Search

Begin New Search Political Geography Europe

141. The potential of sovereign sustainability-linked bonds in the drive for net-zero

Author:
Alexander Lehmann and Catarina Martins
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
European Union governments have for some years issued green bonds that raise funds for climate-related spending. These bonds have been received well in capital markets but because they promise a certain use of proceeds, they complicate budget management and may not match investors’ claims of having an impact on national climate policies. Public commitments made by major investors and asset owners suggest that limiting climate transition risks and the assessment of the alignment of sovereigns with net-zero targets will now become key determinants of portfolio allocation. Yield differentials in bond markets are already beginning to reflect transition risks that arise from the inadequate pursuit by issuers of climate targets. Unlike standard green bonds, sustainability-linked bonds (SLBs) create a link between performance (outcome) indicators and the financial terms of the bonds. SLBs have grown rapidly in importance in private markets and are now being assessed by sovereign issuers. We show that sovereign SLBs could help incentivise climate policies in EU countries, and accelerate emission reductions. They would be an effective tool for signalling commitment. A common EU framework for issuance by EU countries would enhance capital market integration and the transparency of national policies, and would limit climate transition risks in EU capital markets more broadly.
Topic:
Climate Change, European Union, Finance, Carbon Emissions, and Sovereign Bonds
Political Geography:
Europe

142. Phased European Union electricity market reform

Author:
Georg Zachmann and Conall Heussaff
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
In an environment of record-breaking electricity prices driven by a gas supply shock and below-average electricity generation, reforming the design of the European electricity market is seen as a means to delink consumer costs from volatility in short-term power markets. Electricity markets should meet three objectives: fairness, optimal investment and optimal operation. The current market design has achieved these objectives to varying degrees. Faced with the unprecedented shock, the electricity system has operated well, but electricity markets have struggled to achieve fair outcomes and investments have not been driven by market-based cashflows. Further complicating market reform, the power system is being changed radically by decarbonisation. The electricity system is becoming more decentralised and digitalised, with an active demand side. These transformations will have consequences for the optimal electricity market design in the later stages of the energy transition. Reform proposals have focused on increasing the share of long-term contracts in the remuneration of generation technologies. Different long-term contracting regimes have structural implications for the functioning of electricity markets, especially in relation to the roles of the state and the market, and the responsibilities of national governments and European Union institutions. A phased approach should be taken to EU electricity market design reform. In the near-term, reform should seek to protect consumers and drive investment. An assessment should also be made of what market design will best meet the fairness, investment and operational objectives in a decarbonised system, and what the conceptual role of electricity markets should be during the transition. This process should start as soon as possible so well thought-through proposals are available when the next European Commission takes office.
Topic:
Markets, Reform, European Union, Electricity, and Green Economy
Political Geography:
Europe

143. How Europe should answer the US Inflation Reduction Act

Author:
David Kleimann, Niclas Poitiers, André Sapir, Simone Tagliapietra, Nicolas Veron, Reinhilde Veugelers, and Jeromin Zettelmeyer
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The 2022 United States Inflation Reduction Act (IRA) is a significant and welcome climate law. It also includes trade-distortive subsidies, including local-content requirements prohibited under World Trade Organisation rules – the first time the US has done this and a blow to the international trading system that could trigger protectionism in other countries. The expected IRA green subsidies are of similar size to those available in the European Union, except in renewable energy production, where EU subsidies remain far larger. However, there are important qualitative differences. Some IRA subsidies discriminate against foreign producers while EU subsidies do not. IRA clean-tech subsidies are simpler and less fragmented, and they focus mainly on mass deployment of green technologies rather than innovation. The IRA will likely harm Europe through its competitiveness effect, while it will likely benefit climate transition in Europe and most of the rest of the world. However, the magnitude of both effects is very uncertain, partly because the IRA will induce substitution away from Chinese inputs. By forcing the reorganisation of supply chains, the IRA may make the EU and other economies more competitive relative to China. It may also initially slow the green transition. But in the longer run, this effect should be outweighed by the reduction in the cost of clean tech driven by the IRA. In responding to the IRA, the EU should not just seek to protect its competitiveness relative to the US but to pursue broader aims, including competitiveness in general, speedy decarbonisation and broad foreign policy and development policy goals. These aims imply that the EU should not impose local-content requirements of its own, should not loosen state-aid rules and should not mimic the IRA’s approach to manufacturing subsidies. Rather, it should focus on boosting its structural competitiveness, formulate a trade policy response that includes reform of the international subsidies regime, and develop an instrument for EU-level subsidies that focuses on early-stage development and increasing EU resilience to trade disruptions.
Topic:
Governance, European Union, Inflation, and Trade
Political Geography:
Europe

