Search

Begin New Search Topic Government Political Geography Europe Content Type Policy Brief Publication Year within 25 Years Publication Year within 5 Years Publication Year within 10 Years

1. 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

2. 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

3. National Security vs. Accountability: Striking the Right Balance

Author:
Redion Qirjazi
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
Institute for Democracy and Mediation (IDM)
Abstract:
Information classification is an important mechanism that governments use to keep citizens safe and protect national interests. However, when classification regimes produce excessive secrecy, they can both interfere with democratic governance and counterproductively jeopardize national security. As such, on the one hand, ‘overclassification’ can lead to reduced oversight, transparency, and accountability in the security sector, while on the other, prevent security agencies from sharing information rapidly and detect security threats in due time. Unfortunately, in the case of Albania, there still remains a disproportionate emphasis on the need to safeguard national secrets versus the right of citizens to be informed on decisions made on their behalf. Hence, as it is for every other public institution, this policy brief calls for security sector agencies to pursue a balanced approach to secrecy: one that strikes the right compromise between protecting national security and delivering good governance by ensuring transparency and accountability.
Topic:
Government, National Security, Accountability, Transparency, Classification, and Information Technology
Political Geography:
Europe and Albania

4. 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

5. It’s Time for a New Deal

Author:
Constantine Michalopoulos
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The prospects of the Greek economy are mostly good with growth continuing for the fourth straight year. But there is a sense of disappointment, as the recovery has not been very strong and pre-crisis income levels will not be regained for another decade. There are two main reasons for the sluggish recovery: The European creditors have imposed on Greece the requirement to run a primary budget surplus of 3.5% of GDP for five years to ensure that they get repaid—a requirement that constricts growth of the Greek private sector—through heavy taxation of consumers and business. And domestic investment is sluggish, although there are plenty of unutilized resources, such as those provided by the European Structural Funds. There is a need for a new deal with the European Institutions: the Europeans should be more relaxed about getting repaid because of Greece’s much improved access to the European capital markets and be willing to accept a Greek government commitment to a significantly lower primary budget surplus for the next several years. In exchange the Greek government should commit to a commensurate increase in domestic investment through reforms of the banking sector as well as greater public sector investment spending.
Topic:
Government, Financial Crisis, Economy, Economic Growth, and Public Spending
Political Geography:
Europe and Greece

6. A New Policy Toolkit Is Needed as Countries Exit COVID-19 Lockdowns

Author:
Olivier Blanchard, Thomas Philippon, and Jean Pisani-Ferry
Publication Date:
06-2020
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
The measures that most governments took in response to the sudden collapse in economic activity during the COVID-19 lockdowns nearly exclusively focused on protecting vulnerable workers and firms. These measures included unemployment benefits, grants, transfers, loans at low rates, and tax deferrals. As lockdowns are lifted, governments must shift policies toward supporting the recovery and design measures that will limit the pain of adjustment while preserving productive jobs and firms. This Policy Brief explores how such measures can be designed, with particular emphasis on Europe and the United States. The authors propose a combination of unemployment benefits to help workers, wage subsidies and partially guaranteed loans to help firms, and debt restructuring procedures for small and medium-sized companies handicapped by excessive legacy debt from the crisis.
Topic:
Debt, Economics, Government, Labor Issues, Unemployment, and Coronavirus
Political Geography:
Europe, North America, and United States of America

7. The French initiative: technocratic fixes for Lebanon’s chronic crises

Author:
Al Jazeera Center for Studies
Publication Date:
09-2020
Content Type:
Policy Brief
Institution:
Al Jazeera Center for Studies
Abstract:
Major Lebanese factions are urgently trying to fulfill French demands for the formation of a technocratic government that opens the door for international aids and alleviates public anger and increasing foreign isolation.
Topic:
Government, Bilateral Relations, Crisis Management, and Technocracy
Political Geography:
Europe, Middle East, France, and Lebanon

