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Is the Façade of European Unity Already Full of Cracks?
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- in Elections
Biden Faces New Challenges With Coalition on Ukraine Support
The domestic and international consensus has shown signs of fraying as midterm elections loom in the United States and Europeans face the prospect of a cold winter.WASHINGTON — The White House said on Wednesday that it sees no current prospects for negotiations to end the war in Ukraine, even as President Biden faces new challenges keeping together the bipartisan, multinational coalition supporting the effort to drive out Russian invaders.The domestic and international consensus that Mr. Biden has struggled to build has shown signs of fraying in recent days with the approach of midterm elections and a cold European winter. But Mr. Biden’s advisers have concluded that President Vladimir V. Putin of Russia remains committed to force and that Ukrainian leaders are unwilling to give ground following recent battlefield victories.“Neither side is in a position to sit down and negotiate,” John F. Kirby, the strategic communications coordinator for the National Security Council, told reporters on Wednesday. “Putin is clearly continuing to prosecute this war in a brutal, violent way,” he said, while the Ukrainians given their momentum “are not in a position where they want to negotiate.”Mr. Kirby emphasized that the Americans will defer to President Volodymyr Zelensky of Ukraine while trying to strengthen his position in any negotiations that may eventually occur. “If and when it comes to the table,” Mr. Kirby said, Mr. Zelensky “gets to determine when that is; he gets to determine what success looks like, and he gets to determine what or what he is not willing to negotiate with the Russians.“But we’re just not there yet,” he said.The assessment came a day after a group of House Democratic progressives withdrew a letter to Mr. Biden calling for a revised strategy and broaching the possibility of direct talks with Russia to resolve the conflict. Although the 30 progressives backed off in the face of a backlash within their own party, the restiveness on the left served as a warning sign of fatigue after eight months of war financed in large part by American taxpayer dollars.The emerging erosion of support for the current strategy is more pronounced on the political right. Representative Kevin McCarthy of California, positioned to be the new House speaker if Republicans win the House next month as expected, last week threatened to curb future aid to Ukraine, aligning himself with former President Donald J. Trump and the Fox News host Tucker Carlson.On the other side of the ocean, European allies facing the onset of cold weather with Moscow controlling the fuel spigot see the future course of the conflict with Russia in different ways. Some former Soviet-bloc countries in Eastern Europe want Russia firmly defeated and its troops driven out of all of Ukraine, including Crimea, while countries like Germany, France and Italy believe such a full-scale victory is unrealistic and worry that Washington is not thinking clearly about how the war might end.Even between allies sharing similar views, tensions have risen over energy and defense strategy. President Emmanuel Macron of France and Chancellor Olaf Scholz of Germany met in Paris on Wednesday to discuss their differences over a French-backed European Union cap on natural gas prices that Germany has resisted even as it subsidizes its citizens’ gas bills.Ratcheting up the pressure further, Mr. Putin on Wednesday for the first time personally claimed that Ukraine was preparing to set off a so-called dirty bomb, repeating unsubstantiated assertions made previously by lower-level Russian officials. American officials once again dismissed the contention, calling it a possible pretext for Russia to escalate its attack on Ukraine.As Russian forces conducted an annual military exercise testing nuclear-capable missiles, the Biden administration imposed sanctions on more than 20 Russian and Moldovan individuals and entities reportedly involved in a Russian scheme to interfere in Moldova’s political system.For Mr. Biden, who has built a broad coalition for his approach at home and abroad, the next few weeks could be pivotal. While the Ukrainian war effort still enjoys wide support in the United States, polling suggests some attrition, especially among Republicans.Twenty percent of Americans interviewed by the Pew Research Center last month said the United States is providing too much help to Ukraine, up from 12 percent in May and 7 percent in March. Thirty-two percent of Republicans said too much was being done for Ukraine, compared with 11 percent of Democrats. About 46 percent of Republicans said the United States was doing about the right amount or not enough, while 65 percent of Democrats agreed.“Unfortunately, what we’re seeing I think is Russian far-right propaganda talking points filtering into the U.S. political environment, and knowingly or unknowingly we see U.S. politicians basically using talking points that will do nothing but bring a big smile to Putin’s face,” said Evelyn Farkas, executive director of the McCain Institute for International Leadership and a former Pentagon official under President Barack Obama..css-1v2n82w{max-width:600px;width:calc(100% – 40px);margin-top:20px;margin-bottom:25px;height:auto;margin-left:auto;margin-right:auto;font-family:nyt-franklin;color:var(–color-content-secondary,#363636);}@media only screen and (max-width:480px){.css-1v2n82w{margin-left:20px;margin-right:20px;}}@media only screen and (min-width:1024px){.css-1v2n82w{width:600px;}}.css-161d8zr{width:40px;margin-bottom:18px;text-align:left;margin-left:0;color:var(–color-content-primary,#121212);border:1px solid var(–color-content-primary,#121212);}@media only screen and (max-width:480px){.css-161d8zr{width:30px;margin-bottom:15px;}}.css-tjtq43{line-height:25px;}@media only screen and (max-width:480px){.css-tjtq43{line-height:24px;}}.css-x1k33h{font-family:nyt-cheltenham;font-size:19px;font-weight:700;line-height:25px;}.css-1hvpcve{font-size:17px;font-weight:300;line-height:25px;}.css-1hvpcve em{font-style:italic;}.css-1hvpcve strong{font-weight:bold;}.css-1hvpcve