Friday, August 21, 2020

How the French government is using Brexit for its economic advantage

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Syed Ahmed Uzair

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How the French government is using Brexit for its economic advantage

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Global Views 360

Publication Date

August 21, 2020

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The Eiffel Tower Paris, France

The Eiffel Tower Paris, France | Source: Paul Gaudriault via Unsplash

Brexit is an abbreviation for "British exit," which refers to the decision of the UK to leave European Union (UK). The decision to leave the EU was put to a referendum on June 23, 2016 by the then Prime Minister Boris Johnson, which resulted in a 52% to 48% majority for those who called for the UK to leave the EU.

The UK had joined the European Economic Community in 1973, and later became the founding member of European Union in 1992. The entry of the UK had always generated opposition from a section of the political spectrum in the country. It was earlier opposed by the left wing parties followed by the Eurosceptic parties like UKIP (United Kingdom Independence Party) and later propagated by a section of Conservative party.

After a lot of false starts, the UK Parliament ratified Brexit which specified that the UK will leave  the EU on 31 January 2020. An eleven month long transition period was also specified to enable the UK and EU to negotiate their future relationship. During this transition period the UK will remain subject to EU law, remain part of the EU customs union, and single market, but no longer be part of the EU's political bodies or institutions.

Euro, the currency of European Union | Source: Markus Spiske via Unsplash

The loss of the UK, the largest non-eurozone member of the EU means that the focus shifts towards the eurozone members but more importantly it leaves a 75 billion euro deficit in the EU’s budget and raises questions regarding its future direction. In the absence of the UK, it would be challenging for the EU to continue its commitment towards fiscal responsibility, free trade and enlargement of the block.

A 2019 report from New Financial Aid cited that Britain’s exit from the EU would mean the bloc losing its biggest financial centre, London. It also mentioned that many business hubs and financial organizations had started opening hubs in the EU to cope with Brexit.

As per New Financial Britain accounted for almost one-third of the entire capital market activity of the EU, which is more than France and Germany combined. The report had suggested that France and Germany would have a “duopoly” in most major financial sectors post UK’s exit, with France being the dominant in most of the sectors.

Emmanuel Macron, President of France | Source:  Presidencia de la República Mexicana via Wikimedia

The two biggest economies of post-Brexit EU, France and Germany have taken different public postures on Brexit. The president of France, Emmanuel Macron has termed Brexit as a blessing in disguise for France and an opportunity for “European renaissance.” His German counterpart, Angela Merkel has however, chosen to remain silent on the issue.

France has taken an aggressive stance on attracting business away from the UK ever since the 2016 referendum in the UK was won by the leavers in the UK. France under president Macron has rejigged its tax system and reformed its labour laws to create a more business-friendly environment.

Paris had also initiated a poster campaign with the slogan “Tired of the fog? Try the frogs!” in a bid to drive financial investments from London in the wake of the Brexit developments in late 2016. Officials from Paris had also assured stability to the British businesses citing that Paris would be the only global city left in Europe after the exit of Britain.

Arnaud de Bresson, managing director of Paris Europlace, the organization responsible for promoting the financial sector in France points out that Paris is well ahead of its competitors in the EU-27 bloc with nearly 180,000 employees in the financial sector. The next best figures are from Frankfurt with 70,000 workers from the financial sector as per the report by the organization. Brexit has resulted in nearly 80 to 100 financial businesses from London relocating nearly 4000 jobs to Paris, and as per de Bresson this process is “likely to accelerate”.

The French Economy Minister, Bruno Le maire had said in February 2020 that Paris would become the leading financial centre in Europe in the wake of Brexit. He even went ahead to say that the French economy “must take advantage of Brexit”. However, his statements are not exactly accurate. The UK still remains the undisputed leader in the financial sector with 250,000 employees and 7% contribution to its GDP.

French senator Christian Cambon | Source: Boicaro via Wikimedia

French senator Christian Cambon who serves as the co-chair of the Senate Brexit Committee had warned in 2019 that Brexit could have adverse impacts on a few sectors of France’s economy. "Our farmers, our fishermen, our businesses, and the regions of Normandy and Haute France. It will have consequences for all these areas and for the whole of the EU, it could even give other members some ideas. That’s why we want to follow the process step by step while abiding by the competences of the Senate." French fishing industry members have had concerns over being denied access to British waters post Brexit, considering that 75% of fishing taking place in Haute France is in British territorial waters.

However, President Macron remains as optimistic as ever regarding Brexit’s impact on the nation’s economy and has been actively promoting his nation via a series of reforms to attract businesses and investments. He also launched the 'Choose France' package which provides financial help and English-language support to UK based businesses that want to move to France.

The short-term projections are pointing to be somewhat in favour of France, it remains to be seen if Brexit will have a positive impact on the nation’s economy in the longer run or the UK will have the last laugh.

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February 28, 2021 11:13 AM

Internet Shutdowns in India: From Kashmir to Haryana

India has one of the world’s largest internet user base and also has the maximum number of internet shutdowns. In 2018, India recorded 134 shutdowns which is the highest the country has seen yet. The article delineates the implications of Internet shut-down—while looking at specific cases of Kashmir, CAA-NRC, and Farm Bill Protests—and the legal procedures associated with the same.

