Eu

Miss Brexit? Another bust-up is looming

In the past few months, relations between the UK and the EU have been the best they have been since Brexit. Vladimir Putin’s assault on Ukraine reminded the two sides of the need for the world’s democracies to co-operate. It is tempting to hope that relations could continue to improve, especially now that the French presidential election is out of the way. But, as I say in the magazine this week, this is unlikely to happen. The Northern Ireland protocol is about to return to the agenda. The EU thinks that the UK must be made to abide by what was signed, and that allowing London to wriggle out of

The EU is trying to bring Hungary to heel

If there was a word in Euro-speak for ‘Move on, nothing to see here,’ the EU would undoubtedly have used it in its announcement yesterday about Hungary. Brussels has formally notified Budapest that it is invoking the so-called ‘conditionality mechanism’ against it, meaning a supermajority within the EU can vote to withhold funds from a member state where there is a threat to the rule of law coupled with direct effects on the sound financial management of the EU budget or other EU financial interests. The notification itself has not been publicised; but everything, the EU says, is in order. A letter was sent last November outlining allegations of graft,

Why Brussels fears Elon Musk

Thierry Breton, the European Commission for the internal market, lost no time in rattling his sabre at Twitter as soon as it was announced that the company had accepted Elon Musk’s offer to buy it. Even though Musk had made no announcement on how he intends to run the company, beyond stating his belief in free speech, Breton felt it necessary to warn Twitter that if it ‘does not comply with our law, there are sanctions – 6 per cent of the revenue and, if they continue, banned from operating in Europe.’ There is a reason, of course, for the failure of Europe to produce a tech giant Is Breton’s

How Russia is splitting the EU

Russia is turning off the gas to Poland; the country’s state-owned gas supplier has refused to pay Gazprom in roubles. Bulgaria has also said that Russia would shut off their gas supplies. This is a serious escalation and raises questions about how other countries will respond to the demand. The risk of EU unity fracturing is growing. For Vladimir Putin, the rouble demand serves an important geopolitical purpose: splitting the West. What Germany and its energy buyers will do is critical. Circumventing the sanctions, as it seems Germany is doing, especially while other EU countries are having their gas shut off for adhering to sanctions rules, will break EU solidarity. And

Viktor Orbán is no friend of the West

Viktor Orbán‘s victory speech in Budapest on Sunday night took a curious turn. Speaking after a fourth landslide win, he opined: This victory is one to remember because we had the biggest [opponents] to overpower. The left at home, the international left, the bureaucrats in Brussels… the Soros empire… and even the Ukrainian President. Orbán skipped over the challenge to regional stability caused by the Russian invasion of neighbouring Ukraine. Having refused military aid to Kyiv, and having exchanged barbs with President Volodymyr Zelensky, he reassured ethnic Hungarians in West Ukraine: ‘Don’t be afraid, the motherland is with you’. Orbán’s party is raising the prospect of secession of Ukrainian lands,

Did P&O use an EU loophole?

Brexit, as Boris reminded us many times during the referendum campaign, would give Britain the power to make its own laws, unencumbered by constant directives from the European Commission. But it will take a long while to disentangle UK laws from the influence of the EU, as the government may be about to discover in its attempt to punish P&O ferries for sacking 800 workers and replacing them with agency staff. It will take a long while to disentangle UK laws from the influence of the EU At last week’s Prime Minister’s Questions, Johnson declared that P&O had contravened section 194 of the Trade Union and Labour Relations Act 1992,

Is Germany already backsliding on Russia?

Just three weeks after Chancellor Olaf Scholz announced that Germany would directly arm Ukraine, Europe’s economic powerhouse is running out of weapons to send. ‘We’re delivering Stingers. We’re delivering Strelas. The Defence Minister has looked at what we can deliver but honesty also requires us to say: we don’t have enough,’ Foreign Minister Annalena Baerbock told the Bundestag last week. ‘If we could conjure up more weapons to send, then we would.’ Scholz then appeared to revert to an old German habit: trumpeting the importance of diplomacy as an end in itself. In the very same tweet in which he thanked Ukraine’s war-time President Volodymyr Zelensky for his speech to

Why is the EU attacking Poland and Hungary in a crisis?

