Adding a new twist to the divisive issue of the timetable and terms of Britain’s withdrawal from the European Union, UK Prime Minister Theresa May has asked the EU to postpone Brexit until June 30, 2019, the BBC reported.
In a letter to the EU leadership, May said that the proposed delay would give the British parliament more time to agree a Brexit deal to prevent Britain from crashing out of the bloc. She added that London would try to leave the EU before the May 23 elections to the European Parliament.
The situation has thus become absolutely confusing. In an effort to break the current logjam, Theresa May recently engaged in unprecedented direct talks with the opposition Labor Party. Meanwhile, the European Union has reiterated its refusal to make any further concessions to London by making it clear that it would only agree to postpone Brexit until May 22 (which is currently being considered in London as a compromise option) if the British House of Commons approved earlier rejected withdrawal options put forward by Theresa May, before April 12. If not, the UK would have to leave the European Union on that very day without any agreement.
According to The Guardian, the discussions Theresa May had on the subject with Labor Party leader Jeremy Corbyn on April 3, centered on thrashing out an alternative Brexit plan May was to present to the leaders of the EU member countries during the April 10 summit.
The May-Corbin parley was preceded by a Cabinet meeting on April 2 and a televised address to the nation, which May made later that same day, saying she was ready to cooperate with Labor and essentially opted for a softer version of Brexit, which, among other things, would keep Britain in the EU Customs Union and in the common trading area (the so-called “Single Market 2.0”).
Teresa May promised that if the talks with the Labor Party did not work out, she would implement the legislators’ will and act as they decided.
Commenting on the outcome of the Cabinet meeting, May said that even though the UK is ready to leave the European Union without a prior agreement, an orderly Brexit based on a treaty would better meet the country’s interests.
“This is a decisive moment in the history of these islands, and it needs national unity to deliver the national interest,” she reiterated.
Theresa May is working hard to avoid Britain’s participation in the May 23-26 elections to the European Parliament. According to EU legislation, each member of the bloc must be represented in parliament, and, as confirmed by European Commission President Jean-Claude Juncker, if the United Kingdom does not leave by the end of May, it will be obliged to take part in the European elections.
Still, no matter how strongly the British government may hope, London will be preparing for the May vote in the event of an emergency, Bloomberg reported, citing its own sources.
Theresa May’s readiness to make concessions despite her previous promise to step down as a condition for approving a previously agreed deal with the EU is dictated by a clear realization of the hard fact that there is virtually no other politician in the UK ready to take responsibility for finding a generally agreed way out of the current impasse, if, of course, this is possible at all. Meanwhile, it looks like no one in London has any desire to “rake the rubble” of this controversial and risky project. That being said, however, all parties have their own opinion on this subject and influence it each in its own way.
With the situation unfolding as it is, the opposition clearly felt it could score additional points and extract new concessions from the prime minister. In an official statement, the Labor Party stated that during the negotiations the parties had “agreed a program of work between our teams to explore the scope for agreement.”
However, in an interview with Sky News, Jeremy Corbin said that although during their meeting he and Teresa May had presented their own positions on Brexit, a series of additional meetings would be required to coordinate these positions.
Mr. Corbyn described the meeting as “useful but inconclusive,” adding that “there has not been as much change as I expected.”
“I put forward the view from the Labor Party that we want to achieve a Customs Union, and that we want to have access to the (EU) market,” he added.
Jeremy Corbin also said that he outlined the party’s position on the possibility of holding a second public vote on Brexit in order to prevent a “no deal” withdrawal from the EU, which would have dire consequences for the country’s economy. He added that Prime Minister May was seeking Labor’s support for the government’s draft agreement pertaining to the terms of Brexit as well as for the political declaration attached to it.
Meanwhile, Theresa May has been faced with increasingly strong criticism from hard-line Tory Brexeteers for softening her initial position.
“It is very disappointing that the cabinet has decided to entrust the final handling of Brexit to Jeremy Corbyn and the Labour Party. It now seems all too likely that British trade policy and key law making powers will be handed over to Brussels – with no say for the UK,” tweeted former Foreign Secretary Boris Johnson.
“I think the result will most certainly be that Corbyn has his way and we remain in the Customs Union, so that we can’t control our trade policy,” he insisted.
