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10661. Give Lisbon a chance: How to improve EU foreign policy

Author:
Fraser Cameron
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
After almost three decades of the Common Foreign and Security Policy (CFSP) and a decade since the establishment of the European External Action Service (EEAS), it is high time to assess whether EU foreign policy has indeed become “more visible, more coherent and more effective”, as stated in the Lisbon Treaty. Despite most media and experts having a rather disdainful view, there have been some successes. And the increasingly bleak geopolitical situation has a led to growing recognition in EU member states that they must try and work together if Europe is to become an international actor, defend multilateralism and maximise its influence on the world stage. But that understanding has not always been on display in recent years. Clearly, there remain significant challenges in coordinating the foreign policies of 27 member states, each with their own interests, traditions and capabilities. Fraser Cameron (EPC Senior Adviser), therefore, argues that the EU should have more modest ambitions. Instead of harbouring grand ideas, it could take small yet concrete steps in the direction of a more coherent and effective EU foreign policy. In this Policy Brief, he puts forward ten practical ideas.
Topic:
Security, Foreign Policy, Regional Cooperation, European Union, and Geopolitics
Political Geography:
Europe

10662. EU return sponsorships: High stakes, low gains

Author:
Florian Trauner and Olivia Sundberg Diez
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
The concept of ‘return sponsorships’ is the most novel of the New Pact on Migration and Asylum’s proposals. It is also proving to be one of the most controversial in the negotiations. With this proposal, the Commission set out to resolve the discussion between member states on responsibility-sharing in migration matters, and simultaneously increase the number of migrants returned to their country of origin. Under the new scheme, member states would have to support other EU countries facing migratory pressure. If, however, they oppose the option of relocating asylum seekers, they can ‘contribute’ by facilitating the returns of migrants who lack permission to remain in Europe instead. But making this idea work in practice will not be straightforward. In unpacking the return sponsorship mechanism, Olivia Sundberg Diez and Florian Trauner have reached the following five conclusions: 1) Existing conflicts between member states over responsibility-sharing will not be settled but transposed onto discussions about the precise requirements of return sponsorship, in particular, the transfer of migrants within Europe if returns are unsuccessful. 2) The flexibility embedded in the solidarity mechanism comes at the expense of tangible support for EU border states, who continue to shoulder a disproportionate amount of the responsibility to receive and process new arrivals. 3) Matching the preferred contributions of a sponsor with a border state’s needs will be extremely complex in terms of administration, and effective enforcement tools are lacking. Repeated delays and the politicisation of solidarity processes are likely, giving member states many opportunities to shift and shirk their responsibilities. 4) Return sponsorships may create new human rights risks for migrants ordered to return, both in and outside of the EU. 5) The return sponsorship concept relies on returns being done faster and in far greater numbers. This is far from certain: many third countries, for one, will remain reluctant to readmit their own nationals. The Commission is taking a considerable risk with the return sponsorship proposal while the potential gains are modest. If the proposal is to move forward, negotiators should prioritise strengthening the predictability and tangibility of support provided by the solidarity mechanism to the EU’s border states, ensure that return sponsorships do not lead to new human rights violations, and avoid inflated expectations regarding the impact of the growing use of conditionality on returns.
Topic:
Human Rights, Migration, European Union, Borders, and Asylum
Political Geography:
Europe

