Europe’s year of solidarity – and surprises – ahead

Europe’s year of solidarity – and surprises – ahead

The political scene across Europe will be a series of contradictions in 2018. At the same time the continent leaves behind 2017 more confident and stable, from the united front on Brexit talks to the new Merkel-Macron engine starting to fire on all cylinders, the voices of dissent are still echoing around – and it’s not just the sound of ardent Brexiteers.

Euroscepticism may not have grabbed the top seats of leadership, but 2017 has once more been testament to the fact that any power is enough for populism to re-shape the narrative of mainstream political parties. A tough policy on refugees here, a bit of anti-establishment knife-twisting there. Despite growing prosperity across Europe, there’s still enough discontent and mistrust of the political classes to swing the continent to the right.

In Germany, the AfD, founded just four years ago when it failed to win a single seat in the German national elections, this time round won 94 seats, and is the country’s third largest party.

A far-right party, the FPO, is in coalition again in Austria after a decade away from power. Then, it caused Austria to be frozen out of close European circles. These days, a party in power in the heart of Europe that’s anti-migration and anti-Islam is slowly becoming the new normal.

And in France, staunchly pro-Europe, centrist candidate Emmanuel Macron saw off the far-right Front National leader Marine Le Pen, but she still managed to get nearly 11 million people to vote for her – many weary of a sluggish economy and concerned about French identity.

2017 was also a year that saw terror grip major European cities again – in London, Manchester and Barcelona, claiming dozens of lives.

Angela Merkel Records New Year's Address
The pressure will be on German chancellor Angela Merkel to form a new government, after months of political uncertainty

2018 will start with pressure on Angela Merkel to form a new government, more than 3 months after the September elections. Mrs Merkel knows time is of the essence. As she said in her New Year address, “the world is not waiting for us”. She is due to meet SPD leader Martin Schulz at the end of this week to begin open-ended discussions on what next, ranging from a new coalition, propping up a minority Merkel government, or the prospect of new elections, which would deliver more or less exactly the same result.

Schulz may well have to swallow his pride and grudgingly accept to a new Grand Coalition with the CDU, fully aware that it will mean political suicide for his personal leadership and his party. But in doing so, he would be saving the unity of Europe’s largest and most powerful nation — and prop up Angela Merkel’s slipping crown, in the absence of no obvious successor to her yet.

Merkel has the challenge of winning over a growing number of voters who no longer think she’s up to the job. One poll published by WELT newspaper astonishingly showed that nearly 50 per cent of Germans want her to resign immediately. Just 10 per cent think she should remain.

Imagine for a moment the irony that, after the existential crisis of the Eurozone and the enormity of the (ongoing) migrant crisis that saw the door open to more than a million refugees into Germany in 2015, the relatively small matter of national elections would see her off.

However, Merkel can seek relief in the renewed sense of purpose for Europe through her close alliance with French president Emmanuel Macron. Both share a view for ambitious eurozone reforms. Yes, they are strong on style, but little on substance for now.

Grandstanding on the future of Europe has been Macron’s best trump card since being elected last May. His uncontrollably lengthy speeches and grandiose ideas are all well and good, but 2018 will be the year his promise is put to the test – with proof of results.

In his New Year’s speech, Macron said: “Europe is good for France – France can’t succeed without a strong Europe”.

After storming to victory, Macron administered the bitter medicine of reforms to France’s mammoth-sized state, saying he would do the job of turning the country’s labour market, regulations and economic model on their head, where his many predecessors had failed – or had simply been too frightened.

He said it would take “two years” to see the fruits of his labour reforms, pushed through in spite of determined, albeit dwindling, union anger.

European Council Leaders Meet in Brussels
Macron has captured the imagination of a reinvigorated Europe and a more prosperous France – with his popularity ratings starting to improve

France under its youngest leader since Napoleon has unmistakably undergone a growth spurt on the international stage. Macron has been flexing diplomatic muscle in Africa and in the Middle East, talking of French becoming the world’s first language, as well as boosting business confidence abroad. The 40-year-old president fixed meetings with both US President Donald Trump and the Russian leader Vladimir Putin soon after entering the Elysée, as France begins to rival Germany as the heavyweight in Europe and on the global diplomacy front.

