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1. China’s Digital Silk Road: Outlines and Implications for Europe

Author:
Maria
Publication Date:
02-2025
Content Type:
Policy Brief
Institution:
International Centre for Defence and Security - ICDS
Abstract:
The Digital Silk Road (DSR) is part of China’s Belt and Road Initiative (BRI) that encompasses infrastructure projects, trade and financial agreements, and cultural and defence cooperation with over 140 countries worldwide. Bringing the digital component into the BRI seamlessly advanced Beijing’s ambition of taking a leadership position in the technology sector. The DSR not only speaks across regions but also goes beyond the technology infrastructure, which raises two critical concerns by giving China leverage to advance the digital authoritarian governance model and jeopardizing data privacy. To mitigate these risks and reduce reliance on China, the EU must find alternatives by collaborating with trusted partners and diversifying supply chains. First, the EU can expand its technological landscape and engage nations in the Global South and the Indo-Pacific. Second, it must develop and enforce regulatory mechanisms to prevent Chinese state agencies from misusing sensitive data.
Topic:
Science and Technology, Infrastructure, European Union, Belt and Road Initiative (BRI), Information Technology, and Digital Silk Road (DSR)
Political Geography:
China, Europe, and Asia

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 Role of the Consumer and Systemic Policy Mixes for Circular Business Models in the EU

Author:
Hanna Fuhrmann-Riebel
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Recent decades have shown an unprecedented growth in demand for resources, with a trend that is projected to accelerate in the future. Policymakers around the world have started to recognise that transitioning to a more resource-efficient and circular economy (CE) is key to addressing this challenge. Two important enablers for the transition to a CE are circular business models (CBMs) and consumers. The two are interlinked, as demand shifts among consumers can foster the development and supply of new business models, which in turn require the uptake by consumers to be successful. To promote the development and increase the uptake of new CBMs, policymakers need to provide the respective regulatory frameworks and incentives. Doing so requires systemic policy mixes that go beyond encouraging technological innovations and include targeting the demand side as well. This paper zooms in on the role of the consumer for CBMs, discusses potential consumer barriers to CBM demand, and outlines how policy-making can address these barriers by applying systemic mixes of instruments to tackle the macro-, meso-, and micro-level factors that influence consumer demand simultaneously. While the macro-level describes the economic context of consumers’ decision-making, that is, the availability and supply, infrastructure and price of CBMs in the market, the meso-level characterises the social environment, including social norms and social status, whereas the micro-level focuses on individual characteristics such as consumption habits, security and quality concerns, and environmental knowledge or concern. This paper illustrates how the different consumer barriers are closely interlinked, and that, ideally, policymakers should target all three levels jointly to encourage CBM demand most effectively. In doing so, policymakers should consider the principles of the waste hierarchy in order to maximise the environmental benefits of CE policy mixes. The paper mostly takes a European perspective on the topic, especially when discussing relevant policy frameworks, and reflects on potential differences to other regions, particularly in the Global South, when appropriate
Topic:
Development, European Union, Business, and Economic Growth
Political Geography:
Europe

12. A New Security Order for Europe

Author:
Pierre Vimont
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
Europe's security order has collapsed in the wake of the Ukrainian conflict. The very idea of rethinking this particular European framework raises doubts when faced with a Russian regime unable to admit the futility of its imperial dream. However, Europeans cannot afford not to think about the future of stability in Europe in response to the Russian question, which has been troubling our continent for too long[1]. Vladimir Putin's decision to invade Ukraine has put an end to the European security order as it was established in 1975 in Helsinki. By launching his "special military operation", the Russian President has gutted the whole edifice that had lasted as well as it could since its foundation.
Topic:
Defense Policy, European Union, Regional Security, and Russia-Ukraine War
Political Geography:
Europe

13. The German 'Schuldenbremse' crisis: a symptom to be taken seriously in Europe

Author:
Clara Bösche
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
The priority to be given to the ecological transition and its practical implementation are dividing Germany and Europe. The European Union is being accused of making the conditions of production for farmers even more difficult: the number of demonstrations across the European Union has been rising after the Germans began their protests on 15 January 2024, as they denounced the ambitions of the European Green Deal, as well as the human and financial costs. At the start of 2024, the German coalition government (SPD, Greens and FDP Liberals) led by Chancellor Olaf Scholz (SPD) is struggling, since its draft budget has been cut by around €60 billion. The origins of the budget cuts to which the government has had to resort lie in a decision taken by the Constitutional Court of Karlsruhe dated 15 November 2023. The latter censured the decision to reallocate 60 billion €, initially intended to cushion the economic impact of the pandemic crisis, to a special fund for the transformation of the economy and the climate. For two months now, opposition has been growing in Germany over the resources allocated, the priorities to be defined and the rules governing public debt. The constitutional appeal was lodged by CDU-CSU members of parliament, who denounced the government's "sleight of hand". As Germany enters a recession, the debate is whether or not it is still appropriate to limit public debt to 0.35% of GDP. Current circumstances no longer justify bending the rule: the pandemic crisis is over, and the exceptional funds earmarked should not be used for the economy or the environment. As a result, since the Constitutional Court's ruling against the federal budget, in addition to opposition over the priority to be given to the green transition in economic and agricultural life, further opposition has emerged: regarding whether the constitutional principle of the debt brake (Schuldenbremse) should be reformed or not. This principle is firmly defended by Friedrich Merz, leader of the CDU and of the CDU/CSU in the Bundestag. In his view, the debt brake is the only way to avoid saddling future generations with debt, and he fears that lifting it might have a knock-on effect in terms of the financial stability of other European Union countries. Within the government, the SPD and the Greens (led by the Vice-Chancellor and Minister for the Economy, Robert Habeck), would like to reform the debt brake to facilitate the necessary investments, in line with the European Green Deal. However, within the same government, the FDP Liberals, led by Finance Minister Christian Lindner, have long refused to challenge this constitutional principle, in the same way as the CDU/CSU opposition. Christian Lindner is therefore in a difficult situation, caught between traditional positions, his coalition partners and the opposition. A hard-won agreement on the 2024 budget, on 13 December 2023, provides for cuts that will result, in particular, in the reduction of tax relief on diesel on agricultural machinery - the main focus of demonstrations in Germany – but also in a postponement of the “climate bonus”. Priorities have had to be set because of this cutback, but they are the source of dissatisfaction both on the part of the farmers, as well as the promoters of the European Green Deal. The debate on Germany's levels of debt, in the light of the demonstrations now rocking the country, is further weakening the coalition - the aim in this paper is not to take position on this - but above all, to consider the problem of the priorities to be identified, not only in Germany but also in Europe.
Topic:
Budget, European Union, Tax Systems, and Green Transition
Political Geography:
Europe and Germany

