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Commonwealth summit: Calls for reparations from former colonies intensify

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The 56 nations of the Commonwealth have agreed to initiate a formal debate on reparations for the slave trade and other colonial injustices during their summit (CHOGM) held in Samoa this Saturday.

The Commonwealth Heads of Government Meeting (CHOGM) takes place every two years, with each of the Commonwealth’s 56 member states rotating as host. This year’s summit began on Monday in Samoa’s capital, Apia, and concluded on Saturday. The previous CHOGM was hosted by Rwanda in 2022.

Representatives from all 56 countries, most of which were part of the British Empire, attended the summit. However, some leaders, including Indian Prime Minister Narendra Modi and South African President Cyril Ramaphosa, opted to attend the BRICS summit in Russia instead. India’s Minister for Parliamentary Affairs, Kiren Rijiju, attended CHOGM in Modi’s place.

Climate change on the agenda

Climate change was a central topic at this year’s summit, with leaders working on the Commonwealth Ocean Declaration aimed at protecting global water bodies. Countries also discussed commitments to meeting climate finance targets.

According to the final declaration, “most member states” share “common historical experiences” of the “abhorrent” transatlantic slave trade and slavery itself, which had “lasting effects” on the populations involved.

The document also condemned “blackbirding”—the kidnapping of indigenous people from South Pacific islands to labor under British colonial rule, as seen in places like Fiji, Samoa, and Australia.

The declaration noted that Commonwealth leaders heard “calls for restorative justice discussions” related to the slave trade and agreed it was “time for a serious, realistic, and respectful conversation” about building “a shared future based on equality.” It emphasizes that the leaders will actively support these discussions.

British government resists calls for reparations

The Commonwealth leaders’ decision went against the position of the British government, which had declared that compensation should not be included in the final declaration.

Shortly before the summit, British Prime Minister Keir Starmer had announced that compensation would be excluded from the meeting’s agenda. However, speaking after the summit, Starmer acknowledged the “need for discussions” on the topic, while clarifying that “none of the discussions are about money” and that Britain’s position was “very clear” on this issue.

A government spokesperson reiterated Britain’s stance against reparations, including “non-financial” forms of “restorative justice,” stating that the UK would not accept any form of compensation.

The Starmer government ultimately prevented a separate declaration on restorative justice, which some Commonwealth nations had advocated.

Supporters of restorative justice argue it could take various forms, including educational programs, debt relief, and other forms of economic support.

King Charles III and Starmer address the issue

King Charles III sought to soften the British stance, acknowledging Britain’s “painful history” and emphasizing that while “no one can change the past,” there is always the potential to “learn from it” to guide the future.

Prime Minister Starmer also emphasized the importance of assisting Commonwealth nations in accessing climate finance, while affirming that the summit’s priority was addressing climate resilience.

British academic Michael Banner, Principal of Trinity College, Cambridge, has estimated that Britain’s historical debt to the Caribbean due to the slave trade alone could exceed £200 billion.

Asked about the shape of post-summit discussions, outgoing Commonwealth Secretary-General Patricia Scotland remarked that the Commonwealth would address the issue with the same careful approach it uses for other sensitive matters.

Caribbean nations propose a reparations plan

Caribbean leaders proposed a 10-point reparations plan during the summit, seeking to include a separate section on restorative justice in the final communiqué. The plan, advocated by Caricom—a coalition of 21 Caribbean nations—included calls for a formal apology, debt cancellation, technology transfers, support for public health initiatives, and the eradication of illiteracy.

Bahamian Prime Minister Philip Davis voiced strong support, stating that it was time for the Commonwealth to seek “justice” for the brutal legacy of slavery.

The legacy of the British slave trade

For over three centuries, between the 15th and 19th centuries, the British Empire was heavily involved in the slave trade. At least 12.5 million Africans were kidnapped and forced onto European and American ships, transported across the Atlantic, and sold as slaves in the Americas.

According to the British Parliament website, Britain’s involvement began in 1562, and by the 1730s, it was the largest slave-trading nation. British ships carried over three million Africans, primarily to Britain’s North American and Caribbean colonies.

