İBG Blog

'China's Energy Demand as A Factor in Shaping the Priorities of Kazakhstan's Foreign Policy' [PDF]

2017-06-24T20:40:00.001+03:00

After gaining independence in 1991, energy resources management has been the most important factor in both economic development strategy and shaping priorities of Kazakhstan’s foreign policy. Whereas the People's Republic of China has achieved stable economic growth momentum as a result of the economic arrangements made by Deng Xiaoping, and opening- up through accession to the WTO in 2001, the country has started to become an energy importer. Therefore, energy security has become more important for China. The large demand for energy in China is engaged in new foreign policy parameters. For this reason, China has led to establish a close dialogue with many energy supplier countries. Kazakhstan comes first among these countries because it is one of the neighboring countries of China and Kazakhstan is a partner of China on various platforms including Shanghai Cooperation Organization. In this study, firstly the relationship between foreign policy and energy resources are discussed. In addition to this, the place of energy in the Foreign Policy Concept for 2014 – 2020 of Republic of Kazakhstan is analyzed. Then the energy potential in Kazakhstan and the influence of China's energy demand in the Kazakhstan’s foreign policy are analyzed.

Just click on the link for downloading my article on China's Energy Demand as A Factor in Shaping the Priorities of Kazakhstan's Foreign Policy in the Journal of Eurasian Studies >http://dergipark.gov.tr/download/article-file/296875

'Nagorno Karabakh: Armenia’s Claims, Azerbaijan’s Position, and the Peace Efforts' [PDF]

2017-06-24T20:30:00.000+03:00

You can read my article on Nagorno Karabakh: Armenia’s Claims, Azerbaijan’s Position, and the Peace Efforts from E-International Relations Magazine, just click on the link >http://www.e-ir.info/2016/06/04/nagorno-karabakh-armenias-claims-azerbaijans-position-and-the-peace-efforts/

'Geoeconomic Imaginations: The Perception of China’s New Silk Road Initiative in Central Asia' [PDF]

2017-06-24T20:07:00.001+03:00

As a result of the economic arrangements made by Deng Xiaoping, the People's Republic of China has achieved stable economic growth momentum. Today, China has both the largest population and the largest economy in the world. Seamless access to energy resources and development of the trade routes are very important for sustainable development. At this point, perhaps the greatest project of the century, China has started the New Silk Road Initiative under the name of One Belt, One Road. China has begun to strengthen its relations with Central Asia under this project. So, how China's New Silk Road Initiative is perceived in Central Asia?This article presents an analysis of China's geoeconomic interests in Central Asia under the new Silk Road Project and perception of this project in the region.

You can download my article about Geoeconomic Imaginations: The Perception of China’s New Silk Road Initiative in Central Asia in the Journal of Human and Social Science Researches, by click on the link >http://www.itobiad.com/download/article-file/223576

Also, you can reach this article from EBSCO >http://web.a.ebscohost.com/abstract?direct

International Symposium on Eurasia Energy Issues Full Paper [PDF]

2017-06-24T19:18:00.000+03:00

First International Symposium on Eurasia Energy Issues was organized by Izmir Katip Çelebi University.

You may find my paper & other papers presented in the Symposium at http://ykb.ikc.edu.tr/UserFiles/1/fatih.tekin/1c78fe76-b9ef-4a1c-961b-7e15b80359bf.pdf

'A New Geopolitical Game In Mediterranean Hydrocarbons: Windows of Opportunities or New Challenges?' [PDF]

2017-06-24T17:32:00.000+03:00

Prof. Dr. Mesut Hakkı CAŞIN & İsa Burak GONCA

Prof. Dr. Mesut Hakkı CAŞIN is my MA thesis adviser from the Yeditepe University of Istanbul. I learned a lot from him and I am always proud of being his student.

By cliking on the link, you can reach his article about 'A New Geopolitical Game In Mediterranean Hydrocarbons: Windows of Opportunities or New Challenges?'

>http://dergipark.ulakbim.gov.tr/jocaffairs/article/view/5000130650

İsa Burak GONCA: "Contributes to the Promotion of Antalya"

2016-06-24T17:16:00.000+03:00

İsa Burak GONCA: "Contributes to the Promotion of Antalya"

General Management Tourism & Management Magazine

By clicking on the link, you can reach İsa Burak Gonca's interview with GM Magazine (Page 80) >http://www.dijimecmua.com/flash/index.php?id=6841

The Most Comprehensive Book About Russia: Putin's Country: Russian Federation Analysis

2015-12-30T13:54:00.000+02:00

The Most Comprehensive Book About Russia: Putin's Country: Russian Federation Analysis published by the Seçkin Publications in July 2015. Editor: Assoc. Dr. Irfan Kaya Ülger

Me and Prof. Dr. Timuçin Kodaman wrote a comprehensive article about Russia and Central Asia: Russia's Central Asia Policy Under Putin's Era (From 2000 to Present) by Prof. Dr. Timucin KODAMAN & Isa Burak GONCA.

You can find our article in Russia's Foreign Policy section in the book: pages between 411-427.

To buy the book: http://www.seckin.com.tr/kitap/n/117956329/title/putinve39;in-ulkesi-rusya-federasyonu-analizi-irfan-kaya-ulger.html

At the G20 Antalya Summit will geopolitics overshadow economic issues?

2015-11-13T23:16:00.001+02:00

2015 G20 leaders' summit will be held in Antalya, Turkey.

The summit will be held in Antalya on November 15-16, 2015. Global economy, strengthened growth and job creation will be taken up at the summit in Turkey. The 2015 G-20 Turkey summit will be the tenth meeting of the G-20 heads of government.

The G20 Leaders’ Summit, hosted by President Recep Tayyip Erdoğan, will be held in Antalya on 15 – 16 November.

Azerbaijan, Spain, Malaysia, Senegal, Singapore and Zimbabwe will also participate in the Antalya Summit together with the G20 members.

Approximately 13 thousand guests—of which 2,469 are media members—will participate in the two-day summit.

More than 70 meetings, including the ones at a ministerial level, have been held under the Turkish Presidency since 1 December.

The three main themes of this year’s G20 Summit were chosen as “inclusiveness, investment and implementation” based on the Turkish Presidency’s priorities. Within this framework, strengthening the global economy and making it more inclusive, deepening the dialogue and cooperation between G20 countries and Low Income Developing Countries (LIDCs), sustainable development, increasing investments, and implementation and follow-up on G20 commitments will be the main topics discussed in the Summit this year.

