On June 23, 2016, an historic vote in the United Kingdom forever changed the course of history. The UK voted to break away economically and to a lesser degree politically from the ‘constraints’ of Brussels, and the EU. The media frenzy surrounding the Brexit referendum had pundits believing that there was no possible way Brexiteers would get their wish. They were considered a fringe group of extremists, but the media got it wrong. They have gotten it horribly wrong many times since then, more recently with the election of US President Donald J. Trump. But it’s the Brexit issue that lingers and presents the greatest challenges to Europe and the United Kingdom. Come Friday, 29 March 2019 at 11 PM, the UK will be required to leave the EU.
The issue of what to do with Britons living abroad and Europeans living in Britain is an important one. For starters, there are millions of people from both the EU and Britain living outside of their countries. This large expatriate population is already experiencing all manner of financial difficulties through the recent volatility of the GBP. Global transfers from Europe to the UK and the UK to Europe have been increasing in recent years, thanks to the Brexit issue. The list of service providers offering these international money transfers is currently populated by many non-bank financial institutions, Recall that its zenith, the GBP was trading around 1.47/1.48 to the USD. It soon plunged to 31-year lows, and only recently started to claw its way back to those levels. Expatriates can benefit from GBP weakness by sending EUR, USD, JPY, SEK and other currencies back to the UK. This results in boosted performance of the GBP, and has a lag effect on stock portfolios.
The Brexit issue presents as an unprecedented economic and political calamity for Europe, the likes of which it last encountered with the overhyped Grexit (Greek Exit) fears. According to the terms of the Lisbon Treaty, Britain had 2 years from the date it announced its intention to leave the EU for the formal ratification of a Brexit. Article 50 of the Lisbon Treaty is an interesting legal triggering mechanism, and the process got underway in March 2017. With approximately a year to go, the UK government must muster all the support it can to prepare for Brexit. The negotiations have been exceedingly difficult, with both EU and UK officials struggling to come to consensus on any number of issues.
What was the Final Vote Tally in Favour of Brexit in the UK?
According to the BBC, 72.2% of the UK electorate voted in the Brexit referendum. Of that, 51.9% voted to leave the EU, amounting to 17,410,742 votes. The Bremain (Britain remains in the EU) vote amounted to 48.1% or 16,141,241 votes. There were some 26,033 rejected ballots. It is interesting to point out which parts of the UK voted overwhelmingly in favour or against a Brexit. Scotland (62% to remain) was largely against a Brexit, as was Northern Ireland (55.8% to remain). But it was England (53.4% to leave) and Wales (52.5% to leave) with their large populations that swung the needle in favour of a Brexit.
And so, the Brexiteers got their wish and history was made. The areas in the UK overwhelmingly preferring a Brexit included Arun (62.5%), Northumberland (54.1%), Stoke-on-Trent (69.4%), Derby (57.2%), Northampton (58.4%), Cornwall (56.5%), Amber Valley (60.3%), Ashfield (69.8%), Lancaster (51.1%), Luton (56.5%), and many others. The listing of pro-Brexit cities and districts in and across England sent a powerful message to 10 Downing St., and Brussels alike. The British Prime Minister at the time, David Cameron was taken aback by the results, even though he was heading the Tory government. The London Mayor, Boris Johnson was spearheading calls for a Brexit, posing a serious challenge to the PM.
According to Article 50 of the Lisbon Treaty, ‘any member state may decide to withdraw from the union in accordance with its own constitutional requirements’. Once Article 50 has been triggered, the European Council is officially notified of the UKs desire to leave the EU and it will no longer be bound by EU rules. Of course, there are many complications inherent in the extrication process. These include the rights of EU citizens living in the UK, and vice versa. There are also existing business agreements, financial partnerships, and related deals between UK and EU companies that need to be consolidated, amended, or ratified.
Concerns for the UK Post Brexit
Other challenges to a successful Brexit include passports, travel, work permission, and borders. While the UK was part of the EU, residency requirements for all nationals in the single bloc were easier to understand. Now there is the issue of what to do with people post-Brexit. These are but a handful of the many challenges facing the UK government as it looks to carve out new alliances with Asia and the West, post-Brexit. Of course, one of the most urgent concerns is the UK economy, and the currency. The GBP has whipsawed wildly since the June 23, 2016 referendum. It plunged spectacularly from 1.47/48 prior to the Brexit and hit a 31-year low soon thereafter.
This has far-reaching implications for UK business, listed companies, and UK indices. Every time the GBP weakens, the FTSE 100 index strengthens, and vice versa. This well-established relationship saw the FTSE 100 index rising well above 7,000 as sterling continues to plummet. However, there has been a strong resurgence in the value of GBP, leading many to believe that the separation from the EU will not be as detrimental as once thought. Negotiations began in earnest, and both parties agreed to making significant headway in the Brexit discussions. However, the EU’s head negotiator Michel Barnierand his EU counterpart, David Davis have been at loggerheads many times.
