Europe

Alexander Babakov, vice-president of the State Duma, stated on Thursday, March 6th, that the BRICS (Brazil, Russia, India, China and South Africa) alliance is working on creating its own currency and will submit proposals at the organisation's upcoming summit in August in South Africa.   The declaration was not only the culmination of cooperation efforts between the fifth emerging economies to preserve their position in the global system after Western powers worked since the 1990s to prevent them from assuming their positions in international economic organisations — especially the World Bank and the International Monetary Fund. However, it also raised many questions about the impact of the new currency on the global financial system, particularly given the strength of the five economies in the international arena and the alliance's stated intention to expand to include additional developing nations such as Saudi Arabia, Iran, Egypt, and Bangladesh.   This paper tries to predict the consequences of creating the new currency on the structure of the global financial system and its impact on other major currencies, considering the European Union's experience in creating the Euro.

The earthquake which hit the southern Turkish territories in February 2023 proved that natural disasters taking place in the 21st century do not only result in piles of deaths and injuries but also political ramifications take place. When the earthquake hit Turkey, politicians understood that it is an opportunity to capitalize on for achieving delayed political aims. On the domestic level, opposition parties started to accuse the current president and his government with poor crisis management while trying to tilt the playing field in their favor before the general elections scheduled in May. On the international front, issues such as NATO enlargement, bilateral relations with Greece and the delayed F-16 deal have taken the larger space in the discussions which came after the earthquake. Accordingly, the natural disaster proved to be a political tool that should not be missed by contemporary politicians.

In February 2023, the European Union (EU) agreed to set a price cap on Russian refined oil products at $100 per barrel. The EU also set the price cap on Russian crude oil at $45 after setting it at $60 per barrel in cooperation with the Group of Seven (G7) countries in early December 2022, according to a periodic review every two months.   The European decision aims to control energy prices generally and stop price fluctuations that have affected global markets since the Covid-19 pandemic and the following events, particularly the commodity supercycle and the Russian-Ukrainian war. Furthermore, the Europeans aim to cut off the funding sources from the Russian federal budget that funds the military operation in Ukraine. In 2021, Russia exported oil worth around $212.4 billion of its $492.3 billion total exports to the rest of the world.   In response, the Russian government issued a decree on December 28, 2022, prohibiting the export of crude oil and petroleum products to countries with imposed price caps. Europe is the third-largest oil importer in the world after China and the United States. Conversely, Russia ranks first on the list of suppliers to the European continent while ranking second worldwide regarding oil exports. Therefore, we track in this article how the price cap decision may alter the global energy transmission paths.

Following the First and Second World Wars, the world order was founded on open international trade to ensure peace and security. Where the major powers realized that the two world wars occurred as a result of international competition over resources and markets, and therefore the Bretton Woods system came intending to establish a stable international monetary system that encourages global economic cooperation. Its main objective is to avoid the destabilising effects and competitive devaluations of currencies that were used in the period between and before the two world wars, to provide a framework for the free international exchange of goods and services, and to promote economic growth and stability in the long term.

Rare earth elements (REEs) are a group of 17 elements that are crucial for the production of a wide range of high-tech products. Ironically, REEs are not “rare” and are found abundantly throughout the world, however, when found they are in such low concentrations that extraction is not feasible. Furthermore, when found in higher concentrations they must be separated from other elements, a process that is both environmentally and financially costly.   REEs are vital for several industries and are used in electronics, military technology, and most importantly, renewable energy. Although substitutes exist for REEs with producers attempting to replace them, REEs continue to be more effective, therefore, given their importance in the production of renewable technologies such as wind turbines and electric vehicles, demand is expected to increase, with the European Union (EU) alone expecting REEs needs to increase fivefold as it and the rest of the world transitions to net-zero.   Currently, China dominates the global REEs market, accounting for over 35% of the world’s REEs reserves and 70% of production. China's domination of the REEs market has raised concerns over supply chain security, dependence on China, and China’s use of REEs as a political bargaining piece; such as when it cut exports to Japan following the arrest of a Chinese sailor by Japan. Recently, discoveries of REE deposits in Norway and Sweden have made headlines. The discoveries could have the potential to disrupt the market and have far-reaching implications.  