Essentially, Theresa May “has once again drawn a line between the agreement on withdrawal and the political declaration on the UK’s future relations with the EU,” the head of Europe Insight research company Andrei Kulikov noted. He believes that if the sides manage to agree on something, it “will be written down only in the declaration. Therefore, exactly how this will help enlist the support of those who reject the agreement itself is hard to tell.”
“If May keeps piling pressure on Corbyn to support her deal, then they will hardly be able to reach agreement. Parliament will then most likely demand a longer delay and the government will have to go along,” he continued. If the prime minister comes up with a new proposal, for example, one of the alternative plans, then perhaps the Labor Party’s leader will be satisfied, Kulikov observed.
“There will be a lot of political horse-trading, and chances are that the sides will eventually come to terms as they have shared interests, including in avoiding early elections,” he noted.
The EU leadership, wary of the negative financial and economic impact of the continuing uncertainty about the principles and timing of Brexit, has taken a particularly hard stand on the issue, with European Commission President Jean-Claude Juncker insisting that a postponement until May 22 is possible only if Britain’s House of Commons endorses Theresa May’s previously rejected Brexit plan before April 12. The Guardian warns that many European leaders fear that London will not be able to clinch a consensus by that deadline, resulting in a “chaotic” Brexit happening right ahead of the upcoming elections to the European Parliament.
According to the newspaper, any compromise with Jeremy Corbyn is fraught with Theresa May abandoning some of her “red lines,” including Britain’s participation in the EU Customs Union, which is just contrary to what the Conservatives promised.
Commenting on Theresa May’s position, EU Council President Donald Tusk stresses the point that now is too early to judge whether her plan to reach a compromise on Brexit will succeed. Danish Prime Minister Lars Lokke Rasmussen said that the EU could agree to postpone Brexit only if the UK parties found a realistic way out of the European Union. He added, however, that it this would be “hard to believe.”
The financial and economic implications of Brexit – all the more so of a “hard” one without any real transitional period and agreed mechanisms – are probably the key factor explaining the actions of all the main participants in this process – including of the United States. President Donald Trump initially supported Brexit and during his meetings with Teresa May he, in keeping with his own business mentality, invariably tried to prod her towards making quick and radical steps. Britain’s exit from the EU without keeping in place existing mechanisms of trade and customs interaction would effectively undermine the country’s position in world trade and push it towards signing a bilateral trade deal with the US from a position of a weaker partner. Simultaneously, the political and economic weakening of the EU resulting from Brexit, would similarly benefit President Trump and his associates in the White House and on Wall Street.
In an interview with The Financial Times, Mark Mobius, formerly the managing director of Templeton Asset Management, said that the UK increasingly resembles an “emerging market” and risks a currency crash should it leave the EU without a deal next month. According to Mobius, if British politicians fail to prevent an abrupt exit from the EU, the pound would tumble to parity against the dollar and Britain’s credit rating would be cut. Sterling tumbled more than 10 percent immediately after the 2016 poll and has since traded at an average of about $1.30 against the US dollar, Mobius noted, warning that emerging markets may suffer from a “hard Brexit” as well.
It should also be borne in mind that the crisis around Brexit is unfolding against the backcloth of yet another negative factor for the European and world economy, namely the inability of the United States and China to clinch a trade deal. The document was expected to be inked during President Trump’s meeting with his Chinese counterpart, Xi Jinping, in late March. US-Chinese differences linger on though, and Washington now expects bilateral trade talks to be pushed back to summer. Sources say that China is in a better position and is not going to give in and although it really wants a good deal with the US, it still knows that Donald Trump may be needing it even more.
The existing situation gives a reason to expect further consultations between London and Brussels to try to avoid a “hard” Brexit and, at the same time, resist US pressure on the negotiating sides (above all Britain) to fast-track the Brexit process. Now it all depends on the EU’s response.
First published in our partner International Affairs
Fostering Tolerance in Europe: Issues of Migration and Populism in Italy
Authors: Maxim Sigachev and Elena Elena*
Tolerance remains a complicated issue in the West and Russia alike. The challenge, though, remains in the need to account for the connection between the notions of tolerance, social security, and the development of the society. The West tends to adopt a broader perspective on tolerance when compared to Russian practices. In Europe, the notions of ‘tolerance’ is informed by ‘active cooperation’ rather than merely ‘patience’, as is the case in Russia.
