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From the Editor’s Desk During the past eighteen years, Europe has experienced two distinct trends. After the end of cold war, a section of Europe merged together and gave up their concept of homogeneous population concept. In fact, European Union today is as diversified as India was in 1950s. Slowly, even the concept of common currency is gaining acceptability across the Europe. This emerging interdependence among EU members is on the rise. In this process, questions like the EU’s legitimacy, identity, sovereignty and welfare have arisen. With Indian experience in this unique political experiment, we feel only time will resolve these inter related issues. We feel these issues are arising because of intra community dynamics and post cold war developments. At another level, some of the closest friends of India became fragmented. A multi ethnic country like Yugoslavia getting divided made many in India unhappy. So was the case with former Czechoslovakia getting divided into two, no doubt peacefully. In addition, the expansion of North Atlantic Treaty Organisation (NATO) added its own momentum to the geo-politics. In countries like Turkey to become a member of NATO became a national priority. All this indicate substantial changes in the EU dynamics in the coming years. This had sent its own ripples across rest of Europe. The recent Russian responses to some of these developments is quite sharp. From the Indian perspective, developments in Europe had its own implications for its own security and economic development. Though EU’s trade and investments in India is less than two percent of its total, EU does occupy an important place in India’s trade and foreign investments. For instance, Indo-EU trade in 2006 has reached over US $ 45 billion. In addition, the security concerns of EU on issues like terrorism and violence became part and parcel of Indo-EU strategic dialogue. In the process, during the past decade or so, learning about Brussels’ bureaucracy and its style became a compulsory learning for administrators and intellectuals in India. We, at World Focus thought that it is in this changing geo-political environment, a detailed look at some of the issues facing EU by Indian scholars is needed. We want to take this opportunity to regret the printing of Asia map and not of South Asia with occupied territories marked on the cover page of our August 2007 issue. New Delhi G. Kishore Babu September 2007 Editor

Europe – Eighteen Years Later

A. K.  Banerjee

18    years after the fall of the Berlin wall, EU comprising 27 independent member states has emerged as an independent player in world politics. As a unified entity, EU upholds a democratic system, private enterprise and a common foreign and security policy. This stand out as an example to others. This unification has been achieved by redrawing the political map of Europe and working together in support of shared goals.

Rise of EU parallels the emerging new stature of India in the post Cold war period. This has led to mutual recognition and establishment of strategic dialogue. This dialogue has thrown up new dynamics in these relations. There is an India-EU dimension and there is the dimension of India’s bilateral ties with individual member states. Major EU members balance them ties with India on both counts while the smaller states are having to choose, with many preferring the EU route. In these changing times when forces unleashed by globalisation are putting pressure on existing state structures, the India-EU relationship is a major stabilising influence in world politics.

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Atlanticism in Disarray: Britain, Europe

and America in 21st Century

Dr. Purusottam Bhattacharya

Transatlantic relations are no longer what they used to be in the heydays of the early decades of the post Second World War era. The bitter diplomatic row between the United States and its allies led by Britain on the one hand and France, Germany and their allies in Europe on the other, preceding the Iraq war in February-March 2003 left deep scars which are yet to be healed. While the links between the two sides of the Atlantic continue to be important these have undergone profound changes and the old transatlantic community is giving way to ad hoc bilateral arrangements between US and some European countries.

The only European country of political and military substance which gave wholehearted support to the American decision to invade Iraq in March 2003 was Britain. British decision to side with America in the aftermath of 9/11 and especially in the Iraq war frustrated the plan of Prime Minister Tony Blair at the start of his premiership to improve Britain’s relations with ‘core’ Europe led by France and Germany.

In the days to come differences of perception and approaches would continue to persist between Europe led by France and Germany and the United States. The British position in this conundrum is particularly delicate caught as it is between its European compulsions and its traditional close ties with the United States. There are calls for a fundamental re-evaluation of the benefits of the American connection to Britain. With the European Union also exposed to divisions within its ranks during the transatlantic crisis the Atlantic community has entered an era of new priorities and the consequent need for adjustment and accommodation.

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Luguvoi Controversy: Implications

for Russia-EU Relations

Dr. Debidatta Aurobinda Mahapatra

The article argues that unless the recent diplomatic stand off between the EU and Russia is addressed amicabl,y the crisis may further exacerbate and turn the whole Eurasian region into a zone of uncertainty. The recent diplomatic chill related to extradition of Luguvoi, a Russian citizen accused by the UK for the murder of Litivenko, a British citizen has much to do with the perception of each other, mostly shaped  by cold war mentality, and less to do with extradition as such. While, Russia is indignant of the NATO’s and the EU’s eastward expansion and the proposed anti-ballistic shield in Europe, the West is indignant about violation of human rights and democratic situation in Russia. Any polarization between the EU and Russia augurs well neither for Russia nor for the EU, as both are dependent on each other. While the EU depends on Russia mostly for its energy requirements, Russia needs investments form EU for its markets.

