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101. Re-energising Europe’s global green reach

Author:
Giovanni Sgaravatti, Simone Tagliapietra, and Cecilia Trasi
Publication Date:
06-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The goals of decarbonisation, competitiveness and strategic autonomy will underpin the implementation of the European Green Deal during the 2024-2029 European Union institutional cycle. To strike the right balance between these sometimes conflicting objectives, EU policymakers should focus on both domestic and international aspects of the Green Deal. Domestically, they must ensure implementation of the agreed climate plan, avoiding inaction or delay. Internationally, they must establish a new green-diplomacy and partnerships strategy, which will support global decarbonisation while addressing competitiveness and strategic autonomy concerns. The current EU approach to green diplomacy is uncoordinated, lacking a clear strategy and appropriate resources. Given the EU’s limited share of annual global emissions, supporting decarbonisation abroad is fundamental to meet the global net-zero emissions goal. The EU’s green diplomacy and partnerships need to be strengthened and expanded in a pragmatic and coherent manner. The main priorities include focusing on the implementation of international emissions reduction pledges, a new diplomatic push for carbon pricing and international green taxation, the creation of streamlined partnerships for green industrialisation with major partner countries and the promotion of new global trade and climate agreements. To succeed in these, a revision of the current governance of EU global green action will be required.
Topic:
Climate Change, European Union, Partnerships, Carbon Emissions, and Green Transition
Political Geography:
Europe

102. The implications of the European Union’s new fiscal rules

Author:
Zsolt Darvas, Lennard Welslau, and Jeromin Zettelmeyer
Publication Date:
06-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
European Union countries are required by the EU Treaty to keep their budget deficits within 3 percent of GDP, and their public debt within 60 percent of GDP. A new framework to enforce these rules is based on country-specific debt sustainability analyses (DSA) and uses a single indicator, a measure of public expenditure, as the annual fiscal policy target. These changes are welcome. To assess the sustainability of public finances, it is much better to focus on the likely evolution of the debt path than to rely on simple numerical rules. Public expenditures net of changes to tax policy are a far better target for fiscal policy than the deficit, since they are under the control of the government and cannot give rise to pro-cyclical fiscal policy (excess spending in good times, fiscal cuts in bad times). These features could increase the framework’s efficiency and improve compliance. However, the new framework also contains numerical safeguards to ensure a minimum pace of debt and deficit reduction. These might overwrite the DSA-based requirements and could undermine the rationale for the new rules and the incentives for compliance. The safeguards could also introduce some pro-cyclicality and, more importantly, could hold back increases in public investment. Our calculations show that the new framework will require ambitious fiscal adjustments from high-debt countries, though less than would have been required by the previous framework. Numerical safeguards will not be a significant constraint in the first application of the framework in 2024, except in the case of Finland. In the next application, in 2028, they imply for France and Italy greater fiscal adjustment than required by the DSA and the 3 percent benchmark. There is ambiguity about the consistency of the new fiscal rules and the largely-unchanged excessive deficit procedure (EDP), and whether proposed reforms and investment will influence the DSA. This could interfere with the successful application of the framework. We recommend that the EDP should require the same adjustment as the DSA, a method- ology should be developed to estimate the quantitative impact of proposed investments and reforms, and the DSA methodology should be revised. In case EU countries’ investment plans on aggregate do not fill the green public-investment gap, we recommend a new EU facility to foster such investments.
Topic:
Budget, European Union, Investment, and Fiscal Policy
Political Geography:
Europe

103. How much does Europe pay for clean air?

Author:
Miquel Oliu-Barton and Juan Mejino Lopez
Publication Date:
06-2024
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
Despite significant progress, air pollution still causes €600 billion in losses each year in the European Union – equal to 4 percent of its annual GDP. These costs stem from productivity losses such as increased absenteeism, the reduction of in-job productivity and harm to ecosystems. Air pollution costs are disproportionately high in eastern Europe and Italy, where losses are projected to remain above 6 percent of GDP until 2030. The EU’s 10 percent most-polluted regions suffer 25 percent of the burden of mortality attributable to air pollution. Measures against air pollution should be prioritised, not delayed, in these regions. Promoting clean air boosts economic growth by €50 billion to €60 billion every year. The EU’s increasing commitment to cleaner air is reflected by a threefold increase in the funds allocated to promoting clean-air policies, from €7 billion annually for the period 2014-2020 to €25 billion annually for 2021-2027, notably supported by the Recovery and Resilience Facility (RRF). EU financial support must continue beyond 2026 when the RRF terminates. The EU Ambient Air Quality Directive sends a strong signal but leaves loopholes: exceptions and postponements may jeopardise overall progress on cleaner air. Fossil-fuel consumption is one of the main obstacles to achieving clean-air targets. Yet fossil fuels subsidies were fourteen times higher than EU clean-air funds between 2014 and 2020, and are projected to remain five times higher for the years ahead. Ammonia, an important precursor of fine particulate matter mainly stemming from agriculture, is insufficiently regulated. Effectiveness of clean-air policies is context-dependent. Identifying concrete actions for each region and quantifying the potential gains are required to accelerate the transition to cleaner air. Phasing out coal use in residential heating is most profitable in eastern Europe, while reducing industrial and agricultural emissions would reap more benefits in the north of Italy.
Topic:
European Union, Economic Growth, Productivity, and Air Pollution
Political Geography:
Europe

104. A conceptual framework for the identification and governance of European public goods

Author:
Gregory Claeys and Armin Steinbach
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
The challenging current policy environment has raised the question of which policy decisions should be taken at national level and which at European Union level. As a general rule, the EU should be responsible only for the provision of European public goods (EPGs), while countries are better placed to provide national public goods. However, in practice, the situation is rarely that simple. We offer a framework for identification of EPGs with three main insights. First, a decision to provide a public good at national level, EU level or a combination of both depends on the degree of heterogeneity of preferences across countries and the efficiency case for EU-level provision. When preferences vary and the efficiency case is weak, goods should be provided at national level. When preferences are similar and the efficiency case is strong, goods should be provided at the EU level. When preferences differ but there is a strong efficiency case, a trade-off arises. Second, institutional and legal instruments exist already to manage this trade-off. These include: competence transfers, decision-making modalities, variable participation of countries, centralisation of delivery and funding, and compensating negatively affected countries to achieve greater alignment of preferences. Third, both the efficiency case for EPGs and the distribution of preferences over their provision may change over time. This could be because the world around the EU changes (for example, giving greater weight to an efficiency case, eg in areas related to defence) or because preferences change, for example, as result of a pandemic, or because a particular institutional or compensation practice convinces dissenters that they can be better off inside than outside a multi-country arrangement governing the provision of a public good. An implication is that the question ‘should public goods be provided at the national or European level?’ may be the wrong question to ask. The right question is how to find institutional arrangements for public-good provision, to maximise the benefits of public goods for EU members.
Topic:
Governance, European Union, Institutions, and Public Goods
Political Geography:
Europe

105. Instruments of economic security

Author:
Conor McCaffrey and Niclas Poitiers
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
Geopolitical and economic developments, including Russia’s invasion of Ukraine and trade disruptions during the COVID-19 pandemic, have raised concerns about the European Union’s exposure to hostile countries. The challenge of improving European economic security (which we narrowly treat here as exposure to foreign trade or production shocks) has grown in importance, with various relevant policy measures introduced at EU level. Focusing in particular on the threat posed by economic coercion, this paper begins by assessing the nature of this threat, before outlining two lessons that can be drawn from two recent instances of this coercion in action: China’s actions against Lithuania and Australia respectively. First, while much of the policy debate has focused on imports, the threat to EU exporters should not be ignored. Second, while coercion may not cause any macroeconomically significant harm, this may mask severe impacts on the targeted industries, which should be considered in any policy responses. The EU has significantly added to its policy tools in this area, though some of the instruments introduced under the umbrella of economic security go beyond the definition we consider. An effective response should be built around: building a deeper understanding of the risks facing the EU; improving diversification of both exports and imports; using targeted industrial policy in the limited sectors where the risks warrant intervention; and managing and limiting the fallout of any shocks using ex-post instruments.
Topic:
European Union, Economic Policy, Economic Security, and Coercion
Political Geography:
Europe

