EU Leaders Weigh How to Close Competitiveness Gap With U.S., China |
A European Union (EU) summit today is focusing (AP) on the question of how the bloc can better compete in the global economy given large-scale investments in green technologies in the United States and China in recent years. Leaders are studying recommendations made by former Italian Prime Minister Enrico Letta, which include better integrating the bloc’s financial markets and raising new money for green energy projects from stock, bond, and venture capital investors instead of relying on bank lending. Former European Central Bank President Mario Draghi is also preparing (Euractiv) a report calling for “radical change” in the bloc, which is due to be presented in June.
The United States saw a productivity jump (FT) after its investments last year, while the European Union has not seen similar dynamism. While integrating capital markets is one of Letta’s more specific proposals, many countries in the bloc oppose the change. |
|
|
“The EU’s declining economic power versus major geopolitical rivals is increasingly sounding alarm bells in the region’s capitals,” Bloomberg’s Tom Hancock and Jorge Valero write. “Wars near and far, the possibility of another [Donald] Trump presidency and dependence on others for energy and critical materials are jangling nerves.”
“[Europe] trails China and the US in areas such as manufacturing of clean technologies thanks to a mix of burdensome regulations and higher energy prices. Electricity prices in the EU are typically twice to three times higher than in the US,” the Financial Times’ Alice Hancock writes.
|
|
|
Thousands Demonstrate in Georgia Against Advance of ‘Foreign Agents’ Bill |
Protesters rallied (RFE/RL) in front of parliament yesterday after legislators advanced the first version of a controversial bill that would force internationally funded bodies to register as foreign agents. A similar law in Russia has been used to restrict the activity of civil society groups. |
|
|
Philippines, New Zealand to Boost Economic, Military Ties |
The two countries’ relationship will become (Bloomberg) a “comprehensive partnership” in 2026, marking sixty years of bilateral ties, New Zealand’s Prime Minister Christopher Luxon said in Manila today. The countries set a target of increasing bilateral trade by at least 50 percent over the next few years and announced their commitment to boosting security cooperation to monitor illegal fishing and terrorism threats.
China/Indonesia: Indonesia’s President Joko Widodo asked for (Nikkei) China’s support in developing Indonesia’s transportation system in its new capital and with its petrochemical sector at a meeting today with China’s Foreign Minister Wang Yi in Jakarta. |
|
|
Myanmar Insecurity Reportedly Hampers Indian Plans to Send Back Undocumented Migrants |
Dozens of people who crossed into India that Indian authorities are seeking to deport back to Myanmar have been stuck in recent weeks due to fighting there, unnamed Indian security officials told Reuters. India’s government has blamed the refugee influx as a factor in the uptick in violence in its northeastern border state of Manipur since last year.
Pakistan: The government verified (AFP) in a court filing yesterday that it had blocked the social media platform X on national security grounds. For weeks, monitors have suspected this but the government had not confirmed it. X said today that it would work with Islamabad to “understand its concerns.”
|
|
|
Middle East and North Africa |
Qatar Reevaluates Role as Mediator Between Israel and Hamas |
Qatari Prime Minister Mohammed bin Abdulrahman al-Thani said yesterday that some politicians with “narrow interests” were undermining (FT) its mediation attempts. Doha helped broker a pause in fighting in November, though a potential deal for a new cease-fire has failed for weeks to see a breakthrough. On this episode of The President’s Inbox, CFR expert Steven A. Cook gives an update on the Israel-Hamas war.
Iran: The country’s oil exports during the first quarter of 2024 reached (FT) a six-year high, according to data company Vortexa; almost all of the oil went to China. Even as Western countries weigh sanctions on Iran for its attack on Israel, analysts say Washington is reluctant to enforce a “maximum pressure” regime on Iran’s oil exports in a way that could stoke inflation.
|
|
|
UN Human Rights Leader Says Crisis in DRC Risks Being ‘Forgotten’ |
Volker Türk visited (AP) the eastern Democratic Republic of Congo (DRC) yesterday, where a group of aid agencies estimated (AP) that one million people have been displaced by fighting between armed forces and rebels in the last three months. The United Nations is currently winding down a peacekeeping mission in eastern Congo while a southern African regional bloc prepares to intervene.
The Center for Preventive Action tracks the conflict in the Congo.
Zimbabwe: After Zimbabwe ditched a previous currency for depreciating too much, the replacement is now appreciating so quickly that the country’s central bank leader says he can intervene (Bloomberg) if needed to “bring it back to normal.” He did not say what level of exchange rate would trigger an intervention.
|
| |
Washington Announces Oil Sanctions Snapback on Venezuela |
The United States announced yesterday that it will reimpose (NYT) oil and gas sanctions previously lifted in October after the Nicolás Maduro government failed to meet U.S. demands regarding the competitiveness of this year’s presidential election. Oil giant Chevron will retain permission to extract oil (WaPo) under a separate license, and the Treasury Department is encouraging other companies to apply for specific licenses to do the same.
Costa Rica/UAE: The countries signed a comprehensive deal to boost trade ties, President Sheikh Mohamed bin Zayed al-Nahyan of the United Arab Emirates (UAE) said today. Costa Rican President Rodrigo Chaves Robles called the deal (The National) the first of its kind between Costa Rica and a Middle East country. Non-oil trade between the countries surpassed $65 million in 2023, up 7 percent from the previous year.
|
|
|
House Committee Unveils Bills on Assistance to Israel, Ukraine, and Indo-Pacific |
House Speaker Mike Johnson (R-LA) said yesterday that he would give (Reuters) House members until midday Saturday to review the bills and offer amendments before a vote. Together, the bills would provide more than $95 billion in security aid. U.S. President Joe Biden called for their quick passage.
These articles by CFR’s Jonathan Masters and Will Merrow look at U.S. aid to Israel and Ukraine in graphics. |
| |
Correction: Yesterday’s newsletter reported an incorrect conversion, stating Australia’s new defense plans totaled $32 million; the correct amount is $32 billion.
|
|
|
Council on Foreign Relations |
58 East 68th Street — New York, NY 10065 |
1777 F Street, NW — Washington, DC 20006 |
| |
|