a{font-weight:500;color:var(–color-content-secondary,#363636);}.css-1c013uz{margin-top:18px;margin-bottom:22px;}@media only screen and (max-width:480px){.css-1c013uz{font-size:14px;margin-top:15px;margin-bottom:20px;}}.css-1c013uz a{color:var(–color-signal-editorial,#326891);-webkit-text-decoration:underline;text-decoration:underline;font-weight:500;font-size:16px;}@media only screen and (max-width:480px){.css-1c013uz a{font-size:13px;}}.css-1c013uz a:hover{-webkit-text-decoration:none;text-decoration:none;}How Times reporters cover politics. We rely on our journalists to be independent observers. So while Times staff members may vote, they are not allowed to endorse or campaign for candidates or political causes. This includes participating in marches or rallies in support of a movement or giving money to, or raising money for, any political candidate or election cause.Learn more about our process.White House officials said privately that they had nothing to do with the swift retreat of the Congressional Progressive Caucus that proposed negotiations with Russia, but were reassured by the quick reversal. The increasing Republican skepticism, however, means that a midterm election victory by the opposition would raise questions about future aid packages.Even before Mr. McCarthy’s statement promising to resist a “blank check” for Ukraine, 57 Republicans in the House and 11 in the Senate voted against $40 billion in assistance in May and more of the party’s candidates on the campaign trail have expressed resistance to more money for Ukraine.But other Republicans have been steadfast backers of Ukraine, most notably Senator Mitch McConnell of Kentucky, the party’s leader in the upper chamber who pointedly rebuffed Mr. McCarthy’s no-blank-check comment.“We have enjoyed and continue to enjoy terrific bipartisan support for our approach to Ukraine and the kinds of security assistance that we’re providing, and we’re going to need that support going forward,” Mr. Kirby said. “The president’s not worried about that.”Biden allies said Democrats had proved to be self-correcting when it came to the progressives’ letter but urged the president to explain his strategy to the public and the stakes involved.“This is a difficult and dangerous situation that requires staying power and to some extent sacrifice on the part of the United States,” said Representative Tom Malinowski, Democrat of New Jersey and a staunch supporter of Ukraine aid. “It’s always important for the president to be making the case to Congress and to the American people that this is in the national interest and the right thing to do.”Still, as the war grinds on, in Europe it feels more and more like an American venture. American contributions of war matériel and money exceed those of all the other allies put together, and American strategy choices are dominant, aided by the brutality of the Russian war, the bravery of the Ukrainian government and military and Mr. Putin’s clear disinterest in negotiations, let alone a Russian withdrawal.In these European countries, there is quiet worry that Ukraine will do so well as to drive Mr. Putin into a desperate gamble of escalation — a worry not unknown in Washington, too. For the Germans and the French, a settlement along the lines that existed before the Feb. 24 invasion would seem quite sufficient — a defeat for Mr. Putin but not a rout. The fear is that too big a loss of face for Russia would push Mr. Putin into using nuclear weapons in some fashion, or a “dirty bomb” conventional explosive with radioactive material that could be blamed on the Ukrainians in order to justify a significant escalation.That is a major reason that Germany and France seem to be carefully calibrating the sophistication of the weapons they send to Ukraine, as Mr. Biden does too. Europe has pretty much run out of Soviet-era weapons to send to Ukraine, and its own stocks, intended for its own defense, are also low, a function of the post-Cold War “peace benefit” that caused military spending to plummet all over the continent, a trend only slowly being reversed in earnest.There is a significant disparity between the flood of arms supplied by the United States, Britain, and Poland and what the rest of Europe is providing, which has raised the persistent question of whether some countries are slow-walking supplies to bring about a shorter war and quicker negotiations.Taken as a whole, the West is providing Ukraine “just enough” weaponry “to survive, not enough to regain territory,” said Ulrich Speck, a German foreign policy analyst. “The idea seems to be that Russia should not win, but also not lose.“What countries send and how slowly they send it tells us a lot about the war aims of Western countries,” he added. “And it becomes even more important now because Ukraine is more dependent on Western arms.”For all of that, Eric S. Edelman, a counselor at the Center for Strategic and Budgetary Assessments in Washington and a former under secretary of defense under President George W. Bush, said the Europeans have stuck together more firmly than many had expected.“Public support remains quite strong,” Mr. Edelman said. “And although there will definitely be negative economic effects — particularly in Germany — the Euros have taken a lot of steps to buffer themselves” by storing energy and diversifying supplies. “Putin,” he said, “may find that he has made a bad bet.”Still, he added, “notwithstanding this generally bullish assessment, one should never underestimate the challenges of coalition maintenance and alliance management.”Peter Baker More
- in UK Politics
Ukraine war headed for ‘uncontrolled escalation’ as dirty bomb fears grow
Western officials, including UK foreign secretary James Cleverly, have strongly refuted claims from Moscow that Ukraine plans to use a “dirty bomb”, and instead have accused Russia of plotting to use a threat of a missile laced with nuclear material as a pretext for escalation of the war.With Ukrainian forces advancing into Russian-occupied Kherson province, Moscow’s defence minister Sergei Shoigu phoned Western counterparts to tell them his country suspected Kyiv of planning to use a “dirty bomb“.That claim was also backed up on Monday by Moscow, with officials claiming Kyiv was in the “final stage” of creating such a weapon. More
Will Boris the Big Beast be Back?