10663. Turning a new vision into reality: What next for the EU’s role in health?

Author:
Simona Guagliardo
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
In response to the COVID-19 pandemic, health has become a top priority for EU leaders. The first steps to revamp and strengthen the EU health agenda have been taken. However, to ‘build back better’ and make the most out of EU action in health, Europe must now lay the foundations for more resilient national health systems while centering the recovery on people’s well-being. All of this should be underpinned by a serious reflection on how the EU can bring added value. In this Policy Brief, Simona Guagliardo proposes how this vision can turn into reality: Despite its limited competences, the EU can support member states in making their national healthcare systems more effective, accessible, and resilient, for instance, by encouraging them to prioritise investments in health system reforms in the context of the 2021 European Semester and the Recovery and Resilience Facility. People’s health and well-being should be at the core of all policymaking. The EU must move away from only measuring progress in terms of economic growth. A reflection on the feasibility and desirability of transferring some health competences to the EU level can no longer be ignored. The Conference on the Future of Europe should serve as a platform to engage with citizens and civil society and start the debate on levelling up the EU’s role in health policy. The COVID-19 pandemic will not be the last pandemic Europe will ever have to face. Any tangible progress that the EU27 achieves in building a robust Health Union will not only be invaluable for managing today’s crisis, but also for preparing for future – and perhaps even more severe – health challenges.
Topic:
Civil Society, Health Care Policy, European Union, Public Policy, and COVID-19
Political Geography:
Europe

10664. Will corporate debt choke the post-COVID-19 recovery?

Author:
Frederico Mollet
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
Europe’s economic recovery is threatened by the corporate debt overhang created in the wake of the pandemic. Even as vaccines roll out, Europe faces the prospect of a prolonged retrenchment as indebted firms pull back investments and repair their balance sheets. Insolvency procedures have gradually improved over the past decade in Europe, but decisive and swift public action is needed to take advantage of these reforms. Given the scale of the crisis, Frederico Mollet argues in favour of a comprehensive European restructuring strategy. EU member states and the Commission must step in to provide the resources, guidance, and coordination necessary to push through this monumental restructuring. This strategy would furthermore benefit from common European guidelines and criteria for creditors and debtors. It will not only increase the likelihood of success but also protect the level playing field. Lack of a clear strategy and coordinated approach will result in a drawn-out restructuring process that pushes too many viable firms into liquidation and permanently hampers the economic recovery. Centring on private restructurings would also minimise the use of public funds at a time when governments have to deal with multiple competing fiscal pressures.
Topic:
Debt, Political Economy, and Economic Recovery
Political Geography:
Europe

10665. The EU–UK relationship: It is what it is

Author:
Fabian Zuleeg and Jannike Wachowiak
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
The EU–UK Trade and Cooperation Agreement might have pulled both sides back from the brink of a no-deal cliff edge, but it remains a shaky foundation for the next stage of EU–UK relations. Both sides must invest in the relationship and rebuild trust to prevent any conflict from escalating into a tit-for-tat. Or else, they risk the collapse of the deal and the return to a no-deal-like state. In the first months of its new phase, the relationship is already off to a rocky start. The rows over the diplomatic status of the EU mission in London and the Commission’s (now reversed) decision to trigger Article 16 of the Northern Ireland Protocol expose the volatility of the relations and the importance of good communication and trust. The hope for a deal came with the expectation that it would provide the foundation upon which a closer relationship could be constructed over time. It now seems more likely that it will be the basis for a diverging – and at times conflicting – relationship, with little prospect for a significantly closer economic relationship anytime soon. There seems little political appetite on both sides to build on the economic settlement meaningfully, which would require a significant shift of red lines. Previous expectations that a deal would pave the way for outstanding issues, such as the EU granting equivalence for financial services, have also diminished. Given both the political climate and many red lines, the agreed thin economic settlement may be the most we can expect.
Topic:
International Relations, Political Economy, Regional Cooperation, Treaties and Agreements, European Union, and Trade
Political Geography:
United Kingdom and Europe