Upcoming Meetings Prior to the Looming Brexit Deadline
According to Davis however, the UK has set March 29, 2019 at 11 PM GMT as the official date that Britain will depart from the EU. Some of the most important dates to remember moving forward include September 24 when elections in Germany will determine what becomes of Chancellor Angela Merkel, and then another meeting in October 2018. The latter is a crucial date to watch, since it is 6 months prior to the official divorce between Britain and the EU.
At that point, details of a final Brexit deal can be ratified. A big part of the reason Britain left was money. The UK was subsidizing Brussels to the tune of billions of pounds, and many UK conservatives commented that foreigners were using up valuable NHS resources and costing Britons a fortune. It’s a difficult predicament to be in, given that the UK is now negotiating to repay the EU a tidy sum in the separation agreement.
It was once thought that £350 million per week was sent by the UK to the EU. This according to Boris Johnson, is precisely what Britain pays the EU. However, the UK’s membership fee with the EU is £17.8 billion. Once the Treasury report was conducted, that figure was actually £375 million weekly, or £19 .5 billion. In November, The Guardian ran an article stating that the UK could pay upwards of £50 billion after UK leaders and EU leaders could not come to consensus. That’s the figure that was needed for heavy hitters like Germany and France to sign off on any new trade deals post-Brexit with the UK. Figures as high as £89 billion have been floated, but UK government ministers are insisting that the true figure will be approximately 50% of that. In any event, these are serious concerns for the UK post-Brexit, given that the burden will be brought to bear on UK workers.
Is the Brexit officially on?
According to Labour and Conservatives, the Brexit issue will move ahead as planned. However, several politicians and parties have threatened to derail any Brexit plans by requesting a snap referendum on the issue. It looks as if Britain will be leaving the EU in March 2019, preferably with a framework for Brexit in place. The British Prime Minister was against a Brexit during her early days, but promised to support a Brexit once she was sworn in. The UK economy has been in all sorts of turmoil since the Brexit saga became priority number one.
The GBP/USD pair is back at parity with pre-Brexit levels, but the GBP remains approximately 15% weaker against the EUR. UK economic growth remains robust, despite reports that the Brexit issue will destroy UK manufacturing and service industries. The purported single market refers to the EU bloc and if Britain leaves, it will no longer enjoy all of the privileges such as no customs duties, tariffs and trade fees. However, there is a customs union in place. The single market is a reference to broader integration and interaction between the EU and the UK.
In summary, it is important to manage personal finances well during this volatile period in Britain’s history. Britons with assets abroad stand to benefit significantly by repatriating their earnings, salaries, wages and so forth back to the UK. If the GBP strengthens, much the same can be said of Europeans living in the UK. Of course, banks will be having a field day with all the money changing hands, and the high spreads, fees and commissions they can charge on unsuspecting clients. After the dust has settled, it’s money transfer companies that will reap the rewards of these actions since they offer the best value to Britons.
Tackling migration crises: Fighting corruption may help
Twenty-three-year-old Mohamed Rasheed was at a loss after returning to Iraq from a grueling failed attempt to cross the Belarus-Polish border. “There’s no life for us here. There are no jobs; there is no future,” he told a Washington Post reporter.
Another man, who had just disembarked from a repatriation flight from the Belarus capital of Minsk to Erbil in Iraqi Kurdistan, frowned and obscured his face with a scarf, according to the reporter, as he responded to a question about why he had left.
“Those words cannot leave my mouth. Who dares to tell the truth here?” the man said.
The two men were returning to a country whose population has largely been excluded from sharing in the benefits of its oil wealth. Youth unemployment hovers at about 25 per cent. Public good and services are poor at best. Security forces and militias crackdown on and fire live ammunition at protesters demanding wholesale change.
Mohammed and his fellow returnee could have been from Lebanon, a middle-income country in which three-quarters of the population lives under the poverty line thanks to a corrupt elite unwilling to surrender vested interests irrespective of the cost to others.
In fact, they could have been from any number of countries in the Middle East, North Africa, and their African and Asian peripheries.
Almost half of the youth from non-Gulf countries in the Middle East and North Africa want nothing more than to leave in the absence of opportunities and prospects. They are exasperated with corrupt, self-serving elites.
This is a part of the world where devastating wars have wracked Syria, Yemen, and Libya. More recently, these countries were joined by Ethiopia while others in the Horn of Africa and the Sahel reel from jihadist violence that feeds on social and economic grievances.
