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51. Assessing Digital Leadership: Is the EU Losing out to the US?

Author:
Dario Guarascio and Roman Stöllinger
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
Since Leontief’s (1953) seminal work on the factor content of trade, the validity of the Heckscher-Ohlin-model has been judged not only on the basis of formal tests of the theory but also tested against prior expectation. In this vein, this paper uses the Heckscher-Ohlin-Vanek (HOV) approach to investigate whether supposed US leadership in the digital domain can be traced back to digital task endowments embodied in labour services. In a comparison between EU member states and the US, we find that the latter is more intensive in digital tasks than the EU and that this difference is explained by both an intensity-effect (US occupations being more digital-task intensive) and a structural component (relatively more digital-task intensive occupations). Viewed through the lens of the HOV theorem we find that the US is abundant in digital tasks relative to non-digital tasks, while the opposite is true for the EU. The standard tests for the predictive power of the HOV theorem are high and in line with the results for labour in previous literature.
Topic:
International Trade and Finance, Foreign Direct Investment, European Union, Digitalization, and Competition
Political Geography:
Europe and United States of America

52. Employment Effects of Offshoring, Technological Change and Migration in a Group of Western European Economies: Impact on Different Occupations

Author:
Michael Landesmann and Sandra Leitner
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper estimates conditional demand models to examine the impact of offshoring, technological change, and migration on the labour demand of native workers differentiated by four different types of occupational groups: managers/professionals, clerical workers, craft (skilled) workers and manual workers. The analysis is conducted for an unbalanced panel of five economies Austria, Belgium, France, Spain, and Switzerland covering the period 2005-2018. Our results point to important and occupation-specific effects: offshoring seems to have beneficial employment effects for native craft workers in this set of economies, while negative effects for native manual workers across a wide set of industries (including manufacturing and services industries) and managers/professionals in manufacturing. Furthermore, there are important distinctions whether offshoring occurs in other advanced economies, in the EU13 or in developing countries. The analysis of the impact of technological change shows the strong positive impact which the additional IT equipment has on most occupational groups of native workers (with the exception of manual workers), while robotisation in manufacturing showed strongly negative impacts on the employment of all groups of workers and especially of craft workers. Increasing immigrant shares in the work forces showed strongly negative impacts on native workers – however, considering only the partial substitution effects and not including the potential for productivity and demand effects – and this is mostly accounted for by immigration from low- to medium-income source countries.
Topic:
International Trade and Finance, Migration, Labor Issues, Immigration, Foreign Direct Investment, Employment, Competition, Income Distribution, and Offshoring
Political Geography:
Europe, France, Belgium, Spain, Switzerland, and Austria

53. Functional Specialisation and Working Conditions in Europe

Author:
Sandra Leitner, Roman Stöllinger, and Zuzana Zavarská
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
Specialisation in value-chain functions is one of the new phenomena introduced by global value chains (GVCs). This report investigates the effects of functional specialisation on labour markets in fabrication and R&D activities as the two polar cases of value-chain functions, whereby the former is associated with factory economies, while the latter is characteristic of headquarter economies. More precisely, a metric similar to revealed comparative advantage is used to study the effect of relative functional specialisation on wages and non-wage working conditions. In line with the GVC literature emphasising power relations and organisational aspects of production networks, we are able to identify differentiated effects for functional specialisation patterns on wages in EU member states at the industry level across time. While relative functional specialisation in fabrication tends to hold back wages, functional specialisation in R&D has a positive effect on wage progression, controlling for labour productivity, GVC participation and numerous labour supply- and labour demand-side factors. The use of a constructed ‘sharp’ instrument allows giving these results a causal interpretation. Conversely, both functional specialisation measures are found to improve some non-wage working conditions, namely workers’ physical environment and their work intensity, which is evidence against a potential ‘race to the bottom’ effect of functional specialisation along GVCs. The effect is stronger for relative specialisation in fabrication than for relative specialisation in R&D.
Topic:
International Trade and Finance, Labor Issues, Foreign Direct Investment, European Union, Labor Market, Value Chains, and Wages
Political Geography:
Europe

54. Determinants of Functional Specialisation in EU Countries

Author:
Aleksandra Kordalska and Magdalena Olczyk
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper aims to identify factors that determine functional specialisation (FS) in global value chains (GVCs) in European Union countries. We focus on fabrication and R&D as two opposite business functions in terms of their character and their potential of creating value-added. To make our results robust two different approaches to measuring functional specialisation are used – an FDI-based approach and a trade-based approach. To assemble a relative functional specialisation index, for each approach we use the same metric – a revealed comparative advantages index. Our results suggest a positive effect of wages on specialisation in an R&D function, and a negative impact on FS in fabrication. Increasing labour productivity boosts both specialisation in fabrication and in R&D. The results are robust to different model specifications and different time intervals. The instrumental variables method allows us to interpret the results as causal relationships. Additionally, human capital and labour skills foster FS in R&D (only in FDI data), and growing employment makes FS in fabrication increase. The growth of GDP per capita positively affects functional specialisation in R&D activities. Among GVC participation measures, we confirm the importance of increasing backward linkages to explain the boost in fabrication activities. Dividing a full sample into a group of EU15 countries and a group of Central Eastern European countries we observe that patterns for the EU15 are similar to those for the full sample, while for CEE countries wages are insignificant and labour productivity affects FS in fabrication only.
Topic:
International Trade and Finance, Foreign Direct Investment, European Union, Economy, Value Chains, and Competition
Political Geography:
Europe

55. Prescription for Military Paralysis: Wartime Reactor Meltdowns (Occasional Paper 2305)

Author:
Henry Sokolski
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
Nonproliferation Policy Education Center
Abstract:
More than 15 months into the war, Russian attacks against Ukraine’s nuclear plants have yet to release any radiation. As the likelihood of the Zaporizhzhia nuclear plant reopening quickly declines and Putin’s desire to distract the world from his declining political and military standing increases, some experts fear he may want to induce a radiological release from the plant. In any case, Putin’s military assaults against the Zaporizhzhia plant have already set a worrying precedent. Last December, NPEC held a wargame, the results of which The Bulletin of Atomic Scientists just published, to examine what might happen in a future Russian invasion of Ukraine. In this reinvasion in 2037, Russia targets power reactors in Ukraine, Poland, and Romania. The United States plans to build scores of new reactors in these countries. What if Russian missiles targeted them in a future war? NPEC tapped the expertise of Ukrainians, Romanians, NATO officials, Poles, US security experts, and Hill staff to find out. It hosted five sessions over two weeks and ran a three-move wargame. The game’s play revealed how the uncertainties and dangers of military attacks against nuclear power plants can paralyze decision-making and fundamentally alter the course of wars. The military disruptions these uncertainties introduce may far outstrip the safety issues any reactor radiological release might otherwise present. The game’s play revealed three reasons why.
Topic:
Security, NATO, Military Affairs, Nonproliferation, War Games, Nuclear Energy, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

56. FACTORING THE SMART POWER IN THE INDIA-EUROPEAN UNION ENGAGEMENTS: A SCOPING REVIEW

Author:
Nippun Gupta, Bawa Singh, Aslam Khan, and Jaspal Kaur
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Institute for Research and European Studies (IRES)
Abstract:
Power is a critical factor in several types of diplomacy. India-EU relations are a classic case of how changing geopolitics prompted diplomatic acumen. This scoping review assesses the changing relations of both partners as a manifestation of Smart Power. The dynamic relations from normative-based to pragmatic and inclusive interests based are evaluated. Their value-based relations are put under international relations theories. Their changing factors of cooperation are used to justify their smart diplomacy, where contemporary relations are less likely to be affected by multilateral interests. To solidify claims of smart power in their relations, the recent TRIPS waiver schism illuminated health diplomacy between the two regions. This health diplomacy discourse promotes smart power diplomacy between India and the EU, where new avenues of cooperation emerge despite pandemic disagreements. The article explores how hybrid power is better than soft and hard power in silos by systematically searching and selecting the existing knowledge in the contemporary context.
Topic:
Diplomacy, Health, Bilateral Relations, European Union, Soft Power, Hard Power, and Smart Power
Political Geography:
Europe, South Asia, and India

