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Covid-19: the EU plan for the economic recovery

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On 15 May Parliament called on the European Commission to present a major economic stimulus plan to help mitigate the shock from the coronavirus and settle on a sustainable future.

Grim economic forecasts

The latest economic forcasts, presented by the Commission in early May, show the economy has taken a hard hit because of the health crisis. As people stay at home and entire sectors have abruptly shut down, the EU economy is facing the prospect of at least a 7.4% contraction this year, which is significantly worse than the fall in 2009.

Even this bleak forecast might underestimate the actual scale of the recession, as any relaunch of economic activity will be gradual and could be easily disrupted by a second wave of the coronavirus.

Everyone is affected: many people fear they might lose their jobs and are unwilling to spend, while businesses are facing disruptions in their supply chains. Governments see tax revenue falling and welfare expenditure increasing, which will bring budget deficits, higher levels of debt and drive up borrowing costs.

Ambitious response needed

Faced with the scale of the economic hardship, MEPs argue in a resolution adopted on 15 May for bold and decisive action from Europe.

The EU is in the midst of devising its next long-term budget and as the response to the current crisis will define developments over the coming years, it makes sense to add recovery measures to the plans. But Parliament insists that the recovery package should come on top of the needs of existing EU programmes and not take funding away from them.

If Parliament’s demands for an increased long-term budget are not met, MEPs warn that they are ready to use their power to veto the long-term budget.

Recovery funds should go to those that are hardest hit by the crisis, say MEPs. They want most of the money to be disbursed as grants, as there are concerns that loans could worsen the financial situation of crisis-stricken member states.

The resolution suggests the recovery package should be financed through the issuance of long-term recovery bonds guaranteed by the EU budget. It also points out the need for new sources of revenue to the EU budget; otherwise a bigger budget will entail higher direct contributions from member states.

The EU will still need to prioritise climate action and a digital strategy, say MEPs, adding that a new EU health programme should be created ensuring that medical supplies are available across the EU in times of need.

Parliament also insists that it should have its say on decisions concerning the recovery fund. In a plenary debate on 13 May, MEPs pointed out that Parliament is the only directly-elected EU institution and should have oversight on budgetary issues as a matter of democratic legitimacy.

Recovery plan: “Do it quickly, but do it well”

“We have to ensure that we live up to the needs and demands of our citizens and businesses,” Parliament President David Sassoli said during a press conference on 15 May. He urged rapid solutions from the EU to protect people and their jobs, but insisted that the plan should be subject to negotiations between the EU institutions. “We want to do it quickly, but we want to do it well,” Sassoli said.

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Burkina Faso: Former colony orders French troops to leave

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A soldier from Burkina Faso stands guard along the border with Mali and Niger during a military operation against terrorist suspects.(file photo) © Michele Cattani

Burkina Faso has demanded the withdrawal of French troops stationed on the territory of the West African nation, local media reported, citing a government decision. Relations between Paris and its former colony have been on a downward spiral for months now, with the local population blaming France for their security problems.

Agence d’Information du Burkina (AIB) reported that the government of Burkina Faso had suspended a 2018 agreement with France, which regulated the deployment of its service members in the country. Paris now has one month to remove its soldiers, the agency said.

France currently has 400 troops in the African country, who are stationed there as part of efforts to combat Islamist terrorist groups in the region.

In November 2022, French President Emmanuel Macron officially announced the end of anti-insurgent ‘Operation Barkhane’ in the Sahel region, which has been largely viewed as a failure. In doing so, France also vowed to “reduce the exposure and visibility of [its] military forces in Africa.”

The Sahel is a region in northern Africa that includes Senegal, Mauritania, Mali, Burkina Faso, and a number of other neighboring countries.

Paris ended another military mission in neighboring Mali last August after relations went sour, with the government calling France’s military involvement “not satisfactory.”

Hundreds of people protested in the Burkina Faso’ capital Ouagadougou against the French military presence, chanting anti-French slogans.

Mohamed Sinon, one of the main leaders of the collective that called the demonstration, said it was to show support for junta leader Traore and the security forces fighting jihadists. “We are a pan-African movement and we want cooperation between Burkina Faso and Russia, but also the strengthening of friendship and of cooperation with Guinea and Mali,” he added.

