Search

Begin New Search Content Type Policy Brief Publishing Institution Finnish Institute of International Affairs

131. An alienated partnership: German-Russian relations after Putin's return

Author:
Stefan Meister
Publication Date:
05-2012
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The return of Vladimir Putin as Russia's president and the probable end of Dmitri Medvedev's modernization project will increase the alienation within German-Russian relations. Germany's modernization partnership with Russia has produced limited results because the two sides have different views on the cooperation. While the German side wants to develop common projects of good practice which will modernize the Russian economy and politics, the Russian side is interested in technology transfer. The interest in and knowledge of Russia among German decision-makers is decreasing. Germany lacks vision and concepts on how to influence developments in Russia. This is also due to the resistance of the current Russian elite towards implementing political reforms. As a result, Russia is losing its most important advocate in the EU (also regarding energy policy). This will have a negative impact on EU-Russia relations because the EU lacks leadership on Russia. Ongoing changes in Russian society, which challenge the Putin system, will present an opportunity to find new allies in Russia for cooperation and modernization, which may increase Germany's interest in its large neighbour. But this will call for a more balanced approach between the Russian elites and society in Germany's Russia policy.
Topic:
Democratization, Economics, Social Stratification, and Bilateral Relations
Political Geography:
Russia, Europe, and Germany

132. 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

133. The corporate benefits of the euro: Finnish companies cannot live without a common currency

Author:
Timo korkeamäki
Publication Date:
04-2012
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The costs of euro membership have been a topic of lively political debate in recent years, and they have received ample media attention. In contrast, numerical estimates on the benefits of the euro have been practically non-existent. While the corporate benefits of the euro have been widely documented in the academic literature, the practical value of those publications has suffered from their technical complexity. Several experts have linked the fast growth of corporate bond markets in Europe since 1999 to the introduction of the euro. With growing arm's length credit markets in Europe, companies' access to financing has improved significantly. Companies from countries with small and unstable legacy currencies, such as Finland, have benefited comparably more from the widened financial markets. The cost savings due to the lowered cost of debt are non-trivial. For a set of large Finnish companies alone, the narrowing spread between their interest expenses and those of their German counterparties has resulted in after-tax cost savings of over €400 million each year. Sweden, Norway, and Denmark may have received some free-rider benefits while staying outside the currency union. However, it is difficult to estimate whether such benefits would have been obtainable had Finland chosen to keep its own currency. Reductions in the cost of financing should increase companies' ability to invest, and thus these savings are likely to have multiplicative effects on the economy for years to come.
Topic:
Economics, International Trade and Finance, Markets, and Monetary Policy
Political Geography:
Europe

134. A rocky road towards Europe: The prospects for the EU's Eastern Partnership Association Agreements

Author:
Kristi Raik
Publication Date:
06-2012
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The EU has a strategic goal to build political association and economic integration with the six countries included in its Eastern Partnership policy. To reach this goal, it has invented a new model of association agreement that includes deep and comprehensive free trade. At best, three out of six Eastern partners are likely to sign the agreements within the next couple of years.
Topic:
Democratization, Economics, and Regional Cooperation
Political Geography:
Europe

135. Great expectations: Understanding why the UN climate talks seem to fail

Author:
Antto Vihma and Harro van Asselt
Publication Date:
06-2012
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Every year, the UN climate negotiations seem to fail the test of saving the global climate in the public eye. The expectations placed on the UN climate regime are simply too high. The great expectations of the UN climate regime—and the subsequent inability to meet them–are damaging, as they resonate with sceptics of international climate policy and UN multilateralism in general. The world has changed since the early 1990s, when post-Cold War optimism provided fertile ground for establishing several environmental regimes. The new geopolitical and domestic realities provide the backdrop for the progress that can be achieved through multilateral climate negotiations. However, the UN climate regime plays a crucial role by catalysing climate action, building a common vision between different states, enhancing transparency, and promoting the diffusion of novel policy ideas and instruments. The role of the UNFCCC could be further strengthened by allowing it to act as an orchestrator which coordinates the array of initiatives.
Topic:
Climate Change, Cold War, Environment, International Cooperation, Treaties and Agreements, and United Nations