Mr Macron still has to pass the test of speaking for all French people – addressing the millions who had felt left behind by globalisation and voted for Le Pen in May last year, and who regard him as an out-of-touch leader.

2018, so Macron says, will be the year of the “French renaissance”. In his TV address, he told the nation that they are “capable of the exceptional”. It’s the language of aspiration that a more optimistic France wants to listen to.

With a monopoly on power in the National Assembly and the first modern French president to reverse a continually downward popularity trend after a few months in office, this year looks bright for the so-called ‘Jupiter’ president.

Europe has never been a stranger to throwing up a few surprises, and in Italy, with populist parties nearer to power than ever before, March’s election could provide the EU with a moment for more nail-biting.

Opinion polls predict the eurosceptic, anti-establishment Five Star Movement emerging as the largest party, ahead of the ruling centre-left Democratic Party led by former Italian prime minister Matteo Renzi, and a resurgent Forza Italia in third place with the former ‘bunga-bunga’ leader Silvio Berlusconi at the helm.

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Italy’s current prime minister Paolo Gentiloni says “there is a long way to go” in the country’s economic recovery

But remember, this is Italy, a country much better known for coalition deals than strong and stable government. Italy has had 64 governments since World War Two.

The most likely result seems to be a hung parliament, which leaves potentially months of protracted talks and uncertainty ahead for financial markets and the entire eurozone.

Italy has emerged from the worst of the financial crisis, returning to growth, but it remains sluggish. The influx of migrants is still a big issue which will dominate the election agenda, despite a fall of a third in sea arrivals in 2017, according to Italy’s interior minister.

Berlusconi will be a figure to watch in bringing the sides together to thrash out a coalition deal. But the former prime minister, who has a tax fraud conviction that includes a ban on serving public office, can’t run for the top job, or even stand for parliament.

Let the games begin.

When Mariano Rajoy used an end-of-year press conference to say 2017 “hasn’t been an easy year at all” for Spain, he wasn’t joking.

The twists and turns in the battle between Barcelona and Madrid show no signs of ending. The intensely dramatic and bitterly divisive fallout from October’s illegal independence referendum has created Spain’s worst political crisis for nearly 40 years, with neither side looking likely to gather around the table for much-needed dialogue any time soon.

The incredible scenes of police violence on 1st October referendum day should have been enough of a wake-up call that Spain’s democracy has gone awry.

When Rajoy suspended Catalan autonomy and called snap elections after the regional parliament voted to unilaterally declare independence at the end of October, he took a gamble. He believed he could catch pro-independence parties on the back foot and deprive them of a parliamentary majority that they saw as a mandate for their break from the rest of Spain, and against Madrid’s “repression”.

After 21st December’s vote, however, we’re back at square one. The balance of pro-and anti-independence forces hasn’t changed – and splits more or less down the middle, leaving families, friends and colleagues incredibly divided.

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Spanish Prime Minister Mariano Rajoy says the unilateral declaration of independence in Catalonia was “destabilising”

Pro-independence parties are now in open disagreement about forming a government and who should be its president. Deposed Catalan leader Carles Puigdemont remains in self-imposed exile in Brussels, as his party discusses the possibility of investing him as president via video link, such is the risk of him being arrested as soon as he touches down in Spain.

The question of what Mr Puigdemont does next will not be easy to answer. The second option, former vice-president Oriol Junqueras, is one of eight Catalan leaders in custody or in exile awaiting trial on charges of sedition. As the legal process kicks off, there’ll be speculation once more of just how politically-motivated Spain’s justice system has become.

2017 exposed the silent majority of Catalans who are against independence, proud of both their Catalan and Spanish identities. The anti-independence party Ciutadans has ascended with each election – winning December’s vote with 11 more seats and a 25% vote share – but has no chance arithmetically of forming a government.

