Tag: crisis

  • Inside the deal: How Boris Johnson’s departure paved the way for a grand Brexit bargain

    Inside the deal: How Boris Johnson’s departure paved the way for a grand Brexit bargain

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    LONDON — It was clear when Boris Johnson was forced from Downing Street that British politics had changed forever.

    But few could have predicted that less than six months later, all angry talk of a cross-Channel trade war would be a distant memory, with Britain and the EU striking a remarkable compromise deal over post-Brexit trade rules in Northern Ireland.

    Private conversations with more than a dozen U.K. and EU officials, politicians and diplomats reveal how the Brexit world changed completely after Johnson’s departure — and how an “unholy trinity” of little-known civil servants, ensconced in a gloomy basement in Brussels, would mastermind a seismic shift in Britain’s relationship with the Continent.

    They were aided by an unlikely sequence of political events in Westminster — not least an improbable change of mood under the combative Liz Truss; and then the jaw-dropping rise to power of the ultra-pragmatic Rishi Sunak. Even the amiable figure of U.K. Foreign Secretary James Cleverly would play his part, glad-handing his way around Europe and smoothing over cracks that had grown ever-wider since 2016.

    As Sunak’s Conservative MPs pore over the detail of his historic agreement with Brussels — and await the all-important verdict of the Democratic Unionist Party of Northern Ireland — POLITICO has reconstructed the dramatic six-month shift in Britain’s approach that brought us to the brink of the Brexit deal we see today.

    Bye-bye Boris

    Johnson’s departure from Downing Street, on September 6, triggered an immediate mood shift in London toward the EU — and some much-needed optimism within the bloc about future cross-Channel relations.

    For key figures in EU capitals, Johnson would always be the untrustworthy figure who signed the protocol agreement only to disown it months afterward.

    In Paris, relations were especially poisonous, amid reports of Johnson calling the French “turds”; endless spats with the Elysée over post-Brexit fishing rights, sausages and cross-Channel migrants; and Britain’s role in the AUKUS security partnership, which meant the loss of a multi-billion submarine contract for France. Paris’ willingness to engage with Johnson was limited in the extreme.

    Truss, despite her own verbal spats with French President Emmanuel Macron — and her famously direct approach to diplomacy — was viewed in a different light. Her success at building close rapport with negotiating partners had worked for her as trade secretary, and once she became prime minister, she wanted to move beyond bilateral squabbles and focus on global challenges, including migration, energy and the war in Ukraine.

    “Boris had become ‘Mr. Brexit,’” one former U.K. government adviser said. “He was the one the EU associated with the protocol, and obviously [Truss] didn’t come with the same baggage. She had covered the brief, but she didn’t have the same history. As prime minister, Liz wanted to use her personal relationships to move things on — but that wasn’t the same as a shift in the underlying substance.”

    Indeed, Truss was still clear on the need to pass the controversial Northern Ireland Protocol Bill, which would have given U.K. ministers powers to overrule part of the protocol unilaterally, in order to ensure leverage in the talks with the European Commission.

    Truss also triggered formal dispute proceedings against Brussels for blocking Britain’s access to the EU’s Horizon Europe research program. And her government maintained Johnson’s refusal to implement checks on goods entering Northern Ireland from Great Britain, causing deep irritation in Brussels.

    But despite the noisy backdrop, tentative contact with Brussels quietly resumed in September, with officials on both sides trying to rebuild trust. Truss, however, soon became “very disillusioned by the lack of pragmatism from the EU,” one of her former aides said.

    “The negotiations were always about political will, not technical substance — and for whatever reason, the political will to compromise from the Commission was never there when Liz, [ex-negotiator David] Frost, Boris were leading things,” they said.

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    Former British Prime Minister Liz Truss announces her resignation outside 10 Downing Street in central London on October 20, 2022 | Daniel Leal/AFP via Getty Images

    Truss, of course, would not be leading things for long. An extraordinary meltdown of the financial markets precipitated her own resignation in late October, after just six weeks in office. Political instability in Westminster once again threatened to derail progress.

    But Sunak’s arrival in No. 10 Downing Street — amid warnings of a looming U.K. recession — gave new impetus to the talks. An EU official said the mood music improved further, and that discussions with London became “much more constructive” as a result.

    David Lidington, a former deputy to ex-PM Theresa May who played a key role in previous Brexit negotiations, describes Sunak as a “globalist” rather than an “ultra-nationalist,” who believes Britain ought to have “a sensible, friendly and grown-up relationship” with Brussels outside the EU.

    During his time as chancellor, Sunak was seen as a moderating influence on his fellow Brexiteer Cabinet colleagues, several of whom seemed happy to rush gung-ho toward a trade war with the EU.

    “Rishi has always thought of the protocol row as a nuisance, an issue he wanted to get dealt with,” the former government adviser first quoted said.

    One British official suggested the new prime minister’s reputation for pragmatism gave the U.K. negotiating team “an opportunity to start again.”

    Sunak’s slow decision-making and painstaking attention to detail — the subject of much criticism in Whitehall — proved useful in calming EU jitters about the new regime, they added.

    “When he came in, it wasn’t just the calming down of the markets. It was everyone across Europe and in the U.S. thinking ‘OK, they’re done going through their crazy stage,’” the same official said. “It’s the time he takes with everything, the general steadiness.”

    EU leaders “have watched him closely, they listened to what he said, and they have been prepared to trust him and see how things go,” Lidington noted.

    Global backdrop

    As months of chaos gave way to calm in London, the West was undergoing a seismic reorganization.

