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21. The Trade Effects of the Economic Partnership Agreements between the European Union and the African, Caribbean and Pacific Group of States: Early Empirical Insights from Panel Data

Author:
Frederik Stender, Axel Berger, Clara Brandi, and Jakob Schwab
Publication Date:
01-2020
Content Type:
Special Report
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
This study provides early ex-post empirical evidence on the effects of provisionally applied Economic Partnership Agreements (EPAs) on two-way trade flows between the European Union (EU) and the African, Caribbean and Pacific Group of States (ACP). Employing the gravity model of trade, we do not find a general EPA effect on total exports from ACP countries to the EU nor on total exports from the EU to ACP countries. We do, however, find heterogeneous effects when focusing on specific agreements and economic sectors. While the agreement between the EU and the Caribbean Forum (CARIFORUM), which concluded several years ahead of the other EPAs in 2008, if anything, reduced imports from the EU overall, the provisional application of the other EPAs seems to have at least partly led to increased imports from the EU to some partner countries. More specifically, the estimation results suggest an increase in the total imports from the EU only in the Southern Africa Development Community (SADC) EPA partner countries. On the sectoral level, by comparison, we find increases in the EU’s agricultural exports to SADC, Eastern and Southern Africa (ESA) and the Pacific. Lastly, in the area of manufactures trade, we find decreases of exports of the ESA and SADC countries to the EU, but increases in imports from the EU into SADC countries. While this early assessment of the EPA effects merits attention given the importance of monitoring future implications of these agreements, it is still too early for a final verdict on the EPAs’ effects and future research is needed to investigate the mid- and long-term consequences of these agreements.
Topic:
International Relations, Development, International Cooperation, Regional Cooperation, Treaties and Agreements, Manufacturing, and Trade
Political Geography:
Africa, Europe, South Africa, Caribbean, Asia-Pacific, and European Union

22. China, Italy and COVID-19: Benevolent Support or Strategic Surge?

Author:
Francesca Ghiretti
Publication Date:
03-2020
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
The bilateral relationship between Italy and China is back in the spotlight one year after the signature of the Memorandum of Understanding (MoU) on China’s Belt and Road Initiative. To date, Italy is the second hardest hit country by COVID-19 pandemic after China. Despite strict measures in place to limit the crisis, numbers keep rising, placing the national health care system under severe strain.
Topic:
Health, Bilateral Relations, Foreign Aid, and Propaganda
Political Geography:
China, Europe, Asia, Italy, and European Union

23. From Strategic Autonomy to the Internationalization of the Euro: Europe's Challenges and the Impact of the COVID-19 Crisis

Author:
Nicola Bilotta and Alissa Siara
Publication Date:
04-2020
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
One of the key priorities of the new European Commission is to enhance the EU’s geopolitical credentials and “learn to use the language of power”, as stated by the incoming EU High Representative Josep Borrell. The EU’s ambition is two-fold: to increase the Union’s ability to project power and influence at the global level, including through increased integration and coordination among member states, and secondly to enhance the EU’s strategic autonomy from the US in the political, military and economic domains. Both objectives, ambitious in the best of circumstances, are today under severe strain by the COVID-19 crisis. Implications will be long-lasting and multidimensional, and for Europe, its impact will have a direct bearing on its ambition for strategic autonomy, touching each of the three pillars outlined above.
Topic:
Regional Cooperation, Geopolitics, Economy, Autonomy, and Coronavirus
Political Geography:
Europe and European Union

24. The COVID-19 Pandemic and European Security: Between Damages and Crises

Author:
Alessandro Marrone
Publication Date:
04-2020
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
The COVID-19 pandemic will negatively affect the defence field from a budgetary, industrial and politicostrategic point of view, particularly in Europe. Depending on the pandemic’s duration, its economic consequences and national and EU responses, effects may range from contained damages to a much wider European security crisis.
Topic:
Security, Defense Policy, Crisis Management, and Coronavirus
Political Geography:
Europe and European Union

25. Time for a European Climate and Sustainable Development Bank

Author:
Daniele Fattibene
Publication Date:
04-2020
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
The United Nations’ 2030 Agenda for Sustainable Development stands at a crossroads. While Sustainable Development Goals (SDGs) have progressively entered the political discourse and agendas of numerous states, without long-term financial investments, building a more just and sustainable future will remain little more than a rhetorical embellishment.
Topic:
Climate Change, Development, United Nations, and Sustainable Development Goals
Political Geography:
Europe and European Union

