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Begin New Search Topic Economics Political Geography Europe Content Type Policy Brief

41. The Return of Economic Nationalism in Germany

Author:
Jeromin Zettelmeyer
Publication Date:
03-2019
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
ermany’s new National Industrial Strategy 2030, unveiled by Economy Minister Peter Altmaier in February 2019, advocates an aggressive industrial policy. Although it stays clear of the virulent economic nationalism of the 1930s and the protectionism of President Donald Trump, its tone and much of its content are unmistakably nationalist. Zettelmeyer concludes that three of Altmaier’s five proposals—attempting to further raise the German share of manufacturing, restricting non-EU imports of intermediate goods, and promoting national champions in Germany and the European Union—are bad policies. The two remaining ideas—preventing some foreign takeovers and ramping up state support for certain technologies—are somewhat easier to justify, based on either market failures or the risk of technological dependence on foreign companies susceptible to political interference. But even in these areas, the specific policies proposed may well do more harm than good.
Topic:
Economics, Nationalism, European Union, and Donald Trump
Political Geography:
Europe and Germany

42. Global Energy in Transition: How the EU Should Navigate New Realities and Risks

Author:
Andreas Goldthau
Publication Date:
11-2019
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
Global energy demand is shifting to Southeast Asia. This new trade flow is altering market power because it not only follows natural economic development, but also results from strategic trade and investment policies that promote national interests. In this context, the EU needs to account for the geo-economic side effects of the new European Green Deal.
Topic:
Climate Change, Economics, Energy Policy, European Union, Risk, and Trade
Political Geography:
Europe, Asia, and Southeast Asia

43. China’s Export Success: Due to Unfair Practices or Fair Competition?

Author:
Rolf Langhammer
Publication Date:
10-2019
Content Type:
Policy Brief
Institution:
Norwegian Institute of International Affairs
Abstract:
Compared with previous ratings, China’s trade policy today is more positively acknowledged. Yet, China can still be criticised in particular because of its non-transparent subsidy policy, the privileged role of state-owned enterprises, the heavy hand of the state in general, the sluggish enforcement of intellectual property rights, and the prevalence of non-tariff barriers. Yet, it cannot be ignored that Chinese entrepreneurship mentality is highly developed outside state interference in world markets. Especially, in the digital economy, high motivation and a large pool of human skills act as drivers of innovations, so far mainly process innovations. The trade war with the US hurts China and is responded by China with asymmetrical retaliation. The more Chinese exports to the US in total are affected, the more costs will have to be borne by US consumers as options to shift to alternative suppliers become weaker. What President Trump would see as a “good” deal for the US is unclear. It can be thus presumed that the trade war will continue into 2020 and that it is in fact a tech war. The EU is affected as EU companies produce in China for the US market and in the US for the Chinese market. While it might gain from trade diversion effects in the short run, the negative effects on investment due to uncertainty weigh more heavily. The EU is tempted to negotiate a free trade agreement with China but rightly refuses to start negotiations before China is prepared to conclude an agreement on investment. The EU should not see China and the US on equidistance. Workable relations with the US are much more important. To conclude, China’s trade policy has improved relative to Western standards but still warrants further steps towards much less state influence. Yet, its global competiveness especially in the state-of-the-art digital economy is high and is owed to a strong entrepreneurial mentality.
Topic:
Economics, European Union, Asia, Exports, Trade, and Strategic Competition
Political Geography:
China, Europe, Asia, and United States of America

44. The State of the National System of Innovation in Swaziland

Author:
Eswatini Economic Policy Analysis and Research Centre
Publication Date:
03-2018
Content Type:
Policy Brief
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
Swaziland, in the National Development Strategy (NDS), aspires to achieve development through investments in science, technology, and innovation (STI). However, using innovation to uplift the country from poverty and tackle economic growth requires investment in research and experimental development (R&D), human capital development, and the establishment of relevant institutions and governing bodies to direct scientific and technological development which are currently missing. Due to low investments in innovation and R&D, the lack of funding sources, absence of a national STI strategy and R&D agenda, and low collaboration between institutions, the country is struggling to propel STI-driven development. As a result, Swaziland is largely a consumption-based economy, with high imports and low exports, and the domestic industry is underdeveloped. The implication is that as economies grow and become more competitive, Swaziland will continue to remain behind. Hence, to use STI to drive social and economic development the country needs to affirm this concession by developing a national STI strategy. Establishing a Ministry of Science, Technology, and Innovation would enhance the coordination of STI activities and manage the funding and implementation of STI policies.
Topic:
Development, Economics, Science and Technology, and Innovation
Political Geography:
Europe and Switzerland