The Fair Observer website uses digital cookies so it can collect statistics on how many visitors come to the site, what content is viewed and for how long, and the general location of the computer network of the visitor. These statistics are collected and processed using the Google Analytics service. Fair Observer uses these aggregate statistics from website visits to help improve the content of the website and to provide regular reports to our current and future donors and funding organizations. The type of digital cookie information collected during your visit and any derived data cannot be used or combined with other information to personally identify you. Fair Observer does not use personal data collected from its website for advertising purposes or to market to you.As a convenience to you, Fair Observer provides buttons that link to popular social media sites, called social sharing buttons, to help you share Fair Observer content and your comments and opinions about it on these social media sites. These social sharing buttons are provided by and are part of these social media sites. They may collect and use personal data as described in their respective policies. Fair Observer does not receive personal data from your use of these social sharing buttons. It is not necessary that you use these buttons to read Fair Observer content or to share on social media. More
- in Elections
As Europe Piles Sanctions on Russia, Some Sacred Cows Are Spared
The European Union has been severing economic ties with Moscow to support Ukraine, but some countries have lobbied to protect key sectors.BRUSSELS — Eight months into the war in Ukraine, and eight rounds of frantic negotiations later, Europe’s sanctions against Russia run hundreds of pages long and have in many places cut to the bone.Since February, the European Union has named 1,236 people and 155 companies for sanctions, freezing their assets and blocking their access to the bloc. It has banned the trade of products in nearly 1,000 categories and hundreds of subcategories. It has put in place a near-total embargo on Russian oil. About one-third of the bloc’s exports to Russia by value and two-thirds of imports have been banned.But even now some goods and sectors remain conspicuously exempted. A look at just a few items reveals the intense back-room bargaining and arm-twisting by some nations and by private industry to protect sectors they deem too valuable to give up — as well as the compromises the European Union has made to maintain consensus.The Belgians have shielded trade in Russian diamonds. The Greeks ship Russian oil unimpeded. France and several other nations still import Russian uranium for nuclear power generation.The net impact of these exemptions on the effectiveness of Europe’s penalties against Russia is hard to assess, but politically, they have allowed the 27 members of the bloc to pull together an otherwise vast sanctions regime with exceptional speed and unanimity.“Ultimately, this is the price of unanimity to hold together this coalition, and in the grander scheme of things the sanctions are really working,” said Jacob Kirkegaard, a senior fellow in the Brussels office of the research group the German Marshall Fund, citing Russia’s diminished access to military technology as evidence.A Lukoil gas station in Priolo Gargallo, Italy, last month. The European Union has put in place a near-total embargo on Russian oil, but some sectors of trade remain conspicuously exempt from sanctions.Gianni Cipriano for The New York Times“We would love to have everything included, diamonds and every other special interest hit, but I am of the opinion that, if sparing them is what it takes to keep everyone together, so be it,” he added.The Ukrainian government has criticized some of the exemptions, with President Volodymyr Zelensky chiding European nations for continuing to permit business with Russia, saying they are skirting sacrifices.“There are people for whom the diamonds sold in Antwerp are more important than the battle we are waging. Peace is worth much more than diamonds,” Mr. Zelensky said to the Belgian Parliament during an address by video link in late March.Keeping Diamonds ComingThe continued success of Belgium and the broad diamond sector in keeping the Russian diamond trade flowing exemplifies the sacred cows some E.U. nations refuse to sacrifice, even as their peers accept pain to punish the Kremlin.Exports of rough diamonds are very lucrative for Russia, and they flow to the Belgian port of Antwerp, a historically important diamond hub.The trade, worth 1.8 billion euros a year — about $1.75 billion — has been shielded in consecutive rounds of the bloc’s sanctions, despite being raised as a possible target soon after the Russian invasion of Ukraine in late February.The Belgian government has said that it has never asked the European Commission, the E.U. executive body that drafts the measures, to remove diamonds from any sanctions list and that if diamonds were added, it would go along.Diamonds being sorted in Mirny, Russia, at a facility operated by Alrosa, the Russian state-owned diamond company. Russian diamonds have been shielded in consecutive rounds of European sanctions.Maxim Babenko for The New York TimesTechnically speaking, that may be true. But the latest round of penalties, adopted this month, exposed the intensive interventions when a coordination error occurred among the various services in the bloc that are involved in the technical preparation of sanctions.The incident, described to The New York Times by several diplomats involved as “farcical,” shows how the lobbying works. The diplomats spoke anonymously in order to describe freely what happened.The European Commission over the course of September prepared the latest round of sanctions and left diamonds off that list.But the European External Action Service — the E.U.’s equivalent of a foreign service or state department, which works with the commission to prepare sanctions — did not get the memo that diamonds should remain exempted and included in its own draft listings Alrosa, the Russian state-owned diamonds company.Once Alrosa had been put on the draft document, removing it became difficult. Spotting the error, Poland and other hard-line pro-Ukraine countries in the bloc dragged out the negotiations over the package as much as they could on the basis that Alrosa should indeed face sanctions.In the end, the need for unanimity and speed prevailed, and Alrosa continues