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German defense minister clears way for Scholz to lead SPD into elections

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Defense Minister Boris Pistorius has officially withdrawn as the Social Democratic Party’s (SPD) top candidate for the upcoming election, ending weeks of speculation about his potential to replace Chancellor Olaf Scholz.

In a video message released by the SPD on Thursday evening, Pistorius stated that the ongoing public debate had harmed the party’s unity. He informed the party leadership that he was unsuitable for the chancellorship.

“Olaf Scholz is a strong chancellor and the right candidate for the chancellorship,” Pistorius said, emphasizing that the party leader embodies “reason and common sense.” He further urged, “We now have a joint responsibility to bring this debate to an end because there is a lot at stake.”

When Scholz triggered early elections two weeks ago, many assumed he would automatically serve as the SPD’s candidate, given his role as the incumbent chancellor. However, polls revealed that Pistorius, who has been defense minister since early 2023, had become Germany’s most popular politician, sparking a de facto leadership race.

Scholz faces declining approval ratings

In contrast to Pistorius’ popularity, Scholz suffered from one of the lowest approval ratings among German politicians. Voters blamed him for months of political infighting that crippled the three-way “traffic light” coalition, which ultimately collapsed earlier this month.

Despite this, the SPD central leadership continued to back Scholz. Meanwhile, Pistorius faced increasing criticism for failing to address the leadership speculation. In his video message, Pistorius denied initiating the controversy but acknowledged that it had caused “growing uncertainty” within the party and “resentment” among voters.

He emphasized that the decision to step aside was his own and pledged his full support to Scholz, whom he described as an “extraordinary” chancellor. Pistorius also affirmed his commitment to campaigning for the SPD’s re-election.

Supporters react with disappointment

Pistorius’ withdrawal left many of his supporters disheartened. “I regret this development. The aim now must be to work together and achieve the best possible election result for the SPD,” said Joe Weingarten, an SPD member of parliament, in an interview with Der Spiegel.

Another MP, Johannes Arlt, remarked, “I would have preferred a different decision, but now we have one. It is good for the party and the country. We will now go into the federal election campaign united.”

A two-way race for the chancellorship

With Pistorius stepping down, the race for the chancellorship is now expected to be between Olaf Scholz and Friedrich Merz, leader of the opposition Christian Democrats (CDU). Merz, a millionaire and former BlackRock Germany executive, has been polling ahead of Scholz since taking over the CDU leadership in 2022. Scholz’s supporters, however, remain optimistic that he can close the gap and outperform Merz in the upcoming election.

Pistorius: A proponent of German remilitarization

Known for his pragmatic approach to military affairs, Pistorius, 64, earned respect for his tough stance on Russia and advocacy for Germany’s rearmament. Following his appointment as defense minister in 2023, he made clear his opposition to the SPD’s historical reluctance to increase military spending.

Describing Vladimir Putin as “the despot in the Kremlin,” Pistorius warned that Germany must boost defense investments and ensure it is “combat ready.” His hardline approach on security and defense issues distinguished him within the SPD and cemented his popularity among voters.

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Poland urges EU to increase spending on eastern defence

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Poland, NATO’s largest defence spender, has urged its EU partners to bolster border defences with Russia and Belarus. The move aims to demonstrate a firm commitment to European security, particularly in light of Donald Trump’s influence on global defence policies.

Magdalena Sobkowiak-Czarnecka, the deputy minister responsible for preparations for Poland’s EU presidency, set to begin in January, told The Financial Times (FT) that the EU should invest in strengthening border fortifications and air surveillance systems under the Eastern Shield initiative.

“I think solidarity on the Eastern Shield could help show Trump that, as the EU, we understand what needs to be done for defence. If Trump says he will only work with countries that invest in defence, that’s fine for Poland, because we already spend 4% of GDP on defence. But what about the others? Funding the Eastern Shield would demonstrate the shared commitment of European countries,” Sobkowiak-Czarnecka explained.