10666. The EU’s legal migration acquis: Patching up the patchwork

Author:
Tesseltje de Lange and Kees Groenendijk
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
The European Commission and EU member states must increase intra-EU mobility opportunities for already lawfully present third-country nationals (TCNs). A considerable workforce of TCNs is waiting to work across EU borders in the same way as EU citizens; their waiting is not conducive to making the EU legal migration acquis patchwork work. In its proposal on the New Pact on Migration and Asylum, the European Commission has set out to do just that. If it wants to succeed and address Europe’s demographic trends and the foreseeable shortages in the continent’s national labour markets, a strong focus on enhancing the intra-EU mobility of TCNs already present in the EU is imperative. This Issue Paper presents five key recommendations that would improve the patchwork of the legal migration acquis. Harmonise existing rules. Full harmonisation of the legal migration acquis is not the immediate aim of EU member states but could become the objective in the long run. In the meantime, the Commission can take action to lift uncertainties over the meaning and subsequent implementation of the patchwork acquis. More legal certainty can only be experienced if the labour migration directives are used and litigated. Redesign the Single Permit Directive to deal with all procedures. The Single Permit Directive should, as a general directive on procedures, expand its subject matter to include all procedures on visas for entry and procedures on renewal and status switching. This could enable quick access to the Long-Term Resident status and intra-EU mobility. Engage third parties in the enforcement of equal treatment rights. The enforcement of the Single Permit Directive can be improved by first shifting the burden of proof of unequal treatment from the single permit holder to the employer. Second, third parties (e.g. work councils, NGOs) should be granted legal standing to engage in proceedings before national courts on behalf of or in support of single permit holders. In general terms, labour rights protection should be a priority of the highest degree. Design a ‘Light Blue Card’ for medium-skilled labour. To facilitate migration for medium-skilled jobs, rather than expand the scope of the Single Permit Directive, we suggest adding an optional or add-on, ‘light blue’ alternative for medium-skilled or -qualified labour (e.g. care work) to the recast Blue Card Directive. Facilitate the intra-EU mobility of third-country nationals. Rather than allow employers to use intra-EU posting to hire ‘cheap’ TCN workers in substandard conditions in low- and medium-skilled jobs, TCNs already lawfully present in the Union should get priority to access the EU labour market.
Topic:
Migration, Labor Issues, Immigration, European Union, Diversity, and European Commission
Political Geography:
Europe

10667. Europe after the Brits

Author:
Andrew Duff
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Andrew Duff argues that the loss of the United Kingdom should prompt serious reflection about the constitutional direction of the European Union. The secession of a member state changes the context of European integration. Brexit leaves the EU weaker, smaller and poorer — but it can and should also spur reform. The EU should aim to have major changes in place by 2029, including treaty revision. The reforms should include: (i) a renegotiation of the Brexit deal leading to a new class of affiliate membership; (ii) completion of the constitutional framework for a fiscal union; (iii) a European Parliament fully legitimated by election from transnational lists; and (iv) a ‘European Security Council’ of defence ministers to span the divide between the EU and NATO. The Conference on the Future of Europe may prove to be a useful democratic experiment. But it is not designed to address the important constitutional challenges that the Union faces. Duff therefore proposes creating an expert reflection group to stimulate the full implementation of the Treaty of Lisbon as well as prepare the way for the next Convention which must be called to amend the EU treaties. More immediately, the reflection group should make proposals to settle the controversial matter of how to elect the new President of the European Commission in 2024.
Topic:
Politics, Reform, European Union, Brexit, and Institutions
Political Geography:
United Kingdom and Europe

10668. Updating the European industrial strategy for the post-pandemic world

Author:
Marta Pilati and Frederico Mollet
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
On 27 April, the European Commission is expected to publish an update to their 2020 Industrial Strategy, a blueprint for an assertive European industrial policy that drives the digital and green transitions. While the current strategy’s broad principles continue to hold, it must now adapt to the post-pandemic world’s challenges. Furthermore, the original strategy only provided a high-level roadmap, with many areas requiring further development. Frederico Mollet and Marta Pilati break down European industry’s weaknesses and potential areas of success, the effects of COVID-19 this past year, key points of the 2020 Industrial Strategy and its relevance for Europe and beyond. They outline 16 recommendations which would strengthen the design and implementation of the programmes outlined in the current strategy, across four themes: finance, industrial ecosystems and alliances, technology transfer, and strategic autonomy.
Topic:
Development, Political Economy, European Union, Digital Economy, Green Technology, Industry, COVID-19, Strategic Autonomy, and European Commission
Political Geography:
Europe