To primarily hold responsible for the migrant crisis, human traffickers and cynical authoritarian leaders like Belarus President Alexander Lukashenko, who are willing to play power games and turn a profit on the back of innocent men, women, and children is swatting at symptoms of a problem that goes to the root of instability in the Middle East and North Africa.
To be sure, Mr. Lukashenko and the traffickers are part of the problem. Moreover, many Middle Easterners on the Belarus-Polish border appear to be economic, not political refugees with a legal right to asylum.
One could argue that the European Union’s refusal to take in the refugees on humanitarian grounds led to their repatriation to Iraq and Iraqi Kurdistan, which may have shortened their ordeal. Many risked being ultimately rejected, even if they had been granted entry to the EU because they were not political refugees.
The jury is out on whether the refusal will serve as a warning to the many in the Middle East and North Africa contemplating ways to get to Europe by hook or by crook.
All of this describes the immediate aspects of a dramatic crisis. The danger is that the focus on the immediate will obstruct badly needed thinking of ways to prevent or reduce the risk of future such crises and human suffering, aggravated by the willingness of governments to fight their battles on the backs of the least protected.
The framing of the crisis as a security rather than a political, economic, and social problem further takes away from the development of policies and tools to tackle the root causes of repeated migrant crises – economic mismanagement; political, economic, and financial corruption; nepotism; and loss of confidence in political systems and leadership.
“Addressing population challenges, the youth bulge, and refugee and migration pressure from natural or man-made crises will require measures to promote sustainable economic growth and enhanced educational and healthy capacities,” said George M. Feierstein, senior vice president of the Washington-based Middle East Institute and a former State Department official with multiple postings in the Middle East and North Africa.
Acknowledging that a broader US policy focus is likely to prove more challenging than one narrowly concentrated on security, Mr. Feierstein argued that the United States could “bring assets to the table that could potentially enhance its role in the region and strengthen its position as the preeminent outside power.” The former diplomat was referring to big power rivalry with China and Russia in the Middle East and North Africa.
Adopting Mr. Feierstein’s policy prescription would involve greater emphasis on regional approaches to global challenges, including climate change and public health; conflict management and resolution efforts to safeguard populations and minimize internal displacement and migration; and institutional capacity and resilience building; all backed by greater US private sector engagement.
Kyrgyzstan has potentially emerged in what could provide evidence that a de-emphasis of the security aspects of the migration crisis would not automatically surrender real estate and /or leverage and influence to China and Russia.
Part of a Central Asian world sandwiched between Russia and China on which the United States has seemingly turned its back with its withdrawal from Afghanistan in August, Kyrgyz President Sadyr Japarov is using his election pledges to fight corruption and offer financial rewards to whistleblowers to lure the US back.
Mr. Japarov’s proposition, designed to rescue Kyrgyzstan from the clutches of Russia and China, is the central theme of a document that he has sent to the US State Department. The document outlines proposals to revive a broad political, economic, and civic engagement with the US bolstered by anti-corruption measures and affirmation of democratic freedoms.
S. Frederick Starr, founding chairman of the Central Asia-Caucasus Institute, suggested that Mr. Japarov is providing a template for US reengagement with Central Asia and Afghanistan. In fact, the Kyrgyz president is offering a formula equally relevant to the Middle East and North Africa.
If adopted by the Biden administration, Kyrgyzstan “would become ‘The Mouse that Roared’ to cite the title of the droll 1959 British film. This time, however, the lesser power will have advanced its cause not by threatening military action…but with a sensible proposal by which a great power—the United States—…can once more become a serious presence in a major part of Asia that lies on China’s and Russia’s doorstep,” Mr. Starr said.
In contrast to Central Asia, the United States remains the dominant power in the Middle East and North Africa. But it’s a power seeking to redefine the role it wishes to play going forward in a region struggling to come to grips with an uncertain but changing US approach.
Kyrgyzstan could be showing the way for both United States and the Middle East. However, to make it work and reduce, if not stop, migration flows, the United States and its Western partners would have to prioritise confronting corrupt elites who will stop at nothing, including displacing populations, to preserve their illicitly gained privileges.
An election, another one, and yet another one: Will Bulgaria finally have a functioning government?
As of November, Bulgarian voters headed to the polls four times this year. Therefore, the news of a new election evokes little surprise — almost like in Israel before Netanyahu’s ousting. In both countries, the tension kept rising while expectations became more and more modest with each successive electoral round. However, the contests that took place on Sunday 14th were of the utmost importance for the country; and not only. In fact, Bulgaria is the EU’s and NATO’s south-eastern bulwark and hosts a tract of the South Stream gas duct. Moreover, Sofia is currently blockingthe next round of EU enlargement negotiations over North Macedonia’s disrespect of extant bilateral obligations. Finally, the Biden administration has manifested the US’s renewed interest in the Bulgaria’s internal politics and international orientations. Thus, the result of the vote has wider implication for the European and Euro-Atlantic political and geo-strategic stability.
