Week 17

This week, right now. Week 17 (21 - 28 April)

Keeping you up to date on global affairs. Every weekend. In under a few minutes.

International

• After enduring several months of procedural delays, the U.S. Congress has approved a substantial foreign aid package, which will disburse billions of dollars to Ukraine, as well as to other strategic partners and conflict zones around the world. The passage of this legislation occurred late on Tuesday evening and promises significant military aid to Ukraine, Israel, and Taiwan, as well as countries in the Indo-Pacific region. The legislative process saw a pivotal shift last week when House Republican leaders, reversing their previous stance, allowed the vote on the proposed $95 billion aid package. The package, consisting of four separate bills previously passed by the House, was merged into a single bill by the Senate and is expected to be signed into law by President Joe Biden. This package allocates $61 billion specifically for Ukraine, addressing the critical need for military supplies. An additional $26 billion is earmarked for Israel. A further $8.12 billion is designated to counteract Chinese influence in the Indo-Pacific. A notable inclusion in this legislative package is a provision potentially banning TikTok, a social media platform controlled by Chinese interests. TikTok's parent company, ByteDance, is to sell the app within 270 days or face a ban from U.S. app stores and internet hosting services, which would block new downloads and interactions with the app.
• According to Western intelligence sources, the case brought by Nicaragua against Germany at the International Court of Justice (ICJ) - accusing it of complicity in genocide in Gaza through arms sales to Israel - likely resulted from pressure by Moscow. Intelligence reports suggest that Russia, historically maintaining close ties with Nicaragua's authoritarian leaders, pushed for this legal move to challenge the credibility of the ICJ and make it a platform for dubious legal claims. This legal strategy aligns with Russia's broader efforts to undermine international judicial authorities. The Nicaraguan accusation against Germany has been criticized widely, with many legal experts and observers questioning the merit and motives behind the case. They argue that there is "no basis in fact or law" for holding a country liable for war crimes committed by another nation through indirect involvement, such as arms sales. The term 'lawfare' has emerged to characterize legal actions that primarily stem from frustrations when political pressure proves ineffective.

Europe

• EU lawmakers have decisively voted for the bloc to withdraw from the Energy Charter Treaty, a move celebrated as "historic" by environmental advocates. This treaty, originally designed to safeguard investments in the post-Cold War era, has been increasingly utilized by fossil fuel companies to challenge green legislation. The overwhelming vote of 560-43 marks a significant step in the EU's broader climate agenda, aiming to establish Europe as the first climate-neutral continent. Notably, the Corporate Sustainability Due Diligence Directive (CSDDD,) which mandates companies to address human rights and environmental abuses in their supply chains, was approved by a vote of 374 to 235. Furthermore, legislation on packaging waste, which includes measures on single-use plastics, passed with 476 votes in favor. Another key approval was a revision setting stricter air quality targets across the EU, which passed with a narrower majority. The approved legislation will require final endorsement from EU member states to become law.
• Christophe Fouquet is set to lead ASML, Europe's most valuable tech company, as its new CEO. He inherits a role that places him at the forefront of global technological and geopolitical tensions. Upon taking the helm on Wednesday, Fouquet will manage approximately 40,000 employees and a vast network of over 5,000 suppliers - in total representing 143 nationalities. His tenure is shadowed by the intense U.S.-China trade disputes that affect his industry: U.S. pressures have compelled the Dutch government to limit ASML’s dealings with China, particularly by restricting sales of its most advanced lithography systems. This move has sparked concerns about the potential rise of Chinese competitors that could threaten ASML's market dominance. The company's latest report indicates that China is still its largest market (at 49% of total sales). This situation underscores the company's need to balance its access to the expansive Chinese market with the need to comply with American regulatory constraints. Fouquet has spoken out about the importance of international cooperation within the industry, opposing the notion of decoupling global tech ties, which he believes would be both challenging and costly. His leadership will be crucial in steering ASML through turbulent times, balancing technological innovation with the intricate dynamics of global power politics.