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Begin New Search Topic COVID-19 Political Geography Europe Content Type Working Paper Publication Year within 10 Years Publication Year within 25 Years

1. China’s quest for innovation: progress and bottlenecks

Author:
Alicia Garcia-Herrero and Robin Schindowski
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
As the Chinese economy continues to decelerate, the central government is investing heavily in innovation, doubling down on research and development (R&D) spending and STEM-oriented human capital. In this paper, we assess China’s progress so far, looking at the inputs to innovation (R&D and human capital) as well as intermediate targets, such as scientific research and patents. We then evaluate how China has fared with respect to the ultimate goal of commercialising this progress, by looking at the value-added of Chinese exports and the overall productivity of the economy. We identify three potential bottlenecks that might be hindering the translation of China’s innovation efforts into productivity growth.
Topic:
Industrial Policy, European Union, Economic Growth, Innovation, and COVID-19
Political Geography:
China, Europe, and Asia

2. The hidden inequalities of digitalisation in the post-pandemic context

Author:
Cristiano Cadagnone and Maria Savona
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
Digitalisation has a ‘hidden’ impact on employment, particularly on the invisible conditions of some jobs, as perceived by workers, that are relatively less explored in the literature and that could represent a substantial social cost, particularly in the aftermath of the financial crisis and the COVID-19 pandemic. We start by summarising a few main challenges of digitalisation, with a focus on the additional challenges brought about by the pandemic, the rise of platforms and alternative work arrangements, and the current attempts to regulate these. We then discuss the hidden aspects of inequality linked to the unmeasured side effects of digitalisation. Mental health in particular should be taken into account, particularly in the post-pandemic context, which has led to a significant amount of working from home. Also, the reduction of tasks previously done in the workplace in favour of remote working might limit social interactions, creativity and innovation potential. We conclude by suggesting areas for policy interventions.
Topic:
Labor Issues, Economy, Automation, and COVID-19
Political Geography:
Europe and Global Focus

3. Structural Change, Income Distribution and Unemployment Related to COVID-19: An Agent-based Model

Author:
Branimir Jovanovic, Michael Landesmann, Oliver Reiter, and Torben Schütz
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
We study the distributional consequences of COVID-19 by using a stock-flow consistent agent-based model that captures some of the aspects of pandemic-related lockdowns. In particular, the model distinguishes between ‘essential’ and ‘non-essential’ industries, between jobs that can be done from home and jobs that must be carried out on site, and takes into account that firms need to hire a certain amount of overhead labour. Allowing for government-financed short-time working schemes and loan guarantees, we find that these policies significantly reduce the rise in firm liquidations and income inequality (the ‘Keynesian’ result). However, we also find that the absence of government policies leads to higher levels of productivity and GDP in the aftermath of the crisis, as it means that more of the less productive firms face liquidation during lockdowns (the ‘Schumpeterian’ result). The last finding must be taken with adequate caution as our model is designed to describe the short run, while statements about the long run would require the inclusion of additional features such as technological progress and the entry of new firms.
Topic:
Income Inequality, Macroeconomics, Unemployment, and COVID-19
Political Geography:
Europe and Austria

4. Ending the HIV epidemic in Europe: Moving toward the 2030 sustainable development goals

Author:
Elizabeth Kuiper and Danielle Brady
Publication Date:
11-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Despite significant progress, the human immunodeficiency virus (HIV) epidemic continues to pose a public health threat in Europe. The COVID-19 pandemic has exacerbated challenges by disrupting healthcare services and diverting attention and resources away from HIV prevention and treatment. Stigma and discrimination against those affected by HIV persist and are additional obstacles, slowing down progress to end the HIV epidemic. This Discussion Paper explores the current HIV prevalence in Europe, identifies barriers and challenges, and offers policy recommendations to overcome these obstacles and meet the sustainable development goals targets in Europe. The Paper emphasises the need for renewed political commitment and cooperation among the EU and its member states to prioritise HIV as well as for strong partnership and collaboration between authorities and stakeholders concerned, ultimately striving for success in ending the epidemic.
Topic:
HIV/AIDS, European Union, Public Health, and COVID-19
Political Geography:
Europe

5. Is the European Health Union ready for the challenges of the 21st century?

Author:
Elizabeth Kuiper and Danielle Brady
Publication Date:
09-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
The COVID-19 pandemic laid bare national health systems' unpreparedness and structural weaknesses. It also emphasised the disparities in national capabilities among European countries and the lack of a common European approach against cross-border health threats. As we enter a post-pandemic era, this Discussion Paper assesses the proposals under the European Health Union and sets out recommendations to address the identified shortcomings. These include: Adopting a more holistic approach by appointing a Vice President for Well-being. Strengthening crisis preparedness by elevating HERA to an agency. Promoting access and affordability by extending joint procurement. Strengthening the European health workforce by tackling shortages and addressing skills gaps. Mitigating the cost of inaction by increasing investment in health. Ensuring planetary health by promoting a Green European Health Union. Promoting Europe’s status as a global leader in health data by harmonising health data regulations with the European Health Data Space. Safeguarding the EU’s strategic autonomy by implementing the Versailles Declaration and strengthening supply chain resilience. Building on the EU’s Global Health Strategy by exploring global partnerships. This Paper builds on the findings of the European Policy Centre’s Task Force on the European Health Union. The multistakeholder Task Force was held under the auspices of the EPC's Social Europe and Well-being programme with the kind support of Amgen, MSD, Johnson&Johnson, SITRA and EIT Health.
Topic:
European Union, Public Health, COVID-19, and Strategic Autonomy
Political Geography:
Europe

6. Measuring the intangible economy to address policy challenges

Author:
Marie Le Mouel
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
European economies exhibit the so-called ‘productivity puzzle, whereby investments’ in digital technologies and intangible assets have not delivered the hoped-for productivity gains. Explanations for this puzzle lie in the unequal ability of companies to make use of these technologies, and resulting patterns of market concentration, productivity divergence and dampened business dynamism. Access to firm-level data is essential to properly understand these rich dynamics. The purpose of the first work package of the MICROPROD project was to improve the firm-level data infrastructure, expand the measurement of intangible assets and enable cross-country analyses of these productivity trends. The MICROPROD researchers developed the Micro Data Infrastructure (MDI), a centralised platform that harmonises access to the firm-level data gathered by national statistical institutes. The data infrastructure developed through this work package offers valuable insights into the evolution of productivity across the European Union and into the effects of digitalisation and globalisation. It can thus generate important evidence for designing policies to support the European Commission’s policy objectives, especially for achieving the digital and green transitions. In addition, the research enabled by this data infrastructure and carried out within the context of MICROPROD can provide valuable lessons about the response of European economies to the COVID-19 pandemic and its aftermath.
Topic:
Infrastructure, European Union, Digital Economy, Economy, and COVID-19
Political Geography:
Europe and Global Focus

7. The Cyclical Behaviour of Fiscal Policy During the Covid-19 Crisis

Author:
Philipp Heimberger
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper analyses the cyclicality of fiscal policy (discretionary versus automatic) for 28 advanced economies over 1995-2021 by paying special attention to the Covid-19 crisis. We find evidence that discretionary fiscal policy during the Covid-19 crisis (2020-2021) was significantly more countercyclical than before – in particular in the Eurozone. We do not find comparable evidence for more counter-cyclicality during the financial crisis or Euro crisis, which lends support to the argument that discretionary fiscal policy responded especially forceful to stabilise the economy during the Covid-19 crisis. Furthermore, automatic fiscal stabilisers contributed significantly to counter-cyclical stabilisation, although their performance over 2020-2021 was more in line with the past than for discretionary fiscal policy. Overall, fiscal policy in non-Eurozone advanced countries is more countercyclical than in the Eurozone. However, the cyclicality varies markedly across countries. Our findings shed light on how the cyclical behaviour of fiscal policy varies across countries and time.
Topic:
Financial Crisis, European Union, Fiscal Policy, and COVID-19
Political Geography:
Europe

8. Policing in Bosnia and Herzegovina During the COVID-19 Pandemic (2020–2021)

Author:
Stiven Tremaria
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
The Centre for Security Studies
Abstract:
This paper provides an account of the developments of policing in Bosnia and Herzegovina in the course of the COVID-19 pandemic from 2020 to 2021 to shed light on elements of continuity and changes from previous trends observable since the 2010s. It is contended that the COVID-19 has made manifest the extent to which the factual management capacity of the Bosnian state administration and the police forces has consolidated in the entities and cantons. By contrast, central state police agencies suffer from chronic stagnation, institutional dysfunctionality, and a lack of factual management capacity to face unexpected challenges and emergencies. Moreover, the COVID-19 pandemic has fostered certain conditions for advancing the rollback of the democratically oriented police reform observable at the entity and cantonal levels since the last decade, which manifests through politicisation, militarisation and slight informalisation of policing. In particular, such police counter-reform has been more acute in the Republika Srpska under the SNSD rule, in contrast to the Federation of Bosnia and Herzegovina, whose police forces are affected by severe degrees of institutional fragmentation, dysfunctional working and clientelism.
Topic:
Law Enforcement, Institutions, Police, and COVID-19
Political Geography:
Europe, Balkans, and Bosnia and Herzegovina

