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New era of #Putin




One year and one day ago, on 7 May 2018, Vladimir Putin was sworn in for his fourth term as president of Russia. The newly elected Russian leader arrived at the inauguration ceremony directly from his office, showing the people that he was busy with current state affairs and at the same time demonstrating to an entire army of high-ranking officials waiting in the Kremlin's royal halls that the objectives he planned to accomplish during his fourth tenure could not wait, writes James Wilson.

Putin is indisputably a very popular figure in Russian society — he enjoys a level of trust and respect that is hard to attain for a politician. What is more, Putin has been able to achieve this consistently for many years. This is partly because he brought back a feeling of national pride for the Russian people. His controversial foreign policy is still largely met with enthusiasm and support at home, and with rejection, but fear mixed with respect in Western democracies.

Putin is smart, and is well aware that to win people's devotion one needs more than "a sharp pen and a sword" — a true historical figure and beloved leader of the nation should also bring meaningful changes to the country's life. With this in mind, on the first day of his office last year, he issued a decree on national goals and strategic objectives for the development of the Russian Federation until 2024.


By signing this document, he tasked his government with one of the biggest objectives in the 20-year history of his rule. He launched nine national projects to develop key areas of the country's life, which by the end of his current term should bring about sustainable population growth, increase life expectancy to 78 years, place Russia among the world's five largest economies, achieve higher than global average economic growth rates, improve environmental protection and most essentially maintain the famous "Putin's macroeconomic stability", which would be difficult to accomplish under the constant pressure of sanctions.

Putin's national projects have a domestic focus and aim to renovate infrastructure, develop human capital and entrepreneurship, create conditions for comprehensive development of the digital economy amongst other objectives. On the instruction of the President, more than US$ 380 billion — a considerable amount by any measure — has been allocated over the year for these purposes.

The commissioning of a bridge across the Kerch Strait to the annexed Crimea was a prelude to Putin's future success in this field. This large-scale infrastructure project was completed on time, just a week after the inauguration, setting a political precedent, opening up a new logistical channel and creating a great number of jobs in related industries. The successful experience of implementing a particular task in such a difficult economic and foreign policy environment spurred discussions on launching an additional national project to modernise old and build new major infrastructure facilities, such as those built as part of an integrated northern mega-project for gas production and liquefaction in the Yamal Peninsula, north of the Arctic Circle, which reinforces Russia's status as an energy leader in the Arctic.

Today, many things depend on geopolitics and infrastructure — however, it is the financial sector that continues to be the lifeblood of the modern world. Accordingly when taking stock of the first year of Putin’s 4th term, it is necessary to take into account his financial policies. Despite heavy external pressure and negative attitude of the majority of Russians towards the government's economic team, Putin managed to keep the ruble stable, contributing to overall macroeconomic stability against a backdrop of a sharp decline in other national currencies.

A new round of devastating sanctions by the US financial authorities announced this spring only temporarily slowed down a series of successful placements of Russian government bonds. Besides, as the US has been holding off on introducing the new set of sanctions, the demand for Russia's government debt obligations from foreign investors has only increased due to their high yield. In March and April, non-resident investments in Russia's debt obligations grew by more than 15%, exceeding the value of US$ 7.5 billion. Also noteworthy is Russia's surplus budget generated in 2018. Today, even skeptical experts give an optimistic forecast for the Russian budget until 2020. Thus, Putin's provident budget policy helped him to comply with his ambitious pledges in the social sphere despite massive external pressure without resorting to populism whilst simultaneously ensuring macroeconomic stability and a stable ruble exchange rate. All of the above can objectively be called Putin's achievements during the first year of his fourth term of office.

But improving the perceived well-being of Russia's population, which has been falling over the recent few years, has been a real headache for the Russian leadership. Putin seemed to realise that the only way to deal with this issue is to stabilise the country's relations with the West. Better cooperation would benefit both sides, and this is understood by a number of actors in Western countries. Austria is signing another contract with Gazprom up to 2040; Germany, despite considerable pressure from the United States, continues to support the construction of Nord Stream 2, viewing it as an exclusively commercial rather than geopolitical project.

Many countries supporting Euro-Atlantic solidarity also believe cooperation with Russia is mutually beneficial. Hungary and Turkey seek to strengthen their energy security through new units of their nuclear power plants built by Russia's Rosatom Corporation, which during the last two presidential terms of Vladimir Putin has become a world leader in the nuclear power market. The business communities of Italy and France have also called for lifting sanctions, as European companies have lost an estimated €100 billion since they were imposed, arguing that Europe has failed to attain the political goals it had set, paying a steep price for no political achievement.

