Category: Economy

  • Russia may supply gas to Transnistria via Bulgaria

    Russia may resume gas supplies to Transnistria via the TurkStream gas pipeline. According to data from the RBP trading platform, on January 20, the Cypriot company Ozbor Enterprises reserved the pipeline’s capacity of 3.1 million cubic meters per day for a month, Kommersant writes. This volume coincides with the gas needs of the unrecognized republic, which is experiencing an energy crisis. Supplies are expected to begin on February 1.

    According to sources of the Russian business publication, various options for gas supplies to Transnistria were previously developed, but currently the transit of fuel through Turkey is considered a priority. It will cost Russia $ 160 million, the publication’s interlocutors note.

    From Turkey, gas may flow into the Trans-Balkan gas pipeline, which operates in a reverse mode, the publication states. However, individual volumes of this pipe to Moldova were not reserved at the monthly auction on January 20. Specifically, sections of the border between Bulgaria and Romania (entry point), Romania and Ukraine (Isacha-Orlovka), Romania and Moldova (Iași-Chisinau pipeline) were planned for reservation.

    Bidding for monthly reservations is held every third Monday of the month, after which volumes can be reserved daily, but this is a more expensive option.

    The Romanian portal Profit.Ro wrote that Ozbor Enterprises operates on the local market as an importer and exporter of gas. In April 2024, the company received the status of a member of CEEGEX, the operator of the Hungarian gas market, Kommersant explains. Gas trading at Ozbor Enterprises is managed by Miroslav Stoyanovich. According to his LinkedIn profile, he has worked as a senior gas trader at Gazprom since 2017. until 2022, and before that he was the gas supply manager for the trader WIEE, which was previously indirectly controlled by Gazprom through its German division.

    After the termination of the transit of Russian gas through Ukraine to Transnistria on January 1, residents of the region were left without heating and hot water, constant power outages began, and almost all industrial enterprises were stopped. Previously, Gazprom supplied gas to the autonomous region in the amount of about 5.7 million cubic meters per day (2 billion cubic meters per year).

  • Archbishop George of Cyprus on the management of church property: I think there should be more order

    Two years after his election as head of the Cyprus Archdiocese, Archbishop George spoke in an interview with the newspaper “Phileleuteros” about the problems he has encountered in the management of church property.

    He intends to combat the vicious practices in the management of church property, which are damaging to the church. “Some people enter agricultural plots of the diocese and declare that they are cultivating them, even receiving state subsidies.” This has been discontinued, and whoever wants to use church land will have to pay. No compromises will be made for anyone. An assessment has been made of the condition of the agricultural lands of the archdiocese, which, according to him, have not been managed in the best way for the Church. “A certain order has been introduced on this issue since this year, which continues to concern us.”

    The Cyprus Archdiocese lost over 100 million euros during the banking crisis, the Archbishop said, and this has affected the financial stability of the church. The Archbishop spoke about the ongoing investigation, which began during the time of the late Archbishop Chrysostomos II, into the misappropriation of archdiocese property. The property of the largest church in the Cypriot capital, Nicosia, “Holy Mother of God Appearing (Phaneromeni)”, which owns more than a hundred properties, is also a problem. The Archbishop said that in this case, legal cases have been filed against tenants who pay inadequately low rent and refuse a reasonable review of unprofitable rents. “I think there should be more order, although everyone sees things from their own perspective,” he said. The Archbishop specified that this is not about some “lonely elderly woman living in a house”, but about commercial premises. No compromise was made for anyone, including relatives of Archbishop Chrysostomos I of Cyprus (1977-2007).

    “Furthermore, I have given instructions that the properties of the archdiocese be evaluated or even improved, where necessary, with a view to renting them out, considering that we do not wish to alienate church property.”

    He noted that the Church of Cyprus also contributes a significant amount to the defense of Cyprus. Recently, the Cyprus Archdiocese allocated 1.2 million euros for the renovation of the dormitories of the Naval Cadet School in Greece. The Holy Synod has also decided to allocate a certain amount each year for the defense of Cyprus, but the Archbishop did not name the specific amount.

    In addition, only the Archdiocese allocates 1 million euros annually for scholarships and other social needs, the other Cypriot metropolitanates also have their own social programs. The Archbishop specified that all these funds do not come from the church treasury, where the income is not even enough for the maintenance of the temples, but from the Church’s shares in various business sectors. Currently, the Church of Cyprus is investing in photovoltaics. It also became clear that the Church of Cyprus used a state subsidy to build student dormitories. He also believes that the salaries of the Archdiocese’s employees are too disproportionate. There are people who receive up to 300,000 euros per year, 8,000 euros in salary and additional income through their participation in various boards of directors of the organizations or companies of the Archdiocese, and others who receive 12-13,000 euros per year. “I do not deny that everyone should receive remuneration according to their qualities and work, but we are not a private company, but a church,” he noted. “A supplement of 1,000 euros per month is enough to cover participation in each board and to feel useful to the church. The amount saved in allowances is significant and can be used to increase the salaries of other employees.

