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201. Maximising EU Concessional Finance for Greater Leverage and Impact: An Options Spread

Author:
Mikaela Gavas, Samuel Pleeck, Andrew Rogerson, San Bilal, and Karim Karaki
Publication Date:
03-2024
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
Already constrained by the economic aftershocks of COVID-19, the impact of the war in Ukraine, and the food and climate crisis, low-income countries and lower-middle-income countries now face a combination of soaring debt and high interest rates. Confronted with insufficient liquidity to respond to these challenges and unable to access capital markets, they need additional concessional finance, in the form of grants and soft loans. The European Union (EU) already provides concessional finance, but it is not nearly enough to respond to their growing needs. With European budgets under more strain than ever, this paper puts forward the case for finding ways to maximise the overall efficiency and impact of European concessional finance and in doing so, better articulating and combining grants and concessional loans in its support and investment toolbox. To remain relevant and maintain relationships and influence with partner countries–even more in a world characterised by the polycrisis and geopolitical fragmentation–the EU will have to step up its game when it comes to providing more strategic concessional finance. The paper sets out six complementary and non-mutually exclusive options for maximising EU concessional finance with a view to a strategic set of decisions to be made for the next EU Multiannual Financial Framework.
Topic:
Development, European Union, Financial Institutions, and Sustainable Development
Political Geography:
Europe

202. The EU’s Global Role: A Third Node of Power

Author:
Mikaela Gavas and W. Gyude Moore
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
In recent years, a quest for economic security and strategic autonomy have come to define the European Union (EU)’s politics. The need to compete globally for the finite resources required for the green and digital transitions, and rivalries between the US and China for global dominance, are all driving this agenda. And while the COVID-19 pandemic and the war in Ukraine highlighted countries’ global dependencies, deepening geopolitical tensions have brought national security considerations to the fore. At the same time, the rise of populist parties across Europe is fuelling calls for countries’ national interests to play the defining role in development cooperation. This presents a challenging environment for EU development cooperation. Caught up in this new paradigm, development cooperation is increasingly viewed as a lever of hard power and an instrument of influence which can be used to reinforce Europe’s strategic autonomy and economic security. With European interests central to EU development cooperation strategy, the climate of distrust between Europe and its partners is being heightened, given the not-so-distant memory of European vaccine “nationalism” during the COVID-19 pandemic, the different standards some Europeans apply with regards to fossil fuel exploration and the negative repercussions the Green Deal will have on African countries’ growth and development. However, shaping EU development policy in this fashion, with geostrategic interests at its forefront will be more detrimental than helpful for the EU in the medium to long-term, and carries the risk of fuelling conflicts of interest with partners. Geo-economic fragmentation and a trust deficit when it comes to governments and societal institutions are threatening our ability to address pressing global challenges. In Africa, this fracturing is evident in the plethora of Africa plus-one summits, for example, the first ever Korea-Africa summit. Instead of using multilateral vehicles to address development cooperation, this new environment has spawned a diversion of resources toward more bilateral initiatives, where the geopolitical returns are direct and attributable. In this piece, we propose a reset of the EU’s international relations narrative and “third way” for the EU to position itself as a global development player.
Topic:
International Relations, Development, European Union, and Green Transition
Political Geography:
Europe

203. Transforming EU Climate Leadership through CBAM Reform

Author:
Ian Mitchell and Beata Cichocka
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
The EU’s Carbon Border Adjustment Mechanism (CBAM) incentivises key countries, including China and India, to assess their policies around industrial carbon emissions. But CBAM faced criticism from low-income countries at COP28, with evidence suggesting that its economic impact on Africa could be as much as three times the amount of EU aid to the continent. While major emerging economies should face the full incentives from CBAM, lower income countries require a different approach. The Commission must review CBAM's impact on least developed countries (LDCs) by 2025. We propose it collaborates with the Council and Parliament to reform CBAM in two ways: Implement a longer transition period for LDCs, following the principle of "Common but Differentiated Responsibilities" Revisit the European Parliament’s proposal to allocate additional finance to the most vulnerable countries, by proposing that CBAM revenues be used to finance climate-related loss and damage, amounting to around 1 percent of the Commission’s annual budget by 2030. These reforms would show the EU is listening to partner countries and provide a new and additional source of climate funding. This would transform its reputation and strengthen its international negotiating position.
Topic:
Climate Change, Development, European Union, Carbon Emissions, and Carbon Border Adjustment Mechanism (CBAM)
Political Geography:
China, Europe, and India

204. The Gaza War and Europe: Can the Continent Play a Positive Role in The Middle East?

Author:
Efraim Inbar
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
Europe borders the Middle East, and the continent cannot insulate itself from events in this region. Its options, however, are limited: Europe is hardly a strategic actor with the political will and requisite capabilities to intervene. Moreover, the Middle East is not easily amenable to foreign intervention. Nevertheless, Europe cannot ignore developments that impact its national security and if it concentrates its efforts, it may have a modest input in ensuring that pro-stability forces gain the upper hand.
Topic:
Foreign Policy, Diplomacy, Humanitarian Crisis, and 2023 Gaza War
Political Geography:
Europe, Middle East, Israel, Palestine, and Gaza

205. Israel, Europe, and the Russia-Iran Axis

Author:
Emmanuel Navon
Publication Date:
06-2024
Content Type:
Policy Brief
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
With the world divided between a U.S.-led order of democracies on the one hand, and a cartel of aggressive autocracies – China, Russia, Iran and North Korea – on the other, that is challenging America and its allies, Europe has an important role to play in Israel’s war against Iran and its proxies.
Topic:
National Security, Autocracy, Proxy Groups, and Regional Politics
Political Geography:
Russia, Europe, Middle East, Israel, and Palestine

206. Why Kosovo institutions must urgently enhance the security of its waters? Building critical infrastructure resilience

Author:
Jon Limaj and Mentor Vrajolli
Publication Date:
12-2024
Content Type:
Policy Brief
Institution:
Kosovar Centre for Security Studies (KCSS)
Abstract:
In recent years, threats to critical infrastructure have increased. This is primarily due to growing global threats and the digitalization of key operational processes, including those in the water sector. Consequently, the Government of Kosovo, in collaboration with relevant stakeholders, has placed significant emphasis on ensuring resilience in this sector. While Kosovo has legislative frameworks in place on protecting critical infrastructure, including the Water Law and Law on Critical Infrastructure, there are gaps in implementation. Furthermore, there is a lack of full alignment with the EU Water Framework Directive. Comprehensive integration and legislative amendments are necessary for effective water management.
Topic:
Security, Water, Infrastructure, and Resilience
Political Geography:
Europe and Kosovo

207. Strengthening Protection Mechanisms of Gender Based Violence in Kosovo

Author:
Adelina Hasani and Vesa Kroçi
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
Kosovar Centre for Security Studies (KCSS)
Abstract:
Femicide and insufficiently addressed gender-based violence represent major security concerns in Kosovo, yet they have not been adequately prioritized as immediate issues by the full spectrum of state mechanisms. Activists in Kosovo have consistently demanded that gender-based violence be declared and treated a national emergency, a plea that state institutions have not taken into consideration. Within just five days in April 2024, two women in Kosovo were victims of femicide, murdered by their partners. Gender-based violence and femicide pose significant security threats to women. From January to March 2024, 698 cases of gender-based violence were reported to the police, compared to 2,638 cases reported throughout 2023. Despite the high number of reported cases, many cases remain unreported due to the complex socio-economic challenges’ women face across different regions of Kosovo. There are several reasons highlighting the inadequacies in addressing the prevention of gender-based violence. Recent research conducted by the Kosovo Centre for Security Studies elaborates on several problems concerning gender-based violence in Kosovo. There are some of them: Women’s trust in security and justice institutions is critical for reporting gender-based violence. However, the leniency of the judicial system towards perpetrators and the prolonged duration of domestic violence cases discourage women from seeking justice. There is a lack of sensitivity and expertise among law enforcement authorities, especially in rural areas, to handle genderbased violence cases effectively. The absence of property ownership among women is a significant barrier to their economic independence and security. Despite legal provisions for equal property rights, women often relinquish their inheritance, leaving them with limited resources and options when facing violence. This lack of financial autonomy leaves women in a troubling situation where they may feel compelled to return to their abusers. Many women withdraw their complaints of gender-based violence due to third-party interventions, often under family pressure. There is a tendency among family members and officials to blame women for reporting abuse, further discouraging them from seeking help. Women reporting domestic violence often endure double discrimination from institutions, society, and their families. There is limited information about rights and available support services for victims of gender based violence in Kosovo. The lack of awareness intensifies feelings of vulnerability and exacerbates the sense of helplessness when seeking solutions. There is also insufficient investment in support services for victims and consequences for perpetrators. Insufficient and unstable funding for shelters poses a significant challenge to supporting survivors of domestic violence. Without adequate resources, shelters struggle to maintain essential services and meet the increasing demand for their services. There is also a lack of sustainable institutional support for victims, leading some to return to their abusers. Addressing gender-based violence and femicide requires a holistic approach from all institutions involved in handling cases arising from diverse circumstances. In this analysis, we aim to examine the shortcomings in implementing protection orders for victims and the physical protection of shelters and the Centre for Social Work (CSW) from perpetrators.
Topic:
Security, Women, Gender Based Violence, Protection, and Femicide
Political Geography:
Europe and Kosovo

208. A discussion of Kosovo- NATO relations and prospects for greater cooperation

Author:
Leureta Lumi
Publication Date:
06-2024
Content Type:
Policy Brief
Institution:
Kosovar Centre for Security Studies (KCSS)
Abstract:
Membership of Kosovo in the North Atlantic Treaty Organization (NATO) is regarded as a national interest across Kosovo’s political spectrum and receives substantial public support. According to the 2022 Security Barometer by the Kosovar Centre for Security Studies (KCSS), an overwhelming 92 percent of all citizens in Kosovo are in favor of joining NATO. This support is even more pronounced among the Kosovo Albanians, where the approval rate soars to 99.5 percent. This is the only objective in Kosovo that enjoys this level of public backing. Kosovo’s Security Strategy 2022-2027 states ‘The irreplaceable aim of the Republic of Kosovo is NATO membership and integration as the mechanism that provides long-term strategic security’. NATO’s leading role in ending the 1999 war and averting a potential genocide in Kosovo is widely seen as a major reason behind the strong public support for the alliance. However, this sentiment has been reinforced by recent developments, such as the Russian invasion of Ukraine in February 2022, intensifying Kosovo’s appreciation for NATO membership. The urgency for Kosovo to join NATO is further heightened by the unresolved bilateral disputes with Serbia and the increasingly adversarial positions of Serbian President Vucic towards, as shown by a recent statement from him, which implies that on Kosovo, Serbia should learn from Azerbaijan, adding that: “They waited 27 years for special geopolitical circumstances”. The Banjska terrorist attack in September 2023, which is believed to have been orchestrated with the support of Serbian security institutions and in cooperation with Russia, reinforces the perception that Serbia sees a military solution to the “Kosovo problem”. Although Kosovo benefits from NATO’s protection via the KFOR mission, NATO’s stance on Kosovo remains status-neutral, with no significant advancement in NATO-Kosovo political relations since 2016. This paper delves into these challenges and seeks to explore the obstacles Kosovo faces on its path to NATO membership. Accordingly, this paper includes an analysis of the current NATO-Kosovo relations, options for Kosovo to enhance these relations and overcome key challenges, including exploration of the Partnership for Peace and the Membership Action Plan (MAP), a review of NATO accession processes in Albania, Montenegro and North Macedonia, and concluding remarks with recommendations.
Topic:
NATO, Public Opinion, Regional Security, and Security Cooperation
Political Geography:
Europe and Kosovo

209. Russian Nuclear Calibration in the War in Ukraine

Author:
Heather Williams, Kelsey Hartigan, Lachlan MacKenzie, and Reja Younis
Publication Date:
02-2024
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
Russian nuclear threats have cast a long shadow over the war in Ukraine. As the conflict enters its third year, it is crucial to understand the objectives of Russia’s nuclear signaling at various stages and the effectiveness of U.S. and allied responses thus far. To explore these issues, the CSIS Project on Nuclear Issues recently compiled a database and released a digital report Russian nuclear narratives and their evolution during the first 18 months of the war.[1] This brief builds on that work and finds that Russian officials noticeably calibrated their nuclear signaling at key points in the war. It also concludes that the risks of nuclear use will likely rise if Russia faces significant battlefield setbacks in the future or the conflict expands in new or unexpected ways. Accordingly, Washington should work to maintain international pressure against nuclear use in Ukraine while combatting narratives that downplay or rationalize Russia’s nuclear threats.
Topic:
Security, Nuclear Weapons, and Russia-Ukraine War
Political Geography:
Russia and Europe

210. Addressing Arctic Vulnerabilities: Lessons from Ukraine

Author:
Jonas Vidhammer Berge
Publication Date:
12-2024
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
The Arctic is quickly becoming a theater of global competition—a development that has accelerated since Russia’s 2022 invasion of Ukraine. In order to protect critical undersea communications infrastructure, decrease intra-alliance dependency on U.S. space-based capabilities, and deter Russian gray-zone tactics, NATO-aligned Arctic states—the United States, Canada, Denmark, Finland, Iceland, Norway, and Sweden—must enhance situational awareness of these vulnerabilities. By applying lessons learned from the war in Ukraine on how technological advancements can shape military strategy and the operational environment, specifically with regards to resilient space capabilities, cost-efficient unmanned systems, and rapid procurement processes for evolving technological capabilities, Arctic states can improve both deterrence and potential warfighting in the region.
Topic:
International Security, Geopolitics, Strategic Competition, Vulnerability, and Russia-Ukraine War
Political Geography:
Europe and Arctic

211. A Contact Group for Ukraine?

Author:
Walter Kemp
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
The Geneva Centre for Security Policy
Abstract:
The high-level Ukraine peace summit hosted by Switzerland on 15 and 16 June underlined the need for finding a path to peace. But thus far, proposals made by several countries, including Ukraine, have not stopped the fighting. Since Russia’s aggression against Ukraine has implications for international peace and security, perhaps it is time to consider the formation of an international contact group to formulate a more coherent approach to de-escalating the conflict between Russia and Ukraine and nudge the parties towards peace. Since the late 1990s it has been common to form international contact groups in times of crisis. Such groups can bolster coordination among different international actors, forge common positions and exert leverage on the parties to reduce tensions. Indeed, in the past 20 or so years (since the beginning of the 21st century) there have been more than 20 such groups. Some of the more high-profile examples include contact groups on the Balkans, Sierra Leone, Liberia, Syria, Afghanistan, Libya, the Great Lakes region of Africa, and for dealing with piracy off the coast of Somalia. These ad hoc coalitions with nonbinding rules are designed to enhance cohesion, cooperation and coordination to improve conflict or crisis management. Considering the seriousness of the war in Ukraine and the fact that many countries have a stake in reducing tensions, it would seem necessary and urgent to form an international contact group on Ukraine.
Topic:
Diplomacy, International Cooperation, Crisis Management, and Russia-Ukraine War
Political Geography:
Europe and Ukraine

212. Perspectives for the War in Ukraine

Author:
Thomas Greminger
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
The Geneva Centre for Security Policy
Abstract:
There is no doubt that the military aggression against Ukraine unleashed by President Putin on 24 February 2022 represents the most significant disruption of security and peace in Europe since the end of World War II. The war has far-reaching repercussions affecting practically every aspect of our lives and impacting far beyond the European continent. In this article, I will first briefly assess the situation on the battlefield. I will then offer a few scenarios for how the conflict could evolve in the coming months. Afterward I will mainly focus on what has been called “Plan B”-thinking in the expert community: What if the official narrative of both sides – a military victory – does not materialize? What if the parties, exhausted by a war of attrition, decide to return to the negotiation table – or the high-intensity warfare transitions to low-intensity conflict leading to a de facto cessation of hostilities? What could a negotiated or a de facto ceasefire look like? And what issues would have to be negotiated if – in the most optimistic scenario – the parties decide to proceed from a ceasefire to a conflict settlement process?
Topic:
Conflict Resolution, Security, Armed Conflict, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

