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EU-Armenia Partnership: EU is a crucial partner for Armenia’s reform agenda

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The European Union has today issued a report on developments in Armenia and EU-Armenia relations between June 2018 and early May 2019. The report comes ahead of the EU-Armenia Partnership Council on 13 June. It finds that Armenia has stepped up its efforts to reinforce and enhance its partnership with the EU, and that Armenia consistently acknowledged the significant role the EU can play in the smooth implementation of the country’s reform agenda. However, the reform process remains at an early stage. The government’s roadmap for the implementation of the EU-Armenia Comprehensive and Enhanced Partnership Agreement will be an important instrument in advancing reform plans.

“The European Union has been and will continue be the biggest supporter of the Armenian government’s ambitious reform plan, which is consolidating democracy, the rule of law and promoting human rights in the country”, said the High Representative of the Union for Foreign Affairs and Security Policy/Vice-President of the European Commission, Federica Mogherini. ”Armenia is an important partner for the European Union, and together we are focussed on implementing our wide-reaching bilateral agreement, as well as delivering concrete results within the Eastern Partnership. We always keep firmly in mind that our aim is bringing tangible benefits to our citizens.”

“The EU and Armenia are strong partners and we stand ready to support concrete reforms, including in the area of justice and education, which are key for the people”, said the Commissioner for European Neighbourhood Policy and Enlargement Negotiations, Johannes Hahn. “The swift implementation of the Comprehensive and Enhanced Partnership Agreement offers new economic opportunities for all Armenian citizens.”

After the political changes in Armenia last year, early parliamentary elections were held in December 2018. The EU was the largest single contributor to the elections, providing technical equipment and supporting actions in favour of democracy and civic participation. According to the International Elections Observation Mission, the elections respected fundamental freedoms and enjoyed broad public trust. In addition, the Government highlighted the need for independence, accountability and efficiency of the judiciary. In September 2018, the EU and Armenia launched the EU-Armenia Strategic Policy Dialogue in the Justice Sector. The EU stands ready to support reform in this crucial field.

Total EU-Armenia trade increased by 15% over the past year reaching a total value of €1.1 billion. Armenia benefits from the EU’s Generalised Scheme of Preferences plus (GSP+), which is a special incentive arrangement for sustainable development and good governance. More than 96% of EU imports eligible for GSP+ preferences from Armenia entered the EU with zero duties in 2017. The extension of the core Trans European Transport Network (TEN-T) to Armenia was finalised in November 2018. The Indicative TEN-T Investment Action Plan was published in January 2019 and also includes road safety as one of its priorities.

An EU-Armenia Education Policy Dialogue was inaugurated in March 2019 to support the reform in the education sector. Thanks to the support of the Erasmus+ capacity building projects, Armenian universities have been able to upgrade their administrative and organisational structures and modernise study courses. More than 2,700 students and university professors have benefited from EU-Armenia academic exchanges and mobility projects through Erasmus+ since 2015. At the end of 2018, a new ‘EU4Innovation’ programme worth €23 million was launched aimed at matching the skills of university graduates with the requirements of the labour market. The programme will create a EU4Innovation Centre for universities and an EU Convergence Centre to bring together universities and private sector, complemented by an incubator for technology start-ups.

The EU is the biggest provider of financial support and a key reform partner in Armenia. The EU stands ready to continue engaging in Armenia and provide support through political dialogue, financial and technical assistance, to support the Armenian government ambitious reforms for the benefit of the citizens of Armenia and EU-Armenia cooperation.

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‘New dawn’ for Europe as War in Ukraine Strengthens EU and Support for Enlargement

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The European Union surprised the world, and even itself, with the speed, scale and unity of its response to Russia’s invasion of Ukraine. This “new” Europe is ready to project both soft and hard power on the world stage, European leaders told participants at the World Economic Forum Annual Meeting 2022.

Christine Lagarde, President, European Central Bank, on the panel at the session, European Unity in a Disordered World?, said the Ukraine war has revealed how powerful Europe is collectively: “This is a new dawn for Europe.”

The war on Ukraine has also revealed weaknesses – including global supply chain vulnerabilities and over-reliance on Russian energy, she said, but Europe is addressing this and can begin to flex its muscles on the global stage. “Europe has untapped purchasing power, trading power, technology power, pension power and moral power.”

Roberta Metsola, President of the European Parliament, reinforced the point. “This is Europe’s moment,” she said. “Europe can become the global project for peace.”

Mistakes of the past will be rectified, she said. “For way too long we did not seriously consider an energy union where we can rely on each other rather than on a country that can switch us off at any time.”

Referring to the EU’s support and defence of Ukraine, she was emphatic: “This is not the time to talk about face-saving for Russia or appeasement.”

Eduard Heger, Prime Minister of Slovakia, also on the panel, said: “If Ukraine falls to Russian aggression, Slovakia is next.” He added that we must continue to provide military support as well as step up humanitarian aid. “Above all we need to give Ukrainians hope.”

“Let’s not compromise – we must remain faithful to the values of the EU – freedom, rule of law, human dignity and equal rights.”

Micheál Martin, Taoiseach of Ireland, said of Russia’s invasion of Ukraine: “The people of Europe have spoken. Enough is enough.” In response there is much stronger unanimity between member states and more support than ever to accept the accession of new members.

He continued: “We see the EU’s future in terms of the green economy and in terms of the digitalization but also in terms of enlargement.”

