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21. Technological Competition: Can the EU Compete with China?

Author:
Francesca Ghiretti
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The debate on technological development and the unfolding fourth technological revolution tends to neglect the role of the EU, relegating it to follower status. The leadership positions are occupied by the US and China, who compete with one another for technological supremacy. Yet, despite lagging behind in some areas, the EU is better placed than is often assumed and still stands a chance of guaranteeing the delivery of a technological revolution that is not only environmentally but also socially sustainable. This is critical in proposing a model of technological development alternative to that of China, in particular, and especially in such sectors as artificial intelligence, supercomputing and digital skills. Study produced as part of the project “La geopolitica del digitale”, March 2021.
Topic:
Politics, Science and Technology, European Union, Institutions, Strategic Competition, and Digital Policy
Political Geography:
China, Europe, and Asia

22. The Belt and Road Initiative in Italy: The Ports of Genoa and Trieste

Author:
Francesca Ghiretti
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
In March 2019, Italy signed a Memorandum of Understanding (MoU) with the People’s Republic of China (PRC) in support of PRC President Xi Jinping’s flagship infrastructure and connectivity project, the Belt and Road Initiative. The MoU was accompanied by a series of commercial agreements, including two between the ports of Genoa and Trieste and the state-owned enterprise China Communications Construction Company (CCCC). The European Union and the United States expressed concerns about the agreements as they feared that CCCC would eventually obtain a controlling share of the ports, not unlike that recently secured by the China Ocean Shipping Company (COSCO) with Greece’s Port of Piraeus. However, existing legal constraints, an open international and national debate, and the vague nature of the agreements concerned have so far kept these fears from materialising. Paper prepared in the framework of the IAI project “When Italy embraces the BRI”.
Topic:
Foreign Policy, Infrastructure, Belt and Road Initiative (BRI), and Trade
Political Geography:
China, Europe, Asia, and Italy

23. China's Belt and Road Initiative in Italy: An Analysis of Financial Cooperation

Author:
Nicola Bilotta
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Financial cooperation is essential to boosting bilateral economic ties, providing firms with more effective instruments to operate in foreign markets. It should come as no surprise, then, that financial cooperation was a pillar of the 2019 Memorandum of Understanding (MoU) reached between Italy and China in support of the latter’s Belt and Road Initiative (BRI). However, a preliminary analysis of BRI-related commercial agreements between Italian financial institutions and their Chinese counterparts shows that they have not resulted in any ground-breaking development. These Memoranda have apparently just added a “BRI” badge to pre-existing trends of collaboration. The BRI-related MoUs in the field of financial cooperation do not, for the time being at least, justify concerns that China may gain an economic foothold in Italy large enough to win it much political influence. A more realistic risk is that these MoUs may undermine a common European approach to China, weakening the negotiating stance of the European Union’s. Paper prepared in the framework of the IAI project “When Italy embraces the BRI”.
Topic:
Foreign Policy, Political Economy, Governance, Finance, and Belt and Road Initiative (BRI)
Political Geography:
China, Europe, Asia, and Italy

24. CBDCs for Dummies: Everything You Need to Know about Central Bank Digital Currency (And Why You Shouldn’t Be Afraid of It)

Author:
Nicola Bilotta
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
“No cash accepted in this store”. What might seem to some like science fiction is on its way to becoming reality. The rise of non-cash payments is a global phenomenon, although moving at different speeds around the world. To keep up with the digitalisation of payments (and of the economy), many central banks are exploring the development of Central Bank Digital Currencies (CBDCs), a digital form of cash. Despite being confined to a technical discussion among experts, when (rather than if) launched, CBDCs concerns us all. Thus, raising awareness of what CBDCs are, and of their key economic and political dimensions, is crucial to ensure that citizens are not only passive spectators. This paper has the ambition to provide (non-expert) readers with straightforward and simple answers to some of the many questions they may have around CBDCs. It sets the ground to better understand what CBDCs are (and are not), their drivers and their possible design. It will explore the impact of CBDC systems on privacy, the geo-strategic drivers of CBDCs and the possible rivalry between public and private money. Paper prepared in the framework of a research effort on the risks and the opportunities related to Central Bank Digital Currencies (CBDCs) with the support of Intesa Sanpaolo and the Bank of Italy.
Topic:
Political Economy, Governance, European Union, Finance, Currency, and Digital Policy
Political Geography:
China, Europe, and United States of America

