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EU and Armenia Seize Momentum to Enhance Partnership and Cooperation

Anzhela Amirjanyan

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On the sidelines of recent NATO summit, the leader of Armenian “Velvet revolution”, current Prime Minister Nikol Pashinyan had separate talks with the European Commission president Jean-Claude Juncker and the president of the European Council Donald Tusk during which the leaders exchanged views on different issues over the further deepening of the Armenia-EU ties. The EU top officials affirmed their commitment to support Armenia’s comprehensive reform agenda. EC president Donald Tusk reaffirmed the EU’s willingness to assist in the future reforms in Armenia, promising a continued support to democracy-building efforts in the country.

“What happened in Armenia was extraordinary and, I must say,very European.The example you set was very promising, and you can expect the European Union’s support in the process of implementing reforms,” Tusk said.

Apparently, branding the “Velvet revolution” in Armenia as European-style movement wasn’t an empty statement rather than a gentle hint about the contribution that EU had in civil society development in Armenia and the investment in the youth through mobility projects in the field of education and training to encourage democratic engagement and civic participation. Undeniably, youth activists and civil society were at the core of the recent revolutionary struggle in Armenia. In this regard, the “Velvet revolution”in Armenia was unique and historic as it involved mainly youth, including schoolchildren and students, who moved to streets to challenge adult society.

After holding the talks with EU leaders, Armenian PM Nikol Pahinyan in his turn voiced sharp criticism of EU for not increasing its financial assistance to Armenia following mass protests that led to change in government which is now committed to zero tolerance approach towards corruption.

“I am surprised that certain officials in the EU haven’t noticed the ongoing changes in Armenia,” he stressed at news conference.

The EU most probably incurred Pashinyan’s reproach for providing financial aid to previous leadership, which haven’t made much progress towards democracy and economic growth, and which often vowed zero tolerance for corruption, but  its anti-corruption rhetoric was more likely an aspiration for the future rather than a practical political agenda.

Indeed, it would be unwise to dispute the veracity of the statements expressed by the EU leaders and Armenian PM, given the EU’s profound impact on Armenia’s democratization, rule of law and good governance, and Armenia’s need to diversify its foreign policy having channels open with the West,and the need for financial support to modernize itself.

To deepen understanding of the vital role EU plays in the transformation of Armenian society, we should delve into the EU’s financial support schemes Armenia benefits from.

Article 8 of the Treaty on European Union (TEU) states that ‘‘the Union shall develop a special relationship with neighbouring countries, aiming to establish an area of prosperity and good neighbourliness, founded on the values of the Union and characterised by close and peaceful relations based on cooperation’’. The EU distributes its development assistance through its external financing instruments.These are the Instrument contributing to Stability and Peace (ISP), European Instrument for Democracy & Human Rights (EIDHR), the Partnership Instrument (PI) and the three relevant geographic instruments-the Instrument for Pre-accession Assistance II (IPA), the European Neighborhood Instrument (ENI) and the Development Cooperation Instrument (DCI).

As known, EU cooperates with Armenia in the framework of the European Neighbourhood Policy and its eastern regional dimension, the Eastern Partnership. The European Neighbourhood Instrument (ENI) is the key financial instrument established in 2014 to fund the European Neighborhood Policy for the period 2014-2020. It replaces the European Neighbourhood and Partnership Instrument (ENPI) of 2007-2013. The ENI is designed to promote integration by partner countries into the EU market; economic development; good relations and bilateral and multilateral collaboration; institution and capacity building; democracy, the rule of law and human rights; and orderly and legal movement of people across the EU’s external borders.

Support through the ENI is programmed and given in three different ways:

  1. Bilateral programmes covering Union support to one partner country;
  2. Multi-country programmes which address challenges common to all or a number of partner countries, and regional and sub-regional cooperation between two or more partner countries;
  3. Cross-Border Cooperation programmes between Member States and partner countries taking place along their shared part of the external border of the EU (including Russia).

Armenia participates also in regional programmes funded under the ENI (mainly in environment, energy, transport, culture and youth), in the Eastern Partnership Flagship Initiatives, and in initiatives open to all Neighbour countries: Erasmus+, TAIEX, SIGMA, and the Neighbourhood Investment Facility (NIF). The NIF in Armenia targets primarily investment projects in energy and transport infrastructure projects. It does so by pooling EU and Member State funds to leverage loans from European financial institutions and contributors in the ENP partner countries.

In addition to the ENI, Armenia is eligible for financial support under the EU thematic programmes: the European Instrument for Democracy and Human Rights, Instrument contributing to Stability and Peace, Civil Society Organisations and Local Authorities, Human Development and Migration & Asylum.

The priorities and indicative allocations for financial assistance to Armenia are set out in the Single Support Framework (SSF). For the programming period 2017-2020 the indicative allocation is EUR 144,000,000 to EUR 176,000,000.

Under the Support Framework the priority sectors selected for support are:

  • Economic development and market opportunities (indicatively 35% of total budget);
  • Strengthening institutions and good governance (indicatively 15% of total budget);
  • Connectivity, energy efficiency, environment and climate change (indicatively 15% of total budget);
  • Mobility and people-to-people contacts (indicatively 15% of total budget);

A key complementary support also will be provided through regional and multi-country programmes for

  • capacity development/institution building and strategic communication
  • ( indicatively 15% of total budget)
  • civil society development (indicatively 5% of total budget).

While analyzing the Programming of the European Neighbourhood Instrument’s Single Support Framework for EU support to Armenia-2017-2020, we see that the main risks to achieving progress vis-à-vis the above-mentioned priority sector objectives are mainly the lack of the promotion and coordination of the relevant policy measures, especially concerning business environment and fair play; government commitment to the reforms in public administration, but especially in the judicial sector, fighting corruption and promoting human rights; governance, in particular   the strategy and prioritization of investments; and political will.

The latter is believed to be sine qua non of any successful anti-corruption policy. Apparently, the new Armenian government has taken a route of intense fight against corruption by making a number of scandalous disclosures, involving high-ranking officials. Other above-mentioned risks can be mitigated through investor-friendly and development-oriented policies to be carried out by the new government. Hence, the future progress towards reform objectives will justify more EU support and investments. New agreement with Armenia, known as the Comprehensive and Enhanced Partnership Agreement (CEPA) initiated by previous authorities, which promises financial assistance and trade opportunities, can become an impetus for further domestic reforms.

So, the new Armenian government should seize the momentum to strengthen the relations with EU to support the democratic aspirations of the Armenians. The EU, in its turn, should make correct use of conditionality and align its approach with Armenia’s strategic objectives.

Anzhela Amirjanyan, Graduate, International Relations, Yerevan Former stagiare at European Parliament's Directorate General for External Policies

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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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