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21. European politics in times of crisis: Developments in Germany, France and Italy, and consequences for the EU

Author:
Marco Siddi, Niklas Helwig, and Tuomas Iso-Markku
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The war in Ukraine and the long-term consequences of the Covid-19 pandemic have put the spotlight on important political developments in the three largest EU members, Germany, France and Italy. In Germany, the new coalition government led by Olaf Scholz is trying to adapt the country’s foreign, energy and fiscal policies to the new international scenario, relinquishing some of its long-term tenets. France has just re-elected Emmanuel Macron as President, who is likely to advocate more flexibility in EU fiscal rules and strategic autonomy in foreign, defence and energy policy. Mario Draghi’s government has attempted to steer Italy out of the economic and health crisis and has sought closer cooperation with France. Italy will hold a general election by June 2023, with four parties vying for pre-eminence. In the wake of Brexit, Berlin, Paris and Rome have tried to revive the integration process. In the near future, it is expected that they will continue to drive EU politics, even if sometimes with different priorities, in close consultation with European partners.
Topic:
Politics, Regional Cooperation, European Union, Leadership, and Political Crisis
Political Geography:
Europe, France, Germany, and Italy

22. Western financial warfare and Russia’s de-dollarization strategy: How sanctions on Russia might reshape the global financial system

Author:
Maria Shagina
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
Since 2014, Russia’s de-dollarization plan has been guided by security and geopolitical considerations. By dumping the US dollar from its foreign currency reserves, Russia diverted from the traditional approach where liquidity and the credibility of the issuer determine the choice of currency. In 2022, Russia has doubled down on its efforts to de-dollarize the economy. What started as de-dollarization in 2014, transformed into full-blown rouble-ization in 2022. Following the dynamic of an emerging multipolar world order, the global financial system is also gravitating towards fragmentation and currency multipolarity. The overuse of sanctions could strengthen revisionist countries’ desire to increasingly conduct their trade in non-dollar currencies in an attempt to avoid US oversight. If current trends continue, the de-dollarization effort could gain ground and undermine the primacy of the US dollar.
Topic:
Monetary Policy, Sanctions, Finance, and Conflict
Political Geography:
Russia, Europe, and Global Focus

23. Russia’s connectivity strategies in Eurasia: Politics over economy

Author:
Kristiina Silvan and Marcin Kaczmarski
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Russia has been attempting to strengthen connectivity within Eurasia since the early 2000s as a part of its policy to “pivot to the East”. Yet due to limited resources and political will, the tangible effects of its connectivity strategy have remained limited. The Russian Far East would greatly benefit from an improved connectivity infrastructure, given its proximity to Asian markets and the abundance of natural resources in the region. However, the attempts to accelerate regional socio-economic development by strengthening the region’s connectivity have failed to make a difference. In post-Soviet Central Asia, Russia adopted a passive approach to connectivity in the 1990s and 2000s, which meant focusing on maintaining and protecting the links inherited from the Soviet Union. It was only the pressure of external actors – both China and the West – that prompted Moscow to take a more active stance in the region in the 2010s. The launch of China’s Belt and Road Initiative pushed Russia to promote its own grand vision of trans-continental connectivity, the Greater Eurasian Partnership, designed to reaffirm Moscow’s great-power status and its equal standing with China. While it lacks economic and administrative foundations and its implementation is highly implausible, it has fulfilled a symbolic role as Russia’s grand connectivity project for Eurasia.
Topic:
Economics, Infrastructure, Belt and Road Initiative (BRI), Rivalry, and Resource Allocation
Political Geography:
Russia, China, Europe, and Asia

24. A policy agenda for Finland’s entry into NATO: From ‘one for one’ to ‘one for all’

Author:
Edward Hunter Christie
Publication Date:
07-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
At the NATO Madrid Summit in June 2022, Allies invited Finland and Sweden to join the NATO Alliance. In preparing for its membership, Finland will need to go through a reflection process on how it intends to contribute to NATO’s core tasks and make the most of its membership. Finland should consider making substantial contributions to the deterrence and defence posture in the Baltic Sea region, including in the Baltic states, and elsewhere on the Eastern Flank. In parallel, Finland should also ensure it contributes to the Southern Flank. Finland should aim to hit the ground running into the next cycle of the NATO Defence Planning Process (NDPP) and fulfil all relevant capability targets. Finland should also aim to “start strong to stay strong” on all existing NATO Pledges, notably those on defence investment, cyber-defence, and resilience. It is typical for individual NATO Allies to seek a salient role when it comes to certain specific topics. For Finland, the Arctic (Northern Flank) and resilience seem most promising.
Topic:
Security, Defense Policy, NATO, Regional Cooperation, and Military Strategy
Political Geography:
Europe and Finland

