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Europeans Goodbye?

Michael Akerib

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‘Demography is destiny.’ Ben Wattenberg and Richard M. Scammon

In 1825 the world’s population reached, for the first time, the figure of 1 billion with a doubling of the population 100 years later and on to 5.3 billion in 1990. It stands today at 7.5 billion.

A demographic transition is taking place worldwide but at different rates. Seven per cent of the world’s population is over 65, and this is unevenly spread, with. Africa has the world’s youngest population, with Europe and Japan harboring the smallest number of children.

By 2050, the world’s population is expected to number 9.5 billion, assuming present trends continue, at which time the population of the developing countries will be 6 times larger than that of the developed countries due to higher fertility rates. The increase in the world’s population will be identical to the number of people on the entire planet back in 1950.

In Africa, some countries will see their population triple, requiring the building, each week, of a town of a million inhabitants.

On the other hand, in East Asia, the birth rate is collapsing. China and Japan have among the world’s lowest birth rates – Hong Kong’s is below 1 – and in Japan 14% of the population is over 65 years old. At the present fertility rate of 1.25 child per woman, the country’s population will be of only 60 million in 2100.

China’s population is also forecast to decrease to less than 20% of the world’s population but the country will have 25% of the world’s senior citizens.

A sustained fertility rate of 1.3 means that, over a century, a country would lose 75% of its population.

Europe’s declining birth rates

Over the past three centuries, Europe’s population multiplied fivefold and if you include the population of European origin that immigrated worldwide, we are led into a sevenfold increase.

The main reason for this increase was due to a reduction of mortality. At the beginning, this decline was gradual and ascribed to a more productive agriculture, trade that enriched European nations, the industrial revolution, advances in medical knowledge, better nutrition, a more relaxed lifestyle and better public order. Starting in the nineteenth century, a drastic reduction of mortality of infectious and contagious disease to nearly zero increased life expectancy at birth from 35 years to 70 years.

Other contributing factors for this increase were the decline in female fertility as women entered the professional world in ever larger numbers. They also had easy access to birth control methods.

The number of working-age adults increases and the economy grows as not only the economic contribution of the population increases, but also the social contributions decrease. This is called the ‘demographic dividend’. It is, however, at this stage that the state must undertake productive investments such as in education and health infrastructure in particular to support old age.

Birth rates increased in the last quarter of the nineteenth century, but remained below that of other parts of the world. European population was always constrained by the use of traditional birth control methods, a low number of extra-marital births, a late marriage age and a fairly large percentage of unmarried persons.

Low birth rates are a worldwide trend, and if every woman will only have a single child, the world’s population in 2075 will be of 1.6 billion. Europe, in particular, is suffering, and is forecast to continue to suffer of depopulation. Its present population of 740 million is expected to drop to 707 million by 2050 and of 646 million by 2100.

For a population to remain stable, the total fertility rate – the number of children a woman will have in her lifetime should be of 2.1. In eastern and southern Europe, the figure is presently of 1.3, and in some areas has dwindled to 1. In Germany, nearly 30% of the women born in 1960 have not had any children. Russia is losing half its population every 40 years and its underpopulated large land mass could be seen as an invitation by China.

When birth rates eventually decreased, they brought about a new vision of the family, with women succeeding in roles other than that of wives and mothers and with reduced coital rates. Fertility was increasingly controlled by females rather than males.

Urbanization played a leading role in the drop in birth rates. The smaller family became the reference in Europe first, and then spread to many other countries. Urban couples did not have the social pressure that rural families had, of having children rapidly becoming economic contributors.

In an urban environment, individual success is important and family ties lose their primary role as education, health and employment is ensured by institutions other than the family. Children become a cost rather than an asset.

This led to a demographic transition of low birth rates and long life expectancy which helped the population of Europe and of the world grow.

The transition normally starts with low child mortality; children being the first beneficiaries of increased survival. In Europe, today, nearly all births occur in a hospital environment with a large number of precautions taken including for premature children.

In Europe, the countries that were rich at the end of the Second World War, such as in Scandinavia and North-West Europe, saw the number of traditional families decline as women had satisfying employment opportunities and individualism was on the rise. Everything was postponed, from leaving school to dying. Postponing births eventually results in women being too old to be pregnant.

Professional women tend to cheat more, divorce more often, have fewer children, and more often than non-professional women feel sorry of having married and having had children.