There are at least four dimensions to this issue in Europe:
- that of the EU’s regulatory programs;
- that of local communities;
- that of European societies at large;
- that of populism and Euroscepticism, which is believed to be the source of intolerance towards migrants and refugees.
This article is devoted to the problem of the social and political crises in Italy, which have been caused by pan-European problems (i.e., migration, anti-EU attitudes of the public) and strengthened by the national Italian conflicts (the gap between the Northern and the Southern regions, debates between the Left and the Right opposition, the rise of the populist parties etc.).
Social and political discrepancies in Italy
As a part of the EU, Italy has to get through the complex processes of adaptation to a life in a supranational union, which includes profound transformations in socio-economic, cultural, and even religious spheres. If we analyze the election agenda used by the Italian populist parties in the European elections 2019 campaign, we will notice the strong anti-EU discourse and a deep disappointment in the EU politics. Being part of the EU is conceived as a loss of independence. Further, we can notice the increasing deficit of tolerance in many spheres: religious, sociocultural, ethnic, ideological.
Research on the contemporary European political parties notes that Eurosceptical spirit is strong in developing economies and advanced economies (as is the case with Germany and the UK) alike. Thus, Italy’s crises are not necessarily unique but can be found across the Western world as well.
The crisis of Western world order manifests itself on, at least, three levels:
- the supranational level: the rise of the Euroscepticism, which is represented in the lack of tolerance and mistrust towards the European Union as an institution.
- the national level: the rise of the national populism, which identifies the crisis of multiculturalism in the European nations, zero tolerance to immigrants (the European migrant crisis or refugee crisis of 2015–2018) and refugees as bearers of alien culture, a so-called exclusive nationalism.
- the economic level: further strengthening of social populism movements, which signify the end of the European welfare state.
The European societies are characterized by a growing alienation between the rich and the poor, the elites and the people, the establishment and the middle class.
The idea of social and political divisions was first proposed by Stein Rokkan, who studied the existing divisions between political parties that are caused by cleavages between the center and the periphery, the city and the village, etc.
Rokkan’s theory was developed by Paul Lazarsfeld, who studied electoral behavior and stated that “people vote not only for their own social group but also in favor of it”.
According to S. Rokkan, the European party system was developed on the foundation of existing social conflicts. Rokkan also formulated the basic lines of conflicts such as “center—periphery”, “state—church”, “employee—employer”, “city—country”. The social discrepancies of the Lipset-Rokkan theory were built on by French political scientist D.-L. Seiler in the work Whether it is possible to apply the clivages of Rokkan to Central Europe?
We can use this theory to explain the stability of the European political systems in the second half of the 20th century and electoral behavior of the Europeans.
Among the notable works on the cleavage theory are R. Rose and D. Urwin Persistence and Change in Western party systems since 1945  S. Wolinetz The Transformation of Western European Party System Revisited M. Abrams, R. Rose and R. Hinden, G. Evans and S. Whitefield The Evolution of Left and Right in Post-Soviet Russia .
Russian scientists rarely study the Italian political system and electoral behavior in the frameworks of the cleavage theory, as they usually study the different aspects of the political life in their research papers. There are some fundamental works that attempt to analyze facts and knowledge of Italian political thought from the perspective of the communist ideology. Cecilia Kin divided the liberal political thought into purely liberal and catholic in her work Italy at the turn of the century. From the history of social political thought, K.G. Kholodkovsky and I.B. Levin compared the Italian Socialist and Communist parties.
The basic factors of social political crisis in contemporary Italy
The basic factors of the social political crisis in modern Italy can be divided into two groups. The first group includes socio-political divisions of a more historical, traditional character, whereas the second group consists of relatively new, contemporary collisions.
The North-South Divide
The contemporary socio-political crisis in Italy originates from the long-term and unfinished division between the North and the South, which has not been overcome since the Italian Risorgemento (unification) in 1861. Historically less developed Southern Italy has always faced serious difficulties. The process of modernization in Southern Italy is ongoing, the standard of living still pales in comparison to wealthy Northern regions. According to the Soviet-Russian researcher K.G. Kholodkovsky, Italy still suffers from the fact that different parts of the country existed as separate states for centuries. The most important consequence of this Italian historic disunity is economic and cultural gaps between the North and the South.