25. The EU’s strategic multilateralism: Global engagement in an era of great-power competition

Author:
Niklas Helwig
Publication Date:
08-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The crises of previous years and the rise of strategic competition have put the EU’s traditional approach to multilateralism under pressure. The EU’s pledge for “a more stringent and strategic approach to multilateralism” has become even more relevant with Russia’s war of aggression against Ukraine. Three adjustments to the EU’s approach to multilateralism signify a more strategic approach. In a move towards a more instrumental engagement, the EU is using international cooperation as an avenue to protect its interests in the global competition. The EU is displaying more willingness than before to leverage its power bilaterally and through its work in international organisations. It is also more willing to focus on ad hoc frameworks in order to preserve the effectiveness of global cooperation and extend it to new areas of governance. Strategic multilateralism comes with certain risks attached. It can undermine the legitimacy of the formal multilateral system and the global protection of fundamental rights. The EU needs to weigh the benefits of a more strategic approach against the risks of global fragmentation.
Topic:
Regional Cooperation, European Union, Multilateralism, and Strategic Interests
Political Geography:
Europe

26. NATO’s Nordic enlargement and Turkey’s reservations: Trilateral Memorandum of Understanding in the context of Turkey’s wider strategic interests

Author:
Toni Alaranta
Publication Date:
09-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
With the signing of the trilateral Memorandum of Understanding (MoU), Turkey dropped its initial objection to Finland’s and Sweden’s NATO membership, but has since argued that the conditions agreed in the MoU have not yet been fulfilled. In addition to requiring Sweden and Finland to take a more vigorous stance regarding the Kurdistan Workers’ Party (PKK) and its extension in Syria, Turkey has used Nordic NATO applications as a tool to raise these issues on NATO’s agenda, pressuring the US in particular for a change in its Syria policy. Turkey’s reservations need to be conceptualized within its determined search for strategic autonomy, increased room for manoeuvre, and an ideological decoupling from the West. Turkey’s strategic interests have increasingly diverged from the rest of the alliance, likely leading to a more permanent intra-alliance opposition position in the coming years, part of which are the ongoing trilateral talks between Turkey, Finland and Sweden.
Topic:
Security, Defense Policy, NATO, and Regional Cooperation
Political Geography:
Europe, Turkey, and North America

27. Russia’s domestic politics have become part of the West’s Russia policy: The stakes are rising when Navalny returns to Russia

Author:
Jussi Lassila
Publication Date:
01-2021
Content Type:
Commentary and Analysis
Institution:
Finnish Institute of International Affairs
Abstract:
Among the most signifcant events in Russia in 2020 were the Covid-19 pandemic, reactions to the protests in Belarus, and the poisoning of top opposition politician Aleksey Navalny. Te frst two were clearly events of international signifcance, but so was the medical treatment given to Navalny, frst in Omsk and then in Berlin, after he suffered from symptoms of poisoning dur- ing a flight from Tomsk in Siberia to Moscow in August. In December, a joint study by the investigative journalist groups Bellingcat and The Insider, along with CNN, Der Spiegel and Naval- ny’s FBK Foundation, showed that it was difficult to find more con- clusive evidence of the Kremlin’s involvement in the assassination attempt by a chemical weapons- related poisoning group under the FSB that had been following Na- valny for years. This kind of op- eration would hardly have been possible without the blessing of high-level intelligence. Te ques- tion of whether the FSB leader- ship was proactive in resolving the “Navalny problem” or whether the order came from the Kremlin is irrelevant. Te revealed pattern confrms the long-standing trend of the strengthened role of the se- curity services, especially the FSB, in Russian politics. It is consistent with Putin’s approach to political processes being increasingly seen as issues of national security. Navalny’s self-confidence and style in the revelation videos related to the investigation, receiving ap- proximately 45 million views in less than a month, underscore the extent to which the FSB failed. The target did not die or become paralyzed, but recovered relatively quickly and bounced back, playing for higher and more radical stakes than before. Navalny’s role and reputation as the Kremlin’s most prominent critic has been based on the political pressure on the Kremlin generated by expos- ing elite corruption. While the will- ingness of citizens to see Navalny as an alternative to Putin varies consid- erably – with the majority indifer- ent to politics as a whole – Navalny’s numerous revelations have created an alternative to Russia’s ofcial re- ality, the political potential of which the regime obviously fears.
Topic:
Security, Foreign Policy, Conflict, Regionalism, and Domestic Policy
Political Geography:
Russia and Europe

