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Germany and Italy within the European Union

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No one is really fine in the European gas chamber but – just to paraphrase Orwell – someone is finer than the others. It is Germany, as you can easily imagine.

Earlier this year, the German industrial production recorded no annual growth and consumer confidence was at very low levels.

However, as is now well-known, since the beginning of the Euro phase Germany has destroyed our manufacturing industry and is replacing us in the major global markets: China, Russia (except for the crazy sanctions due to the situation with Ukraine – an operation much more linked to the US and NATO actions than to the Russian ones).

Hence the crisis of German production was short and regarded the relative compression of the Chinese market, as well as the much more severe negative cycle of the US production.

However, when markets are stolen from the others, everything gets easier and quicker.

The story began with the Social Democrat Chancellor, Gerhard Schroeder, shortly before the phase of the EU single currency started, when – also thanks to the “reabsorption” of the German Democratic Republic (GDR) still underway – he managed the forced lowering of the German mark value and the companies’ production costs, already below the expected Euro waterline, so as to make the “great German factory” already competitive even before the introduction of the single currency.

Moreover the Euro certainly enabled Italy, which was not at all prepared for the single currency, to reconstruct its own debt record, which was approaching the end with an imminent “Argentina-style” perspective.

But the single currency, inevitably too “high,” destroyed the purchasing power of wages and salaries, by halving them, and doubled both production costs and consumer prices.

Italy experienced an 80% deflation, which lasted six month, of which you can easily imagine the social effects.

Social effects experienced not even after the Second World War lost – and that says it all!

Hence Italy was forced to increase exports, which made us gain some positions on the world market, but destroyed – due to an usurious and virtually absent ruling class – the great State-owned industry, sold at a loss, however with one-off “transfers and payments” to the old and new political forces.

Furthermore, the shift to a stupidly “high” currency value further destroyed Italy’s banking system, which is now playing a secondary role compared to the large liquidity areas being created both within the EU and in the rest of the world.

In fact, Italy experienced recession for at least five of the past eight years.

Still today, Italy’s GDP is lower than in 1999 and its sovereign debt has grown by 133% since 1999. Furthermore, since the introduction of the Euro the national average productivity has steadily declined.

But what does it has to do with Germany? Certainly it has to do with Germany.

In fact, the European Union is unable to manage the huge German current account surplus – and indeed it remains silent before it. Said surplus is over 8% – a percentage that no EU Treaty allows and which also funds the current remarkable growth of wages and salaries in Germany (4.5% on average), besides refinancing the local domestic demand, which is the real engine of growth in the current phase in which exports are flagging.

Since the beginning of the 2006 crisis, caused by the US “financial bubble” on the European monetary and banking markets, Germany has slowly but relentlessly forced the other EU countries to be more fiscally “correct”.

This means to increase their domestic taxes in order to support the expected lower purchase of government bonds and to “cash” money to add to their coffers in case of few renewals of bonds at maturity.

Nevertheless, even freshmen in Business and economic universities know that if taxation increases, domestic consumption will decrease and that if the internal market shrinks, there must be an equivalent share of exports offsetting that loss.

However, if the Euro external value changes for each individual country of the Area, Italy’s EU competitors recording a stronger and more stable external value of the Euro will take markets away from Italy also at equivalent prices.

This has meant basically destroying the Italian, Spanish and sometimes even French companies to favour both Germany and the German industrial expansion area beyond the old Iron Curtain.

Since the very beginning, the German labour outside German borders has supported the country’s expansion onto global markets at highly competitive prices, while Italy and the other regions which had not been cynically prepared for the Euro geoeconomics have collapsed under the weight of the unsustainable costs of their exports and international competition.

While former Italian President Ciampi was visiting China’s Great Wall, Chancellor Schroeder quickly landed in Beijing and in one single day signed all the contracts concerning the remarkable expansion of the Volkswagen Group into China.

It is worth recalling that this was exactly the same paradigm used by the Federal Republic of Germany (FRG) against the German Democratic Republic (GDR), reduced to an Anschlűss country, both to avoid the competition of Communist Germany’s companies, which were not performing so poorly, and to use – at a much lower cost – the labour force “released” from those areas.

