Content Type: Policy Brief / Political Geography: Europe

401. 2023: Turning Moment for European Energy Policy toward Balkans and the European Promotion of the Rule of Law

Author:: Aleksandar Kovacevic
Publication Date:: 09-2021
Content Type:: Policy Brief
Institution:: Institute for Development and International Relations (IRMO)
Abstract:: The year 2023 is likely to bring congruence of events that may cause a “perfect storm” of breaking down security of energy supply, fragile political stability in the Balkans and its unsustainable social contract. As the region grows fragmented from mid-1960’s till nowadays, very few economic forces remain the EU than among themselves. The terms of trade favor imports against exports. After 20 years of infrastructure development and integration efforts, with support of donors and creditors, despite small improvements; Logistic Performance Index (LPI) for the Balkan countries remains slightly over half of best performers such as Germany. Port resources in place that may cause such impact to entire region in the given moment of time. Cross border trade in goods and services is negligibly small. Countries trade more with the rest of are not allocated in line with the commercial practice. That is not good enough for the region that links Mediterranean with the landlocked Danube area. Travel time along major railway routes (Zagreb – Belgrade or Belgrade -Bar) are twice longer than during 1980’s. Belgrade Port, that is the key destination for transport with all sea ports in the region is constrained by the city planning and kept below minimum throughput to be reported in European inland port statistics. Croatia, Montenegro or Albania, are hardly in position to engage into trade as their ports operate far below competitive thresholds. The transactions are prohibitively expensive.
Topic:: Energy Policy, International Cooperation, Infrastructure, European Union, and Rule of Law
Political Geography:: Europe and Balkans

402. Current State of Ukraine’s Play within the Geopolitical Map of Europe

Author:: Iuliia Osmolovska
Publication Date:: 11-2021
Content Type:: Policy Brief
Institution:: Institute for Development and International Relations (IRMO)
Abstract:: The beginning on November has been rich on worrysome developments in Eastern Europe and around Ukraine in particular. With reports of the Organization for Security and Cooperation in Europe (OSCE) of continued and evergrowingnumberofceasefireviolationson the frontline in Donetsk and Lugansk regions - climbing to more than 750 daily on 12th and 13th November - satellite data on suspicious build-up of Russian forces near the Ukrainian border and respective US warning its EU allies of Russia’s potential invasion in Ukraine, migrant crisis on Polish-Belarussian border leading to aggressive land and aerial border patrol checks by joint Belarus and Russia military forces - the whole security landscape of Eastern Europe becomes ever more shaky and troublesome. Spiced up with undeclared energy war in Europe and Troyan Horse of Nord Stream 2, muscle stretching in the Black Sea, still-to-be-defined political configuration and policies of the new German government, turbulent presidential run-up France, everything leads to ideal mulled waters for perfect fishing. At first glance, all the mentioned presents rather gloomy picture of unfavorable setting, in which Ukraine has to operate nowadays. Russia seemingly has a tactical upper hand it its confrontation with the West and enjoys this advantage. Yet, this could be true, if we ignore some fundamental systemic changes. They are firmly shaping irreversibility of Ukraine’s pro- Western orientation and ever further steady integration into European and Euro-Atlantic structures, thus leaving tiny fading prospect for potential return of Ukraine into Russian orbit of influence. Recent poll data demonstrate that 62% of Ukrainians support the country’s integration into the EU, while 58% support Ukraine’s membership in NATO. The number of Ukrainians, who see better guarantees in Ukraine’s membership in NATO has risen to 55% in 2020 (compared to 26% for neutral status and 5% for a military union with Russia and other CIS countries).
Topic:: Security, Regional Cooperation, Military Strategy, Conflict, and Peace
Political Geography:: Russia, Europe, and Ukraine

403. AUKUS Security Pact: Setting the Rivalry with China in the Indo-Pacific

Author:: Krševan Antun Dujmović
Publication Date:: 12-2021
Content Type:: Policy Brief
Institution:: Institute for Development and International Relations (IRMO)
Abstract:: The announcement of the trilateral security pact between Australia, the United Kingdom, and the United States, known by the acronym AUKUS, intended to enhance cooperation between the three countries in the Indo- Pacific region in defense and security, has sent shockwaves throughout the world, especially the UK for the Royal Navy of Australia. The nuclear fueled submarines will be armed by conventional weapons, the number of acquired vessels will be at least eight, and as a typically Australian request, part of the vessels will be constructed in Australia’s naval shipyards. So far, the US, the UK, Russia, China, France in China and Europe. The key element of the AUKUS pact, signed on 15th September 2021, is the acquisition of nuclear-powered submarines from the US and and India are the only six countries that have commissioned nuclear-powered submarines. Furthermore, before signing the AUKUS pact, the UK was the only country in the world with which the US was sharing the nuclear propulsion technology, under the Mutual Defense Agreement signed back in 1958. The supply of Australia with British and American nuclear-powered attack submarines, as the most delicate part of the AUKUS pact, attracted by far the most of media attention and provoked China’s aggressive reaction. Even more, the three nations security pact, which is in principal intended to bring “enhanced trilateral security partnership for the 21st century”, has made Beijing particularly worried as China fears that this triple alliance is pointed directly against it. The three countries intend to step up their cooperation in the security and defense sector, and apart from cooperation in industrial production of new military equipment, AUKUS also envisages a broad cooperation in the fields where the three countries feel particularly threatened by China’s staggering growth, and they include cyber security, quantum computing and artificial intelligence.
Topic:: Security, International Cooperation, Alliance, Conflict, and Rivalry
Political Geography:: United States, China, United Kingdom, Europe, Asia, Australia, North America, and Indo-Pacific

404. Policy Papers by Women of Color: Systemic Racism, International Discrimination, and Inequities in France's Healthcare System

Author:: Sherihane Bensemmane, Yasmine El Addouli, and Saara Bouhouche
Publication Date:: 09-2021
Content Type:: Policy Brief
Institution:: Women of Color Advancing Peace, Security and Conflict Transformation (WCAPS)
Abstract:: This first policy paper launches the RAP Initiative’s policy papers series Institutional Racism and Discrimination in Healthcare Systems Globally, which will continue to be published over the coming months. The series explores how racism and discrimination affect communities of color’s health, security, and quality of life across the world, particularly for women and girls, and what we can do to ensure more equality, equity, and justice for all.
Topic:: Health, Discrimination, Intersectionality, Racism, and Systemic Racism
Political Geography:: Europe and France

405. The Good, the Bad and the Ugly: Taking Stock of Europe’s New Trade Policy Strategy

Author:: Fredrik Erixon
Publication Date:: 04-2021
Content Type:: Policy Brief
Institution:: European Centre for International Political Economy (ECIPE)
Abstract:: This Policy Brief takes stock of the EU Trade Policy Review – the Commission’s proposed strategy for trade. Despite appearances, the Review doesn’t come close to its billing as a strategy for the new geopolitics of trade. In fact, the Review is weak on key geopolitical developments and rather gives the impression that the EU doesn’t have an ambition to shape outcomes. Obviously, the Review is anchored in Europe’s general economic climate: defensiveness on globalization, competition and digitalization. It follows that Europe is getting increasingly detached from world developments. There are several good parts in the Review. The Commission wants to revive and reform the World Trade Organisation, and it’s clear about what factors that have made the Geneva-based trade body dysfunctional. The Review also acknowledges that the EU will seek a closer alliance with the United States and use that for constructive purposes. Finally, it is welcome that the Commission proposes some new instruments for dealing with market distortions caused by foreign subsidies and protectionism in government procurement. All these initiatives can achieve good outcomes. However, they all require that Europe makes changes in its own policies and positions. The bad parts in the Review are Europe’s weak agenda for getting better market access in the growth regions in the world and its continued passivity on matters related to China. Europe’s main trade-policy challenge in the next decade is to ensure that businesses and consumers in Europe get better integrated with a world-market dynamism that predominantly will come from the Asian region. Absent a realistic and medium-term strategy for dealing with challenges connected to the rise of China, Europe will have difficulties getting the EU-China Comprehensive Agreement on Investment approved. Europe needs an actionable agenda for addressing bilateral frictions with China and problems that occur outside bilateral trade. Finally, the ugly part of the trade strategy are all the commercial policies in the EU – with strong effects on trade – that aren’t recognized or only casually mentioned in the Review. The latter category includes the ambition to introduce an autonomous carbon border tax on imports. Such a policy comes at a high political and economic cost, and the measure’s effect on reducing global carbon emissions is at best very negligible.
Topic:: Globalization, International Political Economy, International Trade and Finance, Treaties and Agreements, European Union, Geopolitics, Digital Economy, and Trade
Political Geography:: Europe

406. Combating Unsafe Products: How to Improve Europe’s Safety Gate Alerts

Author:: Joana Purves and William Echikson
Publication Date:: 04-2021
Content Type:: Policy Brief
Institution:: European Centre for International Political Economy (ECIPE)
Abstract:: The European Union has built a one-stop-shop for its member state regulators to post product safety notifications – Safety Gate (European Commission 2021d). Constructed on top of the Rapid Alert System for Dangerous Non-Food Products, or RAPEX, the Safety Gate web portal is designed to make public the “quick exchange of information” between 31 European countries and the European Commission “about measures taken against dangerous non-food products.” While Safety Gate represents a significant achievement, our research revealed areas for improvement to increase its utility for manufacturers, marketplaces and consumers. Many product notifications published on the website lack details required to facilitate speedy removals and recalls. The study graded eight essential criteria for a total of 918 Safety Gate notifications published over eight months in 2020. The average notification score was a respectable 70 out of 100, but over 98% of the notifications omitted at least one key criterion. Only 14 notifications included all the information to enable efficient and accurate product identification.
Topic:: Health, Food, European Union, and Regulation
Political Geography:: Europe

407. “Too Big to Care” or “Too Big to Share”: The Digital Services Act and the Consequences of Reforming Intermediary Liability Rules

Author:: Fredrik Erixon
Publication Date:: 04-2021
Content Type:: Policy Brief
Institution:: European Centre for International Political Economy (ECIPE)
Abstract:: This paper reviews the Digital Services Act (DSA), a package of new rules for platforms proposed by the European Commission late last year. The paper takes stock of current and future situations for rules on content moderation and takedowns, and discusses how the DSA addresses the balance between the desired culture of openness online, on the one hand, and more pressures to take down not just illegal but harmful and objectionable content, on the other hand. The DSA introduces a few new transparency rules that follow previous codes of conduct: they are straightforward and desirable. However, it also brings in new know-your-customer rules and exacerbate the ambiguity surrounding the definition of illegal content. These types of rules will most likely have the effect that platforms will minimize risk even more by taking down more content that is legal. Moreover, there is a risk that the DSA will create new access barriers to platforms – with the result of making it difficult for smaller sellers to engage in contracts on platforms. New regulatory demands to monitor and address “systemic risks” will likely have the same effect: platforms will reduce their exposure to penalty risks by taking down and denying access for content that is legal but associated with risks. The DSA’s differentiation between large platforms and very large platforms is disingenuous and contradicts the purpose of many DSA rules. Obviously, exposing some platforms to harder rules will lead to content offshoring – a trend that is already big. Objectionable content – not to mention illegal content – will move from some platforms to others and lead extremists and others to build online environments where there is much mess content moderation. Furthermore, the new regulatory risks that come with being a very large platform will likely become an incentive for some large platforms to stay large – and not become very large. While the DSA is often billed as a package of regulations that will reduce the power of big platforms, it is more likely to lead to the exact opposite. Very large platforms have all the resources needed to comply with the new regulation while many other platforms don’t. As a result, the incumbency advantages of very large platforms are likely to get stronger.
Topic:: Culture, Digital Economy, Internet, and Digital Policy
Political Geography:: Europe

408. What is Wrong with the German Economy? The Case for Openness to Technology and Human Capital

Author:: Philipp Lamprecht
Publication Date:: 04-2021
Content Type:: Policy Brief
Institution:: European Centre for International Political Economy (ECIPE)
Abstract:: Advanced economies like Germany need to focus more on attracting foreign high-skilled labour and become better at importing foreign technology and business models. This might not sit well with current thinking of economic sovereignty in Berlin, but it is a necessary step for improving technology-penetration, competitiveness and productivity. Supply of high-skilled labour is getting more difficult to obtain and the cost of generating and adopting new ideas is increasing. Policymakers need to create the right conditions to open their markets to foreign technology and high-skilled labour. But openness alone is only a necessary condition – not a sufficient one. Policymakers also need to focus on creating the right environment domestically to attract a specialised and highly-skilled labour force, despite fierce competition from around the globe. The crucial question is to what extent companies make use of innovation capacities that can be obtained from international recruitment. Our analysis focuses on what German policymakers can do to increase openness for, and its attractiveness to, the high-skilled labour. Germany’s policy framework should focus on public policy initiatives aimed at increasing the incentives and removing obstacles for firms to attract the global high-skilled labour force. To stay attractive, Germany’s policies should also target issues of bottleneck regulation to facilitate field-testing new technologies and to support innovation sandbox processes of companies. And German policies should focus on the regulatory environment, notably the type of regulations that policymakers pursue. Many current regulations in Germany do not sufficiently allow for experimentation of technologies and ideas.
Topic:: International Political Economy, Science and Technology, Labor Issues, Regulation, Human Capital, Innovation, and Skilled Labor
Political Geography:: Europe and Germany

409. Digital Futures for Europe

Author:: Meelis Kitsing
Publication Date:: 03-2021
Content Type:: Policy Brief
Institution:: European Centre for International Political Economy (ECIPE)
Abstract:: There isn’t one model for success in the digital future; there are many. Europe is now debating what policies that could help to power entrepreneurship and growth in Europe’s economy, and some are arguing that Europe should make itself technologically sovereign – independent from the big platforms from the US. This is not the right approach – partly because there cannot be just one model applied in Europe if it is to become more successful in technology and competitiveness. This briefing paper argues that is far more important for Europe to create a better environment for companies to experiment and discover with new business models, and to learn from the past platform success while they do so. That requires a much greater space for entrepreneurship and that the EU and national governments stay away from excessive regulations that strain new business growth. Europe can be a powerful region that shapes rules and standards globally – “the Brussels effect”. But that isn’t the future for Europe if it ensnares entrepreneurs in red tape – “the Brussels defect”.
Topic:: International Political Economy, Digital Economy, Entrepreneurship, Economic Growth, and Digital Policy
Political Geography:: United States and Europe

410. Covid-19 and the Danger of Self-sufficiency: How Europe’s Pandemic Resilience was Helped by an Open Economy

Author:: Johan Norberg
Publication Date:: 03-2021
Content Type:: Policy Brief
Institution:: European Centre for International Political Economy (ECIPE)
Abstract:: During the Covid-19 pandemic, Europe has benefitted strongly from being an open economy that can access goods and services from other parts of the world. Paradoxically, some politicians in Europe think that dependence on foreign supplies reduced the resilience of our economy – and argue that Europe now should wean itself off its dependence on other economies. In this Policy Brief, it is argued that self-sufficiency or less economic openness is a dangerous direction of policy. It would make Europe less resilient and less capable of responding to the next emergency. It is key that people, firms and governments can get supplies from other parts of the world. It is diversification, not concentration of production, that will make Europe more resilient when the next emergency hit. We don’t know where the next crisis will come from. Nature will throw nasty surprises at us, and we will make stupid mistakes, some of which will have devastating consequences. What we do know, though, is that we stand a better chance to fight the next emergency if we get richer and improve our technology. The best policy for resilience is one that encourages specialisation and innovation – and, when the emergency hit, allow for people to improvise in search for solutions. For that to happen, we need openness to goods, services and technology from abroad.
Topic:: Health, International Political Economy, Innovation, Economic Cooperation, Pandemic, and COVID-19
Political Geography:: Europe and Global Focus

411. The EU Green Deal and Its Industrial and Political Significance

Author:: Hosuk Lee-Makiyama
Publication Date:: 02-2021
Content Type:: Policy Brief
Institution:: European Centre for International Political Economy (ECIPE)
Abstract:: The European Green Deal, the flagship initiative of the incumbent European Commission, aims to cut greenhouse gas (GHG) emissions to 55% by 2030 (from the current target of cutting 40% of 1990 levels) by overhauling fiscal, trading and regulatory regimes. Brussels is well-placed to deliver the interregional distribution or the minutiae of technical regulations that this challenge calls for. Energy diversification is also central to EU competitiveness and strategic autonomy. But this initiative is not costless: its official impact assessment points to a GDP loss of additional -0.3 to -0.7%, by 2030, relative to the previous level of ambition. The full loss could be up to -2.5%. These costs are also unevenly, and the inability to cushion asymmetrical shocks have nearly torn the Union apart in the past. A carbon-neutral Europe could also make losers out of today’s winners among stakeholders and give the EU a significantly different industrial structure, forcing over-exporting Northern Europe into reforms that are probably overdue. Most importantly, the gap between the financing needed and the financing available is unprecedented. The success of the European Green Deal and a cost-efficient transition hinge on the rapid and effective mobilisation of investments – as the diffusion period for new energy-related technology is 40-50 years. Therefore, a smart climate policy does not just distribute costs and investments between different groups, but also over time: The investments are needed now, if we are to reap their benefits before 2050.
Topic:: Environment, Industrial Policy, International Political Economy, European Union, Green Technology, Sustainability, and Green Deal
Political Geography:: Europe