10669. The Industrial Strategy refresh: A new opportunity to reboot the EU’s industrial innovation performance

Author:
Alison Hunter
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
The EU’s forthcoming Industrial Strategy update aims to put Europe’s industry at the core of the Union’s efforts to improve competitiveness. To achieve this, the Union must upgrade its policy and investment framework in a way that supports collaboration on industrial innovation across the EU. Although the EU has made some gains when it comes to boosting industrial innovation, recently, a disjointed framework has begun to emerge with two separate ‘tiers’ of support: one geared towards key industry initiatives, such as Industrial Alliances and Important Projects of Common European Interest (IPCEIs); the other towards place-based industrial innovation, driven primarily by EU regions, such as Cluster Collaborations and Smart Specialisation Partnerships. To maximise the impact of these collaborative efforts and to generate a connected, Europe-wide industrial ecosystem, we need an industrial innovation pipeline for the whole of the EU. Amid growing concerns about an uneven recovery from the pandemic, the EU cannot afford to perpetuate the current innovation divide or widen the distance between industrial winners and losers. The new Industrial Strategy update should, therefore: spearhead efforts to close the gap between the EU’s ‘Tier 1’ and ‘Tier 2’ industrial innovation support landscape; improve the analysis of the barriers that prevent many EU regional industrial innovation systems from flourishing; and promote an ‘Innovation Everywhere’ agenda, focusing on EU territories where industrial innovation continues to fall behind.
Topic:
Political Economy, European Union, Innovation, and Industry
Political Geography:
Europe

10670. China’s grand industrial strategy and what it means for Europe

Author:
Frederico Mollet
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
In its 14th Five-Year Plan, China has mapped out a grand economic and industrial strategy that upends many of the assumptions that underpin the EU's approach - how can the Union respond? With this new plan, the EU can expect tougher competition and greater protectionism in its economic relations with China. A further blurring of the public-private sector distinction in the country's economic model will make it harder to combat unfair Chinese competition. And while China is actively courting foreign investment, it is also signalling greater protectionism to products not made in China, which will lead to European investors' and exporters' interests diverging. To balance the scales, the EU should adapt its own strategy by: continuing to develop trade instruments to combat unfair competition at home and abroad; ensuring that these instruments and institutions can respond to unfair competition from private companies benefiting from state capital investment; ensuring that the extensive and often opaque government holdings in private firms are reflected in foreign direct investment and export controls; incorporating China's attempts to reconfigure supply chains into its own assessment of strategic dependencies, identifying areas that could become vulnerable; prioritising the improvement of access to the Chinese market for goods and services produced in Europe; developing alternative sources of growth, and boost demand and reduce barriers within the Single Market to offset greater Chinese protectionism; and ensuring that its industrial policy efforts will enable European industry to match China's developments. The present moment may mark a turning point in EU–China relations: in a little over three months, an agreement on an investment treaty was followed by sanctions and countersanctions. Geopolitical conflict ratchets up between China and the US. Beijing's new economic course will reshape its global relationships. China's protectionist turn and growing one-sided dependencies will threaten Europe's long-term strategic autonomy and undercut any attempts to construct a balanced approach to EU–China relations. If the EU's multi-track strategy is to work, a concerted effort is required to preserve economic parity and balance between the two powers.
Topic:
International Relations, Political Economy, European Union, Grand Strategy, Industry, and Supply Chains
Political Geography:
China, Europe, and Asia

