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31. The German 'Schuldenbremse' crisis: a symptom to be taken seriously in Europe

Author:
Clara Bösche
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
The priority to be given to the ecological transition and its practical implementation are dividing Germany and Europe. The European Union is being accused of making the conditions of production for farmers even more difficult: the number of demonstrations across the European Union has been rising after the Germans began their protests on 15 January 2024, as they denounced the ambitions of the European Green Deal, as well as the human and financial costs. At the start of 2024, the German coalition government (SPD, Greens and FDP Liberals) led by Chancellor Olaf Scholz (SPD) is struggling, since its draft budget has been cut by around €60 billion. The origins of the budget cuts to which the government has had to resort lie in a decision taken by the Constitutional Court of Karlsruhe dated 15 November 2023. The latter censured the decision to reallocate 60 billion €, initially intended to cushion the economic impact of the pandemic crisis, to a special fund for the transformation of the economy and the climate. For two months now, opposition has been growing in Germany over the resources allocated, the priorities to be defined and the rules governing public debt. The constitutional appeal was lodged by CDU-CSU members of parliament, who denounced the government's "sleight of hand". As Germany enters a recession, the debate is whether or not it is still appropriate to limit public debt to 0.35% of GDP. Current circumstances no longer justify bending the rule: the pandemic crisis is over, and the exceptional funds earmarked should not be used for the economy or the environment. As a result, since the Constitutional Court's ruling against the federal budget, in addition to opposition over the priority to be given to the green transition in economic and agricultural life, further opposition has emerged: regarding whether the constitutional principle of the debt brake (Schuldenbremse) should be reformed or not. This principle is firmly defended by Friedrich Merz, leader of the CDU and of the CDU/CSU in the Bundestag. In his view, the debt brake is the only way to avoid saddling future generations with debt, and he fears that lifting it might have a knock-on effect in terms of the financial stability of other European Union countries. Within the government, the SPD and the Greens (led by the Vice-Chancellor and Minister for the Economy, Robert Habeck), would like to reform the debt brake to facilitate the necessary investments, in line with the European Green Deal. However, within the same government, the FDP Liberals, led by Finance Minister Christian Lindner, have long refused to challenge this constitutional principle, in the same way as the CDU/CSU opposition. Christian Lindner is therefore in a difficult situation, caught between traditional positions, his coalition partners and the opposition. A hard-won agreement on the 2024 budget, on 13 December 2023, provides for cuts that will result, in particular, in the reduction of tax relief on diesel on agricultural machinery - the main focus of demonstrations in Germany – but also in a postponement of the “climate bonus”. Priorities have had to be set because of this cutback, but they are the source of dissatisfaction both on the part of the farmers, as well as the promoters of the European Green Deal. The debate on Germany's levels of debt, in the light of the demonstrations now rocking the country, is further weakening the coalition - the aim in this paper is not to take position on this - but above all, to consider the problem of the priorities to be identified, not only in Germany but also in Europe.
Topic:
Budget, European Union, Tax Systems, and Green Transition
Political Geography:
Europe and Germany

