Photo : Sustainable views
20 May 2025, Tuesday | NIAS Europe Daily Brief #1139NIAS Europe Daily Brief #1139
By Fleur Elizabeth Philip
REGIONAL
European Commission proposes to increase funds for farmer to practise water management
On 19 May, the European Commission is looking at offering an increase in the subsidies to those farmers who invest in water preservation, after the bloc’s farming subsidy program is renewed. The draft under the Common Agricultural Policy addresses the intense pressure on the water supply from industries and climate change. The policy includes transition packages that will provide funds for farmers to practice water management. These funds will help the farmers to pay more for drought-resistant crops and invest in irrigation tools that will preserve water. Furthermore, the draft also includes the increase in spending on the water sector by the European Investment Bank. This draft policy aims to support and reward those who engage in improving environmental and climate performance. (Sharon Kits Kimathi, “Sustainable Switch Climate Focus: From EU water-saving funds to melting glaciers,” Reuters, 19 May 2025)
European Commission predicts the GDP to grow by 0.9 per cent
On 19 May, the European Commission released its predictions regarding the 2025 spring economy, and commented that the EU economy has seen progress beyond expectations. The data considers the uncertainty in the global trade, climate-related disasters, defence spending, and many more. The goals made by the EU include, for 2025, in Europe, the GDP is to increase by 0.9 per cent, and in 2026, there is to be an increase by 1.4 per cent. Decline in inflation rates by 2.1 per cent in 2025, and 1.7 per cent in 2026. The nominal wage growth is expected to decrease in 2025, but there will be an improvement in 2026, when labor will benefit from an increase in wages. The labour market has potentially improved, and has created more than 1.7 million jobs, and aims for an increase of another 2 million. The unemployment rate is expected to fall by 5.7 per cent by 2026. On the other hand, for the EU members, the GDP is to increase by 1.1 per cent in 2025 and by 1.5 per cent in 2026. Export rates are to grow by 0.7 per cent, and to further increase by 2.1 per cent. are The government deficit for the EU is to increase by 3.3 per cent in 2025 and to remain at that level in 2026. (“EU economy projected to moderately grow amid global economic uncertainty,” European Union, 19 May 2025)
INTERNATIONAL
EU and India launches research projects to tackle marine pollution
On 20 May, EU partners with India have launched two new research areas under the EU-India Trade and Technology Council. These projects will look at finding solutions regarding environmental challenges and promote cutting-edge technology. The total investments come to around EUR 41 million. EU’s Horizon Europe programme, along with India’s Ministry of Earth Sciences (MoES), and Ministry of New and Renewable Energy (MNRE), are bringing together a group of researchers, industries, and startups that will provide solutions on sustainability and climate. The first will be to tackle marine pollution, especially to eradicate plastic. The EU and MoES are together investing EUR 21 million, where the team will monitor, assess, and mitigate the impacts of various pollutants, which include microplastics, heavy metals. The second project will be on converting waste to renewable hydrogen technologies. The total funding for this project is is around EUR 19 million, which aims to develop efficient, cost-effective and environment-friendly methods to produce hydrogen. (“EU India join hands to find innovative research solutions to Marine Pollution and Waste to Hydrogen,” Hydrogen Industry News, 20 May 2025)
India and EU Free Trade Agreement Challenges on tariffs and migration
On 19 May, the relationship between India and the EU continues to grow, and the bilateral trade between them has reached around USD 137.41 billion in FY 2023-24. According to the report by ORF, several factors disrupt the India-EU talks. They include India’s imposition of tariffs on wine, cheese and spirits, and agricultural produce. Secondly, the migration of Indians to European regions. Young-skilled Indian workforce emphasizes the liberalisation of trade, under WTO’s Modes 1 & 4 of the General Agreement on Trade and Services. So far, India and the EU have had 11 rounds of negotiations since 2022. Among these dialogues, several factors stand out, which include agriculture, dairy, government procurement, labor standards, and sustainable development. In the agriculture sector, India argues that the tariffs are necessary to protect the domestic labor, and has imposed 39 per cent. In the service sector, trade remains a challenge that is to be solved and can only be addressed reciprocally. India seeks Mutual Recognition Agreements (MRA) for professional qualifications in fields such as medicine, engineering, and accountancy. (Nayana Sharma, “India-EU Free Trade Agreement: Obstacles, Opportunities, and the Road Ahead,” Observer Research Foundation, 19 May 2025)