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1. Iceland and Europe: Drifting further apart?

Author:
Baldur Thorhallsso and Alyson J. K. Bailes
Publication Date:
09-2013
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Iceland applied for EU membership in 2009 at the height of the economic crisis. Four years later, a new government has put the application on hold: the majority of Icelanders are opposed to entry, but want to continue the accession process and put the results to a vote. Iceland's longer-standing problems with European integration stem from the issue of sovereignty in general, and maintaining control over fisheries and agriculture in particular. Since 2009, anti-European feelings have been stoked by the 'Icesave' dispute, while the prospective benefits of entry (including use of the euro) have been tarnished by witnessing the fate of other small states during the euro crisis. The new government proposes remaining a member of the EEA and developing relations with other world powers. But the US commitment to Iceland has weakened over the years, and 'rising' powers like China are unable, as yet, to solve the country's core problems. In terms of both its security and its standing within the global economy, Iceland is becoming more rather than less dependent on Europe over time. The question raised by the latest political turn is whether it will have to maintain that relationship from a distance, with limited control and with no guaranteed goodwill.
Topic:
Economics, International Trade and Finance, Political Economy, Regional Cooperation, Treaties and Agreements, and Financial Crisis
Political Geography:
United States and Europe

2. Russia's pressure politics: The Kremlin's uncompromising approach to opponents threatens political stability

Author:
Sean Roberts
Publication Date:
12-2012
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
If Russia is to follow an evolutionary path to democracy, then the regime must be ready to draw the so-called 'non-systemic' opposition into political processes. This gradualist formula for democratic change is also the formula for political stability. A number of liberalising reforms conducted by the regime in response to widespread protests following the December 2011 State Duma election gave grounds for optimism that this process is now underway. However, any hopes that these events would kick-start democratic reforms were short-lived. Rather than draw in opponents, the regime has sought to isolate them, using a combination of reform, non-reform, dividing tactics and repression. But the results have not been positive. The non-systemic opposition is under increasing pressure, having seen its options all but reduced to more protesting. It is also showing signs of radicalisation. At the same time, the Kremlin's uncompromising approach is undermining regime stability. The pressure is building in the Russian political system. The combination of repression and radicalisation could easily see political stagnation degenerate into instability and the EU should take this new dynamic into account in its future policy planning.
Topic:
Security, Corruption, Democratization, Government, Political Economy, and Authoritarianism
Political Geography:
Russia and Europe

3. A Eurosceptic big bang: Finland's EU policy in hindsight of the 2011 elections

Author:
Kaisa Korhonen and Juha Jokela
Publication Date:
05-2012
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The Finnish parliamentary elections in spring 2011 were marked by a landslide victory for the Eurosceptic (True) Finns Party. Such an unprecedented upswing for anti-integrationist voices was expected to reshape Finland's EU policy. The Finns Party did not join the government, however, and the party has mainly influenced Finnish EU policymaking while in opposition, and indirectly through public opinion-building. While outright anti-integrationist rhetoric remains on the margins of national public debate, more critical approaches to EU politics have become increasingly pronounced. Political parties have, to varying degrees, adapted their rhetoric and policies to the changing environment. Importantly, the broad consensus on EU affairs in Finland has broken down, at least temporarily. The EU has featured high on the agendas of the recent election campaigns as well as in opposition politics. This has affected Finland's official position too. It has moved in a more cautious and self-contained direction, although the country remains a pro-integrationist member state.
Topic:
Democratization, International Trade and Finance, Political Economy, and Regional Cooperation
Political Geography:
Europe and Finland

4. On the road to a true Economic and Monetary Union? The challenges of fiscal federalism and democratic legitimacy

Author:
Teija Tiilikainen
Publication Date:
05-2012
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Lessons learned from the current economic and financial crisis pose great challenges for the EU concerning the future development of the EMU. Through the recent changes the limits of a mere coordination of economic policies have been reached and a debate about turning the system into a true Economic and Monetary Union must be launched. A further strengthening of the EU's power in economic and fiscal policies would require a clearer move in the direction of fiscal federalism, that is, a more balanced relationship between the Union's budget and those of the member states. It would also require the finalization of the Union's democratic system along the lines of a federal political order. The divided character of the currency union presents significant difficulties for its further deepening and democratization.
Topic:
Economics, Political Economy, Regional Cooperation, Monetary Policy, and Financial Crisis
Political Geography:
Europe

5. The transport infrastructure in Russia - From modernization to development: fact and fiction

Author:
Katri Pynnöniemi
Publication Date:
02-2008
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
During recent years, transport and infrastructure development has acquired the status of a 'topic to be mentioned by the president' and other high-level state officials in their public appearances. The rise of transport from almost complete oblivion into the sphere of state strategic interests has been rapid, and it is a subject which is likely to maintain a high profile in the years to come. Success in implementing the current plans for infrastructure development is considered critical in order to generate further economic growth. From the longer-term perspective, it will also be critical in ensuring the diversification of the economy and securing Russia's place amongst the most advanced economies in the world. The modernization of the transport infrastructure is also seen as a lever with which Russia can reposition herself as a power-house in Eurasia. In actual fact, Russia is not a bridge but the dead-end of Eurasia. The country is faced with the enormous task of modernizing its transport infrastructures and implementing structural reforms that have been postponed for years. This would pose a tremendous challenge even in the best possible external circumstances, never mind against the backdrop of inflation and uncertainty in the world markets which exists at present. Something which has changed is that Russia now has the resources and the appropriate legislation in place to carry out these tasks. Yet, even if considerable effort has gone into defining strategic priorities, infrastructure investments are still implemented in an ad-hoc manner. The country is in dire need of massive construction projects. If the quality of the state apparatus in managing government spending does not improve – and there are few signs of that materializing – infrastructure development will become the Trojan horse of the Russian economy.
Topic:
Development, Government, and Political Economy
Political Geography:
Russia, Europe, and Asia