Daily Briefs


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21 July 2022, Thursday | NIAS Europe Daily Brief #259

Estonia: New coalition after collapse | War in Ukraine: Day 147

Heatwaves disrupt Google and Oracle data centers; Mario Draghi to resign as PM soon; annual international music festival at Verbier begins; Macron calls for renewed peace talks between Israel and Palestine

Estonia: New coalition after collapse
By Emmanuel Royan 

On 18 July, the prime minister of Estonia, Kaja Kallas formed her second government and took the office in the Riigikogu. She formed her new coalition government with her liberal Reform party, the Social Democratic party (SDE) and the conservative Isamaa party. The previous government was dissolved by Kallas on 15 July after breaking up her coalition with Center Party as it collided with the opposition the Estonian Conservative People's Party (EKRE). The new government coalition's priorities will include enhancing overall security, switching to an Estonian-language education system, and enhancing the economic security of the Estonian people. In addition, hasten the removal of energy market bottlenecks and accelerate the growth of renewable energy capacity in order to achieve stable energy costs.
 
The collapse of the government
On 03 June, Prime Minister Kaja Kallas dismissed seven ministers from the Center Party headed by former prime minister Jüri Ratas which made up her two-party coalition. Since then, discussions have taken place between various parties to create a new alliance. The first reason for dismissal being the Centre party was found to be operating against the values of Estonia. Which is the Center party’s engagement with Russia’s leader Putin. Although the relations between the Center Party and Russia is on the declining side, it was observed to be an obstruct to Kallas’s reforms and Estonia’s security. Second, when the split in the coalition was furthering over existing legislation reforms on family support payments, the coalition Center Party voted against the Reform party favouring the opposition party EKRE’s proposal for overturning an education bill. The bill would have mandated Estonian language at kindergarten level, such factors led to the break-up.
 
Formation of a new government
On 14 July, at an extraordinary session in the parliament, the prime minister announced the resignation of the cabinet. Hanno Pevkur, the deputy speaker, also announced his resignation from the office. After negotiations with the SDE and Isamaa party over the month, the prime minister Kaja Kallas proceeded to form the government with the new coalition on the same day during the second extraordinary session. Kallas delivered a presentation on the principles of establishing a government and the awarding of powers to the ministers in the parliament. After the parliament's approval of the prime minister to form a government, a third extraordinary session was convened on 18 July to take the oath of office. The three parties believe it is critical to focus on Estonia's long-term objectives and development requirements. The resilience and accessibility of Estonian culture, public finances, a creative and ecologically conscious business environment, and the accessibility of social and medical services is said to be given special consideration.
 
Challenges Ahead
First, improved security. Estonia which has been focusing on boosting its border security due to Ukraine war, has been barred due to Center party’s block in the coalition. With a new coalition in place, Estonia will now be able to boost its military capabilities and border defence in line with NATO and the Baltic countries.
 
Second, continuing economic crisis. Even if governments change, the problems at large persist. Due to the conflict in Ukraine, GDP growth is anticipated to decline from a very strong expansion in 2021 to 1.3 per cent in 2022 and 1.8 per cent in 2023. According to Eurostat, Estonia now has the highest inflation rate among the eurozone countries, with annual inflation reaching 22 per cent in June.
 
Third, addressing the refugee inflow from Ukraine. The government will have to help Ukrainian refugees return to their homes, and aid in the rebuilding of Ukraine's damaged regions as it had promised previously. Furthermore, to include the refugees in the labour market, the government will have to educate the Ukrainians Estonian language and reskill the men if necessary to provide employment. With a struggling political stability and economic crisis, treatment of refugees will pose additional challenge to the government.
References
Estonia: New cabinet sworn into office,” Deutsche Welle, 18 July 2022
Ott Tamick, “Putin Critic Kallas Needs New Estonian Allies to Keep Power,” Bloomberg, 06 June 2022
Estonian coalition collapses after tension over 'core values' escalates,” Financial Times, 13 June 2022
Cooperation agreement between the Estonian Reform Party, Isamaa, and the Social Democratic Party for 2022–2023,” Republic of Estonia, 18 July 2022
“ Estonian Prime Minister Kaja Kallas, 'Europe's new iron lady,' at risk of losing her position,” lemonde.fr, 11 June 2022