Hence the model with which the Federal Republic of Germany (FRG) bought the German Democratic Republic (GDR) – with our money, and sometimes even with the GDR money – was replicated for the rest of Europe.

Incidentally, at that time the “moralistic” rules on rigour, which found many inexperienced advocates (but we would also say agents of influence) applied not even to Germany which, in the phase of “rigour”, made three-year investment plans accounting for 5.2% of GDP.

Also at geopolitical level, the strategic relationship between Germany and the United States makes economic sense: the pressure of sanctions against Russia, guilty of taking back what is its own in Crimea and part of Ukraine, undermines the economies more interrelated with Russia, including Italy’s – hence a crisis adds to the other.

The US interest is very clear: the more the European economic fabric and common interest crumble, the more the Dollar area – and, in any case, the US commercial and financial expansion area – is guaranteed and expanded.

The more the United States come back to Europe, the more the German bilateral power on the USA increases and the bilateral power of the other EU countries proportionally decreases. After the notorious “Arab springs”, the latter are now reduced to an internal struggle (such as Italy vs. France for Libya) or to a “joint action” – often fully ineffective – with the United States which, however, think they must walk out of the Middle East, after having madly set fire to it.

In a recently-published book, a CIA executive has candidly admitted that the United States “hoped that the democratic uprising would destroy Al Qaeda” – and we have seen with what tragic and uncontrollable outcomes.

Not to mention the case of the war in Syria and its impact on the EU welfare, which will shortly become totally unsustainable and will place the less cautious and far-sighted EU countries in a tragic situation while, on the contrary, it will create opportunities for profitable investment for the North European and US banks and private insurance companies.

After the EU restrictive rules on the EU Member States’ public budgets, with the 2011 regulations known as “Two Pack Regulations”, France has set itself – at least partially – against the financial (and later political) Germanization of the European Union, while Italy has continued to use the debt lever and the lucky chance provided by the ECB Governor, Mario Draghi, with the programme designed to repurchase – on the secondary market – the surplus of government bonds of countries like Italy.

But it will not last.

There are only two possibilities: either the sequence of “sacrifices” and budgetary constraints is applied – and forget about the story that States spend too much and badly, because all States do so – and hence Italy will no longer have a domestic market to support its industrial output, because it also has a low labour productivity, or it shall incur debt on financial markets and ultimately collapse under the burden of the interest generated by that debt.

Obviously, they will help us die.

Later, they will buy our companies at low cost so as to incorporate them in their European and global networks, with the national workforce that will be a variable – and not a constant – factor of business calculations and profits which will go abroad.

In 2013, Italy already ranked second in the list of Mergers and Acquisition (M&A) of German companies – and it just so happened during the crisis – and currently over 30% of the Italian companies which are now no longer nationally-owned have already been sold to the Germans.

Only in 2013, for example, we recorded as many as 23 deals of German small and medium-sized companies (SMEs) which acquired Italian companies, out of a total of 171 sales of national SMEs between 2013 and 2014.

Given the complexity of these operations, it is obviously not possible to speculate on the activities which are still in progress.

Hence the issue lies in undermining a country and then buy it at very low prices.

A strategy which has long been developed and that Italy, for the fatal inability of its ruling class, did not prepare on time, i.e. before the Euro’s entry into force.

What can be done? Getting out of the single currency is useless.

However, Italy must operate freely on the major global markets where the country can still compete with its European “allies” – and it shall do so quickly and with harsh and resolute methods.

And it must accept foreign to foreign transactions not denominated in Euro, as with China and the Russian Federation.

This is what good intelligence and a ruling class not consisting only of mere parvenus and upstarts, like the current ones, would be for.

Advisory Board Co-chair Honoris Causa Professor Giancarlo Elia Valori is an eminent Italian economist and businessman. He holds prestigious academic distinctions and national orders. Mr. Valori has lectured on international affairs and economics at the world’s leading universities such as Peking University, the Hebrew University of Jerusalem and the Yeshiva University in New York. He currently chairs “International World Group”, he is also the honorary president of Huawei Italy, economic adviser to the Chinese giant HNA Group. In 1992 he was appointed Officier de la Légion d’Honneur de la République Francaise, with this motivation: “A man who can see across borders to understand the world” and in 2002 he received the title “Honorable” of the Académie des Sciences de l’Institut de France. “

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Council of Europe fights for your Right to Know, too

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Authors: Eugene Matos de Lara and Audrey Beaulieu

“People have the right to know what those in power are doing” -Dunja Mijatovic Council of Europe, Commissioner for Human Rights.