45. Making the best of Brexit for the EU27 financial system

Author:
Andre Sapir, Dirk Schoenmaker, and Nicolas Veron
Publication Date:
02-2017
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The United Kingdom’s exit from the European Union creates an opportunity for the remaining EU27 to accelerate the development of its financial markets and to increase its resilience against shocks. Equally, Brexit involves risks for market integrity and stability, because the EU including the UK has been crucially dependent on the Bank of England and the UK Financial Conduct Authority for oversight of its wholesale markets. Without the UK, the EU27 must swiftly upgrade its capacity to ensure market integrity and financial stability. Furthermore, losing even partial access to the efficient London financial centre could entail a loss of efficiency for the EU27 economy, especially if financial developments inside the EU27 remain limited and uneven.
Topic:
Economics, International Political Economy, International Trade and Finance, Political stability, and Brexit
Political Geography:
Britain and Europe

46. Why is it so hard to reach the EU’s ‘poverty’ target?

Author:
Zsolt Darvus
Publication Date:
01-2017
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The ‘poverty’ target set by the European Commission aims to lift “over 20 million people out of poverty” between 2008 and 2020 in the EU27. Progress to date against this target has been disappointing. Why is it so hard to reach the Europe 2020 ‘poverty’ target? What does the poverty indicator actually measure?
Topic:
Economics, International Political Economy, International Trade and Finance, and Poverty
Political Geography:
Europe

47. The Economic Impact of Gatwick Airport

Author:
Pete Collings and Osman Ismail
Publication Date:
01-2017
Content Type:
Policy Brief
Institution:
Oxford Economics
Abstract:
Oxford Economics were appointed by the Gatwick Growth Board (GGB) to provide an independent assessment of Gatwick Airport's local, regional and national impact. The GGB was established in 2016 to examine the economic and social consequences of Gatwick Airport’s future plans for growth and expansion. The resulting study represents the most detailed assessment to date of Gatwick's economic footprint, and will provide evidence for the GGB's strategic work over the coming year. It finds that Gatwick Airport’s operations and services deliver very significant economic benefits for the UK, with its national GDP contribution reaching £5.3 billion in 2016, equivalent to 0.3% of the UK's total. Some 43 million passenger journeys passed through Gatwick during that year, underlining its position as a key component of national infrastructure. In addition, the report measures the Airport's wider impact, beyond its direct transport benefits to passengers and airlines. At the centre of a complex network of supply chains, Gatwick Airport enables activity throughout the Gatwick Diamond area, and beyond. The salaries sustained by employment at the Gatwick site also provide an invaluable contribution to the local consumer economy. The study also explores the potential for the Airport to deliver an even greater economic contribution in future.
Topic:
Economics, Tourism, Transportation, and Airline Companies
Political Geography:
United Kingdom and Europe

48. European insurance union and how to get there

Author:
Dirk Schoenmaker
Publication Date:
12-2016
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
What are the arguments for and against centralisation of insurance supervision? What would be the scope of a possible insurance union, and what would the legal basis be? How rapid should the move to insurance union be? This Policy Brief sets out to answer these questions.
Topic:
Economics and International Trade and Finance
Political Geography:
Europe

49. EU Pressure Insufficient to Gain U.S. Visa Waiver for Poles

Author:
Marek Wasinski
Publication Date:
04-2016
Content Type:
Policy Brief
Institution:
The Polish Institute of International Affairs
Abstract:
In a communication of 12 April, the European Commission assessed the potential political and economic consequences of suspending visa exemption for U.S. citizens. Lacking pressure from individual EU Member States, the Commission discouraged such a move and gave the EU Council and European Parliament three months to take an official position. It seems almost certain that the measure of applying pressure on a non-EU country will not be used to help Poland and four other Member States obtain visa-free travel to the United States or other countries with a similar restriction. However, if current trends continue, Poland should join the U.S. Visa Waiver Programme in five years.
Topic:
Economics, Politics, European Union, and Citizenship
Political Geography:
United States and Europe

50. How ASEAN’s Transformation Can Play Out Well for Europe

Author:
Damian Wnukowski
Publication Date:
02-2016
Content Type:
Policy Brief
Institution:
The Polish Institute of International Affairs
Abstract:
The transformation of ASEAN into an economic community is a significant step in the organisation’s integration process. The project, formally launched at the beginning of 2016, aims at creation of a single market of more than 620 million people, loosens the flow of goods, services and investment, which should underpin regional economic growth and catch the attention of foreign businesses. However, obstacles to economic cooperation remain, such as limitations on the movement of labour or capital, which shows that the integration process is not yet complete. The EU, which can benefit from a well-functioning market in this region, should share its own experience to support the ASEAN integration process.
Topic:
Economics, International Trade and Finance, Markets, Politics, and Labor Issues
Political Geography:
Europe

