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1. Achieving Inclusive and Innovative Growth with Competition Policies

Author:
Minsoo Han and Subin Kim
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
In recent years, inequality has grown worse worldwide. Recent studies have pointed out weakening market competition and deepening industrial concentration as one of factors for this phenomenon. Therefore, the role of competition policies in promoting market competition should also be considered as a countermeasure against deepening inequality beyond the traditional view about competition policies. Against this backdrop, we empirically analyze cases of the US, the EU and Korea, and then propose a competition policy direction to achieve inclusive and innovative growth pursued by the Korean government.
Topic:
Inequality, Economic Growth, Innovation, Inclusion, and Economic Competition
Political Geography:
South Korea, United States of America, and European Union

2. EU – Pacific Talks: H2 – Hydrogen Hype

Author:
David Plhák
Publication Date:
03-2022
Content Type:
Special Report
Institution:
Europeum Institute for European Policy
Abstract:
Czechia is in many respects similar to Japan in its limited ability to rely fully on renewables. It is therefore in the interest of Czechia to increase hydrogen imports and its use in the energy mix. In order to ensure a steady supply of hydrogen the gas system operators of Czechia, Slovakia, Ukraine, and Germany launched in 2021 joined initiative to create a Central European Hydrogen corridor in an effort to create a supply of hydrogen from Ukraine. Unfortunately, given the Russian aggression on Ukraine, this project must be stopped, until Ukraine will be free of war again.
Topic:
Climate Change, Energy Policy, European Union, Economy, and Hydrogen
Political Geography:
Japan, Ukraine, Germany, Asia-Pacific, Slovakia, European Union, and Czechia

3. Commercial Space in Europe: A Balancing Act between Physics, Politics and Profession

Author:
KP Ludwig
Publication Date:
06-2021
Content Type:
Special Report
Institution:
Institut français des relations internationales (IFRI)
Abstract:
Satellite constellations have become core elements of the digital transition. Over the next decade, several thousand satellites will have to be launched, to build these constellations. For positioning satellites, preferably in Low Earth Orbit (LEO), reliable and affordable launch services are essential. At the end of 2020, the European Space Agency (ESA) awarded three German space start-ups competing contracts in order to support its small-launch system. One may identify a change in Germany’s space policy, since the ESA Ministerial Council (MC) in Seville in late 2019. Besides supporting programs in its traditional fields of interest, Germany showed a special interest in supporting the Commercial Space Transportation Service acceleration program for the above-mentioned German space start-ups. This report is focused on a technical analysis of the market demands and the special commercial market conditions in LEO. It describes the competitive situation and, especially, the limiting conditions, which may hinder private investors from continuing to support a sound technical solution. These are: the size of the accessible market share, the natural risks of operating complex systems in a hostile environment, and the regulatory hurdles in acquiring formal approval by the authorities. A major factor for the expected business success is and will be the governmental support that the consortia can acquire.
Topic:
Space, Digitization, Satellite, and Airspace
Political Geography:
Germany and European Union

4. Henchman, Rebel, Democrat, Terrorist: The YPG/PYD during the Syrian conflict

Author:
Erwin van Veen
Publication Date:
04-2021
Content Type:
Special Report
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
This report analyses the role of the Syrian Kurdish People’s Protection Units (YPG) and the associated Democratic Union Party (PYD) during the Syrian civil war. The purpose of our research is to obtain a better understanding of the nature, objectives and methods of the YPG/ PYD as a combined paramilitary and rebel force that is involved in a quasi-statebuilding project during an internationalised civil war. We start by examining the critical factors that enabled the swift rise of the YPG: informal arrangements with the Assad regime, support from the Kurdistan Workers’ Party and a pragmatic partnership with the US against Islamic State. This sets the scene for an inquiry into how core YPG strategies to maintain its dominance once it was established – coercive, deal-making, identity and basic service strategies – both shape the group’s behavior and result from its current organization. Finally, we dissect a number of major challenges to future YPG rule, such as its relation with the PKK, intra-Kurdish reconciliation, the US presence in northeast Syria and its interaction with the Arab populations over which it rules. Based on our analysis, we anticipate a scenario of ‘muddling through’ in which unconditional support from the US will continue at current levels, combined with an abiding US military presence. This will provide the YPG/ PYD with a security umbrella against both regime forces and Turkey, continue the status quo of the YPG/ PYD ruling northeast Syria in authoritarian fashion, make the civil war more ethno-sectarian in nature and prolong the conflict. While such a scenario is arguably more attractive for northeast Syria than a return of the regime, it is also unlikely to improve the area’s current underdevelopment. It will keep other external actors, like the EU, away and allow the PKK to continue to take its share of the area’s revenues. The primary audience of the report are Western opinion-, policy- and decision-makers engaged with the Syrian civil war and we hope it will help them to craft policies and initiate interventions that are feasible and appropriate to the situation in northeast Syria.
Topic:
Conflict, Syrian War, and YPG
Political Geography:
Middle East, Syria, United States of America, and European Union