25. From Tectonic Shifts to Winds of Change in North Africa and the Middle East: Europe’s Role

Author:
Nathalie Tocci, Riccardo Alcaro, Francesca Caruso, Silvia Colombo, Dario Cristiani, Andrea Dessì, Flavio Fusco, and Daniela Huber
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Winds of change are blowing in North Africa and the Middle East. They originate from Washington, where the new Biden administration is expected to abandon its predecessor’s zerosum, erratic approach and take steps towards supporting regional balances and cooperation. Effects are visible especially in the Gulf, with the US pondering its options to re-activate nuclear diplomacy with Iran and Saudi Arabia and the United Arab Emirates grudgingly agreeing to put their feud with Qatar on ice. One way or another, these winds of change are working their way through the Levant, the Eastern Mediterranean and Libya. Admittedly, they are still feeble and can easily fade out like a morning breeze. Were that to happen, Europeans would be amongst the most affected – aside, of course, from regional populations themselves. It is now high time for the EU and its member states to leave the backseat they have (un)comfortably been sitting in for years, seize the opportunity of a cooperative US administration and work to play a more proactive role in North Africa and the Middle East commensurate with their considerable financial, diplomatic and military resources.
Topic:
Foreign Policy, Diplomacy, Military Affairs, and Finance
Political Geography:
Europe, Middle East, North Africa, and United States of America

26. Europe’s Quest for Digital Sovereignty: GAIA-X as a Case Study

Author:
Simona Autolitano and Agnieszka Pawlowska
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
There is currently much discussion about “digital sovereignty” in Europe. While the term encompasses very diverse connotations, it refers to a broad concept involving data, technological, regulatory and political elements. Cloud computing represents one example of the concrete materialisation of the European Union’s quest for “digital sovereignty” – especially through the development of its GAIA-X project. It is too early to assess whether or not GAIA-X will definitively help the Union to achieve this much-desired goal; however, some challenges have already emerged along the way. Looking to the future, if the EU wants to achieve “digital sovereignty”, a different strategy to the one currently under discussion will be needed.
Topic:
Politics, Science and Technology, Sovereignty, European Union, and Digital Policy
Political Geography:
Europe, France, and Germany

27. Europe’s Missile Defence and Italy: Capabilities and Cooperation

Author:
Alessandro Marrone and Karolina Muti
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Europe’s missile defence is structurally linked to NATO deterrence and defence architecture, and it has to face both a worsened international security environment and an accelerating, worldwide technological innovation. Russia and China are heavily investing in new hypersonic systems which dramatically decrease the time needed to reach the target by flying mostly within the atmosphere. The US remains a global leader in the development and deployment of missile defence capabilities, including the Aegis systems which represent the cornerstone of NATO integrate air and missile defence covering the Old Continent. European countries are increasingly collaborating within the EU framework on the related capability development, primarily via the TWISTER project under the Permanent Structured Cooperation (PeSCo). Being exposed to missile threats from Middle East and North Africa and participating to allied nuclear sharing, Italy has a primary interest in upgrading its military capabilities through PeSCo, maintaining them fully integrated within NATO, and involving the national defence industry in cutting-edge procurement programmes.
Topic:
Defense Policy, NATO, Science and Technology, and European Union
Political Geography:
United Kingdom, Europe, Turkey, France, Poland, Germany, Italy, North America, and United States of America

28. Technological Competition: Can the EU Compete with China?

Author:
Francesca Ghiretti
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The debate on technological development and the unfolding fourth technological revolution tends to neglect the role of the EU, relegating it to follower status. The leadership positions are occupied by the US and China, who compete with one another for technological supremacy. Yet, despite lagging behind in some areas, the EU is better placed than is often assumed and still stands a chance of guaranteeing the delivery of a technological revolution that is not only environmentally but also socially sustainable. This is critical in proposing a model of technological development alternative to that of China, in particular, and especially in such sectors as artificial intelligence, supercomputing and digital skills.
Topic:
Development, Science and Technology, and European Union
Political Geography:
United States, China, and Europe