    Russia’s large-scale invasion of Ukraine triggered a flurry of coordinated work for EU and U.K. diplomats — including sanctions, military aid, reconstruction talks and anti-inflation packages. A sense began to emerge that it was in both sides’ common interest to get the Northern Ireland protocol row out of the way.

    “The war in Ukraine has completely changed the context over the last year,” an EU diplomat said.

    A second U.K. official agreed. “Suddenly we realized that the 2 percent of the EU border we’d been arguing about was nothing compared to the massive border on the other side of the EU, which Putin was threatening,” they said. “And suddenly there wasn’t any electoral benefit to keeping this row over Brexit going — either for us or for governments across the EU.”

    A quick glance at the electoral calendar made it clear 2023 offered the last opportunity to reach a deal in the near future, with elections looming for both the U.K. and EU parliaments the following year — effectively putting any talks on ice.

    “Rishi Sunak would have certainly been advised by his officials that come 2024, the EU is not going to be wanting to take any new significant initiatives,” Lidington said. “And we will be in election mode.”

    The upcoming 25th anniversary of the Belfast/Good Friday peace agreement on April 10 heaped further pressure on the U.K. negotiators, amid interest from U.S. President Joe Biden in visiting Europe to mark the occasion.

    “The anniversary was definitely playing on people’s minds,” the first U.K. official said. “Does [Sunak] really want to be the prime minister when there’s no government in Northern Ireland on the anniversary of the Belfast/Good Friday Agreement?”

    The pressure was ramped up further when Biden specifically raised the protocol in a meeting with Truss at the U.N. General Assembly in New York in late September, after which British officials said they expected the 25th anniversary to act as a “key decision point” on the dispute.

    The King and I

    Whitehall faced further pressure from another unlikely source — King Charles III, who was immediately planning a state visit to Paris within weeks of ascending the throne in September 2022. Truss had suggested delaying the visit until the protocol row was resolved, according to two European diplomats.

    The monarch is now expected to visit Paris and Berlin at the end of March — and although his role is strictly apolitical, few doubt he is taking a keen interest in proceedings. He has raised the protocol in recent conversations with European diplomats, showing a close engagement with the detail. 

    One former senior diplomat involved in several of the king’s visits said that Charles has long held “a private interest in Ireland, and has wanted to see if there was an appropriately helpful role he could play in improving relations [with the U.K].”

    By calling the deal the Windsor framework and presenting it at a press conference in front of Windsor Castle, one of the king’s residences, No. 10 lent Monday’s proceedings an unmistakable royal flavor.

    The king also welcomed von der Leyen for tea at the castle following the signing of the deal. A Commission spokesperson insisted their meeting was “separate” from the protocol discussion talks. Tory MPs were skeptical.

    Cleverly does it

    The British politician tasked with improving relations with Brussels was Foreign Secretary Cleverly, appointed by Truss last September. He immediately began exploring ways to rebuild trust with Commission Vice-President and Brexit point-man Maroš Šefčovič, the second U.K. official cited said.

    His first hurdle was a perception in Brussels that the British team had sabotaged previous talks by leaking key details to U.K. newspapers and hardline Tory Brexiteers for domestic political gain. As a result, U.K. officials made a conscious effort to keep negotiations tightly sealed, a No. 10 official said.

    “The relationship with Maroš improved massively when we agreed not to carry out a running commentary” on the content of the discussions, the second U.K. official added.

    This meant keeping key government ministers out of the loop, including Northern Ireland Minister Steve Baker, an arch-Brexiteer who had been brought back onto the frontbench by Truss.

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    British Foreign Secretary James Cleverly is welcomed by European Commission Vice-President Maroš Šefčovič ahead of a meeting at the EU headquarters in Brussels on February 17, 2023 | Kenzo Tribouillard/AFP via Getty Images

    The first U.K. official said Baker would have “felt the pain,” as he had little to offer his erstwhile backbench colleagues looking for guidance while negotiations progressed, “and that was a choice by No. 10.”

    Cleverly and Šefčovič “spent longer than people think just trying to build rapport,” the second U.K. official said, with Cleverly explaining the difficulties the protocol was raising in Northern Ireland and Šefčovič insistent that key economic sectors were in fact benefiting from the arrangement.

    Cleverly also worked at the bilateral relationship with German Foreign Minister Annalena Baerbock, while Sunak made efforts to improve ties with French President Emmanuel Macron, Lidington noted.

    A British diplomat based in Washington said Cleverly had provided “a breath of fresh air” after the “somewhat stiff” manner of his predecessors, Truss and the abrasive Dominic Raab.

    By the Conservative party conference in early October, the general mood among EU diplomats in attendance was one of expectation. And the Birmingham jamboree did not disappoint.

    Sorry is the hardest word

    Baker, who had once described himself as a “Brexit hard man,” stunned Dublin by formally apologizing to the people of Ireland for his past comments, just days before technical talks between the Commission and the U.K. government were due to resume.

    “I caused a great deal of inconvenience and pain and difficulty,” he said. “Some of our actions were not very respectful of Ireland’s legitimate interests. I want to put that right.”

    The apology was keenly welcomed in Dublin, where Micheál Martin, the Irish prime minister at the time, called it “honest and very, very helpful.”

    Irish diplomats based in the U.K. met Baker and other prominent figures from the European Research Group of Tory Euroskeptics at the party conference, where Baker spoke privately of his “humility” and his “resolve” to address the issues, a senior Irish diplomat said.

    “Resolve was the keyword,” the envoy said. “If Steve Baker had the resolve to work for a transformation of relationships between Ireland and the U.K., then we thought — there were tough talks to be had — but a sustainable deal was now a possibility.”

