2 Regional Situations in Europe

(1) The European Union (EU)

The EU is a political and economic union consisting of 27 member states with a total population of about 447 million. Sharing fundamental values and principles, the EU is an important partner for Japan in addressing global issues.

<Recent Developments of the EU>

For the EU, 2022 was a year in which it had to respond to Russia's aggression against Ukraine. In December 2021, following the escalation of tensions due to the buildup of Russian troops on the Russian-Ukrainian border, the EU began talks on a response, including sanctions against Russia. On February 22, an informal meeting of EU foreign ministers on sanctions against Russia was held, and the EU sanctions package against Russia was unanimously approved. The EU had been implementing economic sanctions against Russia since the annexation of Crimea in 2014, and had continued to impose sanctions due to insufficient implementation of the Minsk agreements, which are peace agreements concerning the conflict in eastern Ukraine. However, following Russia's recognition of the “Donetsk People's Republic” and the “Luhansk People's Republic” as “independent states” on February 21 and the start of Russia's aggression against Ukraine on February 24, the EU implemented several rounds of sanctions from February, and announced the 9th sanctions package in December. As a result, the EU has implemented its most large-scale and extensive sanctions against Russia to date, including economic sanctions, asset freezes and travel restrictions on individuals and entities, diplomatic measures, restrictions on economic relations, and restrictions on the media. In addition, as support for Ukraine, the EU and EU member states are providing macro financial assistance in the form of macro financial support, budgetary support, emergency assistance, and crisis response and humanitarian assistance totaling 19.7 billion euros (of which approximately 12.4 billion euros is support from the EU)³. Besides this, the EU approved a macro financial assistance package totaling up to 18 billion euros for 2023, and began disbursement in January 2023. Furthermore, as its first military assistance, the EU decided to contribute a total of 3.6 billion euros to the European Peace Facility⁴ by January 2023. In solidarity with Ukraine, the EU has accepted and provided support to a considerable number of displaced Ukrainians in the EU region, including more than one million Ukrainian evacuees in Poland alone. In addition, President Volodymyr Zelenskyy of Ukraine submitted an application for Ukraine's accession to the EU in February, and talks to begin accession negotiations are taking place at an unusually rapid pace, with Ukraine being granted candidate country status in June. From the perspective of building a multilayered European framework, the first European Political Community Summit was held in October under the concept of setting up a middle stage between EU member states and non-member states. It was hosted by the Czech Republic, which held the EU Presidency in the second half of 2022, and invited 44 countries, including EU member states, candidate countries such as Ukraine, and neighboring EU countries such as the UK, which left the EU. It was decided to hold the Summit regularly going forward, rotating the host country between EU member and non-member states.

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• 3 As of December 16, 2022
• 4 European Peace Facility: System established in March 2021 to enable the EU to finance military or defense activities under the EU's Common Foreign and Security Policy and to enhance the EU's capacity for conflict prevention, peacebuilding, and strengthening international security. It is implemented outside the EU's regular budgetary framework.
  https://www.consilium.europa.eu/en/policies/european-peace-facility/
  

<Japan-EU Relations>

Japan and the EU are strengthening their cooperation under the Japan-EU Economic Partnership Agreement (EPA), which entered into force in February 2019, and the Japan-EU Strategic Partnership Agreement (SPA), of which provisional application started at the same time.

In May 2022, Prime Minister Kishida held the Japan-EU Summit with President Charles Michel of the European Council and President Ursula von der Leyen of the European Commission. During the Summit in Tokyo, which was held in-person for the first time in three years, they exchanged views regarding international and regional affairs centered on Russia's aggression against Ukraine, the situation in East Asia, and the situation in North Korea. They also exchanged views on global challenges such as FOIP, economic security, energy, and food security, as well as Japan-EU relations, and agreed on Japan-EU cooperation and collaboration in extensive fields. Furthermore, they issued a joint statement and decided to launch the Japan-EU Digital Partnership. In addition, Prime Minister Kishida also held summit meetings respectively with President Michel of the European Council and President von der Leyen of the European Commission on the occasion of the G7 Summit in Brussels, Belgium, in March and the G7 Summit in Elmau, Germany, in June. In November, Prime Minister Kishida held a summit meeting with President von der Leyen of the European Commission on the occasion of the G20 Summit in Bali, Indonesia. In September, President Michel of the European Commission visited Japan to attend the state funeral for the late Prime Minister ABE Shinzo, and held a summit meeting with Prime Minister Kishida on this occasion as well.