14. Ukraine's European Aspirations

Author:
Myroslav Marynovych
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
Ukrainians have always been aware of the fact that they belong to the European cultural sphere. As Serhiy Plokhyi, professor of Ukrainian history at Harvard University, points out, "...times change, ideologies change - liberalism is replaced by national-communism... or the idea of human rights emerges. But Europe remains a constant as an example of that something else that is par excellence necessary for the survival of the Ukrainian national project." Before Ukraine was absorbed by Muscovy in the 17th century, the fact that Ukrainian lands were then part of the Rzeczpospolita (Polish-Lithuanian Commonwealth) opened up a natural cultural window onto Europe. It was thanks to this lively cultural exchange (albeit not without its problems) that “Ukrainian Baroque” yes amongst other trends, came to be. However, once Ukraine became part of the Russian Empire, new ideas from Western civilisation only reached Ukraine by way of the Russian language, thereby condemning Ukrainian culture to secondary status. Politically, as an independent subject, Ukraine simply disappeared from European consciousness. The emergence of an independent Ukraine in 1991 offered Ukrainians new opportunities to re-establish direct cultural and political contacts with Europe. Immediately, the need to "return to Europe" emerged in Ukrainian public debate. Politically, this had an initial consequence: Ukraine found itself at the end of a fairly long queue of states waiting to join the European Union "club". It was assumed that these states would join as they went along (legislative reforms, economic modernisation, the fight against corruption, etc.). It was not all plain sailing, nor was it without its pitfalls, but the vector of the European vocation (and accession to the European Union) in Ukraine's development was undoubtedly the most powerful, even if it was rivalled by the attachment of eastern Ukrainians to Russia's cultural and political landscape. The impact of Russia's large-scale aggression against Ukraine, which began on 24 February 2022, primarily affected the pro-Russian part of the country. It is members of this population who now constitute the majority of refugees and displaced persons. It is their vision of the world that has been turned upside down against a backdrop of atrocities and genocidal crimes committed by the Russians. Accession to the European Union and NATO has therefore become the sine qua non of Ukraine's aspirations, as confirmed by several documents of national importance. In addition to historical memory and purely cultural preferences, security priorities are now clearly visible. Ukraine has begun to implement the European Union’s recommendations and to adapt its legal framework to that of Europe. Any campaign against European integration, or simply questioning the need for it, would be perceived by Ukrainian society as a betrayal of national interests. Recently, however, opinions within the European Union have diverged somewhat. Alongside those States that were shocked by the brutality of the Russian aggression and have declared their solidarity with the Ukrainian people and their willingness to accept our country into the Union, there are also States such as Hungary and Slovakia that consider Ukraine's accession to the European Union to be premature, or even wrong. We can be both optimistic and pessimistic. Optimistic, because European leaders and the majority of Member States are increasingly in favour of Ukraine's accession. Pessimistic, because the chances of Ukraine's accession remain slim as long as the European Union retains its current decision-making rules. As war continues, the reactions of Ukrainian society to the reticence of Hungary and Slovakia and to the blocking of the borders by Polish, Slovakian and Romanian farmers have remained discreet. Ukrainians are aware that their country's accession to the European Union would be a long-term solution, and that a certain amount of restraint is therefore advisable. However, since nobody knows the future, in unfavourable circumstances, resentment and therefore rancour might erupt in Ukrainian society. This is why it would be useful to examine this situation not only from the point of view of the formal concordance of conflicting economic and political interests, but also from a broader perspective.
Topic:
European Union, Regional Integration, and Russia-Ukraine War
Political Geography:
Europe and Ukraine

15. The BRICS, a geopolitical challenge overlooked by the European Union

Author:
André Gattolin and Emmanuel Véron
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
Over the last five years, geopolitical considerations have taken an unprecedented place on the European Union's agenda. Its foreign policy, long in its fledgling stages, is finally beginning to take shape, even if it is still subject to the unanimous decisions of its Member States. The days when trade policy was the only real lever for European foreign policy are over. The increasing bluntness of international relations is obviously no surprise to Europe's still tentative geopolitical awakening. The European Union's foreign policy has many potentially dangerous blind spots. One of the most striking of these 'omissions' concerns the BRICS and their rapid development over the last three years. Launched in 2009, this informal forum of four major emerging countries (Brazil, Russia, India and China), which was enlarged to include South Africa in 2011 and now includes ten countries, still seems to escape the attention of the European Union. Over the last fifteen years, official European Union documents dealing with this grouping can be counted on the fingers of one hand. More descriptive than analytical, they are a long way from outlining a European position on this significant group of countries.
Topic:
Development, European Union, Geopolitics, Trade, and BRICS
Political Geography:
Europe

16. The Defence of Europe by Europeans: a myth, a necessity, an ambition, a hope?

Author:
Jean-Paul Palomeros
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
Without overstating the case, 2024 is shaping up to be a pivotal year. It has already been marked not only by the continuation of ongoing conflicts and crises, but also by their geostrategic effects and consequences, the full extent of which has yet to be assessed. 2024 will also be a year of great memorable moments and electoral events, a year of risks and, let's hope, opportunities, particularly for Europe. Like a leitmotif, or for some an “old chestnut”, European defence will be the focus of analysis, but also of a real stress test. With this in mind, it cannot be too early to raise a question that is vital to the future of Europe, and the European Union in particular.
Topic:
Security, Defense Policy, and European Union
Political Geography:
Europe

17. 2024, a European political year - through the eyes of women

Author:
Stefanie Buzmaniuk
Publication Date:
03-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
In 1906, Finland became the first country in Europe to grant women the right to vote, with the adoption of universal suffrage, at the same time as it won its autonomy from the Russian Empire. The following year, Finnish women were able to exercise this right in the general elections. Throughout the twentieth century, women in Europe and around the world fought long and hard to gain the right to vote without any additional conditions to those required of men. In some countries, only widows were allowed to vote as a first step towards electoral emancipation (in Belgium, for example, until 1921). In other countries, such as Bulgaria, the right to vote was initially reserved for mothers of legitimate children and exclusively for local elections. In Portugal, only women with a university degree were allowed to vote from 1931 on. In Spain it was not until post-Franco democratisation and the 1976 elections that Spanish women regained the right to vote, initially acquired in 1931 before the civil war. This year France is celebrating the 80th anniversary of women gaining the right to vote. Cypriot women won the right to vote at the same time as their male counterparts when the Republic was created in 1960. This can be explained quite simply by the fact that, at that time, such discrimination could no longer be justified. So, it took a good part of the twentieth century to get there... In European countries, legislation on the right to vote and stand for election now recognises equal access for women and men. However, their participation in political life is still marked by significant differences and major obstacles that we believe are unjustified. Women are still less represented on the political stage, even though they make up more than half of the population. In the European Union, there are ten million more women than men. This is a fact that deserves our attention in 2024, a year that is notable for its electoral importance, with the election of representatives to the European Parliament scheduled for 6 to 9 June. There will also be five presidential elections and six parliamentary elections in the Member States. This therefore provides a good opportunity to examine the position of women on the European political scene and the obstacles that still exist behind the scenes preventing them from participating fully in political life.
Topic:
Public Opinion, Elections, European Union, Women, and Regional Politics
Political Geography:
Europe

18. Agriculture: an adjustment variable in trade agreements?

Author:
Nicholas-Jean Brehon
Publication Date:
03-2024
Content Type:
Commentary and Analysis
Institution:
Robert Schuman Foundation (RSF)
Abstract:
SUVs versus limousines? Cows, not cars! What if agriculture, and livestock farming in particular, were the adjustment variable in international trade negotiations being conducted - discreetly - by the European Union? What are we to make of the much-heard argument raised at the agricultural blockades?
Topic:
Agriculture, Treaties and Agreements, European Union, and Trade
Political Geography:
Europe

19. Has the time come for European defence?

Author:
Maxime Lefebvre
Publication Date:
04-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
European defence has been a key issue since at least 1948, with the Treaty of Brussels between France, the United Kingdom and the three Benelux countries. At the time, the spirit of the signatories was still to guard against the threat posed by Germany, which was still fresh in people's minds (following on from the Franco-British alliance treaty of Dunkirk in 1947). But it was also increasingly aimed at responding to the threat of the USSR, which was tightening its iron grip on the eastern half of the European continent. As we know, this treaty was soon superseded by the Washington Treaty creating NATO, which is still, to this day, the political and military framework for European defence, coupled with that of the United States. Although the Brussels Treaty eventually disappeared, it survives, notably through the collective defence clause incorporated into the European treaties by the Lisbon Treaty. The idea, the project and the hope of a European defence are still alive, although they have not yet been realised. The war in Ukraine has changed the situation in several ways. Firstly, it places the question of war and peace firmly centre stage in Europe, an issue that had never completely went away, despite the end of the Cold War; however, it is now back at the top of the political agenda. Secondly, the war has led to profound unity in the response of the countries of the European Union to Vladimir Putin's open aggression against Ukraine, and the European Union has asserted itself as a major player complementing NATO and the United States. Finally, it raises the question of whether, should the United States change its policy on Ukraine following the presidential election in November 2024, Europeans would be in a position to take over assistance to Ukraine and move towards a genuine collective defence. To address this issue, it is necessary to take stock of European defence, with its achievements and limitations, and to reflect on the conditions under which a shift towards a genuine European defence could be envisaged.
Topic:
Defense Policy, Treaties and Agreements, European Union, and Russia-Ukraine War
Political Geography:
Europe

