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Europe’s ‘illiberal democracies” issue

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Andrzej Duda, president of Poland’s Law and Justice Party (PiS), made a very harsh statement on the long-debated issue of releasing funds for covid recovery. Duda said he would no longer respond to proposals from the European Commission, taking all the necessary steps for the relevant fund. The Polish leader went even further, claiming that a group of “left-wing liberal” politicians in Brussels wanted a government change in the country.

The recovery fund that Brussels had allocated to Poland was around 36 billion euros, but this money had not been in Warsaw’s hands for a long time on the grounds that it had not follow “supremacy of law”. Poland’s plan was finally approved; European Commission President Ursula von der Leyen again made the provision of money conditional on “reform”.

In November last year, the European Commission froze 100m euros in EU funding to Poland over Warsaw’s refusal to comply with a decision by the EU to end the activities of the Polish Disciplinary Service. On 15 July, the PİS government made amendments to the law on the Supreme Court and terminated the running of the disciplinary board. Established in 2017, the Disciplinary Chamber was presented by the government as a judicial reform. The chamber was viewed by the opposition and the EU as a way of intimidating independent judges that go against the government. The agency had no legal identity, which was approved by both the Polish Constitutional Court and the ECHR. The EU had even started fining Poland 1m euros per day for the chamber. Upon this, Duda decided to close the chamber and establish the “Professional Chamber of Responsibility”. According to the opponents, it was just a variation of the same thing.

Poland as leader of the ‘rebellion‘ against Brussels

Founded in the early 2000s, Poland’s ruling party, PİS, has become one of the most important representatives of the political position in Europe, now called “right-wing populist”, over the years. At first, it was thought that there would be a standard “Christian Democrat” party, and it was also on good terms with the Catholic Church. After the election victory in 2015, criticism rose both inside and outside: PİS was attacking Poland’s “democratic institutions”, acting against the rule of law, interfering with the Constitutional Court, restricting human rights and freedoms and increasing the country’s debt. In summary, the PİS administration was in contradiction with the “Round Table Talks” that emerged in the 1980s and that governments generally  attuned with after the dissolution of socialism.

What was that consensus? We can summarize it under four headings: first, democratization and decentralization; second, the “inefficiency” of the socialist economy and, as a remedy, the process of transition to a fast free-market capitalist economy in which private ownership would be central; third, -related to the second one- the acceptance of the “bitter prescription” and austerity policies under IMF and World Bank supervision; and fourth, good relations with the US in foreign policy, integration into EU mechanisms, and NATO membership were the constant principles.

Pre-PİS governments had complied unquestioningly with a harsh privatisation programme and IMF-World Bank-based neoliberal offensive policies. The reform process, initiated in 1997 following the Shock Therapy in the early 1990s, placed the neoliberal agenda and led to a serious decline in the living standards of millions of Poles.

It was under these circumstances that the march of PİS, which started with the coalition in 2005 and ended with power alone in 2015, began. PİS, who was tougher on anti-communism and Russian hostility than its predecessors, appeared before voters in the 2015 elections with the promise of deviation from neoliberal testament under the name of “economic patriotism”. In this context, in addition to reducing the power of banks and multinational companies, a “social transfer” campaign, which had not been seen since 1989, was also put forward: lowering the retirement age, financial support for families with more than one child, tax regulation and hourly minimum wage. This was accompanied by cultural policies such as objection to the law that frees gay marriages, criticism of the EU’s migration and multiculturalism policy, strengthening the nation-state system and protection of Christian values. Not to mention changing the street names that are related to communism from the period of the People’s Republic of Poland, they were such hostile as to change street names from Poland’s socialist traditions.

Indeed, Warsaw’s flag of rebellion against Brussels is marked by an ideological slur that identify with fascism, communism and the LGBT, and underlines the opposition to all of this. At this point, it should be stated that in the overthrow of the first PİS power (2005-2007), the urban-educated professional layers had a significant role, who believed that harsh neoliberalism was still beneficial to them and that they would prosper. The group consisted of people who took out a loan and bought a house, took out private health insurance to get rid of Poland’s poor health system, went to private schools or sent their children there. The eurozone crisis has crashed the hopes of these segments as well. Poland, whose economy has been growing steadily since the fall of communism, reached its peak in the 2000s, was entering the 2010s with an economic slowdown. Those who sent PİS with a tin can tied to its tail were printing two seals on its “national capitalism” in 2015.

