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Defense & Security
Brussels, Belgium – November 06 2023: new pack of economic EU sanctions against Russia, vector cartoon illustration on white

Who supports EU sanctions against Russia’s war in Ukraine? The role of the defence of European values and other socioeconomic factors

by Alessandro Indelicato , Juan Carlos Martína

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Introduction On 24 February 2022, Russia launched a full-scale invasion of Ukraine, following the military actions that began with the annexation of Crimea in 2014. The conflict is having devastating consequences, including widespread death and displacement, destruction of infrastructure, and a global energy crisis, also heightening geopolitical tensions (Kurapov et al., Citation2023). Pertiwi (Citation2024) contended that since the crisis in Eastern Ukraine and Russia’s annexation of Crimea in 2014, the European Union (EU) has adopted sanctions as the key policy response targeting Russia’s aggressive behaviour. These restrictive measures were applied by the EU in multiple rounds and packages and gradually became the cornerstone of the EU’s policy towards Russia. (p. 61) There is extant literature studying the direct consequences of the war, such as humanitarian crises, economic impacts and geopolitical instability. Numerous countries have experienced food shortages and rising prices due to disruptions in supply chains, worsened by the crisis in Ukraine and the closure of airspace (Hellegers, Citation2022). Concurrently, the war has caused an unprecedentedly volatile energy market, as many European countries were obliged to seek alternative energy sources to Russian imports, demanding more oil and natural gas from alternative suppliers (Liadze et al., Citation2022). The invasion has also fuelled inflation across the EU, not only affecting energy, which is essential in all the sectors of the economy but also other sectors like food, for example, as Ukraine is a major global grain producer (Ozili, Citation2024). The added value and main contribution of this paper is based on the use of grounded social scientific methods like the Fuzzy Hybrid TOPSIS and the Ordered Probit, to analyse the EU citizens’ support of the sanctions against Russia, providing more nuanced insights on what factors are the most important to be in favour and against the sanctions. Thus, in particular, our study contributes to filling one of the important gaps mentioned by Pertiwi (Citation2024) in the analysis of the literature on the EU’s approach to sanctions on Russia. Concretely, our study fills in part the fifth gap in the analysis of causal mechanisms that examine the sanctions, including relevant actors like the EU citizens. Thus, we first provide an in-depth analysis of European citizens’ views on EU sanctions to weaken Russia and support Ukraine. And then, we analyse the main factors that affect the EU citizens’ support of the sanctions taken by the EU against Russia and in favour of Ukraine. The study includes data from 26,461 respondents across the 27 EU Member States, collected through the 98th Eurobarometer survey (Winter 2022–2023), which examined the EU’s response to the war in Ukraine. The paper is organised as follows: Section 2 provides a brief overview of the literature review. Section 3 presents the dataset used, and the methodological approach. In Section 5, the results are presented, followed by Section 5, which offers a thorough discussion of the findings. Finally, Section 6 concludes the paper by summarising the main conclusions drawn from the study, identifying implications, limitations of the study, and potential directions for future research. Literature reviewAttitudes towards EU’s sanctions against Russia war in Ukraine Public sentiment for the EU is a complex phenomenon to study and needs to be approached from different angles, including identity, governance, security and the economy. How the public perceives the EU as a guardian of democratic values and good governance directly influences support for its policies, including sanctions on Russia. Boomgaarden et al. (Citation2011) argue that if the people believe that the EU is going to safeguard democratic principles, then they will identify sanctions as a proper means of safeguarding such principles. However, if there is a lack of trust in the EU to defend such values, there will be little support for such sanctions. The purpose of European identity is primarily to determine people’s views on the EU’s actions. Kende et al. (Citation2018) believe that European identity can have a profound impact on solidarity with common EU policies, such as sanctions. This would imply that the framing of a common European identity can become the most important factor in eliciting public consent for EU programmes, especially in the midst of geopolitical crises. Thus, public opinion on sanctions is also based on perceptions of the EU’s ability to act in the interests of citizens. According to McLean and Roblyer (Citation2016), if citizens perceive the EU as doing the best it can for its citizens, particularly in terms of economic stability and governance, they are more likely to support sanctions against Russia. However, if the EU is perceived as wasteful, or its policies are perceived as economically harmful, then the potential for support for sanctions will be low. This explains the need to ensure that EU action is consistent with shared perceptions of political effectiveness and economic benefit. The imposition of economic sanctions is one of the highest prioritised tools in the modern world, especially against threats to stability and security. The EU sanctions on Russia, especially after the annexation of Crimea and the invasion of Ukraine, have stimulated an immensely wide public discussion (Karlović et al., Citation2021). An important question is: What is the role of perceived security threats in shaping public opinion about these sanctions? It has been made known through investigation that subjective security risk strongly predicts public opinion regarding EU sanctions against Russia. Frye (Citation2019) argues that sanctions are not always supported but vary depending on how people view security threats. Public support is higher when sanctions are framed as protection against an external threat. When sanctions are perceived as a threat to national or economic security, they can generate opposition. The EU’s collective response to the Russia–Ukraine conflict also shows that public opinion on sanctions is shaped by both security interests and normative expectations of justice and self-determination (Bosse, Citation2024). This mutual influence can lead to mixed public responses, with some seeing sanctions as an ethical necessity, while others withdraw their support due to perceived economic and national security risks. The way EU sanctions are proposed and implemented also influences public opinion. According to Sjursen (Citation2015), citizens will be more supportive of sanctions if they see EU institutions as representative and transparent. Conversely, an image of bureaucratic distance or lack of public participation in decision-making can undermine trust and lead to opposition. Thus, in line with this background, we pose our first research question as follows: (1) How do European values and security threats influence the intensity of public support for EU sanctions against Russia?Socioeconomic factors in shaping attitudes towards EU sanctions Support for economic sanctions against Russia is widespread among the EU, varying according to socioeconomic status, demographic characteristics and political engagement. As Frye (Citation2017) has noted, economic prosperity is a key predictor of support for sanctions. Those who are financially ‘safe’ are more likely to support EU-imposed sanctions, as they are less directly affected by the economic burden. Previous studies have shown that those in more affluent income groups or with stable household finances are more likely to support foreign policy actions, such as sanctions, that represent broader European values, even if they are economically costly (Alexandrescu, Citation2024). This is consistent with the findings of Lepeu (Citation2025), which recognises that citizens who rate their own economic situation as ‘very good’ are far more likely to support sanctions than those facing financial hardship. On the other hand, citizens facing economic hardship are less likely to be sanction-supportive if they believe that sanctions will negatively impact inflation, increase unemployment or suppress national economic stability. Onderco (Citation2017) found that economic hardship is associated with higher scepticism towards foreign policy decisions that lack tangible personal benefits. This means that the economic price of sanctions is likely to disproportionately affect support among lower-income individuals. Generational differences also play a role in shaping public opinion on sanctions. Older individuals (over 55 years) are more supportive of EU sanctions, as they have a historical perspective on European security and are more politically engaged (Alexandrescu, Citation2024). On the other hand, younger people (15–34 years) have weaker support, possibly because they have different priorities, such as financial stability and employment, which could be considered more pressing than geopolitical concerns (Onderco, Citation2017). Alexandrescu (Citation2024) also suggests a new generational divide in attitudes towards coercive diplomacy, suggesting that efforts to build popular support for sanctions must consider young Europeans’ concerns and values about economic consequences and political transparency. Political interest is a second important predictor of support for EU sanctions. Politically knowledgeable and engaged citizens tend to be more supportive of EU foreign policy decisions, including sanctions (Alexandrescu, Citation2024). Thus, there is political ideology duality: left and centre-left voters support sanctions if they are anchored in a broader vision of upholding international law and human rights, while centre-right and populist voters are likely to be more sceptical if sanctions are perceived as infringing on national sovereignty (Onderco, Citation2017). As in the literature, the likelihood of being a strong supporter of EU sanctions depends on several socioeconomic and demographic factors, our second research question builds on the following: (2) Do socioeconomic characteristics influence the likelihood of being a strong supporter of EU sanctions against Russia?Dataset and methodology The dataset of the study is based on the Standard Eurobarometer 98.2 (EB98) survey Winter 2022–2023 which was conducted from 12 January to 6 February 2023 in 39 countries or territories. In the study, we only use the dataset from the 27 Member States of the EU, without considering the data from the other twelve additional countries included. The dataset was collected about a year after the start of the Russian invasion of Ukraine, covering the following five topic areas identified by the European Commission (Citation2024): (1) The EU’s response to the invasion of Ukraine; (2) the actions taken as a unified EU response to the invasion; (3) the consequences of the war in Ukraine; (4) the European security threat; and (5) the future EU actions in the wake of the war., and aims to analyse the solidarity of European citizens with the Ukrainian people. The sample size for each country was around 1000 respondents except for Malta with 503, making a total of 26,461 respondents. The endogenous variable of the study is obtained by applying the Fuzzy Hybrid TOPSIS approach to the items of the survey included to measure the degree of support of the respondents towards the measures taken by the EU in response to the Russian invasion of Ukraine. The following five items were included in the analysis: (1) financing the purchase and supply of military equipment to Ukraine; (2) imposing economic sanctions on the Russian government, companies and individuals; (3) providing financial support to Ukraine; (4) providing humanitarian support to the people affected by the war; and (5) welcoming into the EU people fleeing the war. The question introduction was the same for all the items: The EU has taken a series of actions as a response to Russia’s invasion of Ukraine. To what extent do you agree or disagree with each of these actions taken? The responses to the question for each item were given using a complete 5-point Likert scale, where: 1 = totally agree; 2 = tend to agree; 3 = do not know; 4 = tend to disagree; and 5 = totally disagree. The scale was reversed to enhance interpretability, ensuring that higher values are aligned with those citizens who expressed higher support for the measures taken by the EU. The analysis of the variables affecting the citizens’ support was based on the selection of 14 exogenous variables, including age, gender, political interest, perception of the situation in the country, employment personal perception, financial household perception, the labour market perception of the country, the provision of public services perception, the overall image of the EU, the perception of the threat posed by the Russian war in Ukraine to security in the EU and the country itself, the personal perception that standing against the Russian invasion of Ukraine, the EU is defending European values, and the political orientation. More information about the exogenous variables can be found in Table A1 in the appendix. The Ordered Probit model will provide interesting and nuanced results of whether some exogenous variables affect the support of the EU sanctions taken by the EU in response to the Russian invasion. For example, for each of the variables included in the analysis, it will be possible to analyse to what extent some of the categories support more or less the sanctions. Similarly, it will be possible to determine if some of the variables have a significant effect on the level of support. Methodology Opinion surveys are affected by the subjective judgments of respondents, leading to potential inaccuracy in interpreting response categories (Disegna et al., Citation2018). For instance, ‘totally agree’ for one respondent could be equivalent to simply ‘tend to agree’ for another. For this reason, Fuzzy Set Logic methods are becoming very popular in social sciences to manage the uncertainty associated with survey responses effectively (Cantillo et al., Citation2021; Indelicato & Martín, Citation2024). The study uses the Fuzzy Hybrid TOPSIS Approach to calculate the endogenous variable that measures the support (sup) of the respondents towards the sanctions taken by the EU against Russia. The method is grounded in the fuzzy set theory proposed by Zadeh (Citation1965), which was introduced for handling the inherent uncertainty and vagueness of information provided by answers to social surveys (Carlsson & Fullér, Citation2001; Disegna et al., Citation2018; Mamdani & Assilian, Citation1999). There are multiple fuzzy set representations that can be used to associate the categories of the answers given in the survey (Nguyen et al., Citation2005). In the study, we use the Triangular Fuzzy Numbers (TFNs), which are the most used fuzzy sets (Anand & Bharatraj, Citation2017; Wang, Citation2017). The final representation of the answers from the dataset is as follows: (1) totally disagree is represented by (0, 0, 30); (2) tend to disagree by (20, 30, 40); (3) do not know by (30, 50, 70); (4) tend to agree by (60, 70, 80); and (5) totally agree by (70, 100, 100). The hybrid nature of the method is based on the application of the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS), which calculates the synthetic indicator (Hwang & Yoon, Citation1981). We omit the mathematical formulation of the method for simplicity and ease of exposition. Interested readers can consult many existing papers, such as (Cantillo et al., Citation2023; Indelicato et al., Citation2023; Martín et al., Citation2020; Martín & Indelicato, Citation2023). We will use sup which provides relative support for the sanctions on Russia taken by the EU after invading Ukraine, as the dependent variable for the econometric model. The variable will be categorised into five quintiles according to the ranking of the indicator in order to use an ordered probit model. The marginal effects of the results will be used to analyse the main determinants that explain the highest support of EU citizens. In the study, we use the Daly normalisation for all the categories that act as exogenous variables in the model. Thus, it is possible to determine the marginal effects of each category with respect to the sample-weighted average. We omit the discussion of the technicalities of the model and exogenous variables normalisation. Interested readers can consult Daly et al. (Citation2016), Greene and Hensher (Citation2010), Hensher et al. (Citation2015) and Martin and Roman (Citation2021). Results Figure 1 shows the kernel density of the exogenous variable that measures the support of EU individuals for the sanctions against Russia taken by the EU for the whole sample (panel a) and for those who totally agree and totally disagree with the EU imposing the sanctions to defend European values (panel b). The results indicate that a small number of respondents do not support the sanctions imposed by the EU at all, with 170 citizens giving a score of 1 to all survey items included in the scale. Conversely, a significant portion of the population holds a more neutral position, as shown by responses falling in the range of 0.3–0.6. Additionally, a substantial number of citizens – specifically, 6430 – express their strong support for the sanctions by responding with a score of 5 to all items.  Figure 1. Support kernel density. Panel (b) of the figure clearly distinguishes between the two categories of respondents. It shows that those who strongly support the defence of European values are more in favour of the sanctions compared to those who strongly oppose them. Similar figure patterns are obtained for the categories of those who have a positive or negative image of the EU, and for those who think that the Russian invasion of Ukraine is seen as an important threat to the security of the EU. Nevertheless, this will be further discussed with the results of the ordered probit model. Table 1 shows the main drivers to support or not the sanctions taken by the EU against Russia. The table is obtained from the marginal effects obtained from the ordered probit model, which is in the fifth quintile of the support distribution, and refers to the citizen group of the strong supporters (Table A3, in the appendix). It can be seen that the main drivers to support the sanctions are totally agreeing that by standing against the Russian invasion, the EU is defending European values, having a very good or rather good image of the EU, totally agreeing that the EU security is under threat with the Russian invasion, and to have a very good financial situation in the household. All the coefficients are significant at 999 per thousand. The results of the ordered probit model, as well as the complete table of the marginal effects, can be consulted in the appendix. Table A2 shows that all the exogenous variables affect the support level except the area in which the respondent resides, so the support is transversal to whether the European lives in a rural, middle town or large town. It is also interesting to observe that all the threshold parameters of the ordered probit model result significant, i.e. the five different quintiles of the distribution can be allocated without the need to collapse some of the categories used in the estimation.  Table 1. Main drivers to be or not a strong supporter of the EU sanctions. Interestingly, the main drivers to be in the population segment of those who do not strongly support the EU sanctions are the opposite categories of supporting the sanctions: totally disagreeing or tending to disagree with the defence of European values, totally disagreeing or tending to disagree with the fact that the invasion of Ukraine is a security threat to the EU and having a very bad image of the EU. The coefficients of Table 1 have been extracted from Table A3, and need to be interpreted as follows: the coefficients are the marginal effects of the category to be or not a strong supporter of the EU sanctions. For example, the coefficient of 0.105 for individuals who totally agree that the EU is defending European values by standing against the Russian invasion of Ukraine indicates that this group has a 10.5 per cent higher likelihood of being strong supporters of EU sanctions compared to the average citizen in the overall sample. In a similar manner, the coefficient of −0.225 for the category of total disagreement indicates a 22.5 per cent lower probability of being a strong supporter. Other interesting results that can be seen in the complete marginal effects table (Table A3, in the appendix) are that the type of urbanisation where the respondent lives, namely rural village, small and mid-size town or large town, is the only variable of the twelve under analysis which does not have any significant effect on being a strong supporter of the sanctions. For the rest of the variables, there is always a category with more odds of being or not in the category of strong supporters. It is interesting to note that the younger generations (between 15 and 24 and between 25 and 34) are less likely to be in the category of strong supporters than those over 55, who are significantly more likely to be in this category. Similarly, those who have a strong political interest, have a good personal job situation, think that the economic situation of their country is rather good, are leftist or left-centre, think that the employment situation of the country is rather good, are males, or have a rather good financial situation have a higher probability of being in the category of strong supporters. Conclusions In a recent speech by Jens Stoltenberg, former Secretary General of NATO, the following assessment was made: In just a few weeks, NATO leaders will meet in Madrid. We will make important decisions. To continue to strengthen and adapt our Alliance to a new security reality and protect our people and our values. I look forward to the day when we can welcome both Finland and Sweden into our Alliance. This will make Finland and Sweden safer. NATO stronger. And the whole Euro-Atlantic area more secure. (NATO, Citation2022) Although NATO’s strategic decision affects the entire geopolitical landscape, public perceptions of EU sanctions need to be addressed through a more nuanced, evidence-based approach. Public opinion on sanctions is driven not only by security concerns but also by economic and political factors that underpin individual belief systems. To measure the determinants of support for such policies, this study applies both the fuzzy hybrid approach and the ordered probit model. The first method calculates the endogenous variable that measures the level of support of each respondent. The second method is used to find the main factors of a set of 14 exogenous variables or covariates that affect the support. Our results reveal that there are four important drivers to be a strong supporter of the sanctions taken by the EU against Russia after the invasion of Ukraine in early 2022: (1) totally agreeing that by standing against the Russian invasion of Ukraine, the EU is defending European values, (2) having a very good overall EU image, (3) totally agreeing that Russia’s invasion of Ukraine is a threat to the security of the EU, and (4) having a very good household financial situation. Other factors, such as age, gender, or political orientation, among others, are less determinant in explaining the strong support category. The dataset for the study was obtained from the 98th Eurobarometer, covering winter 2022–2023, providing a solid foundation for the objectives pursued in the study. Our results imply that, at least in the salient category of being a strong supporter of the EU sanctions, European Parliamentarians and the political parties involved should promote a triad: the defence of European values (Anghel & Jones, Citation2023), a more integrated security defence system that will permit the EU to be more independent from NATO and US (Del Sarto Citation2016; Howorth Citation2018), and a solid campaign of improving the EU image, highlighting the benefits of being in the union (Elmatzoglou, Citation2020). The European values of human rights and dignity, as well as the principles of living in liberal democracies, should not be undermined by misinformation campaigns from autocratic regimes. The invasion of Ukraine constitutes the biggest security threat in Europe since the end of the Cold War, fostering a wave of fear and real politics about the necessity of increasing the military budget. Europeans have seen more closely how the lives of human beings are worth almost nothing when their homes are bombed, and they have to leave with just the bare minimum, stopping their daily lives and becoming refugees in countries that may not welcome them with open arms. There is a need for effective communication campaigns that change the focus from generic issues such as ‘Europeanness’ fostering a common national identity or sense of belonging to a pragmatic branding strategy that achieves a power actor in the new turbulent geopolitical battlefield. Recent developments, in the light of newly elected President Donald Trump’s views on NATO and US foreign aid, have added uncertainty to the EU’s strategic calculus on sanctions. Trump’s concerns about NATO’s burden-sharing and his ambivalent stance on continued US military aid to Ukraine have set off alarm bells among EU policymakers and underscored the need for a European security policy that is less dependent on US leadership (Sorgi, Citation2025). Thus, it is the time for a more than-less European Union mentality that decreases Euroscepticism, a time to strengthen public support for the EU. This shift requires an emphasis on the tangible benefits that EU membership brings to member states, including economic stability, enhanced security, and the promotion of shared values like democracy and human rights. By fostering greater awareness and understanding of the EU’s role in addressing cross-border challenges, citizens can better appreciate the advantages of unity over division. Engaging with local communities, encouraging open dialogues, and actively involving citizens in EU decision-making processes can further bridge the gap between the EU and its citizens, reinforcing a sense of belonging and shared purpose. This study has some limitations that can be addressed in future studies. First, the dataset is a point-in-time measure of public opinion, surveyed in the winter of 2022–2023. Due to the dynamic nature of the geopolitical environment, longitudinal studies are needed to examine how public support for EU sanctions may change over time in response to political, economic and military events. Second, other external factors can also be examined to gain a better picture of how other factors could shape people’s opinions. These range from cultural equivalence with Ukraine to geographical proximity to the war zone, exposure to social media narratives, and interaction with Ukrainian refugees. The role of media frames and disinformation campaigns in determining views on EU sanctions is another area that would require more work. Third, latent variables such as societal resilience, institutional trust, geopolitical affinity, and adherence to European values could provide a better understanding of the reasons for support or opposition to EU sanctions. Such variables could also explain the differences in public opinion between EU member states and between different demographic groups. Furthermore, as previous studies on public support (Onderco et al., Citation2023) have also shown, a comparative analysis with previous surveys, for example, in 2008 (Russia-Georgia war), 2014 (annexation of Crimea and Donbas war) with the full invasion of Ukraine in 2022–2023, could also be very useful. Although not directly compared in the current study, future research would benefit from a historical analysis component to explore the continuities and shifts in public opinion during these major geopolitical events and how they change in different EU countries. This would provide a better insight into how threat perceptions, economic concerns and EU identity evolve in response to Russian aggression and EU foreign policy initiatives. Supplemental Material Supplemental data for this article can be accessed online at https://doi.org/10.1080/23745118.2025.2476484. Additional informationFunding Dr Alessandro Indelicato research is funded by the research fellowship “Catalina Ruiz,” provided by the Consejo de Economía, Conocimiento y Empleo of the Gobierno de Canarias, the Agencia Canaria De Investigación Innovación Y Sociedad De La Información (ACIISI), and Fondo Social Europeo of the EU, through the Universidad de Las Palmas de Gran Canaria (Spain). Martín, J. C., & Indelicato, A. (2025). 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T., & Walker, E. A. (2005). A first course in fuzzy logic. Chapman and Hall/CRC, Taylor & Francis Group. https://doi.org/10.1201/978142005710244. Onderco, M. (2017). Public support for coercive diplomacy: Exploring public opinion data from ten European countries. European Journal of Political Research, 56(2), 401–418. https://doi.org/10.1111/1475-6765.1218345. Onderco, M., Smetana, M. (2023). Hawks in the making? European public views on nuclear weapons post-Ukraine. Global Policy, 14(2), 305–317.46. Ozili, P. K. (2024). Global economic consequences of Russian invasion of Ukraine. In P. Pietrzak (Ed.), Dealing with regional conflicts of global importance (pp. 195–223). IGI Global.47. Pertiwi, L. A. (2024). The EU’s approach to sanctions on Russia: A critical analysis of the existing literature. Central European Journal of International and Security Studies, 18(3), 61–86. https://doi.org/10.51870/NOEX447548. Pospieszna, P., Onderco, M., & van der Veer, R. (2024). 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Diplomacy
Prime Minister Keir Starmer meets Ursula von der Leyen, President of the European Commission for a bilateral at the European Commission in Brussels, Belgium on 2 October 2024 - 1.jpg