to export to the European Union, at least until the next round of sanctions is negotiated. In proposals for a fresh, ninth round of sanctions, presented by Poland and its allies last week, diamonds were again included, but formal talks on the new set of penalties have not yet begun.A spokesman for the European External Action Service declined to comment, saying it does not comment on internal procedures involved in preparing sanctions.The Tricastin nuclear power plant in the Drôme region of southeastern France. France is one of several E.U. countries that depend on Russian uranium to operate civil nuclear power facilities. Andrea Mantovani for The New York TimesNuclear PowerMost exemptions have not been as clear-cut as diamonds because they have involved more complex industries or services, or affected more than one country.Uranium exported from Russia for use in civil nuclear power production falls under this category. Nuclear power plants in France, Hungary, Slovakia, Finland and other countries depend on Russian civilian uranium exports.The trade is worth 200 million euros, or about $194 million, according to Greenpeace, which has been lobbying for its ban. Germany and other E.U. countries have supported the calls to ban civilian nuclear imports from Russia, making this another issue likely to come up in the next round of sanctions talks.In August, Mr. Zelensky also highlighted the persistent protection of the Russian nuclear exports to Europe just as Ukraine’s Zaporizhzhia nuclear power plant came under fire.Some supporters of keeping Russian uranium running say that France and the other countries’ ability to generate electricity by operating their nuclear power plants during an acute energy crisis is more important than the political or financial gains that could come from a ban through E.U. sanctions, at least for now.Tankers in the NightOne of the most complex and important lobbying efforts to protect a European industry from sanctions is the one mounted by Greek diplomats to allow Greek-owned tankers to transport Russian oil to non-European destinations.This has facilitated one of the Kremlin’s biggest revenue streams. More than half of the vessels transporting Russia’s oil are Greek-owned, according to information aggregated from MarineTraffic, a shipping data platform.Supporters of the Greek shipping industry say that if it pulled out of that business, others would step in to deliver Russian oil to places like India and China. Experts say lining up enough tankers to make up for a total Greek pullout would not be simple, considering the sheer size of Greek-interest fleets and their dominance in this trade.According to European diplomats involved in the negotiations, their Greek counterparts were able to exempt Greek shipping companies from the oil embargo in a tough round of talks last May and June.Since then, the E.U. has come around to a United States-led idea to keep facilitating the transport of Russian oil, in order to avert a global oil-market meltdown, but to do so at a capped price to limit Russia’s revenues.The Greeks saw an opening: They would continue to transport Russian oil, but at the capped price. The bloc offered them additional concessions, and Greece agreed that the shipping of Russian oil would be banned if the price cap was not observed.The Greek-flagged oil tanker Minerva Virgo. Greek diplomats have lobbied for Greek-owned tankers to be allowed to transport Russian oil to non-European destinations. Bjoern Kils/ReutersEven if the economic benefits of such exemptions are hard to define, from a political perspective, the continued protection of some goods and industries is creating bad blood among E.U. members.Governments that have readily taken big hits through sanctions to support Ukraine, sacrificing revenues and jobs, are embittered that their partners in the bloc continue to doggedly protect their own interests.The divisions deepen a sense of disconnect between those more hawkish pro-Ukraine E.U. nations nearer Ukraine and those farther away, although geographical proximity is far from the only determinant of countries’ attitudes toward the war.And given that the bloc is a constant negotiating arena on many issues, some warn that what goes around eventually will come around.“This may be a raw calculation of national interests, but it’s going to linger,” Mr. Kirkegaard said. “Whoever doesn’t contribute now through sacrifice, next time there’s a budget or some other debate, it’s going to come back and haunt them.” More
- in Elections
Elections Approaching, Erdogan Raises the Heat Again With Greece
Turkey’s president suggested that troops “may suddenly arrive one night” in Greece. With inflation rampant and the lira sinking, a manufactured crisis might be just the thing he needs.ISTANBUL — Last week at a closed dinner in Prague, Prime Minister Kyriakos Mitsotakis of Greece was addressing 44 European leaders when President Recep Tayyip Erdogan of Turkey interrupted him and started a shouting match.Before stalking from the room, Mr. Erdogan accused Mr. Mitsotakis of insincerity about settling disputes in the eastern Aegean and blasted the European Union for siding with its members, Greece and Cyprus, according to a European diplomat and two senior European officials who were there.While the others, flabbergasted and annoyed, finished their dinners, Mr. Erdogan fulminated at a news conference against Greece and threatened invasion. “We may suddenly arrive one night,” he said. When a reporter asked if that meant he would attack Greece, the Turkish president said, “Actually you have understood.”The outburst was only the latest from Mr. Erdogan. As he faces mounting political and economic difficulties before elections in the spring, he has been ramping up the threats against his NATO ally since the summer, using language normally left to military hawks and ultranationalists.While few diplomats or analysts are predicting war, there is a growing sense among European diplomats that a politically threatened Mr. Erdogan is an increasingly dangerous one for his neighbors — and that accidents can happen.Mr. Erdogan needs crisis to buoy his shaky standing at home after nearly 20 years in power, a diplomat specializing in Turkey said, requesting anonymity. And if he is not provided one, the diplomat said, he may create one.The rising tensions between Greece and Turkey, both NATO members, now threaten to add a difficult new dimension to Europe’s efforts to maintain its unity in the