In February, Foreign Minister Hayashi virtually attended the Ministerial Forum for Cooperation in the Indo-Pacific co-hosted by France, which held the EU Presidency for the first half of the year, and the EU. He gave a speech in which he referred to the severe security environment in the Indo-Pacific region and stressed the importance of strengthening cooperation with like-minded countries and partners. Foreign Minister Hayashi also held Japan-EU Foreign Ministers' Meetings with High Representative of the EU for Foreign Affairs and Security Policy Josep Borrell on the occasion of the Munich Security Conference in Germany in February, the Meeting of NATO Ministers of Foreign Affairs in Brussels, Belgium, in April, and the G7 Foreign Ministers Meeting in Munster, Germany, in November.

In addition, in March, the EU announced its Strategic Compass, a set of strategic guidelines for its security and defense policy for the next 10 years, which stipulates that the EU will further promote partnership with like-minded countries and strategic partners, including Japan. As confirmed by Summit leaders at the Japan-EU Summit, Japan and the EU will aim to expand substantive cooperation in fields such as cyber security, countering disinformation, maritime security, and crisis management.

The EU, with its economic scale that follows the United States and China, is an important economic partner of Japan, ranking second among Japan's import partners, third among export partners, and first in terms of the balance of direct investment in Japan. Economic relations between Japan and the EU are further deepening on the basis of the Japan-EU EPA, which entered into force in 2019. Japan and the EU have been effectively implementing and utilizing the agreement through the Joint Committee (which met most recently in March 2022) and specialized committees and working groups as stipulated in the agreement. In October, formal negotiations were launched on the inclusion of “provisions on the free flow of data” into the Japan-EU EPA. In the same month, the Japan-EU High-Level Economic Dialogue was held, in which the two sides confirmed further cooperation on global economic issues, including economic security. Going forward, Japan will continue to aim to further develop Japan-EU economic relations, steadily implement the Japan-EU EPA, and conduct extensive Japan-EU cooperation.

Furthermore, the agreement in principle was reached for the Japan-EU Agreement on Bilateral Agreements between Japan and the Member States of the EU for Air Services during the fourth round of intergovernmental negotiations held on April 6. The Agreement will further strengthen cooperation between Japan and the EU in the field of aviation.

(2) United Kingdom

Following Prime Minister Boris Johnson's announcement of his resignation in July, a Conservative Party leadership election was held from July to September, and Elizabeth Truss, who served as Secretary of State for Foreign, Commonwealth and Development Affairs as well as Minister for Women and Equalities in the previous administration, became the new Prime Minister. However, Prime Minister Truss announced her resignation in October following market turmoil triggered by economic policies such as large-scale tax cuts. In the same month, Rishi Sunak, who served as Chancellor of the Exchequer in the Johnson administration assumed the position of Prime Minister. While keeping economic stability as the top priority, he has been promoting initiatives that fulfill the Conservative Party's promises made during the 2019 general election, including strengthening the health system, better education, “levelling up” the economy for all regions of the United Kingdom, and an economy that will benefit from leaving the EU.

In September, His Majesty King Charles III acceded to the throne following the demise of Her Majesty Queen Elizabeth II.