In opposition though, Ciutadans has the chance to moderate the ambitions of the region’s next secessionist government, by telling them they don’t speak for all Catalans, and pointing out that independence looks increasingly long-term in ambition, and fraught with risk, least of all for business.

Indeed, the separatist camp is divided about the next steps on independence, with one side pushing for the republic to be declared immediately, the other stepping back adopting a more moderate tone.

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Carles Puigdemont remains in Brussels – but for how much longer?

The conflict has in some part been of Rajoy’s own making. His long-term intransigence – hoping any crisis simply disappears if you don’t touch it – has done nothing to bring about a solution. What’s more, his PP party faired the worst ever in the region’s elections, coming last with just 4% of the vote.

More than 80% of Catalans want an agreed referendum – and while the elections showed that nothing has changed, it wasn’t a vote for the status quo either. Both sides need to talk desperately to turn down the political temperature, but giving in to the secessionists for Rajoy would be anathema. With growing speculation about a snap general election, Spain’s constitutional crisis over Catalonia looks set to bring even more surprises throughout 2018.

In March, Russian votes for its next president. But the token speculation ends there. Vladimir Putin is definitely heading for another term that by the end, will have seen him in power for a quarter of a century.

Putin presides over a continually weak economy, creating growing discontent on the streets, which in turn has led authorities to crush dissent even harder. Most recently, it resulted in banning prominent opposition leader Alexei Navalny from running for president after being convicted of embezzlement.

The all-too-predictable script to Russian politics to one side, Putin’s eyes will be fixed on the big prize – pulling off this summer’s World Cup, to be held in cities spanning the country. It will be another assertion of Russia in global affairs, and without a doubt an unforgettable summer of football.

Theresa May Leaves Downing Street For Prime Minister's Questions
Theresa May will have to get ready to see off more rebellions in the lengthy set of Brexit talks ahead this year

Finally, it will be decision time for Brexit. There’s more than a year to go before the UK formally leaves the European Union in March 2019, but the deal firstly on transition and then the future relationship will have to be thrashed out in good time before autumn, when it gets passed to the European Parliament, which wields a veto on the final deal.

The agreement reached at the beginning of December on phase one of “sufficient progress” on the divorce deal is merely the start of a long road ahead. Around the EU table, there’s renewed confidence in Theresa May in having been able to square the circle of the Irish border after the curveball thrown by the party that keeps her in power, the DUP. But the Irish question hasn’t disappeared altogether. Brussels will repeat its usual refrain in demanding more detail as Mrs May battles with squabbles in her Cabinet about what the end position should look like.

In her New Year message, the Prime Minister herself admitted this year had been a rollercoaster ride – “of course any year brings its challenges”, but she remained upbeat.

Indeed, May finished the year in a stronger position than many could have possibly imagined, after several Cabinet resignations, a parliamentary sex scandal, losing her majority in June’s snap election and dogged determination from both Remainer rebels and staunch Brexiteers on the backbenches that want her to change course.

A Cabinet reshuffle on the cards – a way of her shoring up her position in office – probably won’t be enough to stop the continued speculation about her future. There’s no knowing where the next crisis could possibly come from…

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2018 will be decision time for Brexit

Though May made clear Brexit was “crucial”, it was “not the limit of our ambitions”, she said. But if Mrs May wants a decent deal, there’ll be far too many Brussels talks and late-night Commons sittings to tackle anything else.

The strength of unity within Europe over the past year has shocked many – after a prolonged period of weak growth that brought a tide of Euroscepticism.

The doom-sayers who predicted more EU nations would follow Britain out of the bloc were wrong. Europe has a new sense of purpose, and successive elections have cemented strong leadership – Merkel and Macron the obvious examples  – who have addressed migration and extremism head on instead of ignoring it.

But populism is no longer the exception – it is the political mainstream.

It makes the guessing-game a trivial pursuit – because this year Euroscepticism could finally be a vote-winner.