The Art of the Deal: The Brexit reset is taking shape

by Dr. Canan Atilgan

A new chapter in the EU-UK partnership Almost ten years ago, Prime Minister David Cameron called the Brexit referendum. In June 2016, a narrow majority (51.9%) of the British population voted to leave the EU. Cameron's resignation was followed by five prime ministers who had to deal with the consequences of this historic vote. On Monday, May 19, 2025, Prime Minister Keir Starmer, together with Commission President Ursula von der Leyen and Council President Antonio Costa, finally hosted the first official EU-UK summit after Brexit to announce a new strategic partnership between the UK and the EU. A "win-win" Starmer had already declared rapprochement with the EU to be a foreign policy priority when he took office. Now he has presented concrete results: After months of preparation, the EU and the UK signed a "Joint Declaration", a "Security and Defense Partnership" and a "Declaration of Intent on a Renewed Agenda for the UK and the EU". The scope of the agreement is indeed considerable. The depth of the agreements reached is currently the subject of debate in political and economic circles. For some, the cooperation goes too far, for others the results are too superficial. For Prime Minister Starmer, the result is clear: a "win-win" that puts the UK back on the world stage. In addition to defense policy cooperation, agreements were reached in the areas of veterinary standards, fishing rights, youth mobility and energy cooperation. The fact that a breakthrough was possible at all was not a matter of course: a number of points of contention that had strained relations between London and Brussels for years had to be resolved in advance. Despite ongoing differences - for example on fishing rights, the dynamic harmonization of standards and the free movement of young people - there was consensus on both sides on the need for close cooperation on defence policy. The core of the deal: defense cooperation At the heart of the new cooperation is the UK's participation in the EU's rearmament programs and initiatives. In the face of Russian aggression and growing transatlantic insecurity, the integration of the UK's military capabilities into European security and defense structures is a strategic necessity. The agreements enshrined in the new security and defense partnership include biannual foreign and security policy dialogues between the EU High Representative and UK Foreign and Defense Ministers. In addition, the High Representative will be able to invite the UK to high-level EU meetings, including the Council. An annual security and defense dialogue will accompany and further develop the implementation of the agreement. An important motivation on the part of London is undoubtedly its participation in the 159-billion-euro SAFE initiative, with which the EU aims to promote investment in the European Defense, Technology, and Industrial Base (EDTIB). Defense companies from third countries may cover a maximum of 35 percent of the contract value - unless their home country concludes a bilateral defense agreement with the EU as well as a separate technical agreement. The UK therefore needed the deal to take the first step towards overcoming these restrictions. Negotiations on the additional technical agreement are still ongoing, but according to Commission President von der Leyen, they should be concluded in just a few weeks. In return, London will accept a "pay-to-play" regulation. In addition to participation in SAFE, the signed security partnership also includes agreements on closer cooperation to improve military mobility, as well as the possibility of British troops participating in EU missions - particularly relevant should the USA withdraw from NATO initiatives. In view of the existential challenges facing the UK and the EU internationally, the defense agreement was indeed a clear "win-win". However, its conclusion was complicated by a number of unrelated issues in which conflicts of interest between EU member states and the UK at times even appeared to put the defense agreement at risk. Agricultural and food trade: obstacle and growth opportunity Prime Minister Starmer is under internal economic pressure. The consumer confidence index is at an all-time low, while inflation rose to 3.6% in April according to ONS forecasts - the highest level for two and a half years. The government expects a trade agreement with the EU in the area of agricultural and food products to lead to a noticeable reduction in food prices in British supermarkets and an increase in exports to the continent. However, PM Starmer ruled out a return to the single market or the customs union from the outset. He also wanted to avoid the impression that his "Brexit reset" could undermine the Brexit referendum vote. A sectoral deal in the area of veterinary standards, which relates to food safety, animal health and plant health regulations, was therefore a key objective for London. Specifically, the agreement aims to reduce bureaucratic hurdles for British agricultural and fisheries exports. Experts expect an increase in exports of up to 20 %. In return, the UK agreed to dynamic alignment with relevant EU regulations and promised contribution payments to co-finance work on the corresponding standardization. However, in order to make this veterinary deal possible, agreement had to be reached on the issue of fishing rights for European fishermen in British waters. Fishing rights: a risky compromise Some EU states, led by France, had made an extension of the current regulation, which grants European fishing boats access to British waters and would have expired next year, a condition for the unhindered access of British agricultural products to the European market. The EU wanted to prevent London from permanently benefiting from market facilitation without at the same time securing access for European fishermen. In the end, a compromise was reached: in return for an indefinite easing of British food exports, the UK would extend the existing fisheries regulation by twelve years. Although there is no temporal symmetry between the market facilitation for the British and the fishing rights of the Europeans, the current fishing regulation has been extended for significantly longer than the four years originally sought by London. Youth Mobility: postponed movement One particularly controversial point was the European desire for a comprehensive "Youth Mobility Scheme". Germany in particular pushed for a regulation that would make it easier for young people to live and work in the EU or the UK. A reduction in tuition fees for EU students at British universities was also under discussion. However, given the domestic political pressure from Reform UK, it would have been extremely risky for Prime Minister Keir Starmer to initiate even a partial return to European freedom of movement. In addition, the Prime Minister had only recently made an abrupt U-turn towards a more restrictive migration policy. It can be assumed that the negotiators did not include the term "youth mobility" in the final document, partly out of consideration for the Prime Minister's sensitive domestic political situation. Instead, the vaguely formulated will to work together towards a "balanced Youth Experience Scheme" with upper limits and a time limit was recorded. The domestic debate: the spirit of Brexit lives on While the powerful representatives of the British industry welcomed the agreements and arrangements between the UK and the EU in principle and refrained from making either euphoric or critical statements, the British fishing industry came out with particularly harsh criticism. Although the fishing industry's annual turnover is comparatively small - equivalent to that of the London department store Harrods - the issue of fishing rights in the UK has taken on totemic significance since the Brexit referendum and is intricately linked to the issue of national sovereignty. The Scottish Fishermen's Federation described the deal as "a horror show" and Scotland's First Minister, John Swinney, claimed that the UK government had abandoned the fishing industry with the deal. Nevertheless, even though these stakeholders are aware that the new agreement extends the current status quo, the UK government is providing additional funding to coastal towns and fishery products will now have easier access to the European market. For the opposition, the rapprochement with the EU is still a red rag. Kemi Badenoch, leader of the Conservatives, the architects of Brexit, railed that Keir Starmer saw nothing historic about the deal. "We want to talk about the future - but this agreement takes us back to the past. That's why we call it a capitulation." The United Kingdom was in danger of becoming a mere "rule recipient". The criticism from Brexit fanatic Nigel Farage was even harsher. The Reform UK leader described the compromise as a "betrayal" and a "sell-out of British interests". Both the Tories and Reform UK announced their intention to reverse the deal, which is not binding under international law if they win the next general election. After all, Nigel Farage had made a name for himself as a Brexit campaigner and the Tories had implemented a "hard" Brexit. Under Starmer's Conservative predecessors, the UK had broken away from the EU and laid claim to forging new partnerships worldwide. The slogan "Global Britain" was coined as a deliberate contrast to the old integration into the EU but fell short of the announcements and expectations in terms of implementation. Between Brexit reset and Global Britain Instead, it is Labour Prime Minister Keir Starmer who is approaching this ambition and vision with concrete results. Since taking office, the PM has quickly finalized trade agreements that his predecessors were denied - with India, with the Trump administration and now with the EU. What others promised, he implemented. The latest agreement with the EU is his greatest foreign policy success to date. Europe and the UK share common values and security interests, and the EU remains the UK's most important trading partner. Whether the "win-win" deal will contribute to economic recovery in the short term remains to be seen. However, the domestic political urgency of tangible successes is undisputed. The door for a further deepening of cooperation has only just been opened with the agreements sealed in Lancaster House: the far-reaching "renewed agenda" will have to be filled with life in the coming months and years through further negotiations. Differences remain on key issues such as the internal market and the role of the Strasbourg Court of Justice. Although the successes of this summit mark the beginning of a new chapter, its text will not be written in itself. With the Brexit reset, Starmer is taking a calculated risk - he is betting that the path to Global Britain will lead via a "Brexit reset" of relations with the EU. Whether this approach will lead him to re-election as the first prime minister since David Cameron will depend on whether the reset also takes effect domestically.