There was active dialogue between the governments of Japan and the UK at various levels, including the summit and foreign minister level. In addition to their telephone calls in February and July, Prime Minister Kishida met with Prime Minister Johnson during the G7 Summit in March and June, and during his visit to the UK in May. Prime Minister Kishida held a meeting with Prime Minister Truss during the UN General Assembly in September. With Prime Minister Sunak, Prime Minister Kishida held a telephone call in November, an informal talk during the G20 Bali Summit in the same month, and a meeting in January 2023. Foreign Minister Hayashi held a telephone call with then Secretary of State for Foreign, Commonwealth and Development Affairs as well as Minister for Women and Equalities Elizabeth Truss in April, and meetings with her on the margins of the G7 Foreign Ministers' Meetings in February and May. He also held a telephone call with Secretary of State for Foreign, Commonwealth and Development Affairs James Cleverly in September as well as an informal talk with him at the UN General Assembly in the same month. They also met at the state funeral for the late Prime Minister ABE Shinzo in the same month and at the G7 Foreign Ministers' Meeting in November.

On each occasion, there was confirmation of further deepening of Japan-UK relations, which are closer than ever. There was also close communication on the G7's united response to Russia's aggression against Ukraine and on regional affairs, including East Asia.

During the January 2023 summit meeting between Prime Minister Kishida and Prime Minister Sunak, the two leaders confirmed that they would continue to promote bilateral cooperation toward realizing FOIP as the UK upholds its Indo-Pacific “tilt,” and exchanged views on the G7 Hiroshima Summit, security, and regional affairs.

In the security field, Japan-UK cooperation has been raised to new heights, including the announcement of the joint development of next-generation fighter aircraft by the leaders of Japan, the UK, and Italy in December, and the signing of the Japan-UK RAA at the Japan-UK Summit Meeting in January 2023.

(3) France

President Emmanuel Macron entered the April presidential election with a high approval rating for an incumbent president due to his handling of COVID-19 and the situation in Ukraine. In the run-off (second round), which was the same face-off as the 2017 presidential election, President Macron was reelected despite the narrowing of the margin of votes between him and candidate Marine Le Pen of the National Rally, which is referred to as a far-right party. On the other hand, in the June National Assembly elections, the ruling coalition won less than a majority of seats.

With respect to external affairs, France held the EU Presidency in the first half of 2022, and continued to play a role in driving Europe's engagement in the Indo-Pacific, including co-hosting the EU Indo-Pacific Ministerial Forum with the EU in February (Foreign Minister Hayashi participated in the meeting online). With regard to the situation in Ukraine, France implemented sanctions against Russia and provided assistance for Ukraine. President Macron visited Kyiv in June and had a series of telephone calls with President Vladimir Putin.

With regard to Japan-France relations, dialogues were held at various levels, including at the summit and foreign minister levels. In January, the Sixth Japan-France Foreign and Defense Ministers' Meeting (“2+2”) was held online, and a joint statement was issued confirming cooperation in the Indo-Pacific region and other such matters. In March, Prime Minister Kishida held a telephone call with President Macron, and strongly condemned Russia due to its aggression against Ukraine. In May, Foreign Minister Hayashi met with Minister for Europe and Foreign Affairs Jean-Yves Le Drian on the occasion of the G7 Foreign Ministers' Meeting, and they agreed to promote concrete cooperation between Japan and France through various frameworks. In June, Prime Minister Kishida held a telephone call with President Macron, and Foreign Minister Hayashi held a telephone call with newly appointed Minister for Europe and Foreign Affairs Catherine Colonna, confirming cooperation with the new French administration. Furthermore, in the same month, Prime Minister Kishida held an in-person meeting with President Macron during the G7 Elmau Summit, and also held a telephone call with him in July. Foreign Minister Hayashi held a telephone call with European and Foreign Affairs Minister Colonna in August, as well as an in-person meeting with her on the occasion of the G7 Foreign Ministers' Meeting in November. During the meeting, the two foreign ministers confirmed the need for a united G7 response to the situation in Ukraine.

On January 1, 2023, Japan opened a consular office in Nouméa in New Caledonia, a French territory which is an important geopolitical point in the Indo-Pacific region. Prime Minister Kishida visited France in the same month. At the summit meeting and working dinner with President Macron during his visit, they concurred to aim to create a new roadmap for Japan and France, and exchanged views on the G7 Hiroshima Summit, security cooperation, and regional affairs.