Protesters carried huge posters showing the presidents of Mali and Guinea — both of whom also came to power in coups — as well as Russian President Vladimir Putin.

A source close to the government clarified it was “not the severance of relations with France. The notification only concerns military cooperation agreements”.

Sources familiar with the matter told AFP that France’s preferred option would be to redeploy its forces in the south of neighbouring Niger, where nearly 2,000 French soldiers are already stationed.

French troops withdrew from Mali last year after a 2020 coup in the former French colony saw its rulers also inch closer to Russia.

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The importance of Iran’s membership in the SCO

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The members of Majlis (the Parliament) have approved the emergency of the plan of Iran’s commitments to achieve the position of a member state in the Shanghai Cooperation Organization (SCO), – informs IRNA from Tehran.

The  emergency plan was endorsed with 161 votes in favor, two against, and three abstentions.

Ali Adyani, the deputy vice president for parliamentary affairs, said that the plan was proposed by the Ministry of Foreign Affairs, which was endorsed by the cabinet members, and sent to parliament to become law.

According to the official, Iran’s membership in the SCO is of great importance in terms of economic, social, and international affairs particularly because the opportunity would help the Islamic Republic get rid of illegal sanctions and enhance economic diplomacy.

Iran has been an observer of the SCO since 2005. Then, President Ebrahim Raisi called for full membership of the Islamic country in the organization in its last summer summit in Tajikistan.

The legislators have accepted to speed up scrutinizing the plan. Earlier, the Iranian parliament had endorsed the plan of accession of the Islamic Republic to the SCO.

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Sabah: ‘The Americans have deceived themselves, the Europeans and Ukraine’

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The US is repeating the same mistakes as in Iraq, Afghanistan, Libya and Syria. Now – in Ukraine. So it seems inevitable that Washington will face another setback as a result of its ideological obsession, – writes prominent Turkish observer Bercan Tutar at “Sabah” newspaper.

Having suffered a complete failure in the Middle East wars, the Americans sent to Ukraine not only their ineffective weapons, but also their inadequate thoughts and strategies. But no matter what they do, their chances of defeating Russia are very slim.

The 330th day of the war, which began on February 24, 2022, has already been completed. After a short retreat, Russia began redeployment. However, the fact that Russia abandoned the siege of Kyiv and focused on control over Russian-speaking regions led Ukrainian leader Volodymyr Zelensky and the United States to false conclusions.

Encouraged by Russia’s cautious military actions, the United States applied its strategy in the war on terrorism in Ukraine and. According to American experts, the current US administration is following the deadly tracks of previous military propaganda in Ukraine, which proved unsuccessful in Afghanistan and Iraq.

While Russia is pursuing a military strategy that prioritizes its political goals, we see that the US is lacking in both military and political leadership. As soon as the war in Ukraine began, the first goal of the US was to rally its NATO allies against the Russian invasion. It was a smart strategy and it worked.

However, when the US reached the first target, a further one only increased its expectations. Russia was asked to leave not only Donetsk and Lugansk (Donbass), but also Crimea. Even further, the United States began to voice maximalist demands, such as regime change in Moscow. But it is absolutely clear that these demands can arise only in conditions of a total world war.

As a result, American fantasies lead Washington to attempt strategic suicide. The Americans have deceived themselves, the Europeans and Ukraine.

Russian leader Putin said on the occasion of the 80th anniversary of the breaking of the blockade of Leningrad: “We tolerated it for a long time and tried to come to an agreement. As it has recently turned out, they were messing around with us; they were lying to us. This was not the first time this has happened to us. Yet we did everything in our power to settle the problem peacefully. It has become obvious now that it was an inherently impossible mission; the enemy was only preparing to bring this conflict to the hot phase. As I have said, there was no other way than to do what we are doing now.”

In short, some geopolitical officials in the US have dragged Zelensky into a ‘no-win war’ against a nuclear-armed Russia.

Now the world is focused on two options:

– either the US and its allies will perform a ‘miracle’ in Ukraine;

– or the Russians will crush Ukraine and then break the back of the NATO alliance.

Thus, the US strategic position in Europe will come to an end and a new world order will be born, perhaps with several centers of power outside of America.

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