57. Striking evidence: The impact of railway strikes on competition from intercity bus services in Germany

Author:
Matthias Beestermöller, Levke Jessen-Thiesen, and Alexander Sandkamp
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
This paper investigates the impact of the largest rail strikes in German history on intercity buses – a then newly liberalised market. Using unique booking data of bus services, we exploit variation in rail service cancellations across routes to show that the disruption in rail transport increases bus ticket sales. Crucially, the effect persists beyond the strike, indicating that travellers do not return to their originally preferred mode of transport. It is particularly pronounced for passengers travelling on weekends. The findings suggest that customers were previously under-experimenting. Beyond transportation, our results highlight the importance of service reliability, as temporary disruptions can cause customers to permanently switch to competitors.
Topic:
Labor Issues, Business, Transportation, and Labor Strike
Political Geography:
Europe and Germany

58. Carbon Capture and Storage - Publics in five countries around the North Sea prefer to do it on their own territory

Author:
Christine Merk, Gisle Andersen, Åsta Dyrnes Nordø, and Torben Helfrich
Publication Date:
07-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
Carbon Capture and Storage (CCS) has been identified as an essential part of the lowest-cost path toward reaching the goals of the Paris Agreement. In Europe, an accelerated pace of CCS development indicates that a CO2 transport and storage system could be established by 2030. However, we know little about how the public views the market for transport and storage of CO2 currently under development in Europe. In early 2023, we conducted an experimental comparative survey to study public opinions on cross-border CO2 trade for storage in Denmark, Germany, the Netherlands, Norway and the UK. The share of respondents that perceive CCS as somewhat positive or very positive varies considerably between the countries; we find the highest share in Denmark (69%), followed by the UK (68%), Norway (67%), the Netherlands (57%) and the lowest share in Germany (49%). Especially concerns about environmental risks and costs lead to more negative views, while perceptions of job creation and economic opportunities lead to more positive evaluations. The experimental results show that importing CO2 for storage is among the least preferred options in all countries, while the storage of CO2 that has been captured in the own country is the most preferred option; the gap in the share of positive evaluations is substantial and amounts to up to 20 percentage points in the UK. Respondents who feel that countries are responsible for reducing national greenhouse gas emissions and storing their own captured CO2 drive the pattern of a more positive evaluation of a domestic CCS value chain and a more negative evaluation of importing CO2.
Topic:
Climate Change, Trade, Carbon Emissions, and Perception
Political Geography:
Europe and North Sea

59. Spatial Wage Inequality in North America and Western Europe: Changes Between and Within Local Labour Markets 1975-2019

Author:
L. Baluz, P. Bukowski, M. Fransham, A. Lee, and M. López Forero
Publication Date:
08-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
The rise of economic inequalities in advanced economies has been often linked with the growth of spatial inequalities within countries, yet there is limited comparative research that studies the relationship between national and subnational economic inequality. This paper presents the first systematic attempt to create internationally comparable evidence showing how different countries perform in terms of geographic wage inequalities. We create cross-country comparable measures of spatial wage disparities between and within similarly-defined local labour market areas (LLMAs) for Canada, France, (West) Germany, the UK and the US since the 1970s, and assess their contribution to national inequality. By the end of the 2010s, spatial inequalities in LLMA mean wages are similar in Canada, France, Germany and the UK; the US exhibits the highest degree of spatial inequality. Over the study period, spatial inequalities have nearly doubled in all countries, except for France where spatial inequalities have fallen back to 1970s levels. Due to a concomitant increase in within-place inequality, the contribution of places in explaining national wage inequality has remained fairly constant over the 40-year study period, except in the UK where we document a significant increase. Whilst common global social, economic and technological shocks are important drivers of spatial inequality, this variation in levels and trends of spatial inequality opens the way to comparative research exploring the role of national institutions in mediating how global shocks translate into economic disparities between places.
Topic:
Inequality, Labor Market, and Wages
Political Geography:
Europe and North America

60. The Labor Market Effects of Disability Benefit Loss

Author:
Anikó Bíró, Cecília Hornok, Judit Krekó, Dániel Prinz, and Ágota Scharle
Publication Date:
09-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
Disability benefits are costly and tend to reduce labor supply. While spending can be contained by careful targeting, correcting past flaws in eligibility rules or assessment procedures may entail welfare costs. We study a major reform in Hungary that reassessed the health and working capacity of a large share of beneficiaries. Leveraging age and health cutoffs in the reassessment, we estimate employment responses to loss or reduction of benefits. We find that among those who left disability insurance due to the reform 58% were employed in the primary labor market, 6% participated in public works and 36% were out of work without benefits in the post-reform period. The consequences of leaving disability insurance sharply differed by pre-reform employment status. 81% of beneficiaries who had some employment in the pre-reform year worked, while only 33% of those without pre-reform employment did. The gains of the reform in activating beneficiaries were small and strongly driven by pre-reform employment status. This points to the importance of combining financial incentives with broader labor market programs that increase employability.
Topic:
Health, Employment, Economy, Disability, Fiscal Policy, Insurance, Labor Market, and Welfare State
Political Geography:
Europe and Hungary

61. Exchange Rate Pass-Around

Author:
Matthieu Crozet, Julian Hinz, and Federico Trionfetti
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
In January 2015, The Swiss Franc (CHF) appreciated unexpectedly against the Euro by approximately 15%. We document a new fact: French firms that exported to both the Swiss market and the Eurozone also exhibited a sudden change in their export prices to the Eurozone. We coin this the “exchange rate pass-around” effect. We rationalise this fact with a simple model based on the endogenous decision of some firms to give up pricing-to-market and opt for single-pricing to all markets. An important implication of this finding is that single-pricing may be one of the causes of the incomplete pass-through. This mechanism has so far remained unexplored in the literature, which may have led to overestimating the importance of other factors. Based on monthly French export data, our empirical analysis confirms the existence of the pass-around. Firms directly affected by the CHF exchange rate shock increased their prices in neighboring markets by 0.8% compared to other exporters. The effect was stronger for firms with lower ex-ante price heterogeneity across markets and for firms with smaller trade costs to Switzerland. However, the effect was short-lived. As time passed, exporters tended to decouple the prices they set on the Swiss market from those for the Eurozone, and the pass-around effect faded.
Topic:
International Trade and Finance, Markets, Monetary Policy, European Union, and Exchange Rate Policy
Political Geography:
Europe

62. Blowback: The Effect of Sanctions on Democratic Elections

Author:
Matthieu Crozet and Julian Hinz
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
Sanctions are meant to coerce political adversaries through economic measures. However, evidence for their effectiveness is scarce. In this paper we assess the impact of sanctions on a democracy — France — by studying the electoral consequences of the sanctions and countersanctions imposed between Russia and Western countries. Contrary to most of the existing literature we find clear evidence for exposure to the sanctions to cause an increase in the vote share for pro-Russian (and far-right) candidates during the French 2017 presidential election. Locally, the impact on voting is substantial. Back-of-the-envelope calculations indicate that about 16,300 votes for the main far-right candidate can be directly attributed to the sanctions’ impact. This is the total number of votes cast in a medium-sized French city. It is however not nearly enough to have affected the outcome of the election at the national level.
Topic:
Globalization, International Trade and Finance, Sanctions, and Elections
Political Geography:
Russia, Europe, and France

63. Who is to suffer? Quantifying the impact of sanctions on German firms

Author:
Holger Görg, Anna Jacobs, and Saskia Meuchelbock
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
In this paper, we use a novel firm level dataset for Germany to investigate the effect of sanctions on export behaviour and performance of German firms. More specifically, we study the sanctions imposed by the EU against Russia in 2014 in response to the annexation of Crimea and Russia's countermeasures. We find a substantial negative effect on both the extensive and intensive margin of German exports. While the negative effects are strongest for firms exporting products subject to trade restrictions, we provide further evidence on the indirect effects of sanctions. Analysing the impact on broader measures of firm performance, we document that the cost of sanctions is heterogeneous across firms but overall modest. Our results reveal that the negative impact of the shock was concentrated primarily among a small number of firms that were highly dependent on Russia as an export market and those directly affected by the sanctions.
Topic:
Foreign Policy, Globalization, International Trade and Finance, Sanctions, Russia-Ukraine War, and Firm Dynamics
Political Geography:
Russia, Europe, and Germany

