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Prime Minister Trudeau heads to NATO summit, where leaders face critical decisions

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Prime Minister Justin Trudeau departs Ottawa on Sunday, June 25, 2023, en route to Iceland. Trudeau is heading to the NATO leaders’ summit in Lithuania this week, where Canada is likely to play a larger-than-usual role in two critical discussions: the alliance’s expanding membership and its efforts to refocus on collective defence. THE CANADIAN PRESS/Sean Kilpatrick

By Sarah Ritchie in Ottawa

Prime Minister Justin Trudeau is heading to the NATO leaders’ summit in Lithuania this week, where Canada is likely to play a larger-than-usual role in two critical discussions: the alliance’s expanding membership and its efforts to refocus on collective defence.

Trudeau is expected to depart for Riga, Latvia, from Ottawa on Sunday evening. He is due to meet with that country’s leaders on Monday before heading to the Lithuanian capital for the first day of the NATO summit on Tuesday.

At last year’s summit in Madrid, NATO leaders identified Russia as “the most significant and direct threat to allies’ security and to peace and stability in the Euro-Atlantic area” in a strategic concept document that set out their intent to strengthen deterrence and defence in the region.

That came after a meeting in Brussels in March 2022, when leaders agreed to deploy four new multinational battle groups on the eastern flank in Bulgaria, Hungary, Romania and Slovakia, adding to those in Estonia, Latvia, Lithuania and Poland.

The alliance has drafted a new defence plan that leaders will be asked to approve in Vilnius, one that is being described as a return to its Cold War stance.

“What we’re seeing now is really a return to NATO’s core business,” said Tim Sayle, a NATO historian and professor at the University of Toronto.

He said this likely also means a return to more challenging negotiations among members as they decide on defence policy and procurement, at the same time as they are debating whether to allow Sweden and Ukraine to join. And on both topics, he said, allies will be looking to Canada.

“Rarely are there summits where Canada would be a focus of any elements, but I do think (it) is here,” Sayle said.

“Canada has a decision to make about its role in the discussion about Ukraine, but it also has this decision to make about Canadian defence spending and just what kind of ally Canada is going to be.”

Adm. Rob Bauer, the chair of NATO’s military committee, told media at a July 3 briefing that the new defence plan is split into three parts: the southeast region including the Mediterranean and the Black Sea, the central region from the Baltics to the Alps and the High North and Atlantic region.

Once the plans are approved, the real work begins. “Then we have to go and do our work to reach the higher number of forces with a higher readiness, we need to exercise against the plans, we need to buy the capabilities that we require,” Bauer said.

That will require more money. Only about a third of NATO members are meeting the agreed-upon target of spending two per cent of their GDP on defence — which includes a pledge to dedicate one-fifth of that funding to equipment.

Bauer said he expects two per cent will be the spending floor, instead of the target, by the time the summit is over.

“There is perhaps a stronger link than ever before between the new defence plans, the new defence investment pledge and the NATO defence planning process,” NATO spokesperson Oana Lungescu said at the July 3 briefing.

For the countries that are lagging behind, there will be increasing pressure to step up.

Canada spends about 1.3 per cent of its GDP on defence and has no public plan to get to the current target. Defence Minister Anita Anand has insisted that Canada’s contributions to the defence of Ukraine and its leadership in heading up a NATO battle group in Latvia are more important.

Before attending the NATO summit, Trudeau is set to participate in meetings Monday with Latvia’s president, Edgars Rinkēvičs, and its prime minister, Krišjānis Kariņš.

Trudeau is also expected to meet Canadian Armed Forces members who are part of the country’s largest overseas mission.

But even in Latvia, Canada seems to be lagging behind. It’s been more than a year since Anand pledged to expand the battle group to a combat-ready brigade, and detailed plans are still being negotiated. Battle groups typically have close to 1,000 troops, while military members in a brigade number about 3,000.

Canada has committed to sending a tank squadron with 15 Leopard 2 tanks and some 130 personnel to Latvia starting this fall, but it is unclear how many more troops will join the 800 Canadians already in place.

Other countries have gone further. Germany has pledged to station a 4,000-soldier brigade in Lithuania. The United Kingdom, which is leading a battle group in Estonia, and the United States, which leads another in Poland, tested their ability to quickly scale up to a brigade earlier this spring.

Leaders in Vilnius are also likely to focus on the status of Sweden and Ukraine, each of which has asked to join NATO.