10671. Recovery and reform in the EU’s most vulnerable regions

Author:
Alison Hunter and Marta Pilati
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
Europe’s most vulnerable regions, characterised by persistent low growth and poverty, face a systemic lack of specific EU support. These regions display particularly high levels of vulnerability to the social, economic and territorial impacts of COVID-19, which will affect their recovery trajectories. They risk being left further behind in the EU’s complex pathway towards ‘a green and digital recovery’. The Union’s lack of focus and action for investing in these most vulnerable regions must be addressed. First and foremost, EU institutions and member states should recognise that some territories will struggle much more than others in their recovery trajectories. Ignoring their plight would have potentially far-reaching consequences. The EU’s ‘convergence machine’ could be damaged irreparably, with long-term – and potentially political – consequences. Alison Hunter and Marta Pilati continue their extensive research on the Union’s low-growth, poor regions, calling for the founding of a specific EU initiative to support them as well as further targeting by the existing policy architecture. In particular, they recommend: creating an EU policy space for regions experiencing long-term low growth and poverty, to promote the value and visibility of place-based support; aligning Cohesion Policy and the Recovery and Resilience Facility for improved policy coherence and greater investment impact; and tailoring support for growth-enhancing reforms in the EU’s most vulnerable regions. The EU’s green and digital recovery strategy fails to account for the specific needs of its poor and low-growth regions. Existing disparities and fragmentation challenges across the Union could widen or even become entrenched, casting new doubts on the EU’s ability and commitment to strengthen its convergence agenda and execute a just transition. The fallout could lead to a rise in territorial and political tensions while leaving many vulnerable places behind. Hunter and Pilati outline an agenda for a new EU initiative that champions reform support for these vulnerable territories and improves their prospects for a digital and green recovery.
Topic:
Political Economy, Poverty, Reform, European Union, Digital Economy, Economic Growth, Green Technology, Recovery, COVID-19, and Economic Recovery
Political Geography:
Europe

10672. How to get European businesses to digitalise

Author:
Frederico Mollet
Publication Date:
07-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
Europe’s underperforming tech sector and reliance on foreign technologies has long alarmed its policymakers. But a significant – and often overlooked – factor in the EU’s economic underperformance over the last two decades is its slow business digitalisation. EU industry, especially SMEs, struggles with the prosaic challenge of integrating digital technologies into its business models and operations. The preoccupation tends to be on how to foster new digital start-ups. But what about the digitalisation of existing firms? The EU budget and recovery fund are armed with a range of new EU funding streams and programmes to tackle this challenge. With its 2030 targets and new policy framework, the EU aims to catch up with the previous generation of digital technologies and ensure that it does not miss out on the next wave of transformational change. Otherwise, Europe will fall behind its economic competitors even further. But there are still some gaps in the EU’s game plan for business digitalisation. Frederico Mollet outlines several areas where the new policy framework can be optimised, and new initiatives would be worthwhile: Additional funding should be mobilised from Cohesion Policy funds. Business digitalisation is a critical factor in regional convergence, and so an increased funding share would be in line with the policy’s main objectives. The Commission should use its coordinating and convening powers to get banks to commit to a best practice code, to assess digitalisation loans and improve their staff’s digital knowledge. Public authorities should leverage private partners. Many firms lack the awareness and information necessary to digitalise, but a number of ‘access points’ and private sector networks (e.g. finance providers, B2B businesses, supply chain networks) can reach them. The EU should consider complementing the design and implementation of European Digital Innovation Hubs and transition pathways – its main programmes for supporting business digitalisation directly – with 5 additional components. Taken together, these recommendations will bolster the funding available for business digitalisation, tackle some of the critical barriers to finance, and optimise the delivery of the Commission’s programmes.
Topic:
Political Economy, Science and Technology, European Union, Business, and Digitalization
Political Geography:
Europe