64. Potential efficiency gains from the introduction of an emissions trading system for the buildings and road transport sectors in the European Union

Author:
Wilfried Rickels, Christian Rischer, Felix Schenuit, and Sonja Peterson
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
In the European Union (EU), a second emissions trading system (EU ETS2) covering buildings, road transport and small energy and industrial installations is expected to be introduced from 2027. Until 2030, however, EU ETS2 will not be a separate pillar of EU climate policy, but will support Member States in meeting their national targets under the Effort Sharing Regulation (ESR). If there are net regional shifts in emission reductions within the EU ETS2, for example, if companies in one member state buy in aggregated terms net allowances, this must be compensated for at the national level. We study the EU ETS2 for the year 2030 using the general equilibrium model DART. In our analysis, the introduction of an EU ETS2 generates about a quarter of the efficiency gains of a comprehensive emissions trading system, assuming that nation states use the flexibility mechanisms of the ESR and compensate for regional abatement leakage through interstate emissions trading. However, this is only true if there is no extensive price stabilization in the EU ETS2. Our analysis suggests an EU ETS2 allowance price of around EUR 300/tCO2. Stabilizing the EU ETS2 price at the envisaged intervention price of 45 EUR/tCO2 would require about 415 million additional allowances and thus imply additional emissions of the same amount in 2030 alone.
Topic:
Climate Change, European Union, Economy, and Carbon Emissions
Political Geography:
Europe

65. The path of economics research production: Insights into the seesaw between theory and empirics

Author:
João Ricardo Faria, Rajeev K. Goel, and Neela D. Manage
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
This paper provides insights into the apparent seesaw between the generation of theoretical versus empirical economics research over time. A dynamic model considers the incentives of researchers to focus on empirical versus theoretical papers. It yields the main characteristics of the path-changing of economics research, from theoretical-intensive to empirical-focused. The model has two equilibria, one with a higher proportion of theoretical papers and another with a higher proportion of empirical papers. Curiously, the equilibrium with greater theoretical papers is stable, while the one with more empirical papers is a saddle point. This suggests that the current trend of increasing empirical research is unlikely to last.
Topic:
Economics, Research, and Innovation
Political Geography:
Europe, North America, and United States of America

66. Technology will save the climate! Attitudes towards Norway’s climate policy in four social groups

Author:
Åsta Dyrnes Nordø
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
The risk of opposition from the population increasingly plays a role in choosing the climate policy measures to achieve the objective to substantially reduce greenhouse gas emissions. In Norway, there is a long-standing cross-party consensus that the development of new technologies will be crucial for solving climate challenges. Comparing public opinion surveys, Norwegians are significantly more convinced that new technology will solve problems induced by climate change, compared people in other European countries. A concrete example of such a technology is carbon capture and storage (CCS). Despite discussions about the costs of establishing the technology, there is a cross-party consensus in Norway that CCS is a good and suitable measure for reaching climate policy goals. In this article, we review the historical background that has led to this broad support in Nor-way. Furthermore, we look at how this has been expressed in the political parties’ attitudes towards CCS. There has been a long standing consensus among all major parties that CCS should be developed and deployed. We argue that this lay the foundation for the societal support for CCS. We analyze data from the Norwegian Coordinated Online panels for research on DEMocracy and governance (KODEM) to examine the attitudes toward CCS among citizens and three functional elites, namely elected representatives, bureaucrats, and journalists. We find that CCS receives strong support in all four groups, but that citizens and elected representative are more skeptical compared to bureaucrats and journalists. However, when looking at the factors that influence the perception of CCS, the pattern is the same for all four groups. The more technology optimistic a person is, the more positively they tend to perceive CCS as a method to fight climate change. We also find that those who think the political efforts to reduce greenhouse gases are too great are less positive about CCS com-pared to those who think the efforts are appropriate or too small. Overall, the analysis indicates that all four societal groups are technology optimistic and characterized by the same attitudes toward climate change. We discuss the role of technology optimism in Norway’s climate policy and the reasons for the high degree of political consensus across groups with different societal functions.
Topic:
Climate Change, Science and Technology, Carbon Emissions, Elites, and Attitudes
Political Geography:
Europe and Norway

67. The Ukraine Support Tracker: Which countries help Ukraine and how?

Author:
Christoph Trebesch, Ariana Antezza, Katelyn Bushnell, Andre Frank, and Pascal Frank
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
This paper presents the Ukraine Support Tracker, which lists and quantifies military, financial and humanitarian aid to Ukraine in the context of the Russia-Ukraine war. Since the third update we track support by 41 countries, specifically the EU member states, other members of the G7, as well as Australia, South Korea, Turkey, Norway, New Zealand, Switzerland, China, Taiwan, India and Iceland. The database is intended to support a facts-based discussion about support by other countries to Ukraine. Private donations and aid through non-governmental organizations are not included due to a lack of systematic data. To value in-kind support like military equipment or weapons, we rely on government statements as well as own calculations using market prices. We find significant differences in the scale of support across countries, both in absolute terms and as percent of donor country GDP.
Topic:
Economics, War, Foreign Aid, Military Aid, Geoeconomics, and Russia-Ukraine War
Political Geography:
Russia, Europe, Ukraine, Germany, and United States of America

68. Exposure to War and Its Labor Market Consequences over the Life Cycle

Author:
Sebastian T. Braun and Jan Stuhler
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
With 70 million dead, World War II remains the most devastating conflict in history. Of the survivors, millions were displaced, returned maimed from the battlefield, or spent years in captivity. We examine the impact of such wartime experiences on labor market careers and show that they often become apparent only at certain life stages. While war injuries reduced employment in old age, former prisoners of war postponed their retirement. Many displaced workers, particularly women, never returned to employment. These responses are in line with standard life‐cycle theory and thus likely extend to other conflicts.
Topic:
History, Displacement, World War II, Welfare, Prisoners of War, and Labor Market
Political Geography:
Europe and Germany

69. NATO in the North: The emerging division of labour in Northern European security

Author:
Matti Pesu
Publication Date:
09-2023
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
The Russian war of aggression has rendered Northern Europe an increasingly significant region for Euro-Atlantic security. A stable and secure Northern Europe is a critical precondition for a safe and stable Euro-Atlantic region. The alliance should treat Northern Europe as a strategic whole although the different subareas of Northern Europe have their distinctive security dynamics and concerns. NATO is currently improving its deterrence and defence posture. It is simultaneously shifting its military strategy from a model of deterrence by reinforcement to one of deterrence by denial. NATO’s evolving posture and strategy in Northern Europe should be underpinned by a more explicit division of labour. The regional allies and stakeholders can be divided into four categories in terms of their role in regional security: frontline nations, hubs, security providers and the ultimate security guarantor. The regional frontline nations include the Baltic states, Finland and Poland, which can also play a role as hubs and even security providers along with the United Kingdom and Germany. Denmark, Sweden and Norway are first and foremost hubs. The United States remains the ultimate security guarantor of the area.
Topic:
Security, Defense Policy, NATO, and Deterrence
Political Geography:
Europe, Nordic Nations, Arctic, and Baltic Sea

70. Made in Europe: An EU Green Industrial Plan to respond to the challenge of US and Chinese protectionism

Author:
Alekos Kritikos and George Pagoulatos
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The EU needs to urgently formulate a response to US and Chinese protectionism. US decarbonization legislation poses a threat of deindustrialization for Europe. Europe needs a plan to support EU green, industrial and technological competitiveness, while protecting European cohesion and the single market, and promoting European strategic autonomy. Relaxing EU state aid rules must be an inevitable first component of Europe’s response. But this would overwhelmingly benefit the stronger economies of Germany and France, undermining EU cohesion and the integrity of the single market. Thus, the second component of EU response must be a European Sovereignty Fund, of a size commensurate to the magnitude of the challenge. The new Fund must support value chain categories that include as many EU member states as possible. SURE, extended to encompass the energy crisis and green transition, should be an integral part of the mix, and so should promoting technological skills and reskilling for the “Clean Tech Economy”. Investment funding should seek to contribute to vertical integration, including as many stages in the supply chain as possible. It should contribute to the return of specific supply chains and production units from third countries to the EU and seek to include the EU’s weakest economies. Subsidies should rise if the investment is cross-border in nature and carry a bonus if made in an EU region with a low GDP per capita compared to the EU average. Funding could also promote European strategic autonomy by including cross-border partnerships of EU member states in the defence technology industry. It should involve new funding rather than simply recycling money from existing programmes, and certainly avoid deploying undisbursed resources from the Recovery & Resilience Fund.
Topic:
European Union, Investment, Industry, Protectionism, and Strategic Autonomy
Political Geography:
China, Europe, and United States of America

