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241. At What Cost Price Stability? New evidence about the Phillips Curve in Europe and the United States

Author:
Daniel Gros and Andrea Beccarini
Publication Date:
09-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
With inflation increasing all over the world, central banks have to consider with some care how quickly to re-establish price stability. A key issue in this context is the short-run cost in terms of foregone output and higher unemployment. The aim of this paper is to determine the 'sacrifice ratio' for the Euro Area and for the United States. The main findings are: the cost of reducing inflation is in most cases higher in the US than in the EA. For example, reducing (headline) inflation by 1% point requires a decline of output of 1.4% in the EU, but 2.3% for the US. Considering core inflation, the sacrifice ratio in terms of output is somewhat higher for the Euro Area (around 4) compared to 3.2 for the US. However, the sacrifice ratios in terms of unemployment are always much larger for the US. Reducing headline inflation by 1% requires an increase in unemployment of little more than 1% in the EA, compared to 8% in the US.
Topic:
Economics and Foreign Exchange
Political Geography:
United States and Europe

242. The External Dimension of EU Justice and Home Affairs: Tools, Processes, Outcomes

Author:
Thierry Balzacq
Publication Date:
09-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
This working document offers a conceptual framework for understanding the processes underpinning the external dimension of EU Justice and Home Affairs (ED-JHA). Practically, it defines how the export of JHA principles and norms inform the geopolitical ambitions of the EU, i.e. the use of space for political purposes, or the control and management of people, objects and movement. The author begins by investigating how the ENP reconfigures the ED-JHA, and then goes on to discuss various conceptual stances on governance, specifically institutionalism, constructivism, and policy instruments. To conclude he traces the evolution of this external dimension, emphasising, whenever possible, its continuities and bifurcations. Overall, the aim is to ascertain the extent to which conceptual designs clarify or advance our knowledge of the contents and rationales of the ED-JHA.
Topic:
Government and International Political Economy
Political Geography:
Europe

243. Schengen:Achievements and Challenges in Managing an Area Encompassing 3.6 million km²

Author:
Stefano Bertozzi
Publication Date:
02-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
This paper assesses the achievements of the European Commission and the member states over the last six years in the management of Europe's internal and external borders. The key stages in the development of the Schengen acquis are identified, including the creation of FRONTEX (the EU agency responsible for coordinating the operational cooperation between member states in the field of border security) and the recent Schengen enlargement. The author attempts to explain the main reasons why the member states of the European Union have relinquished some of their much-treasured sovereignty and pooled their financial and human resources in a bid to manage and police Europe's external borders more effectively. Finally, this paper considers the fundamental question of how to make Europe's controls more effective, more technologically advanced and more responsive to the new challenges posed by globalisation, without impinging on the principle of the free movement of people.
Topic:
International Relations, Foreign Policy, and Regional Cooperation
Political Geography:
Europe

244. Rebranding Russia: Norms, Politics and Power

Author:
Andrey Makarychev
Publication Date:
02-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
This working paper argues that Russia is in the process of re-branding itself internationally, with a variety of normative arguments increasingly creeping into its wider international discourse. By appealing to norms, Russia tries to reformulate the key messages it sends to the world and implant the concept of its power worldwide. Yet given that Russia's normative messages are often met with scarce enthusiasm in Europe, it is of utmost importance to uncover how the normative segment in Russian foreign policy is perceived, evaluated and debated both inside Russia and elsewhere. Within this framework, this paper focuses on a set of case studies highlighting the normative and non-normative dimensions of Russian foreign policy. These include Russia-EU transborder cooperation, Moscow's policies towards Estonia, Poland, Ukraine/Georgia and the UK, Russian strategies in the 'war on terror' and energy issues.
Topic:
International Relations and Foreign Policy
Political Geography:
Russia, United Kingdom, Europe, Ukraine, Asia, Poland, Moscow, Estonia, and Georgia

245. Democracy in the European Union

Author:
Stefano Micossi
Publication Date:
02-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
Many observers take it for granted that the European Union suffers from a lack of democracy: in the dual sense that common policies have diverged from voters' preferences (output legitimacy) and that decision-making mechanisms appear to lack the basic requirements of transparency, accountability and democratic involvement (input legitimacy). Stefano Micossi, Director General of Assonime, argues in this paper that once the Union is recognised for what it is – an innovative polity, where power is shared by a large number of players with many participation and influence-wielding mechanisms, – it becomes apparent that on the whole it complies with democratic legitimisation standards no less than do member states, even if multiple, and potentially conflicting legitimisation channels and principles may confuse observers. The member states and EU citizens continue to turn to the Union to seek solutions to problems that cannot be solved nationally, and there is an extraordinary proliferation of subjects and channels providing participation in European debates and decisions, in new and ever-changing ways. Through this continuous adjustment process, the Union has designed new legitimisation solutions that may well represent the future of democracy in a world of diverse but increasingly interconnected communities.
Topic:
International Relations, Democratization, and Regional Cooperation
Political Geography:
Europe