412. Will industrial and agricultural subsidies ever be reformed?

Author:: Gary Clyde Hufbauer
Publication Date:: 03-2021
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: Open Sub-navigation BackOpen Sub-navigation Publications Back Policy Briefs Working Papers Books PIIE Briefings Open Sub-navigation Commentary Back Op-Eds Testimonies Speeches and Papers Topics & Regions PIIE Charts What Is Globalization? Educational Resources Open Sub-navigation Back Senior Research Staff Research Analysts Trade Talks Open Sub-navigation Back RealTime Economic Issues Watch Trade & Investment Policy Watch China Economic Watch North Korea: Witness to Transformation 中文 Open Sub-navigation Back All Events Financial Statements Global Connections Global Economic Prospects Stavros Niarchos Foundation Lectures Trade Winds Open Sub-navigation Back News Releases Multimedia Media Center Open Sub-navigation Back Board of Directors Staff Employment Contact Annual Report Transparency Policy POLICY BRIEF VIEW SHARING OPTIONS Will industrial and agricultural subsidies ever be reformed? Gary Clyde Hufbauer (PIIE) Policy Brief21-5 March 2021 Photo Credit: REUTERS/Denis Balibouse One economic argument for government subsidies is that they are necessary to compensate firms and industries for benefits they provide to society at large but cannot capture in the prices they charge for goods or services. For example, subsidies to renewable energy are defended because renewable energy limits carbon emissions. When a major economy subsidizes extensively, however, its trading partners are drawn into the game, with losses all around. As the prisoner’s dilemma suggests, a better outcome would entail mutual restraint. But the goal of mutual restraint is no less difficult in international trade than it is in international arms control. Both the European Union and the US federal system try, in different ways, to regulate industrial subsidies. Hufbauer examines efforts to contain unjustifiable subsidies and proposes modest improvements, bearing in mind that as countries struggle to overcome the global economic downturn resulting from the COVID-19 pandemic, there is little appetite for restoring a free market economy—one in which firms compete with minimum government assistance or regulation. Selective upgrading of the rulebook may nevertheless be possible.
Topic:: Agriculture, Government, Reform, European Union, Regulation, Manufacturing, Industry, COVID-19, and Subsidies
Political Geography:: Europe, North America, and United States of America

413. At the Nexus of Participation and Protection: Protection-Related Barriers to Women’s Participation in Northern Ireland

Author:: Catherine Turner and Aisling Swaine
Publication Date:: 06-2021
Content Type:: Policy Brief
Institution:: International Peace Institute
Abstract:: The protection of women in armed conflict and their participation in peace and security activities are central pillars of the women, peace, and security (WPS) agenda. Overall, however, the WPS agenda has overlooked the relationship between participation and protection. This perpetuates a false binary between the participation of women as leaders with agency and the protection of women as victims of conflict. It also misses the gendered, context-specific, and conflict-related protection risks that accompany women’s participation. Finally, it overlooks the critical link between the harms women experience and their low levels of representation. This paper considers the intersection between women’s participation and protection in the context of Northern Ireland. While often assumed to be free of “global policy” concerns such as WPS, Northern Ireland starkly illustrates the intrinsic connections and tensions between women’s leadership and protection in conflict and post-conflict situations. After providing an overview of these connections and tensions more broadly, this paper examines the participation and protection of women in Northern Ireland since the 1998 Good Friday Agreement. It draws from twenty-five semi-structured interviews with women in leadership positions in Northern Ireland. The paper concludes that gender inequalities and gendered insecurities intersect with sectarianism, the legacy of violence, and political crises arising from power-sharing arrangements under the peace agreement. These, in turn, intersect with emerging technologies such as social media to stymy women’s participation across all areas of post-conflict political life. While these findings underscore the continued relevance of the WPS agenda, they also signify that deeper engagement with gendered protection issues is required if the agenda is to substantively advance women’s equality and participation in the longer term.
Topic:: Security, Gender Issues, Women, and Peace
Political Geography:: Europe and Northern Ireland

414. The Dominance Dilemma: The American Approach to NATO and its Future

Author:: Joshua R. Itzkowitz Shifrinson
Publication Date:: 01-2021
Content Type:: Policy Brief
Institution:: Quincy Institute for Responsible Statecraft
Abstract:: Despite the Biden administration’s push to revitalize U.S. alliances, U.S. relations with NATO are due for a reset. The United States should incentivize European members of NATO to take on additional responsibilities for their defense. Encouraging the European allies to take initiative will help the United States focus on its other domestic and international priorities and may facilitate improving relations with Russia. This approach will also prove attractive to European states concerned about the future direction of U.S. foreign policy. Recalibrating the U.S. role in Europe would conform with the United States’ post–World War II efforts to stabilize European security — and stand as the fruit of Washington’s success in this regard.
Topic:: Foreign Policy, NATO, International Security, Military Strategy, Military Affairs, and Alliance
Political Geography:: United States, Europe, and Global Focus

415. Commercialisation contracts: European support for low-carbon technology deployment

Author:: Ben McWilliams and Georg Zachmann
Publication Date:: 07-2021
Content Type:: Policy Brief
Institution:: Bruegel
Abstract:: Many of the technologies that can help the European Union become a net-zero emissions economy by 2050 have been shown to work but are not yet commercially competitive with incumbent fossil-fuel technologies. There is not enough private investment to drive the deployment of new low-carbon alternatives. This is primarily because carbon prices are neither high enough nor stable. There are a number of benefits from the deployment of low-carbon technologies that private firms do not factor in. These include the benefits of decreasing industry-wide costs over time, and the global climate benefits from the development of low-carbon technologies within the EU that can subsequently be exported. The result is an investment level below the socially optimal value in the EU. Commercialisation contracts could be implemented as a temporary measure to remove the risk associated with uncertain carbon prices for ambitious low-carbon projects. The aim of the contracts would be to increase private investment to the socially optimal level. Contracts would be allocated through auctions in which fixed prices for abated emissions over a fixed duration would be agreed on a project-by-project basis. On an annual basis, public subsidies amounting to the difference between the agreed carbon price and the actual EU carbon price would be provided to investors, depending on the total carbon emissions abated. As long as EU carbon prices are low, investors would receive larger subsidies to ensure their competitiveness. Contracts would be auctioned at EU level. This would generate increased competition compared to national auctions, leading to more efficient outcomes and preventing fragmentation of the single market. From about €3 billion to €6 billion would be provided to the main industrial emitting sectors annually, with the amount reducing as the EU carbon price rises and low-carbon technologies become competitive without subsidy.
Topic:: Climate Change, Energy Policy, Science and Technology, Investment, Trade, Carbon Emissions, and Decarbonization
Political Geography:: Europe

416. Europe should not neglect its capital markets union

Author:: Maria Demertzis, Marta Dominguez-Jimenez, and Lionel Guetta-Jeanrenaud
Publication Date:: 06-2021
Content Type:: Policy Brief
Institution:: Bruegel
Abstract:: The European Union’s capital markets remain very underdeveloped compared to the United States. The market for equity, as measured as the size of the total market capitalisation of listed domestic firms relative to GDP, is much larger in the US and in Japan than in Europe.
Topic:: European Union, GDP, and Capital Flows
Political Geography:: Japan, Europe, and United States of America

417. Blending the physical and virtual: a hybrid model for the future of work

Author:: Monika Grzegorczyk, Mario Mariniello, Laura Nurski, and Tom Schraepen
Publication Date:: 06-2021
Content Type:: Policy Brief
Institution:: Bruegel
Abstract:: The pandemic has shown that many workers can efficiently work remotely, with benefits for wellbeing and even productivity. The European Union should develop a framework to facilitate hybrid work.
Topic:: European Union, Work Culture, Innovation, Strategic Competition, Pandemic, and COVID-19
Political Geography:: Europe and Global Focus

418. The great COVID-19 divergence: managing a sustainable and equitable recovery in the European Union

Author:: Gregory Claeys, Zsolt Darvas, Maria Demertzis, and Guntram B. Wolff
Publication Date:: 05-2021
Content Type:: Policy Brief
Institution:: Bruegel
Abstract:: The COVID-19 pandemic has led to the biggest global recession since the Second World War. Forecasts show the European Union underperforming economically relative to the United States and China during 2019-2023. Southern European countries have been particularly strongly affected. While the ICT sector has benefitted from the COVID-19 crisis, tourism, travel and services have suffered. Business insolvencies have, paradoxically, fallen. While total employment has almost recovered, the young and those with low-level qualifications have suffered employment losses. Inequality could rise. The pandemic may lead to medium to long-term changes in the economy, with more teleworking, possibly higher productivity growth and changed consumer behaviour. Policymakers must act to prevent lasting divergence within the EU and to prevent scarring from the fallout from the pandemic. The first priority is tackling the global health emergency. Second, we warn against premature fiscal tightening and recommend instead additional short-term support from national budgets. Over the medium term, fiscal policymakers will need to gradually move away from supporting companies through subsidies, towards tax incentives for corporate investment. A review of the European fiscal framework is needed to achieve the EU’s green goals more rapidly. The quality of public finances, how policymakers spend resources and the associated reforms are of central importance to prevent scarring. Improving the efficiency of insolvency procedures will be crucial for speedy and effective recovery. Targeted labour market policies for the young and less-qualified are needed. As teleworking becomes a more permanent feature of the EU’s labour markets, it will be crucial to adapt social security and taxation systems in the context of the single market for labour. The EU should resist protectionist calls in the wake of the pandemic. Rigorous competition policy enforcement and an integrated EU market have been beneficial for European convergence and growth. Capital markets have an important role to play in a speedy recovery.
Topic:: Governance, European Union, Inequality, and COVID-19
Political Geography:: Europe

419. How difficult is China’s business environment for European and American companies?

Author:: Uri Dadush and Pauline Weil
Publication Date:: 05-2021
Content Type:: Policy Brief
Institution:: Bruegel
Abstract:: Despite tensions over China’s discriminatory business practices, China’s trade continues to thrive, and the country has taken over from the United States as the first destination for foreign investment. American and European businesses continue to be engaged in China’s large and growing market, even amid a trade war between China and the United States. Drawing on surveys of companies and international comparisons, we show that – contrary to the prevailing narrative – China’s business practices have improved significantly in recent years. China’s business environment is today generally more favourable than that in other large countries at similar levels of development and, in some though certainly not all aspects, is in line with the Organisation for Economic Co-operation and Development average. Differences over geopolitics and human rights must be addressed, but it is clear that trade and investment agreements conditioned on accelerated reforms in China would yield substantial dividends. The benefits of such deals would accrue not only to foreign investors in China and exporters to China, but also to consumers and importers in the European Union and, especially, in the US, where punitive tariffs on China remain in effect. Critical aspects in the negotiations would include better access for American and European investors to China’s market for services and improved enforcement of rules and regulations in China. As in many middle-income countries, uneven enforcement of the law (rather than the law itself) remains a critical problem in China.
Topic:: Development, Bilateral Relations, European Union, Business, and Investment
Political Geography:: China, Europe, Asia, North America, and United States of America

420. Accounting for climate policies in Europe’s sovereign debt market

Author:: Marta Dominguez-Jimenez and Alexander Lehmann
Publication Date:: 05-2021
Content Type:: Policy Brief
Institution:: Bruegel
Abstract:: International debt investors increasingly demand assets that are aligned with environmental, social and governance objectives. Sovereign debt is being belatedly swept up in this change. This huge asset class represents a uniquely long-term claim and funds a wide range of public expenditure, both brown and green. Public capital expenditures will be a central part of the roughly €3 trillion investment budget needed to pay for the European Green Deal. European Union countries have so far met investor appetite for climate-aligned assets through sovereign green bonds, the issuance of which has rapidly grown since 2017. The EU itself will also issue green bonds in large volumes. However, because of some inherent flaws in such instruments and as their still-weak frameworks, these bonds are unlikely to meet the environmental criteria demanded by investors, and will complicate established principles in sovereign debt management. Much more comprehensive information is needed on the climate related aspects of the public budgets of EU countries. Greater transparency in this respect would support stability and improve the functioning of capital markets, given that sovereign debt plays a pivotal role in all investor portfolios and also in regulatory and monetary policy. Adoption by sovereign issuers of green budgeting principles, based on a common taxonomy of sustainable activities, would enhance transparency. It could also be driven by investors who, under new EU rules, must disclose the climate-related aspects of all financial instruments offered in the capital market.
Topic:: Climate Change, Debt, Markets, Sovereignty, European Union, Finance, and Sustainability
Political Geography:: Europe

421. Navigating through hydrogen

Author:: Ben McWilliams and Georg Zachmann
Publication Date:: 04-2021
Content Type:: Policy Brief
Institution:: Bruegel
Abstract:: Hydrogen is seen as a means to decarbonise sectors with greenhouse gas emissions that are hard to reduce, as a medium for energy storage, and as a fallback in case halted fossil-fuel imports lead to energy shortages. Hydrogen is likely to play at least some role in the European Union’s achievement by 2050 of a net-zero greenhouse gas emissions target. However, production of hydrogen in the EU is currently emissions intensive. Hydrogen supply could be decarbonised if produced via electrolysis based on electricity from renewable sources, or produced from natural gas with carbon, capture, and storage. The theoretical production potential of low-carbon hydrogen is virtually unlimited and production volumes will thus depend only on demand and supply cost. Estimates of final hydrogen demand in 2050 range from levels similar to today’s in a low-demand scenario, to ten times today’s level in a high-demand scenario. Hydrogen is used as either a chemical feedstock or an energy source. A base level of 2050 demand can be derived from looking at sectors that already consume hydrogen and others that are likely to adopt hydrogen. The use of hydrogen in many sectors has been demonstrated. Whether use will increase depends on the complex interplay between competing energy supplies, public policy, technological and systems innovation, and consumer preferences. Policymakers must address the need to displace carbon-intensive hydrogen with low-carbon hydrogen, and incentivise the uptake of hydrogen as a means to decarbonise sectors with hard-to-reduce emissions. Certain key principles can be followed without regret: driving down supply costs of low-carbon hydrogen production; accelerating initial deployment with public support to test the economic viability and enable learning; and continued strengthening of climate policies such as the EU emissions trading system to stimulate the growth of hydrogen-based solutions in the areas for which hydrogen is most suitable.
Topic:: Climate Change, Energy Policy, European Union, Carbon Emissions, Decarbonization, and Hydrogen
Political Geography:: Europe and Global Focus

422. Is the European Union’s investment agreement with China underrated?

Author:: Uri Dadush and André Sapir
Publication Date:: 04-2021
Content Type:: Policy Brief
Institution:: Bruegel
Abstract:: The European Union is very open to foreign direct investment. By comparison, despite considerable liberalisation in the past two decades, foreign investors in China’s markets still face significant restrictions, especially in services sectors. Given this imbalance, the EU has long sought to improve the situation for its companies operating or wanting to operate in China. After eight years of negotiations, the EU and China concluded in December 2020 a bilateral Comprehensive Agreement on Investment (CAI). The text awaiting ratification aims to give foreign investors greater market access, enforceable via state-to-state dispute settlement. It does not yet, however, cover investor protection (such as against expropriation). Meanwhile, investor protection is covered by bilateral investment treaties between EU countries and China, which remain in force. The CAI has been met in some quarters with scepticism on economic and geopolitical grounds. The main criticism is that it provides little new market access in China, and that this small economic gain for the EU comes at the price of breaking ranks with its main political ally, the United States. Our assessment, which focuses on the economic implications, is different. It is true the CAI provides only modest new market access in China, but this is because China has already made progress in recent years in liberalising its foreign investment regulations unilaterally. The CAI binds this progress under an international treaty, marking an improvement for EU firms insofar as their market access rights can be effectively enforced. Most important, the CAI includes new rules on subsidies, state-owned enterprises, technology transfer and transparency, which will improve effective market access for EU firms operating in China. These bilateral new rules could also pave the way for reform of the multilateral rules under the World Trade Organisation, with the aim of better integrating China into the international trading and investment system – a goal shared by the EU, the United States and other like-minded countries. From an economic viewpoint therefore, the CAI is an important agreement, and one worth having. However, its ratification by the European Parliament is unlikely while China continues to apply sanctions against some members of the European Parliament and other critics of China’s human rights record.
Topic:: Science and Technology, Bilateral Relations, European Union, Investment, and Liberalization
Political Geography:: China and Europe

423. A whole-economy carbon price for Europe and how to get there

Author:: Ottmar Edenhofer, Mirjam Kosch, Michael Pahle, and Georg Zachmann
Publication Date:: 03-2021
Content Type:: Policy Brief
Institution:: Bruegel
Abstract:: Putting carbon pricing at the centre of the EU climate policy architecture would provide major benefits. Obtaining these benefits requires a uniform, credible and durable carbon price – the economic first-best solution, however, several preconditions required to attain this solution are not yet met. This paper proposes a sequenced approach to ensure convergence of the policy mix on the first-best in the long run.
Topic:: Climate Change, Energy Policy, European Union, Carbon Tax, and Carbon Emissions
Political Geography:: Europe