20. Health for the Europeans, who cares?

Author:
Tiphaine Maloingne
Publication Date:
04-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
The European Union adapts, moves with the times, and evolves. It is these small steps, often made in response to events, that help the European Union to move forward and create the "common narrative" that has kept it solid for 74 years. For several years now, the EU has been working to strengthen its health policy. In other words, the European Union is gradually building a new common narrative: European health. But in the gradual creation of this policy, what place is given to European citizens and their health? Through considerations that are at once temporal, justificatory, technical and imaginary, this paper offers readers an overview of the contours of a new health system for Europeans.
Topic:
Health, European Union, Citizenship, and Healthcare System
Political Geography:
Europe

21. The European Union enlarged from 27 to 36 members? Towards an "Agenda 2030"

Author:
Pierre Mirel
Publication Date:
04-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
The Western Balkans today still confirm Bronislaw Geremek’s premonition in 1990: "Three dangers lurk in the post-communist transition: populism, authoritarian temptation and nationalism.” These three tendencies are converging in ethno-nationalisms that are stalling the process of stabilisation and association of the six countries with the European Union. The pursuit of the rule of law is being made all the more difficult because the Balkans are growing poorer while the European Union is getting richer. In the east, association with Ukraine and Moldova has progressed, but the Russian occupation continues. Russia has shattered the international legal order with its aggression in Ukraine and is fighting against the values that Europe promotes and whose echoes resonate in the Balkans. The European Union has responded by reviving the accession process with the Balkans and by opening negotiations with Ukraine and Moldova, and perhaps in time it will do the same with Georgia. The complexity of this dual commitment, which would see the European Union grow from 27 to 36 members, requires that its many challenges be openly set out in an "Agenda 2030", with gradual integration forming the core of a renewed process.
Topic:
European Union, Regional Integration, and Regional Politics
Political Geography:
Europe

22. New European Challenges: the "Schuman" lesson

Author:
Jean-Dominique Giuliani
Publication Date:
04-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
Since the health crisis, the European Union has changed. Since the Russian war in Ukraine, these changes have accelerated, to the extent that the face it presents today bears little resemblance to what it was just five years ago. The European institutions have had to adapt to the needs expressed by the Member States. They themselves have drawn their own conclusions from the changing geopolitical situation. These upheavals have led to spectacular advances, but also to some mistakes.
Topic:
European Union, Geopolitics, Crisis Management, Institutions, and COVID-19
Political Geography:
Europe

23. EU's “Open Strategic Autonomy” and its Implications for Korea

Author:
Youngook Jang
Publication Date:
03-2024
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
This brief explores the shifting global trade landscape characterized by weakening globalization and rising protectionism, exacerbated by events such as the US-China trade disputes, COVID-19 pandemic, and Russia's invasion of Ukraine. It discusses how these factors have prompted a trend towards 'Open Strategic Autonomy' (OSA) in the European Union (EU), as evidenced by newly suggested industrial and trade policies. The EU's experiences during the pandemic and energy dependence on Russia have emphasized the need for resilient supply chains. The analysis draws from Jang et al. (2023) to examine how the EU's OSA has evolved in response to these changes, offering insights for policy implications for Korea.
Topic:
European Union, Trade, Supply Chains, Strategic Autonomy, and Russia-Ukraine War
Political Geography:
China, Asia, South Korea, and United States of America

24. Open-Door Country: The Place and Role of Georgia

Author:
Maxime Gauin
Publication Date:
04-2024
Content Type:
Journal Article
Journal:
Baku Dialogues
Institution:
ADA University
Abstract:
The formal award of official EU candidate country status to Georgia in December 2023, the ArmeniaGeorgia agreement of January 2024, and the warm Turkish-GeorgianAzerbaijani meeting in March 2024 confirm and even reinforce the singular position of Georgia in the South Caucasus. This essay examines the origins and current aspects of the place and role occupied by Tbilisi in the region, and how this has come to be seen as an advantage by the most relevant external players. Georgia is the ‘open-door country’ of the Silk Road region.
Topic:
History, European Union, Geopolitics, and Regional Politics
Political Geography:
Georgia and South Caucasus

25. The Regional Security Complex Theory and Energy Triangle of EU-TurkeyRussia

Author:
Mehmet Ferhat Fırat
Publication Date:
01-2024
Content Type:
Journal Article
Journal:
The Rest: Journal of Politics and Development
Institution:
Centre for Strategic Research and Analysis (CESRAN)
Abstract:
This study explores the application of the regional security complex theory (RCST) to the energy relations between the European Union (EU), Russia, and Turkey. It underscores the critical role of energy security in shaping international relations and highlights the mutual interdependence among these actors in the energy issue. The study sheds light on the impact of the Russia-Ukraine war on energy security and emphasizes the need for diversification of energy sources to reduce dependency on Russian natural gas. Turkey's active and neutral policy with Russia has formed a security complex in energy relations among these three actors. The claim that shared concerns or threat perceptions among actors assumed by the regional security complex theory constitutes a security complex has been used within the framework of this study to justify the existence of an energy security complex between Turkey, Russia, and the EU. Furthermore, given its strategic geographical position and energy infrastructure projects, this research outlines Turkey's potential as a critical isolator actor and energy hub in the region. Overall, this study offers valuable insights into the complex dynamics of energy relations and the evolving regional energy security landscape in the EU-Russia-Turkey triangle.
Topic:
European Union, Regional Security, Energy Security, and Natural Gas
Political Geography:
Russia, Europe, and Turkey

26. Defining Peace: A content analysis of Brazil's, China's, and the European Union's discourses on the Ukraine War

Author:
Luis Gouveia Junior
Publication Date:
01-2024
Content Type:
Journal Article
Journal:
The Rest: Journal of Politics and Development
Institution:
Centre for Strategic Research and Analysis (CESRAN)
Abstract:
Since the beginning of the Russian invasion of Ukraine in 2022, many political leaders have vowed to settle this conflict. Although Brazil, China, and the European Union were among these voices, some have accused these international actors of propelling the war. This study offers a content analysis of the speeches proffered by Lula da Silva, Ursula Von der Leyen, and Xi Jinping, the political leaders of these three actors. This analysis concluded that Ursula Von der Leyen mentions peace fewer times, accounts solely for Russia’s responsibility for the war, and presents a perspective akin to International Relations neoliberal theory. Meanwhile, Lula da Silva provides some views closer to Johan Galtung’s theories. Nevertheless, the Brazilian president does not clearly explain the beginning of the war, affirming that negotiation is the pathway to peace. Finally, Xi Jinping stresses his Global Security Initiative and avoids calling “war” what is happening in Ukraine.
Topic:
International Relations, European Union, Peace, Russia-Ukraine War, and Discourse Analysis
Political Geography:
Russia, China, Europe, Ukraine, and Brazil

27. 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

28. NATO's New Ambitions for Space

Author:
Béatrice Hainaut
Publication Date:
04-2024
Content Type:
Policy Brief
Institution:
Institut français des relations internationales (IFRI)
Abstract:
Ahead of Russia's invasion of Ukraine, a devastating cyber attack targets Ukrainian army communications, exposing Western dependence and vulnerability to space technologies, and calling NATO's defensive posture into question. The longevity of the organization, which celebrates its 75th anniversary in 2024, is partly due to its ability to adapt to the international context. The war in Ukraine has undoubtedly strengthened its legitimacy and attractiveness. The massive use of space applications in Ukraine raises the question of the role of the Atlantic Alliance in providing space data and services to its member states: it does not have its own space capabilities, but its deterrence posture includes space. By equipping itself with a solid documentary corpus, space-focused centers, and access to national capabilities, the Alliance seeks to implement its vision of space as a theater of operations. This theater of operations aims at the integration and interoperability of the space assets of the various member states. For now, these are primarily American capabilities. NATO's space ambition then poses to the states the question of mobilizing financial and human resources. Moreover, deeper cooperation between NATO and the EU could presumably allow for the pooling of efforts.
Topic:
NATO, Science and Technology, European Union, Cybersecurity, and Russia-Ukraine War
Political Geography:
Russia, Europe, North America, and Space

