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1. UK-EU Relations Tracker Q3

Author:
Cleo Davies and Jannike Wachowiak
Publication Date:
10-2024
Content Type:
Special Report
Institution:
UK in a Changing Europe, King's College London
Abstract:
Released quarterly, the UK in a Changing Europe UK-EU Relations Tracker assesses relations between the UK and EU as well as relationships between the UK and EU member states. This edition of the tracker covers developments from July to September 2023. On 1 October, the UK government introduced the green-lane/red-lane system to ease the flow of goods between Great Britain and Northern Ireland as part of the Windsor Framework. In the context of thawing relations post Windsor Framework, the UK and EU have reiterated their commitment to making the most of the Trade and Cooperation Agreement (TCA). The political agreement on the UK’s association to the Horizon and Copernicus programmes was an important milestone. In other areas, the tracker notes that discussions are ongoing. On the future of the relationship, the tracker highlights a growing mismatch between debates on the two sides. Within the UK, the Labour Party have set out plans for building on the TCA in pursuit of a closer trading relationship. The EU, on the other hand, shows little appetite for revisiting the terms of UK-EU trade. Bilaterally, the UK has now signed general statements or declarations with most EU member states. The focus is therefore shifting from formalising relations to maintaining and implementing them. This requires continued engagement, which the tracker indicates can be difficult to sustain at the highest political level.
Topic:
International Relations, International Cooperation, European Union, and Trade
Political Geography:
United Kingdom and Europe

2. A battle against time – and against Putin’s Russia

Author:
Erwan Fouéré
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
With Putin’s war against Ukraine about to enter its third year, the EU’s enlargement policy remains at the top of its foreign policy priorities, with the focus being on both Ukraine and Moldova. This is following the European Council’s decision to open accession negotiations with both countries. But where does this leave the countries of the Western Balkans and their very long journey towards the EU which began over 20 years ago? Will these countries’ hopes for much needed political momentum in their accession prospects be fulfilled during 2024, despite the repeated delays and the EU’s failure to respect its commitments to the region over the past few years? With elections taking place across Europe offering fertile ground for Russia to deploy its arsenal of disinformation tactics, time is not on the EU’s side. To counter Russian attempts to influence developments in the region, as well as to reverse the dangerous trend of backsliding in democratic and rule of law reforms, the EU will need to adopt a more robust, consistent and determined approach towards the Western Balkans. Without any further delay, it needs to set out a much needed geopolitical and security direction for its enlargement policies in the Western Balkans.
Topic:
Security, European Union, Democracy, Geopolitics, Rule of Law, Regional Integration, and Russia-Ukraine War
Political Geography:
Europe, Ukraine, Moldova, and Balkans

3. Understanding EU-NATO Cooperation: How Member States Matter

Author:
Pınar Atakara
Publication Date:
01-2024
Content Type:
Journal Article
Journal:
Uluslararasi Iliskiler
Institution:
International Relations Council of Turkey (UİK-IRCT)
Abstract:
“Understanding EU-NATO Cooperation: How Member States Matter” by Nele Marianne Ewers-Peters conducts a distinctly member-state based theoretical examination of interorganizational cooperation between the EU and NATO. Ewers-Peters mainly intends to demonstrate member states’ foreign/security policy orientations, roles and positions affecting the functionality and dys-functionality of Euro-Atlantic security, between the period of the end of the Cold War and 2021. The book is composed of seven chapters including conclusion and implications. By providing 28 face-to-face semi-structured interviews carried out in Berlin and Brussels between February 2017 and February 2018, with different member states’ representatives (see Appendix A.), as well as document analysis of primary and secondary sources, the book relies on well-designed qualitative research.
Topic:
Security, Foreign Policy, NATO, International Cooperation, European Union, and Book Review
Political Geography:
Europe and North America

4. European and Tunisian Migration Policies: A Recipe for Failure and Suffering

Author:
Refugees International
Publication Date:
01-2024
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
After several months of significant increase in irregular migration from Tunisia to Europe, European Commission President Ursula von der Leyen and Italian Prime Minister Giorgia Meloni, along with several other European Union leaders, have set their sights on what they seem to believe is the best way to produce immediate results: increasing the provision of cash, equipment and training to the Tunisian security forces (TSF) to diminish the country’s booming irregular migration industry. In the last two months, the European Commission announced it wants to agree to “new anti-smuggling operational partnerships” with Tunisia[1] that would significantly scale up border controls, police and judicial cooperation, as well as cooperation with EU agencies (for example, Frontex). An “International Conference on a global alliance to counter migrant smuggling” was also convened in Brussels on 28 November.[2] As one top EU official in Tunis put it to Refugees International, “There is a strong desire by some in Europe to get the maximum amount of resources possible to the Tunisian government and security forces as soon as possible to stop the boats, now and in the future”.[3] The EU intended strategy, however, appears destined for failure, falling short of its narrow objective of suppressing irregular migration and lacking in the broader – and more important – criteria of adherence to legal commitments, human rights principles and effective overall migration policy. This approach is riddled with four primary deficiencies.
Topic:
Migration, European Union, Refugees, and European Commission
Political Geography:
Europe, North Africa, Tunisia, and Mediterranean

5. Charting the Course: European Perspectives on EU–Tunisia Relations

Author:
Akram Ezzamouri, Colin Powers, and Emmanuel Cohen-Hadria
Publication Date:
01-2024
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
Over the past year, a surge in migrant people arriving from Tunisia to Europe has thrust the North African country into the heart of European political agendas, sparking concerns across the continent’s capitals about its hardships and risk of economic and social collapse. The immediate policy response involved a frenzy of Euro-Tunisian diplomatic activity guided by the Italian government – itself needing to demonstrate some kind of answer to increased migratory arrivals to its shores – and culminated in the signing of the EU-Tunisia Memorandum of Understanding (MoU) in July 2023.[1] The MoU, structured around five key areas of collaboration – macroeconomic stability, trade cooperation, green energy transition, people-to-people contacts, and migration and mobility – is said by so-called “Team Europe” to aim fostering a strategic and comprehensive partnership between the European Union and Tunisia. However, observers highlighted its detrimental shortsightedness, the flaws in its legal nature, as well as the necessity to allocate political and financial resources beyond migration management to truly diversify the agreement.[2] Against this backdrop, three European experts offer here considerations on challenges and prospects in EU–Tunisia relations and propose alternative avenues where cooperation can evolve, emphasising the creation of a stable and equitable political environment in both Europe and Tunisia.
Topic:
Migration, Bilateral Relations, European Union, and Migrants
Political Geography:
Europe, North Africa, and Tunisia

6. The State of EU-US Digital and Energy Cooperation

Author:
Federica Marconi, Wolfgang Münchau, and Irene Paviotti
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
In a time of rapid technological advancements and changing energy paradigms, the European Union and the United States are trying to coordinate their efforts to navigate the complexities of an ever-evolving landscape. Transatlantic dialogues and cooperative endeavours are key mechanisms for mitigating tensions and fostering a common assessment of the opportunities and risks arising from these advancements. Critical in this regard are the problems of governance emanating from technological development and its consequences in the digital sphere as well as the delicate balance between security, competitiveness and environmental targets in the energy dimension.
Topic:
Climate Change, International Cooperation, Political Economy, Governance, European Union, Transatlantic Relations, Digital Policy, and Energy
Political Geography:
Europe, North America, and United States of America

7. The Russia-Ukraine War and Implications for the European Defence Industry

Author:
Michele Nones
Publication Date:
02-2024
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
Two years after the Russian attack on Ukraine, it is clear to everyone that the European Defence Technological and Industrial Basis (EDITB) was ill-equipped to face the consequences of a large-scale, high-intensity conflict on the Old Continent. The war changed three decades of procurement policies, production and technological trends that had previously shaped (not only) Europe’s approach to defence hardware. From the 1990s onwards, the preference for fewer, precise, highly advanced weapon systems over the massive employment of low-medium tech solutions had a double effect on the EDITB. First, it led European markets to partially consolidate, and individual companies to strive for increased efficiency. This meant not investing/maintaining redundant production sites, divesting from relatively low profitable and low demand segments such as the manufacturing of artillery shells and pursuing research and development (R&D) investment in high-end products. Second, the emphasis on technological prowess also shaped the way the European Union tried to jumpstart defence cooperation and integration among member states, first and foremost through the European Defence Fund (EDF) and Permanent Structured Cooperation (PESCO).
Topic:
Defense Policy, European Union, Weapons, and Defense Industry
Political Geography:
Russia, Europe, and Ukraine

8. The Future of the Belt and Road in Europe: How China’s Connectivity Project is Being Reconfigured across the Old Continent – and What It Means for the Euro-Atlantic Alliance

Author:
Nicola Casarini
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
China’s Belt and Road Initiative (BRI) has entered the twilight zone in the old continent, following a deterioration of bilateral relations between the EU member states and China over the last years. Italy’s official exit from the BRI at the end of 2023 was a further blow to Chinese President Xi Jinping’s signature foreign policy. Yet, the BRI in Europe is being reconfigured rather than being terminated. In Western Europe, the BRI is moving away from physical infrastructure projects and investment in industrial assets – the latter being increasingly protected from Chinese takeovers by both national and EU legislation – to financial and monetary connectivity. This shift is welcomed by various European actors, including some policymakers at the national level, eurozone institutions and major banks. Concurrently, most of Eastern European countries continue to promote BRI projects and seek to attract Chinese investments, suggesting that there is a two-speed Europe when it comes to China, both in terms of geography and sectors.
Topic:
Infrastructure, Foreign Direct Investment, European Union, Belt and Road Initiative (BRI), and Currency
Political Geography:
China, Europe, Asia, and Italy