Women concentrating on their careers find the stress of caring for children – which, in today’s society takes an increasing amount of parents’ time as well as a change in the relationship between parents – a burden, particularly if the household work – usually considered as a low-level type of work – is not shared with the male parent. Women have a major decision to make as to whether they pursue a career, marry or build a family. They will select cohabitation as against marriage if they believe that being married will hinder their possibilities of career advancement. Investments in child care infrastructure and a balance between life and work lead to increased birth rates. Women must have the possibility of returning to their jobs after a pregnancy and maternal leave.

Women pursuing careers may study for long periods of time and therefore they will have their first child at an advanced age, thus limiting the number of children they will have. Mothers having their children at a more mature age translates into older grandmothers, if they would still be alive, who may not be able to assist their daughters or grand-daughters. The non-availability of this care may reduce even further the propensity of women to have children.

Increasingly they may not want to mate, preferring to enrich their lives financially and intellectually, or will select low-fertility partners. They may find there is a lack of desirable partners. Pressure put on by media as the looks of women, slim and a canon of beauty, may also lead women to opt for a slimmer look to the detriment of family formation or even partnership and sex with a man.

In the Mediterranean countries where family values were supported by culture and governments, the transition took place later. In Southern Europe, as children stay with their parents until marriage, by the time they leave home, they are at a more advanced age than adults from Northern Europe, and therefore are more likely to have fewer children. They are also less likely to take financial risks by taking responsibility for a family. This has been called the ‘delay syndrome.’

In Central and Eastern Europe where communism collapsed and with it went the allowances and a large number of free services, families hesitate to assume the burden of a child.

As societal pressure is determinant in defining the number of children a couple will have, a smaller family became the social norm. It fulfilled in a minimalistic manner the social pressure to have children.

One of the most important elements in social pressure is religion and all religions encourage a strong birth rate. Hence, in industrial societies, as religiousness wanes, so does the size of families.

A theory suggests that as children survive, there is no need for families to have ‘replacement’ children in case of death and the child become the child-king. Another theory proposes that since children no longer look after their parents, they do not need to bear the cost of bearing them. A third theory proposes than in resource allocation, families today prefer spending their funds on matters other than raising children which they will have only if the benefits outweigh the costs. The benefits are essentially emotional and a response to societal demands including that of creating new networks such as with other school parents and later in time with the in-laws. The costs have their origin in education, the purchase of food and other products, and possible tensions between the parents as the fathers concentrate on their professional activity to create wealth for their family, which often translates in absences from the family.

Job instability has also had a negative impact on the willingness of couples to start a family.

Women’s libido appears to be on the wane and men’s sperm count is decreasing and the spermatozoids are less active probably due to the chemicals absorbed in the diet. Obesity in both men and women also affects their fertility.

The large number of leisure activities easily available and the ideas that freedom and personal development are essential to a happy, productive life are major distractors and inhibitors to starting a family. The ubiquitous nature of erotic and pornographic images leads men to view their companions as exclusively a sex image and not a partner with whom to establish a family. At the other end of the scale an ever increasing number of men have opted out of sex altogether.

Education, in turn, impacts fertility in a number of ways. It allows reaching a better status and material conditions, it improves the ability of women to select the right partner who has the same level of education and may also be reluctant to have a large family, and it leads to better informed women and therefore larger use of contraceptives, and increases the opportunity costs of childbearing.

Financial issues are also a hindrance to starting or expanding a family. Educated couples may also prefer to concentrate their wealth, during their lifetime or through inheritance, on a single child.

Increasingly, in an unstable world, would-be parents, particularly younger couples, are afraid of conceiving children in what could be a very different and dangerous world.

The availability of contraceptives and the legalization of abortion have also been contributing factors. They not only enabled women to postpone pregnancies but also sharply reduced unwanted pregnancies.

In Southern Europe, as children stay with their parents until marriage, by the time they leave home, they are at a more advanced age than adults from Northern Europe, and therefore are more likely to have fewer children. They are also less likely to take financial risks by taking responsibility for a family. This has been called the ‘delay syndrome.

The one population segment that is growing in Europe is the Muslim population that, even though it averages only 5% of the population, with the notable exception of Russia where it reaches 15% and France with 10%, may eventually bring about major changes in society as their culture is essentially very difficult from the permissive and liberal European culture. if Muslims maintain a high fertility rate, we could witness a repeat of what is believed to have taken place with the Christians in the early days of the church in Rome, with a small group rapidly gaining in importance and leading the emperor himself to convert.