213. The European China Strategy to Enhance Economic Security

Author:
Hyun Jean Lee
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
The recent strategy change of the European countries toward China has identifiable triggering factors such as the continuation of high growth in the Chinese economy, rising status of China in the international community, and China’s FDI expansion. The West has criticized the Chinese Communist Party’s dealing with human rights issues and media control, which was further aggravated by China’s pro-Russian stance upon the outbreak of the Russian-Ukrainian war. Eventually, the European countries responded with confrontational strategies against China. This study analyzes these recent de-risking methods of the EU and four European countries – i.e., Germany, France, United Kingdom, and Poland – regarding economic relations with China. Finally, the Brief concludes with an assessment of the impact of the recent changes in Europe’s China strategy on Korea and policy recommendations.
Topic:
Human Rights, Foreign Direct Investment, International Community, Economic Security, and Russia-Ukraine War
Political Geography:
China, Europe, and Asia

214. Competing for Talent: What Role Can Employment- and Skills-Based Mobility Projects Play?

Author:
Kate Hooper and Ravenna Sohst
Publication Date:
04-2024
Content Type:
Policy Brief
Institution:
Migration Policy Institute (MPI)
Abstract:
Many countries in Europe and beyond are contending with acute labor shortages and looking to immigration as one policy option to sustain and support economic growth, alongside efforts to retrain local workers and improve productivity. At the same time, lower- and middle-income countries with fast-growing populations are exploring ways to better link their nationals with economic opportunities at home and abroad. Legal migration pathways that connect unemployed workers in such countries with hard-to-fill jobs abroad are thus gaining interest in both origin and destination countries. To date, however, employment- and skills-based mobility projects have encountered challenges in fully realizing their anticipated benefits. These include difficulties building up project infrastructure and securing private-sector engagement. As a result, many have facilitated the movement of small numbers of people. This policy brief explores the case for employment- and skills-based mobility projects, looking at how different types of cooperation can support legal migration pathways, as well as common challenges these projects face. The brief also discusses strategies for achieving economies of scale and these projects' unique value—including the chance they offer to test new migration corridors or new recruitment models, while broadening cooperation opportunities with partner countries.
Topic:
Labor Issues, Employment, Mobility, Skills, and Competition
Political Geography:
Europe

215. Storage and Networks: the Achilles’ heel of Renewable Energy Sources expansion

Author:
Michalis Mathioulakis
Publication Date:
04-2024
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
This paper analyses the elements that compose two of the structural vulnerabilities of the European energy system and undermine the efforts in Greece and the rest of the European Union to further increase the penetration of Renewable Energy Sources (RES) successfully in their energy mix and accelerate the energy transition. The production of electricity from Renewable Energy Sources in Greece in 2023 as a share of total electricity production was among the highest in Europe, while also throughout the EU the shares of RES increased. However, as RES shares increase, their stochasticity in electricity production can create problems for the stability of the electricity grid since, on a global level, there is a deficit of mature storage technologies and a lack in adequate volume of electricity distribution and transmission network infrastructure. The costs required to cover these deficits are currently passed on to the European consumers in the form of regulated, non-competitive charges, for which consumers cannot freely choose their provider. This issue constitutes a regression from the European structure of a free and competitive common European market, a relapse that increases together with the growing shares of regulated costs in the energy bills of European citizens. However, without sufficient new investments in networks and electricity storage, the EU faces the risk of system instability. In addition, administrative restrictions in production for grid-ready RES systems, deem new investments in RES economically non-viable and carry the additional risk of disinvestment from new RES projects. In this complex environment of interconnected issues and modular problems, it is now crucial to approach the decarbonisation effort through the realization that painful compromises need to be made at an energy policy level, since the future of tackling climate change needs to be hybrid and, unfortunately, not completely green if we want it to be resilient and sustainable in the long term.
Topic:
Climate Change, European Union, Renewable Energy, Sustainability, and Energy Security
Political Geography:
Europe

216. Looking for seasonal workers: Greece’s search for migrant labor

Author:
Angeliki Dimitriadi
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The present report deals only with the recruitment/invitation of third-country nationals through bilateral agreements as a framework for addressing labor shortages. In other words, we focus only on the invitation of foreign workers, with an emphasis on skilled and low-skilled labor, rather than Blue Card holders. The report forms part of a larger project looking into legal labor migration. The first publication presented a snapshot of practices across select member states, while this paper zooms in on Greece to explore the practical issues that have arisen in the context of the attempt to recruit foreign workers. The emphasis on partnerships also reflects the Greek government’s current policy priority in addressing labor shortages, with more agreements expected in the next few months. Thus, it is a good time to pause and take in where things stand as regards implementation and future planning, and what issues require further attention. Through a discussion and analysis of current practices and issues, the report seeks to highlight two things: a pattern of responding to labor shortages by the Greek state, which tends to replicate previous practices without ‘daring’ to be more creative. the bureaucratic obstacles (which relate in particular to the process of inviting foreign workers works—metaklisi) that continue to hamper the implementation of these partnerships. Finally, the report incorporates a series of recommendations based also on consultation with different stakeholders[1] as well as with individuals who have been involved in the metaklisi process.
Topic:
Migration, Labor Issues, Partnerships, and Migrant Workers
Political Geography:
Europe and Greece

217. Leveraging EU industrial policy to reshape Greece’s productive model

Author:
Aggelos Tsakanikas and Petros Dimas
Publication Date:
04-2024
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
This policy brief explores the evolution and goals of industrial policy in the EU, aiming to identify the ways in which these recent developments can provide significant opportunities for Greece. In this context, we outline some of the key features of the fragmented landscape of Greek industrial strategies and suggest future directions through which the country can leverage the current momentum of industrial policy in the EU to pursue the restructuring of its productive base along the lines of sustainability, the twin (green and digital) transition, and European strategic autonomy. Since the Great Recession of 2008, the EU has openly supported coordinated and complementary policies in an effort to tackle structural deficiencies that render its productive systems vulnerable. The pandemic crisis, the Ukrainian war, and the general call for action against climate change have highlighted the need for the further reconfiguration of industrial development across the world along the lines of inclusion, sustainability, and resilience. The EU New Industrial Strategy and its update in the aftermath of the pandemic provide blends of horizontal and vertical actions that target resilience in the Single Market, EU strategic autonomy, and the acceleration of the green and digital (twin) transitions. In response to the energy crisis, the EU Green Deal Industrial Plan for the Net-Zero Age has been promoted to ensure that sustainable competitiveness goals are on track with the recent geopolitical developments. Greece has already aligned its strategic planning to the EU’s industrial policy objectives through a dedicated National Industrial Strategy and other strategic documents that target innovation, the green transition and sustainable development, and digitalization across key industrial ecosystems and value chains. Key initiatives, such as industrial alliances and Important Projects of Common European Interest (IPCEIs), major reforms through dedicated Acts, and an unprecedented wealth of financing and regulatory instruments outline significant opportunities of transformative potential Greece’s productive model. The country must meet the challenges of implementing its ambitious action plans, while simultaneously monitoring, evaluating, and updating its strategic orientation against the backdrop of a volatile global market environment. Different strategies should be integrated into a unified system of policies that creates a clear connection between, and path dependence for, different objectives, diverse market reforms and policy interventions.
Topic:
Industrial Policy, European Union, Sustainability, Strategic Autonomy, Green Transition, and Digital Transition
Political Geography:
Europe and Greece

218. The Greek Economy a Decade Later – Constantinos Michalopoulos

Author:
Constantine Michalopoulos
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The Greek economy has made a remarkable comeback from a decade ago, to the point that the Economist rated it to have performed the best in the OECD in 2023. This paper reviews Greek economic performance over the last ten years and identifies a number of major challenges that remain, despite the progress made. The last part presents an action plan for the next decade in four priority areas: the labor market, social services, migration and savings-investment. In these areas, reforms are urgently needed, if Greece is to achieve sustainable and equitable growth. The analysis concludes that, because of the continued debt burden, successful reforms will require the Greek government to maintain a delicate and difficult balance between fiscal sustainability and taking the necessary measures to support green and inclusive growth.
Topic:
Reform, Economy, Fiscal Policy, Labor Market, and Economic Crisis
Political Geography:
Europe and Greece

219. European Migration Policy: Recent Developments and the Way Forward

Author:
Evgenia Vella
Publication Date:
06-2024
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
In light of the challenges posed by demographic shifts, skill shortages and rapid technological advances, European policymakers should prioritize targeted immigration policies. High-skilled immigrants contribute directly to innovation and economic growth, while low-skilled immigrants play essential roles in sectors like agriculture, healthcare, and services. Striking the right balance is essential for sustainable development. The EU’s recent policy changes, as outlined in the New Pact on Migration and Asylum, signal a shift toward a more comprehensive and coordinated approach. However, implementation challenges remain. Greece can draw lessons from the experiences of other EU member states. Tailoring policies to address regional disparities, fostering integration, and leveraging immigrant skills are critical steps for Greece’s migration strategy.
Topic:
Demographics, Development, Migration, Labor Issues, and European Union
Political Geography:
Europe

220. The CAP between a rock and a hard place: its new challenges and uncertain prospects

Author:
Tassos Haniotis
Publication Date:
10-2024
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The Common Agricultural Policy (CAP) is currently at a crossroads of a changing world environment which impacts demand (food inflation), supply (energy and input costs) and agri-food trade (geostrategic tensions). EU policies have to address the conundrum of having to simultaneously contribute to mitigating climate change and contributing to food security by accepting that both are global problems and require global solutions. CAP ongoing policy orientation aims at increasing its environmental performance while retaining its economic and social achievements, but excessive targets set by the Farm to Fork Strategy and the impact of changing market conditions brought tensions in the debate between on food security and climate action with respect to priorities on primary agriculture. Higher food costs increasing income inequalities put households in the developed world at a risk of changes in consumer behaviour that are driven by forces exogenous to their tastes and preferences. Addressing misperceptions about the role of productivity, science and trade will impact on how the EU assesses, in a more balanced way and addresses its strengths and weaknesses in the field of agriculture. Despite clear progress of Greek agriculture in recent years three persistent weaknesses of Greek agriculture relate to an uneven and untargeted distribution of direct payments the underestimation of the role of extensive livestock or the absence of a functioning Farm Advisory System.
Topic:
Agriculture, European Union, Food Security, Economy, and Trade
Political Geography:
Europe and Greece

221. The von der Leyen Commission 2.0: Institutional Features, Portfolios and Mission Letters

Author:
Spyros Blavoukos and Dimitrios Kollias
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The policy brief outlines the strategic vision and structural reorganisation of the European Commission under Ursula von der Leyen’s second term. Emphasising “Security, Prosperity, and Democracy,” von der Leyen’s Commission 2.0 consolidates power through a streamlined, centralised structure with six Executive Vice-Presidents, aiming for a more responsive and efficient EU. Each Commissioner has been assigned specific, often overlapping, missions focusing on key areas such as the Green Deal, technological sovereignty, and European defence. This centralisation marks a shift toward a more presidential model, raising concerns about governance complexity and missed opportunities for deeper citizen engagement and clearer portfolio distinctions. At the same time, it constitutes the core strategic approach to addressing the EU’s complex priorities. Vision: President Ursula von der Leyen prioritises “Security, Prosperity, and Democracy,” aiming for a responsive, flexible, and efficient European Union. New Commission Structure: The von der Leyen Commission 2.0 introduces a centralised structure with six Executive Vice-Presidents, removing traditional Vice-Presidents to streamline leadership. Mission Letters: Each of the 26 Commissioners-designate received specific missions, with major focuses on the Green Deal, technological sovereignty, industrial sovereignty, and European defence. Presidentialisation: The Commission’s structure reflects increased centralisation, reinforcing von der Leyen’s authority and moving towards a presidential model. Challenges: Overlapping portfolios (e.g., environment, defence, and competitiveness) create complexity and redundancy across roles. Missed Opportunities: The new structure lacks a dedicated focus on EU governance reform and clearer citizen engagement pathways, which could enhance responsiveness to public concerns​. Strategic Approach: The persistent overlap of portfolios necessitates a centralised, streamlined structure to improve governance and address the EU’s complex priorities
Topic:
Institutions, European Commission, and Regional Politics
Political Geography:
Europe

222. The Letta and Draghi Reports: The Only Way to Go, Despite the Hurdles

Author:
Alekos Kritikos
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The Letta and Draghi reports begin with the same realisation, though they formulate it differently: that the international geopolitical environment has changed dramatically and that the EU must take immediate action as a result. The Letta report’s take-home message is that the Single Market must be transformed into something “much more than just a market”. Thus, research, innovation and education need to be integrated into its core, as a “fifth freedom”, and the Single Market extended to include the telecommunications, energy, financial services and defence sectors. There is fear at the heart of the Draghi report, fear of the “existential challenge” confronting the EU, which will require an extra €800 billion a year in investment. The report’s proposals are articulated around five major horizontal policies: closing the innovation gap, decarbonising the economy and making it more competitive, strengthening security and the defence sector and reducing dependencies in this area, financing investment, and strengthening EU governance. The Letta and Draghi reports agree on both the fields where intervention is required and the form such intervention should take. And while they differ in terms of the competition—and, still more, cohesion—policy they prescribe, they do so constructively while their proposals complement one another. In relation to Greece, the proposals made in both reports with respect to the defence industry, to reducing energy costs, and to the provision of generous funding for additional investment through —inter alia—joint borrowing, are of the utmost importance. No serious disagreement has been voiced with respect to the proposals made in the Letta and Draghi reports, apart from the predictable German reaction to additional funding and new joint borrowing, coupled with unfounded criticism of the proposals as ‘unfeasible’. The “New European Agreement on Competitiveness” adopted in Budapest on 8 November is a critical development, given that it adopts the bulk of the key approaches contained in the Letta and Draghi reports, and sets specific milestones for some, as well. The two reports stress that, even if certain recent developments around the world cannot be considered favourable for the EU (political crisis in Germany, economic problems in France, Trump’s election in the US), Europe still has the “weapons” it needs to reverse the situation. And while the Budapest summit decision may not have gone as far as the situation demands, it still adopted the bulk of the proposals made in the two reports, making it crystal clear that the European Union has taken the need to regain the initiative fully on board.
Topic:
Markets, European Union, Economy, Regional Integration, and Regional Economy
Political Geography:
Europe and Greece

223. The European energy crisis: Shock therapy for the EU’s clean energy transition

Author:
Simon Dekeyrel
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
In 2022, Russia's invasion of Ukraine and weaponisation of Europe's gas supplies sparked an unprecedented energy crisis in the EU. This was made worse because the French nuclear fleet was partially shut down, and the summer droughts in the EU made it difficult to generate electricity from water. This Policy Brief analyses how effectively the EU and its member states have aligned their actions in addressing the energy crisis with the strategic goals of the European Green Deal. It also reflects on the outlook and main challenges for the EU’s clean energy transition and offers recommendations for the way forward.
Topic:
European Union, Gas, Green Deal, Energy Crisis, and Russia-Ukraine War
Political Geography:
Europe

224. Russia’s war against Ukraine: Lessons on infrastructure security and new technologies

Author:
Auriane Técourt and Maria Martisiute
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
In 2022, Russia hit Ukraine with a major cyberattack and unleashed a full-scale war of aggression. This includes new technologies and AI-enabled capabilities such as the Bylina electronic warfare command-and-control system. Nord Stream and the Balticconnector also fell victim to sabotage attacks by hostile actors. In this Policy Brief, it is highlighted that the EU has stepped up its resilience and cybersecurity of critical infrastructure. However, the capacity to leverage innovative technologies and defensive AI remains underdeveloped. Furthermore, the protection of industrial control systems (ICS) remains unaddressed. As Russia upgrades its 2030 National AI Development Strategy, there is an urgency to integrate the security of industrial controls into the EU’s approach to the cybersecurity of critical infrastructure before Moscow strikes with deadlier offensives. It is also time to start building a measured, albeit scalable, deployment plan for new technologies that may be AI-enabled for European critical infrastructure in connectivity with Ukraine and Moldova. The Paper explains that the EU has strengthened cybersecurity and resilience of critical infrastructure, but there is still room for improvement. Considering the pace at which new technologies and AI-enabled technologies are developing, the following steps would enhance the security of European infrastructure: Possible attack scenarios. Mandatory SOCs and cyber hubs. Industrial control systems (ICS). Synergies between the EU and NATO. A deployment plan for new technologies that may include AI.
Topic:
Infrastructure, European Union, Cybersecurity, Artificial Intelligence, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