29. Germany’s Strategy on Climate Foreign Policy: Balancing Sustainable Development and Energy Security

Author:
Jeanette Süß
Publication Date:
03-2024
Content Type:
Case Study
Institution:
Institut français des relations internationales (IFRI)
Abstract:
With the war in Ukraine, Germany’s “traffic light” coalition government has had to adapt its climate policy to the upheavals caused by this war, which has turned its economic, energy, and military model upside down. Against a backdrop of high energy costs and increasing calls for reshoring in Europe, German industry is looking at how to maintain its competitiveness while decarbonizing its industry. To combat climate change and find new forms of energy cooperation that are more sustainable for the planet, the federal government has set up a Strategy on Climate Foreign Policy bringing together its collaborative actions with partner countries. Climate, energy, and development partnerships play a vital role in this context, and emerging countries are key partners for climate initiatives. They have a high demand for energy and exploit resources, though without always respecting environmental, social, and governance standards. Their renewable energy (RE) production potential is significant, and there are major opportunities for CO2 reduction thanks to modernization technologies that Germany is seeking to transfer to its partners. To this end, Germany is using a multitude of diplomatic tools and is leveraging a unique network of international agencies, chambers of commerce and climate finance players.
Topic:
Climate Change, European Union, Sustainable Development Goals, Renewable Energy, and Energy
Political Geography:
Europe and Germany

30. When Life Gives You Lemons: How EU Citrus Standards Can Limit Trade

Author:
Trinity Johnson
Publication Date:
04-2024
Content Type:
Journal Article
Journal:
Journal of Public and International Affairs (JPIA)
Institution:
School of Public and International Affairs (SPIA), Princeton University
Abstract:
In the early 2000s, the European Union (EU) created multiple standards on agricultural imports. This paper focuses on the effect of stricter maximum residue limits (MRLs) for pesticides on citrus fruit exports to the EU after the limits went into effect in 2005. Using a regression model on overall citrus fruit exports and an interaction term for country-level income, the data shows that the EU’s stricter MRLs hurt exports from high-income, lower-middle-income, and low-income countries. Exports from low-income countries declined the most after 2005, while only upper-middle-income countries saw an increase in exports. For product-specific models, low-income countries saw a reduction in exports to the EU for all citrus fruits, while results varied by fruit for other income classifications. The results of these models demonstrate that the EU’s tightened pesticide regulation hurt low-income countries the most. While the regulation is meant to maintain a standard of food quality in the EU, its impact on low-income countries raises important questions about the unintended effects of import regulations. The EU could maintain its quality of food while alleviating the burden on low-income countries by relaxing its MRL standards or by providing more assistance to developing nations to meet its standards.
Topic:
Agriculture, European Union, Regulation, and Imports
Political Geography:
Europe

31. Tunisia’s Transformation Into a Transit Hub: Illegal Migration and Policy Dilemmas

Author:
Hamza Meddeb and Fakhreddine Louati
Publication Date:
03-2024
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Due to structural economic, climate, and social crises in the Sahel, Tunisia has emerged as a key transit point for sub-Saharan African migrants and asylum seekers aiming to reach Europe. This has fueled a migration economy in Tunisia. Caught between Tunisia’s attempts to leverage migration to pressure the European Union (EU) on the one hand and the EU’s securitization of migration on the other, sub-Saharan African migrants find themselves trapped in a complex web of challenges.
Topic:
Migration, Politics, Reform, European Union, and Crisis Management
Political Geography:
North Africa and Tunisia

32. Charting the Radical Right’s Influence on EU Foreign Policy

Author:
Rosa Balfour and Stefan Lehne
Publication Date:
04-2024
Content Type:
Special Report
Institution:
Carnegie Endowment for International Peace
Abstract:
The political landscape in the European Union (EU) is changing rapidly. For decades, the traditional mainstream parties of the center right and center left have been losing ground, while antiestablishment parties have been gaining support. According to research by the University of Amsterdam, 32 percent of voters opted for antiestablishment parties in 2021, up from 12 percent in the early 1990s.1 Radical-right parties make up about half of this share, and their support has risen faster than that of any other group. Many of the fourteen parties examined in this study have achieved vote shares of 20 percent or more. The radical right is now in government, or supports the government, in Finland, Hungary, Italy, Slovakia, and Sweden. In the Netherlands, it is likely that Geert Wilders’s Party for Freedom (PVV) will be part of a governing coalition. In other countries, these parties have become the leading opposition groups. In France, Marine Le Pen’s National Rally (RN) has been carefully preparing to win the 2027 presidential election. Setbacks for the radical right in Poland and Spain in the second half of 2023 have shown that the relentless rise of these parties is not a foregone conclusion. However, current polling for several national elections and the June 2024 European Parliament elections indicates a strong likelihood of their continuing electoral success.2 Chega (Enough), a recently established party that shot to 18 percent of the vote in Portugal’s March 2024 election, ended the country’s exceptionalism as one of the few European nations without a right-wing populist party.3 The June 2024 Belgian federal election may see the Flemish nationalist party Vlaams Belang (Flemish Interest), which so far has been strong in Flanders but kept out of national politics, break through at the federal level. Polling for Austria’s September 2024 parliamentary election suggests a surge in support for the Freedom Party of Austria (FPÖ).4 In contrast with populism, which has a thin ideology focused mainly on fomenting the anger of the so-called pure people against corrupt elites and which has risen on both the left and the right of the political spectrum, the radical-right parties of the 2020s have a more distinct ideological profile.5 All have national specificities, such as rural origins in Northern Europe or ethnonationalism in Central Europe. Several parties are rooted in postwar fascism, such as the FPÖ, RN, Brothers of Italy (FdI), the Alliance for the Unity of Romanians (AUR), and the Sweden Democrats (SD). For some groups, strong connections with society and well-developed party structures compensated for their marginal impact in national politics. Before its landslide victory in Italy’s 2022 parliamentary election, support for FdI hovered at around 5 percent, as it did for the party’s predecessor throughout the period since World War II.6 Other parties, such as Hungary’s Fidesz, gained ground as classic populist or even mainstream parties and benefited from an aura of respectability even as they shifted toward ethnonationalist or nativist positions. Since the 1990s, liberal-democratic parties have started to adopt some of the ideas of the radical right while keeping the parties themselves out of government. In the 2000s, the radical right became normalized, in some countries becoming part of the political mainstream. During this process, as political scientists Cas Mudde and Jan-Werner Müller have argued, liberal-democratic parties have shifted toward the radical right in the hope—mostly in vain—of keeping their traditional electorates. Yet, in practice, this approach has led voters to prefer the real radical right to its imitators. In other words, the tactic of chasing the radical right has not paid off electorally. Voters have moved toward the radical right as a consequence, not as a cause, of liberal-democratic parties’ attempts to contain it.7 Today, the far right is dominated by the radical right, which, unlike the extreme right, accepts the essence of democracy but rejects its liberal elements: minority rights, the rule of law, and the separation of powers.8 The radical-right parties selected for this study all share deep antimigration sentiments, often determined by race or religion; a nationalism that makes these parties Euroskeptic and opposed to what they see as a Brussels-based dictatorship; and skepticism of climate change policies. Many of these parties also espouse deeply conservative family values that go against women’s and LGBTQ rights. Foreign policy is usually not the strong suit of these parties, apart from their keen interest in the external dimension of migration policy. These parties pay close attention to Russia’s aggression against Ukraine but are sharply divided on this issue, with positions ranging from deep mistrust of Russia to close alignment with the Kremlin’s arguments. A future Donald Trump administration could lead to new divisions in the EU, as some member states are likely to align with the United States under any circumstances. This would mean that many of the EU’s current foreign policy positions, such as support for Ukraine, would come to an end. As radical-right parties rise to prominence at the national and the EU level, they are developing views on a range of foreign policy issues, building increasingly influential international networks and think tanks, and learning from each other’s successful tactics in solidifying their control of the state and propagating their values.9 For some radical-right parties that have been established in government, such as Fidesz and, until October 2023, Poland’s Law and Justice (PiS) party, the upgrading of foreign policy on their political agendas can be inferred by the fact that all diplomatic postings in the EU are political appointments. Hungary’s foreign policy machinery is under the direct control of the prime minister.10 Diplomatic colleagues of the Hungarian representatives in Brussels know that the country’s negotiating positions are micromanaged in Budapest.11 Other countries, such as Italy and Finland, have chosen to rely on the credibility of career diplomats to navigate the Brussels machinery, preferring compromise over confrontation and isolation. For a long time, European politicians and EU institutions have assumed the radical right could be contained. Now, the challenge of the radical right needs to be addressed more seriously. Just as this phenomenon has eroded democracy and the rule of law in some EU member states, so foreign policy may become affected at a time when collective action is most needed to address international issues. As the radical right challenges the EU’s attempts to navigate a dangerous world, European politics can no longer afford complacency.
Topic:
Security, Foreign Policy, Migration, European Union, Democracy, and Far Right
Political Geography:
Europe, France, and Germany