This is the source of the tension between the EU and Poland. This is the Poland’s motivation  behind the demand of $1.26 trillion in compensation from Germany due to World War II. The Polish leadership is driven by the equation “Germany equals the EU”. This situation, combined with anti-Russianism, gives Warsaw an interesting field of action: the anti-Russian Anglo-American alliance, together with the Baltic countries, assigns a special role to Poland. Moreover, Britain, which has left the EU, wants to consolidate a non-EU Eastern European alliance system that includes Poland.[1] This being the case, Poland can raise its voice against both Russia and Germany.

Raising the voice might be a bit of an understatement: PİS leader Jarosław Kaczyński said last August that there was a German-Russian plan designed to rule Europe, and that Poland did not follow it. Kaczyński argued that the Polish opposition also acted in accordance with this plan and wanted to make the country “obedient to neighbouring powers”. Whereas last year, it was him last year who caused eyebrows to raise, saying that the EU had become the “Fourth German Reich”. Justice Minister Zbigniew Ziobro recently went further and argued that Germany wanted a “colonial government” in Poland.

 Hungary seeks reconciliation

Another “illiberal” country that an issue for Brussels is Hungary. Following his 54.13% election victory last April, Fidesz leader Viktor Orban referred to the EU headquarters, saying his victories were visible from the Moon, even from Brussels. Orban also explained who they had won the victory against: the Leftists, the bureaucrats in Brussels, George Soros, the international mainstream media, and even the President of Ukraine.

In 2014, Orban said his goal was “to build an illiberal democracy based on national institutions”. According to Orban, the 2008 global economic crisis showed that liberal democratic states were not globally competitive. The Hungarian leader said he wants to transform “welfare societies” into “employment/working societies” and previously stated that central control should increase in order to cope with energy companies and banks. Orban was struggling to get rid of “debt slavery” and not to make Hungary a “colony of the EU”. What he meant was abandoning the liberal way of looking at the world in order to put society in order.

However, it seems that Orban, who riveted his power, wants to make a fresh start with Germany. Fidesz leader Olaf Scholz, who left for Berlin in October, met with Germany’s new chancellor last year. Afterwards, although Orban described the meeting as “productive”, it was noteworthy that a joint press conference was not held.

Although it is understandable that the traffic light coalition in Germany does not want to side with Orban, it seems that both countries are now sending the message of “unity”. Hungary, like Poland, faces the threat of halting the European Commission’s pandemic recovery funds. The release of funds, which will be decided on November 19th, is of vital importance for Budapest, and it is above all to get Berlin’s approval on this matter.

Orban hoped he could find support for his own anti-sanction position in the German business world, as German industry suffered greatly due to anti-Russian sanctions. Germany is still the largest foreign investor in Hungary and the country’s main trading partner. But Orban doesn’t seem to have found what he hoped for: German industrialists didn’t like Orban, who attended a business forum in Berlin. The German industry as a whole supports anti-Russian sanctions, said Philip Hausmann, president of the German Eastern Trade Association. Hausmann also warned that the German-Hungarian partnership was in danger. According to him, the increasing “illiberal” practices of the Hungarian government were disrupting this partnership. “Whoever cooperates with us wins,” Orban said.

The latest situation in Germany, France, Italy

In the past week, it may not have been felt around here how the tension between Germany and France got to the newspapers. But the hysteria in the French press reached such a point that the country’s oldest financial newspaper, Les Echos, made the headline, “The war between France and Germany has become possible again.”

What happened? The German-French joint cabinet meeting was cancelled, with Scholz and Macron avoiding the cameras. Current contradictions are evident: rising energy prices and Germany’s unilateral subsidy decision, objection to increasing joint debt. All this is causing Paris to raise eyebrows. Moreover, Olaf Scholz’s visit to China was not welcomed by Emmanuel Macron, who reportedly offered to “give the impression that Europe is united” and the German Chancellor declined. France argues that the two countries must develop a special relationship in order to make the EU a geopolitical centre and to create a weight against the US and China. On top of that, France seems to be far behind its oldest rival economically in the last few decades.

It seems that Germany is not very much involved. Germany, which has bowed to the United States militarily and economically, also seems to have paused on joint defence projects with France. From the French point of view, the Germans think: If a European-based defense industry is to be developed, it must be a German industry under American control. Otherwise, there should be no such defense industry at all. It is clear that the two countries have different interpretations of “strategic autonomy”of the EU.

In Italy, another powerful country, the new right-wing power that has aroused “fear” in Brussels, is not thought to be that frightening. Giorgia Meloni, who met Brussels bureaucrats for the first time after his election, described the dialogue as “very sincere and very positive”. Meloni reiterated his pro-EU position on joint fight against rising energy prices and support for Ukraine against Russia. Meloni presents himself to the EU as a pragmatic, moderate and mainstream politician.

