Photo : Martin Varela Umpierrez/Reuters
07 December 2024, Saturday | NIAS Europe Daily Brief #1005
By Samruddhi Pathak
REGIONAL
EU signs deal with Latin America amid disagreement with France
On 06 December, Ursula von der Leyen, the President of the European Parliament, signed a deal with Latin American countries. “Today marks a truly historic milestone,” von der Leyen said after summit talks with leaders of the Mercosur bloc in Montevideo, the capital of Uruguay. The agreement will create a free trade zone for more than 700 million citizens. The deal took 25 years to be completed and signed. It is opposed by France since the deal will affect the poultry and farming industry of France. Meanwhile, German leaders are celebrating the deal. Siegfried Russwurmhe, head of the Federation of German Industry (BDI), issued a statement, “This agreement will provide an urgently-needed growth impulse for the German and European economy.” The deal aims to deepen ties between the EU and the Mercosur countries. However, the deal is yet to be ratified by the signatory countries. (Georgio Leali, “EU snubs France to seal huge Latin American trade deal,” Politico, 07 December 2024)
FINLAND
107th independence day
On 06 December, Finland celebrated its 107th independence day. A flag raising ceremony was held at 9 AM in Helsinki. Alexander Stubb, President of Finland, laid a wreath at the Tomb of the Unknown Soldier in Hietaniemi Cemetery in Helsinki. There were also protests and counter-protests being held across the city of Helsinki against rising right-wing sentiment among the Finnish public.. There was also a reception held in the Presidential Palace in Helsinki. The reception was attended by 2,000 guests. (“Finland celebrates 107th Independence Day in cloudy conditions,” yle, 06 December 2024)
FRANCE
Socialist Party to discuss with Macron over forming the new government
On 07 December, Olivier Faure, leader of the Socialist party, told the media that he is eager to discuss the formation of the new government with Emmanuel Macron, President of the Republic of France. He said, “We need to find a solution because we can’t let the country grind to a halt for months.” Macron also made a statement recently that he is looking for a Prime Minister who will represent all blocs in general. However, leaders of the Greens party were not invited to the President's office for the formation of the government. Therefore, the Greens party has issued a statement asking the Socialist party to be careful while negotiating with Macron. (Clea Caulcutt, “French Socialist leader extends olive branch to Macron as talks on next government begin,” Politico, 07 December 2024)
ICELAND
Government Iceland to allow whale hunting until 2029
On 07 December, the government of Iceland issued new permits for the whaling season. Under the new permits, 209 fin whales and 217 minke whales can be hunted during the whaling season, from June to September. Animal rights’ groups have condemned the new regulations. The government has justified its stance by stating that it will add revenue to the poultry and fishing industry. The government also clarified that a limit will be set for the number of whales being hunted. The country is one of only three in the world that allows whaling for meat, blubber and oil. The other two countries are Japan and Norway. In 2023, whaling was suspended for two months because the whaling methods used did not comply with animal welfare laws. (Amy Walker, “Iceland issues permits allowing whale hunting until 2029,” BBC, 07 December 2024)
ROMANIA
Court cancels Presidential elections amid allegations over Russia’s security threats
On 06 December, the Supreme Court of Romania cancelled the upcoming presidential elections due to concerns over Russia’s potential “hybrid” attacks on the country. Russia’s involvement was already speculated due to the rising popularity of pro-Russia candidate, Călin Georgescu, due to TikTok. Meanwhile, the government of Romania will have to make adequate preparations for fresh presidential elections. The current presidential term was supposed to end on 21 December. However, it has been extended now and he will stay president until a new president is sworn in. The Romanian government declassified certain intelligence reports that suggested that the TikTok algorithm was manipulated through paid promotions in favour of a pro-Russia narrative. Re-election has created further confusion since more than 48,000 Romanians living abroad had already voted in the elections. (Tim Ross, Carmen Paun and Andrei Popoviciu, “Romanian court cancels presidential election amid Russian influence fears,” Politico, 07 December 2024)
TURKEY
Erdogan expresses frustration towards weakening Syria’s leadership
On 06 December, after the Friday prayers in Turkiye, Recep Tayyip Erdogan, the President of Turkey, expressed his concerns over the increasing influence of anti-regime forces in Syria. He said that he had made a call to Assad al-Bashar, leader of Syria, regarding the issue. However, he did not receive a positive response on this. He said that the UN-initiated and supported political process in Syria can only resolve the existing conflict. He also stated that he has discussed the Syrian issue with Antonio Gueterres, the Chief of the United Nations. Turkiye is currently hosting more than three million Syrian refugees. (“Erdoğan hopes Syria’s anti-regime march continues ‘without disasters’,” Daily Sabah, 07 December 2024)
Former Turkish Ambassador elected as the new Secretary General of OSCE
On 07 December, Feridun Sinirlioğlu, a former Turkish ambassador, was elected as the new secretary general of Organisation for Security and Co-operation in Europe (OSCE). The OSCE is a body to engage the West with the East. There are 57 member countries in the group. All member states approved Sinirlioğlu’s three year term which implies that it was not opposed by Greece, the Greek Cypriot administration and Armenia. Recently, it has been working on normalising its ties with Greece and Armenia. Turkey is also attempting to mediate certain conflicts. It has repeatedly offered to hold talks between Russia and Ukraine to reach an agreement. The Russia-Ukraine war has led to many decisions being either vetoed or blocked by Russia. (“OSCE elects former Turkish envoy as new secretary-general,” Daily Sabah, 07 December 2024)
Per capita GDP projected to exceed USD 15,000 in 2024
On 05 December, Turkiye’s top finance officials informed the media through a press conference that the country’s per capita income is projected to increase to USD 15,000 by the end of December 2024. The expected economic growth in 2024 is 3.5 per cent. The per capita income is expected to cross USD 20,000 by 2027. The current account deficit has dropped below USD 10 billion from USD 56 billion in 2024 itself. Even though the risk premium of developing countries has fallen by 45 points, the risk premium of Turkiye has fallen by 448 points. Inflation in the country fell by 47 per cent in November. It has been rising at an annual average rate of 5.5 per cent since the past 20 years. (“Türkiye's GDP per capita could exceed $15,000 in 2024: Şimşek,” Daily Sabah, 05 December 2024)
THE UK
PM Starmer says no plan to increase taxes in an interview to the BBC
On 07 December, Keir Starmer, the Prime Minister of the UK, in an interview with BBC said that his government does have plans to raise taxes. However, the possibility of raising taxes cannot be ruled out in case of exceptional circumstances. He also announced building 1.5 million new homes in England and ending hospital backlogs. The UK is already dealing with a housing crisis. Rachel Reeves, Chancellor of the UK, announced an increased public spending of GBR 70 billion. More than half of the higher taxes will be collected from businesses. There will also be an increase in capital gains tax on share sales and a freeze on inheritance tax thresholds. Businesses have also warned the government that a raise in taxes will lead to decreased salaries, less job availability and increased layoffs. Government has already implemented a pay rise for lower wages. Starmer’s popularity has also fallen since he was elected as the Prime Minister. (Kate Whannel, “No plan for more tax rises but we can't rule it out - Starmer,” BBC, 07 December 2024)