Connect with us

Europe

The geopolitics of Brexit

Published

on

Brexit – sanctioned and endorsed by a mass vote for Boris Johnson’s Tories – will be the great geopolitical turning point for Europe, obtorto collo, and for the United Kingdom itself.

In fact, the decision taken by Prime Minister Cameron in June 2016 to hold a referendum already showed what would happen.

Cameron thought the referendum would silence the Tories’ Brexit wing with a stunning defeat, but – as is well-known – this has not happened.

The British Tory Prime Minister, in fact, did not achieve his goals with the negotiations in Brussels that year. As already said, David Cameron clearly thought he could give a sop and keep the Brexit- friendly Tory minority happy, but truth will out.

Let us put aside the traditional explanations about the reasons for the UK-EU break: it is not a matter of maintaining the supremacy of old Anglia over the British territories, such as Scotland, Cornwall or Wales.

This assumption is often reiterated by refined parlour geopoliticians, but it clashes with the results in Wales, where the votes in favour of leaving the EU are 52.5%, while in Northern Ireland, but especially in Scotland, the leave votes reach only 44.2% and 38%, respectively.

If anything, the pro-Europeanism of the island peripheries shows that Brexit cannot be used to “keep” Scotland and Ireland, not the other way around.

Great Britain has always renounced the European criterion of even closer union.

“We want our money back!” This is what Margaret Thatcher said at the European Council in Dublin in September 1979.

Boris Johnson’s “policy line” is exactly the same as Thatcher’s tradition.

Margaret Thatcher saw Jean Monnet-style dirigisme typical of the EU  as  a  huge  obstacle  to  her liberal  and  free-trade  project to modernise and revitalise the British economy.

Not even De Gaulle, however, wanted Great Britain within the EU. “Take your dreams of independent power and stick them up your Eiffel Tower”, as a London popular song went, after the French veto on Britain’s entry into the EU in 1963.

The fact is that France, Great Britain and Germany have all thought of the EU as a tool for their own national geoeconomic and strategic projects, unlike Italy, which has always been frantically looking for international organizations, treaties and groups to replace a national sovereignty that the Italians – after World War II – did not want and for which they were not prepared.

Moreover, what Leo Longanesi called “the waiter’s psychology” has always led our ruling classes to think that the international agreements into which Italy entered were a “gift”, a “favour”, possibly a “tip”.

It should be recalled that Great Britain did not want to be one of the Six countries which founded the European Community.

Even the pro-Europeans, like Harold Macmillan, wanted a “functional” and day-by-day approach compared to the European one, considered dangerously “federal” and basically authoritarian.

Hence, for the current Brexit voters the European Union is a real “usurper” that has too much power, despite the strong lack of democratic and electoral legitimacy.

It should be recalled that the EU was an American idea to make the economies of NATO’s European countries grow, thus maintaining national social and political stability.

Nothing more, nothing less. We will see what will happen to the EU with the US slow loss of interest in the Atlantic Alliance.

Moreover the EU has become the myth of a “third power” between the United States and the Warsaw Pact, with the creation of a single currency that has made the British financiers laugh and has outraged the United States, that find this Euro in their way, which is not a real currency, since it is not a lender of last resort, but rather mimics real currencies. Furthermore, it is also a rigid currency and hence it releases – on the factors of production – the market tensions that would otherwise affect exchange rates, as has always happened.

There were two other EU aspects that the British ruling class never liked from the beginning: the overwhelming power of the European Commission and the Court of Justice, of course, but above all the overwhelming power of France and Germany in the main decisions and on the integration progress itself.

The British obstruction to EU policies, which began in the 1980s,- a typical case of “negative leadership” – were for decades the only way for Great Britain to oppose a process that seemed inertial and, in any case, led by naturaliter anti-British powers such as France and Germany.

It is not a reflection of old gunboat geopolitics. It is a strategic assessment that is still completely exact and topical for Great Britain.

Indeed, the EU always acts as if geopolitics and the primary strategic interests of a country did not exist, covered by the roar of Beethoven’s Ninth Ode to Joy.

“All creatures drink of joy/At nature’s breasts/All the Just, all the Evil/Follow her trail of roses”.

Archetypal images, universal brotherhood, justice based on freedom of thought, concord based on Reason… a typically Masonic Ode, for the Schillerian Finale of the Ninth Symphony.