29. Clean Molecules across the Mediterranean: The Potential for North African Hydrogen Imports into Italy and the EU

Author:
Luca Franza
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Hydrogen is the most promising vector for harnessing North Africa’s largely untapped renewable energy potential. Low-carbon hydrogen produced in North Africa can play an important role in enabling the European Union and Italy to reach their increasingly ambitious decarbonisation targets as a complement to electrification and locally produced renewables. It is estimated that the EU could achieve cost savings by producing at least part of its future renewable energy needs in neighbouring high-yield regions. Italy is set to play a particularly important function as both a gateway and a catalyst for North African hydrogen exports. In turn, North Africa stands to benefit from hydrogen both as a source of revenues and as an instrument of diversification, industrialisation and local economic development. This would in turn improve social resilience, increase political stability, reduce the risk of radicalisation and limit migration flows. Italy has a particularly strong strategic interest in all of these areas, given its geographic location in the Central Mediterranean and marked exposure to social, political and security developments in North Africa. North African hydrogen could also create profitable business opportunities for several Italian companies. In sum, hydrogen can contribute to fighting climate change while preserving positive trade interdependence across the Mediterranean. Strong coordination between the private sector and policy-makers is going to be key to abate costs along the hydrogen value chain and launch successful international hydrogen trade schemes.
Topic:
Energy Policy, European Union, Trade, Imports, and Hydrogen
Political Geography:
Europe, North Africa, Italy, and Mediterranean

30. The OSCE as Sisyphus: Mediation, Peace Operations, Human Rights

Author:
Philip Remler
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Over the past decade, the Organization for Security and Co-operation in Europe (OSCE) has been returning to its origins as a Cold War–era Conference – a forum where states and blocs, often antagonistic to one another and espousing opposing ideals, can air their frictions and hostilities. The OSCE was created without legal personality and with the liberum veto of the consensus principle. These constraints stunted the growth of executive capabilities and bound the OSCE closely to the will of its participating States. That rendered most mediation efforts ineffective, especially where an OSCE state is both belligerent and mediator in the same conflicts. Peace operations have been more effective – notably the Special Monitoring Mission in Ukraine – but the same factors have tightly constrained its activity. Though all participating States committed themselves to democratic governance, rule of law and respect for human rights, these ideals failed in much of the former Soviet Union, and autocrats have used the organisation’s lack of legal personality and the consensus principle to hobble the OSCE’s efforts. If the OSCE’s participating States want it to remain an Organization, not a Conference, they must take action to secure its executive autonomy.
Topic:
Human Rights, Peacekeeping, Democracy, Conflict, and OSCE
Political Geography:
Russia, Europe, Eurasia, Ukraine, and Eastern Europe

31. Countering Zero-Sum Relations in the Middle East: Insights from the Expert Survey

Author:
Flavio Fusco
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Building on emerging debates on the need to develop de-escalation mechanisms for the Middle East, the Istituto Affari Internazionali (IAI) and the Brussels-based Foundation for European Progressive Studies (FEPS), with support from the Italian Ministry of Foreign Affairs and International Cooperation, launched a one-year research and outreach project entitled “Fostering a New Security Architecture in the Middle East”. Connected to the research, an expert survey targeting European, US, Russian, Middle Eastern and Chinese experts and practitioners was conducted on key themes, principles and approaches associated with a potential new security architecture for the region. The results of the survey – first published in an edited book volume jointly published by IAI and FEPS in November 2020 – are analysed below, complete with tables and infographics on key themes associated with the research project and the search for new, inclusive mechanisms for dialogue and de-escalation in the Middle East.
Topic:
Conflict Prevention, Security, Foreign Policy, and Politics
Political Geography:
Russia, China, Europe, Middle East, and United States of America