9. Challenges to Transatlantic Digital Infrastructure: An EU Perspective

Author:
Anselm Küsters, André Wolf, and Eleonora Poli
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Recent disruptions in the Baltic Sea and elsewhere highlight the integral role of digital and physical conduits such as gas pipelines, telecommunications cables and undersea data cables in maintaining European connectivity and security. Overall, the EU’s responses to emerging challenges to its digital sovereignty, particularly from China and Russia, aim to enhance the security and resilience of its digital landscape, from the Global Gateway Strategy to the Gaia-X project. However, the complexity of the submarine cable infrastructure requires a broader and more holistic assessment of the opportunities and obstacles to ensuring the uninterrupted flow of information across borders. Ultimately, a concerted transatlantic effort is needed to strengthen the backbone of Europe’s digital infrastructure against both man-made and natural adversities, thereby securing a future where sovereignty and resilience are paramount for both the EU and the US.
Topic:
International Political Economy, Politics, Infrastructure, European Union, Institutions, Transatlantic Relations, and Digital Policy
Political Geography:
Europe

10. Chips: EU’s Ambition in a Transatlantic Technology Bridge

Author:
Nicola Bilotta
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Semiconductors are vital building blocks of digital technologies. In line with its aspiration for strategic autonomy, the EU has recognised vulnerabilities in its chip supply chain, which heavily relies on foreign firms. The intricate relationship between economic security and open trade underlies the EU’s quest to bolster its domestic capacity while enhancing connections with key global partners. Despite the challenges of finding a policy balance, fostering transatlantic cooperation in the semiconductor domains remains a key ambition. To cultivate a more balanced and effective partnership with the US, the EU should capitalise on its comparative advantages to amplify and fortify its strategic positioning in the global supply chain.
Topic:
International Political Economy, Science and Technology, Governance, European Union, Transatlantic Relations, and Industry
Political Geography:
Europe

11. The Future of EU Blended Finance and Guarantees: An Assessment of Cooperation Strategies with Least Developed Countries in Africa

Author:
Erik Lundsgaarde
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The European Fund for Sustainable Development Plus (EFSD+) is a core element of EU development cooperation and reflects the EU’s strong commitment to deploying blended finance and guarantees as development financing tools. This discussion paper examines the EU’s intentions concerning how the EFSD+ will be integrated into geographic programmes, focussing on the least developed countries (LDCs) in Africa. Based on a review of the Multiannual Indicative Programmes (MIPs) for 30 African LDCs as well as the regional MIP for Sub-Saharan Africa covering the period 2021-2027, the paper provides an overview of funding reserved for EFSD+ implementation in geographic programmes, identifies the expected EFSD+ sectoral priorities and summarises references to development finance institutions (DFIs) as EFSD+ implementation partners. This descriptive review highlights issues for the future monitoring and assessment of the EFSD+. The paper points to uncertainty about the magnitude of the management challenge that EU institutions face in EFSD+ implementation given the difficulties of predicting the scale of guarantee-backed operations in individual countries, the lack of information on the expected volume of blended finance operations, and the limited analysis of how EFSD+ tools relate to other EU funding approaches. The paper also notes that EU institutions should be more explicit about the criteria shaping EFSD+ resource commitments to clarify relevant prerequisites for the effective deployment of EFSD+ tools. Finally, the broad thematic scope for EFSD+ use implies that knowledge about how blended finance and guarantees function and how the financing approaches interact with other interventions needs to increase throughout the EU system.
Topic:
Development, European Union, Finance, Sustainability, and Cooperation
Political Geography:
Africa and Europe

12. Beyond European extraterritoriality, for legal intelligence and compliance in the service of sovereignty: A response to the extraterritoriality of foreign laws to safeguard fundamental European values

Author:
Amélie Giuliani
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
Robert Schuman Foundation (RSF)
Abstract:
In this period of change, companies must anticipate their local legal environment, regional and international regulations and foreign laws with extraterritorial scope on a daily basis.
Topic:
International Relations, Sovereignty, Law, European Union, and Compliance
Political Geography:
Europe

13. European energy solidarity: strengthening the EU’s crisibility

Author:
Aline Bartenstein
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Robert Schuman Foundation (RSF)
Abstract:
By default, when the EU is hit by a crisis, member states tend to have a national sovereignty reflex. When Italy was hit hard by the Covid-19 pandemic, the first reaction was to close its borders and restrict the export of urgently needed medical equipment. National interest superseded the call for European solidarity. Although member states have repeatedly managed to unite and – in the face of the polycrisis – developed a certain crisibility, no one would have been surprised if member states had preferred to seek their own advantage when Russia started the war in Ukraine on 24 February 2022. Nearly one year later, member states are (still) united – some declaring this as never before – and a gas or electricity crisis has so far been averted. This unity, which certainly threatened to crumble in the face of Hungarian opposition, German hesitancy, and the different approaches to dealing with the war, leads us to the question of what is different this time? Certainly, the EU's identity has been profoundly challenged by the war since its peacekeeping credentials – the EU is even a recipient of the Nobel Peace Prize – were perceived to be at risk. Was is this identity-threatening experience that united the member states? Or was it the recognition of Russia as a common foe that strengthened the bond between them?
Topic:
Sovereignty, European Union, Solidarity, Energy, and Regional Politics
Political Geography:
Russia, Europe, and Italy

14. Can the EU still wrest the Balkans from their blighted history?

Author:
Jean Bizet and Fabrice Hugot
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Robert Schuman Foundation (RSF)
Abstract:
It is perhaps necessary, first of all, to recall why the name "Western Balkans" is still used to describe this peninsula in south-eastern Europe, why this imprecise geographical concept is preferred to any other name. To answer this question is to recognise from the outset the difficult fate suffered by this part of Europe: if we prefer to speak of the Balkans, it is quite simply because only geography is stable in this region.
Topic:
European Union, History, Geography, Regional Politics, and Russia-Ukraine War
Political Geography:
Europe and Balkans

15. Geopolitical and Technocratic: EU International Actorness and Anne PINTSCH Russia’s War Against Ukraine

Author:
Anne Pintsch and Maryna Rabinovych
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Robert Schuman Foundation (RSF)
Abstract:
Russia’s full-scale invasion of Ukraine on 24 February 2022 marked the start of the largest and most brutal war at the heart of the European continent since World War II. It inevitably came as a “cold shower” for the EU and Member States’ politicians, demonstrating with absolute certainty the fragility of the international and European security order. The EU responded to the invasion with unprecedented sanctions against Russia and Belarus and multifaceted resolute support to Ukraine. The latter included the breaking of many previously existing taboos, such as the first ever use of the European Peace Facility to procure weapons for a third country at war or offering collective protection to about 8 million Ukrainian citizens and residents, fleeing the war
Topic:
European Union, Geopolitics, Resilience, Technocracy, Regional Politics, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

16. Gender equality in Europe: a still imperfect model in the world

Author:
Stefanie Buzmaniuk
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Robert Schuman Foundation (RSF)
Abstract:
In a world where women's rights are once again being challenged from all quarters, Europe remains the place where women live best. Within the Union, however, there have been some setbacks, difficulties persist, and progress is still required in the political, economic and social fields to achieve true gender equality.
Topic:
Human Rights, European Union, Women, Inequality, and Gender
Political Geography:
Europe

17. Rule of law: the uncertain gamble on conditionality

Author:
Eric Maurice
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Robert Schuman Foundation (RSF)
Abstract:
Will 2023 be the year when Hungary and Poland join the ranks of Member States that respect the values of the European Union? Nothing is less certain because, in Budapest as in Warsaw, the reforms demanded by the Union have not yet been implemented. In early February Polish president Andrzej Duda, referred a law which was supposed to bring an end to disciplinary abuses against judges to the Constitutional Court. The Hungarian government has still not completed reforms to make public procurement more transparent and to strengthen the fight against corruption. The fact that these measures are being discussed indicates however that the balance of power has changed. 2022 was a pivotal year in the European Union's efforts to combat breaches of the rule of law in its Member States. For the first time, a range of new and old tools, specific or not, structural or conjunctural, were used to try to reverse the trend that has been developing for several years, mainly in Hungary and Poland, of undermining the independence of the judiciary, systems of checks and balances, and certain rights that are considered fundamental.
Topic:
European Union, Rule of Law, Judiciary, and Regional Politics
Political Geography:
Europe, Poland, Romania, and Hungary

18. The European Union and the war in Ukraine: the liberal power and its limits

Author:
Maxime Lefebvre
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
The European Union has been deeply affected by the war in Ukraine. There was talk of a "paradigm shift" in France, of a "Zeitenwende" ("change of era") in Germany, of an "end to naivety". Across Europe, a surge of sympathy and solidarity for Ukraine and its suffering has gripped public opinion, right down to the blue and yellow colours of the EU and Ukrainian flags being ostensibly displayed by Ursula von der Leyen. The European Union has given massive economic aid to Ukraine (€20 billion already paid out, €20 billion planned for 2023) and has taken in 4 million Ukrainian refugees. At the June European Council, it accepted Ukraine's membership application, as well as that of Moldova, and a prospect of accession for Georgia. By adopting sanctions against Russia that were unprecedented since those taken against Serbia at the beginning of the wars in the former Yugoslavia, it has also demonstrated its capacity for "hard power". In the wake of its common defence policy, it delivered arms to Ukraine for the first time through its €3 billion "peace facility". By almost completely depriving itself of Russian fossil fuels, it is accelerating its energy transition. This shows the enormous change that the war in Ukraine represents for the European project, which is undergoing a new existential crisis after the repeated shocks of the last few years (eurozone crisis, migration crisis, Brexit, Covid-19 pandemic), which again seems to confirm Jean Monnet's prophecy that Europe would be built through crises and would be the sum of the solutions brought to these challenges. By defending its values against Russia, the European Union is asserting itself as a "liberal power". But it remains no less fragile beyond its response.
Topic:
European Union, Geopolitics, Liberalism, Strategic Autonomy, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