5. Trade Liberalization along the Firm Size Distribution: The Case of the EU-South Korea FTA

Author:
Sonali Chowdhry and Gabriel Felbermayr
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
In 2011, the EU-South Korea Free Trade Agreement (EUKFTA) entered into force. With its focus on non-tariff barriers (NTBs), it is a leading example of a deep new generation agreement. Using detailed French customs data for the period 2000 to 2016, we investigate how exporters of different size have gained from the agreement. Applying a diff-in-diff strategy that makes use of the rich dimensionality of the data, we find that firms with larger pre-FTA sizes benefit more from the FTA than firms at the lower end of the size distribution, both at the extensive (product) and the intensive margins of trade. The latter finding is in surprising contrast to leading theories of firm-level behavior. Moreover, we find that our main result is driven by NTB reductions rather than tariff cuts. In shedding light on the distributional effects of trade agreements within exporters, our findings highlight the need for effective SME-chapters in FTAs.
Topic:
Economics, International Political Economy, Treaties and Agreements, Tariffs, and Trade
Political Geography:
Europe, South Korea, and European Union

6. The Investment Screening Regulation and its screening ground "security or public order": how the WTO law understanding undermines the Regulation's objectives

Author:
Jens Velten
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Centre for Trade and Economic Integration, The Graduate Institute (IHEID)
Abstract:
The EU adopted Regulation 2019/452 (Regulation) as part of a more robust Common commercial policy to strengthen and defend its interests in a shifting global order. More concretely, the Regulation has two objectives: protecting domestic assets from harmful foreign investor interests, and equipping the EU with leverage to achieve more favourable treatment of EU investors abroad. Therefore, the Regulation provides Member States with an option to adopt foreign direct investment (FDI) screening mechanisms on the grounds of “security or public order”. However, the Regulation misses its objectives. The Regulation’s vague screening ground “security or public order” must be interpreted in accordance with WTO law. A detailed analysis finds that the relevant WTO notions of essential security interests and public order are rather narrow. The Regulation’s screening ground “security or public order” therefore only allows the screening of a few, high-profile cases of FDI. Such a narrow scope undermines the Regulation’s objectives.
Topic:
International Political Economy, International Trade and Finance, Foreign Direct Investment, and WTO
Political Geography:
Europe and European Union

7. Primary Dealer Systems in the European Union

Author:
Jenny Preunkert
Publication Date:
06-2020
Content Type:
Research Paper
Institution:
Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo)
Abstract:
States require money to function and therefore every government has to continuously raise new funds. On the financial markets, governments cannot be sure that auctions of their debt will be sufficiently attractive to financial investors, which is why governments usually enter into cooperative agreements with selected banks. The best known and most widespread form of cooperation is the primary dealer system. Primary dealers are banks that agree to participate regularly in government debt auctions and to act as formalized market makers on government debt markets. The article analyzes European primary dealer systems and asks why banks are willing to participate in these systems. I will show that both domestic and foreign banks use their status as primary dealers to build long-term relationships with one or more European governments and to gain an advantage on the global stage. In Bourdieu’s terms, primary dealer banks use their financial capital to accumulate social and symbolic capital.
Topic:
Debt, Economics, International Political Economy, International Trade and Finance, Financial Markets, Banks, and Macroeconomics
Political Geography:
Europe and European Union