    When asked if he is not worried about opposition, Archbishop Georgi replies: “I am worried, but I am more worried about what I feel inside and when I ask myself the question of what I should do, my inner voice tells me that it will not forgive me if I pretend that nothing is happening.”

  • Ukraine: EIB provides €55 million to reconstruct social infrastructure

    • The funding will enable Ukrainian communities to continue implementing 151 sub-projects in 2025 and beyond, focusing on schools, kindergartens, hospitals, social housing, heating and water systems and other social infrastructure.
    • Backed by an EU guarantee, the funding is earmarked for the EIB’s Ukraine Recovery Programme.
    • In 2024, several sub-projects were completed, including a sewer pressure collector in Zhmerynka, Vinnytsia Oblast, that was finalised on 25 December and will provide over 33 000 residents with reliable wastewater management and improved sanitation.

    The European Investment Bank (EIB) has provided €55 million in EU guarantee-backed funds under the Ukraine Recovery Programme to reconstruct hospitals, social housing, educational facilities, heating, water and waste systems, and other critical social infrastructure in 2025 and beyond. The funding can be used for any of the 151 sub-projects allocated under the programme across Vinnytsia, Dnipropetrovsk, Zhytomyr, Kyiv, Kirovohrad, Mykolaiv, Odesa, Poltava, Sumy, Kharkiv, Cherkasy and Chernihiv oblasts. This contribution is part of the EIB’s Ukraine Solidarity Urgent Response package developed in close partnership with the European Commission, highlighting the European Union’s unwavering support for Ukraine’s recovery.

    In 2024, several sub-projects were successfully completed under the programme, including a water supply facility in Bucha, Kyiv Oblast, two schools in Vinnytsia Oblast, a paediatric infectious disease department in Zhytomyr Oblast, and now a sewer pressure collector in Zhmerynka, Vinnytsia Oblast. The sewer collector was completed on 25 December at a cost of €526 000. It involved rebuilding a 2.64 km sewer pipeline with durable pipes and advanced sensors. This upgrade will ensure reliable wastewater transport for the next 50 years, benefiting over 33 000 residents – including 4 000 displaced people – by enhancing sanitation, public health and environmental protection.

    The Ukraine Recovery Programme is a €340 million EIB framework loan supported by an EU technical assistance grant and aiming to help communities rebuild vital social infrastructure. It is being implemented by the Ministry for Development of Communities and Territories of Ukraine in cooperation with the Ministry of Finance, with local authorities managing recovery sub-projects and UNDP Ukraine providing technical assistance to support quick implementation.

    EIB Vice-President Teresa Czerwińska, who is responsible for the Bank’s operations in Ukraine, said: “Together with our EU partners, the European Investment Bank remains steadfast in its commitment to Ukraine’s recovery and rebuilding. This €55 million disbursement under the Ukraine Recovery Programme will help communities restore critical infrastructure, renewing schools, hospitals, heating, housing, water and waste facilities, and other essential services for all. Despite the challenges of war, Ukraine continues to rebuild, and we are glad to support this effort.”

    European Commissioner for Economy and Productivity, Implementation and Simplification Valdis Dombrovskis said: “The EU’s steadfast commitment to supporting Ukraine and its people in the face of Russia’s illegal and brutal war comes on every level: political, financial, military and humanitarian. It includes the reconstruction of small-scale community infrastructure as well. That is why we fully support this new €55 million Ukraine Recovery Programme disbursement for hospitals, schools, housing, heating and water systems, as well the opening of a small wastewater treatment plant in Vinnytsia Oblast. We look forward to continuing to work closely with Ukraine, the EIB and all other partners to support Ukraine further in meeting its needs.”

    Deputy Prime Minister for Restoration of Ukraine — Minister for Development of Communities and Territories of Ukraine Oleksii Kuleba said: “The EU’s support is critical to our efforts to rebuild key infrastructure across the country. This funding from the European Investment Bank will help us restore schools, hospitals and essential utilities, significantly improving the quality of life of millions of Ukrainians. Together, we are laying the foundation for a resilient Ukraine, where communities can rebuild and move forward despite the challenges of war.”

    Ukraine’s Minister of Finance Sergii Marchenko said: “Rebuilding our cities and strengthening our economy are critical for Ukraine’s recovery. We appreciate the European Investment Bank’s funding of recovery programmes, which restore vital infrastructure and improve the well-being of our people. The EU’s steadfast support is essential as we work to rebuild and ensure a better future for our communities despite the challenges we face.”

    UNDP Resident Representative in Ukraine Jaco Cilliers said: “At UNDP, we’re dedicated to empowering communities by leveraging our technical expertise and strategic partnership with the EIB to foster transparent and sustainable recovery. With the successful completion of several sub-projects under the Ukraine Recovery Programme, we’re working alongside Ukrainian municipalities and the government to rebuild resilient infrastructure that truly meets the needs of the people. Together, we’re striving to ensure a brighter, more inclusive future for all Ukrainians.”