9. The Cyclical Behaviour of Fiscal Policy During the Covid-19 Crisis

Author:
Philipp Heimberger
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper analyses the cyclicality of fiscal policy (discretionary versus automatic) for 28 advanced economies over 1995-2021 by paying special attention to the Covid-19 crisis. We find evidence that discretionary fiscal policy during the Covid-19 crisis (2020-2021) was significantly more countercyclical than before – in particular in the Eurozone. We do not find comparable evidence for more counter-cyclicality during the financial crisis or Euro crisis, which lends support to the argument that discretionary fiscal policy responded especially forceful to stabilise the economy during the Covid-19 crisis. Furthermore, automatic fiscal stabilisers contributed significantly to counter-cyclical stabilisation, although their performance over 2020-2021 was more in line with the past than for discretionary fiscal policy. Overall, fiscal policy in non-Eurozone advanced countries is more countercyclical than in the Eurozone. However, the cyclicality varies markedly across countries. Our findings shed light on how the cyclical behaviour of fiscal policy varies across countries and time.
Topic:
Financial Crisis, Crisis Management, Fiscal Policy, COVID-19, and Euro
Political Geography:
Europe

10. World Economy Winter 2022: Strong headwinds for global economic activity

Author:
Klaus-Jurgen Gern, Stefan Kooths, Ulrich Stolzenburg, Jan Reents, and Nils Sonnenberg
Publication Date:
12-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
Global growth has decelerated over the course of the year under the impact of high energy prices and great uncertainty. Monetary policy, which is being tightened very quickly in view of high inflationary pressure across the board, is now also putting a drag on economic activity. Overall, production remained on an upward trend into the fall, with impetus coming from easing supply bottlenecks and the continuing normalization of activity in those sectors of the economy particularly affected by the Covid-19 pandemic. Towards the end of the year, however, economic momentum weakened noticeably further. The major advanced economies in particular are currently facing a period of weak economic activity despite considerable fiscal support measures. At the same time, the problems for the Chinese economy remain significant. While global output (measured on a purchasing power parity basis) at 3.2 percent is expected to grow by 0.3 percentage points more this year than expected in September, we continue to forecast an increase of only 2.2 percent next year. For 2024, our expectation has even been reduced slightly to 3.2 percent, mainly because we do expect the US economy to recover slowly. Inflation is likely to have peaked and is expected to slow significantly over the forecast horizon thanks to lower commodity prices and easing economic tensions. However, underlying inflation is not likely to return to target levels until the end of the forecast period.
Topic:
Monetary Policy, Economy, Business, COVID-19, and Emerging Economies
Political Geography:
China, Europe, Asia, North America, and United States of America

11. World Economy Autumn 2022: Global growth falters

Author:
Klaus-Jurgen Gern, Stefan Kooths, Ulrich Stolzenburg, Jan Reents, and Nils Sonnenberg
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
In spring 2022, world economic growth came to a standstill amid high inflation, persistent supply bottlenecks and elevated uncertainty. In many countries real wages are declining significantly dampening private consumption even though extra savings accumulated during the pandemic are still available to mitigate the adverse impact to some extent. At the same time financial conditions have also deteriorated as central banks tightened their policies. In China, the strict zero-covid policy and problems in the real estate sector are slowing economic activity. Against this backdrop, the outlook for the global economy has deteriorated further. We have, again, lowered our forecast and are now expecting global output to increase by only 2.9 percent this year and 2.2 percent next year (calculated on a purchasing power parity basis). The forecast assumes that commodity prices will gradually decline in line with forward prices, which will over time reduce the upward pressure on prices and provides the foundations for an economic upturn in 2024. However, the pass-through of higher commodity prices into consumer prices is probably not yet complete and wage increases are likely to intensify in many countries. Consequently, underlying inflation is likely to remain higher than in the years before the Covid crisis and remain above central bank targets over the forecast horizon.
Topic:
Monetary Policy, Business, COVID-19, Zero-COVID, Emerging Economies, and Advanced Economies
Political Geography:
China, Europe, Asia, North America, and United States of America

12. The Digitalization of EU Public Diplomacy: the pandemic crisis and beyond

Author:
Christos A. Frangonikolopoulos and Eleftheria Spiliotakopoulou
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
This paper explores the digitalization of diplomacy and attempts to shed light on the adaptation level of the European Union by presenting the European External Action Service’s activity on social media and selected Public Diplomacy initiatives during the covid-19 pandemic. The main research questions posed in the study are: a) in what ways has the European Union used digital tools to respond to the coronavirus crisis; and b) what are the (recurring) challenges facing the European Union in its efforts to improve its image in a changing world and enhance its role as a leading global actor? The paper concludes that while the European Union is highly competent in terms of digitalization, it does face challenges, which are partly inherent in the sui generis nature of the European Union as an International Organization. These include the need for deeper integration, better coordination between member states, and further dialogue with the Union’s citizens, and must be met if the EU is to enhance trust and build solidarity, as well as a clearer and more solid European identity.
Topic:
Diplomacy, European Union, Regional Integration, COVID-19, Digitalization, and Adaptation
Political Geography:
Europe

13. Covidocracy in the Election Process – An Analysis of the Pandemic Narrative Serving the State Capture

Author:
Srdan Hercigonja
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Belgrade Centre for Security Policy
Abstract:
In this analysis, the predominant narratives of the pandemic shall be explored, as well as the ways they have impacted the state capturing process in the period from the second half of 2021 till 3 April 2022, when the general and presidential elections took place in Serbia. The crisis caused by the COVID-19 pandemic denuded the authoritarian tendencies in Serbia, both in the state and in the society, making visible the size and scope of state capturing. To what extent this process has set in may be best visible by the way the institutions and authorities have made decisions during the pandemic management, as well as by the decision they have taken. It has been 26 months since the first infection case was registered in Serbia and since the two-month long state of emergency was introduced. Ever since, decisions have been taken towards reducing the virus spread, but also disregarding the opinions of experts in this field (epidemiologists, virologists and immunologists). The decisions were made depending on the ruling elite’s political interests. For the first year and a half after the outbreak, the mainstream discourse imposed by the authorities was that the state and the society were at war. All the elements of war discourse were noticeable in the statements of public officials, even experts – there is an enemy out there whom we must beat (the virus), emergency measures like curfew were introduced, the story of doctors like frontline warriors was imposed, and allies were also chosen for this war. The narrative of war like predominant discourse of fighting the pandemic provided legitimacy for the highest officials to take the crucial decisions in countering the pandemic – precisely this enabled the President of the Republic or the Prime Minister to take and communicate the most important decisions regarding this “war”, while experts were placed at the margins of decision-making. Finally, the top officials are competent for declaring victory at war, and the ruling party declared the victory over the pandemic twice, both times on the eve of elections – first time in May 2020, and second in March 2022. However, during the autumn 2021, the narrative of war as the prevalent one during the pandemic was replaced by quiet and silence, the story of the pandemic was pushed to the margins, which was particularly evident in the April 2022 pre-election period.
Topic:
Elections, Democracy, Pandemic, and COVID-19
Political Geography:
Europe and Serbia

14. Pandemic Management – Lessons Learned for a Safer Future

Author:
Milja Dimitrijevic and Rade Panic
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Belgrade Centre for Security Policy
Abstract:
How the pandemic was managed in Serbia and what are the recommendations for better coping in similar situations in the future, read in the analysis made by BCSP in cooperation with the Union of Doctors and Pharmacists of Serbia. The political and social context in which the pandemic management in Serbia is analysed is marked by a drastic decline in the level of democracy in the country, as well as the strengthening of authoritarian tendencies in the state and society within the process of “capturing the state” by the ruling elite. Unfortunately, Serbia cannot boast of successful results, especially if we take into account the number of deceased citizens, as well as the low level of vaccination compared to European Union countries. The number of deceased citizens in 2021 is as much as 18 percent higher than in the same period in 2020. Statistical data show that in 2021, most people died in Serbia within one year since the end of World War II. These data speak volumes about the results of the crisis management caused by the COVID-19 epidemic in Serbia. In this analysis, the focus is on two aspects of pandemic management – the legal aspects of crisis management and the health system’s readiness to deal with the crisis. The analysis was created within the framework of informal cooperation between the Belgrade Centre for Security Policy and the Union of Doctors and Pharmacists of Serbia. The author of the paper on the legal aspects of pandemic management is a lawyer from the Union of Doctors and Pharmacists Milja Dimitrijević, while the part about the capacities of the health system was written by Dr. Rade Panić, the President of the Union of Doctors and Pharmacists. The analysis was created within the survey that was conducted from October 2021 to March 2022. Precisely because of that, some data in the analysis were presented during the writing of the analysis itself, which were relevant during the research and writing the analysis (for example, when writing about the number of infected citizens, or the number of deceased doctors). Finally, the analysis concludes with certain recommendations necessary to improve the management of the COVID-19 pandemic, but possibly some other pandemics in the future.
Topic:
Governance, Public Health, Pandemic, and COVID-19
Political Geography:
Europe and Serbia