71. Hydrodiplomacy and the Food, Water and Energy Nexus: A holistic approach for transboundary cooperation and peace

Author:
Fadi Comair
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The rapid social and economic development in the world is leading to increased levels of water stress that point to potential water crises. As the most vital and strategic of natural resources, water can serve as an instrument of domination or of cooperation. Given the presence of key geopolitical concerns in the Near East, regional hydro-diplomatic cooperation is necessary to ensure fair sharing of the resource and to avoid additional tensions and conflict. Nine of the seventeen EMME countries are below the absolute water scarcity threshold of 500 m3/year per capita, including all six countries in the Gulf region, Jordan and Palestine. Those countries that share major transboundary basins in the EMME region such as the Nile, Jordan and Tigris-Euphrates basins are subject to multiple challenges which include unilateral water resources management, water scarcity, and environmental degradation leading to food insecurity. Hydrodiplomacy is a tool for applying integrated water resource management at a national and transboundary level in accordance with a cooperative model seeking peace among riparian countries. Multiple UN agencies contribute to bringing riparian countries together with a view to fostering dialogue and the sharing of information on water management and transboundary cooperation.
Topic:
Development, Diplomacy, International Cooperation, Water, Food, Geopolitics, and Energy
Political Geography:
Europe and Middle East

72. The Greek Defence Sector: Turning the Page?

Author:
Antonis Kamaras
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
From the 1980s to the 2000s, Greece’s defence industry was mismanaged and failed to utilize Greece’s high defence expenditures to become innovative. The impact of Greece’s fiscal crisis and the subsequent expansion of the Turkish threat mean that both economics and geopolitics now favour an invigorated Greek defence sector. The first major weapons procurement programme since the end of Greece’s fiscal crisis has not meaningfully involved the Greek defence sector. Yet the sector’s future prospects have improved, assured by the need for the sector to be financially viable and internationally competitive and by the broader awareness of the defence sector as a building block in national defence. The EU’s growing role in Europe’s collective defence, driven by continent-wide geopolitical developments and industrial imperatives, will also boost the prospects of the Greek defence sector. Mutually reinforcing obstacles still hamper the Greek defence sector’s progress: (a) a polity which privileges distribution over capital investments in its fiscal choices, and (b) an officer corps which lacks the degree of autonomy to co-create novel defence solutions together with the Greek defence sector. Despite these obstacles, the ongoing Turkish threat engenders national insecurity within Greece to such an extent that it can drive the sustainable growth of the Greek defence sector.
Topic:
Defense Policy, Geopolitics, Innovation, and Defense Industry
Political Geography:
Europe, Turkey, and Greece

73. Domestic implementation of European Court of Human Rights’ judgments related to immigration in Greece

Author:
Dia Anagnostou
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
In recent decades, the European Court of Human Rights has evolved into a leading judicial body which examines and identifies violations committed by states in the management of migration and asylum. Greece is one of the countries that has been condemned in a large number of judgements relating to administrative detention, reception and accommodation conditions, the treatment of migrants by the police and border authorities, the asylum system, the treatment of unaccompanied minors, and human trafficking. This paper examines the Greek authorities’ compliance with the ECtHR judgements in this area. It focuses on general measures which relate to broader changes in the legislation and case law, as well as on administrative practice in Greece. It analyses the obstacles and difficulties present in this area, and it makes policy recommendations. It argues that a new approach is needed to Greece’s compliance with regard to the human rights of migrants and refugees. This approach should be focused on structural reforms and it should have the express commitment of the country’s political leadership. It would require systematic efforts to instil a new mindset within the public administration that is supportive of human rights protection as a priority and democratic responsibility, rather than as an externally imposed, necessary evil.
Topic:
Migration, Refugees, Judiciary, Asylum, and European Court of Human Rights (ECHR)
Political Geography:
Europe and Greece

74. Drafting Greece’s “Internal Security Strategy” – Challenges and Prospects

Author:
Panayotis Tsakonas and Triandafyllos Karatrantos
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The radical change in the structure of the international system caused a scientific and political revolution in the definition and concept of security. Issues such as the climate crisis, forced displacements and extreme nationalism have led the interest and especially the debate on achieving security from external to internal threats. The focus is now on the main “object of reference” of security which is not the state or some sub-state groups, but “the individual”/”the citizen”. In the modern globalized environment, all the risks that threaten the daily life of citizens require dealing with the concept of security in a “holistic” and, at the same time, more “human-centered” way. Greece lacks an institutional document for the internal security strategy. There are structural reasons that make a comprehensive reform of the internal security sector necessary. In addition to the established weaknesses and inadequacies of specific agencies and/or services of the internal security system, the overall organic interconnection between crisis management services is still required. The first lesson from the effects of the pandemic is the need for the evolution of Greece into a “Modern National Security State”. Greece, due to its geographical position on the external borders of the EU, as well as the crises it has experienced in recent years, faces a series of internal security threats and challenges. Security and respect for fundamental rights are not mutually conflicting but coherent and complementary objectives. The Strategy will help build an internal security governance system and a central coordination process.
Topic:
Security, Governance, and European Union
Political Geography:
Europe and Greece

75. The EU’s approach to climate mobility: Which way forward?

Author:
Helena Hahn and Melanie Fessler
Publication Date:
10-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Climate mobility as a global issue needs strategic thinking about how people adapt, and the role mobility can play in alleviating the adverse effects of climate change. This Discussion Paper analyses what the EU is doing to deal with climate mobility. It addresses the complicated relationship between climate change, mobilities, and related challenges in modelling and projecting future scenarios. It also shows the multilateral policy developments relating to climate and migration and the EU’s actions on climate mobility, with a focus on two interrelated challenges: 1. Policy (in)coherence and counterproductive narratives. 2. Weak institutional coordination. The EU’s funding landscape is also addressed, focusing on the challenges of mainstreaming and monitoring when assessing the funds dedicated to this cause. It concludes with recommendations on impacts, multilateral engagement, policy, and funding, which outline practical steps to be taken in the short and long-term.
Topic:
Climate Change, European Union, and Mobility
Political Geography:
Europe

76. Towards common accord? The European Union contemplates treaty change

Author:
Andrew Duff
Publication Date:
10-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Numerous events have conspired to tempt the European Union to reform the way it is governed. Present constitutional arrangements were laid down in the Treaty of Lisbon in 2007 and are long overdue for revision. In recent months, parallel efforts have been made by the European Parliament and European Commission to articulate a prospectus for treaty amendment. The Council remains fearful and inarticulate, divided over the content and timing of any such reform. Andrew Duff returns to the current debate with a Discussion Paper analysing the EU treaty change. He previews emerging proposals from the European Parliament and European Commission, referring to the recent report of the Franco-German experts as well as other relevant contributions.
Topic:
Treaties and Agreements, European Union, Regional Integration, European Parliament, and European Commission
Political Geography:
Europe

77. Ending the HIV epidemic in Europe: Moving toward the 2030 sustainable development goals

Author:
Elizabeth Kuiper and Danielle Brady
Publication Date:
11-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Despite significant progress, the human immunodeficiency virus (HIV) epidemic continues to pose a public health threat in Europe. The COVID-19 pandemic has exacerbated challenges by disrupting healthcare services and diverting attention and resources away from HIV prevention and treatment. Stigma and discrimination against those affected by HIV persist and are additional obstacles, slowing down progress to end the HIV epidemic. This Discussion Paper explores the current HIV prevalence in Europe, identifies barriers and challenges, and offers policy recommendations to overcome these obstacles and meet the sustainable development goals targets in Europe. The Paper emphasises the need for renewed political commitment and cooperation among the EU and its member states to prioritise HIV as well as for strong partnership and collaboration between authorities and stakeholders concerned, ultimately striving for success in ending the epidemic.
Topic:
HIV/AIDS, European Union, Public Health, and COVID-19
Political Geography:
Europe