Security remains the Russian leader's strong point. Putin, for his part, has repeatedly indicated that he is ready to search for compromise and engage in equal and mutually beneficial dialogue, yet will never sacrifice Russia's sovereignty and national interests. This was demonstrated at the Helsinki summit between Putin and Trump held in summer 2018, where the Russian President put forward a number of arms control proposals, including one on negotiating nuclear arms limitation. Despite Russia's nuclear arsenal and a range of new weapons commissioned over the past year, Putin showed initiative and, guided by the logic of global security and stability, forewent geopolitical ambitions and mistrust towards the United States fostered by his many years' KGB experience. However, six months later, President Trump’s administration answered by the decision to suspend the country's participation in the INF Treaty, thus undermining the strategic stability so often cited by them and virtually sending the world 30 years back to the epoch of James Bond and the Cold War.

In conclusion, it was presidential elections in the neighbouring Ukraine that delivered Putin a surprise public relations coup. Former President Petro Poroshenko appeared to have chosen Russia as his personal enemy, and throughout his electoral campaign appealed to Ukrainian people with a "Me or Putin" slogan. But in the second round of the election the voters favoured Volodymyr  Zelensky who won the presidential elections with 73%.  Whilst it is too early to make far reaching conclusions about the result, what is clear is that Poroshenko’s anti-Putin platform achieved nothing and this provides food for thought. Whether you like it or not, the era of Putin marches on.


Cars and pavements washed away as Belgian town hit by worst floods in decades




The southern Belgian town of Dinant was hit by the heaviest floods in decades on Saturday (24 July) after a two-hour thunderstorm turned streets into torrential streams that washed away cars and pavements but did not kill anyone, writes Jan Strupczewski, Reuters.

Dinant was spared the deadly floods 10 days ago that killed 37 people in southeast Belgium and many more in Germany, but the violence of Saturday's storm surprised many.

"I have been living in Dinant for 57 years, and I've never seen anything like that," Richard Fournaux, the former mayor of the town on the Meuse river and birthplace of the 19th century inventor of the saxophone, Adolphe Sax, said on social media.

A woman works to recover her belongings following heavy rainfall in Dinant, Belgium July 25, 2021. REUTERS/Johanna Geron
A woman walks in an area affected by heavy rainfall in Dinant, Belgium July 25, 2021. REUTERS/Johanna Geron

Rainwater gushing down steep streets swept away dozens of cars, piling them in a heap at a crossing, and washed away cobbles stones, pavements and whole sections of tarmac as inhabitants watched in horror from windows.

There was no precise estimate of the damage, with town authorities predicting only that it would be "significant", according to Belgian RTL TV.

The storm wreaked similar havoc, also with no loss of life, in the small town of Anhee a few kilometres north of Dinant.

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Czech Republic

NextGenerationEU: European Commission endorses Czechia's €7 billion recovery and resilience plan



The European Commission has today (19 July) adopted a positive assessment of Czechia's recovery and resilience plan. This is an important step towards the EU disbursing €7 billion in grants under the Recovery and Resilience Facility (RRF). This financing will support the implementation of the crucial investment and reform measures outlined in Czechia's recovery and resilience plan. It will play a key role in helping Czechia emerge stronger from the COVID-19 pandemic.

The RRF is at the heart of NextGenerationEU which will provide €800bn (in current prices) to support investments and reforms across the EU. The Czech plan forms part of an unprecedented co-ordinated EU response to the COVID-19 crisis, to address common European challenges by embracing the green and digital transitions, to strengthen economic and social resilience and the cohesion of the Single Market.

The Commission assessed Czechia's plan based on the criteria set out in the RRF Regulation. The Commission's analysis considered, in particular, whether the investments and reforms set out in Czechia's plan support the green and digital transitions; contribute to effectively addressing challenges identified in the European Semester; and strengthen its growth potential, job creation and economic and social resilience.


Securing Czechia's green and digital transition  

The Commission's assessment of Czechia's plan finds that it devotes 42% of its total allocation to measures that support climate objectives. The plan includes investments in renewable energy, the modernisation of district heating distribution networks, the replacement of coal-fired boilers and improving the energy efficiency of residential and public buildings. The plan also includes measures for nature protection and water management as well as investment in sustainable mobility.