144. Preparing for the next winter: Europe’s gas outlook for 2023

Author:
Ben McWilliams, Simone Tagliapietra, Georg Zachmann, and Thierry Deschuyteneer
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The European Union has so far weathered the energy crisis brought on by Russia’s invasion of Ukraine in February 2022 and will manage winter 2022/23 even if Russia abruptly halts all pipeline gas flows. However, preparations must be made for winter 2023-24. In particular, gas storage facilities should be 90 percent full by 1 October 2023. We assess the demand reduction needed if the 90 percent storage target is to be achieved. Our assessment takes into account EU imports, exports to refill gas storage facilities in Ukraine and Moldova, the weather and the situation in power markets, where gas demand is highly dependent on non-gas energy sources. Assuming limited Russian exports continue, and weather conditions are typical, demand up to 1 October 2023 must remain 13 percent lower than the previous five-year average. The EU should therefore extend its demand-reduction target, which is currently set to expire on 31 March 2023. Two variables will determine how easily the target can be met: 1) liquified natural gas (LNG) supply, and 2) the nature of demand reductions. Plans for rapid deployment of regasification units will alleviate concerns over LNG import infrastructure capacity. However, the EU will continue to compete internationally for LNG cargoes, and will remain vulnerable to global dynamics. Strong economic growth in China, for example, could further tighten markets. The way demand is reduced will determine the economic consequences. So far, large reductions in industrial gas demand have not been accompanied by dramatic drops in industrial output, suggesting good substitution options. However, hardly any gas was saved in the power sector last year, because of weak nuclear and hydro output. The return of French nuclear output will therefore be a huge positive. Finally, households have reduced gas demand, partly driven by warmer than usual weather. Record numbers of heat pumps were deployed in 2022, suggesting the start of a structural shift away from gas demand for heating. Policy should support a continued structural shift away from gas. This involves enabling rapid deployment of renewables and the accompanying grid infrastructure, energy-efficiency measures, help for households that want to switch to cleaner heating, and collaboration with industry to accelerate adoption of new low-carbon production methods.
Topic:
Security, Gas, Energy, Russia-Ukraine War, and Green Economy
Political Geography:
Europe

145. The Long‐​Run Effects of Immigration: Evidence across a Barrier to Refugee Settlement

Author:
Antonio Ciccone and Jan Nimczik
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
Some 280 million people around the world are first‐​generation immigrants; in Organisation for Economic Co‐​operation and Development countries, first‐​generation immigrants make up around 14 percent of the population. The economic effects of immigration have become better understood in recent decades. A new focus of research on the effects of immigration is its long‐​run impact on productivity, wages, and income. We contribute to this research by examining the long‐​run economic effects of the arrival of refugees in what would become West Germany after the end of World War II (WWII) in 1945. This period was characterized by one of the largest population movements in modern times. Between 1945 and 1949, millions of people from Czechoslovakia, Hungary, Poland, Romania, and eastern parts of prewar Germany were displaced westward. When the Federal Republic of Germany (West Germany) was founded in 1949, these refugees made up around 15 percent of the country’s population.
Topic:
History, Immigration, Refugees, Resettlement, and World War II
Political Geography:
Europe, France, Germany, and United States of America

146. The Economic Effects of the English Parliamentary Enclosures

Author:
Leander Heldring, James A. Robinson, and Sebastian Vollmer
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
In 1808, the English agriculturist Arthur Young stumbled on something interesting. He noticed that the adjacent Cambridgeshire parishes of Childersley and Hardwicke in England had startlingly different economic outcomes, even though they were divided only by a hedgerow. In Hardwicke, wheat yields were 16 bushels per acre, whereas in Childersley, on the other side of the hedgerow, they were 24 bushels per acre—50 percent higher. What could explain the difference? It wasn’t economic fundamentals, because Childersley consisted of similar soil. Rather, Young attributed the difference to the fact that the land in Hardwicke remained in “common field” while the land in Childersley was enclosed.
Topic:
Agriculture, History, Economy, Enclosure, and Parliament
Political Geography:
Europe and England