10673. After Brexit: Could bilateral agreements facilitate the free movement of persons?

Author:
Diego Acosta
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Some of the millions of EU nationals in the UK and British nationals in the EU are already suffering from Brexit’s drastic curtailment of the right to free movement. How can migration now be governed and facilitated between the two parties? Although an EU-wide agreement with the UK that ensures free movement remains the ideal solution, it is currently unrealistic. This calls for an evaluation of possible alternatives. Bilateral agreements should be explored and examined as a possible alternative to an EU-wide agreement with the UK to facilitate and govern cross-border mobility. Various bilateral free movement agreements across Europe show that their use is not only legal but also habitual. They offer flexibility when it comes to the rights of entry, residency and work, as well as other important rights. And they could also be used as a foundation upon which to build an agreement between the EU as a whole and the UK, if not to facilitate the rebuilding of mutual trust. Migration law expert Diego Acosta makes a further case for Spain being the first possible candidate for a post-Brexit bilateral free movement agreement concluded between an EU member state and the UK. Spain is the most important EU destination for British emigrants, and British migrants residing in Spain constitute the latter’s third-largest non-national population. In turn, the UK is the most important migrant destination for Spanish nationals worldwide, who represent the fifth-largest migrant group from the EU. He offers concrete suggestions as to what a bilateral treaty between Spain and the UK could include. In addition, governments of EU member states that have important reciprocal migration flows with the UK, as well as the UK government, should consider the following recommendations when exploring the possibility of adopting bilateral agreements on migration: The negotiating parties should place the rights and interests of both short-term and long-term British and European nationals residing in each other’s territory at the centre stage. In negotiating a possible treaty, both the respective EU member state (e.g. Spain) and the UK should take the pre-Brexit status quo as the departing point. The status of mobile nationals could be improved beyond that enjoyed by EU citizens pre-Brexit. For example, political rights could be extended beyond the municipal level. Certain categories of individuals (e.g. retirees, young workers) could benefit from special provisions which also depart from the pre-Brexit situation.
Topic:
Migration, Treaties and Agreements, European Union, Brexit, Diversity, and Mobility
Political Geography:
United Kingdom and Europe

10674. The von der Leyen Commission: Time to reset, regroup and get things done

Author:
Georg Riekeles
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
As Commission President Ursula von der Leyen prepares her State of the Union speech that will map out the second half of her mandate, she must seize the opportunity to reset her Com­mission after more than 18 months in crisis-fighting mode. In broad lines, the European Commission’s priorities – fostering a collective recovery from the pandemic; rolling out Europe’s green, digital and geopolitical makeover – are the right ones. But today’s pace of change requires an updated outlook, fresh ideas and a critical examination of the President’s leadership, methods and structures. Georg Riekeles lifts the veil and outlines three essential questions which guide a reflection on what this Commission now stands for: How does the Commission ensure a continued capacity for fresh thinking and renewal to direct the EU’s political agenda? Can the EU deal with the political fall-out from uncertainty, shocks and change? Is the Commission’s executive structure tailored to deliver the major tasks it faces? With many strong personalities and seasoned politicians, von der Leyen’s Commission has potential, and yet much of its agenda remains undelivered. Now is the time for her administration to regroup and get things done in the final three years of her term. The below five recommendations addressed to President von der Leyen outline what should be done to improve her leadership and administration’s delivery within the current legal and institutional framework and complete the mandate assigned to her by Europe’s leaders and the European Parliament: Establish independent thought and foresight, capable of challenging established ideas and structures, at the heart of the Commission’s leadership and policy agenda. Clarify responsibilities over priority deliveries in the next three years within the College, including her own working relationship and shared leadership with the (Executive) Vice-Presidents. Rethink the inter-institutional cooperation on major transformative EU projects, such as the Green Deal and digital transition, which must be co-constructed across institutions, from inception to adoption, through dedicated structures and processes. To better process member states’ political concerns, von der Leyen and Council President Charles Michel should offer First Vice-President Frans Timmermans the ‘Barnier seat’ at the European Council. Experiment further with the task force model, relying on the dual leadership of a politician and a high-level civil servant that are given direct access to top staff and resources across the Commission to solve a specific mission. Provide immediate remedy to resource allocation problems in overburdened Directorates-General and enact a proper reform of staffing policies.
Topic:
Politics, European Union, Institutions, and European Commission
Political Geography:
Europe