26. Resilience Is Dead. Long Live Resilience?

Author:
Elena A. Korosteleva and Irina Petrova
Publication Date:
04-2020
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
Resilience has recently emerged as a possible solution to address the increasing dysfunctionality of national and global governance, strengthening its ability to deal with the frequenting crises and the adversity of VUCA – the more vulnerable, uncertain, complex and ambiguous – world around us.
Topic:
Politics, International Relations Theory, Institutions, Coronavirus, and Resilience
Political Geography:
Europe and European Union

27. Between God and the Sugar Dates: Lessons for a "Geopolitical" EU from the US–Iran Crisis

Author:
Tommaso Emiliani
Publication Date:
04-2020
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
The killing of top Iranian General Qasem Soleimani by a US drone strike on 3 January 2020, followed by the Iranian retaliation on US military bases in Iraq, left many Europeans wondering how – if at all – the European Union can foster de-escalation in the Middle East. The EU is presently stuck between a deepening strategic rift with its US ally and its inability to advance its independent interests and policies vis-à-vis Iran. It is now clear that Europe cannot protect its relations with Washington while also salvaging the Joint Comprehensive Plan of Action (JCPOA), or Iranian nuclear deal. Borrowing from an old Persian proverb, Europe cannot have both God and the sugar dates.
Topic:
Sanctions, Military Affairs, Trade, Transatlantic Relations, and Coronavirus
Political Geography:
Europe, Iran, Middle East, United States of America, European Union, and Gulf Nations

28. A Tale of Two Unions: Africa, Europe and a Pragmatic Investment in Multilateralism in Times of COVID-19

Author:
Luca Barana
Publication Date:
04-2020
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
The European Commission’s Joint-Communication “Towards a Comprehensive Strategy with Africa”, published on 9 March 2020, envisioned the beginnings of a new and more equal partnership with the African Union (AU).[1] Meanwhile, COVID-19 has had an unprecedented disruptor effect on the world scene. Its impact dramatic and long-lasting, the crisis may also be an opportunity to move beyond policy principles and actually consolidate the EU–AU relationship. The Commission aspires to structure this new course of EU–AU relations around five thematic partnerships and ten actions so as to concretely step up cooperation. A common thread emerging from the Communication is the need to strengthen multilateralism and the rules-based international system.
Topic:
Migration, United Nations, Multilateralism, and Coronavirus
Political Geography:
Africa, Europe, European Union, and African Union

29. COVID-19: Which Effects on Defence Policies in Europe?

Author:
Alessandro Marrone and Ottavia Credi
Publication Date:
04-2020
Content Type:
Special Report
Institution:
Istituto Affari Internazionali
Abstract:
The crisis caused by the COVID-19 pandemic will have consequences on every aspect of the European societies, including the defence sector. The extent to which it will impact the military budgets is heavily discussed, with optimists trusting in slightly decreased investments and pessimists anticipating severe downturns. The fulfilment of NATO capability goals will be at stake, while allies will bring further diversified security needs to the Alliance’s agenda. The EU will have to cope with both pandemic and economic recession for the sake of its own security and stability, without sacrificing the European Defence Fund which could rather be part of a EU-wide plan for industrial and economic re-launch. This report summarizes the main findings of the IAI webinar hold on 8 April 2020 and participated by 22 experts and practitioners from Italy and other European countries.
Topic:
Defense Policy, NATO, Military Spending, Transatlantic Relations, Coronavirus, and Defense Industry
Political Geography:
Europe and European Union

30. Beyond Coronabonds: A New Constituent for Europe

Author:
Nicoletta Pirozzi
Publication Date:
04-2020
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
Every era has its symbols. In 1984, Mitterrand and Kohl held hands on the battlefield in Verdun, coming to symbolise the importance of peace in the pursuit of European integration. Today, in times of COVID-19, the so-called “Coronabonds” could have emerged as the symbol of a new Europe, one that is ready and able to do what it takes to collectively overcome the present crisis. Yet, what some member states consider an indispensable emblem of European solidarity, namely debt mutualisation to face an unprecedented symmetric crisis brought about by COVID-19, is regarded by others as an ultimate excuse for moral hazard. As a result, Europe could end up with a politically more digestible European Fund, as proposed by Commissioners Paolo Gentiloni and Thierry Breton, designed to issue long-term bonds.[1] Or, as outlined by the Eurogroup, a Recovery Fund that is “temporary, targeted and commensurate” to the extraordinary costs of the current crisis, helping to spread them across time.
Topic:
Financial Crisis, Governance, Finance, Economy, and Coronavirus
Political Geography:
Europe and European Union