Polarization between the Left and the Right
The ideological conflict between the Right-wing and the Left-wing political forces also has historically contingent roots and goes back to the period of Risorgimento. In 19th century, the two leading political movements—republicans and monarchists—vied for leadership of a newly unified Italy.
One group of politicians led by Giuseppe Mazini tried to establish a Republican Republic, which was supported by the socialist-utopist Carlo Pisacane. Their ideas became the ideological basement for the Italian republicanism. The second group advocated for a monarchy and was led by Camillo Cavour who would later become Prime Minister of the Kingdom of Italy. Those advocating for monarchy provided a base for conservative right-wing sentiments/ideology.
In the 20th century, there was a divide between fascists and anti-fascists. Those who supported Mussolini espoused conservative views. The anti-fascist coalition united a broad spectrum of political movements including democrats, socialists, and communists.
Today it is impossible to claim that the contemporary Italian Left and Right are descendants of that original opposition, but ideological divides are still a prominent feature of Italian politics.
It would be more correct to divide the Italian parties not only along their preferences of political system but along their attitude toward traditional values as well. Today, political parties on the Right tend to be more nationally oriented and Eurosceptic. They typically advocate for traditional values and greater autonomy from EU Commission directives. They are also staunch opponents of high levels of migration from outside the EU.
The Left is more loyal to the EU and the benefits provided to Italy by its institutions. They also support more progressive economic and family policies. A key difference between left and right in Italy is migration. The left tends to be more tolerant of migrants and refugees and advocate for the integration of migrants into Italian society.
Thus, while the division between the Left and the Right has weakened, it certainly still remains intact. Due to the particularities of the national election law, it is difficult to get the majority of the vote needed and enough seats in the Italian Parliament to form the Cabinet of Ministers. Subsequently, this problem forces the Italian parties to create different coalitions to secure seats in the Parliament. These coalitions are often characterized by the ideology of party members (center-right, right-wing, etc.). This changed in 2013 when a new political party, the 5 Stars Movement, uprooted the traditional political spectrum. Now, there is no pure center-right or center-left coalition. Coalitions have become more volatile as ideological divides become deeper as compared to the situation of ten years ago. For example, the right-wing coalition which included Forza Italia! (S. Berlusconi), Fratelli d’Italia (G. Meloni) and the Northern League (M. Salvini) won the parliamentary elections of 2018. Despite this result, the far-right League abandoned its ideological partners to form a Coalition Cabinet with the Five Stars Movement which cannot be defined as entirely Left or Right-wing.
Recently (in the last decade of the 20th century and the first decade of the 21st century), new collisions emerged: Eurosceptics vs. Eurooptimists, populists vs. traditional political parties, the supporters of migrants vs. opponents of mass immigration (as well as the division between migrants and local communities).
Eurosceptics vs. Eurooptimists
The growth of Euroscepticism in Italy can be attributed to a crisis in relations between the European Union and Italy as well as disappointment from the Italian society in the EU.
Since 1957, Italy has been a strong advocate for greater European integration, however, recently Italy has begun to transform into one of the Euroscepticism centers. According to the sociological data of Eurobarometer, about 50 per cent of the Italian society is disappointed with the European Union.
The question about the relation between Euroscepticism and populism is an intellectual challenge. On the one hand, Eurosceptics are mainly populist movements: not only the anti-immigrant League but also The Five Star Movement. On the other hand, Euroscepticism has been typical for classical Italian communists—the heirs of the Communist party of Italy. Besides, old populism of Berlusconi is more euro-optimistic than the new populism of Salvini.
Particularities of the relations between Italy and the European Union are based on a disagreement in two key issues: immigration policy and the social economic policy.
Populists vs. Traditional Political Parties
One of the results of this political crisis is the growth of social and political populism. Weinstein noted that there are a few approaches to the phenomenon of populism. According to these approaches, a hybrid phenomenon seems to exist in different dimensions: as an ideology, as a specific style of politics, and as a specific form of political organization. The Italian populism started with Silvio Berlusconi coming to power in 1994. Berlusconi is perceived as the founding father of Italian populism, who managed to unite center-right forces. K.G. Kholodkovsky underlines that “populism has in new conditions become a complex of sense and values, uniting many Italians in being connected with the illusion of personalistic overcoming of the gap between authorities and citizens. The breaking of the barriers between the authorities and the people has found its personification in the figure of the uniter of the center-right forces Sylvio Berlusconi” As noted previously, the rise of Berlusconi came against the background of the collapse of Christian Democratic and the Communist parties. This fact reflects an important feature of populism:
- Populism is a consequence of the crisis of the traditional party system, the disappointment with classical parties and party leaders.