32. Equal Rights as a Basis for Just Peace: a European Paradigm Shift for Israel/Palestine

Author:
Daniela Huber
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Historically speaking, the European Community and then the European Union have always reacted with paradigm changes in their foreign policies to watershed moments in the Middle East. In response to the two Arab-Israeli wars in 1967 and 1973, the European Community actually set up its own foreign policy in the first place and initiated the Euro-Arab Dialogue. After the Camp David Accords, the nine foreign ministers came out with the Venice Declaration in 1980 which reminded its partners in Washington and Tel Aviv that the Palestine question had been ignored and set the parameters for diplomacy in the 1990s. After the Cold War, however, the European Union became absorbed into the so-called Middle East Peace Process (MEPP), resulting in less independent EU agency on Israel/Palestine. This trend has become particularly obvious over the past four years of the Trump presidency, during which time the EU seemed almost paralyzed. While Europeans are now counting on the incoming Biden administration, during the election campaign Joe Biden stated that he will leave the US embassy in Jerusalem and that he is also favourable of the normalization deals between Israel and certain Arab states which President Trump had pushed for. At the same time, the Biden team seems hesitant to return to negotiations.
Topic:
Diplomacy, Human Rights, Territorial Disputes, European Union, and Negotiation
Political Geography:
Europe, Middle East, Israel, and Palestine

33. Reviewing NATO’s Non-proliferation and Disarmament Policy

Author:
Katarzyna Kubiak
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The global treaty-based nuclear order is running out of steam. The problems facing it are progressively building up, while problem-solving is losing momentum. The search for a “golden key” to address disarmament and non-proliferation in a way fit for the 21st century prompts decision-makers to look for novel approaches. NATO needs to actively shape this newly emerging space. Acting today from within a tight policy and institutional “corset”, the Alliance should strengthen its non-proliferation and disarmament portfolio, and harness its consultative and coordination strengths for agenda-setting, norm-shaping and awareness-raising within the international community.
Topic:
NATO, Arms Control and Proliferation, Nuclear Weapons, and Nonproliferation
Political Geography:
Europe, North America, and Global Focus

34. EU–Africa Partnership on Migration and Mobility in Light of COVID-19: Perspectives from North Africa

Author:
Mehdi Lahlou
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The coronavirus pandemic has turned into a global economic crisis with severe social effects in the least developed countries, particularly in Africa. Pre-existing challenges related to widespread poverty, demographic growth, food insecurity and governance issues have been exacerbated by the pandemic. While migration remains one of the key elements of the partnership agenda between Africa and the European Union, the aggravating socioeconomic situation in the African continent due to the impact of COVID-19 and its implications for migration dynamics requires going beyond business-as-usual approaches. The renewed scenario calls for a more comprehensive and development-oriented approach to migration, requiring new policy initiatives addressing the wider set of conditions that, beyond constituting developmental challenges in their own right, also drive migration in North Africa as well as in Sub-Saharan African countries.
Topic:
Economics, Migration, European Union, Mobility, Asylum, and COVID-19
Political Geography:
Africa, Europe, and North Africa

35. Cyber Defence in NATO Countries: Comparing Models

Author:
Alessandro Marrone and Ester Sabatino
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
In 2016 NATO recognised cyber as a domain comparable to the air, land and sea ones, in consideration of the growing number of cyberattacks and of their negative impact on the cyberspace, as well as on the “real world”. Both NATO and its member states have launched initiatives to better tackle the cyber challenge both operationally and in terms of capability development. Nevertheless, among major NATO’s members a common approach to cyber defence is still missing, thus generating a division among countries that pursue a more active defence – US, UK and France – and those that prefer a more defensive approach – Germany and Spain.
Topic:
Defense Policy, NATO, National Security, and Cybersecurity
Political Geography:
United Kingdom, Europe, France, Germany, Spain, and United States of America