However, the fertility of Moslems in Europe is declining rapidly, adjusting itself to that of the native European population, and thus showing that immigration is not a viable alternative to stop population decline. Migration does, however, contribute to replace an ageing workforce.

Nearly 50 million migrants will have to be admitted to the European Union by 2050 for the population to remain stable. For the retirement benefits to be maintained at their present level of 4 active persons per pensioner, the figure for migrants is even higher, reaching 13 million a year. Presently there are 11 million migrants in Europe and an unknown number of illegals.

There are other ways through which this decline could be halted. One of them is through the entrance of candidate countries which, like Turkey, have a growing demography.

As birth rates decline, due to personal choices, both the number of children and the population, over time, shrinks. The working age population decreases and fertility declines even further. Eventually there is the third transition period with all age segments of the population declining.

An ageing society

In the world today, for the first time in human history, old people outnumber the young. In developed countries, 20% of the population is older than 60. Worldwide, 1% of the population is over 80 and, being the fastest growing age group, is due to reach 4% by 2050.

Since the middle of the 19th century, life expectancy has increased by 3 months every year, leading to the forecast that by 2060, it will have reached 100 years and possibly even higher if life-extension drugs or technologies are developed.

Europe has the world’s oldest population, with 22% being over 60, and 1% being older than 80, this last figure is expected to reach 4% by 2050.

Women still have a longer life expectancy than men, but the difference is narrowing and may not be sustainable over the long term. Smoking by women, together with the adoption of social habits that used to be reserved to men, is believed to be the major culprit in allowing this difference to narrow.

While the average sex ratio at birth favors males by approximately 105 boys to 100 girls, the ratio reverses itself with age as women have a longer life expectancy than men. For the population over 60, the figures are of 82 men for 100 women and decreases to 55 men for 100 women at age 80. The ratio at these older ages is even lower in Europe with 69 men per 100 women at the age of 60, and 42 men per 100 women at the age of 80. One of the reasons for the difference between Europe and the rest of the world is the large number of young men who died during the Second World War.

Explanations for the longer life expectancy abound. One of them is that the present generation that is retiring is the first to have known both antibiotics and vaccines. They also received a better nutrition as food prices decreased.

Economic and political issues

All the models indicate that economic growth can only take place if there is demographic growth.

Several countries have introduced pro-natal policies such as the financing of day-care centers, fiscal advantages, payments at birth, etc. Research has shown that these policies incite families to have children earlier, but not to have more children.

Older persons are conservative and risk-averse. Therefore it is more than likely that entrepreneurial actions will decrease. Savings will also be on the decrease and lead to higher interest rates increasing the cost of investments. Inheritances, except for the wealthy, will be paltry, leading the younger generations to have reduced wealth.

Pensions and health care costs will soar as the number of people gainfully employed shrinks compared to the number of elderly retired. The increase in the pension and health care budget for France, for instance, is set to increase by 13% and reach five times what the country spends on defense.

Health care for older people is an expensive undertaking, particularly in the treatment of terminal diseases such as the setting of implants and cancer, both of which are a common occurrence on people over 65. A solution to curb these rising costs is to reduce reimbursements or increase insurance premiums or taxes but there is a limit to the acceptance by the tax payer of new increases. Another option is a strict limit set by the government on prices of medications and hospital equipment as is the case in Japan.

As the workforce will decrease, employment of older people may be encouraged by governments through the removal of social contributions and other social payments from corporations, through investments in lifelong learning and by applying penalties on corporations discriminating on the basis of age.

On the positive side, however, new opportunities for employment and for entrepreneurs will be created by the so-called silver economy. These relate to new products and employment in areas as diverse as health care, assisted domestic living, education, travel, spas, etc.

However, even if a number of these urgent measures are applied, the relative importance of Europe in the world will no doubt diminish.

Another action European governments could take to help slow population decline, is to reduce the number of preventable deaths due to alcoholism, car accidents, suicide and smoking for persons under 65 years of age.

Forecasts

Forecasting not being an exact science, there are several forecasts as to the future population of the world and of Europe.

One suggests that future fertility rates will vary, depending on the country, between 1.35 to 2.35 children per woman, leading to a world population in 2030 of between 7.7 and 10.6 billion.

By 2050, Asia’s population will be of over 5 billion and that of Africa nearly 2 billion. India will be the most populated country with 1.4 billion inhabitants.