33. EU-LAC inter-regionalism as a driver to achieve the environmental Sustainable Development Goals

Author:
Bruno Theodoro Luciano and Miguel Ayuso
Publication Date:
12-2024
Content Type:
Journal Article
Journal:
Revista Brasileira de Política Internacional (RBPI)
Institution:
Instituto Brasileiro de Relações Internacionais (IBRI)
Abstract:
This article assesses how environmental issues have been incorporated into the strategic association between the European Union and Latin America and the Caribbean. It analyses whether the 2030 Agenda and the Sustainable Development Goals are reflected in the EU-CELAC declarations, and what bi-regional programmes and projects have been developed in relation to the environmental SDGs. The analysis shows how the environment has become a key priority in both the political dialogue and development cooperation pillars, although it has only recently been included in the trade pillar, and in an incipient way.
Topic:
Environment, European Union, Sustainable Development Goals, Regional Integration, and Trade
Political Geography:
Europe

34. The EU’s Response to the Gaza War Is a Tale of Contradiction and Division

Author:
Martin Konečný
Publication Date:
01-2024
Content Type:
Journal Article
Journal:
Cairo Review of Global Affairs
Institution:
School of Global Affairs and Public Policy, American University in Cairo
Abstract:
Since the Hamas attacks on October 7 and the start of Israel’s retaliatory offensive in the Gaza Strip, European Union (EU) member states have broadly split into three camps. At one end are those who have professed to stand “on the side of Israel”, flying its flag on government buildings, backing its military campaign, and avoiding criticism even after the Israeli army flattened most of Gaza and killed thousands of Palestinian civilians. The Czech Republic, Austria, and Hungary stand out in this camp, followed by Germany. At the other end of the spectrum are governments that proclaim to stand “on the side of peace” and, while strongly condemning Hamas, have been calling for a ceasefire and openly criticizing Israel for violating international humanitarian law. Belgium, Spain, and Ireland are the most vocal members of this moderate camp, followed by France and several others. The third, middle camp, is made up of those who are somewhere in between the first two groups: siding with Israel but in less absolute terms than the first camp. It would be wrong to label the moderate camp as “pro-Palestinian”. The fact is that there is no pro-Palestinian camp at the level of EU governments: none of them has hoisted Palestinian flags or primarily condemned the Israeli occupation or its devastating Gaza offensive, as many countries in the so-called Global South have done. The only vocal exception may be Spain’s Deputy Prime Minister Yolanda Díaz of the leftwing Sumar party who has denounced “Israeli apartheid” and called for sanctions and an arms embargo against Israel. However, her statements do not represent the position of the government as a whole.
Topic:
European Union, Hamas, Israeli–Palestinian Conflict, and 2023 Gaza War
Political Geography:
Europe, Middle East, Israel, Palestine, and Gaza

35. The inflation surge in Europe

Author:
Patrick Honohan
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
For most of the decade before the COVID-19 pandemic, undershooting rather than overshooting had been the main inflation problem of the European Central Bank (ECB). During 2020, consumer prices in the euro area were falling; by the end of that year, average inflation since the introduction of the euro two decades earlier stood at only 1.6 percent per year. Things began to snowball in 2021. The 12-month inflation rate steadily accelerated. It reached double digits in the final quarter of 2022—more than twice the level it had ever reached since the euro’s introduction in 1999. Four striking features emerge from a review of the unexpected surge in European inflation since 2021: (1) The ECB’s monetary policy response lagged behind that of the US Federal Reserve, reflecting the more gradual evolution of inflation in the euro area and its distinct pattern of causes; (2) the range of inflation rates across different euro area countries has been unprecedented. This largely reflects the differential impact of war-related energy shocks (especially for natural gas piped from Russia) as well as the differential fiscal response by national governments partially insulating consumers from these shocks; (3) not all households were net losers from the inflation, with some benefiting from the fact that inflation reduced the real value of their indebtedness; and (4) the speed with which inflation was returning toward target during 2023 prompted concerns that the ECB’s monetary tightening might have been pushed too far, prolonging the output slowdown.
Topic:
Monetary Policy, European Union, Inflation, and COVID-19
Political Geography:
Europe

36. Climate action: Implications for factor market reallocation

Author:
Robert Z. Lawrence
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
This paper considers climate policies, not from the perspective of their environmental impacts, but rather their likely effects on labor and investments. While the aggregate impact of the green transition on jobs and investment may be modest, it will require significant reallocation of labor and capital within and across industries. Although the green transition brings new opportunities for employment and investment in renewable technologies, many workers and communities tied to the fossil fuel industry may not benefit from these advances due to skills mismatch and geographic constraints. Both the United States and the European Union acknowledge the importance of achieving “climate justice” and “leaving no one behind” in their decarbonization efforts. However, current policies and resources in the United States may fall short, with inadequate assistance reaching too many communities and a narrow focus on green jobs. In Europe, while the Just Transition Fund complements existing programs, effective implementation of place-based policies remains challenging due to the need for specific, localized responses.
Topic:
Climate Change, Environment, Labor Issues, European Union, and Energy
Political Geography:
North America and United States of America

37. Trade policy, industrial policy, and the economic security of the European Union

Author:
Chad P. Bown
Publication Date:
01-2024
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
Out of fear about its economic security, the European Union is transitioning to a new form of international economic and policy engagement. This paper explores some of the major trade issues surrounding the bloc’s economic security, the role of trade and industrial policies in achieving its objectives, and some of the economic costs of doing so. It begins by explaining why economic security is suddenly playing such a prominent role and providing early evidence to motivate these government interventions. It then turns to a case study—new policies associated with China’s exports of electric vehicles and graphite—that highlights the difficult choices and practical challenges the European Union faces in tailoring policy to address concerns over economic security. The paper then introduces the domestic policy instruments that the European Union, its member states, and other governments are pursuing to address economic security, including stockpiling and inventory management, investment or production subsidies, tariffs, export controls, and regulations on foreign investment, as well as the scope for selective international cooperation over such policy instruments. The paper concludes with some caveats about abandoning interdependence and lessons from history.
Topic:
Security, Industrial Policy, European Union, Trade Policy, and Economic Security
Political Geography:
Europe

38. The Gini Trade Index: What Can We Learn from A New Trade Indicator?

Author:
Lucian Cernat
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
This Policy Brief introduces the Gini Trade Index (GTI) as a new trade synthetic key performance indicator capable of capturing the different distribution of trade values across firm characteristics and across countries. The new indicator replicates the well-known features of the traditional Gini Index, a widely used metric for the skewness of several socioeconomic indicators, in particular income inequality. The Policy Brief calculates the Gini Trade Index for all EU member states and contrasts the case of Slovakia and Cyprus, the EU countries situated at the opposite ends of the Gini Trade Index. The paper finds that the GTI has increased over time in most EU countries and offers a tentative range of optimal GTI values. The final section offers several examples of trade policy initiatives that can reduce trade concentration and lead to greater participation of small and medium enterprises in global trade.
Topic:
European Union, Trade, and Socioeconomics
Political Geography:
Europe, Cyprus, and Slovakia