[1]. According to an Italian newspaper, the United Kingdom has for some time been eager to establish a “Commonwealth of Europe” consisting of the Baltic countries, Poland and Ukraine. Even more interestingly, according to the newspaper, Turkey will be added to it soon after the community is formed. See the news.

Europe

China’s critical mineral restrictions challenge EU defence expansion plans

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The European Union’s plans to expand its defence capabilities are being hindered by China’s export controls and sales restrictions on critical raw materials.

In response, EU leaders are urging member states to accelerate efforts to diversify supply chains.

According to Nikkei Asia, the European Commission announced last week that it would propose new legislation requiring companies across the bloc to broaden their supplier base in an effort to address economic imbalances, although it did not explicitly name China.

The war in Ukraine and growing uncertainty over Washington’s security guarantees have pushed European governments to increase military spending and defence production.

At the same time, according to a report published in May by Joris Teer, a policy analyst at the European Union Institute for Security Studies (EUISS), China accounts for at least 70% of global mining or refining activity in 17 of the 34 materials classified as critical by the EU. Eight of those 34 materials are currently subject to Chinese export controls.

“China is undermining Europe’s rearmament efforts,” Teer wrote. “Simply by activating this tool, China has already increased its leverage and demonstrated both the capability and willingness to restrict supply whenever it chooses.”

The Aerospace, Security and Defence Industries Association of Europe also warned that geopolitical developments and intensifying global competition for critical raw materials are further underscoring the need to strengthen European supply chains.

The organisation represents more than 4,000 companies, including Britain’s BAE Systems, France’s Thales and Germany’s Rheinmetall.

European defence manufacturers are pursuing a range of strategies, including vertical integration, recycling, diversification and stockpiling.

Rheinmetall told Nikkei Asia that it has “no dependencies” and is “well prepared” regarding critical minerals.

A company spokesperson said: “Rheinmetall has stockpiled key raw materials sufficient for several years. We have also implemented IT systems that allow us to centrally monitor and precisely manage raw material consumption across the entire group.”

Analysts, however, caution that stockpiling alone will not be sufficient. Maria Shagina, a researcher at the International Institute for Strategic Studies, said: “Stockpiling serves as an important buffer against sudden disruptions, but on its own it is unlikely to mitigate structural damage over the long term.”

Shagina added that replacing the volume and diversity of critical minerals controlled by Beijing with alternative sources would take years.

In 2024, the EU enacted the European Critical Raw Materials Act, aimed at rebuilding domestic supply chains for such minerals.

The legislation sets 2030 targets for domestic extraction, processing and recycling while limiting dependence on any single third-country supplier to 65%.

A €3 billion ($3.5 billion) fund was established last year to accelerate strategic projects.

Nevertheless, the European Court of Auditors has noted that the 2030 targets are not legally binding and that the EU remains far from achieving them.

Industry groups argue that policy inconsistencies could further slow progress.

The Cobalt Institute, which represents a sector vital to jet engines, advanced batteries and defence alloys, warned that proposed EU chemicals regulations risk undermining the industry.

“Europe has one foot in and one foot out,” said Michael Blakeney, head of government and public affairs at the London-based institute. “It says the right things, but its actions are inconsistent.”

Europe’s efforts are unfolding alongside a more aggressive US strategy to secure critical mineral supply chains.

Shagina said:

“The US is investing more capital to secure and expand capacity, taking greater financial risks and, in some cases, acquiring equity stakes. Europe, by contrast, is generally more cautious, which places it at a relative disadvantage in the competition for critical minerals.”

In April, the EU signed an agreement with the United States to coordinate supplies of critical minerals. Although some member states initially resisted over concerns that the deal could weaken the bloc’s strategic autonomy, they authorised the Commission in early June to join the US-led “Pax Silica” initiative, which coordinates investment and export-control policies.

Teer urged Europe to use ongoing US-EU-Japan negotiations as the nucleus of a broader coalition aimed at making critical mineral production outside China financially viable through state support, minimum-price mechanisms and supply rules.

“Particularly important are countries that either produce raw materials or possess significant mineral deposits, such as Malaysia, the Democratic Republic of the Congo, Brazil and Indonesia, as well as countries like India with large pools of skilled labour,” he said.

Teer also argued that the EU should activate its Anti-Coercion Instrument, which allows the bloc to impose tariffs and restrictions in response to economic pressure on countries outside the union, in order to deter China from introducing further restrictions.

A European Commission spokesperson said the bloc had “long been aware of the risks associated with the EU’s dependence on critical raw materials.”

“The objective is clear: to anticipate disruptions early and reduce the EU’s vulnerabilities while strengthening our industrial and defence capacities,” the spokesperson said.