face of Russia’s war in Ukraine and its accumulating economic fallout.Mr. Erdogan met President Vladimir V. Putin of Russia in Kazakhstan on Thursday.Pool photo by Vyacheslav ProkofyevAlready, Mr. Erdogan has made himself a troublesome and unpredictable ally for his NATO partners. His economic challenges and desire to carve out a stable security sphere for Turkey in a tough neighborhood have pushed him ever closer to President Vladimir V. Putin of Russia.Mr. Erdogan has earned some shelter from open criticism by allies because of his efforts to mediate between Russia and Ukraine, especially in the deal to allow Ukrainian grain exports.But he has refused to impose sanctions on Russia and continues to get Russian gas through the TurkStream pipeline, while asking Moscow to delay payment for energy.On Thursday, Mr. Erdogan met Mr. Putin in Kazakhstan, where they discussed using Turkey as an energy hub to export more Russian gas after the pipelines to Germany under the Baltic Sea have been damaged.But it is the escalating rhetoric against Greece that is now drawing special attention.Sinan Ulgen, the director of EDAM, an Istanbul-based research institution, said that of course there was an electoral aspect to Mr. Erdogan’s actions. But there were also deep-seated problems that foster chronic instability and dangerous tensions.“Turkey and Greece have a set of unresolved bilateral disputes,” he said, “and this creates a favorable environment whenever a politician in Ankara or Athens wants to raise tensions.”The two countries nearly went to war in the 1970s over energy exploration in the Aegean, in 1995-96 over disputed claims over an uninhabited rock formation in the eastern Mediterranean, and in 2020, again over energy exploration in disputed waters. “And now we’re at it again,” Mr. Ulgen said. “And why? Because of elections in Turkey and Greece.”Mr. Mitsotakis is also in campaign mode, with elections expected next summer, damaged by a continuing scandal over spyware planted in the phones of opposition politicians and journalists. As in Turkey, nothing appeals to Greek patriotism more than a good spat with an old foe.A Turkish drill in August off Mersin, Turkey. Turkey and Greece nearly went to war in 2020 over Turkish energy exploration in disputed waters.Adem Altan/Agence France-Presse — Getty ImagesHe has sought to appear firm without escalating. Confronted at the dinner in Prague, Mr. Mitsotakis retorted that leaders should solve problems and not create new ones, that he was prepared to discuss all issues but could not stay silent while Turkey threatened the sovereignty of Greek islands.“No, Mr. Erdogan — no to bullying,” he said in a recent policy speech. He told reporters that he was open to talks with Mr. Erdogan despite the vitriol, saying he thought military conflict unlikely. “I don’t believe this will ever happen,” he said. “And if, God forbid, it happened, Turkey would receive an absolutely devastating response.”He was referring to Greek military abilities that have been significantly bolstered recently as part of expanded defense agreements with France and the United States.Mr. Mitsotakis has also taken advantage of American annoyance with Mr. Erdogan’s relations with Russia and his delay in approving NATO enlargement to Finland and Sweden to boost ties with Washington. In May, he was the first Greek prime minister to address Congress and urged it to reconsider arms sales to Turkey.He has said Greece will buy F-35s, while Turkey, denied F-35s because of its purchase of a Russian air-defense system, is still pressing to get more F-16s and modernization kits, using NATO enlargement as leverage.But Mr. Erdogan is facing considerable problems at home, making tensions with Greece an easy and traditional way to divert attention and rally support.Mr. Erdogan is presiding over a disastrous economy, with inflation running officially at 83 percent a year — but most likely higher — and the currency depreciating. Turkish gross domestic product per capita, a measure of wealth, has dropped to about $7,500 from more than $12,600 in 2013, based on Turkey’s real population, which now includes some four million Syrian refugees, according to Bilge Yilmaz, a professor at the Wharton School of the University of Pennsylvania.Mr. Erdogan is presiding over a disastrous economy, with inflation running officially at 83 percent a year.Yasin Akgul/Agence France-Presse — Getty ImagesMr. Erdogan has kept cutting interest rates against conventional economic advice. “We need to reverse monetary policy,” said Mr. Yilmaz, who is touted as a likely finance minister should Mr. Erdogan lose the election. “A strong adjustment of the economy will not be easy.”There is also growing popular resentment of the continuing cost of the refugees, who were taken in by Mr. Erdogan as a generous gesture to fellow Muslims in difficulty.Still, Mr. Erdogan is thought to have a solid 30 percent of the vote as his base, and government-controlled media dominate, with numerous opposition journalists and politicians jailed or silenced.In a report on Wednesday, the European Union criticized “democratic backsliding” and said that “in the area of democracy, the rule of law and fundamental rights, Turkey needs to reverse the negative trend as a matter of priority with addressing the weakening of effective checks and balances in the political system.”Still, at this point, analysts think Mr. Erdogan could lose his majority in Parliament and might just lose the presidential election itself.That is an analysis firmly rejected by Mr. Erdogan’s Justice and Development Party, the AKP, said Volkan Bozkir, a former diplomat and member of Parliament, who says flatly that Mr. Erdogan and his party will be re-elected.Constantinos Filis, the director of the Institute of Global Affairs at the American College of Greece, believes that Mr. Erdogan is trying to keep all options open, “casting Greece as a convenient external threat and creating a dangerous framework within which he could justify a potential move against Greece in advance.”As for Washington, he said, they are telling Mr. Erdogan: “Thank you for what you did in Ukraine, of course you haven’t imposed sanctions on Russia, but OK, you’re in a difficult position, strategically, diplomatically, economically — but don’t dare to do something in the Aegean or the Eastern Mediterranean that will bring trouble to NATO.”Migrants at the border between Turkey and Greece in March 2020. There is growing popular resentment of the continuing cost of the refugees in Turkey, who include four million Syrians.The New York TimesMore likely, Mr. Filis said, Mr. Erdogan would again send migrants toward Europe, or launch another energy exploration in disputed areas off Cyprus or Crete, which produced near clashes in 2020, or intercept a Greek ship transporting military equipment to one of the Aegean Islands.Mr. Ulgen also does not expect armed conflict but would not be surprised. “It could happen; it’s not something we can rule out anymore,” he said. “But if it happens, it will be small-scale.”Niki Kitsantonis More