106. Three risks that must be addressed for new European Union fiscal rules to succeed

Author:
Lucio Pench
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The debate on the reform of the European Union’s fiscal rules, the Stability and Growth Pact, has largely focused on their design. This nearly exclusive focus has distracted attention from the equally, if not more, important aspects of implementation. The reform, completed in April 2024, left implementation unaddressed, or at least open to very different potential outcomes. In particular, the reform failed to clarify the interplay between EU countries’ medium-term fiscal structural plans (MTFSPs), which embody the new focus on debt sustainability, and the excessive deficit procedure (EDP), which remains the main enforcement tool under the rules. The need for clarification is urgent as several countries are set to enter EDPs for breaching the SGP’s 3 percent of GDP deficit threshold at the same time as their first MTFSPs are endorsed in autumn 2024. There is a risk that the adjustment paths prescribed by EDPs may be at least temporarily less demanding than the debt-sustainability requirements of the MTFSPs would normally imply. Even if consistency between EDPs and MTFSPs is ensured from the start, inconsistencies may arise over time and be resolved in a way that further postpones the necessary adjustment. The main risk is that the 3 percent of GDP deficit might be perceived as the only target that matters for countries that enter EDPs in 2024, as repeated revisions of the MTFSPs undermine the cogency of the debt sustainability requirements. This scenario is likely to materialise if the countries are allowed to exit their EDPs upon bringing their deficits to or below 3 percent of GDP, while being still far from the necessary correction of the debt trajectory. It is important to shape countries’ expectations on the implementation of the upcoming EDPs in a way that is conducive to the immediate internalisation of the debt sustainability constraint implied by the new rules, rather than allowing it to be viewed as a distant objective. This change in expectations could be achieved by clarifying that, even if a country has been placed in an EDP only for breach of the deficit criterion, it should also satisfy the debt criterion for the procedure to be abrogated.
Topic:
Debt, Reform, European Union, Fiscal Policy, and Sustainability
Political Geography:
Europe

107. Unpacking China’s industrial policy and its implications for Europe

Author:
Alicia Garcia-Herrero and Robin Schindowski
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
China is often credited with a successful application of industrial policy. One important particularity of China’s industrial policy is that it aims at levelling the playing field between the state economy and the private economy in access to finance, yet within a framework of strategic goals. This aim is not relevant for market economies, such as those of the European Union, but only for those where state enterprises are clearly privileged. Notwithstanding the difficulties in making valid comparisons, our analysis of how China conducts industrial policy in a variety of sectors points to success in some sectors but not all. More importantly, productivity growth in China has already been declining for two decades. Given the very large resources that China has put into industrial policy, with subsidies being only one part, it is surprising that success is not more evident. This relates partly to factors including cronyism and regional protectionism. While the former might be less relevant for the EU given the different institutional background, the latter certainly is relevant since the EU faces the potential consequences of member country-level industrial policy for its single market. A lesson from China seems to come from the sectoral focus, with a long-term and economic-security mindset. The EU is far from this, but it is in the process of linking economic security to industrial policy. Finally, responding to China’s industrial policy involves diverse investigations and challenges in measuring subsidies accurately. Understanding China’s very diverse and complex approach to helping companies achieve the government’s industrial policy goals is crucial for anticipating the consequences of China’s actions. These could be positive, such as cheaper imports of green technology, or negative, such as Chinese overcapacity spilling over to the EU single market.
Topic:
Industrial Policy, Markets, European Union, and Economy
Political Geography:
China, Europe, and Asia

108. How to de-risk: European economic security in a world of interdependence

Author:
Jean Pisani-Ferry, Beatrice Weder di Mauro, and Jeromin Zettelmeyer
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Pandemic-related supply disruptions, the energy crisis provoked by Russia’s invasion of Ukraine and economic coercion by China have put economic security high on the European Union policy agenda. The question is how exactly the EU should ‘de-risk’ its external economic relationships without foregoing the benefits of trade. The standard answer is that it should identify product-level trade dependencies, mainly on the import side, and reduce them, mainly through diversification of suppliers, while otherwise maintaining maximum trade integration. This Policy Brief argues that this answer falls short. First, product-level dependencies cannot be identified reliably even with sophisticated analysis and data. As a result, both ‘missed dependencies’ and ‘false positives’ are inevitable. Second, external shocks and coercion could be propagated through exports, productive assets held abroad and financial channels as much as through imports. The analysis has five main implications Import de-risking should focus on a few product categories for which the costs of supply interruptions would be unquestionably large. This reduces false positives. De-risking and/or buffers to deal with exports and financial coercion require more attention. De-risking must be complemented by raising resilience against all shocks, whatever theirorigin. This requires a deeper and broader European single market. De-risking and resilience must be complemented by deterrence. A sufficiently high probability of chronic trade conflict – or one very large conflict – may justify reducing overall integration with a large trading partner, on both the export andimport sides. EU economic security policies have been right to emphasise the reduction of import dependence on chips and critical raw materials, and the creation of a powerful legal instrument to deter coercion (the Anti-Coercion Instrument). In most other respects, there is room for improvement.
Topic:
European Union, Risk, Trade, Imports, Economic Security, and Interdependence
Political Geography:
China and Europe

109. Using the financial system to enforce export controls

Author:
Benjamin Hilgenstock, Elina Ribakova, Guntram Wolff, and Anna Vlasyuk
Publication Date:
04-2024
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
Russian imports of battlefield goods that are subject to export controls, including from Western producers, have surged since mid-2022 and reached levels close to those prior to Russia’s full-scale invasion of Ukraine. Russia thus continues to be able to acquire critical foreign components that it needs for its military industry. These imports occur via mainland China, Hong Kong, Turkey and the United Arab Emirates, while other countries including Armenia, Georgia, Kazakhstan and the Kyrgyz Republic have also seen massive increases in imports from the EU and other coalition countries that likely end up in Russia. The implementation and enforcement of export controls faces major challenges, which are multifaceted and centre around complex supply chains, lack of transparency in documentation and opaque financial structures. The issues are familiar from anti money laundering (AML) and countering financing of terrorism (CFT) frameworks, where much progress has been made in the last two decades. A similar approach could help in rendering export controls effective. We propose: First, financial institutions could be tasked to play a role in the monitoring of the trade in export-controlled goods and the blocking of illicit transactions, building on their experience with due diligence in financial transactions. Second, non-financial companies could learn from banks’ efforts in the AML/CFT sphere to implement proper due-diligence procedures and to ensure export controls compliance. Public-sector investigations and appropriate fines are critical to increase the incentives for firms to act. Technology sanctions are going to be part of the economic statecraft toolbox for the foreseeable future. The Russia case will test their effectiveness and credibility, or lack thereof.
Topic:
Sanctions, European Union, Exports, Trade, Imports, Financial Systems, and Russia-Ukraine War
Political Geography:
Russia and Europe

110. Economic arguments in favour of reducing copyright protection for generative AI inputs and outputs

Author:
Bertin Martens
Publication Date:
04-2024
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
Generative artificial intelligence (GenAI) models have stirred considerable controversy about copyright protection for AI training inputs and model outputs. The European Union’s AI Act will require model developers to be transparent about their use of training inputs such as text, images and music. The EU Copyright Directive allows free text and data mining of these media inputs unless copyright holders have opted out and want license payments. The right to opt-out amounts to economically inefficient overprotection of copyright. Free use of media content for GenAI training does not affect media sales to consumers. Optouts only strengthen the bargaining position of copyright holders, who decide depending on their private interests. That generates windfall profits without any increase in consumer surplus or social welfare. The licensing of training inputs reduces the quantity of data and the quality of GenAI models, creates transaction costs and reduces competition between GenAI firms. This slows down GenAI-induced innovation in media products and production processes, and productivity gains in all service sectors that apply GenAI. Ultimately, it slows down economic growth compared to what it could be with competitive and high-quality GenAI. Bargaining over license pricing is arbitrary as there is no objective revenue benchmark to start from. Defenders of the moral right to remuneration argue that any arbitrary remuneration is better than no remuneration. But this private moral right comes at the expense of social welfare. The ongoing bargaining and court cases between media producers and GenAI developers risk entrenching this market failure in jurisprudence. Early regulatory intervention and elimination of opt-outs for GenAI training, or weakening them in AI Act implementation guidelines, would solve this. There is no need for copyright on GenAI outputs either. GenAI reduces the marginal cost of machine-production of media outputs to close to zero, on par with the marginal cost of reproduction. That eliminates incentives for piracy. Moreover, composite human-machine outputs benefit from a de-facto extension of copyright on the human component.
Topic:
Science and Technology, Intellectual Property/Copyright, European Union, Regulation, Economic Growth, and Artificial Intelligence
Political Geography:
Europe