8. EASTERN MONITOR: Western Balkans in the fight against the COVID-19: Another cause for democratic backsliding?

Author:
Jana Juzová
Publication Date:
04-2020
Content Type:
Special Report
Institution:
Europeum Institute for European Policy
Abstract:
In her latest Eastern Monitor, Jana Juzová examines the fight of western Balkans countries against the COVID-19. The COVID-19 global pandemic represents an unprecedented challenge for humanity. Across the globe, countries are facing a historical dilemma of stricter security measures aimed to ensure safety of the populations at the cost of fundamental human rights and freedoms. The affected countries across the globe has adopted a wide scale of measures, and as there is no central mechanism for coordination in the health policies even inside the EU, each country approaches the crisis in a different way. Consequently, the policies range from opting for relatively loose ones relying on building up of natural immunity in the population, i.e. in Sweden, to extreme restrictive measures adopted in Hungary, diminishing human rights as well as democracy in the country. The Western Balkan countries’ approach, although differing significantly in each country, belongs among the most restrictive ones. The countries with the highest number of infected persons (relative to the population size) are Serbia, North Macedonia and Montenegro.1 In Montenegro, the situation has worsened in the past few weeks, as the country reported only a very small number at the beginning of the pandemic, and the government started introducing stricter measures, similarly to its neighbours.
Topic:
International Cooperation, COVID-19, and Health Crisis
Political Geography:
Balkans and European Union

9. Understanding EU-MENA Relations: Current and Changing Dynamics

Author:
Przemysław Osiewicz, Alex Vatanka, and Suzanne Kianpour
Publication Date:
02-2020
Content Type:
Video
Institution:
Middle East Institute (MEI)
Abstract:
The relationship between the European Union and the Middle East is facing a critical period of change, given the changing leadership in key European Union bodies, rising tensions with regard to Iran, and increasing confrontation between the United States and Iran. The Middle East Institute is pleased to invite you to a conversation with MEI scholar Przemysław Osiewicz, who will discuss his recently released paper series on the impact of leadership changes in key EU bodies such as the EU high representative for foreign and security policy, the European Commission, and the European Council on EU-MENA relations. He will be joined by MEI Senior Fellow Alex Vatanka and moderator Suzanne Kianpour to explore divergences between the United States and the EU approaches in their policies toward Iran, internal divisions within the EU on engagement with Iran, the role of economic factors, and the future of the JCPOA.
Topic:
International Relations, Security, Foreign Policy, Politics, Geopolitics, and Leadership
Political Geography:
Iran, Middle East, United States of America, and European Union

10. The Trade Effects of the Economic Partnership Agreements between the European Union and the African, Caribbean and Pacific Group of States: Early Empirical Insights from Panel Data

Author:
Frederik Stender, Axel Berger, Clara Brandi, and Jakob Schwab
Publication Date:
01-2020
Content Type:
Special Report
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
This study provides early ex-post empirical evidence on the effects of provisionally applied Economic Partnership Agreements (EPAs) on two-way trade flows between the European Union (EU) and the African, Caribbean and Pacific Group of States (ACP). Employing the gravity model of trade, we do not find a general EPA effect on total exports from ACP countries to the EU nor on total exports from the EU to ACP countries. We do, however, find heterogeneous effects when focusing on specific agreements and economic sectors. While the agreement between the EU and the Caribbean Forum (CARIFORUM), which concluded several years ahead of the other EPAs in 2008, if anything, reduced imports from the EU overall, the provisional application of the other EPAs seems to have at least partly led to increased imports from the EU to some partner countries. More specifically, the estimation results suggest an increase in the total imports from the EU only in the Southern Africa Development Community (SADC) EPA partner countries. On the sectoral level, by comparison, we find increases in the EU’s agricultural exports to SADC, Eastern and Southern Africa (ESA) and the Pacific. Lastly, in the area of manufactures trade, we find decreases of exports of the ESA and SADC countries to the EU, but increases in imports from the EU into SADC countries. While this early assessment of the EPA effects merits attention given the importance of monitoring future implications of these agreements, it is still too early for a final verdict on the EPAs’ effects and future research is needed to investigate the mid- and long-term consequences of these agreements.
Topic:
International Relations, Development, International Cooperation, Regional Cooperation, Treaties and Agreements, Manufacturing, and Trade
Political Geography:
Africa, Europe, South Africa, Caribbean, Asia-Pacific, and European Union

