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111. Turning a new vision into reality: What next for the EU’s role in health?

Author:
Simona Guagliardo
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
In response to the COVID-19 pandemic, health has become a top priority for EU leaders. The first steps to revamp and strengthen the EU health agenda have been taken. However, to ‘build back better’ and make the most out of EU action in health, Europe must now lay the foundations for more resilient national health systems while centering the recovery on people’s well-being. All of this should be underpinned by a serious reflection on how the EU can bring added value. In this Policy Brief, Simona Guagliardo proposes how this vision can turn into reality: Despite its limited competences, the EU can support member states in making their national healthcare systems more effective, accessible, and resilient, for instance, by encouraging them to prioritise investments in health system reforms in the context of the 2021 European Semester and the Recovery and Resilience Facility. People’s health and well-being should be at the core of all policymaking. The EU must move away from only measuring progress in terms of economic growth. A reflection on the feasibility and desirability of transferring some health competences to the EU level can no longer be ignored. The Conference on the Future of Europe should serve as a platform to engage with citizens and civil society and start the debate on levelling up the EU’s role in health policy. The COVID-19 pandemic will not be the last pandemic Europe will ever have to face. Any tangible progress that the EU27 achieves in building a robust Health Union will not only be invaluable for managing today’s crisis, but also for preparing for future – and perhaps even more severe – health challenges.
Topic:
Civil Society, Health Care Policy, European Union, Public Policy, and COVID-19
Political Geography:
Europe

112. Updating the European industrial strategy for the post-pandemic world

Author:
Marta Pilati and Frederico Mollet
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
On 27 April, the European Commission is expected to publish an update to their 2020 Industrial Strategy, a blueprint for an assertive European industrial policy that drives the digital and green transitions. While the current strategy’s broad principles continue to hold, it must now adapt to the post-pandemic world’s challenges. Furthermore, the original strategy only provided a high-level roadmap, with many areas requiring further development. Frederico Mollet and Marta Pilati break down European industry’s weaknesses and potential areas of success, the effects of COVID-19 this past year, key points of the 2020 Industrial Strategy and its relevance for Europe and beyond. They outline 16 recommendations which would strengthen the design and implementation of the programmes outlined in the current strategy, across four themes: finance, industrial ecosystems and alliances, technology transfer, and strategic autonomy.
Topic:
Development, Political Economy, European Union, Digital Economy, Green Technology, Industry, COVID-19, Strategic Autonomy, and European Commission
Political Geography:
Europe

113. Recovery and reform in the EU’s most vulnerable regions

Author:
Alison Hunter and Marta Pilati
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
Europe’s most vulnerable regions, characterised by persistent low growth and poverty, face a systemic lack of specific EU support. These regions display particularly high levels of vulnerability to the social, economic and territorial impacts of COVID-19, which will affect their recovery trajectories. They risk being left further behind in the EU’s complex pathway towards ‘a green and digital recovery’. The Union’s lack of focus and action for investing in these most vulnerable regions must be addressed. First and foremost, EU institutions and member states should recognise that some territories will struggle much more than others in their recovery trajectories. Ignoring their plight would have potentially far-reaching consequences. The EU’s ‘convergence machine’ could be damaged irreparably, with long-term – and potentially political – consequences. Alison Hunter and Marta Pilati continue their extensive research on the Union’s low-growth, poor regions, calling for the founding of a specific EU initiative to support them as well as further targeting by the existing policy architecture. In particular, they recommend: creating an EU policy space for regions experiencing long-term low growth and poverty, to promote the value and visibility of place-based support; aligning Cohesion Policy and the Recovery and Resilience Facility for improved policy coherence and greater investment impact; and tailoring support for growth-enhancing reforms in the EU’s most vulnerable regions. The EU’s green and digital recovery strategy fails to account for the specific needs of its poor and low-growth regions. Existing disparities and fragmentation challenges across the Union could widen or even become entrenched, casting new doubts on the EU’s ability and commitment to strengthen its convergence agenda and execute a just transition. The fallout could lead to a rise in territorial and political tensions while leaving many vulnerable places behind. Hunter and Pilati outline an agenda for a new EU initiative that champions reform support for these vulnerable territories and improves their prospects for a digital and green recovery.
Topic:
Political Economy, Poverty, Reform, European Union, Digital Economy, Economic Growth, Green Technology, Recovery, COVID-19, and Economic Recovery
Political Geography:
Europe