15. (Absence of) Trust and Security in the Second Year of the Pandemic – Serbian Citizens’ Opinions about the COVID-19 Pandemic

Author:
Maja Bjelos and Srdan Hercigonja
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Belgrade Centre for Security Policy
Abstract:
What do Serbian citizens think about the COVID-19 pandemic? What are their opinions about vaccination? Do they trust the institutions that were managing the pandemic? We present you an analysis of citizens' attitudes on these topics. The public opinion poll on the management of the COVID-19 pandemic, the process of immunisation of the population and the impact of the pandemic on the work of institutions and the status of democracy was conducted during the relatively calm epidemiological period, just before the big wave in late 2021 and early 2022, when Serbia had a record number of registered citizens newly infected with the Coronavirus. At the same time, the survey was conducted in the period when all adult citizens were offered the so-called booster or the third dose of the vaccine against COVID-19. The observed period was marked by the political and security crisis in Kosovo, so the pandemic was not in the focus of public and political discussion. In the meantime, the gradual calming of the situation regarding the pandemic itself, and primarily the reduction of the number of newly infected and dead, created space for the analysis and assessment of the way the pandemic had been managed.
Topic:
Public Opinion, Public Health, Pandemic, and COVID-19
Political Geography:
Europe and Serbia

16. Global Supply Chain Pressures, International Trade, and Inflation

Author:
Julian di Giovanni, Şebnem Kalemli-Özcan, Alvaro Silva, and Muhammad A. Yildirim
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
We study the impact of the Covid-19 pandemic on Euro Area inflation and how it compares to the experiences of other countries, such as the United States, over the two-year period 2020-21. Our model-based calibration exercises deliver four key results: 1) Compositional effects – the switch from services to goods consumption – are amplified through global input-output linkages, affecting both trade and inflation. 2) Inflation can be higher under sector-specific labor shortages relative to a scenario with no such supply shocks. 3) Foreign shocks and global supply chain bottlenecks played an outsized role relative to domestic aggregate demand shocks in explaining Euro Area inflation over 2020-21. 4) International trade did not respond to changes in GDP as strongly as it did during the 2008-09 crisis despite strong demand for goods. These lower trade elasticities in part reflect supply chain bottlenecks. These four results imply that policies aimed at stimulating aggregate demand would not have produced as high an inflation as the one observed in the data without the negative sectoral supply shocks.
Topic:
Economy, Inflation, COVID-19, and Supply Chains
Political Geography:
Europe and United States of America

17. The effect of COVID certificates on vaccine uptake, public health, and the economy

Author:
Philippe Aghion, Guntram Wolff, Philippe Martin, Lionel Guetta-Jeanrenaud, Bary Pradelski, Miquel Oliu-Barton, Nicolas Woloszko, Patrick Artus, and Arnaud Fontanet
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
In the COVID-19 pandemic, governments have, among other measures, mandated the use of COVID certificates to prove vaccination, recovery or a recent negative test, and have required individuals to show certificates to access shops, restaurants, and education or workplaces. While arguments for and against COVID certificates have focused on reducing transmission and ethical concerns, the incentive effects of COVID certificates on vaccine uptake, health outcomes and the economy has not yet been investigated. To estimate these effects, we construct counterfactuals based on innovation diffusion theory for France, Germany and Italy. We estimate that the announcement of COVID certificates during summer 2021 led to increased vaccine uptake in France of 13.0 (95% CI 9.7–14.9) percentage points (p.p.) of the total population up to the end of the year, in Germany 6.2 (2.6–6.9) p.p., and in Italy 9.7 (5.4–12.3) p.p. Further, this averted an additional 3,979 (3,453–4,298) deaths in France, 1,133 (-312–1,358) in Germany, and 1,331 (502–1,794) in Italy; and prevented gross domestic product (GDP) losses of €6.0 (5.9–6.1) billion in France, €1.4 (1.3–1.5) billion in Germany, and €2.1 (2.0–2.2) billion in Italy. Notably, the application of COVID certificates substantially reduced the pressure on intensive care units (ICUs) and, in France, prevented occupancy levels being exceeded where prior lockdowns were instated. Varying government communication efforts and restrictions associated with COVID certificates may explain country differences, such as the smaller effect in Germany. Overall, our findings are more sizeable than predicted. This analysis may help inform decisions about when and how to employ COVID certificates to increase vaccine uptake and thus avoid stringent interventions, such as closures, curfews, and lockdowns, with major social and economic consequences.
Topic:
Government, Economy, Public Health, Vaccine, and COVID-19
Political Geography:
Europe

18. The COVID-19 Curtain: Can Past Communist Regimes Explain the Vaccination Divide in Europe

Author:
Inés Berniell, Yarine Fawaz, Anne Laferrere, Pedro Mira, and Elizaveta Pronkina
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:
As of November 2021, all former Communist countries from Central and Eastern Europe exhibit lower vaccination rates than Western European countries. Can institutional inheritance explain, at least in part, this heterogeneity in vaccination decisions across Europe? To study this question we exploit novel data from the second wave of the SHARE (Survey of Health, Ageing, and Retirement in Europe) Covid-19 Survey fielded in Summer 2021 that covers 27 European countries and Israel. First, we document lower Covid-19 vaccine take-up amongst individuals above 55 years old who were born under Communism in Europe. Next, we turn to reunified Germany to get closer to a causal effect of exposure to Iron curtain regimes. We find that exposure to the Communist regime in East Germany decreases one’s probability to get vaccinated against Covid-19 by 8 percentage points, increases that of not wanting the vaccine by 4 percentage points. Both effects are quite large and statistically significant, and they hold when controlling for individual socio-economic and demographic characteristics. We identify low social capital -measured as voluntary work, political engagement, trust in people- as a plausible channel through which past Communist regimes would still affect individuals’ preferences for Covid-19 vaccination.
Topic:
Communism, Public Health, Vaccine, and COVID-19
Political Geography:
Europe and Post-Soviet Europe

19. Not for patching? Public opinion and the commitment to ‘build back better’

Author:
Karl Pike, Farah Hussain, Philip Cowley, and Patrick Diamond
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Mile End Institute, Queen Mary University of London
Abstract:
Announcing the launch of a ‘Build Back Better Council’ in January 2021, bringing together various business leaders, the Prime Minister Boris Johnson said that ‘as we recover from this crisis it won’t be enough to just go back to normal – our promise will be to build back better and level up opportunity for people and businesses across the UK’. 1 The following month, the Leader of the Opposition, Keir Starmer, said he believed ‘there’s a mood in the air which we don’t detect often in Britain. It was there in 1945, after the sacrifice of war, and it’s there again now. It’s the determination that our collective sacrifice must lead to a better future’. 2 The historian and peer – and the Mile End Institute’s patron – Lord Hennessy similarly argued recently that the Covid-19 experience ‘has sharpened our sense of the duty of care we have one for another, that a state has for all of its people, to a degree we have not felt collectively since World War Two and its aftermath’. 3 These appraisals of the impact of the crisis, and political commitments to change, are giving rise to debate. Are we to experience a moment similar to that of postwar transformation? If so, what is the prospect for the Britain that emerges from the Covid-19 pandemic to be significantly different, in policy terms, from what preceded it? The latter question in particular animates this project – Not for Patching?, of which this report marks our earliest findings, based on an opinion survey. Ipsos MORI surveyed 1,120 adults across Great Britain, posing questions across a range of policy areas. Fieldwork was carried out online from 19 March 2021 to 22 March 2021, and data weighted to match the profile of the population. All polls are subject to a wide range of potential sources of error, but they still give us an insight into the public’s priorities. Further analysis of this data, and further surveys, will continue to add to this project. The purpose of this report is to examine the views of the British public on what rebuilding after the pandemic might mean. What we offer here are some preliminary indications of what policy areas the public want to prioritise, and how the machinery of government has managed and performed during this crisis. We are interested in both priorities and performance here, not least because we consider them linked.
Topic:
Infrastructure, Governance, Pandemic, and COVID-19
Political Geography:
United Kingdom and Europe

