15. The Policy Watch

The Policy Watch is a weekly update which aims to provide concise insights into the current policy landscape. Tailored for our members and individuals interested in international affairs, this update offers a brief yet comprehensive summary of key developments affecting policy decisions and political trends in the UK, Sweden, and the EU.

UK AND US ANNOUNCE PARTNERSHIP TO ADDRESS AI SAFETY CONCERNS

The United States and Britain have announced a collaboration aimed at enhancing the safety of artificial intelligence, responding to escalating worries over forthcoming advanced AI iterations. Commerce Secretary Gina Raimondo and British Technology Secretary Michelle Donelan inked a memorandum of understanding in Washington, pledging joint efforts to develop cutting-edge AI model testing, a move initiated following commitments made at an AI Safety Summit in Bletchley Park last November.

UK DEMANDS AN INDEPENDENT INVESTIGATION FOLLOWING GAZA AIRSTRIKE

British Prime Minister Rishi Sunak spoke with Israeli counterpart Benjamin Netanyahu on Tuesday, expressing dismay over the recent airstrike in Gaza that claimed the lives of aid workers, including three British nationals. Demands were made for a comprehensive independent inquiry into the incident amidst growing concerns over the escalating humanitarian crisis in the region, urging Israel to lift restrictions on aid, collaborate with international organisations, and safeguard civilian lives and vital infrastructure.

During the same airstrike, a Polish citizen was also killed, and Poland demands compensation to be paid to relatives by Israel.

THE RIKSBANK REQUESTS BILLIONS AMIDST LOSSES

The Riksbank seeks 43.7 billion kronor from policymakers to strengthen its finances, following substantial losses from extensive bond purchases to combat low inflation and pandemic-induced market fluctuations. Despite efforts to sell off portions of its bond portfolio, the Riksbank warns of ongoing vulnerability to fluctuations in interest rates and currency values, necessitating long-term strategies to bolster earnings and preserve independence from political influence.

ELECTRICITY REGULATOR FINALISES REVENUE FRAMEWORKS FOR NETWORK OPERATORS

The Swedish Energy Markets Inspectorate (Ei) has decided on electricity network operators’ revenue frameworks for 2024-2027, setting fee limits for the next four years. With a total of around 326 billion kronor allocated (at 2022 price levels), marking a significant increase from the previous period, the approved frameworks aim to cover operational costs and facilitate necessary investments. Anticipated rises in network fees for customers in the coming years accompany concerns that the current regulatory approach may overcompensate operators, prompting calls for future methodology refinement from Ei officials.

EU COMMITS TO €270 MILLION PLAN TO STEER ARMENIA AWAY FROM RUSSIA

The European Union has pledged €270 million to bolster Armenia’s economy and steer it away from Russian influence, following talks in Brussels between top officials and Armenian Prime Minister Nikol Pashinyan. The package focuses on supporting businesses and industry over the next four years. European Commission President Ursula von der Leyen affirmed the EU’s commitment to strengthening Armenia’s economy and society, earmarking funds for electrification and renewable energy projects while praising Armenia’s alignment with EU values and interests.

Amidst Armenia’s efforts to distance itself from Russia and growing tensions with Azerbaijan, the EU expressed support for Armenia’s democratic reforms and proposed transport and trade initiatives, despite Azerbaijan’s objections and ongoing concerns over potential escalations.

PELLEGRINI WINS SLOVAK PRESIDENTIAL ELECTIONS

Russian-friendly candidate Peter Pellegrini, backed by Prime Minister Robert Fico’s coalition, clinched victory over pro-West candidate Ivan Korčok in Slovakia’s presidential runoff on Sunday. Pellegrini’s 53% win gives Prime Minister Robert Fico’s ruling coalition control over both the executive and legislative branches.