WESTERN EUROPE
Italians under the auspices of trade union staged a general protest against Silvio Berlusconi's centre-right measures geared at cutting fund
s for local government and freezing of public sector pay.
BP shares fell sharply in London last week following the company's announcement that the cost of responding to the Gulf of Mexico oil leak has risen to $2.35 billion. The share price dipped as low as 303.6 pence ($4.52) during morning trading, a 6.3 % drop. That took the shares well below half of the 655 pence price on April 20, the day an explosion killed 11 workers on the Deepwater Horizon drilling rig.
Meanwhile the coalition British government released its budget tagged as the most severe budget that cuts spending and increases tax since the early days of Margaret Thatcher’s era. The budget is expected to irk the British public, particularly the powerful public-sector unions and their allies in the Labour Party.
British Minister of State for Europe David Lidington said last week that the United Kingdom supports the independence and territorial integrity of Kosovo and opposes its partition.
The Spanish parliament has approved the Stabilization and Association Agreement (SAA) with Serbia and next will inform Brussels that the ratification procedure is completed. Spain will be the first EU member to complete the ratification. Italy will likely be next, while Austria, Denmark, Finland and Poland will kick off the procedure this fall.
German politicians are calling for the reintroduction of border controls in the areas adjacent to Poland and the Czech Republic due to a growing number of car thefts.
CENTRAL AND EASTERN EUROPE
Albanian junior ruling coalition partner, Socialist Movement for Integration (SMI) has reiterated its calls for a solution to the longstanding political crisis in the country. A protracted crisis that the European parliament was disappointed about after several steps towards reconciliation failed.
Kosovo Serb-dominated municipality of Partesh/Partes went to the polls last week to elect local leaders. Although turnout topped 65% but none of the contestants were able to secure 50% vote therefore a mayoral run-off will be required.
Meanwhile the UNDP "Early Warning Report" outlined serious worry and dissatisfaction among Kosovars for the growing failure of government institutions. Government work, unemployment, poverty and the judiciary are all worrisome issues, while KFOR and the Kosovo Police and EULEX received public appreciations. The report came amid the resolution of the Parliamentary Assembly of the Council of Europe (PACE) urging Pristina authorities, EULEX and UNMIK to demonstrate more commitment to strengthening the rule of law, required for Kosovo to meet EU standards.
Montenegrin state-level coalition partners, the Democratic Party of Socialists (DPS) and the Social Democratic Party (SDP) reached an agreement to form a coalition within Podgorica's local government.
Having failed to win a vote of no confidence, Romania’s two largest opposition parties, the Social Democratic Party and the National Liberal Party have decided to postpone a new motion of no confidence against the government until the autumn. The last vote though failed was tailored to challenge government for its austerity measures. Opposition opted for court and the court ruled that the government's decision to cut pensions by 15% as of mid-year is unconstitutional, as is the decision to end the practice of offering higher pensions for certain professions, including law enforcement and judicial posts. However, the court allowed the 25% cut in salaries of civil servants.
Croat labour unions have garnered enough signatures for referendum that will decide whether the country should continue with collective union bargaining or start an individual system where every employee will have to bargain with employer one on one.
Macedonian President Gjorge Ivanov after a meeting with his Russian counterpart Dmitry Medvedev, on the sidelines of the International Economic Forum said that energy giant Gazprom has agreed to include Macedonia in the South Stream gas pipeline project.
Macedonian Police detained 48 people last week suspected of illegal trade in archaeological artifacts.
European Integration Minister Gordana Djurovic has said that Montenegro will be prepared to join the EU by 2014.
A court in Bucharest has sentenced a Romanian and a Bulgarian to 12.5 years in prison each for passing classified information to Ukraine. Floricel Achim and Petar Marinov Zikolov were arrested in March 2009 in Bucharest on charges of having delivered confidential Romanian military files to a country that is not a member of NATO.
Serbian war crimes prosecutors have pressed charges against four former members of a paramilitary group for war crimes against civilians committed in Croatia. The four allegedly took part in the 1991 killings of six non-Serbs in the Beli Manastir municipality.
Slovenia’s Foreign Minister Samuel Zbogar said last week that Croatia will not be able to wrap up its EU accession talks unless it opens its financial market to Slovenia's biggest bank, Nova Ljubljanska Banka (NLB). The central bank in Zagreb blocked access until the former Ljubljanska Banka (LB) was to settle its debts to Croatian citizens. Meanwhile Slovenian Parliament's foreign policy committee last week okayed opening the judiciary negotiation chapter of EU accession talks with Croatia at the next inter-governmental conference.
In Poland initial exit polls indicated Bronislaw Komorowski, the candidate of Civic Platform having won 40.7% of the vote. In a presidential runoff on July 4, Komorowski garnered 52.6 % of the votes, bagging the presidency.
The outcome of the Slovak election failed to favour the Socialist ruling party and its coalition partners, bringing forth Iveta Radicova as the first Slovakian female prime minister. Radicova has formed a parliamentary majority through a coalition of four small center-right parties: her SKDU-DS, Freedom and Solidarity (SaS), the Christian Democratic Movement (KDH) and Most-Hid.