Don’t mention the G-word. Turning up the heat in Europe

Don’t mention the G-word. Turning up the heat in Europe

Greece still has many hurdles to jump through before it can see its 86bn euro bailout being enacted. First, a vote in the Greek parliament is needed by Wednesday, which seems likely with opposition support. Parliaments in several eurozone states also have to approve the new bailout. In the longer term, Greece’s economy will likely enter a serious recession – a contraction of 3%, a rise in unemployment above 26%, and that’s before the ECB announces any further emergency liquidity (ELA) to prop up Greece’s virtually bust banking system, with capital controls to be kept in place for some time yet, and banks of course, still closed. And on Alexis Tsipras’ desk, a bill of 3.5bn euros to be paid to the ECB by next Monday.

With the vote on Greece’s bailout producing a decisive ‘no’ vote last Sunday, it was as much a referendum on prime minister Alexis Tsipras and his Syriza government, who now face supporting a more draconian bailout than was previously offered. The shift to populist parties across Europe is a trend that is set to continue, given the success of UKIP as a significant player in UK politics, the rapid rise of Podemos and latterly Ciutadans in Spain, as well as other parties across the continent challenging the consensus and traditional party politics. Together with this is a growing probing of democracy in Brussels, as many politicians will use the Greek deal as a means of making bold statements on the brutal nature of negotiations EU-style. Among them, the politics – and fairness – of austerity – endlessly debated between economists, its effects witnessed on every level in pharmacies and homes in Greece.

Talks around the table about Greece’s bailout flared up European divisions on the country’s exit from the single currency it has just avoided. Similar rifts on the migrant crisis have divided north and south Europe – the lion share of the 137,000 people in the first six months of the year arriving at the shores of Italy and Greece, the majority fleeing from Syria’s bloody civil war, according to a recent UNHCR report.

A look at headlines in recent days points to the continued scale of this problem. “Hungary begins work on border fence to keep out migrants”. 80,000 migrants have already reached Hungary this year, 80% of them from Syria, Iraq and Afghanistan. In fact, Hungary received more refugees per capita than any other EU country apart from Sweden. The threat of migrants is causing other European states to erect walls and fences, a physical and symbolic image of this problem.

The solidarity needed to implement Brussels’ plan to distribute migrants more fairly throughout Europe and ease the pressure on its most vulnerable states was in short evidence, after the plan was rejected at the end of June by European leaders, confirming again the toxic nature of immigration.

Long ignored in the European news cycle has been Ukraine. Its economy is forecast to shrink by nine percent this year, so precarious the situation remains in the country. Russia’s frozen conflict in the east has affected production, as a trade war continues. Gas supplies from Russia to Ukraine, as of the beginning of July, have been halted.

Ukrainian president Petro Poroshenko spoke yesterday of Russia’s plan to make Ukraine a “state of bondage”, wishing to exert political influence through the conflict in the east. He said: “Ukraine won’t allow that.”

He also warned of a new spike in military activity in Donbass: “We’ve got information that there is a record large number of the armed forces of the Russian federation along with the border of Ukraine.”

The Greek deal this morning has also staved off the threat of Russian economic assistance for the crippled southern European economy. Russian president Vladimir Putin was keen to ally with Tsipras, the latter describing Russia as one of “Greece’s most important partners” just last month. In addition, NATO movements in the Baltics to counter Russian aggression look unlikely to end any time soon.

A cocktail of economics and politics have already made for an incredibly turbulent year for Europe and its institutions. Disagreements are likely to create further divisions, proving the difficulty in mastering the art of diplomacy in such a divergent continent.

When predictions go wrong: the real threat to Europe in 2015

When predictions go wrong: the real threat to Europe in 2015

I entered 2015 with the prediction that one of the biggest European stories would be the flow of migrants from war-torn areas of the world, mainly in the Middle East, to European shores. This was most pronounced just before the turn of the New Year. Blue Sky M was a Moldovan vessel carrying nearly a thousand migrants, mainly from Syria, which had been abandoned by its crew. Italian coast guards brought the ship to Gallipolli safely. Then, two days later, a ‘ghost ship’ named Ezadeen containing some 450 migrants turned up in the Adriatic, later brought ashore by the Italian coast guard. The boat had again been abandoned by its crew. It seemed this would be, as it has been already, a recurring story with an ever greater threat to life and a burden to European states with already lots to worry about.

