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  • Author: Jacques Pelkmans
  • Publication Date: 07-2010
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: In the EU of today, economic policies, competition policy and regulation are expected to be 'evidence-based'. The purpose of the present paper is to discuss critically the most prominent empirical approach to the measurement of regulation: the OECD product market regulation (PMR) indicators. The paper sets out what exactly product market reforms are and the empirical regulatory indicators that have been developed by the OECD, the World Bank and others.
  • Topic: Markets, Financial Crisis
  • Political Geography: Europe
  • Author: Juliet Lodge
  • Publication Date: 07-2010
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: It is no longer sensible to regard biometrics as having neutral socio-economic, legal and political impacts. Newer generation biometrics are fluid and include behavioural and emotional data that can be combined with other data. Therefore, a range of issues needs to be reviewed in light of the increasing privatisation of 'security' that escapes effective, democratic parliamentary and regulatory control and oversight at national, international and EU levels, argues Juliet Lodge, Professor and co-Director of the Jean Monnet European Centre of Excellence at the University of Leeds, UK.
  • Topic: Security, Democratization, Regional Cooperation
  • Political Geography: Europe
  • Author: Sergio Carrera
  • Publication Date: 06-2010
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: What should be the future institutional configurations of the second generation of the EU's Integrated Border Management strategy for the common external borders? The Stockholm Programme endorsed by the European Council on December 2009 and the European Commission's action plan implementing it published in April 2010 have brought back to the EU policy agenda the feasibility of setting up a European system of border guards as a long-term policy vision. This Working Document examines the origins of this proposal and aims at thinking ahead by asserting that any future discussion and study in this context should be refocused by initially addressing two central questions: First, what kind of 'border guard' and what kinds of 'border controls' does the EU need in light of the current EU acquis on external border crossings and the Schengen Borders Code? Second, what would be the 'added value' of any new institutional arrangement at the current stage of European integration?
  • Topic: International Law, Regional Cooperation
  • Political Geography: Europe
  • Author: Vasilis Margaras
  • Publication Date: 06-2010
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: With the establishment of the Common Security and Defence Policy (CSDP) in 1999, the EU aimed to tackle challenges in the field of security by deploying various police and military missions in troubled crisis areas. The consolidation of the CSDP raised hopes for the EU's role in external affairs. However, the majority of CSDP missions are still on a small scale. Strategic disagreements among EU partners persist on issues of UN legality, NATO-neutrality and the geographic deployment of missions. This lack of consensus is due to a lack of common ideas, values and practices regarding the use of police and military force in Europe. In short: there is no common strategic culture.
  • Topic: Security, Defense Policy
  • Political Geography: Europe
  • Author: Christine Erhel, Mathilde Guergoat-Larivière
  • Publication Date: 06-2010
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: Job quality is a multidimensional concept that can be defined using four main dimensions and measured through indicators such as the so-called 'Laeken' indicators. The empirical analysis of job quality in Europe leads to three main types of result. First, it reveals important differences across countries, with four main regimes prevalent in Europe. Second, it supports the hypothesis that a higher level of job quality is associated with better labour market and economic performance. Finally, it emphasises the heterogeneity of quality across social groups, especially according to gender, age, and education.
  • Topic: Social Stratification, Labor Issues
  • Political Geography: Europe
  • Author: Ilaria Maselli
  • Publication Date: 05-2010
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: 'Flexicurity' might be defined as a mix of flexible contractual arrangements, income support measures, active labour market policies and lifelong learning. The successful shift in approach of the Danish and Dutch labour markets from passive to active labour market policies, and to flexicurity, has attracted considerable attention among academics and policy-makers. The objective of this Working Document is to contribute to the debate with the creation of a composite indicator to measure flexicurity, based on the definition provided in the European Commission's Communication on Flexicurity (COM(2007)359). Our indicator confirms that preferences in the balance of flexibility and security are highly heterogeneous among countries; a finding that supports the 'pathway' approach as proposed by the European Commission. A second important conclusion is that the idea of flexibility being in favour of employers and security being in favour of employees needs to be overcome. Flexicurity is 'both for both', although it does not apply uniformly to all age groups but is two and three times greater for older and younger workers respectively.