111. The rocky road to EU accession for Western Balkan countries: obstacles and lessons from the Eastern Partnership

Author:
Armin Steinbach
Publication Date:
03-2024
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
The Western Balkan countries and the countries of the Eastern Partnership are moving towards European Union accession at different speeds. We explore whether and how the variable speed towards EU accession can be traced to different legal regimes governing European integration: Stabilisation and Association Agreements (SAA) for the Western Balkan countries, and Deep and Comprehensive Free Trade Agreements (DCFTA) for the countries of the Eastern Partnership (EaP). We find that DCFTAs apply more lenient conditionality to intra-regional cooperation. They subject non-tariff barriers to a more explicit regime than the Western Balkan SAAs. The DCFTAs also offer a more rigid and comprehensive approach to the approximation of laws than the SAAs, and the DCFTAs are more inclusive with regard to the role of civil society. However, there is no indication that the differences in legal governance have translated into stronger economic performance in the EaP countries or greater integration with the EU, compared to the Western Balkans. The Western Balkan countries remain significantly more integrated than the EaP countries with the EU in trade terms, while convergence with the EU has been stagnating both for the Western Balkan and the EaP countries. Economic shortcomings in the Western Balkan still need to be addressed. Conditionality attached to both integration into the EU single market and EU funding should be nuanced; the eradication of non-tariff barriers should be prioritised both inter-regionally and intra-regionally between Western Balkan countries; the need for stronger EU investment in the region is reinforced by geopolitical concerns about Chinese investments coming without EU-type conditionality attached; and governance should give a stronger role to civil society. In order to address the shortcomings in SAAs, a pragmatic solution is to use the existing governance framework under the SAAs.
Topic:
Treaties and Agreements, European Union, Economy, Regional Integration, and Eastern Partnership
Political Geography:
Europe and Balkans

112. Broader border taxes: a new option for European Union budget resources

Author:
Pascal Saint-Amans
Publication Date:
03-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
There is widespread agreement on the need for new resources to fund the European Union's budget in order to meet increasing spending demands, not least repayment of debt incurred as part of the EU’s post-pandemic economic recovery. In particular it is seen as desirable that the EU should have ‘own’ resources, or reliable ongoing revenue streams. But there is little agreement on what new own resources could consist of. Limited reform so far has led to the introduction of a levy paid by EU members depending on plastic packaging waste generated in their territory and not recycled. Meanwhile, the European Commission has proposed resources for the EU budget from emissions trading revenues, and from levies collected under the EU carbon border adjustment mechanism (CBAM). There proposals are pragmatic and move in the right direction, but do not go far enough. The debate about own resources should focus on whether the EU will be able to build genuine own resources based on common tax policies. The EU suffers from ‘tax leakage’ in which profits are shifted from high-tax to low-tax EU countries, and from there onto no or low-tax non-EU jurisdictions, often without the application of withholding taxes. It may not be too much of a stretch to compare this situation of tax leakage with the situation addressed by CBAM – a quasi-tax at the border. So far, an opportunity for what could be seen as a tax at the border of the internal market, aiming to protect the market from harmful competition, may have been missed. Such a tax could reflect the undertaxed profit rule agreed as part of the international deal on the corporate minimum tax. Focusing on protecting the revenues of EU members by common tax borders could offer scope for new own resources.
Topic:
Budget, European Union, Borders, and Tax Systems
Political Geography:
Europe

113. Incorporating the impact of social investments and reforms in the European Union’s new fiscal framework

Author:
Zsolt Darvas, Lennard Welslau, and Jeromin Zettelmeyer
Publication Date:
03-2024
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
The European Union’s new fiscal framework aims to incentivise public investment and reforms by offering the option to extend the four-year fiscal adjustment period to seven years, thereby lowering the average annual fiscal adjustment requirement. EU countries can propose investment and reforms in the context of their national medium-term fiscal structural plans. When they do, these investments and reforms can be expected to also inform the fiscal adjustment proposed by member states. Yet, the EU lacks an agreed methodology for deciding on the potential quantitative impact of investment and reforms on the fiscal adjustment required under the new rules. This paper first analyses the ‘investment friendliness’ of the new framework. Although the incentives offered for raising investment are powerful, the bar for extending the adjustment period mainly through higher investment is high, and the design of the new rules will make it hard to actually raise investment. We next propose an approach for quantifying the impact of investment and reform on debt sustainability in the context of the new framework, taking into account uncertainty about their implementation and their economic effects. Such a methodology would also help the European Commission evaluate the impacts of recently adopted measures, the impacts of which are not yet observable. Developing this methodology will require revisiting the current commonly agreed methodologies for medium- and long-term capital stock and total factor productivity projections. We illustrate the potential impact of investment on debt sustainability analyses through calculations on three social investment measures, that is, combinations of reform and public spending that aim to increase human capital and labour force participations. While the impact of individual reforms on fiscal adjustment needs is generally modest, the combined impact of several measures could be notable.
Topic:
Reform, European Union, Fiscal Policy, Public Investment, and Social Investment
Political Geography:
Europe

114. Exposure to generative artificial intelligence in the European labour market

Author:
Laura Nurski and Nina Ruer
Publication Date:
03-2024
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
We apply two sets of generative artificial intelligence (GenAI) occupational exposure scores – one task-based, one ability-based – to the European Labour Force Survey. While using different methodologies, our findings reveal consistent demographic patterns across the two approaches: jobs held by women, highly educated and younger workers are more exposed to GenAI technology in Europe. We also review the literature on the recent productivity impact of GenAI. Within the same occupations, less-experienced or less-skilled workers consistently get the largest productivity gains from GenAI support. We argue that a task-based analysis is more fruitful than an ability-based one, both for guiding GenAI adoption in organisations and their workplaces, and for assessing the employment and job quality impact on workers. Finally, we provide policy recommendations that can help workers (ie the labour supply) adjust to technological disruption, such as providing training and social safety nets. But we go further by also suggesting policy interventions that could redirect future labour demand towards better jobs, by promoting job redesign and organisational agility. Monitoring GenAI’s employment effects and researching the ‘jagged technological frontier’ is necessary to further build our understanding of the employment impact of this transformational technology.
Topic:
European Union, Artificial Intelligence, Labor Market, and Supply and Demand
Political Geography:
Europe

115. Ukraine’s path to European Union membership and its long-term implications

Author:
Zsolt Darvas, Marek Dabrowski, Heather Grabbe, Luca Léry, André Sapir, and Georg Zachmann
Publication Date:
03-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Whether and when Ukraine accedes to the European Union will depend greatly on how and when its war with Russia ends and post-war reconstruction starts, and how the EU handles issues of governance, security, migration, trade, investment, the energy transition, decarbonisation and the EU budget. The enlargement process is likely to overlap with post-war reconstruction, increasing the EU's influence in fostering Ukraine’s institutional development. Ukrainian leaders will have strong incentives to comply with the accession criteria, which the EU should use astutely to create a better-functioning economy and public institutions, especially by reducing opportunities for corruption. This will require clearer standards for rule-of-law and fundamental values, including effective tools to ensure continued compliance after accession. That is also the most effective way to ensure a positive impact of future enlargements on EU governance. The EU will also need to develop assistance programmes to help the Ukrainian government manage post-war external and internal security challenges, including the large number of weapons in circulation, and to encourage Ukrainian refugees to return to the country when possible, as they will be needed for the reconstruction effort. If the current EU budget rules were applied and there were no transitional arrangements – which is unlikely – we calculate the total annual cost of Ukraine's integration into the EU budget at 0.13 per cent of EU GDP, which would hardly change net recipient/payer positions of current EU members. Some of this funding would come back to the EU via EU companies participating in EU-funded projects in Ukraine. Ukraine’s entry into the EU would benefit EU GDP via trade, migration and foreign direct investment, boosting employment, production and tax revenues in the EU. The history of EU enlargement shows that the strongest motivation for difficult reforms is a credible and predictable accession process based on rewarding reforms. Both Ukraine and the EU would benefit from progressive integration of the country into EU policies, alongside the formal accession negotiations. That would show the Ukrainian public the tangible benefits of moving towards EU standards, while also bringing Ukraine into areas such as energy cooperation and decarbonisation.
Topic:
European Union, Regional Integration, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