32. Ukraine's European Aspirations

Author:
Myroslav Marynovych
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
Ukrainians have always been aware of the fact that they belong to the European cultural sphere. As Serhiy Plokhyi, professor of Ukrainian history at Harvard University, points out, "...times change, ideologies change - liberalism is replaced by national-communism... or the idea of human rights emerges. But Europe remains a constant as an example of that something else that is par excellence necessary for the survival of the Ukrainian national project." Before Ukraine was absorbed by Muscovy in the 17th century, the fact that Ukrainian lands were then part of the Rzeczpospolita (Polish-Lithuanian Commonwealth) opened up a natural cultural window onto Europe. It was thanks to this lively cultural exchange (albeit not without its problems) that “Ukrainian Baroque” yes amongst other trends, came to be. However, once Ukraine became part of the Russian Empire, new ideas from Western civilisation only reached Ukraine by way of the Russian language, thereby condemning Ukrainian culture to secondary status. Politically, as an independent subject, Ukraine simply disappeared from European consciousness. The emergence of an independent Ukraine in 1991 offered Ukrainians new opportunities to re-establish direct cultural and political contacts with Europe. Immediately, the need to "return to Europe" emerged in Ukrainian public debate. Politically, this had an initial consequence: Ukraine found itself at the end of a fairly long queue of states waiting to join the European Union "club". It was assumed that these states would join as they went along (legislative reforms, economic modernisation, the fight against corruption, etc.). It was not all plain sailing, nor was it without its pitfalls, but the vector of the European vocation (and accession to the European Union) in Ukraine's development was undoubtedly the most powerful, even if it was rivalled by the attachment of eastern Ukrainians to Russia's cultural and political landscape. The impact of Russia's large-scale aggression against Ukraine, which began on 24 February 2022, primarily affected the pro-Russian part of the country. It is members of this population who now constitute the majority of refugees and displaced persons. It is their vision of the world that has been turned upside down against a backdrop of atrocities and genocidal crimes committed by the Russians. Accession to the European Union and NATO has therefore become the sine qua non of Ukraine's aspirations, as confirmed by several documents of national importance. In addition to historical memory and purely cultural preferences, security priorities are now clearly visible. Ukraine has begun to implement the European Union’s recommendations and to adapt its legal framework to that of Europe. Any campaign against European integration, or simply questioning the need for it, would be perceived by Ukrainian society as a betrayal of national interests. Recently, however, opinions within the European Union have diverged somewhat. Alongside those States that were shocked by the brutality of the Russian aggression and have declared their solidarity with the Ukrainian people and their willingness to accept our country into the Union, there are also States such as Hungary and Slovakia that consider Ukraine's accession to the European Union to be premature, or even wrong. We can be both optimistic and pessimistic. Optimistic, because European leaders and the majority of Member States are increasingly in favour of Ukraine's accession. Pessimistic, because the chances of Ukraine's accession remain slim as long as the European Union retains its current decision-making rules. As war continues, the reactions of Ukrainian society to the reticence of Hungary and Slovakia and to the blocking of the borders by Polish, Slovakian and Romanian farmers have remained discreet. Ukrainians are aware that their country's accession to the European Union would be a long-term solution, and that a certain amount of restraint is therefore advisable. However, since nobody knows the future, in unfavourable circumstances, resentment and therefore rancour might erupt in Ukrainian society. This is why it would be useful to examine this situation not only from the point of view of the formal concordance of conflicting economic and political interests, but also from a broader perspective.
Topic:
European Union, Regional Integration, and Russia-Ukraine War
Political Geography:
Europe and Ukraine

33. The BRICS, a geopolitical challenge overlooked by the European Union

Author:
André Gattolin and Emmanuel Véron
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
Over the last five years, geopolitical considerations have taken an unprecedented place on the European Union's agenda. Its foreign policy, long in its fledgling stages, is finally beginning to take shape, even if it is still subject to the unanimous decisions of its Member States. The days when trade policy was the only real lever for European foreign policy are over. The increasing bluntness of international relations is obviously no surprise to Europe's still tentative geopolitical awakening. The European Union's foreign policy has many potentially dangerous blind spots. One of the most striking of these 'omissions' concerns the BRICS and their rapid development over the last three years. Launched in 2009, this informal forum of four major emerging countries (Brazil, Russia, India and China), which was enlarged to include South Africa in 2011 and now includes ten countries, still seems to escape the attention of the European Union. Over the last fifteen years, official European Union documents dealing with this grouping can be counted on the fingers of one hand. More descriptive than analytical, they are a long way from outlining a European position on this significant group of countries.
Topic:
Development, European Union, Geopolitics, Trade, and BRICS
Political Geography:
Europe

34. The Defence of Europe by Europeans: a myth, a necessity, an ambition, a hope?

Author:
Jean-Paul Palomeros
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
Without overstating the case, 2024 is shaping up to be a pivotal year. It has already been marked not only by the continuation of ongoing conflicts and crises, but also by their geostrategic effects and consequences, the full extent of which has yet to be assessed. 2024 will also be a year of great memorable moments and electoral events, a year of risks and, let's hope, opportunities, particularly for Europe. Like a leitmotif, or for some an “old chestnut”, European defence will be the focus of analysis, but also of a real stress test. With this in mind, it cannot be too early to raise a question that is vital to the future of Europe, and the European Union in particular.
Topic:
Security, Defense Policy, and European Union
Political Geography:
Europe