With Russian bombs harassing Kiev and Kharkiv, the two unsung heroes of Europe have been Poland and Hungary. With very little notice, they have between them welcomed, fed and accommodated well over a million refugees from Ukraine. This they have done gladly and without complaint. Yesterday the European parliament passed a ponderous 2,500-word resolution devoted to Poland and Hungary. An appreciation, perhaps, or even a vote of thanks? Not exactly. It was actually a call for the EU to take steps as soon as possible to block payment of EU budget and Covid recovery funds to both countries, and criticising Brussels for not having started the process earlier. Why? The

Hungary’s ‘patriotic fight’ with the EU: an interview with justice minister Judit Varga

Budapest is racked with tension. As Russia’s invasion of Ukraine sends a stream of refugees to Hungary’s eastern border, Viktor Orbán’s Fidesz party has scrambled to respond to the humanitarian crisis while turning his back on his previous pragmatic relationship with Moscow. Fidesz’s unequivocal condemnation of Vladimir Putin’s actions will have come as a relief to Brussels. But a bitter argument still rages over Hungary’s opposition to the bloc’s new ‘rule of law’ budget mechanism, which allows EU funds to be made dependent on adherence to legal and democratic norms. When the European Court of Justice rejected a challenge to the mechanism from Hungary and Poland on February 16, Hungary’s

The crisis in Ukraine is strengthening the EU

The EU has a knack for turning a crisis into an opportunity. The Eurozone crisis led to the centralisation of economic powers in Brussels; Brexit consolidated the Franco-German push for EU integration; and Covid became the pretext for EU funds being made dependent on members adhering to the ‘rule of law’ for the first time. It’s looking likely that the bloc will repeat this trick with the war in Ukraine. Prior to Russia’s invasion, the EU was being mocked for its divisions: on Russian gas dependency, on proposed economic sanctions, and on political links with the Kremlin. Now, the bloc is trumpeting its unity. And it has been remarkable to

The Putin apologists of the European parliament

Never underestimate Vladimir Putin, and certainly never underestimate his advisers. Well before the first Russian rockets exploded in metropolitan Kiev, he had achieved a major foreign policy success by sabotaging the EU’s ability to present a united front against him. Ever since the days of Gerhard Schroeder, Russia had deftly weaponised German politicians’ commitment to Ostpolitik and German people’s desire for a comfortable bourgeois life, and this undoubtedly paid off. Before the invasion the EU’s paymaster was less than enthusiastic about sanctions when reminded of the sunk costs of Nord Stream 2 and its short-sighted but temporarily lucrative decision to depend both on Russian gas and the profits it made

Viktor Orbán has played a perfect game with Putin

On 3 April Hungarians will have their ninth set of free parliamentary elections since the collapse of the communist dictatorship in 1989. The winner is likely to be Viktor Orbán and his Fidesz-KDNP coalition, which is leading in five of the six major polls. Russia’s invasion of Ukraine will not change that dynamic even though the opposition leader, Péter Márki-Zay has called Orbán a ‘traitor’ for his long-standing friendship with Vladimir Putin. Ever since Viktor Orbán began his second stint as Hungary’s prime minister in 2010, he has repeatedly played the provocateur within the EU, tweaking the eurocrats’ noses with his cultural conservatism and hostility to mass immigration. His alliance

A new Europe is emerging from this crisis

With every hour that Kiev holds out, the geopolitics of Europe changes more. Germany, which so values its prohibition on sending weapons into warzones, has just announced that it is sending 1,000 anti-tank weapons and 500 Stinger missiles to support the Ukrainian forces. I expect that defence spending will rise considerably in the coming years Germany is also allowing other Nato members to export arms with German-made parts to Ukraine — which will make a material difference to the supplies that the Ukrainian government receives. Yesterday evening, it was announced that Russian banks are going to be cut off from Swift. The EU seems to have realised how unsustainable their position was when

Europe is painfully reliant on Putin

Vladimir Putin declared war on Ukraine in the early hours of this morning, starting with a massive air attack from the north, south and east, targeting military and civilian infrastructure. This is the worst-case scenario. Putin’s speech on Monday set the ideological groundwork. This morning he spoke again, calling Ukraine ‘our historic lands’. He said he was launching what he called a ‘special military operation’ with the goal, not of occupying the country, but of ‘demilitarising and de-Nazifying’ Ukraine. And Putin spoke too to us here in the West: To anyone who would consider interfering from the outside: if you do, you will face consequences greater than any of you

Are the lights about to go out across Europe?

