Photo : AP Photo
04 December 2024, Wednesday | NIAS Europe Daily Brief #1002
By Neha Tresa George
FRANCE
“No-confidence vote in France could spell bad news for the economy” says Deutsche Welle
On 03 December, Deutsche Welle reported on the likely impact of the vote of no confidence passed against France’s Prime Minister Michel Barnier on the economy. Barnier’s attempt to reduce the public deficit from six per cent to three per cent in the proposed budget for 2025 faced a backlash in the parliament. Barnier, without a majority in the parliament, is now facing the threat of a no-confidence vote from the left and the right-aligned parties in the parliament. These uncertain circumstances come amidst some stable economic figures. French GDP is expected to grow by 1.1 per cent, the unemployment rate remains low at 7.4 per cent, and inflation has reduced from two per cent to five per cent. However, economists point out that French companies have become less competitive than Chinese ones. It was also estimated that the investors have become “cautious” since the war in Ukraine. They further pointed out that the number of companies filing for insolvency increased to 65000 from 56000 in 2023. Some analysts argue that the government’s failure and the lack of budget for 2025 would exacerbate the economic crisis. (“Is France heading for an economic storm?,” Deutsche Welle¸ 03 December)
FINLAND
Authorities inspect the damage of two Fiber optic cables connecting Sweden
On 04 December, Finnish authorities informed of new damage to two fibre-optic cables between Finland and Sweden. This damage has affected around 6000 private customers and 100 business customers. Finnish Transport and Communications Minister Lulu Ranne said that they took the matter seriously and investigated it with Sweden. While the Swedish Civil Defence Minister Carl-Oskar Bohlin suspected the sabotage, the Finnish police did not believe there was any need to suspect criminal activity. The cables were now repaired. These events followed the rupture of two undersea fibre optic cables in the Baltic Sea last week. This shows the region’s vulnerability, which has become more prone to sabotage recently. (“Finland: Outage reported after fiber optic cable damaged,” Deutsche Welle, 04 December 2024)
GEORGIA
Protests continue; Government refuses negotiations
On 04 December, the BBC reported on the ongoing protests in Georgia over the ruling Georgian Dream Party’s victory in the elections and their policies. Although the Dream Party denies any allegiance to the Kremlin, its recent actions, mainly stalling Georgia’s accession process to the EU, will have far-reaching impacts on the country’s future. Further, it has not responded or altered its policies following the suspension of its strategic partnership with the US. The protests resulted in hundreds of injuries among the police force and, severe beatings, and facial and head injuries among the protestors. According to the human rights activists of the country, the police resorted to “brutality” and “abuse of their authority.” The Prime Minister of Georgia, Irakli Kobakhidze did not agree to negotiations and claimed that the protestors were funded from abroad. The protestors believe that the newly formed Georgian government is “illegitimate” as the elections were rigged. There seems to be no end to these protests, as the government is not ready to negotiate. It has also led to several resignations from public services and ambassadors, including Georgia’s ambassador to the US. (“Georgia’s moment of truth: Protesters demand Western path not Russian past,” BBC, 04 December 2024)
GERMANY
Demand for chocolate rises amidst global price rise for Cocoa
On 04 December, Deutsche Welle reported that demand for chocolate in Germany had not reduced despite the global price rise of Cocoa. In 2024, there has only been a 1.6 per cent decrease in Germany in 2024. Due to poor harvests, rising shipping prices and demand led to cocoa beans becoming the “most important raw material for making chocolate in 2023. Despite these, the per capita chocolate consumption in Germany remained high. In 2023, according to the estimates, Germans ate up to 10 kilograms of chocolate. They are in high demand, especially during the holiday season. The German sweets industry produced some 1.14 million tons of chocolate products in 2023, a 4.6 per cent increase from 2022. (“Germany can’t quit chocolate, despite record-high prices,” Deutsche Welle, 04 December 2024)
Fifth German-African Business Summit in Kenya
On 04 December, Deutsche Welle reported on the statements of Economy Minister Robert Habeck at the sidelines of the fifth German-African Business Summit (GABS) conducted in Nairobi, Kenya. He pointed out the business concerns about “security and stability” in Africa. He said: “German investors need a safe and stable investment environment as political uncertainty can be poison for direct investment.” He further highlighted that the constant growth rates do not undermine the prospects for more growth. Meanwhile, the head of Kenya’s cabinet, Musalia Mudavadi said that Africa had huge potential and condemned the laws and regulations that interfered with the foreign direct investment in the country. He thanked Germany for contributing to science and technology and Kenya’s economic development. Habeck also proposed the transfer of African workers to Germany, opening doors for new skills and development. GABS is the most significant event organised by Germany once in two years with participation from 35 African countries. In 2024, it saw around 800 participants from these countries. (“Businesses need ‘safe and stable’ Africa to invest: Habeck,” Deutsche Welle, 04 December 2024)
THE UK
“We’re with either America or Europe, is plain wrong” says Prime Minister Starmer
On 04 December, Deutsche Welle reported on the statements of Economy Minister Robert Habeck at the sidelines of the fifth German-African Business Summit (GABS) conducted in Nairobi, Kenya. He pointed out the business concerns about “security and stability” in Africa. He said: “German investors need a safe and stable investment environment as political uncertainty can be poison for direct investment.” He further highlighted that the constant growth rates do not undermine the prospects for more growth. Meanwhile, the head of Kenya’s cabinet, Musalia Mudavadi said that Africa had huge potential and condemned the laws and regulations that interfered with the foreign direct investment in the country. He thanked Germany for contributing to science and technology and Kenya’s economic development. Habeck also proposed the transfer of African workers to Germany, opening doors for new skills and development. GABS is the most significant event organised by Germany once in two years with participation from 35 African countries. In 2024, it saw around 800 participants from these countries. (“Businesses need ‘safe and stable’ Africa to invest: Habeck,” Deutsche Welle, 04 December 2024)