(4) Germany

The three-party coalition government (the so-called “traffic light coalition”) consisting of the Social Democratic Party (SPD), the Green Party, and the Free Democratic Party (FDP) has worked intensively to respond to Russia's aggression against Ukraine since February 24. On February 27, Federal Chancellor Olaf Scholz (SPD) announced the establishment of a 100 billion euros special fund to strengthen the German armed forces (Bundeswehr) and a policy of increasing defense spending to 2% of GDP in the future. Subsequently, he also made a major policy shift from the previous foreign and security policy, including the provision of lethal weapons to Ukraine, a country in the conflict zone. Furthermore, the administration decided to extend the operation of the remaining three nuclear power plants, which were scheduled to cease operation at the end of 2022 in accordance with its policy of decommissioning nuclear power plants, until April 15, 2023. Moreover, in holding the G7 Presidency for 2022, Germany held G7 leaders' meetings and foreign ministers' meetings more frequently than in average years, contributed to the strengthening of G7 cooperation, and played an active role in the response to the situation over Ukraine, including by co-hosting with the European Commission the “International Expert Conference on the Recovery, Reconstruction and Modernisation of Ukraine” in October in Berlin. On the other hand, the administration has been criticized domestically for its cautious stance on support for Ukraine, including the provision of arms. Furthermore, against the backdrop of rising concerns about people's lives due to soaring food and energy prices, the combined approval rating of the three ruling parties in public opinion polls has remained below 50% since the autumn of 2022. The future course of the administration operations will be a focus of attention.

With regard to Japan-Germany relations, in addition to the G7 process under Germany's Presidency in 2022, there were close high-level exchanges at an unprecedented frequency due to the series of visits to Japan by German dignitaries. From Japan, Foreign Minister Hayashi visited Germany in February as well as May and November on the occasion of the G7 Foreign Ministers' Meetings. Prime Minister Kishida also visited Germany in June for the G7 Elmau Summit, and held a summit meeting with Federal Chancellor Olaf Scholz on the occasion of the G20 Bali Summit in November. From Germany, Federal Chancellor Scholz visited Japan in April, Federal Foreign Minister Annalena Baerbock visited Japan in July, and Federal President Frank-Walter Steinmeier visited Japan in November. They confirmed continued close cooperation on matters such as realizing FOIP and the response to the situation in Ukraine, further strengthening Japan-German relations as important partners that share fundamental values. Moreover, Japan and Germany are enhancing cooperation in the security field, including the visit of Eurofighter Typhoons and other German military aircrafts to Japan in September and the holding of the second Japan-Germany Foreign and Defense Ministers' Meeting (“2+2”) in November.

(5) Italy

Concerning domestic economic support measures in response to the impact of the situation in Ukraine, in July, the Five Star Movement (M5S), one part of the ruling coalition party, opposed part of the draft decree on the support measures, and was absent from the vote in Parliament. President of the Council of Ministers Mario Draghi, who had taken the position that his administration could not survive if even one party in the ruling coalition was absent, submitted his resignation to President Sergio Mattarella in response. President Mattarella asked President of the Council of Ministers Draghi to report the situation to Parliament, and a vote of confidence was held. However, since the three main ruling coalition parties, including Lega Nord and Forza Italia (FI) in addition to M5S, did not participate in the vote, President of the Council of Ministers Draghi submitted his resignation again, and President Mattarella decided to dissolve both the upper and lower houses of Parliament and hold elections.

In September, elections were held for members of the upper and lower houses, and the “center-right coalition” with the “Brothers of Italy (FdI)” as the leading party won a majority of seats. After consulting with the presidents of the upper and lower houses and representatives of the political parties, President Mattarella nominated FdI leader Giorgia Meloni to be President of the Council of Ministers, and she accepted. In October, Italy had its first ever female prime minister.