424. Low interest rates in Europe and the US: one trend, two stories

Author:: Maria Demertzis and Nicola Viegi
Publication Date:: 03-2021
Content Type:: Policy Brief
Institution:: Bruegel
Abstract:: In both Europe and the United States, interest rates have been declining for more than fifteen years. For much of this period, real interest rates have been negative and they are expected to remain negative for at least another decade. The literature associates this decline in interest rates with a similarly protracted decline in productivity. But the decline in productivity appears paradoxical given major technological advances. The decline in the price of capital is underpinned by the factors that have caused a decline in demand for capital, as well as a relative increase in its supply. On the supply side, aging and an increase in overall macroeconomic risk since the financial crisis have both led to increased savings. On the demand side, the increase in the importance of intangible capital in production has reduced the demand for physical capital. Nevertheless, for the US, the literature has identified the increase in market concentration as the biggest factor responsible for the reduction in the overall demand for capital. Digital innovation has led to the creation of champion firms that have captured big market shares and have been able to prevent others from entering not only the US market, but markets globally. This has dampened investment. Europe is affected by US digital dominance, but other factors, including aging and increased risk, are more prominent in sustaining the downward pressure on interest rates. In particular, the lack of risk capital, in the context of capital markets, contributes to this downward pressure in the EU. As the knowledge economy relies increasingly on intangible capital, a bank-based system that requires collateral is not well suited to finance investments. A lack of suitable finance will remain an important factor in the downward pressure on interest rates. The structural factors behind the downward pressure on interest rates imply that macroeconomic policy will have a reduced role in managing aggregate demand. Monetary policy in the euro area will be more about preventing financial fragmentation and less about stimulating demand. Equally, fiscal policy will have more of a supporting rather than stimulating role. Tackling the structural decline in market dynamism and therefore in real rates will require structural policies to reduce market power globally and ensure the creation of capital markets in the EU.
Topic:: Monetary Policy, Governance, European Union, Finance, and Macroeconomics
Political Geography:: Europe, North America, and United States of America

425. The geopolitics of the European Green Deal

Author:: Mark Leonard, Jeremy Shapiro, Jean Pisani-Ferry, Simone Tagliapietra, and Guntram B. Wolff
Publication Date:: 02-2021
Content Type:: Policy Brief
Institution:: Bruegel
Abstract:: The European Green Deal is a plan to decarbonise the EU economy by 2050, revolutionise the EU’s energy system, profoundly transform the economy and inspire efforts to combat climate change. But the plan will also have profound geopolitical repercussions. The Green Deal will affect geopolitics through its impact on the EU energy balance and global markets; on oil and gas-producing countries in the EU neighbourhood; on European energy security; and on global trade patterns, notably via the carbon border adjustment mechanism. At least some of these changes are likely to impact partner countries adversely. The EU needs to wake up to the consequences abroad of its domestic decisions. It should prepare to help manage the geopolitical aspects of the European Green Deal. Relationships with important neighbourhood countries such as Russia and Algeria, and with global players including the United States, China and Saudi Arabia, are central to this effort, which can be structured around seven actions: Help neighbouring oil and gas-exporting countries manage the repercussions of the European Green Deal. The EU should engage with these countries to foster their economic diversification, including into renewable energy and green hydrogen that could in the future be exported to Europe. Improve the security of critical raw materials supply and limit dependence, first and foremost on China. Essential measures include greater supply diversification, increased recycling volumes and substitution of critical materials. Work with the US and other partners to establish a ‘climate club’ whose members will apply similar carbon border adjustment measures. All countries, including China, would be welcome to join if they commit to abide by the club’s objectives and rules. Become a global standard-setter for the energy transition, particularly in hydrogen and green bonds. Requiring compliance with strict environmental regulations as a condition to access the EU market will be strong encouragement to go green for all countries. Internationalise the European Green Deal by mobilising the EU budget, the EU Recovery and Resilience Fund, and EU development policy. Promote global coalitions for climate change mitigation, for example through a global coalition for the permafrost, which would fund measures to contain the permafrost thaw. Promote a global platform on the new economics of climate action to share lessons learned and best practices.
Topic:: Climate Change, Energy Policy, European Union, and Geopolitics
Political Geography:: Europe

426. The productivity paradox: policy lessons from MICROPROD

Author:: Gregory Claeys and Maria Demertzis
Publication Date:: 01-2021
Content Type:: Policy Brief
Institution:: Bruegel
Abstract:: Productivity growth in Europe has been on a downward trend for several decades. Given that productivity growth is a crucial source of output growth, particularly in an aging society like the European Union, it is crucial to understand what is driving this slowdown and what the potential consequences are for our economic model and for citizens’ welfare. Some explanations for this trend are global in nature, but there are also significant differences in country structures in Europe that have led to different outcomes and that need to be accounted for before policy prescriptions can be made. The objective of MICROPROD, an EU-wide research project that runs until the end of 2021, is to contribute to this research strand by using data from various European countries to study the microeconomic mechanisms behind this macroeconomic phenomenon. In particular, the aim is to understand the challenges posed to Europe by the fourth industrial revolution and its impact on productivity in the context of globalisation and digitalisation, and to recommend policies to address these challenges. MICROPROD researchers have so far delivered 20 papers on four broad issues relevant for today’s policy debates: the measurement and effects of intangible capital on productivity; the impact of globalisation, international trade and the integration of global value chains (GVCs) on productivity; factor allocation and allocative efficiency; and finally the social consequences of the two structural shocks Europe has faced in the last two decades: globalisation and technological progress. This Policy Contribution reviews the main conclusions of these 20 MICROPROD papers and how they inform policy debates. However, the mid-point of the three-year MICROPROD project also coincided with the start of the COVID-19 crisis, which might have accelerated some trends or possibly reversed others. We therefore discuss how some of the messages of MICROPROD research may contribute to our understanding of the current crisis and its aftermath.
Topic:: Globalization, Governance, European Union, Macroeconomics, Productivity, and Digitalization
Political Geography:: Europe

427. Economic crisis in the Middle East and North Africa

Author:: Marek Dabrowski and Marta Dominguez-Jimenez
Publication Date:: 01-2021
Content Type:: Policy Brief
Institution:: Bruegel
Abstract:: In the 2010s, the economic situation in the Middle East and North Africa (MENA) deteriorated as a result of lower oil and other commodity prices, a new round of domestic political instability, continuous intra-regional conflicts, stalled economic and governance reforms and, finally, the COVID-19 pandemic. The growth of real GDP, which slowed after the global financial crisis of 2008-2009, further decelerated in the second half of the 2010s and became negative in 2020 as result of the COVID-19 shock. Fiscal balances have deteriorated, even in the oil-exporting countries, and public debt has grown rapidly. MENA countries continue to face numerous long-term socio-economic and institutional challenges including high unemployment (especially youth unemployment), low female labour-market participation rates, the poor quality of education, costly and ineffective public sectors, high military and security spending, high energy subsidies and trade protectionism. Only comprehensive long-term reform programmes can address these challenges. The European Union is MENA’s second largest trading partner after the region itself, and is one of two main sources of foreign direct investment and a major aid donor. However, given the critical importance of the MENA region to its own security and stability, the EU’s engagement in conflict resolution and in supporting economic and political transformation of the region is insufficient and should be intensified. The EU should also update and upgrade its existing association agreements with the countries of the Southern and Eastern Mediterranean, including their free trade provisions.
Topic:: International Trade and Finance, Governance, European Union, Trade, COVID-19, and Economic Crisis
Political Geography:: Europe, Middle East, and North Africa

428. The nonsense of Next Generation EU net balance calculations

Author:: Zsolt Darvas
Publication Date:: 01-2021
Content Type:: Policy Brief
Institution:: Bruegel
Abstract:: The estimation of payments from the European Union’s COVID-19 economic recovery fund, Next Generation EU (NGEU), to each EU country in 2021-2026 involves uncertainties, yet the overall magnitudes can be estimated with a reasonable degree of precision. In contrast, estimating member states’ contributions to the repayment of EU debt (which will be issued to finance NGEU spending) is burdened with enormous difficulties, primarily related to the uncertainty of gross national income projections up to 2058. Some numerical scenarios can be put forward to illustrate the difficulties in estimating the amounts of such future contributions.
Topic:: Economics, Governance, European Union, Macroeconomics, and COVID-19
Political Geography:: Europe

429. Deterrence by Detection: Using Surveillance to pre-Empt Opportunistic Aggression

Author:: Thomas G. Mahnken and Grace B. Kim
Publication Date:: 01-2021
Content Type:: Policy Brief
Institution:: NATO Defense College
Abstract:: On NATO’s entire Eastern and South-Eastern flank, the Allies face a major, pressing and subtle challenge. Using sub-conventional grey zone tactics, Moscow has repeatedly tried, and at times succeeded, in expanding its influence, eroding international norms, undermining the rules-based in- ternational order, and shifting the balance of power in its favour. Preventing Russia from launching such op- portunistic acts of aggression is particularly import- ant because its armed forces are developing the ability to attack quickly – under the cover of increasingly capable defences – countries on their periphery in a clear effort to impose a fait accompli.1 NATO countries are at a particular disadvantage in this type of compe- tition. Their force structures consist of expensive and technologically complex information-gathering platforms, such as satellites and manned aircraft, which due to their high costs are also scarce and employed with reluctance by states who generally hesitate to put them in harm’s way. Additionally, the prohibitively high cost of these platforms deters some countries from investing in these types of capabilities. As debates within NATO about cash, capabilities and contributions continue to hold the stage, highlighting Allies’ needs for different types of capabilities – less expensive, more resilient, and relatively more disposable – is important.2 Equal- ly critical is the need for Allies to develop new concepts of operations as well as new organi-zations to employ them effectively. The solution may not involve fielding exotic new capabilities so much as employing existing ones in innovative ways. It will also benefit greatly from approaches that allow Allies and partners to participate fully. If we do not adapt, we risk being surprised by potentially catastrophic events in a future conflict.
Topic:: NATO, Diplomacy, Regional Cooperation, Military Strategy, and Surveillance
Political Geography:: Europe, North Atlantic, Eastern Europe, North America, and Southern Europe

430. Operation Althea and the Virtues of the Berlin Plus Agreement

Author:: Olivier Rittimann
Publication Date:: 01-2021
Content Type:: Policy Brief
Institution:: NATO Defense College
Abstract:: What is commonly known as the “Ber- lin Plus” arrangements, signed in March 2003, provides for the European Union (EU) to draw upon NATO’s assets and capabilities for operations in which the Alliance would not be militarily involved. Following lengthy delays incurred by the Cyprus question, it was only as of 2003 that the agreement was successfully implemented with the transfer of operations from NATO to the EU in both the former Yugoslav Republic of Macedonia (2003) and then in Bosnia-Herzegovina (2004). The Berlin Plus agreement guarantees EU access to NATO planning capabilities, which contribute to EU- led military operations through the identification of command options, procedures for release and recall of NATO assets and capabilities, and the exchange of classified intelligence under reciprocal security protection rules. At the end of the conflicts in the former Yugoslavia (1999), the EU had no defence staff fit to plan nor conduct an operation, and it is only fifteen years ago that member states established national Operation Headquarters (OHQ), which nations make available for EU operations, as was done in 2006 in the Demo- cratic Republic of Congo and in 2007 in Chad. At the end of the 1990s, the Berlin Plus proposal made em- inent sense: it prevented any duplication (by the EU) of assets and fostered the emergence of a European operational culture. But is the Arrangement still fit for purpose almost 20 years later?
Topic:: NATO, Diplomacy, Regional Cooperation, and Military Strategy
Political Geography:: Europe, North Atlantic, and North America

431. NATO's Eastern Flank: Retooling the US-Baltic Security Link

Author:: Andris Banka
Publication Date:: 02-2021
Content Type:: Policy Brief
Institution:: NATO Defense College
Abstract:: In recent years NATO has markedly increased its presence in the Baltic states. Relatively “light”, yet highly diverse multinational forces have been placed across the Alliance’s frontline with an underly- ing objective: to deter Russia. In this effort, the United States has served as a critical ballast. The Pentagon has directed sophisticated military exercises and rotated US service members throughout the region. These mea- sures, however, often did not align with US President Donald Trump’s spoken words nor written tweets. This obvious dichotomy disoriented Allied governments and shook bedrock assumptions about US security commitments. As political power changes hands in Washington, this lends an opportunity for a retooling of the transatlantic partnership. Domestically, incoming US President Joe Biden ran on the platform “Build Back Better”. In the spirit of that slogan, this Policy Brief lays out policy cor- rectives that both sides of the Atlantic could pursue to strengthen the US-Baltic security link.
Topic:: Security, Defense Policy, NATO, Diplomacy, Regional Cooperation, and Military Strategy
Political Geography:: Europe, North Atlantic, and North America

432. Central European Security: History and Geography Matter

Author:: Marcin Zaborowski
Publication Date:: 02-2021
Content Type:: Policy Brief
Institution:: NATO Defense College
Abstract:: The post-Cold War enlargements have changed the Alliance, its geopolitics and the definition of its purpose, which is no longer limited to deterring against threats to Allies’ territory. Enlarge- ments have also redefined the security and defence policies of the new member states, by transforming their armed forces, civil military relationships and im- pacting their defence industries. The states that joined NATO since 1989 are usually categorized as Central Europe or Central and East- ern Europe. Within this Central European realm of new member states, one can distinguish between the North-East, the Centre, the South-East, and the West- ern Balkans. All states in these groupings were com- munist prior to the end of the Cold War. Today, with the Cold War fast becoming a faded memory, Central Europeans tend to define their security needs with in- creasing divergence, with major repercussions on their defence policies, in spite of their belonging to the same Alliance. This Policy Brief maps out Central Europe by identifying groups of states in the region and looking at defence policy divergences. It focuses on a number of indicators, such as defence spending, acquisition of defence equipment and attitudes towards hosting for- eign NATO troops on their soil.
Topic:: Defense Policy, NATO, Regional Cooperation, Military Strategy, and Post Cold War
Political Geography:: Europe, North Atlantic, and North America

433. The Strategic Argument for a Political NATO

Author:: Heather A Conley
Publication Date:: 03-2021
Content Type:: Policy Brief
Institution:: NATO Defense College
Abstract:: The 1949 Washington Treaty is a remarkably brief document consisting of a preamble and 14 articles. The Treaty describes only the po- litical commitments and obligations of the signato- ries. It does not articulate a requirement for NATO members to spend a certain amount of their Gross Domestic Product (GDP) on defense nor does it specify the military capabilities that a NATO member must possess to defend the Alliance. From 1949 to the collapse of the Soviet Union, NATO was the singular locus of geopolitical discus- sion between North America and Europe. These were not easy discussions, yet the Alliance weathered strident policy and geopolitical policy differences. NATO also endured its members temporarily ceasing to be democracies due to military coups or concern about Communist influence on NATO governments. With a political body standing on the shoulders of a credible military deterrence, Allies were able to deploy creative problem-solving skills to bridge political dif- ferences, such as the policy innovation of deterrence and détente, while pursuing other, quieter methods, such as the temporary suspension of sharing sensitive intelligence from compromised NATO governments. Unfortunately, NATO’s centrality as a political forum greatly diminished after the Cold War as the Alliance reduced its political consultations in a less demanding geopolitical environment. Despite occa- sional interruptions of intense political discussion re- lated to conflict in the Balkans and the September 11th attacks, US retrenchment, combined with Europe’s inward focus, minimized NATO as a political forum. NATO was increasingly consumed by tactical decisions on out-of-area operations and transatlantic policy divisions over the Iraq War which fueled both Europe’s desire for greater autonomy and America’s questioning of the military utility of its Allies. NATO leaders substituted tactical – albeit important – military decisions regard- ing troop contributions, placement, and caveats as a substitute for political discussion. This political drift has now become so great that NATO members have begun to withhold support for the defensive planning of other Allies and new disputes between NATO members have the potential to escalate.
Topic:: Defense Policy, NATO, Regional Cooperation, Military Strategy, and Grand Strategy
Political Geography:: Europe, North Atlantic, and North America

434. The Global Dimensions of NATO's Future Posture

Author:: Michael Clarke
Publication Date:: 03-2021
Content Type:: Policy Brief
Institution:: NATO Defense College
Abstract:: NATO has always been an important player in global politics. It is in the nature of the Alli- ance that its essential military missions were always carefully defined and its geographical boundar- ies strictly set by the collective defence commitments among its members. Nevertheless, NATO’s role as a politico-military institution among the great powers of the Cold War ensured it would always be global- ly significant. It could not have been otherwise. This remains as much the case – though now in different ways – as we consider the international environment taking shape for the 2030s. In this new environment the unavoidable global responsibilities of being a regional military alliance can be summarised in three ways; looking at NATO’s role in helping western powers defend their wider interests in the multi-polar world; helping meet the pseudo-ideological challenges posed by the rise of autocracies; and contributing to issues of the “global commons”.
Topic:: Defense Policy, NATO, Regional Cooperation, Military Strategy, and Leadership
Political Geography:: Europe, North Atlantic, and North America