10675. The European Green Deal: How to turn ambition into action

Author:
Annika Hedberg
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
The pressure is on. The climate and ecological crises are accelerating and there is growing recognition that business as usual is not an option. The EU can and should play a major role in addressing the planetary crisis, in enabling and accelerating the transition to a more sustainable world. It can do this by acting as a rule-maker and enforcer; as an economic powerhouse; as a source of significant funding within the EU and beyond, as well as a mobiliser for private financing; as a convening power; as an innovator and developer of new solutions; as a standard-setter; as a major producer and consumer. The European Green Deal is crystal clear in its ambition. However, as this ambition and its goals are turned into policies and initiatives, the greatest challenge lies in the ‘how’. How to turn the ambition of the European Green Deal into real action and real results? This paper argues that to achieve the goals of the European Green Deal and leverage impact beyond EU borders as well, there are five fundamental strands of action for the EU and its member states: Leadership that communicates the urgency for action. Europe needs leaders - be it politicians, policymakers, media, heads of military or other opinion influencers - that communicate clearly the direction of travel and remind the public of the benefits of action as well as the costs of inaction for the economy, society and people. Aligning member state action with the agreed goals requires political will, ownership of the needed measures and recognising that urgent action is in every nation’s interest. This calls for using every tool in the kit, including EU policies, investments and collective action, to get on the right track. It requires addressing existing incoherencies in the policy and investment framework as well as better enforcement of existing rules. Bringing business along: The EU needs to help create the right framework conditions for European businesses – big and small - to succeed in the transition and to become a leader in those solutions that are increasingly demanded in- and outside of the EU. Bringing people along: Reaching the agreed goals requires communicating and showing the benefits that the measures will bring to people; managing the social impact on the most vulnerable in particular; and providing people with the right tools to engage in the transition. Global action: The EU should lead by example but also collaborate with other major players in addressing the climate and the wider sustainability crises. When the EU speaks and acts as one, it can be more powerful and impactful globally than the sum of its parts.
Topic:
Climate Change, European Union, Leadership, Economy, Sustainability, and Green Deal
Political Geography:
Europe

10676. Rethinking EU economic governance: The Stability and Growth Pact

Author:
Francesco De Angelis and Frederico Mollet
Publication Date:
11-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
It is time to reimagine the EU’s economic governance. In early 2021, the EPC set out to do just that in its Rethinking EU Economic Governance Task Force. Drawing on insights from participating experts, academics and policymakers, this first Policy Brief in a series of EPC publications outlines how the debate on the Stability and Growth Pact (SGP), the EU’s framework for fiscal and macroeconomic surveillance, has evolved and the reform options that have surfaced. There is broad dissatisfaction with the SGP and how it has fared in an environment of prolonged low-interest rates, missed inflation targets and low growth. In February 2020, the European Commission launched a review of the SGP in an attempt to address its shortcomings, but it was quickly put on hold by COVID-19, when the fiscal rules were suspended. Half a year later, the Commission is finishing what it started. We are in a drastically different world since the European Commission launched the review. Not only has government debt increased significantly, but regional, economic and social divides have worsened, policymakers face inflationary pressures for the first time in decades, and the Recovery and Resilience Facility and accompanying EU-level bond issuance fundamentally changed the EU’s economic architecture. In parallel, there is a widespread acknowledgement that averting, as well as adapting to, the climate crisis requires a steep increase in public investment. Thanks to the EPC Task Force’s ongoing work, Francesco De Angelis and Frederico Mollet can pinpoint the SGP’s major flaws, post-COVID-19 challenges, and five broad categories of reform options: Interpretative flexibility to smooth fiscal adjustment paths and potentially place less emphasis on problematic indicators. Moderate non-treaty reforms to reduce complexity and procyclicality and increase enforceability. The ‘golden rule’ to exempt some public investments from the fiscal rules. Central fiscal capacity for macroeconomic stabilisation. Off-balance-sheet investments to increase public investment.
Topic:
Political Economy, Governance, European Union, Economic Growth, COVID-19, Economic Stability, and European Commission
Political Geography:
Europe