The Summit will commence with President Recep Tayyip Erdoğan’s welcoming ceremony of the G20 Leaders on 15 November and will continue with a working lunch in which the topics of development and climate change will be discussed. During the Summit, apart from the sessions that will gather leaders, the “Women-20” engagement group formed during the Turkish G20 Presidency will be represented.

Following the reception that Prime Minister Ahmet Davutoğlu will host in honour of the Leaders and Spouses, there will be a working dinner hosted by President Erdoğan on the topic of “Global Challenges: Terrorism and the Refugee Crisis”.

On the second day of the Summit, financial regulations, the international tax agenda, anti-corruption actions and IMF reforms will be evaluated in the “Increasing Resilience” session. After this, during a working lunch, trade and energy issues will be discussed and the Antalya Action Plan will be adopted.

The Summit will conclude with a presentation given by the Chinese President, who will assume the 2016 G20 Presidency.

Finally, the results of the Antalya Summit will be announced globally with a press conference by the Turkish President.

Both G20 and BRICS Summits will be held in Antalya in Turkey in November 2015.

Turkey tightens security for upcoming G20 Antalya Summit

What is G20?

The Group of Twenty (also known as the G-20 or G20) is an international forum for the governments and central bank governors from 20 major economies. The members, shown highlighted on the map at right, include 19 individual countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom and the United States—along with the European Union (EU).

The G-20 was founded in 1999 with the aim of studying, reviewing, and promoting high-level discussion of policy issues pertaining to the promotion of international financial stability. It seeks to address issues that go beyond the responsibilities of any one organization. Collectively, the G-20 economies account for around 85% of the gross world product (GWP), 80% of world trade (or, if excluding EU intra-trade, 75%), and two-thirds of the world population. The G-20 heads of government or heads of state have periodically conferred at summits since their initial meeting in 2008.

Antalya will also host EXPO 2016.

Especially on behalf of Antalya area, we would like to take the opportunity of expressing our gratitude to Foreign Affairs Minister of Turkey Mr. Mevlut Cavusoglu (born in Antalya) for this event, and also more.

For more info:

https://g20.org

What are the Priorities for 2015 and Key Messages of G20 under the Turkish Presidency?

2015-06-30T22:39:00.000+03:00

In 2015, G20 leaders' summit will be held in Antalya, Turkey.

What is G20?

Priorities for 2015

In 2015 under the Turkish Presidency, we will be building on previous Presidencies’ agenda and ensure a seamless continuity in the G20, while introducing new elements to ensure decisive collective action to provide inclusive and robust growth.

Three pillars of the 2015 agenda will be:

(1) Strengthening the Global Recovery and Lifting the Potential

(2) Enhancing Resilience

(3) Buttressing Sustainability

Energy Sustainability

Today, there are over 1.3 billion people who do not have access to reliable energy. Considering the urgent need to take steps to tackle this global challenge, during our Presidency, we will emphasize the issues of energy access and energy investments. In this context, we will also study the reasons behind the high costs of renewable energy investment, and examine the deployment of public and private resources to fulfill the need for energy investments. Discussions on the G20 Principles on Energy Collaboration and rationalizing and phasing out inefficient fossil fuel subsidies will be continued. We note the importance of “G20 Energy Efficiency Action Plan” and will be monitoring its implementation. We also aim to improve Joint Organisations Data Initiative and follow up the implementation of price reporting agencies principles to improve energy market transparency.

The Turkish Presidency kicked off on December 1st. Throughout the year, our Finance Ministers and Sherpas will meet four times at various venues. The Leaders’ Summit will be held in Antalya on November 15-16, 2015. In addition to the regular meetings of the G20, some other Ministerial meetings will be convened on selected topics throughout the year.

For more info:

https://g20.org.tr/

New Antalya Stadium is the world's largest solar stadium project with 1.4 MWp capacity

2015-06-30T13:17:00.000+03:00

New 33 thousand capacity Antalya Arena stadium will utilize solar energy through panels on its rooftop. This is Turkey's First Solar Powered Stadium and besides having the biggest rooftop solar energy system, the stadium draws attention in the mean of being the biggest solar energy stadium in the world.

SEISO Energy completed the project which has a capacity of 1,4 MWp.

13,000 square meters of solar panels will provide electric for the stadium and be able to feed the city grid with any excess electricity generated.

In the stadium, there are almost 6.000 photovoltaic solar panels and 60 inverter units.

Antalya becomes one of the solar powerhouses of the nation, this world-class project will surely drive the region more towards utilizing solar energy.

Expected to generate yearly 2,150 MWh electricity, the project was initiated according to Antalya Youth and Sports City Directorate’s two 700 kW unlicensed PV plant application.

Start of EU Membership Negotiations With Serbia and The European Integration of Western Balkans

2014-02-10T12:16:00.003+02:00

After the collapse of the Soviet Union, organizations such as the European Union (EU) and the NATO increase their activities in the Balkans, and the former Communist Bloc started to join these organizations as their members. In this process, Croatia became the latest member of the EU on 1 July 2013. On 21 January 2014, Serbia began negotiations for EU membership.

Serbia towards the EU...

Along with 5 other Western Balkans countries, Serbia was identified as a potential candidate for EU membership during the Thessaloniki European Council summit in 2003. In 2008, a European partnership for Serbia was adopted, setting out priorities for the country's membership application, and in 2009 Serbia formally applied. In March 2012 Serbia was granted EU candidate status. In September 2013 a Stabilization and Association Agreement between the EU and Serbia entered into force. In line with the decision of the European Council in June 2013 to open accession negotiations with Serbia, the Council adopted in December 2013 the negotiating framework and agreed to hold the 1st Intergovernmental Conference with Serbia in January 2014. On 21 January 2014, the 1st Intergovernmental Conference took place, signaling the formal start of Serbia's accession negotiations.

The EU Membership negotiations are difficult to predict in advance how long one but as one of the Western Balkan counties and one of the former Yugoslav countries, Croatia's full membership negotiations with the EU lasted about six years .

Start of EU Membership Negotiations with Serbia is very important in terms of spreading the peace, democracy and the EU standards throughout all of Europe. Well, the EU membership for Serbia is an easy and convenient way? As each of candidate countries, Serbia is required to complete 35 chapters. Serbia's priorities in order to complete this chapter is required to make constitutional changes and reforms. As in all the Balkan countries, Serbia has some problems on democracy, corruption, minority rights and freedom issues. In addition, as Serbia does not recognize Kosovo's independence, this is also a problem. Thus, Serbia's accession process does not seem like an easy way.

