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Begin New Search Political Geography Europe Content Type Policy Brief

1271. The WTO Under Pressure: Tackling the deadlock in multilateral trade

Author:
Marikki Stocchetti and Johanna Jacobsson
Publication Date:
11-2013
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Multilateral trade liberalisation is in crisis. The WTO's ambitiously named Doha Development Round has been ongoing for more than a decade. Only a few limited issues remain on the negotiation agenda. While the round is being increasingly declared dead even by WTO members themselves, the same countries are concluding deeper trade agreements than ever before. Such progress, however, takes place at the bilateral and regional level. Another major development is the appearance of deep regulatory issues on the trade agenda. The shift from customs tariffs to countries' internal policies requires a certain like-mindedness from negotiation partners and poses challenges for national decision-making policies. Developing countries have gained less from multilateral trade liberalisation than what they had hoped for. The shift towards more fragmented trade regimes makes them even more prone to remain bystanders in global trade. At the WTO's next ministerial conference in Bali, progress on agriculture, trade facilitation and the treatment of the poorest countries would give a much-needed signal that the WTO can still benefit all of its members.
Topic:
Economics, International Cooperation, International Organization, International Trade and Finance, Treaties and Agreements, and World Trade Organization
Political Geography:
Europe

1272. The Asset Quality Review and Capital Needs: Why re-capitalise banks with public money?

Author:
Daniel Gros
Publication Date:
12-2013
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
There are three aggregate numbers that describe the problem the Single Supervisory Mechanism (SSM) is inheriting: the 130 banks under its direct supervision hold assets worth 250% of the euro area's GDP, their capital is equivalent to only 4% of their assets' value and they have made zero profits, in the aggregate, over the last four years.
Topic:
Debt, Economics, Markets, Financial Crisis, and Reform
Political Geography:
Europe

1273. Net Neutrality and Mandatory Network-Sharing: How to disconnect the continent

Author:
Andrea Renda
Publication Date:
12-2013
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
A lively debate emerged on the proposed "Connected Continent" legislative package presented by the European Commission in September 2013. The package contains a proposed rule on the 'open Internet', which was heavily discussed in European Parliament hearings in early December. This commentary argues that while the proposed rule is in principle balanced and appealing, it is utterly impractical due to the enormous uncertainty that its application would entail. At the same time, the rule is very far from what neutrality proponents have argued for almost a decade: rather than the place for internet freedom, it would transform the Web into a place requiring constant micro-management and tutoring of user behavior. Both arguments lead to the conclusion that the current proposal should be at once reformed and analysed under a more holistic lens. On the one hand, Europe should launch an ambitious project for the future, converged infrastructure by mobilising resources and reforming rules to encourage investment into ubiquitous, converged, 'always on' connectivity. On the other hand, enhanced legal certainty for broadband investment could justify a more neutrality-oriented approach to traffic management practices on the Internet. The author proposes a new approach to Internet regulation which, altogether, will lead to a more balanced and sustainable model for the future, without jeopardising user freedom.
Topic:
Debt, Economics, Monetary Policy, Infrastructure, and Financial Crisis
Political Geography:
Europe

1274. The Governance Gap in European Security and Defence

Author:
Giovanni Faleg
Publication Date:
12-2013
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Let us take three assumptions: The demand for security provision continues to increase in Europe's fragile neighbourhood (notably following the 'Arab Spring'); Austerity restrictions have hit national defence budgets heavily; The balance of power is shifting 'from the West to the rest' and the Americans are pivoting eastwards. Under these circumstances, it is no surprise that the EU is struggling to establish itself as a credible and effective security actor. The final report of High Representative Catherine Ashton, released in preparation for the December 2013 European Council on Security and Defence, admits that Europe "faces rising security challenges within a changing strategic context while the financial crisis is increasingly affecting its security and defence capability". But these are not the true causes of CSDP inertia.
Topic:
Defense Policy and Regional Cooperation
Political Geography:
Europe