147. The Vagaries of the Sea: Evidence on the Real Effects of Money from Maritime Disasters in the Spanish Empire

Author:
Adam Brzezinski, Yao Chen, Felix Ward, and Nuno Palma
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The Columbian voyage of 1492 marked the beginning of three centuries in which vast amounts of monetary silver were shipped from America to Spain. During that time, Spain’s money supply was subjected to the vagaries of the sea. Maritime disasters that resulted in the loss of silver‐​laden ships gave rise to random contractions in the amount of money that arrived in Spain. We studied these maritime disasters to obtain estimates of the causal effects of changes in the money supply on economic output and prices.
Topic:
Imperialism, History, Economy, and Maritime
Political Geography:
Europe and Spain

148. EIU Global Outlook—a summary of our latest global views

Publication Date:
06-2023
Content Type:
Country Data and Maps
Institution:
Economist Intelligence Unit
Abstract:
No abstract is available.
Topic:
Economy, 5-year summary, and Forecast
Political Geography:
Europe, Asia, and Americas

149. EIU Global Outlook—a summary of our latest global views

Publication Date:
06-2023
Content Type:
Country Data and Maps
Institution:
Economist Intelligence Unit
Abstract:
No abstract is available.
Topic:
Economy, 5-year summary, and Forecast
Political Geography:
Europe, Asia, and Americas

150. East Vs. West: A New Cold War?

Author:
Richard Sakwa
Publication Date:
03-2023
Content Type:
Journal Article
Journal:
Turkish Policy Quarterly (TPQ)
Institution:
Turkish Policy Quarterly (TPQ)
Abstract:
Cold War has returned to dominate international politics. Expectations that the end of the Cold War in 1989 would lead to a more inclusive and comprehensive peace seems to be practically failed, and instead, by 2014, the centenary of the start of the First World War, Europe was once again wracked by conflict. On the one side, the U.S.-led Political West shaped by the Cold War remained the main protagonist. In contrast, on the other hand, a much-weakened Russia took the place of the former Soviet Union, now accompanied by a China intent on restoring its status as a great power. The article examines why a new cold war emerges again, and analyses how such a ‘Cold War II’ differs from the original.
Topic:
Cold War, Hegemony, Conflict, and Rivalry
Political Geography:
Russia, China, Europe, Asia, North America, and United States of America

151. IMperial or Colonial: The War is Fought Over The Soviet Past an A Broken Relationship

Author:
Li Bennich-Bjorkman
Publication Date:
03-2023
Content Type:
Journal Article
Journal:
Turkish Policy Quarterly (TPQ)
Institution:
Turkish Policy Quarterly (TPQ)
Abstract:
Russia is trying, through its bombs, attacks, and brutality, to erase what Ukraine was. Therefore, it is a war effort to keep remembering how Ukraine in peace looked like, how it smelled, tasted, and felt. And to never forget that this is a war against Ukraine, in its own right. Not as a representative of the West, and not as a representative of democracy. But because Ukraine is of such importance to Russia, that a break between the two is unthinkable for Putin. That was what Leonid Kravchuk, the Ukrainian president, realized already in 1991. He, and Ukrainian leaders after him, tried to protect their territory while at the same time reassuring Russia that relations could still be friendly. But Russia has never changed in a similar way
Topic:
Imperialism, Military Strategy, Colonialism, Conflict, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

152. The West Versus The Rest: The Russian Invasion Of Ukraine And The Crisis Of The "Post-Western" Order

Author:
Ziya Önis
Publication Date:
03-2023
Content Type:
Journal Article
Journal:
Turkish Policy Quarterly (TPQ)
Institution:
Turkish Policy Quarterly (TPQ)
Abstract:
The Russian invasion of Ukraine intensified the defining conflict of the new age, the conflict between democratic and authoritarian capitalism. The unified Western response to the war highlighted the revitalization of the democratic club of Western states and their allies (G7 plus). Another critical implication of the War has been that a clear divide has emerged between “the West” and “the Rest” in their reactions to the War. The Russian War on Ukraine signals the beginnings of a new phase of the post-Western world, where territorial conquests could be considered the new normal, paving the way for further military confrontations in a conflict-ridden World.
Topic:
Capitalism, Liberal Order, Conflict, International Order, and World System
Political Geography:
Russia and Europe