Access to information legislation was first seen in 1766 in Sweden, with parliamentary interest to access information held by the King. Finland in 1951, the United States in 1966, and Norwayin 1970 also adopted similar legislation. Today there are 98 states with access laws; of these, more than 50 incorporated in their constitution. The Inter-American Court of Human Rights 2006 and the European Court of Human Rights 2009 both ruled that access to information is a human right, confirmed in July 2011 by the United Nations Human Rights Committee, a sine qua non of 21st-century democracy.

Global civil society movements have been promoting transparency, with activists and journalists reporting daily on successes in obtaining information and denouncing obstacles and frustrations in the implementation of this right. To this end, the Council of Europe was inspired by pluralistic and democratic ideals for greater European unity, adopted the Council of Europe Convention on Access to Official Documents recognising a general right of access to official documents held by public authorities. It brings a minimum standard for the fair processing of requests for access to official documents with the obligation for member states to secure independent review for restricted documents unless with held if the protection of the documents is considered legitimate.

The right to freedom of information

Access to information is a government scrutiny tool. Without it, human rights violations, corruption cases, and anti-democratic practices would never be uncovered. Besides exposing demerits, the policy is also known to improve the quality of public debates while increasing participation in the decision making process. Indeed, transparency of authorities should be regarded as a fundamental precondition for the enjoyment of fundamental rights, as guaranteed by Article 10 of the European Convention on Human Rights. The policy equips citizens and NGOs with the necessary tool to counter refusal from authorities to provide information. The European Court of Human Rights recognized that withheld documents could be accessed in specific circumstances. In principle, all information should be available, and those upheld can also be accessed, particularly when access to that particular information is crucial for the individual or group to exercise their freedoms unless of course, the information is of national security or of private nature.

Access to information in times of crisis a first line weapon against fake news

The COVID pandemic has enabled us to test access policies and benchmark the effectiveness of the right to know during trivial times, as Dunja Mijatovic mentioned. In fact, having easy access to reliable information protects the population from being misled and misinformed, a first-line weapon dismantling popular fake news and conspiracies. Instead, during COVID, access to information has supported citizens in responding adequately to the crisis. Ultimately, transparency is also a trust-building exercise.

Corruption and environmental issues

Information is a weapon against corruption. The Council of Europe Group of States against Corruption (GRECO) is looking at the specific issue of access to official documents in the context of its Fifth Evaluation Round, which focuses on preventing corruption and promoting integrity in central governments and law enforcement agencies. In about a third of the reports published so far, GRECO has recommended the state to improve access to official documents. In regards to the environment, the United Nations Convention on Access to Information, Public Participation in Decision-Making and Access to Justice in Environmental Matters, commonly referred to as the Aarhus Convention, expands the right of access to information on environmental matters thus complementing the Tromsø Convention. Declaring these policies as the primary tools that empower citizens and defenders to protect the environment we live in.

Good models exist

Most Council of Europe member states have adequate mechanisms regarding the right to information. For example, in Estonia, “the Public Information Act provides for broad disclosure of public information” states Mijatovic. Moreover, “in Croatia, Serbia, Slovenia and several other countries there is an independent oversight body – such as an Information Commissioner – responsible for monitoring and enforcing the right to information, while some other countries entrust Parliamentary Ombudsmen with supervision of the right of access to information”. Finally, “the constitutions of several European countries do indeed guarantee the fundamental right to information.” Nonetheless, there are still in consistent levels of transparency among state institutions or a failure to meet the requirement for proactive disclosure. The entry into force of the Tromso Convention willbe an opportunity to bring back to the table the importance of the right to information and to read just European States practices regarding the enhancement.