35. The various causes of the agricultural crisis in Europe

Author:
Bernard Bourget
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
The farmers' revolt, which peaked in January and February 2024, has affected most EU Member States. It is motivated by rising production costs, foreign competition, falling incomes, environmental constraints and cumbersome administrative procedures. However, certain causes are more specific to certain countries. This is the case in the Netherlands, where the farmers' revolt began in June 2022, in opposition to the Dutch government's plan to reduce nitrogen emissions by cutting livestock numbers. Dutch farmers had taken advantage of the abolition of milk quotas in 2015 to increase their production, making massive use of cattle feed imported from North and South America, and consolidating the Netherlands' position as Europe's leading exporter of food products. This farmers' revolt led to the creation of a party, the "Farmer-Citizen Movement" (BBB), which made a strong entry into the Senate in the March 2023 elections. In the countries of Central Europe - Poland, Slovakia, Hungary and Romania - it was the fall in cereal prices, due to the influx of products imported from Ukraine following the closure of the Black Sea shipping route and the suspension of customs duties in May 2022, that provoked farmers' anger. It even led to the resignation of the Polish Minister of Agriculture in April 2023. In Germany, as in France, it was the governments' plans to reduce tax rebates on agricultural diesel that triggered farmers' protests and led to motorway blockades in January 2024. Farmers' discontent had already made itself felt quietly in France in the autumn with the turning over of road signs at the entrances to rural communities. Other grievances have been added to the increase in taxes on diesel, notably the growing environmental obligations under the Green Deal of the European Union and hostility to the free-trade agreements under negotiation with Mercosur, Australia and New Zealand. The first measures taken or announced by governments and the European Commission helped to calm farmers' anger, but the farm protests then spread to Italy and Spain. In response to the scale of the farmers' protests across Europe, on 25 January the President of the European Commission launched, a Strategic Dialogue on the future of agriculture in the European Union, led by a German academic, Peter Strohschneider, whose conclusions are due before the end of the summer. The conclusions should inform the next Commission and prepare the programming of the Common Agricultural Policy (CAP) after 2027. Themes proposed to participants include farmers' incomes, the sustainability of their practices, technological innovation, and competitiveness. Beyond the immediate measures taken to calm farmers' anger and with a view to analysing its causes, this agricultural crisis needs to be considered in the context of the long-term development of the CAP and European integration.
Topic:
Agriculture, Social Movement, Crisis Management, Carbon Emissions, Farmers, and Green Transition
Political Geography:
Europe

36. 2024, a European political year - through the eyes of women

Author:
Stefanie Buzmaniuk
Publication Date:
03-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
In 1906, Finland became the first country in Europe to grant women the right to vote, with the adoption of universal suffrage, at the same time as it won its autonomy from the Russian Empire. The following year, Finnish women were able to exercise this right in the general elections. Throughout the twentieth century, women in Europe and around the world fought long and hard to gain the right to vote without any additional conditions to those required of men. In some countries, only widows were allowed to vote as a first step towards electoral emancipation (in Belgium, for example, until 1921). In other countries, such as Bulgaria, the right to vote was initially reserved for mothers of legitimate children and exclusively for local elections. In Portugal, only women with a university degree were allowed to vote from 1931 on. In Spain it was not until post-Franco democratisation and the 1976 elections that Spanish women regained the right to vote, initially acquired in 1931 before the civil war. This year France is celebrating the 80th anniversary of women gaining the right to vote. Cypriot women won the right to vote at the same time as their male counterparts when the Republic was created in 1960. This can be explained quite simply by the fact that, at that time, such discrimination could no longer be justified. So, it took a good part of the twentieth century to get there... In European countries, legislation on the right to vote and stand for election now recognises equal access for women and men. However, their participation in political life is still marked by significant differences and major obstacles that we believe are unjustified. Women are still less represented on the political stage, even though they make up more than half of the population. In the European Union, there are ten million more women than men. This is a fact that deserves our attention in 2024, a year that is notable for its electoral importance, with the election of representatives to the European Parliament scheduled for 6 to 9 June. There will also be five presidential elections and six parliamentary elections in the Member States. This therefore provides a good opportunity to examine the position of women on the European political scene and the obstacles that still exist behind the scenes preventing them from participating fully in political life.
Topic:
Public Opinion, Elections, European Union, Women, and Regional Politics
Political Geography:
Europe