51. Ukraine: A Migration Corridor with Half-Closed Doors

Author:
Piotr Kościński
Publication Date:
01-2016
Content Type:
Policy Brief
Institution:
The Polish Institute of International Affairs
Abstract:
At a time when many European countries are strengthening border protection (including building walls), migrants will seek new avenues to Europe. In this context and of particular importance will be the policy of the authorities of Ukraine, which currently, and despite the still unstable situation in the country (war in the east and economic problems) could become the country of choice for migrants. Another problem for Kyiv may be internal migration. Both forms increase the risk of migration to EU countries such as Poland, Hungary, Slovakia and Romania, which are neighbours of Ukraine. In this situation, additional EU assistance to the authorities in Kyiv will be necessary.
Topic:
Economics, Migration, Politics, and Governance
Political Geography:
Europe and Ukraine

52. The Russian Reality Check on Turkey's Gas Hub Hopes

Author:
Morena Skalamera
Publication Date:
01-2016
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
On Nov 24, 2015, Turkey shot down a Russian fighter jet after it veered into its airspace for 17 seconds. On December 13, a Russian ship fired warning shots at a Turkish vessel in the Aegean Sea. Bilateral tensions, with overt military dimensions, have seemed to quickly replace the goodwill that characterized relations only a year ago. Over the past few weeks, experts and observers have debated whether this incident will jeopardize deep Turkish-Russian energy cooperation—and whether newfound tensions between Moscow and Ankara will thwart Turkey’s ambition to transform itself into an energy hub. A closer look suggests grounds for both optimism and pessimism. Given the deep interests of both parties in continuing energy cooperation, and the mutual nature of the dependency, tensions over Syria are unlikely to adversely impact energy cooperation in a fundamental way. Turkey, however, is unlikely to realize its vision of an energy hub—not because of Russia, but because of a combination of domestic and other geopolitical factors.
Topic:
International Relations, Security, Economics, Energy Policy, Oil, Geopolitics, Gas, and Trade
Political Geography:
Russia, Europe, and Turkey

53. Russia's Economy under Putin: From Crony Capitalism to State Capitalism

Author:
Simeon Djankov
Publication Date:
09-2015
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
In the 15 years of President Vladimir Putin's rule, state control over economic activity in Russia has increased and is greater today than in the immediate postcommunist era. The concentration of political and economic power in Putin's hands has led to an increasingly assertive foreign policy, using energy as a diplomatic tool, while plentiful revenues from extractive industries have obfuscated the need for structural reforms at home. The West's 2014 sanctions on Russia have brought about economic stagnation, and with few visible means of growth, the economy is likely to continue to struggle. Watching Europe struggle with its own growth, in part because of deficiencies in its economic model, Russia will not be convinced to divert from state capitalism without evidence of a different, successful economic model. Changing course can only be pursued in the presence of political competition; the current political landscape does not allow for such competition to flourish
Topic:
Economics and Politics
Political Geography:
Russia and Europe

54. Toward a European Migration and Mobility Union

Author:
Jacob Funk Kirkegaard
Publication Date:
12-2015
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
After surviving its worst economic downturn since the Great Depression and the near collapse of its common currency, Europe is now engulfed by hundreds of thousands of desperate migrants and refugees from the Middle East and Africa. It needs new and permanent migration institutions and resources not only to accommodate the influx of refugees but also to set up a new border control system throughout the region. These demands pose a challenge for European policymaking as serious as the euro crisis of the last five years. Kirkegaard proposes a migration and mobility union, to be implemented gradually, with the goal of comprehensively reforming European migration policy.
Topic:
Economics, Migration, Politics, and Refugee Issues
Political Geography:
Europe

55. Stability Bonds for the Euro Area

Author:
Angel Ubide
Publication Date:
12-2015
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
The rules and buffers created in the last few years to enable the euro area to withstand another sudden stop of credit and market-driven panic in one or more of its member states are welcome steps, but they are widely recognized as inadequate. Ubide proposes creating a system of stability bonds in the euro area, to be issued by a new European Debt Agency, to partially finance the debt of euro area countries—up to 25 percent of GDP. These stability bonds should be initially backed by tax revenues transferred from national treasuries, but ultimately by the creation of euro area–wide tax revenues, and used to fund the operations of national governments. They could also be used for euro area–wide fiscal stimulus, to complement the fiscal policies of member states. Such bonds would strengthen the euro area economic infrastructure, creating incentives for countries to reduce their deficits but not forcing them to do so when such actions would drive their economies further into a downturn. The bonds would permit the euro area to adopt a more flexible or expansionary fiscal policy during recessions.
Topic:
Economics, International Trade and Finance, Monetary Policy, and GDP
Political Geography:
Europe