Why Serbia wants to join the EU?

There are several reasons. The first and the most important reason is economic stability. The rate of unemployment is the biggest problem in Serbia. PM of Serbia, Ivica Dacic said, referring to Serbia's 25% unemployment rate, which sits below only Spain and Greece in the EU. The other reasons are higher standard of living, better law, less corruption, more opportunities in education, technological advancement, and free EU funds such as IPA. The second level of benefits is energy stability, EU law as member's protection in many aspects, no visa....

The EU is huge market. EU membership is a chance for Serbia to join the world's largest trading bloc and will offer access to funding for infrastructure projects and the country's poorer regions.

Serbia can join the EU without Recognizing of Kosovo?

On Tuesday, January 21, 2014, after the start of Serbia's accession negotiations with the EU, Kosovo issue has come directly to mind. Serbian President Tomislav Nikolic said that his country will not recognize Kosovo's independence as the price for entering the European Union.

While "normalization" of ties between Serbia and Kosovo is a key criterion for each side's hopes of European integration, MEPs remain divided on whether “normalized" relations must include mutual diplomatic recognition. Ulrike Lunacek, European Parliament rapporteur for Kosovo, on Monday that Serbia would have to recognize the independence of its former province before joining the EU because the club does not want “a second Cyprus. “Even the non-recognizers [of Kosovo's independence] won’t accept Serbia in the EU if Serbia does not recognize it [Kosovo] because that would mean something like Cyprus,” she added. The EU allowed Cyprus to join in 2004 although the island remains divided into Greek and Turkish areas. Many European politicians have since described this as a mistake, as the Cyprus government has used its position inside the EU to isolate Turkish Cypriots. “The ideal thing would be to have both countries joining at the same time," the MEP said, referring to Kosovo and Serbia.

Serbia expects everything positive from the EU, except Kosovo - a hot potato in the mouth. Kosovo got independency, someone should accept in Belgrade. It's not possible overnight. As you know economic stability is primary reason of EU membership. There will not be easy to become member, there are many things to do. What can they lose? Kosovo? It's already independent. Actually Serbia could not control Kosovo for almost a three decade. They have border with Albania, but Kosovars didn't cooperate in anything.

Is there any other option for Serbia except EU membership in its foreign policy?

Right now, it seems there is no another option. Russia is far and didn't invest so much in Serbia, Greece is in debt. Who will help? Milosevic try to walk alone and gave up.

Does Russia support Serbia's Eu membership?

Yes, why not? It's better to sell expensive gas to EU and young members or candidates. Russia only does not support Serbian NATO membership. The enlargement process of the EU continues, and the Union's eastern border has reached to the Balkan countries and the Black Sea. During the Cold War, Russia saw Balkans as backyard is a fact. Primarily need to mention here is that the Russia's Cold War tactics that will not be very effective in the Balkans today, because Russia has not a good offer for Balkan countries to be an alternative for EU.

However, Russia has not given up her interests in the Balkans. The EU aims to diversify away from Russian natural gas supplies, but Russian gas supplies destined for Europe will pass directly through the Balkans. Thus, Russia will continue to remain Europe's primary energy supplier.

Moreover, Serbia cannot be an island inside the EU. Switzerland is exception with reason. Russia intend to have own player inside EU. Why to do that? Gas is very expensive now. In last 10 years, the price was going up for 70-100%.

If Serbia joins to Eu, how it will affect Western Balkans?

You cannot be new member and immediately spread some negative things, but if Serbia joins to the EU, Western Balkans positively affected by this imminent event. Serbia’s EU Membership can provide more stability in this region.

İsa Burak GONCA

References

European Commission, “Enlargement: Serbia”, 2014,

http://ec.europa.eu/enlargement/countries/detailed-country-information/serbia/index_en.htm

JOY, Oliver “Serbian Prime Minister: We will be next to join European Union”, CNN, 2013,

http://edition.cnn.com/2013/10/03/business/serbian-prime-minister-dacic-eu-membership/

Kosovo Compromise, “Serbia Must Recognise Kosovo to Join EU, MEP”, 2014,

http://www.kosovocompromise.com/cms/item/latestnews/en.html?view=story&id=5122&sectionId=1

RUPNIK, Jacques, “The Western Balkans and The EU: The hour of Europe”, Chaillot Papers, June 2011

The European Union Institutions and Their Functions

2013-07-17T16:52:00.000+03:00

Unlike other international organizations, the European Union, just as a state, has several institutions.

Even looking at the EU's institutions, realizes that her uniqueness.

According to the Article 13 of the Treaty of the European Union, the European Union's institutions shall be:

The European Parliament

The European Commission

The Council of the European Union

The European Council

Court of Justice of the European Union

The European Court of Auditors

The European Central Bank

Other institution, body and Agencies

In the EU's unique institutional set-up:

the EU's broad priorities are set by the European Council, which brings together national and EU-level leaders
directly elected MEPs represent European citizens in the European Parliament
the interests of the EU as a whole are promoted by the European Commission, whose members are appointed by national governments
governments defend their own country's national interests in the Council of the European Union.

Setting the agenda

The European Council sets the EU's overall political direction – but has no powers to pass laws. Led by its President – currently Herman Van Rompuy – and comprising national heads of state or government and the President of the Commission, it meets for a few days at a time at least every 6 months.

Law-making

There are 3 main institutions involved in EU legislation:

the European Parliament, which represents the EU’s citizens and is directly elected by them;
the Council of the European Union, which represents the governments of the individual member countries. The Presidency of the Council is shared by the member states on a rotating basis.
the European Commission, which represents the interests of the Union as a whole.

Together, these three institutions produce through the "Ordinary Legislative Procedure" (ex "co-decision") the policies and laws that apply throughout the EU. In principle, the Commission proposes new laws, and the Parliament and Council adopt them. The Commission and the member countries then implement them, and the Commission ensures that the laws are properly applied and implemented.

Decision-making in the EU – more on EU law-making procedures

List of Presidencies of the Council of the EU – 2011-2020

Other EU institutions

Two other institutions play vital roles:

the Court of Justice upholds the rule of European law
the Court of Auditors checks the financing of the EU's activities.

The powers and responsibilities of all of these institutions are laid down in the Treaties, which are the foundation of everything the EU does. They also lay down the rules and procedures that the EU institutions must follow. The Treaties are agreed by the presidents and/or prime ministers of all the EU countries, and ratified by their parliaments.