20. German Economy Winter 2021: Recovery temporarily on hold

Author:
Martin Ademmer, Dominik Groll, Nils Jannsen, Saskia Meuchelbock, Jens Boysen-Hogrefe, Nils Sonnenberg, and Stefan Kooths
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
The recovery of the German economy is interrupted once again. In the winter, the new Covid-19 wave will particularly hit activity in contact-intensive service sectors as in previous waves. As a result, there will be a setback in private consumer spending and probably also small declines in GDP. To the extent that the burdens of the pandemic ease in the spring, a strong recovery will set in, similar to the pattern observed this year. Economic momentum will likely be particularly high as the supply bottlenecks, which are massively dampening industrial production in this year, are expected to ease. Overall, the renewed slowdown in the recovery process caused by the pandemic will probably be larger than we had expected in our autumn economic outlook. However, the setback will be not as severe as last winter. In 2022, GDP will probably increase by 4 percent and thus less strongly than we had expected three months ago (5.1 percent). For 2023, we revise GDP growth upwards to 3.3 percent (autumn outlook: 2.3 percent). This year, GDP will increase by 2.6 percent. Inflation will remain high for the time being, also because supply bottlenecks continue to increase manufacturing costs and tighten the supply of consumer goods. At the same time, private households have accumulated additional savings of around 200 billion euros since the beginning of the pandemic and therefore have a rather high willingness to pay. Consumer price inflation will probably be around 3 percent both this and next year, before easing again in 2023. The public budget deficit will fall noticeably from 3.8 percent in relation to GDP in 2021 to 1.8 percent in 2022 due to the reduced burden of the pandemic. However, the budgets are still expected to close with a deficit of 1.4 percent in 2023.
Topic:
Economics, GDP, Pandemic, and COVID-19
Political Geography:
Europe and Germany

21. The Mediterranean Region: A Hotspot of Inequalities in the Aftermath of COVID-19

Author:
Farah Al Shami
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Arab Reform Initiative (ARI)
Abstract:
The COVID-19 pandemic, which broke out in China in late 2019, reached the Mediterranean region by late winter 2020. While the impact of this crisis has been notorious on a global scale, it was remarkably more pronounced in the Mediterranean region as a result of economic fragility, exposure and transmissibility, and more importantly the quality of state and non-state responses which had a multidimensional multiplier effect on wealth distribution, access to health and education as well as other essential services, regional disparities and gender inequality, among others. Ever since its outbreak, COVID-19 has significantly exacerbated existing inequalities and has created new ones. It has also exacerbated vulnerabilities and created new forms of vulnerability, thus increasing the gaps on various levels between different social groups. These consequences were also more concentrated in the Mediterranean region as compared to the rest of the world, as the region had already been witnessing rising trends of inequality in the last decade, and especially before the pandemic hit, due to political instability, economic decay and inefficient public policies. While this reality has been experienced by both the northern and southern sides of the Mediterranean, it has been more intense in the latter. However, this is not to deny that constantly increasing inequalities in recent history has made both poles of the Basin much more susceptible to an enigmatic and acute shock such as COVID-19. The impact of COVID-19 on multifaceted inequality in the Mediterranean is neither consistent nor linear. The region has witnessed declines in several forms of inequality and surges in several others. Yet, the overall impact in terms of the number and magnitude of increased inequalities versus reduced ones is negative, making the Mediterranean a hotspot of inequality in the aftermath of the sanitary crisis. Moreover, amplified inequalities have manifested in the Mediterranean Basin in the form of inter-country inequalities and intra-country inequalities – the former being mostly part driven by inter-sectoral imbalances. Inter-country inequalities have likely further cemented the north-south divide in the Basin. This paper examines the different forms and faces of inequality in the region by trying to conceptualize the situations of different countries, despite their dissimilar and divergent contexts. It proves that COVID-19 has massively increased multidimensional inequality through various channels and at a relatively higher rate with respect to other regions. The paper also demonstrates that the Mediterranean is the microcosm of the north-south cleavage, as it is the closest place where the South meets the North, which makes it a natural starting point for dialogue concerning the north-south dichotomy and inequalities. As such, this paper highlights the need for tangible cooperation across borders, between sectors, and among citizens and their representatives, both within the region – between the North and the South – and with other regions, to advance reforms that address the factors of inequity and inequality in an already fragile and shaky regional context.
Topic:
Inequality, Public Health, Pandemic, COVID-19, and Health Crisis
Political Geography:
Africa, Europe, Middle East, and Mediterranean

22. Implications of the COVID-19 Pandemic for Africa–EU Partnership on Migration and Mobility: A Developmental Perspective from West Africa

Author:
Aderanti Adepoju
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The far-ranging effects of COVID-19, and subsequent impacts on migration drivers, trends and governance, have already produced significant implications for the Africa–EU partnership on migration and mobility. The socio-economic consequences of the pandemic have been particularly deep in West Africa, with Nigeria being one of the most affected countries. The region is also one of the most relevant African contexts in terms of cross-border human mobility, with well-established migratory patterns both at a regional and inter-regional level. As COVID-19-induced restrictions and the related economic consequences continue to unfold, the partnership between the EU and the countries in Western Africa will have to recalibrate the balance between improving the livelihoods of local populations, fighting irregular migration and facilitating regular channels, so as to tap into the developmental potential of migration. While the current crisis presents new challenges for both Africa and Europe, the two parties would benefit from focusing their efforts on making migration part of the post-pandemic economic recovery and longer-term socioeconomic development. Paper prepared in the framework of the project “A New European Consensus on Asylum & Migration”.
Topic:
Migration, European Union, Refugees, Coronavirus, and COVID-19
Political Geography:
Africa, Europe, and Nigeria

23. The EU One Year after the Covid-19 Outbreak: An Italian-German Perspective

Author:
Nicoletta Pirozzi, Luca Argenta, and Paweł Tokarski
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The spreading of the Covid-19 pandemic and its economic and social consequences have radically changed the reality of the 27 EU member states. After scattered reactions at the beginning of the crisis, the EU has taken an unprecedented step towards cohesion and solidarity with the Next Generation EU. However, in order to ensure recovery and resilience, the EU will need to act simultaneously on three levels: end the pandemic in the shortest time possible through mass vaccination, implement structural reforms and address the challenges of tomorrow, including also digitalisation and the fight against climate change. To realise these objectives, citizens’ engagement and mobilisation would be essential, thus giving new urgency to the Conference on the Future of Europe, which should be turned from a consultation process into a tool for the relaunch of the Union post-Covid. Paper published as a follow-up to the 2020 edition of the German-Italian Strategic Forum on Europe, jointly organised by IAI, FES and SWP on 27 November 2020.
Topic:
Politics, Public Opinion, European Union, Economy, Institutions, and COVID-19
Political Geography:
Europe, Germany, and Italy

24. Implications of COVID-19 on East Africa–EU Partnership on Migration and Forced Displacement

Author:
Tsio Tadesse Abebe and Ottilia Anna Maunganidze
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
he COVID-19 pandemic has significantly impacted the current state and prospects of partnership between the East African countries and the European Union on migration and forced displacement. The pandemic has exacerbated the root causes of migration and forced displacement. This is manifested by the continuation of irregular arrivals in Europe including from East Africa, after a brief decline in the initial phase of the COVID-19 response. The strong economic impact of the pandemic on the region has also disrupted the implementation of the Global Compact on Refugees that aspires to address forced displacement challenges through facilitating refugees’ self-reliance. These challenges require East African countries and the EU to work towards establishing a better migration governance system with a people-centred approach and with a view to addressing the root causes of migration. East African states should drive their migration and forced displacement policies in ways that benefit their citizens. This should include devising ways of engaging the EU in line with its proposed talent partnerships in its New Pact on Migration and Asylum. The EU should work towards easing the economic burden of countries in East Africa including through providing additional development support and debt cancellation. Paper prepared in the framework of the project “A New European Consensus on Asylum & Migration”.
Topic:
Migration, Politics, European Union, Refugees, Institutions, and COVID-19
Political Geography:
Africa and Europe

25. COVID-19 credit support programs in Europe’s five largest economies

Author:
Julia Anderson, Francesco Papadia, and Nicolas Véron
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
n 2020, European governments mitigated the economic impact of COVID-19 lockdowns and other pandemic-fighting programs through a host of initiatives, including efforts to support credit, such as guarantees for bank loans, particularly to small and medium-sized enterprises. This paper presents detailed information about these national credit support programs in the largest national economies of the European Union (France, Germany, Italy, and Spain) and the United Kingdom. The information was collected through thorough examination of published material and extended exchanges with national authorities and financial sector participants. The analysis focuses on (1) how countries positioned themselves on the many tradeoffs that emerged in designing and implementing the programs; and (2) what explains differences in usage across countries and its leveling off everywhere in the second half of 2020.
Topic:
Government, European Union, Finance, Fiscal Policy, and COVID-19
Political Geography:
United Kingdom and Europe

26. The unequal inequality impact of the COVID-19 pandemic

Author:
Zsolt Darvas
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
GDP contractions are typically associated with within-country income inequality increases. While official income inequality data for 2020 will not be available for about two years, the already available employment data for 2020 shows that the difference between highly-educated and low-educated people in terms of job losses is correlated with the economic shock from the COVID-19 pandemic, suggesting that the depth of the economic recession is related to the increase in within-country income inequality in 2020. Scenarios based on historical patterns of recessions and within-country income inequality increases suggest relatively small increases in global income inequality in 2020. Factors mitigating global inequality increases in 2020 include larger GDP per-capita declines in richer advanced countries than in poorer emerging and developing countries, and the positive GDP growth of China, which suggests that within-country inequality in the world’s most populous country might have not changed much in 2020. In contrast, it is quite likely there was a significant increase in European Union income inequality in 2020, partly reversing the decline during the previous decades.
Topic:
Poverty, European Union, Employment, Inequality, and COVID-19
Political Geography:
Europe