225. Next Commissioner for Enlargement: Which criteria should inform the selection?

Author:
Berta López Domènech
Publication Date:
08-2024
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
With war raging on European soil, the European Union (EU) needs competent leadership – ready and willing to tackle head-on the polycrisis and polytransition confronting the Union and its member states. Enlargement will be one of the most politically heavy dossiers in the upcoming politico-institutional cycle. Therefore, the choice of the European Commissioner in charge of this dossier is of utmost importance. This Policy Brief examines what the candidate needs to possess for the role: Commitment to EU democratic values. Support for enlargement. Capacity to forge consensus among member states and candidates. Trustworthiness in the eyes of all relevant stakeholders. The Paper argues that without this combination of credentials, it is difficult to imagine how the next Commissioner for Enlargement will translate into practice the member states’ current discourse about the geopolitical imperative of delivering a wider and more secure Union of 30+ countries.
Topic:
European Union, Regional Integration, and Enlargement
Political Geography:
Europe

226. Security and Eastern Enlargement: Bridging the Gap for Wartime EU Accession

Author:
Monika Sus and Michał Matlak
Publication Date:
10-2024
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
Given the unprecedented situation of wartime accession and the significant security implications of Ukraine’s EU membership for the Union and its Eastern neighbourhood, the EU should consider aligning the enlargement process with its broader security policy toward the candidate country. Failure to do so risks stalling the enlargement agenda due to unresolved security challenges. While some experts argue that linking security and enlargement policies could further complicate an already complex negotiation process, the opposite needs to be discussed. This Policy Brief proposes three institutional ideas that would facilitate integrating security concerns into the enlargement process without risking prolonging it. This includes examining the enlargement methodology, better collaboration between relevant Directorates-General (DGs), commissioners responsible for security, defence and enlargement, and the European External Action Service, as well as advancing the debate about the operationalisation of Art 42.7 to provide Ukraine with security guarantees in coordination with NATO.
Topic:
Security, European Union, Russia-Ukraine War, and Enlargement
Political Geography:
Europe and Ukraine

227. Unloved but indispensable: Political parties in Europe

Author:
Paul McCarthy, Thibault Muzergues, and Patrick Quirk
Publication Date:
08-2024
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
The rise of political parties in their modern form in Europe has historically been associated with the coming of age of mass politics, and the subsequent need for representation of sectional interests (in other words, the interests of specific social classes). Following the end of World War II in Western Europe, and the end of the Cold War in Central and Eastern Europe, political parties became a central component of European democracies. Scholars often describe the 1960s and 1970s as the golden age of (Western) European democratic parties. However, the honeymoon did not last beyond this period. A long decline has made political parties much less relevant to modern politics, as they were often replaced by personalized politics and the politicization of one-issue social movements throughout the 1990s and 2000s. Political parties today are generally unpopular and distrusted by the wider public. Yet what is remarkable is that despite their decline and a crisis that many had described as terminal, European parties have remained at the center of the game in most countries’ political systems. Perhaps even more importantly, they have proved indispensable for the functioning of democracy in Europe: in the Netherlands, despite an extremely atomized party system and a global rejection of parties, no agreement on a coalition government can be passed without negotiations among them. In Italy, the Five Star Movement soon understood that it needed to convert into a much more classical political party to implement its political program: it built more traditional structures and adopted a clear positioning on the very left-right divide that it had claimed to supersede a few years before. The experience of the past decade has shown that despite their unpopularity, political parties remain indispensable for the functioning of democracies in Europe—when they are present, plural, and organized, democracy is doing well. When they are not, or when the party system is unbalanced, democracies suffer and even backslide. To prove this assertion, this paper will look at four telling examples in recent European history, taking from the experiences of Romania, Spain, France, and Hungary.
Topic:
Politics, Reform, Elections, Political Parties, and Democratic Transitions
Political Geography:
Europe

228. Russia’s digital tech isolationism: Domestic innovation, digital fragmentation, and the Kremlin’s push to replace Western digital technology

Author:
Justin Sherman
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
Digital technology has long been a key component of the Russian government’s power, and for years following the collapse of the Soviet Union there was significant technology entanglement between Russia, the West, and other areas of the world. That changed in the late 2000s and early 2010s with heightened paranoia within the Kremlin about regime security and foreign subversion—and Russia’s 2022 full-scale invasion of Ukraine has taken this to new levels. Due to combinations of intense securitization, Western sanctions, foreign businesses exiting Russia, tech “brain drain,” and other factors, digital technological isolationism is now both a reality and a desired goal for Moscow. This report examines the history of the modern Russian state’s approach to digital technology, the internet, and connection and interdependence with the West and foreign countries. It then analyzes the Kremlin’s late 2000s and early 2010s shift to a heavily securitized approach to the internet and its concerted push to develop domestic digital technology—both the successes and many failures. It then examines the 2022 Russian war on Ukraine, how the conflict and resulting events (such as sanctions and brain drain) have shifted Russia’s approach to domestic technology and digital isolation, and where different digital technology segments, such as hardware and software, stand.
Topic:
Science and Technology, Cybersecurity, Internet, Innovation, Isolationism, and Russia-Ukraine War
Political Geography:
Russia, Europe, Eurasia, and Ukraine

229. On the Importance of Placebo and Nocebo Effects in International Trade

Author:
Lucian Cernat
Publication Date:
06-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
Trade agreements are powerful drivers of global economic integration, leading to increased trade flows between countries. Usually, trade agreements are extensive documents with hundreds of provisions and different levels of enforceability. Are all these provisions useful, even those that are “best endeavours” and do not introduce legally binding obligations on trading partners? This policy brief proposes a new methodological approach to evaluate these effects. The basic idea is inspired by the “placebo effect” in medicine: under the right conditions, one can get positive results, even when the actual intervention is simply a “sugar pill”. Similarly, trade policies may have positive effects even when they lack strong, enforceable commitments. A placebo trade policy effect can emerge from “soft provisions” that bring positive trade effects, compared to the “do nothing” scenario. The main hypothesis behind this new methodology is that even if trade interventions lack the force to solve problems outright, a positive placebo effect can arise if stakeholders believe that such a policy will generate favourable market access. Conversely, a negative nocebo effect might emerge when stakeholders are convinced that certain trade policy initiatives (notably FTAs) have a detrimental impact, despite undeniable evidence to the contrary. The paper concludes with a few concrete examples illustrating both the placebo and nocebo effects and identifies factors that may lead to more positive outcomes from current and future trade policies.
Topic:
Globalization, Treaties and Agreements, European Union, Trade, and WTO
Political Geography:
Europe

230. A Strategy for a Competitive Europe: Boosting R&D, Unleashing Investment, and Reducing Regulatory Burdens

Author:
Andrea Dugo and Fredrik Erixon
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The EU stands at a crucial economic juncture. Economic growth in Europe’s mature economies has stagnated, with productivity and other indicators of economic vitality showing poor results. Public debt is alarmingly high in several countries, and the region faces new fiscal demands due to an ageing population, conflicts and war, and the energy transition. To reverse its economic decline, Europe must adopt a new strategy for improved competitiveness. The starting point of this strategy should be an honest assessment of Europe’s declining productivity compared to leading economies like the US. Historically, some European countries matched or even surpassed US productivity levels, but this gap has widened over the past three decades. While the US economy has also faced challenges, its technology, R&D, and innovation sectors have significantly boosted productivity growth. This paper identifies three key areas for policy improvement to rejuvenate Europe’s economic dynamism: Radical expansion of R&D Expenditure: Governments must significantly increase funding for universities and create better conditions for private R&D investments. The EU currently fails to meet its own target of R&D expenditures at 3 per cent of GDP. Achieving parity with US R&D expenditure levels would require an additional €200 billion annually. Mobilisation of European Savings for Investment: Despite a higher savings rate than the US, Europe’s underdeveloped capital markets hinder economic growth and investment in new enterprises. The EU needs policies to channel savings into a vibrant corporate market. Expanding the European bond market, which is currently half the size of the US one, is essential for European firms to secure funding and keep the pace of American innovation. Regulatory Reform: The EU’s restrictive regulatory environment increases business costs and stifles innovation. A shift in regulatory attitudes, for instance in the banking sector, could unlock €4.5 trillion annually, providing much-needed capital for European firms, especially small and medium-sized enterprises, to finance innovation during the green and digital transition. By addressing these areas, Europe can create a more favourable environment for business growth, innovation, and long-term economic stability.
Topic:
European Union, Regulation, Digital Economy, Investment, and Research and Development
Political Geography:
Europe

231. The External Side of Europe’s Great Economic Transformation: International Trade in Services

Author:
Lucian Cernat and Carmen Díaz Mora
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
Europe’s digital transition is starting to bear fruits. Europe’s economic landscape is becoming increasingly digital, with sectors like information and communication technology (ICT) capturing a growing share of EU GDP. This Policy Brief examines the impact of these economic shifts on Europe’s trade profile and the policies that the EU can pursue to support this transformation.
Topic:
International Trade and Finance, European Union, Regional Economy, and Digital Transition
Political Geography:
Europe

232. Is the European Union Deforestation Regulation WTO-Proof?

Author:
Bruno Capuzzi
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The European Union Deforestation Regulation (EUDR) is set to take effect on 30th December 2024. While it aligns with EU’s climate goals under the European Green Deal, it has sparked concerns with EU partners regarding its compatibility with World Trade Organization (WTO) principles. Internally, some member-States and productive sectors fear that the lack of clarity in its rules could disrupt European supply chains. Products like coffee, chocolate, and leather are some examples where costs and price are expected to rise due to compliance requirements, documentation, and shipment segregation. Critics argue that the EUDR’s unilateral imposition of EU standards on third countries could be viewed as extraterritorial and more restrictive than necessary towards its objectives. This paper analyses lessons from WTO reports on US Shrimp/Turtle and US Tuna/Dolphin, which are relevant to discussions on non-product-related processes and production methods (PPMs). Key findings suggest that the EUDR could be justified under GATT exceptions clause (Article XX). However, for this to be successful, the Policy Brief proposes more flexibility in considering local realities of exporting countries. This would include shifting the EUDR approach to cooperating towards an outcome-based equivalence systems instead of rigid procedural requirements.
Topic:
Agriculture, European Union, Trade, WTO, Deforestation, and Mercosur
Political Geography:
Europe and Latin America

233. Empires of Exceptionalism: Lessons from the EU AI Act and Attempts at AI Legislation in California

Author:
Hosuk Lee-Makiyama and Claudia Lozano
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The EU AI Act, which passed after three years of negotiations and much ambivalence, sets a comprehensive regulatory framework that reflects the European Union’s unique needs that are not translatable to other jurisdictions. The proposed bill in California (SB 1047) illustrates this case in point. The bill could potentially mislead the public into thinking that AI is already under effective regulatory control. Lawmakers must recognize that the EU differs from other systems. The EU AI Act is not only shaped by the desire to slow down global AI development, allowing Europe to catch up with rivals like the US and China: The EU lacks an enforceable constitution, and the Act prohibits its governments to impose social scoring and discriminatory measures. SB 1047 only addressed humanity-ending disasters and had unclear practical value. Meanwhile, the EU AI Act was passed into law to prevent internal competition and Europe’s history of authoritarianism. Existing laws in California and the EU already regulate most AI use cases. In addition, the EU AI Act reviews existing regulations to ensure they are still fit for purpose, something California failed to do in SB 1047. A critical takeaway is to examine existing obligations or executive powers (including enforcement agencies and public funding) to achieve the desired policy objectives. The diverging outcomes of the two laws show the importance of avoiding mismatches between policy objectives and legislative scope. AI regulation cannot substitute for other policy objectives, like privacy and antitrust. Also, lawmakers must weigh the cost of failed regulation against the risks of non-regulation. California did not see any immediate costs of inaction, whereas delayed action by the EU might have led to the fragmentation of its internal market. Also, given its collective decision-making, the EU can escape accountability for policy failures due to premature laws in a way the leaders in other political systems cannot.
Topic:
European Union, Digital Economy, Legislation, and Artificial Intelligence
Political Geography:
Europe, California, North America, and United States of America

234. Shared Liability: The European Parliament’s Misstep in Fighting Financial Fraud

Author:
Matthias Bauer, Andrea Dugo, and Dyuti Pandya
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The rise in financial fraud has prompted regulatory proposals under the Payment Services Regulation in the form of a shared liability model provisioned under Article 59. The potential proposal by the European Parliament could now extend liability beyond Payment Service Providers to Electronic Communications Service Providers and online platforms. While the intent to address fraud is commendable, this model misallocates responsibilities by requiring non-financial entities to oversee fraudulent activities, despite their lack of visibility and technical control over financial transactions. Extending liability to non-financial entities risks undermining consumer vigilance and diluting payment services providers’ efforts to maintain fraud awareness. A shared liability regime covering non-financial entities would also disproportionately burden smaller “digital” firms, leading to legal uncertainties, costly legal disputes, and market exits. This would not only drive market concentration and reduce competition in digital services but also undermine EU and Member State efforts to support Europe’s lagging digital start-ups and scale-ups. The resulting harm to innovation and entrepreneurship would be a significant setback to the EU’s broader digital ambitions.
Topic:
European Union, Regulation, Services, European Parliament, Fraud, and Liability
Political Geography:
Europe

235. Securing Europe’s Future: Strengthening ICT Competitiveness for Economic and National Security

Author:
Fredrik Erixon, Oscar Guinea, and Dyuti Pandya
Publication Date:
12-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
Europe’s Information and Communication Technology (ICT) sector, including ICT manufacturing such as telecom equipment and electronic components, as well as ICT services such as software, telecommunication services, and data processing, is no longer merely an economic pillar but a strategic asset essential for national security and defence capabilities. This paper identifies two concerns linking technology and national security: the exploitation of ICT as a gateway to critical infrastructure and the weaponisation of trade and technological dependencies in ICT by foreign nations. Addressing these two challenges requires tailored approaches, as they involve distinct nations and contexts. First, the EU should reduce its reliance on Chinese telecom equipment within its networks and accelerate the deployment of 5G. While phasing out Chinese telecom equipment will take years, a faster rollout of 5G can be achieved in the short term. To accomplish this, the EU should promote the scale and profitability of its telecom operators. Secondly, the EU relies heavily on US companies for a substantial share of its cloud-based online services. However, it is unlikely that the US would impose restrictions on these exports to the EU. Furthermore, replicating the infrastructure needed to deliver cloud-based online services would entail significant costs. To achieve technological leadership, the EU must prioritise emerging technologies such as 6G, XG, AI, quantum computing, and edge and hybrid computing, which will form the foundation of future commercial and military innovations. Thirdly, the EU should strengthen its leadership position in the development of technologies for advanced mobile communication, including 5G, 6G, and XG. Through significant effort and investment in R&D, European companies have secured a leading role in developing technical standards for cellular communication and telecom equipment. Large European firms such as Ericsson and Nokia, as well as EU SMEs that are champions in their fields, are among the most significant contributors to the technological standards. This hard-won position is one that EU policymakers must do their utmost to protect and develop. However, complacency is a recipe for disaster. The EU has the potential to foster companies that could lead in the technologies of tomorrow. It possesses the necessary fundamentals to drive technological innovation in the ICT sector, including high levels of human capital, firms operating at the technological frontier, and a market economy underpinned by strong institutions, the rule of law, and robust intellectual property protections. These constitute Europe’s comparative advantages, and the EU must adopt policies that recognise and reinforce them, rather than undermine them.
Topic:
Defense Policy, National Security, European Union, Digital Economy, Trade, and Competition
Political Geography:
Europe