The Commission's assessment of Czechia's plan finds that it devotes 22% of its total allocation to measures that support the digital transition. The plan provides for investments in digital infrastructure, the digitalization of public administration, including the areas of health, justice and the administration of construction permits. It promotes the digitalisation of businesses and digital projects in the cultural and creative sectors. The plan also includes measures to improve digital skills at all levels, as part of the education system and through dedicated upskilling and reskilling programmes.

Reinforcing Czechia's economic and social resilience

The Commission considers that Czechia's plan effectively addresses all or a significant subset of the economic and social challenges outlined in the country-specific recommendations addressed to Czechia by the Council in the European Semester in 2019 and in 2020.

The plan provides for measures to tackle the need for investment in energy efficiency and renewable energy sources, sustainable transport and digital infrastructure. Several measures aim at addressing the need to foster digital skills, improve the quality and inclusiveness of education, and to increase the availability of childcare facilities. The plan also provides for improving the business environment, mainly through extensive e-government measures, a reform of the procedures of granting construction permits and anti-corruption measures. Challenges in the area of R&D shall be improved by investment geared at strengthening public-private cooperation and financial and non-financial support to innovative firms.

The plan represents a comprehensive and adequately balanced response to Czechia's economic and social situation, thereby contributing appropriately to all six pillars referred to in the RRF Regulation.

Supporting flagship investments and reform projects

The Czech plan proposes projects in all seven European flagship areas. These are specific investment projects which address issues that are common to all member states in areas that create jobs and growth and are needed for the twin transition. For instance, Czechia has proposed €1.4bn to support the energy efficiency renovation of buildings and €500 million to boost digital skills through education and investments in upskilling and reskilling programmes for the entire labour force.  

The Commission's assessment finds that no measure included in the plan does any significant harm to the environment, in line with the requirements laid out in the RRF Regulation.

The arrangements proposed in the recovery and resilience plan in relation to control systems are adequate to prevent, detect and correct corruption, fraud and conflicts of interests relating to the use of funds. The arrangements are also expected to effectively avoid double funding under that Regulation and other Union programmes. These control systems are complemented by additional audit and control measures contained in the Commission's proposal for a Council Implementing Decision as milestones. These milestones must be fulfilled before Czechia presents its first payment request to the Commission.

President Ursula von der Leyen said: “Today, the European Commission has decided to give its green light to Czechia's recovery and resilience plan. This plan will play a crucial role in supporting a shift towards a greener and more digital future for Czechia. Measures that improve energy efficiency, digitalize public administration and deter the misuse of public funds are exactly in line with the objectives of NextGenerationEU. I also welcome the strong emphasis the plan places on strengthening the resilience of Czechia's health-care system to prepare it for future challenges. We will stand with you every step of the way to ensure that the plan is fully implemented.

Economy Commissioner Paolo Gentiloni said: “Czechia's recovery and resilience plan will provide a strong boost to the country's efforts to get back its feet after the economic shock caused the pandemic. The €7bn in NextGenerationEU funds that will flow to Czechia over the next five years will support a wide-ranging programme of reforms and investments to build a more sustainable and competitive economy. They include very sizeable investments in building renovation, clean energy and sustainable mobility, as well as measures to boost digital infrastructure and skills and the digitalisation of public services. The business environment will benefit from the promotion of e-government and anti-corruption measures. The plan will also support improvements in healthcare, including reinforced cancer prevention and rehabilitation care.”

Next steps

The Commission has today adopted a proposal for a Council Implementing Decision to provide €7bn in grants to Czechia under the RRF. The Council will now have, as a rule, four weeks to adopt the Commission's proposal.

The Council's approval of the plan would allow for the disbursement of €910m to Czechia in pre-financing. This represents 13% of the total amount allocated to Czechia.

An Economy that Works for People Executive Vice President Valdis Dombrovskis said: “This plan will put Czechia on the path to recovery and boost its economic growth as Europe gears up for the green and digital transitions. Czechia intends to invest in renewable energy and sustainable transport, while improving the energy efficiency of buildings. It aims to roll out greater digital connectivity across the country, promote digital education and skills, and digitalize many of its public services. And it places a welcome focus on improving the business environment and justice system, backed by measures to fight corruption and promote e-government – all in a balanced response to the Czech economic and social situation. Once put properly into practice, this plan will help to put Czechia on a sound footing for the future.”

The Commission will authorize further disbursements based on the satisfactory fulfilment of the milestones and targets outlined in the Council Implementing Decision, reflecting progress on the implementation of the investments and reforms. 