As for Japan-Italy relations, Prime Minister Kishida visited Italy in May and held a meeting with President of the Council of Ministers Draghi, in which they reaffirmed the unity of the international community, including the G7, with regard to international affairs, including the situation in Ukraine. In September, Prime Minister Kishida met with former President of the Council of Ministers Matteo Renzi, who visited Japan to attend the state funeral for the late Prime Minister ABE Shinzo. Furthermore, in November, Prime Minister Kishida held a telephone call with President of the Council of Ministers Meloni to congratulate her on her inauguration. Foreign Minister Hayashi held a meeting with newly appointed Vice President of the Council of Ministers and Minister of Foreign Affairs and International Cooperation Antonio Tajani during the G7 Foreign Ministers' Meeting in November.

As for the security field, in December, there was an announcement on the joint development of next-generation fighter aircraft by Japan, the UK, and Italy. In January 2023, Prime Minister Kishida and President of the Council of Ministers Meloni agreed to upgrade Japan-Italy relations to a “Strategic Partnership” and to launch the Japan-Italy Political-Military Dialogue at a summit meeting. They also welcomed the accord in principle on the negotiations of the Italian-Japanese film Co-Production Agreement.

(6) Spain

The second administration of Prime Minister Pedro Sánchez, inaugurated in January 2020, is governed by a minority ruling coalition government in cooperation with various parties outside the cabinet. The key issue is managing the economy under the impact of high resource and energy prices.

In regard to Japan-Spain relations, the two countries are strengthening their cooperation under the strategic partnership concurred upon at the summit level in 2018. In June, Prime Minister Kishida attended the NATO Summit held in Madrid, where he held a meeting with Prime Minister Sánchez. The two leaders exchanged views on cooperation between companies in renewable energy, digital, and other fields, as well as on regional affairs including Ukraine and the Indo-Pacific. In the same month, Foreign Minister Hayashi met with Minister for Foreign Affairs, European Union and Cooperation José Manuel Albares on the occasion of the G20 Foreign Ministers' Meeting in Bali. In October, the 22nd Japan-Spain Symposium was held in Kyoto and the Japan-Spain Vice-Ministerial-level Political Consultations were also held, advancing cooperation in both the public and private sectors.

(7) Poland

The coalition government led by the ruling Law and Justice (PiS) party continues to govern with relative stability against the backdrop of a strong economy and generous welfare policies. It has actively supported neighboring Ukraine in the wake of Russia's aggression against Ukraine. Since the start of that aggression, Poland has actively accepted Ukrainian evacuees.

In regard to Japan-Poland relations, in response to Russia's aggression against Ukraine, Japan and Poland have been maintaining bilateral contact including a foreign ministers' telephone call in February as well as a summit telephone call and summit meeting in March. In April, Foreign Minister Hayashi visited Poland as a Special Envoy of Prime Minister Kishida. During his Foreign Ministers' Meeting with Foreign Minister Zbigniew Rau, the two ministers shared the view on continuing to maintain close cooperation as strategic partners to protect the free and open international order. Moreover, Foreign Minister Hayashi also paid courtesy calls to President Andrzej Duda and Prime Minister Mateusz Morawiecki. Foreign Minister Hayashi stated that Russia's aggression against Ukraine is a serious situation that shakes the very foundation of the entire international order, and shared the view with the leaders that it is important for like-minded democracies to continue resolutely imposing sanctions against Russia in unity and solidarity. Foreign Minister Hayashi also visited the sites of the acceptance of displaced people, and returned to Japan on a government airplane together with 20 evacuees who wished to evacuate to Japan.

(8) Ukraine⁵ (Reference: Special Feature “Russia's Aggression Against Ukraine and Japan's Response” on page 16)

Entering 2022, as the situation became even more tense with the buildup of Russian forces in the vicinity of the Ukrainian border, Japan continued its efforts to ease tensions together with the international community, including the Japan-Ukraine Summit Telephone Call on February 15, the Japan-Russia Summit Telephone Call on February 17, and the G7 Foreign Ministers' Meeting on February 19.