19. Digital Sovereignty: For a Schuman Data Plan

Author:
Arno Pons
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
Robert Schuman Foundation (RSF)
Abstract:
On 9 January, the European Commission launched the first cooperation and monitoring cycle for the achievement of the European Union’s digital decade by 2030. If, in the digital field, Europe faces issues of sovereignty, it is because it has left the sector open for over twenty years to the American Tech giants, who have imposed a game whose rules that have never been understood here. Either because these rules were inaccessible to the European Union (Moore and Metcalfe laws), or because we accepted that there were no rules of the game (code is law).
Topic:
Markets, Science and Technology, Infrastructure, Law, European Union, Data, European Commission, and Digital Sovereignty
Political Geography:
Europe

20. The Strategic Repositioning of LNG: Implications for Key Trade Routes and Choke Points

Author:
Leslie Palti-Guzman and Marc-Antoine Eyl-Mazzega
Publication Date:
04-2023
Content Type:
Special Report
Institution:
Institut français des relations internationales (IFRI)
Abstract:
2022 saw the climax so far of the weaponization of energy. Following its geopolitical demise, Russia has undertaken its own gas amputation, moving from a super energy power status to a diminished role with uncertain prospects and only hard options left. Russia has cut off almost entirely pipeline gas supplies to the European Union (EU), first inflicting huge financial pain and collecting record high revenues, but then simply losing out its largest and best market with no realistic alternative, and no prospect of any significant return. However, the Kremlin could still further reduce some of the remaining pipeline gas or liquefied natural gas (LNG) supplies and thus cause some tensions in the markets. Russia also retains leverage on oil markets, where the Kremlin managed to cope with the embargo as well as the price cap and maintain the relationship with Saudi Arabia which drives OPEC+ decisions. Meanwhile, in 2022, the European energy system has managed to surprisingly adapt on the supply and demand side to the three shocks: the decoupling from Russian energy supplies, the hydropower generation crisis, and the French nuclear electricity crisis. Liquefied natural gas has made a comeback in Europe and has been a savior of industries, governments, and populations. The LNG corridor between the EU and the United States (U.S.) has become the most dominant LNG trade route in 2022. This came at a huge cost though – EU’s gas import bill soared ten times from 2020 and three times from 2021 levels. For 2023, the European gas balance is much more fragile, as the demand reduction potential has reached its limits, same for the ability to attract additional non-Russian exports to Europe, at a time when missing Russian volumes will probably reach 120 billion cubic meters (bcm), instead of about 77 bcm in 2022. More moderate price levels since November 2022 have clearly overshadowed this fundamental mismatch, especially as the weather has been mild and China was still struggling with the pandemic. With an additional 30-40 bcm of missing Russian gas to offset in 2023 compared to 2022, Europeans can be expected to benefit from an extra gas of around 20-25 bcm left in storages thanks to mild weather and available LNG. They have no choice but to continue saving energy in a hurry, that is both on gas and electricity. Gas demand in power generation had increased in the first nine months of 2022 before falling in Q4 2022, and well over 15 bcm can be saved here in 2023 as more nuclear is available altogether, alongside more renewables, and some coal. It will be critical to reduce peak loads though. The key improvement is in terms of logistics, with the massive new LNG import capacity deployed across Europe. Overall, EU’s import situation will be very tensed and fragile for the next winter. The key challenge is that EU’s gas supply security ultimately depends on the weather in Europe, China’s and Japan’s LNG demand, and weather or technical outages in the Gulf of Mexico or in other producers. Any slight disruptions in supplies can have major impacts. As a last resort, bringing back some Groningen supplies, no matter how politically sensitive this would be, must be considered and prepared. Large financial compensations and effective governmental action would notably be required to offset the hardships.
Topic:
European Union, Gas, Exports, Trade, Energy, and Russia-Ukraine War
Political Geography:
Russia, China, and Europe

21. China/United States: Europe off Balance

Author:
Thomas Gomart and Marc Hecker
Publication Date:
04-2023
Content Type:
Special Report
Institution:
Institut français des relations internationales (IFRI)
Abstract:
As French President Emmanuel Macron (accompanied by Ursula von der Leyen) is on a state visit to China, some twenty Ifri researchers decipher the stakes of the U.S./China/Europe strategic triangle. This 16-text study follows Olaf Scholz’s visit to Beijing (November 2022) and precedes that of Emmanuel Macron (April 2023). It comes especially one year after the beginning of a geopolitical and geoeconomic shock of a rare magnitude: the invasion of Ukraine by Russia. The War in Ukraine or the Return of Bloc Geopolitics? The war in Ukraine has broken ties between the European Union (EU) and Russia for the foreseeable future, particularly in the field of energy, though not without consequences in the Middle East, Africa, and the Indo-Pacific. Furthermore, this war has become the main show of active indirect confrontation between the United States—which has provided military support to Ukrainians, with help from its European allies—and China, which has supported Russia politically and economically. In February 2022, Moscow and Beijing declared their “no limits friendship”; in March 2023, Xi Jinping offered his personal support to Vladimir Putin after the International Criminal Court issued a warrant for his arrest. In its position on the political settlement of the Ukraine crisis, presented in February 2023, China stated: “All parties should oppose the pursuit of one’s own security at the cost of others’ security, prevent bloc confrontation, and work together for peace and stability on the Eurasian Continent”. China is no more of a mediator than the United States: it would be unrealistic to believe so. We appear to be witnessing a return of bloc geopolitics, albeit in a starkly different context than that of the Cold War (1947-1991). Globalization has produced strong economic and technological interdependencies that make any prospect of decoupling very costly, if not impossible. Economic partners are no longer necessarily military allies, and vice versa. In other words, a gap is opening up between geopolitical perceptions and geoeconomic realities. The term “decoupling” is popular in the United States, though much less so elsewhere. The rejection of bloc geopolitics is particularly acute outside of the West, where a “pragmatic” approach to foreign policy is often promoted. The Saudi foreign minister summed this up during the World Policy Conference in December 2022: “Polarization is the last thing we need right now. […] We need to build bridges, strengthen connections, and find areas of cooperation”. A few months later, China pulled off an extraordinary diplomatic coup by brokering a deal to restore relations between Riyadh and Tehran. For the EU, the situation is particularly delicate: Europe is in the Western camp, but a severing of ties with Beijing would cause a crushing economic blow. In 2022, China accounted for more than 20% of the EU’s imports, while the United States accounted for around 12%. By 2030, the EU’s GDP is expected to rise to $20.5 trillion, compared to $30.5 trillion for the United States and $33.7 trillion for China. In January 2023, the President of the European Commission declared at Davos: “We still need to work and trade with China, especially when it comes to this transition. So, we need to refocus our approach on de-risking, rather than decoupling”. For its part, Beijing has encouraged European aspirations of “strategic autonomy”, understood in China as a form of detachment from the United States. At the same time, the EU is constantly strengthening its military, technological, financial and energy ties with the U.S. This collective study notes a hypothetical search for balance on the part of the Europeans, faced with a war on their territory (the Western peninsula of the heartland), who cannot escape Sino-American mechanisms, and who do not form a monolithic whole. It also analyzes the strategy of several important actors outside our continent, and shows that, from Ukraine to Taiwan, via Africa and the Middle East, Europeans have little room for maneuver. This is why the study proposes recommendations to try, at a crucial moment, to reinforce their positioning.
Topic:
Foreign Policy, Climate Change, International Trade and Finance, Science and Technology, European Union, and Industry
Political Geography:
China, Europe, and United States of America

22. Higher Renewable Energy Targets in Germany: How Will the Industry Benefit?

Author:
Gilles Lepesant
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
Institut français des relations internationales (IFRI)
Abstract:
“Deutschland – Einstieg in die Deindustrialisierung?” – “Germany, the beginning of deindustrialisation?” asked the German economic newspaper Handelsblatt in the context of the spike in energy prices that has put at risk thousands of companies across Germany in 2022. Whereas some sectors such as steel, glass and chemicals have been seriously hit, the manufacturing industries operating in the areas linked to the energy transition (such as renewable energies and hydrogen production) should benefit from decisions taken to reach climate neutrality. Will the German industry benefit from the ambitious commitments agreed by the new coalition? The boom and bust of the solar sector in 2011 are a reminder that a strong internal demand does not necessarily translate into strong and resilient supply chains on the national territory. In the context of generous support schemes, several companies emerged in the 2000s benefiting from the strong demand for solar panels before being overwhelmed by Asian competitors. Nowadays, more than 90% of solar panels are imported from China. The level of ambition of the Federal government for the Energiewende has dramatically increased with the new coalition elected in 2021, the share of renewables to be reached in the power mix by 2030 being set at 80% (against 47% in 2022). The German wind industry has however been affected by a slowdown of the expansion of capacities, several rounds of onshore wind and solar auctions being in 2022 undersubscribed. The added value of the Energiewende in terms of job creation has been ambivalent so far. The country’s current industrial geography might be partly reshaped with the efforts made by northern and eastern States to deploy renewables and green hydrogen at large scale. Stakes are high for southern Germany since new spatial patterns are emerging in the automotive sector too. While Chinese competition in the solar and wind manufacturing sectors is tough, the Inflation Reduction Act has reinvigorated discussions around a stronger industrial policy.
Topic:
European Union, Electricity, Renewable Energy, Wind Power, Hydrogen, and Energy
Political Geography:
Europe and Germany