    Background information

    The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of the Global Gateway. We aim to support €100 billion of investment by the end of 2027, around one-third of the overall target of this EU initiative. With Team Europe, EIB Global fosters strong, focused partnerships, alongside fellow development finance institutions and civil society. EIB Global brings the Group closer to people, companies and institutions through our offices around the world.

     EIB recovery programme in Ukraine

    The upgrade of the sewer pressure collector in Zhmerynka, Vinnytsia Oblast, was carried out under the Ukraine Recovery Programme, one of the European Investment Bank’s (EIB) multi-sectoral recovery framework loans. Overall, the EIB is investing in three recovery programmes totalling €640 million, complemented by up to €15 million in EU grants. These programmes empower Ukrainian communities to restore social infrastructure and improve living conditions for their people and the internally displaced persons they host. The Ministry for Development of Communities and Territories of Ukraine, jointly with the Ministry of Finance, coordinates and oversees the implementation of the programmes, while local authorities and self-governments are responsible for fully managing recovery sub-projects. The United Nations Development Programme (UNDP) in Ukraine provides technical assistance to Ukrainian communities in implementing recovery sub-projects on the ground along with independent monitoring to ensure transparency and accountability.

  • The Global Economy’s Crossroads—A Call for Bold Action

    As 2024 winds down, the global economy finds itself at a crossroads. While progress in taming inflation and stabilizing growth is evident, it’s hard to ignore the risks looming over our shared economic future. Policymakers, businesses, and investors have reason to breathe a sigh of relief, but complacency is not an option.

    A Mixed Bag: Growth, Inflation, and Market Optimism

    The International Monetary Fund’s (IMF) projection of 3.2% global growth for both 2024 and 2025 may seem reassuring, but it hides troubling regional disparities. While the United States’ economy remains resilient, growth is expected to slow from 2.8% in 2024 to 2.1% by 2026 (Le Monde). China, grappling with a housing crisis and restrained consumer spending, faces a similar slowdown, with growth forecasted to decline from 4.9% to 4.4% by 2026. In the Eurozone, manufacturing woes and sluggish recovery underline the region’s tepid growth trajectory (Reuters).

    Inflation, a long-standing global concern, shows signs of easing. The IMF predicts global inflation will drop to 5.8% in 2024 and further to 4.3% in 2025 (Associated Press). Advanced economies are on track to meet the 2% inflation targets set by central banks. Yet, the scars of high inflation linger, especially in developing nations where rising costs have strained living standards. Additionally, the tools deployed to combat inflation, such as aggressive interest rate hikes, have stifled investments and increased debt burdens.

    Optimism in markets presents a double-edged sword. Investors, buoyed by anticipated U.S. interest rate cuts and growth in technology sectors like AI, exhibit high confidence. However, history warns that unchecked bullish sentiment often precedes market corrections (The Australian).

    Urgent Risks and the Path Forward

    The global economy’s outlook is fraught with risks that demand immediate attention. Chief among these is the resurgence of protectionist policies. The Organisation for Economic Co-operation and Development (OECD) warns that such policies threaten to derail fragile global trade recovery, disrupting supply chains and slowing economic progress (Reuters).

    High debt levels compound the problem. The Bank for International Settlements (BIS) highlights growing stress in bond markets, fueled by governments’ reliance on fiscal expansion. The long-term sustainability of sovereign bonds in the U.S., UK, and Eurozone is increasingly in question (The Times).

    Geopolitical tensions add another layer of uncertainty. Trade wars, regional conflicts, and shifting alliances have the potential to unravel economic gains and highlight the interconnected fragility of global systems. Policymakers must act multilaterally to address these challenges. Businesses should prioritize sustainability as both a compliance necessity and a growth imperative. Meanwhile, investors need a balanced approach that tempers optimism with realism.

    In this evolving landscape, complacency remains the greatest risk. The decisions made today will determine whether the global economy thrives or merely survives. The stakes couldn’t be higher.

  • EU’s longest-running discrimination case passes to the in-tray of Commissioner Mînzatu

    A letter from Gianna Fracassi, Secretary-General of Italy’s largest trade union, FLC CGIL, has brought the high-profile case of the long-running discrimination against non-national university language lecturers(“Lettori”) in Italian universities to the immediate attention of incoming Commissioner for Social Rights and Skills, Quality Jobs and Preparedness, and Executive Commission Vice-President, Roxana Mînzatu. With her appointment to this post, Commissioner Mînzatu joins the long line of commissioners who have handled the still unresolved Lettori case. The involvement of her predecessors in the Social Rights portfolio dates all the way back to the 1980s, when the Commission sided with Spanish Lettore, Pilar Allué, in the reference for preliminary ruling case she had taken against her employer, Univesità degli studi di Venezia. The eventual sentence in favour of Allué was delivered on 30 May 1989.