8. A new policy toolkit is needed as countries exit COVID-19 lockdowns

Author:
Olivier Blanchard, Thomas Philippon, and Jean Pisani-Ferry
Publication Date:
06-2020
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
The measures that most governments took in response to the sudden collapse in economic activity during the COVID-19 lockdowns nearly exclusively focused on protecting vulnerable workers and firms. These measures included unemployment benefits, grants, transfers, loans at low rates, and tax deferrals. As lockdowns are lifted, governments must shift policies toward supporting the recovery and design measures that will limit the pain of adjustment while preserving productive jobs and firms. This Policy Brief explores how such measures can be designed, with particular emphasis on Europe and the United States. The authors propose a combination of unemployment benefits to help workers, wage subsidies and partially guaranteed loans to help firms, and debt restructuring procedures for small and medium-sized companies handicapped by excessive legacy debt from the crisis.
Topic:
Government, Labor Issues, European Union, Unemployment, and COVID-19
Political Geography:
Europe, France, Germany, North America, and United States of America

9. An International Partnership for Sudan’s Transition: Mobilizing Support, Preventing Instability

Author:
Gerrit Kurtz
Publication Date:
06-2020
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
Germany has helped lead efforts to mobilize international support for Sudan’s transition process since President al-Bashir was ousted last year. To be successful, Germany and its partners must deliver on their promises to support the transitional government’s economic reforms with substantial aid. They should keep Sudan’s diverse partners aligned while broadening their outreach. Sudan is thus a test case for how much political capital Germany will spend on its stated objective of conflict prevention.
Topic:
Conflict Prevention, Foreign Policy, Government, Partnerships, and Transition
Political Geography:
Africa, Europe, Sudan, and Germany

10. Brief on COVID-19: National governments, not the EU, sleepwalked into the corona crisis

Author:
Christian Kvorning Lassen
Publication Date:
04-2020
Content Type:
Policy Brief
Institution:
Europeum Institute for European Policy
Abstract:
In his brief, Christian Kvorning Lassen writes that on January 26, the EU’s Centre for Disease Control (ECDC) warned Member States that Covid-19 infection spread in Europe would be probable and considerable. The EU offered in January to support Member States with purchasing of medical equipment, test kits, protective gear, and general support. Member States refused the EU’s help in January, stating that their health care systems were adequately prepared for the Virus.
Topic:
Government, Crisis Management, COVID-19, and Health Crisis
Political Geography:
Europe

11. The Rule of Law in the EU Budget: Backing Down Is Too High a Price for the EU to Pay

Author:
Milan Nič, Roderick Parkes, Siawomir Sierakowski, and Shahin Vallée
Publication Date:
11-2020
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
Hungary and Poland are threatening to veto the EU’s new budgetary arrangements if other governments apply the rule of law mechanism to them. It is becoming clear, however, that the new EU financial framework, and the much-heralded recovery fund, are more vital to Eastern Europe than to Europe’s South and that time is not on the side of the former. Awareness of this fact allows for a cool assessment of the pair’s bargaining positions – and of the precedent that any hasty resolution to the crisis will set.
Topic:
Government, Budget, European Union, and Rule of Law
Political Geography:
Europe and Eastern Europe

12. Viral vulnerability: How the pandemic is making democracy sick in the Western Balkans

Author:
Beáta Huszka and Tania Lessenska
Publication Date:
12-2020
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
The covid-19 crisis has accentuated Western Balkans countries’ pre-existing vulnerabilities related to the rule of law and democratic governance – but has not brought about a new political era in the region. Western Balkans governments have often taken selective and arbitrary approaches to applying restrictions in response to the pandemic, sometimes using these measures to silence their critics and opponents. The measures could have the most severe long-term effects of any aspect of the crisis response. They exacerbate the greatest threat to the accession process in the Western Balkans: backsliding on the EU’s political criteria. Yet the EU seems less inclined than it once was to allow Western Balkans governments to get away with democratic backsliding just because they align themselves with the bloc geopolitically.
Topic:
Government, European Union, Democracy, Crisis Management, and COVID-19
Political Geography:
Europe and Balkans