23. Digital Sovereignty: European Policies, American Dilemmas

Author:
Mathilde Velliet
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Institut français des relations internationales (IFRI)
Abstract:
European digital sovereignty has been made a priority by Ursula von der Leyen’s European Commission. Due to the privileged position of American companies in the European market, Brussels’ efforts towards digital sovereignty (on privacy, antitrust, data sovereignty, etc.) are closely scrutinized by American policymakers. They often view European initiatives as “protectionist” and unfairly targeting U.S. companies. However, the American vision of European digital sovereignty has evolved in recent years under the influence of two main factors. On the one hand, awareness of the problematic effects and practices of platforms has led to a consensus on the need for reform in the digital sector. On the other hand, technological competition with China has been elevated to a priority. This vision remains fraught with contradictions, along inter-party, intra-party, inter-agency, state-federal, and issue-based fault lines. Washington’s position on anti-monopolistic practices is an illuminating example, characterized by a double discourse between a desire to reform the U.S. digital sector domestically and active diplomacy to dilute these efforts at the European level. Nonetheless, several American actors – particularly in the legislative branch – are seeking to learn from the successes and flaws of European regulations for American reform projects, such as on platform regulation or privacy. The China factor reinforces the ambiguity of the U.S.’ position. It creates new opportunities for cooperation in the face of perceived common vulnerabilities (infrastructure security, inbound investments, etc.) and autocratic definitions of digital sovereignty. However, it also raises tension and misunderstanding on the American side towards European reforms that often target American companies more than Chinese ones. Lastly, while American and European companies have adapted to the need for digital sovereignty through a range of technical and commercial solutions, the temptation of a maximalist definition of European sovereignty continues to create major stumbling blocks, particularly on the cloud.
Topic:
European Union, Regulation, Cloud Computing, Digital Sovereignty, and Data Governance
Political Geography:
China, Europe, Asia, North America, and United States of America

24. How the War in Ukraine is Changing the Space Game

Author:
Guilhem Penent and Guillaume Schlumberger
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Institut français des relations internationales (IFRI)
Abstract:
The war in Ukraine has become a showcase for the new commercial paradigm emerging in the space sector (New Space). As such, it seems to confirm the relevance of adaptation efforts led by the United States – more specifically the Pentagon – since the mid-2010s. Thus, it highlights ongoing transformations and announces potential disruptions in the exploitation of orbits, particularly in the fields of satellite connectivity and remote sensing. It also shapes future tensions, while the structuring of international relations around the two poles constituted by the United States and China raises questions about the consequences on the safe, sustainable, secure, and stable use of space. With these developments, Europe is faced with the challenge of remaining relevant.
Topic:
International Relations, European Union, Space, Satellite, and Russia-Ukraine War
Political Geography:
Russia, China, Europe, Asia, and United States of America

25. The Europeanisation of the Energy Transition in Central and Eastern EU Countries: An Uphill Battle that Can Be Won

Author:
Diana-Paula Gherasim
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
Institut français des relations internationales (IFRI)
Abstract:
Russia’s war in Ukraine, and the brutal decoupling from Russian fossil fuels, is a game changer for the Central and Eastern Europe region which was still heavily dependent on Russia for its energy supply. There are still a few oil, gas, and nuclear fuel supplies, but the sharp decline, and search for alternatives, lead to a shift in paradigm: deploying low-carbon technologies and energy efficiency is now a matter of national security and economic security. Hence, following the 2022 energy crisis, the understanding that the European Union’s (EU) energy security of supply means an acceleration in phasing out fossil fuels and deploying clean energies has become the newest European acquis in energy policy, increasing the importance of the Green Deal at EU, national and local levels. The risk that a carbon wall would be erected within Europe between the West and the Central and Eastern European Member States (CEECs) is no more valid. The concept of Europeanization is at the core of the analysis of the energy transition in the CEECs. The progress on greenhouse gas (GHG) emissions reduction observed in these Member States (MS) can be considered as a success of the Europeanization process in this region, as its timing coincides with the implementation of the 2020 agenda for climate and energy, to the establishment of which these countries were part of. Moreover, the Clean Energy Package and the Green Deal seem to have been successful in putting in place a mechanism of cognitive framing pertaining to the Europeanization toolbox, by setting a framework for all Europeans to move in the same direction, of a cleaner and healthier way of living, independently of their starting point. Given the status quo in the ten CEECs, the new ambitious objectives regarding transport decarbonization will translate into important transformation costs for the region, which in turn could increase the risk of renegotiation attempts, as the circular Europeanization theory predicts. The acknowledgment at the EU level that the transition must be just to succeed is one instance of bottom-up Europeanization, where the challenges brought forward by specific Member States shaped the European energy transition agenda and discourse. Large financial support for this end was a first condition for CEECs to support the climate neutrality agenda. The second condition is that CEECs plan to replace their coal fleet at least partially with nuclear power, be they reactor capacity expansions, lifetime extensions, large new reactors, or small modular reactors (SMRs). The third condition has been securing a role for the use of natural gas for the transition, which in 2022 turned out to be a costly choice. With the crisis, CEECs have all taken on board the necessity to boost renewables as a tool to rapidly decrease dependence on imported fossil fuels, to meet the 2030 targets, prepare for the progressive phase-out of free emission allowances while awaiting the new nuclear generation capacities due from 2035 onwards. This strategy is also supported by public opinion, while it remains to be seen how public acceptance of SMRs will be. This gives the CEE region a strong joint interest to push for the inclusion of nuclear energy in EU legislations, alongside France. On gas, countries have switched to liquefied natural gas (LNG) and diversified their pipeline supplies, and where possible, try to boost the domestic supply of natural gas and soon, biomethane. Although being relatively far from alternative gas entry points means that for some CEECs Russia remains, to a certain extent, a necessity, this cannot be used as an excuse for undermining EU unity and should push towards harder EU-level reflections on energy solidarity on which some progress was done during the 2022 energy crisis. It remains to be seen if a new line of fragmentation will not appear between Germany and Austria on the one hand and the CEEs on the other: following the Nord Stream betrayal and denial by Germany of Polish energy security concerns for example, CEECs are concerned about the extraterritorial outreach of Germany’s nuclear phase-out policies, and of Austria’s continued systemic opposition to nuclear. This plays in the hand of the United States, which is the ultimate gatekeeper to pressure Germany and secure the energy technology choices of CEECs through the export of US technologies. Of note is also the shared concern now over the dependence on Russian nuclear fuels and equipment, and efforts to reduce this. A last source of possible tensions comes from some new gas infrastructure investments which can strengthen resilience but risk locking in gas much longer than the EU trajectory allows for. Beyond nuclear energy, however, the interest in accelerating the deployment of renewables, and the concern over a just transition, the note shows that there is little in common between the CEECs which have all their specificities. Last but not least, this note argues that a new risk of fragmentation may emerge, related to the localization of innovation and the volume of state aids and subsidies to industries. While some CEECs appear to be a frontrunner in the deployment of battery cell gigafactories, their financial and budgetary capacities are much more limited compared to Western MSs, and their ability to develop comprehensive, coherent climate plans, and to mobilize EU tools and funding, is also limited. Without an EU Sovereignty Fund, the region will find it hard to keep pace with EU’s objectives in the Net-Zero Industry Act and the Critical Raw Materials Act due to limited fiscal space to be leveraged for state aid purposes, despite more favorable conditions.
Topic:
European Union, Renewable Energy, Fossil Fuels, Transition, and Energy
Political Geography:
Europe, Eastern Europe, and Central Europe

26. European Democracy Support Annual Review 2022

Author:
Richard Youngs, Elena Ventura, Ken Godfrey, Erin Jones, and Zselyke Csaky
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
The need to defend democratic values from violent attack was the dominant theme of 2022. Russia’s invasion of Ukraine in February made democracy’s defense a priority of the highest geopolitical as well as normative order. It propelled commitments to protect democracy to the top of the agenda for Europe, internally as well as in foreign and security policy. European powers responded and a common line gained currency that the war had pulled them through a watershed conversion in their strategic outlook. However, in a year dominated by the imperative of defending democracy, European policies specifically aimed at supporting democracy evolved in only understated fashion. While these policies were adjusted in important ways to the new context, Europe shifted gear much less in this area than in others. In 2021, the European Democracy Hub published the first annual review of European democracy support.1 This second review aims to provide an empirical overview of European democracy support policies in 2022. The review covers policies, strategies, and initiatives at the level of the European Union (EU) as well as those of its member states and of non-EU European countries active in democracy support (Norway, Switzerland, and the United Kingdom). It presents information on European efforts to defend and strengthen democracy around the world while highlighting their shortcomings. The aim is to inform debates about policies geared toward upholding democracy internationally. Russia’s invasion of Ukraine dominated European policy debates in 2022 in many ways. This review examines the democracy-related consequences of the invasion and of the geopolitical changes it unleashed. Western leaders framed the invasion as a threat not only to Ukraine but also to democratic norms and the rules-based order more widely, and as such it galvanized EU institutions and European governments into new commitments to defend democracy. However, these commitments were far from being the main policy responses; for all the rhetoric about a new struggle to defend democratic values, many elements of European democracy policy were second-order priorities. And, in some ways, the security aspects of the strategic landscape diluted European democracy commitments. The invasion did not alter all aspects of European democracy policy, which in many countries was shaped by domestic political developments. In a year of notable protests and other forms of civic activism around the world, the EU and some member states improved the ways in which they engage with local actors in support of political reform. The EU began to roll out many new programs in its democracy toolbox. Though low-profile, this began to add more tactical sophistication to EU policies. Yet the degree of European support for democratic openings remained modest and, in some places, negligible. And, while much attention was on the global consequences of the war in Ukraine, the EU’s democracy activities moved up a gear to a greater extent internally than externally. This review offers a summary of the main changes to the context conditioning European democracy policies before outlining their evolution at the EU and national levels during the year. It then looks at the war in Ukraine and the democracy-related aspects of the European response to it. The review then delves into more specific aspects of democracy support that were pursued, such as democracy funding, the use of sanctions and conditionality, and democracy considerations in conflict interventions. In line with the previous review, we frame democracy support in a broad sense. The concept lacks a firm definition and this review reflects an elastic understanding of it. Broadly, the analysis considers quantitative and qualitative aspects of European strategies relevant to strengthening democratic practices, norms, and institutions. Democracy support in this sense includes the use of funding for democracy projects, decisions over sanctions, the use of political conditionality, and the incorporation of democracy factors into conflict-related policies. The review looks not only at examples of such democracy support but also instances where democratic considerations were absent from EU policy. Democracy support is understood here as including EU and European action around the world, including within Europe, but not the actions of governments in their country’s domestic affairs.
Topic:
European Union, Democracy, Regional Politics, and Russia-Ukraine War
Political Geography:
Europe