11. China, Italy and COVID-19: Benevolent Support or Strategic Surge?

Author:
Francesca Ghiretti
Publication Date:
03-2020
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
The bilateral relationship between Italy and China is back in the spotlight one year after the signature of the Memorandum of Understanding (MoU) on China’s Belt and Road Initiative. To date, Italy is the second hardest hit country by COVID-19 pandemic after China. Despite strict measures in place to limit the crisis, numbers keep rising, placing the national health care system under severe strain.
Topic:
Health, Bilateral Relations, Foreign Aid, and Propaganda
Political Geography:
China, Europe, Asia, Italy, and European Union

12. From Strategic Autonomy to the Internationalization of the Euro: Europe's Challenges and the Impact of the COVID-19 Crisis

Author:
Nicola Bilotta and Alissa Siara
Publication Date:
04-2020
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
One of the key priorities of the new European Commission is to enhance the EU’s geopolitical credentials and “learn to use the language of power”, as stated by the incoming EU High Representative Josep Borrell. The EU’s ambition is two-fold: to increase the Union’s ability to project power and influence at the global level, including through increased integration and coordination among member states, and secondly to enhance the EU’s strategic autonomy from the US in the political, military and economic domains. Both objectives, ambitious in the best of circumstances, are today under severe strain by the COVID-19 crisis. Implications will be long-lasting and multidimensional, and for Europe, its impact will have a direct bearing on its ambition for strategic autonomy, touching each of the three pillars outlined above.
Topic:
Regional Cooperation, Geopolitics, Economy, Autonomy, and Coronavirus
Political Geography:
Europe and European Union

13. The COVID-19 Pandemic and European Security: Between Damages and Crises

Author:
Alessandro Marrone
Publication Date:
04-2020
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
The COVID-19 pandemic will negatively affect the defence field from a budgetary, industrial and politicostrategic point of view, particularly in Europe. Depending on the pandemic’s duration, its economic consequences and national and EU responses, effects may range from contained damages to a much wider European security crisis.
Topic:
Security, Defense Policy, Crisis Management, and Coronavirus
Political Geography:
Europe and European Union

14. Time for a European Climate and Sustainable Development Bank

Author:
Daniele Fattibene
Publication Date:
04-2020
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
The United Nations’ 2030 Agenda for Sustainable Development stands at a crossroads. While Sustainable Development Goals (SDGs) have progressively entered the political discourse and agendas of numerous states, without long-term financial investments, building a more just and sustainable future will remain little more than a rhetorical embellishment.
Topic:
Climate Change, Development, United Nations, and Sustainable Development Goals
Political Geography:
Europe and European Union

15. Resilience Is Dead. Long Live Resilience?

Author:
Elena A. Korosteleva and Irina Petrova
Publication Date:
04-2020
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
Resilience has recently emerged as a possible solution to address the increasing dysfunctionality of national and global governance, strengthening its ability to deal with the frequenting crises and the adversity of VUCA – the more vulnerable, uncertain, complex and ambiguous – world around us.
Topic:
Politics, International Relations Theory, Institutions, Coronavirus, and Resilience
Political Geography:
Europe and European Union

16. Between God and the Sugar Dates: Lessons for a "Geopolitical" EU from the US–Iran Crisis

Author:
Tommaso Emiliani
Publication Date:
04-2020
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
The killing of top Iranian General Qasem Soleimani by a US drone strike on 3 January 2020, followed by the Iranian retaliation on US military bases in Iraq, left many Europeans wondering how – if at all – the European Union can foster de-escalation in the Middle East. The EU is presently stuck between a deepening strategic rift with its US ally and its inability to advance its independent interests and policies vis-à-vis Iran. It is now clear that Europe cannot protect its relations with Washington while also salvaging the Joint Comprehensive Plan of Action (JCPOA), or Iranian nuclear deal. Borrowing from an old Persian proverb, Europe cannot have both God and the sugar dates.
Topic:
Sanctions, Military Affairs, Trade, Transatlantic Relations, and Coronavirus
Political Geography:
Europe, Iran, Middle East, United States of America, European Union, and Gulf Nations