    There were other signs of rapprochement. Just a few hours after Baker’s earth-shattering apology, Truss confirmed her attendance at the inaugural meeting in Prague of the European Political Community, a new forum proposed by Macron open to both EU and non-EU countries.

    Sunak at the wheel

    The momentum snowballed under Sunak, who decided within weeks of becoming PM to halt the passage of the Northern Ireland Protocol Bill in the House of Lords, reiterating Britain’s preference for a negotiated settlement. In exchange, the Commission froze a host of infringement proceedings taking aim at the way the U.K. was handling the protocol. This created space for talks to proceed in a more cordial environment.

    An EU-U.K. agreement in early January allowed Brussels to start using a live information system detailing goods moving from Great Britain to Northern Ireland, seen as key to unlocking a wider agreement on physical checks under the protocol.

    The U.K. also agreed to conduct winter technical negotiations in Brussels, rather than alternating rounds between the EU capital and London, as was the case when Frost served as Britain’s chief negotiator.

    Trust continued to build. Suddenly the Commission was open to U.K. solutions such as the “Stormont brake,” a clause giving the Northern Ireland Assembly power of veto over key protocol machinations, which British officials did not believe Brussels would accept when they first pitched them.

    The Stormont brake was discussed “relatively early on,” a third U.K. official said. “Then we spent a huge amount of effort making sure nobody knew about it. It was kept the most secret of secret things.”

    Yet a second EU diplomat claimed the ideas in the deal were not groundbreaking and could have been struck “years ago” if Britain had a prime minister with enough political will to solve the dispute. “None of the solutions that have been found now is revolutionary,” they said.

    An ally of Johnson described the claim he was a block on progress as “total nonsense.”

    The ‘unholy trinity’

    Away from the media focus, a group of seasoned U.K. officials began to engage with their EU counterparts in earnest. But there was one (not so) new player in town.

    Tim Barrow, a former U.K. permanent representative to the EU armed with a peerless contact book, had been an active figure in rebuilding relations with the bloc since Truss appointed him national security adviser. He acquired a more prominent role in the protocol talks after Sunak dispatched him to Brussels in January 2023, hoping EU figures would see him as “almost one of them,” another adviser to Sunak said.  

    Ensconced in the EU capital, Barrow and his U.K. team of negotiators took over several meeting rooms in the basement of the U.K. embassy, while staffers were ordered to keep quiet about their presence.

    Besides his work on Northern Ireland trade, Barrow began to appear in meetings with EU representatives about other key issues creating friction in the EU-U.K. relationship, including discussions on migration alongside U.K. Home Secretary Suella Braverman.

    Barrow “positioned himself very well,” the first EU diplomat quoted above said. “He’s very close to the prime minister — everybody in Brussels and London knows he’s got his ear. He’s very knowledgeable while very political.”

    But other British officials insist Barrow’s presence was not central to driving through the deal. “He has been a figure, but not the only figure,” the U.K. adviser quoted above said. “It’s been a lot of people, actually, over quite a period of time.”

    When it came to the tough, detailed technical negotiations, the burden fell on the shoulders of Mark Davies — the head of the U.K. taskforce praised for his mastery of the protocol detail — and senior civil servant and former director of the Northern Ireland Office, Brendan Threlfall.

    The three formed an “unholy trinity,” as described by the first U.K. official, with each one bringing something to the table.

    Davies was “a classic civil servant, an unsung hero,” the official said, while Threlfall “has good connections, good understanding” and “Tim has met all the EU interlocutors over the years.”

    Sitting across the table, the EU team was led by Richard Szostak, a Londoner born to Polish parents and a determined Commission official with a great CV and an affinity for martial arts. His connection to von der Leyen was her deputy head of cabinet until recently, Stéphanie Riso, a former member of Brussels’ Brexit negotiating team who developed a reputation for competence on both sides of the debate. 

    Other senior figures at the U.K. Cabinet Office played key roles, including Cabinet Secretary Simon Case and senior official Sue Gray.

    The latter — a legendary Whitehall enforcer who adjudicated over Johnson’s “Partygate” scandal — has a longstanding connection to Northern Ireland, famously taking a career break in the late 1980s to run a pub in Newry, where she has family links. More recently, she spent two years overseeing the finance ministry.

    Gray has been spotted in Stormont at crunch points over the past six months as Northern Ireland grapples with the pain of the continued absence of an executive.

    Some predict Gray could yet play a further role, in courting the Democratic Unionist Party as the agreement moves forward in the weeks ahead.

    For U.K. and EU officials, the agreement struck with Brussels represented months of hard work — but for Sunak and his Cabinet colleagues, the hardest yards may yet lie ahead.

    This story was updated to clarify two parts of the sourcing.



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    ( With inputs from : www.politico.eu )

  • Sri Lanka’s only solution to economic crisis is turning to IMF, says Wickremesinghe

    Sri Lanka’s only solution to economic crisis is turning to IMF, says Wickremesinghe

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    Colombo: Sri Lankan President Ranil Wickremesinghe on Tuesday emphasised that seeking the IMF bailout package was the only option available to the debt-ridden country to overcome the ongoing economic crisis.

    “When a country goes bankrupt, it has to go to the International Monetary Fund. Apart from that, there is no other organisation in the world that provides aid when a country goes bankrupt,” Wickremesinghe said.

    Addressing a gathering in the central town of Kandy, he said that each nation that experienced an economic catastrophe recovered after engaging in talks with the IMF and cited the example of Greece which took 13 years to recover from the collapsed economy.

