Principled pragmatism in EU foreign policy: A return to Realpolitik or rapprochement with Russia September 8th, 2016 Iulian Mihalache Junior Research Fellow, Europe Programme [email protected] Centre for Geopolitics & Security in Realism Studies 20-22 Wenlock Road, London N1 7GU, United Kingdom www.cgsrs.org ⏐ [email protected] Copyright © 'The Centre for Geopolitics & Security in Realism Studies’(CGSRS) 2016 Principled pragmatism in EU foreign policy: A return to realpolitik or rapprochement with Russia Iulian Mihalache 2 Executive Summary “Principled pragmatism” is a new EU foreign policy concept outlined in the EU Global Strategy launched in June 2016. It signals that the EU must adapt to a “rapidly changing environment”, and insert a dose of political realism in its foreign policy while continuing to uphold its principles. However, principled pragmatism does not tell us whether EU values enshrined in the Treaty on European Union, such as freedom, democracy, the rule of law and respect for human rights will take precedence over a pragmatic Realpolitik analysis of the situation, and decisions will likely be taken on a case-by case basis. This paper looks at principled pragmatism from the perspective of the EU’s relationship with Russia. The fact that the Global Strategy calls this relationship “interdependent” indicates an intention to appease Russia rather than continue to deter it. There is a danger that principled pragmatism entails in this case that the EU is more interested in a rapprochement with Russia than the terms of this rapprochement. Recent positions of member states and statements of officials show that there is a lack of unity among the EU27 on a Russia strategy, in terms of foreign, energy and trade policy. This is damaging the EU’s credibility as a global power and encourages Russia to continue its belligerent approach in its Near Abroad. Copyright © 'The Centre for Geopolitics & Security in Realism Studies’(CGSRS) 2016 Iulian Mihalache 3 Principled pragmatism in EU foreign policy: A return to realpolitik or rapprochement with Russia Introduction The EU Global Strategy, launched by the European Action suits the conditions that really exist, rather than following Service (EEAS) in June in the shadow of the Brexit fixed theories, ideas, or rules”. referendum is an important and long-awaited document In effect, principled pragmatism does not tell us whether meant to set out the EU's foreign policy priorities for the EU values enshrined in the Treaty on European Union, years to come. Foreign policy is and for the foreseeable such as freedom, democracy, the rule of law and respect future will still be a core competence of the member for human rights will take precedence over a pragmatic, states, which often have diverging agendas for their Realpolitik analysis of the situation. If anything, the relations with third parties. Hence, the Global Strategy is wording suggests that the EU will take a case-by-case more of an outline of the EU’s core interests and approach rather than judge all situations by the same principles driving its interaction with the outside world standard. For instance, the recent policy towards Turkey than a comprehensive description of specific common revealed the EU’s pragmatic side: The migrant deal priorities. However, in the context of geopolitical turmoil prioritised the member states’ perceived interest in in Europe’s southern and eastern neighbourhoods and limiting migration over basic human rights and the internal debates about the future of Europe, the Global Copenhagen criteria , while the perceived need to Strategy sought to update the EU’s approach in a “rapidly support President Erdogan in the wake of the failed coup changing has trumped criticism of the human rights violations he environment”, despite the significant 1 discrepancies between the member states. committed in its aftermath. One foreign policy concept that has recently become a Principled pragmatism does not buzzword in the European debate and has made its way in the Global Strategy is “principled pragmatism”. This paper focuses on this concept which is particularly noteworthy, due to the desired shift from traditional EU idealism to an approach combining this idealism with political realism. This paper assesses the implications of principled pragmatism between the EU and Russia, as EU foreign policy currently lacks a consistent Russian strategy in the wake of the Russian annexation of Crimea and aggression in Eastern Ukraine. The concept of principled pragmatism and the European debate In the Global Strategy, the concept of principled tell us enshrined European whether in EU values the Treaty on Union, such as freedom, democracy, the rule of law and respect for human rights will take precedence over a pragmatic Realpolitik analysis of the situation pragmatism is vague and lacks clarity. The Strategy merely states that the EU “will be guided by clear Indeed, recent debates on the of future EU foreign policy principles. These stem as much from a realistic confirms a shift towards more pragmatism, as compared assessment of the strategic environment as from an to the idealism enshrined in the previous, 2003 European idealistic aspiration to advance a better world. […] Security Strategy, which argued in its chapter on strategic Principled pragmatism will guide our external action in objectives of the EU that “the best protection for our the years ahead.” (Mogherini, 2016, p. 16) The phrasing security is a world of well-governed democratic states” lacks conceptual clarity and seems to be an oxymoron: (Solana, 2003, p. 37). This is evident in the review of the Looking at the terminology, according to the Cambridge European Neighbourhood Policy, which had been based dictionary, “principled” means “always behaving in an on the assumption that the EU’s power of attraction and honest and moral way” while pragmatism has the economic carrots can effect policy change and has been opposite meaning of behaving “in a sensible way that criticised for its “rather naive, Eurocentric attitude” 1 Rules established in 1993, defining whether a country is eligible to join the EU or not. Copyright © 'The Centre for Geopolitics & Security in Realism Studies’(CGSRS) 2016 Principled pragmatism in EU foreign policy: A return to realpolitik or rapprochement with Russia Iulian Mihalache 4 (Lehne, 2014) European Council President Donald Tusk interests overlap” (ibid., p. 33). Given the context, this mirrored many of the member states’ governments when language hints towards appeasement. While expressing he criticised the EU for “confronting reality with all kinds the need for a closer transatlantic partnership, deepening of utopias. A utopia of Europe without nation states, a the cooperation with NATO and deepening trade and utopia of Europe without conflicting interests and investment with China, the relationship with Russia is the ambitions, a utopia of Europe imposing its own values on only one the Global Strategy calls interdependent. the external world (Tusk, 2016).” The EEAS has recently come to terms with that, and seems to have shifted its This choice of wording is dubious, considering the almost discourse from imposing values on neighbours to full lack of cooperation on political and security issues partnerships on a more equal footing. According to High since 2014. Economically, too, the statement is far- Representative Federica Mogherini, “[a] true partnership fetched. Russia is only the fourth largest trading partner can never be built on one party determining the rules of of the EU, after the US, China and even Switzerland, with the game or the content of the story you want to tell a share of 6% of the EU’s total trade in 2015. By together. Partners are equal, have to be” (Mogherini, comparison, in the same year, the share of the US in the 2015). This hints that principled pragmatism will imply a EU’s total trade was 18% and China’s was 15%. While different kind of relationship with the countries the EU the volume of trade with Russia was higher before the deems vital to its interests. mutual sanctions, reaching 10% in 2008, the US and China were still much more important partners to the EU Principled pragmatism towards Russia? (Eurostat Press Release, 2016). Furthermore, in 2015, out of all EU member states, Russia was the main trading The question of interdependence partner only to Lithuania and the second main partner This paper analyses the EU’s possible approach towards only to Latvia (ibid.). Trade between the EU and Russia is Russia in light of the EU’s recent shift towards principled mainly limited to a few fields. On the one hand, pragmatism. Will principled pragmatism imply a return to traditional EU exports to Russia include machinery and Realpolitik? Will it involve increased cooperation with transport equipment, pharmaceuticals and agricultural NATO with the goal of deterring further Russian products. On the other hand, Russian exports to the EU incursions in its “Near Abroad”, strengthening support for are dominated by raw materials, in particular oil and Eastern smooth natural gas, making the EU the main trading partner of extension of sanctions, and taking steps to reduce Russia. The EU is the most important investor in Russia, imports of Russian gas? Or will it rather mean that the EU with up to 75% of FDI stocks in Russia coming from EU will try to appease Russia, judging that the main interest Member States (DG Trade, 2016). Thus, EU Russia trade for Europe in such tumultuous times is avoiding any relations can be hardly depicted as interdependent. escalation? There is a danger that the latter option will be Rather, it is Russia that needs to rely on the EU, preferred, despite the effects this could have on the considering its dependence on the EU market for its security of eastern member states and on Eastern natural gas and oil and on EU FDI. Furthermore, the fact partners European trajectory, not to mention on values that the EU exports high skill, technology-intensive such as democratisation, rule of law and human rights. products, while Russia exports raw materials subject to Most likely, these questions have not been answered and price fluctuations adds to the uneven economic the EU’s approach will depend as much on domestic relationship. Partners’ European aspirations, a politics as on international developments. However, a closer reading of the EU Global Strategy and a review of recent events and statements show that a pattern is The Global Strategy and Energy Union birds of the same feather? emerging. A key question is what principled pragmatism will entail The Global Strategy criticises Russia’s illegal annexation with regards to energy policy, as this is the only field in of Crimea and the destabilisation of eastern Ukraine and which it could be claimed that some EU member states calling the relationship with Russia “a strategic challenge” are dependent on Russia. Russia’s energy strategy is an (Mogherini, 2016, p.33) the EU Global Strategy states integral part of its foreign policy. It aims to maintain and that the EU and Russia have an “interdependent” deepen Europe’s reliance on Russian energy supplies in relationship and that the EU will “engage Russia to order to increase its economic and geopolitical influence discuss disagreements and cooperate if and when our (Umbach, 2014). Supply disruptions have been part of Copyright © 'The Centre for Geopolitics & Security in Realism Studies’(CGSRS) 2016 Principled pragmatism in EU foreign policy: A return to