13. Czech EU presidency: Basis for a Successful Implementation

Author:
Vít Havelka
Publication Date:
12-2020
Content Type:
Policy Brief
Institution:
Europeum Institute for European Policy
Abstract:
Czech policy makers must not resort to a partisan programme of the Czech presidency. Strong antipathy between government and opposition might create a fragile political environment for the presidency Czech priorities must be thoroughly discussed with partners in trio, and the Czech Republic should closely coordinate its intentions with Sweden in order to counterbalance French influence Space of Czech initiatives will be limited due to the current phase of the EP legislative period, and the Czechs should thus focus only on particular issues that they consider vital – single market policies, environmental policies, and innovation. The EU presidency must be used for EU membership promotion in the Czech Republic. Importantly, there should take place high-level meetings in the Czech Republic and outside of Prague.
Topic:
Environment, Government, Markets, European Union, and Innovation
Political Geography:
Europe and Czech Republic

14. The European Banking Union

Author:
Pery Bazoti
Publication Date:
08-2019
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The decade of the economic crisis has highlighted in the most apparent way the flaws and weaknesses in the original architecture of the Economic and Monetary Union as well as the need for decisive reforms. In this effort, the European Banking Union constitutes one of the most ambitious projects of the European Union with the intention of establishing a single system of banking supervision and resolution based on a common regulatory framework. The three pillars of the banking union, analysed in the present policy brief- the Single Supervisory Mechanism, the Single Resolution Mechanism and the European Deposit Insurance Scheme– not only safeguard the banks against future financial crises but also ensure that their potential resolution will not be at the expense of the European taxpayers. Yet, there are also significant challenges that come with the establishment of the banking union; the lack of agreement on a system of risk sharing among the member states has, so far, hindered the creation of the third pillar, the European Deposit Insurance Scheme. Moreover, the new dual role of the ECB, in monetary policy and in banking supervision, and the tendency of banks to buy domestic government debt, raise questions about the efficacy of the European Banking Union under its current design.
Topic:
Government, European Union, Banks, and Economic Policy
Political Geography:
Europe

15. Point of No Return: Viktor Orbán’s Divorce from the EPP

Author:
Milan Nič and András Rácz
Publication Date:
05-2019
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
A few weeks after the European People’s Party (EPP) suspended the membership of Hungary’s ruling populist party, Fidesz, it looks unlikely that their relationship could be repaired. Seeing his leverage decreasing, Hungarian Prime Minister Viktor Orbán has been paving the way for divorce. The EPP leaders seem to have made up their minds as well. A re-arrangement of the European party system is already taking shape ahead of the upcoming European elections (23–26 May 2019), not only afterwards.
Topic:
Government, Regional Cooperation, Elections, European Union, and Political Parties
Political Geography:
Europe and Hungary

16. Guarding the guardians: Ukraine’s security and judicial reforms under Zelensky

Author:
Gustav Gressel
Publication Date:
08-2019
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
Despite Ukrainians’ deep unhappiness with the corruption and inefficiency of the judiciary and security bodies, the Poroshenko administration failed to reform these services. Political interference and personal enrichment have long been part of the practice of these services, overshadowing the strong work they are often capable of and holding back reformist elements. The office of the prosecutor general and the Ukrainian Security Service need particular attention, but merely passing new laws will not be enough: replacing incumbent high-level officials should be an early step. The EU, US, and NATO have worked effectively together on encouraging reform in Ukraine, but they must now ensure that these services remain high in the minds of the Zelensky administration and of Rada members.
Topic:
Security, Corruption, Government, Reform, and Judiciary
Political Geography:
Europe and Ukraine

17. Border games: Has Spain found an answer to the populist challenge on migration?

Author:
Shoshana Fine and José I. Torreblanca
Publication Date:
09-2019
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
Spain, and Europe, need a new story about migration – there is some recognition of this in Spain but it remains to be seen how the country will put this into practice. Spaniards are relatively open towards migration, but the policy challenge for their government should be to allay, and not provoke, fears of migrant invasion. The Spanish government has called for reform of the EU asylum system, favouring solidarity and shared responsibility as opposed to simply stopping ‘secondary movements’. Spain’s migration diplomacy aspires to work with origin and transit countries rather than acting in a coercive way towards them. The Spanish experience should inform EU member states’ efforts to seek to answers to the populist challenge: they should enact comprehensive, planned, and proactive policies that see migration as normal and necessary.
Topic:
Government, Migration, Border Control, European Union, and Asylum
Political Geography:
Europe and Spain