28. An Abrupt Awaking to the Realities of a Pandemic: Learning Lessons From The Onset of COVID-19 in the EU and Finland

Author:
Mika Aaltola, Johanna Ketola, Aada Peltonen, and Karoliina Vaakanainen
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
Although their timing and nature is unexpected and disrupts normality, pandemics are not black swans, but rather an expected feature of a feverishly con- nected and globalizing world. Since the end of the Cold War, there have been several serious cases of and close calls with pandemics, including SARS in 2003, H1N1 infuenza (“swine fu”) in 2009 and Ebola in 2014. By now, we know the usual features of pandemics, how they emerge and the shape of their temporal context: rapid onset leading to a politically compelling impact followed by decreasing attention and lessening restric- tive policies resulting, in some cases, in the return of the disease. Te most serious pandemics, like the 1918 infuenza pandemic (“Spanish fu”), come in waves. Te less restrictive policies are followed by subsequent waves, partially propelled by diminishing attention and wishful policies until a cure or vaccination is found, or immunity achieved. Despite the growing awareness, pandemic diseases nevertheless often catch us of guard and bring about human misery. Te latest form of Severe Acute Res- piratory Syndrome caused by a novel coronavirus, Covid-19, which spread like wildfre around the globe in 2020, came as a surprise even though the point of origin and secrecy surrounding its emergence were similar to that of its predecessor, SARS, in 2003. In other words, pandemics continue to include “un- known” aspects, which have to do with their specifc characteristics, perhaps most notably their timing, but also other features such as infection and fatality rates, patterns of spread, and the outbreak location zone(s). Our starting point in this Working Paper is that se- rious contagious diseases are political as their cascad- ing and nonlinear efects impact people’s livelihoods and disrupt normality. Tis applies to the most recent coronavirus pandemic, as highlighted in this paper. Te key research question concerns how the European Union (EU) and its member states, illustrated through the case of Finland, became aware of the prevailing health crisis, and the kind of political ramifications that the response had, and could have had. Te focus of this paper is on the frst two and a half months of the coronavirus pandemic, from January to mid-March 2020, by which time the pandemic had replaced the prevailing agendas in the EU and in its member states and saturated the public debate, reach- ing a tipping point. Te onset entails a build-up to a clear situational policy necessity, a sentiment that drastic, exceptional actions need to be taken to con- tain or at least to slow down the pandemic outbreak, as well as a remorseful debate and fnger-pointing at actions that should have been taken sooner. Te paper studies this build-up phase while recognizing that the next phase of political reaction to a pandemic tends to include the sentiment that enough has been done or even that the actions that were taken earlier were somewhat excessive and overblown.1 Tis phase may be followed by – and is an important constituent of – yet another phase, the second wave of the pandemic. The timeframe for the Working Paper extends to mid-March 2020 when Covid-19 became the prevail- ing topic of public concern in Europe. We refer to this prevalence as the tipping point. Te term tipping point is used to identify the critical juncture, both nation- ally as well as in the EU, when sudden changes to be- haviour took place at the public and political levels. At such moments, public attention becomes heightened, single-issue focused, and rushed. Te pressure for po- litical action becomes paramount. Te mobilization of resources as well as the introduction of diferent states of emergency suddenly seem possible. Te emergent, situational requirements become the context for pol- icymaking, instead of the requirements of the then prevailing normality; namely, exceptional political acts can prevail when urgency seems to necessitate them. Te situated characteristics of a pandemic include a heightened sense of exceptionality, particularly if there is a sense that prior preparations at national, regional, and global levels were inadequate and the contingency planning insufcient. Any delays and hesitations are easily seen as weaknesses although, in normal times, they are often the keys to stable and rational political deliberation. Tis was the scenario that actualized with Covid-19, as the preparedness planning for pandem- ic security was largely perceived as defcient and the global as well as the European regional coordination in short supply.
Topic:
Security, Regional Cooperation, European Union, Public Health, Pandemic, and COVID-19
Political Geography:
Europe and Finland

29. EU Strategic Autonomy in the Shadow of Geopolitical Rivalry: A View from Moscow

Author:
Sergey Utkin
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
The EU is determined to maintain the transatlantic bond, while Russia tends to interpret the EU’s strategic autonomy precisely as autonomy from the US. The Western unity effort is significantly strengthened by the poor state of the EU’s relations with Russia. Russia is ready to pay lip service to the idea of a more capable EU, but instead it sees opportunities in areas where bilateral cooperation with member states is possible. The EU-wide consensus is doomed to remain critical vis-à-vis Russia for the foreseeable future. The EU will increasingly focus on gaining autonomy from Russia, primarily in the energy field and in terms of hard security deterrence. The EU-Russia geopolitical tension, centred on the common neighbourhood, is long-term and might cause as yet unseen damage to the relationship if it is not handled carefully.
Topic:
Security, Regional Cooperation, European Union, Conflict, Regionalism, Autonomy, Rivalry, and Strategic Interests
Political Geography:
Russia and Europe

30. Rule-Bending Debates in Recent Finnish EU Policy: Pacta Sunt Servanda?

Author:
Saila Heinikoski
Publication Date:
02-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The Finnish EU policy line has traditionally been adaptable and compromise-seeking, but recent examples related to the rule-bending of EU law reveal some new tendencies. Finland has stood out from the European mainstream in several cases that relate to the rule-bending of EU law in three different ways: rule-bending by others, collective rule-bending, and its own rule-bending. First, intervening in rule-bending by others has found support in Finnish EU policy. Finland prioritized the rule of law in its 2019 Council presidency, as well as in the Government Report on EU policy published on 28 January 2021. Second, alleged collective rule-bending seems to be linked to the threat of federalism. In negotiations on the recovery and resilience facility in 2020, there was a wide domestic debate on whether the result was consistent with the traditional interpretation of EU treaties. Third, Finland’s own rule-bending of the Schengen Border Code’s six-month limit for internal border controls during the Covid-19 crisis seems to have been quietly accepted, with the Interior Minister acknowledging the existence of an “illegal state of affairs”.
Topic:
Regional Cooperation, Treaties and Agreements, European Union, Rule of Law, Regionalism, and Federalism
Political Geography:
Europe and Finland