The world’s population of over 60 will double to 22% of the total population by 2050 and will be larger than the number of children and in the developed countries will be twice the number of children.

Europe’s population is expected to drop by 7 million between now and 2050 and it will only represent 7% of the world’s population in spite of the fact that the populations of France and Great Britain are expected to continue to grow. The countries with the sharpest growth will be Romania and Croatia.

The European continent appears to be moving to an empty land populated mainly by older persons who will sink into poverty as the number of working people decreases. Should large waves of immigrants or the introduction into the EU of Turkey be allowed replace the existing population, European culture will disappear.

Goodbye Europeans, Farewell.

Europe

U.S. President Trump to meet Bulgaria’s Prime Minister at the White House: What to expect?

Iveta Cherneva

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Next Monday, 25 November, President Trump will welcome Bulgarian Prime Minister Borissov at the White House for a bilateral meeting.

This is not the first White House visit for Bulgaria’s Prime Minister Boyko Borissov who previously met President Obama at the White House in 2012.

The White House press secretary has announced that Trump and Borissov plan to discuss security in the Black Sea region, energy and countering malign influence – all Russia-related topics, as one would expect.

The real reason for the White House treat, however, is Bulgaria’s substantial purchase of US aircraft this year.

In August, Bulgaria bought eight F-16 airplanes from the US for the hefty price of USD 1.2bln. White House meetings with foreign leaders represent special thanks for something a foreign country has done for the United States and the F-16 airplanes purchase seems to be what we are looking at here. The US is a happy seller and Bulgaria is a happy customer.

In the area of energy, Bulgaria is looking towards the US while trying to reach energy diversification and gain independence from Russian natural gas. On this, there is a clear intersection with US interests. Bulgaria agreed in May to purchase natural gas from the US for the first time. Bulgarian Prime Minister Borissov met last week with the US Ambassador to Greece to explore the possibility of purchases of American liquid gas down the line.

What is not mentioned by the official White House position is that visa restrictions will be a topic of the meeting, too. The Bulgarian Prime Minister will likely request that President Trump dropped the visa requirements for Bulgarians – an issue the Bulgarian government has been chasing for a while now and something which Bulgarian President Radev had raised with President Trump also on the sidelines of the UN General Assembly in September. Visa restrictions were removed for Polish citizens last month. The Bulgarian Prime Minister will seek the same outcome. On this point, it is unlikely that President Trump would give the green light though.

What we won’t hear about publicly is the issue of the return of ISIS fighters to Europe. No one in Bulgaria really talks about this but one can imagine this is an issue for the US government. Bulgaria doesn’t have a problem with ISIS fighters itself but, as an EU external border country, it is Turkey’s neighbor and the closest to the Middle East EU ground entry point. Last week, Turkey began returning ISIS fighters back to Europe and President Trump has been adamant that European nations with ISIS fighters need to take responsibility for them. Western European EU countries do not want their ISIS fighters back to try them in court or to reintegrate them, which is understandable but also irritating because Europeans have had the unfounded expectation that the US would somehow take care of this. How Bulgaria as an EU country at the crossroads between Turkey, the EU and the US handles that is key. No one in Bulgaria really talks about it, and the various EU, US and Turkish pressures on Bulgaria are not really known, but one can imagine the situation is that of being between a rock and a hard place. So, the return of ISIS fighters is another issue to look out for, although it will not come through in public.

In the past, NATO ally Bulgaria has aided the US with criminal and law enforcement investigations in the areas of terrorism, drug trafficking and human trafficking. This is another area to look out for.

President Trump’s impeachment is not really a topic in Bulgaria, as no one here seems to be concerned with that. It will be interesting whether Prime Minister Borissov would mention this at all to issue words of support to President Trump. This is something that President Trump would appreciate, although protocol says Prime Minister Borissov would be smart to steer away from impeachment comments.

Direct, to the point and simple words can be expected from President Trump. Prime Minister Borissov, on the other hand, is learning English so the meeting will necessarily have a Bulgarian interpreter. Expect one or two jokes by President Trump about simultaneous Bulgarian interpretation. The meeting will not pass without that.

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EU chief prosecutor Laura Kovesi needs media freedom to do her job

Iveta Cherneva

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Last month, Laura Codruta Kovesi, the former chief prosecutor of Romania’s National Anti-corruption Directorate, was officially confirmed as the first ever EU chief prosecutor to head the newly created European Public Prosecutor’s Office. Her team will start work in the end of 2020. 