Background — Two failed elections
April 2021: How the parties ‘hung’ the parliament
Last April, Bulgarians voted to renew the sitting parliament in the general elections. However, after a summer-long wave of protests against the Prime Minister and the Attorney General, established parties looked rather weak.
According to most experts, this new season of contestation has mobilised new voters, previously disenchanted about politics. As a result, the parties and the leaders who casted themselvesas supportive of the protests increased their votes. In particular, the neo-liberal coalition Democratic Bulgaria (DB) got the support of the well-educated and those residing in bigger cities. Meanwhile, the personal parties Stand Up! Bastards Out! (ISMV) and There is Such a People (ITN) fished across the board.
But they cannot persuadePM Boyko Borisov’s supporters that his removal from office is a precondition for societal improvement. Thus, despite the many corruption scandals involving Borisov’s cliques, all polls forecasted his party, GERB, would have won the election.
Or, to be more precise, GERB won the ballot count — but without a majority (see Figure 1). Moreover, the indignation did not spare the Bulgarian Socialist Party (BSP), which sometimes vents sympathies for GERB despite its corruption. In addition, the elderlies are overrepresented amongst the BSP’s voters, the party suffered from Covid’s increasing morbidity during the spring. Hence, the main traditional opposition party lost votes in favour of the abovementioned ‘protest parties’, weakening the wider anti-Borisov front.
Against this background, there was absolutely no chance of seeing a cabinet get through a vote of confidence. In fact, GERB won 75 seats and the DPS, an ethnic-Turkish party closely associated with GERB, got other 30. Meanwhile, the so-called “parties of the protest” had only 93 representatives on the 121 needed to form a government. True, the BSP managed to hold on to 43 seats — enough to make the protest parties’ eventual confidence motion pass. But DB and ITN refused to engage in serious negotiations with the socialists, forcing the parliament to disband.
The President scheduled new election in July.
July 2021: How politicians (did not) made it through another hung parliament
Most Bulgarian parties and their leaders failed to understand the real meaning of the election results in July. In fact, for the first timesince its appearance in 2009, GERB failed to win the most votes. In part, this could be explained arguing that a large share of GERB’s constituency does not vote ideologically. On the contrary, researchers hypothesise that support for Borisov’s party stems chiefly from the networks of clienteleshe has established. Thus, it was relatively uncomplicated for the President-appointed caretaker government to disincentivise practices such as vote buying and controlled voting. Either way, subsequent sociological analyses and available data show that GERB’s voters demobilised more than other parties’ supporters in July.
Conversely, the so-called ‘parties of the protest’ were the main beneficiary of the disengagement of GERB’s voters. True, most of the ITN’s, DB’s and ISMV’s voters were not ideologically committed to their party of choice either. Nevertheless, the results showed that protest voting can be powerful enough of a force to uproot an already-destabilised party system. In fact, all three parties increased their share of the vote and number of seats (see Figure 2). In addition, ITN’s votes increased in absolute terms by 92,000 units despite an eight-percent reduction in turnout.
After having seen the results, Borisov’s adversaries, especially President Radev, imagined the parties could agree on a new cabinet. In fact, GERB and the DPS lost 13 seats. Meanwhile, the so-called “parties of the protest” had as many as 112 representatives and the BSP was left with 36. Eventually, strong of its 65 deputies, ITN came up with the offer for DB, ISMV and the BPS. Essentially, ITN would form a minority “cabinet of experts” following an agenda agreed amongst the four parties. In other words, ITN came up with a confidence-and-supply arrangement which would have denied its partners any post. However, the populist reason which drives ITN’s strategy led to a massive failure although there was a draft government programme. Namely, according to several rumours, DB requested to rediscuss some of the cabinet members’ nomination as part of the agreement. Predictably, ITN’s preconceived denial to negotiate on the names caused DB’s rebuttalof the entire confidence-and-supply mechanism. Obviously, the BSP and ISMV opportunistically abandoned ITN’s wretched locomotive before the egregious failure of its government in pectore.
The President scheduled new election in November.
Yet another parliamentary… and finally a cabinet?
