Economy

Ethiopia last week opened its mega dam on the River Nile, the Grand Ethiopian Renaissance Dam (GERD). The launch has sparked a tense diplomatic battle between Ethiopia and Egypt, with Cairo denouncing it as “an unlawful unilateral act” and protesting to the United Nations Security Council. During an inauguration ceremony on Tuesday (9 September) Ethiopian Prime Minister Abiy Ahmed described the US$5 billion Grand Ethiopian Renaissance Dam as a “symbol of Ethiopian unity and national achievement". Several regional leaders, including Kenyan President William Ruto and Somalia’s President Hassan Sheikh Mohamud, attended the event. Egypt, whose life has historically centred around the River Nile, believes the dam will threaten its water supply and cause shortages. Following the inauguration, Cairo warned that it reserved the right to take all measures provided for under international law and the UN Charter to “defend the existential interests of its people”. Sudan, has also raised concerns about dam safety and the risk of uncoordinated water releases.

Legislators toppled France’s government in a confidence vote on Monday 8 September, a new crisis for Europe’s second-largest economy that obliges President Emmanuel Macron to search for a fourth prime minister in 12 months. Prime Minister Francois Bayrou was ousted overwhelmingly in a 364-194 vote against him. Bayrou paid the price for what appeared to be a staggering political miscalculation, gambling that lawmakers would back his view that France must slash public spending to rein in its debts. Instead, they seized on the vote that Bayrou called to gang up against the 74-year-old centrist who was appointed by Macron last December.