236. Putting An End To World Hunger – The European Union’s role in transforming the global food system

Author:
Hanna Saarinen, Rebecca Varghese Buchholz, Bertram Zagema, and Chris Joseph
Publication Date:
12-2024
Content Type:
Policy Brief
Institution:
Oxfam Publishing
Abstract:
Farmers around the world produce more than enough to feed everyone on the planet, yet since 2017 hunger has increased sharply. Promoting food production and distribution that are socially equitable and environmentally sustainable is a necessity, in Europe and globally. This paper highlights the European Union’s role in addressing global hunger and supporting a sustainable and equitable global food system transformation. A new direction is needed and the EU can make a positive change. Smallholder farmers in the Global South offer enormous untapped potential for fighting global hunger but they must be better supported. The EU must also stand for climate justice by taking the climate change threat to food security seriously, limit the EU’s global land use footprint by stopping unsustainable and irresponsible land use that drives hunger and inequality, and balance the power in food systems by breaking corporate domination and enhancing equitable global food governance.
Topic:
Agriculture, Climate Change, European Union, Hunger, Land, and Farmers
Political Geography:
Europe and Global South

237. A trade policy framework for the European Union-United Kingdom reset

Author:
Ignacio Garcia Bercero
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
A reset in the relationship between the United Kingdom and the European Union is underway, with agreement that leaders will meet in an EU-UK Summit in the first half of 2025. By that time it can be expected that there would be greater clarity about what the reset could imply for trade between the EU and the UK, which is governed currently by the EU-UK Trade and Cooperation Agreement (TCA). There is a common interest in improving trade relations between the EU and the UK, which remains the EU’s second largest trading partner. This Policy Brief recommends that the main elements of the reset in terms of trade should be: Reinforced cooperation on global trade and economic challenges through a new ministerial forum; The negotiation of three legally binding agreements that would complement the TCA: a veterinary agreement, an agreement to link emissions trading system, and an agreement on youth mobility and cultural facilitation; A new framework to reinforce regulatory cooperation. These recommendations aim primarily to introduce a new dynamic into the EU-UK trade relationship, focused on the achievement of mutual gains. The economic impact of the suggested legally binding agreements might be limited, but they would help to rebuild mutual trust and deliver some meaningful trade-facilitation steps and, ultimately, further trade-facilitating agreements. The reinforced regulatory cooperation framework, though not legally binding, could potentially have a greater economic impact if it leads to a genuine effort to maintain compatibility of regulatory regimes.
Topic:
Bilateral Relations, European Union, Economy, Trade, and Trade Policy
Political Geography:
United Kingdom and Europe

238. An investment strategy to keep the European Green Deal on track

Author:
Jean Pisani-Ferry and Simone Tagliapietra
Publication Date:
12-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Fostering investment in clean energy and transport systems is essential if the European Union is to achieve the 2030 climate goal of a 55 percent emissions reduction relative to 1990. However, getting to the required levels of investment during 2025-2030 is likely to be exceptionally difficult. Clean electricity generation and electricity transmission systems need to be expanded rapidly, while industrial decarbonisation must be boosted and the green transformation of buildings and transport accelerated sharply. But policymakers face growing constraints on the public sector’s ability to support the necessary investments. At EU level, potential obstacles include the end of the NextGenerationEU post-pandemic recovery instrument, the lack of a green carve-out in the reformed EU fiscal framework, the increasingly difficult trade-offs between decarbonisation, competitiveness and security, and the spreading false narratives on climate policy promoted by populist nationalist parties. The latter two challenges are set to be further exacerbated by the return of President Trump in the United States. The upshot is that Europe is not on track to reach its climate targets. It is at a juncture where political resistance to decarbonisation is mounting and where budgetary means to buy off consent are becoming scarce, at both EU level (because the main source of financing is drying up) and national level (because the fiscal rules leave little room for green investment). In this Policy Brief, we assess the investment needed to achieve the 2030 climate goal and climate neutrality by 2050, and discuss why current estimates might be either over- or underestimated. Second, we discuss the roles of the private and public sectors in making these investments happen. Third, we analyse the obstacles to reaching the desired investment levels during 2025-2030, especially for the public sector. Finally we propose measures to overcome or circumvent these obstacles. The business strand consists of innovations destined to ensuring credibility and the full mobilisation of savings. The public strand aims to maximise the firepower of limited fiscal resources.
Topic:
Climate Change, European Union, Investment, Green Deal, and Energy
Political Geography:
Europe

239. Decarbonising for competitiveness: four ways to reduce European energy prices

Author:
Conall Heussaff
Publication Date:
12-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Energy prices are higher in the European Union than in most other industrialised economies, presenting a fundamental competitiveness challenge. The price disparity stems from the EU’s reliance on imported fossil fuels, contrasting with the United States, which is a net exporter of energy. In 2024, EU gas wholesale prices were on average nearly five times those in the US. Average EU industrial electricity prices were roughly two and a half times higher than in the US. The transition to clean, domestically generated energy is therefore essential to reduce European energy costs. Despite rapid decarbonisation of the power sector, fossil fuels remain vital for electricity generation and continue to significantly influence final consumer costs. Additional factors influencing final prices include the fixed costs of supporting renewables and maintaining and expanding the energy networks, and consumption taxes and levies. However, the ongoing energy transition is reshaping cost dynamics. Renewables, with fixed capital costs and no fuel requirements, are increasingly transforming the electricity sector. The electrification of heating, transport and other energy services further reduces fossil-fuel demand, shifting overall energy costs from variable fuel expenses to fixed capital investments. As the energy transition progresses, EU energy costs can be expected to fall, but how far they fall and how they are shared will depend on policy choices in four main areas. In the short term, policymakers must allocate system costs fairly across energy consumers. Medium-term policies should encourage demand flexibility in electricity to improve system efficiency. In the long-term, coordinated investment at EU level and deeper cross-border interconnection will drive down final costs for all consumers.
Topic:
Climate Change, European Union, Economy, Industrialization, Decarbonization, Energy, and Competition
Political Geography:
Europe

240. How the European Union should respond to Trump’s tariffs

Author:
Ignacio Garcia Bercero, Petros C. Mavroidis, and André Sapir
Publication Date:
12-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
President-elect Trump has threatened to increase United States tariffs to 60 percent on imports from China and 10 percent to 20 percent on imports from other trading partners, including the European Union. In doing so the US would be ignoring its World Trade Organisation commitments and would also rollback the substantial liberalisation that has taken place during the past 80 years, with a potentially major negative impact on the world economy. In response to this threat, the EU should pursue a three-pronged strategy. First, the EU should engage bilaterally with the US to seek to avoid the imposition of tariffs. This could include an offer to consider measures on facilitation of bilateral trade and on economic security cooperation, while making clear that any trade measures adopted by the EU will be consistent with WTO rules. This offer should be backed up with a credible threat of retaliation that could be implemented if the US decides to impose tariffs on EU exports. Retaliation could take the form of a negative list – the EU would increase its tariffs on all US exports to the same level as the US tariffs, except for products imported from the US identified as crucial for the EU. Second, the EU should act to preserve a functioning rules-based multilateral trading system, including on dispute settlement, and should continue to pursue WTO reform. To this end, the EU should build a coalition of countries including key players from the Global North and the Global South ready to lead in this endeavour. Third, the EU should expand its network of bilateral and regional preferential trade agreements. The priority should be the ratification of the agreement with Mercosur, but the EU should also aim to improve trade relations with the United Kingdom and Switzerland and to further strengthen partnerships in the Indo-Pacific region, and with Africa.
Topic:
European Union, Tariffs, Trade Policy, and Donald Trump
Political Geography:
Europe and United States of America

241. It’s time for the European Union to rethink personal social networking

Author:
Fiona Scott Morton
Publication Date:
12-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The European Union’s Digital Markets Act (DMA) includes interoperability requirements for messaging services but not for personal social networking platforms. These gatekeeper platforms have seen little increase in competition under the DMA. Interoperability requirements – meaning different services should be able to communicate with one another – should be expanded to cover social networks, enabling entry by overcoming the single-homing tendencies of strong network effects. Interoperability could be vertical and horizontal. Vertical interoperability would require incumbent platforms to maintain network infrastructure while allowing third-party curators to create their own networks ‘on top’ of the platform. Horizontal interoperability would enable social networks that run their own infrastructure to connect to existing networks through standardised application programming interfaces (APIs). Both designs entail some shared requirements, including APIs that enable basic content sharing, systems for verifying the identities of users communicating across networks and ways of ensuring safety and security. Government systems for licensing entrants and credentialing users would provide baseline support for interoperability. While vertical interoperability lowers barriers to entry by using the dominant firm’s platform as the basis for interoperability, it gives that firm greater leeway to discriminate against rivals running on the platform. It also creates long-term questions about the price of access to the network, since its costs are borne by the gatekeeper. Horizontal interoperability requires each firm to maintain its own platform independently, but comes with the increased risk that the gatekeeper will discriminate against external traffic. Increasing interoperability – either through horizontal or vertical methods – would encourage competition on content algorithms, customisation, locality and monetisation. By expanding the scope of interoperability requirements, the DMA could significantly reduce the market power of gatekeepers, provide users with more choice and create opportunities for new social networks – and models for social networking – to emerge. As messaging and social networking platforms continue to converge, extending interoperability standards will best support the continued development of competition in these sectors.
Topic:
European Union, Digital Economy, Social Media, Microeconomics, and Digital Markets Act (DMA)
Political Geography:
Europe

242. Finance for nature: how to improve funding for the protection of biodiversity

Author:
Heather Grabbe and Luca Léry Moffat
Publication Date:
12-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The economics of biodiversity are still little understood and the loss of nature, which provides pollination, clean water and other ecosystem services, is often considered to have primarily local economic impact. But nature has an intrinsic value and also has extrinsic value to many parts of the economy. Destruction of nature has global costs because nature loss accelerates climate change by releasing greenhouse gases into the atmosphere, causes water stress and crop failures that reduce food exports, and can force people to move. Some of the consequences are systemic. Others are long term, because potential solutions to human problems contained in intact ecosystems, such as medicines and bio-technologies, are lost to future generations. The benefits from nature – and particularly biodiversity – do not result in revenue flows that would protect natural capital assets from degradation. The costs of ecosystem destruction are still largely unaccounted for. Finance for biodiversity is very small relative to what is required for its maintenance. Most of the sources are state or public funds, or from private philanthropy. Because biodiversity is complex and has largely been ignored as an economic issue, market mechanisms are still at an early stage of development. Nature still does not appear on many balance sheets, and nor is it integrated into risk assessments across the public and private sectors. This policy brief summarises the options and outlines the main considerations in finding better ways to value nature. We explain why financial tools are important for biodiversity, give an overview of the range of tools developed to finance ecosystems and assess which would be most suitable to pursue at European Union level. The focus in developing existing and new tools should be on whether they can deliver reliable revenue streams over a long period to maintain the value of natural assets. In the EU, the most impactful immediate means of using financing to protect and restore nature is to defund the damage caused to biodiversity by eliminating nature-harming subsidies, starting with reform of the common agricultural policy.
Topic:
Climate Change, Climate Finance, Biodiversity, and Energy
Political Geography:
Europe

243. The changing dynamics of the Western Balkans on the road to European Union membership: an update

Author:
Marek Dabrowski and Luca Léry Moffat
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The slow pace of European Union enlargement to the Western Balkans can be attributed to EU member countries losing their political appetite for further enlargement in the 2010s and early 2020s, and to the fact that Western Balkan countries have failed to make visible progress in meeting the criteria for EU accession The income per capita convergence of Western Balkan countries towards the German level (as a proxy for the EU) has been rather slow, with some acceleration in the second half of the 2010s and early 2020s. However, Western Balkan countries continue to suffer from several socio-economic vulnerabilities, including high unemployment rates (especially of young people) and low rates of participation of women in the workforce. After the beginning of the war in Ukraine in 2022, the EU gave higher political priority to further enlargement. It opened a new eastern front of potential enlargement (Ukraine, Moldova and Georgia) and activated the stalled accession process in the Western Balkans. Bosnia and Herzegovina obtained candidate status in December 2022 and was approved for accession negotiations in March 2024. Accession negotiations with Albania and North Macedonia were started in July 2022. With the new government in Montenegro from the end of 2023, the accession negotiation with this most advanced candidate country moved forward. Overcoming the legacy of the tragic conflicts in the 1990s is another key geopolitical challenge in the region. This involves the normalisation of Serbia-Kosovo relations and the reconciliation process inside Bosnia and Herzegovina. In the economic sphere, speeding up income per capita convergence with the EU requires further domestic economic reforms, accelerating intra-regional economic integration and creating new EU initiatives to support growth and social cohesion in the Western Balkans. Accelerating EU accession negotiations with indicative target dates, at least for frontrunners, can reduce the perception of geopolitical and economic uncertainty and stimulate foreign direct investment inflows.
Topic:
Economics, Governance, Budget, European Union, Institutions, and Regional Politics
Political Geography:
Europe and Western Balkans

244. Joint public procurement as a tool for European Union industrial policy

Author:
Francesco Nicoli and Roel Beetsma
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Joint procurement is an important tool that is currently under-exploited at European Union level. It can greatly enhance the effectiveness of public spending in Europe, achieving greater coherence between spending across different countries, exploiting monopsony power, producing economies of scale, reducing downward competition between public authorities, improving the single market and producing a degree of solidarity without resulting in redistribution between EU countries. The EU has already implemented several joint-procurement projects, including for COVID-19 vaccines, gas supplies and ammunition for Ukraine. These previous experiences can work both as a blueprint and as a pilot for larger-scale actions. Joint procurement could be particularly relevant in sectors with substantial economies-of-scale and industry-government ties, such as defence. Despite some degree of political opposition, experimental public opinion studies have shown consistently that joint procurement in such areas can strongly improve public support for EU-level action. Measures that could expand European joint procurement in a politically sustainable way include the use of framework contracts, which allow for ad-hoc commitments tailored to the needs of different EU countries; reporting by countries of their future large public procurement plans as a part of the European Semester so that the European Commission could propose coordinated actions if necessary; and the use of staggered contracting and multiple-award strategies, which can ensure a level playing field among companies of similar market power, promoting market-building and supporting the entry of new competitors.
Topic:
Industrial Policy, Governance, European Union, Macroeconomics, and Public Spending
Political Geography:
Europe

245. The three pillars of effective European Union competition policy

Author:
Fiona M. Scott Morton
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Competitiveness is a region’s ability to achieve high productivity, attracting businesses, creating jobs and fostering innovation. It stems from efficiently using resources, is driven by competitive markets and is supported by three pillars: competition policy, procompetitive industrial policy and regulation. Competition enforcement keeps markets competitive by preventing harmful practices such as cartels, dominance abuse and anticompetitive mergers. While there is a push to relax European Union merger laws to promote European ‘champions’, this risks inefficiency and monopolisation. Instead, expanding the EU’s market size while maintaining competition is essential, especially in digital sectors. Procompetitive industrial policy addresses market failures and fosters well-functioning markets by targeting externalities such as worker training, R&D and infrastructure. Unlike outdated policies favouring national champions, this approach should focus on EU-level initiatives that promote competition and deepen the single market. This allows firms to achieve scale and drive innovation. Monopolised markets, whether state-created or naturally formed, need regulation to ensure competitive outcomes. The EU Digital Markets Act (DMA) aims to enhance competition and innovation on digital platforms by mandating data sharing, non-discriminatory access and interoperability. However, resistance to compliance on the part of tech giants poses enforcement challenges. Without effective and timely enforcement, trust in the law will erode, stalling innovation and reducing Europe’s global regulatory influence. When competition enforcement, procompetitive industrial policy and monopoly regulation work together, markets benefit consumers, firms and workers. Effective EU policy will refine competition enforcement, regulate monopolies where necessary and redesign state aid strategically to create welfare-enhancing markets. This comprehensive approach ensures an economy that serves its people and remains competitive.
Topic:
Industrial Policy, European Union, Microeconomics, and Economic Competition
Political Geography:
Europe