Considering the previous two votes’ result, it is unsurprising that few analysts tried to call the last electoral round. Indeed, much of this unpredictability stemmed from the decision of two President-appointed caretaker ministers to form a new party. Actually, the names of former finance minister Kirill Petkov and former economy minister Asen Vasilev were little known until May. However, the former’s intense public activity in the revealing the corrupt practicesof Borisov’s administration made him very popular. Moreover, Petkov’s rhetoric emphasises, unlike that of most other Bulgarian political leaders, dialogue, trust and teamwork— especially with Vasilev. Lastly, Petkov and Vasilev made a wit choice in calling their party We Continue the Change (PP). In fact, the name underlines continuity with the caretaker government’s activity and suggests a connection with its appointer, President Radev. After all, the President remains the most popular Bulgarian politician and PP benefitted from his informal blessing (Figure 3).
Overall, the results are surprisingto say the least (Figure 4). Although the turnout fell again to slightly less than 40% of eligible voters, PP achieved a convincing lead over GERB. At the same time, the entire political panorama changed dramatically virtually overnight. After a months-long decline, ISMV failed to clear the four-percent threshold to enter the parliament and risks disappearing. Evidently, the BSP continued its decline, ranking fourth – even after the DPS – and losing 54 seats on its pre-2021 level. Interestingly, PP seems to have syphoned offso many votes from the protest party par excellence, ITN, to shrink it to 25 seats. The same dynamic drove votes from PP to DB, whose leader admitted the two parties’ self-evident ideological affinity recently. Finally, a nationalist ‘protest’ formationmanged to elect 13 deputies, remedying nationalists’ failures in April and July: Văzrazhdane (‘National Revival’).
Looking at the mere numbers of seats in the parliament, one would reach a simple conclusion. And some already say that the Bulgarians will soon have to deal with a new cabinet, with Petkov as PM. However, the most refined analysts have noted that the parties may fail to form a government for the third time.
Conclusion — What to look for in the next weeks and months
The most fascinating aspects of Bulgaria’s current election cycle is not new to those who follow Israeli politics, for instance. In fact, as it happened in Tel Aviv after Netanyahu’s failure to form a government, many feel changes coming. However, in Sofia like in Tel Aviv, there are still many unknown quantities to deal with in politics’ general equation.
Obviously, the reference is most directly to Văzrazhdane — this absolute newcomer to parliamentary politics. First, the party has adopted rather ‘atypical’ stances on, amongst other topics, Bulgaria’s NATO and EU membership. Curiously, most of the party’s propaganda material is freely and easily accessible online through social networksand Văzrazhdane’s website. Besides the fact that the majority of its activists and candidates are open to have an online chat with anyone. Hence, it is reasonable to expect that at least part of Văzrazhdane’s 127,568 voters is well aware of its ideals. Nevertheless, it may not be able to coalesce with a strongly pro-EU, neo-liberal and verticalized party as PP without denaturing. Second, the party’s modest success may be more sustainable in the medium to long term than that of PP. Differently from PP, ITN, ISMV and otherBulgarian leader-driven political projects, Văzrazhdane has been growing up for year. In effect, a few sociologists and analysts were already singling out the party’s positive trajectory in July. Thus, its ideas may turn into a long-lasting destabilising factor for Bulgaria’s usually dull foreign policy in the coming years.
Furthermore, one can argue at length on what these results say on the state of Bulgaria’s liberal democracy. Sure, neither PP nor GERB are a serious threat to democracy as a procedural rule involving elections. However, both parties pose an unmistakable menace to the country’s already fledging liberal institutions. In fact, both Borisov and, in his short tenure to nowadays, Petkovhave shown little appreciation of parliamentarism. Moreover, Petkov embraces a brand of neoliberalismwhich implies a few carrots(e.g., raising pensions) and much more stick. In fact, he has only criticised entrepreneurs whom others have already associated with Borisov and promised not to raise taxes. In addition, he has an open feud with the Constitutional Courtover his dual citizenship — which invalidated his ministerial appointment. Finally, Petkov and his associated have approached the pandemicas a common-sense matterdespite the ongoing compression of citizens’ freedoms.
Therefore, the future remains unpredictable. Especially assuming that a Petkov cabinet would have the support of both the EU and the President. In fact, left unconstrained by Brussels in the name of stabilitocracy and supported by Radev to finish off his archenemy, Borisov, Petkov and his associated may end up rewriting the rules of Bulgarian politics in an elitist way. After all, they have already done it by violating all constitutional customs on caretaker governments’ self-restraint. Why not to try again?
Engaging Morocco: A Chess Game Spain Does Not Want to Lose
In a game of chess, each player knows the type of game they are playing and takes turns moving the pieces. In addition to the relative advantage of making an opening consistent with your objectives, you must anticipate your opponent’s moves and plan accordingly.
Morocco moved pieces on May 17 and 18, 2021, when it let in 8,000 immigrants in the city of Ceuta, a Spanish territory in Africa and external border of the European Union. It did so without warning, neglecting its functions as border guardian and allowing the entry of a mass of migrants amounting to 9.5% of Ceuta’s population.