- Populism has overcome the traditional division between the Left and the Right.
- Populist parties are often reliant on a strong leader with a distinct character.
Pro-migrants vs. Anti-migrants
The migrant crisis manifested itself most significantly in Southern Italy, since the coast of the Italian South is the closest to the North Africa. From a geographical perspective, this fact has turned the Southern part of Italy (especially the island of Lampedusa) into a gate from Africa to Europe for immigration. The immigration issue is not a new one for Italy. There were several waves of internal migration from the Southern to the more economically developed Northern regions. This process fostered resentment between citizens from different parts of the country. However, the European immigration crises as well as burgeoning crowds transformed this internal cleavage into an external one.
The intensification of the migrant crisis in Italy and in the European Union has been reflected in public opinion. According to Eurobarometer, about half of Italians consider immigration as the most important problem for the European Union, whereas another half of the Italian society cites terrorism as the most important dilemma. This fact also demonstrates that Italians are anxious about the consequences of the immigration crisis, because illegal immigration is one of the factors of the growing terrorist threat. According to the Eurobarometer spring 2016 data, 44% of Italians pointed immigration as the most important problem of the European Union. By autumn 2016, this number rose to 49,1%, by spring 2017—fell to 40%, then in autumn 2017—fell again to 38%, by autumn 2018—rose to 41%.
The growth of anti-immigrant sentiments in the Italian society has led to the emergence of the new nationalism, which is typical not only for the poorer regions but also for the richer ones. The figurehead of new nationalism in Italian politics is the League, formerly the League of the North, which has changed its name to appeal to broader segments of Italian society.
Thus, the migrant crisis has added a new collision between migrants and Italians. The problem of illegal migration became an accelerator of the existing Italian conflicts rather than an entirely new phenomenon. Illegal immigration has essentially accelerated these already-existing Italian conflicts.
Economy and culture are the two principal ingredients of the Italian mindset and are sources of intense socio-political divisions, as economic reasons lead to a rise of new divisions, as well as feeding traditional ones.
Economic crises lead to social and political crises. Nowadays, Italian voters are disillusioned with the existing political order giving way to new and less ideologically driven parties. Yet, these parties’ first years in power have demonstrated their weakness in taking action to overcome the existing crisis.
For example, under Giuseppe Conte’s First Cabinet, known as “yellow-green government of change” (due to the colors of the League and the Five Star Movement), inter-coalition conflict between Salvini and Di Maio led to a significant political crisis, creating a weaker position for the Five Star Movement and the ambitions of the League’s leader Matteo Salvini for domination. On September 5, 2019, Conte’s Second Cabinet was formed, usually referred to as the “yellow-red government”, because it was supported by the “yellow” M5S and the center-left “red” Democratic party.
The internal political situation in Italy remains unstable, which also results in instability of its foreign policy. Irrefutably, the impact of the COVID-19 pandemic has contributed significantly to the Italian political crisis. On February 13, 2021, the dilemma peaked when Prime Minister Guiseppe Conte stated he would resign from office. Pro-European technocrat Mario Draghi became the newest Prime Minister of Italy in the wake of Conte’s resignation. Draghi leads a unity government consisting of mainstream political parties and populist parties such as the League and M5S. This government only failed to garner support of the far-right Brothers of Italy.
Although Draghi has enjoyed widespread support throughout the coronavirus crisis, in the post-covid world there are long-term prospects for conflict between Italy and the EU and between Italy’s internally divided political system.
*Elena Elena, PhD student at the Institute of Socio-Political Research under the Russian Academy of Sciences (ISPR RAS)
From our partner RIAC
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American diplomacy’s comeback and Bulgaria’s institutional trench war
Even though many mainstream media outlets have not noticed it, US diplomacy has staged a gran comeback in the Balkans. The Biden administration chose Bulgaria as the stage on which to reaffirm America’s hold on the region. Putting strong sanctions on Bulgarian oligarch, Washington is signalling not-so subtly to Russia that its reach goes far and wide. But there are sensible implication for the little South-Eastern European country’s future as well. Perhaps, the fight against systemic corruption is finally reaching its apogee. Could this be the end of misgovernance?