153. Russia, Ukraine, and Lasting Peace in Europe

Author:
Nicolai N. Petro
Publication Date:
03-2023
Content Type:
Journal Article
Journal:
Turkish Policy Quarterly (TPQ)
Institution:
Turkish Policy Quarterly (TPQ)
Abstract:
Among the many competing narratives that drive the war in Ukraine, the healing of the Ukrainian people themselves is often overlooked. That is because current Western policy overlooks the Other Ukraine, whose disagreement with the policies of the Ukrainian government since 2014 led up to this conflict. The Western response to Russia’s invasion has been tailored to punishing Russia, but not necessarily to healing the domestic tension within Ukraine. This article suggests that only a reconciliation within Ukrainecan bring lasting social harmony to Ukraine and peace to Europe as a whole.
Topic:
Security, Conflict, Peace, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

154. East-West Relations: A New Cold War?

Author:
Ilter Turan
Publication Date:
03-2023
Content Type:
Journal Article
Journal:
Turkish Policy Quarterly (TPQ)
Institution:
Turkish Policy Quarterly (TPQ)
Abstract:
The Cold War bipolar order was characterized by two camps isolated from each other, competing along four dimensions: global governance, security, economics, and ideology. The end of the Cold War, with the Soviet Bloc collapsing, did not produce a U.S.-dominated unipolar but a multi-centered world. The Americans, losing power and influence and the Russians to restore their superpower status have been trying to reconstruct bipolarity. If reconstructed China, not Russia, would likely constitute the other pole, an outcome Russia does not want. Economic relations and Chinese disinterest currently prevent a bipolar world like the one we have left behind. We may be moving toward a multi-centered world with many unpredictable aspects, including armed conflicts such an order may entail.
Topic:
Cold War, Hegemony, Conflict, and Rivalry
Political Geography:
Europe

155. The Impact of the Ukrainian-Russian War on Rwanda

Author:
Jonathan R. Beloff
Publication Date:
03-2023
Content Type:
Journal Article
Journal:
Turkish Policy Quarterly (TPQ)
Institution:
Turkish Policy Quarterly (TPQ)
Abstract:
The current Ukrainian-Russian war has far greater-reaching effects than what is typically reported in much of the international news media. The war has significantly impacted African development, which was already harmed during the global Covid-19 pandemic. With the pandemic seemingly over, African nations such as Rwanda hoped for increased economic development. However, the current war in Ukraine sparked increased fuel and food prices throughout the continent, which has impacted expected growth rates. This article reviews the war’s impact on the central African nation of Rwanda. It illustrates Rwandan anger about the economic implications of the war and the frustration from the nation’s inability to stop its effects.
Topic:
Development, Economics, Pandemic, COVID-19, and Russia-Ukraine War
Political Geography:
Africa, Russia, Europe, Ukraine, and Rwanda

156. Will Turkiye Find Herself A Place in the New World Order?

Author:
Oğul Tuna
Publication Date:
03-2023
Content Type:
Journal Article
Journal:
Turkish Policy Quarterly (TPQ)
Institution:
Turkish Policy Quarterly (TPQ)
Abstract:
Türkiye has been a challenging actor in the regional and global politics since the early 2010s, which relies on its imperial past and soft power. This paper argues that Türkiye has embraced a conventional foreign policy principle, pursuing the balance of power, to adapt to the new multipolar world in the contemporary period, which can be defined as “the new nineteenth century.” The country can only exploit its power and resilience to the utmost extent after realizing its limitations to accomplish its regional and international foreign policy goals. Then, it might emerge as a dependable crisis mediator and a significant player in world politics.
Topic:
Geopolitics, Liberal Order, Strategic Interests, and World System
Political Geography:
Europe, Turkey, and Asia