136. Ripe and ready for Rio+20? The UN conference on sustainable development and the European Union

Author:
Marikki Stocchetti
Publication Date:
06-2012
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The UN Conference on Sustainable Development (Rio+20) marks a historic opportunity to address unsustainable trends in economic, social and environmental development multilaterally. Still, on the eve of Rio+20, the international community lacks consensus and leadership. The European Union has taken a very proactive and constructive role in the preparations for Rio+20. However, the EU's commitment to the sustainable development agenda is not shared equally across its policies or member states. This weakens the EU's strategic position in the negotiations. Disagreements between Rio+20 parties cut across all the main items on the agenda. In particular, the topic of the “Green Economy” brings old clashes between developing economies and post-industrialized countries back to the fore. The key question relates, on the one hand, to the right to determine development strategies, and on the other hand, to the division of responsibilities between countries. On a more optimistic note, the need for institutional reform and joint sustainable development objectives has been widely acknowledged. In addition, much progress can still be made in the 15 thematic areas of sustainable development. This may compensate for the lack of unanimity on grand paradigms. It is of utmost importance for a successful outcome that the Union works in unison, with clear negotiation mandates, and coordinates its views effectively throughout the process. Success at Rio+20 may also help to increase the EU's own coherence with regard to sustainable development in the future.
Topic:
Development, Economics, and Environment
Political Geography:
Europe

137. Between conditionality and engagement: Revisiting the EU's democracy promotion in the Eastern neighbourhood

Author:
Kristi Raik
Publication Date:
04-2011
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The EU needs to place a stronger emphasis on promoting democracy in its Eastern neighbourhood. A new approach should combine limited, focused conditionality with increased openness and multi-level linkages. Conditionality is often effective in promoting faster and better reforms where the home-grown will to democratise is present (as in Moldova, for example). It is not likely to work as a transformative policy, bringing about change from authoritarianism to democracy in the neighbourhood. The goal of tying neighbours to Europe should prevail over the principle of political conditionality. Economic integration and visa freedom have to be pursued with all neighbouring countries. This makes democratisation more likely to occur in the longer term. Engagement, providing it is not limited to political leaders, can be a successful strategy to push for democratic change. Cooperation with (semi-)authoritarian governments has to be accompanied by strong support for civil society and multiple links with the populations. Ukraine is a test case of the EU's ability to use association agreements as a tool for democracy promotion. The involvement of neighbours in the negotiation process offers a possibility to shape their domestic agendas. At the same time, there must be 'red lines': the EU should emphasize that it will not sign the agreements with countries having major problems with democracy.
Topic:
Democratization
Political Geography:
Europe and Arabia

138. Getting cold in the Caucasus: Can the EU prevent the freezing of the Georgian-Russian conflict?

Author:
Teemu Sinkkonen
Publication Date:
03-2011
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Since the stabilization of the Georgian-Russian conflict, no further progress has been achieved and the conflict is in danger of freezing again. Leaders on both sides are taking full advantage of the tension that exists between them, while the people living on the boundary line are paying a heavy price because of the conflict. The EU has assumed considerable responsibility for the resolution of the conflict, but due to insufficient coordination at the operational level and a lack of coherent political support, it has been increasingly ignored by both parties. The Georgian-Russian conflict offers a great window of opportunity for the EU to define its overall strategy for the conflict management it so desperately needs.
Topic:
Conflict Resolution and Territorial Disputes
Political Geography:
Europe, Asia, and Georgia

139. Practicing progressive pragmatism: Charting Barack Obama's course for U.S. foreign policy

Author:
Charly Salonius-Pasternak
Publication Date:
03-2011
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
President Barack Obama's view and handling of foreign policy challenges can be described as pragmatically progressive. His foreign policy blends a realist mindset and pragmatic approach with liberal and, at times, idealistic and far-reaching goals. Obama's foreign policy decision-making process is deliberate. This is not always compatible with the expectations of the modern political and media environment. Two years into his presidency, Obama has engaged with the five major national security issues he outlined as a candidate, meeting initial success in four of them. When faced with unexpected events largely beyond his control, Obama seems not to make snap decisions based on a particular ideology, preferring to take the time to see how events unfold. When faced with crises that build up slowly or were previously identified in scenarios, Obama's administration has responded robustly and deliberately.
Topic:
Foreign Policy, Defense Policy, and Diplomacy
Political Geography:
United States

140. Divided we fail: Time for the EU to speak with one voice to Belarus

Author:
Anaïs Marin
Publication Date:
06-2011
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The West has come to admit that the Belarusian regime is indifferent to incentives and sanctions alike. The crackdown on the opposition that has been ongoing since Alexander Lukashenka's last fraudulent re-election shows that Belarus is drifting ever further away from democratic values and the EU's “ring of friends”. Reversing this trend requires EU member states to acknowledge that they bear part of the responsibility for the failure of the engagement policy launched in October 2008.
Topic:
Conflict Resolution, Democratization, and Diplomacy
Political Geography:
Europe and Brussels