War in Ukraine: Day 147
By Rishma Banerjee
 
War on the Ground
On 19 July, Ukraine joined the International Energy Agency (IEA), after a joint declaration was signed in Warsaw. Ukraine’s energy minister, German Galushchenko, and the IEA Executive Director Fatih Birol represented the two parties. Galushenko said that given the energy war with Russia, this agreement will help Ukraine in building better energy systems in the country.

On 20 July, President Volodymyr Zelenskyy held a phone conversation with European Council  President Charles Michel. They discussed the on-ground situation in Ukraine. Zelenskyy stressed on the importance of modern heavy weapons for their war efforts and also thanked the member states for the recent fifth package of financial assistance to Ukraine. 
 
On 20 July, Ukraine’s armed forces shelled and destroyed parts of the Antonovsky bridge. This connects Kherson, which is currently occupied by Russia, with regions in the Crimean Peninsula. Ukraine used the HIMAR multiple launch systems, launching 12 rockets, and 11 of them hit the bridge. As a result, Russians in Kherson might soon face a dearth of supplies. They will also face troubles in retreating from Kherson in an organized fashion if necessary. 
 
Russia's forces continued their attack on the Sumy and Chernihiv regions with aviation, mortars, canon and rocket artillery. They also launched assaults on Bakhmut, on the way to the Vuhlehirska thermal power plant and opened fire in Sloviansk and Kramatorsk.
 
On the same day, in a briefing at the Ukraine Media Center, Mariupol mayor Vadym Boichenko alleged that Russia has set up at least four filtration centers. He said that over 10,000 Ukrainians were detained there, often under abusive conditions. Boichenko added that many Mariupol residents had already died in the filtration centers, as there were not doctors available.

The Moscow View
Claims by Russia 

On 20 July, Russia's foreign minister Sergei Lavrov told state media that Russia's "geographical goals" in Ukraine have moved beyond the Donbas region. He mentioned that their goals now include among other territories, Kherson and the Zaporizhzhya region. He blamed the West's steady weapons supply to Ukraine as the cause of Russia's change in objectives. Moreover, about the grain corridor talks with Ukraine and Turkey, Lavrov asked UN Secretary General Antonio Guterres to intervene and facilit the process. This came after his comment that Moscow has agreed to "basic principles" on a grain agreement but Ukraine’s delegation has refused to include a clause to protect Russian exports.
 
On the same day, Russia's state media regulator, Roskomnadzor announced that they will punish Wikimedia Foundation. Wikipedia is being held in violation of law, as it allegedly has misleading information about the Ukraine war. Roskomnadzor said that a coercive measure will be applied which will require search engines to “inform internet users about a violation of Russian legislation by a foreign entity…”
 
On 19 July, Russia’s foreign minister Sergey Vershinin said that international organisations should participate in the upcoming tribunal against Ukrainian militants. He also said that for greater awareness about the crimes against civilians in the Donetsk People’s Repuclic (DPR) and Lugansk People’s Republic(LPR), a “broader representation” will be necessary.
 
Russia’s envoy to North Korea, Ambassador Alexander Matsegora said that North Korea could send builders to the Donbas regions, to help in reconstruction efforts. He further mentioned: “Highly qualified, hardworking, and ready to work in the most difficult conditions, Korean builders will be an asset in the serious task of restoring social, infrastructural and industrial facilities destroyed by the retreating Ukronazis.”
 
On the same day, Russia’s chief of Russia’s National Defense Management Center, Mikhail Mizintsev reported that around 600 tonnes of humanitarian cargoes were delivered to the DPR and LPR. Six humanitarian operations were conducted, which extended to the Kharkhiv and Zaporizhzhya regions. Mizintsev also said that over 28,000 people, including nearly 4,000 children, were evacuated from dangerous regions in Ukraine, and from the LPR and DPR to Russia.

