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ESADEgeo Daily Digest, 30/04/2018

ESADEgeo Daily Digest, 30/04/2018

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Politico – Emmet Livingstone / Italy’s 5Star leader renews push for coalition with PD

  • Luigi Di Maio, the leader of Italy’s 5Star Movement, made a fresh attempt on Sunday – through a letter published by Corriere della Sera – to woo Democratic Party (PD) into forming a governing coalition.
  • Di Maio highlighted policies on which both parties could see eye to eye, including the importance of keeping Italy within the European Union and pushing Brussels to tackle tax avoidance.
  • The PD vowed after the elections it would remain in opposition. But its interim leader, Maurizio Martina, recently signalled it was open to entering into a coalition with the 5Star Movement.
  • The PD is deeply divided on the issue, however. See: The Local – AFP / Five Star Movement coalition is ‘absurd’, says Italy’s ex-PM Matteo Renzi

Al-Monitor / Will Russia provide the ‘new Kissinger’ for Iran-Israel diplomacy?

  • Moscow may be facilitating direct, or at a minimum, indirect contacts between Iran and Israel in order to defuse tensions in the region.
  • In reflecting on whether there may be lessons learned from Syrian-Israel understandings reached in 1976 to be applied to present tensions between Iran and Israel, Yossi Beilin suggests that what is missing is the “new Kissinger” to broker such a deal.
  • “It could, in theory, be a special emissary of the United Nations’ secretary-general or some European party acting on behalf of the European Union’s high representative,” says Beilin.
  • But the role could also fall to Russia. Locked out of the groundbreaking diplomacy in Korea, Putin may be seeking to play his hand as power broker in the Middle East, where his diplomatic cards may prove decisive.

Financial Times – David Sheppard / Oil at $75: the five factors driving the price

  • The simplest reason for the rise in oil prices is that markets have tightened markedly over the past 18 months. With oil inventories getting back to near normal levels, will Opec and Russia look to end their supply cuts? Most traders and analysts think not.
  • “Saudi Arabia has short-term interests in higher oil prices for multiple reasons, including Aramco. But it’s also going through a delicate period of reform and there are constituencies who will find these very difficult. Having additional revenue at this time definitely helps,” said Bill Farren-Price at Petroleum Policy Intelligence.
  • Uncertainty regarding the Iran deal, Venezuela, Yemen and Libya has kept a bid under oil prices, with one senior oil analyst warning that geopolitical risks in the oil market were as high as he could remember.
  • Producers in the US are generating free cash flow because of higher prices. But so far it has not been enough to derail the rally, with increased output largely being absorbed by rising demand.

Project Syndicate – Scott Vaughan & Durwood Zaelke / Canada Takes the Lead on Methane Emissions

  • According to the Intergovernmental Panel on Climate Change, methane is 86 times more potent than CO2 as a heat-trapping gas over a 20-year period, and is responsible for about a fifth of the warming caused by humans.
  • But, despite the availability of viable solutions, many countries continue to ignore the low-hanging fruit of methane mitigation. So far, only a handful of countries – led most recently by Canada – have committed to managing methane.
  • Canadian regulators just released new rules aimed at reducing methane emissions from the oil and gas industry by as much as 45% over the next seven years. When Canada hosts the G7 summit in June, its leaders will have an opportunity to advance this agenda.
  • Worldwide, three sectors need urgent regulatory attention when it comes to methane emissions: the oil and gas industry, agriculture, and landfills and wastewater treatment plants.

The selected pieces do not necessarily reflect the views of Javier Solana and ESADEgeo. The summaries above may include word-for-word excerpts from their respective pieces.  

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