This episode is of unprecedented character: it occurred in the context of a geopolitical change in the Maghreb, within an unparalleled worsening of Rabat-Madrid relations, and it was of an unmatched magnitude. The particularity of the event demands an assessment of the relations between both countries and of Spain’s strategy towards Morocco. Does Madrid know that it is playing chess with Rabat? Is it capable of reading the moves of Morocco in advance? Does it have an effective strategy?
This act takes place during a period of dramatic change in the Maghreb area. Namely, hostilities over Western Sahara broke out again in 2019. Further, Morocco’s relations with Algiers have drastically deteriorated, while its relations with Europe have become more strained following the CJEU rulings in 2021 and conflicts with France and Berlin. Washington has increased its support for Morocco, recognizing its sovereignty over Western Sahara and providing arms supplies and military cooperation. In parallel, Rabat is making a pivot to Africa, strengthening ties with the Sahel and extending its diplomatic contacts with Nigeria, Senegal and other West African countries. These changes enhance the importance of Morocco’s movements and highlight the relevance of its interactions with its only European neighbor: Spain.
Relations between Spain and Morocco have always been conflictive and prosperous in equal parts. In addition to the positive aspects of trade relations, economic complementarity and cooperation in the fight against terrorism, there are also problematic aspects: territorial claims over Spanish possessions in Africa, maritime delimitation issues and immigration. Morocco’s rejection of the principle of Uti possidetis juris, seeking to change the borders inherited from colonialism, has brought conflict to its relations with its neighbors. With Spain, this is evident in events such as the Ifni War (Morocco-Spain), the Green March, the Perejil crisis and the events in Ceuta in May of this year.
In the media, relations between the kingdoms of Spain and Morocco are shaped by conflicts, such as the Perejil Crisis in 2002 and 2010-2011 without a Moroccan ambassador to Madrid. These confrontations, usually involving Spanish territories in Africa or issues of great public sensitivity such as migration or the Western Sahara, are short-lived and normally quickly resolved. As a result, relations between Madrid and Rabat are cyclical in nature and form part of Spanish domestic politics. This conditions that the high points in their relations never last long and that Spain’s responses in discussing the Sahara, Ceuta and Melilla publicly are avoidant rather than assertive. Within this framework, the events in Ceuta 2021 can be understood as a new setback in the development of complex relations.
These conflicts contrast with Spain’s deeply intertwined economic interaction with Morocco. Sectors such as automobiles, textiles and agriculture form part of the same value chain. Morocco is Spain’s second largest non-EU partner while Spain has overtaken France as the main supplier to Morocco. This responds to the concept of the “cushion of interests” put forward by Spain in the 1990s. The core idea of this strategy is that increased economic interdependence will reduce political tensions. According to this theory, since Morocco’s economy is more dependent on Spain than Spain is on Morocco, Rabat would be constrained in its political movements. However, given the frequency of conflicts between the two kingdoms, this liberal approach is of doubtful effectiveness.
The combination of frequent misunderstandings and growing economic interaction is not the only paradox to be noted in the relations of the two kingdoms. On the political level, the synchronization between the countries’ royal houses (mainly between Juan Carlos I and Hassan II in the past but also between Mohamed VI and Felipe VI at present) stands in contrast to the six years without the annual high-level meetings required by the Treaty of Friendship between the two countries. Moreover, Prime Minister Sanchez has broken with the Spanish tradition of paying the first foreign trip to Morocco, in place since the 1980s.
In short, the problems between Madrid and Rabat are cyclical and greatly affect Spanish domestic politics. Neither the strength of the commercial interaction nor the closeness between their kings are enough to smooth relations between the two countries.
The axes of the relationship between Spain and Morocco
The complexity of the relationship between Spain and Morocco revolves around six axes: migration, terrorism, energy, Sahara, Ceuta and Melilla, and the European Union. Each axis generates a series of opportunities and vulnerabilities for Spain, and it is the confluence of these axes that determines the ups and downs between the two countries.
The first of these axes is migration. Due to its sustained omnipresence in the media, it is the one that most concerns Spanish domestic policy. Sub-Saharan and Moroccan immigrants arrive to Spain through two different routes: by sea (to the peninsula and the Canary Islands) and by land (through the Spanish cities in Africa of Ceuta and Melilla). Since 1992, Madrid has increased cooperation with Rabat in this area.
Currently, the border externalization system is present in the repatriation of immigrants, the joint maritime police patrols, the joint police stations, the raids against massive assaults on border fences, and the construction and control of the Nador fence in Morocco. These projects are financed by European funds, which Morocco would like to see increase. This collaboration is asymmetrical: Morocco has sole control of the border, and Spain depends on its goodwill. Rabat, aware of this, does not hesitate to instrumentalize the issue.