435. Jihadi Radicalization: Between the Local and the Global

Author:: Olivier Roy
Publication Date:: 04-2021
Content Type:: Policy Brief
Institution:: NATO Defense College
Abstract:: Any counter-terrorist policy should be shaped according to the nature of the threat. For an alliance like NATO, it is particularly import- ant to distinguish the fundamental characteristics of global movements from local terrorist entities. Whilst global jihadi propaganda and Islamist ideology still represent a significant danger, in many instances, it is the local dynamics that prevail. Complex NATO operations – designed to prevent, stabilize or rebuild – must be framed and designed accordingly.
Topic:: Defense Policy, NATO, Globalization, Regional Cooperation, Terrorism, Military Strategy, Radicalization, Local, and Jihad
Political Geography:: Europe, North Atlantic, and North America

436. Net Assessment: "Competition Is For Losers"

Author:: Andrea Gilli
Publication Date:: 05-2021
Content Type:: Policy Brief
Institution:: NATO Defense College
Abstract:: Under the guidance of the Secretary General Jens Stoltenberg, in 2020 NATO embarked on a reflection process aimed at equipping the Alliance for the challenges of 2030.1 Composed of several parts, actors and phases, the process ul- timately aims to make NATO more relevant in the years ahead when technological disruption, climate change, competition among Great Powers and vio- lent non-state actors will pose new and major threats. Ideas, proposals, and recommendations are coming in from within and from outside the Alliance. Inter- estingly, among the recommendations, several voices have called for NATO to expand its net assessment capabilities.2 For most observers, even in the security and defence world, net assessment is an esoteric word. While many may have heard of Andrew Marshall and the US Department of Defense’s Office of Net As- sessment, most would probably struggle to define the term. This Policy Brief provides a short introduction to the topic: what is net assessment, how and why has it emerged, how reliable is it and how could NATO use it?
Topic:: Defense Policy, NATO, Regional Cooperation, Military Strategy, and Leadership
Political Geography:: Europe, North Atlantic, and North America

437. NATO, Strategy, and Net Assessment

Author:: Niccolo Petrelli
Publication Date:: 05-2021
Content Type:: Policy Brief
Institution:: NATO Defense College
Abstract:: In late 2020, analysts recommended for the first time the establishment within NATO of a net assessment (NA) capability to deal with an in- creasingly complex strategic environment.1 The same recommendation was reiterated in the NATO 2030 report to address the problem of “strategic simultane- ity”: i.e. the emergence of multiple, simultaneous and interconnected threats. According to the Reflection Group appointed by the Secretary General, “NATO should consider creating a new net assessment office [...] with the mission of examining NATO’s strate- gic environment on the basis of agreed threats and challenges across the whole spectrum of military and non-military tools. [...] A net assessment function [...] would bring a systematic methodology distinct from horizon scanning. It would exist to analyse the organisation’s strengths and options [...]”.2 The term NA was first coined in the US during the early 1970s by national security official Andrew W. Marshall to refer to a constellation of concepts and techniques for evaluating relative power. In West- ern usage, however, and for some decades now, it has been employed in a broader sense to denote the function of combining the appreciation of one’s own strength against that of one’s opponents in interna- tional affairs at the highest level.
Topic:: NATO, Regional Cooperation, Military Strategy, and Grand Strategy
Political Geography:: Europe, North Atlantic, and North America

438. Providing security in Iraq - what do Iraqis think?

Author:: Maria-Louise Clausen
Publication Date:: 04-2021
Content Type:: Policy Brief
Institution:: Danish Institute for International Studies (DIIS)
Abstract:: Denmark assumed leadership of NATO Mission Iraq in late 2020. The Iraqi people’s perceptions of their personal security and of those who provide it can impact the success of this mission. A recent survey provides new insights. At a time of political turmoil and insecurity in Iraq, NATO has vowed to step up its commitment in the region. This happens at a time of increased resistance to the US presence in Iraq, and a deteriorating security situation due to the escalation of the conflict between the US and Iran taking place on Iraqi soil, as well as signs of an Islamic State resurgence. Security is a major concern in Iraq. When respondents were asked to select their most important concern for the Iraqi government to address, the most common choice was ‘maintaining security and stability’ (30.5%), closely followed by the job situation (27.5%), and corruption (26.2%). This should be read in conjunction with the fact that 71.7% of respondents stated that they experience their personal security as currently either only partially or not at all ensured. This was most pronounced among the surveyed Shias, with only 18.8% indicating that they feel fully or partly secure in contrast to 46.7% of Sunni respondents.
Topic:: Security, Defense Policy, NATO, Democratization, Diplomacy, International Organization, Non State Actors, Fragile States, Violence, Peace, Police, and Justice
Political Geography:: Iraq, Europe, Middle East, and Denmark

439. Small states’ security strategies need an international energy dimension: What can be learned from the Danish Nord Stream and Baltic Pipe negotiations?

Author:: Trine Villumsen Berling
Publication Date:: 05-2021
Content Type:: Policy Brief
Institution:: Danish Institute for International Studies (DIIS)
Abstract:: Denmark encountered a number of unforeseen obstacles when negotiating the Nord Stream and Baltic Pipe gas pipelines, and the country ended up standing exposed and alone. A better politics of energy alliances and better strategic preparation are key lessons for small states like Denmark when dealing with the problematic combination of security and energy. RECOMMENDATIONS: Small states should include energy in strategic documents pertaining to foreign and security policies, as energy is a tool in the security toolbox of the great powers. Self-sufficiency in energy does not mean that a country is shielded from the dynamics of international energy. Small states should strive to build enduring political alliances focused on energy. Small states should prioritise sending experts to the NATO Centre of Excellence for Energy Security in order to stay on top of the international security situation concerning energy.
Topic:: Security, Foreign Policy, Defense Policy, Energy Policy, Environment, Oil, Natural Resources, European Union, Gas, and Minerals
Political Geography:: Europe, Denmark, and Baltic States

440. European strategic autonomy: From misconceived to useful concept what can we learn from the Northern outlook?

Author:: Christine Nissen and Jessica Larsen
Publication Date:: 02-2021
Content Type:: Policy Brief
Institution:: Danish Institute for International Studies (DIIS)
Abstract:: The concept of ‘European strategic autonomy’ is girdled by myths and resistance. These common misconceptions can be overcome by member states to strengthen the EU in the face of today’s challenging security environment. RECOMMENDATIONS: Ways forward for the concept of strategic autonomy: Level of ambition: strategic autonomy should not be seen as an end in itself but as a means to protect and promote common values and interests across strategically important EU policy areas. Geography: strategic autonomy should enable the EU to undertake activities, in particular in the immediate European neighbourhood. Policy scope: strategic autonomy should encompass the entire spectrum of foreign and security policy, and not just defence.
Topic:: International Relations, Security, Foreign Policy, Defense Policy, International Organization, European Union, and Strategic Autonomy
Political Geography:: Europe and Denmark

441. Renewable energy in Africa is about more than climate change: Aid needed for both clean energy and local capacity

Author:: Rasmus Hundsbæk Pedersen and Ole Winckler Andersen
Publication Date:: 03-2021
Content Type:: Policy Brief
Institution:: Danish Institute for International Studies (DIIS)
Abstract:: Development assistance for new renewable energy in Sub-Saharan Africa is increasingly being used to mobilise additional private capital. Recipient countries do not always share the priorities of donors. Realism and long-term support are key. RECOMMENDATIONS: Continue funding, but also acknowledge different interests and objectives, in order to move new renewable energy to scale. Balance the support for market development with support to government entities. Support longer-term capacity-building to ensure energy sector sustainability in recipient countries. Adopt flexible approaches and ensure independent advice to governments and institutions.
Topic:: Climate Change, Development, Foreign Aid, and Renewable Energy
Political Geography:: Africa, Europe, Denmark, and Sub-Saharan Africa

442. A lack of evidence-based approaches will weaken the implementation of the EU Action Plan against migrant smuggling 2021-2025

Author:: Gabriella Sanchez
Publication Date:: 03-2021
Content Type:: Policy Brief
Institution:: Danish Institute for International Studies (DIIS)
Abstract:: The upcoming EU Action Plan against migrant smuggling 2021-2025, like its predecessor, suggests that the prevention of and the fight against migrant smuggling will continue to be at the centre of a strong and comprehensive European approach to migration management. However, to be effective, the Action Plan must rely on the growing evidence-base concerning the structure and organization of migrant smuggling, as well as rethink the way smuggling research and analysis is produced. Doing otherwise may seriously impact the Action Plan’s implementation and outcomes. Recommendations: Demand that gender, race and class perspectives are present in smuggling and counter-smuggling research and analyses in ways that identify the wider impact of EU actions on communities in countries of origin, transit and destination and within the EU. Include the perspectives of third-country, junior and female researchers, scholars and policy analysts, and involve stakeholders and informants beyond those typically reached out to during research, policy making or knowledge generating processes. Create an open access database that includes examples of smuggling caselaw and legislation that showcase the impact of EU law enforcement agencies’ counter-smuggling efforts in transit, destination and origin countries and within the EU to demonstrate clear efforts towards transparency and accountability.
Topic:: International Relations, Foreign Policy, Development, Migration, Borders, and Risk
Political Geography:: Europe

443. Georgia’s Europeanization challenged from within: Domestic foreign policy discourses and increasing polarization

Author:: Salome Minesashvili
Publication Date:: 08-2021
Content Type:: Policy Brief
Institution:: Norwegian Institute of International Affairs
Abstract:: Georgia`s foreign policy, especially the implementation of international agreements, is best understood in the context of domestic contestation among alternative foreign policy views. • Nativist views exert increasing influence on the Georgian public. Georgia’s European partners should engage the Georgian public through civil society support and people-to-people contacts, to build trust and facilitate open debate. • The exclusive character of differing foreign policy positions further fuels the extreme political polarization. The government and opposition should be encouraged to come together over shared democratic values, instead of playing up the differences. • Pluralism and tolerance should be encouraged in the public and media debate.
Topic:: Foreign Policy, Treaties and Agreements, Public Opinion, Europeanization, and Polarization
Political Geography:: Russia, Europe, Eurasia, and Georgia

444. A new momentum for EU-Turkey cooperation on migration

Author:: Nienke van Heukelingen
Publication Date:: 02-2021
Content Type:: Policy Brief
Institution:: Clingendael Netherlands Institute of International Relations
Abstract:: This policy brief considers how to move forward with the (financial element of the) EU-Turkey statement agreed in 2016, under which the first tranche of 3 billion euros will end mid-2021. In order not to reverse the progress achieved and to continue the work on improving the resilience of the 4.1 million refugees in Turkey, there is an urgent need for the European Union and Turkey to agree on a new financial framework. One that builds on the current, generally successful framework – the EU Facility for Refugees in Turkey (FRiT) – but which would divide the burden between Turkey and the EU more equally. Both blocs would, moreover, do well to look into the possibilities of extending the area of cooperation to Idlib. In that area, which is currently under Turkey’s military control, almost three million internally displaced persons (IDPs) currently lack adequate shelter and essentials, which could potentially lead to various displacement scenarios. Neither of those decisions will be easy and will require serious support from all EU member states, but the fact is Turkey remains essential in pursuing the EU’s core interest: preventing another refugee flow into Europe.
Topic:: International Cooperation, Migration, European Union, Refugees, and Borders
Political Geography:: Europe, Turkey, Middle East, and Syria

445. Whose Long Arm? Challenges to Understanding Turkish Diaspora Politics

Author:: Christopher Houtkamp and Kars de Bruijne
Publication Date:: 02-2021
Content Type:: Policy Brief
Institution:: Clingendael Netherlands Institute of International Relations
Abstract:: This Clingendael policy brief seeks to explain visible manifestations of Turkish politics in European cities. Why does Turkish politics lead to unrest in Rotterdam and Berlin and what institutional mechanisms facilitate this? The brief highlights various drivers, institutional manifestations and historical changes, but also points out that there are a number of uncertainties and questions about the motivations for, and modus operandi of, Turkey’s influence in European societies. These questions are all the more relevant as European policy-makers increasingly seek to take measures in order to curb this. The main argument developed in this brief is that effective policy ‘at home’ (in Europe) will require better knowledge of socio-political developments ‘abroad’ (in Turkey). The first and second parts of this brief, therefore, show how the drivers of Turkish influence on the diaspora have changed over time. The third section highlights how present-day diaspora politics is institutionally anchored in Western Europe. Most of the practical examples in this brief are drawn from the Dutch context, but the dynamics will be familiar to those observing this phenomenon in other Western European countries.
Topic:: Politics, Diaspora, and Institutions
Political Geography:: Europe, Turkey, and Middle East

446. Energising EU enlargement? The prospects of the Green Agenda for the Western Balkans

Author:: Wouter Zweers, Giulia Cretti, and Kristina Naunova
Publication Date:: 05-2021
Content Type:: Policy Brief
Institution:: Clingendael Netherlands Institute of International Relations
Abstract:: With the Green Agenda for the Western Balkans, the 2050 climate neutrality goal of the European Union has been extended to the six countries in South-Eastern Europe that aspire to join the Union. The Green Agenda is a promising tool for fostering climate and energy policy measures in the Western Balkans, a region with high vulnerability to climate change risks and little energy diversification away from coal. But could the Green Agenda also be a catalyst for renewed interest and enhanced political engagement, leading to a much-needed impetus to the EU enlargement process? This policy brief asks how the Green Agenda can work in the interest of both the objective of a climate neutral continent and the EU accession of the Western Balkan countries.
Topic:: Climate Change, Energy Policy, European Union, and Diversification
Political Geography:: Europe, Eastern Europe, and Balkans

447. Fruitless cherry picking?: EU engagement with the Syrian opposition (Etilaf)

Author:: Lars Hauch
Publication Date:: 07-2021
Content Type:: Policy Brief
Institution:: Clingendael Netherlands Institute of International Relations
Abstract:: This policy brief examines the EU’s engagement and relationship with Syria’s main political opposition umbrella, the Coalition for Syrian Revolutionary and Opposition Forces (Etilaf), which was founded in late 2012. It discusses the EU’s engagement strategies with the Etilaf and their impact on its development in the context of the Syrian conflict. The brief highlights that the EU did not substantiate the international legitimacy it granted the organisation early on during the conflict with policies that would have allowed it to expand its domestic legitimacy and capabilities. This policy contributed to developments in which the Etilaf rapidly lost its original potential. While the Etilaf today faces a range of structural and operational challenges that need to be addressed, the brief nevertheless recommends EU institutions and Member States to increase their support for the Etilaf and the Interim Government linked with it, if a number of conditions can be met. Such support will help maintain and develop these bodies into a viable centre of political opposition to the Assad regime. Practically speaking, this objective can be pursued by piloting conditional EU support to areas of northwestern and northern Syria that are nominally under the control of the Interim Government. It also requires building a partnership with Turkey to jointly support local Syrian administration(s) in the same areas.
Topic:: Politics, European Union, Conflict, Syrian War, Bashar al-Assad, and Opposition
Political Geography:: Europe, Middle East, and Syria

448. Exploring avenues in the EU’s rule of law crisis: What role for the Netherlands?

Author:: Luuk Molthof, Nienke van Heukelingen, and Giulia Cretti
Publication Date:: 08-2021
Content Type:: Policy Brief
Institution:: Clingendael Netherlands Institute of International Relations
Abstract:: Despite the existence of an extensive ‘rule of law toolbox’, the EU has found it difficult to deal with rule of law issues. Many experts attribute the EU’s failure to act to a lack of political will and determination on the part of EU institutions and member states. However, not all actors are lacking in political will (equally). The Netherlands, for instance, has been very concerned about the erosion of the rule of law inside the EU and has been one of the more active member states – along with, for instance, Belgium, Finland, Sweden and Denmark – in trying to address the EU’s rule of law crisis. In this policy brief, we examine three possible avenues available to the Netherlands to strengthen the political will of EU institutions and (like-minded) peers to assertively address this crisis and to increase pressure on backsliding member states to safeguard the rule of law.
Topic:: European Union, Democracy, Rule of Law, and Institutions
Political Geography:: Europe, Finland, Belgium, Denmark, Sweden, and Netherlands

449. The day after: The conflicting implications of Brexit

Author:: Al Jazeera Center for Studies
Publication Date:: 01-2021
Content Type:: Policy Brief
Institution:: Al Jazeera Center for Studies
Abstract:: Britain has effectively left the EU after long and tiresome negotiations. But the implications of Brexit have not transpired completely as the aftershocks may be felt within Britain itself in the form of increased desire for independence in Scotland; and London may fail to establish trade agreements that can compensate for its exit from the EU.
Topic:: European Union, Economy, Brexit, and Trade
Political Geography:: United Kingdom, Europe, and Scotland

450. Germany’s Debt Brake and Europe’s Fiscal Stance after COVID-19

Author:: Shahin Vallée, Jérémie Cohen-Setton, and Dominik Buhl
Publication Date:: 05-2021
Content Type:: Policy Brief
Institution:: German Council on Foreign Relations (DGAP)
Abstract:: Germany’s plan to return to its debt brake creates a serious risk of premature fiscal tightening. Given that the fiscal divide between Europe and the US will widen sharply in 2021, a hasty return to European and German fiscal rules would stifle recovery and undermine efforts to rebuild transatlantic ties in trade and macroeconomic cooperation. This paper proposes several practical options to attenuate the fiscal drag associated with a return to the debt brake and calls for a broad debate on its reform.
Topic:: Debt, European Union, Finance, Transatlantic Relations, and COVID-19
Political Geography:: Europe, Germany, and United States of America