realpolitik or rapprochement with Russia Iulian Mihalache 5 Russia’s strategy towards Ukraine, leading to severe complaints from high-ranking EU officials such as shortages in some EU member states in the winters of Commission President Juncker as well as Eastern 2006 and 2009. Some Central and Eastern European European member states (Baczynska & De Carbonnel, countries are extremely vulnerable to potential supply 2016). This would increase total Western European disruptions in the gas transiting Ukraine: Bulgaria imports dependence on Russian gas. Also, since Nord Stream 100% of its annual gas consumption from Russia, the bypasses Ukraine, Russia would drastically increase its Czech Republic 99%, Slovakia 95%, Hungary 89% and influence in Ukraine and eastern EU member states Poland 53%. The Baltic States and Finland also imported because it would be able to cut gas supply there when their entire annual natural gas consumption from Russia pricing disputes arise or if there was a political need. until recently (Chyong & Tcherneva, 2015). Additionally, since the Russian Turkish rapprochement, 3 negotiations have started again on Turkish Stream In this context, a common EU energy policy is much (Basboga, 2016). This project, envisioned by Russia to needed, and has been formally launched by the Juncker replace South Stream, could open doors for further Commission in February 2015 as the Energy Union. The Russian gas to Southern Europe, particularly Italy, a key main energy partner to Russia. goals include achieving supply security by diversifying Europe’s sources of energy and a fully integrated European market to enable free energy flows Overall, principled pragmatism in energy policy will have across member states, as a means of further reducing to entail some measure of compliance with the provisions dependence from Russia (Siddi, 2016). Indeed, several of the common energy policy. The construction of positive results have been reached in recent years. For interconnectors, the inauguration of new LNG terminals instance, Lithuania and Poland built LNG terminals which and the liberalisation of gas markets are useful measures recently became operational (Denková, 2015), and the which go a long way towards limiting Russian influence proposed Balticonnector pipeline between Finland and in Europe. However, for some EU member states such as Estonia should connect the two countries’ grids in 2019 Germany and Italy, a pragmatic energy policy means (Smedley, 2016). Furthermore, the South Stream pipeline maintaining cooperative relations with Russia and even project transporting Russian gas through the Black Sea enhancing them. towards Austria was cancelled by Gazprom due to noncompliance with European legislation (Gotev, 2014). Thus, so far, there is still a discrepancy between stated EU goals and the policies of EU member states. The notions The notions of principled of principled pragmatism and interdependence which pragmatism and odds with the EU’s Energy Union. It remains to be seen interdependence which have made their way in the Global Strategy seem to be at odds have made their way in the Global Strategy seem to be at whether powerful states and energy companies could derail the Energy Union and push the Commission into giving the green light to projects such as Nord Stream 2. Should this happen, the security of Eastern and Central Europe, as well as the credibility of the EU’s foreign and energy policy would suffer. with the EU’s Energy Union Lack of European unity on a Russia However, member states are sometimes impeding the development of the Energy Union, something which plays into Russia’s divide et impera 2 strategies. For instance, Germany is planning to double the capacity of the Nord Stream sub-sea pipeline which takes Russian gas through the Baltic Sea directly to Germany, despite 2 Divide and rule strategy There are several member states in the EU which would like to appease Russia rather than pursue a credible policy of deterrence. The most important EU member state which has had an ambiguous stance towards Russia since the 2014 aggressions is Germany, where public discourse 3 Due to the opening of Nord Stream, Russia transported in 2014 only 53% its gas exports to Europe, compared to 80% in 2009, through Ukraine (Umbach, 2014) Copyright © 'The Centre for Geopolitics & Security in Realism Studies’(CGSRS) 2016 Principled pragmatism in EU foreign policy: A return to realpolitik or rapprochement with Russia Iulian Mihalache 6 has focused on dialogue and the easing of sanctions. For lifting EU sanctions against Russia, while a non-binding instance, German Ambassador to the US Wolfgang Dutch referendum rejected the Ukraine EU Association Ischinger recently appreciated that “Russia is not Agreement. These votes took place in the context of particularly interested in dialogue at the moment but we proven Russian funding for extremist parties in both should shower it with offers” (Karnitschnig, 2016). More countries (Foster, 2016). worryingly, Foreign Minister Frank-Walter Steinmeier undermined the logic of NATO deterrence before a large On the other hand, the Baltic states, Finland, Sweden, military training exercise in Poland in June 2016, stating Poland and Romania have taken a tough stance towards “what we shouldn’t do now is inflame the situation Russia during the last two years. Geographic proximity further through saber-rattling and warmongering. […] and a history of conflict made these countries see their Whoever believes that a symbolic tank parade on the eastern neighbour as a major security threat and push for alliance’s eastern border will bring security is mistaken. deterrence as a common Russia strategy, in particular […] We are well-advised to not create pretexts to renew after the