246. China and India: Implications for the EU Economy

Author:
Daniel Gros
Publication Date:
01-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
This paper provides background information on the likely challenges the rise of China and India will pose for the economy of the EU. The purpose is mainly descriptive, namely to spell out what kind of trading partner China and India will represent for the EU in the foreseeable future. A first observation is that India is several times smaller than China in economic terms. Moreover, because its investment rates in both human and physical capital are much lower than in China, its growth potential is likely to remain more limited. China's export structure has already become rather similar to that of the EU and this 'convergence' is likely to result in the rapid accumulation of human and physical capital. If current trends continue, the Chinese economy is likely to have a capital/labour ratio similar to that of the EU. In terms of human capital, China has already caught up considerably, but further progress will be slowed down by its stable demographics and the still low enrolment ratio in tertiary education. In both areas India will lag China by several decades. The rapid accumulation of capital suggests that the emergence of China will put adjustment pressures mainly on capital-intensive industries, not the traditional sectors, such as textiles. Another source of friction that is likely to emerge derives from the abundance of coal in China, resulting in a relatively carbon- and energy-intensive economy.
Topic:
International Relations, Foreign Policy, and Regional Cooperation
Political Geography:
China, Europe, and India

247. The European Union as a Normative Foreign Policy Actor

Author:
Nathalie Tocci
Publication Date:
01-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
This is the second in a series of papers from a new project entitled “Who is a normative foreign policy actor? The European Union and its Global Partners”. The first paper – entitled Profiling Normative Foreign Policy: The European Union and its Global Partners, by Nathalie Tocci, CEPS Working Document No. 279, December 2007 – set out the conceptual framework for exploring this question. The present paper constitutes one of several case studies applying this framework to the behaviour of the European Union, whereas the others to follow concern China, India, Russia and the United States. A normative foreign policy is rigorously defined as one that is normative according to the goals set, the means employed and the results obtained. Each of these studies explores eight actual case examples of foreign policy behaviour, selected in order to illustrate four alternative paradigms of foreign policy behaviour – the normative, the realpolitik, the imperialistic and the status quo. For each of these four paradigms, there are two examples of EU foreign policy, one demonstrating intended consequences and the other, unintended effects. The fact that examples can be found that fit all of these different types shows the importance of 'conditioning factors', which relate to the internal interests and capabilities of the EU as a foreign policy actor as well as the external context in which other major actors may be at work.
Topic:
International Relations, Foreign Policy, and Regional Cooperation
Political Geography:
Russia, United States, China, Europe, and India

248. How to Achieve a Better Budget for the European Union?

Author:
Daniel Gros
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
In recent decades the EU has widened and deepened to such an extent that it now deals in almost all areas of policy-making. Its budget, however, has barely changed over this period. It thus needs to be radically reformed if it is to reflect the priorities of an expanding and deepening Union. Over 40% of spending still supports agriculture, a declining sector; spending for research and innovation, recognised as the main driving force of productivity growth, is too low, and there is no room in the budget for the new public goods of domestic and external security that the public demands. However, the budget is determined through an inter-governmental negotiation in which no entity defends the over-arching European interest since all countries (rationally) care only about their 'net balance'.
Topic:
Government and International Political Economy
Political Geography:
Europe

249. Promoting Human Rights in Russia by Supporting NGOs: How to Improve EU Strategies

Author:
Elena Klitsounova
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
The EU advocates a policy that includes a great deal of human rights promotion and support for Russian NGOs. The question for EU policy-makers is no longer whether but how to manage NGO involvement in a way that induces necessary changes in Russia's human rights behaviour. This paper argues that current EU policies often fall short of their potential to develop the non-state transfer of European ideas, norms, and practices to Russia or to assist the development of the Russian NGO community. If the EU is to become a serious actor in the field of human rights promotion, it will have to find new and creative ways to communicate with Russians about human rights matters. This paper offers policy recommendations to adapt EU strategies to the current context of the EU Russia relationship and to redesign EU assistance programmes.
Topic:
Human Rights and Non-Governmental Organization
Political Geography:
Russia and Europe

250. The Other Side of the Moons - The Schengen Information System and Human Rights: A Task for National Courts

Author:
Evelien Brouwer
Publication Date:
04-2008
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
The recent proposals of the European Commission for a European Border Management Strategy are based on an almost blind faith in the use of large-scale databases, identification measures and biometrics for immigration and border control purposes. It is clear that these measures entail a risk to the protection of not only the right to privacy and the right to data protection, but also to the freedom of movement and the principle of non-discrimination. This paper by Evelien Brouwer, lecturer at the Law School of Utrecht University, considers the human rights implications of the Schengen Information System (SIS). Describing the case of Mr. and Mrs. Moon, who have been reported as “inadmissible” in the SIS for more than ten years, the difficulties for third country nationals trying to remedy a false or unlawful SIS report are highlighted. The Moon case illustrates that the outcome of national proceedings dealing with an SIS alert can be very different. The author concludes with recommendations to guarantee individuals' rights to effective remedies and to improve the position and powers of national courts.
Topic:
Government, Human Rights, and International Law
Political Geography:
Europe