451. The Use of Games in Strategic Foresight: A Warning from the Future

Author:: Roderick Parkes and Mark McQuay
Publication Date:: 07-2021
Content Type:: Policy Brief
Institution:: German Council on Foreign Relations (DGAP)
Abstract:: After a decade of crisis, the EU now routinely uses futures methods to anticipate the unexpected. Its aim is to address its blind spots. This paper details our experience of designing a foresight exercise to help EU diplomats face up to one of the most ingrained types of blind spot: a taboo issue. But our experience showed instead the dangers of such exercises. Far from needing encouragement to address a taboo, our target audience wanted an excuse to do so, reflecting a shift to a more “geopolitical EU.”
Topic:: Diplomacy, Politics, European Union, and Strategic Planning
Political Geography:: Europe

452. Rule of Law Diplomacy: Why the EU Needs to Become More Vocal in Georgia, Moldova, and Ukraine

Author:: Laura Gelhaus, Pavel Havlíček, and Stefan Meister
Publication Date:: 07-2021
Content Type:: Policy Brief
Institution:: German Council on Foreign Relations (DGAP)
Abstract:: Supporting the rule of law has been central to the EU’s Eastern Partnership (EaP) policy since 2009. There has been very limited success in this, however. The EU’s core problem is what is usually its strength: addressing a highly politicized area through a technical approach. EU policymakers need to acknowledge that their political silence is permitting ruling elites in EaP countries to block progress in the rule of law and that the EU is failing to call out pervasive systems of informality there.
Topic:: Diplomacy, European Union, Partnerships, and Rule of Law
Political Geography:: Europe, Ukraine, Moldova, Georgia, and United States of America

453. The Coming Iran Nuclear Talks: Openings and Obstacles

Author:: Dennis Ross
Publication Date:: 01-2021
Content Type:: Policy Brief
Institution:: The Washington Institute for Near East Policy
Abstract:: A reimagined approach to Iran nuclear talks could extend the country’s breakout time, preserve U.S. negotiating leverage, and strengthen American alliances in Europe and across the Middle East. In the first in a series of TRANSITION 2021 memos examining policy challenges across the Middle East, esteemed diplomat and policymaker Dennis Ross provides an innovative approach to reengaging Iran in nuclear diplomacy. His ideas have the potential to extend Iran’s breakout time, preserve U.S. negotiating leverage, and strengthen U.S. alliances in Europe and across the Middle East. Ross explains: “If regime change is not a realistic or advisable goal, the objective must be one of changing the Islamic Republic’s behavior. While this would be difficult, history shows that the regime will make tactical adjustments with strategic consequences when it considers the price of its policies to be too high.” In the coming weeks, TRANSITION 2021 memos by Washington Institute experts will address the broad array of issues facing the Biden-Harris administration in the Middle East. These range from thematic issues, such as the region’s strategic position in the context of Great Power competition and how to most effectively elevate human rights and democracy in Middle East policy, to more discrete topics, from Arab-Israel peace diplomacy to Red Sea security to challenges and opportunities in northwest Africa. Taken as a whole, this series of memos will present a comprehensive approach for advancing U.S. interests in security and peace in this vital but volatile region.
Topic:: Foreign Policy, Diplomacy, Nuclear Power, and Joe Biden
Political Geography:: Europe, Iran, Middle East, Israel, Palestine, North America, and United States of America

454. Reforming European Economic Policies

Author:: Olivier Marty and Damien Ientile
Publication Date:: 03-2021
Content Type:: Policy Brief
Institution:: Robert Schuman Foundation (RSF)
Abstract:: Despite the European Union's ambitious response, the current crisis is a stark reminder of a nagging problem: the challenge, in practice, to the principles and concepts governing major European economic policies. This situation can be seen in monetary policy, budgetary rules, trade policy, competition, the European budget and the structure of the euro zone. It fuels resentment between Member States and populations and, paradoxically, it encourages economic divergence. It is also undermining the legibility and credibility of European action in the eyes of the public. It therefore would seem advisable to reform the European economic framework in a pragmatic rather than radical way.
Topic:: Reform, Budget, Economic Policy, and Trade Policy
Political Geography:: Europe

455. Protecting checks and balances to save the Rule of Law

Author:: Eric Maurice
Publication Date:: 04-2021
Content Type:: Policy Brief
Institution:: Robert Schuman Foundation (RSF)
Abstract:: For half a decade, the Polish government has been reshaping the country's judicial system in a process described by the European Union as a "threat to the rule of law". Despite numerous Council of Europe reports and resolutions, several infringement proceedings and decisions of the Court of Justice of the European Union (ECJ), and the unprecedented activation of the so-called Article 7 procedure of the Treaty on European Union (TEU), the transformation of the judiciary into relays of political power has continued and accelerated since the Law and Justice Party (PiS) won a new term in 2019 and the reelection of President Andrzej Duda in 2020, pushing Poland to the limits of the European legal order.
Topic:: Government, European Union, Courts, and Rule of Law
Political Geography:: Europe and Poland

456. The Governance of the European Defence Fund

Author:: Sarah Brichet, Hugo Chouarbi, Marie Dénoue, Valérian Frossard, Armony Laurent, Nicolas Libert, Anne-Flore Magnuszewski, Pauline Maillard, and Juliette Rolin
Publication Date:: 04-2021
Content Type:: Policy Brief
Institution:: Robert Schuman Foundation (RSF)
Abstract:: The launch of the European Defence Fund is a true step forward. Its objective is to facilitate the emergence of a European defence industrial and technological base through cooperation between European industrialists and thus reduce European "capability bottlenecks" in the field of military equipment while attempting to increase the Union's "strategic autonomy". With a budget of €7 billion under the EU's new multi-annual budget, a new Directorate General, DG DEFIS, will be responsible for its management, under the supervision of the European Commissioner for the Internal Market, Thierry Breton. At the heart of European institutional and conceptual transformations, its operation and management are of particular importance.
Topic:: Defense Policy, Regional Cooperation, Science and Technology, Governance, and Industry
Political Geography:: Europe

457. The European Trade Policy in the time of Covid-19: Adaptation or change of paradigm?

Author:: Danièle Hervieu-Léger
Publication Date:: 01-2021
Content Type:: Policy Brief
Institution:: Robert Schuman Foundation (RSF)
Abstract:: Crises reveal the state of a policy, reveal its ambiguities, strengths and shortcomings, and sometimes force a redefinition or clarification of its guiding principles to ensure its sustainability, if not its survival. Although at the height of the crisis, there is a reflex to completely overhaul what already exists, the constants and structuring considerations quickly tend to dampen the ardour for reform.
Topic:: Reform, European Union, Trade, COVID-19, and Adaptation
Political Geography:: Europe

458. The Eastern Partnership: between resilience and interference

Author:: Pierre Mirel
Publication Date:: 03-2021
Content Type:: Policy Brief
Institution:: Robert Schuman Foundation (RSF)
Abstract:: The fall of the Berlin Wall and the dissolution of the USSR were supposed to usher in a golden age in which liberal democracy and a market economy would naturally spread throughout the European continent. On the strength of this optimism, the European Union concluded accession negotiations with ten countries between 2003 and 2005, opened them to Croatia and Turkey, promised the same to the Western Balkans and launched the Neighbourhood Policy in the East and the South. Initiated in 2004, this policy intended to ensure 'stability and prosperity' on the European Union’s new borders after the accession of the Central and Eastern European countries.
Topic:: Foreign Policy, Partnerships, and Resilience
Political Geography:: Europe and Eastern Europe

459. The impact of Covid-19 on posted workers: the new ‘posting framework’

Author:: Sachka Stefanova-Behlert and Martina Menghi
Publication Date:: 04-2021
Content Type:: Policy Brief
Institution:: Robert Schuman Foundation (RSF)
Abstract:: We live at a time of deep and radical transformations. The pandemic has accelerated many of the changes that were already underway and has brought new challenges to the surface. Among the most affected realms of our societies, we undoubtedly find work and the freedom of movement of people. In Europe, it is precisely at the intersection of these two elements that the posting of workers lays. In this field, we are also at a crucial moment because the pandemic arrived just a few months before the deadline for the implementation of the changes related to the revision of the Posting of Workers Directive. Hence, it has become even more urgent to understand how all these changes have impacted the posting of workers as well as propose solutions to facilitate workers and companies in this adaptation path. That is key if we are to safeguard an important instrument of the European single market. This is exactly the merit of this article and its two co-authors: offering a first and clear account of the characteristics of posting of workers during the pandemic, identifying the main challenges faced by Member States, EU institutions and businesses, while also identifying some potential future developments, despite the climate of great uncertainty surrounding us.
Topic:: European Union, Crisis Management, Pandemic, and COVID-19
Political Geography:: Europe

460. EU-Africa relations in the light of the Covid-19 pandemic. State of play and prospects

Author:: Alexandre Kateb
Publication Date:: 02-2021
Content Type:: Policy Brief
Institution:: Robert Schuman Foundation (RSF)
Abstract:: According to official statistics, the African continent has been relatively spared by the Covid-19 pandemic compared to Europe, America and Asia. The factors behind the low incidence of coronavirus in Africa are not fully understood. According to the WHO, the African continent has benefited from certain structural factors such as the limited international connectivity of most African countries, with the exception of some regional "hubs" such as Johannesburg, Casablanca, Addis Ababa and Nairobi. Incidentally, the most 'connected' African countries such as Morocco and South Africa have incurred the highest prevalence rates of Covid-19, which may lend credence to this explanation.
Topic:: International Relations, European Union, Pandemic, and COVID-19
Political Geography:: Africa and Europe

461. Public development aid should refocus on agriculture and education in Africa

Author:: Louis Caudron
Publication Date:: 03-2021
Content Type:: Policy Brief
Institution:: Robert Schuman Foundation (RSF)
Abstract:: On 18 December 2020, the European Commission welcomed the political agreement reached between the European Parliament and the Member States allocating €79.5 billion to a new Neighbourhood, Development Cooperation and International Cooperation Instrument (NDCI) for the period 2021- 2027. Since its creation, the European Union has been a major player in public aid granted by rich countries to developing countries. The European Development Fund (EDF) was launched by the Treaty of Rome in 1957 and for decades provided aid to the former colonies in Africa, the Caribbean and the Pacific (ACP). The eleventh EDF, covering the period 2014- 2020 with a budget of €30.5 billion, will be replaced by the NDICI (Neighbourhood, Development and International Cooperation Instrument). The Union and its Member States are the world's largest donor of official development assistance. Their contribution of €74.4 billion in 2018 represents more than half of the OECD countries’ Official Development Assistance ($150 billion in 2018).
Topic:: Agriculture, Development, Education, and Foreign Aid
Political Geography:: Africa and Europe

462. Labor Market Impact of Immigration in the European Union

Author:: Dong-Hee Joe
Publication Date:: 04-2021
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: Immigration is one of the factors often considered as the causes of Brexit. Researchers find evidences that regions with more immigrants from the new member states of the European Union (EU hereinafter) in eastern Europe tended to vote more in favor of Brexit in the 2016 referendum. Similar relations between the size of immigrant population and anti-immigration attitudes or far-right voting are found in other richer EU member states. A common explanation for this relation is the concern that immigrants negatively affect the outcome in the host labor market. Immigration is drawing attention in Korea too. Although immigrants' share in population is still substantially smaller in Korea than in the EU, its increase is noticeable. Also, certain industries in Korea are known to be already heavily reliant on immigrant labor. Recently, as entry into the country was tightened due to the COVID-19 pandemic, firms and farms are reported to have faced a disruption in production. This trend of increasing presence of immigrants in population and in the labor market, vis-à-vis the low fertility rate and rapid aging in Korea, is raising interest and concern on the socioeconomic impact of immigration. To offer some reference for the debates related to immigration in Korea, KIEP researchers (Joe et al. 2020 and Joe and Moon 2021) look at the EU, where immigrants' presence was much higher from much earlier on, and where the greater heterogeneity among the immigrants allows for richer analyses. This World Economy Brief presents some of their findings that are salient for Korea.
Topic:: Immigration, European Union, Brexit, and Labor Market
Political Geography:: Britain, Europe, Asia, and Korea

463. China’s FDI in Europe and Europe’s Policy Response

Author:: Pyoung Seob Yang, Cheol-Won Lee, Suyeob Na, Taehyn Oh, Young Sun Kim, Hyung Jun Yoon, and Yoo-Duk Ga
Publication Date:: 04-2021
Content Type:: Policy Brief
Institution:: Korea Institute for International Economic Policy (KIEP)
Abstract:: China’s investment in the European Union (EU) increased significantly during the European financial crisis, but has been on the decline in recent years. The surge of Chinese investment has raised concerns and demands for analysis on the negative effects it could have on the EU companies and industries. In this context, the present study aims to analyze the main characteristics of Chinese investment and M&A in Europe, major policy issues between the two sides, the EU’s policy responses, and prospects of Chinese future investment in Eu-rope, going on to draw important lessons for Korea. To summarize the main characteristics of China's investment in Europe, the study found that the EU's share of China's overseas direct investment has continued to increase until recently. Second, investment in the Central and Eastern European Countries (CEECs) is gradually increasing, although it is still insignificant compared to the top five destinations in the EU: Netherlands, Sweden, Germany, Luxembourg and France. Third, China's investment in the EU is being made in pursuit of innovation in manufacturing and to acquire high-tech technologies. When it comes to China's M&A in Europe, the study found that the proportion of indirect China's M&As (via third countries (e.g. Hong Kong) or Chinese subsidiaries already established in Europe) was relatively higher than direct ones. Empirical factor analysis of investment also shows that China's investment in the EU is strongly motivated by the pursuit of strategic assets. Other factors such as institutional-level and regulatory variables are found to have no significant impact, or have an effect contrary to expectations. This suggests that China's investment in the EU is based on the Chinese government's growth strategy, and accompanies an element of national capitalism Today, It is highly expected that the COVID-19 pandemic will have a reorganizing effect on the global value chain (GVC) and Foreign investment regulation in the high-tech sector motivated by national security is emerging as a global issue as the US and the EU are tightening their control. As Korean companies are not free from the risk of falling under such regulations, a thorough and careful response is required. And for the Korean government, it is necessary to prepare legal and institutional measures regulating foreign investment in reference to the US and the EU.
Topic:: Foreign Direct Investment, Financial Crisis, European Union, Economy, Economic Growth, Global Value Chains, and COVID-19
Political Geography:: China, Europe, Asia, Korea, and United States of America

464. Socioeconomic Impacts of Climate Change in the Mediterranean

Author:: Octavi Quintana
Publication Date:: 11-2021
Content Type:: Policy Brief
Institution:: IEMed/EuroMeSCo
Abstract:: The Mediterranean Basin enjoys very at- tractive geographical, climatic, and cultural features. It hosts a high-density population mainly in the coastal areas, of over 500 million people which has doubled in the last 40 years, and it is still increasing at a high pace. The region faces severe threats including water stress, impaired food production, food security, desertiﬁcation, severe pollution to mention just a few. These threats have been exacerbated in the last decades by increased demography, migration to urban areas, tourism (the ﬁrst tourist destination in the world), and very importantly, climate change. The Mediterranean suffers from an increase of temperature 20% higher than the world average. It is a real hotspot of climate change. The present monography, sponsored by the European Institute of the Mediterranean (IEMed), addresses the socioeconomic impact of climate change. There are a lot of studies on the biophysical impact of climate change. Its socioeconomic impact has been less studied probably because of its complexity. Important knowledge gaps do exist. The purpose of gathering knowledge on the socioeconomic impact of climate change is to advise decision-makers on the difﬁcult decisions to be taken to mitigate and adapt to climate change in a region facing severe threats that climate change only exacerbates. For decision-makers, the socioeconomic impact is more relevant than the biophysical impact of climate change.
Topic:: Climate Change, Environment, Pollution, and Socioeconomics
Political Geography:: Africa, Europe, Middle East, and Mediterranean

465. Belgian Troops for Takuba: What’s at Stake?

Author:: Nina Wilen
Publication Date:: 12-2021
Content Type:: Policy Brief
Institution:: EGMONT - The Royal Institute for International Relations
Abstract:: Belgium is once again considering a significant troop contribution to one of the French-led military operations in the Sahel region – this time Task Force Takuba. Recent years’ discussions have stimulated debate about the risks and benefits linked to such a deployment but failed to result in any political consensus. Against this background, this brief answers the questions: What? Why? and So What? Belgium is once again considering a significant troop contribution to one of the French-led military operations in the Sahel region – this time Task Force Takuba. Recent years’ discussions have stimulated debate about the risks and benefits linked to such a deployment but failed to result in any political consensus. Against this background, this brief answers the questions: What? Why? and So What?
Topic:: Foreign Policy, Military Strategy, Military Intervention, and Humanitarian Crisis
Political Geography:: Africa, Europe, Belgium, and Sahel