    Pilar Allué Day, a piece published in The European Times, tells the story of how a day which ought to be commemorated as the day on which Lettori won the right to parity of treatment is instead remembered as the starting point from which to measure a discrimination which endures to the present day. It endures in spite of three subsequent clear-cut rulings of the Court of Justice of the European Union(CJEU) in favour of the Lettori. The last of these rulings was the 2006 ruling in Case C-119/04, for non-implementation of which the Commission referred an infringement case to the CJEU in August 2023. A hearing in the case is expected soon.

    In her letter, Secretary-General Fracassi recalls the FLC CGIL contacts and fruitful collaboration with Mînzatu’s immediate predecessor, Commissioner Nicholas Schmit.  Working closely with Rome-based Lettori association, Asso.CEL.L, FLC CGIL conducted a nationwide Census , which documented the widespread failure of the Italian universities to implement the CJEU rulings in favour of the Lettori. The Census was influential in the Commission’s decision to progress from the lengthy and ultimately ineffective EU Pilot Procedure -a procedure introduced for the diplomatic resolution of disputes with Member States- and to open infringement proceedings proper against Italy in 2021. Over the subsequent course of the proceedings, and up to the referral of the case to the CJEU, FLC CGIL continued to maintain contact with Commissioner Schmit’s office and to contribute to the infringement file.

    Ultimately it is the responsibility of the Member States to ensure that EU law is implemented within their territories. In the context, this is a responsibility which Italy has consistently shirked, leaving it to the individual universities to interpret their obligations to Lettori. This flaw is apparent again in Interministerial Decree n.688 of May 2023, the latest Lettori legislation enacted by Italy to purportedly satisfy EU law. While under the provisions of the decree the central government makes funds available to applicant universities to finance  settlements for reconstruction of Lettori careers, it is left to the discretion of the individual universities to decide firstly if they have a liability to their Lettori and secondly what the extent of that liability is. This has effectively led to a national mayhem, with diverse interpretations across the universities as to the settlements due under EU law.

    In the light of the divergent positions on the universities’ liability to the Lettori, Secretary-General Fracassi hones in on the important precedent set by the University of Milan in her letter to Commissioner Mînzatu. At Milan, an agreement negotiated and concluded by local FLC CGIL representative, Sara Carrapa, and funded by  Ministry of Universities monies, awarded the Lettori an uninterrupted reconstruction of career. Fracassi’s legal reasoning and her deductions from the Milan example are worthy of citation:

    “Only a few universities have correctly implemented the ruling in Case C-119/04 and in the terms of Law 63 of 05.03.2004. In the context of a consistent and uniform implementation of the CJEU’s jurisprudence, the example of the University of Milan is significant in several respects. Using funds made available by the Ministry of Universities, this university has paid its Lettori the salary differences to achieve full and continuous career reconstruction from the first employment contract signed until today.

    Since the working positions of Lettori at other universities are the same as those of their Milanese colleagues, it is clear that the Italian state’s failure to apply to them the general principles laid down by the Court of Justice of the European Union demonstrates, on the one hand, the uncertainty and absolute lack of clarity of the national legal framework of reference and, on the other, highlights the discrimination practised against the Lettori by the plurality of Italian universities.”

    In addition to the Lettori case, Italy faces a further trial before the CJEU for its exploitative use of short-term contracts in the educational sector, an abuse against which FLC CGIL has campaigned and on which it has lobbied the Commission. In the press release announcing the referral of this abuse to the CJEU, the Commission states that “contrary to EU law, Italy has not taken effective measures to prevent the abusive use of successive fixed-term employment contracts of administrative, technical, and auxiliary staff in State schools. This breaches EU law on fixed-term employment.”

    Linda Armstrong worked as a Lettore at the University of Bologna from 1990 until her retirement in 2020. Her deceased husband, David, also a Lettore, never received the settlement for discriminatory treatment which he was due under EU law. Commenting on the Fracassi letter to Commissioner Mînzatu, Linda said:

    “The position that EU law should be applied consistently across the Italian universities is obvious and incontestable. Lettori with working situations and histories identical to those of their Milan colleagues must therefore logically be awarded uninterrupted settlements for reconstruction of career. The March 2004 law, of which the CJEU approved in Case C-119/04 and which Italy has never correctly implemented, establishes that the settlements must be based on the parameter of part-time researcher or more favourable parameters won before the local courts.

    Scrutiny of the law also shows that it places no time limits on the period for which reconstruction of career is due. This is how Milan, and indeed, some other universities have interpreted it. In the run-in to what will be the fifth case in the Allué line of litigation,the Commission must be particularly vigilant in the face of attempts by the universities to limit or deny their liability to their Lettori employees. Were this to be allowed to happen, it would result in the absurd situation whereby the infringement proceedings would be turned to the advantage of the member state in breach.” Secretary-General Fracassi’s letter was copied to President of the Commission, Ursula von der Leyen, who has taken a personal interest in the Lettori case over the course of her mandate.

  • ARGENTINA Javier Milei’s First Year in Office: A Bold Vision or Polarizing Gamble?