A corrupted country — Introduction
Many argue that corruption in Bulgaria and South-Eastern Europe is but a remnant of national Communist Parties’ half-century long rule. Thus, the EU’s threat to metaphorically swap the carrot for the stick should have favoured a thorough clean-up. Instead, it merely yielded some short-term successes for anti-corruption campaigners, activist judges and specialised procurators. Yet, State capture and malpracticesremain endemic for one reason or another amongst post-socialist countries inside and outsidethe Union. More specifically, these efforts were vain and Bulgaria was still ill-equippedwhen it joined the Union on January 1, 2007. Hence, Brussels allowed in a deeply corrupted country where hidden interest behold even those occupying the highest echelons of power.
If not membership in the European Union, at least internal politics could have helped the country fend off endemic maladministration. Yet, the status quo has preserved itself intact despite calls and promises to root out corruption having been getting louder. In a sense, corruption’s pervasiveness is a feature and not a bug embedded in Bulgaria’s imperfect liberal free-market democracy. These conservative – and, in a sense, perverting – forces have found their embodiment in Prime Minister Boyko Borisov and his associates. Therefore, governmental agencies, political parties, courts and the entire extant structure of power contribute to prevent any change.
The wind of change: Popular unrest and institutional trench war
That notwithstanding, the proverbial ‘wind of change’ may have begun to lash across Bulgaria in summer 2020. After having taken to the streets against the party of power’s abuses and failures, voters abandoned Borisov in the April 2021 elections. Conversely, new parties and loose coalitions of civil-society organisations, formed shortly before the contest, won a relative majority of preferences. And, as many analysts noticed, these newcomers do not share much besides the desire to “dismantle the Borisov system”.
Nonetheless, these new actors failed to form a governing coalition due to the heterogeneity and inherent negativity of their agendas. Thus, President Rumen Radev scheduled new elections on July 11 and appointed a caretaker government.
Indeed, there is an institutional custom prescribing such cabinets to limit their activities to managing current affairs. Nonetheless, these technocrats – many of whom supported Radev in his feud with Borisov – started an extensive review of past governments. In the process, the cabinet reshuffledbureaucracies, suspended Sofia airport’s concession and halted other public tenders for suspected irregularities. More importantly, the ministry of interior has confirmed prior suspects that Borisov-appointed officers may have illegally wiretapped opposition politicians.
In a word, President Radev’s ministers are endeavouring to tear apart the ‘Borisov system’ before the next elections. However, simply ousting most – or even all – of the previous government’s men in key positions within State apparatuses is uncomplicated. Especially when pushing such an agenda is the President,with the palpable backing of an absolute majority of the population. But the Borisov system has also an economic component. In fact, the party of power has set up a tentacular network of supportive oligarchs funding and favourable media coverage. Putting them out of the game is equally, if not more, important than firing bureaucrats — but also much more difficult.
Chasing the oligarchs
In other words, undoing the Borisov system’s appointments and putting trustworthy officers in those posts in just the first step. But real change requires leaving the wealthy individuals and organisations benefitting from the status quo clawless and teethless. Such a task entails deep economic transformations that would surely evoke immense opposition from powerful pressure groups. Evidently, there is not enough time before Bulgarians vote again and their representatives pick up a new executive. But the caretaker government is powerless in front of Bulgaria ‘s condemnation to persistent corruption no matter what.
On the contrary, the government has endeavoured to chase and derail some of these Borisov-connected oligarch. For instance, the finance minister appointed an Audit Committee with the task of reviewing the Bulgarian Development Bank’s (BBR) activities. As a result, the public discovered that oligarchs had steered the BBR away from its mandate of supporting small companies. In fact, eight large private companies have received more than half of the BRR’s total credits or ca. €473 million. On average, each of them has borrowed almost €60mln — and “this is not a small and medium business. In addition, these companies borrowed against a 2% rate instead of the average 5–7%. Following this leak, the Minister of Finance fired the entire board of the BBR. He also instructed the Bulgarian National Bank (BNB) to appoint a new directorate.