39. Regulating the Working Conditions of Platform Work: What Can We Learn from EU Member States?

Author:
Oscar Guinea, Elena Sisto, and Oscar du Roy
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
Policymakers in Estonia, France, Greece, and Spain share the common objective of enhancing the working conditions of platform workers. However, variations in their labour markets, legal frameworks, and political landscapes have led to four distinct approaches in achieving this goal. Predominantly, the Spanish regulation has been geared towards attempting to reclassify platform workers from self-employed to employees. In contrast, the regulatory strategies in France and Greece have focused on retaining the sector within the realm of independent work, while simultaneously improving the working conditions of platform workers. Estonia adopted a broader perspective, emphasising the enhancement of working conditions for all freelancers, not exclusively those categorised as platform workers. This Policy Brief offers a comprehensive evaluation and comparison of the regulatory frameworks governing platform work in four European countries. The comparative analysis draws upon research conducted by the OECD and the World Economic Forum (WEF) on the principles of good regulation. Adapting this research to the context of digital platforms, three key principles for assessing the regulation of working conditions on these platforms were identified: (i) the consistency with the policy objective of improving the working conditions of platform workers; (ii) the feasibility of implementing the regulatory requirements; (iii) the presence of regulatory dialogue and appeal mechanisms. The evaluation of the four countries’ regulations against the three outlined principles offers valuable insights into the regulation of platform work. In Spain, the primary aim of the regulation regarding platform workers was not solely the improvement of working conditions but predominantly the reclassification of platform workers from self-employed to employees. This distinction is crucial, as platform workers highly value the benefits of self-employment, such as access to work, income opportunities, flexibility, and autonomy. Evidence presented in this study suggests that a majority of Spanish delivery workers preferred to maintain their self-employed status, while only about one-third expressed a desire to be classified as employees. Moreover, the Spanish regulation is characterised by a broad formulation of the conditions defining employment for digital delivery workers. This lack of specificity has led to an uncertain application of the regulation, with digital platforms adopting diverse strategies to achieve compliance. Ultimately, the Spanish regulatory framework has been marred by a profound disregard for the interests of, and a notable lack of communication with, those directly impacted by the regulation: the digital platforms and the platform workers. Greece has demonstrated that it is possible to enhance working conditions for platform workers while preserving the advantages of self-employment. The Greek regulation mandates that digital platforms adhere to the same welfare, health, and safety obligations for platform workers as they would for employees. Additionally, Greece has established clear criteria to define the presumption of self-employment for platform workers. This clarity offers legal certainty and enabled platform workers to accurately assess their employment status. Consequently, there has been a notable reduction in court cases regarding the classification of platform workers. France has progressively developed a comprehensive legal framework that has systematically enhanced the rights of platform workers. This development culminated in six pivotal agreements, addressing some of the most challenging aspects of working conditions on digital platforms, such as account deactivation and minimum revenue. These agreements were reached under the auspices of the Autorité des Relations Sociales des Plateformes d’Emploi (ARPE), a public entity instrumental in facilitating effective social dialogue between digital platforms and trade unions. The establishment of clear administrative procedures governing the negotiations within ARPE has been crucial in formulating measures that digital platforms can effectively implement. Estonia’s primary focus is on ensuring adequate working conditions for all freelancers, including platform workers. A considerable number of platform workers in Estonia engage in a contract-for-services (töövõtuleping) with digital platforms. This contract offers a social safety net, including unemployment benefits, sick pay, and healthcare services, while retaining the self-employed status of platform workers. Moreover, this framework provides clarity regarding the rights and responsibilities of both platform workers and digital platforms, facilitating the implementation of a clear and unambiguous regulatory system.
Topic:
Labor Issues, European Union, Regulation, Digital Economy, and Labor Market
Political Geography:
Europe

40. EU Autonomy, the Brussels Effect, and the Rise of Global Economic Protectionism

Author:
Matthias Bauer and Dyuti Pandya
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The Brussels Effect, once emblematic of the EU’s alleged influence in shaping global regulations, has now become a factor contributing to global regulatory fragmentation. The EU must recalibrate its trajectory towards a liberal and rules-based trading order, prioritising widespread regulatory liberalisation to counteract the risks of global protectionism and regulatory spirals. A holistic approach, both internally and globally, is crucial to prevent regulatory and subsidy spirals on a global scale. This recalibration is essential to keep global markets open and enhance the EU’s own economic and technological competitiveness. In response to the 2008 financial crises, the EU underwent a shift in its approach to global trade, transitioning towards Strategic Autonomy. However, this gradual move away from a liberal global trade order has led to increased regulatory burdens and regulatory fragmentation, impacting businesses within and beyond the EU. The Brussels Effect, as denoted in this paper, highlights the EU’s signalling effect on other governments in considering and implementing regulations. This effect has contributed to increased trade restrictiveness and regulatory fragmentation globally. The EU’s insistence on “autonomy” and “European values” not only empowers others to follow suit, contributing to the rise in global protectionism, but also contradicts the EU’s historical support for open trade principles and its commitment to a highly competitive social market economy. A wealth of EU regulatory data reveals a stagnation and, in many cases, a regression in regulatory cooperation within the Single Market. This is evident from rising trade restrictiveness and a tendency towards increased legal fragmentation instead of convergence across the EU. The evolving regulatory acquis of the EU, coupled with insufficient cooperation and stalled trade agreements, poses risks beyond its borders. The EU’s paradigm shift towards autonomy contributes to global regulatory spirals and protectionist measures, particularly evident in services trade. Despite the EU’s historical commitment to harmonisation and liberalisation, many sectors, such as transport and logistics, telecoms, and digital services, have witnessed the imposition of new laws and rules that hinder trade. With the EU’s share of global GDP expected to decrease to 9% by 2050, there is a critical need for EU governments to enhance its regulatory capabilities and foster innovation. To wield influence in global economic diplomacy, EU policymakers must prioritise policies that unleash the collective ingenuity of individuals and businesses that help to maintain high levels of productivity, competitiveness, and prosperity.
Topic:
Globalization, European Union, Economy, Autonomy, Protectionism, and WTO
Political Geography:
Europe

41. German Industrial Competitiveness and the Metaverse

Author:
Hosuk Lee-Makiyama and Robert Baker
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The metaverse is the next iteration of the internet as an immersive, 3D, virtual, shared world where activities can be carried out with the help of extended reality services. But it is much more than headsets and virtual games. The metaverse is increasingly conceptualised in tandem with other advanced technologies, including AI, IoT, automation, and blockchain. Combined, these Industrie 4.0 innovations will be at the centre of German productivity growth over the next decade. The IMF and the OECD both expect Germany to be the worst-performing leading economy in the world in 2023. Beyond recent shocks, German competitiveness is being “steadily eroded” by structural factors like “rising labour costs and a lack of digitisation” (Arnold, 2023). In this context of sclerotic growth, immersive technologies show much promise. The economic dimension of the new Digital Strategy should be guided by three simple “I’s” – immersive, industrial productivity, and internationalisation of German technologies. Specifically, the metaverse is driving productivity gains in manufacturing, engineering, financial services and retail – it could add €71 billion to German GDP by 2035. As well as enhancing the productivity of existing operations, immersive technologies and smart factories can enable the reshoring of profitable activities back to the German economy, particularly in technology and engineering. But these economic gains are not inevitable. Neglecting immersive technologies would have a significant effect on Germany’s remaining competitive advantages. For example, late adoption of the metaverse and digital twins by the German auto industry would lead to a 10% loss in exports, equating to more than €12 billion each year. The costs of late adoption are only underscored by the current salience of global competition. US firms have a strong track record of successfully integrating internet products into industry, while China and its own technology giants are developing strategic initiatives to capitalise on the metaverse. While much of the metaverse remains under development, companies are already showcasing a range of commercial partnerships and innovative use cases. German companies like Siemens are at the forefront of digital twins which allow automakers and other manufactures to replicate their physical facilities in virtual worlds, drawing on real-time data and simulations to optimise their operations. In insurance, the same digital twins are facilitating underwriting and expedited claims via remote monitoring. Meanwhile, in medical devices and healthcare, a metaverse of medical technology and AI (MeTAI) is facilitating the refinement of AI-based medical practices. This is the future of medical imaging technology, diagnosis, and therapy.
Topic:
European Union, Digital Economy, Industry, and Competition
Political Geography:
Europe and Germany