    “I have no hope of being President for 13 years,” Wickremesinghe said, amidst opposition to his hard economic reforms which had triggered utility rate hikes and increased personal taxes.

    “There is only one way to rebuild this collapsed economy. That is the International Monetary Fund. Different political parties are presenting different stories. I suggested to them to let me know if there is another way to resurrect the collapsed economy.

    “The IMF indicates that our tax revenue should be 15 per cent of the GDP as it was in 2019. So far it has gone down to 09 per cent,” he added.

    He said the IMF had assigned Sri Lanka 15 tasks to complete.

    “The IMF gave us until December 31 to implement it. But we couldn’t do it on that particular day. Then we made plans to get time until January 31. Even at that time, we were unable to complete those 15 points. Finally, the deadline was pushed back to February 15… All 15 tasks assigned to us have been completed. Now it is up to the IMF,” he added.

    Wickremesinghe acknowledged that delays over Chinese willingness to restructure Sri Lanka debt had caused problems.

    “This is being discussed further. The IMF also suggested that everyone should get on one platform and discuss. However as China is a world power, their procedure is different,” he said.

    He said he would meet the Chinese finance minister on February 23 in Bengaluru at the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting this week.

    “There, I hope to discuss the debt restructuring method of Sri Lanka with the Chinese Finance Minister,” he added.

    Wickremesinghe said if the IMF did not provide assistance, the island nation would have to return to its last year situation of unavailability of fuel and 12-hour power cuts.

    Sri Lanka was hit by an unprecedented financial crisis in 2022, the worst since its independence from Britain in 1948, due to a severe paucity of foreign exchange reserves, sparking political turmoil in the country which led to the ouster of the all-powerful Rajapaksa family.

    The IMF in September last year approved Sri Lanka a 2.9 billion dollar bailout package over 4 years pending Sri Lanka’s ability to restructure its debt with creditors — both bilateral and sovereign bond holders.

    With assurances from creditors, the 2.9 billion dollar facility could get the IMF board approval in March.

    The IMF facility would enable the island nation to obtain bridging finance from markets and other lending institutions such as the ADB and the World Bank.

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    #Sri #Lankas #solution #economic #crisis #turning #IMF #Wickremesinghe

    ( With inputs from www.siasat.com )

  • U.S. averts U.N. diplomatic crisis over Israel

    U.S. averts U.N. diplomatic crisis over Israel

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    On the Israeli side, that would mean a commitment to not expanding settlements until at least August, according to the diplomats.

    On the Palestinian side, the diplomats said it would mean a commitment until August not to pursue action against Israel at the U.N. and other international bodies such as the World Court, the International Criminal Court and the U.N. Human Rights Council.

    Instead of a resolution, the diplomats said the Security Council will adopt a weaker presidential statement along the lines of the resolution, probably on Monday. Presidential statements, which require support from all 15 council nations, become part of the council’s record but are not legally binding.

    The diplomats spoke on condition of anonymity because they were not authorized to discuss the highly sensitive negotiations.

    A veto of the settlements resolution would have been a political headache for President Joe Biden as he approaches the 2024 presidential election.

    Biden is struggling to balance his opposition to Israeli settlements and his support for a two-state resolution to the Israel-Palestinian conflict with moves to improve ties with the Palestinians that have wide backing among his progressive supporters.

    A veto would alienate U.N. member countries supportive of the Palestinians, like the United Arab Emirates, which was sponsoring the resolution in the Security Council, as the West seeks support for Ukraine in the war with Russia.

    The U.S. will be looking to the United Arab Emirates and other countries sympathetic to the Palestinians to vote in favor of a resolution in the 193-member General Assembly on Thursday condemning Russia for invading Ukraine and calling for a cessation of hostilities and the immediate withdrawal of all Russian forces.

    The deal was arrived at on Sunday after days of frantic talks by senior Biden administration officials with Palestinian, Israeli and UAE leaders. Diplomats said the intensive effort including Secretary of State Antony Blinken, U.S. Ambassador to the United Nations Linda Thomas-Greenfield, national security adviser Jake Sullivan, Sullivan’s deputy Brett McGurk, the top diplomat for the Middle East, Barbara Leaf, and special envoy for Palestinian affairs Hady Amr.

    The Palestinian push for a resolution came as Israel’s new right-wing government has reaffirmed its commitment to construct new settlements in the West Bank and expand its authority on land the Palestinians seek for a future state.

    Israel captured the West Bank, along with east Jerusalem and the Gaza Strip, in the 1967 Mideast war. The United Nations and most of the international community consider Israeli settlements illegal and an obstacle to ending the decades-old Israeli-Palestinian conflict. Some 700,000 Israeli settlers live in the West Bank and Israeli-annexed east Jerusalem.

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    #U.S #averts #U.N #diplomatic #crisis #Israel
    ( With inputs from : www.politico.com )

  • Russia envoy accuses US of fueling Ukraine war with ‘crimes against humanity’ charge

    Russia envoy accuses US of fueling Ukraine war with ‘crimes against humanity’ charge

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    Washington is trying to “demonize Russia” and “fuel the Ukrainian crisis” by accusing Moscow of crimes against humanity, Russian Ambassador to the U.S. Anatoly Antonov said on Sunday.

    U.S. Vice President Kamala Harris announced Saturday that Washington has formally determined that Russia is committing crimes against humanity in Ukraine, in an address at the Munich Security Conference in Germany.

    In a message on the social media network Telegram, Antonov said: “We consider such insinuations as an attempt, unprecedented in terms of its cynicism, to demonize Russia in the course of a hybrid war, unleashed against us. There is no doubt that the purpose of such attacks is to justify Washington’s own actions to fuel the Ukrainian crisis,” he said.