The West View
Responses from the US and Europe 

On 20 July, the EU asked member states to cut gas usage by 15 per cent till next March, pre-empting a complete shutdown of Russian gas supply. Ursula von der Leyen presented the commission’s winter plan and proposed the establishment of a new Council Regulation on Coordinated Demand Reduction Measures for Gas. This regulation would set targets to assist all member states to reduce their gas demands. The Commission has also adopted a European Gas Demand Reduction Plan which contains measures, principles and criteria for a coordinated reduction in gas demand.
 
On the same day, US Defence Secretary, Lloyd Austin said that they will send four more high mobility artillery rocket systems to Ukraine. At a virtual meeting with allies on Ukraine, Llyod Austin said: So far, the US has provided 12 HIMARS. "(We) will keep finding innovative ways to sustain our long-term support for the brave men and women of the Ukrainian armed forces…”
 
Also on 20 July, the Czech Republic’s foreign minister Jan Lipavsky and Austria’s foreign minister, Alexander Schallenberg visited Irpin. This is part of their work visit to Ukraine. The mayor of Irpin, Oleksandr Markushyn thanked them for their continued support to Irpin, and to Ukraine at large. The two leaders also met president Zelenskyy who thanked them for their “powerful support” and spoke about Ukraine’s membership to the EU. 

The Global Fallouts
Implications of the Ukraine war

On 20 July, the World Health Organization said that millions of refugees and migrants are being denied appropriate and adequate healthcare. WHO is attempting to analyze the implications of migration and healthcare and have urged host countries to include vulnerable populations in their health systems. This crisis has been increased by the conflict in Ukraine which has pushed the total number of displace people in the world to above 100 million. Moreover, the UN refugee agency reported that since the beginning of the Russian invasion in February, more than 9.5 million border crossings have been recorded from Ukraine.
 
Egypt’s President Abdel-Fattah el-Sissi, met with Serbia’s president during his three-day visit to the country. The two leaders signed a partnership declaration announced plans for a free trade agreement and also discussed phase of dealing with the impact of Russia's invasion of Ukraine.

References
The representatives of Ukraine did not stop working for a single day to obtain an effective air defense system - address by President Volodymyr Zelenskyy” president.gov.ua, 20 July 2022
The First Lady of Ukraine met with the First Lady of the USA in Washington,” president.gov.ua, 20 July 2022
Ukraine Becomes Association Member of International Energy Agency,” Kyiv Post, 19 July 2022
Vital bridge attacked in Kherson as Ukrainian army goes on counter offensive,” Kyiv Post, 20 July 2022
Russian invaders continue to open fire on Sumy Region, Chernihiv Region,” Ukrinform, 20 July 2022
Fighting continues on approaches to Vuhlehirska TPP, near Berestove,” Ukrinform, 20 July 2022
Russian Occupiers Keep 10,000+ Mariupol Residents in Filtration Camps,” Kyiv Post, 20 July 2022
Russia’s Goals in Ukraine No Longer Solely Focused on the East – Lavrov,” The Moscow Times, 20 July 2022
Russia Asks UN Chief to Intervene in Ukraine Grain Talks,” The Moscow Times, 20 July 2022
 “Wikipedia designated as lawbreaker,” RT, 20 July 2022
Russia expects global organizations to take part in tribunal against Ukrainian militants,” TASS, 19 July 2022
North Korean Builders to Help With Donbas Reconstruction – Russian Ambassador,” The Moscow Times, 19 July 2022
Some 600 tonnes of humanitarian aid delivered to DPR, LPR, southern Ukraine,” TASS, 20 July 2022
"Over 23,000 people evacuated from Ukraine, DPR, LPR to Russia in past dayTASS, 20 July 2022
Save Gas for a Safe Winter: Commission proposes gas demand reduction plan to prepare EU for supply cuts,” ec.europa.eu, 20 July 2022
U.S. to send four more HIMARS to Ukraine,” Reuters, 20 July 2022
Czech, Austrian foreign ministers visit Irpin - mayor,” Ukrinform, 20 July 2022
Denying refugees and migrants healthcare violates rights, WHO says,” Reuters, 20 July 2022
More than 9.5 million border crossings from Ukraine since invasion: UN agency,” Reuters, 20 July 2022
Serbia, Egypt agree to boost cooperation amid war in Ukraine,” AP News, 20 July 2022