27. Resilience in the age of crises

Author:
Mathilde Tomine Eriskdatter Giske
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This research paper examines the concept 'resilience' as a response to the constantly changing environments and turbulence of the world. While resilience is used by several international organisations and nation states, there is still a lack of consensus regarding what the concept really means – it denotes both resisting change and being willing to adapt at the same time. This paper offers some clarity and argues that a temporal dimension is needed when applying the concept of resilience.
Topic:
Security, NATO, International Organization, European Union, Pandemic, Resilience, and COVID-19
Political Geography:
Europe

28. Productivity and the Pandemic: ShortTerm Disruptions and Long-Term Implications

Author:
Klaas de Vries, Abdul Erumban, and Bart van Ark
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
The Conference Board
Abstract:
This paper analyses quarterly estimates of productivity growth at industry level for three advanced economies, France, the United Kingdom, and the United States, for 2020. We use detailed industry-level data to distinguish reallocations of working hours between industries from pure within-industry productivity gains or losses. We find that all three countries showed positive growth rates of aggregate output per hour in 2020 over 2019. However, after removing the effects from the reallocation of hours between low and high productivity industries, only the US still performed positively in terms of withinindustry productivity growth. In contrast, the two European economies showed negative within-industry productivity growth rates in 2020. While above-average digital-intensive industries outperformed belowaverage ones in both France and the UK, the US showed higher productivity growth in both groups compared to the European countries. Industries with medium-intensive levels of shares of employees working from home prior to the pandemic made larger productivity gains in 2020 than industries with the highest pre-pandemic work-from-home shares. The paper also experiments with US data on employment at county level by allocating within-industry productivity contributions for 2020 to urban, sub-urban and rural areas, showing that the contributions to within-industry productivity growth from manufacturing and other production industries in urban and sub-urban areas increased during the pandemic. Overall, after taking into account the productivity collapse in the hospitality and culture sector during 2020, productivity growth shows no clear deviation from the slowing pre-pandemic productivity trend. Future trends in productivity growth will depend on whether the favourable productivity gains (or smaller losses) in industries with above-average digital intensity will outweigh negative effects from the pandemic, in particular scarring effects on labour markets and business dynamics.
Topic:
Labor Issues, Work Culture, Pandemic, COVID-19, Productivity, and Digitalization
Political Geography:
United Kingdom, Europe, France, and United States of America

29. EU–Africa Partnership on Migration and Mobility in Light of COVID-19: Perspectives from North Africa

Author:
Mehdi Lahlou
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The coronavirus pandemic has turned into a global economic crisis with severe social effects in the least developed countries, particularly in Africa. Pre-existing challenges related to widespread poverty, demographic growth, food insecurity and governance issues have been exacerbated by the pandemic. While migration remains one of the key elements of the partnership agenda between Africa and the European Union, the aggravating socioeconomic situation in the African continent due to the impact of COVID-19 and its implications for migration dynamics requires going beyond business-as-usual approaches. The renewed scenario calls for a more comprehensive and development-oriented approach to migration, requiring new policy initiatives addressing the wider set of conditions that, beyond constituting developmental challenges in their own right, also drive migration in North Africa as well as in Sub-Saharan African countries.
Topic:
Economics, Migration, European Union, Mobility, Asylum, and COVID-19
Political Geography:
Africa, Europe, and North Africa

30. The pandemic has overturned our old understandings of security

Author:
Trine Villumsen Berling, Ulrik Pram Gad, Karen Lund Petersen, and Ole Waever
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
On 11 March 2020, the Danish prime minister, Mette Frederiksen, addressed the nation in a press conference broadcast live from the ’Hall of Mirrors’ in the Prime Minister’s Office. The setting was grandiose, the tone was serious, the future gloomy. The coronavirus pandemic was here, and it was threatening Danish citizens, the healthcare system and the welfare state. Frederiksen announced an immediate two-week lockdown of Denmark. Now was the time to show ‘community spirit.’ Every citizen was called upon to work collectively to protect vulnerable individuals, societal cohesion and the survival of the Danish state. Gone were the threats of climate change, which dominated the general election less than a year earlier. If border control was relevant, the reason was no longer the migrants and refugees whose ‘influx’ and ‘failure to integrate’ had fundamentally re-configured the Danish party system over the last decades. Some would argue that this was a classic act of securitization requiring the concentration of all attention and resources on emergency measures to fight off an existential threat. However, what happened was much more complicated. What we saw was a complex web of translations of this security message into the daily practices of government agencies, private companies and citizens.
Topic:
Security, Governance, Crisis Management, and COVID-19
Political Geography:
Europe, Denmark, and Sweden

31. The Rise of the Team Europe Approach in EU Development Cooperation: Assessing a Moving Target

Author:
Niels Keijzer, Aline Burni, Benedikt Erforth, and Ina Friesen
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
This paper analyses the European Union’s (EU) evolving motivations, priorities and current approaches to development cooperation under the label of “Team Europe”, following its introduction in April 2020 as the European Union’s global response to the COVID-19 pandemic. It assesses what Team Europe is, to what extent and how the Team Europe approach has changed the EU’s development cooperation, which effects it has on EU initiatives to support partner countries, and discusses the implications of Team Europe on the EU’s development policy in the medium and long term. The paper analyses the Team Europe approach along four dimensions, which are traditionally emphasised in the EU’s development policy: (i) visibility, (ii) effectiveness, (iii) ownership and (iv) integration. It concludes that Team Europe primarily seeks to increase the visibility of EU’s actions in support of partner countries and prioritises European ownership of cooperation priorities over developing country ownership. Although ‘effectiveness’ efforts focus on improving efficacy of the intra-EU-MS coordinated processes, it remains unclear whether Team Europe promotes more programmatic collective action among member states.
Topic:
Development, European Union, COVID-19, and Cooperation
Political Geography:
Europe

32. EU Development Policy as a Crisis-Response Tool? Prospects and Challenges for Linking the EU’s COVID-19 Response to the Green Transition

Author:
Svea Koch, Ina Friesen, and Niels Keijzer
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
This paper assesses the preferences of EU institutions and member states for the Union’s development policy response to the COVID-19 pandemic. Addressing both the effects of climate change and biodiversity loss and the exacerbating socio-economic inequalities requires a response that links the short-term recovery of the pandemic with longer-term socio-ecological transformations. Our findings show that the EU and its member states have mainly responded to that challenge through Team Europe and Team Europe Initiatives. While these have contributed to defining a joint European response to the pandemic, the strong focus on climate and green transitions and the lack of connections to the broader SDG agenda as well as social and human development have created tensions between some member states and the EU. A key challenge ahead in further defining the European response to the pandemic is finding new strategic directions and operational means for bridging these differing priorities.
Topic:
Climate Change, European Union, Sustainable Development Goals, and COVID-19
Political Geography:
Europe