Kovesi will shake things up. She has a lot of hurdles to overcome. Among the main ones is the silencing and stifling of journalists across Europe, including in Bulgaria. The lack of media freedom will make it exceptionally difficult for Kovesi to do her job and uncover crimes involving EU funding.

As soon as the news hit that Kovesi was to become EU’s top prosecutor, anti-corruption activists across Europe applauded loudly. One could hear the applause also in Bulgaria where we face issues with EU funds misappropriation and theft but also complaints regarding the freedom of the press – a place where Kovesi’s work is much needed.

Defined institutionally, Kovesi’s mandate is “to investigate, prosecute and bring to judgment crimes against the EU budget, such as fraud, corruption or serious cross-border VAT fraud”. The EU’s top prosecutor is tasked with the tough job of going after crimes involving EU money. 

It might sound as a disappointment to many, but Kovesi will not have the institutional competence to address everything that is wrong with a country or a sector. Corruption and fraud are covered by the EU prosecutor’s mandate only as long as they are related to EU funds.

So if Kovesi won’t be a see-it-all, do-it-all messiah, where does this leave media freedom then and why am I talking about it in the context of her job?

Well, bringing to justice crimes related to EU funds is almost impossible without the leads on the ground – work often done by a functioning free media and hard-hitting  investigative journalism that uncovers fishy deals and contracts. It is journalists that sometimes lead the way. Often media investigations chart a course for criminal investigations. The media is a key ally in uncovering crimes involving EU funds. This is particularly true of a service such as the EU’s prosecutor office that will operate from EU headquarters and will rely on leads and allies on the ground.

We can’t expect that an EU service will get all the intricate, hidden local information on its own or through cooperation with the state authorities in question. This is where media and journalists come in. 

Bulgaria – as sad I am to say this – gives a clear illustration of why Kovesi’s job could prove to be especially tough. The country ranks 111th in the world in terms of media freedom, according to Reporters without Borders. 

To illustrate the situation, one should look no further than the current scandal involving the nomination of Bulgaria’s own chief prosecutor and the simultaneous firing of a seasoned journalist who has been critical of the only candidate for Bulgaria’s top prosecutor post.

As reported by Reuters, the national radio journalist Silvia Velikova was fired for allegedly being critical of the work of the deputy chief prosecutor Ivan Geshev, who has already been selected to become Bulgaria’s next chief prosecutor. Bulgaria’s President Rumen Radev vetoed the appointment last week, so now the country is facing judicial uncertainty and protests such as the ones from today. 

Among the reasons why the chief prosecutor’s appointment has been controversial – to say the least – is the sacking of the Bulgarian Radio journalist Silvia Velikova. Her ousting caused protests by Bulgarian journalists which I have been attending, while the capital Sofia saw thousands of protesters marching in the streets against Geshev’s nomination in September, October and now, after the presidential veto.

Where the story gets interesting or horrific – or both – is that as many as four unnamed individuals made phone calls in September to the Director of the National Radio, allegedly asking for the journalist critical of the prosecutor candidate to be fired, or at least to be silenced until Geshev’s selection as chief prosecutor. The journalist Velikova was subsequently fired. She was reinstated to her post after Prime Minister Boyko Borisov spoke in her defence. And the Director of the National Radio was himself fired for stepping over by a media oversight organ.  

In Bulgaria, a persistent complaint is that journalists who ask the inconvenient questions can be removed in a heartbeat, after so much as a phone call. The suspicion remains that shady dealings – not merit – continue to play a significant role in the firings and hirings of Bulgarian journalists.

One should look no further than the stories of investigative journalists Miroluba Benatova and Genka Shikerova. They are both known as hard-hitting investigative journalists that ask the tough questions and uncover corruption and mismanagement. They are both out of job after being pressured to quit a mainstream media. 

Genka Shikerova faced severe intimidation over the years, as her car was set on fire not once but twice, in 2013 and 2014, in relation to her work on Bulgaria’s significant anti-government protests during these years.

Miroluba Benatova, on the other hand, caused massive waves with her recent revelation that she has become a taxi driver – only to surprise foreign tourists about how politically astute and knowledgeable Bulgarian taxi drivers are. “The service in Bulgaria has improved greatly”, told her a German tourist assuming he was being driven by just a regular taxi driver.

So, how is this related to Kovesi?

It is unlikely that by driving a taxi Benatova will be coming across many leads about EU funds theft, to assist Kovesi. Such a waste of talent, and also funds.

