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  • Author: Ariel Cohen
  • Publication Date: 04-2014
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: Russia's occupation of the Crimea and possible incorporation of Eastern Ukrainian regions demonstrated Europe's vulnerability to Gazprom's energy power. Whatever the EU's reactions, diversification of energy supply to diminish Russia's market share is likely to be one of them. TAP is one step towards the strategic goal of diminishing Gazprom's huge presence in Europe. But in view of the proposed construction of the Russian South Stream, how could Central Europe, and especially Bulgaria, Romania, Austria and Lithuania, ensure energy diversification? What next for the Southern Corridor? Is Russia going to accept and tolerate infrastructure growth of the Caspian and other competitors south of its borders?
  • Topic: Economics, Energy Policy, Markets
  • Political Geography: Russia, Europe, Lithuania, Bulgaria, Romania, Austria
  • Author: David Koranyi
  • Publication Date: 04-2014
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: The Ukraine crisis brought European energy security and with it the Southern Gas Corridor back into the spotlight. The crisis is far from over, but it is already clear that both the scope and nature of Russia's relations with the European Union (EU) and the United States cannot remain unchanged. As the strategic context changes and Europe becomes more and more concerned about Russia's behaviour and reliability as an energy supplier, particularly for natural gas, the relative importance of alternative sources will grow further. Europe is in the midst of rethinking its entire energy and gas supply security strategy. The Southern Gas Corridor can and should be a critical component in this context, while its prospects should be assessed realistically. It is by no means a short-term solution, yet in the medium-term, the Corridor has the potential to become a major source of gas for Europe. The EU should deploy robust energy diplomacy as well as resources to speed up its development.
  • Political Geography: Russia, United States, Europe, Ukraine
  • Author: Kim Talus, Nicolò Sartori, Sirja-Leena Penttinen
  • Publication Date: 11-2014
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: Over the last two decades, the European Union has put in place various policy and regulatory instruments to address climate change and ensure environmental protection. These European efforts, however, have been far from fully successful for a number of reasons, including the difficulty of achieving simultaneously the objectives set by the "2020 Climate and Energy Package" and the inefficient governance mechanisms to pursue them. For this reason, the 2030 policy framework for climate and energy agreed by the European Council in October 2014 proposes a new governance structure which introduces greater flexibility for governments in reaching the targets. While the new structure allows Member States to choose policies that are best-suited to their national energy mix and preferences, it will have to ensure that the commitments undersigned at EU level are respected and the overall targets set by the Commission are met.
  • Topic: Climate Change, Energy Policy, Environment, Governance
  • Political Geography: Europe
  • Author: Elif Burcu Günaydın
  • Publication Date: 11-2014
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: South-Eastern Mediterranean gas fields are still under exploration and development. Meanwhile, the question of which route or routes such gas would take into the global markets remains unanswered. The various possible routes appear to be problematic either politically or financially, leaving development stifled. However, with the crisis between Russia and Ukraine deepening Europe's interest in diversification of supplies, and with gas field owners and developers eager to monetise the resources, Eastern Mediterranean gas could become a potential source for the European Union. This paper tries to answer whether the South-Eastern Mediterranean resources can be regarded as a considerable supply for Europe and, if so, what are the alternative routes that would benefit all the parties involved.
  • Topic: Energy Policy, Natural Resources
  • Political Geography: Europe, Turkey, Israel, Cyprus
  • Author: Nathalie Tocci
  • Publication Date: 11-2014
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: The Arab uprisings alongside the Ukrainian crisis have triggered the perfect storm. The European Neighbourhood Policy (ENP), developed at the height of enlargement EUphoria, is in tatters. To be fair, its failure is only partly endogenous, and largely due to the dramatic transformation of the neighbourhood – east and south – which no one could have foreseen at the turn of the century. Be that as it may, the EU will have to fundamentally rethink its approach towards its turbulent backyard. To move forward, the EU needs to devise conceptually different approaches to the east and south. In both cases, instability and crises abound. In both, the magnitude of the challenges that the EU faces is so great that down-to-earth realism must be its guiding light. Formulating and pursuing down-to-earth objectives for the neighbourhood that reflect current realities is not cynical. It is responsible.
  • Topic: Foreign Policy, Regional Cooperation, International Security
  • Political Geography: Europe, Ukraine, Arabia
  • Author: Silvia Colombo, Nicolò Sartori
  • Publication Date: 11-2014
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: Energy is a key factor shaping relations between Europe and North Africa. Due to the Maghreb's strategic role for European energy security, in the last two decades the EU has attempted to promote deeper energy cooperation both with and within the region. The success of the EU's bilateral and multilateral initiatives, however, has been hindered by diverging interests between European countries and their North African counterparts. The upheaval in the region unleashed by the Arab awakening, along with critical socio-economic challenges like population growth and urbanization, are altering this picture. In this context, the EU should urgently rethink its energy cooperation models with the southern partners, seizing the opportunities engendered by the current moment of change in the region.