78. Violence against women: A public health crisis

Author:
Victoria Pedjasaar
Publication Date:
11-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
In the EU, a third of women over the age of 15 have experienced physical or sexual violence and over half have been sexually harassed. Although often overlooked, the majority of (workplace) violence takes place in the healthcare sector as healthcare professionals are 16 times more at risk of violence in comparison to other occupations. Violence does not only manifest in abusive behaviour toward workers on duty but can also be perpetrated on women as receivers of healthcare. High rates of violence in healthcare, brought on and exacerbated by gender stereotypes and inequality, point to dysfunctional health systems. This Discussion Paper provides policy recommendations on the way forward for the EU member states, taking a closer look at: Gender-based violence against healthcare workers. Obstetric and gynaecological violence against women. Gender-based violence as a story of gender inequality. Legislation and policies that protect women.
Topic:
European Union, Women, Inequality, Gender Based Violence, and Legislation
Political Geography:
Europe

79. Digitalisation: An enabler for the clean energy transition

Author:
Simon Dekeyrel and Melanie Fessler
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Russia’s invasion of Ukraine and the resulting energy crisis are a painful reminder that Europe must reduce its dependence on fossil fuels. To build a sustainable, secure and affordable energy future, the coming years will require a massive scale-up of renewable energy across the EU and a tremendous effort by European businesses and households to cut their energy consumption. To wrap up the "Digitalisation for a Clean Energy Transition" project undertaken by the EPC and the Vodafone Institute for Society and Communications, this Discussion Paper examines how digitalisation can act as a catalyst for the clean energy transition in Europe. The study considers the regulatory framework necessary to coordinate and promote synergies between energy and digital policies and support the twin green and digital transformation of the European energy system. To fully unlock the potential of digitalisation in the transition towards smart and sustainable energy systems, the EU and its member states need to: Accelerate work on a common European energy data space, characterised by interoperable data standards, adequate incentives for data sharing, data protection and privacy safeguards for consumers. Ensure that citizens possess the necessary digital skills and information to reap the full benefits of the twin transition in terms of consumer empowerment and access to affordable and clean energy. Put in place the necessary safeguards regarding the cybersecurity of energy networks to ensure that the digital transformation does not jeopardise the resilience of EU energy systems. Use financial tools to accelerate the deployment of digital solutions in the energy sector and equip existing networks with the necessary digital infrastructure. For digitalisation to deliver, it needs to be steered in the right direction. For this, we need an adequate policy and financing framework to make sure that the twin transition not only empowers people and businesses to play an active role in accelerating the transition to clean energy sources but also contributes to greening the digital and ICT sector.
Topic:
Cybersecurity, Fossil Fuels, Digitalization, Energy, Russia-Ukraine War, and Energy Transition
Political Geography:
Europe

80. Resetting the EU’s business model after the watershed

Author:
Marco Buti and Marcello Messori
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
The EU’s response to the COVID-19 pandemic raised hopes of an acceleration towards deeper economic and political integration. Most optimists saw Next Generation EU as a paradigm shift that would result in the establishment of a permanent central fiscal capacity. Such hopes were reinforced by the Russian aggression against Ukraine; if not now, when? While the EU displayed remarkable unity in sanctioning Russia, the hopes for another leap forward in integration have not yet materialised. This Discussion Paper argues that the current crisis is more existential than the pandemic, as it questions Europe’s business model: an energy-intensive, mercantilist production setup is not sustainable going forward, for domestic and global reasons. It also argues that the EU’s reaction to the US Inflation Reduction Act may be a break: preserving the single market prohibits a go-it-alone policy constituted of exclusively national reactions. Going forward, the authors believe there needs to be an effective centralised strategy based on three overarching considerations: (i) The EU needs a new industrial policy to reinforce value chains, close technology gaps with the US and China, and improve its economic model's competitive advantages; (ii) The implementation of this policy requires the EU's member states to be less risk averse and more open to common solutions; (iii) A necessary, though not sufficient, condition for a cooperative game is an effective implementation of the national Recovery and Resilience Plans that give access to the Recovery and Resilience Facility’s funds. Achieving those goals is key to rebuilding political trust, reviving the ‘Next Generation EU spirit’, and mitigating the impact of the war in Ukraine on the European economy.
Topic:
Industrial Policy, European Union, Business, Regional Integration, and Value Chains
Political Geography:
Europe

81. Addressing Cohesion Policy’s identity crisis in a changing European Union

Author:
Alison Hunter
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Since the late 1980s Cohesion Policy has been one of the cornerstone policies of the European Union. However, nowadays, a different, bolder Cohesion Policy debate is needed, reflecting a radically changed global environment. This Discussion Paper focuses on the upcoming review of the post-2027 Multi Annual Financial Framework and the debate concerning the future EU Cohesion Policy. It argues that Cohesion Policy’s purpose requires reinvention, not an incremental upgrade. Four overarching themes are analysed, reframing Cohesion Policy with a strategic, long-term investment perspective: EU resilience, security, strategic autonomy, and reforms. The author then proposes five recommendations which weave together these themes with the policy’s long-standing core features: Acknowledge the need to review the Cohesion Policy’s purpose. The EU should breathe new life into the Cohesion Policy debate. Revitalise Cohesion Policy’s long-term value by defending its pillars. The EU should re-confirm Cohesion Policy’s role as a structural policy. Position Cohesion Policy as the ‘guardian’ of EU place-based policymaking. Cohesion Policy should champion the “future-proofing” of regional resilience. Articulate Cohesion Policy’s role in the evolving EU governance and reform agenda. The EU should reach beyond the Recovery and Resilience Facility to reclaim Cohesion Policy’s role in structural reform. Improve Cohesion Policy’s convening power to catalyse deeper EU innovation cooperation. The future Cohesion Policy must deliver a more coordinated approach to the EU’s innovation agenda. The Paper concludes that the future Cohesion Policy should evolve in lockstep with citizens’ needs. This will not be easy. As discussions on the EU’s future have been sidelined in this crisis-prone area, the challenges ahead require strong leadership and coordination. The post-2027 EU Cohesion Policy will have much to contribute to rebuilding the EU’s future vision.
Topic:
Security, Governance, Reform, European Union, Regional Integration, Social Cohesion, Resilience, and Strategic Autonomy
Political Geography:
Europe

82. Raising the stakes on constitutional reform: The European Parliament triggers treaty change

Author:
Andrew Duff
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
The European Parliament, for the first time, has used its powers to trigger a revision of the EU treaties. Its central demand is to change the decision-making procedure behind the passerelle clause from unanimity to qualified majority voting. However, the EU Council has so far refused to submit Parliament’s request to the European Council — in breach of its treaty obligations. At the same time, MEPs continue to develop wider reform proposals to make the government of the EU more robust, decisive, and democratic. With the European Parliamentary elections taking place next year, now is a good time for parliamentarians to take stock of their own performance, review their place in the governing system of the Union, and, other things being equal, prepare for future reform. In this Discussion Paper, Andrew Duff explains that, in an ideal world, more could be achieved under the existing treaties, and the EU could avoid the always complex, often unpopular, and usually protracted task of revising them. With another treaty change on the cards, the Paper analyses the current state of affairs and suggests that the heads of government need the assistance of a reflection group to prepare for a new Convention.
Topic:
Treaties and Agreements, Reform, European Union, Constitution, and European Parliament
Political Geography:
Europe

83. Quantum technologies and value chains: Why and how Europe must act now

Author:
Georg Riekeles
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
As next-generation foundational technologies, quantum computing, communication, and sensing carry significant economic and security implications that go to the core of today’s strategic competition. In contrast with the US, where Big Tech actors dominate, Europe’s strengths lie in a vibrant ecosystem of research organisations and start-ups. This growing ecosystem is now at a critical juncture to develop into an internationally competitive European industry. This paper is based on research and a series of workshops conducted with European policymakers, stakeholders and industry actors looking into Europe’s technological position in contested international value chains. It proposes ten recommendations for the EU’s industrial policy mix under the following headings: KNOW – Embrace tech forecasting at the EU level COOPERATE – Combine European efforts in an EU Quantum Industrial Alliance INVEST – Mobilise European public-private capital for industrial scale-up PROTECT – Deploy Europe’s defensive toolbox prudently In a year that will see the launch of the EU Sovereignty Fund and adoption of the European Chips Act, quantum stands as a test case for the EU’s technological competitiveness and industrial policy agenda.
Topic:
Security, Economics, European Union, Industry, Quantum Computers, and Value Chains
Political Geography:
Europe