10677. Will the EU’s positive agenda on Turkey amount to anything more than wishful thinking?

Author:
Amanda Paul
Publication Date:
11-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
One year on, it remains to be seen whether the EU’s positive agenda (PA), an effort to establish a new modus vivendi with Turkey, will bear fruit. Turkey is one of the EU’s most important neighbours and a crucial partner on numerous issues, including migration, counterterrorism, energy and trade. Yet relations have always been challenging, with honeymoon periods few and far between. Bickering and animosity have become the norm. In 2020, escalating disputes in areas from human rights to maritime claims and military interventions brought the relations to a major crisis. Looking ahead, Ankara’s domestic and foreign policy ahead of crucial elections in 2023 (or earlier), the Cyprus problem, Germany’s leadership change, the 2022 French presidential election and Paris taking over the EU Council Presidency will all impact relations. Amanda Paul gives a concise state of play of EU-Turkey relations, what we can expect and what should be avoided, and areas for improvement. While Turkish membership of the EU seems highly unlikely, neither Ankara nor the EU is ready to call it quits. With no functioning accession process, EU–Turkey relations need a new framework that reduces the chances of further rupture and creates a new dynamic. Implementing the PA should be the starting point of this framework. In which case, the EU should consider the following four recommendations: green-light the talks to update the Customs Union; enhance migration dialogue; continue support for Turkish civil society and independent journalism; and revitalise foreign policy dialogue. 2022 will likely be a testing year. If the two parties are to move away from years of distrust and muddling through, they will have to exhibit political will and acquire a truly strategic vision for the future.
Topic:
International Relations, Foreign Policy, Civil Society, Migration, European Union, and Dialogue
Political Geography:
Europe, Turkey, and Mediterranean

10678. Rethinking EU economic governance: The European Semester

Author:
Frederico Mollet
Publication Date:
12-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
In the debates over the future of the EU’s economic governance, the reform of the Stability and Growth Pact (SGP) usually takes centre stage. But the European Semester – the framework governing economic policy coordination and country surveillance – is also critical. Reforming and strengthening it is vital given the multiple challenges the EU faces, from the twin green and digital transitions to implementing the Recovery and Resilience Facility (RRF) and tackling the macroeconomic and structural scars left by COVID-19. This Policy Brief, the second in a series of EPC papers that reassess the EU's economic governance policies, sets out proposals for reforming the European Semester across three strands: (i) integrating the RRF into the Semester; (ii) drawing on the positive lessons of the RRF process; and (iii) improving the effectiveness of cross-cutting policy coordination and the Macroeconomic Imbalances Procedure (MIP).
Topic:
Governance, European Union, Economy, COVID-19, and Economic Recovery
Political Geography:
Europe

10679. Myanmar’s Military Struggles to Control the Virtual Battlefield

Author:
International Crisis Group
Publication Date:
05-2021
Content Type:
Special Report
Institution:
International Crisis Group
Abstract:
In order to silence opposition to the February coup, Myanmar’s military is vigorously policing the internet as it quashes street protests. Outside powers and technology companies should endeavour to keep the online space free of interference and deny the junta tools of virtual repression.
Topic:
Authoritarianism, Democracy, Protests, Coup, Military Government, and Oppression
Political Geography:
Asia, Burma, and Myanmar

10680. The Risks of a Rigged Election in Nicaragua

Author:
International Crisis Group
Publication Date:
05-2021
Content Type:
Special Report
Institution:
International Crisis Group
Abstract:
With Nicaraguans heading to the polls in November, the government is already trying to engineer the outcome in its favour. An unfair ballot could spark unrest and a violent crackdown. External actors should push for reforms and dialogue with the opposition while eschewing counterproductive sanctions.
Topic:
Corruption, Elections, Voting, Oppression, Election Interference, and Rigged Elections
Political Geography:
Latin America, Central America, Nicaragua, and North America