114. Rethinking EU economic governance: The Stability and Growth Pact

Author:
Francesco De Angelis and Frederico Mollet
Publication Date:
11-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
It is time to reimagine the EU’s economic governance. In early 2021, the EPC set out to do just that in its Rethinking EU Economic Governance Task Force. Drawing on insights from participating experts, academics and policymakers, this first Policy Brief in a series of EPC publications outlines how the debate on the Stability and Growth Pact (SGP), the EU’s framework for fiscal and macroeconomic surveillance, has evolved and the reform options that have surfaced. There is broad dissatisfaction with the SGP and how it has fared in an environment of prolonged low-interest rates, missed inflation targets and low growth. In February 2020, the European Commission launched a review of the SGP in an attempt to address its shortcomings, but it was quickly put on hold by COVID-19, when the fiscal rules were suspended. Half a year later, the Commission is finishing what it started. We are in a drastically different world since the European Commission launched the review. Not only has government debt increased significantly, but regional, economic and social divides have worsened, policymakers face inflationary pressures for the first time in decades, and the Recovery and Resilience Facility and accompanying EU-level bond issuance fundamentally changed the EU’s economic architecture. In parallel, there is a widespread acknowledgement that averting, as well as adapting to, the climate crisis requires a steep increase in public investment. Thanks to the EPC Task Force’s ongoing work, Francesco De Angelis and Frederico Mollet can pinpoint the SGP’s major flaws, post-COVID-19 challenges, and five broad categories of reform options: Interpretative flexibility to smooth fiscal adjustment paths and potentially place less emphasis on problematic indicators. Moderate non-treaty reforms to reduce complexity and procyclicality and increase enforceability. The ‘golden rule’ to exempt some public investments from the fiscal rules. Central fiscal capacity for macroeconomic stabilisation. Off-balance-sheet investments to increase public investment.
Topic:
Political Economy, Governance, European Union, Economic Growth, COVID-19, Economic Stability, and European Commission
Political Geography:
Europe

115. Rethinking EU economic governance: The European Semester

Author:
Frederico Mollet
Publication Date:
12-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
In the debates over the future of the EU’s economic governance, the reform of the Stability and Growth Pact (SGP) usually takes centre stage. But the European Semester – the framework governing economic policy coordination and country surveillance – is also critical. Reforming and strengthening it is vital given the multiple challenges the EU faces, from the twin green and digital transitions to implementing the Recovery and Resilience Facility (RRF) and tackling the macroeconomic and structural scars left by COVID-19. This Policy Brief, the second in a series of EPC papers that reassess the EU's economic governance policies, sets out proposals for reforming the European Semester across three strands: (i) integrating the RRF into the Semester; (ii) drawing on the positive lessons of the RRF process; and (iii) improving the effectiveness of cross-cutting policy coordination and the Macroeconomic Imbalances Procedure (MIP).
Topic:
Governance, European Union, Economy, COVID-19, and Economic Recovery
Political Geography:
Europe