246. A European circular single market for economic security and competitiveness

Author:
Heather Grabbe and Luca Léry Moffat
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
If the European Union is to achieve a sustainable net-zero economy, resources need to be used much more efficiently. Extraction from nature and processing of materials are the principal causes of biodiversity loss and are also major sources of pollution, water stress and greenhouse gas emissions. Resources are used inefficiently currently because market and government failures create a nexus of disincentives and barriers to firms and individuals, hindering them in making resource-efficient choices. The most prominent failure is the artificial cheapness of raw materials because the environmental and human costs of extraction are not including in their prices. A powerful way to improve resource efficiency is to increase circularity, so that fewer resources are used to meet the same level of human need. This can be done by extending the duration of use and reuse of materials, and by reducing resource demand from the start by designing products and systems for optimal efficiency. A circular single market would allow faster de-risking from toxic dependencies and economic coercion by authoritarian regimes. It would increase resilience in the context of fragile supply chains while reducing instability from volatile commodity prices. Firm competitiveness would also be enhanced, given that European companies operate on a continent that is poor in energy and natural resources, and are thus very exposed to future scarcity of resources when climate impacts will make water and land scarcer. If firms were to optimise production and consumption systems for efficiency now, they would be ahead of the curve. To develop the circular economy further, the EU will need to spur investment. Public policy that sets common standards and a predictable regulatory framework would accelerate the development of markets for inputs such as recyclates and services such as repair, both in the EU and in trade partners. The EU has established a legislative framework for the circular economy but it needs scaling up in the forthcoming Circular Economy Act.
Topic:
Climate Change, Environment, Markets, European Union, Economic Security, and Resources
Political Geography:
Europe

247. Financing European air defence through European Union debt

Author:
Armin Steinbach and Guntram B. Wolff
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Europe is vulnerable to air attacks by both state and non-state actors. Russia has substantially increased its production of hypersonic missiles, missiles and drones, while European air defence capacities remain patchy with little improvement in coverage in recent years. Air defence is a classic European public good. No individual nation alone can provide it comprehensively, while air defence provided individual European Union countries can offer significant benefits to Europe as a whole. Joint EU funding for the build-up of greater air defence capabilities would be thus justified and help ensure rapid and sufficient provisioning. Debt funding would be economically justified as air defence systems, such as Patriot and IRIS-T, involve large upfront costs – debt would allow the cost of the investment to be smoothed over longer periods. Issuing EU debt, similarly to what was done with the NextGenerationEU post-pandemic recovery instrument, would be justified given the level of the air-attack threat. EU debt funding of air defence system is legally possible. Debt funding for air defence would respect the EU’s limited competence in defence and such a scheme would maintain the exceptional character of debt funding, with EU countries responding to a security threat in an act of solidarity. Joint debt issuance would not imply changing the command structure of air defence as foreseen under NATO and the European Sky Shield Initiative, but it would impact procurement processes. Procurement could be organised in the framework of the EU’s existing Permanent Structured Cooperation (PESCO) system. Additional EU debt would benefit the development of European industrial capacities in air defence, even if in the short term some funds were used to buy systems from the United States. Significant funds for research and the development of the domestic industrial base should be part of the initiative.
Topic:
Security, Defense Policy, Debt, European Union, Finance, Macroeconomics, and Russia-Ukraine War
Political Geography:
Europe and Ukraine

248. How demographic change will hit debt sustainability in European Union countries

Author:
Zsolt Darvas, Lennard Welslau, and Jeromin Zettelmeyer
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Population ageing is putting pressure on the public debt-to-GDP ratios of European Union countries, both by raising net public expenditures and by lowering potential growth. To keep debt ratios under control and to comply with EU fiscal rules, EU countries will need to run sufficiently high structural primary balances – the difference between non-cyclical revenue and non-interest spending. Because the EU’s fiscal rules require countries to anticipate and offset the fiscal costs of ageing during the adjustment period and in the 10 years beyond, the impact of ageing on overall fiscal indicators, such as the structural primary balance, will be felt mostly during the initial four-to-seven-year adjustment period that begins in 2025. Thereafter, structural primary balances will not need to rise further in most countries. However, in countries in which fiscal ageing costs are rising – all EU countries except Bulgaria, Croatia, Finland, France, Italy, Latvia and Sweden – fiscal adjustment in the non-ageing portion of the budget needs to continue, even if the structural primary balance does not need to increase. Unless ageing cost can be brought under control, this would require the re-allocation of expenditure from non-ageing to ageing-related items, or further increases in taxation. This creates difficult adjustment choices for many EU countries. Demographic risk factors could add one percentage point of GDP or more to required primary balances, while policies that alleviate demographic pressures – increasing immigration, raising fertility levels and labour force participation, boosting productivity and reducing the cost of long-term care for the elderly – could reduce fiscal pressures by around half a point. The annual country-specific recommendations (CSRs) issued as part of the European Semester include many good ideas to raise labour force participation, reform pension and healthcare systems and raise productivity, but implementation of these recommendations by EU countries has been limited. Furthermore, CSRs contain almost no advice on immigration policy or fertility-enhancing policies, despite a rich academic literature on both. EU countries need to act on existing CSRs to alleviate demographic pressures, while the Commission and the Council should go further in their advice on tackling demographic challenges.
Topic:
Debt, Demographics, European Union, Regulation, and Sustainability
Political Geography:
Europe

249. Europe’s 2040 climate target: four critical risks and how to manage them

Author:
Conall Heussaff, Johannes Emmerling, Gunnar Luderer, Robert Pietzcker, Severin Reissl, Renato Rodrigues, and Rupert Way
Publication Date:
10-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The European Commission has recommended that the European Union should cut greenhouse gas emissions by 90 percent by 2040 compared to 1990. Modelling shows that this target is feasible technically and is in line with social acceptability and global fairness objectives. Achieving it will require massive expansion of renewable electricity generation, drastic reductions in fossil-fuel use, energy efficiency measures and deep electrification of end-use sectors. Technological advances and strong policies have already enabled the EU to start this transformation and make substantial progress on parts of it. Most technologies required to achieve the emissions-reduction targets are market-proven, and in many cases are cost-competitive with or cheaper than fossil alternatives. After decades of successful innovation, clean-technology deployment is accelerating, with costs of key clean technologies continuing to drop rapidly. Nevertheless, economic, social and political risks threaten ambitious climate policies. The four main risk categories are: geoeconomic instability, technological progress, exacerbated inequality and policy credibility. A global economy with more trade disputes and greater risk of conflict endangers the massive capital investment needed for the transition, while the cost of clean technologies is a primary determinant of the economic viability of decarbonisation. Climate policies will affect people’s everyday lives in disruptive ways, meaning that regressive outcomes must be guarded against, balanced with a concrete commitment to the established climate policy pillars. To succeed, the 2040 climate and energy policy framework needs to be designed to be resilient to such risks. The EU should put distributional issues at the heart of its climate policy, develop an emissions-reduction strategy that monitors geoeconomic and technological risk factors, and put in place contingency plans to manage the impact of negative outcomes and to maximise the societal, economic and environmental co-benefits of the energy transition.
Topic:
Climate Change, Carbon Emissions, Green Deal, and European Commission
Political Geography:
Europe

250. An uphill struggle: a long-term perspective on the European public goods debate

Author:
Emmanuel Mourlon-Druol
Publication Date:
10-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The historical track record of centralisation of public expenditures at European Union level is patchy, and the prospects of agreement on future common spending are not good. However, Russia’s attack on Ukraine, NextGenerationEU, ensuring the stability of the euro and the climate crisis have been cited as justifying a further step-up in public spending at EU level. In recent years, the economic debate over the definition and provision of so-called European public goods (EPGs) has also revived and has put upfront the question of what to spend at EU level, based on an economic interpretation of where spending would be more efficient. To provide a counterpart to the more abstract debate on EPGs, this paper analyses major discussions that have taken place since the beginning of European integration about increasing the EU’s fiscal capacity. It shows how heavily EU agreements on what public expenditure should be centralised have relied on political considerations, in addition to, or instead of, reasoning about economic efficiency. These precedents should inform today’s discussions. In particular, it should be remembered that: (a) very specific historical and political contexts made proposals to centralise expenditure at EU level convincing and successful; (b) the notion of ‘fiscal federalism’ was and is occasionally invoked but rarely put into practice; (c) progress depends on clearly delineated issues; and (d) a political agreement on a ‘non-market definition of the common interest’ remains crucial to any change.
Topic:
Governance, Budget, European Union, Public Spending, and Public Goods
Political Geography:
Europe

251. Catch-up with the US or prosper below the tech frontier? An EU artificial intelligence strategy

Author:
Bertin Martens
Publication Date:
10-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
European Union policymakers want to close the artificial intelligence innovation gap with the United States, as a way to accelerate lagging productivity growth. The EU focus is on expanding an existing supercomputer network with more AI hardware and computing infrastructure, with taxpayer support. However, this computing infrastructure is not adapted to AI modelling. The cost of catching up with leading big tech AI computing centres is already prohibitive for EU budgets, and is set to become even more so. The hardware focus overlooks missing EU markets for complementary services that are required to set up a successful AI business: large-scale business outlets for frontier generative AI models to generate sufficient revenues to cover huge fixed model training costs, hyperscale cloud-computing infrastructure and private equity financing for AI start-ups. In the absence of (or with insufficient) complementary services markets in the EU, start-ups are forced to collaborate with US big tech firms. Injecting taxpayer subsidies to make up for these missing markets may further distort EU markets. Regulatory compliance costs, including uncertainty about the implementation arrangements for the EU Artificial Intelligence Act, add to market problems. The EU should address a wider range of market failures in its policy initiatives. It should strive to increase productivity growth below the AI technology frontier, by facilitating investment and applications of AI-driven services produced by derived and specialised generative AI models, or AI-applications that build on top of existing generative AI models. Building these below-frontier AI applications requires far less computing capacity and less heavy investment costs. Promoting the uptake of AI application services across a wide range of industries can substantially stimulate productivity growth. That requires a razor-sharp focus on pro-innovation guidelines, standards and implementation provisions for the EU AI Act, shortening the Act’s regulatory uncertainty horizon as much as possible, and facilitating collaborations between EU AI startups and big tech companies. Widening and deepening the EU private equity and venture capital market would also be very helpful.
Topic:
Markets, Science and Technology, European Union, Investment, and Artificial Intelligence
Political Geography:
Europe and United States of America

252. What can central banks do to take the Paris Agreement seriously?

Author:
Dirk Schoenmaker and Hesse McKechnie
Publication Date:
10-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Since the Paris Agreement on climate change was signed in 2015, its 195 signatories have seen financial instability resulting from the climate transition increase by approximately one third, in the context of still-increasing global emissions. In the European Union, emissions have fallen but banks have not fully internalised the costs of transitioning to net-zero. Banks continue to finance the expansion of the fossil-fuel industry. At the systemic level, this is trading a pretence of financial stability now for a more disorderly transition scenario with greater financial instability later. Central banks are increasingly using microprudential supervisory tools to address climate-related financial risks. These tools include reviewing banks’ risk-management processes and giving warnings over shortcomings in banks’ risk models. This approach is helpful, but has so far failed to address the build-up of climate-transition-related imbalances in the financial system. This situation echoes the run-up to the 2007-2008 global financial crisis, when supervisors were busy reviewing the implementation of the latest Basel risk models by individual banks, while failing to see increased imbalances in the financial system caused by rising housing prices. This Policy Brief proposes that central banks should take a macro approach to managing system-wide risks stemming from the climate transition. It is necessary to treat climate as an endogenous, and in many jurisdictions legally-mandated, transition, rather than an exogenous risk. The policy aim for central banks, in their macroprudential supervision capacity, should be to minimise financial instability during that transition. This Policy Brief argues that, all other things being equal, the steadiest path towards net-zero offers the greatest amount of financial stability. Current proposals to impose systemic risk buffers for climaterelated concentration risk may fail to provide such a steady reduction. A guided transition is recommended for banks that have been reluctant to hive off profitable loans to high-emitting companies. A requirement for the financial sector to reduce financed emissions by four percentage points annually from 2025 to 2050 would deliver net-zero with the least amount of financial instability.
Topic:
Climate Change, Monetary Policy, European Central Bank, Paris Agreement, Banking, and Green Transition
Political Geography:
Europe

253. Updating the EU strategy on China: co-existence while derisking through partnerships

Author:
Alicia Garcia-Herrero and Abigaël Vasselier
Publication Date:
10-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The European Union-China relationship has deteriorated markedly since the EU introduced a three-part strategy in 2019 based on partnership, competition and systemic rivalry. Th e relationship has been undermined by China’s support for Russia’s aggression in Ukraine and its increasingly anti-Western foreign policy that aims to alter the international rules-based system. Meanwhile, the economic relationship is changing because of China’s structural deceleration and increasing self-reliance, coupled with the EU’s growing critical dependence on China, especially for digitalisation and decarbonisation. Europe must accept that relations with China will not return to their pre-pandemic state. While there is no need to change the overall strategy, the EU should seek co-existence with China while preserving EU values and interests. Cooperation is still needed to address global problems, including climate change, in which China plays an important role in finding solutions, but on which the EU cannot accept Chinese cooperation at any price. In terms of co-existence, the EU must continue to pursue de-risking – or reducing its exposure to China – especially for its energy and digital transitions. De-risking has started but more needs to be done to understand how it can be continued while not creating conflict. The EU should pursue a three-part approach: increase coherence and coordination with all European stakeholders, refi ne the EU economic-security strategy while accepting trade-offs, and seek partnerships as the best offensive tool. The 2024-2029 European Commission should foster discussion of China and coordination of strategic issues within a larger constituency. EU countries, with Commission coordination, need to be more involved in building a comprehensive approach, including by conducting national risk assessments and by shaping and implementing de-risking measures. On economic security, full implementation of current defensive instruments is needed, along with new protections, such as better coordination of export controls and a new outbound-investment screening mechanism. The trade-offs stemming from pursuing more security will need to be made explicit in order to mitigate them. On partnerships, the EU must look beyond the United States, working within the G7 and with other like-minded countries, such as Australia and South Korea, which have valuable experience of de-risking. Mutually beneficial and strategic cooperation agreements need to be brokered with relevant emerging and developing economies.
Topic:
Bilateral Relations, European Union, Partnerships, Economy, Risk, Trade, and Coexistence
Political Geography:
China, Europe, and Asia

254. Extra time for deforestation: lessons for future EU environmental legislation

Author:
Heather Grabbe and Luca Léry Moffat
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Forests are essential to regulating the climate, absorbing greenhouse gases and providing fresh water and habitats for biodiversity and indigenous peoples. If deforestation continues at current rates, large parts of the planet will become uninhabitable. The European Union has only 5.5 percent of the world’s population, but its demand drives 15 percent of the global forest destruction linked to trade. Therefore, the EU has introduced a law – the regulation on deforestation-free products, or deforestation regulation – to outlaw from its market products linked to deforestation. The regulation has triggered protest about its impact on trade partners, leading the European Commission to propose at short notice a delay in its implementation. However, the objectives of the regulation remain valid and important. Moreover, a large majority of EU consumers want to avoid buying products that result from deforestation and find it frustratingly difficult to find information on whether products are deforestation-free. Economic actors in most of the affected sectors support the objectives of the regulation, even though they criticise the way it has been implemented. To avoid this delay having a chilling effect on other green measures in future, the EU should learn lessons from this experience. The European Commission needs to develop a consistent and effective strategy for managing the external impact of the EU’s green policy agenda, with better diplomacy towards trade partners and specific financial assistance to help the poorer countries with compliance and the transition to more sustainable production. This Policy Brief sets out why the deforestation regulation has the right objectives but needed better design and preparation for implementation. In particular, the EU needs to provide more flanking support for developing countries to ease their transitions and improve forest protection. Economic actors along the whole of supply chains need more consultation during the design stage, and the Commission needs to provide clearer guidance by sector and a well-functioning system for compliance.
Topic:
Environment, Governance, European Union, Deforestation, Implementation, and Forests
Political Geography:
Europe