Meanwhile in Hungary the political system permits selection of president by the parliament with at least 50 MPs approval. Andras Balogh, Hungarian ambassador to Thailand has been picked as the next president with 50 MPs approval
According to a latest report good financial discipline saved the Polish economy from the 2009 financial recession. The economy stood out among EU and OECD countries. It kept its inflation rate and its debt levels low, limited its borrowing in foreign currencies, and accumulated a large amount of foreign reserves. It did not overact to the financial crisis and hence prevented the panic.
Meanwhile, the European Commission wants Ireland, the Netherlands, Poland and Austria to change certain aspects of their legislation which are not in compliance with EU rules on value-added tax (VAT).
Due to recent financial problem encountered in the Eurozone, Czech President Vaclav Klaus, a pronounced Euro-sceptic has reiterated his view that the zone has no future.
Ukrainian government reported a GDP growth and sees a full-year GDP growth at around 3.7 and 4.5%. According to a separate report, the growth accelerated to 6.1% in the first five months of 2010 from 4.8 % in the first quarter.
The new Hungarian government will not be distancing itself from the prevailing austerity measures elsewhere in Europe. The government plans to cut budget deficit, raise taxes but there are no plans to introduce new taxes and it might be borrowing from IMF/EU to keep the economy stable.
Despite the energy face-off, Belarusian President Alexander Lukashenko has urged Russia to make both countries keep security and strategic relations prioritized.
The Czech President Vaclav Klaus is making an attempt to mediate between Athens and Skopje over the name dispute. During Czech presidency of the EU, an abortive effort was made to resolve the dispute.
Belarusian authority takes an adamant stance not to extradite former Kyrgyz president Kurmanbek Bakiyev taking refuge in Belarus. Bakiyev has been in Belarus under President Alexander Lukashenko’s personal protection since April this year. Kyrgyz’s interim government wants Bakiyev for charges of corruption and misuse of office.
NATO has planned using Lithuania Embassy in Georgia as the channel of communication with Georgian authority. This decision was made by member-countries of the alliance.
RUSSIA
Controversial Russian political figures are in coalition for a single party. Meanwhile the Other Russia coalition, the National Bolshevik Party, People's Democratic Union and United Civil Front are joining hands to contest the next parliamentary election.
According to recent Freedom House survey, Russia retains the status of controlling the Internet and limiting political competition among dissidents, and the government is also accused of failing to fight corruption and exercising pressure on businesses.
On March 25, the Belarusian Ministry of Justice filed a claim to the CIS Economic Court, over export customs duties on Russian oil products and petrochemical raw materials. The CIS Economic Court (EC) has dismissed Belarus’ motion to suspend duties on oil products from Russia.
The Georgian President Mikheil Saakashvili said last week that his country will be ready for "extensive" dialogue with Russia. The remark came barely days after the Russian president ruled out any progress in Russian-Georgian relations under Saakashvili.
Russian President Dmitry Medvedev and U.S President Barack Obama have agreed to restart exports of poultry by US companies to Russia as the two leaders found common ground on trade and investment. Washington is also backing Russia's entry into the World Trade Organisation, saying that it would deepen Moscow's integration into the global economy. However Russia-US relation was yet again strained as U.S officials apprehended and charged ten persons for conspiring to spy for Russia. The Russian foreign minister, Sergey V. Lavrov, questions the timing of the decision by the United States to break up the spy allegation. The espionage allegation nonetheless did not stop the U.S State Department to paint the Caucasian insurgent leader Doku Umarov a terrorist, a step announced on the eve of President Dmitri A. Medvedev’s visit to the White House.
According to RBC’s report Russia's foreign trade surplus from January to May 2010 was 72 billion U.S. dollars, indicating growth in export and import of the country.
Russia and the United States will collaborate on humanitarian effort for the affected people in recent Kyrgyz’s violence. The violence erupted after the president was ousted, leaving about 2,000 people dead and 400,000 ethnic Uzbeks homeless.
Russian and Canadian authorities are now in partnership of satellite monitoring project. The satellite system will monitor climatic changes and survey energy resources in the Arctic region. It will monitor the weather and environment of the North Pole, pinpoint hydrocarbon deposits on the Arctic shelf, provide telecommunications over the hard-to-access areas and ensure safe air traffic and commercial shipping in the region.
Ukrainian Prime Minister Mykola Azarov once again diffused the view that a merger between Russian energy giant Gazprom and Ukraine's state gas firm Naftogaz is far from being real. Critics have criticized the government of over depending on Russia, even though the merger is hoped by Russia to be an avenue of alleviating Ukraine from energy problem.
Russia is avoiding being left behind, as most major economies spend money on the development of new arms, hence Russia must not be an exemption. Increasing military development will benefit Russian economy as it is a major arms exporter. Moscow is planning to increase its hardware sale by 12% before the end of the year.