27. Leveraging Lives: Serbia and Illegal Tunisian Migration to Europe

Author:
Hamza Meddeb
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
In 2020–2022, Tunisian illegal migrants traveled through Serbia to reach Western Europe, as an alternative to the hazardous, more monitored Mediterranean route. This was driven by push factors in Tunisia, including deteriorating economic conditions and government acquiescence, and pull factors in Europe, namely smuggling networks and Serbian authorities looking the other way. While the route was sealed for Tunisians in November 2022, as long as transit states can use illegal migration to secure geopolitical leverage, such actions will continue.
Topic:
Migration, European Union, Economy, and Smuggling
Political Geography:
Europe, Serbia, North Africa, and Tunisia

28. Rethinking the EU’s Approach to Women’s Rights in Iran

Author:
Barbara Mittelhammer, Tara Sepehri Far, and Sussan Tahmasebi
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
After the death of twenty-two-year-old Mahsa (Jina) Amini in the custody of Iran’s morality police on September 16, 2022, protests quickly spread throughout the country under the slogan of “Woman, Life, Freedom.” Amini’s death galvanized a movement that connects women’s individual freedom to choose their dress code to the systemic social, political, and economic grievances of a larger population that is demanding fundamental change. In claiming the realization of their basic rights, Iranians are revolting against a system that not only oppresses women and peaceful dissent but also continues to fail to meet citizens’ needs. This fight, which has attracted global solidarity, highlights the core message that when women’s rights are marginalized to nonexistence, human rights for all are at risk. The protests have taken place amid mounting repression of organized peaceful activism, a continuing deterioration of Iranians’ basic rights, and a host of economic ills, including rising inequality, increasing poverty, worsening living conditions, skyrocketing food prices, raging inflation, and rising unemployment. Three years of the coronavirus pandemic as well as decades-long comprehensive economic and financial sanctions have gravely added to the socioeconomic calamity. On top of this economic insecurity, precarious and perilous working conditions had already sparked increasing protests in Iran in recent years, resulting in the government’s harsh crackdown on human rights activists and civil society as well as further infringements on rights, including internet shutdowns, even before current events. Repression and the deterioration of Iran’s socioeconomic conditions have aggravated the situation for women in particular. Especially in recent years leading up to the current protests, this trend has hindered Iranian women’s ability to mobilize, protest, and achieve the full realization of their rights. Those who experience intersecting discrimination because of their minority background or social status are impacted even more if they live in rural areas, which are less developed than urban ones, or in areas on Iran’s border, which the state views predominantly through a security lens. The international response to Iran’s very poor human rights record and current protests, however, has lacked a holistic approach that considers women’s key role as agents of change and encompasses civil and political as well as social and economic rights as integral components of women’s rights. In fact, women’s rights and gender equality are not only goals in themselves but also enable the realization of fundamental rights of other marginalized groups, such as children and minorities. Moreover, women’s rights and gender equality are the strongest indicators of and preconditions for sustainable and peaceful societies, both internally and externally. Yet, the European Union’s (EU’s) current approach to Iran does not account for this reality. Over the past years, the EU’s policy toward the country has focused on negotiations to revive the Joint Comprehensive Plan of Action (JCPOA) after Washington’s withdrawal from the deal in 2018. The current situation in Iran urgently highlights the need for a policy framework that responds to the government’s repression and gross human rights violations and, equally, considers the disastrous socioeconomic situation in the country, which is a key obstacle to the public’s ability to organize to realize its rights. Given the importance of economic precarity and socioeconomic inequality in the current revolt, the EU should adopt policies that can support the protesters’ rights and demands in the short term while considering a revised long-term approach centered on empowering Iranians in their efforts to create long-lasting democratic change.
Topic:
Human Rights, European Union, Women, and Protests
Political Geography:
Europe, Iran, and Middle East

29. How Sweden Can Use its EU Presidency to Build the Civilian Security Dimension of the Eastern Partnership

Author:
Michal Baranowski, Mikołaj Bronert, Maximilian Kaminski, and Elene Kintsurashvili
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
German Marshall Fund of the United States (GMFUS)
Abstract:
The EU’s Eastern Partnership (EaP) lacks a security dimension and this is an urgent reform need. In particular, the EU should become the leading provider of civilian security support in the EaP countries, particularly Ukraine. But significant weaknesses in this policy field inhibit its capability to do so. Sweden’s long-term focus on the EaP, its experience in augmenting domestic cyber and hybrid resilience as well as in placing the civilian aspect at the heart of its national security, and it its leading contribution to the EU’s Common Security and Defense Policy (CSDP) missions put it in a unique position to be a champion of the security dimension of the EaP during its presidency of the Council of the EU. Sweden can do so by pushing for: a EU-NATO memorandum of understanding on the EaP; the provision of a rapid financing mechanism to assist EaP countries in nonmilitary defense; a more coordinated training, planning, and implementing process for CSDP missions between EU actors and the EaP countries; a more targeted approach towards EaP countries; and prioritization of deepening of cooperation with EaP countries in the domain of hybrid threats.
Topic:
Security, Foreign Policy, NATO, European Union, and Partnerships
Political Geography:
Europe, Eastern Europe, Sweden, and Central Europe

30. EU Energy Security & the Maghreb

Author:
Intissar Fakir and Alberto Rizzi
Publication Date:
01-2023
Content Type:
Video
Institution:
Middle East Institute (MEI)
Abstract:
North Africa and the Sahel Program Director Intissar Fakir speaks to Alberto Rizzi - pan-European fellow at the Rome Office of the European Council on Foreign Relations - about existing and future energy partnerships between the European Union and the Maghreb. In the wake of energy market disruption caused by the conflict in Ukraine, what alternative fuel sources are the EU looking towards - and how does this align with current production capacities in Maghreb countries?
Topic:
Security, Foreign Policy, European Union, Energy, and Russia-Ukraine War
Political Geography:
Europe, North Africa, and Morocco

31. Russia’s Aggression Against Ukraine: Concept, Ideology, Objectives, Means, Consequences

Author:
Plamen Pantev
Publication Date:
02-2023
Content Type:
Research Paper
Institution:
Institute for Security and International Studies (ISIS)
Abstract:
The study tries to outline interim conclusions about the concept, the ideology, the objectives and the tools used by the Russian federation in this barbaric war of attrition against Ukraine – a war of a nuclear superpower against a smaller neighbouring country. The study does not aim to analyse the strange way the war is developing – Russians carry on military attacks in both a regular and terrorist manner 7 on the whole territory of Ukraine, while the Ukrainians are deterred to counter-attack the aggressor on the latter’s own territory and to fight with longer-range arms even on their own land. The author understands how many issues from the theoretic fields of international relations, foreign, security and defense studies need to be considered to understand in a holistic way the final result of the interaction of domestic Russian, international, political, economic, governance, psychological and other problems that led to launching an aggressive and devastating war in the European continent by Moscow. The purpose of the study is not to outline the avalanche of mistakes in the policy of the collective West towards a showing for decades signs of revenge imperialist Russia. Neither it aims to point to the multitude of military mistakes by the aggressor in the last year. The aim of the study is to outline and discuss the concept, the ideology, the objectives and the means of the Russian aggression. Revealing the Nazi-like behaviour of the Russian leadership and its armed forces could serve to construct the broader picture of the developing conflict and learn how to prevent a similar invasion by Moscow. The study aims to prove that the legal and moral consequences of the war will be the conviction of the aggressor for the genocide and the war crimes. This would be the only possibility for normalising the life of the Ukrainians and the Russians as well as of the broader international relations system.
Topic:
International Relations, Security, NATO, Imperialism, Sovereignty, European Union, Conflict, Ideology, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

32. European Security and Defence: Don’t Get Your Hopes Up Just Yet

Author:
Adaja Stoetman
Publication Date:
03-2023
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
“2022 will be the year of European defence”.[1] These were the words of European Council President Charles Michel in October 2021. When he gave his speech at the Charlemagne Prize Award Ceremony in Aachen, no one expected that his statement would materialise in the way it did. Yes, headway was to be expected with the adoption of the Strategic Compass and European countries demonstrating commitment to investing more in defence cooperation. Although there is still a world of difference between ambitions and reality, the degree of progress accomplished in the past twelve months was not foreseen.
Topic:
Security, Defense Policy, NATO, Politics, European Union, and Institutions
Political Geography:
Europe