The second axis is anti-terrorism and security cooperation. Collaboration in this area originated with the terrorist attacks in Madrid on March 11, 2004. Cooperation now extends to police, judicial and intelligence cooperation. In addition, with the aim of controlling radicalization, Rabat appoints part of the imams in Spain. Here again, the asymmetry is in favor of Morocco. The Moroccan imams could position themselves in favor of the interests of their country of origin. Moreover, anti-terrorist cooperation is essential for Spain’s national security, and its potential loss would put Spain at risk.
The third axis is energy. The Spanish presence in this field is extensive, with participation in Morocco’s solar and wind power development and in its combined cycle power plants. In addition, Spain exports electricity to Morocco through two interconnections with the Iberian Peninsula, which accounts for 20% of the Moroccan demand. Spain used to be dependent on the Maghreb-Europe gas pipeline, which passed through Morocco. Its closure in November 2021 has reduced this dependence but has posed a problem to guaranteeing gas supplies to Spain. In this field, Spain has the upper hand: it has vetoed the Mediterranean Solar Plan in Morocco (to avoid competition with Spanish renewable production) and has rejected a 3rd electricity interconnection requested by Morocco.
The fourth axis is that of Western Sahara. This former Spanish colony is of visceral importance to Morocco. In the heart of its territorial claims, the conflict remains ongoing since it began in the 1970s, and Rabat lacks international support on its position. Moreover, it is a topical issue, around which Morocco has recently won American support, French and German rejection, and on which it has declared that it will not sign trade agreements that do not include Western Sahara.
Spain faces a dilemma since it must choose between its public opinion (sensitive to the Saharawi cause) and its trade relations with Morocco. As a result, it maintains a dual position. Officially, Spain supports a solution through the UN, sends humanitarian aid to the Saharawi refugee camps in Tindouf, recognizes the Polisario Front as representative of the Saharawi people and rejects Moroccan claims to Canary Islands waters on the grounds that Rabat has no sovereignty over Western Sahara.
Nevertheless, it applauds the autonomy project proposed in 2007 by Morocco (which does not envisage independence), rejected the US initiative to extend MINURSO’s mandate to human rights monitoring in 2013, and defends Morocco’s interests (and its own) before the judgments of the CJEU on trade agreements involving Western Sahara. The complexity of this axis, which forces Spain to walk in two directions at the same time, is a threat to any constructive relationship with Morocco.
The fifth axis is Morocco’s claims over the autonomous cities of Ceuta and Melilla and the Spanish islands off the Moroccan coast. Rabat’s endeavor to re-establish its “authentic” borders does not end in the Sahara, further extending into these Spanish territories, over which it has a permanent claim.
These territories have four problems.
- Economically, they are dependent on Moroccan trade and on Spanish subsidies,
- demographically, the growth of the population of Moroccan origin causes changes in the social structure that can be a source of conflict,
- international protection is relative, since the Spanish territories are not explicitly protected by NATO, and although they are part of the EU and the Schengen Area, they are not within the Customs Union,
- the islands do not appear in the Spanish Constitution nor in the Spanish territorial organization.
Taking advantage of these weaknesses, Morocco has used different strategies to strengthen its claims: economic blockades, vetoes against further integration into the EU, a rhetoric of colonialism, and comparisons to Gibraltar, and even the Perejil crisis in 2002, in which a small group from the Moroccan navy occupied one of the Spanish islands. This axis has a latent presence in the relations between both countries: although Madrid avoids its public mention, Rabat’s claims may end up in direct confrontation Spanish national interests.
Finally, the sixth and last axis is the European Union. Spain´s relationship with Morocco is based on the European Neighborhood Policy and on the Union for the Mediterranean. Besides, this relationship currently revolves around the provision of funds to Morocco for the externalization of borders, the agriculture and fisheries trade agreements, and the rulings of the CJEU on these, which since 2015 have complicated Brussels’ relations with Rabat. Indeed, Morocco has changed its attitude towards the EU since 2008, reducing its concessions, increasing its demands and adopting a more pragmatic discourse. In the framework of Madrid-Rabat relations, the EU has acted as an appeaser, reducing bilateral conflicts. However, Spain is limited within the multilateral structure, since it cannot impose its preferences and its power is confined to blocking initiatives (as it did with agricultural liberalization for example). Moreover, the judgments of the CJEU have poisoned the bilateral relations between Spain and Morocco.