The Global Corruption Barometer 2013 Announced

2013-07-10T00:03:00.000+03:00

Transparency International asked over 114,000 people in 107 countries for their views on corruption.

More than half of people believe the level of corruption in their countries has increased over the past two years, according to the world's largest public opinion survey on the subject.

Here is the Global Statistics by Transparency International:

For more information: http://www.transparency.org/

Dramatic History of Europe and the Emergence of the European Union

2013-07-08T22:39:00.000+03:00

Europe is one of the world's seven continents where approximately 740 million people living in. It is the world's second-smallest continent by surface area, covering about 10,180,000 square kilometres (3,930,000 sq mi) or 2% of the Earth's surface and about 6.8% of its land area. Everything in this small continent was not nearly as positive and stable, because there was seen at least one major war between nations of Europe in every hundred years.

World War II Deaths

Before the establishment of the European Union, it is known that the nations of Europe fought constantly with each other. In fact, some of the largest and bloodiest wars in the history of the world has existed on this continent such as World War I, World War II, Thirty Years' War, Napoleonic Wars, and French Wars of Religion.

Franco-German Wars

In addition, France and Germany fought three times between 1870 and 1945. With the end of the Second World War in Europe, millions of people have died, and the states of Europe had collapsed economically.

Finally people understood that the wars between the European nations always damaging to Europe.

At this point, the idea of the unity of the European states began to emerge.

In the 17th century, Immanuel Kant, Saint Simon, Wiliam Penny, Maximillian Jully and Victor Hugo that make up the infrastructure of this idea, and believes that one day the European union would be realized.

In fact, in 1856, by the Treaty of Paris was signed by five European countries, an alliance which is called as the Concert of Europe was founded.

The term of "United States of Europe" which was invented during the 19th century, and frequently used by the Austrian statesman Coudenhove-Kalergi, and French politician Briand in the 20th century.

Of course, all of these efforts collapsed with the rise of fascism especially in Germany and Italy in the 1930s. After the World War II, European people united around the idea of "Never Again War".

In addition to the social and economic reasons, another factor for the acceleration of the process of formation of the European Union has been the aggressive policy of the Soviet Union.

Zürich, Switzerland

The term "United States of Europe" was used also by Winston Churchill in his speech delivered on 19 September 1946 at the University of Zürich, Switzerland.In this speech given after the end of the Second World War, Churchill concluded that:

"We must build a kind of United States of Europe. In this way only will hundreds of millions of toilers be able to regain the simple joys and hopes which make life worth living".

In 1949, the Council of Europe was founded . It is an international organisation promoting co-operation between all countries of Europe in the areas of legal standards, human rights, democratic development, the rule of law and cultural co-operation. It has 47 member states with some 800 million citizens.

Jean Monnet Father of Europe

Of course we should not forget the efforts of Jean Monnet who is the father of Europe. Following World War II, France was in severe need of reconstruction and completely dependent on coal from Germany's main remaining coal-mining areas, the Ruhr and Saar areas. In 1945 Monnet proposed the Monnet Plan, also known as the "Theory of l'Engrenage" (not to be confused with the Schuman plan). It included taking control of the remaining German coal-producing areas and reditecting the production away from the German industry and into the French, thus permanently weakening Germany and raising the French economy considerably above its pre-war levels. The plan was adopted by Charles de Gaulle in early 1946.

Konrad Adenauer & Robert Schuman

When tensions between France and Germany rose over the control of the then vital coal and steel industries, Monnet and his associates conceived the idea of a European Community. On 9 May 1950, with the agreement of Chancellor Konrad Adenauer of West Germany, French Minister of Foreign Affairs Robert Schuman made a declaration in the name of the French government. This declaration, prepared by Monnet for Schuman, proposed integration of the French and German coal and steel industries under joint control, a so-called High Authority, open to the other countries of Europe. Schuman declared:

"Through the consolidation of basic production and the institution of a new High Authority, whose decisions will bind France, Germany and the other countries that join, this proposal represents the first concrete step towards a European federation, imperative for the preservation of peace."

European Coal and Steel Community

When Germany agreed to join the European Coal and Steel Community according to the Schuman Plan in 1951, the ongoing dismantling of German industry was halted and some of the restrictions on German industrial output were lifted. West Germany joined the ECSC, alongside Italy, Belgium, Luxembourg and the Netherlands, while Britain refused, on grounds of national sovereignty. In 1952, Jean Monnet became the first president of the High Authority and with the opening of the common market for coal under the ECSC in 1953, the last civilian production limitations placed on German industry were lifted, and the role of the IAR was taken over by the ECSC.

European Coal & Steel Community Flag

The ECSC was first proposed by French foreign minister Robert Schuman on 9 May 1950 as a way to prevent further war between France and Germany. He declared his aim was to "make war not only unthinkable but materially impossible." The means to do so, Europe's first supranational community, was formally established by the Treaty of Paris (1951), signed not only by France and West Germany, but also by Italy and the three Benelux states: Belgium, the Netherlands and Luxembourg. Between these states the ECSC would create a common market for coal and steel. The ECSC was governed by a "High Authority", checked by bodies representing governments, MPs and an independent judiciary.

The ECSC was joined by two other similar communities in 1957 with Treaty of Rome, EEC and EURATOM, with whom it shared its membership and some institutions. In 1967 all its institutions were merged with that of the European Economic Community (EEC, which later became part of the European Union), but it retained its own independent identity.

The Merger Treaty (1967) (or Brussels Treaty) was a European treaty which combined the executive bodies of the European Coal and Steel Community (ECSC), European Atomic Energy Community (Euratom) and the European Economic Community (EEC) into a single institutional structure.

On 1 July 1968, six countries – Belgium, France, Germany, Italy, Luxembourg and Holland – abolished the last duties on goods movements among themselves, creating a European customs union. Besides doing away with trade barriers between member countries of what has become the European Union, the customs union established a common tariff on all goods entering these countries.

Charles de Gaulle

French president Charles de Gaulle strongly resisted, arguing that the UK was closer to American policies than European ones, and would therefore attempt to "sabotage" the community. Consequently, France vetoed the UK's first attempt at achieving membership in 1963, and in 1967.

Of course, the expansion of the 1970s and 1980s, was important steps for the European Union. In 1973, the Communities enlarged to include Denmark (including Greenland, which later left the Community in 1985), Ireland, and the United Kingdom. Norway had negotiated to join at the same time, but Norwegian voters rejected membership in a referendum. In 1979, the first direct, democratic elections to the European Parliament were held. Greece joined in 1981; Portugal and Spain in 1986.In 1985, the Schengen Agreement led the way toward the creation of open borders without passport controls between most member states and some non-member states. In 1986, the European flag began to be used by the Community and the Single European Act was signed.