The US strike back
Quite surprisingly, the United States has just given Radev and his government a valuable assist. On June 2, the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned several “individuals for their extensive roles in corruption”. In first instance, the sanctions target Vasil Bozhkov, a Bulgarian businessman currently hiding in Dubaito escape an arrest warrant for accusation of bribery; Delyan Peevski, prominent figure of and former member of the Parliament for the predominantly Turk Dvizhenie za Prava i Svobodi as well as the owner/controller four of the companies involved in the BBR’s scandal; and Ilko Zhelyazkov, former appointee to the National Bureau for Control on Special Intelligence-Gathering Devices. Secondarily, the US have sanctioned “their networks encompassing 64 entities” with which no transaction in dollars is possible.
The US chose to hit Bulgaria, a NATO ally, with “the single largest action targeting corruption to date”. On the one hand, this falls within the boundaries of the current administration’s effort to restore America’s moral stewardship. More to the point, one may interpret the sanctions as a not-so/veiled message to Russia — which heavily influences Bulgarian politics. Still, those who had been looking at US-Bulgaria bilateral relations should have expected a similar decision. After all, the sanctions came after US ambassador Herro Mustafa’s reiterated criticisms of pervasive corruption in the country. Mustafa has also refused symbolically to meet Chief Public Prosecutor Ivan Geshev, who embodies systemic corruption in Bulgaria.
Consequently, the game has scaled up to a whole new quality now. The BNB barred all Bulgarian banks to entertain commercial relationships with people under US sanctions. Moreover, the BNB had already froze some of Peevvski’s, Bozhkov’s and Zhelyazkov’s deposits, means of payment, and assets earlier. However, after the OFAC’s decision, the block extended to their entire network of affiliates and related entities.
Conclusion: The US are reclaiming the Balkans, and it may not be bad for Bulgarians
Officially, corruption’s malign influence on democracy provides the US with a moral justification to sanction any corrupt individua. Namely, the Treasury argues that it
undermines the values that form an essential foundation of stable, secure, and functioning societies; ha[s] devastating impacts on individuals; weaken[s] democratic institutions; degrade[s] the rule of law; perpetuate[s] violent conflicts; facilitate[s] the activities of dangerous persons; and undermine economic markets.
Surely, the soon-to-come meeting with Russia’s President Vladimir Putin also played a role in this decision.
Yet, the sanctions’ timing suggests that there might be other forces at play. Rather, it seems that Washington decided to pick a side in the ongoing institutional trench war between Presidency and Government.
From Bulgaria’s perspective, even though most American media have not noticed it, the impression is quite clear. To quote President Biden: “America is back, diplomacy is back”. Specifically, this resurgence has a special meaning in the Balkans, a region of immense relevance for Europe’s energy security. Concretely, the US is taking the lead in the West’s effort to keep China, Russia, and Turkey out.
True, whether this external support will suffice for Bulgaria to finally eradicate corruption is debatable. Nevertheless, the US’s return may spur a positive competition dynamic in which Washington and Brussels compete for limited normative power. If this was the case, increase international pressures on Bulgaria to limit corruption may reach a breaking point relatively soon. At which point, either a fundamental shift will take place; or Bulgarian elites will entrench further
Indo-European rapprochement and the competing geopolitics of infrastructure
Current dynamics suggest that the main focus of geopolitics in the coming years will shift towards the Indo-Pacific region. All eyes are on China and its regional initiatives aimed at establishing global dominance. China’s muscle-flexing behavior in the region has taken the form of direct clashes with India along the Line of Actual Control, where India lost at least 20 soldiers last June; interference in Hong Kong’s affairs; an increased presence in the South China Sea; and economic malevolence towards Australia. With this evolving geopolitical complexity, if the EU seeks to keep and increase its global ‘actorness’, it needs to go beyond the initiatives of France and Germany, and to shape its own agenda. At the same time, India is also paying attention to the fact that in today’s fragmented and multipolar world, the power of any aspiring global actor depends on its diversified relationships. In this context, the EU is a useful partner that India can rely on.