The media across Europe has a key role to play in supporting the work of the new EU prosecutor. As long as journalists in countries like Bulgaria lack the freedom to do their jobs, crimes involving EU funding will go uncovered. If Laura Kovesi wants to succeed in her new job, she will have to take context into account and recognize that in many EU states, including Bulgaria, journalists are often not allowed to do their jobs and ask the hard questions. And that’s a shame because Kovesi will not be able to do it alone. 

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Why German car giant Volkswagen should drop Turkey

Iveta Cherneva

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War and aggression are not only questions of ethics and humanitarian disaster. They are bad news for business.

The German car giant Volkwagen whose business model is built on consumer appeal had to stop and pause when Turkey attacked the Kurds in Syria. A USD 1.4bln Volkswagen investment in a new plant in Turkey is being put on hold by the management, and rightly so.

Unlike business areas more or less immune from consumer pressure – like some financial sectors, for example – car buying is a people thing. It is done by regular people who follow the news and don’t want to stimulate and associate themselves with crimes against humanity and war crimes through their purchases. Investing in a militarily aggressive country simply is bad for an international brand.

As soon as the news hit that Turkey would be starting their military invasion against the Kurds, questions about plans for genocide appeared in the public discourse space. Investing over a billion in such a political climate does not make sense.

By investing into a new plant next to Turkish city Izmir, Volkswagen is not risking security so much. Izmir itself is far removed from Turkey’s southern border — although terrorist attacks in the current environment are generally not out of the question.

The risk question rather lies elsewhere. Business likes stability and predictability. Aggressive economic sanctions which are likely to be imposed on Turkey by the EU and the US would affect many economic and business aspects which the company has to factor in. Two weeks ago the US House of Representatives already voted to impose sanctions on Turkey, which now leaves the Senate to vote on an identical resolution.

Economic sanctions affect negatively the purchasing power of the population. And Volkswagen’s new business would rely greatly on the Turkish client in a market of over 80mln people.

Sanctions also have a psychological “buckle-up” effect on customers in economies “under siege”, whereby clients are less likely to want to splurge on a new car in strenuous times.

Volkswagen is a German but also a European company. Its decision will signal clearly if it lives by the EU values of support for human rights, or it decides to look the other way and put business first.

But is not only about reputational damage, which Volkswagen seems to be concerned with. There are real business counter-arguments which coincide with anti-war concerns.

Dogus Otomotiv, the Turkish distributor of VW vehicles, fell as much as 6.5% in Istanbul trading after the news for the Turkish offensive.

Apart from their effects on the Turkish consumer, economic sanctions will also likely keep Turkey away from international capital markets.

There is also the question of an EU company investing outside the EU, which has raised eyebrows. It is up to the European Commission now to decide whether the Volkswagen deal in Turkey can go forward after a complaint was filed. Turkey offered the German conglomerate a generous 400mln euro subsidy which is a problem when it comes to the EU rules and regulations on competition.

The Chairman of the EPP Group in the European Parliament, Manfred Weber filed a complaint with the EU competition Commissioner about the deal, on the basis of non-compliance with EU competition rules. Turkey’s plans to subsidize Volkswagen clearly run counter EU rules and the EU Commission can stop the 1bln deal, if it so decides.

In a context where Turkey takes care of 4mln refugees — subject to an agreement with the EU — and often threatens the EU that it would “open the gates”, it is not clear if the Commission would muster the guts to say no, however. In that sense, the German company’s own decision to pull from the deal would be welcome because the Commission itself wouldn’t have to pronounce on the issue and risk angering Turkey.

While some commentators do not believe that Volkswagen would scrap altogether the investment and is only delaying the decision, it is worth remembering that the Syria conflict is a complex, multi-player conflict which has gone on for more than 8 years. Turkey’s entry in Syria is unlikely to end in a month. Erdogan has communicated his intention to stay in Syria until the Kurds back down.

In October it was reported that the Turkish forces are already using chemical weapons on the Kurdish population which potentially makes Turkish President Erdogan a war criminal. For a corporate giant like Volkswagen, giving an economic boost for such a state would mean indirectly supporting war crimes.

As Kurdish forces struck a deal for protection with the Syrian Assad forces, this seems to be anything but a slow-down. Turkey has just thrown a whole lot of wood into the fire.

Volkswagen will find itself “monitoring” the situation for a long time. There is a case for making the sustainable business decision to drop the risky deal altogether, soon.

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