    In a much-awaited speech marking one year since his inauguration, Argentina’s President Javier Milei presented a comprehensive and impassioned address, celebrating what he described as a transformative year for the nation. The speech, titled “The Most Important Announcement,” aimed to highlight the government’s achievements, justify the challenges faced by citizens, and outline a vision for Argentina’s future. While supporters praised his radical reforms, critics remained uncertain about the long-term viability of his policies.

    A Year of Sacrifice and Hardship

    “Dear Argentines, I want to begin by thanking you all,” Milei opened, expressing gratitude for the perseverance shown by ordinary citizens. Referring to the so-called “model of the caste” that he blamed for decades of mismanagement, he declared: “The sacrifice you’ve made is moving. I assure you, it will not be in vain.”

    Milei acknowledged that his first year in office involved what he described as a “trial by fire,” citing measures that caused short-term pain but aimed at long-term gain. “When I took office, inflation was running at an annualized rate of 17,000%,” he stated, referring to hyperinflationary pressures that had gripped the economy. According to Milei, through aggressive fiscal measures, inflation is now under control, with the wholesale index showing just 1.2% for October.

    Economic Overhaul

    Central to Milei’s address was a detailed breakdown of his economic reforms. He highlighted the elimination of Argentina’s staggering fiscal deficit, turning it into a sustained surplus for the first time in over a century. “This was achieved through the largest adjustment in the history of humanity,” he said, emphasizing the controversial decision to halt monetary emissions. By cutting public spending and slashing government subsidies, Milei claims to have stabilized the economy and opened the doors to foreign investment.

    On international debt, Milei painted a stark contrast between the state of affairs a year ago and today: “The debt with importers, which stood at $42.6 billion, is now cleared. Our trade surplus is growing, and reserves are being rebuilt.”

    The Motosierra Plan in Action

    A hallmark of Milei’s campaign was his pledge to wield a figurative “chainsaw” (motosierra) against public spending and government bloat. In his speech, he proclaimed significant progress in streamlining the state apparatus. “We’ve reduced ministries from 18 to 8 and eliminated nearly 100 redundant agencies. Public sector employees must now pass competency exams to keep their jobs.”

    Milei’s critics argue that his drastic cuts to government services risk creating gaps in vital sectors. Nonetheless, he reiterated his belief that “a smaller state means greater liberty” and promised even more aggressive reforms in the coming year.

    Social Policies and Public Order

    The President also tackled the hot-button issue of public security. He touted a 63% reduction in homicides in Rosario, the epicenter of Argentina’s drug violence, attributing the success to his “Plan Bandera” and a tough-on-crime approach. “The streets are no longer dominated by fear and lawlessness,” he declared, adding that offenders are now compelled to work to repay their debt to society.

    On social welfare, Milei emphasized that direct transfers to citizens, bypassing intermediaries, had restored dignity to the vulnerable. “A year ago, the Universal Child Allowance covered just 60% of the basic food basket. Today, it fully covers 100%,” he claimed.

    Towards a Free-Market Future

    Milei’s vision for Argentina’s economic future hinges on radical free-market principles. He announced the introduction of a monetary competition system, allowing Argentines to transact in any currency, including U.S. dollars. “We are laying the groundwork to eliminate the Central Bank entirely,” he said, framing this as a solution to Argentina’s chronic inflation.

    His administration has also prioritized deregulation. “Over 800 regulations have been scrapped,” Milei boasted, citing industries from pharmaceuticals to e-commerce as beneficiaries. He also called for Argentina to embrace free trade, pushing for a historic agreement with the United States.

    An Optimistic Outlook

    Milei ended his speech on an optimistic note, promising that 2024 would mark a year of “high growth and low inflation.” He attributed this to structural reforms and the government’s ability to attract significant foreign investment. Highlighting Argentina’s potential to become a global hub for artificial intelligence and clean energy, he asserted, “We have the resources, talent, and freedom to lead in the technologies of tomorrow.”

    Despite the ambitious rhetoric, the challenges ahead are immense. Social unrest, unemployment, and the erosion of public trust in institutions remain hurdles. Milei’s speech did not delve into these complexities, focusing instead on the positive outcomes of his administration.

    Polarized Reactions

    For supporters, Milei’s reforms represent a long-overdue reckoning with a bloated state and a corrupt political class. His aggressive deregulation and fiscal discipline have earned him comparisons to historical reformers.

    However, critics argue that the speed and scale of his reforms risk destabilizing the economy and exacerbating inequality. Labor unions and opposition parties accuse him of prioritizing foreign investors over domestic welfare. Some fear that deregulation may erode labor protections and environmental safeguards.

    Looking Ahead

    Milei’s first year has been nothing short of transformative, characterized by bold policies and polarizing rhetoric. While his supporters see the makings of an “Argentine miracle,” skeptics remain unconvinced. As Argentina braces for another electoral year, Milei’s agenda will undoubtedly be a defining factor in the nation’s political and economic future.