157. From East to North: New Frontiers for the EU-NATO Arctic Defence

Author:
Luca Cinciripini
Publication Date:
03-2023
Content Type:
Journal Article
Journal:
Turkish Policy Quarterly (TPQ)
Institution:
Turkish Policy Quarterly (TPQ)
Abstract:
After a geopolitical phase of peace and international cooperation, the Arctic is witnessing renewed military tensions, particularly between Russia, NATO, and European Union (EU) member countries. The multilateral governance that has so far governed the fate of the Arctic is being challenged by the confrontation between Russia and the West. In addition, climate warming opens up new trade routes. It provides access to immense deposits of raw materials, accelerating competition among actors partly by including external players such as China. To assess the future trajectory of European defense governance on the northern flank, it is necessary to view the Arctic and Baltic as a single region in light of common critical factors.
Topic:
Security, NATO, European Union, and Regionalism
Political Geography:
Russia and Europe

158. Concerns for Food Security in the Mediterranean and Turkiye

Author:
Gun Unal
Publication Date:
03-2023
Content Type:
Journal Article
Journal:
Turkish Policy Quarterly (TPQ)
Institution:
Turkish Policy Quarterly (TPQ)
Abstract:
When Russia’s invasion of Ukraine resumed after a hiatus of many months, it prompted the European Union and 17 other countries to cut off relations with Russia and Belarus. Most of the goods and food that people in the West use now come from foreign plantations and factories. The length of the war will significantly affect the extent to which it disrupts global food supplies and the intensity of the resulting food crisis. A symptom of this movement, and a warning against overreliance on Russian energy supplies, is the European Political Community. While the article’s focus is on the potential impact of the war between Russia and Ukraine on food supplies throughout the world, it also serves to remind readers that there is more to a crisis than a shortage of Russian oil and gas.
Topic:
Security, Natural Resources, Food, and Food Security
Political Geography:
Europe, Turkey, and Mediterranean

159. Exploring the Russian Perspective on the War in Ukraine: Demography's Power and Ukraine's Uniqueness

Author:
Aybars Arda Kilicer
Publication Date:
03-2023
Content Type:
Journal Article
Journal:
Turkish Policy Quarterly (TPQ)
Institution:
Turkish Policy Quarterly (TPQ)
Abstract:
Western officials and media have portrayed Russia as a rogue state that seeks to undermine the fundamental foundations of the Western lifestyle, which are based on democratic and liberal principles, especially more since the invasion of the remaining Ukrainian territories began on 24 February 2022. According to this perspective, Russia allegedly launched its strike to prevent Ukraine from joining the club of liberal nations. This move would have been a clear message to any other post-Soviet countries, further strengthening Russian control over them. It would be unfair to completely dismiss this argument, yet, justifying the simplification of the procedure and the continuation of conflict on these reasons goes much beyond presenting the facts. A thorough examination of the many issues involved is necessary to comprehend the Russian motivations for the ongoing war. This calls for an in-depth analysis of the Crimean Question, focusing on how Russia uses demographics in its foreign strategy. In addition, within the broader context of The Russian World (Russkiy Mir) Vision, it is crucial to understand the relevance of Russia’s unique perspective on Ukraine. The objective of this study is to provide an analytical framework concentrating on these apparently most visible factors for Russia’s willingness to raise tensions in Eastern Europe further and invade the remaining territory under the sovereignty of Ukraine.
Topic:
Military Strategy, Conflict, Strategic Interests, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

160. A "Civil Association" Between the European Union and Russia

Author:
Enes Ozcan
Publication Date:
03-2023
Content Type:
Journal Article
Journal:
Turkish Policy Quarterly (TPQ)
Institution:
Turkish Policy Quarterly (TPQ)
Abstract:
Contradicting political worldviews of the EU and Russia contribute to their conflictual relations much more than the attention currently given to this facet of the relations. Each of their solidarist worldviews creates an ideological wall severing their communication that is essential for possible peaceful solutions. However, shifting toward a pluralist worldview inspired by conceptual tools of the English School and Michael Oakeshott’s theory of civil association could be an alternative to the current situation of conflict. Building on this theoretical framework, we also attempt to explain the significance of Türkiye’s mediation efforts along the way and present a constructive criticism of today’s norms-based international law.
Topic:
Diplomacy, European Union, Conflict, and Regionalism
Political Geography:
Russia and Europe