Indo-European rapprochement, which attempts to challenge Chinese global expansion, seeks also to enhance multilateral international institutions and to support a rules-based order. Given the fact that India will hold a seat on the UN Security Council in 2021-22 and the G20 presidency in 2022, both parties see an opportunity to move forward on a shared vision of multilateralism. As a normative power, the EU is trying to join forces with New Delhi to promote the rules-based system. Therefore, in order to prevent an ‘all-roads-lead-to-Beijing’ situation and to challenge growing Chinese hegemony, the EU and India need each other.
With this in mind, the EU and India have finally moved towards taking their co-operation to a higher level. Overcoming difficulties in negotiations, which have been suspended since 2013 because of trade-related thorny topics like India’s agricultural protectionism, shows that there is now a different mood in the air.
The Indian prime minister, Narendra Modi, had been scheduled to travel to Portugal for a summit with EU leaders, but the visit cancelled because of the Covid-19 pandemic. As a result, the European Commission and Portugal – in its presidency of the European Council – offered India to hold the summit in a virtual format on 8 May 2021. The talks between these two economic giants were productive and resulted in the Connectivity Partnership, uniting efforts and attention on energy, digital and transportation sectors, offering new opportunities for investors from both sides. Moreover, this new initiative seeks to build joint infrastructure projects around the world mainly investing in third countries. Although both sides have clarified that the new global partnership isn’t designed to compete with China’s Belt and Road Initiative (BRI), the joint initiative to build effective projects across Europe, Asia and Africa, will undoubtedly counter Beijing’s agenda.
The EU and its allies have a common interest in presenting an alternative to the Belt and Road Initiative, which will contain Chinese investment efforts to dominate various regions. Even though the EU is looking to build up its economic ties with China and signed the EU-China Comprehensive Agreement on Investments (CAI) last December, European sanctions imposed on Beijing in response to discrimination against Uighurs and other human rights violations have complicated relations. Moreover, US President Joe Biden has been pushing the EU to take a tougher stance against China and its worldwide initiatives.
This new Indo-European co-operation project, from the point of view of its initiators, will not impose a heavy debt burden on its partners as the Chinese projects do. However, whilst the EU says that both the public and the private sectors will be involved, it’s not clear where the funds will come from for these projects. The US and the EU have consistently been against the Chinese model of providing infrastructure support for developing nations, by which Beijing offers assistance via expensive projects that the host country ends up not being able to afford. India, Australia, the EU, the US and Japan have already started their own initiatives to counterbalance China’s. This includes ‘The Three Seas Initiative’ in the Central and Eastern European region, aimed at reducing its dependence on Chinese investments and Russian gas. Other successful examples are Japan’s ‘Expanded Partnership for Quality Infrastructure’ and its ‘Free and Open Indo-Pacific Strategy’. One of the joint examples of Indo-Japanese co-operation is the development of infrastructure projects in Sri Lanka, Myanmar and Bangladesh. The partners had been scheduled to build Colombo’s East Container Terminal but the Sri Lankans suddenly pulled out just before signing last year. Another competing regional strategy is the Asia-Africa Growth Corridor (AAGC), initiated by India, Japan and a few African countries in 2017. This Indo-Japanese collaboration aims to develop infrastructure in Africa, enhanced by digital connectivity, which would make the Indo-Pacific Region free and open. The AAGC gives priority to development projects in health and pharmaceuticals, agriculture, and disaster management.
Undoubtably, this evolving infrastructure-building competition may solve the problems of many underdeveloped or developing countries if their leaderships act wisely. The newly adopted Indo-European Connectivity Partnership promises new prospects for Eastern Europe and especially for the fragile democracies of Armenia and Georgia.
The statement of the Indian ambassador to Tehran in March of this year, to connect Eastern and Northern Europe via Armenia and Georgia, paves the way for necessary dialogue on this matter. Being sandwiched between Russia and Turkey and at the same time being ideally located between Europe and India, Armenia and Georgia are well-placed to take advantage of the possible opportunities of the Indo-European Partnership. The involvement of Tbilisi and Yerevan in this project can enhance the economic attractiveness of these countries, which will increase their economic security and will make this region less vulnerable vis-à-vis Russo-Turkish interventions.
The EU and India need to decide if they want to be decision-makers or decision-takers. Strong co-operation would help both become global agenda shapers. In case these two actors fail to find a common roadmap for promoting rules-based architecture and to become competitive infrastructure providers, it would be to the benefit of the US and China, which would impose their priorities on others, including the EU and India.
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