Defense & Security
Old Tank standing in the Tigray area in the North part of Ethiopia

The prospects for another war in Tigray

by Worku Aberra

Another war appears imminent in Tigray; this time the conflict threatens to engulf the region. Eritrea appears ready to join the fighting . Despite the heavy toll of the 2020–2022 war, both the Tigray People’s Liberation Front (TPLF) and the Ethiopian government have resumed belligerent rhetoric. If fighting resumes, the underlying causes are the TPLF’s pursuit of secession, Abiy Ahmed’s authoritarian rule, and his territorial ambitions. The TPLF has pursued independence since its formation in 1975  by advocating the right to self-determination; it has promoted a narrative rooted in historical exceptionalism and the right to self-determination. That vision matured into a program of statehood during the years the TPLF controlled the Ethiopian government. Between 1991 and 2018, it used state power to lay the political, economic, and military groundwork for secession. Ethnic federalism, introduced under the rhetoric of self-rule, eroded national cohesion. A constitutional clause granted regional states the right to secede unilaterally. Ethiopian nationalism was deliberately undermined; ethnic nationalism was systematically promoted. Ethnic regions were later militarized through the creation of special forces that operated beyond constitutional limits, ostensibly for regional security. Tigray assembled the most powerful of these units—well-armed, well-trained, and well-structured, designed as a paramilitary force prepared to enforce constitutional claims to territory ). These units appear intended to serve as the armies of the independent states they envisioned. In parallel to this build-up, heavy military equipment vital to national defense was transferred to Tigray under the pretext of countering threats from Eritrea. The TPLF later used its special forces and this hardware to wage war against the Ethiopian state. Unrestrained by legal, political, or institutional checks, the TPLF exercised full control over the Ethiopian state. It used that power to extract the country’s natural resources, seize physical assets, and divert financial capital. Under the guise of implementing market reforms recommended by the IMF and World Bank, it transferred state-owned enterprises to firms under its command. The TPLF used the state’s economic apparatus and its control over the private sector to advance its long-term goal of Tigrayan independence. As the TPLF moved toward secession, Ethiopia stood primed for fragmentation, by its constitution, by its leaders, and by its institutions. When a popular revolt removed the TPLF-led government in 2018, the leadership retreated to Mekelle and intensified its campaign for independence. The TPLF escalated its confrontation with the federal government through a series of provocative actions: holding regional elections in September 2020 in defiance of federal authority, expelling federal military officers from Tigray, obstructing troop movements and logistics, and organizing large-scale military parades to project force. Each move appears calculated to provoke a military confrontation with the central government. Convinced that the moment had arrived, the TPLF launched a coordinated assault on the Northern Command on November 4, 2020, as a decisive step toward secession. After two years of devastating war, it failed to achieve its long-term objective. On November 2, 2022, it accepted a cessation of hostilities under the terms of the Pretoria Agreement. Support for secession has increased, fueled by the federal government’s conduct during the war, particularly its decision to invite the Eritrean army into Tigray (Reuters). The Ethiopian Orthodox Church, once a bastion of unity, has splintered. Tigrayan clergy formed a separate synod and severed all ties with the central hierarchy. In the diaspora, former advocates of unity champion independence. Among educated Tigrayans, disillusionment runs deep. Many interpreted the nationwide support for the federal war effort, mostly due to the TPLF’s authoritarianism, as a broader denunciation of Tigrayan identity. For this group, the war was not a political confrontation, but a genocidal campaign. That belief has hardened into a dominant narrative: that civilian deaths were not accidental byproducts of conflict, but deliberate acts of extermination. A rival project of state-building has emerged at the federal level, based on irredentism rather than ethnic autonomy. Abiy Ahmed, an authoritarian ruler backed by a narrow Oromo elite, has declared his intention to govern a unitary state stretching from the Red Sea to the Indian Ocean. He has repeatedly insisted that Ethiopia must secure a seaport, peacefully or by military force. Despite having no coastline, his government established a navy with France’s assistance; he signed a memorandum of understanding with Somaliland to build a naval base—later cancelled—and has advanced a plan for an economic union encompassing Eritrea, Djibouti, and Somalia.Federal authorities have also provided weapons to factional leaders in Puntland and Jubaland to undermine the Somali government). While economic integration offers benefits, Abiy’s strategy to annex or dominate neighbouring states risks regional instability, diplomatic estrangement, and military confrontation. A government committed to external expansion is unlikely to tolerate internal disintegration. Tigrayan secessionism and Abiy’s expansionism stand as twin causes of the impending war. The immediate triggers of renewed war have already surfaced. Abiy Ahmed can invoke a legal casus belli against Eritrea, which continues to occupy Ethiopian territory despite repeated demands from Western governments and multilateral organizations). Eritrea, in turn, could claim self-defence. The TPLF could justify a war by claiming that the federal government has failed to fully implement the Pretoria Agreement. Both sides blame each other for the collapse of the agreement and have resumed hostile rhetoric and provocative actions. The TPLF, ignoring the Pretoria Agreement, has declared that it does not require federal permission to engage with Eritrea). Its leaders have publicly affirmed sovereignty, consistent with the constitutional framework. An Eritrean official has offered explicit support for Tigrayan independence; this has introduced an unpredictable external variable into an already volatile situation). On the federal side, the government has revoked the TPLF’s legal status as a political party, eliminating what remained of the formal political channel). At the same time, Abiy launched a European tour on May 22, likely to secure diplomatic backing for a new campaign). The symmetry with the prelude to the first war is striking: escalating rhetoric, foreign lobbying, and mutual delegitimization. What unfolds is not a fresh crisis but the second act of a war poorly resolved. The TPLF has fractured under the weight of the war it helped to unleash. An internal power struggle—driven by disputes over military conduct, political legitimacy, and personal ambition—split the organization in August 2024 into two factions: one led by Debretsion Gebremichael, the chair; the other by Getachew Reda, the vice chair. Each accuses the other of betraying the people of Tigray). The TPLF fighters are also divided. A large faction supports the Debretsion group, while Getachew’s faction has secured the backing of armed groups in southern Tigray, reportedly trained by the Ethiopian government in the Afar region). These forces have pledged to defend the administrative structure he established. The likelihood of intra-Tigrayan armed conflict is high. Tensions have escalated further as Getachew has leveled serious criminal accusations against the TPLF’s military command. In interviews aired on government television on May 13 and 14, he alleged that senior generals committed war crimes, operated illegal gold mines, embezzled state funds, trafficked humans, smuggled arms, and stripped steel from public infrastructure for sale—even as the war was taking place ). The accused commanders have denied all charges and denounced him as a traitor aligned with the federal government. He further reported that the number of registered TPLF fighters DDR had been inflated and that commanders had embezzled funds intended for their salaries. He accused the same officers of plotting to assassinate him. These are not casual allegations—they come from a man who served as deputy chair of the party, member of the executive, member of its wartime command, spokesperson during the conflict, head of the Pretoria delegation, and former regional president. According to Getachew, the TPLF’s military leadership has a vested interest in restarting the war to avoid accountability. He argues that peace would expose their crimes, while renewed conflict offers protection. As evidence, he cites the leak of secret peace talks in Djibouti between the TPLF and the federal government by one of the implicated generals. The federal government, upon learning of the leak, ended the negotiations. In another case, he claims that when the federal government attempted resettlement of Tigrayans in contested areas, the TPLF commanders demanded that fighters accompany the returnees; the government refused. Getachew alleges the generals are using displaced civilians as “hostages” to obstruct reconciliation. He claims to hold documentary evidence supporting these accusations. While he describes the TPLF as a “criminal enterprise,” he occasionally softens the charge, placing blame on a few bad actors. This contradiction raises a crucial question: if an organization protects offenders and functions as a criminal network, can it still claim political legitimacy? The conflict between the TPLF and the federal government has persisted, but alliances have shifted dramatically. During the first Tigray war, a coalition of federal troops, Eritrean forces, Amhara special forces, and the Fano militia fought the TPLF. That coalition has disintegrated. In April 2023, the federal government disbanded the Amhara special forces while retaining similar units in other regions). It then launched a military campaign to disarm the Fano, provoking armed resistance across the Amhara region. The government has struggled to suppress the rebellion and has lost control of large areas. It accuses the TPLF of aiding the Fano. At the same time, relations between Ethiopia and Eritrea have unraveled. Abiy Ahmed’s declaration that Ethiopia would obtain a seaport—by negotiation or by force—has pushed the two states into hostility). In a startling reversal, the TPLF has begun to align with Eritrea, its former enemy. Reports suggest the Debretsion faction has initiated cooperation with Eritrean officials, despite Eritrea’s continued occupation of territories claimed by Tigray). Getachew alleges that senior TPLF commanders have coordinated military planning with Eritrean authorities. Gebru Asrat, the former Tigray regional president, has made similar claims). Eritrea appears prepared to re-enter the war, this time as a TPLF ally. One Eritrean official has gone further and has expressed support for Tigrayan independence, as stated earlier. But given their history of mutual hostility, unresolved border disputes, and clashing ambitions, the alliance remains fragile. It may serve tactical needs, but it is unlikely to survive strategic realities. Strategic miscalculation is a crucial risk in this war, as it was in the previous one. During the first Tigray war, both the federal government and the TPLF overestimated their military capacity and underestimated their opponent’s. The war yielded no victory. Instead, both sides accepted a cessation of hostilities after enduring political crisis, economic hardship, and human catastrophe. The result crippled both actors. Despite renewed threats, confrontational posturing, and aggressive rhetoric, neither side appears ready for war. In Tigray, the public is exhausted. People demand peace, basic services, the return of the displaced, and the restoration of infrastructure. The struggle for basic needs outweighs the desire to engage in another war. While support for independence remains high, many Tigrayans question whether the embattled TPLF can govern a region, let alone a future state. Among Tigrayans, the yearning for peace far exceeds the willingness to fight another war. The Eritrean government, although it commands a disciplined army, lacks the diplomatic support and military capabilities to confront a stronger adversary. Its economic base is fragile; its population is small, overburdened by years of forced conscription, and exhausted by endless mobilization. Eritrea’s international isolation—worsened by sanctions, strained relations with neighbors, and a dismal human rights record—undermines its capacity to secure foreign military or financial assistance. These constraints—weak economy, fragile population base, diplomatic isolation, and limited military resources—reduce Eritrea’s capacity to sustain a protracted war The Ethiopian state faces even greater problems. Armed insurgencies continue in Amhara and Oromia, the country’s two most populous regions. Federal forces have failed to suppress either movement and have lost control over extensive territory. Across the country, support for the government has collapsed. A nationwide strike by healthcare workers—triggered by surging inflation—signals broader unrest). Legitimacy has eroded; institutions have decayed; crises have multiplied. The military—commanded by officers appointed for ethnic loyalty rather than professional competence, crippled by systemic corruption, and plagued by operational incapacity—is unfit for war. These deficiencies became evident when the army suffered a series of humiliating defeats in the last war against the TPLF. External actors can influence both the likelihood and the outcome of a renewed conflict. In the previous war, the United States played a moderating role, driven by its own strategic interests in Ethiopia, the Horn, and the Red Sea. The Biden administration helped contain escalation by the Ethiopian government and dissuaded the TPLF from pursuing independence. It appointed Special Envoy Mike Hammer, whose diplomacy helped secure the Pretoria Agreement). Under President Trump, U.S. policy shifted toward disengagement. That shift may have persuaded the Ethiopian government that war carries no consequences and emboldened the TPLF to pursue secession. Regional powers also have the capacity to influence whether the war erupts and how it unfolds. Egypt, a traditional adversary of Ethiopia and locked in dispute over the Grand Ethiopian Renaissance Dam, has aligned with Eritrea and had supported the TPLF in the past. Saudi Arabia continues to back the Eritrean regime). The United Arab Emirates has supplied Ethiopia with drones and weapons). Turkey has armed Ethiopia with drones as well, but backs Somalia over Abiy’s memorandum of understanding with Somaliland, the breakaway state of Somalia, later cancelled ). Whether another war erupts will depend in part on how these regional powers calculate their interests and the extent to which they are willing to intervene to secure them. Under present conditions, neither side appears capable of waging war. The TPLF—isolated abroad, fractured within, stripped of territory, crippled by corruption, and bereft of popular support—lacks the means to mount a new campaign. The federal government, weakened by internal fragmentation, collapsing legitimacy, and mounting public dissent, cannot sustain another conflict. Rhetoric has escalated, but capacity has not. The Eritrean government commands a well-trained army but lacks the diplomatic support, economic strength, and military capacity to fight a stronger adversary. Its international isolation, small population, and limited resources leave it vulnerable. Eritreans may defend sovereignty but show little enthusiasm for another costly war. Eritrea’s shifting loyalties, Abiy Ahmed’s expansionist ambitions, the Tigrayan elite’s secessionist agenda, the TPLF’s record of miscalculation, and foreign interference have created a volatile situation. Any of these variables could reignite the conflict, dismantle either state, and destabilize the entire region. Even in the absence of strategic advantage, wars can erupt because of misjudgments, personal ambition, or elite rivalries. Peace in the Horn is no local concern; it is a global imperative essential to regional order, international security, and the prevention of another humanitarian catastrophe.

Energy & Economics
Economic crisis impact of Russian invasion of Ukraine concept. Stacked coins, graph falling down and battle tank on wooden table background copy space. War effect to world economy.