events of 2014. For instance, strengthening the an old confrontation. [It would be] fatal to search only NATO’s military presence in the east, with four new for military solutions and a policy of deterrence”. (ibid.) battalions, was a key priority for the Baltic states and Internal debates on the usefulness of sanctions are Poland at the 2016 Warsaw Summit (McNamara, 2016). equally permeated by dovish attitudes. Influential Romania will host a multinational brigade and proposed Minister President of Bavaria Horst Seehofer recently a failed common NATO fleet in the Black Sea in order to argued in favour of phasing out sanctions, as a “bloc deter Russia. Poland and Romania are supporting NATO’s mentality is not suited for these times” (ibid.). open-door policy and the strengthening of its eastern flank (Atlantic Council, 2015). All these EU member Part of Germany’s ambiguity towards Russia can be states have been supporters of the EU’s Eastern explained by the fact that exports to Russia totalled 38 Partnership, in itself a Polish Swedish initiative, in order billion euros in 2013 - the highest in the EU. Furthermore, to facilitate a European perspective for the partner Germany gets more than 30% of its oil and gas from countries. Russia. However, this does not amount to much as supporters of the extension of Russian sanctions (Amos, German-Russian trade volume is less than half of 2016). Additionally, they have been staunch Germany’s trade with Poland (Gressel, 2016). Germany is also committed to Energiewende, the transition to a low- The question of deterrence versus appeasement seems to carbon economy. Thus, economic national interest create rifts between member states on a geographical cannot explain the desire for appeasement. Instead, basis: those closer to Russia see it as a threat and are other less objective factors have been put forward, such expecting a harder policy while the ones who are not on as the institutional memory of seeking détente with the the frontline do not prioritise it as a security concern and Eastern Bloc during the Cold War through Ostpolitik, the believe the EU should make the first step towards the long history of a less assertive foreign policy due to the normalisation of relations. collective memory of Nazi aggression in World War II and broader questions about whether a more assertive international role and projecting military power should or Conclusion should not be a German goal (e.g. Techau 2016; Gressel, The birth of principled pragmatism means that the EU’s 2016; Karnitschnig, 2016). idealism has come to terms with the reality in the EU’s neighbourhood. That being said, it is unclear whether Other countries in the EU, such as Italy, Greece and values will take precedence over interests, and the Global Hungary have taken a more lenient approach, choosing Strategy suggests that the EU will take a case-by-case to maintain good relations with Russia and arguing for approach. The EU still needs to better define its common the removal or revision of sanctions in negotiations with interests and have a more coherent approach to the other EU member states (Rankin, 2016). Furthermore, interests versus values debate. politicians and public opinion in some important EU member states are becoming increasingly pro-Russian, a When it comes to the future of EU Russian relations, the trend coupled with the rise of Euroscepticism. For fact that the Strategy calls this relation “interdependent” instance, in April 2016, France's lower house of is worrying. It signals that for some EU member states parliament adopted a non-binding vote in favour of Copyright © 'The Centre for Geopolitics & Security in Realism Studies’(CGSRS) 2016 Principled pragmatism in EU foreign policy: A return to realpolitik or rapprochement with Russia and the EEAS, principled pragmatism in this situation Iulian Mihalache 7 stronger and more credible and its member states safer. means that they are more interested in a rapprochement At the moment, there is a chasm between member states with Russia than the terms of this rapprochement. In with diverging views on Russia. The ambivalence shown effect this entails appeasement rather than deterrence or by important member states such as Germany and Italy is a Realpolitik approach. There is a danger that EU foreign detrimental as it gives Russia an incentive to continue its policy will slowly forget Russia’s unacceptable behaviour aggressive policies. Principled pragmatism should at least and that support for the defence of member states in mean that member states are consistent with stated EU proximity to Russia and for the European future of goals ranging from Russian compliance with the Minsk Eastern Partnership countries will decrease. agreement to the Energy Union. The lack of consensus on such goals only encourages Russia to try to further Unity is needed among EU member states, as a coherent divide EU countries. Russia strategy would ultimately make EU foreign policy Copyright © 'The Centre for Geopolitics & Security in Realism Studies’(CGSRS) 2016 Iulian Mihalache 8 Principled pragmatism in EU foreign policy: A return to realpolitik or rapprochement with Russia REFERENCES Amos, H. (2016, June 2) EU Unity Crumbles As Russia Sanctions Extension Debate Rages. International Business Times. 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Available at: http://www.nato.int/docu/review/2014/nato-energy-security-running-on-empty/Ukrainian-conflict-Russiaannexation-of-Crimea/EN/index.htm Centre for Geopolitics & Security in Realism Studies 20-22 Wenlock Road, London N1 7GU, United Kingdom www.cgsrs.com ⏐ [email protected] Copyright © 'The Centre for Geopolitics & Security in Realism Studies’(CGSRS) 2016
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