  • Topic: Energy Policy, International Cooperation
  • Political Geography: Europe, North Africa
  • Author: Eleonora Poli
  • Publication Date: 11-2014
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: Before the 1997 economic crisis in Asia, the institutional evolution of the Association of Southeast Asian Nations (ASEAN) was very different from the European model. The economic downturn in the late 1990s and the global shift toward a neo-liberal economic era urged ASEAN countries to rethink their regional integration strategy and to mimic some of the institutional models in Europe. In light of this, this paper analyses the rationale behind the evolution of ASEAN since the late 1990, evaluating how and why the organization on a surface replicated aspects of the EU model without engaging in meaningful supranational institutionalization.
  • Topic: Economics, Regional Cooperation, Governance
  • Political Geography: Europe, Asia
  • Author: Sohbet Karbuz
  • Publication Date: 11-2014
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: The aim of this paper is to analyze EU-Turkey relations from an energy perspective. Energy is of mutual strategic interest to Turkey and the EU, insofar as both face serious and multiple energy challenges. Both Turkey and the EU seek to bridge supply and demand, and to establish a more competitive, diverse, secure and sustainable energy system. Common challenges and complementary objectives offer an unparalleled opportunity for the EU and Turkey to intensify cooperation and deepen integration in this field. To that end, this paper discusses the growing relevance of energy in the EU-Turkey relationship, focusing on Turkey's increasing importance in enhancing EU energy security. It then examines how future energy challenges could be turned into opportunities. Turkey and the EU have a lot to gain from close cooperation and deeper integration in the field of energy. However, the full potential of such cooperation and integration can best met by opening the energy chapter in Turkey's accession negotiations.
  • Topic: Energy Policy, Regional Cooperation
  • Political Geography: Europe, Turkey
  • Author: Giulia Rosa Maria Cavallo
  • Publication Date: 10-2014
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: After the adoption of a single monetary policy which commits the European Central Bank to maintaining the euro's purchasing power and price stability in the Eurozone, the European Union is facing a new, but equally fundamental challenge: the implementation in a relatively short time of the so-called "Banking Union". Its purpose is twofold: (1) breaking the link between banking and sovereign risk, with the ultimate goal of achieving full protection of EU savers in the event of a crisis; and (2) ensuring uniformity of credit conditions - which are still too fragmented - within the European banking market, to ensure greater EU integration of the financial system. Starting from the Communication in which the European Commission stressed the need for a banking union, this paper intends to explore the complex process towards its establishment by looking at the EU institutional mechanisms and the legal aspects. In particular, the analysis will be based on two building blocks: (1) the Single Supervisory Mechanism, with a single supervisor at the heart of the banking union; and (2) the Single Resolution Mechanism as a new integrated resolution framework and a resolution fund to address the failure of banking institutions. The paper then assesses the next steps for a fully fledged banking union, necessary in order for this new instrument to lay the foundations for a genuine Economic and Monetary Union, thereby fostering financial and economic stability in the euro area and in the EU as a whole.
  • Topic: Economics, Markets, Monetary Policy, Financial Crisis
  • Political Geography: Europe
  • Author: Nicolò Sartori
  • Publication Date: 07-2013
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: The European Union launched the Southern Gas Corridor initiative with the twofold aim of strengthening the diversification of Europe's gas sources and transportation routes, and reducing the role of upstreamers in the European gas market. The clear preference expressed by the European Commission - the corridor's mastermind - for Nabucco was expected to weigh in heavily, allowing the EU-backed project to easily win the competition. However, other factors, beyond political support, ended up tilting the balance decisively in favour of Nabucco West's final rival, the Trans-Adriatic Pipeline (TAP). These do not include only the technical and commercial criteria set out by the Shah Deniz II consortium, but also more mundane considerations. Nabucco West' s complex organizational and decision-making procedures, the attractiveness of the exemption from Third Party Access (TPA) granted by the EU to TAP, and SOCAR's specific interest in the Greek market also influenced the consortium's final decision. An analysis of the Southern Gas Corridor competition suggests that when it comes to energy, political support and institutional involvement do not always represent the decisive element, and may be counterproductive at times.