The Single European Act (SEA) was the first major revision of the 1957 Treaty of Rome. The Act set the European Community an objective of establishing a Single market by 31 December 1992, and codified European Political Cooperation, the forerunner of the European Union's Common Foreign and Security Policy. It was signed at Luxembourg on 17 February 1986, and at The Hague on 28 February 1986. It came into effect on 1 July 1987, under the Jacques Delors Commission.

Helmut Kohl & François Mitterrand

The European Union was formally established when the Maastricht Treaty—whose main architects were Helmut Kohl and François Mitterrand. 1992-1993 The Maastricht Treaty (formally, the Treaty on European Union or TEU) was signed on 7 February 1992 by the members of the European Community in Maastricht, Netherlands. On 9–10 December 1991, the same city hosted the European Council which drafted the treaty.Upon its entry into force on 1 November 1993 during the Delors Commission, it created the European Union and led to the creation of the single European currency, the Euro. The Maastricht Treaty has been amended by the treaties of Amsterdam, Nice and Lisbon.

In 1995, Austria, Finland, and Sweden joined the EU. In 2002, Euro banknotes and coins replaced national currencies in 12 of the member states. Since then, the Eurozone has increased to encompass 17 countries. In 2004, the EU saw its biggest enlargement to date when Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia joined the Union. On 1 January 2007, Romania and Bulgaria became EU members. In the same year Slovenia adopted the euro, followed in 2008 by Cyprus and Malta, by Slovakia in 2009, and by Estonia in 2011.

On 1 December 2009, the Lisbon Treaty entered into force and reformed many aspects of the EU. In particular, it changed the legal structure of the European Union, merging the EU three pillars system into a single legal entity provisioned with a legal personality, created a permanent President of the European Council, the first of which was Herman Van Rompuy, and strengthened the High Representative, Catherine Ashton.

Herman Van Rompuy & Catherine Ashton

The European Union received the 2012 Nobel Peace Prize for having "contributed to the advancement of peace and reconciliation, democracy, and human rights in Europe." On 1 July 2013, Croatia became the 28th EU member.

Although the monetary union has been shaken by the European sovereign-debt crisis since 2009 and Accession of Cyprus to continue the controversial, the European Union still has its own unique and unparalleled in the world. Thanks to the European Union, bloody wars ended in Europe today.

Understanding the Conflict: China and Japan Island Dispute

2012-09-25T18:36:00.000+03:00

The relations between China and Japan have reached "breaking point" after a territorial row over a group of islands, known as the Senkaku islands in Japan and the Diaoyu islands in China. What are the facts behind this event? Why are these tiny islands so important for both countries? Is there just a historical reason behind it?

The Senkaku Islands also known as the Diaoyu Islands are a group of uninhabited islands controlled by Japan in the East China Sea. They are located roughly due east of Mainland China, northeast of Taiwan, west of Okinawa Island, and north of the southwestern end of the Ryukyu Islands.

The Senkaku Islands also known as the Diaoyu Islands

So why the relations so tense? The islands are important for both countries, because they are close to strategically important shipping lanes, offer rich fishing grounds and are thought to contain oil deposits. If you want to have a powerful state, you should reach cheap energy resources, make strong economy and spread the sphere of influence. This influence can be coercive, attractive, or competitive.

American author Charles W. Freeman, Jr. described power as the following:

"Power is the capacity to direct the decisions and actions of others. Power derives from strength and will. Strength comes from the transformation of resources into capabilities. Will infuses objectives with resolve. Strategy marshals capabilities and brings them to bear with precision. Statecraft seeks through strategy to magnify the mass, relevance, impact, and irresistibility of power. It guides the ways the state deploys and applies its power abroad. These ways embrace the arts of war, espionage, and diplomacy. The practitioners of these three arts are the paladins of statecraft"

A country's power determines its stats in the international arena. Although there are some historical roots of this dispute, the main reason of tense of relations is the power. Japan and China are the great powers of their regions, so their interests will clash like in this dispute. The islands have strategical and economic importance for both countries. Obtaining these islands will also show the world who is the chief of the region.

In addition, The Chinese Communist Party’s (CCP’s) 18th National Congress originally scheduled for the fall of 2012. So, Chinese leaders will not want to be seen as weak. So, they will try to bring to the fore the feelings of nationalism in China. Japan will also act like China.

Bo Xilai

However, we should not forget that the Chinese government also has been trying to focus national attention away from allegations of corruption and abuse of power involving a prominent former Communist Party official, Bo Xilai.

Consequently, these two rival states will not do something wrong to shake their influence in the international arena. Moreover, while the financial crisis continues in the world, other states will not want to go to war like in the Korean War and they will assume the role of mediator.

Yesterday and Today in the European Union: The First Enlargement of the European Communities

2012-02-13T20:49:00.002+02:00

Introduction

This article focus on European Communities. Firstly, it tries to explain the beginnings of integration after Second World War. After that, it give information about European Communities such as European Coal and Steel Community (ECSC) and European Economic Community (EEC). Finally, I analyzes the first enlargement of European Communities. In addition, it gives some information about establishment of the European Union.

The Beginnings of Integration after World War Two in Europe

If people look the political history of Europe, they will see wars between European countries. After Second World War, there was a destroyed Europe. Whole Europe had damaged or destroyed as financial, social and political. This war was the biggest one and it was bigger than First World War. In Second World War, millions of people were dead in Europe so Europeans wanted to stop these wars and permanent peace in Europe so providing peace between European states was very difficult.

In 20 September 1946, Winston Churchill made a special speech at the University of Zurich in Switzerland. According to Churchill, “The first step in the re-creation of the European Family must be a partnership between France and Germany. In this way only can France recover the moral and cultural leadership of Europe. There can be no revival of Europe without a spiritually great France and a spiritually great Germany. The structure of the United States of Europe, if well and truly built, will be such as to make the material strength of a single state less important. Small nations will count as much as large ones and gain their honor by their contribution to the common cause. The ancient states and principalities of Germany, freely joined together for mutual convenience in a federal system, might take their individual places among the United States of Europe.” This means that Europeans must build a kind of United States of Europe so this makes the speech very important because it was first signal of integration of Europe.