    Harris had said Russia is responsible for a “widespread and systematic attack” against Ukraine’s civilian population, committing war crimes — as the administration formally concluded last March — and illegal acts against non-combatants. She cited evidence of execution-style killings, rape, torture and forceful deportations.

    The Biden administration will continue to assist Ukraine in investigating these alleged crimes, she said, pledging to hold “to account” the perpetrators and “their superiors.”

    “Let us all agree: on behalf of all the victims, both known and unknown: justice must be served,” Harris added.

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    ( With inputs from : www.politico.eu )

  • Joe Biden: EU conservative hero

    Joe Biden: EU conservative hero

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    Joe Biden’s European friends may be miffed about his climate law.

    But the U.S. president’s America-first, subsidy-heavy approach has actually gained some grudging — and for a Democrat unlikely — admirers on the Continent: Europe’s conservatives.

    Within the center-right European People’s Party, the largest alliance of parties in the European Parliament, officials are smarting over why their own politicians aren’t taking a page from the Biden playbook.

    Their frustration is homing in on European Commission President Ursula von der Leyen — a putative conservative the EPP itself helped install. Officials fear they have let von der Leyen lead the party away from its pro-industry, regulation-slashing ideals, according to interviews with leading party figures.

    Biden’s law has now brought their grumbling to the surface.

    On Thursday, a wing of EPP lawmakers defected during a Parliament vote over whether to back von der Leyen’s planned response to Biden’s marquee green spending bill, the Inflation Reduction Act (IRA). Their concern: it doesn’t go far enough in championing European industries.

    Essentially, they want it to feel more like Biden’s plan.

    The IRA was an “embarrassment” for Europe, said Thanasis Bakolas, the EPP’s power broker and secretary general. The EU “had all these well-funded policies available. And then comes Biden with his IRA. And he introduces policies that are more efficient, more effective, more accessible to businesses and consumers.”

    A bitter inspiration

    European leaders were blindsided last summer when Biden signed the IRA into law.

    Since then, they have complained loudly that the U.S. subsidies for homegrown clean tech are a threat to their own industries. But for the EPP, ostensibly on the opposite side to Biden’s Democrats, the law is also serving as bitter inspiration.

    “It’s a little bit like in the fairy tale, that someone in the crowd — and this time it wasn’t the boy, it was the Americans — pretty much pointing the finger to the [European] Commission, and saying, ‘Oh, the king is naked?’” said Christian Ehler, a German European Parliament member from the EPP.

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    Viewed from bureaucratic, free-trading Brussels, Biden’s climate policy looks more sleek, geopolitically muscular — and, notably for the EPP, more appealing to voters on the right than anything actually coming out of the EPP-led Commission | Oliver Contreras/Getty Images

    Under the EU’s centerpiece climate policy, the European Green Deal, the European Commission, the EU’s policy-making executive arm, has doggedly introduced law after law aimed at squeezing polluters from every angle using tighter regulations or carbon pricing. The goal is to zero out the bloc’s net greenhouse gas emissions by 2050.

    Biden’s IRA approaches the same goal by different means. It is laden with voter- and industry-friendly tax breaks and made-in-America requirements. Viewed from bureaucratic, free-trading Brussels, Biden’s climate policy looks more sleek, geopolitically muscular — and, notably for the EPP, more appealing to voters on the right than anything actually coming out of the EPP-led Commission.

    For some, the sense of betrayal isn’t directed at Washington, but inward.

    “We learned that we lost track for the last two years on the deal part of the Green Deal,” said Ehler, who is using his seat on Parliament’s powerful Committee on Industry, Research and Energy to push for fewer climate burdens on industry. “We are in the midst of the super regulation.”

    The irony is that Biden and the Democrats probably wouldn’t have chosen this path were it not for Republicans’ decades-long refusal to move any form of climate regulation through Congress.

    The IRA was a product of political necessity, shaped to suit independent-minded Democratic senators such as Joe Manchin of coal-heavy West Virginia. If Biden and his party had their druthers, Biden’s climate policy might have looked far more like the Brussels model.

    Let’s get political

    As party boss, Bakolas is preparing the platform on which the EPP — a pan-European umbrella group of 81 center-right parties — will campaign for the 2024 EU elections.

    He is also flirting with an alliance with the far right, meaning the center-right and center-left consensus that has dominated climate policy in Brussels could break up. Bakolas advocates “a more political approach.”

    “We need to do the same [as the U.S.], with the same tenacity and determination,” he said.

    One big problem: It’s hard for the European Union, which doesn’t control tax policy, to match the political eye-candy of offering cashback for electric Hummers (something Americans can now claim on their taxes).

    “Can Europe, this institutional arrangement in Brussels … act as effortlessly and seamlessly as the American administration? No, because it’s a difficult exercise for Europe to reach a decision … but it’s an exercise we need to do,” said Bakolas.

    GettyImages 1246737828
    Within the center-right European People’s Party, the largest alliance of parties in the European Parliament, officials are smarting over why their own politicians aren’t taking a page from the Biden playbook | Kenzo Tribouillard/AFP via Getty Images

    In other words, the EPP is looking to emulate Biden’s law — at least in spirit, if not in legalese.

    The conservative thinking is beginning to coalesce into a few main themes: slowing down green regulation they feel burden industry; using sector-specific programs to help companies reinvest their profits into cleaning up their businesses; and slashing red tape they say slows already clean industries from getting on with the job.

