Why Europe and India want to get closer
Audio 04:00
European Council President Charles Michel, European Commission President Ursula von der Leyen and Indian Prime Minister Narendra Modi at a virtual summit in July 2020 © AFP PHOTO / Indian Press Information Bureau (PIB)
By: Dominique Baillard Follow
9 mins
The European Union wants to get closer to India to better resist the rise of China.
Several agreements are in preparation, they could be announced during their virtual summit, scheduled for Saturday, May 8.
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Images of health aid cargo ships landing in India are making headlines right now. The European Union, like the United States and the United Kingdom, is at the bedside of this giant brought down by a new wave of coronavirus. One could almost detect there a form of vaccine diplomacy on the part of the West anxious to reconcile the good graces of the other Asian power, the country at the same time neighbor and rival of China. But in fact, this desire for rapprochement between Europe and India predates the disaster that struck the subcontinent. Europeans have been working on it for months. Yesterday, Ursula von der Leyen, President of the European Commission, spoke at length with Indian Prime Minister Narendra Modi to prepare for the summit on Saturday 8 May. And on Twitter,she said she was encouraged by the prospect of intensifying trade relations.
There is talk of relaunching negotiations to sign a free trade treaty with India
Brussels has worked hard to reactivate this abandoned project for seven years. With the hope of leading to a formal trade treaty, while talks are already underway for a treaty on investment and designations of origin on culinary products. While India is a difficult partner, very reserved on opening up its market. The pandemic has reinforced the aspiration for protectionism and national sovereignty, a climate not really favorable to trade liberalization but the crisis also highlights the need for cooperation and the growing power of China. It is above all to better resist the influence of the Middle Kingdom that both Brussels and New Delhi today want to strengthen their ties.
Cooperation projects in infrastructure
It also involves cooperation projects in infrastructure, somewhat on the model of the Silk Road. Together, Europe and India want to offer third countries financing and know-how in the construction of roads, railways and ports. In short, what China has actually been doing since 2013 with its Silk Road. It is now deployed in 150 countries. The Europeans want to offer an alternative through a partnership with India, guaranteeing more secure access to the often opaque financing offered by Beijing and a quality of work guaranteed by compliance with Western standards. A similar agreement was made between the European Union and Japan in 2019. But, perhaps this is the effect of the pandemic, the results are so far non-existent.The United States and the United Kingdom share this vision, Joe Biden wants the implementation of these alternative networks to the Silk Road to be discussed at the G7 scheduled for June in Scotland.
The United Kingdom also announces the opening of negotiations with India for an upcoming trade treaty
Boris Johnson and Narendra Modi are due to discuss it today even at an online summit that has already been postponed several times.
Yesterday, the British Prime Minister dangled a trade treaty worth 1000 billion pounds, or 1152 billion euros.
A negligible amount compared to British exports to the world.
London exports more to Sweden or Belgium.
But like Europe, the UK hopes the Chinese threat will make India more flexible and more open to trade.
In short
► Argentina collects 2 billion dollars thanks to an exceptional tax on great fortunes.
The country already in the grip of the financial crisis created this tax to deal with the economic consequences of the pandemic.
Twelve thousand families contributed, or 80% of the richest households in the country.
► Cuba urged by its private creditors to restructure its debt.
The island suffocated by the consequences of the pandemic has stopped repaying its debts for several months.
For money borrowed from states, negotiations should begin within the framework of the Paris club.
His private creditors now want a quick deal to end an eleven-year default.
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