The Eastern Shield, announced in May, comprises advanced fortifications and air surveillance systems along Poland’s borders with Belarus and the Russian exclave of Kaliningrad. This initiative is central to Polish Prime Minister Donald Tusk’s strategy to counter what he describes as “Russian aggression”, including the “hybrid war” linked to facilitating illegal migration from Belarus into Poland.

The Tusk government has allocated PLN 10 billion (€2.3 billion) for the Eastern Shield as part of broader defence expenditures. These investments will increase Poland’s defence spending from 4.1% of GDP in 2023 to 4.7% by 2025, the highest in NATO and more than double the alliance’s 2% GDP target. In contrast, some EU nations, such as Italy and Spain, have yet to meet this benchmark.

“All our partners must understand that the Eastern Shield is not solely about Poland but also about safeguarding the EU’s borders,” said Sobkowiak-Czarnecka.

Trump’s potential return to the presidency has heightened concerns across EU capitals, given his promises to impose tariffs on the bloc and signals of a potential resolution to the Ukraine conflict that could favor Russia.

Sobkowiak-Czarnecka underscored Poland’s commitment to enhancing EU security on multiple fronts, from increasing military equipment production to countering disinformation and securing energy supplies.

“This Polish presidency comes at a critical juncture. As an expert on Ukraine and one of the strongest U.S. allies in Europe, Poland will be a guiding light in these challenging times,” she concluded.

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European energy market in turmoil: Gas prices reach one-year high

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The European energy market faces significant challenges as natural gas prices soar to their highest levels in a year. A combination of escalating tensions between Russia and Ukraine, Gazprom’s suspension of natural gas supplies to Austria, and colder-than-expected weather has placed substantial pressure on the market.

Industry representatives acknowledge that while sufficient gas supplies exist, the supply-demand balance remains fragile. Negative developments or geopolitical news could quickly trigger additional price surges.

On Thursday, Dutch TTF futures—a key European natural gas benchmark—rose to €48.8 per megawatt-hour (MWh) (equivalent to $538 per 1,000 cubic meters), a level last observed in November 2023. Since the end of the heating season on 31 March, prices have climbed by more than 150%.

The price surge accelerated on Wednesday after Ukraine targeted Russian territory using British-made Storm Shadow missiles. By the close of the trading day, prices had increased by 2.5%, reaching €46.8/MWh.

On the same day, the United States issued a warning based on intelligence reports, predicting a major air strike in the region. Following this warning, many Western countries evacuated their embassies in Kyiv.

Adding to the tensions, the Ukrainian Air Force reported that Russia test-fired an intercontinental ballistic missile (ICBM) capable of carrying nuclear payloads. This event aligns with speculation about changes in Russia’s nuclear doctrine and the US’s authorization for Ukraine to target Russian territory with long-range missiles.

While liquefied natural gas (LNG) demand in Asia remains low, traders are turning their focus to Europe to capitalize on surging prices, according to Bloomberg.

Despite the increased volatility, Gas Infrastructure Europe reports that gas storage facilities across Europe are 90% full. However, the heating season, combined with freezing temperatures in Northern Europe, has amplified concerns about market stability.

Torgrim Reitan, Equinor’s Chief Financial Officer, emphasized that the market’s fragile balance increases the influence of external factors on pricing dynamics.

The state of pipeline gas supplies from Russia is another major concern. On 16 November, Gazprom halted deliveries to Austria’s OMV, citing unresolved payment issues. The company is attempting to recover part of a €230 million arbitration judgment through this suspension.

Despite this, Gazprom continues to supply 42.4 million cubic meters of gas daily to Europe via Ukraine. However, OMV cannot access these supplies and must turn to other sources, such as Slovakia, to meet Austria’s energy needs. According to OMV officials, Austria’s energy requirements are fully covered by alternative suppliers.

Jon Treacy, editor of the investment newsletter Fuller Treacy Money, noted that although Austria maintains official neutrality, most of OMV’s customers are NATO members. Treacy added that Russia’s “long, cold winter” strategy aims to exert pressure on regions beyond Ukraine over the long term.

Market analysts warn that transit through Ukraine—a minor contributor to the European Union’s total gas imports—could be entirely cut off by January 2024. Such a development would further strain an already delicate market, potentially driving prices even higher.

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