466. Building blocks for regional cooperation on Transitional Justice

Author:: Valerie Arnould
Publication Date:: 12-2021
Content Type:: Policy Brief
Institution:: EGMONT - The Royal Institute for International Relations
Abstract:: This policy brief is a report on the expert workshop on AU-EU cooperation on transitional justice which was organised in October 2021 by Egmont – The Royal Institute for International Relations, the University of Leuven, the Belgian Federal Public Service Foreign Affairs, the European External Action Service and the African Union. The workshop sought to examine some of the challenges and lessons learned so far from AU and EU support for transitional justice. Discussions focused on four areas: transitional justice’s contribution to peacebuilding, the role of civil society in transitional justice, the integration of a socioeconomic dimension to transitional justice and the gendering of transitional justice.
Topic:: Diplomacy, Regional Cooperation, European Union, and Africa Union
Political Geography:: Africa and Europe

467. Russian policy towards Central Asia 30 years after the collapse of the Soviet Union: Sphere of influence shrinking?

Author:: Kristiina Silvan
Publication Date:: 11-2021
Content Type:: Policy Brief
Institution:: Finnish Institute of International Affairs
Abstract:: Russia views Central Asia as its sphere of influence and attempts to keep the five post-Soviet countries, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan, in its geopolitical orbit. Central Asian countries’ dependency on Russia is decreasing, albeit at a different pace in different policy spheres and geographical areas. This variation depends upon factors ranging from Moscow’s priorities, the presence and capability of Russia and other actors, and Central Asian domestic issues. Russia’s policy in Central Asia is rooted in bilateral relations, but from the early 2000s onwards, Moscow has sought to integrate the region’s states into multilateral organizations that it leads, primarily in the spheres of economy and security. Russian influence in the region is greatest in the security sphere and, due to the rise of China, smallest in the economic sector. People-to-people contacts remain strong as a result of the common Soviet past and current migration flows. Central Asian countries share Russia’s authoritarian outlook on politics. Russia remains a powerful player in Central Asia, but Moscow’s lack of a forward-looking strategy and its current great-power posturing threaten its dominance in the future.
Topic:: Foreign Policy, Hegemony, Post-Soviet Space, and Influence
Political Geography:: Russia, Europe, Central Asia, and Asia

468. Climate change and Finnish comprehensive security: Insights into enhanced preparedness

Author:: Emma Hakala
Publication Date:: 12-2021
Content Type:: Policy Brief
Institution:: Finnish Institute of International Affairs
Abstract:: Climate change is already threatening the security and stability of societies in various ways, and the impacts will only be exacerbated in the future. The security consequences of climate change can be broadly categorised into direct, cascading and transition impacts. Direct impacts refer to the damage to people and infrastructure caused by extreme weather and other climate phenomena, while in cascading impacts climate change is combined with political, economic and cross-border effects. Transition impacts are linked to the adverse consequences of climate change mitigation and adaptation. It is increasingly imperative to comprehensively integrate climate change into foresight and preparedness activities. In addition to the identification of individual climate security impacts, it is also necessary to identify and continuously monitor broader political and economic developments relevant to climate security. Cooperation across national borders is important for advancing the climate security agenda. International organisations and individual countries should coordinate and exchange information in order to develop preparedness mechanisms and practices.
Topic:: Security, Climate Change, Environment, and Infrastructure
Political Geography:: Europe and Finland

469. The geopolitics of the energy transition: Global issues and European policies driving the development of renewable energy

Author:: Marco Siddi
Publication Date:: 12-2021
Content Type:: Policy Brief
Institution:: Finnish Institute of International Affairs
Abstract:: Fighting climate change makes a green energy transition imperative. The transition will have significant geopolitical consequences, notably a shift of power away from fossil fuel producers that do not adapt to a decarbonizing world. Access to critical minerals, rare earth elements and storage technology for renewable energy applications will be essential, and will determine the new geopolitics of energy. Some critical elements such as cobalt are only found in a few areas of the globe. Hydrogen is a carbon-free energy carrier that will allow the storage and dispatch of energy produced by intermittent renewable sources such as solar and wind. While hydrogen trade could lead to new dependencies, it will provide a back-up for the electricity system and strengthen energy security. Currently, China is a leader in securing resources for the energy transition. The Belt and Road Initiative could consolidate its position. As it strives to be a leader in the energy transition, the EU is focusing on securing relevant supply chains, deploying technology and developing hydrogen capacity. International cooperation will accelerate the transition and give the world a chance to avoid catastrophic climate change.
Topic:: Energy Policy, Environment, Green Technology, Renewable Energy, and Green Transition
Political Geography:: Europe and Global Focus

470. Russia’s quest for digital competitiveness: The role of private businesses in securing state interests

Author:: Andrey Indukaev
Publication Date:: 12-2021
Content Type:: Policy Brief
Institution:: Finnish Institute of International Affairs
Abstract:: The Russian leadership prioritizes digital technology for the country’s security and international standing, but also for its economic and technological success and development. These diverse goals are closely intertwined within the logic of geoeconomic competition. The Russian authorities have increased their involvement in the ICT sector over the years and this has led to the hybridization of business and state logic of action at all levels. While the state has an upper hand in the relationship, this does not exclude the possibility of mutually beneficial partnerships. Moscow-based start-up NtechLab’s close collaboration with the city of Moscow is a case in point. For private businesses, the Russian state’s proximity is a mixed blessing that creates business development opportunities but also major risks. These risks limit Russia’s capacity to make digital technology the driver of modernization of its economy.
Topic:: Business, Private Sector, Strategic Interests, and Digitalization
Political Geography:: Russia and Europe

471. Rethinking EU economic governance: Social investment

Author:: Laura Rayner
Publication Date:: 12-2021
Content Type:: Policy Brief
Institution:: European Policy Centre (EPC)
Abstract:: COVID-19 has led to more inequality and poverty in Europe. Together with the accelerating climate crisis and ageing population, massive additional investments in education, healthcare and social infrastructure will be needed to maintain Europe's social protection systems, ease the negative impact of the digital and green transitions, and protect the Union's future prosperity. Unfortunately, the EU's current economic governance model does not leave much room for member states to make these kinds of investments in human capital - also called 'social investment'. This third Policy Brief in a series on reforming EU economic governance sets out five proposals to promote the role of social investment: Alter the pace of fiscal consolidation to be in line with economic growth; Reassess the accounting procedure for public investments, which can, in the long run, split up government investment from government spending and improve the quality of public finances overall; Establish a Future Investment Fund, whereby public investment would be excluded from the calculations of both headline and structural deficits; Reform the European Semester in a way that incorporates the lessons of austerity and prioritises social outcomes alongside fiscal and public administration reforms; Prioritise what matters to citizens - even if it challenges the existing economic orthodoxy.
Topic:: Poverty, Governance, European Union, COVID-19, and Social Investment
Political Geography:: Europe

472. Rethinking Humanitarian Reform: What Will it Take to Truly Change the System?

Author:: Patrick Saez, Jeremy Konyndyk, and Rose Worden
Publication Date:: 09-2021
Content Type:: Policy Brief
Institution:: Center for Global Development
Abstract:: This brief summarizes three years of research under the project, “Rethinking Humanitarian Reform,” led by Jeremy Konyndyk, Patrick Saez, and Rose Worden, and funded by the aid departments of the United Kingdom and Australia. The project aimed to understand the incentives behind the humanitarian system and shift them to better prioritize the needs of affected populations.
Topic:: Development, Humanitarian Aid, Reform, and Institutionalism
Political Geography:: United Kingdom, Europe, Australia, and Global Focus

473. Why Europe Should Build Legal Migration Pathways with Nigeria

Publication Date:: 07-2021
Content Type:: Policy Brief
Institution:: Center for Global Development
Abstract:: The youth population within Nigeria is rapidly increasing, but despite their high levels of education and skills, many are struggling to find meaningful work opportunities at home. At the same time, Europe’s working-age population is declining, resulting in employers in these countries facing large and persistent skill shortages within a range of mid-skill professions. Despite the large benefits that facilitating migration between Nigeria and Europe could bring, and despite the overtures of both European governments and the European Union, few mutually beneficial migration partnerships exist. Over the last year, CGD has been working with the World Bank to understand how our Global Skill Partnership migration model could be implemented between Nigeria and Europe. The full results of this work have now been published in a new report, Expanding Legal Migration Pathways from Nigeria to Europe: From Brain Drain to Brain Gain. The report explores both why Nigeria and Europe should implement migration partnerships and develops a framework as to how they can do so. This framework is then applied to three sectors and partner countries: a healthcare partnership between Nigeria and the United Kingdom (UK), a construction partnership between Nigeria and Germany, and an ICT partnership with various European states. This brief focuses on the first part of this equation, the why: understanding the opportunity that lies before us to better link the labor markets of Nigeria and Europe and the innovation that could do just that.
Topic:: Migration, Immigration, Border Control, and Immigration Policy
Political Geography:: Africa, Europe, and Nigeria

474. Can EU carbon border adjustment measures propel WTO climate talks?

Author:: Gary Clyde Hufbauer, Armen Hovakimian, and Jeffrey J. Schott
Publication Date:: 11-2021
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: Reforms proposed in the European Union’s “Fit for 55” climate policy package are likely to sharply increase the cost paid by European firms for their greenhouse gas (GHG) emissions. Recognizing that increased carbon prices would put European firms at a disadvantage in competing with imports from countries that produce without incurring these costs, the European Commission has proposed a Carbon Border Adjustment Mechanism (CBAM) requiring that the most carbon-intensive EU imports either incur comparable carbon charges as EU firms or pay the equivalent of a carbon-based tariff. The CBAM aims to deter carbon leakage, which could arise if firms shift carbon-intensive production out of Europe to facilities in countries that do not tax GHG emissions (or tax at a low rate) and then export the goods to Europe. European production and output would suffer and global climate efforts to reduce GHG emissions would be undercut. The loftier goal is to encourage other countries to follow the European example and strengthen their own national decarbonization policies, which in turn would exempt their goods from CBAM charges. The CBAM would cover five carbon-intensive industries: iron and steel, aluminum, fertilizer, electricity, and cement. Countries most affected by the CBAM include Russia, China, Turkey, the United Kingdom, Ukraine, South Korea, and India. Some are likely to contest the policy, claiming that the CBAM is a unilateral measure that violates World Trade Organization rules and bolsters protectionism while hampering rather than encouraging efforts in other countries to tackle climate change. A better and more feasible approach would be adoption of a CBAM moratorium while negotiations are conducted to promote carbon abatement policies that comply with the rules-based global trading system.
Topic:: Climate Change, European Union, Economy, Carbon Emissions, and Imports
Political Geography:: Europe

475. How the rest of the world responds to the US-China split

Author:: Hung Tran
Publication Date:: 01-2021
Content Type:: Policy Brief
Institution:: Atlantic Council
Abstract:: The election of Joe Biden as the forty-sixth US president is not expected to change the list of substantive issues dividing the United States and China, such as trade, investment, technology, geopolitical competition, national security, and human rights—except that the priority among them may change, with human rights concerns moving more to the forefront. However, the tone and modality of the unfolding of the US-China competition will change from Donald Trump’s unilateralism to Biden’s efforts to build alliances with “likeminded” countries in Europe, Asia, and elsewhere to deal with the challenges China has posed. In a way, Biden’s alliance-building approach may intensify pressure on the rest of the world to take sides. How countries respond to this challenge, unwelcome by most, depends on whether they see themselves as competitors to China, or as “price takers” in the international economic system.
Topic:: Global Markets, Regulation, Finance, Economy, Trade, and Digital Policy
Political Geography:: China, Europe, Asia, North America, United States of America, and Indo-Pacific

476. Biden and Belarus: A strategy for the new administration

Author:: Anders Åslund, Melinda Haring, John Herbst, and Alexander Vershbow
Publication Date:: 01-2021
Content Type:: Policy Brief
Institution:: Atlantic Council
Abstract:: United States President Joseph R. Biden Jr. has an historic opportunity to bring Europe together and reverse the tide of dictatorship by building an international coalition to support democracy in Belarus. In 2020, Belarusians unexpectedly called Alyaksandr Lukashenka’s legitimacy into question in the country’s August presidential election. Lukashenka brazenly rigged the results, claiming that he took 80 percent of the vote, but neither the United States nor the European Union (EU) recognizes his victory. A months-long protest movement has coalesced that demands new elections under the supervision of the international community. Recent years have seen no better chance for US leadership to facilitate lasting positive change in Europe than the crisis in Belarus. But how to secure democratic change in Belarus is not simple given internal resistance and Moscow’s determination to prevent another “color revolution.” Lukashenka is likely finished, unable to restore any authority or legitimacy. But he is seeking to hang on despite Moscow’s efforts to arrange a pliable replacement who would preserve Minsk’s pro-Russian orientation. Managing Moscow’s efforts to prevent an aroused citizenry from choosing their own leader is no easy task. Russia remains the key geopolitical player in Belarus, often plays the long game, and may be willing to countenance military options that the United States cannot. Perhaps the key fact is that Belarusians have made it amply clear that they want accountable leaders that they can choose and dismiss for themselves. More than thirty thousand peaceful protesters have been detained since August, more than three hundred and fifty police officers have defected, and ordinary Belarusians are no longer afraid to voice their opposition to the regime. Kremlin support for the ongoing repression risks turning the Belarusian people—historically friendly toward Russia—in a pro-European direction. These changes in Belarus are something that Moscow cannot ignore, and the United States and its allies must nourish and strengthen them in consistent ways that avoid and deter a Kremlin overreaction. Biden, with his long experience promoting US values and interests and his determination to strengthen transatlantic relations, is ideally situated to promote clear support for the people of Belarus that does not directly challenge Moscow’s security interests.
Topic:: Economics, Human Rights, Sanctions, and Democracy
Political Geography:: Europe, Belarus, and United States of America

477. Trusted connectivity: A framework for a free, open, and connected world

Author:: Kaush Arha
Publication Date:: 08-2021
Content Type:: Policy Brief
Institution:: Atlantic Council
Abstract:: Global affairs are increasingly shaped by three important and overlapping trends: 1) the unprecedented and growing demand for trillions of dollars’ worth of global digital and physical infrastructure; 2) the ideological battle between democracy and autocracy for the best path forward to achieve peace and prosperity; and 3) the world’s response to changing climate. As democracies address the global demand for a free, open, and connected world while ensuring that local and global emissions targets are met, they need an organizing framework: the concept of “trusted connectivity.” Democratic governments and institutions function with intricate checks and balances to ensure public trust. Unchallenged aggregation of power is antithetical to democracies and instinctively distrusted by their citizens. While holding unimaginable promise, today’s advancements in digital and physical infrastructure also embody new opportunities for malign actors in general, and authoritarian governments in particular, to accumulate and wield this power. Malign influence or control over data, communications, trade routes, energy, and transportation, all of which becomes possible when countries accept infrastructure investments from authoritarian states, could open potential vectors for coercion, disruption, or attack in times of crisis or conflict. In order to deny malign actors this influence over other countries’ infrastructure, democracies need to work together to ensure that the benefits and terms for the host country in building a bridge, port, rail, road, or telecommunications network are equitable and transparent, thereby leading to greater trust and security in addition to economic prosperity. US President Joseph R. Biden, Jr., rallied the world’s leading democracies behind this cause at the Group of Seven (G7) summit in June 2021 in Cornwall, England. The G7 nations, comprising the world’s leading free economies and free societies, proclaimed that, as they aim to meet global infrastructure demand, among other goals, their efforts will be guided by shared democratic values. For China, the standard-bearer of an alternate, illiberal model, infrastructure investment serves a different purpose: to increase China’s global economic leverage for its political gain. To prevail in this competition, advance their values, and develop much-needed digital and physical infrastructure, the world’s leading democracies should adopt the principle of trusted connectivity.
Topic:: National Security, Infrastructure, Cybersecurity, and Connectivity
Political Geography:: China, Europe, Asia, and United States of America

478. Judgments by the Court of Justice of the EU on the EU’s Trade with Israel’s Disputed Territories

Author:: Rachel Frid de Vries
Publication Date:: 12-2021
Content Type:: Policy Brief
Institution:: Mitvim: The Israeli Institute for Regional Foreign Policies
Abstract:: The EU is one of the largest trading partners of the Disputed Territories (DTs) in the world. The Court of Justice of the EU (CJEU) reaffirmed the EU’s differentiation policy between Israeli products from within or outside the DTs. This paper considers the aptness of the role played by the CJEU, the effects and effectiveness of the judgments, and their foreseeable significant implications for Israel.
Topic:: Territorial Disputes, European Union, Trade, and Court of Justice of the EU (CJEU)
Political Geography:: Europe, Middle East, Israel, and Palestine

