The European Union is furious with Prime Minister Baburam Bhattarai, because he is showing signs of rejecting the proposal for ethnic federalism. Norway, Switzerland, Denmark and Finland who were openly supporting Bhattarai untill recently are now dissatisfied with him. Apparently, the only people who are pleased with Baburam's change of heart are former American ambassador to Nepal, Scott H DeLisi, Indian ambassador Jayant Prasad and his own chairman, Pushpa Kamal Dahal.

The Europeans have so far successfully incorporated secularism in the interim constitution. They are now spending Rs 3.5 billion annually in the name of federalism and ethnic inclusion and actively pushing the ethnic agenda in Nepal. However, the EU's opposition can prove costly to Bhattarai's government.