But times are now very different from Joy for the Germans defeated by Napoleon, the “world spirit on horseback”, as Hegel once described him.

Geopolitical interests, however, are either national or they are not, and the various countries’ forgetfulness of the global strategy – with the EU – was huge and very dangerous.

Also in Great Britain the visible outbreak of the rebellion against the European Union, which materialized with Brexit, was the issue of uncontrolled immigration.

For Great Britain, the mass of arrivals consists of economic migrants coming mainly from Eastern Europe, a situation that has led the British governments to restrict freedom of movement and has put the welfare system – already shrinking after Thatcher’s reforms – in great difficulty.

The 1982 Howe plan, inspired by the Iron Lady, already assumed a mandatory private health insurance, a share of contributions for State schools and a network of private clinics that would slowly replace the National Health Service (NHS).

We do not think it is reasonable to dismantle the Welfare State, but it will certainly be necessary to rethink a system that gives everything to everyone, even to the rich people, and gives everything to all newcomers, thus inevitably reducing the possibility of providing care for the poor or the now proletarianized middle class.

Instead of singing Ode to Joy, or possibly even the International, it would be better to study new systems to ensure dignity, health and good education to the poor people, but also to fund them with ad hoc taxes and fees paid by the rich people.

In our Western ideologies, we are still at the “Four Olds” against whom the ferocious and callow Maoist Red Guards polemicized: “Old Customs, Old Culture, Old Habits and Old Ideas”.

Therefore, Brexit can have the effect of rethinking also the EU “old” classifications.

An EU thinking about the East only to “bring democracy” with bombs or to destabilize the whole area, believing – as happens to all fools – to do good, or possibly to pedantically follow the North American strategic interests, which are not those of Europe.

As a man of great intellectual calibre, namely Alain Finkielkraut, said, “if Angela Merkel had not let one million immigrants into Germany in 2015, there would have been no Brexit”.

Hence Britain’s mass perception of an EU destabilising the nation States that are part of Europe, probably to weaken the national political regimes, possibly in search of a supranational sovereignty that is sometimes shown in some mediocre products of mainstream culture.

Pending  Brexit,  the  EU  has  also  been  negotiating  with  Great

Britain, using its negotiating superiority to maximise its potential.

Besides maintaining the principle of the four freedoms (freedom of goods, people, services and capital), the EU wanted above all to ensure that Ireland, including Northern Ireland, remained in the EU’s trade system.

Certainly, Theresa May’s soft Brexit created great tensions within her government, thus leading to the resignation of Ministers Boris Johnson and David Davis. However, the geopolitical essence of the issue is that the hard Brexit wanted by Johnson – who triumphed in elections – is a structural rapprochement to the United States, while both Britain’s stay in the EU and soft Brexit make the country remain within the French and German strategic area.

Hence the recent electoral choice made by Great Britain implies a clear defeat for France and Germany.

President Macron had also threatened Great Britain to make it “take backseat” and trail behind if hard Brexit materialized. Hence there would be a British blockade of French fishing vessels in British waters.

The soft Brexit agreement was certainly unfavourable for Great Britain: it would no longer be free to make bilateral trade agreements and treaties with any country, without the EU authorization, with EU goods and services freely entering the UK, but not the other way round. We can imagine what would have happened to Britain’s balance of payments.

Moreover, British financial services would have had a limited chance of entering EU markets.

A slipknot.

What will the hard Brexit produce? In the meantime a sharp deterioration in the already severe economic situation in Europe.

Brexit is above all a trade war, nothing else. Probably, the “hard” Brexit will produce recession and stagnation in many European nations.

Probably the British scenario will stimulate the strong no-Euro and no-EU minorities in the Euro countries to strengthen and demand not intermediate goals, but “everything”, i.e. exit from the EU.

At least for some time, it will stop the tendency to transfer national powers to the EU and, above all, it will quickly undermine the power of the European Court of Justice vis-à-vis individual States.

The French-German project was to strengthen the traditional trade freedoms for the whole EU but, at the same time, to protect their “national champions” – and now Brexit is stopping this great operation.

Moreover, both Germany and France have always tried to “export” their labour market and welfare solutions to the rest of the EU, including to EU countries with much less tax revenue and much higher public debt, thus “damaging” possible European competitors and making their mergers & acquisitions operations in Southern Europe easier.

Currently this French-German project is over – and this is certainly not a bad thing.