The Economic Effects of the Gaza War on Palestine and Israel

by World & New World Journal Policy Team

I. Introduction Since October 7, 2023, when the Hamas attacked Israel, the Gaza war has entered its third year. Palestinians continue to endure an unprecedented level of violence, trauma, economic hardship, and uncertainty. The war has resulted in a staggering number of casualties and widespread displacement, in addition to massive destruction of physical assets in Gaza, significant reduction of economic output, increased violence in the West Bank, and widespread collapse of basic service provision across the entire Palestinian territories.  As of May 7, 2025, according to Wikipedia and Gaza’s Ministry of Health, 55000 fatalities (53,253 Palestinians and 1,706 Israelis) and more than 110,00 injuries have been reported in Gaza. More than half of the casualties are women, children, and the elderly. An estimated 1.9 million people, approximately 90 percent of Gaza’s population, are currently internally displaced. Seventy percent of Gaza’s Road network, more than 80 per cent of commercial facilities, and close to 90 percent of housing units in Gaza have either severely damaged or have been destroyed.  Since October 7, 2023, the UN has documented over 1,500 clashes between Israeli settlers and Palestinians in the West Bank, resulting in property damage, casualties, and displacement. Over 1,600 Palestinians, half of whom are children, have been displaced due to increased settlers’ violence and access restrictions. Additionally, existing fiscal constraints and growing security concerns have disrupted service provision in the West Bank.  On the macroeconomic front, the Gaza and West Bank face a collapse, which is unmatched in recent memory. The Palestine economy has faced significant contraction, evidenced by a reduced production, sharp decline in gross domestic product (GDP), and soaring unemployment rates. On the other hand, the Gaza war has had significant negative impacts on Israel. The economic and financial costs of war consist of the direct cost of military operations as well as the indirect losses that extend over the medium and long term. One of the most direct costs of the Gaza war was the recall of about 300,000 reservists in the early days, which meant that the Israeli government would bear the cost of conscription, and the Israeli economy would bear loss of output due to their absence from the workforce.Given these situations, this paper analyzes the economic effects of the Gaza war on Palestine and Israel. II. Literature on the Effects of Wars Wars have the potential to alter the parties and “transform the future” of belligerents (Ikle 1991) and they also bring about fundamental changes to the international system (Gilpin 1981).  Scholars in Economics have provided considerable analysis of the macroeconomic effects of a conflict across spatial levels: locally, nationally, regionally, and internationally. Some studies have examined the effects of specific wars such as the Syrian civil war (Kešeljević and Spruk, 2023) or the Iraq war (Bilmes and Stiglitz 2006). For example, an analysis estimated that the Russian invasion of Ukraine had an economic cost of 1% of global GDP in 2022 (Liadze et al. 2023) Others have examined the effects of war in general. For instance, Reuven Glick and Alan Taylor (2010) examine bilateral trade relations from 1870 to 1997 and find large and persistent negative impacts of wars on trade and hence on national and global economic welfare. Similarly, Vally Koubi (2005) investigates the effects of inter- and intrastate wars on a sample of countries and finds that the combined prewar, contemporaneous, and postwar effects on economic growth are negative.  A “war ruin” school emphasized that the destruction caused by wars is accompanied by higher inflation, unproductive resource spending on the military, and war debt (Chan 1985; Russett 1970). By contrast, a “war renewal” school argued that there can be longer-term positive economic effects from war because war can lead to increased efficiency in the economy by reducing the power of rent-seeking special interests, triggering technological innovation, and advancing human capital (Organski and Kugler 1980).  III. Economic Effects of the Gaza War1. Casualties  As Table 1 shows, since the Hamas attacked Israel on October 7, 2023, 55,000 people (as of May 7, 2025, 53,253 Palestinians and 1,706 Israelis) have been killed in the Gaza war according to the Gaza Health Ministry. Scholars have estimated that 80% of Palestinians killed are civilians. A study by OHCHR (The Office of the United Nations High Commissioner for Human Rights) found that 70% of the Palestinians killed in residential buildings or similar housing were children and women.  The majority of casualties have been found in the Gaza Strip. The Gaza Health Ministry’s total casualty count is the number of deaths directly caused by the war.  The 7 October attacks of the Hamas on Israel killed 1,195 people, including 815 civilians. A further 806 Palestinians have been killed in the occupied West Bank (including East Jerusalem).  2. Economic Effects of the Gaza War on Palestine  As Figure 1-1 shows, since October 7, 2023, Palestine’s economy has significantly contracted as a result of continued warfare. As Figure 1-2 shows, economic downturn started from the fourth quarter of 2023. In 2024, Palestine's GDP contracted by 27% compared to the previous year. The decline was driven by a 27% drop in industrial output in the Gaza Strip due to the ongoing Israeli occupation and attack. Especially, economic contractions were recorded in construction (-14.5%), services (-11.0%), financial and insurance activities (-5.3%), information and communication (-3.2%). However, Palestine’s economy began to recover in the fourth quarter of 2024, although it still marked a negative growth.   Figure 1-1: Palestine economic growth rate  Figure 1-2: Palestine economic growth (quarterly) As Figure 2 shows, industrial production in Palestine significantly decreased in 2024 as war has continued between Israel and Hamas. Industrial production in Palestine has been low, averaging -7.62 percent from 2012 until 2025. However, it reached a record low of -29.77 percent in June of 2024. Then industrial production in Palestine increased to 2.1 percent in March of 2025 over the same month in the previous year.   Figure 2: Industrial production in Palestine As Figure 3 shows, inflation rate in Palestine has significantly increased in 2023 and 2024, reaching all time high of 88.93 percent in November of 2024. High inflation resulted from resource shortages as a result of continued warfare and significant production decline. And then inflation rate in Palestine dropped to 1.88 percent in March and -2.51 percent in February of 2025. Inflation rate in Palestine averaged 4.95 percent from 1998 until 2025.   Figure 3: Inflation rate in Palestine As Figure 4-1 shows, unemployment rate in Palestine significantly increased after October 7, 2023, as economy continued to shrink and industrial production fell. Unemployment rate in Palestine increased to 35.20 percent in the first quarter of 2024 from 24.1 percent in the third quarter of 2023. It then dropped to 31.1 percent in the second quarter of 2024 and 28.8 percent in the fourth quarter of 2024. Unemployment Rate in Palestine has been remarkably high, averaging 24.07 percent from 1995 until 2024, reaching an all-time high of 35.60 percent in the third quarter of 2002 and a record low of 8.80 percent in the second quarter of 2000.    Figure 4-1: Unemployment rate in Palestine As Figure 4-2 shows, youth unemployment rate in Palestine increased from 38.40 percent in the first quarter of 2023 to 45.70 percent in the first quarter of 2024 and then slightly dropped to 42.60 percent in the third quarter of 2024 and 38.6 percent in the fourth quarter of 2024. Youth unemployment rate in Palestine has been remarkably high, averaging 41.85 percent from 2009 until 2024, reaching an all-time high of 49.90 percent in the second quarter of 2018 and a record low of 32.90 percent in the first quarter of 2011.   Figure 4-2: Youth unemployment rate in Palestine As Figure 4-3 shows, full-time employment in Palestine plunged to 628000 persons in the first quarter of 2024 from 1143800 persons in the third quarter of 2023. Then it increased to 705700 persons in the fourth quarter of 2024. Full-time employment in Palestine averaged 888133 persons from 2010 until 2024, reaching an all-time high of 1143800 persons in the third quarter of 2023 and a record low of 67900 persons in the first quarter of 2010.   Figure 4-3: Full-time employment in Palestine Despite the continued warfare in Gaza, as Figure 5 shows, exports in Palestine did not significantly decrease. On the contrary, exports in Palestine increased from 148.3 USD Million in August 2023 to 164.20 USD Million in December of 2024. Exports in Palestine averaged 68.15 USD Million from 2001 until 2025, reaching an all-time high of 164.20 USD Million in December of 2024 and a record low of 15.92 USD Million in April of 2002. Exports in Palestine maintained pre-war level in 2025, recording 140.70 USD Million in January of 2025. Top exports of Palestine in 2023 were scrap iron ($68.6M), tropical fruits ($53.8M), pure olive oil ($10.9M), and building stone ($7.56M).  Figure 5: Exports in Palestine Figure 6 shows, imports in Palestine significantly dropped in 2024 as warfare continued in Gaza. Imports in Palestine decreased to 420.30 USD Million in April 2024 from 747.20 USD Million in August 2023. Imports in Palestine averaged 370.00 USD Million from 2001 until 2025, reaching an all-time high of 750.60 USD Million in November of 2022 and a record low of 82.71 USD Million in April of 2002. According to media reports, there are severe food shortages in Gaza, but there is no information about the imports of food after 2023.   Figure 6: Imports in Palestine As Figure 7 shows, since October 7, 2023, government spending in Palestine has significantly declined in 2023 and early 2024, hitting a record low of 461.20 USD million in the first quarter of 2024. And then government spending in Palestine increased to 666.70 USD million in the fourth quarter of 2024 from 616.50 USD million in the third quarter of 2024. Government spending in Palestine averaged 797.95 USD million from 2011 until 2024, reaching an all-time high of 974.90 USD million in the fourth quarter of 2016 and a record low of 461.20 USD million in the first quarter of 2024.   Figure 7: Government spending in Palestine 3. Economic Effects of the Gaza War on Israel  As Figure 8 shows, since October 7, 2023, when the Hamas attacked Israel, government spending in Israel significantly increased as Israel government conducted massive military operations against the Hamas. Government spending in Israel increased from 84100 ILS (Israel new shekel) Million in the third quarter of 2023 to 97973 ILS Million in the fourth quarter of 2023 and 97018 ILS Million in the fourth quarter of 2024. Government Spending in Israel averaged 58676 ILS Million from 1995 until 2024, reaching an all-time high of 97973 ILS Million in the fourth quarter of 2023 and a record low of 39524 ILS Million in the third quarter of 1995.   Figure 8: Government spending in Israel As Figure 9 shows, as Israel government conducted massive military operations against the Hamas, military expenditure in Israel increased to 46505.30 USD Million in 2024 from 27498.50 USD Million in 2023. Military expenditure in Israel averaged 7742.87 USD Million from 1951 until 2024, reaching an all-time high of 46505.30 USD Million in 2024 and a record low of 57.60 USD Million in 1954.   Figure 9: Military expenditure in Israel As Figure 10 shows, Israel recorded a government budget deficit of -33793.00 ILS Million in December of 2023 from 14100 ILS Million in January 2023 because government spending, in particular military expenditure significantly increased. Government budget value in Israel averaged -3405.71 ILS Million from 2005 until 2025, reaching an all-time high of 22839.00 ILS Million in January of 2025 and a record low of -33793.00 ILS Million in December of 2023.   Figure 10: Budget Balance in Israel As Figure 11-1 & 11-2 show, Israel's economic growth plunged to -4.32 percent in the fourth quarter of 2023 from 3.44% in the third quarter of 2023. Israel experienced consecutive negative growth until the third quarter of 2024 as the ongoing conflict with the Hamas had taken a significant toll on economic activity. This marked the weakest growth since 2020, when the covid-19 pandemic severely impacted the economy. However, the Gross Domestic Product (GDP) in Israel expanded 5.46 percent in the fourth quarter of 2024 over the same quarter of the previous year. GDP annual growth rate in Israel averaged 3.73 percent from 1996 until 2024, reaching an all-time high of 16.27 percent in the second quarter of 2021 and a record low of -8.37 percent in the second quarter of 2020.  Figure 11-1: Israel's economic growth rate  Figure 11-2: Israel's GDP growth (quarterly) As Figure 12 shows, industrial production in Israel decreased 7.4 percent in December of 2023 and 9.8 percent in March 2024 and then increased 15.9 percent in December 2024. Industrial production in Israel averaged 5.66 percent from 1960 until 2025, reaching an all-time high of 62.70 percent in June of 1968 and a record low of -29.20 percent in June of 1967.   Figure 12: Industrial production in Israel As Figure 13 shows, unemployment rate in Israel decreased from 4.30 percent in January 2023 to 2.80 percent in November 2023 and 2.60 percent in December 2024. This decline seems to result from the fact that Israeli government called up tens of thousands of reservists to replace conscripts and active-duty soldiers. And then unemployment rate in Israel slightly increased to 2.9% in March 2025. Unemployment rate in Israel averaged 5.89 percent from 1992 until 2025, reaching an all-time high of 11.40 percent in March of 1992 and a record low of 2.60 percent in August & December of 2024.  Figure 13: Unemployment Rate in Israel As Figure 14 shows, the number of unemployed persons in Israel decreased to 119200 in December of 2024 from 184000 in January 2023. Unemployed persons in Israel averaged 192800 from 1991 until 2025, reaching an all-time high of 305400 in September of 2003 and a record low of 119200 in December of 2024.  Figure 14: The number of unemployed persons in Israel As Figure 15 shows, after October 2023, exports in Israel fluctuated between 4470 USD Million in October 2023, 5330 USD Million in March 2024, 4320 USD Million June 2024 and 5250 USD million in December 2024. Exports in Israel averaged 1836.30 USD Million from 1959 until 2025, reaching an all-time high of 6276.70 USD Million in March of 2022 and a record low of 10.80 USD Million in July of 1959.   Figure 15: Exports in Israel As Figure 16 shows, imports in Israel fluctuated between 8090 USD Million in August 2023, 7590 USD Million in December 2023, 7010 USD Million in August 2024, and 8318.70 USD Million in March 2025. Imports in Israel averaged 2500.72 USD Million from 1959 until 2025, reaching an all-time high of 10372.30 USD Million in May of 2022 and a record low of 33.10 USD Million in November of 1959.   Figure 16: Imports in Israel As Figure 17 shows, inflation rate in Israel decreased from 5.40 percent in January 2023 to 3.70 percent in October 2023 and 2.50 percent in February 2024. It then increased to 3.60 percent in August 2024 and 3.80 percent in January 2025. Inflation rate in Israel averaged 26.75 percent from 1952 until 2025, reaching an all-time high of 486.20 percent in November of 1984 and a record low of -2.70 percent in March of 2004.   Figure 17: Inflation rate in Israel As Figure 18 shows, despite on-going warfare in Gaza, gasoline price in Israel did not rise significantly. It increased from 1.82 USD/Liter in September 2023 to 1.98 and 2.14 USD/Liter in January and May 2024, respectively and then dropped to 2.06 and 2.04 USD/Liter in August 2024 and February 2025, respectively. Gasoline prices in Israel averaged 1.78 USD/Liter from 1995 until 2025, reaching an all-time high of 2.30 USD/Liter in June of 2022 and a record low of 0.73 USD/Liter in December of 1995.   Figure 18: Gasoline price in Israel IV. Conclusion The Gaza war has had negative impacts on both Palestine and Israel, but the negative effects were much bigger in Palestine than in Israel. The number of casualties was much higher in Palestine. Especially the war brought down Palestine economy, lowering economic growth, reducing industrial productions, and increasing inflation & unemployment in Palestine. The Israeli economy has also slowed down, and budget deficit increased. However, unemployment went down, and inflation has been stable between 2 and 5 percent. Trade has maintained a pre-war level, although there have been some difficulties. References Bilmes, Linda, and Joseph E. Stiglitz. 2006. The Economic Costs of the Iraq War: An Appraisal Three Years After the Beginning of the Conflict. Cambridge, MA: National Bureau of Economic Research. Chan, Steve. 1985. “The Impact of Defense Spending on Economic Performance: A Survey of Evidence and Problems.” Orbis 29 (2): 403–434.CIA Factbook. 2024. “Ukraine.”Gilpin, Robert. 1981. War and Change in World Politics. New York: Cambridge University Press.  Glick, Rouven and Alan Taylor. 2010. “Collateral Damage: Trade Disruption and the Economic Impact of War.” The Review of Economics and Statistics 92(1): 102-127.Iklé, Fred C. 1991. Every War Must End. New York: Columbia University Press.Kešeljević, Aleksandar, and Rok Spruk. 2023. Estimating the Effects of Syrian Civil War. Empirical Economics.  Koumi, Valley. 2005. “War and Economic Performance.” Journal of Peace Research 42 (1): 67-82. Liadze, Iana, Corrado Macchiarelli, Paul Mortimer-Lee, and Patricia Sanchez Juanino. 2023. “Economic Costs of the Russia-Ukraine War.” The World Economy 46: 874–886.Organski, A. F. K., and Jacek Kugler. 1980. The War Ledger. Chicago: University of Chicago Press. Russett, Bruce. 1970. What Price Vigilance? The Burdens of National Defense. New Haven: Yale University Press.

Energy & Economics
Economical relationship between EU European union and India international trade of Europe, India, international trading, economics concept, investments, flags set on coin euros background

EU–India Free Trade Agreement and its Possible Economic and Geopolitical Ramifications.

