a budget freeze. (Andreas Noll, “Germany, France struggle to secure budgets, risk uncertainty,” Deutsche Welle, 17 November 2024)
Lightweight plastic bags usage on rise despite steps to reduce
On 18 November, Euronews reported on number of lightweight plastic bags bought by the EU to be close to 30 billion in 2022. The report found that the usage rate was declining and traced countries which used eco-friendly bags. EU states were observed to be taking steps since 10 years to reduce the usage of plastic bags through imposing additional charges and promoting biodegradable products. However, the measure have proven ineffective and at present the EU citizens buy 30 per cent lesser weight plastic bags compared to 2018. Although, the overall purchase remains high. As per 2022 reports, 30 billion lightweight plastic bags were used which was 66 bags per person above average. Any lightweight plastic bags that are less than 50 microns thick have been used for carrying small quantity of groceries. They are considered to have larger environmental impact and breaking into microplastics impacting human and animal health. (Alessio Dell'Anna, “Which EU country is the biggest consumer of lightweight plastic bags?,” Euronews, 18 November 2024)
Politico reports on new global fund target to be set by the EU for climate change at COP 29
On 18 November, the EU countries at the COP 29 have decided to set a global funding target of USD 200 billion and USD 300 billion to help poorer countries to counter climate change. The closed discussions held gave the possibility for a funding deal for rich countries. Till now western government have denied to disclose the exact figure while it also argue China and other Gulf countries to contribute to the funding. According to one of the EU official: “There’s no common EU position for now but … I think that’s realistic.” The move comes as the fresh deal would replace the current target of USD100 billion per year. (Zia Weise, “EU zones in on $200B to $300B target for global climate fund,” Politico, 18 November 2024)