IN BRIEF
By Emmanuel Royan 

THE UK
Rising temperature causes big tech’s data centers to shut down temporarily in the UK
On 19 July, Google and Oracle data centers in London had to shut down a few of their systems due to overheating caused by the heatwaves in the region. Oracle stated: “Following unseasonably high temperatures in the UK south (London) region, two cooler units in the data center experienced a failure when they were required to operate above their design limits.” On the same day in the evening, Google reported that one of the buildings experienced a cooling failure which hosts cloud services for west Europe. The firm said that it had powered down some of the equipment in order to prevent damage to them and a protracted outage. (Chris Vallance, “Heatwave forced Google and Oracle to shut down computers,” BBC, 20 July 2022)

New energy plant approved for Suffolk
On 20 July, the UK government approved the new Sizewell C nuclear power plant project funded by France’s energy firm Électricité de France (EDF) to be built on the Sufflolk coast. The project is estimated to cost  EBP 20 billion and would generate seven per cent of the country’s energy needs for the next 60 years. The new plant will be built next to the decommissioned Sizewell A and operating Sizewell B power plants. Business Secretary Kwasi Kwarteng, stated that the central government will be in charge of all upcoming planning decisions about the facility because it is considered to be a crucial infrastructure project for the country. (“Sizewell C nuclear plant gets go-ahead from government,” BBC, 20 July 2022)
 
ITALY
Draghi wins vote of confidence but lacks support from coalition
On 20 July, Italy’s prime minister Mario Draghi stated that he would be open to continue being the prime minister if his quarreling coalition could promise "sincere and real support" for him. Even though he won in a vote of confidence in the parliament, it was done so without the support of significant parties in the power-sharing government. Draghi appears to have no other option except to submit his resignation. On 21 July, he is scheduled to address the lower chamber of the Italian parliament before meeting President Sergio Mattarella and may also formally announce his resignation at that time. (Hannah Roberts, “Mario Draghi faces the end after Italy's coalition refuses to back him,” POLITICO, 20 July 2022)
 
REGIONAL
Palestine’s president visits Paris to meet Macron
On 20 July, France’s president Emmanuel Macron with Palestine’s president Mahmoud Abbas in a press conference in Paris urged that the long-stalled peace negotiations between Israel and the Palestinians be restarted in order to prevent growing tensions in one of the Middle East's longest conflicts from erupting once more. Macron mentioned that in order to avoid new eruption of violence in the region Israel has to end its unilateral measures in the occupied West Bank, which includes expansion of Jewish settlements and evictions of Palestinian families from their homes. Macron condemned these actions as “contrary to international law.” Macron further reiterated his determination to lead efforts by the international community to restart negotiations between Israel and the Palestinians and ultimately bring a “just and lasting peace.” (“Macron hosts Abbas for talks, calls for new Mideast peace push,” France24  20 July 2022)
 
International music festival begins in Verbier
On 20 July, the annual international music festival ‘Verbier Festival’ began in the mountain resort of Verbier on the Alpines of Switzerland. Director of the Verbier Festival, Martin Engström, stated: "We have about 300 young musicians between 15 and 30 years old working here in Verbier. They all come from different countries, and also from Russia, and also from Ukraine, and we are not blind to what is happening around us - so we live with the reality, and we have to be part of it." A 'Concert for Peace' in the symphonic style inaugurated the festival. The performance, which included pieces by Russian and Ukrainian composers, was led by Italian maestro Gianandrea Noseda and included Ukrainian pianist Anna Fedorova. (Frédéric Ponsard, “Switzerland's Verbier Festival hits the high notes,” Euronews, 20 July 2022)

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