116. The state of financial knowledge in the European Union

Author:
Maria Demertzis, Luca Léry Moffat, Annamaria Lusardi, and Juan Mejino Lopez
Publication Date:
02-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Only one in two individuals in the European Union, on average, is financially knowledgeable. In response to a 2023 survey containing five questions assessing basic financial knowledge, only half of the respondents answered at least three of the five questions correctly. This represents a low level of financial knowledge and an obstacle for individuals to invest in financial markets. The questions most often answered correctly by respondents measured understanding of inflation and the relationship between risk and return. By contrast, only one in five respondents answered a question on the relationship between interest rates and bond prices correctly. Regarding inflation, there is a large difference between the least and most educated respondents in terms of answering the relevant question correctly. Gaps in understanding the concept of inflation are also evident between the youngest (18-24) and oldest respondents (55+) and between the poorest and richest households. A gender gap is present in financial knowledge, with 18 percentage points more men than women answering at least three out of five questions correctly, on average in the EU. Those with greater financial knowledge are less financially fragile in that they can still cover their expenses if there is a sudden loss of income, and are more confident that they will have sufficient funds to sustain themselves during retirement. Countries with higher proportions of people who are financially knowledgeable have higher numbers of people who both save with and borrow from financial institutions, an indication that financial knowledge may improve financial inclusion. All EU countries have, or are in the process of putting together, a national financial literacy strategy. There is an urgent need to roll out these strategies, to monitor progress over time and to establish best practices. Particular attention needs to be given to how financial knowledge interacts with digital skills as financial services are increasingly digitalised. Financial literacy strategies should also help close gender and other gaps in knowledge among vulnerable groups, and should ensure that financial education starts early and in schools.
Topic:
European Union, Economy, Inflation, and Financial Literacy
Political Geography:
Europe

117. Unity in power, power in unity: why the EU needs more integrated electricity markets

Author:
Georg Zachmann, Carlos Batlle, Francois Beaude, and Christoph Maurer
Publication Date:
02-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The energy crisis that started in 2022 reminded European governments of the resilience provided by relatively well-integrated European electricity markets, which have been painstakingly built-up over several decades. European Union leaders thus decided to reverse a creeping energy renationalisation and to invest in completing the internal market. However, there are some indications that this momentum is being lost, with different EU capitals taking different lessons from the energy crisis, at a time of unprecedented investment needs in generation and grids across the EU. The multiple benefits of enhanced EU energy-market integration should be emphasised. ‘Techno-economic’ benefits can be secured from optimising the design and operation of several national electricity systems jointly, rather than individually. These benefits will increase massively with higher shares of renewables and include less fossil-fuel burn and less volatile short-term prices, cost savings through harnessing regional renewables advantages, reduced need for expensive back-up capacity and flexibility, and enhanced resilience to shocks. In addition, greater energy-market integration will trigger benefits of a more managerial-governance related nature, though these are harder to quantify. They include benefits in terms of competition, innovation and credibility, which are particularly useful in the electricity sector, which typically faces rather long investment times and high degrees of concentration in purely national markets. Further market integration requires substantial political investment. Governments will need to deal with significant distributional effects within and between countries. Experience has shown that domestic political constraints in this respect are often numerous and difficult to overcome. Therefore, achieving the benefits of integration will require a vision on what degree of integration is feasible and desirable, and how to properly implement and govern it. It will also require an honest acknowledgement of the implications and costs of not pursuing greater integration.
Topic:
Markets, European Union, Regional Integration, Electricity, and Energy Crisis
Political Geography:
Europe

118. Smarter European Union industrial policy for solar panels

Author:
Ben McWilliams, Simone Tagliapietra, and Cecilia Trasi
Publication Date:
02-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The European Union plans a major increase in solar PV capacity from 263 GW today to almost 600 GW by 2030. If nothing changes, this expansion will be based almost exclusively on solar panels imported from China, which supplies over 95 percent of solar panels used in the EU. This dependence has raised concerns about EU economic security and geopolitical vulnerabilities, especially in light of recent global disruption. The EU has agreed in principle a non-binding 40 percent self-sufficiency benchmark for solar panels and other identified strategic technologies, to be approached or achieved by 2030. However, for the solar sector specifically, there is no strong economic justification for an import-substitution approach. Such a strategy risks increasing the costs of solar panels, slowing deployment and creating industries that are over-reliant on subsidies. EU solar manufacturing subsidies are not appropriate based on criteria of European production alone. Subsidies could, however, be justified on innovation grounds, by supporting new solar products that have a real chance to develop into sustainable industries that contribute to climate goals. To address concerns about short-term dependence, alternative tools should be employed: accelerated solar deployment, strategic stockpiling and gradually diversifying import sources. In the longer term, recycling of solar panels deserves greater attention and funding. In terms of strengthening economic resilience relative to China, Europe should implement an industrial policy that intervenes in sectors that are more likely to contribute to sustainable economic growth and alleviate decarbonisation bottlenecks.
Topic:
Industrial Policy, European Union, Imports, Solar Power, Economic Security, and Energy Transition
Political Geography:
Europe

119. Entry and competition in mobile app stores

Author:
Fiona Scott Morton
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
Entry by rival app stores on the two currently available mobile operating systems is an exciting potential benefit of the European Union’s Digital Markets Act (DMA). Apple and Google will need to share the technical specifications of their interfaces with developers and offer them the same functionalities they give to their own stores. The DMA also allows developers to disintermediate the legacy stores entirely by mandating downloads from the web to handsets. These changes should stimulate price competition – resulting in fees falling from the current 30 percent – and competition in variety and features. Privacy and security will be important issues, with the question of who is permitted to offer rival stores being critical. Good enforcement by the European Commission will be necessary to balance gatekeeper rules restricting dangerous services with the need for contestability. The paper concludes with examples of rival app stores that can be expected to enter. Stores will differentiate through curation, such as stores for children, for those trying to reduce their carbon footprints or for those seeking to use public services in a particular country. Some stores will innovate through alternative payment schemes – for example, a newspaper store that enables per-article pricing and pioneers innovative data-sharing policies. Lastly, developers such as Epic have long stated their desire to offer stores with innovative technology.
Topic:
European Union, Regulation, Mobile Applications, Digital Markets Act (DMA), and Competition
Political Geography:
Europe

120. The chicken-and-egg problem in the European Union Digital Markets Act

Author:
Fiona Scott Morton
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
The gatekeeper platforms regulated by the European Union’s Digital Markets Act (DMA) must comply with the law as of 6 March 2024. The DMA requires that core platform services create and make available interfaces that allow business users to access end users via the platform at lower cost and on better terms. For example, app developers will have the right to distribute on handsets through different app stores, using different payment services, directing users to purchase content on the web and charging different prices in different channels. The gatekeeper must provide the application programming interfaces, or APIs, to enable business users to take advantage of these rights. However, the DMA does not define exactly what those APIs should be. Rather, the law requires a gatekeeper’s interface to be “effective,” meaning business users can use it to enter, compete and innovate. Because such a design is not, in general, in the interest of the gatekeeper, the input of business users to both gatekeepers and the European Commission is critical for evaluating compliance with the law. Thus far there is little evidence of platforms interacting with business users or putting out interfaces for evaluation by business users, or of business users offering comments on what interfaces would be best for entry and competition. It may be that the interface must come first, and then its existence will stimulate entry of new business users or investment into new services that will use the interface. Rather like the chicken and the egg, which should come first? Business users are needed to help create useful interfaces, while useful interfaces are needed to justify investment and entry by business users.
Topic:
Markets, European Union, Investment, and Digital Markets Act (DMA)
Political Geography:
Europe

121. Making industrial policy work: a case study on the European Battery Alliance Academy

Author:
Conor McCaffrey and Niclas Poitiers
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
The transition from cars powered by the internal combustion engine to vehicles powered by electric batteries implies a fundamental shift in the types of skills required by the automotive industry. However, the industry faces significant problems in finding suitable workers. Surveys show that the lack of skilled labour is seen by firms as a problem of similar magnitude to high energy costs. Against the background a general skills shortage in the European Union, the shortage of skilled labour represents a major impediment to the development of a European battery industry. The European Battery Alliance Academy is the main component of the EU’s strategy for tackling this problem. It develops training courses and materials to assist local training providers, and serves as a blueprint for skills policies in other industries. However, given the scale of the challenge, it represents more a symbolic than a substantive answer to the challenge. More should be done. The limited powers of the EU in labour market policies hold up a union-wide solution. In the short term, the training programmes developed by the European Battery Alliance Academy* could more explicitly target demographics that are underserved by private training providers. In the medium term, the EU should rethink its labour market competences in order to develop a social pillar to underpin the European green transition.
Topic:
Industrial Policy, European Union, Labor Market, Skilled Labor, and Workforce
Political Geography:
Europe