33. Post-Covid-19 EU-Southern Neighbourhood Trade Relations

Author:
Katarzyna Sidlo, Esmat Mostafa Kamel, Hussein Suleiman, and Guillaume Van der Loo
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
IEMed/EuroMeSCo
Abstract:
The European Union (EU) is a key trade partner, both in terms of goods and services, for the countries in its Southern Neighbourhood (SN): Morocco, Algeria, Tunisia, Egypt, Israel, Palestine,[1] Jordan and Lebanon.[2] The economic (and otherwise) relationship between the two partners is governed by the Euro-Mediterranean Association Agreements (EMAAs), which came into force from the early to mid-2000s. The ongoing COVID-19 pandemic has, however, affected the trade exchange between the two, just as it has an adverse impact on trade globally. As pointed out in the second chapter of this policy study, one of the sectors of great importance to both the EU and the SN is agri-foods. Despite a general drop in merchandise trade, the agri-food exports from the EU actually increased globally by 0.5% during the first 10 months of the pandemic compared to the same period the year before, up to €151.8 billion. In the case of the SN, exports of agri-foods during the first three quarters of 2020 (year-on-year) grew particularly strongly in the case of Morocco (27.2%) and Algeria (20.3%) and decreased most visibly in the case of Lebanon (-37.9%). As for exports from the EU to the SN, during the same period a particularly impressive growth was witnessed in the case of Tunisia (40.3%) but the value of agri-food imports of Morocco also went up (8.4%). Trade in services, as analysed in chapter three, was hit more severely than trade in goods and declined significantly in all countries in the region during the first months of the pandemic. For Morocco, for instance, during the first three quarters of 2020 it plummeted by almost 60% (year-on-year). Because of lockdowns and travel bans, the tourism sector was among the hardest hit, even though the countries in the SN are mostly visited by travellers from nearby markets: the SN region or Europe – in 2019 the latter constituted between 29.4% (Tunisia) and 68.2% (Morocco) of all arrivals (after excluding nationals of SN countries who live abroad). As a result, tourism revenues plummeted (in Palestine, for instance, by an estimated 68%) and a significant number of people were made redundant; before the pandemic, between just under 6% (Algeria and Israel) and nearly 20% (Lebanon) of all (formally employed) workers were employed in the travel and tourism sector. The disturbances outlined above have adversely impacted food security in the region, as initial data presented in chapter four suggests. While isolating the impact of the COVID-19 pandemic on food security is difficult, as many other factors – such as bad harvest due to weather conditions in Morocco – were in play in 2020, the pandemic clearly affected both supply of and demand for foodstuffs. Some countries were more affected than others, as has already been mentioned above in the case of agri-food trade with the EU. At the same time, the impact on food security within the countries was also far from homogenous, with refugees (e.g., due to loss of work in informal sector) and poorer households – spending a bigger share of domestic budget on increasingly more expensive food products – more often forced to adopt emergency livelihood coping strategies, such as limitation of daily calory intake. Looking towards the post-COVID-19 trade relations, as outlined in chapter one of this study, the EU’s post-pandemic recovery plans and trade strategy review offer a new momentum for the SN countries to strengthen and modernise their framework for trade relations with the EU, to capitalise on potential re-shoring and near-shoring trends in EU and global value chains, and to promote (intra-) regional economic integration. However, the envisaged Deep and Comprehensive Free Trade Areas (DCFTAs) currently under negotiation with Tunisia and Morocco may not be the most realistic option at this stage. A more gradual approach based on sectoral agreements could be adopted in the short- to medium-term instead, leading to a DCFTA-like model of trade integration. Moreover, in order to strengthen the (intra-)regional economic and value chain integration, modernisation of the Pan-Euro-Mediterranean Convention should remain a priority. Finally, the modernisation of EU-SN trade relations should be linked and integrated into the broader (and longer-term) plans for EU-Africa trade relations, with an eye on the “continent-to-continent Free Trade Area” in the long run. Internally, governments in the SN should prioritise development of high productivity service sectors and work towards curbing their reliance on tourism and transportation. In order to achieve that goal, improving the quality of their institutions is as important as upgrading telecommunications infrastructure or adopting incentives such as tax breaks. More broadly, speeding up digital transformation would both facilitate servicification and reduce costs associated with merchandise trade.
Topic:
International Trade and Finance, Regional Cooperation, European Union, Pandemic, and COVID-19
Political Geography:
Europe and Mediterranean

34. COVID-19 financial aid and productivity: has support been well spent?

Author:
Carlo Altomonte, Lionel Fontagné, Maria Demertzis, and Steffen Müller
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
Most European Union countries have made good progress with vaccinating their populations against COVID-19 and are now seeing a rebound in economic activity. While the scarring effects of the crisis and the long-term implications of the pandemic are only partially understood, the effects of support given to firms can be evaluated in order to help plan the removal of crisis support. European regions and countries that depend heavily on services requiring physical proximity have been hit hardest by COVID-19-related measures. But these services sectors tend also to be the smallest and least-productive in any economy, implying that, coming into the crisis, the highest shares of zombie firms were in these sectors. Reliance on physical proximity and the higher incidence of zombies to start with have combined to make those services-dependent economies particularly vulnerable to any attempt to remove the support put in place during the pandemic. The evidence shows that the main goal of the provision of support during the COVID-19 crisis, namely to protect employment, has been achieved. However, the evidence is varied on how efficiently this was done, in terms of helping firms that have a good chance of surviving, while not supporting those that will in any case exit. An analysis of France, Germany and Italy shows the potential for ‘cleansing effects’ in that it was the least-productive firms that have been affected most by the crisis. While support was generally not targeted at protecting good firms only, financial support went by and large to those with the capacity to survive and succeed. Labour schemes have been effective in protecting employment.
Topic:
European Union, COVID-19, and Financial Aid
Political Geography:
Europe, France, Germany, and Italy

35. Protecting employment in 2021 and beyond: what can the new SURE instrument do?

Author:
Christina Kattami
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
Protecting employment was not just a 2020 issue – while 2021 will be racing for vaccinations, and the immediate and complete relaxation of the containment measures will remain unlikely, the need to protect incomes and jobs will be as relevant as ever. As such, this policy brief analyses the rationale for, and the integration qualities of, the SURE instrument, which is being implemented following a European Commission proposal in April 2020 and a Council decision on 19 May 2020. By establishing the importance of short-time work schemes in protecting employment during the crucial first months of the pandemic, the brief explains the solidarity function of the SURE instrument, which ensures that all Member States have the resources available to make use of similar schemes to protect jobs, workers and incomes. Additionally, the decision to fund the SURE instrument with social bonds, which have been met with consistently overwhelming investor demand, forms an initial treasury form of what can be regarded as a European safe asset; something which will be strengthened in size and scope by the incoming European bonds funding the Recovery Instrument, Next Generation EU. Moving beyond 2021 and looking into a future model of employment protection in the future of the European labour market, the brief outlines the legal and political feasibility of transforming SURE into a permanent employment scheme, and, as such, an instrument of integration and socioeconomic resilience in the European Union.
Topic:
European Union, Employment, COVID-19, and Labor Market
Political Geography:
Europe

36. Public Administration in the era of Covid-19: Policy Responses and Reforms underway

Author:
Manto Lampropoulou
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
Covid-19 has caused an unprecedented shock to the state apparatus and has triggered major reforms in the administrative system of Greece. Policy responses to the pandemic have brought about several positive changes towards the modernization and de-bureaucratization of public administration. However, the pace and scale of change vary significantly. The pandemic has acted as a strong driver for the digital transformation of the public sector and the strengthening of e-government policies. Numerous administrative procedures were streamlined, digitalized and simplified, working conditions have become more flexible and several improvements have taken place in service delivery and state-citizen relations. The observed centralisation of decision-making and the often use of fast-track procedures have raised questions of democratic control, transparency and the rule of law, while the emergency measureshave been criticized for the threats they pose for the protection of citizens’ rights, individual liberties and personal data. A key challenge remains the integration the emergency measures of the covid-19 policy agenda into a longer-term programme of administrative reform in the post-covid era.
Topic:
Reform, Democracy, Rule of Law, Public Policy, Transparency, COVID-19, and Digital Policy
Political Geography:
Europe and Greece

37. An Abrupt Awaking to the Realities of a Pandemic: Learning Lessons From The Onset of COVID-19 in the EU and Finland

Author:
Mika Aaltola, Johanna Ketola, Aada Peltonen, and Karoliina Vaakanainen
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
Although their timing and nature is unexpected and disrupts normality, pandemics are not black swans, but rather an expected feature of a feverishly con- nected and globalizing world. Since the end of the Cold War, there have been several serious cases of and close calls with pandemics, including SARS in 2003, H1N1 infuenza (“swine fu”) in 2009 and Ebola in 2014. By now, we know the usual features of pandemics, how they emerge and the shape of their temporal context: rapid onset leading to a politically compelling impact followed by decreasing attention and lessening restric- tive policies resulting, in some cases, in the return of the disease. Te most serious pandemics, like the 1918 infuenza pandemic (“Spanish fu”), come in waves. Te less restrictive policies are followed by subsequent waves, partially propelled by diminishing attention and wishful policies until a cure or vaccination is found, or immunity achieved. Despite the growing awareness, pandemic diseases nevertheless often catch us of guard and bring about human misery. Te latest form of Severe Acute Res- piratory Syndrome caused by a novel coronavirus, Covid-19, which spread like wildfre around the globe in 2020, came as a surprise even though the point of origin and secrecy surrounding its emergence were similar to that of its predecessor, SARS, in 2003. In other words, pandemics continue to include “un- known” aspects, which have to do with their specifc characteristics, perhaps most notably their timing, but also other features such as infection and fatality rates, patterns of spread, and the outbreak location zone(s). Our starting point in this Working Paper is that se- rious contagious diseases are political as their cascad- ing and nonlinear efects impact people’s livelihoods and disrupt normality. Tis applies to the most recent coronavirus pandemic, as highlighted in this paper. Te key research question concerns how the European Union (EU) and its member states, illustrated through the case of Finland, became aware of the prevailing health crisis, and the kind of political ramifications that the response had, and could have had. Te focus of this paper is on the frst two and a half months of the coronavirus pandemic, from January to mid-March 2020, by which time the pandemic had replaced the prevailing agendas in the EU and in its member states and saturated the public debate, reach- ing a tipping point. Te onset entails a build-up to a clear situational policy necessity, a sentiment that drastic, exceptional actions need to be taken to con- tain or at least to slow down the pandemic outbreak, as well as a remorseful debate and fnger-pointing at actions that should have been taken sooner. Te paper studies this build-up phase while recognizing that the next phase of political reaction to a pandemic tends to include the sentiment that enough has been done or even that the actions that were taken earlier were somewhat excessive and overblown.1 Tis phase may be followed by – and is an important constituent of – yet another phase, the second wave of the pandemic. The timeframe for the Working Paper extends to mid-March 2020 when Covid-19 became the prevail- ing topic of public concern in Europe. We refer to this prevalence as the tipping point. Te term tipping point is used to identify the critical juncture, both nation- ally as well as in the EU, when sudden changes to be- haviour took place at the public and political levels. At such moments, public attention becomes heightened, single-issue focused, and rushed. Te pressure for po- litical action becomes paramount. Te mobilization of resources as well as the introduction of diferent states of emergency suddenly seem possible. Te emergent, situational requirements become the context for pol- icymaking, instead of the requirements of the then prevailing normality; namely, exceptional political acts can prevail when urgency seems to necessitate them. Te situated characteristics of a pandemic include a heightened sense of exceptionality, particularly if there is a sense that prior preparations at national, regional, and global levels were inadequate and the contingency planning insufcient. Any delays and hesitations are easily seen as weaknesses although, in normal times, they are often the keys to stable and rational political deliberation. Tis was the scenario that actualized with Covid-19, as the preparedness planning for pandem- ic security was largely perceived as defcient and the global as well as the European regional coordination in short supply.
Topic:
Security, Regional Cooperation, European Union, Public Health, Pandemic, and COVID-19
Political Geography:
Europe and Finland