What nowadays is cooperation in migration, security and energy, due to conflicts around the Sahara or Ceuta and Melilla may one day become an undesirable dependency. Too many issues related to Spanish national security are subject to Rabat’s goodwill. That is why the disagreements between the two countries cause so much commotion in Spain, even if they do not always revolve around each of the 6 axes described above.
Ceuta 2021 — Another crisis or a point of no return?
This article begins with the events of May 18, 2021, when Morocco loosened its border controls and allowed more than 8,000 undocumented migrants, mostly young Moroccans, to enter the city of Ceuta. The figure is unprecedented, around 10 times higher than what used to be received until then. It is worth asking whether this event is a simple downturn in the cyclical relations between Morocco and Spain, or whether it implies something different.
When the Ceuta crisis in 2021 is put into context, an extraordinary deterioration of relations between Morocco and Spain is observed, enhanced by unilateral actions by Rabat. In 2018, Morocco closed the commercial border with Melilla. In 2019, it toughened the fight against smuggling in Ceuta, hindering the border crossing and prohibited its officials from entering Ceuta or Melilla. To this day, this has subjected both cities to an unprecedented economic asphyxiation. In 2020, Morocco vetoed the entry of Moroccan fish into Ceuta and revived the dispute over the delimitation of maritime borders in Canary waters. In 2021, it installed a fish farm in Spanish waters near the Chafarinas Islands without permission. In recent years relations between the two countries have worsened gradually, camouflaged behind the Covid-19 pandemic and around issues of relative relevance, which only indirectly affect the 6 axes above mentioned.
In contrast, the Ceuta crisis is relevant in almost every aspect.
- Morocco is instrumentalizing immigration, leaving aside its obligations as border guardian.
- The Western Sahara conflict lingers in the background: the crisis was a form of protest by Rabat against the hospitalization in Spain of the Polisario Front leader Brahim Ghali, organized in an opaque manner by Madrid.
- Despite Rabat’s attempts to keep the crisis within the bilateral framework, it escalated to the European Union, where Spain received the support of the European Commission, the European Parliament (which issued a condemnation for violation of children’s rights against Morocco), and even of France.
- The crisis was followed by the reactivation of territorial claims over Ceuta and Melilla: The Moroccan Prime Minister compared the situation to Western Sahara.
Faced with the numerous and unusual vectors of this crisis, Spain must identify what objective Morocco is pursuing, and what its next steps will be. Rabat is obviously trying to capitalize on the momentum provided by the U.S. recognition of its sovereignty over the Sahara and its vigorous relations with some of its African neighbors.
Moreover, the deterioration of relations has coincided with a deterioration of Spanish domestic politics, while Morocco is taking advantage of independence, government instability, COVID-19, etc. Is Morocco pursuing a strategy against Spain? That is what the Spanish intelligence presumes, without knowing very well what strategy it is. In fact, the CNI considers the Ceuta crisis not to be an immigration problem, but an invasion that can be repeated again. Rabat could have taken the conflict into a gray zone, in which case it would be establishing the environment, waiting for opportunities.
The current situation is not part of the cyclical pattern that characterizes its relations with Morocco. Ceuta and Melilla are suffocating, Spanish intelligence fears losing anti-terrorist collaboration with Morocco, Rabat is in a strong position, and Madrid is unable to recognize what Morocco’s next step will be, limiting itself to trying to put an increasingly entrenched relationship back on track. The impetus with which Rabat is pushing for the recognition of its sovereignty over the Sahara, and its extrapolation of this to Ceuta and Melilla, suggests that the disagreements with Spain are not over.
In all this, Spain’s strategy towards Morocco is ineffective. The liberalism of the cushion of interests has failed. It was based on elements that were of national interest for Spain (migration, terrorism, etc.) but not for Morocco. The only sphere where Madrid has an advantageous position is energy: Spain exports electricity to Morocco, continues to refuse to establish a third electricity interconnection, and is receiving Moroccan requests for Spain to re-export Algerian gas. Moreover, Spain has learned that Morocco fears losing its reputation with the European Union and is trying to prevent the EU from getting involved in its bilateral relations. Thanks to the EU intervention, Morocco made a misstep during the Ceuta crisis this year.
However, everything suggests that Madrid is confident that the ups and downs will continue to prevail in its relations with Rabat and it accepts Mohamed VI’s invitation to inaugurate an unprecedented stage in the relations between the two countries. It is foreseeable, therefore, that Spain will keep Morocco as one of the two pilot countries of its Focus Africa 2023 plan, giving it and Senegal unparalleled attention in the development of constructive relations, and will export this experience to other African countries. In a game of chess, each player knows the type of game he is playing and takes turns moving the pieces. Spain knows that it is playing, but it has not realized that the game has changed, and that the chessboard is different. It has skipped several turns and, for too long now, its pieces have been sitting immobile.
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