84. Funding the EU’s external migration policy: ‘Same old’ or potential for sustainable collaboration?

Author:
Evangelia (Lilian) Tsourdi, Nasrat Sayed, and Federica Zardo
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
In this Discussion Paper, the authors examine changes in the EU funding landscape relating to migration policy and provide recommendations on how to maximise the benefits of cooperation. Since 2015, when the EU was first exposed to a significant rise in irregular arrivals from neighbouring countries, funding has acquired increasing salience, leading to the mobilisation of €7 billion through Trust Funds and the creation of a specific heading devoted to migration and border management in the EU’s Multiannual Financial Framework 2021-2027. The authors look closely at the funding dimension of Talent Partnerships, the latest initiative to support legal migration to the EU, and the contradictions. Given funding’s ability to enhance cooperation with third countries, the Paper focuses on how the EU could take several steps toward ensuring sustainable collaboration. These include moving towards long-term planning, embedding transparency guarantees in the operationalisation of its initiatives, scaling up Talent Partnerships for more impactful and mutually beneficial cooperation, and striving for third-country ownership. Furthermore, in the context of growing political and economic instability around the world, financial resources should equally be used to address the different components of migration processes, such as local development, legal migration, circular migration, integration, but also displacement and forced (im)mobilities. At the same time, long-standing issues of accountability and transparency should be addressed through new instruments. The conditions through which funding can act as a catalyst for sustainability and co-development are also analysed, and recommendations are provided on the next steps for EU action.
Topic:
Migration, European Union, Borders, and Transparency
Political Geography:
Europe

85. The US-EU Trade and Technology Council: Assessing the record on data and technology issues

Author:
Juan Carlos Fernández-Rodríguez and Frances G. Burwell
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Since its creation, the Trade and Technology Council (TTC) has endorsed a Declaration for the Future of the Internet (DFI), designed a Joint Roadmap for transatlantic cooperation on artificial intelligence (AI) and identified quantum technology as a high priority. While these achievements can be considered success stories, this Discussion Paper argues that the TTC is now facing a dilemma. Different approaches to technology and digital governance and the lack of regulatory autonomy make the TTC best suited to address emerging issues that do not require changes in legislation. Yet, this is precisely what stakeholders want it to address. So, how can the TTC ensure its continuity without regulatory authority? The Paper offers five key recommendations: Make AI a test case and build from the lessons of the Joint AI Roadmap; Engage in issues where there is an initial strong value alignment and no regulation; Work on moonshot ideas such as the “metaverse” or low-earth orbit governance; Take oversight over the special task forces it has created to tackle critical issues such as the US Inflation Reduction Act (IRA); Think more actively about how to push its efforts into multilateral forums with like-minded partners.
Topic:
Science and Technology, European Union, Trade, and Data
Political Geography:
Europe, North America, and United States of America

86. Regulating platform work: How will this impact migrant workers?

Author:
Tommaso Grossi and Andreina De Leo
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Migrant workers in the platform labour market are vulnerable to double exploitation. First, as platform workers, they cannot enjoy the protections that employment law provides. Second, they can be subject to exploitation due to their migration and residence status, especially if undocumented. This Discussion Paper analyses the impact of the European Commission’s proposed Directive on improving the working conditions and rights of platform migrant workers. The proposed Directive's positive impact will likely be restricted by migrant employees' bargaining strength and non-EU platform workers' well-founded fears of reprisal. Therefore, targeted improvements to the proposed framework are needed to remove the structural barriers faced by migrant workers when accessing the labour market. This Paper offers six recommendations on how to move forward: Strike the right balance between retaining flexibility for genuine self-employed platform workers and enhancing protection through reclassification. Guarantee transparency and ensure non-discrimination in algorithmic management. Introduce effective measures against the risk of subcontracting and ensure the liability of subcontracting chains. Facilitate the involvement of civil society organisations with specific expertise on migrants’ rights as well as trade unions involved in defending the rights of platform workers to enhance the enforcement of rights and protections. Put in place binding measures to establish ‘firewalls’ for platform migrant workers who lodge complaints in the context of inspections by the labour authorities. Promote better access to the labour market for migrant workers and consider regularisation channels for undocumented migrants as the most effective way to prevent or fight exploitation.
Topic:
Employment, Labor Market, Migrant Workers, and Exploitation
Political Geography:
Europe

87. One step closer to getting the EU Migration Pact done. One step closer to ambitious change?

Author:
Alberto-Horst Neidhardt
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
On 8 June, the Swedish Presidency put to the vote compromise texts on two vital elements of the EU asylum system: the rules governing the processing of asylum applications and those determining the state responsible for applicants, including a corresponding solidarity mechanism. A turning point was Italy getting on board after some concessions were made on how to apply the notion of safe third countries, making it easier to carry out returns to transit countries. Poland and Hungary voted against the proposals, and four other countries abstained – Malta, Bulgaria, Lithuania, and Slovakia – paving the way for the “historic” agreement. This Discussion Paper asks: What factors shaped the vote? What will future negotiations focus on, and what will be the impact of the reforms on the ground? Finally, what should come after the New Migration Pact? Trialogue negotiations are about to start, and the stakes have never been this high in EU asylum and migration policies. If the negotiations do not deliver reforms that can improve the European asylum system, it will undermine trust between member states, citizens’ confidence in the EU and its capacity to manage the migration phenomenon.
Topic:
Migration, European Union, and Asylum
Political Geography:
Europe

88. Towards a cleaner air in Europe: Time for a stronger vision and more action

Author:
Annika Hedberg, Stefan Sipka, Simon Dekeyrel, Melanie Fessler, and Danielle Brady
Publication Date:
07-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
As scientific evidence on the impact of air pollution on human life continues to grow, accepting air pollution as a given side product of our economies and activities can no longer be tolerated. This Discussion Paper highlights what the EU needs to do to recognise clean air for what it is: a necessary component for healthy societies, people and long-term economic prosperity and social well-being in Europe. A stronger vision and framework for action is needed, and this paper recommends what the EU needs to do next. Have a stronger vision and framework for action by: Adopting an ambitious and comprehensive clean air agenda; Making cleaner air an integral part of the EU’s vision and framework for greater well-being; Improving enforcement of the air quality standards and monitoring; Raising awareness about the causes of air pollution, benefits of action and measures to be taken. Provide concrete measures to address air pollution by: Ensuring all key sectors, including agri-food, industry, energy and mobility, play their role; Encouraging, empowering and enabling regional, local and citizen action.
Topic:
European Union, Public Health, and Air Pollution
Political Geography:
Europe

89. A quantum cybersecurity agenda for Europe

Author:
Andrea García Rodríguez
Publication Date:
07-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Cybersecurity plays an important role in Europe’s economic security. However, advances in quantum computing create a new set of challenges that compromise the level of security of everything happening online. Actors like the United States and some — but not all — EU member states are already taking action to counter current and emerging threats. Yet, European coordination will be necessary to ensure a harmonised and effective response. This Discussion Paper provides recommendations on how the EU could enhance its efforts to navigate cybersecurity risks. These include: 1. Establishing an EU Coordinated Action Plan on the quantum transition. 2. Establishing a new expert group within the European Union Agency for Cybersecurity with seconded national experts to exchange good practices and identify obstacles to the transition to post-quantum encryption. 3. Assisting in setting priorities for the transition to post-quantum encryption and pushing for cryptographic agility to respond to emerging vulnerabilities. 4. Facilitating political coordination between the European Commission, member states, national security agencies and ENISA to determine technological priorities and identify use cases for quantum-safe technologies. 5. Facilitating technical coordination at the EU level to address research gaps in quantum-safe technologies. 6. Exploring the use of sandboxes to accelerate the development of near-term applications of quantum information technologies.
Topic:
European Union, Cybersecurity, and Economic Security
Political Geography:
Europe