479. We Need to Talk Trade and Technology!

Author:: Lucian Cernat
Publication Date:: 04-2021
Content Type:: Policy Brief
Institution:: European Centre for International Political Economy (ECIPE)
Abstract:: “It’s May 3, 2021. Don’t forget to upgrade the embedded software in your shoes before you go for a run!” This may sound like a commercial for the 1986 Puma Smart Sneaker[1], the first running shoe with embedded sensors and software in its heel. It could also be an opening line from an old sci-fi movie describing a distant point in the future. Sci-fi movies have a great track record of predicting the future, from video calls[2] to self-driving cars[3]. The former is a dominant part of our daily professional routine these days. The latter is no longer science fiction[4]. So, what if the growing interplay between goods and services is not about the future but a good description of the present? Nowadays we live in a world of connected objects that rely on sophisticated embedded software. Recently, the Volkswagen’s CEO[5] admitted that the only way for VW to remain a successful car manufacturer is to become a successful software company. And while he may be the latest CEO to recognise the business irrelevance of such a goods-services distinction, he certainly is not the only one. Apple understood it well before many other companies when designing mobile phones and their underlying software ecosystem without having any production facilities. Now Apple wants to produce cars[6]. And so do several Chinese telecom giants, like ZTE[7] or Huawei[8]. And the list is longer: Amazon, Tencent, Google, Baidu. All these corporate announcements are another way of saying that mode 5 services[9] are going to be one of the most important ingredients of global competitiveness in many sectors. Car companies are right to get interested in software. Future autonomous and electric vehicles are primarily software-driven products compared to traditional cars. Already in 2010, the General Motors’ Volt car[10] was dubbed as one of the most sophisticated IT products, with over 10 million lines of software code and its own IP address. So, in the future, car manufacturers might need to do software in order to produce cars successfully. Surely, along complex global supply chains with many suppliers scattered around the world. These headline announcements from global manufacturing companies entering the software market and vice-versa, confirm a simple truth: in order to stay competitive, companies can no longer see themselves just as a manufacturing firm, or a services firm. And this simple truth goes beyond the automotive sector. Underpinning this radical shift is a series of digital disruptive technologies, affecting everything from product standards, industrial design, intellectual property, and investment decisions. Such technological developments are game changers for many traditional manufacturing sectors.
Topic:: Science and Technology, European Union, Digital Economy, and Trade
Political Geography:: Europe

480. Taxing Digital Services – Compensating for the Loss of Competitiveness

Author:: Erik van der Marel and Peer Schulze
Publication Date:: 07-2021
Content Type:: Policy Brief
Institution:: European Centre for International Political Economy (ECIPE)
Abstract:: Several countries around the world have implemented a tax on digital services, commonly called Digital Services Tax (DST). This policy brief takes a closer look at why some European countries have imposed DSTs but not others. Surely, there are economic explanations behind the fact that Austria, France, Italy, Spain, and the UK have introduced DSTs – but not other countries in Europe. The five tax-imposing countries (here called DST5) have been losing trade competitiveness in digital services over the last 15 years. On the many trade competitiveness indicators we compute, the DST5 score lower values and show lower growth rates compared to other non-DST countries in Europe. Moreover, the differences between the DST5 and non-DST countries are stark, suggesting that digital services markets for the latter group of countries are a lot more dynamic and globalized. The difference between DST5 and other European countries in digital services competitiveness is striking. This is not to say that there should not be special taxes on digital services – that is a different issue – but it is important that the discussion about the DST starts from a better understanding of how such a tax relates to underlying patterns of digital service performance.
Topic:: European Union, Digital Economy, Tax Systems, and Economic Competition
Political Geography:: Europe

481. China’s Public Procurement Protectionism and Europe’s Response: The Case of Medical Technology

Author:: Fredrik Erixon, Anna Guildea, Oscar Guinea, and Philipp Lamprecht
Publication Date:: 09-2021
Content Type:: Policy Brief
Institution:: European Centre for International Political Economy (ECIPE)
Abstract:: This paper concerns China’s market for medical technologies and how the Chinese state is assisting its own companies to gain greater sales at the expense of producers from Europe and other advanced manufacturing economies. The medical technology sector captures a variety of products, services and solutions which are essential to the provision of healthcare to citizens. Examples range from fairly simple technologies such as sticking platers, to complex ones, such as coronary stents, orthopaedics and pacemakers. In the last decades, Europe’s exports of medical devices to China have grown robustly. On the back of vibrant innovation, firms from Europe and elsewhere have not just followed the growth of Chinese demand for medical devices – they have also increased their share of Chinese imports. Now, however, this market is at risk of being gradually closed off for European firms as China doubles down on various policies that advantage local firms, while ultimately harming innovation and Chinese patients. China has recently introduced a new element in its industrial policy for its medical technology sector – a policy that builds on its long-term ‘made-in-China’ ambition to have local firms taking up the lion’s share of the market for medical devices by 2030. Beijing and provincial governments are using many different policies to provide support to the domestic industry and are in effect pursuing a policy for import substitution. Accessing the Chinese market for medical devices has never been easy but it has become increasingly challenging in recent years. Direct financial support, tax benefits, R&D support, local content requirements, opaque approval systems and other forms of advantages to domestic MedTech producers are now becoming major sources for the behaviour and development of the Chinese medical device market. China’s Fourteenth Five-Year Plan and the country’s new economic model of ‘dual circulation’ reinforces this trend. The Chinese market is becoming less open. Added to that is centralised state procurement – a new public procurement policy in China that was launched in 2019 for medical devices which has led to a grossly distorted procurement market. While this policy has reduced the price of medical devices in a drastic way, it has also paved the way for Chinese firms to take up a larger market share. This procurement policy is gradually squeezing European firms out of the Chinese market. Competition in China is becoming less fair. These policies follow a pattern. In several sectors, Chinese firms have grown their domestic market share through industrial subsidies and policies that restrict market access for foreign firms – or make it more difficult for foreign firms to compete in China. From their domestic market, these firms have then expanded abroad and taken a more prominent role outside of China. Backed by the Chinese state, these firms can squeeze market opportunities even more for otherwise-competitive European producers. Now this development is happening in the MedTech sector. It is urgent for Europe to respond to China’s procurement protectionism. MedTech manufacturers in Europe are often small and medium-sized enterprises, and they already struggle with getting into the Chinese market. China’s new procurement policy has also had a significant impact on Chinese imports of medical devices: a 1.3 billion euro trade deficit for China in medical technology products in 2019 turned into a 5.2 billion euro surplus in 2020. In Africa, Asia and Latin America, competitive European manufacturers are now confronted with competition from Chinese MedTech companies that have the backing of the Chinese state. The competitive distortions in the Chinese market now spill over to the global market – making European MedTech manufacturers even more disadvantaged. Europe should consider a case at the World Trade Organisation (WTO) against China’s policies which reduce European market presence for medical devices. Once agreed, a new International Procurement Initiative might be a useful instrument to wield pressure against the Chinese government to agree to free and fair competition. Europe can also negotiate with China – for instance in the framework of the Comprehensive Agreement on Investment (CAI) or through the new initiative on trade and health that Europe proposed to the Ottawa Group in 2020. These responses should focus both on remedying China’s current policy for growing its domestic medical technology industry by distorting its market and setting out the core policies and rules that should guide the future market for medical technologies. Fredrik Erixon and Anna Guildea are Director and Research Associate, respectively, at ECIPE. Oscar Guinea and Philipp Lamprecht are Senior Economists at ECIPE. The authors are grateful to a number of experts in the private sector and from the European Commission, the Federal Ministry for Economic Affairs and Energy in Germany, China’s Ministry of Industry and Information Technology that have taken their time to share their knowledge with us.
Topic:: Health, Science and Technology, European Union, and Public Procurement
Political Geography:: China, Europe, and Asia

482. From SMEs to Unicorns: What Role for Trade, Standards and New Tech?

Author:: Lucian Cernat
Publication Date:: 09-2021
Content Type:: Policy Brief
Institution:: European Centre for International Political Economy (ECIPE)
Abstract:: The global economy has been shaped by important, disruptive technological changes in recent years. Many of these technologies have been instrumental in our global COVID-19 response and will become the new normal. Some of these technologies have been introduced by small firms, which grew spectacularly to become ‘unicorns’, with very high market value and global reach, setting new technological standards in their sectors. The future competitiveness of the EU economy depends on the interplay between firm size, technological progress and ability to use the opportunities offered by global markets. This paper looks at the role of trade policy in influencing this complex interplay and offers a few tentative conclusions and recommendations.
Topic:: Science and Technology, European Union, Economy, Trade, and COVID-19
Political Geography:: Europe and Global Focus

483. Europe’s Carbon Border Adjustment Mechanism: Time to Go Back to the Drawing Board

Author:: Fredrik Erixon
Publication Date:: 11-2021
Content Type:: Policy Brief
Institution:: European Centre for International Political Economy (ECIPE)
Abstract:: This Policy Brief takes stock of the global and European trade and carbon-emission effects from CBAM. It argues that the current design of the CBAM is not good enough and, ultimately, that there are risks that it will dent the positive effects on global carbon emissions that come from a lower cap on carbon emissions in Europe. These effects will happen through trade and the reallocation of production – and from retaliatory responses from countries that will be negatively affected by the CBAM. This Policy Brief provides recommendations on what the EU could do to improve the CBAM. First, it should respond better to concerns about WTO compatibility. No one knows if CBAM would stand up in a WTO dispute, or if the issue of WTO compatibility is of relevance at all. What we do know, however, is that the EU is going a bit off-piste with CBAM, and it knows it. It’s better to address these issues directly than to pretend that they don’t exist. It could, for instance, pre-empt problems by offering compensatory concessions for affected countries. Moreover, the revenues raised by CBAM fees could be paid out to the origin country for the exports. There will be a price for the EU to pay and the more front-footed it is, the more choices it will have in deciding what political currency to use for the payment. Second, the EU should address development problems that will arise from CBAM. The genie is already out of the bottle since development concerns have been raised by the European Parliament and EU member states. Something will have to be done to avoid that CBAM makes it harder for poor countries to improve their welfare. Third, the EU should provide workable ideas for how CBAM could be anchored in trade and climate agreements. If more economies go off-piste in their climate policies (e.g. in subsidies and procurement), the EU is going to be harmed. Hence, the EU has a strong interest to establish an example and provide international rules for how other countries should act in the future when they take measures that ‘beggar-thy-neighbour’. Fourth, the EU should provide a realistic assessment of what retaliatory strategies that other countries will use against the EU, and get a much better understanding of the dynamic or second-order actions that CBAM will prompt. These actions can have a very bad impact on both EU growth and its efforts to decarbonise the economy. It is just decadent to avoid dealing with them pre-emptively. Finally, and more ambitiously, the EU should consider how it can avoid that CBAM (not the ETS) provokes carbon leakage through both imports and exports. In its current shape, the CBAM provides an incentive to move imports up the value-chain and reallocate imports to goods with embodied carbon. Moreover, the CBAM will reduce the external competitiveness of EU exports, leading to a reduction in foreign sales. Both effects will move the global production of CBAM goods to countries with lower carbon costs and higher carbon intensity in the production.
Topic:: Climate Change, European Union, Trade, Carbon Emissions, and WTO
Political Geography:: Europe

484. EU and Mercosur in the Twenty-First Century: Taking Stock of the Economic and Cultural Ties

Author:: Oscar Guinea and Vanika Sharma
Publication Date:: 12-2021
Content Type:: Policy Brief
Institution:: European Centre for International Political Economy (ECIPE)
Abstract:: This policy brief examines the latest developments in the EU-Mercosur economic relationship and outlines the existing non-economic relationship in order to contextualise the EU-Mercosur Association Agreement and its potential for strengthening common bonds between both regions. Trade between the EU and Mercosur is significant, with both regions holding an important place as large markets for each other’s exports. Currently, trade between the two is dominated by trade in machinery, agriculture, and chemicals. As relevant as these traditional sectors are, their trade is also increasingly supported by trade in services, which unlike trade in traditional agricultural products such as soya, beef and sugar that are either stable or declining, is rapidly increasing. In addition to trade, EU and Mercosur economic bonds are also supported by investments. EU member states hold a large stock of investment in the Mercosur countries while investment flows from Mercosur into the EU are also increasing. This increase has been particularly marked in high-tech sectors like R&D and computer software, emphasising again the changing economic relationship between the EU and Mercosur from traditional to advanced sectors. These trade and investment dynamics are complemented by changes in the EU-Mercosur supply chains. Over the past ten years, the effects one region has on the competitiveness of the other have increased and will continue to do so into the future. The EU is the largest contributor to Mercosur exports, meanwhile Mercosur countries provide the biggest value-added to EU agricultural products. A primary underlying trend found across all dimensions of the EU-Mercosur economic relationship has been the rise of China. In trade, it takes two to tango, and since 2015, it has been China, rather than the EU, that has risen to become Mercosur’s main trading partner. Over the past nine years, the amount of Chinese value-added embedded in Mercosur exports has more than tripled. Moreover, China has ramped up its investment into Mercosur countries, while also receiving increased investments from Mercosur. So, although the EU-Mercosur relationship is changing and bonds have deepened, the EU faces constant competition from China in its relationship with Mercosur. Despite these changes, the EU and Mercosur share a long history of close non-economic relationships. Both have been at the receiving end of large migration flows from each other. This has led to the development of kindred cultures, shared languages, and strong non-economic ties. These similarities have long supported the establishment of deep economic bonds through meaningful collaborations in science and technology, ease of doing business, and provisions for working professionals through various cooperation agreements. However, with the rapidly changing nature of their commercial relationship, these cultural links might not be enough to sustain the economic relationship between the two. These ties need to be complemented by the ratification of the EU-Mercosur Association Agreement to nurture their changing relationship.
Topic:: European Union, Economy, Trade, South American Union (UNASUR), and Mercosur
Political Geography:: Europe and South America

485. The Future of EU Leadership in the Car Industry: Still Global

Author:: David Henig and Hosuk Lee-Makiyama
Publication Date:: 12-2021
Content Type:: Policy Brief
Institution:: European Centre for International Political Economy (ECIPE)
Abstract:: Automotive is Europe’s key export industry, an important contributor to the EU economy, from balance of payments to employment, and a manufacturing base to global and European brands; Balancing the EU’s climate ambitions (and its implied economic transformation) with a successful EU car industry is therefore crucially important. The car industry is at the forefront of new initiatives to tackle the climate emergency, shaped by these new regulations its products and infrastructure will be radically different in just a few years; Proposals within EU frameworks such as Green Deal, Fit for 55, and Next Generation EU are about reducing emissions and reshaping industry. Yet, the policy mix also leans towards increased regulatory costs and loss of competitiveness that can only be partially offset by climate subsidies and import substitution; This cumulation of measures also carries significant risk of retaliation from our key export markets for the car industry. In particular, attempts to apply green regulation extraterritorially are seen as provocative by third countries and unlikely to be accepted without response; Since the EU is the world’s largest exporter of passenger cars, it has most to lose if the global economy regresses into protected markets. Open global supply chains also enable EU manufacturing to retain competitiveness, and has also helped to keep the component and services portion of the industry going despite a relative decline of demand in motor vehicles in the EU; Consumer support for Green Deal initiatives will be lost if there are no affordable and sustainable alternatives for personal mobility – which also requires open markets. Thus, cars play a significant role in sustaining both EU macroeconomic stability and support for the Green Deal; The Green Deal and an open economy must not become a binary choice for Europe. The automotive industry is today global, digitised and electrified by default. The EU cannot mass-produce locally unless it can also compete globally – which entails facilitating industry transition, minimising retaliatory risks and understanding the biggest transition the industry is facing since Henry Ford’s invention of the assembly line.
Topic:: Globalization, European Union, WTO, Green Deal, and Automotive Industry
Political Geography:: Europe and Global Focus

486. What role for NATO in the Sahel?

Author:: Chloe Berger
Publication Date:: 12-2021
Content Type:: Policy Brief
Institution:: NATO Defense College
Abstract:: Since the collapse of the Libyan regime in 2011, the Sahel region has gradually gained significance within the NATO environment. The chaos in Lib- ya has accelerated the interconnection of North African and Sahelian dynamics, creating a complex environment with serious implications for both the stability of North Africa and the Mediterranean Basin. The Sahel region suffers from a paradoxical situation. In view of the multiple national (Sahel armed forces), regional (African Union (AU), Economic Community of West African States (ECOWAS)) and internation- al actors (United Nations, European Union, and also non-African states) present on the ground, the situation is often dubbed a “security traffic jam”. Some NATO Allies who have traditionally wielded influence in this region, have also invested in regional stabilization and development efforts for a long time. For the first time at the June 2021 NATO Summit, Al- lies have explicitly voiced their concerns over the “dete- riorating situation in the Sahel region”.1 As the “newest addition” in this already “crowded” environment, and at a time of review of its Strategic Concept, the Alli- ance must demonstrate its added value; identify “niche” areas where it can complement and strengthen existing efforts; while considering the Sahelian countries’ aspira- tions and specific needs.
Topic:: Security, Defense Policy, NATO, International Cooperation, and Military Strategy
Political Geography:: Africa, Europe, North America, and Sahel

487. Biden’s nuclear posture review: what's in it for NATO?

Author:: Andrea Chiampan
Publication Date:: 12-2021
Content Type:: Policy Brief
Institution:: NATO Defense College
Abstract:: The Biden administration has formally start- ed a review of the US nuclear weapons poli- cy known as Nuclear Posture Review (NPR). The NPR is a public policy document that each US administration has published since 1994 during the first months in office and that is scheduled to be released in 2022. NPRs are important public statements: they set out the administration’s views on the role of nuclear weapons in US grand strategy. NPRs are also crucial signalling documents. They provide insight into an administration’s understanding of the prevailing geo- political environment – including perceived risks and threats – and convey US intentions to allies and adver- saries alike. Given NATO’s significant reliance on US extended deterrence, the elements of continuity and change that the new NPR will propose will inevitably have direct effects on NATO’s defence posture.
Topic:: Security, NATO, Nuclear Weapons, Military Strategy, and Leadership
Political Geography:: Europe, North America, and United States of America

