Headline News: 26/08/2022

Headlines:

• Europe on the Brink: The States Battling to Stave off Recession

• US Warns of Sanctions Against Turkey over Russia Ties

• Pakistan Approves Agreement Draft to Provide Troops for World Cup

Details:

Europe on the Brink: The States Battling to Stave off Recession

Almost six months after Vladimir Putin ordered Russian troops into Ukraine, the extent of the damage to the European economy is becoming clear. The red lights of recession are flashing. The eurozone’s big four economies – Germany, France, Italy and Spain – have all had their growth forecasts for 2023 downgraded by the International Monetary Fund, as a combination of the war and higher interest rates put a brake on activity. In the UK, inflation is above 10% for the first time in 40 years as households struggle with rising energy bills. The Bank of England forecasts inflation will peak above 13% in autumn after a fresh increase in energy costs, while the economy will fall into a lengthy recession. While Britain is contending with additional pressures from Brexit, the impact of soaring energy prices, supply chain disruption, shortages of workers and drought are also hitting the rest of Europe. Analysts at the Economist Intelligence Unit say the pain could go on for some time, because countries must wean themselves off Russian hydrocarbons, and building up renewables as an alternative will take time. “In the near term we expect a recession in Europe in the winter of 2022-23 as a result of energy shortages and sustained elevated inflation”, the EIU said. “The winter of 2023-24 will also be challenging, and so we expect high inflation and sluggish growth until at least 2024.” [Source: The Guardian]

America has adroitly used the proxy war against Russia in Ukraine to also weaken Europe. The cornerstone of the EU is Germany and the US has coerced the country to move away from Russian gas. By doing so, Germany is on the precipice of economic destruction, which will gravely undermine the European project. Through weakening the EU, the US aims to replace multilateral agreements with the EU with bilateral agreements with member states.

US Warns of Sanctions against Turkey over Russia Ties

Turkey’s top business association has confirmed receiving a letter from the US Treasury warning of possible sanctions if it continues doing business with Russia. Washington is growing increasingly alarmed that the Russian government and businesses are using Turkey to evade Western financial and trading restrictions imposed in response to the Kremlin’s invasion of Ukraine six months ago. Turkish President Recep Tayyip Erdogan and Russian counterpart Vladimir Putin agreed to step up economic cooperation at a summit in the Black Sea resort of Sochi earlier this month. Official data show the value of Turkish exports to Russia between May and July growing by nearly 50 percent from last year’s figure. Turkey’s imports of Russian oil are ballooning and the two sides have agreed to transition to ruble payments for the natural gas exported by the Kremlin-tied giant Gazprom. US Deputy Secretary of the Treasury Wally Adeyemo paid a rare visit to Ankara and Istanbul in June to express Washington’s worries that Russian oligarchs and big businesses were using Turkish entities to avoid Western sanctions. NATO member Turkey — on good terms with both Moscow and Kyiv — has tried to stay neutral in the conflict and refused to join the international sanctions regime. Adeyemo followed that up with a letter to Turkey’s TUSIAD business association and the American Chamber of Commerce in Turkey warning that companies and banks were in danger of being sanctioned themselves. Broader cooperation with Russia could help support Turkey’s ailing economy in the runup to next-year’s general election. Erdogan has previously argued that Ankara cannot join Western sanctions on Moscow because of Turkey’s heavy dependence on Russian oil and natural gas imports. “Our economy is such that imposing sanctions on Russia would harm Turkey the most,” Erdogan’s foreign policy adviser Ibrahim Kalin said in June. “We have taken a clear approach. Right now, the Westerners have accepted this.” [Source: Arab News]

After having faithfully served America in opposing Russian interests in Armenia, Syria and Libya, the US now wants to put further pressure on Russia via Turkey. Turkey in close coordination abandoned the S400, supplied killer drones to Ukrainian forces and now is being instructed to cut commercial ties with Moscow. Erdogan is a loyal American servant and eventually he will relent to serve his American masters.

Pakistan Approves Agreement Draft to Provide Troops for World Cup

Pakistan's cabinet has approved a draft agreement that allows the government to provide troops for security at the FIFA soccer World Cup in Qatar later this year, Pakistan's information minister said on Monday. A summary outlining the agreement, to be signed between Doha and Islamabad, was approved by the cabinet, minister Marriyum Aurangzeb told Reuters, ahead of Pakistani Prime Minister Shehbaz Sharif's visit to Qatar. The cabinet summary, reviewed by Reuters, said the government of Qatar had requested assistance in security-related aspects of the World Cup between Nov. 21 and Dec. 18 2022, and that Pakistan's military had proposed the signing of an agreement between both states for the purpose. "The agreement aims to define the obligations of the two parties, the specific specializations, and the number of security personnel to be sent by Pakistan to participate in the security and safety operations," the summary read.

Qatar’s government media office did not immediately confirm or respond to a request to explain why Doha has requested the Pakistani troops or what they will be doing during the tournament. There was also no immediate response from the Supreme Committee for Delivery and Legacy, which is overseeing the organisation of the World Cup, including security. The summary did not provide any details of the agreement such as how many personnel could be sent. [Source: Reuters]

The embarrassing agreements raises fresh questions about the military’s commitment to protect Pakistan. Pakistan not only needs its army to assist with the ongoing support to flood victims but also it needs the army to secure its vital interests. This includes protecting its border with India and most importantly liberating Kashmir. Yet despite such vital interests the Pakistani army is now gun for hire to prevent Western hooligans creating trouble at the World Cup in Qatar. What is next? Will the Pakistani army fight Muslims in Yemen to protect Saudi interests or perhaps worse provide security to the Jewish state in suppressing Palestinians or subdue the restive Chinese province of Xinjiang for some measly dollars!