August 2024

 

Dear Readers,

 

In this edition, we delve into a range of pressing global issues that are shaping the political and economic landscape across Europe and beyond.

 

As tensions in the Middle East rise by the hour, we look at the crucial relationship between the USA and Israel in the lead-up to the US Presidential election. What began as a cautious approach by President Biden has transformed into active involvement in escalating regional conflicts, particularly in light of the ongoing war in Gaza. We examine how these developments could influence US foreign policy going forward and consequently the situation in the Middle East.

 

US-led security efforts have experienced a renaissance in 2024, as reflected in the NATO summit this summer in Washington. It was a momentous occasion, celebrating Sweden's entry as the 32nd member and reaffirming Ukraine's irreversible path to membership. However, political turbulence within the US casts a long shadow over the alliance's future. We take a closer look at how these internal challenges might affect NATO's cohesion and strategic direction.

 

Back in Europe, the aftermath of the European Parliament elections sees the EU gearing up for a new European Commission with fresh goals and ambitions. However, the success of EU policies increasingly hinges on the strength of local institutions. As ambitious initiatives are rolled out, the importance of competent, transparent governance at the local level cannot be overstated. A new piece highlights the crucial role of local administrative capacity in making EU policies more effective and impactful for citizens.

 

We then turn to two European neighbors navigating politics and their economies outside the EU. First, we offer an in-depth analysis of the Swiss economy, where the strong Swiss Franc has played a pivotal role in keeping inflation at bay, even as the rest of Europe faced record highs. However, the strength of the franc is a double-edged sword, as it also puts pressure on Switzerland's export sector. Our article explores the factors behind this economic dynamic and what it means for the future. Finally, we recap the recent Labour election victory in the UK, marking a significant shift away from the populism that has dominated its politics in recent years. With a moderate, pro-European government now in power, there is renewed hope for closer ties with the EU. Yet, the political landscape remains volatile, with challenges ahead in re-establishing a strong relationship with Europe.

 

We hope these articles provide you with valuable insights into these complex and evolving issues.

 

With warm wishes,

 

Malte Zabel

 

Co-Director

Europe’s Future Program
 
Photo: American flag and flag of Israel conveys the partnership between the two states through the main symbols of these countries

US-Israel Relations Ahead of the US Presidential Election

Initially, President Joe Biden’s administration did not plan to closely engage with the problems surrounding Israel and the region. But the situation developed in a different direction. The US is now involved in numerous confrontations between Israel and its regional neighbours, which suddenly shifted from a state of simmering conflicts to acute escalation since war in Gaza broke out.
Read more

 
Switzerland money banknotes and coins

The Economic Impact of the Strong Franc on the Swiss Economy

In October 2022, EU inflation peaked at 11.5%, while Switzerland’s was only 2.9%. A key factor is the strong Swiss Franc, which has continued to appreciate. While this helps combat inflation, it increasingly burdens Swiss export opportunities. Our analysis explores the reasons behind Switzerland's low inflation and the impact of the strong franc.
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"Der Römer" in Frankfurt/Main

Boost Local Institutions and Governance for Effective EU Policy

Recent statements on the EU’s future have echoed a call for stronger local institutions and governance. But to most, these warnings might not even register, but ambitious EU policies cannot make a positive impact “closer to citizens” without competent, transparent local government. Find out how local administrative capacity can be improved to deliver better results from EU policies. Read more

 
Flag of North Atlantic Treaty Organization (NATO)

How US Political Turbulence Casts a Shadow Over the NATO Summit

The 2024 NATO Washington Summit celebrated key milestones. Within the halls where NATO was founded in 1949, Sweden was welcomed as the 32nd member, Ukraine’s NATO path was declared “irreversible,” and Secretary General Jens Stoltenberg was honored for his decade of service. However, concerns persist over political developments in the US and their potential impact on NATO's future. Read more

Union Jack flag and EU flag combined over iconic London landmarks

Labour’s Election Victory Ends the UK’s First Bout of Populism

The UK emerges from a significant period of center-right populism with a powerful center-left Labour government, defying Europe's trend of political stalemate and a rightward shift. This moderate, Europe-facing leadership offers hope for strengthening European unity. Yet, obstacles to reconnecting with the EU persist, and the rise of the populist Reform party signals ongoing volatility.
Read more

 

In the next edition

 

You will find articles on the “connectivity politics” of the South Caucasus and Central Asia, the “Net-Zero Navigator” on decoupling growth from carbon emissions and more.

To keep abreast of our work, please keep an eye on our blog: globaleurope.eu

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