  • Bitcoin Surpasses $100,000 Amid Trump’s Government Appointments

    Bitcoin reached a historic milestone, surpassing the $100,000 mark for the first time. This surge in value is largely attributed to recent announcements from Donald Trump, the incoming U.S. president, who has appointed Paul Atkins, a staunch advocate for cryptocurrencies, as the head of the U.S. Securities and Exchange Commission (SEC).

    During his campaign, Trump pledged to transform the United States into the global capital of cryptocurrencies. He has been vocal about his support for Bitcoin, famously stating at a rally five months ago, “If Bitcoin is going to the moon, I want the United States to be at the forefront.” To solidify this vision, Trump has promised to purchase one million Bitcoins for the Federal Reserve, the world’s largest central bank.

    Experts believe that such a move would not only legitimize Bitcoin as a viable asset but also position it as a strategic reserve for the country. “This is tremendously important because it elevates the asset beyond institutional investment, establishing it as a national-level asset,” said one financial analyst. This potential shift could encourage other central banks to consider similar strategies.

    Over the past year, Bitcoin’s value has doubled, fueled by significant developments in the investment landscape. Since January, Bitcoin-based investment funds have been publicly traded, leading to a massive influx of capital from banks and financial institutions. However, experts and regulators caution that these investments carry high risks due to Bitcoin’s notorious volatility.

    “Uninformed investors, lacking financial education, may enter the market at a time that could lead to significant losses,” warned a financial advisor. “It’s crucial to be well-informed and technologically savvy before investing in cryptocurrencies.”

    As the cryptocurrency market evolves, initial regulatory frameworks are beginning to emerge. Europe is set to introduce its regulations in 2025, while Trump’s administration appears to be moving in the opposite direction. His cabinet appointments, filled with business leaders with vested interests in the crypto sector, signal a potential conflict in regulatory approaches.

    As Bitcoin continues to soar, the implications of Trump’s policies on the cryptocurrency market and the broader financial landscape remain to be seen. The coming months will be critical in determining how these developments will shape the future of digital currencies in the United States and beyond.

  • European Courts’ Landmark Micula Ruling Sends Shockwaves Through Investor Protections

    BRUSSELS — Few investment disputes have garnered as much global attention as the case of the Micula brothers, two Romanian  investors based in Sweden, who embarked on a decades-long legal battle against Romania. What began as an effort to enforce their rights under a bilateral treaty has spiralled into a legal odyssey, raising profound questions about the European Union’s handling of international arbitration and its respect for investor protections.

    The dispute, formally known as Micula and Others v. Romania, traces back to 1998, when Ioan and Viorel Micula invested in Romania under the Sweden-Romania Bilateral Investment Treaty (BIT). The treaty was designed to promote economic development in rural areas, offering incentives to foreign investors. But in 2004, as Romania prepared to join the European Union, it abruptly terminated these incentives to comply with EU state aid rules. This decision not only breached the BIT but also left the Miculas facing significant financial losses.

    What followed was a 20-year battle for restitution that would pit the principles of international law against the European Union’s increasingly assertive stance on its jurisdiction over investor-state disputes.

    A Battle Between International and European Law

    In 2013, an arbitration tribunal under the World Bank’s ICSID Convention ruled in favor of the Miculas, awarding them significant damages for Romania’s treaty violations. Yet the European Commission intervened, declaring the compensation unlawful under EU state aid rules.

    Despite the Commission’s objections, courts in the United Kingdom sided with the Miculas, affirming their right to the compensation in 2020. This ruling triggered further tensions between the EU and the UK, with the Commission suing Britain in 2024 for allegedly breaching the Brexit Withdrawal Agreement by allowing the compensation to proceed. How Britain will respond remains an open question, especially amid its fraught political relationship with the European Court of Justice.

    A Controversial Turn: The General Court’s 2024 Ruling

    On October 2, 2024, the EU General Court escalated the stakes by ordering the Micula brothers to repay the €400 million awarded to them. In a striking and controversial move, the court also declared the brothers personally liable for recovering the funds.

    This decision represents uncharted legal territory. By retroactively applying EU state aid rules to an international arbitration award, the European Commission sought to reinterpret the ICSID Tribunal’s findings. In doing so, it expanded the notion of “state aid” to hold not only the Miculas but also five affiliated companies—none of which received the disputed compensation—liable for repayment.

    Perhaps most alarming, the ruling opens the door for Romania to seize the personal assets of the Micula brothers, including property and pensions. Critics have labeled this as an unprecedented breach of legal norms, effectively “piercing the corporate veil” that shields individuals from liabilities incurred by their businesses.

    Limited Liability Under Threat

    The implications of the ruling extend far beyond the Miculas. Under Romanian law, as defined by Law No. 31/1990, corporate entities and their shareholders enjoy clear protections under the principle of limited liability. This legal framework, common across EU member states, ensures that shareholders are not personally responsible for corporate debts except under extraordinary and narrowly defined circumstances.

    The European Commission’s decision, however, circumvents these protections. By retroactively assigning personal liability to the Miculas, the ruling undermines established principles of corporate law and raises questions about the consistency of EU legal standards.