This speech became very effective on European countries and in 5 May 1949 the Council of Europe was established by treaty of London. Winston Churchill was a very important man for the process of integration of Europe but there were other actors for this process. They were German Prime Minister Konrad Adenauer, Italian Prime Minister Alcide de Gasperi, the Belgian Leader Paul Henry Spaak and French Foreign Minister Robert Schuman. There is no doubt that they are very important men for the integration process. There was also Jean Monnet who was known as the father of Europe. In 1950, Jean Monnet persuaded the French foreign minister Robert Schuman for declared a plan to a pooling of Europe` s coal and steel resources. In 1951, six countries signed the Treaty of Paris that establishes the European Coal and Steel Community. After that integration between European countries developed and now Europe has a strong union which is European Union.

European Communities after Second World War

After Second World War, European Integration started with establishment of the Council of Europe. Then this integration continued with establishment some communities in Europe. Firstly, the European Coal and Steel Community (ECSC) was established in 1951 by the Treaty of Paris signed by 6 countries which are France, Germany, Italy, Belgium, Luxembourg and the Netherlands. “At last, the Treaty establishing the European Coal and Steel Community was signed in Paris on 18 April 1951 and entered into force on 24 July 1952, with a validity period limited to 50 years. The Treaty expired on 23 July 2002. The common market advocated by the Treaty opened on 10 February 1953 for coal, iron ore and scrap and on 1 May 1953 for steel.” It created a common market for coal and steel so it would stop the war between European states and create integration between European states. Secondly, the European Defense Community (EDC) was established was signed on 27 May 1952. The European Defense Community was established against Soviet block. The EDC included West Germany, France, Italy, and the Benelux countries but it was not effective because it was high politics therefore too political and too controversial because of this, European powers decided to make low politics so they established the European Economic Community (EEC). “European Economic Community (EEC), organization established (1958) by a treaty signed in 1957 by Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany (now Germany); it was known informally as the Common Market. The EEC was the most significant of the three treaty organizations that were consolidated in 1967 to form the European Community (EC; known since the ratification [1993] of the Maastricht treaty as the European Union). The EEC had as its aim the eventual economic union of its member nations, ultimately leading to political union. It worked for the free movement of labor and capital, the abolition of trusts and cartels, and the development of joint and reciprocal policies on labor, social welfare, agriculture, transport, and foreign trade.”

As a result, all of these communities make a formation. European Union existed with this formation so all of these communities and their processes are very important.

First Enlargement of European Communities: From Six to Twelve and More

First enlargement of European Communities starts with joining of Britain, Denmark and Ireland. Actually, Britain is very big and powerful country so people can ask a question. Why did not Britain become one of the founder members of these communities? Answer is in the beginning, Britain did not believe that these communities can become successful so they did not join these communities although the Britain had been invited to take part in both in the European Coal and Steel Community and in the European Economic and Atomic Energy Communities. “In 1960s, Britain recognizes that these communities became successful and they are going a strong unification in Europe so they applied 3 times but their applications have been veto. In 1973, Britain joined the community with Denmark and Ireland. This was the first enlargement for the community.”

After this enlargement, European communities became more powerful and they continued to enlargement. In 1981, Greece joined communities and in 1986, Portugal and joined.

“With a wave of new enlargements on the way, the Maastricht Treaty was signed on 7 February 1992 which established the European Union when it came into force the following year. On 1 November 1993, under the third Delors Commission, the Maastricht Treaty (Treaty on the European Union) became effective.” Thus, all communities of Europe are united under European Union.

European Union is an international and supranational organization that it provides peace, security common market, etc. in Europe and it still provides.

Conclusion

Firstly, this article mentioned about the beginnings of integration after Second World War in Europe. It tried to explain the process of the integration in Europe. After that, this article tried to help to give information about European Communities because these communities are very important for integration and they are a part of integration process such as it gave information about three main communities; the European Coal and Steel Community, the European Defense Community and the European Economic Community. In the last part of the article, it mentioned about the first enlargement of European Communities and it stated what happened after this enlargement.

As a result, this integration process is very important for Europeans because it made peace for Europe. After this process there is no war between European states, anymore so first enlargement and continued enlargements are important. Today, there is European Union so there is peace, wealth, presence in Europe.

İsa Burak GONCA

References:
http://www.ellopos.net/politics/churchill-europe.asp?pg=3
http://europa.eu/scadplus/treaties/ecsc_en.htm
http://www.infoplease.com/ce6/history/A0817889.html
Pinder, J., European Community: The Building of a Union. New York: Opus, 1995

Turkey - Pakistan Relations: A Deep Bond of Brotherhood

2012-02-02T13:36:00.001+02:00

Pakistan is the second largest Muslim country in terms of percentage of population after Indonesia, and its status as a declared nuclear power, being the only Islamic nation to have that status, plays a part in its international role. Moreover, she is the 27th largest in the world in terms of PPP and the 45th largest in nominal terms. The economy of Pakistan is South Asia's second largest economy; representing about 15 percent of regional GDP. On the other hand, Turkey is centrally located between Europe, Central Asia and the Middle East. In addition, Turkey has the largest Muslim GDP without any oil reserves. Although there is not described a nuclear power in Turkey, she has the second largest armed forces in NATO. Nevertheless Turkey's economy is developing rapidly. Turkey has the world's 15th largest GDP-PPP and 17th largest Nominal GDP. The country is a founding member of the OECD and the G-20 major economies. According to WEO, Turkey is 6th largest economy compared with the 27 EU Countries in 2011. Turkey is an important energy terminal and corridor in Europe connecting the East and the West. She is in the EU Customs Union since 1996 and an EU accession country since October 2005. Turkey is the 15th most attractive FDI destination for 2008-2010 (UNCTAD).

Pakistani–Turkish relations have been traditionally strong. Both nations maintain extensive cultural, commercial, strategic and military cooperation. Both Turkey and Pakistan are Muslim-majority states and share extensive cultural and geopolitical links. Turkey considers the Islamic Republic of Pakistan, with which it is bound with fraternal ties, as one of the prominent players for the security and stability of the region. The people of both countries have brotherly relations which date back centuries. These relations have been traditionally strong. Relations between Pakistan and Turkey are exemplary. Turkey established diplomatic relations soon after the independence of Pakistan in 1947 and bilateral relations became increasingly close owing to cultural, religious and geopolitical links between the two countries. Pakistan's founder Muhammad Ali Jinnah expressed admiration for Turkey's founding leader Mustafa Kemal Atatürk and also a desire to develop Pakistan on the Turkish model of modernism and secularism. Similar ideas were expressed by the former President of Pakistan Pervez Musharraf, who grew up in Turkey and had received extensive military training there. Jinnah is honored as a great leader in Turkey, and a major road of the Turkish capital Ankara, the Cinnah Caddesi is named after him, while roads in Islamabad, Karachi, Lahore, Peshawar, and Larkana are named after Atatürk. On 26 October 2009, Recep Tayyip Erdoğan was awarded the Nishan-e-Pakistan and was the fourth world leader who spoke to the Pakistani parliament. Erdoğan said that Pakistan had always occupied a special place in the hearts and minds of the Turkish government and people.