Mark Rutte, Prime Minister of the Netherlands, called on European member states to continue to raise their defence spending. “The NATO alliance members are inseparable, but Europe must play its part,” he said. “This will help transform Europe from a soft power to a hard power.”

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Geopolitical Crises Forcing Leaders to Face up to Difficult New Realities

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Poland’s President Andrzej Duda delivered a harsh rebuke to Russia over its invasion of Ukraine, pledging “100% support” for President Volodymyr Zelenskyy and calling for Moscow to pay reparations to Kyiv. “I simply cannot accept that Russia can violate international law with impunity.”

Russian aggression against Ukraine has revived unity within the West and highlighted for many Western nations the importance of democratic values. Finland and Sweden, notably, have set aside their longstanding policies of neutrality and applied to join NATO. “We are in a totally new situation and have to wake up to that,” said Pekka Haavisto, Finland’s Minister for Foreign Affairs, noting that the collapse of the post-war European security architecture, as well as Russia’s increased appetite for risk, were among the major factors prompting Finland to apply for membership.

Haavisto said that in this “grey time” between the Nordic country’s application to join the alliance and its potential full accession, when it will enjoy mutual security protection under Article 5 of the NATO charter, NATO members have given Finland and Sweden assurances that they will guarantee security. Asked about Turkey’s stated objection to extension of membership to Finland and Sweden, he expressed confidence that Helsinki can address concerns.

Alarmed by an increasingly competitive geopolitical landscape marked by mounting frictions between the United States and China, Prince Faisal bin Farhan Al Saud, Minister of Foreign Affairs of Saudi Arabia, emphasized the need for cooperation.

“If we learned anything from COVID, it is that we need to focus on cooperation and I think we need to continue to look towards avenues to foster that cooperation. Even when there is difference, when there’s competition, we need to find mechanisms to talk to each other.” He noted that Saudi Arabia, which values both its extensive trade relationship with China and its national security relationship with the US, is well-positioned to facilitate dialogue between the world’s leading powers.

Prince Faisal’s remarks were echoed by Pakistan’s Minister for Foreign Affairs, Hina Rabbani Khar, who commented on the “binary choice” that countries with close ties to both China and the US are increasingly asked to make. “We are typically asked this question all the time: Who do you choose? It shows how far we have fallen as a global community,” she said. This is particularly difficult, she noted, for a country like Pakistan, which is already in fiscal crisis and now faces “the superimposition of a food security crisis”.

Gregory W. Meeks, Democratic Congressman from New York’s 6th District and Chairman of the House Committee on Foreign, praised the bipartisan support for a recent Senate bill pledging $40 billion in humanitarian and military aid to Ukraine, as well as the broad international support that Ukraine has received.

He also focused on the potential food crisis, emphasizing the need to break the blockade of Ukraine’s Black Sea ports so Ukrainian grain can be delivered to the many countries that depend on it. “You got to open [the port of Odessa] up because that’s not been just limited to what’s happening in Ukraine; this threatens the entire world.”

Madrid is host to next month’s NATO summit and Spain’s Foreign Minister, José Manuel Albares Bueno, praised the alliance’s response to Russian aggression in Ukraine. But he emphasized the threat that the looming food crisis, if left unresolved, could pose to Europe. Noting that the Sahel – the region of North Africa bordering the Sahara – is not only already deeply food-insecure, he warned that rising cereal prices could set off a potentially destabilizing northward migration. “Unity is our best defence.”

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WEF calls for new partnerships to generate private capital for fragile communities

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The World Economic Forum released today a paper that calls for new collaboration between humanitarian and development organizations, businesses, investors and entrepreneurs to make a difference to the lives of the nearly 1 billion people living in fragile and conflict-affected settings worldwide.
 
Cultivating Investment Opportunities in Fragile Contexts: Catalysing Market-Driven Solutions to Strengthen Community and Economy Resilience outlines a practical approach to how organizations can build the capacity and strategic thinking needed to develop a sustainable business case for solutions that have the potential to unlock new sources of finance to reach impact at scale.
 
“It takes more than a single intervention to unleash transformational change in complex ecosystems. To truly leverage the potential for positive and sustainable social impact while meeting investor demand for returns, new ways of collaboration across sectors are needed,” said Børge Brende, President of the World Economic Forum.
 
The IKEA foundation is a partner of this initiative. Over the next three years the partnership will develop innovative business models and investments that strengthen local economies and increase the self-reliance and resilience of the most vulnerable communities and economies.
 
“We support the World Economic Forum because of our mutual goal to improve the lives of people who are affected by crises, including those who are forced to flee,” said IKEA Foundation CEO Per Heggenes. “We believe that together we can help attract the investment needed to strengthen fragile communities and empower the people who live in them to rebuild their lives and create a better future for children and their families.”
 
The joint discussion paper is an evolution of the work initiated by the Forum’s Humanitarian and Resilience Investing (HRI) Initiative, which was launched at the World Economic Forum Annual Meeting 2019 in Davos-Klosters, Switzerland.
 
As a first step, the initiative will operationalize the Organizational Readiness Playbook launched in 2020, and bring together a cohort of pioneers from humanitarian and development organizations, donor governments and development finance institutions to increase organizational capacity for HRI.
 
The initiative will also support investment opportunities targeting HRI to meet investor criteria and attract the commercial capital needed to reach scale. It will further facilitate the development of new tools, research and resources, including the standards, common terminology and analytic frameworks that allow for systems-level impact measurement.

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