    “This decision sets a dangerous precedent,” said one legal expert familiar with the case. “If the European Commission can hold individuals personally liable in this way, it creates a chilling effect on foreign investment across the EU.”

    A Chilling Message to Investors

    At its core, the Micula case highlights the tension between the EU’s internal legal order and the broader framework of international arbitration. By disregarding the ICSID Tribunal’s clear legal basis for the damages award, critics argue, the EU is penalizing investors for exercising their right to seek legal recourse.

    The implications are profound. For decades, international arbitration mechanisms have provided investors with a sense of security, offering an impartial forum for resolving disputes with states. But the EU’s handling of the Micula case has cast doubt on the reliability of these protections within its borders.

    “This decision erodes trust in the EU as a safe destination for foreign investment,” said an analyst from a leading global law firm. “It signals to investors that their rights can be retroactively invalidated in pursuit of political objectives.”

    Awaiting the Next Chapter

    The Micula brothers are not backing down. They will file to appeal the ruling, however a judgment could take at least a year. This case is likely to remain a touchstone for debates about the intersection of EU law and international arbitration for some time to come, and its outcome will reverberate far beyond the Miculas, shaping the future of investor protections in Europe and beyond.

  • Switzerland offers huge reward for ideas on how to remove ammunition from its lakes

    Switzerland’s picturesque Alpine lakes are hiding a dangerous secret: thousands of tons of ammunition. For decades, the Swiss military has used them as convenient dumps to get rid of obsolete and surplus ammunition. And now the country faces the daunting task of safely disposing of them.

    In an attempt to solve the problem, the Federal Ministry of Defense, Civil Protection and Sport has announced a competition offering a prize of 50,000 Swiss francs for useful ideas on how to do this. Those wishing to submit a possible solution have until February 2025, and the winners will be announced a few months later, in April.

    Dangerous waters

    Several Swiss lakes have been affected by the country’s long-standing practice of dumping ammunition in nature. Lake Lucerne is estimated to have around 3,300 tonnes of ammunition, while Neuchâtel is estimated to have around 4,500. Other affected bodies of water include Thun and Brienz.

    The ammunition was dumped between 1918 and 1967 and consists of a variety of types, including problem ammunition, surplus stockpiles and even scrapped production lots. Some of it lies at depths of between 150 and 220 metres, while that in Lake Neuchâtel is 6 to 7 metres below the surface.

    Challenges

    The presence of these munitions poses significant risks. Although they are underwater, there is still a risk of explosion, as many of them were dumped with their explosives intact. There are also concerns about water and soil contamination from toxic substances, including TNT, that are washed into the environment.

    The clean-up poses a number of challenges. Their poor visibility, magnetic properties, and varying sizes and weights have hampered the effort. The sediment covering them is also a concern; disturbing it could harm the delicate lake ecosystems by reducing the already low oxygen levels at these depths.

    But why were they dumped so recklessly?

    The practice of dumping munitions in lakes was once considered a safe disposal method. This belief persisted for decades, with geologists advising the military that such measures posed no significant risk. More recent reassessments, however, have revealed the potential dangers of this approach.

    Switzerland’s strategy of armed neutrality, which includes maintaining a large militia, has contributed to the accumulation of surplus munitions. The country’s limited land area and dense population make it difficult to find suitable disposal sites, leading to the use of lakes as convenient dumping grounds.

    Incidents

    Although there have been no major incidents directly linked to munitions dumped in lakes, Switzerland has experienced others involving explosives. In 1947, a powerful explosion in an underground ammunition depot in the village of Mitolz killed nine people and destroyed the village.

    The population was on the verge of a possible evacuation that could take decades to remove all remaining munitions.

    This, together with the discovery of still unexploded weapons in retreating glaciers, has raised awareness of this type of risk, and it is this growing concern that has prompted the government to take action.

    Time for innovation

    The Swiss government recognises that previous assessments of remediation techniques have shown significant risks to aquatic ecosystems, which is why this competition aims to find new, innovative approaches that can safely remove munitions without causing damage.

    While winning ideas may not be implemented immediately, they can serve as the basis for further research and development. Switzerland is also reaching out to countries such as the United Kingdom, Norway and Denmark, which have previous experience working with underwater munitions from World War II, for potential guidance and expertise.

    Illuistrative Photo by Louis: https://www.pexels.com/photo/white-and-red-flag-on-boat-2068480/

  • What Bulgarian euro coins will look like

    The amount of euro banknotes that will be needed for monetary circulation in Bulgaria after the country enters the Eurozone amounts to 520 tons, which is equal to 25 autotrucks, and the amount of euro coins reaches 3,600 tons or 181 autotrucks. This was stated on 20.11.2024 by the Chief Treasurer of the Bulgarian National Bank (BNB), Stefan Tsvetkov, during the Euro Week initiative and the Tenth Annual Monetary and Economic Scientific Conference, which was held at the University of National and World Economy (UNWE) in Sofia.