Turkey and Pakistan are founding members of the Economic Cooperation Organization and part of the Developing 8 Countries (D-8) organization. Both nations have worked to negotiate a preferential trading agreement, aiming to considerably increase trade and investments, especially in transport, telecommunications, manufacturing, tourism and other industries.

The positive reflection of the excellent bilateral relations can also be seen in the international fora. Turkey and Pakistan are supporting each other in all international platforms. By pursuing active and constructive policies in multilateral processes such as Friends of Democratic Pakistan (FoDP), as well as organizing Turkey-Pakistan-Afghanistan Trilateral Summits, Turkey deems the contributions to the peace and stability in this region as a priority.

The U.S.A accuses Pakistan Trust Services of aiding and abetting the organs of terrorism in these days, Turkey should be more support to Pakistan, because supporting Pakistan is a must for the peace in the region of Pakistan which includes Afghanistan, India, and Iran.

İsa Burak GONCA

References

“Pakistan Country Report” http://www.radaid.org/UploadedFiles/RADAID%20Pakistan%20Health%20Care%20Radiology%20Report%202011.pdf

"Recent developments". The World Bank. June 2011.

"Pakistan May Keep Key Rate Unchanged After Two Cuts This Year". Bloomberg. 28 September 2009. Retrieved 2 January 2010.

"One Nation-Two States". Hurriet daily news.

"Pak-Turk political relations". Turkish Ministry of Foreign Affairs.

"Pak-Turk strong relations". Daily Hurriet News.

"Turkey and Pakistan: Bridging the Growing Divergence" Center for Strategic Research.

Anderson, Paul (2003-06-16). "Turkey and Pakistan boost ties". BBC News.

"Turkey and Pakistan join forces". Center for Strategic Research

"Turkey to sign PTA with Pakistan". Daily Times, Pakistan. 2005-04-16.

"Pakistan, Turkey discuss defence co-production"

"Trade between Pakistan & Turkey". Federation of Pakistan Chambers of Commerce and Industry

Japan Has Recorded Her First Annual Trade Deficit For More Than 30 Years

2012-01-25T21:55:00.000+02:00

Japan has recorded trade deficit for the first time after a lapse of thirty years. Economy of cars and electronic goods, particularly key export products of importance to come to Japan's foreign trade deficit, last year's earthquake and tsunami disaster that occurred on March 11, overvaluation in Yen and energy bills increase was effective.

According to the Ministry of Finance of Japan, the world's third largest economy, foreign trade deficit in 2011 2 49 trillion yen (32 billion U.S. dollars) reached.

The country's imports rose 12 percent last year, exports declined by 2.7 percent, 65.55 trillion yen (843 billion U.S. dollars) declined.

In addition, European and U.S. economies, due to the uncertainty of global investors turn to yen, and Japanese exports to the appreciation of the currency led to the increased cost of products in foreign markets.

In addition, the tsunami Fukushima nuclear power plant accident are forced to close because of the large number of nuclear plant outside of Japan during this period had to increase the power of the source of a considerable amount.

In December, Japan's foreign trade deficit of 205.1 billion yen (5.6 billion dollars) was recorded.

The period in question the country's exports fell by 8 per cent over the same month the previous year, imports increased by 8.1 percent.

The South Stream Project and the European Union's Energy Supply Security

2011-12-29T18:13:00.000+02:00

After the project of Trans-Anatolia Natural Gas Pipeline (TANAP) was signed between Turkey and Azerbaijan, the South Stream project was signed between Turkey and Russia, yesterday. Russia reaches Southstream agreement with Turkey. Russia has said it has reached an agreement with Ankara permitting Moscow to bed down the Southstream natural gas pipeline to Europe via Turkish territorial waters. The agreement of the construction of South Stream was signed with the participation of Energy and Natural Resources Minister of Turkey, Taner Yildiz, Russian Deputy Prime Minister Igor Sechin and Russian Prime Minister Vladimir Putin. This seems like the second giant step for Turkey in energy, but it can create some problems in the future for Turkey and Europe.

In South Stream project, Russia's overall objective seems like a strategy to bypass Ukraine’s gas transit system. However, Russia's other aim may be bypassing the Nabucco project through South Stream Pipeline?

Nabucco is planned to carry gas from the Caucasus and Central Asia to the European Union aimed at reducing dependence on Russian gas. Some countries in Europe were not pleasant after the South Stream agreement between Turkey and Russia.

Turkey argues that the two natural gas pipeline would be complementary to each other.

According to the Financial Times, about 15 billion Euros in the future of Nabucco natural gas not provided sufficient to justify the investment because of doubts about the uncertain situation.

İsa Burak GONCA

North Korean leader Kim Jong-il dead

2011-12-20T01:12:00.000+02:00

Chosun Central News Agency (KCNA) reported on the morning of the 19th that North Korean Leader Kim Jong Il died on his private train due to overwork on the 17th at 8:30 a.m.

In a short dispatch, KCA stated, "Chariman Kim passed away in the train on December 17th, 2011 at 8:30am due to physical overwork."

He took the helm of the communist state upon the death of his father and national founder Kim Il-sung in 1994. His successor, Kim Jong-il has announced that 20 year-old son, Kim Jong Un.

According to press in South Korea, North Korea test-fires missile after Kim Jong-il had died. South Korea's Yonhap news agency claimed, a military official made a statement that the missile test is linked to the death of Kim Jong-il. South Korea and Japan is on the emergency situation.

After the death of North Korean leader, North Korea may behave aggressively in the short term in order to sort of show weak or not exposures. But in the long run, this aggressive attitude of North Korea will give up if the young leader of North Korea does not become the victim of his ambitions.

It’s a surprise but nothing to get alarmed about. There is probably no need to put the South Korean military on alert. Let’s see how this is digested in North Korea. There might be interesting developments in North Korea in near future.