90. Soldiers out, civilians left behind: EU lessons from the evacuation of Kabul

Author:
Mihai Sebastian Chihaia and Georg Riekeles
Publication Date:
08-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
This is the introduction to a three-part Report that reviews the evacuation of Kabul, and the combined failures of NATO and the EU, amid the war in Ukraine. Even if Europe’s security debate has moved on to this bigger and more pressing challenge, the EU must heed the lessons from Kabul as it reviews its crisis management architecture and implements the Strategic Compass. The exact conditions of the Afghanistan evacuation might not be seen again for many years. Still, the EU must consider a range of other scenarios: European soldiers or citizens in danger needing evacuation from failing states or war zones, military support for humanitarian assistance and disaster relief, or even short-term stability support to governments and initial entry missions. This requires a commitment to, and building of, EU rapid deployment capacities that are effectively ready to be used, associated with appropriate crisis management structures for EU decision-making. These are the questions that have interested this project, whose examination is structured in three parts: A description of the central decision moments leading up to and during the evacuation from Afghanistan. An assessment of the main factors contributing to failure in anticipation, planning and execution. Recommendations regarding the EU’s crisis management architecture and capacity in the context of the implementation of the Strategic Compass.
Topic:
Security, NATO, and European Union
Political Geography:
Afghanistan, Europe, and South Asia

91. EU-Ukraine wartime trade: Overcoming difficulties, forging a European path

Author:
Svitlana Taran
Publication Date:
08-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
During the first year of Russia’s war in Ukraine, EU trade-liberalisation measures and EU-Ukraine Solidarity Lanes provided Ukraine with alternative export routes and allowed the country to reorient part of its exports to the EU market. However, the insufficient logistics capacity and lack of adequate coordination and cooperation during the operation of Solidarity Lanes led to tensions between Ukraine and its Eastern European neighbours. While a compromise between the European Commission and the Eastern European countries allowed the extension of temporary trade-liberalisation measures for a further year, resolving the immediate crisis, more is needed to ensure their smooth operation. This Discussion Paper provides recommendations on how the EU can further intensify efforts to facilitate Ukraine’s trade flows and prevent sudden trade disruptions and restrictions. These include: Enhance the strategic alignment and connectivity between Ukraine and the EU; Ensure security guarantees and increase the capacity of seaport corridors; Enhance coordination and unity between the Commission, EU member states and Ukraine; Avoid sudden and unjustified Solidarity Lanes' disruptions; Protect critical port and export infrastructure from Russia’s attacks; Facilitate EU-Ukraine trade liberalisation and Ukraine’s integration into the EU Single Market.
Topic:
Security, European Union, Trade Liberalization, Trade, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

92. Is the European Health Union ready for the challenges of the 21st century?

Author:
Elizabeth Kuiper and Danielle Brady
Publication Date:
09-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
The COVID-19 pandemic laid bare national health systems' unpreparedness and structural weaknesses. It also emphasised the disparities in national capabilities among European countries and the lack of a common European approach against cross-border health threats. As we enter a post-pandemic era, this Discussion Paper assesses the proposals under the European Health Union and sets out recommendations to address the identified shortcomings. These include: Adopting a more holistic approach by appointing a Vice President for Well-being. Strengthening crisis preparedness by elevating HERA to an agency. Promoting access and affordability by extending joint procurement. Strengthening the European health workforce by tackling shortages and addressing skills gaps. Mitigating the cost of inaction by increasing investment in health. Ensuring planetary health by promoting a Green European Health Union. Promoting Europe’s status as a global leader in health data by harmonising health data regulations with the European Health Data Space. Safeguarding the EU’s strategic autonomy by implementing the Versailles Declaration and strengthening supply chain resilience. Building on the EU’s Global Health Strategy by exploring global partnerships. This Paper builds on the findings of the European Policy Centre’s Task Force on the European Health Union. The multistakeholder Task Force was held under the auspices of the EPC's Social Europe and Well-being programme with the kind support of Amgen, MSD, Johnson&Johnson, SITRA and EIT Health.
Topic:
European Union, Public Health, COVID-19, and Strategic Autonomy
Political Geography:
Europe

93. The Nexus Approach: Bringing together climate, human security, and demographic change in times of permacrisis

Author:
Eleonora Milazzo
Publication Date:
10-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
The start of a new institutional cycle and the development of the European Council's Strategic Agenda will raise concerns about the EU's ability to respond to multiple problems in a more systemic and conscious style. Therefore, a holistic nexus approach that combines greater inter- and intra-institutional collaboration with strategic vision and principled leadership will be essential if the EU is to deliver on complex challenges. It will play a vital role in the EU’s ability to deal with today’s permacrisis with regard to climate change, human security, and demographic transformations. This Discussion Paper retraces the genesis of the nexus approach in humanitarian and development cooperation to draw lessons learned for the EU’s strategic thinking around systemic and deeply interconnected problems. It shows how a conscious strategic vision, more coherence, and principled leadership will be crucial if the EU is to tackle complex challenges effectively.
Topic:
Climate Change, Demographics, European Union, Crisis Management, and Human Security
Political Geography:
Europe

94. Charting a Transatlantic Approach to Russia: A Working Paper of the Transatlantic Forum on Russia

Author:
Andrea Kendall-Taylor
Publication Date:
09-2023
Content Type:
Working Paper
Institution:
Center for a New American Security (CNAS)
Abstract:
Although the United States and Europe are not directly engaged in the war with Russia in Ukraine, Moscow clearly sees itself as being at war with the West. The United States and Europe, therefore, must be prepared for a period of what is likely to be prolonged confrontation with Russia, with the war for Ukraine at the center of that confrontation. Successfully navigating this period of sustained confrontation requires continued cohesion and coordination between the United States and Europe to ensure they share a common picture of the challenge that Russia poses and the necessary response. Russia’s war in Ukraine has precipitated rapid and major changes in Europe and broader ripple effects that are altering political dynamics much farther afield. Because of the war in Ukraine, Russia itself is changing in still unknowable ways. Russian President Vladimir Putin is taking the country in a more authoritarian direction, Russian society is shifting, and the Russian military’s degradation in Ukraine means that the nature of the Russian threat is evolving. Russia’s war, therefore, requires the allies to re-examine long-held assumptions and understandings about Russia and its intentions and capacity, and it is those updated assessments that should guide the transatlantic partners’ future policy approach toward Moscow. There is no going back to the way things were with Russia prior to its invasion of Ukraine. Instead, Western allies must build on ongoing efforts to constrict and constrain the Kremlin’s ability to sustain aggression in Ukraine and more broadly beyond Russia’s borders. It also will require the development of a long-term and sustainable approach to restoring peace and stability to Europe, increasing resilience to the Kremlin’s tools and tactics, and planting the seeds for a less confrontational relationship with a future Russia. In many ways, such an approach will resemble the containment strategy first set out in the 1940s, a strategy designed to apply steady and forceful counterpressure to a regime whose paranoia and insecurities represented a clear danger to the West, just as the Putin regime does today. Each of the transatlantic allies’ preferred policy approaches will reflect their own proximity to and history with Russia, as well as current political realities within their own borders. Nonetheless, there is broad consensus within the alliance that the unprecedented cohesion and coordination among allies in the wake of Russia’s invasion must hold. To that end, this working paper provides a starting point for the development of a transatlantic approach to Russia. It articulates expectations for relations with Russia that should guide the allies’ approach, outlines the broad objectives that a transatlantic Russia policy should seek to accomplish, and in some cases more specific near-term actions the allies can take. The analysis reflects two years of dialogue that CNAS has conducted through its Transatlantic Forum on Russia (TFR). It brings together and builds on previous work facilitated by the Forum, including policy papers, op-eds, articles, a Senate Foreign Relations Committee testimony, “What Comes Next for U.S. Policy Toward Russia,” and other cited publications.1 The paper aims to provide fodder for policymakers and experts on both side of the Atlantic to debate and refine through continued dialogue, including through the future work of the TFR.
Topic:
Security, Defense Policy, Transatlantic Relations, Dialogue, and Russia-Ukraine War
Political Geography:
Russia and Europe