The Russian-Ukrainian war created significant uncertainty in the world’s energy markets and disrupted trade relations between the second-largest energy exporter and the second-largest energy importer. This disruption strongly signals a shift in the global energy supply chains, as indicated in a previous analysis. In the short term, Europe is expected to turn to the Arab Gulf to fill the gap left by the lack of Russian energy products.   However, in the long term, Europe will need to find sources that are highly sustainable, affordable, and less harmful to the environment than oil. This is because petroleum usage is incompatible with the European Green Deal (EGD), which aims to achieve carbon neutrality for the entire European continent by 2050. Furthermore, the EGD seeks to reduce greenhouse gas emissions from the mainland by around 55% below 1990 levels by 2030, which is unattainable with continued oil usage.   As a result, Europe will turn to its neighbours, particularly those in North Africa, who possess a variety of energy sources that can help it achieves its objectives and guarantee energy sustainability. Thus, this article explores Europe’s energy requirements and assesses the potential of North Africa’s energy resources to meet these requirements.

The European Union’s position as a leader in sustainability and environmental protection is coming into question with the bloc’s recent programs and policies mainly, the new Farm to Fork strategy and the updated Common Agricultural Policy. On the one hand, the EU faces criticism from non-governmental organizations and scientists regarding the extent to which policies are actually “green” and on the other hand they also face pressures from farmers and cooperatives who are concerned about the implications of policies on farmers and production. Additionally, there is cause for concern about the impact on agricultural production and food security in developing countries. Since contemporary agriculture is not a closed autonomous system, rather one where policy changes create shifts in agrarian markets that ripple across all sectors and throughout the global economy, and Europe has one of the world’s largest agriculture industries, it is imperative to evaluate the current trajectory of green agricultural policies in order to identify if, when and how this will cause a shift in agricultural practices and markets globally. The question is, are Europe’s efforts to make agriculture sustainable genuine or is there a glass ceiling on reforms? And what could this mean for developing countries that are just starting on the sustainability path?

On November 30th, the San Diego police department received approval from supervisors to deploy robots with lethal capabilities in emergency situations, making it the second California city to publicly discuss the use of remote lethal force after Oakland in October 2022. The decision generated immediate backlash which pushed supervisors to put the program on hold following a vote on December 6th.   San Diego and Oakland may have halted the use of “killer robots” for now, but they have been used previously in the United States after Dallas police used a robot to kill a mass shooter in 2016. The mass shooter had already killed five police officers and injured dozens more. The robot was equipped with an explosive, then moved to a wall behind the shooter, then the bombs exploded killing the mass shooter and slightly damaging the robots arm, marking the first usage of a “killer robot” by U.S. law enforcement.   Robots in domestic law enforcement are not unusual in U.S. police departments, and many have operated robots for close to a decade but they have been used to inspect suspicious packages or deliver items during hostage negotiations without risking police officers and until 2016 not for lethal purposes.

June 2022, the European Commission announced granting Ukraine the status of a candidate country to the European Union. Nevertheless, problems concerning Ukraine such as their struggle with their economy and political system, are still on the agenda. Giving the candidacy status to Ukraine has been criticized since Ukraine is still regarded as a weak country and not yet eligible for such a status especially when compared with other European candidates. European accession is granted after an assessment process based on what is known as Copenhagen criteria. European officials have announced that the accession process will be done by the book and merit based. In the same vein, the commission has granted Moldova the same status which is, the same as Ukraine, considered part of Russia’s sphere of influence. Keeping all this in mind, in the light of Russian war in Ukraine, it is a valid question to ask whether Ukraine candidacy is merit based or politicized. Is the fifth enlargement scenario of the accession of incompetent Bulgaria and Romania as a reward for their role in Kosovo war is being repeated with Ukraine? Considering this, the analysis is going to examine why Ukraine was accepted as a candidate. Drawing on European Commission’s reports, it will be discovered which of Copenhagen criteria are fulfilled by Ukraine. Copenhagen Criteria are:   Stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities (Political Criteria) A functioning market economy and the ability to cope with competitive pressure and market forces within the EU (Economic Criteria) The ability to take on the obligations of membership, including the capacity to effectively implement the rules, standards and policies that make up the body of EU law (the ‘acquis’), and adherence to the aims of political, economic and monetary union.