- in Elections
Lessons From Liz Truss’s Handling of U.K. Inflation
The sharp policy U-turn by Liz Truss, Britain’s prime minister, reveals the perils of taking the wrong path in the fight against scalding inflation.Government leaders in the West are struggling with rising inflation, slowing growth, and anxious electorates worried about winter and high energy bills. But Liz Truss, Britain’s prime minister, is the only one who devised an economic plan that unnerved financial markets, drew the ire of global leaders and the public and undermined her political standing.On Friday, battered by savage criticism, she retreated. Ms. Truss fired her top finance official, Kwasi Kwarteng, for creating precisely the package of unfunded tax cuts, billion-dollar spending programs and deregulation that she had asked for.She reinstated a scheduled increase in corporate taxes to 25 percent from 19 percent, a rise she had previously opposed. That announcement came on top of backtracking last week on her proposal to eliminate the top 45 percent income tax on the highest earners. The prime minister, in office a little over five weeks, also promised that spending would grow less rapidly than proposed, although no specifics were offered.The drama is still playing out, and it’s unclear if the Truss government will survive.In the United States, President Biden, while waging his own political battles over gas prices and inflation, has not proposed anything like the kind of policies that Ms. Truss’s government attempted, nor have any other leaders in Europe.Still, for European governments whose economies are suffering greatly from shocks and energy price surges caused by Russia’s war in Ukraine, there are timely lessons from the debacle playing out in London.One of the strongest was delivered early on by the International Monetary Fund: Don’t undermine your own central bankers. The I.M.F., which usually reserves such scoldings for developing nations, on Thursday doubled down on its message. “Don’t prolong the pain,” Kristalina Georgieva, the managing director, admonished.How to blunt the impact of inflation on the most vulnerable without further stoking inflation is the dilemma that every government is confronting.The Bank of England in London has aggressively tried to slow the sharp rise in prices by slowing the British economy.Alberto Pezzali/Associated Press“That is the question of the hour,” said Eswar Prasad, an economist at Cornell University who was attending the annual meetings of the World Bank and I.M.F. in Washington this week.Tension between the fiscal spending policies proposed by a government and the monetary policies controlled by central banks is not unusual. At the moment, though, central bankers are engaged in delicate policy maneuvers in the fight against a level of inflation not seen in decades. With the rate in Britain nearing 10 percent, the Bank of England has moved aggressively to slow down climbing prices through a series of interest rate increases aimed at crimping consumer and business spending.Any expansion of government spending is going to interfere with that aim to some degree, but Ms. Truss’s plan was far too big and too ill defined, Mr. Prasad said.“Measures to help households hit hard by energy increases, by themselves, would not have created that much of a stir,” he said. Many other countries have proposed exactly that. And the European Union has proposed a windfall tax on energy profits to help finance those subsidies.Ms. Truss, instead of coming up with a way to pay for energy assistance, pushed to eliminate a corporate tax increase and cut income taxes for the wealthiest segment of the population. The result was a reduction in government revenue and a ballooning of Britain’s debt.“Overall, the package did not have much clarity in terms of how it would support the economy in the short run without raising inflation,” Mr. Prasad said.By contrast, Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics, cited the way governments and central banks worked in tandem when the pandemic struck in 2020 to keep economies from collapsing, issuing vast amounts of public debt.“Central banks printed every single dollar, euro and pound that governments spent” to support households and businesses because of the Covid crisis, Mr. Vistesen said. But now the circumstances have changed, and inflation is setting economies aflame.The actions of the Federal Reserve in the United States illustrate the switch central banks have made: In the harrowing early weeks of the global outbreak of the coronavirus, the Fed embarked on an extraordinary program to stimulate the economy and stabilize markets. This year, the Fed has been swiftly raising interest rates in a bid to slow growth.Both the United States and eurozone countries have somewhat more wiggle room than Britain, because the dollar and the euro are much more widely used around the world as currencies held in reserve than the British pound.Kwasi Kwarteng, Britain’s former chancellor of the Exchequer, left 11 Downing Street after Ms. Truss fired him on Friday.Kirsty Wigglesworth/Associated PressEven so, European governments can help households and businesses get through an energy crisis, Mr. Vistesen said, but they can’t embark on an open-ended spending spree.They also need to take account of what is happening in other economies. The richest countries that make up the Group of 7 are essentially part of the same “monetary and fiscal convoy,” said Will Hutton, president of the Academy of Social Sciences. By championing a Thatcher-era blend of steep tax cuts and deregulation, he said, the Truss government strayed too far from the rest of the flotilla and the economic mainstream.The adherence to 1980s-era trickle-down verities also revealed the risks of sticking with outdated policies in the face of changing circumstances, said Diane Coyle, a public policy professor at the University of Cambridge.