33. Turkey vis-à-vis Russia’s War against Ukraine

Author:
Özgür Ünlühisarcıklı
Publication Date:
03-2023
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
Characterising Turkey’s policy towards Russia’s war on Ukraine is not an easy task. Elements of both support for Ukraine and neutrality have emerged in the past year. An analysis of the fundamentals of Turkey–US relations and Russia–Turkey relations is thus helpful.
Topic:
Foreign Policy, Defense Policy, NATO, Bilateral Relations, European Union, and Russia-Ukraine War
Political Geography:
Russia, Europe, Turkey, Ukraine, and United States of America

34. Italy’s Response to the Russian Invasion of Ukraine

Author:
Nona Mikhelidze
Publication Date:
02-2023
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
In line with the EU’s policy, former Italian Prime Minister Mario Draghi and current Prime Minister Giorgia Meloni have taken a strong stance in response to the Russian aggression against Ukraine by firmly condemning the invasion and offering their full support for Kyiv’s territorial integrity, sovereignty and independence.
Topic:
Foreign Policy, Bilateral Relations, European Union, and Russia-Ukraine War
Political Geography:
Russia, Europe, Ukraine, and Italy

35. Reach for the Stars: Bridging Italy’s Potential in Space with Its Foreign and Security Policy

Author:
Karolina Muti
Publication Date:
01-2023
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
Italian capabilities, expertise and potential in the space sector are not widely known. Among state actors, Rome has actually been a pioneer in the field, boasting a long tradition that started in 1964 when Italy became the third country, after the Soviet Union and the United States, to send a nationally manufactured satellite into orbit.[1] From an industrial standpoint, Italy is among the few countries whose companies cover the whole space value chain.[2] In Europe, Rome is ranked second for total number of assets in orbit and is currently the third contributor to the European Space Agency (ESA).[3] An Italian astronaut, Samantha Cristoforetti, has recently become the first European woman to take command of the International Space Station (ISS).[4]
Topic:
Security, Foreign Policy, Defense Policy, NATO, Military Strategy, European Union, and Space
Political Geography:
Europe and Italy

36. Small-scale LNG in the Euro-Mediterranean: A Contribution to the Decarbonisation of the Maritime Sector

Author:
Pier Paolo Raimondi
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
While governments have reaffirmed their commitment towards energy transition in light of the current energy crisis, the urgency to act implies to use all possible solutions to reduce CO2 emissions during the transitional period. Natural gas can play a role in the decarbonisation of certain sectors, such as the transport sector. In this sense, the small-scale LNG industry could contribute to the decarbonisation of the Mediterranean region. Regulatory and political incentives as well as socioeconomic and environmental benefits could represent critical drivers for the growing role of the small-scale liquefied natural gas (SSLNG), while it will need to overcome several challenges (e.g. political pressure, economic and infrastructure constraints).
Topic:
Climate Change, Natural Resources, European Union, Gas, Decarbonization, and Energy
Political Geography:
Europe and Mediterranean

37. Fossil Fuel Industry Phase-Out and Just Transition: Designing Policies to Protect Workers’ Living Standards

Author:
Robert Pollin
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
This paper focuses on just transition policies targeted at supporting workers now employed in the fossil fuel industries and ancillary sectors within high-income economies. As a general normative principle, I argue that the overarching aim of such policies should be to protect workers against major losses in their living standards resulting through the fossil fuel industry phase-out. The impacted workers should be provided with three critical guarantees to accomplish this, in the area of jobs, compensation and pensions. Just transition policies should also support workers in the areas of job search, retraining and relocation, but these forms of support should be understood as supplementary. Within the framework of these broad principles, the paper first reviews experiences with transitional policies in Germany, the UK, the EU and, more briefly, Japan and Canada. A critical point that emerges is that these just transition policies do not provide the needed guarantees for assuring workers that they will not experience major living standard declines. The paper then describe an illustrative just transition program for workers that includes reemployment, income and pension guarantees, focusing on a case study for the U.S. state of West Virginia. The results show that the costs of the just transition program for West Virginia’s fossil fuel industry dependent workers will amount to an annual average of about $42,000 per worker, equal to about 0.2 percent of West Virginia’s GDP. I briefly summarize results from the seven other studies of U.S. states and for the overall U.S. economy. For the U.S. economy overall, the just transition program’s costs would total to about 0.015 percent of GDP. These findings demonstrate that providing a generous just transition program does not entail unaffordable levels of public spending. Robust just transition policies should therefore be understood as an entirely realistic prospect for all high-income economies.
Topic:
Political Economy, Labor Issues, European Union, GDP, Economy, and Fossil Fuels
Political Geography:
Japan, United Kingdom, Europe, Canada, and Germany

38. Why the proposed Brussels buyers club to procure critical minerals is a bad idea

Author:
Cullen Hendrix
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
Concerned about critical mineral supply chains and its own strategic vulnerabilities, the European Union is advancing a buyers club to procure minerals critical to the clean energy transition, such as bauxite, cobalt, lithium, and nickel. The European Union is deeply dependent on imports of both raw and processed critical minerals and materials and thus highly exposed to global price volatility. The door appears to be open for the United States or other EU trading partners and like-minded countries to join this club. Decarbonization is not the only impetus behind the proposed Brussels buyers club. Both the European Union and United States view China’s dominance of critical mineral supply chains as a national security issue, because these minerals are key inputs to modern military technology. Hendrix agrees that supply chains for critical minerals desperately need widening to meet projected global demand and tackle climate change mitigation, but he warns that a purchasers club would not be a step in the right direction. A buyers club would be prone to free riding, set up distributive conflicts within the European Union, and reduce the share of climate mitigation benefits accruing to critical mineral–producing countries, many of which are developing and middle-income economies.
Topic:
Economics, National Security, European Union, Supply Chains, and Minerals
Political Geography:
China and Europe

39. The international tax agreement of 2021: Why it’s needed, what it does, and what comes next?

Author:
Kimberly Clausing
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
In 2021, more than 135 jurisdictions agreed on transformative new international tax rules that would establish a minimum tax rate of 15 percent on multinational corporate income regardless of where it was reported. In December 2022, the European Union unanimously moved forward to implement this minimum tax, and other countries, including South Korea, Japan, Australia, Canada, and the United Kingdom, are also either implementing the tax or taking substantial steps toward implementation. In tandem, the United States should also reform its international tax system and adopt a stronger minimum tax. While the future of the international agreement is uncertain, it has important implications for the ability of governments worldwide to create tax systems that are administrable, fair, and efficient. The agreement also demonstrates important guiding principles for the future of multilateral cooperation on global collective action problems, including efforts to protect public health from future pandemics, address nuclear proliferation, and resolve territorial conflicts. US progress on international tax reform would enhance much needed international cooperation on these issues.
Topic:
Economics, Treaties and Agreements, Reform, European Union, and Tax Systems
Political Geography:
Europe and Global Focus

40. Industrial policy for electric vehicle supply chains and the US-EU fight over the Inflation Reduction Act

Author:
Chad P. Bown
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
The Inflation Reduction Act (IRA) of 2022 provoked a transatlantic trade spat. After the law was passed, the Biden administration addressed some of the concerns raised by the European Union by writing controversial rules to implement the legislation. These regulations are expected to have complex effects that, in some instances, may offset the intended impact of other provisions in the original legislation. This paper examines how the law, its implementing regulations, policy decisions on leasing, as well as potential critical minerals agreements all have the potential to affect the electric vehicle (EV) supply chain. The EV case study showcases the political-economic complications involved in US and EU attempts to cooperate over clean energy transition policy to address the global externality of carbon dioxide emissions. EVs are but one example of the challenge facing partners with integrated supply chains and similar levels of economic development that share concerns about climate change, rising inequality, workers, other social issues, and democracy itself. The EV conflict laid bare the differing US and EU prioritization of these issues relative to economic efficiency, World Trade Organization rules, the approach to nonmarket economies, and national security vulnerabilities that arise from depending on an authoritarian regime such as China for import sourcing of critical inputs.
Topic:
Industrial Policy, International Trade and Finance, European Union, Supply Chains, and Electric Vehicles
Political Geography:
Europe, North America, and United States of America

41. Integrating US and allied capabilities to ensure security in space

Author:
Nicholas Eftimiades
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
Over the last two decades, the world entered a new paradigm in the use of space, namely the introduction of highly capable small satellites, just tens or hundreds of kilograms in size. This paradigm has forever changed how countries will employ space capabilities to achieve economic, scientific, and national security interests. As is so often the case, the telltale signs of this global paradigm shift were obvious to more than just a few individuals or industries. Air Force Research Laboratory’s Space Vehicles Directorate began exploring the use of small satellites in the 1990s. The Air Force also established the Operationally Responsive Space program in 2007, which explored the potential use of small satellites. However, both research efforts had no impact on the US Department of Defense’s (DOD’s) satellite acquisition programs. The advancement of small satellites was largely driven by universities and small commercial start-up companies.1 The introduction of commercial and government small satellites has democratized space for states and even individuals. Space remote sensing and communications satellites, once the exclusive domain of the United States and Soviet Union, can now provide space-based services to anyone with a credit card. Eighty-eight countries currently operate satellites, and the next decade will likely see the launch of tens of thousands of new satellites.2 Commercial and government small satellites have changed outer space into a more contested, congested, and competitive environment. The United States has shared space data with its allies since the dawn of the space age.3 Yet it also has a history of operating independently in space. Other domains of warfare and defense policy are more closely integrated between the United States and its allies and partners. The United States has military alliances with dozens of countries and strategic partnerships with many more.4 In recent years, there have been calls to coordinate with, or even integrate allied space capabilities into US national security space strategy and plans. In this regard, the US government has made significant advances. However, much work needs to be done. There is pressure on the United States to act quickly to increase national security space cooperation and integration, driven by rapidly increasing global capabilities and expanding threats from hostile nations and orbital debris. This paper examines the potential strategic benefits to US national security of harnessing allied space capabilities and the current efforts to do so, as well as barriers to achieving success. The paper identifies pathways forward for cooperating with allies and strategic partners on their emerging space capabilities and the potential of integrating US and allied capabilities.
Topic:
Security, Defense Policy, NATO, National Security, European Union, and Space
Political Geography:
Russia, Europe, Canada, North America, and United States of America