17. A Tale of Two Unions: Africa, Europe and a Pragmatic Investment in Multilateralism in Times of COVID-19

Author:
Luca Barana
Publication Date:
04-2020
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
The European Commission’s Joint-Communication “Towards a Comprehensive Strategy with Africa”, published on 9 March 2020, envisioned the beginnings of a new and more equal partnership with the African Union (AU).[1] Meanwhile, COVID-19 has had an unprecedented disruptor effect on the world scene. Its impact dramatic and long-lasting, the crisis may also be an opportunity to move beyond policy principles and actually consolidate the EU–AU relationship. The Commission aspires to structure this new course of EU–AU relations around five thematic partnerships and ten actions so as to concretely step up cooperation. A common thread emerging from the Communication is the need to strengthen multilateralism and the rules-based international system.
Topic:
Migration, United Nations, Multilateralism, and Coronavirus
Political Geography:
Africa, Europe, European Union, and African Union

18. COVID-19: Which Effects on Defence Policies in Europe?

Author:
Alessandro Marrone and Ottavia Credi
Publication Date:
04-2020
Content Type:
Special Report
Institution:
Istituto Affari Internazionali
Abstract:
The crisis caused by the COVID-19 pandemic will have consequences on every aspect of the European societies, including the defence sector. The extent to which it will impact the military budgets is heavily discussed, with optimists trusting in slightly decreased investments and pessimists anticipating severe downturns. The fulfilment of NATO capability goals will be at stake, while allies will bring further diversified security needs to the Alliance’s agenda. The EU will have to cope with both pandemic and economic recession for the sake of its own security and stability, without sacrificing the European Defence Fund which could rather be part of a EU-wide plan for industrial and economic re-launch. This report summarizes the main findings of the IAI webinar hold on 8 April 2020 and participated by 22 experts and practitioners from Italy and other European countries.
Topic:
Defense Policy, NATO, Military Spending, Transatlantic Relations, Coronavirus, and Defense Industry
Political Geography:
Europe and European Union

19. Beyond Coronabonds: A New Constituent for Europe

Author:
Nicoletta Pirozzi
Publication Date:
04-2020
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
Every era has its symbols. In 1984, Mitterrand and Kohl held hands on the battlefield in Verdun, coming to symbolise the importance of peace in the pursuit of European integration. Today, in times of COVID-19, the so-called “Coronabonds” could have emerged as the symbol of a new Europe, one that is ready and able to do what it takes to collectively overcome the present crisis. Yet, what some member states consider an indispensable emblem of European solidarity, namely debt mutualisation to face an unprecedented symmetric crisis brought about by COVID-19, is regarded by others as an ultimate excuse for moral hazard. As a result, Europe could end up with a politically more digestible European Fund, as proposed by Commissioners Paolo Gentiloni and Thierry Breton, designed to issue long-term bonds.[1] Or, as outlined by the Eurogroup, a Recovery Fund that is “temporary, targeted and commensurate” to the extraordinary costs of the current crisis, helping to spread them across time.
Topic:
Financial Crisis, Governance, Finance, Economy, and Coronavirus
Political Geography:
Europe and European Union

20. WTO Industrial Subsidy Regulation: US-EU-Japan Joint Statement of January 2020 and Afterwards

Author:
Cheon-Kee Lee
Publication Date:
04-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
On 14 January 2020 the United States, the European Union, and Japan (hereinafter referred to as “US-EU-Japan”) issued a trilateral joint statement, proposing a set of new rules to strengthen WTO regulation on industrial subsidies. While a total of seven joint announcements have been made so far, this is the first time that three WTO Members have presented specific ideas on how to amend existing subsidy rules. Many of the proposed amendments seem to primarily target China’s trade policy and practices. Among the six amendment items proposed in the Joint Statement, it seems that the United States is paying particular attention to the sixth item, i.e. in making explicit the possibility of using the out-of-country benchmark and on introducing necessary requirements to do so in measuring the benefit conferred and, ultimately, in calculating the amount of the countervailing duties (CVDs). Against this backdrop, in this Brief the author analyzes the relevant WTO provisions and GATT/WTO jurisprudence, and discusses various scenarios on future negotiations on WTO Reform on industrial subsidies.
Topic:
World Trade Organization, Economy, Negotiation, Trade Policy, and Industry
Political Geography:
Japan, China, United States of America, and European Union