Barriers and Challenges

Digitization is still recent, and authorities are not accustomed to dealing openly. There is a sentiment of reservation and caution. Before the advent of the internet, governments enjoyed a level of political efficiency and practical obscurity. Viewing public records required the time and effort of a visit to the records’ physical location and prevented easy access to details of individual files. Openness has made the policy cycle longer, with a more thorough consultation process and debates. The availability of digital documents has caused an unavoidable conflict.

One of the conflicts is a privacy protection and policy safeguards invoked against freedom of information requests. Requirements to provide transparency of activities must be mitigated with national security, individuals’ safety, corporate interests, and citizens’ right to privacy. Finding the right balance is essential to understand how local governments manage the dichotomy between providing open access to their records by maintaining the public’s privacy rights.

Several governments think twice before pursuing transparency policies. Access to information hasn’t been a priority for some of the European States. Mijatovic reported that “filtering of information and delays in responses to freedom of information requests have been observed in several member states”. Although there is a growth in these laws’ popularity, we are always a step behind meeting the supply and demand of information objectives in an era of digitization.

Legal perspectives

Tromso Convention has only been ratified by eleven countries, which are mostly located in Scandinavia (Finland, Norway and Sweden) or in Eastern Europe (Bosnia, Estonia, Hungary, Lithuania, Moldavia and Ukraine). Reading this statement, three questions should come to our minds:

1.    Why not all European states have ratified Tromso Convention?

2.    Why do Scandinavian countries have chosen to ratify the Convention?

3.    Why are most of the Member States from Eastern Europe?

Regarding the first question, the answer resides in the fact that the ones who haven’t taken part in the Convention already have strong national laws protecting freedom of information and don’t need to bother with extra protection and external surveillance. For instance, Germany passed a law in 2005, promoting the unconditional right to access information. Many other European states such as Belgium, Croatia, Denmark, France &Poland have similar national law.

Regarding the second question, considering that all Scandinavian countries already have national laws assessing freedom of information, the most likely reason behind their ratification would be symbolic support to the cause or because the Convention’s framework is less restrictive than their national laws.

Finally, concerning the last question, we could suppose that most Eastern countries have an interest in demonstrating themselves as more transparent, more following the rule of law. For example, if we examine Montenegro’s case, we could assume that taking part in the Tromso Convention is a step closer to their accession to the EU in 2025.

As for the reservations that have been made, only Finland, Norway and Sweden have made some noticeable. Regarding Norway, the country declared that “communication with the reigning Family and its Household” will remain private in accordance with Article 3,paragraph 1 of the Convention. This limitation covers something interesting, considering that, as mentioned earlier, access to the data type of legislation was first adopted in order to get access to information held by the King. In parallel, Finland declared that “the provisions of Article 8 of the Convention concerning the review procedure [will] not apply to a decision made by the President of the Republic in response to a request for access to a document. Article 8 provides protection against arbitrary decisions and allows members of the population to assert their right to information. Sweden has made a similarreservation on Article 8 paragraph 1 regarding “decisions taken by the Government, ministers and the Parliamentary Ombudsmen”.

Thoughts towards better implementation

For smoother data access implementation, governments can act on transparency without waiting for legislation through internal bureaucratic policy. These voluntary provisions for openness can be an exercise towards a more organic cultural transformation.

Lengthy debates on open access are entertained by exceptions to access. To be sure, governments have enough legal and political tools to withhold information, regardless of how exemptions have been drafted. Instead, a more productive and efficient process is possible if we concentrate on positive implementation and enforcement, including the procedures for challenges on legal exemptions.

The implementation phase of access laws is challenging due to a lack of leadership motivation, inadequate support for those implementing these requests, especially since they require a long term social and political commitment. To do so, an overall dedication and government bureaucratic cultural shift should take place. Although the implementation of access to information should be included internally in all departments, considering a standardized centralized approach to lead the new regime with authority could send an important message. Record keeping and archiving should be updated to respond to requests with improved information management systems. As such, the goal would be to make a plethora of information immediately and unconditionally available.