42. Beyond launch: Harnessing allied space capabilities for exploration purposes

Author:
Tiffany Vora
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
The “United States Space Priorities Framework,” released in December 2021, confirmed the White House’s commitment to American leadership in space.1 Space activities deliver immense benefits to humankind. For example, satellite imaging alone is crucial for improvements in daily life such as weather monitoring as well as for grand challenges like the fight against climate change. Such breakthrough discoveries in space pave the way for innovation and new economies on Earth. Exploration is at the cutting edge of this process: it expands humankind’s knowledge of the universe, transforming the unknown into the supremely challenging, expensive, risky, and promising. US allies and partners accelerate this transformation via scientific and technical achievements as well as processes, relationships, and a shared vision for space exploration. By integrating these allied capabilities, the United States and its allies and partners set the stage for safe and prosperous space geopolitics and economy in the decades to come. However, harnessing the capabilities of US allies and partners for space exploration is complex, requiring the balance of relatively short-term progress with far-horizon strategy. Space exploration has changed since the US-Soviet space race of the 1960s. In today’s rapidly evolving technological and geopolitical environment, it is unclear whether the processes, relationships, and vision that previously enabled allied cooperation in space, epitomized by the International Space Station (ISS), will keep pace. Here, China is viewed as the preeminent competitor for exploration goals and capabilities—as well as the major competitor for long-term leadership in space.2 This development drives fears of space militarization and weaponization, prompting protectionist legislation, investment screening, and industrial policies that can disrupt collaboration among the United States and its key allies and partners.3 Further complication stems from the rise of commercial space, with opportunities and challenges due to the decentralization, democratization, and demonetization of technologies for robotic and crewed space exploration. This paper serves as a primer for current US space exploration goals and capabilities that will be critical to achieving them. It highlights arenas where US allies and partners are strongly positioned to jointly accelerate space exploration while also benefitting life on Earth. This paper concludes with recommended actions—gleaned from interviews with international experts in space exploration—for the US government as well as allied and partner governments to increase the number and impact of global stakeholders in space exploration, to remove friction in collaboration, and to guide the future of space toward democratic values.
Topic:
Security, Defense Policy, NATO, National Security, Science and Technology, European Union, Partnerships, and Space
Political Geography:
China, Europe, and Asia

43. Authoritarian kleptocrats are thriving on the West’s failures. Can they be stopped?

Author:
Francis Shin and Ben Judah
Publication Date:
01-2023
Content Type:
Special Report
Institution:
Atlantic Council
Abstract:
A hidden web of power revealed itself to Internet users in early 2022. Following a brutal government crackdown in Kazakhstan in January, anyone using open-source flight-tracking websites could watch kleptocratic elites flee the country on private jets. A little more than a month later, Russia’s invasion of Ukraine brought a new spectacle: social media users were able to track various oligarchs’ superyachts as they jumped from port to port to evade Western sanctions. These feeds captured a national security problem in near real time: In Eurasia and beyond, kleptocratic elites with deep ties to the West were able to move themselves and their assets freely despite a host of speeches by senior officials, sanctions, and structures designed to stop them. Kleptocratic regimes—kleptocracy means “rule by thieves”—have exploited the lax and uneven regulatory environments of the global financial system to hide their ill-gotten gains and interfere in politics abroad, especially in the United States, the United Kingdom, and the European Union. They are aided in this task by a large cast of professional enablers within these jurisdictions. The stronger these forces get, the more they erode the principles of democracy and the rule of law. Furthermore, the international sanctions regime imposed on Russia in response to its invasion of Ukraine has little hope of long-term success if the global financial system itself continues to weaken. The West still has a long way to go to rein in the authoritarian kleptocrats who have thrived on the institutional dysfunction, regulatory failure, and bureaucratic weakness of the transatlantic community for far too long. We need to rethink not just how we combat kleptocracy, but also how we define it. Policy makers need to understand that authoritarian regimes that threaten transatlantic security are closely linked to illicit financial systems. As it stands, our thinking about how foreign corruption spreads is too constrained by stereotypes about kleptocratic goals and actions.
Topic:
Corruption, Diplomacy, Intelligence, Politics, Sanctions, Authoritarianism, Reform, European Union, Regulation, Finance, Economy, Rule of Law, and Russia-Ukraine War
Political Geography:
Russia, United Kingdom, Europe, Ukraine, Canada, and United States of America

44. Building Resilience? The Cybersecurity, Economic & Trade Impacts of Cloud Immunity Requirements

Author:
Matthias Bauer
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
EU Member States should call on the EU’s Cybersecurity Agency (ENISA) and the European Commission to abandon immunity requirements in the proposed EU Cloud Certification Scheme (EUCS). With immunity requirements in the EUCS, the EU risks opening a Pandora’s box, paving the way for data localisation, foreign ownership restrictions, and local establishment requirements in digital industries globally leading to rising trade tensions. ENISA’s current proposal could increase policymakers’ appetite for data localisation in the EU. It would empower the European Commission and Member State authorities to exclude foreign businesses from domestic cloud services markets and set a dangerous precedent for any data-intensive sector. The list of “sectors of high criticality” could be logically extended to both existing services (e.g., financial services) and to new technologies and business models, such as IoT in the energy and healthcare sectors, and autonomous driving in the transport sector. Non-EU jurisdictions would be pressured to respond in kind. EUCS immunity requirements would increase cloud adopters’ exposure to cybersecurity risks. Data localisation often creates obstacles to an integrated management approach towards cybersecurity risks. Country of headquarter and foreign ownership restrictions in the proposed EUCS risk removing global frontier cybersecurity technologies from Member State markets. Excluding these and other EU and non-EU companies from EU Member States could result in a long-lasting security deficit of EU cloud adopters vis-à-vis organisations that are still able to use reliable and often best-practice cloud services offered by providers from outside EU Member States. Immunity requirements in the EUCS are discriminatory by design. They could provoke retaliatory measures by EU trading partners, either unilaterally or through WTO or bilateral FTA (e.g., UK-EU) Dispute Settlement. Local establishment requirements and foreign ownership restrictions would by design discriminate against foreign cloud providers. US-headquartered companies, which currently serve more than 75% of the EU market, would be most affected by EU immunity requirements.[1] Depending on US preferences and the scope of the proposed EUCS, the EU could be subject to retaliatory tariffs of up to USD 12 billion worth of EU goods exports or equivalent restrictions for EU services exports to the US. Other governments could lodge complaints via the WTO as well (e.g., Singapore, Japan, Canada and others, where cloud development is advancing rapidly). EU suppliers are currently in no position to manage a broad-based transition to cloud, and thus such requirements would delay significant efficiency and security gains that current foreign suppliers could offer. A blanket exclusion of non-EU cloud vendors would also likely undermine Europe’s objective to achieve a 75% cloud adoption rate for EU enterprises. Sensitive European businesses and public sector organisations would have to delay migration and make do with legacy systems for a very long time. Contrary to large countries, these negative impacts would be much more pronounced for smaller EU Member States, which lack the presence of large domestic incumbents and generally rely much more on an open international trading regime for digital services. ENISA’s cloud certification scheme should be limited to technical and transparency requirements. Immunity requirements for non-personal data should be addressed in bilateral initiatives such as the EU-US Trade and Technology Council (TTC) or agreements requiring a company that sought to offer services of the highest level of sensitivity to be headquartered in a country granted adequacy with EU data protection rules, or a country that is an adherent to the OECD’s Trusted Government Access principles, or (concerning the US) a participant in the upcoming Trans-Atlantic Data Privacy Framework. Excluding foreign companies from operating in the EU would have far-reaching consequences. If that is the intent, it should require a sound legal analysis and the decision should be taken through a formal legislative procedure at the EU level.
Topic:
Economics, Markets, European Union, Cybersecurity, Digital Economy, Trade, and Resilience
Political Geography:
Europe

45. The Economic Dividend of Competitiveness

Author:
Fredrik Erixon, Oscar Guinea, Philipp Lamprecht, Elena Sisto, and Erik van der Marel
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
In a world of technological and economic rivalry, the EU must devote increased attention to its competitiveness. Higher levels of competitiveness will help the EU build a more prosperous economy which will in turn produce innovation and resources to address the great challenges of our time. ECIPE published a study presenting a competitiveness compass with concrete policy recommendations that will improve EU’s competitiveness. These policy recommendations, once implemented, will bring tangible benefits to the EU economy in the form of higher levels of trade and productivity. This report presents five scenarios in which the EU pursues competitiveness policies that lead to higher economic growth.
Topic:
Economics, Science and Technology, European Union, Economic Growth, and Competition
Political Geography:
Europe