56. In Search of a New Balance between Agricultural Trade and Development in the Euro-Mediterranean

Author:
Marko Lovec
Publication Date:
11-2015
Content Type:
Policy Brief
Institution:
IEMed/EuroMeSCo
Abstract:
The recent food security crisis has shed light on the importance of agricultural development in the South Mediterranean countries. An ‘urban bias’ and ‘trade liberalisation’ policies have resulted in growing dependence on imports, narrow specialisations and unsustainable production practices. The Euro-Mediterranean integration process has put trade liberalisation in the centre of attention, while the progress in agriculture has been limited. The purpose of this paper is to analyse the challenges faced by agro-food systems in Southern and Eastern Mediterranean Countries, with specific attention to the role of the Euro-Mediterranean integration and the reform of the Common Agricultural Policy. The paper also reviews relevant economic and environmental data in selected South and East Mediterranean countries.
Topic:
Security, Agriculture, Development, Economics, International Trade and Finance, and Food
Political Geography:
Europe

57. EU-India Strategic Partnership Needs a Reality Check

Author:
Patryk Kuglel
Publication Date:
10-2015
Content Type:
Policy Brief
Institution:
The Polish Institute of International Affairs
Abstract:
The EU-India Strategic Partnership launched in 2004 has made only modest achievements and needs a thorough rethink. Both sides must reset cooperation and base it on a more realistic footing centred on common interests, such as economic cooperation, global governance, development cooperation, and defence. The resumption of free trade negotiations, the organisation of a long overdue bilateral summit, and more frank dialogue on contentious issues is necessary in order to utilise the partnership’s potential. Poland may use this strategic drift to revitalise bilateral cooperation and play a more active role in reviving EU-India dialogue.
Topic:
Economics, International Trade and Finance, Politics, Bilateral Relations, and Governance
Political Geography:
Europe and India

58. Germany and the Future of the Eurozone

Author:
Sebastian Plóciennik
Publication Date:
01-2014
Content Type:
Policy Brief
Institution:
The Polish Institute of International Affairs
Abstract:
Although the euro has survived the most severe phase of the current crisis, its future is still uncertain. The fate of the common currency will depend not only on the condition of the European economy, but also the priorities of its biggest player—Germany. So far that country has been strong enough to enforce its own vision of integration based on neoliberal reforms and austerity measures. Since the side effects of this prescription have been rising costs and risks, Berlin's new government will consider a range of different solutions, including in extremis a controlled and partial break-up of the Eurozone. For Poland, this volatility creates a challenging environment with risks, but also creates chances for Warsaw to increase its influence over the evolution of EU integration in this field.
Topic:
Debt, Economics, Monetary Policy, Financial Crisis, and Reform
Political Geography:
Europe and Germany

59. EU-Russia: overcoming stagnation

Author:
Nicu Popescu
Publication Date:
01-2014
Content Type:
Policy Brief
Institution:
European Union Institute for Security Studies
Abstract:
For the best part of the last two decades, EU-Russia summits have alternated between being upbeat events where new grand integration initiatives were launched – the creation of four common spaces in 2005, the partnership for modernisation in 2010 – and rather unfriendly encounters where success was seemingly measured on how impolite the partners could be to one another.
Topic:
Economics, Energy Policy, International Trade and Finance, and Bilateral Relations
Political Geography:
Russia, Europe, and Asia

60. Is the European Central Bank Failing Its Price Stability Mandate?

Author:
Ángel Ubide
Publication Date:
02-2014
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
Inflation in the euro area is too low, just 0.9 percent year-on-year in December 2013, and inflation expectations, measured from inflation derivative contracts, have shifted lower, indicating that markets expect some small probability of deflation in 2014 and average inflation over the next five years in the 1.25 to 1.5 percent range. The European Central Bank (ECB), however, seems to be content with this outlook. Its current projections show a very slow economic recovery and inflation at just 1.3 percent in two years' time. Yet the ECB describes the risks to inflation as balanced. This puzzling assessment might be due to the fact that the ECB's definition of price stability is less precise than that employed by other central banks, and some ECB members may interpret the definition as setting a ceiling, rather than a target, for inflation at close to but below 2 percent. But if one considers the ECB's self-assessment of success since its creation—achieving 2 percent inflation on average—its current inflation forecast of 1.3 percent would fall short of achieving its price stability mandate.
Topic:
Economics, International Trade and Finance, Markets, and Monetary Policy
Political Geography:
Europe