  • Topic: Economics, International Trade and Finance, Labor Issues
  • Political Geography: Europe
  • Author: Rouba Al-Fattal
  • Publication Date: 05-2010
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: Fifteen years after its launch, the impact of the Barcelona Process on the Palestinian Territories is in need of a reassessment. Despite some initial improvements in the political and economic structures, the Euro-Mediterranean Partnership alone has failed to anchor a peace deal between Israel and the Palestinians. In response, the European Neighbourhood Policy was launched to bring out a number of new foreign policy instruments, which induced substantial reforms. Yet the win by Hamas in the 2006 elections brought a halt to the EU's aid and diplomacy. This boycott proved detrimental, as it widened the rift between the main parties to the point of no reconciliation. Whether the Union for the Mediterranean proves any better than its predecessor policies in the region remains to be seen. This publication aims at providing a broad picture of the EU's policies towards the Palestinian Territories, in order to draw lessons from them and offer proposals for the way ahead.
  • Topic: Conflict Resolution, Foreign Policy
  • Political Geography: Europe, Middle East, Arabia
  • Author: Antoinette Primatarova
  • Publication Date: 04-2010
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: This paper argues against the view that Bulgaria's EU accession was premature and that the mechanism for cooperation and the verification of progress (CVM) is not delivering. The EU's continued leverage and the efficacy of the CVM are explained in a framework that goes beyond the dual-conditionality paradigm of incentives and sanctions, and beyond the unitary players model of EU–Bulgarian relations. In this framework, the CVM is viewed as an instrument for supportive reinforcement rather than for the imposition of sanctions. Furthermore, it is seen as targeting not just the government, but all Bulgarian stakeholders. The CVM is regarded as very effective at the level of public opinion and civil society, and as a mechanism that contributes to 'sandwiching' reform-reluctant Bulgarian governments between pressure from Brussels and domestic pressure for reforms. The CVM is also deemed useful for Bulgaria's further Europeanisation beyond the narrower pre-accession phase of 'EU-isation'. The paper suggests that eventual post-accession benchmarks might be appropriate in the process of further EU enlargement if properly understood as instruments for granting support and if discussed broadly with stakeholders beyond the executive. Concerning the efficiency/legitimacy dilemma, it is asserted that the CVM is an opportunity for increasing the EU's legitimacy.
  • Topic: Regional Cooperation
  • Political Geography: Europe, Bulgaria
  • Author: Felix Roth, Anna-Elisabeth Thum
  • Publication Date: 10-2010
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: The EU 2020 Agenda has taken an important step forward by setting the target for tertiary graduation rates at an ambitious 40%. This paper finds that many European countries, however, including the largest economy – Germany – will not be able to meet this target. Moreover, the crucial topic of educational quality is not even touched upon. Comparing the EU with China in total numbers, the authors find that China's education system already produces the same number of graduates with tertiary education as the whole EU15. Given the large output of graduates, which is the key to productive spending on R, this means that China is likely to soon become a growing power in innovation. Initially the country is expected to concentrate on incremental innovation, with radical innovation to come only later and it is here, the authors warn, that the quality of the university system might represent a major obstacle in the Chinese government's efforts to close the gap with the US and the EU15 in terms of innovation potential.
  • Topic: Education
  • Political Geography: China, Europe, Germany
  • Author: Radha Kumar, Fabrice Pothier, Waliullah Rahmani
  • Publication Date: 10-2010
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: Since the Obama administration set 2011 as the date for withdrawal from Afghanistan, speculation has been rife on whether and how the deadline will be met. Although this date is actually fuzzy – it is doubtful whether 2011 will see even the beginning of an American drawdown – it has focused attention on the critical issues for stabilisation in Afghanistan that have remained unaddressed over the past nine years.
  • Topic: Security, Islam, War, Armed Struggle, Insurgency
  • Political Geography: Afghanistan, Asia
  • Author: Sergio Carrera, Joanna Parkin
  • Publication Date: 09-2010
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: While the EU has no explicit legal competence in the sphere of religion and the management of relations with faith communities, religious concerns have taken on increasing importance within the legal and institutional framework and policy discourses of the European Union in the last years. This paper provides an overview of how religion and issues of religious diversity are being framed and addressed in EU law and policy by undertaking a critical analysis of the ways in which EU law and policy deal with, engage and understand religion at the policy level of the European Commission. Through an examination of EU legislation and both formal and informal policy initiatives in the fields of citizenship and fundamental rights, non-discrimination, immigration and integration, social inclusion and education and culture, this paper demonstrates that there is a complex and highly heterogeneous patchwork of EU normative approaches delineating the relationship between religion and the EU. These competing framings, very much rooted in the institutional structures of the Commission services, have important implications for discretionary power and sovereignty of the EU member states and for the coherence of European Union policies.