38. Germany’s EU Council presidency: Navigating the post-Covid political landscape

Author:
Tuomas Iso-Markku and Niklas Helwig
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
In view of the pervasiveness of the Covid-19 crisis, Germany has rightly announced that its presidency of the Council of the EU in the second half of 2020 will be a ‘Corona presidency’. However, it will also have to address other immediate issues as well as further longer-term priorities of the EU. The initial phase of the pandemic was characterised by largely uncoordinated member state action. The issues and instruments now on the table, particularly concerning economic recovery, are closer to the core of the EU’s authority, underlining the importance of a successful presidency. Somewhat surprisingly, the Covid crisis has moulded European politics in a way that may facilitate the work of the German presidency. The positions of the member states appear less fixed, whereas the German government itself has more domestic leeway than before the crisis. The political situation in the EU and in Germany remains highly volatile and the presidency’s success depends on factors that are partly out of Berlin’s control: the development of the pandemic, the depth of the economic slump and the public perception of the EU’s and Germany’s crisis management measures.
Topic:
Regional Cooperation, European Union, Public Health, Pandemic, and COVID-19
Political Geography:
Europe and Germany

39. Turkey and the post-pandemic world: What kind of revisionism?

Author:
Toni Alaranta
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
This study analyzes Turkish foreign policy narratives generated by the Covid-19 pandemic, and their intellectual and political context provided by Western debates. The approach is based on the assumption that the narratives about the pandemic provide an interesting window through which to observe the long-term fears and hopes concerning international politics in Turkey. The study utilizes Steven Ward’s conceptualization of distributive and normative revisionism as a theoretical framework for analyzing Turkey’s increasingly assertive foreign policy. It also discusses the analytical limits of this concept by introducing the idea of revisionism as a familiar narrative trope in Western International Relations scholarship. The study demonstrates that while Turkey remains loosely attached to its traditional commitment to defend the existing order, it increasingly expresses its dissatisfaction within that order, sometimes pushing it to the limits, and taking action that could even be defined as normative, or radical, revisionism.
Topic:
Foreign Policy, Public Health, Pandemic, COVID-19, and Revisionism
Political Geography:
Europe, Turkey, and Asia

40. Beyond Corona: Getting EU Economic Security Right

Author:
Tobias Gehrke
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
The corona crisis, the US-China great power competition and lacklustre international rules vividly demonstrate the vulnerability of economic interdependence. Interdependence is a power struggle, not a mutual aid society. For the vast benefits of a globalised economy to continue to outweigh its risks, policies to build greater resilience are necessary. For the EU, the unprecedented events also offer an opportunity to forge a new economic security approach to better manage its dependencies in strategic sectors.
Topic:
Security, International Cooperation, Europe, Public Health, Pandemic, and COVID-19
Political Geography:
United States, China, Europe, Asia, and North America

41. Fear and lying in the EU: Fighting disinformation on migration with alternative narratives

Author:
Alberto-Horst Neidhardt and Paul Butcher
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Rather than trying to counter disinformation stories about migrants directly, communication professionals and policymakers must instead promote alternative narratives that undermine the appeal of messages that incite fear and rage, and reframe the debate on migration entirely. This is the conclusion of a collaborative research project between the Foundation for European Progressive Studies, the European Policy Centre, the Friedrich-Ebert-Stiftung and the Fundación Pablo Iglesias. Its aim was to identify and analyse misleading and hostile narratives on migration in Europe and formulate concrete recommendations on how to tackle them. The authors examined nearly 1,500 news articles from four EU member states (Germany, Italy, Spain and the Czech Republic), published between May 2019 and July 2020. Based on their research, the authors argue that disinformation narratives about migration seek to exploit readers’ fears to polarise public opinion, manufacture discontent, sow divisions and set the political agenda. They tend to adapt and change alongside the public’s main concerns. The COVID-19 pandemic, for example, has led to a growing stream of articles linking migrants to infection risks and accusing them of receiving preferential treatment.
Topic:
Migration, European Union, Refugees, COVID-19, and Disinformation
Political Geography:
Europe

42. EU law in the time of COVID-19

Author:
David Edward, Robert Lane, and Leandro Macano
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
The COVID-19 emergency has caused unprecedented legal challenges to the EU institutions and the member states across a wide spectrum of areas. The measures put in place to coordinate the immediate cross-border response to the outbreak are unlikely to lead to contentious legal problems. However, the Council, and especially the Commission, being also able to react to measures taken by member states, companies or firms, could prove to be potentially more intrusive. This paper deals with the powers governing the EU’s public health response to the COVID-19 outbreak and analyses the legal implications of actions taken by member states, companies and firms to mitigate the economic fallout of the lockdown and restrictions put in place to stop the spread of the virus.
Topic:
Law, European Union, Crisis Management, Institutions, Public Health, and COVID-19
Political Geography:
Europe

43. COVID-19: Lessons from the ‘euro crisis’

Author:
Fabian Zuleeg and Janis Emmanouilidis
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
As the EU – and the world beyond – continues to grapple with the COVID-19 pandemic, Janis A. Emmanouilidis and Fabian Zuleeg look back at a previous time of intense pressure and discord in the Union, the euro crisis, to glean valuable lessons and traps to avoid. They argue that the EU cannot afford to stall the process of unconditional solidarity any further. The legitimacy of the Union is at stake. The 2010-2015 euro crisis already highlighted the implications of a highly interdependent Union; the importance of acting quickly, forcefully and boldly; and the need to roll out decisive joint action and an effective European strategy. Emmanouilidis and Zuleeg apply these lessons to today’s health crisis to remind European, national and regional leaders that we stand together, and fall together. Unconditional solidarity guided by the principle of enlightened self-interest will be the Union’s answer to the crisis. Secondly, the EU should act early and forcefully if they are to get ahead of the curve. The Union should thus jointly set up and finance a common COVID-19 recovery and growth fund, and then implement a coordinated European ‘exit management strategy’. Rather than concentrating on one particular instrument, the EU institutions should assemble a convincing package deal that is explicitly supported by member states. Finally, all EU leaders must recognise that absolutist positions will undermine the search for an effective European strategy to manage and eventually overcome the COVID-19 crisis. Disunity, fragmentation and distrust will result in failure – not only for the crisis but also for the foundation of the Union itself.
Topic:
European Union, COVID-19, and Health Crisis
Political Geography:
Europe

44. COVID-19: A turning point for the EU?

Author:
Herman Van Rompuy
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
President Emeritus of the European Council Herman Van Rompuy weighs up the long-term lessons we should take away from the ongoing corona crisis. He looks at the impact of COVID-19, and the quarantine measures many governments have subsequently taken to stop its spread, on our economy and societies, on the fate of multilateralism, and the fight against inequality and global warming. Honestly assessing the response of the European Union, EPC President Van Rompuy finds a hopeful development in the compromise the Eurogroup was able to find on 9 April but argues that it is just a first step. He also warns of the ghosts of crises past. Old rivalries and national prejudices are rearing their heads again, and not only will it prevent the EU member states from finding a way out of the crisis but it could also be detrimental for the Union in the long run.
Topic:
European Union, Economy, Crisis Management, and COVID-19
Political Geography:
Europe

