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19 December 2024, Thursday | NIAS Europe Daily Brief #1015
By Samruddhi Pathak
GEORGIA
"Lost in crisis" says an opinion in Deutsche Welle
On 18 December, while being interviewed by Deutsche Welle, Gela Vasadze, a political scientist, described the current situation in Georgia as “lost in a crisis.” After the national parliamentary elections held in October, Georgian Dream, a far-right party, won the majority while the opposition claimed that the elections were rigged. After the party in power suspended talks with the EU over membership until 2028, protests broke out in Tbilisi, the capital of Georgia. Later, new protests erupted against the election of the new president, Mikheil Kavelashvili. For the first time, the president was not directly elected by the people but by a parliamentary commission. The Georgian Dream party has a majority in this commission. The opposition detests this selection process. Salome Zourabichvili, the current president of Georgia, said that she will not vacate the position until a successor is elected through democratic means. Korneli Kakachia, a political thinker, said that no one knows what could happen on 29 December when the new president is inaugurated and the current head of state refuses to leave office. The judiciary of Georgia also suspects involvement of Russia in the elections. (“Juri Rescheto, “Can Georgia still find a way out of its crisis?,” Deutsche Welle, 18 December 2024)
FRANCE
Nicolas Sarkozy will continue to be under house arrest on court order
On 18 December, the Court of Cassation of France, rejected a plea filed by Nicolas Sarkozy, former President of the Republic of France, challenging the sentence given to him by the lower court. The court sentenced him to three years under house arrest. He was found guilty of corruption in 2014. He has been ordered to wear an ankle electric monitor. Sarkozy's term in office from 2007 to 2012 was marked by high-profile corruption scandals often involving rich sponsors and favouritism for money. He is also charged with demanding and receiving expensive gifts from Mohammad Gaddafi, former dictator of Libya. He is the first French President in the post-war history of France to have been convicted for a crime. (“France: Sarkozy loses appeal, must wear electronic ankle tag,” Deutsche Welle, 18 December 2024)
SERBIA
Mayor announces free public transport from 01 January in Belgrade
On 18 December, the Mayor of Belgrade announced that public transport will be free from 01 January 2025 in the city. Belgrade has almost 1.7 million residents and does not have an underground transport system. The decision was taken after the city was facing issues like high traffic and hours of gridlock on roads. The number of cars has increased by 250,000 over the past decade. The government has promised a transport system by 2030 but the project remains stalled. The Mayor has also promised to replace old trams and buses by 2027. (“Belgrade to make public transport free from January 1,” Deutsche Welle, 18 December 2024)
THE UK
Andrew Tate to face tax evasion charges in the UK
On 18 December, a court in the UK ordered the British police to seize more than EUR two million from Andrew Tate, a social media influencer, and his brother Tristian Tate. They failed to pay taxes on around GBR 21 million in profit from their online businesses, such as War Room, Hustlers' University, Cobra Tate and OnlyFan from 2014 to 2022. They became famous after misogynistic content on social media platforms. They have been banned from TikTok, YouTube, and Facebook due to controversial content. They also have had most of their assets and bank accounts frozen in the UK. As a response to the court, Andrew Tate said, "This is not justice. It is a coordinated attack on anyone who dares to challenge the system." (“UK court rules against Andrew Tate in tax case,” Deutsche Welle, 18 December 2024)
REGIONAL
Inflation in Eurozone lesser than expected
On 18 December, Eurostat, Luxembourg-based statistics office, released its report for inflation recorded in November 2024. The inflation was 2.2 per cent, which is less than predicted earlier i.e., 2.3 per cent. However, Germany’s inflation stood at 2.4 per cent which is higher than the average. However, Belgium recorded the highest inflation i.e., 4.8 per cent. The lowest annual inflation was recorded in Ireland, Lithuania and Luxembourg. In France and Italy, the inflation was two per cent, lower than the average. The overall inflation has come down from over ten per cent in 2022 when the Russia-Ukraine war had just begun. According to Eurostat data, construction output rose by one per cent recording the strongest growth since February 2023. Experts have suggested that the rebound in output was fueled by a 1.6 per cent growth in civil engineering activity, a 0.7 per cent rise in the building sector, and a 0.5 per cent profit in specialized construction activities in the Eurozone in October 2024. (“Eurozone inflation rises less than expected, more in Germany,” Deutsche Welle, 18 December 2024)
Brain drain in the EU affects 30 per cent of the population finds Euronews
On 18 December, Euronews published a report on the reasons behind brain drain in Europe. Brain drain is affecting almost 30 per cent of the EU population, according to Euronews. Portugal is a clear example since around 30 per cent of Portuguese young people live abroad, while 70 per cent of Portuguese immigrants are under 40. To reverse the brain drain, the Portuguese government has launched a plan to cut taxes for workers aged between 18 and 35. Apart from these initiatives, an initial investment of some EUR 200 million has been made to provide better health services. With this pace, it is predicted that the EU might lose 30 per cent of its population by 2080. (Julian Gomez, “How can the European Union tackle ‘brain drain’?,” Euronews, 18 December 2024)
The GDP gap widens to 30 per cent due to low productivity in the EU finds Politico
On 19 December, Politico published a detailed editorial on economic backsliding of European economies. With Donald Trump’s election to power, his intention to provide aid or funding programs to Europe is not high. He has also announced plans to levy more tariffs on the continent, upto 20 per cent more. Currently, more than EUR 500 billion worth annual exports are made to the US from the EU. Meanwhile, even the UK is planning to increase tariffs on EU products. Meanwhile, Europe is also losing its market. Europe today does not have a single entry among the 15 best selling electric vehicles and only four of the world’s top 50 tech companies are European. In terms of industrial competitiveness, Europe is far behind the US. The gap in GDP per capita has grown to 30 per cent, due to lower productivity growth in the EU. On an average, Europeans work 20 per cent less than Americans. The US tech companies spend more than twice on research and development than European tech firms, according to the International Monetary Fund (IMF). The US companies have seen a 40 per cent jump in productivity since 2005 while the productivity in European tech companies has stagnated. Europe never crossed the benchmark of 3 percent of the bloc’s GDP on R&D that it has decided. Expenditure on R&D is the main driver of economic innovation. (“Europe’s economic apocalypse,” Politico, 19 December 2024)
INTERNATIONAL
Turkish President, and Lebanese PM hold talks on regional issues
On 18 December, Recep Tayyip Erdogan, the President of Turkiye, and Najib Mikati, the Prime Minister of Lebanon, met to discuss regional issues and security threats to both countries in Ankara, the capital of Turkiye. Mikati, through X, post meeting said that Israel continues to carry out ceasefire violations in the Lebanese territory. Meanwhile, Erdogan emphasised that Israel must compensate for the damage it has caused in Lebanon and only a ceasefire in Gaza can truly bring about stability and prevent a spillover of the fighting in the neighbouring countries. Meanwhile, Syria has emerged as another concern for both countries as both of them share their borders with Syria. Both leaders said that they look forward to strengthening ties with Syria and rebuilding the country. (“Turkish President Erdoğan hosts Lebanese PM Mikati in Ankara to discuss regional issues, instability,” Euronews, 18 December 2024)