255. A European defence industrial strategy in a hostile world

Author:
Juan Mejino-López and Guntram B. Wolff
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Russia’s illegal invasion of Ukraine has brought war back to Europe. Failing to stop Russia’s aggression would leave Europe at a critical disadvantage for decades, with a long-term threat to peace in the European Union. The EU can no longer rely on United States leadership in NATO and European countries therefore need to rapidly build-up their military capabilities. European countries have increased the amounts spent on defence considerably in recent years but the underinvestment of previous decades means that gaps still exist. While the EU as a whole fulfils the 2% NATO target, 7 EU NATO countries still fall short of reaching it. The European defence market remains fragmented. The lack of joint procurement and national preferences for defence spending translate into small markets with low production numbers. We provide evidence of the cost of no EU single market for selected defence products: Low production numbers are a major reason for relatively high costs per unit of production. European countries should work with the incoming EU defence commissioner to develop a cost-effective rearmament strategy. Countries pursuing goals individually would be ineffective. While EU defence industrial policy is constrained by institutional, political and practical problems, there are significant opportunities. A more integrated market for defence products would lead to greater economies of scale, resulting in lower prices and more defence readiness. Europe should aim at greater market integration for defence rather than at protecting smaller national markets. Addressing the current security concerns will require both EU and national large funding, easily €500 billion in the next five years, for which budget prioritisation as well as European and national debt will be needed. The European defence strategy should account for comparative advantages and disadvantages, which means that purchases of weapons from outside the EU are warranted and rational, especially when the security of supply and interoperability are guaranteed. Yet local purchases, i.e. some European preference, to boost industrial capabilities and innovation are critical to reinforce strategic autonomy and avoid falling behind on military technology.
Topic:
Security, European Union, Defense Industry, and Russia-Ukraine War
Political Geography:
Europe

256. Is There Life After NATO?

Author:
Marc Trachtenberg
Publication Date:
10-2024
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
It is often claimed that Article 5 of the North Atlantic Treaty of 1949 requires the United States to defend “every inch” of NATO territory. The historical evidence, however, shows that this is not the case at all. It is also commonly claimed that until Donald Trump came along, no American president would have dreamed of threatening not to defend the European allies. This too, it turns out, is not supported by the evidence. But it is not just a question of getting the history right. Those historical claims are important because they support the more fundamental claim that the NATO system is so obviously in America’s interest that it needs to be treated as sacrosanct. But has it been such a phenomenal success?
Topic:
Security, Foreign Policy, Defense Policy, NATO, and Alliance
Political Geography:
Europe and United States of America

257. Preparing for a rainy day: What can EU member states learn from Finland’s approach to resilience?

Author:
Tiina Kähkönen and Robin Forsberg
Publication Date:
12-2024
Content Type:
Policy Brief
Institution:
Austrian Institute for International Affairs (OIIP)
Abstract:
The EU faces growing threats from geopolitical tensions, pandemics, hybrid warfare, and climate change. These challenges require resilience that extends beyond military readiness to include robust civilian preparedness. In the 21st century, the need for rapid responses to complex threats has increased, demanding civilian sector involvement to ensure national security. Finland’s Comprehensive Security Model provides a valuable framework for crafting a unified EU resilience strategy.
Topic:
Security, European Union, Resilience, and Public-Private Partnership
Political Geography:
Europe

258. Hate Crime and Extremism in Austria on the Background of the Middle Eastern Conflict

Author:
Daniela Pisoiu
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
Austrian Institute for International Affairs (OIIP)
Abstract:
Drawing on the research insights of the EU funded research project PARTES[1], this policy brief outlines the sharp rise in hate crimes in Austria following the outbreak of the conflict in Gaza in response to the Hamas terrorist attack of October 7, 2023. The paper outlines the modus operandi behind these hate crimes and furthermore highlights the nature of the narratives and motivations accompanying them. Austrian Jewish communities are particularly affected by these incidents, as increasing anti-Israel sentiments often translate into acts of antisemitism. At the same time, anti-Muslim narratives and increasing anti-Muslim racism have led to intensified hostilities against Muslim communities. The paper proposes several policy recommendations, including enhanced surveillance, efforts to counter radicalisation, interfaith dialogue, and awareness raising campaigns. These measures aim to address the risks posed by violent extremism and ensure the safety of its religious communities.
Topic:
European Union, Surveillance, Islamophobia, Hate Crimes, 2023 Gaza War, and Antisemitism
Political Geography:
Europe, Israel, Gaza, and Austria

259. How the West loses public opinion in Europe’s Neighborhood

Author:
Vedran Džihić and Cengiz Günay
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
Austrian Institute for International Affairs (OIIP)
Abstract:
For many, the fall of the Iron Curtain marked the final victory of democracy and Western liberalism over autocracy and communism. Over the past decade, however, the liberal world order has been challenged by emerging, mostly authoritarian, international actors. The rise of these autocratic regimes has coincided with a decline in Western influence in Europe’s neighborhood, including the Western Balkans, Turkey, and the MENA region. Once a dominant force, the West’s normative influence is now waning, counterbalanced by countries such as Russia and China, as well as regional powers such as Turkey, Saudi Arabia, and Iran, which are increasingly exerting influence through cultural, economic, and military engagement. This Policy Analysis examines the evolving public perception of the West in the Western Balkans, Turkey, and the MENA region, identifying the myths, narratives, and political rhetoric that shape local attitudes and increasingly complicate Europe’s relations with its neighbors. Public opinion in these regions about the United States and Europe varies, of course, from country to country. But one trend is clear: the West’s normative power is a shadow of its former self. Only 35% of Serbian citizens viewed EU membership favorably in 2022, with many favoring alliances with Russia. Meanwhile, in Turkey, only 14.3% of the public thinks of the United States as a friend, marking a sharp decline from previous decades. In the MENA region, a 2022 poll found that 64% of Egyptians preferred China over the United States, and recent surveys reveal a substantial rise in anti-American sentiment across the region amid the ongoing conflict in Gaza. Notably, the EU generally maintains a relatively more positive image compared to the US. After all, the EU remains a major trading partner across the region. Over the last few years, however, the EU’s reputation in the Arab world has been increasingly damaged by its migration policy and its support for Israel, both of which are often seen as emblematic of Western double standards. Many in these regions increasingly favor diversified partnerships, including with actors such as China and Russia. Although Russia’s invasion of Ukraine initially boosted support for the EU, rising anti-Americanism and dissatisfaction with Western positions in the Middle East conflict reflect enduring divisions. As a result, the West’s ability to promote democracy and a rule-based order is severely constrained. Reversing this negative trend in public perception requires a long-lasting endeavor and should be a key priority for policymakers in both Brussels and Washington, D.C.
Topic:
Public Opinion, Authoritarianism, European Union, Influence, and Anti-Americanism
Political Geography:
Europe, Turkey, Middle East, and Western Balkans

260. Doing it again. Assessing the features and implications of terrorism recidivism in the context of jihadi attacks in Europe

Author:
Daniela Pisoiu
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
Austrian Institute for International Affairs (OIIP)
Abstract:
This article focuses on the issue of terrorism recidivism as it relates specifically to terrorist attacks. Based on the analysis of a dataset comprising information on the jihadi attacks and their perpetrators in Europe between 2014 and 2022, it introduces the following findings: terrorism recidivists are disproportionately more likely to carry out attacks in groups with other “experienced” terrorists; their attacks have a significantly higher impact in terms of casualties; the rate of mental health is remarkably low; and they seem to be able to evade authorities in a much higher percentage of cases than other perpetrators without a terrorism-related criminal record. Overall, these suggest that terrorism recidivist perpetrators operate more “professionally” than the rest of the terrorist perpetrators, making their attacks more lethal and harder to prevent.
Topic:
Terrorism, Counter-terrorism, Database, and Criminal Recidivism
Political Geography:
Europe

261. A Taiwan crisis is a China crisis

Author:
Luke Patey
Publication Date:
12-2024
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The European Union needs a China contingency. Government and corporate decision-makers may be preparing for a possible Chinese military attack on Taiwan, but they must also focus on how a Taiwan crisis will impact China and, consequently, the EU’s economic security. Largely on account of Taiwan’s prominent position in the global semiconductor industry, a Chinese attack on the island will inflict trillions of dollars in costs on the global economy. But a Taiwan crisis also threatens to disrupt China-centered production and supply chains for green technologies, such as electric vehicles, solar panels and wind turbines, as well as create unprecedented geopolitical risk for European companies in China.
Topic:
European Union, Economy, and Economic Security
Political Geography:
China, Europe, Taiwan, and Asia

262. Power moves east: Poland’s rise as a strategic European player

Author:
Izabela Surwillo and Veronika Slakaityte
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Since Russia’s war in Ukraine, Europe’s geopolitical centre has shifted eastward. Poland’s economic growth, regional leadership and defence role have cemented its position as a major force in the continent’s power structure.
Topic:
Defense Policy, Geopolitics, Leadership, Economic Growth, Regional Security, and Russia-Ukraine War
Political Geography:
Russia, Europe, Ukraine, Eastern Europe, and Poland

263. Protecting EU's critical infrastructure - The fight intensifies in the cyber realm

Author:
Veronika Slakaityte and Izabela Surwillo
Publication Date:
10-2024
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The geopolitical tensions in Europe have amplified hybrid warfare, with state and non-state actors increasingly targeting critical infrastructure (CI) through military and non-military tactics. Cyberattacks typically target the digital systems of CI, while hybrid warfare also includes tactics like disinformation and electronic jamming, indirectly undermining trust and disrupting operations. The EU’s fragmented approach to CI protection is marked by a lack of coherent national and cross-border cybersecurity strategies. There is no clear classification system for its CI sectors, a lack of standardisation in its threat responses, and no comprehensive inventory of critical assents—all of which leave Europe vulnerable to cyberattacks. As digitalisation and interconnectedness of CI grows, so does the risk of cascading disruptions across borders. Cybersecurity is therefore a crucial pillar of modern defence: without addressing its vulnerabilities, the stability of Europe’s overall security framework is at risk.
Topic:
European Union, Cybersecurity, Hybrid Warfare, Digitalization, and Critical Infrastructure
Political Geography:
Europe

264. Niger coup forces a rethink of EU and US security strategies

Author:
Andrew Lebovich
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
For a decade the European Union (EU) and the United States saw Niger as their most valuable and cooperative partner in the Sahel, but the military coup that struck Niger in 2023 changed that. As European states rethink their options in the Sahel, an understanding of what went wrong in Niger can shed light on how to rethink security assistance in the Sahel and in coastal West Africa. ‘Last man standing, last chance’ is how a European diplomat described Niger’s regional status less than two weeks before the coup that ousted President Mohamed Bazoum on 26 July 2023. The French departure from Mali in late 2022 and Burkina Faso in 2023, along with increasing pressure on United Nations forces and the European civilian and security training missions EU Training Mission (EUTM) and EU Capacity Assistance Programme (EUCAP) in Mali, left Niger as the last stronghold for the EU and international community to maintain regional counterterrorism operations and influence with a willing partner. This shift raised concerns that the relatively better security situation in Niger, compared to its central Sahelian neighbours, was at risk should Niger falter in its security stance and commitments and, since the coup, many of the worst fears of European and American actors have come true. Attacks have increased, with some of them disturbingly close to Niger’s capital Niamey. The Conseil National pour la Sauvegarde de la Patrie (CNSP), the military junta which assumed control after the coup, swiftly cut ties with the country’s prior security partnerships, opting for a different direction that includes Russian trainers, equipment and possibly other security assistance, although there is no evidence that Russia had a hand in the coup itself. Thus far this presence is significantly smaller than in Mali, where Russian-financed mercenaries operate in significant numbers. Most strikingly, French soldiers were ordered to leave the country within weeks of the coup. Following an unsuccessful meeting between a high-level American delegation and Nigérien junta leaders in March 2024, American forces were also pushed out, with their withdrawal to be completed by September 2024.
Topic:
Security, International Cooperation, European Union, and Coup
Political Geography:
Africa, Europe, Sahel, and Niger

265. Bridging North-South disarmament divides

Author:
Maria-Louise Clausen and Trine Rosengren Pejstrup
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
This brief focuses on selected policy areas where the Global South is seeking increased influence on the disarmament agenda and where Denmark might play a role in bridging the divide between North and South. The UN Secretary-General António Guterres has warned of a looming fracture in the global governance system as relationships between great powers are being recalibrated, and regional blocs are more forcefully asserting distinct visions for peace and security. The Russian war on Ukraine has highlighted the volatility of the global security environment, reflecting both a break from and a continuation of deteriorating conditions for the multilateral framework in disarmament and arms control. These mechanisms are crucial for international peace and security. But the Ukraine conflict, coupled with increased global military spending and the emergence of new military technologies, is increasingly challenging the credibility of the UN peace and security architecture.
Topic:
Diplomacy, Disarmament, Multilateralism, UN Security Council, and Russia-Ukraine War
Political Geography:
Europe and Denmark

266. Whaling politics: two worlds that never meet

Author:
Minori Takahashi
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The arrest and detention of environmental activist Paul Watson in Greenland drew renewed attention to Japan’s whaling, specifically the commercial whaling that resumed in July 2019. Japan stopped commercial whaling of large whales in the Antarctic in 1986-87 and coastal whaling by March 1988, following decisions in the International Whaling Commission (IWC). With the stated aim of gaining sufficient knowledge to re-start commercial whaling, Japan conducted research whaling for ecological and resource data, as IWC regulations permit member states to do. In 2010, Watson’s group physically interfered with a ship contributing to Japan’s Whale Research Program near Antarctica, leading Japan to issue a red notice against him through Interpol. 14 years later, in response to Japan’s request, Danish authorities in Greenland, constitutionally linked to Denmark but with extensive autonomy, detained Watson during a refuelling stop. The arrest prompted protests in Europe and an online petition with over 720,000 signatures for his release. Joining the cause are renowned actors, acclaimed filmmakers and even parliamentarians and city mayors. Watson’s legal team claimed the incident was political and that Japan was exploiting Greenland. Faced with intense opposition from otherwise friendly nations, why does Japan continue to engage in whaling?
Topic:
Environment, Politics, European Union, Conservation, and Whaling
Political Geography:
Japan, Europe, and Asia

267. Green Signals: Energy Efficiency and German Housing Markets

Author:
Francisco Amaral, Morgane Soufflet, Jonas Zdrzalek, and Steffen Zetzmann
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
In this study, we analyze the effect of energy performance certificates on sales prices and rents on the basis of millions of sales and rental listings in Germany in order to understand the causes of the stagnation of the refurbishment rate in the German housing stock. The results show that higher energy efficiency is reflected in higher prices and rents. Sales and rent premiums for energy-efficient buildings are higher when using the so-called Bedarfsausweis (energy demand certificate), which is based on an expert evaluation of the property’s energy status. However, these premiums are noticeably lower when using the so-called Verbrauchsausweis (energy consumption certificate), which relies on the meter readings from the past three years. The rent premium for energy efficient dwellings can be fully explained by the energy cost savings when switching from low to high energy efficiency using the Bedarfsausweis. This suggests that when accurate information is available, market participants correctly internalize energy cost savings. Comparing the sale price premium with refurbishment costs suggests that refurbishment is financially viable, but only if the Bedarfsausweis is used. Despite mandatory energy performance certificates, a significant portion of property listings do not provide this information, suggesting the need for stricter enforcement. Policy recommendations: Strengthen the quality of energy performance certificates by focusing on the Bedarfsausweis and phasing out the Verbrauchsausweis. In addition, strengthen compliance with reporting requirements for energy performance certificates by introducing a sanction mechanism. This will increase transparency and can therefore contribute to an increase in the refurbishment rate.
Topic:
Economics, Real Estate, Energy Efficiency, and Housing Market
Political Geography:
Europe and Germany

268. The costs of not supporting Ukraine

Author:
Johannes Binder and Moritz Schularick
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
In recent weeks, political voices advocating for the reduction or cessation of military support for Ukraine have gained ground in Germany and other nations. Proponents argue that funds allocated for military assistance prolong the war and should instead be directed toward domestic uses. This note compares the (so far modest) costs of military support for Ukraine with the expected costs of not supporting Ukraine. So far, average levels of German military support for Ukraine are equivalent to about 0.1% of German GDP. In our scenarios, we estimate that ending support for Ukraine would result in costs of 1-2% of annual GDP over the next five years. Halting aid to Ukraine would thus result in economic costs for Germany over the next years that are 10 to 20 times greater than those associated with maintaining current military support levels.
Topic:
Security, Defense Policy, Military Aid, and Russia-Ukraine War
Political Geography:
Russia, Europe, Ukraine, and Germany