On February 24, President Putin of Russia announced the start of a “special military operation,” and Russia's aggression against Ukraine began. On the same day, Japan issued a Statement by Foreign Minister Hayashi condemning this in the strongest terms. Furthermore, Japan held a Japan-Ukraine Foreign Ministers' Telephone Call on February 25 and a Japan-Ukraine Summit Telephone Call on February 28, and conveyed that it would implement further sanctions against Russia and support for Ukraine. Moreover, in response to Russia's attack on a nuclear power plant in Ukraine, another summit telephone call was held on March 4, and Prime Minister Kishida stated that Russia's brutal actions are absolutely unacceptable to Japan, which experienced the accident at TEPCO's Fukushima Daiichi Nuclear Power Station.

Japan and Ukraine have pursued close cooperation not only between their governments but also between their legislatures. On March 24, President Zelenskyy of Ukraine gave an online address to the Japanese Diet. Furthermore, on March 31, in order to show further solidarity with Ukraine, the Government of Japan announced that it would change its Japanese spelling of the Ukrainian capital to “キーウ” (in katakana, equivalent to the change from Kiev to Kyiv in English), based on the Ukrainian pronunciation, and that it would also change the spellings of place names other than the capital to match the Ukrainian pronunciations.

On April 2, Foreign Minister Hayashi, who was visiting Poland as a Special Envoy of Prime Minister Kishida, held an in-person foreign ministers' meeting with Foreign Minister Dmytro Kuleba of Ukraine. On April 4, in response to the revelation that Russia had committed atrocities in the vicinity of Kyiv, including the mass killing of many civilians, a Statement by Foreign Minister Hayashi was issued condemning these acts. On April 26, a summit telephone call was held and Prime Minister Kishida conveyed that Japan would provide further support based on Ukraine's request. On May 13, during the G7 Foreign Ministers' Meeting (Weissenhaus, Germany), Foreign Minister Hayashi held an in-person foreign ministers' meeting once again, in which both countries confirmed the importance of the international community, including the G7, uniting to continue strong sanctions against Russia. Moreover, Japan continued coordination for various responses based on the situation in close cooperation with the international community, including the G7, at meetings such as the G7 Elmau Summit in June.

On July 22, following the agreement among the UN, Turkey, Ukraine, and Russia to resume grain exports from Ukraine through the Black Sea, a Statement by Foreign Minister Hayashi was issued welcoming the agreement. Furthermore, on the following day, July 23, a Statement by Foreign Minister Hayashi was issued that strongly condemned the Russian attack on the port of Odesa. Moreover, on August 23, Prime Minister Kishida sent a video message at the Second Summit of Crimea Platform⁶ hosted by Ukraine.

During the UN General Assembly High-Level Week, Prime Minister Kishida held an in-person summit meeting with Prime Minister Denys Shmyhal of Ukraine on September 22. Furthermore, during a summit telephone call on September 30, Prime Minister Kishida stated that the purported “referenda” conducted in some areas of Ukraine as well as the purported “incorporation” of these areas by Russia shall never be recognized, and that Japan strongly condemns such moves. The Statement by Foreign Minister Hayashi with the same point was also issued on the same day.

Moreover, on October 5, the Embassy of Japan in Kyiv, which had been temporarily closed in March, was reopened with sufficient security measures in place. Since then, the Embassy has been actively gathering information and coordinating with various countries, including the Government of Ukraine.

Russia's aggression against Ukraine is a unilateral attempt to unilaterally change the status quo by force. It is an outrageous act that shakes the very foundation of the international order, not only in Europe but also in Asia, a clear violation of international law, and completely unacceptable. Japan will act in solidarity with Ukraine and unity with the international community, including the G7, in order to resolutely defend the international order.

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• 5 For Prime Minister Kishida's visit to Ukraine in March 2023, see the MOFA website:
  https://www.mofa.go.jp/erp/c_see/page1e_000591.html
  
• 6 Ukraine announced an initiative in 2020 aimed at resolving various issues surrounding Crimea, which was illegally “annexed” by Russia in 2014, and held the first summit meeting (Kyiv, Ukraine) in August 2021.