Mauritian incumbent will likely have poll edge

Significance The Alliance, led by Prime Minister Pravind Jugnauth, expects to capitalise on two key events: last month’s launch of the first phase of the Metro Express, a 525-million-dollar light railway system part-funded by India that connects the capital Port Louis with outlying commuter towns; and a prospective money-laundering court case against former Prime Minister Dr Navin Ramgoolam, leader of the opposition Mauritius Labour Party (PTr). Impacts MMM fortunes could rest on whether former supporters who abstained or looked elsewhere in the 2014 poll return to the fold. Low crime rates, prime real estate and private education facilities will remain a key draw for expatriates over other African locations. The return of a Conservative government in the United Kingdom would likely see a continuation of current policy on the Chagos Islands.

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.


Subject Anglo-French agreement to fund the next phase of their collaborative drone programme. Significance The accord announced at the Amiens summit on March 3 between French President Francois Hollande and UK Prime Minister David Cameron commits the two countries to investing 1.9 billion euros (2.1 billion dollars) in the production of Europe's most advanced combat drone. A sophisticated drone programme will be vital to both countries' industrial bases, especially as neither currently has plans to develop a next generation fighter aircraft to replace the Typhoon or Rafale. Impacts Closer industrial cooperation between Europe's most advanced defence powers will strengthen European capabilities. The project will underpin growing cooperation in the defence and security field between the United Kingdom and France. A possible Brexit could affect the relationship, and the United Kingdom might lose out on an increasing EU R&D budget devoted to defence.


Significance It includes large federal stimulus spending to spur economic growth and to alleviate the worst impacts of the collapse in global commodity prices, particularly oil. The budget represents a break on the part of Prime Minister Justin Trudeau with the prevailing orthodoxy around fiscal austerity and reliance on central bank monetary policy to support growth. Impacts Small business tax rates remain unchanged from levels set by the previous Conservative government. Troubled Quebec aerospace firm Bombardier may receive a federal bailout. Post-election leadership questions surrounding the Conservatives and NDP provide Trudeau with a weakened opposition for the time being. Ambitious federal projections of revenues recovered from tax havens and arrears are unlikely to be realised.


Subject The political impact of the 'Panamagate' scandal. Significance A five-member Supreme Court bench on April 20 ordered the constitution of a Joint Investigation Team (JIT) to probe the legitimacy of the offshore assets (mostly in the United Kingdom and Qatar) of Prime Minister Nawaz Sharif and his family. In coming months, the Court bench will monitor and oversee the investigation in which both civilian law enforcement and military intelligence will participate. Impacts The government will avoid challenging the military’s foreign policy this year. The scandal will increase pressure on the political elite to ensure public probity. A military coup is highly improbable at present.


Significance Prime Minister Boris Johnson talks of a “calibrated” China policy that combines toughness in particular areas with continued engagement in others. Impacts Migration of Hongkongers to the United Kingdom in large numbers would invigorate anti-Beijing activism. Chinese investments in UK nuclear power are unlikely to proceed as planned. Beijing’s extraterritorial attempts to suppress dissent in the United Kingdom will intensify. Universities and researchers should expect a push for government-mandated reviews of UK-China research and educational partnerships. Beijing may target particular firms or economic sectors to ‘punish’ London, but most bilateral trade will continue.


Subject Prospects for Europe in the second quarter. Significance This quarter will see highly contentious, high-stakes politics that could shape the future of the EU for years to come. First, a decision point is fast approaching that will determine whether Greece will continue to receive bailouts or be cut off from EU support, default on its debt and -- potentially -- exit the euro-area. Second, the United Kingdom could re-elect a Conservative government, which would then follow through on its vow to hold an 'in-out' referendum on EU membership by 2017. Finally, the EU faces a crucial test of unity against its greatest external threat -- Russia.


Subject Recent developments in Japanese foreign policy. Significance This month has seen a flurry of high-level diplomatic activity. Prime Minister Shinzo Abe has visited Germany, France, Italy, Belgium and the United Kingdom and Russia. Over the same period, Foreign Minister Fumio Kishida visited China, Myanmar, Thailand, Laos and Vietnam. Impacts Except for Washington, G7 governments have more interest in economic ties with Beijing than in Tokyo's concerns about territorial issues. Japan's willingness to engage Russia may draw the West's ire in due course. The process of relocating the Futenma airbase may drag on for another decade. TPP ratification will be slower than Abe wanted, but US politics is the greatest obstacle. A weakened South Korean administration could find itself pushed into a more hostile approach to Tokyo.


Subject Brexit outlook. Significance If Prime Minister Theresa May can get the Withdrawal Agreement (WA) and Political Declaration on future relations approved in Parliament this week, the United Kingdom should leave the EU on May 22. However, it remains unlikely that her deal will gain a parliamentary majority, setting up a different deadline. The United Kingdom must come up with an alternative plan by April 12 or face the prospect of crashing out of the EU with no deal. Impacts The United Kingdom could have a new prime minister within weeks; a general election cannot be ruled out. The EU will remain distracted by Brexit as it heads into a season of political change beginning with European Parliament elections in May. As a final option, May could commit to resigning to get support for the WA from Conservative Party MPs.


Significance The bill establishes a new statutory regime for goods and services trade within the United Kingdom, which is essential for signing trade agreements. However, it also contains clauses on the Northern Ireland Protocol which threaten to override the legally binding EU-UK Withdrawal Agreement (WA), while giving London new powers over the devolved administrations, including on state aid. Impacts The EU is unlikely to collapse the trade talks with the United Kingdom. An EU-UK deal is still possible because the alternative would seriously threaten Prime Minister Boris Johnson’s political survival. The new bill, on top of COVID-19, will give the opposition Labour Party an opportunity to overtake the Conservatives in the polls.


Significance They are intended to set the framework for the future economic relationship between the United Kingdom and the EU. However, they have become a source of deep political division and mistrust, exacerbating concerns about the future of their political and economic relationship. Impacts A further deterioration in UK-EU trade relations would threaten to undermine peace and stability in Northern Ireland. Negative trade news is unlikely to shift opinions significantly on Brexit or support for Prime Minister Boris Johnson. UK hostility towards defence and security cooperation underpinned by EU institutional arrangements will remain strong.


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