More information

Questions and answers: European Commission endorses Czechia's recovery and resilience plan

Recovery and Resilience Facility: Questions and answers

Factsheet on Czechia's recovery and resilience plan

Proposal for a Council Implementing Decision on the approval of the assessment of the recovery and resilience plan for Czechia

Annex to the Proposal for a Council Implementing Decision on the approval of the assessment of the recovery and resilience plan for Czechia

Staff-working document accompanying the proposal for a Council Implementing Decision

Recovery and Resilience Facility

Recovery and Resilience Facility Regulation

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Death toll rises to 170 in Germany and Belgium floods



The death toll in devastating flooding in western Germany and Belgium rose to at least 170 on Saturday (17 July) after burst rivers and flash floods this week collapsed houses and ripped up roads and power lines, write Petra Wischgoll,
David Sahl, Matthias Inverardi in Duesseldorf, Philip Blenkinsop in Brussels, Christoph Steitz in Frankfurt and Bart Meijer in Amsterdam.

Some 143 people died in the flooding in Germany's worst natural disaster in more than half a century. That included about 98 in the Ahrweiler district south of Cologne, according to police.

Hundreds of people were still missing or unreachable as several areas were inaccessible due to high water levels while communication in some places was still down.


Residents and business owners struggled to pick up the pieces in battered towns.

"Everything is completely destroyed. You don't recognise the scenery," said Michael Lang, owner of a wine shop in the town of Bad Neuenahr-Ahrweiler in Ahrweiler, fighting back tears.

German President Frank-Walter Steinmeier visited Erftstadt in the state of North Rhine-Westphalia, where the disaster killed at least 45 people.

"We mourn with those that have lost friends, acquaintances, family members," he said. "Their fate is ripping our hearts apart."

Around 700 residents were evacuated late on Friday after a dam broke in the town of Wassenberg near Cologne, authorities said.

But Wassenberg mayor Marcel Maurer said water levels had been stabilising since the night. "It's too early to give the all-clear but we are cautiously optimistic," he said.

The Steinbachtal dam in western Germany, however, remained at risk of breaching, authorities said after some 4,500 people were evacuated from homes downstream.

Steinmeier said it would take weeks before the full damage, expected to require several billions of euros in reconstruction funds, could be assessed.

Armin Laschet, state premier of North Rhine-Westphalia and the ruling CDU party's candidate in September's general election, said he would speak to Finance Minister Olaf Scholz in the coming days about financial support.

Chancellor Angela Merkel was expected to travel on Sunday to Rhineland Palatinate, the state that is home to the devastated village of Schuld.

Members of the Bundeswehr forces, surrounded by partially submerged cars, wade through the flood water following heavy rainfalls in Erftstadt-Blessem, Germany, July 17, 2021. REUTERS/Thilo Schmuelgen
Austrian rescue team members use their boats as they go through an area affected by floods, following heavy rainfalls, in Pepinster, Belgium, July 16, 2021. REUTERS/Yves Herman

In Belgium, the death toll rose to 27, according to the national crisis centre, which is co-ordinating the relief operation there.

It added that 103 people were "missing or unreachable". Some were likely unreachable because they could not recharge mobile phones or were in hospital without identity papers, the centre said.

Over the past several days the floods, which have mostly hit the German states of Rhineland Palatinate and North Rhine-Westphalia and eastern Belgium, have cut off entire communities from power and communications.

RWE (RWEG.DE), Germany's largest power producer, said on Saturday its opencast mine in Inden and the Weisweiler coal-fired power plant were massively affected, adding that the plant was running at lower capacity after the situation stabilized.

In the southern Belgian provinces of Luxembourg and Namur, authorities rushed to supply drinking water to households.

Flood water levels slowly fell in the worst hit parts of Belgium, allowing residents to sort through damaged possessions. Prime Minister Alexander De Croo and European Commission President Ursula von der Leyen visited some areas on Saturday afternoon.

Belgian rail network operator Infrabel published plans of repairs to lines, some of which would be back in service only at the very end of August.

Emergency services in the Netherlands also remained on high alert as overflowing rivers threatened towns and villages throughout the southern province of Limburg.

Tens of thousands of residents in the region have been evacuated in the past two days, while soldiers, fire brigades and volunteers worked frantically throughout Friday night (16 July) to enforce dykes and prevent flooding.

The Dutch have so far escaped disaster on the scale of its neighbours, and as of Saturday morning no casualties had been reported.

Scientists have long said that climate change will lead to heavier downpours. But determining its role in these relentless rainfalls will take at least several weeks to research, scientists said on Friday.

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