Russia-EU relations have acquired a new dimension after the Luguvoi controversy, which started as an extradition issue but later turned into a ‘diplomatic war’. The rivalry of the cold war era seems to have returned with London declaring suspension of four Russian diplomats on non-compliance of its demand to extradite Andrei Luguvoi, allegedly involved in the murder of former spy, Alexander Litivenko. The British insistence has been met by Russian rejection of the demand on the ground that its constitution does not permit extradition. The diplomatic row has wide ranging implications not only for Russia-UK relations, but also for Russia-EU relations. The following article would focus on Luguvoi controversy and its varied aspects and also analyze its implications on Russia-EU relations.

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India, the European Union and the World Trade Organisation: A Critical  Appraisal

Dr. O.P. Sharma

The economic reforms in India and policy changes in EU including successive Enlargements along with developments in WTO have been instrumental in increasing India’s exports. The initiative in Doha Round with emphasis on development dimension raised hopes in India and other developing countries for reducing poverty through higher trade flows emanating from better market access and elimination of distortions in international trade in the huge EU market of 460 million people. However, the intransigence of developed countries, particularly EU and USA, has belied these hopes as these countries persist with high subsidies and tariffs adversely affecting India’s exports. The EU needs to speed up CAP reforms and along with USA eliminate  domestic support and minimise trade barriers to fulfil the basic objective of Doha Round.

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European Union: Dynamics and

Implications of Integration

Dr. Jayaraj Amin

European Union, with its own identity, is a major player today in European scenario performing wide-ranging activities as well as sustaining and promoting formal and informal interactions. The network transaction it has facilitated has resulted in complex economic interdependence among member states with significant external impact. Integration triggered both by design and default, however, has yielded results beyond the hold of nation states. While the ‘security’ and economic progress is promoted by cooperative endeavour, EU region has witnessed over the years significant transfer of power to EU as well as to market forces, affecting the relative autonomy of nation states to pursue their goals independently. The internal liberalization has raised questions and debate on EU legitimacy, identity, sovereignty and welfare.

Of late integration, both vertical and horizontal, prompted by intra-community dynamics, post Cold War developments and globalisation has witnessed expansion of EU responsibilities on one hand and constraints owing to identity factors and market forces on the other. With integration now touching core areas of sovereignty internal differences have become difficult to conceal and conflicts have come to the fore especially with regard to evolving nature and role of EU. Increased assertion of EU anchoring on broad principles of liberal democracy and market economy to expand the scope of EU has not swayed people at large as evident in the rejection of EU constitution in the French and Dutch referendum. EU, therefore, has to innovatively bridge this apparent gap between economic and politico/cultural integration. The efforts to cross the tide are on.

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Old Europe Versus New Europe:

An Old or New Problem?

Dr. Ummu Salma Bava

 

The emergence of the EU as an undisputed economic actor (its presence in the WTO endorses that) and as an emerging political actor has challenged the way political power and political values is organised within specific boundaries of the state and how they are being endorsed. The EU is not only about multi-level governance, but also about multilateralism, soft power and a normative identity building. And therein is the fundamental difference between the two sides of the Atlantic. While the US has aggressively pursued its national interest, West Europe since the end of World War II has witnessed the longest period of peace in its collective history and individual pursuit of national interest has given way to collective interest articulation. These positions have created different views on both sides of the Atlantic with respect to how world order should be created and managed or in other words how global governance should take place.

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India and the European Union

Dr. Rajendra K. Jain

         India’s initial objectives in establishing diplomatic relations with the European Economic Community (EEC) was to secure better access to the Community market and safeguard its access to the UK market in the wake of the British application to join the EEC. Since the conclusion of the non-preferential commercial agreement in 1973, sectoral cooperation with the EEC/European Union (EU) was subsequently expanded both in its content and scope by subsequent agreements in June 1981 and a wide-ranging “third generation” agreement in 1994.

The EU is India’s largest trading partner accounting for about a fifth of India’s total foreign trade, amounting to around € 46 billion in 2006. The European Union has also been the largest source of FDI inflows since economic reforms were initiated in 1991. During August 1991 to 2003, actual FDI from the European Union to India was € 6.2 billion. Numerous Indian companies have also raised Euro-funds to decrease loan liabilities and high interest burdens and to improve efficiency of capital. Sectorally, the EU has a substantial financial stake in industrial machinery, transport, electrical goods and electronics, power/energy, telecommunications, and transport, chemicals and consultancy. In recent years, thanks to the emergence of a number of multinational players at the global level, India is now also emerging as a major investor itself, especially in areas like IT. Since 1976, the European Commission has committed € 2 billion to India in development assistance.

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