“The situation in 1979 was very different,” Ms. Coyle said. “There were sclerotic high taxes and an overregulated economy, but not anymore.” Today, taxes in Britain are lower, and the economy is less regulated than the average member of the Organization for Economic Cooperation and Development, a club of 38 major economies.“The character of the economy has changed,” she said. “Public investment in research and skills are more important.”In that sense, what was missing from Ms. Truss’s economic plan was as important as what was included. And what Britain is lacking, said Mariana Mazzucato, an economist at University College London, is a visionary public investment program like the trillion-dollar climate and digitalization plans adopted by the European Union or the climate and infrastructure program in the United States.A rate of Inflation nearing 10 percent in Britain has affected the price of groceries and how people spend their money.Alex Ingram for The New York Times“If you don’t have a growth plan, an industrial strategy innovation policy,” Ms. Mazzucato said, “then your economy won’t expand.”Both Ms. Mazzucato and Ms. Coyle emphasized that Britain had some specific economic handicaps that predated the Truss administration, including the 2016 vote to exit the European Union, a stubborn lack of productivity, anemic business investment, and lagging research and development.Still, Ms. Coyle offered some advice that referred pointedly to Ms. Truss. “I think the main lesson is: Don’t shoot yourself in the foot.” More
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French Refineries Strike May Presage a Winter of Discontent for Europe
Bitten by inflation, workers are demanding a greater share of the surging profits of energy giants. It’s the kind of unrest leaders fear as they struggle to keep a united front against Russia.LE HAVRE, France — The northern port city of Le Havre is less than 25 miles away from two major oil refineries. But on Friday, the pumps at many gas stations were wrapped in red and white tape, the electric price signs flashing all nines. Little gasoline was to be had.Across France, a third of stations are fully or partly dry, victims of a fast-widening strike that has spread to most of the country’s major refineries, as well as some nuclear plants and railways, offering a preview of a winter of discontent as inflation and energy shortages threaten to undercut Europe’s stability and its united front against Russia for its war in Ukraine.At the very least the strike — pitting refinery workers seeking a greater share of the surging profits against the oil giants TotalEnergies and Exxon Mobil — has already emerged as the first major social crisis of Emmanuel Macron’s second term as president, as calls grow for a general strike next Tuesday.“It’s going to become a general strike. You will see,” said Julien Lemmonier, 77, a retired factory worker stepping out of the supermarket in Le Havre on a gray and rainy morning. He warned that if the port workers followed suit, “It will be over.”Striking employees of the Total refinery on Thursday.Andrea Mantovani for The New York TimesThe widening social unrest is just what European leaders fear as inflation hits its highest level in decades, driven in part by snarls in post-pandemic global supply chains, but also by the mounting impact of the tit-for-tat economic battle between Europe and Russia over its invasion of Ukraine.Economic anxiety is palpable across Europe, driving large protests in Prague, Britain’s biggest railway strike in three decades, as well as walkouts by bus drivers, call center employees and criminal defense lawyers, and causing many governments to introduce relief measures to cushion the blow and ward off still more turbulence. Airline workers in Spain and Germany went on strike recently, demanding wage increases to reflect the rising cost of living.For France the strikes have touched a long-worn nerve of the growing disparity between the wealthy few and the growing struggling classes, as well as the gnawing worry about making ends meet in the cold winter ahead.Workers at half of the country’s eight refineries are continuing to picket for higher wages in line with inflation, as well as a cut of the sky-high profits their companies made over recent months, as the price of gasoline has surged.“The money exists, and it should be distributed,” said Pascal Morel, the regional head of Confédération Générale du Travail, or CGT, France’s second-largest union, which has been leading the strikes. “Rather than laying claim to the striking workers, we should lay claim to their profits.”Pascal Morel, the regional head of Confédération Générale du Travail, one of France’s largest unions, which has been leading the strikes. Andrea Mantovani for The New York TimesSlow to notice at first, the country was rudely awoken to the strike’s effect this week, when pumps across the country ran out of fuel, forcing frustrated motorists to hunt around and then line up — sometimes for hours — at stations that were still open. Nerves quickly frayed, and reports of fistfights between enraged drivers buzzed on the news.In Le Havre, as in the rest of the country, residents revealed mixed feelings about the strikes. Some expressed solidarity with the workers, while others complained about how a small group was holding the entire country hostage. On both sides of the divide, however, many feared the strike would spread.The State of the WarA Large-Scale Strike: President Vladimir V. Putin of Russia unleashed a series of missile strikes that hit at least 10 cities across Ukraine, including Kyiv, in a broad aerial assault against civilians and critical infrastructure that drew international condemnation and calls for de-escalation.Crimean Bridge Explosion: Mr. Putin said that the strikes were retaliation for a blast that hit a key Russian bridge over the weekend. The bridge, which links the Crimean Peninsula to Russia, is a primary supply route for Russian troops fighting in the south of Ukraine.Pressure on Putin: With his strikes on civilian targets in Ukraine, Mr. Putin appears to be responding to his critics at home, momentarily quieting the clamors of hard-liners furious with the Russian military’s humiliating setbacks on the battlefield.Arming Ukraine: The Russian strikes brought new pledges from the West to send in more arms to Ukraine, especially sophisticated air-defense systems. But Kyiv also needs the Russian-style weapons that its military is trained to use, and the global supply of them is running low.