95. Turkey’s Rift with Sweden and Finland

Author:
Hay Ertan Cohen Yanarocak
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
Turkey’s relations with Sweden and Finland are at a crossroads, and it behooves all three countries to proceed with sensitivity to protect their national interests
Topic:
Foreign Policy, Hegemony, Conflict, and Strategic Interests
Political Geography:
Europe, Turkey, Finland, and Sweden

96. The Future of EU Blended Finance and Guarantees: An Assessment of Cooperation Strategies with Least Developed Countries in Africa

Author:
Erik Lundsgaarde
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The European Fund for Sustainable Development Plus (EFSD+) is a core element of EU development cooperation and reflects the EU’s strong commitment to deploying blended finance and guarantees as development financing tools. This discussion paper examines the EU’s intentions concerning how the EFSD+ will be integrated into geographic programmes, focussing on the least developed countries (LDCs) in Africa. Based on a review of the Multiannual Indicative Programmes (MIPs) for 30 African LDCs as well as the regional MIP for Sub-Saharan Africa covering the period 2021-2027, the paper provides an overview of funding reserved for EFSD+ implementation in geographic programmes, identifies the expected EFSD+ sectoral priorities and summarises references to development finance institutions (DFIs) as EFSD+ implementation partners. This descriptive review highlights issues for the future monitoring and assessment of the EFSD+. The paper points to uncertainty about the magnitude of the management challenge that EU institutions face in EFSD+ implementation given the difficulties of predicting the scale of guarantee-backed operations in individual countries, the lack of information on the expected volume of blended finance operations, and the limited analysis of how EFSD+ tools relate to other EU funding approaches. The paper also notes that EU institutions should be more explicit about the criteria shaping EFSD+ resource commitments to clarify relevant prerequisites for the effective deployment of EFSD+ tools. Finally, the broad thematic scope for EFSD+ use implies that knowledge about how blended finance and guarantees function and how the financing approaches interact with other interventions needs to increase throughout the EU system.
Topic:
Development, European Union, Finance, Sustainability, and Cooperation
Political Geography:
Africa and Europe

97. Towards a Seat at the Table: How an Initiative of Cities Got Their Voices Heard during Germany’s 2022 G7 Presidency

Author:
Maria Elisabeth Gronen and Yannick Sudermann
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
In the past, both researchers and policymakers have often underlined the important role cities have to play in reaching the objectives of the Paris Agreement and the 17 Sustainable Development Goals (SDGs). Meanwhile, city networks have become increasingly active in approaching international institutions and getting their voices heard. Among them are the Urban7 Group – a recently founded group of city associations from G7 countries advocating for a stronger involvement of cities in G7 policymaking. The discussion about who has a voice in the G7 and what role cities can potentially play in it is significant. The G7, despite being somewhat contentious, remains a highly relevant forum both in terms of the negative contribution of its members to global sustainability crises (such as climate change) and their collective economic capability to address the crises. In the past, references to the role of cities were largely absent from G7 official documents; this changed during Germany’s G7 presidency in 2022. Based on a document analysis and semi-structured interviews with ministry officials and city network representatives, this paper investigates how, in 2022, the Urban7 Group was involved in the G7 process, and which actors and contextual factors had an impact on the width and depth of this involvement. While the German presidency opted not to directly involve the Urban7 Group as an official G7 engagement group, the group nevertheless gained access to ministerial negotiations, in particular those of the new G7 track on urban development. The paper finds that this engagement was facilitated by pre-existing contacts with ministerial officials as well as changes in the delineation of ministries following the German federal election in late 2021 that led to changes in political leadership and the formation of a new ministry to take responsibility for urban development. The paper closes with critical reflections on the 2022 process, recommendations and potential avenues for future research.
Topic:
Sustainable Development Goals, Institutions, Cities, and G7
Political Geography:
Europe and Germany

98. The European Union and the war in Ukraine: the liberal power and its limits

Author:
Maxime Lefebvre
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
The European Union has been deeply affected by the war in Ukraine. There was talk of a "paradigm shift" in France, of a "Zeitenwende" ("change of era") in Germany, of an "end to naivety". Across Europe, a surge of sympathy and solidarity for Ukraine and its suffering has gripped public opinion, right down to the blue and yellow colours of the EU and Ukrainian flags being ostensibly displayed by Ursula von der Leyen. The European Union has given massive economic aid to Ukraine (€20 billion already paid out, €20 billion planned for 2023) and has taken in 4 million Ukrainian refugees. At the June European Council, it accepted Ukraine's membership application, as well as that of Moldova, and a prospect of accession for Georgia. By adopting sanctions against Russia that were unprecedented since those taken against Serbia at the beginning of the wars in the former Yugoslavia, it has also demonstrated its capacity for "hard power". In the wake of its common defence policy, it delivered arms to Ukraine for the first time through its €3 billion "peace facility". By almost completely depriving itself of Russian fossil fuels, it is accelerating its energy transition. This shows the enormous change that the war in Ukraine represents for the European project, which is undergoing a new existential crisis after the repeated shocks of the last few years (eurozone crisis, migration crisis, Brexit, Covid-19 pandemic), which again seems to confirm Jean Monnet's prophecy that Europe would be built through crises and would be the sum of the solutions brought to these challenges. By defending its values against Russia, the European Union is asserting itself as a "liberal power". But it remains no less fragile beyond its response.
Topic:
European Union, Geopolitics, Liberalism, Strategic Autonomy, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

99. Digital Sovereignty: European Policies, American Dilemmas

Author:
Mathilde Velliet
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Institut français des relations internationales (IFRI)
Abstract:
European digital sovereignty has been made a priority by Ursula von der Leyen’s European Commission. Due to the privileged position of American companies in the European market, Brussels’ efforts towards digital sovereignty (on privacy, antitrust, data sovereignty, etc.) are closely scrutinized by American policymakers. They often view European initiatives as “protectionist” and unfairly targeting U.S. companies. However, the American vision of European digital sovereignty has evolved in recent years under the influence of two main factors. On the one hand, awareness of the problematic effects and practices of platforms has led to a consensus on the need for reform in the digital sector. On the other hand, technological competition with China has been elevated to a priority. This vision remains fraught with contradictions, along inter-party, intra-party, inter-agency, state-federal, and issue-based fault lines. Washington’s position on anti-monopolistic practices is an illuminating example, characterized by a double discourse between a desire to reform the U.S. digital sector domestically and active diplomacy to dilute these efforts at the European level. Nonetheless, several American actors – particularly in the legislative branch – are seeking to learn from the successes and flaws of European regulations for American reform projects, such as on platform regulation or privacy. The China factor reinforces the ambiguity of the U.S.’ position. It creates new opportunities for cooperation in the face of perceived common vulnerabilities (infrastructure security, inbound investments, etc.) and autocratic definitions of digital sovereignty. However, it also raises tension and misunderstanding on the American side towards European reforms that often target American companies more than Chinese ones. Lastly, while American and European companies have adapted to the need for digital sovereignty through a range of technical and commercial solutions, the temptation of a maximalist definition of European sovereignty continues to create major stumbling blocks, particularly on the cloud.
Topic:
European Union, Regulation, Cloud Computing, Digital Sovereignty, and Data Governance
Political Geography:
China, Europe, Asia, North America, and United States of America

100. How the War in Ukraine is Changing the Space Game

Author:
Guilhem Penent and Guillaume Schlumberger
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Institut français des relations internationales (IFRI)
Abstract:
The war in Ukraine has become a showcase for the new commercial paradigm emerging in the space sector (New Space). As such, it seems to confirm the relevance of adaptation efforts led by the United States – more specifically the Pentagon – since the mid-2010s. Thus, it highlights ongoing transformations and announces potential disruptions in the exploitation of orbits, particularly in the fields of satellite connectivity and remote sensing. It also shapes future tensions, while the structuring of international relations around the two poles constituted by the United States and China raises questions about the consequences on the safe, sustainable, secure, and stable use of space. With these developments, Europe is faced with the challenge of remaining relevant.
Topic:
International Relations, European Union, Space, Satellite, and Russia-Ukraine War
Political Geography:
Russia, China, Europe, Asia, and United States of America