by Krzysztof Sliwinski

Abstract The EU-India–Trade Agreement (FTA) negotiations, relaunched in 2022 after a nine-year hiatus, represent a significant step towards deepening economic and geopolitical ties between the European Union (EU) and India. The agreement, with its potential to eliminate tariffs, reduce non-tariff barriers, and enhance market access, particularly in services such as telecommunications, could substantially increase trade volume between the two entities, offering promising economic prospects. By creating a combined market of over 1.5 billion people, the FTA offers significant economic opportunities in sectors such as chemicals, machinery, and transport equipment. More importantly, it serves as a geopolitical tool aligned with the EU’s Indo-Pacific strategy, aiming to strengthen partnerships with like-minded democracies and potentially counterbalance China’s increasing influence, reassuring them about its geopolitical implications. Therefore, this study examines the potential economic and geopolitical opportunities and challenges associated with the EU-India FTA. It concludes that, perhaps unsurprisingly, much depends on the foreign and security policies of great powers such as the US, China, and Russia. Key Words: EU, India, Free Trade Area, Geopolitics Introduction Negotiations regarding the EU-India Free Trade Agreement (FTA) were initially launched in 2007. The talks were suspended in 2013 due to a gap in ambition and resumed after a nine-year pause with a formal relaunch on June 17, 2022, announced by Union Minister Piyush Goyal and European Commission Executive Vice-President Valdis Dombrovskis in Brussels.[i] This relaunch also included separate negotiations for an Investment Protection Agreement (IPA) and an Agreement on Geographical Indications (GIs), reflecting a broader agenda to enhance bilateral economic relations. The EU is India's largest trading partner, accounting for €124 billion in goods trade by 2023 (12.2% of the total Indian trade). India is the EU’s ninth-largest trading partner, representing 2.2% of the total trade in goods. Trade in services reached €59.7 billion in 2023, nearly double the 2020 level, with a significant portion being digital services, highlighting the growing economic interdependence.[ii]       *Data acquired from the European Commission at: https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/india_en Negotiation Rounds and Progress Since the relaunch, ten rounds of negotiations have been conducted, with the following timeline detailing key developments:   ·         Acquired through Grok. Prompt: What is the latest on the EU – India FTA Negotiations? At: https://x.com/i/grok?conversation=1922705918707265888 (14 May 2025) What is so important regarding FTAs? Free Trade Areas (FTAs) have become the cornerstone of international trade policy by reshaping global economic landscapes and geopolitical dynamics. These agreements aim to reduce trade barriers and foster economic cooperation among member states; however, their implications extend far beyond mere economic exchanges. Economic Consequences of Free Trade Areas One of the primary economic consequences of FTAs is the creation of new trade opportunities among the member states. By reducing tariffs and non-tariff barriers, FTAs encourage specialisation and efficiency and increase trade volumes. For instance, the African Continental Free Trade Area (AfCFTA) is expected to boost intra-African trade by creating a single market for goods and services that can unlock regional value chains and enhance economic integration.[i]  Similarly, the ASEAN-China Free Trade Area (ACFTA) has expanded trade between Indonesia and China, although the benefits may be asymmetric, with Indonesia's imports growing faster than exports.[ii] However, FTAs can also lead to trade diversion, in which member states import goods at the expense of non-member countries. This phenomenon can harm non-members by reducing market access and undermining global trade liberalisation efforts.[iii] For example, the Trans-Pacific Partnership (TPP), which never entered into force,[iv] and the Transatlantic Trade and Investment Partnership (TTIP), which shared the same fate, were criticised for potentially marginalising non-member states and creating a fragmented global trade system.[v] FTAs often attract foreign direct investment (FDI) by creating more integrated markets. For instance, the Regional Comprehensive Economic Partnership (RCEP) has stimulated FDI inflows into member states such as Japan, Australia, and New Zealand, contributing to GDP growth.[vi] Similarly, establishing Free Trade Zones (FTZs) in China has promoted financial employment and industrial upgrading, particularly in the middle and western regions, balancing regional development.[vii] However, the benefits of FTAs are not always distributed evenly. Some studies suggest that while FTAs may boost economic growth for member states, non-members may experience adverse impacts such as reduced trade volumes and deteriorating terms of trade.[viii] Geopolitical Consequences of Free Trade Areas FTAs often serve as tools for geopolitical influence, allowing powerful states to shape their global economic order. For example, the TTIP and TPP were partly designed to counterbalance China's rising economic influence and establish new trade standards.[ix] Similarly, the RCEP has reinforced China's economic leadership in Asia, while the United States–Mexico–Canada Agreement (USMCA) has allowed the United States to maintain its influence in North America.[x] For smaller countries like Vietnam, FTAs can enhance international recognition and strategic balancing between major powers, contribute to regional integration and stability, influence internal political legitimacy and power dynamics, and provide tools to manage geopolitical risks and external shocks. FTAs, especially New Generation Free Trade Agreements (NGFTAs) such as the EU-Vietnam Free Trade Agreement (EVFTA), act as economic instruments and geopolitical tools that shape Vietnam's global and regional order position.[xi] The geopolitical implications of FTAs are evident in their impact on international trade governance. The proliferation of mega-regional trade agreements has challenged the multilateral trading system under the World Trade Organization (WTO), creating a fragmented trade landscape.[xii] This shift has raised concerns about the marginalisation of developing countries and the erosion of global trade rules. FTAs can also mitigate interstate conflict by increasing war costs. For instance, the African Continental Free Trade Area (AfCFTA) catalyses regional peace, fostering economic interdependence and reducing the likelihood of conflict.[xiii] Similarly, the ASEAN-China Free Trade Area (ACFTA) has strengthened economic ties between Indonesia and China, reducing potential geopolitical tensions in the region.[xiv] FTAs are not always effective in preventing conflict. In some cases, they may exacerbate tensions by creating unequal benefits or excluding certain states. For example, the TPP and TTIP have been criticised for their exclusionary nature, which may have contributed to trade tensions between member and non-member states.[xv] FTAs often serve as building blocks for broader regional integrations. For instance, the EU began a series of FTAs and customs unions before evolving into a deeply integrated economic and political bloc. Similarly, AfCFTA is part of a broader vision for African economic integration, aiming to create a single market and customs union. The proliferation of FTAs has also raised concerns regarding the future of multilateralism. The Doha Round of WTO negotiations has stalled, and the rise of mega-regional trade agreements has further fragmented the global trade system.[xvi] This has led to calls for a more inclusive and equitable approach to trade governance that ensures that developing countries are not left behind.Free trade has profound economic and geopolitical consequences. It shapes global trade patterns, influences regional stability, and affects the distribution of wealth and power. Although FTAs offer significant economic growth and integration opportunities, they also pose inequality, exclusion, and sustainability challenges. EU – India FTA Opportunities Economic The potential Free Trade Agreement (FTA) between the EU and India presents significant economic opportunities for the EU driven by eliminating trade barriers, increased market access, and deeper economic integration. First, the services sector is a critical area where the EU can benefit significantly from an FTA with India. The EU's services exports to India could more than double, while India's services exports to the EU would increase by approximately 50%.[xvii] This growth is attributed to reduced trade barriers and the liberalisation of sectors such as telecommunications, which has been identified as a key area for reform. Arguably, half of the predicted export expansion is driven by reforms to domestic regulations, particularly in the telecommunications sector, which could further enhance the EU's competitive position in the Indian market. The FTA is expected to eliminate tariffs and reduce non-tariff barriers, creating a more level-playing field for the EU businesses in India. The FTA of EU-Indian trade could approximately double, particularly in business services.[xviii] This liberalisation would increase trade volumes and lead to structural changes in both economies, with the EU potentially gaining a competitive advantage in high-value-added sectors. The FTA would create a combined market of over 1.5 billion people, enabling the EU and India to reap the benefits of economies of scale. This integration would be particularly beneficial for manufactured goods, such as chemicals, machinery, and transport equipment, where intra-industry trade could lead to efficiency gains and cost reductions. These economies of scale could also give the EU a competitive edge in global markets, helping to stimulate economic growth and job creation.[xix] Geopolitics and security The EU–India FTA is an economic arrangement and a geopolitical tool that aligns with the EU's broader objectives in the Indo-Pacific region. The EU's geopolitical position and security interests are central to understanding the opportunities and challenges presented by the FTA. The EU's engagement with India through the FTA is deeply rooted in its Indo-Pacific strategy, formally launched in 2021. This reflects the EU's ambition to strengthen its presence in the Indo-Pacific region, an area increasingly characterised by multipolar competition, particularly between the United States and China. The EU's strategy is driven by recognising that the Indo-Pacific is the "pivotal region" of the 21st century, and its economic and security dynamics will shape global governance.[xx] While the EU's new strategy does not take a confrontational stance towards China, it reflects increased concerns about Beijing’s growing assertiveness and the implications of the US-China rivalry for Europe. The strategy advocates for a multifaceted engagement with China, encouraging cooperation and protecting EU interests and values. An FTA with India is a key component of the EU’s strategy. India's growing economic and political influence in the Indo-Pacific region makes it a critical partner for the EU. The EU views India as a like-minded democracy that shares concerns about China's assertiveness and the need for a rule-based international order. This alignment creates a unique opportunity for the EU to deepen its strategic partnership with India by leveraging economic cooperation to strengthen geopolitics.[xxi] The EU's engagement with India is part of its broader effort to strengthen security cooperation in the Indo-Pacific region. The EU and India share concerns regarding maritime security, cybersecurity, and the challenges posed by China's growing influence in the region. The FTA can serve as a foundation for deeper collaboration on security issues such as counterterrorism, non-proliferation, and disaster management.[xxii] The EU's security strategy in the Indo-Pacific also emphasises the importance of upholding a rule-based international order. An FTA with India can help promote this objective by reinforcing shared norms and standards in trade, investment, and intellectual property rights. This alignment is critical in China's increasing assertiveness and need for like-minded partners to counterbalance its influence.[xxiii] The EU's approach to an FTA is also shaped by its identity as a normative power. The EU has historically sought to promote its values, such as human rights, environmental sustainability, and social justice, through trade agreements. The FTA with India allows for advancing these values by incorporating labour rights, environmental protection, and sustainable development clauses.[xxiv] However, its geopolitical and economic realities constrain the EU’s ability to promote its normative agenda. The EU must be pragmatic and balance its value-based approach with the need to secure concessions on market access and other economic interests. This tension is evident in EU trade policy, where strategic and economic interests often precede normative objectives.[xxv] EU – India FTA Challenges Existing literature on the challenges the EU–India FTA poses is sparse. Generally, scholars admit that FTA, especially those negotiated by the EU, can face varying degrees of politicisation and contestation from civil society, as seen with TTIP and CETA.[xxvi] This finding suggests the potential for public opposition to new FTAs. In addition, the EU often pursues ambitious agreements beyond tariff reductions, including behind-the-border measures and regulatory cooperation.[xxvii] While FTAs aim to boost trade, their impact can be uneven. Some agreements have failed to entirely realise the expected benefits of trade and investment flows.[xxviii] There are also concerns that FTAs may reduce policy space for developing country partners to pursue alternative development strategies.[xxix] Economic However, several economic challenges regarding the EU-India negotiated FTA can be easily identified. To begin, the talks were stuck for nearly two decades, mainly because the EU and India had different goals. The EU wants deeper integration, including investment and competition policies, whereas India prefers a more limited agreement. This has led to repeated delays, and little progress has been made. Specifically, market access has been a point of contention, especially in sensitive sectors such as agriculture and automobiles. India imposes high tariffs on EU cars (60-100%) compared to the EU's 6.5% on Indian cars, and it protects its agricultural sector, making it difficult for EU farmers to enter the market. The EU also wanted India to open up services such as accountancy and legal work, but India resisted due to fears of competition.[xxx] The EU has strict rules, such as the Carbon Border Adjustment Mechanism (CBAM) and sustainability directives, which India sees as overregulatory and burdensome. This creates friction, as India worries these rules could act as trade barriers. There are also issues with intellectual property rights, where the EU wants stronger protection, but India resists keeping generic drugs affordable.[xxxi] Finally, the EU has invested heavily in India, around €100 billion by 2020, but India's decision to end bilateral investment treaties in 2016 and stalled talks on investment protection since 2023 creates uncertainty. There is also a trust deficit, with India fearing EU regulatory overreach and the EU worrying about compliance.[xxxii] Geopolitics and security As mentioned above, the EU's engagement with India is part of its broader strategy to deepen ties with the Indo-Pacific region. This strategy is driven by the need to counterbalance rising powers like China and enhance its global influence. The EU's Indo-Pacific Strategy and the Global Gateway Initiative reflect this ambition, emphasising the importance of strategic partnerships with like-minded actors such as India.[xxxiii] China's growing economic and military presence in the Indo-Pacific region poses a significant challenge for the EU and India. The EU has expressed concerns about China's assertive behaviour in the South China Sea and its Belt and Road Initiative (BRI), which is seen as a tool for expanding Chinese influence.[xxxiv] The EU and India share a common interest in promoting rules-based international order and countering China's increasing dominance. This alignment has been a key driver of their strategic partnership, with both sides seeking to enhance trade, technology, and security cooperation.[xxxv] The Russia-Ukraine war has further complicated the geopolitical landscape, with significant implications for EU-India relations. While the EU has strongly supported Ukraine, India has maintained a more neutral stance by prioritising its strategic partnership with Russia.[xxxvi] This divergence in approach has created tensions, particularly in terms of energy security and sanctions, which could impact FTA negotiations. The EU and India face various traditional security challenges that affect their strategic partnerships and FTA negotiations. China's military modernisation and assertive behaviour in the Indo-Pacific region have heightened security concerns for the EU and India. The EU has expressed support for India's role in maintaining regional stability, particularly in China's actions in the South China Sea and along the India-China border.[xxxvii] The EU and India are also concerned about regional instability, including Myanmar and the Korean Peninsula. These issues underscore the need for enhanced security cooperation between the two partners.[xxxviii] As for non-traditional security challenges, climate change and energy security are key areas of cooperation between the EU and India. The EU has emphasised the importance of transitioning to renewable energy sources, while India has sought to balance its energy needs with environmental concerns.[xxxix] In addition, the increasing importance of digital technologies has highlighted the need for cooperation in cybersecurity and data protection areas. The EU and India are interested in collaborating with digital infrastructure and innovation.[xl] Conclusion According to the European Parliament, “India was among the first countries to establish diplomatic relations with the European Economic Community in 1962. With the formal establishment of the EU in 1993, India signed a Cooperation Agreement in 1994, which opened the door to broader political interaction between the two. […] The relationship was upgraded to a 'Strategic Partnership' during The Hague's 5th India-EU Summit in 2004. From 1980 to 2005, EU-India trade grew from €4.4 billion to €40 billion. The EU was India's largest trading partner at the time, accounting for 22.4% of Indian exports and 20.8% of imports”.[xli] Despite these incentives, India's historical emphasis on autonomy and self-reliance can sometimes clash with the EU's multilateral approach.[xlii] Further, India's complex relationship with Russia, particularly its continued reliance on Russian defence technology, presents a challenge for closer EU-India security cooperation.[xliii] Finally, although the EU and India share concerns about China's growing influence, their strategies for managing this challenge may differ. These issues, if left unaddressed, could limit the potential for a deeper and more strategic partnership between the EU and India.[xliv] Time will typically show how much the FTA between the EU and India will facilitate closer security and geopolitical links. Much depends on great powers' foreign and security policies, such as the US, China, and Russia. Their intricate games make the geopolitical chessboard fascinating, if not difficult to predict. REFERENCES  [1] EU and India kick-start ambitious trade agenda. (2022, June 17). Directorate-General for Trade and Economics. https://policy.trade.ec.europa.eu/news/eu-and-india-kick-start-ambitious-trade-agenda-2022-06-17_en[2] EU trade relations with India. Facts, figures and latest developments. (n.d.). European Commission. https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/india_en[3] Joseph, J. E. (2024). Critical factors to consider in the trade–security nexus of the African Continental Free Trade Area: A catalyst for establishing peace. African Security Review https://doi.org/10.1080/10246029.2024.2303459[4] Kurniawan, K. (2011). The Economic, Environmental, and Geopolitical Impacts of ASEAN-China Free Trade Area (ACFTA) on Indonesia. https://www.researchgate.net/publication/349858225_THE_IMPACT_OF_ASEAN-CHINA_FREE_TRADE_AREA_ACFTA_AGREEMENT_ON_INDONESIA'S_MAJOR_PLANTATION_EXPORT_COMMODITIES[5] Pasara, M. T., & Dunga, S. H. (2023). Impact of Regional Trade Agreements on Economic Growth: An Econometric Analysis. https://doi.org/10.1007/978-3-031-30541-2_6[6] Following the U.S. withdrawal, the remaining 11 nations (without the U.S.) negotiated a revised agreement called the CPTPP, which is now in force.[7] Tellis, A. J. (2014). The geopolitics of the TTIP and the TPP. Adelphi Series. https://doi.org/10.1080/19445571.2014.1019720[8] Zhang, Q., & Wang, Q. (2024). Impact assessment of multilateral trade agreements on regional economic growth based on quantitative model optimization. Applied Mathematics and Nonlinear Sciences. https://doi.org/10.2478/amns-2024-2831[9] Chen, Y., & Wu, S. (2024). Can the Founding of Free Trade Zones Lead to Financial Employment Boom? --Based on Multi-period Double-difference model. Highlights in Business, Economics and Management. https://doi.org/10.54097/tfrq5c45[10] Zhang, Q., & Wang, Q. (2024). Impact assessment of multilateral trade agreements on regional economic growth based on quantitative model optimization. Applied Mathematics and Nonlinear Sciences. https://doi.org/10.2478/amns-2024-2831[11] Tellis, A. J. (2014). The geopolitics of the TTIP and the TPP. Adelphi Series. https://doi.org/10.1080/19445571.2014.1019720[12] Zhang, Q., & Wang, Q. (2024). Impact assessment of multilateral trade agreements on regional economic growth based on quantitative model optimization. Applied Mathematics and Nonlinear Sciences. https://doi.org/10.2478/amns-2024-2831[13] Boguszewski, M. (2022). Political economy of domestic influences of free trade agreements: A case study of the agricultural sector in Vietnam (Doctoral dissertation, The Education University of Hong Kong).[14] Palit, A. (2017). Mega-regional trade agreements and non-participating developing countries: Differential impacts, challenges and policy options: Competition and Change. https://doi.org/10.1177/1024529417729324[15] Joseph, J. E. (2024). Critical factors to consider in the trade–security nexus of the African Continental Free Trade Area: A catalyst for establishing peace. African Security Review. https://doi.org/10.1080/10246029.2024.2303459[16] Kurniawan, K. (2011). The Economic, Environmental, and Geopolitical Impacts of ASEAN-China Free Trade Area (ACFTA) on Indonesia.[17] Tellis, A. J. (2014). The geopolitics of the TTIP and the TPP. Adelphi Series. https://doi.org/10.1080/19445571.2014.1019720[18] Palit, A. (2017). Mega-regional trade agreements and non-participating developing countries: Differential impacts, challenges and policy options: Competition and Change. https://doi.org/10.1177/1024529417729324[19] Nordås, H. K. (2023). Services in the India-EU free trade agreement. https://doi.org/10.1016/j.inteco.2023.100460[20] Felbermayr, G., Mitra, D., Aichele, R., & Gröschl, J. K. (2017). Europe and India: Relaunching a Troubled Trade Relationship. Research Papers in Economics.[21] Khorana, S., Perdikis, N., & Kerr, W. A. (2015). Global economies of scale in the EU-India trade agreement: are they the key to a return to economic growth? Asia Europe Journal, 13(1), 41–55. https://doi.org/10.1007/S10308-014-0404-8[22] Carteny, A., & Tosti Di Stefano, E. (2024). The EU and the Indo-Pacific: The path towards a comprehensive strategy. In The European Union in the Asia-Pacific: Rethinking Europe’s strategies and policies (pp. 406–428). Routledge. https://doi.org/10.4324/9781003336143-25[23] Kaura, V., & Singh, P. (2022). European Union’s Indo-Pacific Strategy: Policy Implications For India. Indian Journal of Public Administration, 68(4), 542–555. https://doi.org/10.1177/00195561221098175[24] Grgić, G. (2023). Ambition, meet reality: The European Union’s actorness in the Indo-Pacific. International Political Science Review. https://doi.org/10.1177/01925121231191275[25] Pugliese, G. (2024). The European Union and an “Indo-Pacific” Alignment. Asia-Pacific Review, 31(1), 17–44. https://doi.org/10.1080/13439006.2024.2334182[26] Christou, A., & Damro, C. (2024). Frames and Issue Linkage: EU Trade Policy in the Geoeconomic Turn. Journal of Common Market Studies. https://doi.org/10.1111/jcms.13598[27] Leeg, T. (2014). Normative Power Europe? The European Union in the Negotiations on a Free Trade Agreement with India. European Foreign Affairs Review, 19(3), 335–355. https://dialnet.unirioja.es/servlet/articulo?codigo=4834907[28] De Bièvre, D., & Poletti, A. (2020). Towards Explaining Varying Degrees of Politicization of EU Trade Agreement Negotiations. Politics and Governance, 8(1), 243–253. https://doi.org/10.17645/pag.v8i1.2686[29] Lakatos, C., & Nilsson, L. (2016). The EU-Korea FTA: anticipation, trade policy uncertainty and impact. Review of World Economics, 153(1), 179–198. https://doi.org/10.1007/s10290-016-0261-1[30] Mazyrin, V. M. (2025). The EAEU – Vietnam Free Trade Agreement: Expectations and Reality. Outlines of Global Transformations: Politics, Economics, Law, 17(3), 128–148. https://doi.org/10.31249/kgt/2024.03.07[31] Hurt, S. R. (2012). The EU–SADC Economic Partnership Agreement Negotiations: ‘locking in’ the neoliberal development model in southern Africa? Third World Quarterly, 33(3), 495–510. https://doi.org/10.1080/01436597.2012.657486[32] Khorana, S. (n.d.). The FTA: a strategic call for the EU and India? European Council on Foreign Relations, India’s Foreign Policy. https://ecfr.eu/special/what_does_india_think/analysis/the_fta_a_strategic_call_for_the_eu_and_india[33] Carbon Border Adjustment Mechanism. (n.d.). European Commission, Taxation and Customs Union. https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en[34] Mishra, A. R. (2015). India cancels EU trade talks over pharma ban. Mint. https://www.livemint.com/Politics/JtJwcwhXDZz4c01D9DGk5I/Govt-cancels-trade-negotiatorlevel-meet-with-EU.html[35] Reiterer, M. (2023). The Indo-Pacific taking centre-stage for the EU’s security policy. EuZ – Zeitschrift Für Europarecht. https://doi.org/10.36862/eiz-euz022[36] Singh, M. (2021). India, Europe and Connectivity: From Shared Views on BRI to Mutual Cooperation? (pp. 133–159). Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-33-4608-6_6[37] Kugiel, P. (2021). From Destroyer to Preserver? The Evolution of India’s Position Towards the Liberal International Order and Its Significance for the EU–India Strategic Partnership (pp. 253–273). Springer, Cham. https://doi.org/10.1007/978-3-030-65044-5_12[38] Dominguez, R., & Sverdrup-Thygeson, B. (2021). The Role of External Powers in EU–Asia Security Relations (pp. 415–435). Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-69966-6_19[39] Reiterer, M. (2023). The Indo-Pacific taking centre-stage for the EU’s security policy. EuZ – Zeitschrift Für Europarecht. https://doi.org/10.36862/eiz-euz022[40] Kirchner, E. J. (2022). EU Security Alignments with the Asia-Pacific. Asian Affairs, 53(3), 542–560. https://doi.org/10.1080/03068374.2022.2082165[41] Singh, M. (2021). Multilateralism in a Changing Global Order: Prospects for India–EU Cooperation (pp. 275–290). Springer, Cham. https://doi.org/10.1007/978-3-030-65044-5_13[42] Aspengren, H. C., & Nordenstam, A. (2021). What Strategies Can Do for Strategic Partnerships: Lessons from the EU’s Strategy on India (pp. 67–85). Springer International Publishing. https://doi.org/10.1007/978-3-030-65044-5_4[43] Delivorias, A., & Mácsai, G. (2024). EU-India free trade agreement. In BRIEFING International Agreements in Progress. European Parliament. https://www.europarl.europa.eu/RegData/etudes/BRIE/2024/757588/EPRS_BRI(2024)757588_EN.pdf  [44] Sinha, Aseema, and Jon P. Dorschner. 2009. “India: Rising Power or a Mere Revolution of Rising Expectations?” Polity 42 (1): 74. https://doi.org/10.1057/pol.2009.19.[45] Chandrasekar, Anunita. 2025. “It’s Time to Upgrade the EU-India Relationship.” https://www.cer.eu/insights/its-time-upgrade-eu-india-relationship.[46] Gare, Frédéric and Reuter Manisha. “Here be dragons: India-China relations and their consequences for Europe”. 25 May 2023. https://ecfr.eu/article/here-be-dragons-india-china-relations-and-their-consequences-for-europe/