45. Europe’s path to strategic recovery: Brace, empower and engage

Author:
Giovanni Grevi
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
EU leaders should rise to the challenge posed by the COVID-19 pandemic and set the Union on the course of not only economic, but fully-fledged strategic recovery. This means strengthening Europe’s cohesion and resilience; leveraging Europe’s untapped potential to carry its full weight on the global stage; and engaging in upholding rules-based cooperation. If Europe fails to measure up to the task, the EU will drift towards more political fragmentation and strategic dependence. The health crisis has not only heightened but also highlighted Europe’s vulnerability to global challenges and disorder. The pandemic risks amplifying geopolitical competition, which is undermining multilateral cooperation at a time when sound management of our interdependence is crucial. Under such conditions, the dysfunction of the global order may lead to irretrievable system failure, with dire consequences for all. Europeans should not only craft a decisive response to the pandemic but also use it as a springboard to reinforce the EU and its domestic power base on the global stage. The EU and its member states must prepare to cope with power politics without endorsing its logic. They should become more strategic and, where need be, more autonomous. Discussion on a recovery fund should not be limited to the financial dimension, but instead thought of in terms of ‘grand strategy’. Socioeconomic recovery is the fuel of political cohesion, which in turn is the engine of a stronger Europe in the world. A more powerful Europe is the only vehicle geared to protect EU citizens from the many external challenges and project Europe’s interests on the global stage.
Topic:
European Union, Economy, Recovery, Pandemic, COVID-19, and Health Crisis
Political Geography:
Europe

46. The economic impact of COVID-19 on the EU: From the frying pan into the fire

Author:
Fabian Zuleeg
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
The world is facing an unprecedented economic crisis due to the ongoing COVID-19 pandemic. At a time when the first instinct is to focus on the national level and greater sovereignty and self-reliance, the best strategy to answer the crisis lies in greater cooperation. Fabian Zuleeg analyses the onset of this crisis and provides sound predictions of future economic impacts by applying lessons from previous recessions.
Topic:
Financial Crisis, Economy, and COVID-19
Political Geography:
Europe

47. Countering shrinking spaces: Recommendations to support EU civil society

Author:
Sophie Pornschlegel
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Civil society is a crucial ally in safeguarding and upholding the European Union's (EU) values. And although the EU, and in particular the European Commission, has made a conscious effort to support civil society organisations (CSOs) across Europe, it has not been enough to counter the phenomenon of 'shrinking spaces' effectively. As the COVID-19 crisis is likely to harm civil society across Europe, through the growing restrictions on civil liberties and the subsequent economic recession, the need for better and more comprehensive support has never been more urgent. Within the realm of the Treaties, the EU institutions could take a range of measures to improve its civil society support. It could come up with a more comprehensive strategy outlining its approach towards civil society; provide adequate and flexible financial resources to respond to the needs of CSOs; and improve its dialogue processes, to 'CSO-proof' its legislation but also to benefit from the bridge-building function of civil society, thereby linking the EU's support for civil society to its attempts to improve democratic participation. While the newly presented recovery instrument and the revised proposal for the next Multiannual Financial Framework (MFF) are important steps to provide the necessary help for European societies and economies to recover, civil society support does not seem to be a priority. This is a dangerous omission. The EU must recognise the value of civil society in safeguarding democratic principles and upholding the Union's core principles. If it fails to better support CSOs through this challenging time, the EU will be able to do little else but stand and watch as democratic backsliding intensifies across member states and, in some cases, will eventually tip over into a downward spiral towards authoritarianism.
Topic:
Civil Society, Global Recession, Authoritarianism, European Union, and COVID-19
Political Geography:
Europe

48. COVID-19: NATO in the Age of Pandemics

Author:
Thierry Tardy
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
NATO Defense College
Abstract:
Because of its magnitude, economic dimension, and lethality, the COVID-19 crisis has raised a wide range of questions that pertain to how seismic the crisis is, how much it will shape international politics and in what ways it is going to change the way we live. These are strategic-level questions (with very practical consequences) that only arose to the same degree in the context of the Second World War. The analysis of the impact of the current crisis on international security is not an easy exercise given that a) the crisis is not over and b) it will impact so many interconnected domains over such a long period that the number of unknowns is immense. The way and speed in which COVID-19 has already changed our lives – who would have thought in January 2020 that just three months later all of Europe’s economies would be totally paralyzed with most of their populations at home under lock-down? – are also an invitation to some prudence, or modesty, when it comes to predicting the fallout. On three occasions over the last 20 years, major events on the international scene – 9/11, the Arab Spring, and the current health crisis – have come as strategic surprises to our societies (if not to policy-makers and security experts). Not that global terrorism, political and social unrest in the MENA region or pandemics were absent from strategic foresight exercises, but the way they happened and, even more uncertainly, the type of cascading effects they provoked, were simply beyond any predictive capacity. The topic of the day, and of this Research Paper, is more the cascading effects of the current crisis than its non-prediction. Looking back at 9/11 and the Arab Spring, and at what those events meant for NATO, one can only acknowledge that such implications could hardly have been fully comprehended in the midst of the two events.
Topic:
NATO, Public Health, Pandemic, and COVID-19
Political Geography:
Europe, North Atlantic, and North America

49. Power down to level up: resilient place-shaping for a post-Covid age

Author:
Andrew Walker and Patrick Diamond
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Mile End Institute, Queen Mary University of London
Abstract:
It has become commonplace in 2020 to say that the Covid-19 pandemic has shone a light on severe problems and iniquities in the delivery of local services. But it is true. It is also true returning to pre-Covid “normality” is not an option, nor is it really desirable. Crisis issues in council finances, social care, children’s services, housing, homelessness, high streets and local growth, did not spring up overnight. LGIU and others have been shouting about these things for years and trying to get decision makers to pay proper attention. We understand that this is challenging. There are no easy solutions. Tackling the problems will involve choices and trade-offs. But that is politics. If we don’t take this opportunity to empower communities, so that they can flourish in the future, then when will we? At present, central government is concerned with issues of council structure and is pursuing a strategy of reorganisation that will reflect central government priorities, not those of local communities. This is a distraction from the important, longstanding problems that the government has so far refused to engage with: a finance settlement for local government; the crisis in adult social care and children’s services; and the unanswered problems of English devolution. At its root, this is a longstanding crisis of governance. The UK, remarkably centralised in comparison with similar economies around the world, has a moribund system of governance. Its outdated and inadequate constitutional framework, which wouldn’t be (and isn’t) looked upon as a model worth following elsewhere, is supported by a set of assumptions, ideas and beliefs that dominate in national political discourse. These hold that Whitehall knows best. Ministers hand down decisions that must be delivered across a varied and diverse geography by local authorities, regardless of local circumstances, assets, or democratic support. This is blind to the importance of place and it should be reversed. In this paper we show how local councils have already demonstrated their capacity for effective place-based It has become commonplace in 2020 to say that the Covid-19 pandemic has shone a light on severe problems and iniquities in the delivery of local services. But it is true. It is also true returning to pre-Covid “normality” is not an option, nor is it really desirable. Crisis issues in council finances, social care, children’s services, housing, homelessness, high streets and local growth, did not spring up overnight. LGIU and others have been shouting about these things for years and trying to get decision makers to pay proper attention. We understand that this is challenging. There are no easy solutions. Tackling the problems will involve choices and trade-offs. But that is politics. If we don’t take this opportunity to empower communities, so that they can flourish in the future, then when will we? At present, central government is concerned with issues of council structure and is pursuing a strategy of reorganisation that will reflect central government priorities, not those of local communities. This is a distraction from the important, longstanding problems that the government has so far refused to engage with: a finance settlement for local government; the crisis in adult social care and children’s services; and the unanswered problems of English devolution. At its root, this is a longstanding crisis of governance. The UK, remarkably centralised in comparison with similar economies around the world, has a moribund system of governance. Its outdated and inadequate constitutional framework, which wouldn’t be (and isn’t) looked upon as a model worth following elsewhere, is supported by a set of assumptions, ideas and beliefs that dominate in national political discourse. These hold that Whitehall knows best. Ministers hand down decisions that must be delivered across a varied and diverse geography by local authorities, regardless of local circumstances, assets, or democratic support. This is blind to the importance of place and it should be reversed. In this paper we show how local councils have already demonstrated their capacity for effective place-based leadership, without input from Westminster. This is despite decades of chipping away at their power and institutional resilience by central government., without input from Westminster. This is despite decades of chipping away at their power and institutional resilience by central government.
Topic:
Governance, Local, Public Health, Pandemic, and COVID-19
Political Geography:
United Kingdom and Europe

50. Is the Euro up for Grabs? Evidence from a Survey Experiment

Author:
Lucio Baccaro, Bjorn Bremer, and Erik Neimanns
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo)
Abstract:
The COVID-19 pandemic may lead to a resurgence of the euro crisis. In this context, Italy seems particularly vulnerable: support for the euro is lower than in most other eurozone countries, and a possible exit could have serious consequences for the common currency. Based on a novel survey experiment, this paper shows that the pro-euro coalition is fragile in Italy and preferences are malleable. They are heavily dependent on the perceived costs of continued membership, as a majority of Italians would opt for Italexit rather than accepting a bailout plan requiring the implementation of austerity policies. Individuals who feel they have not benefited from the euro are most likely to support exit when faced with the prospect of austerity. This suggests that, differently from Greece, where voters were determined to remain in the euro at all costs, the pro-euro coalition may crumble if Italy is exposed to harsh conditionality.
Topic:
Public Opinion, Crisis Management, Voting, Survey, COVID-19, and Euro
Political Geography:
Europe and Italy