Last-minute talks aimed at getting Turkiye and Hungary on side with allowing Sweden to become a member have not been successful. Its Nordic neighbour Finland joined most recently, in April.

If Sweden’s membership is approved, Bauer said it won’t take long to adapt the defence plans.

“Sweden is at the table in the military committee, in the North Atlantic Council every week. So they know basically everything already,” he said.

More contentious than that is the issue of when to admit Ukraine.

Some nations are pushing for immediate membership. U.K. Defence Secretary Ben Wallace said last month that he hopes to see an expedited process.

Meanwhile, Trudeau has repeatedly stated that Canada supports Ukraine’s membership “when the conditions are right,” without defining what those conditions are.

Sayle said it’s likely that other countries will expect a clearer response this time given the magnitude of the decision: whether to admit a nation that is in the midst of an active invasion to an alliance focused on collective defence.

“I think that what NATO says about Ukrainian membership will impact both the Ukrainian and Russian strategic calculations in this war, and any peace that might follow,” Sayle said.

This report by The Canadian Press was first published July 9, 2023.

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Trump’s Initial DOGE Executive Order Doesn’t Quite ‘Dismantle Government Bureaucracy’

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From the Daily Caller News Foundation

By Thomas English

President Donald Trump’s Monday executive order establishing the Department of Government Efficiency (DOGE) presents a more modest scope for the initiative, focusing primarily on “modernizing federal technology and software.”

The executive order refashions the Obama-era United States Digital Service (USDS) into the United States DOGE Service. Then-President Barack Obama created USDS in 2014 to enhance the reliability and usability of online federal services after the disastrous rollout of HealthCare.gov, an insurance exchange website created through the Affordable Care Act (ACA). Trump’s USDS will now prioritize “modernizing federal technology and software to maximize efficiency and productivity” under the order, which makes no mention of slashing the federal budget, workforce or regulations — DOGE’s originally advertised purpose.

“I am pleased to announce that the Great Elon Musk, working in conjunction with American Patriot Vivek Ramaswamy, will lead the Department of Government Efficiency (‘DOGE’),” Trump said in his official announcement of the initiative in November. “Together, these two wonderful Americans will pave the way for my Administration to dismantle Government Bureaucracy, slash excess government regulations, cut wasteful expenditures, and restructure Federal Agencies.”

The order’s focus on streamlining federal technology and software stands in contrast to some of DOGE’s previously more expansive aims, including Elon Musk’s claim that “we can [cut the federal budget] by at least $2 trillion” at Trump’s Madison Square Garden rally in November. Musk now leads DOGE alone after Vivek Ramaswamy stepped down from the initiative Monday, apparently eying a 2026 gubernatorial run in Ohio.

The order says it serves to “advance the President’s 18-month DOGE agenda,” but omits many of the budget-cutting and workforce-slashing proposals during Trump’s campaign. Rather, the order positions DOGE as a technology modernization entity rather than an organization with direct authority to enact sweeping fiscal reforms. There is no mention, for instance, of trillions in budget cuts or a significant reduction in the federal workforce, though the president did separately enact a hiring freeze throughout the executive branch Monday.

“I can’t help but think that there’s more coming, that maybe more responsibilities will be added to it,” Susan Dudley, a public policy professor at George Washington University, told the Daily Caller News Foundation. Dudley, who was also the top regulatory official in former President George W. Bush’s administration, said the structure of the new USDS could impact the recent lawsuits against the DOGE effort.

“I think it maybe moots the lawsuit that’s been brought for it not being FACA,” Dudley said. “So if this is how it’s organized — that it’s people in the government who bring in these special government employees on a temporary basis, that might mean that the lawsuit doesn’t really have any ground.”

Three organizations — the American Federation of Government Employees (AFGE), National Security Counselors (NSC) and Citizens for Responsibility and Ethics in Washington (CREW) — separately filed lawsuits against DOGE within minutes of Trump signing the executive order. The suits primarily challenge DOGE’s compliance with the Federal Advisory Committee Act (FACA), alleging the department operates without the required transparency, balanced representation and public accountability.

The order also emphasizes not “be construed to impair or otherwise affect … the authority granted by law to an executive department or agency, or the head thereof; or the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.”

“And the only mention of OMB [Office of Management and Budget] is some kind of boilerplate at the end — that it doesn’t affect that. But that’s kind of general stuff you often see in executive orders,” Dudley continued, adding she doesn’t “have an inside track” on whether further DOGE-related executive orders will follow.

“It’s certainly, certainly more modest than I think Musk was anticipating,” Dudley said.

