Russia will seek influence in Moldova's Gagauz region

Significance However, the June 14 local elections resulted overall in the pro-European parties winning 56.5%, with the pro-Russians securing 31.5%. The result will be a relief for the pro-European camp, which had feared that the ongoing banking scandal -- which has seen 1 billion dollars go missing and the resignation on June 12 of Prime Minister Chiril Gaburici -- could portend an upsurge in support for pro-Russian groups. However, despite the pro-European win, Moldova's Gagauz region remains one of Russia's strongest supporters and will remain a potential pressure point. Impacts Russia's enduring prominence in Gagauzia's political landscape will give Moscow a foothold in Moldovan politics. Russia's interest in Moldovan politics will prompt Moldovan supporters of European integration to speed up that process. The EU will have to continue to support Moldova's economy, if only to match Russia's economic support for Gagauzia.

Significance In the political battle between Prime Minister Edi Rama and President Ilir Meta, parliament -- which is dominated by Rama’s Socialist Party (PS) -- wants to impeach the president following his attempt to cancel the June 30 local elections. Meta’s move was prompted by the decision of the main opposition parties, including the centre-right Democratic Party (PD), to boycott the poll. Impacts Failure to resolve the political crisis will delay the opening of Albania’s accession talks with the EU. The political uncertainty will dampen economic growth, which slowed markedly in the first quarter of 2019. A deteriorating business environment will weaken foreign direct investment inflows. If economic performance remains subdued, it could result in more Albanian migrants seeking work abroad.


Significance Although former Prime Minister Matteo Renzi is confident of winning, the PD, condemned after the 2013 general election to govern Italy without a majority, has faced growing problems of cohesion and electoral credibility since last December’s referendum defeat. Impacts Local elections in June will indicate electoral sentiment towards the PD and M5S ahead of the general election in early 2018. Continued weak economic performance is fuelling populist sentiment and tying government hands. Tensions with the EU could increase when the government presents its 2018 budget later this year.


Subject Politics after Bulgaria's local elections. Significance Prime Minister Boyko Borisov's centre-right Citizens for Bulgaria's European Development (GERB) now has mayors in 22 out of 28 regional centres, while the Socialist Party (BSP), its main opposition rival, ended up without any for the first time since 1990. However, only one-third of local councils nationwide will be controlled by GERB, forcing it to negotiate coalitions in the three biggest cities -- Sofia, Plovdiv and Varna. This mostly signifies the rising importance of non-party electoral blocs that are coalescing around prominent local businesses. Impacts Real GDP growth of 2.9% year-on-year in the third quarter, boosted by EU funds, will flatter GERB management of the economy. Pressure on the budget is likely to increase, Borisov repeatedly showing himself open to lobbying from interest groups, such as the police. Bulgaria will continue to follow Germany's lead in the EU, hoping for smooth delivery of EU funding in return. The tough line on migrants will continue; the public solidly backs a government that has largely dissuaded use of the Bulgarian route.


Significance As many as a dozen lockdown parties are now alleged to have been held at Downing Street, significantly damaging Johnson’s support among the public and his Conservative Party. His position as party leader and prime minister is gravely threatened. Impacts Johnson’s domestic troubles, coupled with rising economic concerns, increase the chance of an agreement with the EU over Northern Ireland. Disillusionment with Johnson, opposition to net-zero and culture wars open the door for Nigel Farage’s Reform Party to revive its appeal. Rising inflation threatens to undermine consumer confidence and slow the economic recovery over the coming year.


Significance He did not name a new prime minister. Over July 25-26, Saied dismissed Prime Minister Hicham Mechichi, dissolved his government, suspended parliament for 30 days, lifted parliamentary immunity and declared himself chief prosecutor, triggering Tunisia’s worst political crisis in a decade. Impacts The Ennahda party could be persecuted once again, this time on corruption charges, as the reconciliation offered excludes its members. Tunisia may become a new ideological battleground, pitting Turkey and Qatar against the United Arab Emirates (UAE), Saudi Arabia and Egypt. The EU, the United States and Algeria have some influence on Tunisia and could perhaps play a moderating role.


Significance The government led by the Slovenian Democratic Party (SDS) is under mounting pressure as Slovenia prepares to take over the European Council presidency. This is due mainly to hostility in parliament and society to Prime Minister Janez Jansa, who promotes a popular but divisive form of national conservatism. Impacts A successful no-confidence vote in the government followed by early elections would complicate Slovenia’s handling of its EU presidency. The fall of the current government and its replacement by the centre-left would improve Slovenia’s relations with the EU and United States. Hungarian Prime Minister Viktor Orban would lose an ally at EU level if Jansa lost office.


Significance Government formation should have been relatively straightforward but a series of political controversies have damaged VVD leader and Dutch Prime Minister Mark Rutte’s credibility with the CU and some opposition parties. Impacts The collective rise of the far-right vote means the far right will continue to worry centrist parties and thus influence government policy. Investment in nuclear energy to meet climate targets is unlikely to be a priority for the new government. Dutch influence in the EU could grow with the departure of Merkel in September, and Macron’s focus on the 2022 election.


Significance King Mohammed VI has committed forces to the Saudi-led coalition conducing operations in Yemen to reinforce the alliance with Gulf states. It may be because of these ties that Morocco's Islamist Justice and Development Party (PJD) survived the regional political backlash against the Muslim Brotherhood -- with which the PJD has some parallels, but no formal links. Prime Minister and PJD leader Abdelilah Benkirane has developed a close working relationship with King Mohammed and the royal court. With the economy performing well, Benkirane's chances of prolonging his mandate look promising. Impacts Local elections will signal the level of popular support for the PJD. If Benkirane retains the premiership post-2016, he may seek a more prominent role for the PJD -- in cabinet and the civil service. This could bring him into conflict with the king.


Subject The Hungarian government's anti-immigration stance. Significance Prime Minister Viktor Orban and his government have been campaigning against the wave of migrants seeking refuge in Europe, and the EU's handling of the resulting crisis. The government hoped a referendum on October 2 would reject EU settlement of non-Hungarians in Hungary without parliament's consent. With a turnout of less than 50%, the referendum is null and void. Orban's Fidesz party nevertheless claimed victory, as 98.6% of those who cast a valid vote opposed relocation. Impacts The opposition to Fidesz will be able to frame the referendum as its first victory since 2010 and try to build unity on that basis. Fidesz will be unable to extend its popular support on the basis of these results. The EU is unlikely to react forcefully to constitutional amendments in Hungary, given Brexit and elections in France and Germany.


Subject The package of reforms on a new EU-UK relationship. Significance The agreement between the United Kingdom and its EU partners sets the stage for the UK referendum on EU membership, which Prime Minister David Cameron has set for June 23. Cameron said he had negotiated new terms that would allow the United Kingdom to remain in the EU. Impacts The deal bolsters the campaign to remain in the EU, but the referendum outcome is still highly uncertain. The deal will only come into effect if the outcome is for remaining, forestalling a second referendum for better terms. If the outcome is for leaving, a new relationship with the EU would have to be negotiated during a two-year transition period. It would also probably lead to a second Scottish independence referendum and UK break-up.


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