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(en) Italy, UCADI #203 - Political Observatory (ca, de, it, pt, tr)[machine translation]

Date Fri, 23 Jan 2026 07:39:25 +0200


Bulgaria ---- The institutional crisis in Europe's poorest country, Bulgaria, continues; for the eighth consecutive year, the government has resigned, and a difficult crisis looms, possibly leading to a recourse to the polls. Following street protests led primarily by Generation Z, the country's youth, inspired by the anti-corruption movement used as a rallying cry in Balkan countries and used by forces inspired by those directing EU policy in Brussels, hundreds of thousands of people took to the streets and squares. The protests primarily involved the middle class, affected by the contents of next year's budget law, which includes a tax increase on corporate profits and higher contribution thresholds for workers, along with new centralized procedures for cash flow management. Concerns surrounding the country's introduction of the euro, with accession to the European Monetary System scheduled for January 1 of this year, have further exacerbated the situation. Given previous experiences with this in other countries, there are fears that the exchange rate will lead to further price increases, to the detriment of the population and the benefit of speculators.
Especially in the capital, Sofia, protesters (approximately 150,000) have called for the resignation of Rosen Zhelyazkov's center-right government, which has been in office for a year. Zhelyazkov preempted a parliamentary vote from which it would likely have emerged unscathed once again, deeming it more appropriate to hold elections. From experience, he knows well that while protesters' chambers manage to prepare in the streets, when it comes to voting and addressing the country's core population, the orientations can be different. The clienteles that link the parties to the lower strata of the country's population are too broad. The head of the ruling party, GERB Boyko Borisov, the mastermind of Bulgarian politics for the last 15 years and the main target of public outrage, is also counting on the support of Delyan Peevski's Turkish minority party to turn things around.
As is standard practice, following the resignation, the President of the Republic initiated a process of election, open to active involvement in the country's politics. Consultations have been launched to form a new government, which would address the difficult economic situation created in the country by sanctions against Russia, the interruption of affordable gas supplies, and the loss of the Russian market. The Bulgarian Parliament approved the resignation with 127 votes in favor, and the Cabinet will now continue to function until a new government is elected. President Rumen Radev has already called on parliamentary groups to form a new government. If they fail-which is likely-he will appoint an interim government to govern the country until new elections.
However, whoever wins the election is unlikely to be able to stem widespread corruption, an inefficient administration, and a stalemated and familist political system, as an overhaul of the entire political system would be necessary. While it's true that Bulgaria has experienced a positive economic trend in recent years: GDP grew by 3.4% in 2024, and a stable increase of around 3% is expected for the period 2025-27. Economic growth, however, has been accompanied by a sharp increase in prices and public spending: all issues that have exacerbated social and economic tensions between various sectors of Bulgarian society.
Now the decision is up to the voters, who will again be called to the polls for early elections, the eighth starting in 2021, and it's difficult to predict the possible outcomes of the crisis.

Putin's Visit to India

One of the recurring features of the propaganda fed to the public as a result of the pro-Ukrainian propaganda policy conducted by the press serving supporters of the conflict is that sanctions against Russia would isolate the country and cause damage to its economy. If there's one country for which this isn't true, it's India.
A case in point is Putin's visit to India in early November, prepared by Trump, who imposed additional 25% tariffs on Indian imports starting in August 2025, bringing the total tariffs on fashion, textiles, jewelry, and goldsmiths to 50% overall, to sanction oil purchases from Russia. Rather than exerting pressure on India, the measure fostered further rapprochement between Moscow and New Delhi, who were already coordinating their policies within the BRICS.
During Vladimir Putin's visit, which was greeted triumphantly and cordially, numerous agreements were signed in the economic, military, scientific, cultural, and technological fields, including the provision of Indian labor to Russia (1 million skilled workers). Particular attention was paid to the energy, oil, and defense sectors.
Specific discussions included increasing Indian imports of Russian oil, cooperation in civil nuclear power and the supply of power plants by Russia, and the need to reduce the debt and trade deficit between the two countries by allowing greater Indian exports to Russia of pharmaceutical and agricultural products. Indian workers willing to work in Russia will aid Russia's development and contribute their remittances to the payment for energy supplies, which will be paid in rubles. The two countries' cooperation will also extend to the fields of culture, scientific research, and communications.
Even more significant is the defense agreement, with Russia's commitment to supply India with S-400 missile defense systems and next-generation fighters. These will help bind India to the provision of technical assistance and spare parts for the maintenance of its air force and defense forces, deepening the collaboration already developed through joint military exercises. Russia will also provide India with a nuclear-powered submarine to train its navy's sailors in the operation of such vessels, while India will make its shipyards available to Russia for the construction of ships for civilian use as well. It should be noted that with the decentralization of production, India has become one of the world's largest steel producers.
The two sides have committed to regulating their economic relations in national currencies. The strength of ties between the two countries was underscored by the signing of a joint declaration emphasizing the growing solidarity between the two countries and the coordination of their policies. It is noteworthy that this visit comes after four years and was intended to renew and strengthen the historic friendship between the two countries, demonstrating the good relations between the Asian powers of Russia, India, and China, as well as the good relations with the global south and the strengthening of the partnership.