“It’s going to bring France to a standstill and I assure you it doesn’t need that,” said Fatma Zekri, 54, an out-of-work accountant.On Thursday, workers echoed the call for a general strike next Tuesday originally issued by the CGT and later supported by three other large unions. And a long-planned protest by left-wing parties over the rising cost of living scheduled for Sunday threatens to become even larger.For Mr. Macron, the strike holds obvious perils, with echoes of the social unrest of the Yellow Vest movement — a widespread series of protests that started as a revolt against higher taxes on fuel. The movement may have dissipated, but its anger has not.In Le Havre, residents revealed mixed feelings about the strikes. Some expressed solidarity with the workers, while others complained about how a small group was holding the entire country hostage.Andrea Mantovani for The New York TimesThe protests paralyzed France for months in 2018 and 2019, led by lower-middle class workers who took to the streets and roundabouts, raging against a climate change tax on gas that they felt was an insulting symbol of how little the government cared about them and their sliding quality of life.The current strikes illustrated a longstanding question that continues to torment many in the country, said Bruno Cautrès, a political analyst at the Center for Political Research at Sciences Po University — “Why do I live in a country that is rich and I am struggling?”Speaking of the president, Mr. Cautrès said, “He has not managed to answer this simple question.”After winning his re-election last April, Mr. Macron promised he would shed his reputation as a top-down ruler and govern the country in a more collaborative way.“The main risk is that he will not succeed in convincing people that the second term is dedicated to dialogue, to easing tensions,” Mr. Cautrès said.But even as he faced criticism that his government had allowed the crisis to get to this point, Mr. Macron sounded defiant on Wednesday night, saying in an interview with the French television channel France 2 that it was “not up to the president of the republic to negotiate with businesses.”The Total refinery, shuttered during a strike by workers.Andrea Mantovani for The New York TimesHis government has already forced some workers back to a refinery near Le Havre and a depot near Dunkirk.“I can’t believe that for one second, our ability to heat our homes, light our homes and go to the gas pump would be put at risk by French people who say, ‘No, to protect my interests, I will compromise those of the nation,’” he said.Still, Mr. Macron is treading a very fine line. The issue of “super profits” has become a charged one in Parliament, with opposition lawmakers from both the left and right demanding companies reaping windfalls be taxed, to benefit the greater population.Over the first half of the year, TotalEnergies made $10 billion in profit and Exxon Mobil raked in $18 billion. Western oil and gas companies have generated record profits thanks to booming energy prices, which have risen because of the war in Ukraine and allowed Russia to rake in billions in revenues even as it cuts oil and gas supplies to Europe. A recent OPEC Plus deal involving Saudi Arabia and Russia to cut production is likely to further raise prices.Earlier this week, Exxon Mobil announced that it had come to an agreement with two of four unions working at its sites, “out of a desire to urgently and responsibly to put an end to the strikes.” But the wage increase was one percentage point less than CGT had demanded, and half the bonus.In its own news release, TotalEnergies said the company continued to aim for “fair compensation for the employees” and to ensure they benefited “from the exceptional results generated” by the company.On Friday, two unions at TotalEnergies announced they had reached a deal for a 7 percent wage increase and a bonus. But CGT, which has demanded a 10 percent hike, walked out of the negotiation and said it would continue the strike.To date, Mr. Macron has been loath to tax the oil giants’ windfall profits, worrying it would tarnish the country’s investment appeal, and preferring instead that companies make what he termed a “contribution.”However, last week the government introduced an amendment to its finance bill, in keeping with new European Union measures, applying a temporary tax on oil, gas and coal producers that make 20 percent more in profit on their French operations than they did during recent years.On Thursday, France’s Finance Minister Bruno Le Maire also called on TotalEnergies to raise wages for salaried workers. And he announced that 1.7 billion euros, about $1.65 billion, would be earmarked to help motorists if fuel prices continued to rise.“It is a company that is now making significant profits,” Mr. Le Maire told RTL radio station on Thursday. “Total has paid dividends, so the sharing of value in France must be fair.”The pumps at gas stations were wrapped in red and white tape, the electric price signs flashing all nines. Andrea Mantovani for The New York TimesThe tangle of pipes and towering smokestacks of the hulking Total refinery in Gonfreville-l’Orcher, just outside of Le Havre, were eerily silent on Thursday, as union members burned wood pallets, hoisted flags and voted to continue the strike.Many believed their anger captured a building sentiment in the country, where even with generous government subsidies, people are struggling financially and are increasingly anxious about the winter of energy cutbacks. Inflation in France, though lower than in the rest of Europe, has surpassed 6 percent, jacking the prices of some basic supplies like frozen meat, pasta and tissues.“This era must end — the era of hogging for some, and rationing for others,” François Ruffin told the protesters on Thursday. Mr. Ruffin, a filmmaker turned elected official with the country’s hard-left France Unbowed party, rose to prominence with his satirical documentary film about France’s richest man, Bernard Arnault, and the loss of middle-class jobs to globalization.If anything should be requisitioned, it should be the profits of huge companies, not workers, many said at the protest sites.David Guillemard, a striker who has worked at the Total refinery for 22 years, said the back-to-work order had kicked a hornet’s nest. “Instead of calming people,” he said, “this has irritated them.” More