Today’s snap decision by German Chancellor Olaf Scholz to halt Nord Stream 2 — the new pipeline intended to export vast amounts of Russian gas into the EU — will make precisely no difference to European energy security, at least in the short to medium term. It could force a rethink of Berlin’s longer-term energy strategy, but the bigger question facing energy markets is whether Russia will curtail existing gas flows into Europe. Scholz on Tuesday instructed Germany’s Federal Ministry for Economic Affairs and Climate Action not to allow the Baltic Sea pipeline to start pumping gas ‘for now’. Halting the certification process puts the project on hold but doesn’t

How the Ukraine crisis ends

Vladimir Putin does not think in the way the West does. Of course sanctions will hurt. But so what? He may be wrong in his strategic calculations, but he is not, as Boris Johnson claimed over the weekend, irrational. Putin is an old-school strategist. This is one of the reasons that sanctions will not have the desired impact. An import ban on Russian gas would definitely hurt the Russian economy, but that seems highly unlikely. Italian President Mario Draghi said on Friday that we should not touch gas. It is now the guy who sits in Moscow, rather than Draghi, who is willing to do ‘whatever it takes’. An import

The EU is pushing Hungary and Poland to the brink

Storm clouds looming over the EU’s ‘rule of law’ dispute turned a shade darker on Wednesday. The European Court of Justice rejected challenges from Hungary and Poland against a controversial budget mechanism linking adherence to democracy and EU funding.  In an indication of the significance of the ruling for the bloc’s future, the verdict was the first ever to be broadcast live from the court. The European Commission will now come under intense pressure to apply the rule of law mechanism and withhold long-term budget funds for Hungary and Poland, along with the pandemic recovery funds it has already refused to hand over to those states. But the escalation of the conflict

Is Orbán serious about leaving the EU?

First the UK decided to leave the EU. Then in Poland, lawmakers started talking about it. Is Hungary now seriously considering Huxit? For the first time ever, Viktor Orbán has insinuated that leaving the union could be a possibility. The Hungarian Prime Minister kicked off his campaign for re-election over the weekend by attacking Brussels’s ‘Jihad’ against his country and suggesting that continued membership of the EU might not be possible. This is obviously an alarming prospect for the EU. Over the course of Orbán’s premiership, Vladimir Putin has brought Hungary into his orbit. The latest step in that process was a 15-year gas deal signed in September. Russia will

Viktor Orbán or: How I Learned to Stop Worrying and Love Putin

Viktor Orbán first came to prominence when in 1989 he declared on live TV that Hungary must put an end to the ‘Russian occupation’. On the first day of February this year, he held his thirteenth meeting with Vladimir Putin. What’s changed? Like much of his generation, Orbán initially believed that the fall of communism would mean a ‘return to Europe’ — with not only western democracy but also a western standard of living. Yet after a brief and unpleasant stint studying in Oxford, the student politician discovered that Britain’s future elites were ignorant and decadent. Orbán eventually concluded that Hungary had to jettison its naïve faith in Western Europe

The abandoned revolution: has the government given up on Brexit?

There is a lesser-known Robert Redford film, The Candidate, in which he plays a no-hope Democrat taking on a popular and well-liked Republican in a Californian election. After engaging unexpectedly well with the public and winning an improbable victory, he turns to one of his aides and asks, bewildered: ‘What do we do now?’ The question is left hanging in the air like the back end of the bus in The Italian Job. The script might as well have been written about Boris Johnson and the Brexit referendum campaign. It is nearly six years on from that victory, and two years on from Brexit itself. And yet it is still