Netherlands

Negotiations between the parties continue after the October elections. On November 10, 2025, following a motion presented by D66 leader Jetten, Parliament has appointed Rianne Letschert as the new informant to lead the negotiations that should lead to the formation of the new government, granting her 51 days to form the new coalition with the participation of the 66 CDA and VVD. She must report on the results of the negotiations to the House of Representatives by Friday, January 30.
This is the mandate given to Letschert based on a motion that D66 leader Jetten presented to the House of Representatives on Wednesday. Letschert must initially ensure that D66, CDA, and VVD reach an agreement, but also verify whether a minority government, such as one formed by the three parties, has any chance of receiving approval from both chambers.
"Our mandate is to seek constructive cooperation with the various parties in this chamber," Jetten stated in the motion. "The outstretched hand remains both to the left and the right." Granting the mandate to form a minority government is compatible with Letschert's resume (born 1976). She is president of the board of governors of Maastricht University and a former professor of international law at Tilburg University. A member of D66, she has never held political or government-related positions. She will lead the talks between Jetten of D66, Henri Bontenbal (CDA), and Dilan Yesilgöz (VVD) for a coalition agreement to form a new government.
The program discussion covers issues such as immigration, housing, nitrogen emissions-produced primarily by livestock manure, to such an extent that they pollute the air, soil, and water-defense, and security. These discussions will form the basis for the meeting with Wilders' VVD, which, for its part, fears severe cuts in healthcare and development funding; D66 and CDA differ with the VVD regarding these funding issues.
The new minority government will have to seek votes in Parliament one by one and therefore address the concerns of other parties, such as those of SP leader Jimmy Dijk, who fears the dismantling of social security, cuts to unemployment benefits (WW), reform of the WIA (Work and Income according to Capacity for Work) system, and reductions in dismissal protections. Further concerns are being expressed by right-wing parties, which eroded Wilders's support in the last elections and are now demanding compensation, especially regarding immigration, to secure their votes. In this situation, it will be extremely difficult to find a compromise and create a new government capable of ensuring the country's stability, which is required by the economic crisis the Netherlands is experiencing.

Chile

The xenophobic Nazi, José Antonio Kast, wins the runoff with 58% of the vote against left-wing candidate Jeanette Jara, who stands at 41%. Despite being defeated three times in his previous attempts to become President, this time the Nazi exponent succeeded because he garnered the votes of the three right-wing candidates in the first round. In his election campaign, the newly elected President focused on the typical themes of Trumpian propaganda: security and illegal immigration.
The theme of "security" is in many ways a induced and politically exploited psychosis: Chile is among the safest countries in all of Latin America, but the right has cleverly shifted the political debate onto these issues, using the growing presence of Venezuelan gangs and the rising homicide rate to support those who promised an iron fist against crime and illegal immigration. Indeed, Kast has proposed closing the borders since taking office.
By electing a known supporter of dictator Pinochet, the majority of the Chilean electorate has clearly demonstrated that 35 years of one of the longest and bloodiest dictatorships in the world have not been enough and that Chile is ready to see one of the most staunch defenders of military rule return to the presidency. There is no doubt that with this choice, the United States is strengthening its grip on Latin America and the colonial exploitation of its peoples.

Finland

In Finland, abandoning neutrality has not paid off, and the economic situation marks the inglorious end of the prosperity of one of the European countries at the forefront of the so-called "frugal" movement. The Finnish economy was already in crisis, but this was exacerbated by its accession to NATO, which has also led to a budget deficit since 2009. With an aging population demanding ever-increasing spending on public services, the country's financial situation appears extremely dire, while the Finnish budget deficit is widening and public debt is growing at an alarming rate. The central government deficit rose to 4% of GDP in 2024, and the debt-to-GDP ratio is expected to reach 87% by 2027. The situation has been aggravated by the costs of defending a 1,300 km border with Russia, which is difficult to address both economically and demographically, given that the birth rate is 0.027% per year. As of December 1, 2025, the population (permanent residents) of Finland was 5,543,659, including children under 6 years of age - 561,295 people, adolescents (schoolchildren) aged 7 to 17 years - 647,222 people, young people aged 18 to 29 years - 672,169 people, adults aged 30 to 60 years - 2,376,844 people, seniors aged 60 years and over - 1,042,208 people, centenarians in Finland over 80 years of age - 243,921, which means that even if all potentially able-bodied citizens were called up to serve in the army, the population would not exceed three million. The Finnish armed forces have approximately 21,500 men and women on active duty, although they also have a reserve of approximately 900,000 conscripts, who are periodically recalled for training. This means the government will have to spend millions of euros on new weapons systems to reinforce the border and to mine it, as it plans to do.
This is while the country's exports, the main driver of its economy, have been severely impacted by weak demand from Germany and Sweden, its major trading partners, and supply chain disruptions, partly due to the severance of ties with Russia, have negatively impacted the country's main sources of income and wiped out the economic contribution of intense Russian tourism.
The unemployment rate is expected to rise dramatically, reaching 8.7% by 2025. The construction sector, once the country's largest employer and particularly hard hit by population decline, while further problems are being generated by the public sector, which has supported employment in recent years, will remain stagnant as the government will have to adopt fiscal austerity measures.
With labor market reforms, the cuts to social benefits planned for 2025 will be significant, and unemployment has reached its highest level in 15 years, standing at 10.3% in October, according to data published by Statistics Finland. The rate was more than double, at 22.4%, among 15- to 24-year-olds.
Compounding the situation, the European Commission has decided to subject Finland to an "Excessive Deficit Procedure," after predicting that Finland will have a budget deficit above the EU limit of 3% for the next three years. This has prompted the government to cut some sectors of the welfare system, including unemployment benefits, housing benefits, and some healthcare facilities. The right-wing coalition government, in office since 2023, aims to "strengthen public finances and control the growing debt," including by facilitating layoffs to reduce hiring risks for companies. All this demonstrates that workers and the population are paying the price for their governments' warmongering policies.

The Editorial Staff

https://www.ucadi.org/2025/12/23/osservatorio-politico-8/
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