  • Topic: Energy Policy, Markets, Oil, Natural Resources
  • Political Geography: Europe
  • Author: Fatih Özgür Yeni
  • Publication Date: 11-2013
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: Energy security is one of the hot topics on the European energy agenda. The EU's Southern Energy Corridor initiative is an attempt to reduce dependence on Russian supplies by tapping into Caspian and Middle-Eastern natural gas resources. Turkey, who aspires to be a regional energy hub, has emerged as the key country in the Southern Corridor. Although the TAP project in its current state satisfies neither Turkey's energy hub ambitions nor the EU's resource diversification efforts, it may serve as the first building block of the Southern Corridor. There are promising developments in the region that can increase volumes and add new routes to the initiative. Private companies have already shown their interest in developing a pipeline infrastructure for possible South-East Mediterranean and Northern Iraq natural gas exports but complex geopolitical issues pose the greatest threat to the way ahead. Thanks to its unique location, Turkey is destined to be one of the key players in the Southern Corridor. The convergence of Turkey's energy hub ambitions and the EU's energy security objectives present mutual gains, but also demand sustained collaboration between the two in light of several technical, legal and political hurdles.
  • Topic: Security, Energy Policy, Natural Resources, Infrastructure
  • Political Geography: Russia, Europe, Turkey, Middle East
  • Author: Manuel Muniz
  • Publication Date: 10-2013
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: EU member states have proven incapable of clarity in their strategic planning, with their key strategic documents almost inevitably abstract and ambiguous. This is extremely unfortunate because without a clear catalogue of interests and an understanding of their location around the world it is impossible to determine a country's appropriate force structure, let alone conduct a coherent and effective foreign and defence policy. This lack of rigor in strategic planning is hurting European defence integration, as states are unable to have transparent and constructive debates about the interests they share. It would be wise to incorporate into the strategic planning process a model that allows for the capturing and quantifying of states' interests. Such a process might lead to the realization that EU member states share more strategic interests than is at first apparent.
  • Topic: Security, Foreign Policy, Defense Policy, Arms Control and Proliferation, Regional Cooperation
  • Political Geography: Europe
  • Author: Vanessa Ushie
  • Publication Date: 10-2013
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: In the framework of the IAI-OCP Policy Center project this paper offers a conceptual framework to examine natural resource management in Turkey, Morocco and Italy and its implications for social and economic development. It recognizes the multiplicity of actors involved in natural resource management at the local, national and global level. It then proceeds by 1) advancing a definition of natural resources to be used in the context of this project; 2) highlighting relevant emerging issues in the empirical debates on natural resource management within economics and politics; 3) developing a series of indicators aimed at assessing the dimensions of the management and use of natural resources. In general, this conceptual framework adopts a flexible and plural approach that reflects the multidisciplinary nature of natural resource management, and recognizes the importance of country-specific factors in the relationship between natural resource management and socio-economic development.
  • Topic: Development, Economics, Natural Resources, Sociology
  • Political Geography: Europe, Turkey, North Africa, Italy, Morocco
  • Author: Nathalie Tocci, Thanos Dokos, Eleonora Poli, Chiara Rosselli, Eduard Soler i Lech
  • Publication Date: 12-2013
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: The Eurozone crisis and the ensuing public disaffection towards what many view as deficient EU institutions and policies have resulted in a surge of euroscepticism across member states. Although euroscepticism is not a new phenomenon, the rise of mass anti- establishment movements notably in southern Europe is. Despite their different political and structural features, Five Star Movement in Italy, Syriza in Greece and several social movements sprung from the Indignados in Spain have recently become key actors in their national political arena by opposing, inter alia, EU-imposed austerity. Yet these movements are not anti-EU in toto; while they criticize what they view as the EU's lack of democracy and rigid economic policies, they are not opposed to the EU integration project as such. While a fine line distinguishes Euro-scepticism from Euro-criticism, provided such distinction is made, the critique of these movements could be galvanized into a constructive force for a more integrated EU political space.
  • Topic: Debt, Economics, International Trade and Finance, Financial Crisis, Reform
  • Political Geography: Europe
  • Author: Nicolò Sartori
  • Publication Date: 01-2012
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: The European Union launched the ambitious Southern Gas Corridor initiative with the goal of enhancing the security of its energy supply. The corridor - a virtual transit route running from the gas-rich Caspian basin to the EU while bypassing Russian soil - is meant to increase diversification of the EU's supplier and transit countries. While various projects have been proposed to give life to the corridor, the European Commission has given particular support to the realisation of Nabucco, a 3,893km pipeline running from Turkey to the European gas hub of Baumgarten in Austria, via Bulgaria, Romania, and Hungary. The Commission's choice is, however, flawed in several respects, as it fails to take account of key factors, such as the diverging, and sometimes conflicting, interests of individual EU member states, the geopolitical challenges of the Caspian basin, and the commercial constraints on Nabucco. This short-sighted approach has hindered the efficient development of the Southern Gas Corridor and weakened the EU's energy policy.