  • Topic: Regional Cooperation, Law
  • Political Geography: Europe
  • Author: Roderick Kefferpütz, Félix Krawatzek
  • Publication Date: 09-2010
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: The modernisation of Russia has been a topic of vigorous debate for centuries. It has also been an intensely divisive issue among Russia's elite, and since President Dmitry Medvedev came to power, modernisation has become the leitmotif of the presidency. The global economic crisis hit Russia hard, meaning that the status quo in political, economic and social terms is no longer acceptable. However, there are a number of competing visions on modernisation within the Russian political elite and society as a whole. This Working Document aims to illustrate the diversity of and competition for the dominance of views on Russia's future. In a second step, authors Félix Krawatzek, Visiting Researcher at CEPS and Roderick Kefferpütz, Associate Research Fellow, analyse the obstacles to a successful realisation of the ambitious modernisation agenda and outline the implications for the new EU-Russia modernisation partnership.
  • Topic: Economics, Globalization
  • Political Geography: Russia, Europe
  • Author: Felix Roth
  • Publication Date: 09-2010
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: This paper analyses whether the financial crisis has affected citizens' confidence in the free market economy and whether it has triggered citizens' demand for a free market economy with stronger state regulations. Using panel data, the paper confirms that citizens' confidence levels in the free market economy have decreased in most of the largest economies and demand for a free market economy with stronger state regulation has increased on both sides of the Atlantic. After analysing the determinants for citizens' confidence in the free market economy and demand for a free market economy with stronger state regulation before and after the financial crisis, the author concludes that citizens' net confidence loss in the free market economy seems to have been driven by rising unemployment rates, and citizens' demand for stronger state regulation seems to have been driven by the real economic downturn in GDP growth.
  • Topic: Regional Cooperation, Monetary Policy, Financial Crisis, Governance
  • Political Geography: Europe
  • Author: Stefano Braghiroli
  • Publication Date: 09-2010
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: The last decades have witnessed a dramatic growth of internet-based communication. This phenomenon and its still partially unexplored potential have increasingly attracted the attention of a growing number of political entrepreneurs. This paper analyses to what extent it has characterised vertical communication between politicians and voters looking at a very particular group: the Members of the European Parliament (MEPs).
  • Topic: Politics, Regional Cooperation, Science and Technology
  • Political Geography: Europe
  • Author: Felix Roth, Anna-Elisabeth Thum
  • Publication Date: 09-2010
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: Using new international comparable data on intangible capital investment by business within a panel analysis from 1995-2005 in an EU-15 country sample, we detect a positive and significant relationship between intangible capital investment by business and labour productivity growth. This relationship is cross-sectional in nature and proves to be robust to a range of alterations. Our empirical analysis confirms previous findings that the inclusion of business intangible capital investment into the asset boundary of the national accounting framework increases the rate of change of output per worker more rapidly. In addition, intangible capital is able to explain a significant portion of the unexplained international variance in labour productivity growth and when incorporating business intangibles, capital deepening becomes an even more significant source of growth. The relationship is slightly stronger in the time period 1995-2000 and seems to be driven by the coordinated countries within the EU-15.
  • Topic: Economics, International Trade and Finance, Regional Cooperation, Monetary Policy, Financial Crisis
  • Political Geography: Europe
  • Author: Selen Sarisoy Guerin
  • Publication Date: 07-2010
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: Several policy-relevant issues regarding the EU's bilateral investment treaties (BITS) are addressed in this paper. First and foremost, we explore the question of whether EU's BITs have a significantly positive impact on outflows or not. Second, we ask the question which member states and which BIT partners have had a significant experience after the implementation of the BIT. In our sample we find that both OECD BITs and EU BITs have a statistically significant and positive impact on FDI outflows. This result is robust to the inclusion of variables such as privatisation proceeds that control for the level of economic reform, the level of trade linkages, the level of democratic freedom and a measure of risk of expropriation among other standard controls. We control for endogeneity in our estimations by using the fixed-effects estimator as our preferred estimator on a large panel dataset. We also test the strict exogeneity of our results by using a method suggested by Baier and Bergstrand (2007) and we find no feedback effect in our sample.