269. Double standards on Palestine or pressure on Israel: ICJ ruling forces EU to rethink its passive two-state policy

Author:
Timo R. Stewart
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
In July 2024, the International Court of Justice (ICJ) issued an Advisory Opinion on the legal consequences of Israel’s occupation of the West Bank, the Gaza Strip and East Jerusalem. It declared the occupation unlawful and called for its immediate end. The ICJ emphasized that all states are under an obligation not to assist in maintaining Israel’s presence in the Occupied Palestinian Territory (OPT). Building on this Advisory Opinion, the UN General Assembly passed a resolution in September 2024 demanding that Israel end its unlawful presence in the OPT within 12 months. Israel is opposed to ending its illegal occupation. It also opposes the two-state solution. There is not even a pretence of a peace process. This new lack of ambiguity will unavoidably put Israel’s non-compliance in the spotlight. EU member states again split into three groups: those sympathetic to Palestinian rights, those supporting Israel, and those regularly abstaining on votes on the matter. During the Gaza war, the number of states sympathetic to Palestinian rights has increased. The basic choice for the EU is between rallying to apply meaningful pressure on Israel in the face of member state divisions, or playing for time. The latter risks jeopardizing the two-state solution as well as the credibility of the EU’s commitment to international law.
Topic:
International Law, European Union, Crisis Management, International Court of Justice (ICJ), and Two-State Solution
Political Geography:
Europe, Middle East, Israel, and Palestine

270. Security of supply in an era of environmental crises: Exploring the potential of Finnish comprehensive preparedness

Author:
Emma Hakala and Helmi Räisänen
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
Climate change will increase the probability of crises affecting society and security of supply: for example, extreme weather events might disrupt manufacturing and logistics across sectors. Energy transition relies on several raw material supply chains to develop new energy sources. However, growing demand threatens to outstrip supply for some raw materials in the near future, creating a potential bottleneck in the transition. The Finnish model of security of supply, which emphasises comprehensive preparedness, is a feasible framework for addressing climate-related risks, but so far these have not been systematically taken into account. An understanding of climate-related risks needs to be integrated into the shared situational awareness of everyone involved in security of supply operations. Reliance on unsustainable activities might not be possible in a world that is largely moving away from fossil fuels. For example, the procurement of equipment for the Defence Forces must take into account the availability of fuel for decades to come.
Topic:
Security, Climate Change, Sustainability, Supply Chains, and Energy
Political Geography:
Europe and Finland

271. Priorities of the new EU Commission: Struggling to balance long-term goals with short-term needs

Author:
Harald Müller, Marco Siddi, and Federica Prandin
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
The EU has always been more comfortable with long-term policymaking, but recent crises have forced it to become more agile and reactive. This shift is also reflected in the structure and policy priorities of the new Commission. Geopolitical rivalries and the struggle for “competitiveness” shape the Commission’s plans for economic as well as foreign and security policy, and also impact areas like climate and energy. At the same time, domestic disagreements and the rise of far-right parties affect asylum and migration policy as well as the prospects for enlargement and institutional reform. While the Commission must drive on sight, the focus on short-term challenges can create tensions with long-standing policy objectives, especially where these are not easily translated into geopolitical gains. To be successful, the EU must equip itself to respond more effectively to current developments, but also ensure that its policies are consistent with its long-term vision and values.
Topic:
Elections, European Union, Democracy, Trade, and European Commission
Political Geography:
Europe

272. Ukraine’s relations with its regional neighbours: Partnerships that don’t come easy

Author:
Ryhor Nizhnikau
Publication Date:
12-2024
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
The Russian aggression has drastically reshaped Ukraine’s neighbourhoods. The war ruptured Ukraine’s ties with Belarus, but brought about much closer cooperation to its west and south. Yet Ukraine’s relations with its Central European and Black Sea partners are far from straightforward today. Path dependencies and diverging interests impede the further upgrading of bilateral ties. Specifically, Ukraine’s neighbourhood policy suffers from a neglect of the regional context, strategic miscommunications, and impaired foreign policy decision-making. The proliferation of initiatives and declarations often outweighs their realisation in practice. Kyiv should rethink its regional strategy and treat the ties with its neighbours as vital. The inability to overcome old and new grievances will hamper Ukraine’s key interests, including the longer-term prospects of EU integration.
Topic:
Security, Partnerships, Economy, Regional Politics, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

273. A New Horizon in U.S. Trade Policy: Key Developments and Questions for the Biden Administration

Author:
Trevor Sutton and Mike Williams
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Center for American Progress - CAP
Abstract:
This issue brief examines some of the key trade initiatives pursued by the Biden administration to date. It then sets out key questions facing U.S. trade policy in a global environment defined by volatility and renewed ambition to tackle the great challenges of the 21st century, such as climate change, inequality, and great power competition.
Topic:
Foreign Policy, Climate Change, Treaties and Agreements, European Union, Inequality, Economy, Trade Policy, and Strategic Competition
Political Geography:
Europe, North America, Asia-Pacific, United States of America, and Americas

274. US-EU climate change industrial policy: Pulling in different directions for cooperation, competition, and compromise

Author:
Cordelia Buchanan Ponczek
Publication Date:
08-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
The United States and the European Union agree on prioritizing policies to address climate change, which includes securing supply chains for components essential to low-carbon technology. Despite this agreement, their policies to address climate change and low-carbon technology could foster competition. The US Inflation Reduction Act (IRA) reflects the competitive advantage of the US to draw in the best talents, capabilities, and resources from outside sources. This leads to a disconnect between the industrial policy benefits of the IRA within the US and the potential competitive impact the IRA has on US relationships with allies. The EU’s policies are shaped by the bloc’s desire to respond to external actors—including China and Russia—while protecting the common market and building up its internal capability to ensure security of supply. This is complicated by individual member-state objectives. The 2024 US presidential election could bring change: A Republican administration might not share the EU’s outlook on climate change, the need for government intervention, or even the close transatlantic relationship seen during the Biden administration.
Topic:
Climate Change, Governance, European Union, Economic Policy, and Geoeconomics
Political Geography:
Europe, Finland, and United States of America

275. The geoeconomics of the hydrogen era: Towards a new global energy architecture

Author:
Timo Behr
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
Clean hydrogen is crucial for ensuring the transition to a carbon-neutral economy, and large quantities of it will be needed in the future. The transition from a hydrocarbon to a hydrogen economy will have significant geopolitical and geoeconomic consequences. Due to its unique properties, hydrogen will not become the “new oil”. While oil and gas have encouraged a concentration of power – in the hands of producer countries, major oil companies, and around strategic choke points – hydrogen will favour a dispersion of power. The transition to a hydrogen economy will see strong competition over technologies, raw materials, and regulatory standards. Hydrogen has the potential to make the world energy trading system more balanced, more democratic, and less prone to price fluctuations, but it could equally lead to fragmentation, inadvertently contributing to current geopolitical divisions. For the EU and Finland, the transition towards a hydrogen economy presents both challenges and opportunities. Concerted action and active diplomacy will be needed to prevent Europe from being overtaken by others and slipping into new dependencies.
Topic:
Climate Change, Governance, Hydrogen, Energy, and Geoeconomics
Political Geography:
Europe and Finland

276. The role of space technologies in power politics: Mitigating strategic dependencies through space resilience

Author:
Markus Holmgren
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
Space activity is experiencing a boom with the scope and importance of space technologies and services fuelling rapid growth upon growth. While the space boom is catalysing transferral of the ownership of previously public infrastructure and capabilities to corporate control, many space technologies have critically important military and civilian applications. As the importance of space sectors grows, both public and private cyberoperations targeting space infrastructure proliferate. This makes it more difficult to attribute the perpetrators of cyber operations. The United States’ lead in the space sector is increasing. Starlink, a satellite internet constellation operated by the US-based company SpaceX, will serve to bind many nations to one more US-controlled communication architecture. As a result of the implications of space technologies for comprehensive security, building space resilience is becoming paramount. States must diversify their supply of space-related services and tighten cooperation with like-minded states.
Topic:
Security, Foreign Policy, Defense Policy, Economic Policy, and Geoeconomics
Political Geography:
Europe and Finland

277. Outlining EU-Turkey relations: The impacts of the Ukraine war and Turkey’s crucial elections

Author:
Toni Alaranta
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
Turkey-EU relations are affected by Russia’s war on Ukraine and its consequences for the EU’s place in the world. Another major factor is Turkey’s presidential and parliamentary elections held in May, which are defining the prospects for the country’s democratic future and its foreign policy. The second round of the presidential election took place on 28 May. The re-election of President Erdoğan indicates that the unilateral foreign policy and strained relationship with the West is likely to continue, although there is a chance of a short-term burst of cooperation due to Turkey’s economic troubles. There are increasingly divergent views about Turkey in the West, and the EU’s future relationship with Turkey needs to accommodate these different conceptualizations of the country as a state actor. The EU needs to be flexible in the coming months and to find ways to engage with Turkey in a more fruitful manner, irrespective of the election results.
Topic:
Bilateral Relations, Elections, European Union, and Russia-Ukraine War
Political Geography:
Europe and Turkey

278. EU reform is back on the agenda: The many drivers of the new debate on treaty change

Author:
Steffen Müller
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
Institutional reform is back on the European Union’s agenda, with the European Parliament, the Commission and large member states like Germany and France all supporting changes to the way the EU operates. While opening the EU treaties is not without political risk and there is still no consensus on doing so among member states, this momentum for reform is unlikely to wane in the near future. There are several reasons for the new reform drive. In particular, reforms are intended to strengthen the EU’s democratic credibility, to prevent institutional erosion in a time of permanent crisis, to make the EU more resilient to blockades by individual governments, and to lay the groundwork for the accession of new member states. While some of the proposed changes could be achieved without treaty change, the number and variety of issues at stake entails the risk of getting bogged down in parallel debates and missing opportunities for package deals. The most efficient way to deal with the EU’s reform needs would therefore be the launch of a treaty convention.
Topic:
Treaties and Agreements, Reform, and European Union
Political Geography:
Europe

279. Europe’s policies for a green transition: The European Commission’s geopolitical turn and its pitfalls

Author:
Marco Siddi
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
The European Commission has published numerous policy documents concerning the European Green Deal and the energy transition since 2019. Several have an important foreign policy component. Following the Covid-19 crisis and especially Russia’s attack on Ukraine in February 2022, the discourse and policy objectives of these documents have taken a ‘geopolitical turn’, meaning that the EU’s security, interests and cooperation with Western allies have become more prominent than before. The REPowerEU plan, the new External Energy Strategy and the Green Deal Industrial Plan exemplify this shift by combining green and geopolitical objectives. The EU’s geopolitical turn in external energy politics involves several risks. Third countries could perceive some policies as ‘green protectionism’ or ‘green colonialism’. Domestically, some business actors dislike restrictions on imports of critical raw materials and green technology from abroad, whereas additional mining in the EU may not be compatible with biodiversity and environmental protection. At the same time, ‘offshoring’ mining outside the EU may transfer the ecological consequences to contexts with laxer regulation.
Topic:
Geopolitics, European Commission, and Green Transition
Political Geography:
Europe

280. The changing dynamics of the G7, G20 and BRICS: Informal multilateral cooperation is increasingly important in an era of strategic competition

Author:
Juha Jokela and Alana Saul
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
Increasing strategic competition among major powers has had a negative effect on the efficacy of formal multilateral cooperation. This has also been reflected in informal forums such as the G7, G20 and BRICS. Yet some new dynamics have emerged. Since Russia was excluded from the G8 in 2014, the G7 has become a key forum for Western cooperation. Russia’s full-scale invasion of Ukraine has further geared the group towards a stronghold of Western economies and democracies. The BRICS group has continued to meet at leaders’ level, and has consolidated its position. Despite variation in its members’ interests, the group aims to balance the G7, and its importance for China and Russia has been elevated. Currently, the G20 constitutes a forum in which strategic competition can potentially be managed. Along with the G7 and BRICS countries, other powers play an increasingly notable role. The dynamics of the group also displays an increasing “Southernization” of informal multilateral cooperation.
Topic:
European Union, Democracy, Multilateralism, and Strategic Competition
Political Geography:
Russia, China, Europe, Asia, and United States of America

281. Russian aggression and the European Arctic: Avoiding the trap of Arctic exceptionalism

Author:
Harri Mikkola, Samu Paukkunen, and Pekka Toveri
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
In its efforts to limit the Western defence posture in the Arctic, Russia has successfully exploited the “High North, low tension” mantra and the notion of the Arctic as an exceptional region of peace and cooperation. At the same time, Russia has managed to build its position of relative strength in the Arctic through systematically developing its military capabilities. To create a threat of escalation, Russia has also used offensive military exercises and disruptive hybrid operations against the Western Arctic states in the region. Arctic economic resources and military assets continue to play an essential role for Russia in pursuing its strategic goals, and for its ability to carry out acts of aggression. Through regional cooperative practices, the West has unintentionally facilitated this capacity. The West has limited its military activity in the Arctic to mitigate tensions. This has been a one-sided effort. The Western Arctic states should thus focus on building comprehensive deterrence in the region.
Topic:
Security, Defense Policy, Military Affairs, and Deterrence
Political Geography:
Russia, Europe, and Arctic

282. The war-induced exodus from Russia: A security problem or a convenient political bogey?

Author:
Margarita Zavadskaya
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
Since 24 February 2022, around 800,000 Russians have left Russia in reaction to the full-scale invasion of Ukraine. The largest proportion of new migrants was accepted by Kazakhstan, Georgia, Turkey, and Armenia. War-induced migration should be handled like any other migration, whether it involves asylum-seekers, economic migrants, or repatriates. Excessive politicization and fearmongering around migration, including political refugees and political oppositionists, is counterproductive, as it feeds into Kremlin propaganda and belligerent narratives. While there may be concerns about espionage or saboteurs, the primary focus should be on the socio-economic impact of Russian immigration. For the receiving states, especially in the post-Soviet space, the Russian migrants pose a socio-economic challenge rather than a political one. With an increasing probability of cross-border repression – persecution or intimidation of political migrants abroad – it is essential that the EU adopts a consistent response towards political migrants, including those from Russia.
Topic:
Security, Refugees, Borders, and Russia-Ukraine War
Political Geography:
Russia, Europe, Ukraine, and Eastern Europe

283. Russia’s regime transformation and the invasion of Ukraine: From a failed blitzkrieg to war as the new normal

Author:
Jussi Lassila
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
Russia’s increasingly dictatorial and Soviet-nostalgic political leadership sees the invasion of Ukraine not only as a necessity when it comes to prevailing in the conflict with the West, but also as a chance to break free from Western influences. Vladimir Putin is acting as a referee in the elite’s hidden competition, which has been transformed into open rivalry in the context of the war. The competition over who is the most loyal to Putin’s war policy radicalizes the political discourse throughout. The Kremlin’s key challenge is to maintain the balance between citizens’ political apathy and the mobilization of society required in times of war. Civic passivity is central to the regime’s security, while justifying the continuation of the poorly progressing war requires an increasing militarization of society. The Russian public’s approval of the war has gradually diminished, and efforts to mobilize society in revenge for perceived losses have not changed the trend. Hence, Russia’s poor military success is thus far the fastest way to vitiate the legitimacy of Putin’s war regime.
Topic:
Security, Authoritarianism, Vladimir Putin, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

284. Centre-right parties in Germany and Sweden: Challenges and strategies in a changing political landscape

Author:
Sanna Salo and Tuomas Iso-Markku
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
Centre-right parties have played a central role in stabilising European party politics and advancing European integration, but the increased fragmentation of party systems and the rise of the radical right present serious challenges to them. The way that centre-right parties respond has important implications for domestic and EU politics alike. Many European centre-right parties have become divided on their political profile and programme, debating between leaning towards the progressive-liberal or the conservative-authoritarian end of the political spectrum. In Germany, the rise of the radical-right AfD has fuelled disagreements within the CDU/CSU and generated demands to sharpen its profile. However, this has thus far not led to major changes to the CDU/CSU’s platform, as it is also challenged from the political centre by the SPD and the Greens. In Sweden, the Moderates have clearly reshaped their political agenda in the last decade, focusing on immigration and law-and-order issues, as well as adopting positions and rhetoric reminiscent of the SD. This shift culminated in the formation of a Moderate-led coalition government supported by the SD in late 2022.
Topic:
Politics, European Union, and Political Parties
Political Geography:
Europe, Germany, and Sweden