37. Agriculture: an adjustment variable in trade agreements?

Author:
Nicholas-Jean Brehon
Publication Date:
03-2024
Content Type:
Commentary and Analysis
Institution:
Robert Schuman Foundation (RSF)
Abstract:
SUVs versus limousines? Cows, not cars! What if agriculture, and livestock farming in particular, were the adjustment variable in international trade negotiations being conducted - discreetly - by the European Union? What are we to make of the much-heard argument raised at the agricultural blockades?
Topic:
Agriculture, Treaties and Agreements, European Union, and Trade
Political Geography:
Europe

38. Some little-known effects of global warming

Author:
Louis Caudron
Publication Date:
03-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
In an effort to raise public awareness of the seriousness of the effects of climate change, the media generally associate global warming with increasing heatwaves and droughts, melting glaciers and rising sea levels. In reality, the effects of climate change are much more diverse, and they are not impacting all parts of the world in the same way. There are many losers, but there are also winners. The first example concerns rainfall. Contrary to what some might think, global warming does not mean an increase in drought, but rather an increase in rainfall. The rise in temperature translates into an increase in evaporation both on land and at sea, leading to an increase in rainfall on a global scale. Overall, two-thirds of the world's population will see an increase in rainfall and one-third a decrease. A map published by the CNRS illustration this development.
Topic:
Climate Change, Water, and Drought
Political Geography:
Europe and Global Focus

39. Sino-Russian relations in a geopolitical Europe

Author:
Pierre Andrieu
Publication Date:
03-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
The close relationship between Russia and China is by no means a solid, long-term alliance, but rather a temporary rapprochement, that has been strengthened by the Russian invasion of Ukraine. The fragility of this relationship, based on history and structural imbalances, persists and reinforces mutual mistrust. For the European Union, while all discussions with an aggressive and threatening Russia have disappeared, China remains both “a cooperation and negotiation partner, an economic partner and a systemic rival” with whom we need to maintain a sustained dialogue, commensurate with a Europe that has begun to assert its geopolitical dimension in the last two years.
Topic:
Bilateral Relations, Geopolitics, Rapprochement, and Russia-Ukraine War
Political Geography:
Russia, China, and Europe

40. Has the time come for European defence?

Author:
Maxime Lefebvre
Publication Date:
04-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
European defence has been a key issue since at least 1948, with the Treaty of Brussels between France, the United Kingdom and the three Benelux countries. At the time, the spirit of the signatories was still to guard against the threat posed by Germany, which was still fresh in people's minds (following on from the Franco-British alliance treaty of Dunkirk in 1947). But it was also increasingly aimed at responding to the threat of the USSR, which was tightening its iron grip on the eastern half of the European continent. As we know, this treaty was soon superseded by the Washington Treaty creating NATO, which is still, to this day, the political and military framework for European defence, coupled with that of the United States. Although the Brussels Treaty eventually disappeared, it survives, notably through the collective defence clause incorporated into the European treaties by the Lisbon Treaty. The idea, the project and the hope of a European defence are still alive, although they have not yet been realised. The war in Ukraine has changed the situation in several ways. Firstly, it places the question of war and peace firmly centre stage in Europe, an issue that had never completely went away, despite the end of the Cold War; however, it is now back at the top of the political agenda. Secondly, the war has led to profound unity in the response of the countries of the European Union to Vladimir Putin's open aggression against Ukraine, and the European Union has asserted itself as a major player complementing NATO and the United States. Finally, it raises the question of whether, should the United States change its policy on Ukraine following the presidential election in November 2024, Europeans would be in a position to take over assistance to Ukraine and move towards a genuine collective defence. To address this issue, it is necessary to take stock of European defence, with its achievements and limitations, and to reflect on the conditions under which a shift towards a genuine European defence could be envisaged.
Topic:
Defense Policy, Treaties and Agreements, European Union, and Russia-Ukraine War
Political Geography:
Europe