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511. The Impact of Income Inequality on Household Indebtedness in Euro Area Countries

Author:
Stefan Jestl
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper examines the impact of income inequality on consumption-related household indebtedness at the household level. Using the first wave of the Eurosystem Household Finance and Consumption Survey data, the analysis sheds light on heterogeneous effects across euro area countries. The results suggest a positive impact of income inequality on consumption-related household indebtedness in a small sample of countries. We further employ a multilevel regression model to also take country’s macroeconomic characteristics into account, such as credit market and welfare state design. In this setting, we find an overall positive impact of income inequality on consumption-related household indebtedness.
Topic:
Economics, Inequality, Economic Inequality, and Macroeconomics
Political Geography:
Europe

512. Implications of Foreign Direct Investment, Capital Formation and its Structure for Global Value Chains

Author:
Amat Adarov and Robert Stehrer
Publication Date:
11-2019
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
In the age of globalisation, international trade and foreign direct investment (FDI) have become integral elements of cross-country production sharing. In this paper we empirically assess the impact of FDI, as well as capital dynamics and structure, on the formation of global value chains (GVC) and trade in value added at country and sectoral levels based on a database constructed for a sample of European countries over the period 2000-2014. The analysis reveals that inward FDI is especially conducive to the formation of backward linkages while outward FDI facilitates forward GVC participation, especially in high-tech manufacturing sectors. A particularly robust influence of FDI and capital accumulation on GVC integration is identified in the textile and clothing industry. While capital accumulation in general intensifies GVC linkages for most sectors, ICT capital appears to be especially instrumental for backward integration of electrical and transportation equipment sectors.
Topic:
Globalization, International Trade and Finance, Foreign Direct Investment, Trade, and Global Value Chains
Political Geography:
United States, Japan, and Europe

513. Is There a Threat of a Repeated Deployment of Nuclear "Eurorockets" from the Cold War Period in Europe?

Author:
Miroslav Tuma
Publication Date:
01-2019
Content Type:
Policy Brief
Institution:
Institute of International Relations Prague
Abstract:
Will the U.S. unilateral withdrawal from the American-Soviet INF Treaty of 1987 become a possible reality? The Treaty prohibits ground-launched shorter and the middle-range missiles (500–5,500 kms) with nuclear or conventional warheads. The Treaty´s security significance and its main parameters, the legal framework of the withdrawal and the reasons of both parties for accusing each other of violating the Treaty, are discussed in the article as well. In its conclusion, the article, among other things, explains the context of the possible termination of the Treaty, and its consequences for the U.S.-Russia arms-control architecture. Motto: “ A nuclear war cannot be won and must never be fought.” (A joint statement of the American president Ronald Reagan and the Soviet highest representative Mikhail Gorbachev from their first meeting in Geneva in January 1985)
Topic:
International Relations, Nuclear Weapons, and Treaties and Agreements
Political Geography:
Russia, Europe, and United States of America

514. Better Protection of the Rule of Law – or of European Taxpayers’ Money

Author:
Tamás Lattmann
Publication Date:
11-2019
Content Type:
Policy Brief
Institution:
Institute of International Relations Prague
Abstract:
The rule of law holds great importance to the EU, as it also should to its member states and improving its protection has become a focus of new legislative efforts. Will this proposed regulation be useful and effective tool added to EU’s legislation or will it do the opposite and hurt the member state governments? The author focuses on already existing procedures and their deficiencies and compares them to the current proposal while also shedding light on the background of the new legislation. The reflection addresses some of the questions that may be raised related to EU law, member state sovereignty and its possible effects. The regulation still has a long way to go to become a law and in or order for that to happen it needs to be accepted by the Council. The author lists potential scenarios that could occur in the process of the law’s adoption and explains the legislative procedures.
Topic:
Rule of Law, Tax Systems, and European Parliament
Political Geography:
Europe

515. The Regional Format 16+1: Early Rusting, Still Alive and Expanding into 17+1

Author:
Rudolf Furst
Publication Date:
05-2019
Content Type:
Policy Brief
Institution:
Institute of International Relations Prague
Abstract:
The sub-regional multilateral format of China and 16 post-communist states (16+1) proved that it could last seven years and that it has the potential to absorb new members. Consequently, the European Union is increasingly concerned about its potentially divisive effects on the EU’s unity. The expected economic benefits of 16+1 for the European partners have been scarcely relevant; still, the European states exploit the 16+1 format for strengthening their bilateral agendas with China. Amidst the trade war with China, the US regards China’s rising influence in Central Europe as a political issue. Beijing’s priority in Europe is to calm down the tension with the EU, Germany, and France over the 16+1 platform. However, the accession of Greece to the enlarged format of 17+1 in the recent 16+1 summit in Dubrovnik and the gaining of support for the Belt and Road Initiative in Italy enable China to establish its foothold on the European South’s doorstep in connection with the 17+1 regional platform.
Topic:
Regional Cooperation, European Union, Economy, and Multilateralism
Political Geography:
China, Europe, Asia, France, and Germany

516. 10 Years of Eastern Partnership: From Prague to Brussels and How to Proceed?