Russia’s ire was raised due to UN’s failure to consult the UNSC over the appointment of UN panel of Experts to investigate war crime in Sri Lanka. Russia holds that such investigation should be the principal task of Sri Lankan government. Similarly, Moscow resented Council of Europe’s invitation of Chechen separatist leader Akhmed Zakayev, to attend a CE meeting. Zakayev has been on Russia’s wanted list.
Polish-US missile system partnership has kicked off and training of the Poles for the system is started in Germany. Yet the grievance of Russia over the installation of U.S. Patriot missiles just 100 kilometres from the Russian Kaliningrad remains a concern.
US/CANADA
Gen. Stanley McChrystal’s comment during an interview in Rolling Stone magazine has cost him his job. McChrystal’s comments sounded insulting to President Barack Obama and key administrative officials, who according to McChrystal are less informed of the reality in Afghanistan and lacking serious plans to see Americans through the war. McChrystal though later apologized for the inconvenience his comment had caused.
The US Senate and House of Representatives has agreed unanimously to emasculate Iran through a new round of sanctions that will punish severely any company, either within the US or overseas, trading with Iran.
American economy grew slowly in first 3months of 2010 than previously projected. The economy was expected to grow by 3% but statistic shows a growth of 2.7%.
Meanwhile in the wake of the Gulf of Mexico oil spill President Obama ordered six month suspension of oil drill, but a federal judge in New Orleans unblocked the moratorium on economic and businesses grounds. The White House swiftly vowed to appeal the ruling.
Faisal Shahzad pleaded guilty last week to a 10-count indictment charging him with attempting to set off a car bomb in Times Square on May 1 in a conspiracy with Pakistan’s Taliban.
Massive protests by anti-globalization activists during the last weekend of the G8/G20 summits in the Canadian cities of Muskoka and Toronto led to arrests of more than 900 people and widespread damage to the financial sector when the crowd smashed the windows of stores and banks.
LATIN AMERICA
In Argentina Ex Foreign minister Taiana’s resignation has reportedly resulted from a clash between him and President Fernandez de Kirchner. Taiana will be succeeded by Timerman, a staunch supporter of Kirchner family and the Argentinean ambassador to US.
Presidential aspirants for the forthcoming Brazilian elections have started campaigning and introducing themselves to foreign leader. In a detailed report published by the Economist magazine, formidable economic policies of Brazil are said to be responsible for Brazil’s independent global policy. Traditionally, Brazil is a supporter of United States, but its growing economic clout can not be disconnected from its recent policy on Iranian nuclear issue.
Brazilian Foreign Minister visited Bulgaria to boost economic relations with the latter, in a first of its kind visit by a high official.
In recent Colombian elections were won by Juan Manuel Santos, an ex defense minister, who defeated Bogota’s Mayor Antanas Mockus with 69%. President-elect Juan Manuel has planned not to discontinue with Uribe’s policy of combating terrorist, drug production and trafficking. Despite the mistrust with Uribe’s government, Ecuadorian President Rafael Correa and Venezuelan Hugo Chavez have welcomed the newly elected Colombian president. Meanwhile, United States too has congratulated Santos for his election victory.
Mexicans are due to go to the poll to elect new governors, but drug cartels and drug-related violence in the country is daunting the political landscape. The influence of drug lords on politics is no news, as 12 governors are reportedly receiving the support of the lords. Meanwhile, the Roman Catholic Church of Mexico is requesting tougher government involvement in the forthcoming election in order to safeguard against drug lord election intimidations.
Meanwhile an official of United Nations Office on Drugs and Crime (UNODC) has praised the Colombian government’s role in reducing drug related activities and coca production in Colombia.
Venezuela’s President Chavez has reshuffled his cabinets as a way of preparing for upcoming September elections. The reshuffling has been criticized as a usual Chavez tactic, who reshuffles yearly.
At the economic front in Brazil President Lula da Silva defended his policy of 7.7% increase in pension. According to him, the policy should neither affect public account nor burden the government; rather it would be a mechanism for supporting eight million retired Brazilians. Similarly, the president kick started the Family Farming Harvest Plan 2010/2011 expected to create opportunity and livelihood for many families. The plan should cut interest rates on the family farming from 5.5 % to 4.5 % annually.
International Labour Organization has urged the Venezuelan government to retract from anti privatization policies that target private businesses and disturb the growth of the economy.
Meanwhile President Chavez has requested Interpol to arrest the owner of private television Globovision for criticizing the government outside the country. The United States condemned the Venezuelan move deeming it a violation of human rights.
AUSTRALASIA
In a brutally efficient move driven by bad opinion polls and the approach of a general election, Australia’s Labor party has dumped Prime Minister Kevin Rudd for his 48-year-old deputy. At a news conference that capped one of the most abrupt transitions in Australia's political history, Gillard said she accepted the job "with the greatest humility, resolve and enthusiasm."
Meanwhile Australia's new prime minister said she used her first telephone conversation with President Barack Obama last week to assure him the country's military commitment to Afghanistan would not change under her leadership. Some observers have speculated Prime Minister Julia Gillard may push for an early withdrawal of Australia's 1,550 troops from Afghanistan as the war loses popularity among Australians and elections loom. §
s for local government and freezing of public sector pay.
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