Putin's party wins but suffers setback in Russian Duma Election

2011-12-04T22:45:00.001+02:00

Today's parliamentary elections in Russia, Vladimir Putin's ruling United Russia Party had won the day. Putin's United Russia Party won 49.5 percent of votes, a significant drop from their current two-thirds majority in parliament with a decline from 315 seats to around 220 in Russia's 450-seat State Duma - lower house of parliament after Sunday's election. Putin's party won 64 percent of the vote in 2007, but his party won 50 percent of votes in the last election.

The Communist Party of the Russian Federation came in second to United Russia, polling 19.8 percent of the vote. Third and fourth were closely contested, according to exit polls, with the Liberal Democratic Party of Russia brining in 12.8 percent, and the centrist Fair Russia party gaining 11.4 percent.

In the meantime, the Communist Party, said in a statement from its website, the elections were conducted largely systematic and lawlessness.

United Russia has been the country's leading political force for the better part of a decade. It was created by Putin in 2001. A strong showing in the parliamentary elections would be considered a boost to Putin's campaign for president, which will be decided in a vote 2012.

10 years of BRIC countries

2011-12-01T12:31:00.001+02:00

Ten years ago, Goldman Sachs' global economist Jim O'Neill introduced the BRIC statement into our lives. He argues that "the economic potential of Brazil, Russia, India and China is such that they could become among the four most dominant economies by the year 2050" (Financial Times, 2006).

Since 2001, the BRIC countries continued to develop rapidly. 2008 Financial Crisis affected even if they are not influenced much of Europe and America. In ten years, the BRIC countries have made a lot of meetings and have signed for co-operation.

Can the BRIC be rival of the European Union or ASEAN as a political alliance?

BRIC countries (Brazil, Russia, India, China) continued to develop in the last 10 years. Today when we look at the European Union, we can see that the Euro zone started to clattered. Moreover, the European Union appears as economical union instead of a political union, the biggest disadvantage of the union is that there is not a common foreign policy and energy policy. ASEAN also has the same problems. If your union has not a powerful country like China, you cannot influence your region easily. Therefore, a strong association between the BRIC countries will affect both the European Union and ASEAN.

CIVETS versus BRIC

The biggest rival or alternative of BRIC can be CIVETS. "A colleague at the Economist Intelligence Unit has suggested more attention be paid in 2010 to the CIVETS: a second tier of big emerging markets consisting of Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa" (Economist, 2009). The CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa) is an acronym for favored emerging markets coined in late 2009 by Robert Ward, Global Forecasting Director for the Economist Intelligence Unit (EIU). The term has also been used by HSBC's chief executive Michael Geoghegan. These countries are favored for several reasons, such as a dynamic and diverse economy and a young growing population. So, CIVETS can be a powerful alternative of BRIC.

Last but not least, both BRIC and CIVETS countries can affect deeply G-6 countries (France, Germany, Italy, Japan, the United Kingdom and the United States. To become politically active, the United Nations Security Council five permanent countries' veto right needs to be resolved.

İsa Burak GONCA

Energy giant Shell signs Turkish oil and gas deal

2011-11-24T12:22:00.001+02:00

Energy giant Royal Dutch Shell signed a deal Wednesday with the Turkish state-run petroleum company, TPAO, to explore oil and gas.

The deal will allow the two companies to search for oil and natural gas offshore in the Mediterranean as well as onshore in Turkey's southeast region, the paper said on its website.

Turkey has long-running disputes with Greek Cyprus over delineating the Mediterranean and Aegean seas for the exploration of oil and gas resources.

Turkish Energy Minister Taner Yildiz said last Wednesday in Ankara that the deal, if sealed with Shell, would pave the way for the exploration of oil and natural gas on the Turkish lands and seas.

“TPAO [Turkish Petroleum Corporation] and Shell will undersign a joint operation agreement on Nov. 23 that covers exploration in the maritime areas of [the southern province of] Antalya,” Minister Taner Yıldız told the Hürriyet Daily News yesterday.

“This will be an important opening in the Mediterranean. We are moving our strategic weight from the BlackSea to the Mediterranean Sea,” Yıldız said during a phone interview.

Hungary could not resist the impact of the economic and financial crises

2011-11-21T23:28:00.001+02:00

The Hungarian government requested financial assistance from the EU Commission and the IMF that cancel the agreement with the IMF last year.

Hungary could not be reached the desired level of growth and financial stability and the government is obliged to ask for help from the IMF again.

The statement made by the Commission to "Today the Hungarian authorities have requested for a possible EU financial assistance. Moreover, Hungary have requested similar financial assistace from the IMF."

According to the Commission, financial assistance on Hungary will be decided in consultation with members of the EU and the IMF.

Among the EU's new members, Hungary has the worst economic indicators.

Hungary's public debt has reached 82 percent of economic size. In Hungary, the EU Commission expects the growth rate of 0.5 percent next year, the budget deficit to 2.8 per cent and an 11 percent unemployment rate for Hungary.

İsa Burak Gonca

Is Portugal Next?

2011-11-14T16:33:00.001+02:00

Portugal's economy shrank 0.4 percent in the third quarter from the previous quarter.

Also, the economy shrank by 0.1 percent year-on-quarter in the second quarter.

According to the Portuguese National Statistics Institute (INE), the country's gross domestic product (GDP) shrank by 0.4 percent in the third quarter-quarter basis.

The country’s economy declined by 1.7 percent in the same period of last year in the third quarter. Portugal's GDP declined by 1 percent in the second quarter on an annual basis.

“Portugal, a country of nearly 11 million, is Western Europe’s poorest, with growth that has trailed its neighbors over the past decade, something economists blame on an uncompetitive and rigid labor market. The unemployment rate has risen above 12% this year” (Financialsense, 2011).

Portugal became the third country in the euro zone affected by the debt crisis. After Greece and Ireland, Portugal received 78 billion Euros in foreign aid from the International Monetary Fund (IMF) and the European Union. In return for this help, Portugal had promised to decrease budget deficit as the level of 3 percent in 2013 which it reached year 9.1 percent of the gross domestic product in last year.

It is not far that the Euro zone debt contagion spread to all Europe. So, the possible domino effect is inevitable.

As a result, Portugal does not bode well for the economic indicators. Portugal may be the next after Greece. In Italy, Ireland, Spain and Belgium also things did not go well. For the European Union, this situation can be very difficult to carry. Of course, other countries will be affected by the situation. In particular, Europe's two biggest neighbors, Russia and Turkey that seems like unaffected by the financial crisis, but they will be affected by this situation in long-and short-term.

İsa Burak GONCA