    According to Tsvetkov, who presented BNB calculations, the Bulgarian banknotes that will be withdrawn from monetary circulation at the expense of the new euro banknotes amount to 642 tons or 32 autotrucks, which if arranged one behind the other would reach the length of 5 football fields. To withdraw Bulgarian coins from circulation, 378 autotrucks would be needed, which would form a column 6.8 kilometers long.

    “The issuing bank has the obligation to issue banknotes, store them, process them, but also to withdraw them from circulation and destroy them. There is no other institution in the country that has the right to both issue and destroy banknotes,” said Tsvetkov, indicating the volume of work facing the BNB in ​​the context of entering the eurozone.

    Tsvetkov pointed out that the number of Bulgarian banknotes in circulation amounts to 604 million with a total value of 29.7 billion leva, and Bulgarian circulation coins reach 3.3 billion with a total value of 615 million leva.

    The Chief Treasurer of the BNB presented the vision of the Bulgarian euro coins, on whose national side the Madara Horseman is depicted (coins from 1 to 50 euro cents), St. Ivan Rilski (the 1 euro coin) and Paisii Hilendarski (the 2 euro coin).

    “We used our tradition of levs to depict them on the euro coins,” said Tsvetkov, adding that the coins express our thousand-year history, which has no analogues among other European countries.

    According to Tsvetkov, the euro banknotes and coins will be stored in branches in Sofia, Pleven, Varna, Plovdiv and Burgas.

    He noted that the BNB will be able to continue issuing commemorative coins, which will be done through the national side of the 2 euro coin. In this way, Bulgarian commemorative coins commemorating key events in Bulgarian history will be issued within the entire eurozone. The BNB will also be able to issue so-called collector coins, which, however, unlike commemorative coins, will be able to be used for payment only within Bulgaria.

    Tsvetkov recalled that after the adoption of the euro, there will be a period of 1 month in which levs and euros will be used in parallel in our country, after which within 6 months levs will be able to be exchanged without fees in banks and Bulgarian post offices. “Bulgaria has a clear path to accession,” said Tsvetkov, indicating that in his opinion Bulgaria should join the eurozone, since the advantages are much more than the negative sides.

    The design proposals for the Bulgarian national side of the euro coins of all denominations: 1 euro cent; 2, 5, 10, 20 and 50 euro cents; 1 euro and 2 euros were approved in November 2023 following a meeting of the Co-ordination Council for the Preparation of the Republic of Bulgaria for Membership in the Eurozone.

    The euro coins have a common side and a national side. The common sides of the coins were designed by Luc Luiks of the Royal Mint of Belgium. They feature the images of the European Union or Europe, symbolising the unity of the EC.

    In accordance with the regulatory requirements, each national side of the euro coins includes mandatory and optional features.

    The mandatory elements included in the design of the national side of Bulgarian euro coins are:

    The depiction of a circle of 12 stars, as in the flag of the European Union;

    The inscription in Cyrillic of the word “BULGARIA” as the designation of the issuing country;

    For Bulgarian 2 euro coins – an inscription, written sequentially along the back, on one half of which is written “GOD SAVE BULGARIA”, and on the other half – the same inscription is written on the reverse.

    Selected optional elements included in the design of the national side of Bulgarian euro coins, such as:

    Writing in Cyrillic on the obverse of the word “euro” on the 1 and 2 euro coins, “cent” on the 1 euro cent coin and “cents” on the 2, 5, 10, 20 and 50 euro cent coins

    Writing of the year of the introduction of the euro in Bulgaria “2025”.

    The main elements of the design of the national side of the Bulgarian euro coins are the design of the current Bulgarian circulation coins:

    – The Hungarian Horseman – on the 1, 2, 5, 10, 20 and 50 euro cent coins;

    – St. Ivan Rilski – on the 1 euro coin;

    – Paisius Hilendarski – on the 2 euro coin.

    The reason for this is that the symbols on the current Bulgarian coins are well-established and well-received by the citizens of Bulgaria. This approach will ensure the transferability of the current to the new euro coins in Bulgaria and their easy recognition, while at the same time confirming and extending the Bulgarian identity through the well-known symbols on the Bulgarian coins.

    The proposed designs were developed by “Monneten dvor” EAD.

    The proposed designs are now to be submitted for approval by the European Commission, the Council of the European Union and the eurozone member states.

    Following their approval, these designs will be used for the production of euro coins with the Bulgarian national side.

    In implementation of the Memorandum of Understanding between the Republic of Bulgaria, the Member States of the euro area, and the European Commission for the start of the production of euro coins and for the preparatory tasks prior to the start of production, initially 8 denominations of euro coins with the Bulgarian national side will be produced in quantity up to 1 million pieces for each denomination for testing the quality of the produced coins and certification by the Bulgarian Mint.

    The actual production of the required quantities of euro coins from the Bulgarian national side will be carried out following the Decision of the Council of the European Union on the adoption of the euro by the Republic of Bulgaria.

    Illustrative Photo by Stefan Petrov: https://www.pexels.com/photo/close-up-of-coins-on-the-stones-14042374/