  • Topic: Economics, International Trade and Finance, Monetary Policy, Financial Crisis
  • Political Geography: Europe
  • Author: Daniel Gros, Felix Roth
  • Publication Date: 07-2010
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: Trust in the ECB, as measured by the standard Eurobarometer (and other) surveys has fallen to an unprecedented low – especially in the larger euro area countries. The authors find that up to the start of the recession in 2008, trust in the ECB was little affected by business cycle variables such as growth and inflation. This changed radically with the recession, with trust in the ECB becoming correlated quite closely with growth. However, even the recovery of growth in 2009 was not sufficient to restore trust in the ECB to previous levels. This finding implies that European citizens seem to have placed a heavy share of the blame on the European Central Bank for the real economic downturn caused by the financial crisis.
  • Topic: Economics, International Trade and Finance, Monetary Policy
  • Political Geography: Europe
  • Author: Jørgen Mortensen
  • Publication Date: 12-2010
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: This paper provides evidence on past growth of productivity, analysing the evolution of labour productivity, capital deepening and multi-factor productivity. Based on a literature review of recent studies, it shows that economic growth is increasingly attributable to the accumulation of intangible capital and that consequently, an increasing share of conventionally measured rise in labour productivity has, in fact, been ploughed back into the economy as intangible capital formation. In addition, it shows that on average for the developed countries examined, the growth of total factor productivity has been the main determinant of the increase in living standards over the 50 years from 1960 to 2010. It also demonstrates a striking slowdown in the growth of both productivity and living standards during this period. Looking ahead, it argues that the period 2010 to 2030 is likely to see a considerable expansion of tangible and intangible capital formation and lower growth of multi-factor productivity. The paper therefore concludes that over the next 20 years the scope for growth in living standards in the developed economies will be very limited, on average around half a percent per annum, with serious consequences for social conditions and a likely aggravation of inequalities.
  • Topic: Economics, Globalization, Human Welfare, Labor Issues
  • Political Geography: Europe
  • Author: Johannes Herold, Roman Mendelevitch, Pao-Yu Oei, Andreas Tissen
  • Publication Date: 11-2010
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: We present a mixed integer, multi-period, cost-minimising model for a carbon capture, transport and storage (CCTS) network in Europe. The model incorpor ates endogenous decisions about carbon capture, pipeline and storage investments. The capture, flow and injection quantities are based on given costs, certificate prices, storage capacities and point source emissions. The results indicate that CCTS can theoretically contribute to the decarbonisation of Europe's energy and industrial sectors. This requires a CO2 certificate price rising to €55 per tCO2 in 2050, and sufficient CO2 storage capacity available for both on- and offshore sites. Yet CCTS deployment is highest in CO2-intensive industries where emissions cannot be avoided by fuel switching or alternative production processes. In all scenarios, the importance of the industrial sector as a first-mover to induce the deployment of CCTS is highlighted. By contrast, a decrease in available storage capacity or a more moderate increase in CO2 prices will significantly reduce the role of CCTS as a CO2 mitigation technology, especially in the energy sector. Furthermore, continued public resistance to onshore CO2 storage can only be overcome by constructing expensive offshore storage. Under this restriction, reaching the same levels of CCTS penetration would require a doubling of CO2 certificate prices.
  • Topic: Climate Change, Energy Policy, Industrial Policy, Science and Technology
  • Political Geography: Europe
  • Author: Christian von Hirschhausen, Johannes Herold, Sophia Rüster
  • Publication Date: 11-2010
  • Content Type: Working Paper
  • Institution: Centre for European Policy Studies
  • Abstract: This paper summarises the findings of work package 5.3 of the SECURE project, with regard to the role of carbon capture, transport and storage (CCTS) for the future European supply security of coal. The real issue in European supply security with respect to coal is the absence of an economically and politically sustainable use of coal for electricity, liquefaction, gasification, etc. Whereas earlier papers delivered for work package 5.3 on the coal sector indicated that there are few risks to the European energy supply of (steam) coal, there is an implicit supply security threat, i.e. that coal will no longer be an essential element of European energy supply because the CCTS rollout will be delayed or not be carried out at all. This thesis is substantiated in this subsequent paper, with more technical details and some case study evidence.
  • Topic: Security, Economics, Energy Policy
  • Political Geography: Europe