  • Topic: Security, Energy Policy, Natural Resources
  • Political Geography: Russia, Europe, Turkey, Bulgaria, Romania, Hungary, Austria
  • Author: Ebru Oğurlu
  • Publication Date: 03-2012
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: Over the last few years, the Eastern Mediterranean has been increasingly fraught with growing competition between regional players, most notably Turkey, Cyprus, and Israel, signalling an apparent return of power politics in regional relations. Of all actors involved, Turkey stands out for being both an ever more influential power and a source of serious concern to other countries in the region due to its greater assertiveness and perceived hegemonic ambitions. Against the backdrop of recent regional developments and their international implications, including the dispute over drilling rights off Cyprus' coasts, Turkey's image as a constructive and dialogue-oriented country, a critical achievement pursued by a generation of Turkish politicians, diplomats and officials, risks being replaced by one of an antagonistic/assertive power. Facing the first serious challenge to its claim to embody a benign model as a secular Muslim democracy and a responsible international actor, Turkey should not indulge in emotional reactions. It should opt instead for a more moderate and balanced approach based on the assumption that only cooperation and constructive dialogue, even with rival countries, can help it realize its ambition of being the regional pivot.
  • Topic: Foreign Policy, Democratization, Development, Islam, Power Politics
  • Political Geography: United States, Europe, Middle East, Israel, Greece, Asia, Colombia, Cyprus
  • Author: Fabienne Zwagemakers
  • Publication Date: 01-2012
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: Through the inclusion of human rights and democracy clauses in the trade and association agreements of its common external trade policy, the European Union seeks to promote and transmit the values of human rights, democracy, and the rule of law globally. However, trade partners from the developing world often feel that these clauses offend their national sovereignty, and sometimes resort to alternative agreements offered by countries notorious for cutting corners. This working paper offers an assessment of the motives for non-compliance and sketches out how the EU could engender compliance. The paper concludes that there is a pivotal role to be played by education, civil society, business, and political parties in the nexus between economic growth, democracy, and the respect for human rights. The EU must target these factors directly, as they largely determine the domestic enforcement of HR clauses. In addition, the EU should develop a human rights strategy coordinated with global, regional, and local actors.
  • Topic: Democratization, Human Rights, International Trade and Finance, Treaties and Agreements
  • Political Geography: Europe, India, Sri Lanka
  • Author: Elnur Soltanov
  • Publication Date: 01-2012
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: The South East Europe Pipeline (SEEP), proposed by BP in late September 2011, could eventually be the pipeline carrying Azeri gas to European markets. Compared to its competitors in the Southern Corridor concept - Nabucco, TAP and ITGI - it goes furthest in terms of optimality for all the parties involved. The combined advantages of its size, scalability, usage of existing gas infrastructure in Europe and direction, promises a more reasonable economic and political value for the Shah Deniz Consortium, Azerbaijan, Turkey and Europe, while posing a bearable challenge to Russia. The SEEP seems to offer a greater value to a greater number of actors.
  • Topic: Energy Policy, Markets, Natural Resources
  • Political Geography: Russia, Europe, Turkey, Azerbaijan
  • Author: Daniela Huber
  • Publication Date: 05-2012
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: For the last two decades, the EU has sent mixed signals concerning democracy and human rights to its Mediterranean neighbourhood. Has this changed since the outbreak of the Arab Spring? After observing the EU's response to the revolutions in two key countries, Tunisia and Egypt, this paper finds that signalling to Tunisia has become more coherent, while it remains ambiguous towards Egypt - a trend reinforced by US foreign policy in the region. In order to send a coherent message, the EU has to outline more concretely, what are the benchmarks and rewards for progress. For signalling to be effective, bilateral and multilateral dialogues are key. While bilateral dialogue platforms do exist, they should meet more frequently and at the highest levels. A multilateral dimension is conspicuously missing in the array of instruments set up by the EU in response to the Arab Spring, but would be crucial not only in order to understand the different democracy languages spoken, but notably also to anchor reform and set regional standards for it.
  • Topic: Foreign Policy, Democratization, Human Rights, Regime Change
  • Political Geography: Europe, Arabia, Egypt, Tunisia
  • Author: Anar Valiyev
  • Publication Date: 02-2012
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: As Azerbaijan celebrates its 20th anniversary of independence, democratic development remains a key challenge facing the country. Despite the fact that Azerbaijan successfully coped with immediate problems such as poverty reduction and economic and political stability, the need to reform the public administration and decentralize governance has become particularly urgent. The main problems, however, remain the same: low public trust in institutions, the absence of a democratic political culture and the lack of bridging social capital. In this regard, the assistance of the Transatlantic Community is necessary. The European Union and the United States should pursue a developmental approach to democracy promotion in Azerbaijan, which has higher chances to succeed than a more explicitly political approach, considering the weak institutional capacity in the country.
  • Topic: Democratization, Development, Economics, Poverty, Governance
  • Political Geography: United States, Europe, Azerbaijan