Italy was and will be seen as the most vulnerable target in what is now a lucrative business for smugglers, but dramatic scenes have also been witnessed in the Spanish enclave of Melilla in Morocco, where migrants have been seen jumping fences and overwhelming border postings. As numbers of migrants and asylum seekers fleeing conflict in places like Syria continue to swell, we are brought back to the bloodiness of the conflict there which is now entering its fourth year, with no sign of an end.

For the events in Paris and the deaths of 17 people, they serve as a reminder of the greatest scourge emanating from the Middle East: ISIS. The killers were influenced by ideology coming from the so-called state, including one, Amedy Coulibaly, swearing allegiance to the organisation in an online video. Coulibaly is believed to have travelled to Madrid days before the attack, during which he was shot dead. His widow, Hayat Boumedienne, travelled to Madrid on the 2nd January, before travelling to Syria via Turkey six days later. An intelligence failing, many will be thinking.

The number of Europeans fighting for ISIS, according to an estimate from September 2014, totals over 3,000. That figure rose rapidly throughout last year, and EU’s counter-terrorism chief Gilles de Kerchove said at the time: “”The flow has not been dried up and therefore possibly the proclamation of the caliphate has had some impact.”

The majority of fighters, he said, were from from France, Britain, Germany, Belgium, The Netherlands, Sweden and Denmark but a few are coming from Spain, Italy, Ireland and now Austria.

“Even a country like Austria I think has now foreign fighters, which I was not aware of before,” he said.

As major European capitals such as London, Madrid and Berlin seek to protect public buildings, public transport and similar high-profile targets, who would ever think that the next threat to peace in Europe after the horrific attacks in Paris would be the small Belgian town of Verviers?

Reports suggest that Belgian police had been tracking the two suspected jihadists who were killed yesterday and stopped them before it was too late. Their plan was to kill police “on public roads or at police stations,” according to the federal prosecutor at a press conference this morning.

And in Berlin, two men have been arrested on suspicion of recruiting fighters and procuring equipment and funding for Islamic State in Syria. German police were keen to point out this was part of a months-long investigation into a small group of extremists in Berlin. Though the threat is in itself worrying, some peace of mind is gained from the fact that authorities were already aware of these two potential incidents. Lessons might be learnt in Paris from the two Kouachi brothers having been on UK and US no-fly lists, in addition to their previous convictions, but the arguments over mass surveillance and the extent to which states can anticipate attacks is far from over.

Back to France, where in the wake of the Charlie Hebdo attacks, police in Paris have been pursuing a number of suspects who allegedly supported the Islamist gunmen behind the attacks in Paris. They are currently being questioned about “possible logistical support”, such as weapons or vehicles, that they could have given the gunmen. Again, this shows a renewed effort by Europe to confront what seems to have been a simmering problem for many nation states.

Away from the headlines of economic insecurity and poor growth for the continent, the topic of conflict in a globalised, connected world is what will undoubtedly mark this year. The potential for attacks, even the likelihood, has been raised across Europe. It will be the feared unknown at the forefront of our minds.

One final prediction

It seems already that there is another threat not just to Europe but to the world. Cyber attacks to French websites since the Paris shootings number around 19,000, more than a week following the attack on the Charlie Hebdo offices. The head of France’s cyberdefense for the French military said some of these had been carried out by well-known Islamic hacker groups. Arnaud Coustilliere pointed to “structured groups” that used tactics like posting symbols of jihadist groups on companies’ websites. Websites for small businesses, like pizza delivery or gardening. Hardly ones which could affect national security. With this in mind, It seems that the threat is all but overstated for now, though as I write this, there is breaking news that the sites of French public radio station France Inter, as well as newspapers Le Parisien, Marianne and L’Express have all been taken down. For now, it could be a suspected attack, but it could equally be an inocuous server fault. Could cyberterrorism bring a great threat of danger to countries around the world? The momentum for such attacks is already underway, though governments, already aware of the problem, seem to be gathering preventative measures.