Author:
Pavel Havlíček
Publication Date:
09-2019
Content Type:
Working Paper
Institution:
Institute of International Relations Prague
Abstract:
The past 10 years can be generally assessed as a success and this trend needs to be maintained in the upcoming decade. To this end, it will be necessary to come up with a new vision for EU-Eastern relations and keep the EU’s Eastern policy high on the EU agenda. This is where EaP supporters, such as Poland and Sweden, and again the Czech Republic, can play a decisive role. The strategic task ahead of those countries is to come up with new ideas and incentives on how to develop the policy until 2030, and beyond. The EU member states from the so-called “like-minded” group will also have to push for the Euro-Atlantic orientation of the Eastern European countries while keeping the door open to the future enlargement process in the long run. The policy paper looks at the past decade of Eastern Partnership, its achievements and failures and currents tasks and challenges that lie ahead of the both EU and the six EaP states. It brings policy recommendations for the European Union, Visegrad Group and the Czech Republic. The paper was published with a support of the Ministry of Foreign Affairs of the Czech Republic in the framework of public diplomacy projects within Czech Foreign Policy and international relations. It follows up on the Eastern Partnership Day, an international conference organized by AMO and the Institute of International Relations in June 2019.
Topic:
International Relations, European Union, and Partnerships
Political Geography:
Europe and Czech Republic

517. Kick-Starting Cosmopolitan Governance Through Science: The Case of a Giant Laser System

Author:
Nikola Schmidt and Ondrej Ditrych
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
Institute of International Relations Prague
Abstract:
Recommendations are articulated for a state such as the Czech Republic for which a pragmatic normative the framework defined herein provides a useful perspective to look at the governance of new technologies that ensure normatively desirable outcomes of sweeping technological change, and stimulate international scientific collaboration with positive spill-over effects to other domains of international cooperation. This research was supported by the Technological Agency of the Czech Republic. Particularly through a scientific grant TACR TL01000181: “A multidisciplinary analysis of planetary defense from asteroids as the key national policy ensuring further flourishing and prosperity of humankind both on Earth and in Space.”
Topic:
Science and Technology, Governance, and Space
Political Geography:
Europe and Czech Republic

518. Deconstructing the EU’s “Standards of Civilisation”: The Case of Turkey

Author:
Münevver cebeci
Publication Date:
12-2019
Content Type:
Journal Article
Journal:
Uluslararasi Iliskiler
Institution:
International Relations Council of Turkey (UİK-IRCT)
Abstract:
Arguing that the European Union’s (EU) imposition of its norms and values on Turkey is a continuation of the logic of “European standards of civilisation”, this article offers a second reading of European discourses about Turkey. It regards enlargement conditionality as an apparatus through which the EU constructs its own identity as “ideal” and its others as imperfect. Thus, it attempts to deconstruct the EU’s standards of civilisation through three major lines on which they are built: the authoritative application of standards, unequal treatment and a geopolitical approach – as set by Hartmut Behr in 2007.
Topic:
Foreign Policy, Geopolitics, and Civilization
Political Geography:
Europe, Turkey, Middle East, and European Union

519. Consolidating Neoliberalism through Privatisation: The Case of the EU after the Eurozone Crisis

Author:
Özgün Sarimehmet Duman
Publication Date:
09-2019
Content Type:
Journal Article
Journal:
Uluslararasi Iliskiler
Institution:
International Relations Council of Turkey (UİK-IRCT)
Abstract:
This article offers an inquiry into the increasing importance of privatisation policies in the European Union (EU). It evaluates the emphasis on international competitiveness and market efficiency to offer a comparative analysis of commodification, marketisation, liberalisation and privatisation policies in the pre- and post-crisis EU. It states that the EU introduced new mechanisms to explicitly promote privatisation policies in its member states after the Eurozone crisis. The article concludes that the EU’s lead in privatisation has functioned as a disciplinary mechanism for the member states to introduce and implement extensive privatisation policies. The EU has tended to consolidate neoliberalism through privatisation after the Eurozone crisis.
Topic:
Economics, Privatization, Financial Crisis, European Union, and Neoliberalism
Political Geography:
Europe

520. The EU’s Approach to the Syrian Crisis: Turkey as a Partner?

Author:
Çiğdem Nas
Publication Date:
08-2019
Content Type:
Journal Article
Journal:
Uluslararasi Iliskiler
Institution:
International Relations Council of Turkey (UİK-IRCT)
Abstract:
The article aims to analyze the European Union (EU)’s approach to the Syrian crisis and to evaluate the role it attributes to Turkey. The EU’s approach staggered between supporting transition in Syria to a post-Assad regime and the need to protect itself against spill-over effects of the conflict. Two issues emerged as urgent priorities that determined the EU’s approach to the conflict. One of them was to control the outpouring of refugees fleeing war and oppression in Syria and the other was to deal with the growing threat of terrorism, mainly the ISIL threat. The influx of Syrian refugees through the Aegean and Balkan route to the EU surged in the summer of 2015 leading to practical and political problems for EU countries. In the meantime, ISIL related terror attacks in the EU created a major security problem and led several Member States to bring back border controls in the Schengen area. The EU turned to Turkey and sought Turkey’s cooperation in controlling the refugee flow and also keeping away the ISIL threat. The article looks at cooperation between Turkey and the EU and also points of contention that created hurdles in this cooperation.
Topic:
Foreign Policy, Bilateral Relations, European Union, Refugee Crisis, Syrian War, and Borders
Political Geography:
Europe, Turkey, Middle East, and Syria