122. Europe’s under-the-radar industrial policy: intervention in electricity pricing

Author:
Ben McWilliams, Giovanni Sgaravatti, Simone Tagliapietra, and Georg Zachmann
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The different ways in which European Union member-state governments add levies to the price of electricity creates huge discrepancies in the prices paid by consumers. Europe’s energy transition depends upon increasing electrification of the economy and increasing the share of that electricity produced by renewable sources. Both factors raise the importance of electricity taxes set by governments. The energy crisis drew attention to this: as electricity prices soared, governments responded with billions of euros in subsidies to protect households and companies. While the acute phase of the energy crisis has passed, growing concerns about industrial competitiveness create political pressure for governments to continue with such subsidies or tax exemptions. High profile examples include the French reform of nuclear-power generated electricity pricing, and a political debate in Germany over how aggressively to subsidise the electricity price paid by energy-intensive firms. We frame the debate on intervention in electricity pricing around five distributional dilemmas concerning the recuperation of electricity expenses: 1) whether to raise general or electricity taxes, 2) the split between household and companies, 3) the split between energy-intensive and non-energy intensive companies, 4) cross-border effects, and 5) trade-offs in attracting new clean-technology manufacturing factories. Priorities according to these distributional criteria will differ by country, but these factors should be central to discussions. Governments must recognise that efforts to lower prices artificially for one group of consumers will raise prices for others, including with cross-border implications. The current compromises in the French and German cases do not pose substantial issues to the integrity of the European single market and do not penalise non-energy-intensive domestic consumers excessively.
Topic:
Industrial Policy, European Union, Electricity, Price, and Energy Crisis
Political Geography:
Europe

123. NATO: Waging High-Tech Warfare

Author:
Yury Belobrov
Publication Date:
01-2024
Content Type:
Journal Article
Journal:
International Affairs: A Russian Journal of World Politics, Diplomacy and International Relations
Institution:
East View Information Services
Abstract:
THE rapid technological progress observed in the last decade throughout the world, especially in China and Russia, threatens the established sources of military and industrial dominance of the collective West on the world stage. NATO views this as an alarming trend, and in an attempt to stop it, bloc members are making a determined effort to preserve their militarytechnological leadership and the international order structured around their policies. To this end, they are initiating a new arms race, partially through the active incorporation into the military sphere of the latest breakthrough technologies (Emerging and Disruptive Technologies – EDT), which, they believe, can reverse the emerging multipolarity of international relations and radically change the nature of future wars. Thus, the Allies are stepping up collective efforts to master innovative technologies and introduce them into the operational activities of NATO and all member nations to ensure their victory in future high-tech wars. They emphasize the urgency of adapting the armed forces of said countries to the realities of global technological advancement. As the communiqué adopted at the Alliance summit in Vilnius in 2023 directly stated: “We are accelerating our own efforts to ensure that the Alliance maintains its technological edge in emerging and disruptive technologies to retain our interoperability and military advantage including through dual-use solutions.”1 The US, as the main sponsor of NATO militarism, demands that its allies and partners closely and expeditiously collaborate on the creation of novel weaponry utilizing these emerging technologies and dramatically increase investment in various EDT projects and adapt their armed forces to them. Under the US’s diktat, Brussels and its American allies are creating new bureaucratic and financial entities. Private businesses and academic and research institutions are also being drawn into this sphere. To speed up this process, at the urging of Washington at the NATO summit in Brussels in 2021, a strategic initiative was launched to create the NATO Defense Innovation Accelerator for the North Atlantic (DIANA), which will manage and coordinate all this activity within NATO. The main task of this organization is to form an innovative technological network that unites R&D centers, innovative start-ups, defense enterprises, and military agencies in order to simultaneously and rapidly master all types of dual-use EDT technologies and implement them in the civilian and military fields. In addition to these efforts, a decision was also made to form a €1 billion NATO Innovation Fund to finance venture capital companies developing dual EDT in areas of strategic importance to NATO. Essentially, these decisions by the alliance are aimed at mobilizing European resources, primarily to strengthen American military power. Of course, the main efforts to field the latest technologies are being undertaken by the largest member nations.
Topic:
NATO, International Cooperation, Weapons, Innovation, Emerging Technology, High-Tech Wars, and Military and Industrial Advantage
Political Geography:
Russia, Europe, and United States of America

124. The Greek Tragedy: Narratives and Imagined Futures in the Greek Sovereign Debt Crisis

Author:
Jens Beckert and Hans Lukas Richard Arndt
Publication Date:
04-2024
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Between 2009 and 2015 Greece underwent a profound sovereign debt crisis that led to a serious political crisis in Europe and the restructuring of Greek debt. We argue that the prevalence of negative narratives about the future contributed to the changes in spreads of Greek bonds during the crisis. We support our argument by presenting results from text mining a corpus of 9,435 articles from the Financial Times and the Wall Street Journal. Based on sentiments and a machine learning model predicting future reference, we identify newspaper articles which generate negative and uncertain outlooks for the future in the expert discourse. We provide evidence from time series regression analysis showing that these negative imagined futures have explanatory power in models estimating spread development of Greek vs. German sovereign bonds. We suggest that these findings provide good evidence for the relevance of “imagined futures” for investors’ behavior, and give directions for an innovative contribution of sociology to understanding the microfoundations of financial crises.
Topic:
Debt, Financial Crisis, Financial Markets, Future, Sovereign Debt, Economic Sociology, Sentiment Analysis, and Valuation
Political Geography:
Europe and Greece

125. Talking Exports: The Representation of Germany’s Current Account in Newspaper Media

Author:
Andreas Maschke
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Contents 1 Introduction 2 Germany’s export-led growth model 3 Sustainability of growth models: Growth coalitions and public discourse 4 Analysing the discourse surrounding Germany’s current account surplus 5 Results Quantitative analysis Qualitative analysis 6 Discussion of results 7 Conclusion Appendix References
Topic:
Political Economy, Media, News Analysis, Economic Growth, and Discourse
Political Geography:
Europe and Germany

126. Conservatism and the Climate Crisis

Author:
Sam Hall, Pilita Clark, Rachel Coxcoon, and Robert Saunders
Publication Date:
06-2024
Content Type:
Video
Institution:
Mile End Institute, Queen Mary University of London
Abstract:
he climate crisis poses new challenges to all parties and traditions, and will require the intellectual resources of both right and left to meet it effectively. In this event in May 2024, the Mile End Institute brought together Sam Hall (Director of the Conservative Environment Network), Pilita Clark (leading environmental journalist), Rachel Coxcoon (Director of ClimateGuide) and Dr Robert Saunders to explore what Conservatism can contribute to the climate debate. They explored the Conservative Party's record in government, the place of the environment in the Conservative tradition, and the challenges facing Conservative environmentalists at a time of growing political polarisation.
Topic:
Climate Change, Environment, Politics, Conservatism, Crisis Management, and Polarization
Political Geography:
United Kingdom and Europe

127. Remembering John Smith: His Legacy and Lessons

Author:
Robert Saunders, David Ward, Richard Johnson, and Dame Pauline Green
Publication Date:
05-2024
Content Type:
Video
Institution:
Mile End Institute, Queen Mary University of London
Abstract:
The night before John Smith QC died in May 1994, he spoke at the Park Lane Hotel to raise money for the Labour Party's campaign for the next general election. To the 500 people in attendance, Smith remarked that 'the opportunity to serve our country—that is all we ask'. 30 years on from his death, Smith is often recalled as one of the 'best Prime Ministers we never had' and is still viewed with affection by many people regardless of their political views. However, in his own party, John Smith's legacy has often been more contentious. For supporters of the 'New Labour' project pursued by his successor, John Smith - as David Miliband told the Mile End Institute in May 2022 - failed to 'understand that in 1992 the electorate told us, in no uncertain terms, that they wanted a different offer from Labour'. On Thursday 9 May 2024, the Mile End Institute marked the 30th anniversary of John Smith's death by inviting a distinguished panel of historians and eyewitnesses to consider John Smith's legacy and lessons for the Labour Party today. Chaired by Dr Robert Saunders, it featured David Ward (John Smith's Head of Policy and Adviser from 1988 to 1994), Dr Richard Johnson (Senior Lecturer at QMUL), and Dame Pauline Green (former Chair of the Party of European Socialists).
Topic:
Politics, History, Labour Party, and John Smith
Political Geography:
United Kingdom and Europe