Diplomacy
Bandung, Indonesia, July 27th 2024 : A close-up of a globe focused on Southeast Asia, highlighting Indonesia, the Philippines, and surrounding regions.

NATO-Europe-US Cooperation in the Indo-Pacific: Challenging Times Ahead

by Gabriele Abbondanza

Dr. Gabriele Abbondanza is Lecturer and Marie Curie Fellow at the University of Madrid (UCM), Associate Researcher at the University of Sydney (USYD), and Associate Fellow at the Istituto Affari Internazionali (IAI).As the Indo-Pacific gradually becomes the world’s geopolitical and geoeconomic epicentre, states and regional organisations are progressively pivoting to it. Due to a combination of drivers – chiefly US pressure, economic opportunities, strategic interests and politico-normative priorities – European and Indo-Pacific actors have increased cooperation with Washington and NATO in the region. However, the second Trump administration looks considerably less aligned with the conventional pillars of US foreign policy. In light of the unfolding fracture between the US and its European allies over Ukraine, what lies ahead for NATO-Europe-US cooperation in the Indo-Pacific? [1] The priorities of NATO’s Indo-Pacific partners The so-called Indo-Pacific Four (Australia, Japan, South Korea and New Zealand – IP4) are NATO’s regional partners as well as formal US allies, each of them with specific priorities and concerns. Australia is possibly the US’s most unwavering ally in the Indo-Pacific. Canberra has second-tier yet noticeable military capabilities, a large military expenditure and moderate expeditionary experience.[2] The country has cooperated with NATO in the Middle East and the Indian Ocean, and is a NATO “Enhanced Opportunities Partner”.[3] Consequently, greater Australia-NATO cooperation in the Indo-Pacific is foreseeable, although this would require US approval and would be subject to President Trump’s transactional approach. Japan is another steadfast Indo-Pacific player, being the country in which the modern iteration of the “Indo-Pacific” as a strategic concept originated. Tokyo is acutely threat-aware – its exclusive economic zones border both China’s and Russia’s – and is entirely aligned with Washington. Despite the country’s constitutional and budgetary limitations, its military capabilities are very significant, although their deployments are traditionally minimal. Japan has mostly supported NATO via financial means, yet the latest tailored partnership shows much scope for future cooperation. As with Australia, any major NATO-oriented development is subordinated to US approval. South Korea is a more recent component of the Indo-Pacific equation, chiefly due to its vast security-trade divide visà-vis the US (a treaty ally with around 30,000 troops stationed in the country) and China (whose bilateral trade is worth over 300 billion dollars). Even so, the country is now more explicitly aligned with the US, and although its contribution to NATO activities is less prominent than Australia’s, Seoul’s position as a major defence player could stimulate stronger cooperation with the Alliance in the region. Once again, a continuing US commitment would be a prerequisite in this case too. Lastly, New Zealand, arguably the “odd man out” among the IP4 due to its low threat perception, its focus on non-traditional security, the nuclear-free policy in its waters, a consequently “milder” relationship with the US, and its lower material capabilities. Still, Wellington has recently performed passing exercises (PASSEXs),[4] it has previously supported NATO in the Balkans, Afghanistan and the Indian Ocean, and currently focuses on technology and military capacitybuilding. Hence, more cooperation in these specific areas could be envisioned, given their “low-security” perimeter. In short, the IP4 displays varying degrees of Indo-Pacific cooperation with NATO. While there is a general convergence on greater involvement, stronger cooperation traditionally requires US consent, which is a less straightforward condition compared to the past. Europe at a crossroads Europe’s interaction with the IndoPacific is gaining momentum, despite being relatively recent. The spillover effects of Indo-Pacific security issues have prompted a widespread recognition of the region’s significance, including the “big four” (France, the UK, Germany and Italy) with their broad alignment to the US, large material capabilities (and blue-water navies) and expeditionary experience.[5] This development holds much promise for Europe-NATO convergence in the region, also considering their substantial cooperation in the Indian Ocean and the Mediterranean. France spearheaded the European approach to the Indo-Pacific, on account of its status of “resident power” (with overseas territories, population and military bases in the region), through an effective combination of hard and soft power. The UK, the only other resident power, has systematically engaged with the region in more recent times, following a more traditional (USled) balancing strategy. Germany and the Netherlands, two major trading nations, tend to interact with the IndoPacific in a more “neutral” way, with Germany trying to limit its excessive reliance on China. Italy represents a particular case, as its economic, normative and security engagement (including major deployments and naval diplomacy) in the region is both rooted and substantial (the country’s “Enlarged Mediterranean” sphere of interest overlaps with the western Indo-Pacific), although it does not have a formal regional strategy (yet).[6] The EU, too, has openly recognised the necessity of an Indo-Pacific pivot and is pursuing it with its own policy tools.[7] Lastly, other European countries – virtually all NATO members – are gradually refocusing on this region. However, the widening fracture with Europe’s greatest ally – the US – marks a major shift in transatlantic relations. While this may not be a permanent turn in US foreign policy, Washington’s instability is prompting Europe to do more, to do better and to do it rapidly. On the one hand, the current US posture is already spurring a greater European role in its immediate neighbourhood, which undoubtedly remains the main priority area. On the other, given that Europe’s interests are now inextricably intertwined with the Indo-Pacific, a stronger European activism in this region is altogether possible, mainly due to economic, strategic and political interests, in addition to renewed US burden-sharing pressures. As more intense rivalry with China is unlikely due to well-known issues concerning political and material resources, greater cooperation with Europe’s many IndoPacific partners – including the NATO IP4[8] – may well represent a realistic step forward towards further developing European countries’ role in the region. To achieve this, Europe needs a more realistic (that is, higher) threat awareness, greater defence spending, more integrated defence systems[9] and, arguably, a European security-oriented minilateral which gathers a “coalition of the willing” aiming to protect Europe and its partners. This can take the form of a “European pillar” within NATO and/or a European defence union, among other options. Although these are remarkably ambitious goals, challenging times warrant more decisive actions. Shockwaves from Washington, and how to navigate them In the Euro-Atlantic area, Washington is the informal though undisputed leader within NATO; in the Indo-Pacific, it is at the helm of a ‘hub and spokes system’ of alliances and partnerships. This latticework of security architectures has guaranteed stability for US allies – and US primacy – for around 80 years.[10] Today, this unprecedented collective security endeavour faces not only external challenges – chiefly Russian and Chinese revisionism – but also internal ones due to Trump’s destabilising policies. The latter are creating divisions among NATO and Indo-Pacific allies, preoccupations among Indo-Pacific partners (Taiwan above all) and, conversely, greater confidence among systemic rivals. While Washington’s sudden unreliability in supporting Ukraine cannot be fully compared to the Taiwan case – chiefly due to the US grand strategy’s emphasis on the IndoPacific – the Trump administration’s recent foreign policy demands higher cooperation between NATO’s members and global partners. Stronger support for maritime security, interoperability, reciprocal access agreements and cooperation on non-traditional security issues are necessary. Nevertheless, this shouldn’t necessarily take place with NATO’s official aegis, given the Indo-Pacific’s traditional wariness of security-based initiatives, hard power politics and confrontational approaches more in general, which has led to many states adopting “hedging postures” over the years. Amidst the volatile 2020s, two final implications stand out. First, the IndoPacific’s sheer importance can no longer be ignored. While other regions acknowledged it long ago, Europe is making up for the time lost, although it still lacks a unified approach. Second, as the US adds to global uncertainties rather than addressing them, allies and partners must assume greater international roles while hoping that cooperation eventually resumes. This should prompt greater EuropeIndo-Pacific-NATO cooperation in light of growing economic, political, and security interdependence.  Some recent developments – the Draghi and Letta reports for the EU, the European Commission’s response to them, NATO’s resilience amid this uncertainty – are promising, though only time will tell if they will produce the foreign policy shifts that are required to adapt to a more challenging 21st century. NOTES & REFERENCES [1] This op-ed draws on the author’s contribution to a recent high-level roundtable organised by the NATO Defense College Foundation. See “A Roma esperti a confronto sul futuro ruolo della Nato nell’Indo-Pacifico”, in Agenzia Nova, 4 March 2025, https://www.agenzianova.com/news/?p=395219.  [2] Elcano Royal Institute, Elcano Global Presence Index 2023: Australia,https://www.globalpresence.realinstitutoelcano.org/en/countrySheetPage?countries=36&years=2023. [3] NATO, Relations with Partners in the IndoPacific Region, 24 October 2024, https://www.nato.int/cps/el/natohq/topics_183254.htm. [4] They entail the passage (without military exercises) through international or territorial waters as granted by the UN Convention on the Law of the Sea.[5] Gabriele Abbondanza and Thomas Wilkins, “Europe in the Indo-Pacific: Economic, Security, and Normative Engagement”, in International Political Science Review, Vol. 45, No. 5 (November 2024), p. 640-646, https:// doi.org/10.1177/01925121231202694; Elcano Royal Institute, Elcano Global Presence Index 2023, https://www.globalpresence. realinstitutoelcano.org/en. [6] Gabriele Abbondanza, “Italy’s Quiet Pivot to the Indo-Pacific: Towards an Italian Indo-Pacific Strategy”, in International Political Science Review, Vol. 45, No. 5 (November 2024), p. 669- 679, https://doi.org/10.1177/01925121231190093. [7] Gorana Grgić, “Ambition, Meet Reality: The European Union’s Actorness in the Indo-Pacific”, in International Political Science Review, Vol. 45, No. 5 (November 2024), p. 680-689, https://doi.org/10.1177/01925121231191275. [8] Giulio Pugliese, “How to Facilitate NATOIP4 Defense Industrial Cooperation: The Case of Italy and Japan”, in Liselotte Odgaard (ed.), Moving the NATO-IP4 Partnership from Dialogue to Cooperation Maritime Security and Next-Generation Technologies, Washington, Hudson Institute, March 2025, p. 32-35, https:// www.hudson.org/node/49515. [9]  Gaia Ravazzolo and Alessandro Marrone, “EU Defence Industrial Initiatives: A Quantum Leap Is Needed”, in IAI Commentaries, No. 24|79 (December 2024),https://www.iai.it/en/node/19309. [10] Thomas Wilkins, “A Hub-and-Spokes ‘Plus’ Model of US Alliances in the Indo-Pacific: Towards a New ‘Networked’ Design”, in Elena Atanassova-Cornelis Yoichiro Sato and Tom Sauer (eds), Alliances in Asia and Europe. The Evolving Indo-Pacific Strategic Context and Inter-Regional Alignments, London, Routledge, 2023, p. 8-31. 

Energy & Economics
Comparison of Drought and flood metaphor for climate change and extreme weather.