    EPP lawmaker Peter Liese said he had been “desperately calling” for these red-tape-slashing measures. He was glad to see some in von der Leyen’s contested IRA response plan. But Liese and the EPP want more.

    “We can have an answer of the two crises, the two challenges, that we have: the climate crisis and challenge for our economy, including the IRA,” said Liese.

    Green groups and left-wing lawmakers argue the EPP is simply using the IRA and Europe’s broader economic woes as a smokescreen to cover a broad retreat from the Green Deal. In recent months the party has blocked, or threatened to block, a host of green regulations proposed by the Commission.

    “This is like trying to put on the ballroom shoes of your grandfather and trying to do a 100-meter sprint,” Green MEP Anna Cavazzini told Parliament on Wednesday.

    Bakolas rejected that.

    He said the party had finally woken up to the need to set a climate agenda that better reflected its own, center-right, free-market ideals.

    “What the IRA did,” he said, “is to ring an alarm bell.”



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    ( With inputs from : www.politico.eu )

  • China talks ‘peace,’ woos Europe and trashes Biden in Munich

    China talks ‘peace,’ woos Europe and trashes Biden in Munich

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    MUNICH — China is trying to drive a fresh wedge between Europe and the United States as Russia’s invasion of Ukraine trudges past its one-year mark.

    Such was the motif of China’s newly promoted foreign policy chief Wang Yi when he broke the news at the Munich Security Conference on Saturday that President Xi Jinping would soon present a “peace proposal” to resolve what Beijing calls a conflict — not a war — between Moscow and Kyiv. And he pointedly urged his European audience to get on board and shun the Americans.

    In a major speech, Wang appealed specifically to the European leaders gathered in the room.

    “We need to think calmly, especially our friends in Europe, about what efforts should be made to stop the warfare; what framework should there be to bring lasting peace to Europe; what role should Europe play to manifest its strategic autonomy,” said Wang, who will continue his Europe tour with a stop in Moscow.

    In contrast, Wang launched a vociferous attack on “weak” Washington’s “near-hysterical” reaction to Chinese balloons over U.S. airspace, portraying the country as warmongering.

    “Some forces might not want to see peace talks to materialize,” he said, widely interpreted as a reference to the U.S. “They don’t care about the life and death of Ukrainians, [nor] the harms on Europe. They might have strategic goals larger than Ukraine itself. This warfare must not continue.”

    Yet at the conference, Europe showed no signs of distancing itself from the U.S. nor pulling back on military support for Ukraine. The once-hesitant German Chancellor Olaf Scholz urged Europe to give Ukraine even more modern tanks. And French President Emmanuel Macron shot down the idea of immediate peace talks with the Kremlin.

    And, predictably, there was widespread skepticism that China’s idea of “peace” will match that of Europe.

    “China has not been able to condemn the invasion,” NATO Secretary-General Jens Stoltenberg told a group of reporters. Beijing’s peace plan, he added, “is quite vague.” Peace, the NATO chief emphasized, is only possible if Russia respects Ukraine’s sovereignty.

    Europe watches with caution

    Wang’s overtures illustrate the delicate dance China has been trying to pull off since the war began.

    Keen to ensure Russia is not weakened in the long run, Beijing has offered Vladimir Putin much-needed diplomatic support, while steering clear of any direct military assistance that would attract Western sanctions against its economic and trade relations with the world.

    GettyImages 1247252702
    Ukrainian Foreign Minister Dmitro Kuleba is expected to hold a bilateral meeting with Wang while in Munich | Johannes Simon/Getty Images

    “We will put forward China’s position on the political settlement on the Ukraine crisis, and stay firm on the side of peace and dialogue,” Wang said. “We do not add fuel to the fire, and we are against reaping benefit from this crisis.”

    According to Italy’s Foreign Minister Antonio Tajani, who met Wang earlier this week, Xi will make his “peace proposal” on the first anniversary of the war, which is Friday.

    Ukrainian Foreign Minister Dmitro Kuleba is expected to hold a bilateral meeting with Wang while in Munich. He said he hoped to have a “frank” conversation with the Beijing envoy.

    “We believe that compliance with the principle of territorial integrity is China’s fundamental interest in the international arena,” Kuleba told journalists in Munich. “And that commitment to the observance and protection of this principle is a driving force for China, greater than other arguments offered by Ukraine, the United States, or any other country.”

    EU foreign policy chief Josep Borrell is also expected to meet Wang later on Saturday.

    Many in Munich were wary of the upcoming Chinese plan.

    German Foreign Minister Annalena Baerbock welcomed China’s effort to use its influence to foster peace but told reporters she had “talked intensively” with Wang during a bilateral meeting on Friday about “what a just peace means: not rewarding the attacker, the aggressor, but standing up for international law and for those who have been attacked.”

    “A just peace,” she added, “presupposes that the party that has violated territorial integrity — meaning Russia — withdraws its troops from the occupied country.”

    One reason for Europe’s concerns is the Chinese peace plan could undermine an effort at the United Nations to rally support for a resolution condemning Russia’s invasion of Ukraine, which will be on the U.N.’s General Assembly agenda next week, according to three European officials and diplomats.

    Taiwan issue stokes up US-China tension

    If China was keen to talk about peace in Ukraine, it’s more reluctant to do so in a case closer to home.

    When Wolfgang Ischinger, the veteran German diplomat behind the conference, asked Wang if he could reassure the audience Beijing was not planning an imminent military escalation against Taiwan, the Chinese envoy was non-committal.

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    Nato Secretary-General Jens Stoltenberg said “what is happening in Europe today could happen in east Asia tomorrow” | Johannes Simon/Getty Images

    “Let me assure the audience that Taiwan is part of Chinese territory. It has never been a country and it will never be a country in the future,” Wang said.