46. Building a Mature UK Trade Policy

Author:
David Henig
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
Global Britain has not delivered according to the hopes expressed by supporters of leaving the EU. Trade with the rest of the world has not grown to make up for leaving a bloc with seamless trade, early Free Trade Agreements with Australia and New Zealand are of minor economic significance, and it is hard to discern much of a strategy beyond completing a few more similar deals. Meanwhile the world of trade policy is transformed since 2016, negatively. The US has essentially declared its national interests to be more important than global rules, while the EU wants to act unilaterally as the global regulator. In both, the climate crisis is being used as an excuse to reintroduce protectionist measures threatening economic damage and global stability. Expectations of what a UK outside of the EU could achieve were exaggerated, but nonetheless the country could be doing a lot better in its trade policy. There is no good reason for such tensions as exist with a broad range of frustrated stakeholders, the absence of clear purpose on UK strengths such as services, or the defensiveness that seemingly takes pride in secrecy and resistance to proper scrutiny. Adjustment time was inevitable, but six years should have been enough.
Topic:
Economics, European Union, Free Trade, and Trade Policy
Political Geography:
United Kingdom and Europe

47. In Support of Market-Driven Standards

Author:
Matthias Bauer, Fredrik Erixon, Oscar Guinea, and Vanika Sharma
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The EU published its new Standardisation Strategy in 2022. The strategy contains some good ideas to improve the way European standards are set. However, in its attempt to gain more control over technical standards, the EU risks killing the goose that lays the golden egg. The primary motivation behind the strategy is the belief that the process governing the way CEN, CENELEC, and ETSI – the three European Standardisation Organisations – take decisions over EU standards favours non-EU multinationals. To address this perceived imbalance, EU National Standardisation Bodies will have the exclusive power to accept standardisation requests, and adopt, revise and withdraw European technical standards. These changes are particularly significant for ETSI, Europe’s Standardisation Body in charge of telecommunication standards and one of Europe’s most successful organisations. ETSI is a prime example of EU normative power since it hosts companies from more than 60 countries, while retaining a large membership of EU firms. The regulatory changes included in the strategy are not risk-free. There could be unintended consequences that may undermine a standardisation system that has delivered significant economic benefits for the EU and the world. First, giving more responsibility to EU’s National Standardisation Organisations will turn a European discussion into 30 (EU and EEA) national debates. As a consequence, small companies will not be able to contribute to each and every one of the National Standardisation Organisations, diluting their contribution, while multinational companies, with the resources needed to cooperate with a larger number of bodies, will benefit from an expanding role in the EU standard setting process. Second, if standards are fragmented along national borders and companies must multiply their efforts to take part in several Standardisation Development Organisations, there will be less resources for Research and Development spending. Finally, if each and every National Standardisation Organisation needs to have a position with regards to the acceptance of a standardisation request, or adoption, revision and withdrawal of European technical standards, the time period required to adopt a technical standard may be extended rather than shortened, which is the exact opposite of what the European Commission wants to achieve. The regulatory changes included in the EU Standardisation Strategy are akin to cracking a nut with a sledgehammer. If the European Commission is concerned about the influence of non-EU companies in European Standardisation Bodies, it does not need to overhaul their governance systems. Supporting greater participation of European firms in the European standard system will ease EU’s concerns without the downside risks associated with changing the rules of the game that govern Europe’s Standardisation Bodies. The success of the European standardisation system, which is market-driven and based on consensus, has had significant economic benefits in the development of specific industries, like the European Information and Communication Technologies (ICT). Technical standards in ICT have shaped a European industry that is not only dynamic and international but also enjoys some of the highest levels of wages and Research and Development spending. Moreover, if technical standards are not developed through an open, consensus-based, and industry-led voluntary process, they will be developed in different ways. For instance, governments and private companies can develop standards by themselves. Both solutions are inferior to the current market-driven approach that governs European standards. However, the European market-driven approach to set standards is voluntary, and its success and continuation must not be assumed. European policymakers should be worried about tinkering with a European standardisation system which has produced economic specialisation and innovation to the benefits of EU firms and consumers.
Topic:
Markets, European Union, Regulation, Economy, and Standardization
Political Geography:
Europe

48. What is Wrong with Europe’s Shattered Single Market? – Lessons from Policy Fragmentation and Misdirected Approaches to EU Competition Policy

Author:
Matthias Bauer
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
What is wrong with Europe’s Single Market? The brief answer to that question is that it does not really exist – it is unsingle. The Single Market is in many ways a political illusion. It exists only nominally. Any company doing business in Europe faces significant barriers to cross-border exchanges within the EU, and it is these barriers that hamper companies’ ability to scale and compete internationally on the back of innovation and economic integration. We outline that Brussels and national governments need to beat the drum for eliminating policy fragmentation in Europe’s internal market and at the same time change course in competition policy to sufficiently support investments in innovation, business growth, and the adoption of advanced technologies across industries. Major economic indicators show that Europe is caught in a protracted corporate and technology crisis. The EU has for a very long time now been tailing US corporate and innovation leadership. At the same time, competition with technology-intensive imports from China is getting increasingly intense. Europe’s underperformance is rooted in a legally fragmented internal market which is disincentivising business growth and innovation. On top of that, an outdated approach to competition policy is discouraging businesses from adopting innovation and scaling across national borders, risking that EU companies continue to lose clout and international competitiveness. 30 years have passed since the formal establishment of Europe’s Single Market. Data reveals that regulatory convergence has reversed or come to a halt in most policy areas. Recent policies for technologies and digital business models, which are key sources of cross-industry competitiveness, created new layers of regulation and legal uncertainty in EU and Member State law. Overall, EU policies have not significantly helped European companies, large and small, to do business in another Member State or use advanced technology-enabled services. EU competition policy does not live up to its promise to “enable the proper functioning of the EU’s internal market”. Europe’s competition policy is still fragmented along national borders and largely ignorant to dynamic effects of competition, especially investments in innovation. Due to mixed legal competences, competition rules are often enforced differently by Member States’ national authorities and can be appropriated to support protectionist industrial policy ambitions. The recently enacted Digital Market Act (DMA) demonstrates that the European Commission and Member State authorities favour protection and discretionary enforcement over innovation and economic disruption, without providing solid evidence of abusive business behaviour and consumer harm. With the DMA, the EU introduced legislation with serious ambiguities in objectives, concepts, and rules, and explicitly allows national Member States to regulate competition at their own discretion. A recent attempt by Germany’s competition authority, the Bundeskartellamt, to enforce its own rulebook for large digital companies (Section 19a of the German Competition Act) risks creating a patchwork of competition rules for large providers of advanced digital services across the EU. Local adopters of advanced digital services, particularly small businesses, that use advanced technology services to compete in their markets would be confronted with less choice and quality. Recently imposed policies under the umbrella of European Strategic Autonomy will hardly help policymakers in their ambition to achieve “innovation and technology leadership”. The paramount task for the EU and national governments is to eliminate policy fragmentation in Europe’s internal market, accompanied by an approach to competition policy that embraces investments in innovation and business growth while accounting for the substantial value created through the adoption of innovative technologies and disruptive business models across industries in the EU.
Topic:
Markets, European Union, Economy, and Competition
Political Geography:
Europe

49. Reforming Standard Essential Patents: Trade, Specialisation, and International Jurisprudence

Author:
Fredrik Erixon and Oscar Guinea
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The European Commission is considering a radical overhaul of the system governing Standard Essential Patents (SEPs). A leaked proposal suggests that the Commission wants to take control over the registration of SEPs, take efforts to regulate their essentiality, and intervene in negotiations over royalty rates if parties do not come to an agreement. The underlying assumption is that such a system will benefit SEP implementers and the European economy, and that the common holders of SEPs will be cut down a size or two. The logic behind this policy is that, since there are more SEP implementers than holders, any change in favour of implementers will have a net positive effect on the EU economy. However, this is doubtful. The EU is a R&D powerhouse for many of the technologies protected under SEPs and since most of the global production of the goods using these technologies is done outside Europe, the EU is a net exporter of innovation and a receiver of revenues from the licensing of these technologies. Using data on trade, specialisation, and market revenues, this paper comes to a different conclusion: the EU economy is likely to be a net loser if the balance between holders and implementers is changed. Moreover, there is a general and fundamental interest for Europe to preserve a system of standards and SEPs that allows it to punch above its weight in international policies and practices in standards and patents.
Topic:
Reform, European Union, Trade, Patents, Specialization, European Commission, and Jurisprudence
Political Geography:
Europe

50. Strategic Autonomy and the Competitiveness of Europe’s Innovative Pharmaceutical Sector: A Wake-up Call

Author:
Fredrik Erixon and Oscar Guinea
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
It is high time for Europe to break its relative decline in the pharmaceutical sector. Europe used to be the preeminent region in the world for Research and Development and innovation in the sector – being the location for a majority of R&D and the development of new medicines. However, its competitiveness has been going down for several decades – and, in more recent time, the pace of the decline is now accelerating. Europe is not just outpaced by the United States. Unless there is a new direction, China will soon be ahead of Europe too. Europe is behind the global frontier in innovation and new product development in medicines. It is not just Europe’s share of global R&D that is going down. Of all the new chemical and biological entities that are developed, Europe is contributing a falling share. There is a similar development in the drug pipeline – medicines that are in the regulatory approval process. The location of clinical trials for Advanced Therapy Medicinal Products – an area of new frontline drug development – is moving out of Europe. If Europe is to improve its strategic autonomy and restore competitiveness in the pharmaceutical sector, better policies are needed to incentivise innovation and attract R&D investment. A new strategy for the pharmaceutical industry should include – among other things – better protection of intellectual property, more and focused R&D expenditures, and streamlined regulatory and reimbursement processes.
Topic:
European Union, Pharmaceuticals, Strategic Autonomy, Research and Development, and Competition
Political Geography:
Europe