Trump’s order also establishes “DOGE Teams” consisting of at least four employees: a team lead, a human resources specialist, an engineer and an attorney. Each team will be assigned an executive agency with which it will implement the president’s “DOGE agenda.”

It remains unclear whether Monday’s executive order comprehensively defines DOGE, or if additional orders will be forthcoming to broaden its mandate.

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California’s soaring electricity rates strain consumers, impact climate goals

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From The Center Square

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While the greenhouse gas reduction programs that raise electricity rates are part of California’s climate goals, the increased prices actually discourage individuals from switching away from using fossil fuels impacting California’s ambitious climate goals.

California has completed yet another year with some of the highest electricity rates in the country – almost double the national average. The state’s electricity rates have been increasing rapidly, outpacing inflation in recent years by approximately 47% from 2019 to 2023. This is due largely to the high rates charged by the state’s three large investor-owned utilities (IOUs).

According to a report published by the California Legislative Analyst Office, the factors driving rate increases are wildfire-related costs, greenhouse gas reduction mandates, and policies and differences in utility operational structures and services territories. Ratepayers bear the brunt of these costs with those who earn lower incomes and live in hotter areas of the state the most severely affected.

The report points out that while the greenhouse gas reduction programs that raise electricity rates are part of California’s climate goals, the increased prices actually discourage individuals from switching away from using fossil fuels impacting California’s ambitious climate goals.

These programs include the Renewable Portfolio Standard (RPS), which requires utilities to provide a percentage of retail electricity sales from renewable sources, raising costs for ratepayers. Additionally, SB 350 directs the CPUC to authorize ratepayer-funded energy efficiency programs to meet California’s goal of doubling energy efficiency savings by 2030.

“While many other states operate ratepayer-supported energy efficiency programs, on average, we estimate that Californians contribute a notably greater share of their rates to such programs than is typical across the country,” the report notes.

Electricity rates pay for numerous costs related to the construction, maintenance and operation of electricity systems including the generation, transmission and distribution components. However, these rates also pay for costs unrelated to servicing electricity.

“Most notably, the state and IOUs use revenue generated from electricity rates to support various state-mandated public purpose programs,” the report says. “These programs have goals such as increasing energy efficiency, expediting adoption of renewable energy sources, supporting the transition to zero-emission vehicles (ZEVs), and providing lower-income customers with financial assistance.”

The largest public purpose program is the California Alternate Rates for Energy (CARE), which provides discounts for lower-income customers. However, the report notes that while CARE benefits certain customers, it shifts the costs onto other slightly higher-income customers and that the majority of Californians spend a larger portion of their income on electricity compared to other states.

 “According to data from the federal Bureau of Labor Statistics, California households in the lowest quintile of the income distribution typically spend about 6 percent of their before-tax incomes on electricity, compared to less than 1 percent for the highest-income quintile of households,” reads the report. “Notably, high electricity rates also can impose burdens on moderate-income earners, since they also pay a larger share of their household incomes toward electricity than their higher-income counterparts but typically are not able to qualify for bill assistance programs.”

Electricity bills also reflect other state and local tax charges including utility taxes that are used to support programs such as fire response and parks in addition to the state-assessed charge on electricity use that is put into the Energy Resources Programs Account (ERPA). This account is used to pay for energy programs and planning activities.

While many of the funds recovered through electricity rates are fixed costs for programs, these costs increased in 2022 following the repeal of a state law that limited fixed charges at $10, requiring the California Public Utilities Commission (CPUC) to authorize fixed charges that vary by income. These come out to be around $24 per month for non-CARE customers and $6 per month for CARE customers.

Wildfire related costs have also been increasing. Before 2019, wildfire costs included in electricity rates charged by IOUs were negligible, but now it has grown between 7% and 13% of typical non-CARE customers. Reasons for this increase include California’s high wildfire risk and the state’s liability standard holding IOUs responsible for all costs associated with utility-caused wildfires.

“The magnitude of the damages and risks from utility-sparked wildfires have increased substantially in recent years,” reads the report. “Correspondingly, IOUs have spent unprecedented amounts in recent years on wildfire mitigation-related activities to try to reduce the likelihood of future utility-caused wildfires, with the associated costs often passed along to ratepayers. Furthermore, California IOUs and their ratepayers pay for insurance against future wildfires, including contributing to the California Wildfire Fund.”

According to the report, electricity use and rates for Claifornians are only expected to increase and the legislature will have to determine how to tackle the statewide climate goals while reducing the burden on ratepayers.

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