42. Calling on the EU-US Trade and Technology Council: How to Deliver for the Planet and the Economy

Author:
Oscar Guinea, Vanika Sharma, Philipp Lamprecht, Dyuti Pandya, and Oscar du Roy
Publication Date:
02-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
This Policy Brief proposes the establishment of an agreement on conformity assessment between the EU and the US that covers machinery and electrical equipment. The initiative aims to increase the number of European and US conformity assessment bodies authorized to test and certify EU and US machinery and electrical equipment for exports into each other’s markets, without recognizing the equivalency or otherwise altering the product requirements in regulation, standards, or other normative documents on either side. While this study focuses on the economic effects of an agreement on conformity assessment that includes machinery and electrical equipment, the scope of such an agreement could potentially be extended to several additional product categories, particularly those that are subject to requirements for mandatory third-party conformity assessment in both the EU and the US. The increase in the number of conformity assessment bodies is expected to reduce the costs and the time required to demonstrate conformity. If this policy succeeds as expected in achieving a reduction in trade costs between 2 and 6 percent, US exports to the EU are projected to increase between US$ 11 billion and US$ 32.5 billion while EU exports to the US are estimated to grow by between US$ 13.8 billion and US$ 42.2 billion. In percentage terms, US firms are anticipated to experience a larger increase in exports of machinery and electrical equipment than their EU counterparts. The increase in trade flows as a result of this agreement is estimated to be larger than the rise in trade flows achieved in other Free Trade Agreements signed by the EU or the US. Moreover, as an increasing number of EU regulations begin to mandate third-party conformity assessment, US firms will increasingly benefit from this agreement when exporting to the EU. Given China’s status as the largest supplier of machinery and electrical equipment to both the EU and the US, the implementation of an EU-US agreement on conformity assessment would not only improve conditions for transatlantic trade but also lead to reduced trade dependence for the EU and the US on China. The reduction in trade costs between the EU and the US on machinery and electrical equipment due to the agreement could lower Chinese exports to the EU and the US by between US$ 6.5 billion and US$ 19.4 billion. Importantly, machinery and electrical equipment are crucial inputs for some of the key technologies in which the EU and the US Administrations have identified trade dependencies on China. However, in contrast with other policies aimed at reducing reliance on Chinese imports, an agreement on conformity assessment for machinery and electrical equipment will not require public subsidies or impose any financial burden on taxpayers. This agreement also has the potential to benefit the environment. Machinery and electrical equipment are essential inputs for green technologies. Therefore, a reduction in the cost and time of conformity assessment in these industries will accelerate the adoption of green technologies. An agreement on conformity assessment between the EU and the US covering green goods and clean technologies could increase transatlantic exports between US$ 3.1 billion and US$ 9.2 billion. While this increase in exports is significant, broadening the scope of the agreement to include the entirety of machinery and electrical equipment, rather than just a subset, is projected to lead to trade effects eight times larger. Moreover, as green technologies rapidly evolve, an agreement on conformity assessment has the potential to serve as a dynamic instrument that evolves to accommodate future regulatory and economic developments on climate and the environment on both sides of the Atlantic.
Topic:
Science and Technology, European Union, Economy, and Trade
Political Geography:
Europe, North America, and United States of America

43. Openness as Strength: The Win-Win in EU-US Digital Services Trade

Author:
Matthias Bauer, Dyuti Pandya, and Oscar du Roy
Publication Date:
03-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The discourse surrounding the EU’s supposed over-reliance on digital services imports from non-EU countries, particularly the US, has been a recurrent topic among some political circles. However, this viewpoint tends to oversimplify and misrepresent the nuanced and complex reality of the EU’s status within the global Information and Communication Technology (ICT) sector and digitally enabled trade. A thorough analysis of trade data and trends clearly illustrates that the EU’s engagement with foreign (non-EU) digital services, notably from the US, represents a strategic economic advantage, bolstering Europe’s competitiveness and fostering productivity growth. Below we underline the critical importance of openness to foreign innovation and technology diffusion for the EU’s economic future.
Topic:
European Union, Digital Economy, Strategic Competition, Imports, and Productivity
Political Geography:
Europe, North America, and United States of America

44. ICT Beyond Borders: The Integral Role of US Tech in Europe’s Digital Economy

Author:
Matthias Bauer and Dyuti Pandya
Publication Date:
03-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
Contrary to political assertions about the vulnerability of digital services provided by non-EU companies, the strong presence and sunk costs associated with US tech companies’ investments in data centres, skilled workforce development, and research facilities in Europe act as significant barriers to exit, highlighting the inherent symbiosis between US tech investments and Europe’s digital and non-digital sectors. These investments underscore a mutual inter-dependency that strengthens European economies, making the notion of “sudden cessation” of digital services by US companies implausible. Corporate data show a significant investment gap of approximately USD 1.36 trillion between US and EU ICT companies, attributing a competitive edge to US firms due to their heavy investment in ICT, cloud solutions, and R&D. Forecasted increases in ICT investments by US corporations outline a benchmark beyond reach for EU businesses. The notion of EU firms aligning with this growth path is rather fantastical, as it would call for immense government investment, ultimately draining financial resources from essential public services, such as healthcare, housing, and environmental policies. Substantial ICT investments across EU Member States together with a long-term commitment to the European market present an opportunity for the EU to leverage US continuous technological advancements, underscoring the potential for transatlantic collaboration to drive the EU’s digital transformation and innovation. EU-US partnerships not only fuel the EU’s digital transformation but also align with shared political values, reinforcing the significance of transatlantic collaboration in shaping a competitive and innovative digital future.
Topic:
Communications, European Union, Digital Economy, Investment, and Information Technology
Political Geography:
Europe, North America, and United States of America

45. Time to Rethink Export Controls for Strengthened US-EU Cooperation and Global Trade Rules

Author:
Matthias Bauer and Dyuti Pandya
Publication Date:
04-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The escalation of broad export controls by the US, under the guise of national security and the aim to curb technological transfers to potential adversaries,[1] marks a new epoch of bureaucratic oversight. The US push for broad export controls also underscores a critical juncture in US-EU relations and global trade rules. Broad export restrictions not only challenge the very foundation of free trade but also contribute to the erosion of Western technology leadership.[2] Unilateral export controls may start strong but eventually lose effectiveness and become counterproductive,[3] pushing non-US companies, particularly in the semiconductor sector, to find alternatives to US components.
Topic:
International Cooperation, European Union, Regulation, Exports, Trade, and Semiconductors
Political Geography:
Europe and United States of America

46. Trading Up: An EU Trade Policy for Better Market Access and Resilient Sourcing

Author:
Fredrik Erixon, Oscar Guinea, Philipp Lamprecht, Oscar du Roy, Elena Sisto, and Renata Zilli
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
Europe’s competitiveness could be substantially improved by a trade policy that facilitates more trade and other forms of cross-border exchange. The evidence is clear: the EU trades less with the rest of the world than would be expected given the size of its economy. With 85 percent of global growth happening outside of the EU – and with an increasing share of all new technologies, innovations, patents, human capital, and R&D expenditure emerging in other parts of the world than Europe – the EU needs to find better ways to integrate with international markets. It is now becoming urgent for the EU to revive its international trade policy. Europe’s increasing detachment from global markets lead to two major economic concerns: deteriorating market access and less capability to build economic resilience. Market access can be defined as an export challenge, as EU firms face increasing trade barriers that hinder their ability to sell products and services abroad. These barriers ultimately limit the EU’s ability to scale up production, specialise, and increase R&D spending. Economic resilience is an import challenge. To become more resilient, the EU must diversify its sources of supply, particularly for critical raw materials, and secure a stable and frictionless access to foreign high-end goods, services, and technologies. The next five years present a critical opportunity for the EU to address the challenges limiting the contribution of international trade to EU’s competitiveness. This Policy Brief outlines seven trade policy recommendations that tackle the lack of market access and address the need for economic resilience. These policy recommendations are there for the EU to take: they are realistic and achievable. The EU has the power to make these seven policy recommendations a reality.
Topic:
Markets, Treaties and Agreements, European Union, Trade, and Resilience
Political Geography:
Europe