The internet shutdown imposed in Kashmir on 4th August 2019, when Article 370 of the Constitution was abrogated by the Parliament of India recorded the longest shutdown in India.  In the initial days, landline and mobile services were restricted as well. While the ban on landline and mobiles was lifted soon, 2G services were restored for “verified users” on 25th January 2020. Only whitelisted websites could be accessed and social media remained prohibited. A new order was passed on 4th of March 2020, by the administration of J&K, according to which the whitelist was removed but internet could only be accessed using 2G on verified SIM's. As Kashmir is still languishing without high-speed internet, at least 7 million have been affected due to the shutdown.

Anti CAA-NRC Protests in Lucknow | Source: Youtube

In December, 2019, during the notable protests against the Citizenship Amendment Act, the authorities in the states of Assam, Meghalaya and Tripura severed internet connection as they supposedly cited a threat of violence and false rumors. Parts of West Bengal and Uttar Pradesh were also under a digital lockdown. Internet shutdowns come with a great cost. Every time the central or state government decides to cut the internet, a large number of students, businesses, travelers, online journalists and influencers are affected resulting in a huge monetary loss. According to a report by TopVPN, India has lost nearly $2.7 billion due to all the 83 internet shutdowns in 2020 alone. This loss is greater than the combined loss of the next 10 countries in the list. The report also revealed that India also stayed offline for longer than any other country, at 8,927 hours last year. The largest contributor to this figure is the 213-day shutdown in Kashmir.

The Kashmir Chamber of Commerce reported that the cumulative loss due to the internet shutdown and restriction in the region was $5.3 billion. The authorities say that these shutdowns are simply to stop the spread of dangerous misinformation which they believe moves faster in social media like Facebook and messaging apps like WhatsApp. However, the internet shutdowns are usually enforced after a piece of misinformation has been spread widely. In 2018, 33 of the shutdowns were justified by the government claiming that they wanted to curb dis/misinformation. The problem is that, when you cut people off from being able to access information, the only access they have is to previous misinformation. In fact, cutting off the internet can turn a previously predictable situation into a highly volatile one. A study conducted by Stanford suggested that mass mobilization in India can occur even in the absence of social media and digital platforms. Another report published by Stanford stated, “Rumours and disinformation continue to spread with or without access to digital communication networks, whose primary role is that of accelerators of information diffusion.” In addition to this, the study found that internet shutdowns force protesters to substitute non-violent tactics for violent ones which are less reliant on effective communication and coordination. In April 2019, Sri Lankan government shutdown all social media platforms as a result of the Easter Suicide Bombings. The IFCN (International Fact-Checking Network) reported that fake news was rampant despite the shutdown. IFCN also noticed an increase in false reports on Facebook from that area. However, the above mentioned facts did not have the potential to stop India from once again disregarding the negative implications of Internet shut-down. India continues to be indifferent.

Protesting farmers at Singhu Border | Source: Harvinder Chandigarh via Wikimedia

The ongoing farmers’ protest in India against the three farm bills (now acts) passed in the parliament turned violent on 26th of January. A group of the protesting farmers who were on a tractor rally, deviated from their route and entered the Red Fort. The Union Ministry of Home Affairs temporarily suspended internet in Singhu border, Ghazipur border, Tikri border, Mukarba Chowk and Nangloi for 24 hours. On 29th of January, the State government of Haryana ordered telecom operators to shut down all mobile internet services, all SMS services, and all dongle services in 17 of the 22 districts of the state until 5 pm on January 30, 2020.

The shutdown was based on the grounds of preventing protestors from mobilising through social media and to constrain the plague of disinformation, which was spread due to the tensions at farmer camps between unidentified miscreants, farmers and later the police. But there was a lack of media coverage of the police violence while they highlighted the protestors’ response to it, essentially disseminating biased disinformation which they ‘intended’ to curb with an internet shutdown.

The Indian Telegraph Act, 1885 permits the government to block internet access in case of a public emergency. After 2017, Temporary Suspension of Telecom Services (Public Emergency or Public Safety) Rules was deployed in cases of internet shutdowns. The Rule 2(1) describes the protocol and powers for the ‘competent authority’ to issue a direction for the suspension of Internet.  The ‘competent authority’ here refers to the Home Secretary of the Union government or the State government. If obtaining prior directions from either of these authorities is not feasible, the order may be issued by an officer, not below the rank of a Joint Secretary to the Government of India. This officer should be duly authorized by the competent authority to issue suspension order and must receive confirmation from the competent authority within 24 hours of issuing such order. In January 2020, the Supreme Court directed that in addition to the Telecom suspension rules, all internet shutdowns must be made public and the orders must be a committee must review all internet shutdown orders once every seven working days to ensure if it is in accordance with the Telecom suspension rules. In November 2020, a new rule was introduced stating that a single order cannot authorize a shutdown for a period exceeding 15 days. Despite several regulations, the Internet Freedom foundation found out that there is low compliance by state governments. Even in 2019, in multiple cities, including the national capital, the suspension orders were issued by the State Police. The New York times reported there were instances where local authorities of India ordered the shutdown with just a few phone calls to the local service providers.

In addition to repression of dissent, telecom shutdowns also have an impact on healthcare services, doctors and ambulances especially in the cases of violence when they certainly have a harder time communicating with people on the ground hence creating a vacuum of information.

Arbitrarily shutting down the internet is a fundamental right violation. The frequencies of internet shutdowns in India are highly alarming. Besides, it is ironic that in 2020, the government announced its plan to bring high-speed fibre-optic based broadband to all Indian villages in the next three years. While it is most certainly beneficial to those living in these villages and to those wanting to spread propaganda, all the effort would be insignificant if the nation continues to shut down the internet at this rate of recurrence.

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