Therefore, Brexit will favour a further separation between the Northern EU and the less developed Southern Euro area, not to mention the increasing separation between Central and Western Europe in terms of migration policy.

Germany can now use its differential with France to seek the support of smaller EU nations.

We will also have a medium-term scenario, which is very likely: the EU is losing much of its military potential and is no longer the second largest economy in the world, which would explain the much smaller EU budget – after Brexit – and the mounting of tension and contrast between the EU and the United States.

Furthermore, if Britain leaves the EU – as it will certainly do in the near future – it will increase Europe’s tendency to reach trade, energy and industrial agreements with the Russian Federation.

Following Brexit, the EU countries will be ever less able to make quick and effective strategic choices.

Hence Brexit is Britain’s acceptance of the fact that it wants and can play its own interests around the world, since the EU is not – if ever – a big player in the global geoeconomy.

If anything, it is a big protected market – and this is its essence, not some backup singers of Beethoven’s Ninth.

Considering that Great Britain has skilful ruling classes and brave people, it does not want to deal every step with the EU. It does not want to tie itself to a geopolitical project that it believes to have failed – and it is certainly not wrong. Finally, it does not want someone else in Brussels to prevent or favour its choices.

The EU is an assembly of accountants who believe they are a War Cabinet. The new Tory government is convinced that the faster Boris Johnson’s Brexit the more the EU will give in shamefully.

Certainly, Britain’s power projection that will materialize soon, with trade and financial agreements with the whole Commonwealth, Japan, South Korea and China will usher in a new phase of economic development in the country that, however, will be ever worse distributed.

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

Continue Reading
Comments

Europe

Fostering Tolerance in Europe: Issues of Migration and Populism in Italy

Published

on

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[1]. 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:

  1. 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.
  2. 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.
  3. 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”[2].

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 [3] S. Wolinetz The Transformation of Western European Party System Revisited [4]M. Abrams, R. Rose and R. Hinden[5], G. Evans and S. Whitefield The Evolution of Left and Right in Post-Soviet Russia [6].

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.[7]

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[8].

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.

New collisions

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.[9] 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”[10] 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:

  1. Populism is a consequence of the crisis of the traditional party system, the disappointment with classical parties and party leaders.
  2. Populism has overcome the traditional division between the Left and the Right.
  3. 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.

Conclusion

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

  1. Kranert M. Populist elements in the election manifestoes of AfD and UKIP, Zeitschrift für Anglistik und Amerikanistik 67 (3), XXX–XXX. DOI: 10.1515/zaa-2019-0023
  2. Akhremenko A. S. “Social delimitations and structures of the electoral space of Russia” – Social Sciences and the Present, 2007, № 4.
  3. R. Richard, D. Urwin. Persistence and Change in Western party systems since 1945, Po-litical Studies, v. 18 Issue 3, September 1970.
  4. Wolinetz S. The Transformation of Western European Party System Revisited. – West European Politics, 1979, v. 2, №1.
  5. Abrams M, Rose R, Hinden R. Must Labor Lose? Harmondsworth, 1960.
  6. Evans G., Whitefield S. The Evolution of Left and Right in Post=Soviet Russia. – Eu-rope=Asia Studies, 1998, v. 50, № 6, p. 1023-1042.
  7. Kholodkovsky K. G. Labor movement in Italy (1959 – 1963). Moscow, 1969. (In Russ.) / Levin I. B. Labor movement in Italy. 1966-1976 Problems and trends of the strike struggle. Moscow, 1983. (In Russ.)
  8. Kholodkovsky K. G. The changing political image of Italy. – Italy at the beginning of the 21st century (collection of articles following the conference). Moscow, 2015. (In Russ.)
  9. Weinstein G.I. Populism – Identity: Personality, Society, Politics. Encyclopaedic Edition. Moscow, 2017. (In Russ.)
  10. Kholodkovsky K. G. The changing political image of Italy. – Italy at the beginning of the 21st century (collection of articles following the conference). Moscow, 2015. (In Russ.)

Continue Reading

Europe

American diplomacy’s comeback and Bulgaria’s institutional trench war

Published

on

Official White House Photo by Adam Schultz

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.

Political reconfigurations

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

Continue Reading

Europe

Indo-European rapprochement and the competing geopolitics of infrastructure

Published

on

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.

Continue Reading

Publications

Latest

Trending