    The worry over Taiwan resonated in a speech from NATO Secretary-General Jens Stoltenberg, who said “what is happening in Europe today could happen in east Asia tomorrow.” Reminding the audience of the painful experience of relying on Russia’s energy supply, he said: “We should not make the same mistakes with China and other authoritarian regimes.”

    But China’s most forceful attack was reserved for the U.S. Calling its decision to shoot down Chinese and other balloons “absurd” and “near-hysterical,” Wang said: “It does not show the U.S. is strong; on the contrary, it shows it is weak.

    Wang also amplified the message in other bilateral meetings, including one with Pakistani Foreign Minister Bilawal Bhutto Zardari. “U.S. bias and ignorance against China has reached a ridiculous level,” he said. “The U.S. … has to stop this kind of absurd nonsense out of domestic political needs.”

    It remains unclear if Wang will hold a meeting with U.S. Secretary of State Antony Blinken while in Germany, as has been discussed.

    Hans von der Burchard and Lili Bayer reported from Munich, and Stuart Lau reported from Brussels.



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    ( With inputs from : www.politico.eu )

  • Why World Bank head’s resignation is good news for climate crisis fight

    Why World Bank head’s resignation is good news for climate crisis fight

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    The resignation of David Malpass, president of the World Bank, was greeted with relief and joy on Wednesday evening by climate experts and campaigners, who said it should open up a new era for financing the global shift to a low-carbon economy.

    Malpass, who was appointed to the role by the then US president Donald Trump in 2019, had been facing mounting calls to step down after a series of missteps, including lacklustre plans for green investment, and appearing to deny climate science when confronted by a journalist.

    In a statement, Malpass said the World Bank Group, which provides investment and finance to alleviate poverty and build services and infrastructure in developing countries, was “fundamentally strong, financially sustainable, and well-positioned to increase its development impact in the face of urgent global crises” and that he would “pursue new challenges”.

    His departure, which will take place on 30 June to give time to find a successor, should herald sweeping reform of the bank and its sister institutions to focus much more on the climate crisis, experts said. Al Gore, former US vice-president, said: “Humankind needs the head of the World Bank to fully recognise and creatively respond to the civilisation-threatening danger posed by the climate crisis. I am very happy to hear that new leadership is coming. This must be the first step towards true reform that places the climate crisis at the centre of the bank’s work.”

    Developing countries have grown increasingly frustrated with the paucity of World Bank funds available for their pursuit of clean energy and to help them adapt to the impacts of extreme weather. Donor nations were also grumbling and pushing for reform, impatient with the bank’s slow progress in delivering a comprehensive climate plan.

    Jake Schmidt, strategic director for climate at the US Natural Resources Defense Council, said: “Malpass’s departure allows the World Bank to hit the reset button and finally commit to the leadership needed in the climate finance space. The world needs more and better climate finance to meet the scale of the climate crisis and the needs of developing countries. With new leadership, the World Bank now needs to rapidly evolve, as a growing chorus of countries and experts have been urging.”

    Calls for Malpass’s resignation gathered strength after an incident last September, on the fringes of the UN general assembly, when a New York Times journalist asked him on stage to confirm his acceptance of climate science. He fumbled for words and refused to validate climate science. Although he later attempted to clarify his position and insisted he was not a climate denier, the impression had been clearly given and his leadership irrevocably damaged.

    Then at the Cop27 UN climate summit last November, arriving late after the plane he was on was hit by lightning, Malpass flew into another storm. Mia Mottley, prime minister of Barbados, spearheaded a carefully coordinated attempt to gather international backing for a new global system of climate finance, with a reformed World Bank at its centre.

    The World Bank and its subsidiaries were set up under the Bretton Woods framework, developed by the allies of the second world war in 1944. Mottley told world leaders: “Institutions crafted in the mid-20th century cannot be effective in the third decade of the 21st century. They do not describe 21st-century issues. Climate justice was not an issue then [when the bank was set up].”

    Some of the criticisms of the World Bank are that its climate spending is too small, too scattered, uncoordinated and badly targeted, and hard to access by the poorest countries. The bank has also continued to fund fossil fuel projects, despite claiming to phase it out. According to data published last year, the bank has provided $15bn to fossil fuel projects since the Paris agreement was signed in 2015.

    Mottley, whose country is one of the many small island states at gravest risk from the climate crisis, was cheered and feted at Cop27, and country after country came forward to support her plans. World leaders including France’s Emmanuel Macron, Germany’s Olaf Scholtz, Rishi Sunak of the UK and the US climate envoy John Kerry discussed what reform could look like.

    Malpass, when he finally arrived, could only reiterate that his leadership was delivering a record $32bn (£26bn) for climate finance – sums derided as falling far short of the hundreds of billions and even trillions needed for the green transition.

    Yet reform of the World Bank need not involve vast new expenditure by developed country donors, according to its former chief economist Nicholas Stern. He estimates that because of the structure of the bank’s capitalisation, investment of about $9bn from developed countries over several years could enable it to raise about half of the $2.4tn a year he calculates will be required in total climate finance by 2030, to put the world on a low-carbon path.

    “These sums are not scary,” Lord Stern told the Guardian at Cop27. “They are about 5% more than the current investment [much of which goes to fossil fuels and high-carbon infrastructure]. We could, if we wanted to, get started quickly.”