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France’s Controversial ‘Separatism’ Bill

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In his very first days at the Elysee Palace, French President Emmanuel Macron vowed to detail his views on secularism and Islam in a wide-ranging speech. It took more than three years for this to happen, with the much awaited speech actually taking place in October a week after a teacher was violently killed for revealing the caricatures of Prophet Muhammad(PBUH) during a lecture on freedom of expression. Macron said during his speech that “Islam is a religion which is experiencing a crisis today, all over the world”, adding that there was a need to “free Islam in France from foreign influences”. Mr. Macron and his Parliament allies have described the bill as a reaction to the rise of Islamic separatism, which the President defines as a philosophy that seeks to create a parallel state in France where religious laws replace civil law.  Referring to the cartoons at a citizenship ceremony earlier and before the latest attacks, Macron defended the “right to blasphemy” as a fundamental freedom, even as he condemned “Islamic separatism.”

“To be French is to defend the right to make people laugh, to criticize, to mock, to caricature,” the president said. The proposed law allows religious associations and mosques to report more than €10,000 ($12,000) in international support and to sign a promise to uphold the French republican ideals in order to obtain state subsidies. The bill will also make it possible for the government to close down mosques, organizations and colleges that have been described as criticizing republican values.The controversial bill is blamed for targeting the Muslim people and enforcing limits on nearly every part of their lives. It allows government to oversee the funds of associations and non-governmental organizations belonging to Muslims. It also limits the schooling options of the Muslim community by prohibiting families from providing home education to children. The law also forbids people from selecting physicians on the grounds of gender for religious or other purposes and mandates a compulsory ‘secularism education’ on all elected officials. Physicians will either be charged or jailed under the law if they conduct a virginity test on girls. Critics argue the so-called “separatism law” is racist and threatens the 5.7 million-strong Muslim population in France, the highest in Europe. Its critics include the 100 imams, 50 teachers of Islamic sciences and 50 members of associations in France who signed an open letter against the “unacceptable” charter on 10 February.

A criminal act for online hate speech will make it easier to easily apprehend a person who shares sensitive information about public sector workers on social media with a view to hurting them and will be disciplined by up to three years in jail and a fine of EUR 45.000. The banning or deleting of pages spreading hate speech would now be made smoother and legal action accelerated. The bill expands what is known in France as the ‘neutrality clause,’ which forbids civil servants from displaying religious symbols such as the Muslim veil and holding political opinions, outside public sector workers to all commercial providers in public utilities, such as those working for transport firms.

French Members of Parliament held two weeks of heated debates in the National Assembly. People of Muslim faith interviewed outside the Paris Mosque and around Paris on the outdoor food market before the vote had hardly heard of the rule. “I don’t believe that the Muslims here in France are troublemakers or revolutionaries against France,” said Bahri Ayari, a taxi driver who spoke to AP after prayers inside Paris’ Grand Mosque. “I don’t understand, when one talks about radicalism, what does that mean — radicalism? It’s these people who go to jail, they find themselves with nothing to do, they discuss amongst themselves and they leave prison even more aggressive and then that gets put on the back of Islam. That’s not what a Muslim is,” he added.

Three bodies of the French Council of Muslim Worship (CFCM) have unilaterally denounced the “charter of principles” of Islam, which reaffirms the continuity of religion with France. The three parties said that the Charter was accepted without the full consensus of the other integral components of the CFCM, including the provincial and departmental councils and the imams concerned. “We believe that certain passages and formulations of the submitted text are likely to weaken the bonds of trust between the Muslims of France and the nation. In addition, certain statements undermine the honor of Muslims, with an accusatory and marginalizing character,” the Milli Görüş Islamic Confederation (CMIG) and the Faith and Practice movement said in a joint statement. The bill is blamed for targeting the Muslim community and enforcing limits on nearly any part of their lives. It allows for interference in mosques and organizations responsible for the operation of mosques, as well as for the oversight of the funds of associations and non-governmental organizations belonging to Muslims.

It is a difficult time for the nation, which has also accused its protection bill of containing the press freedom. The law introduced aims at making it unlawful to post photographs of police officers in which it is identifiable by “malicious intent” However, law enforcement has criticized the government after the declaration by Macron of the development of an online forum to flag police brutality.

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Why Is Europe Hostile Towards Russia?

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In his seminal 1871 work Russia and Europe, the famous Russian intellectual and Slavophile Nikolay Danilevsky set forth his theory that “Europe recognizes Russia as something alien to itself, and not only alien, but also hostile,” and that Russia’s fundamental interests should act as a “counterweight to Europe.”