128. Bad Chaps, Jews and the Failure of British Decency: Antisemitism in Historical Perspective

Author:
Simon Schama
Publication Date:
05-2024
Content Type:
Video
Institution:
Mile End Institute, Queen Mary University of London
Abstract:
Sir Simon Schama is one of the most distinguished historians of our time. As a writer, broadcaster, columnist and art-critic, his books and documentaries have covered an extraordinary range of subjects, stretching from the histories of art, slavery and public health to Romanticism, baseball and the American future. His award-winning books include Citizens: A Chronicle of the French Revolution (1989), Landscape and Memory (1995), Rough Crossings (2005) and Foreign Bodies: Pandemics, Vaccines and the Health of Nations (2023). He has written three volumes on the History of Britain and two volumes on The Story of the Jews, both of which have been made into BBC TV series. He is currently Professor of Art History and History at the University of Columbia, and was knighted in 2018 for ‘services to history’. On Friday 8 March 2024, Sir Simon drew on his long expertise in British and Jewish history to deliver the first in a new series of distinguished 'Hennessy Lectures', celebrating the life of the historian and cross-bench peer Lord Hennessy of Nympsfield. In this inaugural lecture at ‪@QMUL‬Sir Simon explored ‘Bad Chaps, Jews and the Failure of British Decency: Antisemitism in Historical Perspective’.
Topic:
History, Jews, and Antisemitism
Political Geography:
United Kingdom and Europe

129. Yvette Cooper MP: Remembering John Smith

Author:
Yvette Cooper
Publication Date:
05-2024
Content Type:
Video
Institution:
Mile End Institute, Queen Mary University of London
Abstract:
On Thursday 9 May 2024, the Shadow Home Secretary Yvette Cooper MP came to ‪@QMUL‬to give a keynote lecture in memory of the late ‪@labourparty‬, John Smith. 30 years on from Smith's untimely death, Cooper reflected on working for him before the 1992 election and his legacy on devolution to Scotland and Wales, the creation of the Minimum Wage, Freedom of Information, and the lessons of his leadership for the Labour Party today.
Topic:
History, Domestic Politics, Political Parties, and Labour Party
Political Geography:
United Kingdom and Europe

130. A History of British Elections with Iain Dale

Author:
Robert Saunders, Iain Dale, Philip Cowley, and Jennifer Davey
Publication Date:
04-2024
Content Type:
Video
Institution:
Mile End Institute, Queen Mary University of London
Abstract:
On Wednesday 10 April 2024, the Mile End Institute celebrated the launch of Iain Dale's new book, British General Election Campaigns, 1830-2019. Featuring an essay on every general election since 1830, the book ranges across every aspect of electoral history: from landslides and hung parliaments to corruption, electoral violence and the birth of the modern campaign. With a cast ranging from William Gladstone and Sir Robert Peel to Margaret Thatcher and Boris Johnson, it explores how elections are won and lost, how they have changed over time, and what lessons can be drawn for the present.
Topic:
History, Elections, and Domestic Politics
Political Geography:
Britain, United Kingdom, and Europe

131. In Conversation with Sir David Lidington

Author:
David Lidington
Publication Date:
04-2024
Content Type:
Video
Institution:
Mile End Institute, Queen Mary University of London
Abstract:
On Tuesday 26 March, the Mile End Institute welcomed the former Conservative MP and Cabinet minister, Sir David Lidington, to @QMUL. Sir David was elected as the Conservative MP for Aylesbury in Buckinghamshire from 1992 and retired from the House of Commons at the 2019 general election. In addition to being the longest-serving Minister for Europe, occupying the post throughout David Cameron's premiership, Sir David served as the Leader of the House of Commons, Secretary of State for Justice, and Minister for the Cabinet Office in Theresa May's administration. As Chancellor of the Duchy of Lancaster between January 2018 and July 2019, Sir David was widely recognised to be Theresa May's de facto Deputy Prime Minister. In a wide-ranging conversation with Dr Robert Saunders five years on from the collapse of Theresa May's Withdrawal Agreement, Sir David reflected on his early life in London, working as Douglas Hurd's special adviser at the Home Office and the Foreign Office during Margaret Thatcher and John Major's governments, and the start of his own parliamentary career after 1992. They also explored his work in government after 2010, the Brexit debate which dominated his last three years in Parliament, and the state of the Conservative Party today.
Topic:
Elections, Domestic Politics, and Conservative Party
Political Geography:
Britain, United Kingdom, and Europe

132. The Inaugural Hennessy Lecture: Sir Simon Schama

Author:
Simon Schama and Emma Griffin
Publication Date:
03-2024
Content Type:
Video
Institution:
Mile End Institute, Queen Mary University of London
Abstract:
Sir Simon Schama is one of the most distinguished historians of our time. As a writer, broadcaster, columnist and art-critic, his books and documentaries have covered an extraordinary range of subjects, stretching from the histories of art, slavery and public health to Romanticism, baseball and the American future. His award-winning books include Citizens: A Chronicle of the French Revolution (1989), Landscape and Memory (1995), Rough Crossings (2005) and Foreign Bodies: Pandemics, Vaccines and the Health of Nations (2023). He has written three volumes on the History of Britain and two volumes on The Story of the Jews, both of which have been made into BBC TV series. He is currently Professor of Art History and History at the University of Columbia, and was knighted in 2018 for ‘services to history’. On Friday 8 March 2024, Sir Simon drew on his long expertise in British and Jewish history to deliver the first in a new series of distinguished 'Hennessy Lectures', celebrating the life of the historian and cross-bench peer Lord Hennessy of Nympsfield. In this inaugural lecture at ‪@QMUL‬, hosted by Professor Emma Griffin (Head of ‪@qmulschoolofhistory4447‬ and President of the Royal Historical Society), Sir Simon explored ‘Bad Chaps, Jews and the Failure of British Decency: Antisemitism in Historical Perspective’.
Topic:
History, Jews, and Peter Hennessy
Political Geography:
United Kingdom and Europe

133. Reforming the Centre of Government

Author:
Caroline Slocock and Ray Shostak
Publication Date:
03-2024
Content Type:
Video
Institution:
Mile End Institute, Queen Mary University of London
Abstract:
Ahead of a potential change of government in the United Kingdom during this year, this webinar examines the reform of the centre of government across the world. Chaired by Professor Patrick Diamond, this webinar saw Professor Ray Shostak, Martin Alessandro, and Caroline Slocock explore the lessons that could be learned by British policy practitioners. In every government, the centre of government performs a set of crucial functions: the institutions and units working at the centre provide managerial direction and coherence to the complex governing machinery, not least in accelerating the delivery of priority objectives. In the UK, the operation in Number 10 Downing Street has become the focus of much attention in recent years with its leadership and oversight role increasingly questioned. Over the last decade, crises, and shocks - including global pandemics, climate hazards, economic crises, technological developments, and global conflicts - have enhanced the value of anticipatory governance and foresight, cross-ministerial planning and policy design, alongside real-time performance monitoring and intervention all provided through the centre of government.
Topic:
Government, Reform, Crisis Management, and Institutions
Political Geography:
United Kingdom and Europe

134. 'An Insane Miracle': 100 years of since the first Labour government

Author:
Carolyn Quinn, Jon Cruddas, David Torrance, Jane Ridley, and Richard Johnson
Publication Date:
02-2024
Content Type:
Video
Institution:
Mile End Institute, Queen Mary University of London
Abstract:
On 22 January 1924, the United Kingdom experienced what The Annual Register described as ‘a revolution as profound as that associated with the Reform Act of 1832’ – the formation of the first Labour government. After an inconclusive general election in December 1923, the King invited Ramsay MacDonald to become Prime Minister. For the leader of the so-called ‘Wild Men’ – who had helped to found the Labour Representation Committee in 1900 and been the fledgling party’s leader for a little over a year – the formation of his minority administration was ‘an insane miracle’. While the government was defeated just over nine months later, at a general election in October 1924, it proved to the country and the wider movement that the Labour Party was willing and able to govern. To mark the centenary of MacDonald’s appointment, the Mile End Institute assembled a stellar panel of experts on Labour politics, the constitution, and interwar Britain. In addition to Jon Cruddas MP and Dr David Torrance - whose new books A Century of Labour and The Wild Men had just been published - we were joined by Professor Jane Ridley (the author of George V: Never a Dull Moment) and Dr Richard Johnson. In this fascinating discussion chaired by the journalist and former host of Radio 4’s Westminster Hour, Carolyn Quinn, the panel reflected on King George V's decision to call for MacDonald rather than the governing Conservative or Liberal parties, the changing makeup of the Labour Party and its relationship with the Crown, and the MacDonald administration's political and legislative achievements. With a general election approaching, the panel also considered what lessons, if any, MacDonald’s minority administration offers to future Labour governments.
Topic:
Reform, Elections, Domestic Politics, and Labour Party
Political Geography:
United Kingdom and Europe

