Slovenia presses EU to muster political courage and force Israel’s hand

Last year, Slovenia, a non-permanent member of the UN Security Council, recognised Palestinian statehood and urged other EU countries to follow.

Today, seeing its push bearing fruit on the global stage, it is on another mission: to push EU countries to take concrete steps to pressure Israel into stopping the war in Gaza.

“I wish to see that also on the level of the European Union you find this political courage to act together,” Tanja Fajon, Slovenia’s Minister of Foreign and European Affairs and Deputy Prime Minister, told The National in an interview in New York on the sidelines of the UN General Assembly.

“There is a growing awareness. We have proposals on the table, whether sanctioning radical or extreme ministers of the Israeli government or do more on trade in weapons or with products from the settlements.

"These are measures that Slovenia introduced this summer bilaterally and other countries that are following that path. So there are a group of countries that are working together on a bilateral level, but also I do expect actions that are common European actions."

Ms Fajon, her country’s first female foreign minister, has been one of the fiercest European officials advocating since last year for other European nations to join it in recognising a Palestinian state.

In the past few days more countries did so, including France and the UK, making it four out of five permanent Security Council members that recognise Palestine.

European Commission staff during a protest against Israel's war on Gaza, in Brussels. AP

“We have to do more,” Ms Fajon said. “It is not enough.”

She said countries should pressure the Israeli government with concrete steps. “It's time to stop. It's time to respect international humanitarian law, the UN Charter, stop the continuation of illegal settlements and annexation in the West Bank, and allow humanitarian assistance,” she said.

“Every country has to act. It's not enough if we are not united in this message that Israel, what the government is doing, is wrong. We see genocidal acts ... So it is really a responsibility of everyone sitting in the United Nations.”

'I'm hopeful'

Ms Fajon was speaking as many European officials started calling for sanctions against Israel and its government, which includes extremist elements rejecting the two-state solution and a ceasefire in Gaza, where more than 65,300 Palestinians have been killed by Israeli fire so far.

There are sanctions on the table as a collective effort, but many think a consensus would be very hard to reach. Despite that, Ms Fajon feels hopeful.

“I'm hopeful because what we see now is with the military action in Gaza, forced displacement of people, people fleeing because they are losing their homes, having no possibilities for decency, for humanity and dignity. So I do expect that we, as the European Union and the international community, do more,” she said.

In January 2024, Slovenia became a non-permanent Security Council member for the second time in its history. After its successful election by a majority of 153 votes, and after three months as an observer, it is participating in decisions during the 2024–2025 term.

Slovenian Foreign Minister Tanja Fajon addresses the High-Level Security Council on Palestinians and Israel during the 80th session of the UN General Assembly. AP

Three months before the end of its term, many conflicts are still burning, and Ms Fajon feels the need to keep pushing until the very last day to help extinguish them. One of them is the Russia-Ukraine war.

“The Russian aggression in Ukraine is really escalating. We've seen that in the last weeks with more attacks on civilian infrastructure, even on killings of civilians, but also violating the airspace of neighbouring countries and Nato alliance countries,” Ms Fajon said.

While she is hopeful that US President Donald Trump is beginning to shift his position on Ukraine, she called for stronger US-EU co-ordination. “We are in the alliance together, we are in a strategic partnership together, and I think this is very important to have a dialogue, to have a close co-operation,” she said.

“If I speak about tariffs, if I speak about trade wars, these are not useful for anyone, and beneficial for anyone. So I do hope that we will have a lot of things in common that we can build trust or rebuild trust.”

Four reasons global stock markets are falling right now

There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:

1. Rising US interest rates

The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.

Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”

At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.

2. Stronger dollar

High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.”

3. Global trade war

Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”

4. Eurozone uncertainty

Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.

Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”

The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”