116. Post-Covid-19 EU-Southern Neighbourhood Trade Relations

Author:
Katarzyna Sidlo, Esmat Mostafa Kamel, Hussein Suleiman, and Guillaume Van der Loo
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
IEMed/EuroMeSCo
Abstract:
The European Union (EU) is a key trade partner, both in terms of goods and services, for the countries in its Southern Neighbourhood (SN): Morocco, Algeria, Tunisia, Egypt, Israel, Palestine,[1] Jordan and Lebanon.[2] The economic (and otherwise) relationship between the two partners is governed by the Euro-Mediterranean Association Agreements (EMAAs), which came into force from the early to mid-2000s. The ongoing COVID-19 pandemic has, however, affected the trade exchange between the two, just as it has an adverse impact on trade globally. As pointed out in the second chapter of this policy study, one of the sectors of great importance to both the EU and the SN is agri-foods. Despite a general drop in merchandise trade, the agri-food exports from the EU actually increased globally by 0.5% during the first 10 months of the pandemic compared to the same period the year before, up to €151.8 billion. In the case of the SN, exports of agri-foods during the first three quarters of 2020 (year-on-year) grew particularly strongly in the case of Morocco (27.2%) and Algeria (20.3%) and decreased most visibly in the case of Lebanon (-37.9%). As for exports from the EU to the SN, during the same period a particularly impressive growth was witnessed in the case of Tunisia (40.3%) but the value of agri-food imports of Morocco also went up (8.4%). Trade in services, as analysed in chapter three, was hit more severely than trade in goods and declined significantly in all countries in the region during the first months of the pandemic. For Morocco, for instance, during the first three quarters of 2020 it plummeted by almost 60% (year-on-year). Because of lockdowns and travel bans, the tourism sector was among the hardest hit, even though the countries in the SN are mostly visited by travellers from nearby markets: the SN region or Europe – in 2019 the latter constituted between 29.4% (Tunisia) and 68.2% (Morocco) of all arrivals (after excluding nationals of SN countries who live abroad). As a result, tourism revenues plummeted (in Palestine, for instance, by an estimated 68%) and a significant number of people were made redundant; before the pandemic, between just under 6% (Algeria and Israel) and nearly 20% (Lebanon) of all (formally employed) workers were employed in the travel and tourism sector. The disturbances outlined above have adversely impacted food security in the region, as initial data presented in chapter four suggests. While isolating the impact of the COVID-19 pandemic on food security is difficult, as many other factors – such as bad harvest due to weather conditions in Morocco – were in play in 2020, the pandemic clearly affected both supply of and demand for foodstuffs. Some countries were more affected than others, as has already been mentioned above in the case of agri-food trade with the EU. At the same time, the impact on food security within the countries was also far from homogenous, with refugees (e.g., due to loss of work in informal sector) and poorer households – spending a bigger share of domestic budget on increasingly more expensive food products – more often forced to adopt emergency livelihood coping strategies, such as limitation of daily calory intake. Looking towards the post-COVID-19 trade relations, as outlined in chapter one of this study, the EU’s post-pandemic recovery plans and trade strategy review offer a new momentum for the SN countries to strengthen and modernise their framework for trade relations with the EU, to capitalise on potential re-shoring and near-shoring trends in EU and global value chains, and to promote (intra-) regional economic integration. However, the envisaged Deep and Comprehensive Free Trade Areas (DCFTAs) currently under negotiation with Tunisia and Morocco may not be the most realistic option at this stage. A more gradual approach based on sectoral agreements could be adopted in the short- to medium-term instead, leading to a DCFTA-like model of trade integration. Moreover, in order to strengthen the (intra-)regional economic and value chain integration, modernisation of the Pan-Euro-Mediterranean Convention should remain a priority. Finally, the modernisation of EU-SN trade relations should be linked and integrated into the broader (and longer-term) plans for EU-Africa trade relations, with an eye on the “continent-to-continent Free Trade Area” in the long run. Internally, governments in the SN should prioritise development of high productivity service sectors and work towards curbing their reliance on tourism and transportation. In order to achieve that goal, improving the quality of their institutions is as important as upgrading telecommunications infrastructure or adopting incentives such as tax breaks. More broadly, speeding up digital transformation would both facilitate servicification and reduce costs associated with merchandise trade.
Topic:
International Trade and Finance, Regional Cooperation, European Union, Pandemic, and COVID-19
Political Geography:
Europe and Mediterranean