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Four European countries move to make citizenship harder to obtain

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European countries are increasingly tightening their citizenship rules. Most recently, the Norwegian government has drafted legislation that would raise the minimum residency requirement for citizenship from three years to seven.

The proposed amendments to the citizenship law were presented by the Ministry of Labour and Social Inclusion.

Under the draft legislation, stateless individuals born in Norway, as well as those who arrived in the country as children, would be required to reside in Norway for at least five years before becoming eligible for citizenship.

The government also plans to increase residency requirements for foreign nationals who are married to or cohabiting with Norwegian citizens.

Language requirements are set to become more demanding as well. The proposal would raise the required level of spoken Norwegian proficiency from A2 to B1. The new rules would apply to applicants aged between 18 and 67.

Commenting on the changes, Minister of Labour and Social Inclusion Kjersti Stenseng said: “Obtaining and holding Norwegian citizenship should be a privilege.”

The government argues that simplifying administrative procedures while simultaneously tightening eligibility criteria will help reduce the country’s large backlog of pending applications and shorten processing times.

Norway is the latest European country to announce revisions to its citizenship rules.

In Finland, the minimum residency requirement for citizenship was increased from five years to eight years on October 1, 2024.

The country also plans to introduce a mandatory citizenship test for applicants aged between 18 and 64 from the beginning of 2027.

Finnish Interior Minister Mari Rantanen said: “The introduction of a citizenship test is the final component of a comprehensive reform aimed at making citizenship requirements more stringent.”

Sweden has also approved a similar reform. Beginning in June 2026, the standard residency requirement for citizenship will increase from five years to eight years. Authorities are also introducing a financial self-sufficiency requirement for applicants and expanding the scope of security screenings.

Explaining the rationale behind the changes, Migration Minister Johan Forssell said: “It was possible to become a citizen after living in the country for five years without knowing a single word of Swedish, learning anything about Swedish society, or even having one’s own source of income.”

The most far-reaching changes have been implemented in Portugal. Portuguese President Antonio Jose Seguro has signed legislation raising the minimum residency requirement for citizenship from five years to 10 years.

For citizens of the European Union and the Community of Portuguese Language Countries, the requirement has been set at seven years.

The residency period will now be calculated from the date a residence permit is granted rather than from the date a citizenship application is submitted. The new rules will also affect the children of immigrants.

Previously, children could obtain citizenship one year after birth if their parents held residence permits. Under the new rules, at least one parent must have legally resided in the country for a minimum of five years.

The law also introduces a mandatory examination covering Portuguese history, culture, values and social structures.

Migration policies are tightening across the European Union as well. On June 17, the European Parliament approved legislation allowing irregular migrants whose asylum applications have been rejected but who cannot be returned to their countries of origin to be deported to third countries.

The new EU rules permit the establishment of migrant detention centres outside the bloc’s borders. African countries are reportedly among the options being discussed for such facilities.

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SpaceX warns EU satellite spectrum plan could disrupt connectivity in Ukraine

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SpaceX has sharply criticised a European Union plan to restrict access to satellite spectrum, arguing that the proposal risks degrading connectivity in Ukraine and disrupting emergency communications services.

In a document shared with European officials and reviewed by the Financial Times, SpaceX warned:

“This proposal significantly increases the likelihood that Europeans will be deprived of direct-to-device satellite services, or that new European operations will create global interference issues, including for emergency services such as those operating in Ukraine.”

In a proposal unveiled in May, the EU recommended reserving part of the spectrum band used for direct satellite-to-smartphone connectivity for European operators, thereby limiting the frequencies available to US and Chinese providers.

The 2 GHz frequency band in question is currently used by two US companies, Viasat and EchoStar.

SpaceX argued that the EU plan prioritises “an operator’s country of establishment over economic, technical and regulatory realities.”

When the proposal was announced, EU technology chief Henna Virkkunen defended the move, saying the bloc wanted to “increase European capacity in this sector.” She added that other parts of the frequency band would remain open to international operators, arguing that prioritising European providers was justified.

Other participants involved in discussions over the proposal said some EU officials were specifically seeking to limit Elon Musk’s Starlink satellite network.

Europe’s initiative follows a warning from Washington. In March, the US Federal Communications Commission (FCC) cautioned that it could take retaliatory measures if the EU chose to favour European satellite operators over alternatives such as Starlink.

At the time, FCC Chairman Brendan Carr told the Financial Times: “Some of the discussions in Europe regarding satellite sovereignty concern us. If Europe decides to move down that path, then, as you know, we will have to consider reciprocal measures.”

The European Commission’s proposal has not yet entered formal negotiations with EU member states or the European Parliament.

A source close to SpaceX said the company remained hopeful of influencing the outcome of the process, given concerns raised by both businesses and several European governments.

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