The Baltics Dilemma

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The Baltics Dilemma

As Germany and Russia grow in power, nations in between are starting to pick sides.

When you look at Europe today, it’s like it’s 1938 all over again: Germany is dominating the mainland with its robust economy and political savvy; Britain is woefully unaware of the dangers in Europe; meanwhile, Russia, as it was in the lead-up to World War ii, is the main counterweight to Germany.

And just like in the lead-up to World War ii, relations are tense between Russia and Germany. Proxy wars are already being fought in Syria, and the financial crisis in Cyprus has caused a lot of tension. But both also realize they can’t push the other too far. There must be peace, at least for now. That way each can pursue its imperialistic aims.

For decades, the Trumpet has predicted that another Molotov-Ribbentrop-type pact would be made between Germany and Russia. Back in 1961, Herbert W. Armstrong wrote in a co-worker letter that after Europe united, it would “make a deal with [Russia]—a non-aggression pact.” After Russia invaded Georgia in 2008, editor in chief Gerald Flurry told the students at Herbert W. Armstrong College, “I believe it is very likely Germany and Russia have already cut a deal.”

Political lines are starting to be drawn between Europe and Russia. Where will they be drawn this time? Will it be the same line drawn before World War ii?

One group of nations located between Russia and Germany that have been in the news lately are the Baltic countries: Latvia, Lithuania and Estonia. All three of these nations are looking to Europe, but the economic crisis in Europe is also making Russia a more attractive partner. Historically, the Baltic states have been tied to Russia. When the Nazi-Soviet non-aggression pact was signed in 1939, all three nations went to Russia. After World War ii, they became Soviet satellite states. Will they fall to Russia again?

Europe’s Open Arms

After the disintegration of the Soviet Union in 1991, the Baltic states quickly cut their Russian ties. All three became members of the European Union in 2004, though they were not immediately permitted to make the euro their official currency. In 2011, Estonia became the first of the three to switch to the euro; Latvia was recently approved to switch to the euro at the start of 2014; Lithuania is making its second bid to switch after being turned down in 2006.

Since their break from the Soviet Union, the Baltic states have worked to tie their economies to the free-market economies of Europe. Lithuanian Finance Minister Rimantas Sadzius told EUObserver.com, “Lithuania basically has no own monetary policy. We have pegged our currency to the euro since 2002, and before that it was pegged to the dollar just one year after the lita [Lithuania’s sovereign means of exchange] was introduced, in 1993. So if we have no monetary instrument in our toolbox, the only logical option is to change this quasi-euro into a real euro.”

Germany has helped a great deal with bringing these nations into the European Union and the eurozone. Germany was one of the first Western nations to formalize relations with the Baltic states following their declarations of independence from Russia. In 1994, Germany supported the Baltic states’ demands for Russian troops to leave their countries, a demand Russia was forced to comply with. When Germany assumed presidency of the Council of Ministers of the European Union in July 1994, Germany used its position to influence other European nations to work with it to bring the Baltic states into the EU. At the end of 1994, the EU unanimously decided to pursue negotiations with Latvia, Lithuania and Estonia. This move by the German government “had decisively accelerated the integration into Europe of the Baltic states” (KAS International Reports, September 2010).

Today, Germany is still exerting a lot of pull on the Baltics to swing them over to Europe. In respect of the Latvian adoption of the euro, German-Foreign-Policy.com noted that “only one third of the Latvian population is in favor of this project. But German businesses— following the positive experience with Estonia’s introduction of the euro— fully approve of this step ….” German businesses are one of the main factors that are holding the Baltics to Europe, and these businesses are looking to expand. A recent survey found that the majority of German businesses that operate in the area are planning on expanding and creating jobs: “In Estonia about a third of the participating companies plan to hire new employees this year. In Latvia it is 25 percent, in Lithuania even 40 percent” (bbn, April 11).

Germany understands the importance of the Baltics. As Stratfor noted (March 11),

With a population of just over 2 million people and a gross domestic product of $37 billion, Latvia is important not for its size but for its location. Situated on the coast of the Baltic Sea and in the heart of the North European Plain, Latvia has been contested by larger powers, such as Russia, Germany and Sweden, throughout its history.

