Analysis - Page 22 of 25

Syriza government: the first week

The press conference that followed the meeting of Finance Minister Yanis Varoufakis and the head of the Eurogroup Jeroen Dijsselbloem captured the attention of the European public. It was a media performance on both sides. Varoufakis drew his government’s hard lines and stated that they would no longer negotiate with the troika. Instead he put forward the demand for a conference to discuss debt relief. Deiselbloem’s performance of the infuriated eurocrat was out of protocol and has been largely understood as colonial by the Greek public. In a later communication with the Prime Minister Alexis Tsipras, Dijsselbloem referred to the episode as a misunderstanding.

Conflict re-ignites in Ukraine, leaving EU in dead end

The recent escalation of fighting in Eastern Ukraine challenges once again Europe’s position. The differences in opinion among EU members regarding the severity of the sanctions against Russia reflect the varied historical trajectories of the European countries. Traditionally, Italy finds itself on the moderate side on matters regarding Russia, while Poland squarely in the hawkish camp. The recent events and Polish reactions regarding the possible visit to Auschwitz by Mr Putin are indicative of these tensions.

Syriza allies with the Independent Greeks

Syriza and the Independent Greeks will jointly have 166 MPs, but Mr Tsipras is looking to secure a wider support in order to start the promised renegotiations with Greece’s creditors.

With all the votes counted, Syriza won the Greek elections with a 36.34% of the electorate, against a 27.81% of its rival Nea Dimokratia. The noe-fascist party Golden Dawn came third with 6.28%, followed by the centrist The River with 6.05%, the Communist Party at 5.47%, the Independent Greeks at 4.75% and Pasok at 4.68%. George Papandreou, the former Prime Minister, failed to re-elect into Parliament with his new party.

Syriza wins Greek elections

According to the exit polls that were conducted on behalf of the Greek tv networks Syriza is the winner of the Greek elections. This is the exit poll for Mega Channel that has Syriza in the lead with a comfortable margin. According to the statistical scenarios Syriza would need to gather 36.5% in order to get the majority in the Parliament. At the moment this seems a very likely development.

Syriza 35,5 – 39,5%

Nea Dimokratia 23 – 27%

Golden Dawn 6,4 – 8% The River 6,4 – 8%

Pasok 4,2 – 5,2%

EU re-affirms sanctions on Russia

The EU’s foreign policy regarding Russia was at the table at the recent meeting of European foreign affairs ministers. Federica Mogherini had circulated a paper among the group exploring the mood for a potential softening of the sanctions against Russia. Ms Mogherini suggested the EU might seek to improve relations with Russia by opening dialogue on a range of topics such as visas and energy policy. However, representatives of the UK, Poland and the Baltic states, traditionally cautious of Russia, considered it as an error in EU strategy.

EU governments to confront biotech industry

Biotechnology is the subject of heated debates worldwide. This is mainly why it took the EU so long to adopt a Directive that gives national governments the responsibility to decide whether to prohibit the cultivation of genetically modified organisms (GMOs) on their territory. In response to a request by 13 member states, the European Commission drafted the Directive in 2011. Back then, it faced stark opposition by France, Luxembourg, Austria and Poland, and it was only in 2014 that a political agreement allowed for its adoption in January 2015.

In Europe, a feeble rise in employment

The European Commission published a report on employment and social developments in Europe, on 15 January, where it is noted that more than nine million more are unemployed compared with 2008. The unemployment rate in the 28 EU member states reached 10.0% in November 2014, down from 10.7% in November 2013. Youth unemployment reached 21.9% in the EU and 23.7% in the euro area, compared with 23.2% and 23.9% respectively in November 2013. Unemployed young people under 25 are now 5.1 million in the EU, compared with 3.4 million in the Eurozone.

The imminent arrival of QE brings euro-dollar parity closer

The euro has depreciated relative to the US dollar to its lowest level in almost a decade. In the meantime, time is running out for the European Central Bank (ECB) to implement a massive purchase of sovereign bonds aimed at quelling the threat of deflation. This much-anticipated operation, called Quantitative Easing (QE), will most likely be officially announced by ECB president Mario Draghi at the upcoming meeting on 22 January. The European currency has plummeted this year under the 1.1747 dollar threshold, the exchange rate at which it was first introduced in 11 European countries on 1 January 1999. The euro continues to weaken after having lost 12% of its value relative to the US dollar in 2014, the sharpest annual fall since 2005.

Should Europe introduce tighter security measures after the Paris attacks?

Spain along with France and Germany push for introducing limits in passport-free travel within the Schengen area through national border ID checks.

Kolinda Grabar-Kitarović is the new Croatian President

Kolinda Grabar-Kitarović will become Croatia’s first female president following a narrow victory over the incumbent Ivo Josipović. This has been a male job ever since the country became independent after the breakup of Yugoslavia in 1991.