488. The future of NATO

Author:: Thierry Tardy
Publication Date:: 11-2021
Content Type:: Policy Brief
Institution:: NATO Defense College
Abstract:: NATO’s reflection process (NATO 2030), as well as the decision to revisit the Alliance’s Strategic Concept in 2022 pose two sets of questions: the first pertains to the organization’s adap- tation to tomorrow’s security environment; the second is on whether there is agreement inside the Alliance on the kind of organization to be built, and what its prin- ciples and methods should look like. This Policy Brief examines these two levels of ques- tions to identify five possible directions in which the Alliance might move: continuity; refocusing on collec- tive defence; morphing into a security organization; standing up to China; and marginalization.
Topic:: Security, Defense Policy, NATO, International Cooperation, and Military Strategy
Political Geography:: Europe and North America

489. NDC@70: more relevant than ever

Author:: Stephen J. Mariano
Publication Date:: 11-2021
Content Type:: Policy Brief
Institution:: NATO Defense College
Abstract:: The information revolution put brick and mortar academic institutions under pressure to adapt, and the COVID pandemic has increased atten- tion on higher education models – business, intellectu- al, and philosophical. As the NATO Defense College (NDC) turns 70, and the Alliance ponders a new Stra- tegic Concept, it is worth reviewing the NDC model and value of education more broadly. General Dwight D. Eisenhower created the College in 1951 to prepare military and civilian officials for duty in NATO posts or in NATO-related positions in their capitals. War col- leges in France, the United States, and the United King- dom provided the conceptual basis for the NDC, but the NATO equivalent would have two differences: the NATO College would focus on Alliance issues more than national colleges, and consensus-building would be a key part of its education method. Seventy years later, the College still prepares military and civilian officials to assume positions of responsibility within NATO and that preparation has always included acquiring geo-stra- tegic knowledge and building relationships. NDC@70 means reflecting on how senior leaders acquire knowl- edge, develop skills, and strengthen relationships in to- day’s challenging period with rapid rates of technologi- cal change and increasingly segmented societies.
Topic:: Security, NATO, International Cooperation, Pandemic, and COVID-19
Political Geography:: Europe and North America

490. Future warfare, future skills, future professional military education

Author:: Andrea Gilli
Publication Date:: 11-2021
Content Type:: Policy Brief
Institution:: NATO Defense College
Abstract:: Created in 1951 by Gen. Dwight D. Eisenhower to endow NATO Allies’ officers with a forum for strategic education and politico-military re- flection, this year the NATO Defense College is cele- brating its 70th anniversary. In a world of rapid change and growing uncertainty, the best way to honor the past is to prepare for the future. This Policy Brief contributes to this goal by looking at the future of Professional Military Education (PME). Based on the recent Con- ference of Commandants,1 the discussion is divided into three parts: what the future of warfare is, what skills future warfighters will need to possess, and how professional military education will have to change ac- cordingly.
Topic:: NATO, Education, War, Military Strategy, Leadership, and Professionalism
Political Geography:: Europe and North America

491. The US in NATO: adapting the Alliance to new strategic priorities

Author:: Alexandra de Hoop Scheffer and Martin Quencez
Publication Date:: 10-2021
Content Type:: Policy Brief
Institution:: NATO Defense College
Abstract:: At the June 2021 NATO Summit, Allies agreed that “[we] will engage China with a view to de- fending the security interests of the Alliance”, as “China’s stated ambitions and assertive behaviour present systemic challenges to the rules-based inter- national order and to areas relevant to Alliance securi- ty”. For Washington, it was a win to have NATO, the cornerstone of the United States’ network of alliances, acknowledge the challenge posed by China and expand the Alliance’s predominantly transatlantic focus. During his visit to Europe in Spring 2021, President Biden signalled that “America was back” with a clear vision for NATO and that he was seeking European partners’ support. The US President’s recommitment to Article 5 of the North Atlantic Treaty is premised on the expectation that NATO address the country’s current and future strategic concerns, in a security and geopolitical environment that has dramatically changed these last twenty years. China, technological competi- tion, climate change, and hybrid threats and their desta- bilizing effects on NATO member states’ political co- hesion, are now at the core of the US strategic agenda. These priorities redefine NATO’s purpose. In this con- text, NATO’s new Strategic Concept, to be presented in 2022, aims at addressing these very changes, espe- cially as the Alliance enters the post-Afghanistan era. The US objectives vis-à-vis NATO are threefold. In the short term, the Biden administration seeks to re- engage with NATO as part of a larger effort to work with Allies around the world. US public opinion is clearly supportive of the Alliance across political affiliations, despite the politicization of the debate under the Trump administration. In the longer term, NATO will remain relevant to the US, only if it contributes to the strategic competition against China. This can take different forms and re- quire moving beyond two decades of out-of-area oper- ations to tackle challenges of a broad nature, especially in the cyber and techno- logical realms. Finally, the US aims to continue work on struc- tural issues within the Alliance, such as bur- den-sharing and political cohesion, whilst devel- oping a new partnership agenda that better fits its priorities. To sum up, NATO will remain a “global alliance” shaped by the US global strategic priorities, and will continue to strengthen its engagement with “global partners” as the increasingly complex security environment requires transregional approaches.
Topic:: Defense Policy, NATO, International Cooperation, Military Strategy, and Strategic Interests
Political Geography:: Europe, North America, and United States of America

492. Partners Across the Globe and NATO’s Strategic Concept

Author:: Gorana Grgic
Publication Date:: 10-2021
Content Type:: Policy Brief
Institution:: NATO Defense College
Abstract:: NATO’s history is one of continuous adapta- tion in the aftermath of critical junctures both 1 during and after the Cold War. The most recent push to transform the Alliance is embodied in laying out the groundworks towards the new Strategic Concept and the institutional campaign “NATO 2030” which calls for the Alliance to become more political- ly active and global in reach, along with strengthening its military power.2 Among the issues this effort has spotlighted are NATO’s global partnerships which at the moment include Afghanistan, Australia, Colombia, Iraq, Japan, the Republic of Korea, Mongolia, New Zealand and Pakistan, i.e. NATO’s Partners Across the Globe (PAG). This Policy Brief assesses the value of NATO’s Part- ners Across the Globe in light of the new security challenges and argues that preserving the status quo vis-à-vis global partnerships is not advisable since it is incompatible with the changing strategic goals. In pro- viding the recommendations moving forward, it argues the Alliance has two options. First, the Alliance could overhaul the PAG grouping and distinguish between the types of partners with whom it can establish deeper cooperation. Namely, this would involve elevating the Asia-Pacific Four into an institutionalised grouping, rather than having it remain an informal platform for cooperation. Alternatively, NATO could do away with the existing PAG nomenclature and keep the partner- ships flexible and issue specific. It could thus follow the “NATO 30+n” model, which would include working with a set group of partners on different issues.
Topic:: Security, NATO, Alliance, and Strategic Interests
Political Geography:: Europe and North America

493. European allies and the forthcoming NATO strategic concept

Author:: Barbara Kunz
Publication Date:: 09-2021
Content Type:: Policy Brief
Institution:: NATO Defense College
Abstract:: The forthcoming NATO Strategic Concept will primarily serve the purpose of adapting the definition of the Alliance’s core tasks to 21st century realities. This includes an updated threat analysis, as well as a widening of priorities to include matters and domains such as cybersecurity and soci- etal resilience. It will, in many ways, also reflect the considerable changes European security underwent since the publication of its preceding Strategic Con- cept in 2010. It will therefore be the first post-Crimea Strategic Concept, and mark the end of a cooperative security approach to Russia. The new text will also be the first post-Trump administration document, one elaborated after a period of profound doubts over US commitment to the Alliance. Finally, the new Strate- gic Concept will be adopted after years of sometimes heated debates on European security, particularly on the notion of European strategic autonomy. While a consensus on this concept and its implications for the Atlantic Alliance has thus far proved elusive, it seems clear that Europeans increasingly understand the need for a stronger, and in many ways more independent Europe. To some, recent events in Afghanistan may also have been a wake-up call. In reality, however, most of these developments are structural in nature, and have persisted for some time.
Topic:: Security, Defense Policy, NATO, International Cooperation, Military Strategy, and Strategic Interests
Political Geography:: Europe and North America

494. Detention as the Default: How Greece, with the support of the EU, is generalizing administrative detention of migrants

Author:: Vasilis Papastergiou
Publication Date:: 11-2021
Content Type:: Policy Brief
Institution:: Oxfam Publishing
Abstract:: Putting migrants and asylum seekers into detention for administrative reasons is a common practice in Greece, despite this policy contravening human rights. Greek authorities are using detention and the new EU-funded closed compounds as a way to discourage people from seeking asylum in Europe. Detention, as outlined in Greek law, should only be used as a final resort and only then in specific instances. Detention carries with it not only a financial cost, but also a considerable moral cost. Detention without just cause violates basic human rights, such as freedom of movement, the right to health and the right to family life. Alternatives to detention exist and must be prioritized.
Topic:: Human Rights, Humanitarian Crisis, Detention, and Migrants
Political Geography:: Europe and Greece

495. Tipping the Scales: The role of responsibility- and solidarity-sharing in the situation on the Greek islands

Author:: Natalia-Rafaella Kafkoutsou and Spyros-Vlad Oikonomou
Publication Date:: 02-2021
Content Type:: Policy Brief
Institution:: Oxfam Publishing
Abstract:: This report assesses the impact of EU countries’ refusal to relocate asylum seekers on the Greek islands. It illustrates that they have consistently failed to show solidarity by not delivering on commitments to relocate people, either by refusing to participate in the first place or by not fulfilling their pledges. This has left thousands of people in need of assistance on the Greek islands. EU countries have also consistently tried to avoid their legal obligations by putting barriers in place to keep families apart.
Topic:: Regional Cooperation, European Union, Refugees, Asylum, and Humanitarian Crisis
Political Geography:: Europe

496. The risks from climate change to sovereign debt in Europe

Author:: Stavros Zenios
Publication Date:: 07-2021
Content Type:: Policy Brief
Institution:: Bruegel
Abstract:: The exposure of European Union sovereigns to climate risks can be acute, from extreme weather, or chronic, from the productivity effects of gradual temperature increase, increased sea levels and the transition to a low-carbon economy that results in repricing of assets. Climate-related innovations can also spur growth. These risks are priced by investors and can affect sovereign credit ratings. Governments and fiscal stability authorities have an interest in the sovereign-debt implications of climate change being transparent. To this end, we look at the exposure of EU sovereigns to climate risks, study international best practices, and describe the transmission channels from climate change to public finance. European union institutions and national fiscal authorities should mainstream climate risk analysis in public finance. Stress testing of debt dynamic requires a link between regional climate scenarios and country debt dynamics. We argue for the adoption of an architecture of narrative climate scenarios, to guide national policymaking. Narrative Scenarios can be generated using integrated assessment models. As an illustration, we apply two prominent models to generate rough bounds on the extent of the risk for Italian debt from climate change. This raises issues about the models used. Coordination by EU institutions to develop regional scenarios will ensure acceptability, raise ambitions in dealing with climate risks and encourage the fiscal authorities to think of solutions. A network for climate-proofing public finance will bring together EU and member-state institutions. We also recommend budgeting for climate expenditures and contingent liabilities, and using risk-sharing instruments, with disclosure of the risks to public finance from climate change.
Topic:: Climate Change, Government, European Union, Fiscal Policy, and Sovereign Debt
Political Geography:: Europe

497. A new direction for the European Union’s half-hearted semiconductor strategy

Author:: Niclas Poitiers and Pauline Weil
Publication Date:: 07-2021
Content Type:: Policy Brief
Institution:: Bruegel
Abstract:: A basic component in electronic devices, semiconductors are essential to the production of many products, from smartphones to cars. Securing reliable supplies of semiconductors to safeguard the production lines of a range of industries has thus become an important policy goal, especially in the context of an increasingly confrontational international environment in which high-technology leadership is also associated with military power and geopolitical reach. The semiconductor sector is highly concentrated, capital- and R&D-intensive, and particularly exposed to bottlenecks and political risks. High-end chip fabrication is centred in Asia, dominated by the duopoly of Taiwan’s TSMC and South Korea’s Samsung. In other parts of the supply chain, companies in the United States and Europe hold relative monopolies that have been leveraged for trade sanctions. The United States has taken steps to block the supply of chips and components to emerging tech giants in China, and to contain China’s ambitions of building its own cutting-edge chip production capacities. Heavy United states and Chinese investment poses a challenge to the European Union, which in response has set the goal of increasing European production beyond domestic demand. To increase its presence in this strategic and thriving sector, the EU needs a more targeted strategy that builds on its existing strengths while accommodating its relatively low domestic needs. Instead of investing public funds in a subsidy war over fabrication capacity, the EU should focus on inputs and chip design. However, no economy can hope to fully achieve independence in the sector and ensuring sustainable supply through diplomatic means should therefore also be a priority. Lastly, Europe’s small role in global semiconductor production is symptomatic of shortcomings in the European environment for high-tech innovation. These shortcomings should be addressed.
Topic:: Science and Technology, European Union, Economy, and Semiconductors
Political Geography:: China, Europe, and United States of America

498. A green fiscal pact: climate investment in times of budget consolidation

Author:: Zsolt Darvas and Guntram Wolff
Publication Date:: 09-2021
Content Type:: Policy Brief
Institution:: Bruegel
Abstract:: The additional public investment need required to meet the European Union’s climate goals is between 0.5 percent and 1 percent of GDP annually during this decade. Increasing green public investment while consolidating deficits will be a major challenge. While our simulations show that budget consolidation can be done at a moderate pace in line with EU rules if those rules are interpreted flexibly, past consolidation episodes resulted in major public investment cuts. This time, there is a need for a major increase in investment. A ‘green golden rule’ (excluding net green investment from the fiscal indicators used to measure fiscal rule compliance) is the most promising option to address this tension. Relaxing the strictness of the EU fiscal framework beyond its existing flexibility and the proposed green golden rule does not appear necessary in the next few years. The uncertain growth impact of green public spending and the risks to growth from climate change create difficult trade offs in fiscally weaker countries. In any case, better regulatory policy and a higher price on emissions should incentivise private green investment and reduce public costs. These ingredients should be combined to form a ‘green fiscal pact’.
Topic:: Climate Change, Budget, European Union, and Public Investment
Political Geography:: Europe

499. Biometric technologies at work: a proposed use-based taxonomy

Author:: Mario Mariniello and Mia Hoffmann
Publication Date:: 11-2021
Content Type:: Policy Brief
Institution:: Bruegel
Abstract:: Biometric technologies have in principle the potential to significantly improve worker productivity, security and safety. However, they are also a source of new risks, including exposure to potential personal data abuse or the psychological distress caused by permanent monitoring. The European Union lacks a coherent regulatory framework on the mitigation of risks arising from the use of biometric technologies in the workplace. We propose a taxonomy to underpin the use of artificial intelligence-powered biometric technologies in the workplace. Technologies can be classified into four broad categories based on their main function: (1) security, (2) recruitment, (3) monitoring, (4) safety and well-being. We identify the benefits and risks linked to each category. To be more effective, EU regulation of artificial intelligence (AI) in the workplace should integrate more detail on technology use. It should also address the current scarcity of granular data by sourcing information from users of AI technologies, not only providers. There is an untapped potential for technology to address workplace health hazards. Policymakers should design incentive mechanisms to encourage adoption of the technologies with the greatest potential to benefit workers. Artificial intelligence users, in particular bigger companies, should be required to assess the effect of AI adoption on work processes, with the active participation of their workforces.
Topic:: Science and Technology, European Union, Artificial Intelligence, and Biometrics
Political Geography:: Europe and Global Focus

500. What is holding back artificial intelligence adoption in Europe?

Author:: Mia Hoffmann and Laura Nurski
Publication Date:: 11-2021
Content Type:: Policy Brief
Institution:: Bruegel
Abstract:: Artificial intelligence (AI) is considered a key driver of future economic development, expected to increase labour productivity and economic growth worldwide. To realise these gains, AI technologies need to be adopted by companies and integrated into their operations. However, it is unclear what the current level of AI adoption by European firms actually is. Estimates vary widely because of uneven data collection and lack of a standard definition and taxonomy of AI. What is clear is that AI adoption in Europe is low and likely running behind other parts of the world. Discussions on the barriers to AI advancement often mix up different stages of innovation – research, development and adoption. Each stage is constrained by the availability of skills, data and financing in the European market, but there are nuances in how these barriers arise in each of the three stages. This policy contribution focuses on the final stage, AI adoption. We discuss theoretical and empirical evidence of the drivers of AI adoption. We outline the relevant barriers to adoption for European firms in terms of human capital, data availability and funding, and make international comparisons where possible. To accelerate the roll-out of AI technology across the European Union, policymakers should alleviate constraints to adoption faced by firms, both in the environmental context – labour market, financial market and regulation – and in the technological context – data availability, basic digitisation of businesses and technological uncertainty.
Topic:: Science and Technology, European Union, Economic Development, and Artificial Intelligence
Political Geography:: Europe

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