This Week in Europe: 20/05/2018

Welcome everyone to the latest edition of This Week in Europe!

Italy's populist parties, M5S and Lega, have formalised a coalition agreement for a new government. Early in the week different versions of the agreement were leaked, containing controversial measures such as a demand for a 250bn euro debt cut from the ECB and the creation of a mechanism for exiting the euro. In the end, these measures were dropped and the new government's strategy at the European level has become much fuzzier. The domestic focus, however, is clearer, with plans for mass deportations, tax cuts, guaranteed income for the poor and dropping sanctions against Russia. For now the next step is still the appointment of a Prime Minister and who this may be remains unclear.



Holding camps for asylum seekers are the source of controversy in Germany. The German town of Manching, and its holding centre, is being considered as a model to be replicated in other parts of Germany as part of Merkel's tougher stance on migration. Yet the camp has recently seen protests from those being held in the camp and the proposed plans have caused a split between the ruling CDU and SPD. Not all CDU politicians are on board either and the German police union has issued a strong criticism of the idea.

Catalonia's new leader, Quim Torra, nominated his cabinet on Saturday but the inclusion of politicians who are imprisoned or in exile has provoked a hostile response from Madrid. Spain's Prime Minister Rajoy has said that the central government will continue to maintain direct control over Catalonia. In the last elections in Catalonia, pro-independence groups won a slight majority but following the previous unofficial referendum and unilateral declaration of independence, Spain's central government imposed direct rule on Catalonia and has yet to reverse this policy.

Bosnia and Herzegovina have received a visit from Turkish President Erdogan this week. Erdogan held an election rally to mobilise Turkish voters living in Europe, a significant number of whom live in the Balkans region. Snap elections are being held in June in Turkey to help formalise the transition to a presidential system with greatly increased powers for the office of the President.

Finland is looking at easing restrictions on hiring workers from outside the EEA in response to a growing labour shortage in certain sectors. The move has already been implemented for the construction sector in Southern Finland and may be extended to other parts of the economy. Standard practice has normally been to prioritise EEA and Finnish workers but some employers are struggling to fill their posts and want to look further afield.

Finally, Macedonia's Prime Minister has stated that an agreement has been reached with Greece on the country's name. Officially known as the Former Yugoslav Republic of Macedonia (FYROM), the country has struggled to get its name recognised as Greece objects to it being referred to simply as Macedonia, fearing it would promote separatism in Greece's northern province, also called Macedonia. The new name would be the Republic of Ilinden Macedonia.

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