1275. Policy Lessons for Macroeconomic and Financial Crisis Management in the Southern and Eastern Mediterranean

Author:
Rym Ayadi and Willem Pieter De Groen
Publication Date:
12-2013
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
The 2007-09 global financial crisis led to a virtual collapse in economic activity and increased financial volatility worldwide. For the developing countries, the main channel of transmission has been a drop in external transactions, such as trade, financial and capital flows, and remittances. The southern and eastern Mediterranean countries (SEMC) have also faced declining economic activity, although there seems to be considerable variation in the relative magnitudes and timing of the decline. Most of the economies in the Mediterranean basin have had delayed but longer-lasting consequences as a result of the crisis, driven mostly by their endemic trade and investment ties with the EU and the Gulf Cooperation Council (GCC) countries.
Topic:
Debt, Economics, Markets, Monetary Policy, and Financial Crisis
Political Geography:
Europe

1276. REACH: A killer whale for SMEs?

Author:
Jacques Pelkmans, Ineke Gubbels-van Hal, and Lorna Schrefler
Publication Date:
12-2013
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Right from the start of the REACH debate, following the Commission proposal of October 2003, one of the more serious concerns was whether and how SMEs could cope with REACH. Indeed, there were doubts whether one of the main objectives of REACH – competitiveness of chemical and downstream companies – is consistent with the design and detailed implementation of REACH. Already in 2005, the European Parliament adopted a resolution on this aspect, insisting e.g. on lower fees for SMEs as one remedy to reduce the expected regulatory burden for smaller companies. The fear of REACH being unduly heavy and costly for SMEs has never gone away (see e.g. Gubbels Pelkmans, 2009) but merely receded in the background when the Commission and the European Chemical Agency (ECHA) were in the process of building and elaborating the REACH machinery in operational terms. This year, the problem is rearing its head again in a magnified fashion and it will not go away so easily this time.
Topic:
Economics, International Trade and Finance, Markets, and Monetary Policy
Political Geography:
Europe

1277. Unblocking the Lifeline of Talent

Author:
Matthias Busse and Christal Morehouse
Publication Date:
12-2013
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Against the background of demographic decline and growing economic competitiveness from emerging economies, this Policy Brief looks into the potential benefits of increased intra-EU labour mobility. On the basis of an examination of the 'German case' on EU labour mobility. It proposes ideas on how to better foster a European fair deal on talent, one that would benefit the EU as a whole. It concludes with a proposal on how to increase the potential benefits of the freedom of movement.
Topic:
Demographics, Economics, Migration, and Labor Issues
Political Geography:
Europe

1278. Strong Governments, Weak Banks

Author:
Paul De Grauwe and Yuemei Ji
Publication Date:
11-2013
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
One of the more troublesome features of banks is that they still hold so little equity. In 2013 the capital and reserves of EU banks amounted to only 7.6% of total balance sheets. Well-run businesses outside the banking sector typically hold equity shares of 20%, 30% or more of their balances sheets. For good reasons; these well-run firms know that shocks can occur that could wipe out large parts of their balance sheets. Good business strategy thus leads these firms to hold sufficiently large buffers to avoid bankruptcy.
Topic:
Debt, Economics, and Monetary Policy
Political Geography:
Europe

1279. The New European Framework for Managing Bank Crises

Author:
Stefano Micossi, Jacopo Carmassi, and Ginevra Bruzzone
Publication Date:
11-2013
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
The European Commission proposal for a Regulation establishing a European Single Resolution Mechanism (SRM) for banks is now under consideration before the European Parliament and the Council. The main principles and tools applicable for resolving a failing bank are contained in the June 2012 Commission proposal for a Directive on bank recovery and resolution (BRR), aimed at harmonising crisis management and resolution tools in EU member states, which is also under consideration by the European legislators. Any discussion of the new system must therefore be based on both proposals.
Topic:
Debt, Economics, International Trade and Finance, Markets, Monetary Policy, and Reform
Political Geography:
Europe

1280. Rule of law or rule of thumb? A New Copenhagen Mechanism for the EU

Author:
Sergio Carrera, Elspeth Guild, and Nicholas Hernanz
Publication Date:
11-2013
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
The European Union, and its Area of Freedom, Security and Justice (AFSJ), is founded on a set of common principles of rule of law, democracy and human rights. This has been officially enshrined in the body of Article 2 of the Treaty on European Union (TEU) which lists "respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities" as the shared values on which the Union is rooted. One of the current modalities of action to ensure that all member states of the EU respect Article 2 TEU is to filter their compliance with these values before they accede to the Union. The so-called 'Copenhagen criteria' have been established in 1993 to ensure that all new EU member states are in line with the Union's common principles before crossing the bridge towards membership.
Topic:
Democratization, Human Rights, International Law, and Regional Cooperation
Political Geography:
Europe