117. Fragile States Index 2021 – Annual Report

Author:
Natalie Fiertz, Nate Haken, Patricia Taft, Emily Sample, and Wendy Wilson
Publication Date:
05-2021
Content Type:
Special Report
Institution:
The Fund for Peace
Abstract:
The Fragile States Index, produced by The Fund for Peace, is a critical tool in highlighting not only the normal pressures that all states experience, but also in identifying when those pressures are pushing a state towards the brink of failure. By highlighting pertinent issues in weak and failing states, The Fragile States Index—and the social science framework and software application upon which it is built—makes political risk assessment and early warning of conflict accessible to policy-makers and the public at large.
Topic:
Climate Change, Authoritarianism, Employment, Fragile States, Economy, Political stability, Conflict, Crisis Management, Peace, Resilience, COVID-19, Health Crisis, Early Warning, and Risk Assessment
Political Geography:
Africa, Europe, Middle East, Tajikistan, Germany, Armenia, Central America, Spain, Lebanon, Timor-Leste, North America, Ethiopia, Southeast Asia, El Salvador, Global Focus, and United States of America

118. Rethinking EU economic governance: Social investment

Author:
Laura Rayner
Publication Date:
12-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
COVID-19 has led to more inequality and poverty in Europe. Together with the accelerating climate crisis and ageing population, massive additional investments in education, healthcare and social infrastructure will be needed to maintain Europe's social protection systems, ease the negative impact of the digital and green transitions, and protect the Union's future prosperity. Unfortunately, the EU's current economic governance model does not leave much room for member states to make these kinds of investments in human capital - also called 'social investment'. This third Policy Brief in a series on reforming EU economic governance sets out five proposals to promote the role of social investment: Alter the pace of fiscal consolidation to be in line with economic growth; Reassess the accounting procedure for public investments, which can, in the long run, split up government investment from government spending and improve the quality of public finances overall; Establish a Future Investment Fund, whereby public investment would be excluded from the calculations of both headline and structural deficits; Reform the European Semester in a way that incorporates the lessons of austerity and prioritises social outcomes alongside fiscal and public administration reforms; Prioritise what matters to citizens - even if it challenges the existing economic orthodoxy.
Topic:
Poverty, Governance, European Union, COVID-19, and Social Investment
Political Geography:
Europe

119. The pandemic will not stop us: The impact of COVID-19 on women’s peace activism in Colombia, the Philippines, South Sudan and Ukraine

Author:
Anne Marie Goetz
Publication Date:
03-2021
Content Type:
Research Paper
Institution:
Global Network of Women Peacebuilders (GNWP)
Abstract:
In Fall 2020, a rapid review of the impact of the COVID-19 pandemic on women peace activists in Colombia, South Sudan, the Philippines and Ukraine was conducted as part of an ongoing partnership between the Global Network of Women Peacebuilders (GNWP) and the New York University Center for Global Affairs (NYU CGA).1 The review found that the crisis has delayed implementation of peace agreements, in particular their gender provisions, shifted women’s peace advocacy to online spaces, impacted the membership composition of women’s peace groups, and diverted women’s organizational energies into humanitarian action to support community resilience.
Topic:
Gender Issues, Women, Pandemic, and COVID-19
Political Geography:
Africa, Europe, Ukraine, Asia, Philippines, Colombia, South America, and South Sudan

120. Covid or Brexit?

Author:
Anand Menon, Jonathan Portes, Alan Wager, Sarah Overton, and Joël Reland
Publication Date:
10-2021
Content Type:
Special Report
Institution:
UK in a Changing Europe, King's College London
Abstract:
The world is emerging from the COVID pandemic, with society and the economy opening up again. The immediate impact has been widespread supply and labour shortages, and rising inflation. But for the UK, the issue is not simply that of post-pandemic disruption, but also the early impacts of the decision to leave the European Union, replacing our membership of the Single Market and customs union with a minimal free trade deal. In what follows, we explore the extent to which current problems in the UK economy are down solely to post pandemic disruption or also the result of the altered terms of trade and labour mobility with the EU.
Topic:
Politics, Labor Issues, European Union, Brexit, Trade, COVID-19, and Society
Political Geography:
United Kingdom and Europe