135. The Case for the Centre Right: In Conversation with David Gauke

Author:
David Gauke
Publication Date:
01-2024
Content Type:
Video
Institution:
Mile End Institute, Queen Mary University of London
Abstract:
In recent years, as the authors of this major important collection of essays argue, the landscape of British politics has fundamentally changed. The Conservative Party in particular has undergone a profound transformation. Centre-right values that steered British politics for decades - internationalism, respect for the rule of law, fiscal responsibility, belief in our institutions - were cast aside in the wake of the Brexit referendum to the detriment of the UK's prosperity, electoral trust, and the long-term fortunes of the Conservative Party. In this event, the ‪@mileendinstitute4300‬ welcomed the former Conservative MP and Lord Chancellor, David Gauke, to ‪@QMUL‬ to talk about his new book, The Case for the Centre Right. Published in September 2023, this collection of essays features contributions from Michael Heseltine, Rory Stewart, and Amber Rudd, and has been described as a 'classic indictment of the deceptions of populism' by the former Prime Minister, Sir John Major. Hosted by Professor Tim Bale, this event also featured Andrew, Lord Cooper of Windrush, who contributed a chapter on the realignment of British politics since 2016.
Topic:
Domestic Politics, Political Parties, Conservative Party, and Center Right
Political Geography:
United Kingdom and Europe

136. The Downing Street Declaration: Thirty Years On

Author:
Martyn Frampton and Eleanor Williams
Publication Date:
01-2024
Content Type:
Video
Institution:
Mile End Institute, Queen Mary University of London
Abstract:
On 15 December 1993, the governments of the United Kingdom and the Republic of Ireland signed the Downing Street Declaration: a "charter for peace and reconciliation" that sought "to remove the causes of conflict, to overcome the legacy of history and to heal the divisions" in Northern Ireland. Signed by John Major and Albert Reynolds, the Downing Street Declaration asserted the principle of self-determination for the North of Ireland. The UK government disclaimed any "selfish strategic or economic interest in Northern Ireland" and promised to facilitate a united Ireland if that was the wish of the majority. The Irish government recognised that "it would be wrong to attempt to impose a united Ireland, in the absence of the freely given consent of a majority of the people of Northern Ireland", and that any settlement must "respect the democratic dignity and the civil rights and religious liberties of both communities" . The result was a landmark moment in the peace process, with consequences that continue to this day. This webinar, held in December 2023, looks back at the making of the Downing Street Declaration and assesses its legacy for the peace process. It brings together two specialists in Irish history, Professor Martyn Frampton (QMUL) and Dr Eleanor Williams (Oxford), in conversation with Dr Robert Saunders, to explore a landmark moment in British and Irish history, and to reflect on the lessons thirty years after it was agreed.
Topic:
Domestic Politics, Peace, Reconciliation, Peace Process, and Downing Street Declaration
Political Geography:
United Kingdom, Europe, Ireland, and Northern Ireland

137. Getting Statelessness Published: Pathways to Publication for Early Career Researchers in the Field of Statelessness Studies

Author:
Barbara von Rütte
Publication Date:
02-2024
Content Type:
Journal Article
Journal:
Statelessness & Citizenship Review
Institution:
Peter McMullin Centre on Statelessness, Melbourne Law School
Abstract:
In Hungary, four legislations regulating citizenship-related issues in detail had been enacted starting from the second half of the 19th century. The Hungarian legislation recognises the legal status of statelessness and the concept of a stateless person. Hungary has ratified both the 1954 Convention relating to the Status of Stateless Persons(‘1954 Convention’)1 and the 1961 Conventionon the Reduction of Statelessness (‘1961 Convention’).2 Consequently, there was an intention to find a solution for persons who submit an application for stateless status in its territory. In this commentary, I introduce the Hungarian citizenship legislation in force, particularly focusing on the articles concerning the acquisition of Hungarian citizenship and how these relate to statelessness. I examine whether statelessness is adequately addressed in the legislation governing the acquisition of Hungarian citizenship and whether the legislation in force is able to provide appropriate safeguards in order to prevent statelessness, especially childhood statelessness. Comprehensive analysis regarding this matter is currently lacking. I argue that the situation in Hungary could be viewed as a ‘glass half empty’, as the citizenship legislation does provide some safeguards against statelessness, but significant flaws remain in the legislation regarding the prevention of statelessness, especially childhood statelessness. The National Assembly should address these gaps toenable Hungary to fulfil its international obligations under the 1961 Conventionto prevent and eradicate childhood statelessness. This commentary only focuses on the examination of the citizenship law and its safeguards against statelessness. I do not extend the analysis to the Hungarian statelessness determination procedure.
Topic:
Citizenship, Naturalization, Legislation, Statelessness, and Hungarian Citizenship Act
Political Geography:
Europe and Hungary

138. Europe’s Democracy Catch-22

Author:
Richard Youngs
Publication Date:
07-2024
Content Type:
Commentary and Analysis
Institution:
East Asia Institute (EAI)
Abstract:
The dominant, epoch-making European storyline is now clear: the rise of the far right threatens the European Union (EU)’s future and democracy. This standard view is expressed in countless opinion pieces and political speeches and is now reshaping both national and EU-level politics. Even if the far right did not surge quite as dramatically as widely predicted in either the European Parliament or French parliamentary elections, its growing popularity clearly represents a pressing challenge both at the EU level and in national politics (Ash 2024). However, the continent’s predicament might be more accurately described as a more subtle and complex conundrum: in the immediate short term, what is good for the EU integration project might not be good for democracy, and vice versa. The EU and national governments have been struggling with this democracy catch-22 for several years now, and the election results make it an even sharper challenge. The postelection context has been dominated by the debate over whether to engage or isolate the far right—a debate that has been exhaustively covered and unfolding for many years. Yet, the empirical record suggests that neither engaging with the far right nor ostracizing it has worked especially well. Instead, a third approach might help map a way out of the democracy catch-22: a European democracy pact.
Topic:
Elections, European Union, Democracy, and Far Right
Political Geography:
Europe

139. The technical limits of the EU. Europe’s defense economy as a driving force for strategic autonomy and technological sovereignty

Author:
Loïc Simonet
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Austrian Institute for International Affairs (OIIP)
Abstract:
The Working Paper delves into the European Union’s defense sector’s evolution and current challenges, underscoring the urgency for strategic autonomy and technological sovereignty. It provides a historical backdrop of EU defense initiatives, highlighting the significant influence of recent geopolitical shifts, notably the conflict in Ukraine, on the EU’s defense strategies and industrial landscape. The fragmentation of the European defense market, rising equipment costs, and hefty R&D expenses undermining competitiveness and innovation are identified as key challenges. The author focuses on the war in Ukraine as a catalyst for a consolidated defense equipment market and a surge in military expenditures and defense investments among EU nations. He scrutinizes EU’s measures to foster innovation and integration in the defense market while grappling with national protectionism and divergent member state interests. Conclusively, the report advocates for an autonomous European defense capability as crucial for tackling both longstanding and emerging crises and threats. It underscores the imperative of a harmonized defense approach within the EU, highlighting its significance for the region’s stability and security.
Topic:
Defense Policy, European Union, Strategic Autonomy, and Russia-Ukraine War
Political Geography:
Europe and Ukraine

140. A "new Washington consensus"

Author:
Johannes Späth
Publication Date:
01-2024
Content Type:
Special Report
Institution:
Austrian Institute for International Affairs (OIIP)
Abstract:
This oiip trend report delves into the shift in the U.S. and the EU towards protectionist foreign trade policies, diverging from traditional free trade principles. Despite initial expectations of a return to free trade under President Joe Biden, the administration has maintained and expanded protectionist measures, emphasizing a labor-centered approach with import tariffs. This departure is situated within a broader global context, reflecting a growing alignment on economic security policies and strategic autonomy between the transatlantic partners. The phenomenon, termed "polite protectionism," reveals bipartisan support, influencing upcoming elections. The text elaborates on the evolving dynamics of global trade, highlighting the multifaceted motivations and consequences of the contemporary protectionist trend.
Topic:
Free Trade, Trade, Protectionism, and Joe Biden
Political Geography:
Europe, North America, and United States of America