Global Climate Agreements: Successes and Failures

by Clara Fong , Lindsay Maizland

International efforts, such as the Paris Agreement, aim to reduce greenhouse gas emissions. But experts say countries aren’t doing enough to limit dangerous global warming. Summary Countries have debated how to combat climate change since the early 1990s. These negotiations have produced several important accords, including the Kyoto Protocol and the Paris Agreement. Governments generally agree on the science behind climate change but have diverged on who is most responsible, how to track emissions-reduction goals, and whether to compensate harder-hit countries. The findings of the first global stocktake, discussed at the 2023 UN Climate Summit in Dubai, United Arab Emirates (UAE), concluded that governments need to do more to prevent the global average temperature from rising by 1.5°C. Introduction Over the last several decades, governments have collectively pledged to slow global warming. But despite intensified diplomacy, the world is already facing the consequences of climate change, and they are expected to get worse. Through the Kyoto Protocol and Paris Agreement, countries agreed to reduce greenhouse gas emissions, but the amount of carbon dioxide in the atmosphere keeps rising, heating the Earth at an alarming rate. Scientists warn that if this warming continues unabated, it could bring environmental catastrophe to much of the world, including staggering sea-level rise, devastating wildfires, record-breaking droughts and floods, and widespread species loss. Since negotiating the Paris accord in 2015, many of the 195 countries that are party to the agreement have strengthened their climate commitments—to include pledges on curbing emissions and supporting countries in adapting to the effects of extreme weather—during the annual UN climate conferences known as the Conference of the Parties (COP). While experts note that clear progress has been made towards the clean energy transition, cutting current emissions has proven challenging for the world’s top emitters. The United States, for instance, could be poised to ramp up fossil fuel production linked to global warming under the Donald Trump administration, which has previously minimized the effects of climate change and has withdrawn twice from the Paris Agreement. What are the most important international agreements on climate change? Montreal Protocol, 1987. Though not intended to tackle climate change, the Montreal Protocol [PDF] was a historic environmental accord that became a model for future diplomacy on the issue. Every country in the world eventually ratified the treaty, which required them to stop producing substances that damage the ozone layer, such as chlorofluorocarbons (CFCs). The protocol has succeeded in eliminating nearly 99 percent of these ozone-depleting substances. In 2016, parties agreed via the Kigali Amendment to also reduce their production of hydrofluorocarbons (HFCs), powerful greenhouse gases that contribute to climate change. UN Framework Convention on Climate Change (UNFCCC), 1992. Ratified by 197 countries, including the United States, the landmark accord [PDF] was the first global treaty to explicitly address climate change. It established an annual forum, known as the Conference of the Parties, or COP, for international discussions aimed at stabilizing the concentration of greenhouse gases in the atmosphere. These meetings produced the Kyoto Protocol and the Paris Agreement. Kyoto Protocol, 2005. The Kyoto Protocol [PDF], adopted in 1997 and entered into force in 2005, was the first legally binding climate treaty. It required developed countries to reduce emissions by an average of 5 percent below 1990 levels, and established a system to monitor countries’ progress. But the treaty did not compel developing countries, including major carbon emitters China and India, to take action. The United States signed the agreement in 1998 but never ratified it and later withdrew its signature.  Paris Agreement, 2015. The most significant global climate agreement to date, the Paris Agreement requires all countries to set emissions-reduction pledges. Governments set targets, known as nationally determined contributions (NDCs), with the goals of preventing the global average temperature from rising 2°C (3.6°F) above preindustrial levels and pursuing efforts to keep it below 1.5°C (2.7°F). It also aims to reach global net-zero emissions, where the amount of greenhouse gases emitted equals the amount removed from the atmosphere, in the second half of the century. (This is also known as being climate neutral or carbon neutral.) The United States, the world’s second-largest emitter, is the only country to withdraw from the agreement, a move President Donald Trump made during his first administration in 2017. While former President Joe Biden reentered the agreement during his first day in office, Trump again withdrew the United States on the first day of his second administration in 2025. Three other countries have not formally approved the agreement: Iran, Libya, and Yemen. Is there a consensus on the science of climate change? Yes, there is a broad consensus among the scientific community, though some deny that climate change is a problem, including politicians in the United States. When negotiating teams meet for international climate talks, there is “less skepticism about the science and more disagreement about how to set priorities,” says David Victor, an international relations professor at the University of California, San Diego. The basic science is that:• the Earth’s average temperature is rising at an unprecedented rate; • human activities, namely the use of fossil fuels—coal, oil, and natural gas—are the primary drivers of this rapid warming and climate change; and,• continued warming is expected to have harmful effects worldwide. Data taken from ice cores shows that the Earth’s average temperature is rising more now than it has in eight hundred thousand years. Scientists say this is largely a result of human activities over the last 150 years, such as burning fossil fuels and deforestation. These activities have dramatically increased the amount of heat-trapping greenhouse gases, primarily carbon dioxide, in the atmosphere, causing the planet to warm. The Intergovernmental Panel on Climate Change (IPCC), a UN body established in 1988, regularly assesses the latest climate science and produces consensus-based reports for countries. Why are countries aiming to keep global temperature rise below 1.5°C? Scientists have warned for years of catastrophic environmental consequences if global temperature continues to rise at the current pace. The Earth’s average temperature has already increased approximately 1.1°C above preindustrial levels, according to a 2023 assessment by the IPCC. The report, drafted by more than two hundred scientists from over sixty countries, predicts that the world will reach or exceed 1.5°C of warming within the next two decades even if nations drastically cut emissions immediately. (Several estimates report that global warming already surpassed that threshold in 2024.) An earlier, more comprehensive IPCC report summarized the severe effects expected to occur when the global temperature warms by 1.5°C: Heat waves. Many regions will suffer more hot days, with about 14 percent of people worldwide being exposed to periods of severe heat at least once every five years. Droughts and floods. Regions will be more susceptible to droughts and floods, making farming more difficult, lowering crop yields, and causing food shortages.  Rising seas. Tens of millions of people live in coastal regions that will be submerged in the coming decades. Small island nations are particularly vulnerable. Ocean changes. Up to 90 percent of coral reefs will be wiped out, and oceans will become more acidic. The world’s fisheries will become far less productive. Arctic ice thaws. At least once a century, the Arctic will experience a summer with no sea ice, which has not happened in at least two thousand years. Forty percent of the Arctic’s permafrost will thaw by the end of the century.  Species loss. More insects, plants, and vertebrates will be at risk of extinction.  The consequences will be far worse if the 2°C threshold is reached, scientists say. “We’re headed toward disaster if we can’t get our warming in check and we need to do this very quickly,” says Alice C. Hill, CFR senior fellow for energy and the environment. Which countries are responsible for climate change? The answer depends on who you ask and how you measure emissions. Ever since the first climate talks in the 1990s, officials have debated which countries—developed or developing—are more to blame for climate change and should therefore curb their emissions. Developing countries argue that developed countries have emitted more greenhouse gases over time. They say these developed countries should now carry more of the burden because they were able to grow their economies without restraint. Indeed, the United States has emitted the most of all time, followed by the European Union (EU).   However, China and India are now among the world’s top annual emitters, along with the United States. Developed countries have argued that those countries must do more now to address climate change.   In the context of this debate, major climate agreements have evolved in how they pursue emissions reductions. The Kyoto Protocol required only developed countries to reduce emissions, while the Paris Agreement recognized that climate change is a shared problem and called on all countries to set emissions targets. What progress have countries made since the Paris Agreement? Every five years, countries are supposed to assess their progress toward implementing the agreement through a process known as the global stocktake. The first of these reports, released in September 2023, warned governments that “the world is not on track to meet the long-term goals of the Paris Agreement.” That said, countries have made some breakthroughs during the annual UN climate summits, such as the landmark commitment to establish the Loss and Damage Fund at COP27 in Sharm el-Sheikh, Egypt. The fund aims to address the inequality of climate change by providing financial assistance to poorer countries, which are often least responsible for global emissions yet most vulnerable to climate disasters. At COP28, countries decided that the fund will be initially housed at the World Bank, with several wealthy countries, such as the United States, Japan, the United Kingdom, and EU members, initially pledging around $430 million combined. At COP29, developed countries committed to triple their finance commitments to developing countries, totalling $300 billion annually by 2035. Recently, there have been global efforts to cut methane emissions, which account for more than half of human-made warming today because of their higher potency and heat trapping ability within the first few decades of release. The United States and EU introduced a Global Methane Pledge at COP26, which aims to slash 30 percent of methane emissions levels between 2020 and 2030. At COP28, oil companies announced they would cut their methane emissions from wells and drilling by more than 80 percent by the end of the decade. However, pledges to phase out fossil fuels were not renewed the following year at COP29. Are the commitments made under the Paris Agreement enough? Most experts say that countries’ pledges are not ambitious enough and will not be enacted quickly enough to limit global temperature rise to 1.5°C. The policies of Paris signatories as of late 2022 could result in a 2.7°C (4.9°F) rise by 2100, according to the Climate Action Tracker compiled by Germany-based nonprofits Climate Analytics and the NewClimate Institute. “The Paris Agreement is not enough. Even at the time of negotiation, it was recognized as not being enough,” says CFR’s Hill. “It was only a first step, and the expectation was that as time went on, countries would return with greater ambition to cut their emissions.” Since 2015, dozens of countries—including the top emitters—have submitted stronger pledges. For example, President Biden announced in 2021 that the United States will aim to cut emissions by 50 to 52 percent compared to 2005 levels by 2030, doubling former President Barack Obama’s commitment. The following year, the U.S. Congress approved legislation that could get the country close to reaching that goal. Meanwhile, the EU pledged to reduce emissions by at least 55 percent compared to 1990 levels by 2030, and China said it aims to reach peak emissions before 2030. But the world’s average temperature will still rise more than 2°C (3.6°F) by 2100 even if countries fully implement their pledges for 2030 and beyond. If the more than one hundred countries that have set or are considering net-zero targets follow through, warming could be limited to 1.8˚C (3.2°F), according to the Climate Action Tracker.   What are the alternatives to the Paris Agreement? Some experts foresee the most meaningful climate action happening in other forums. Yale University economist William Nordhaus says that purely voluntary international accords like the Paris Agreement promote free-riding and are destined to fail. The best way to cut global emissions, he says, would be to have governments negotiate a universal carbon price rather than focus on country emissions limits. Others propose new agreements [PDF] that apply to specific emissions or sectors to complement the Paris Agreement.  In recent years, climate diplomacy has occurred increasingly through minilateral groupings. The Group of Twenty (G20), representing countries that are responsible for 80 percent of the world’s greenhouse gas pollution, has pledged to stop financing new coal-fired power plants abroad and agreed to triple renewable energy capacity by the end of this decade. However, G20 governments have thus far failed to set a deadline to phase out fossil fuels. In 2022, countries in the International Civil Aviation Organization set a goal of achieving net-zero emissions for commercial aviation by 2050. Meanwhile, cities around the world have made their own pledges. In the United States, more than six hundred local governments [PDF] have detailed climate action plans that include emissions-reduction targets. Industry is also a large source of carbon pollution, and many firms have said they will try to reduce their emissions or become carbon neutral or carbon negative, meaning they would remove more carbon from the atmosphere than they release. The Science Based Targets initiative, a UK-based company considered the “gold standard” in validating corporate net-zero plans, says it has certified the plans of  over three thousand firms, and aims to more than triple this total by 2025. Still, analysts say that many challenges remain, including questions over the accounting methods and a lack of transparency in supply chains. Recommended Resources This timeline tracks UN climate talks since 1992. CFR Education’s latest resources explain everything to know about climate change.  The Climate Action Tracker assesses countries’ updated NDCs under the Paris Agreement. CFR Senior Fellow Varun Sivaram discusses how the 2025 U.S. wildfires demonstrate the need to rethink climate diplomacy and adopt a pragmatic response to falling short of global climate goals. In this series on climate change and instability by the Center for Preventive Action, CFR Senior Fellow Michelle Gavin looks at the consequences for the Horn of Africa and the National Defense University’s Paul J. Angelo for Central America. This backgrounder by Clara Fong unpacks the global push for climate financing.

Diplomacy
Delegates in 2025 China-CELAC Forum

The beginning of a new phase in Latin America-China relation

by Daniel Morales Ruvalcaba

The Fourth Ministerial Meeting of the China-CELAC Forum does not mark the end of a stage, but the beginning of a new phase in the Sino-Latin American relationship. Since its inception in 2014, the China–CELAC Forum (FCC) has gone through three key stages that outline its evolution. The first ministerial meeting, held in Beijing in 2015, laid the normative foundation for the mechanism, establishing its intergovernmental and voluntary nature. The second, held in Santiago, Chile, in 2018, consolidated priority areas of cooperation and linked the Forum to the Belt and Road Initiative. The third, held virtually in 2021, updated the agenda in a pandemic context, incorporating new topics such as health, digitalization, and sustainability. After a period of relative inertia, the Fourth Ministerial Meeting—held on May 13, 2025, in Beijing—represented a turning point both in ambition and strategic scope. It is essential to remember that the Ministerial Meeting constitutes the highest level of deliberation within the mechanism, bringing together the foreign ministers of China and Latin American countries. In this edition, Chinese Foreign Minister Wang Yi presided over the sessions, emphasizing that, as developing countries and members of the Global South, China and Latin America must coordinate efforts to defend their legitimate rights and interests. As a result of the meeting, two key documents were adopted: the Beijing Declaration and the Joint Action Plan 2025–2027, approved by all 33 participating countries—with the exception of Argentina, which chose not to endorse the documents. Although the FCC is primarily ministerial in design, it occasionally takes on a broader political dimension, with the participation of heads of state and government. Such was the case this time, as the intervention of President Xi Jinping—host and central figure of the meeting—gave the forum a strategic tone and outlined its future roadmap. In the face of global challenges such as unilateralism, trade wars, and the climate crisis, Xi proposed a cooperation architecture based on five strategic programs combining political, economic, social, cultural, and security objectives. First, the Solidarity Program reflects the political dimension. In this regard, Xi Jinping stated that “China is ready to continue supporting each other with LAC [Latin America and the Caribbean] on matters concerning our respective core interests and major concerns.” This stance contrasts with more restrictive approaches promoted by the United States, such as during the IX Summit of the Americas (2022), where Cuba, Venezuela, and Nicaragua were excluded. Moreover, the Beijing gathering fits into an active diplomatic sequence that includes the G20 summit in Rio (November 2024), APEC in Lima (November 2024), and the upcoming BRICS summit in July 2025, also in Rio. Far from being symbolic gestures, the frequency of these encounters reveals a convergent strategy of global engagement on China’s part, based on sustained regional alliances. Second, the Development Program encompasses the economic dimension. This pillar aims to promote cooperation in growth, investment, and productive transformation, expanding into strategic sectors such as artificial intelligence, the digital economy, and clean energy. Xi announced a credit line of 66 billion yuan to support regional development, which constitutes not only a financial contribution but also a clear sign of confidence in Latin America amid trade fragmentation and the reconfiguration of global value chains. Third, the Civilizations Program expresses the cultural dimension in the cooperation agreements. Beijing promotes intercivilizational dialogue grounded in equality, mutual learning, and inclusion. This translates into initiatives such as Latin American Art Seasons in China, joint heritage conservation projects, and comparative studies on ancient civilizations. In a region historically influenced by American cultural ideology, this strategy seeks to diversify symbolic references, strengthen Chinese soft power, and project a more respectful and relatable image in Latin America. Fourth, the Peace Program underscores the increasingly relevant security dimension. This pillar marks a qualitative evolution in China’s outreach to the region, as it addresses non-traditional security issues from a cooperative standpoint. Based on support for the Proclamation of Latin America and the Caribbean as a Zone of Peace (CELAC, 2014), China proposes to strengthen collaboration in areas such as cybersecurity, counterterrorism, corruption, drug trafficking, and organized crime. This approach reinforces the principles of non-interference and peaceful resolution, aligning with the concrete needs of Latin American states. Fifth, the People-to-People Program expresses the social dimension. This component consolidates the social connection between China and Latin America through scholarships, technical training, Chinese-language teacher education, and community projects. The inclusion of tourism as a focal point—alongside the upcoming implementation of a visa waiver policy for five Latin American countries—highlights the intention to promote direct exchange between populations. The five programs outlined by Xi Jinping—solidarity (political), development (economic), civilizations (cultural), peace (security), and people (social)—constitute a comprehensive framework that positions China as a multidimensional partner for Latin America. This strategic vision is grounded in an already robust economic relationship: in 2024, bilateral trade surpassed $500 billion, reaching the goal set a decade ago. In this context, the third edition of the White Paper on Latin America and the Caribbean is expected to be published soon, a document that will complement the commitments made in the final declaration and the Action Plan adopted in Beijing. Thus, the Fourth Ministerial Meeting of the China–CELAC Forum does not mark the end of a phase, but the beginning of a new chapter in Sino–Latin American relations. The scope and quality of this phase will depend on the ability of Latin American actors to engage strategically and proactively with China’s proposal. The opportunity is there. *This article was originally published on the REDCAEM website.