285. Mexico’s domestic decay: Implications for the United States and Europe

Author:
Lauri Tahtinen
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
President Andrés Manuel López Obrador (AMLO) has challenged Mexico’s democratic institutions, including the electoral commission INE, and relies on the military to run sectors of the economy and to provide internal security. Recognizing the continuing strategic importance of its southern neighbor, the United States is attempting to “friend-shore” American industry to Mexico despite trade disputes. Mexico’s economic convergence with the US is giving way to ideological divergence. In the past year, Mexico has called NATO’s stance on Ukraine “immoral” and openly aligned with the leftist, anti-US dictators of Cuba, Nicaragua, and Venezuela. Mexico’s internal development and shifting external stance could spark a return to a United States focused on the protection of its 19th-century borders instead of its 20th-century global footprint. European attention to the future of Mexico can help diversify the country’s trade and other partnerships, as well as shine a light on its democratic decay.
Topic:
Security, Defense Policy, Democracy, Europe, and Economic Policy
Political Geography:
Europe, Latin America, North America, Mexico, and United States of America

286. New Frontiers: Estonia’s Foreign Policy in Africa

Author:
Kristin Adeoti
Publication Date:
10-2023
Content Type:
Policy Brief
Institution:
International Centre for Defence and Security - ICDS
Abstract:
Estonia’s renewed foreign policy engagement in Africa holds a historical foundation proving that the country’s approach to diplomacy is a gradual development and a work in progress. In recent years, Estonia has taken several strategic steps to enhance its ties with African nations across the realms of diplomacy, security, economic relations, business partnerships, development cooperation, and humanitarian aid – and has already had some success stories. This drive reflects both an ambition and a commitment to building stronger bonds between Estonia and Africa. To strengthen ties with African states, Estonia must commit to continuous engagement on the levels of government, businesses, and people-to-people cooperation, while acknowledging the current challenges and limitations. Such a comprehensive approach – albeit a demanding endeavour involving multiple stakeholders – would foster mutual trust, forming the basis for genuine partnerships and sustainable progress. Today, it is of essence to recognise the immense potential that this relationship promises. Demographic growth, rapid economic development, and expanding IT markets on the continent boost its global influence. As Africa gains more weight in international affairs, Estonia can engage in a mutually beneficial exchange. Africa’s prospective influence and Estonia’s existing expertise lay the foundation for a partnership that will fuel innovation and drive progress.
Topic:
Security, Foreign Policy, Diplomacy, and Economics
Political Geography:
Africa, Europe, and Estonia

287. In a State of Denial: The Air War in Ukraine

Author:
Francesca Verville and Catarina Buchatskiy
Publication Date:
10-2023
Content Type:
Policy Brief
Institution:
International Centre for Defence and Security - ICDS
Abstract:
Ukraine’s ability to repel one of the world’s leading military powers has surprised the world. Since the full-scale invasion in February 2022, neither Russia — despite its superiority in numbers and capabilities — nor Ukraine has been able to establish air superiority. With fewer and less capable air domain assets, Ukraine has instead been obliged to adopt the less costly and inherently defensive strategy of ‘air denial.’ However, for it to remain successful will require Ukraine to sustain continuous air defence operations and the West to commit to a steady supply of military assistance. Mutual air denial is essentially an attritional form of warfare from which Russia is likely to draw greater benefits and a strategy which forces Ukraine to make difficult choices regarding the targets it wants to deny. The F-16, albeit not a silver bullet, offers the prospect of enabling Ukraine’s air forces to more effectively exploit openings in Russia’s defences and to strike Russian forces and their logistics. However, unlike previous provisions of Western military assistance, the decision to give Ukraine F-16s moves past the more short-term view of helping it meet the immediate needs of the war. The effort spent training Ukrainian pilots, ground crews, and logisticians will have long-term value in supporting Ukraine’s air defence needs and deterring any renewed Russian aggression.
Topic:
Air Force, Armed Conflict, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

288. The EU’s Magnitsky Act Obsolete in the Face of Russia’s Crimes in Ukraine?

Author:
Steven Blockmans
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
International Centre for Defence and Security - ICDS
Abstract:
Despite the mounting evidence of the most serious of human rights violations being conducted by Russian forces on Ukrainian soil, the EU has chosen not to use its new Magnitsky Act to blacklist the perpetrators and their commanders. Instead, the EU has preferred to respond to Russia’s ‘dumb’ bombs with increasingly ‘dumb’ sanctions. This Brief explains why, after decades of work to smarten up its restrictive measures, the politicisation of human rights sanctions and the high threshold of evidentiary standards make it very hard for the Council to rely on evidence gathered from transition countries where the justice sector is still vulnerable to widespread corruption and political cronyism.
Topic:
Human Rights, International Law, European Union, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

289. British Nuclear Policy

Author:
Peter Watkins
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
International Centre for Defence and Security - ICDS
Abstract:
Nuclear deterrence has been a major pillar of British defence policy since the mid-1950s. The United Kingdom maintains a minimum, credible, independent strategic nuclear deterrent force, assigned to the defence of NATO. Its purpose is purely defensive: to deter the most extreme threats to the security of the UK and to that of her NATO allies. Potential adversaries must thus take into account the UK’s nuclear capabilities when facing UK conventional forces deployed as part of NATO’s forward deterrence and defence posture, not least the UK-led battlegroup in Estonia. The UK does not see a contradiction between cooperation with allies and having an “independent” deterrent – its nuclear force is operationally independent and only the UK Prime Minister can authorise the use of the UK’s nuclear weapons, even as part of a wider NATO response. Today, the Soviet Union is gone – yet a weaker but more dangerous Russia as well as an increasingly powerful China create a potential “two peer” nuclear challenge. The UK is currently renewing its nuclear deterrent as the existing capability is aging – but continues to seek opportunities for multilateral nuclear disarmament as the strategic circumstances allow. In light of the international security environment, the 2021 change to the warhead ceiling reflected that. But the UK needs to ask itself whether bigger changes will be needed for the future.
Topic:
NATO, Nuclear Weapons, and Deterrence
Political Geography:
United Kingdom, Europe, and Estonia

290. NATO and the Indo-Pacific Region

Author:
Iro Särkkä
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
International Centre for Defence and Security - ICDS
Abstract:
Amid Russia’s war in Ukraine, NATO has paid much less attention to global security issues, such as China’s potentially menacing activities in the Indo-Pacific region. But there too, the deteriorating geopolitical environment calls for NATO to take a stronger cooperative and consultative role. This brief explores why NATO is deepening cooperation with the Indo-Pacific partners. It discusses both NATO’s and individual Allies’security concerns in the region and compares them with those of Australia, Japan, the Republic of Korea, and New Zealand (the AP4).1 It also outlines the development of NATO’s Indo-Pacific partnerships with the AP4 as part of its cooperative security agenda, from the early 2000s to the present day. Finally, it considers how NATO’s cooperative security dialogue is likely to develop in the future and what might be expected at the forthcoming Vilnius Summit.
Topic:
Defense Policy, NATO, Deterrence, Strategic Planning, and Defense Spending
Political Geography:
Europe, United States of America, and Indo-Pacific

291. Military Command and Control

Author:
Gintaras Bagdonas
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
International Centre for Defence and Security - ICDS
Abstract:
NATO's current military Command and Control (C2) structure was designed for forces engaged in crisis management and expeditionary operations, not territorial defence. It will thus not be suitable for implementing NATO’s new regional defence plans, or for building credible deterrence and defence. A new military C2 structure that clarifies the geographical areas of responsibility of the Joint Force Commands (JFCs) and treats the Baltic Sea region as indivisible is needed. NATO must also improve C2 at the tactical level through the establishment of tactical- (component-) level commands, perhaps building upon the existing corps headquarters. The Baltic states, meanwhile, are establishing divisional structures which will further develop their military capabilities and give them new opportunities to act with Allies under corps command. They may, however, face challenges in implementing these ambitious plans due to a shortage of resources.
Topic:
Defense Policy, NATO, Military, and Command and Control
Political Geography:
Europe and United States of America

292. NATO’s new Defence Plans

Author:
Mārtiņš Vargulis
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
International Centre for Defence and Security - ICDS
Abstract:
NATO’s Vilnius Summit, the second summit to be held in the Baltic states after the one in Riga in 2006, will be a pivotal event with immense importance for the security of Estonia, Latvia, and Lithuania. NATO summits are crucial milestones for the Alliance. Political guidance for operational plans, priorities for strengthening defence capabilities, and policies guiding NATO’s daily business are agreed at the highest level. The Vilnius Summit will play a vital role in reflecting on the progress made since the last summit in Madrid, seeking consensus on various key issues, and providing taskings for further work. These include several items that are critical from the perspective of the three Baltic states.
Topic:
Security, Defense Policy, NATO, and Alliance
Political Geography:
Europe, Lithuania, Estonia, Latvia, and Baltic States

293. Prospects for Ukraine’s NATO Membership

Author:
Henrik Larsen
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
International Centre for Defence and Security - ICDS
Abstract:
At the Vilnius Summit, Allies will focus primarily on their commitments to deter Russian aggression against NATO territory. But NATO seems unable to resolve the bigger strategic issue of how to secure Ukraine. If its own riskaversion prevents it from giving Ukraine a clearer pathway to membership, NATO may leave Ukraine disillusioned. A deterrence and defence partnership that guarantees the strengthening of Ukraine’s military capability for as long as required currently seems to be the most realistic scenario.
Topic:
Security, NATO, Deterrence, Military, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

294. Defence Spending

Author:
Margarita Šešelgytė
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
International Centre for Defence and Security - ICDS
Abstract:
Russia’s war in Ukraine has highlighted Europe’s military weakness. But the changes to threat assessments that followed Russia’s brutal full-scale invasion have also created an opportunity for European Allies to reassess their defence spending. If they are serious about defence, they will need to address the impact of decades of persistent underinvestment, not least because higher defence spending will be key to the credibility of the new defence plans to be agreed at the Vilnius Summit. Allies should thus review and revise their defence investment pledge. If they do not do this now, it will be more difficult once the war in Ukraine ends.
Topic:
NATO, Defense Spending, Military, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

295. Iran’s Defence Industry: What’s in Stock for Russia?

Author:
Tato Kvamladze
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
International Centre for Defence and Security - ICDS
Abstract:
Albeit heavily sanctioned and exhausted by the Islamic revolution and the war with Iraq, Iran has managed to upbuild a self-sufficient defence industry from the ashes and demonstrate a robust weapon system manufacturing capacity over the last decades. It started with low-tech reverse-engineering of 3rd generation fighters and tanks and ended with indigenously producing high-accuracy and long-range ballistic missiles. Although Tehran has exported $435 million worth of weaponry, its arms trade is not a source of revenue, but a foreign policy tool to bolster its allies and proxies in the region and beyond. Supplying weapons to Russia, however, is a unique case that signals Moscow’s desperation and inability to achieve its military objectives in Ukraine. In 2022, after years of military cooperation with Russia, Teheran finally had an opportunity to provide support to Moscow, when the exhausted and depleted Russian army requested – and immediately received – unmanned combat aerial vehicles that are now used to target critical civilian infrastructure. Further economic cooperation between two rogue states might also extend to (nuclear) technology transfers, which for now remains an Achilles’ heel for Teheran. For as long as the war in Ukraine lasts, the Kremlin will have a reliable partner who can deliver an assortment of weapons needed on short notice.
Topic:
Nuclear Weapons, Science and Technology, Arms Trade, Military, and Russia-Ukraine War
Political Geography:
Russia, Europe, Iran, Ukraine, and Middle East

296. French Nuclear Policy

Author:
Jean-Louis Lozier
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
International Centre for Defence and Security - ICDS
Abstract:
France’s independent nuclear deterrence has been the main pillar of its defence strategy for sixty years. The French nuclear policy, as well as its European and allied dimensions, however, tends to be misunderstood abroad, including by those who rely on French military involvement in the pursuit of their national security goals. French nuclear deterrence is, first and foremost, strictly conceived as defensive. It is designed to protect the country’s vital interests and ensure its sovereignty and freedom of action, with the fundamental purpose to prevent a major war that would threaten those vital interests. In the wake of the war in Ukraine and Russian nuclear sabre-rattling, the value of French deterrent for European security has been raised once again. Not so long ago, President Emmanuel Macron confirmed that France’s vital interests have a European dimension. Allies must understand that France does not intend to replace the U.S. extended deterrence but rather wishes to enhance and strengthen Europe’s common defence in a more uncertain security environment. Hence, there should be a shared interest to engage in a strategic dialogue on common threats and challenges before they have materialised.
Topic:
Defense Policy, Nuclear Weapons, Weapons of Mass Destruction, and Deterrence
Political Geography:
Europe and France

297. Chinese Military-Civil Fusion: Sino-Italian Research Cooperation

Author:
N. Lill
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
International Centre for Defence and Security - ICDS
Abstract:
The Chinese government exploits foreign academic infrastructure and talent to build a world-class military. Although cooperation with China offers alluring investments, it risks research objectives being mandated by or from China and may result in unintended knowledge transfer in critical areas. Considering the extent of Chinese military-civil fusion, any collaboration—with military and non-military institutions alike—is likely to boost Chinese military capabilities. Utilising academic exchanges to further military ambitions is a coordinated and broad long-term strategy that has benefited from the West’s limited knowledge of Chinese institutions and their links to the military. To repurpose a quote by Nelson Mandela, “Education is the most powerful weapon which you can use to change the world.” And for now, that weapon is handed out without deep consideration or proper regulation.
Topic:
Education, International Cooperation, Research, and Civil-Military Relations
Political Geography:
China, Europe, Asia, and Italy

298. Climate, Peace and Security in a Changing Geopolitical Context: Next Steps for the European Union

Author:
Simone Bunse
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Stockholm International Peace Research Institute (SIPRI)
Abstract:
This policy brief analyses current initiatives and ways forward to address the nexus between climate change, peace and security within the European Union’s (EU) foreign, security and defence policies. Considering Sweden’s reputation and credibility in advancing international cooperation on climate security and in light of the 2023 Swedish presidency of the Council of the EU, there is an opportunity to address the current lack of alignment between the climate and conflict-sensitizing work of the European External Action Service (EEAS) and the climate adaptation and mitigation work of the European Commission. Closer collaboration between the EEAS, the European Commission and EU member states to align resources and tools would allow for a qualitative leap forward by fostering actions that are preventative rather than reactive to climate-related security risks in the short to medium term.
Topic:
Security, Climate Change, European Union, Geopolitics, and Peace
Political Geography:
Europe

299. The Arctic is Hot: Addressing the Social and Environmental Implications

Author:
Emilie Broek
Publication Date:
09-2023
Content Type:
Policy Brief
Institution:
Stockholm International Peace Research Institute (SIPRI)
Abstract:
The Arctic is becoming more hotly contested and attracting new developments. The European Union (EU) is one actor that is turning to the Arctic to achieve its climate, energy, space-related and security goals. However, this increased interest can result in negative social and environmental local implications if not properly planned for and considered. This SIPRI Policy Brief provides an overview of the EU’s focus on the Arctic, with a particular focus on Kiruna, and the importance of human-centred and precautionary approaches.
Topic:
Security, Foreign Policy, Climate Change, Environment, European Union, Space, and Energy
Political Geography:
Europe and Arctic

300. New Compact, Renewed Impetus: Enhancing the EU’s Ability to Act Through its Civilian CSDP

Author:
Timo Smit
Publication Date:
11-2023
Content Type:
Policy Brief
Institution:
Stockholm International Peace Research Institute (SIPRI)
Abstract:
In May 2023, European Union (EU) member states adopted a new compact to further strengthen the EU’s civilian Common Security and Defence Policy (CSDP). The new Civilian CSDP Compact succeeds the compact established in 2018 and is in line with the 2022 Strategic Compass for Security and Defence, in particular its objective to increase the EU’s ability to act whenever crises emerge. While most stakeholders agree that the old compact was a worthwhile initiative, EU member states under-delivered on the commitments to increase national contributions and raise the number and share of seconded personnel in civilian CSDP missions. The new compact doubles down on these commitments—not only by renewing them but also by refining them, and by raising the level of ambition when it comes to capability development and increasing women’s representation. Among other things, this has implications for the review process of the new compact, which this paper recommends that the European External Action Service and EU member states consider before setting the process in motion.
Topic:
Security, Defense Policy, European Union, and Regional Politics
Political Geography:
Europe