    Mottley is expected to set out her proposals, known as the Bridgetown Agenda, in some detail in the coming weeks, to be discussed by world governments before the spring meetings of the World Bank Group in April. Then in late June, Macron will hold a climate finance summit in Paris, by which time – if nations can keep up their constructive spirit – the new plans may be ready to start putting into action.

    By then, a new World Bank president should be ready to take over. Since the Bretton Woods institutions were set up, that appointment has always been made by the US president, while European leaders choose the head of the International Monetary Fund. Some developing countries would like to see that convention reformed, too, and have a global competition to find a new president – but that might be a step too far for Malpass’s successor.

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    ( With inputs from : www.theguardian.com )

  • WHO: Turkey, Syria earthquakes ‘worst natural disaster’ in European region in a century

    WHO: Turkey, Syria earthquakes ‘worst natural disaster’ in European region in a century

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    The powerful earthquakes that struck central Turkey and northwest Syria just over a week ago are the “worst natural disaster in the WHO European Region for a century,” said Hans Kluge, the World Health Organization’s regional director for Europe.

    “We are still learning about its magnitude. Its true cost is not known yet,” Kluge said during a press briefing today.

    The WHO’s European Region includes 53 European and Central Asian countries, including Turkey.

    More than 31,000 people are confirmed dead in Turkey, and nearly 5,000 lost their lives across the border in Syria, he said, adding that the figures are expected to rise further. He added that 26 million people across both countries are in need of humanitarian assistance.

    The WHO launched a $43 million appeal to support the earthquake response, with likely more to come.

    “I expect this to at least double over the coming days as we get a better assessment of the massive scale of this crisis and the needs,” Kluge said.

    With water and sanitation facilities being hit, concerns are mounting over health issues, including the spread of infectious diseases. Health care facilities have also been gravely damaged.

    “According to the Turkish authorities, an estimated 80,000 people are in hospital, placing a huge strain on the health system, itself badly damaged by the disaster,” Kluge said.

    “We have initiated the largest deployment of Emergency Medical Teams in the WHO European Region in our 75-year history,” he added. Their goal is to support the damaged medical facilities, focusing on the high number of trauma patients and those with catastrophic injuries.



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    ( With inputs from : www.politico.eu )

  • Ahead of Ramzan, tea crisis looms in Pakistan as prices surge

    Ahead of Ramzan, tea crisis looms in Pakistan as prices surge

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    Karachi: Ahead of Ramazan, the price of black tea (loose) in Pakistan has swelled to Rs 1,600 per kg from Rs 1,100 in the last 15 days as around 250 containers are still stuck at the port that arrived from late December 2022 to early January, local media reported.

    A retailer said a leading brand has raised the price of 170-gram Danedar and Elaichi packs to Rs320 and Rs350 from Rs 290. The 900 and 420-gram packs now cost Rs 1,480 and Rs 720 as against Rs 1,350 and Rs 550. Other packers are set to follow suit, Dawn reported.

    Zeeshan Maqsood, Convener Standing Committee of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tea, said that imports are currently under crisis which may lead to huge shortages in March, Dawn reported.

    He said banks say they have instructions from the State Bank of Pakistan (SBP) to release documents on 180-day defer contracts or 180-day letters of credit (LCs).

    He added that the situation is getting worse because if anyone gets these containers released on 180-day deferred payment then how he would calculate the cost of imported tea as nobody knows what would be the dollar rate after six months on the interbank market, Dawn reported.

    Zeeshan, who is also an executive member of the Pakistan Tea Association (PTA), said the banks are not opening LCs saying they do not have any instructions from the SBP for new contracts.

    He feared that tea price may hit Rs 2,500 per kg in Ramazan in case stuck-up consignments were not released, Dawn reported.

    As a result, the welfare associations may not be able to distribute tea in ration bags due to shortage and high cost, he added.

    Zeeshan suggested that Pakistan should sign a Prefrential Trade Agreement (PTA) with Kenya. “We import 90 per cent of Kenyan tea from a weekly auction in Mombasa where all African Origin tea are sold.”

    Kenya is the gateway to Africa connecting seven landlocked countries. Pakistan imports tea worth around $500m annually from Kenya and exports only $250m of different items, Dawn reported.

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    ( With inputs from www.siasat.com )

  • EU to launch platform to fight Russian, Chinese disinformation

    EU to launch platform to fight Russian, Chinese disinformation

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    The European Union will launch a new platform to counter disinformation campaigns by Russia and China amid growing worries, EU foreign affairs chief Josep Borrell said today.

    A so-called Information Sharing and Analysis Center within the EU’s foreign services —the European External Action Service (EEAS) — will seek to track information manipulation by foreign actors and coordinate with the 27 EU countries and the wider community of NGOs.

    “We need to understand how these disinformation campaigns are organized … to identify the actors of the manipulation,” said Borrell.

    One EEAS official said it would be a decentralized platform to exchange information in real-time with NGOs, countries and cybersecurity agencies, enabling better understanding of emerging disinformation threats and narratives and quicker action to tackle such problems.

    Almost a year after Russia’s invasion of Ukraine, the EU continues to fend off Russian attempts to manipulate and distort information about the war. Kremlin-led propaganda seeking to blame the EU for a global food crisis due to its sanctions has also spread to countries in Africa and the Middle East.

    Borrell also warned of a “new wave” of disinformation of fabricated images, videos and websites posing as media outlets spreading “five times the speed of light across social networks and messaging services.”

    The EU’s existing disinformation unit, the Stratcom division, in a first-ever report, noted that most of the foreign information manipulation in 2022 had centered on narratives supporting the Russian invasion of Ukraine. Russian and Chinese diplomatic channels were particularly involved.



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    ( With inputs from : www.politico.eu )