47. Keeping Up with the US: Why Europe’s Productivity Is Falling Behind

Author:
Fredrik Erixon, Oscar Guinea, and Oscar du Roy
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The European Union stands at a crossroads. For decades, the EU’s productivity growth has consistently lagged the United States, leading to slower growth in living standards and decline in global economic power. While short-term factors like the strong US fiscal expansion have widened the gap in nominal GDP growth in recent years, the fact is that Europe has trailed the US economic development for several decades and the root of the problem lies in deeper structural issues within the European economy. Four major forces fuel this productivity divide. Firstly, the EU’s investment in research and development (R&D) pales in comparison to the U.S., leading to fewer patents and a slower pace of technology-fuelled innovation. Secondly, Europe trails America in the stock and growth of intangible capital investments, which are crucial for adopting and diffusing new technologies that drive productivity. Thirdly, the EU market exhibits slower business creation and destruction compared to the US. This rigidity hinders the flow of resources towards the most productive firms. Lastly, despite boasting higher levels of trade openness, the EU attracts less Foreign Direct Investment (FDI) than the US, curbing its access to cutting-edge global technologies and expertise. To close the gap, European policymakers should implement a comprehensive strategy for faster productivity growth. The first step is turning up the dial on R&D spending, targeting 4-5 percent of GDP by 2040. Next, Europe should prioritise investments in intangible assets and lay down the digital infrastructure that will underpin future growth. Revitalising the single market is also crucial: reducing internal and external market barriers for services, the primary vehicle for trading intangible assets. Moreover, the EU should foster a market environment that encourages entrepreneurship and facilitate the entry and exit of firms so resources cascade towards the most productive sectors. By harnessing the strengths of the single market and implementing these recommendations, European policymakers can propel the EU towards a more competitive and prosperous future.
Topic:
Markets, European Union, Productivity, and Economic Competition
Political Geography:
Europe, North America, and United States of America

48. Trade in the Great Sea: A Brief State of Play of EU-Southern Neighbourhood Trade Relations

Author:
Jan A. Micallef
Publication Date:
05-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The Mediterranean is a vibrant economic geography that could grow significantly. This paper reviews the trade relations between the EU and Southern Neighbourhood Countries (SNCs) – their history and the current status of the bilateral trade agreements. While these agreements have many similarities, there are also some differences in scale and scope. The paper also looks at the development of trade between the EU and SNCs and concludes that developments have generally been positive.
Topic:
Treaties and Agreements, Bilateral Relations, European Union, and Trade
Political Geography:
Europe and Mediterranean

49. The EU’s Trillion Dollar Gap in ICT and Cloud Computing Capacities: The Case for a New Approach to Cloud Policy

Author:
Matthias Bauer, Fredrik Erixon, and Dyuti Pandya
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
An inward-looking EU approach to cloud computing and data policies risks stifling innovation and competitiveness by promoting domestic champions at the expense of accessing global cloud capabilities. Limiting market diversity and access to best-in-breed solutions could hinder digital transformation across sectors, raising costs and constraining growth opportunities. By contrast, a free trade approach to cloud offer guardrails and security but champions non-discriminatory cross-border and regulatory policies, yielding economic advantages by stimulating investments, fostering innovation, and enhancing competition. Unfortunately, some EU policymakers envision Europe building an independent ICT infrastructure, exemplified by initiatives like the European Alliance on Industrial Data, Edge and Cloud. This approach prioritises technological sovereignty, aiming not just to maintain European control over critical infrastructure and data but favouring localisation policies, including in AI and quantum computing. However, the approach is simply not going to work because the amount of resources that are needed for “pure-EU firms” to rise up as significant competitors to global leaders is so large that it would drain other sectors of investments and human capital. The investment gap between the EU and the US in ICT and cloud-related sectors, totalling some USD 1.36 trillion, presents a significant challenge for native European companies. To catch up by 2030, 2040, and 2050, European technology companies would need to substantially increase annual investments, ranging from approximately USD 157 billion to USD 1.2 trillion annually, representing 0.8 percent to 6.4 percent of the EU’s GDP. This would – hypothetically – require a significant commitment of resources. Despite recent efforts such as state aid for R&D in cloud and edge computing, the scale of investment needed far exceeds the current levels, underscoring the urgency for an open and non-discriminatory EU policy approach to bolster Europe’s position in the rapidly growing and technologically changing digital landscape. There are different components to a successful cloud policy, including policies to spur adoption and cross-border cloud integration in the EU, and more investment in R&D. EU policymakers should adopt a dynamic perspective rather than fixating on static market shares, and pursue policies that prioritise innovation and technological advancement over merely seeking to catch up on current technologies. The cloud market and the broader Internet market are going through rapid changes, leading to new services and new competition. A future-oriented approach to cloud policy advocates for policies that foster competition, drive technological progress, and enable interoperability, all of which align with the dynamic nature of cloud services and global markets.
Topic:
Communications, European Union, Digital Economy, Cloud Computing, and Information Technology
Political Geography:
Europe

50. Reinventing Europe’s Single Market: A Way Forward to Align Ideals and Action

Author:
Matthias Bauer, Dyuti Pandya, Vanika Sharma, and Elena Sisto
Publication Date:
06-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
It is essential for EU institutions and Member State governments to shift their focus from the abstract concept of the “Single Market” to the concrete objective of “legal harmonisation in the EU.” This transition represents a strategic realignment towards more pragmatic policymaking. Adopting a 28th regime to address national regulation discrepancies would align with this goal and enhance the Single Market’s effectiveness in promoting economic growth and competitiveness. Given the EU’s ongoing loss of relative global economic clout, it is crucial to establish an ambitious timeline for implementing the most critical Single Market reforms. The Letta Report serves as a wake-up call to revitalise the EU’s Single Market, emphasising the need for decisive action. Its vision largely hinges on legal harmonisation within Europe, building on early efforts to liberalise markets and establish a truly integrated European market. Despite efforts, “integration fatigue” remains a significant challenge due to legal fragmentation across European economies. Previous reports, from the Cecchini Report in 1992 to the Europe 2020 Strategy, have highlighted persistent issues like regulatory divergences and declining political support for market integration. Despite numerous proposals, progress has been limited, and many challenges persist or have worsened (see Section 2). An analysis of EU reports reveals a shift in policy priorities over time. Initially, there was a strong focus on liberalisation and market opening, with less attention given to state aid and industrial policymaking. The Letta Report highlights the importance of regulatory convergence and harmonisation, reflecting a deeper understanding and recognition of the drivers of EU competitiveness. The rise of nationalism and a shift towards “Strategic Autonomy” within the EU have hindered crucial market reforms. This highlights the importance of aligning laws across Member States to strengthen and reinforce EU’s economic resilience and international competitiveness (see Section 3). EU institutions and Member State governments should set specific goals for “legal harmonisation in the EU.” This shift would address real challenges faced by businesses and citizens, and build political will for necessary reforms. Prioritising legal harmonisation would enhance internal cohesion and align national laws with Union-wide goals. An actionable roadmap – potentially with a 2028 deadline – is crucial to address the substantial gap between ambitious EU strategies and Europe’s economic realities. (see Section 4). Implementing sector-specific and horizontal policies in a new regulatory regime would improve cross-border operations and competitiveness. The Letta Report advocates for a European Code of Business Law to establish a unified regulatory framework, introducing a 28th legal regime to address national regulation discrepancies. Extending this regime to include tax and labour market policies would significantly enhance cross-border operations. The EU and Member State governments can eliminate substantial internal barriers by prioritising key horizontal policies affecting all businesses, such as fragmented tax laws, labour market policies, and social security systems. Simplifying and harmonising these policies on the basis of the facilitation of four freedoms is crucial for unlocking the Single Market’s potential for businesses and workers, boosting the EU’s global competitiveness. Allowing coalitions of willing countries to advance in certain areas of legal integration provides a viable solution to the long-standing Single Market “fatigue”. By enabling smaller groups of Member States to pursue integration in specific areas, the EU can bypass the constraints imposed by rigid voting requirements and achieve greater agility, accountability, and acceptance in EU law-making. This approach not only fosters flexibility but also upholds the fundamental principles and objectives of the EU. To ensure the integrity of the EU legal order and prevent unjustified barriers or discrimination against non-participating members, it is essential to establish safeguards and oversight mechanisms. These measures would maintain cohesion within the Union while allowing for progressive legal integration among willing Member States.
Topic:
Markets, European Union, Digital Economy, and Economic Integration
Political Geography:
Europe