36. The European Commission’s Mission to Reform EU Migration Policy: Will Member States Play Ball?

Author:
Asli Selin Okyay and Luca Barana
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Europe’s institutional landscape and political context have evolved considerably over the past year, with implications spanning numerous policy domains, including migration. The formation of the new European Commission, its commitment to deliver a New Pact on Migration and Asylum and the negotiations for the next Multi-Annual Financial Framework (MFF) have set the stage for much needed reforms in the migration field, a policy area still largely driven by the emergency mindset inherited from the 2015–16 “crisis”.
Topic:
Migration, Reform, European Union, Refugees, and Coronavirus
Political Geography:
Europe

37. “Irregular” Migration and Divergent Understandings of Security in the Sahel

Author:
Kari M. Osland and Henriette U. Erstad
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
On 23 September 2020, the EU launched its new Pact on Migration and Asylum. In a refreshingly blunt press-release accompanying the Pact one could read: “The current system no longer works. And for the past five years, the EU has not been able to fix it”. The stated aim of the Pact is a fairer sharing of responsibility and solidarity between member states while providing certainty for individual asylum applicants. This is intended to rebuild trust between EU members as well as improve the capacity to better manage migration. However, whether the Pact will be implemented and have an effect on EU external migration policy in the Sahel remains to be seen.
Topic:
Security, Migration, and European Union
Political Geography:
Europe, North Africa, and Sahel

38. Ending the EU’s Ambivalence to Free Movement in Africa

Author:
Roderick Parkes and Mark McQuay
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
When the October 2020 summit between the European Union (EU) and the African Union (AU) was postponed, leaders blamed the pandemic. Yet, there was a sense that the issue went deeper. Both sides still resent the other’s handling of what Europeans refer to as the “migration crisis” of 2015. AU officials complain about the EU’s divide-and-rule approach to managing migration, while their European counterparts allege that AU officials encouraged African states to leverage migration flows to extort cash. Yet migration remains an area where the EU and AU policy agendas are in fact broadly aligned, on paper and in political rhetoric at least. The AU has adopted a free movement protocol and is looking at mobility to strengthen the continental labour market and promote intra-African capital flows. The EU has lent its support to the project, keen to build bridges with Africa on a traditionally divisive issue.
Topic:
European Union, Mobility, African Union, and Freedom of Movement
Political Geography:
Africa and Europe

39. Learning from COVID-19: Implications for the EU Response to Human Smuggling

Author:
Lucia Bird
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The COVID-19 pandemic set the backdrop to the EU’s new framework for addressing irregular migration. Yet, this emergency mindset should not dictate that future responses to human smuggling remain focussed on border control, as they have done during the pandemic. We are at a pivotal moment in EU policy-making, following the release of the New Pact on Migration and Asylum[1] and preceding the publication of additional plans for legal migration and improved responses to human smuggling. This is therefore a key time to take stock of how state responses to the pandemic have impacted human smuggling dynamics, in order to build sustainable and humane response frameworks going forward.
Topic:
Migration, European Union, Smuggling, and COVID-19
Political Geography:
Europe

40. Lebanon as a Test Case for the EU’s Logic of Governmentality in Refugee Challenges

Author:
Tamirace Fakhoury
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Prior to 2011, Lebanon was no traditional gatekeeper in managing migrant and refugee flows to the EU. Following mass refugee influx from Syria, the small Middle Eastern state acquired key importance in the EU’s architecture of externalisation, alternatively framed as the set of norms and practices that the EU crafts to govern migration from a distance. Lebanon currently hosts more than 1.5 million Syrian refugees and since 2012 the EU has been the key funding power seeking to help the refugee-hosting state cope with the spillover effects that mass displacement brought about on the country. The EU’s recently published New Pact on Migration and Asylum reiterates support to refugees and refugee-hosting countries – including those in Syria’s neighbourhood – as one of the central elements of cooperation with third countries on migration and displacement. After nearly a decade of cooperation between the EU and Lebanon in this area, and ahead of the EU’s new budgetary and policy-planning cycle (2021–27), now is a key moment to critically assess EU-Lebanon cooperation on displacement from Syria.
Topic:
Government, Foreign Aid, European Union, Refugees, Economy, and Syrian War
Political Geography:
Europe, Middle East, Lebanon, and Syria