Diplomacy
ASEAN - GCC Ministerial Meeting - 25 May 2025 Group Photo

Implications of Xi Jinping's visit to Malaysia and Trump's visit to the Gulf ahead of the Malaysia-led ASEAN-China-GCC summit

by Nadia Helmy

China relies heavily on Malaysia as a bridge for cooperation, dialogue, and coordination with the Gulf Cooperation Council (GCC) countries and China in confronting the economic and political challenges imposed by the United States on China and many countries around the world after President “Trump” increased US tariffs on China. To this end, China seeks to coordinate with Malaysia during its presidency of the (ASEAN Summit) this year 2025, and its concurrent presidency of the (ASEAN-GCC Cooperation Summit), a situation China is keen to capitalize on through its distinguished partnership with Malaysia. In addition, Chinese President Xi Jinping's visit to Malaysia in mid-April 2025, during which they issued a joint statement on support for Gaza and the Palestinian cause in the face of Israeli violations.  Malaysia's meetings and its current hosting of the (ASEAN Summit and the ASEAN-GCC Cooperation Summit) come after important trade talks between the United States and China in Switzerland in May 2025, the same month as the ASEAN and ASEAN-GCC Cooperation Summits with China. The ASEAN-GCC Summit may be a real opportunity to lay the foundation for deeper negotiations between the world's two largest economies after a period of escalation in the trade war between the two sides.  Given the importance of the ASEAN region to Southeast Asia, which represents China's vital backyard, it is at the heart of the strategy for managing major events between Washington and Beijing in the Indo-Pacific region. To this end, Washington and Beijing signed a strategic partnership agreement with ASEAN, given its critical importance to both countries.  Former US President Joe Biden signed a new Comprehensive Strategic Partnership agreement between the United States and the Association of Southeast Asian Nations (ASEAN), describing it as a decisive step toward addressing the biggest issues of our time. Meanwhile, Beijing emphasized strengthening the Comprehensive Strategic Partnership agreement it signed with ASEAN in 2021, with China keen to jointly build the world's largest free trade area.  The most prominent complex global issues on the agenda of ASEAN countries, China, Malaysia, and the Gulf Cooperation Council (GCC) in their confrontation with Washington and Russia include (the war in Ukraine, climate change, regional tensions around the Taiwan Strait and the South China Sea, North Korea's missile launches, the recent Gaza war, and US tariffs), among others.To this end, China officially confirmed Chinese Premier Li Keqiang's visit to Malaysia in late May 2025 to attend a summit coordinated by China with a newly formed group of Southeast Asian and Arab countries, through which Beijing hopes to garner support in the face of Washington's tariffs. China also launched a campaign to mend relations with the European Union, Japan, and South Korea, after US President Donald Trump imposed a series of tariffs on numerous countries on April 2, 2025, before abruptly suspending them for dozens of countries except China.  Chinese Premier “Li Keqiang” will also be in Kuala Lumpur, Malaysia, to attend the (ASEAN-GCC-China Summit) on May 27, 2025, which will be held one day after the ASEAN Summit scheduled for May 26, 2025. China has not publicly confirmed the names and number of Chinese officials who will comprise the Chinese delegation it will send to Malaysia before the summits in Malaysia.  From my analytical perspective, this may stem from China's fear that the United States and its ASEAN allies will exert pressure on those Chinese figures who will participate in the (ASEAN-GCC Summit) in particular.  In my view, Chinese President Xi Jinping's visit to Malaysia in mid-April 2025 is linked to the role Malaysia will play, along with its ally China, in confronting US protectionist policies. This follows President Xi Jinping's visit to three Southeast Asian countries (Vietnam, Malaysia, and Cambodia) to win them over to China's side in its trade war with the United States. To this end, China is seeking to win Malaysia over, particularly at this time, as Beijing intensifies its current efforts to secure partnerships to protect its economy from the escalating trade war with the United States. While the three countries (Vietnam, Cambodia, and Malaysia) will benefit from Chinese President Xi Jinping's visit in mid-April 2025 to diversify their Chinese supply chains, it also places them in a challenging position with the US, and in the crosshairs of US President Trump as he seeks to restrict the reshipment of Chinese goods to its regional neighbors and then transport them through them to the world.  In anticipation of all stages of US escalation against China, Chinese President “Xi Jinping” convened and chaired the Central Working Conference on Diplomacy with Neighboring Countries in early May 2025. This conference highlighted China's increasing focus on strengthening regional relations, particularly with its neighbors, most notably Malaysia and its ASEAN partners.  On the other hand, there is competition between the United States, China, and Europe to enhance economic presence at the joint summit between the Malaysia-led ASEAN and the Gulf Cooperation Council (GCC) in Kuala Lumpur, Malaysia. The GCC countries are in fierce competition with the United States, Russia, China, and Europe to strengthen their economic presence in the vibrant ASEAN, which holds promising opportunities in multiple fields for the Gulf community. The ASEAN summit with the Gulf states and China represents an important milestone that reflects the growing interest of the leaders of the Gulf Cooperation Council (GCC) in strengthening relations with the ASEAN countries and China, in the face of economic and geopolitical challenges that require deeper coordination and more flexible cooperation. This is especially true given the unbalanced nature of Trump's personality, from the perspective of the Gulf states, even his closest allies. Many GCC leaders fear a sudden Trump coup against his closest allies, which is one of the reasons for the Gulf's move towards rapprochement with the ASEAN and China, led by Malaysia. The geopolitical transformations and escalating international competition between China and the United States over the Asian region and the Association of Southeast Asian Nations (ASEAN) in East and Southeast Asia, on the part of Russia, Europe, the United States, and China, have highlighted the efforts of the Gulf Cooperation Council (GCC) countries to strengthen their economic and political presence in this vital region through strategic partnerships that transcend traditional considerations and are based on mutual interests and commonalities. ASEAN countries represent emerging economies that hold promising opportunities in multiple fields for China and the Gulf countries, such as energy and infrastructure. This is why all GCC countries are currently investing in it. Furthermore, there are important commonalities, including that these countries, like the Gulf states, are also seeking to distance themselves from geopolitical polarization in their regional environment, especially after the recent Gaza war. The GCC countries are currently unwilling to enter into economic alliances against other parties. This provides common ground for fruitful cooperation between all, led and coordinated by Malaysia as a bridge for communication, dialogue, and coordination between the GCC countries, primarily with China.  There is also a mutual desire to strengthen Sino-Gulf relations with ASEAN countries through Malaysia at various levels, including cultural cooperation, based on a shared history spanning hundreds of years, particularly through the Chinese Belt and Road Initiative, which represents numerous cultural and civilizational aspects, in addition to its economic, commercial, and investment importance for all.  The secret to ASEAN's success and the encouragement of GCC countries to cooperate and coordinate with it and with China through Malaysia is its focus on economic objectives, transcending ideology and non-interference in the internal politics and affairs of other countries, while giving priority to development and investment. The new and vital area of coordination between ASEAN, China, Malaysia, and the GCC countries is the Maritime Cooperation Mechanism, recognizing the importance of oceans and seas as a key factor in driving growth.  Therefore, there is a working agenda for a framework for maritime cooperation among all concerned countries, to ensure the security of maritime and logistical straits, achieve the principles of maritime safety and security, and ensure freedom of navigation and air traffic without obstacles that limit the movement of legitimate maritime trade. It also promotes peaceful resolution of disputes in accordance with the principles of universally recognized international law.   The Gulf's move toward cooperation with ASEAN countries and China, through Malaysia's coordination of the Gulf Cooperation Council (GCC) summit with ASEAN and China, has several fundamental reasons. These include the United States' imposition of tariffs on several countries, including the GCC itself, at varying rates. This will impact their exports to the US market. This move will inevitably push them to seek alternative markets, enhancing opportunities for cooperation between ASEAN and China, led by Malaysia, with the Gulf countries. This comes amid Chinese efforts to leverage these changes to strengthen its negotiating position vis-à-vis the Americans. Perhaps the positive thing is that Washington announced the suspension of these tariffs on China for 90 days, but I most likely expect it to impose other tariffs on China and the Gulf countries and set other conditions. This will make economic relations between the GCC countries, ASEAN, and China vis-à-vis Washington more tense in the short and long term, as their exports to the US will inevitably be affected in the near future. Therefore, we note that these common challenges facing the Gulf Cooperation Council (GCC), ASEAN, China, and Malaysia together in the face of these American pressures, even after Trump's visit to the three Gulf states (Saudi Arabia, Qatar, and the UAE) in the same month as the (ASEAN-China-GCC summit) in Malaysia in May 2025, open the door to new economic dialogues between all parties and help form regional blocs between ASEAN, China, Malaysia, and the GCC countries. There is clear enthusiasm from all parties to make this happen on the ground. Suffice it to mention the keenness of the concerned parties to hold real summits at the level of heads of state, in addition to ongoing ministerial and technical meetings. This reflects the existence of a genuine political will that seeks to translate all these aspirations into practical partnerships on the ground.  In this context, China, ASEAN, and Malaysia welcomed Saudi Arabia's bid to host Expo 2030 in Riyadh, highlighting the importance of organizing regional and international exhibitions to revitalize economic and cultural exchanges between the Gulf and ASEAN regions, including Southeast Asian countries, China, and Malaysia. They also emphasized the importance of conducting consultations to explore cooperation on implementing the “ASEAN Integration Initiative Action Plan” (2021-2025) and integration programs in the Gulf Cooperation Council (GCC) countries with China and Malaysia. This is what the ASEAN-GCC Joint Summit with China and Malaysia seeks to explore and achieve.  The ASEAN-GCC-China Joint Summit, led by Malaysia, is expected to discuss the Joint Action Plan until 2028 and enhance cooperation between the two organizations, particularly political, economic, security, and cultural aspects, as well as investment, tourism, agriculture, halal products, education, and training.  Coordination between these parties, through Malaysia's presidency of the current ASEAN-GCC summit with China, is focused on key economic partnership priorities, namely enhancing regional market integration and integrating them through cooperative partnerships among all, while strengthening the multilateral trading system. This summit also aims to strengthen existing relations between the Gulf states, ASEAN, and China, given the current circumstances, regional conditions, and rapid international changes. The summit will also enhance the dynamics of relations between ASEAN, the GCC, China, and Malaysia, by discussing the path forward and strengthening cooperation across a number of existing areas of cooperation, including combating international crimes and terrorism. It is also an opportunity to identify new areas of cooperation in security, politics, economics, and cultural pillars. The most important aspect, from my perspective, is that the currently emerging multipolar international order requires middle powers such as the Gulf states, ASEAN, China, and Malaysia to stick together and reach a joint dialogue to support multilateral relations, particularly political aspects, and to coordinate their common positions, especially after the recent Gaza war and the American pressures that have become openly exerted on everyone. In general, the relationship between the Gulf and ASEAN sides, along with China and Malaysia, is considered primarily economically important for all, but it has also evolved due to circumstances in the political dimension. ASEAN countries enjoy a reputation for great neutrality and flexibility regarding international positions, with a greater focus on the economic dimension, while Gulf leaders are placing greater importance on developmental aspects alongside the economy.

Diplomacy
President Donald Trump poses for a photo with Amir of Qatar Sheikh Tamin bin Hamad Al Thani in Lusail Palace before an official State Dinner, Wednesday, May 14, 2025, in Doha, Qatar. (Official White House Photo by Daniel Torok)

Trump signed plenty of contracts in the Middle East, but he’s no closer to the two ‘deals’ he really wants

by Shahram Akbarzadeh

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском US President Donald Trump’s visit to Arab states in the Middle East this week generated plenty of multibillion-dollar deals. He said more than US$1 trillion (A$1.5 trillion) worth of deals had been signed with Saudi Arabia alone, though the real total is likely much lower than that. Qatar also placed an order for 210 Boeing aircraft, a deal worth a reported US$96 billion (A$149 billion). Trump will no doubt present these transactions as a major success for US industry. The trip also helped counter concerns about US disengagement from the Middle East. For more than a decade, local elites have viewed Washington’s attention as shifting away from the region. This trip was a reaffirmation of the importance of the Middle East – in particular the Gulf region – to US foreign policy. This is an important signal to send to Middle Eastern leaders who are dealing with competing interests from China and, to a lesser extent, Russia. And from a political standpoint, Trump’s lifting of sanctions on Syria and meeting with the former rebel, now president, Ahmed al-Sharaa was very significant – both symbolically and practically. Until recently, al-Sharaa was listed by the United States as a terrorist with a US$10 million (A$15 million) bounty on his head. However, when his forces removed dictator Bashar al-Assad from power in December, he was cautiously welcomed by many in the international community. The US had invested considerable resources in removing Assad from power, so his fall was cause for celebration, even if it came at the hands of forces the US had deemed terrorists. This rapid turn-around is dizzying. In practice, the removal of sanctions on Syria opens the doors to foreign investment in the reconstruction of the country following a long civil war. It also offers an opportunity for Saudi Arabia and Qatar, as well as Turkey, to expand their influence in Syria at the expense of Iran. For a leader who styles himself a deal-maker, these can all be considered successful outcomes from a three-day trip. However, Trump avoided wading into the far more delicate diplomatic and political negotiations needed to end Israel’s war against Hamas in Gaza and find common ground with Iran on its nuclear program. No solution in sight for the Palestinians Trump skirted the ongoing tragedy in Gaza and offered no plans for a diplomatic solution to the war, which drags on with no end in sight. The president did note his desire to see a normalisation of relations between Arab states and Israel, without acknowledging the key stumbling block. While Saudi Arabia and United Arab Emirates have no love for Hamas, the Gaza war and the misery inflicted on the Palestinians have made it impossible for them to overlook the issue. They cannot simply leapfrog Gaza to normalise relations with Israel. In his first term, Trump hoped the Palestinian issue could be pushed aside to achieve normalisation of relations between Arab states and Israel. This was partially achieved with the Abraham Accords, which saw the UAE and three other Muslim-majority nations normalise relations with Israel. Trump no doubt believed the Israel-Hamas ceasefire agreed to just before his inauguration would stick – he promised as much during the US election campaign. But after Israel unilaterally broke the ceasefire in March, vowing to press on with its indiscriminate bombing of Gaza, he’s learned the hard way the Palestinian question cannot easily be solved or brushed under the carpet. The Palestinian aspiration for statehood needs to be addressed as an indispensable step towards a lasting peace and regional stability. It was telling that Trump did not stop in Israel this week. One former Israeli diplomat says it’s a sign Israeli Prime Minister Benjamin Netanyahu has lost his leverage with Trump. There’s nothing that Netanyahu has that Trump wants, needs or [that he] can give him, as opposed to, say, the Saudis, the Qataris, [or] the Emiratis. More harsh rhetoric for Iran Trump also had no new details or initiatives to announce on the Iran nuclear talks, beyond his desire to “make a deal” and his repeat of past threats. At least four rounds of talks have been held between Iran and the United States since early April. While both sides are positive about the prospects, the US administration seems divided on the intended outcome. The US Middle East special envoy Steve Witkoff and Secretary of State Marco Rubio have called for the complete dismantling of Iran’s capacity to enrich uranium as a sure safeguard against the potential weaponisation of the nuclear program. Trump himself, however, has been less categorical. Though he has called for the “total dismantlement” of Iran’s nuclear program, he has also said he’s undecided if Iran should be allowed to continue a civilian enrichment program. Iran’s capacity to enrich uranium, albeit under international monitoring, is a red line for the authorities in Tehran – they won’t give this up. The gap between Iran and the US appears to have widened this week following Trump’s attack on Iran as the “most destructive force” in the Middle East. The Iranian foreign minister, Abbas Araghchi called Trump’s remarks “pure deception”, and pointed to US support for Israel as the source of instability in the region. None of this has advanced the prospects of a nuclear deal. And though his visit to Saudi Arabia, Qatar and the UAE was marked by pomp and ceremony, he’ll leave no closer to solving two protracted challenges than when he arrived.