There most certainly is a power struggle going on right now over the Baltics, and Germany seems to have the upper hand.

Breaking Its Ties to Russia

As the Baltics push for more integration with Europe, they are slowly working to limit their reliance on Russia. In 2004, after the Baltics joined the EU, Russian gas monopoly Gazprom announced it was going to raise the price of natural gas it sold to the Baltics. Because Russia has had a monopoly over natural gas supplies in the Baltics, and much of Eastern Europe, it has been free to overcharge on the gas it sells. Although Baltic states like Lithuania, following the lead of many other European nations, have spoken out against the high prices Russia charges, Russia has shown in the past that it is willing to play hard ball in the pricing arena—witness its past shenanigans in Ukraine and during past winters when it has cut supply to Europe to pressure agreement on price. Still, with the EU constantly seeking alternative supplies of energy such as via the Caspian region, Russia may soon have to become more malleable on pricing its energy exports. One of its prime levers in its Balkan foreign policy will then be weakened.

It’s not just reliance on Russian energy that the Balkans are trying to limit—it’s Russian culture as well. In March, Stratfor reported, “Latvian Culture Minister Zaneta Jaunzeme-Grende issued a statement urging Latvian citizens to speak Latvian, not Russian, when addressing the media.” Latvia has been making a concerted effort to limit Russia’s influence. In February last year, a referendum held in Latvia to decide if Russian should be Latvia’s second official language was overwhelmingly opposed, with nearly 75 percent of voters voting “no.”

Though almost 30 percent of Latvia’s population is comprised of ethnic Russians, it has worked to limit the amount of influence Russia has in their country. In the last federal election, three Latvian political parties formed a coalition to prevent Latvia’s pro-Russian political party, Harmony Center, from leading the government, despite the fact that Harmony Center controlled more seats in the Latvian Parliament than any of the other parties.

Signs seem to indicate that the Baltics are moving away from Russia in favor of Europe. This goes against their normal historical allegiance, albeit that allegiance was not always a willing one. Is the line drawn in the Baltics? Are they going to go to Europe this time?

An Overlooked Factor

We can see the Baltics are moving away from Russia both economically and politically, but there is also an additional factor that can help us see which way the Baltics could align: Bible prophecy.

Those who are familiar with history and Bible prophecy know the effect religion and the Holy Roman Empire have had and will have on this world. Since its inception, Roman Catholicism has always had an influence in European politics. When Justinian restored the Roman Empire under its new title of the Holy Roman Empire in a.d. 554, the influence of Catholicism grew exponentially, as it was now backed by political force. Bible prophecy shows the Holy Roman Empire is to arise one final time, in our day (read our booklet Germany and the Holy Roman Empire to understand more).

Religion certainly could have a huge impact on drawing the Baltic nations away from Russia, which is largely Russian Orthodox or atheistic. The Baltics all have a measure of Catholicism or Protestantism in them that would certainly cause them to be drawn more to Catholic Europe. Nearly 80 percent of Lithuania’s population is Roman Catholic; Latvia’s and Estonia’s populations are not as religious, and the portion that is, is either Protestant or Orthodox. But this too fits with Bible prophecy. For years the Trumpet has prophesied that these “daughter” churches in Europe (Protestants, Anglicans, Orthodox)––which originally came out of the Catholic Church––would return back to the Catholic fold. Could that be part of what brings Latvia and Estonia over to Europe?

As the Holy Roman Empire continues its rise in Europe, watch for a clear line to be drawn between it and Russia. Nations stuck in between will be forced to choose sides. It appears that the Baltic nations of Lithuania, Latvia and Estonia have chosen to stand with Europe this time.

The rise of the Holy Roman Empire is leading to some very troubling times that are going to affect every single person on Earth. Jesus Christ said that if He didn’t intervene in world affairs, there wouldn’t be a single person left alive on this Earth (Matthew 24:22). What we see developing in Europe today will cause a lot of this destruction. But thankfully, Christ says He will return to stop man from destroying himself and usher in a time of unending peace and happiness.

To understand what is happening in Europe, be sure to read Germany and the Holy Roman Empire and Daniel Unlocks Revelation.