One hundred and fifty years have passed since that work was published. The world has changed. No matter what anti-globalists might say, the rapid development of modern technologies and their use in our everyday lives has forced us to re-evaluate many of our beliefs about relations between states and people. The exchange of information, scientific discoveries and knowledge, and the sharing of our cultural wealth bring countries closer together and open up opportunities for development that did not exist before. Artificial intelligence does not know any boundaries and does not differentiate users by gender or nationality. Along with these new opportunities, the world is also faced with new problems that are increasingly supranational in nature and which require our combined efforts to overcome. The coronavirus pandemic is the latest example of this.

It is against the background of these rapid changes, which for obvious reasons cannot unfold without certain consequences, that we can occasionally hear this very same theory that “Europe is hostile towards Russia.” Although the arguments put forward to support this claim today seem far less nuanced than those of Nikolay Danilevsky.

Even so, ignoring this issue is not an option, as doing so would make it extremely difficult to build a serious long-term foreign policy given the prominent role that Europe plays in global affairs.

Before we dive in, I would like to say a few words about the question at hand. Why should Europe love or loathe Russia? Do we have any reason to believe that Russia has any strong feelings, positive or negative, towards another country? These are the kind of words that are used to describe relations between states in the modern, interdependent world. But they are, for the most part, simply unacceptable. Russia’s foreign policy concepts invariably focus on ensuring the country’s security, sovereignty and territorial integrity and creating favourable external conditions for its progressive development.

Russia and Europe have a long history that dates back centuries. And there have been wars and periods of mutually beneficial cooperation along the way. No matter what anyone says, Russia is an inseparable part of Europe, just as Europe cannot be considered “complete” without Russia.

Thus, it is essential to direct intellectual potential not towards destruction, but rather towards the formation of a new kind of relationship, one that reflects modern realities.

At the dawn of the 21st century, it was clear to everyone that, due to objective reasons, Russia would not be able to become a full-fledged member of the military, political and economic associations that existed in Europe at the time, meaning the European Union and NATO. That is why mechanisms were put in place to help the sides build relations and cooperate in various fields. Bilateral relations developed significantly in just a few years as a result. The European Union became Russia’s main foreign economic partner, and channels for mutually beneficial cooperation in many spheres were built.

However, EU-Russia relations have stalled in recent years. In fact, much of the progress that had been made is now being undone. And positive or negative feelings towards one another have nothing to do with it. This is happening because the parties have lost a strategic vision of the future of bilateral relations in a rapidly changing world.

Speaking at the World Economic Forum in Davos, President of the Russian Federation Vladimir Putin said that Russia is part of Europe, and that, culturally, Russia and Europe are one civilization. This is the basic premise—one that is not based on emotions—that should underlie Russia’s policy in its relations with Europe.

Russia and the European Union disagree on many things, but the only way to overcome misunderstandings and find opportunities to move forward is through dialogue. In this context, the recent visit of the EU High Representative to Moscow was a much-needed step in the right direction, despite the criticism that this move received from the European side. Nobody was expecting any “breakthroughs” from the visit, as the animosities and misunderstandings between the two sides cut too deep. Yet visits and contacts of this kind should become the norm, for without them we will never see any real progress in bilateral relations.

In addition to the issues that currently fill the agendas of the two sides, attention should be focused on developing a strategic vision of what EU-Russia relations should be in the future, as well as on areas of mutual interest. For example, it is high time that Europe and Russia broached the subject of the compatibility of their respective energy strategies, as well as the possible consequences of the introduction of “green energy” in Europe in terms of economic cooperation with Russia. Otherwise, it will be too late, and instead of a new area of mutually beneficial cooperation, we will have yet another irresolvable problem.

In his work Russia and Europe, Nikolay Danilevsky, while recognizing the good that Peter the Great had done for his country, reproached him for “wanting to make Russia Europe at all costs.” No one would make such accusations today. Russia is, was and always will be an independent actor on the international stage, with its own national interests and priorities. But the only way they can only be realized in full is if the country pursues an active foreign policy. And one of the priorities of that policy is relations with Europe.

From our partner RIAC

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