141. The OSCE in Zeitenwende: How to keep the Organization on the radar screen?

Author:
Loïc Simonet
Publication Date:
01-2024
Content Type:
Special Report
Institution:
Austrian Institute for International Affairs (OIIP)
Abstract:
After a decade of turmoil in Ukraine, the OSCE faces a critical moment marked by internal deadlocks and external challenges. The absolute priority, on the way forward to the 50th anniversary of the Helsinki Final Act, is to prevent the Organization from loosing its remaining visibility. A concerted effort to redefine the organization’s purpose is imperative, but this rests in the hands of the participating States, whose active support remains all too rare. Returning to “basics” and focusing on core competencies will be essential. The OSCE can still shape a renewed "Helsinki Plus" for European security, but we need to hurry before our leaders reinvent the wheel.
Topic:
Regional Cooperation, OSCE, and Regional Security
Political Geography:
Europe

142. From “as long as it takes” to “as long as we can”: will the West abandon Ukraine?

Author:
Loïc Simonet
Publication Date:
01-2024
Content Type:
Special Report
Institution:
Austrian Institute for International Affairs (OIIP)
Abstract:
Ukraine starts 2024 on a military stalemate. Sustaining its war effort critically depends on increasing Ukraine allies’ – especially Europe – manufacturing capacity. Without continued Western aid, Ukraine cannot win this war. Both in the U.S. and in Europe, though, the momentum for supporting Ukraine “as long as it takes” seems to be waning, especially since the eruption of violence in the Middle East partly took Ukraine off the media screens. Continuing to steadily contain Russia is the only option for now. Ukraine’s future, but also the West’s credibility, are at stake.
Topic:
Foreign Policy, Foreign Aid, Armed Conflict, and Russia-Ukraine War
Political Geography:
Europe, Ukraine, and United States of America

143. Navigating Extremism: Safeguarding Europe’s Religious Sites amidst Shifting Political Landscapes

Author:
Annika Scharnagl and Daniela Pisoiu
Publication Date:
01-2024
Content Type:
Special Report
Institution:
Austrian Institute for International Affairs (OIIP)
Abstract:
This report highlights the increase in violence against religious institutions in Europe, particularly affecting Jewish and Muslim communities following conflicts such as the Israel-Hamas war. The report also notes a correlation with the rise of right-wing factions, indicating a concerning trend towards discriminatory beliefs in society. It is concluded that urgent scholarly and policy interventions are necessary to address these challenges. This emphasises the need for comprehensive interfaith dialogues and educational initiatives to mitigate emerging threats and uphold the values of religious freedom and social cohesion in contemporary European societies.
Topic:
Violent Extremism, Far Right, Social Cohesion, Protection, Muslims, and Jews
Political Geography:
Europe

144. Identity Continuities, Far-Right Acquiescence, and the “New” and the “Old”: Finnish and Swedish NATO Accession and Neutrality

Author:
Erik Isaksson
Publication Date:
04-2024
Content Type:
Policy Brief
Institution:
Austrian Institute for International Affairs (OIIP)
Abstract:
With Finland and Sweden’s accession to NATO, the number of neutral or non-aligned states in the EU has been reduced to three: Austria, Ireland, and Malta. How did Finland and Sweden’s shifts come about? What do these shifting neutrality – alliance membership constellations mean for the concept of neutrality, and for Austria’s position as a neutral state? This paper first examines the Finnish and Swedish debates pertaining to their own respective shifts, with particular attention to the far-right parties in those countries. It argues three things: first, contrary to most commentary, both the Finnish and Swedish policy shifts were underpinned by identity considerations, identities that remain largely the same under NATO membership as under non-alignment. Second, the far right’s acceptance of NATO membership has been a mix of opportunism and broadly engrained views of Russia. Third, par-ticularly in Sweden, neutrality has become seen as a thing of the past, and alliance membership as new and exciting, with possible implications for how neutrality is understood internationally. The paper then examines the state of the neutrality debate in Austria, with particular attention to the notion of neutrality as Austrian identity, the role of the FPÖ, and the potential risks for “neutral Austria” going forward. It concludes with a summary of the paper’s findings; a look at how neutrality in Austria, too, might increasingly be seen as an “old” concept; and by offering examples of how foreign policy con-cepts have been successfully reimagined in the past.
Topic:
NATO, European Union, Regional Integration, Neutrality, and Identity
Political Geography:
Europe, Finland, and Sweden

145. Gender-responsive development

Author:
Karmen Tornius and Lars Engberg-Pedersen
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
In addition to national gender policies, African governments and non-state actors engage with the African Union and United Nations to negotiate and draft international agreements on gender equality issues. This DIIS Working Paper explores the priorities, contestations and gaps in the African Union’s gender governance; the status of and priorities in gender-responsive governance at country level; and African priorities in global gender policy spaces. This study discusses those linkages between different levels while focusing on nine countries: Burkina Faso, Egypt, Ethiopia, Ghana, Kenya, Somalia, South Africa, South Sudan and Uganda. Taking Danish development co-operation priorities as a point of departure, these countries provide perspectives from very diverse economic and security contexts.
Topic:
Democratization, Development, Diplomacy, International Organization, Politics, African Union, Peacebuilding, and Gender
Political Geography:
Europe and Denmark

146. The African Union's contested role in advancing gender equality

Author:
Karmen Tornius
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The African Union (AU) has put forth significant initiatives addressing gender equality issues on the continent but is confronted by concerns related to legitimacy, donor dependency and questionable impact on the ground.
Topic:
Development, African Union, Donors, Equality, and Gender
Political Geography:
Europe and Denmark

147. Energy as a weapon - decoding blackmail tactics in Europe

Author:
Veronika Slakaityte and Izabela Surwillo
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
‘Energy blackmail’ became a buzzword following the Russian invasion of Ukraine in 2022 and the subsequent energy crisis, but the phenomenon is not new. Energy blackmail has been employed by states to leverage their strategic energy resources for decades. In Europe, the weaponisation of energy predates Vladimir Putin’s time in Kremlin. Despite EU efforts to diversify its energy supply, the threat of energy blackmail persists, posing challenges not only to traditional energy dependencies but also to the increasingly digitalised energy sector.
Topic:
European Union, Energy, Russia-Ukraine War, and Natural Gas
Political Geography:
Russia and Europe

148. Future Danish engagement with Africa: Insights and priorities for Denmark´s new Africa strategy from DIIS’ partners across the continent

Author:
Mary Boatemaa Setrana, Rahma Hassan, Faisal Garba, Mohamed Aden Hassan, Meron Zeleke Ersesso, Adam Moe Fejerskov, Nauja Kleist, and Mikkel Funder
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Remaking political relations with African countries has become a key priority for the Danish government, looking toward a future where Africa becomes of greater (geo)political importance to Denmark and Europe. To achieve this, Denmark is preparing a new plan for its future strategic engagement on the continent. Aiming to situate African countries closer to Denmark’s core foreign affairs, the plan is expected to address questions across the fields of foreign affairs, security, development, and trade, and focus on equal partnerships. The government has indicated a need to build on the mantra of ‘preaching less and listening more’ – as the Danish minister for foreign affairs framed it at a recent visit to Kenya – with political relations based on a ‘pragmatic idealism’ and more genuine forms of cooperation that reflect mutual interests. In this Policy Brief, some of DIIS’ African research partners consider key questions on what it takes to achieve equal partnerships, what a new Danish strategic engagement with Africa should look like, and what it should refrain from.
Topic:
Foreign Policy, Development, Engagement, and Strategic Engagement
Political Geography:
Africa, Europe, and Denmark

149. EU technology resilience and autonomy

Author:
Flemming Splidsboel Hansen and Maria Mundt
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
In the face of growing international competition between both individual states and coalitions of states, the European Union is developing a new approach towards technological resilience and autonomy.
Topic:
Science and Technology, European Union, Autonomy, Resilience, and International Competition
Political Geography:
Europe

150. The war in Ukraine poses unprecedented threats to aid workers

Author:
Jethro Norman
Publication Date:
02-2024
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
An interstate war in Europe presents new security challenges for humanitarians. Along the 960km Ukraine-Russia frontline, humanitarian infrastructure has been hit by shelling, missiles and drone strikes, and aid delivery disrupted by electronic warfare. Supporting specialised training and removing outdated bureaucratic burdens are some of the ways in which donors and policymakers can help humanitarian organisations adapt to this new context.
Topic:
Security, Humanitarian Aid, Conflict, Peace, Russia-Ukraine War, and Aid Workers
Political Geography:
Russia, Europe, and Ukraine