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271. Post-Corona Europe: Challenges from the Far East

Author:
Sebastian von Münchow
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Institute for Development and International Relations (IRMO)
Abstract:
The coronavirus crisis is severely impacting European Union member states’ medical sector, economy, national welfare systems and societies in general. It is premature to judge whether governmental restrictions will flatten the curve of infected citizens, thus providing hope for a return to European business as usual. At present, the virus has caused human tragedy, a stock market meltdown of around 40 %, severe trade restrictions and has led to complete lockdowns of regions and metropolitan areas. It does not take a lot of foresight to see that any “after” the coronavirus will be much different. For obvious reasons, current attention focuses on enhancing disaster management, developing a vaccine, producing COVID-19 test kits and adjusting supply chains for pharmaceutical products. And, of course, developing economic recovery measures - such as earmarking billions of euros to cope with an unprecedented rise in coronavirus on the EU from an International Relations perspective. It will attempt to shed light on a post-Corona Europe and the challenges emanating from beyond its Eastern flank. It will revisit the state of affairs in Europe at the turn of the decade and examine China’s behavior during the pandemic.
Topic:
Regional Cooperation, European Union, Public Health, Pandemic, and COVID-19
Political Geography:
Europe

272. Schengen and COVID-19 Combined

Author:
Sandro Knezović
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Institute for Development and International Relations (IRMO)
Abstract:
The idea of freedom of movement of persons within the European continent rests at the heart of the European project and is embedded in the founding treaties of the European Union (EU). Political and economic unification of the European continent is directly related to the abolition of internal borders in a sustainable and manageable way. There is a track-record of significant benefits it brings for many years to the economies of the EU member states and to the European single market as a whole. Therefore, the free movement of persons we know it. The freedom to travel, regardless of the purpose, was perceived as something that is prescribed to all Europeans. functional consolidation of the Schengen zone, the legitimacy of the project and the idea it advocated significantly increased, attracting the interest of other states in the European continent to join. This caused an enlargement process of the regime, spreading the area of freedom of movement across Europe and fortifying the success of EU enlargement process in the post-Cold War period. However, on a practical level, as any other idea about sharing responsibilities in the field of security, it raised lots of concerns in the national capitals of the EU member states and made compromise-building that is necessary for the viable decision-making process a very difficult task. This logically affected the institutional development and accordingly complicated its structure and capacity to adequately respond to emerging challenges. It also increased a possibility for having the member states sliding back into their national brackets once the crisis erupts, which we witnessed during the big migrant wave in 2015. Difficulty to reach a consensus at the EU level, combined with the necessity to react swiftly to an immediate challenge, pushed the member states into reintroducing border checks and suspending freedom of movement institutionalised with the Schengen regime. The same happened with the recent COVID-19 crisis that dramatically affected everyday life of European citizens and forced them to adapt to unprecedented restrictions in the field of home affairs. Not only have the member states been forced into reintroducing border controls, but almost entire continent was pushed into a lockdown. Freedom of movement was allowed only within local communities (municipalities), while travel beyond local margins was authorised only to those with special permits.
Topic:
Regional Cooperation, European Union, Public Health, Schengen, Pandemic, and COVID-19
Political Geography:
Europe

273. The End of the Second Karabakh War: Has a Lasting Peace Come to the South Caucasus?

Author:
Krševan Antun Dujmović
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Institute for Development and International Relations (IRMO)
Abstract:
In a year in which the whole world seemed to have frozen its conflicts, uniting its efforts to curb the COVID-19 pandemic, a war broke out between Armenia and Azerbaijan over Nagorno-Karabakh and surrounding regions in Azerbaijan. This was a full-scale armed conflict involving two nations in the South Caucasus, but unlike the first Karabakh war that lasted for more than six years, this war lasted only six weeks. Mainly due to modern warfare and deployment of new sophisticated technology, namely unmanned aerial vehicles (UAVs) by Azerbaijan, a long war of attrition was avoided. Thus, the second war caused a significantly lower destruction of properties and cultural sites in this region of rich history on the crossroads between Asia and Europe, the Caspian and the Black Sea. The short duration of this war also insured that no big players neighboring Armenia and Azerbaijan get directly involved on either of the two warring sides, which could have had incomprehensible consequences for the international community. This is because the countries neighboring the conflict area are substantively different comparatively to what they were in the first half of the nineties when the first Karabakh war took place. Firstly, to the north, Russia was then a country facing disintegration and social implosion, with its military in disarray, unable to quell a rebellion in its small republic of Chechnya in the North Caucasus. Today, Russia is the second military force in the world, spreading its political and military clout far beyond its borders. Secondly, to the west, Turkey has become a major political power in the region, assertive and ambitious, the size of its military is second only to that of the US in NATO. Thirdly, to the south, Iran which was by late eighties a country weary of conflicts after a long war with Iraq, is today a regional power wielding it leverage in most of the Middle East. Considering this, the second war in Karabakh had a potential of erupting to a wider regional conflict, and considering the players involved, even into a global conflict. However, while Europe was introducing a second wave of lockdowns in order to grind to a halt the coronavirus, and while the US was embroiled in the presidential election campaign, shattered by an unprecedented economic slump and civil unrest, the war between Armenia and Azerbaijan erupted without much attention of the international community. When the conflict finally started to gain the interest of the world, it rapidly ended, leaving the international community once again perplexed. Has the ceasefire agreement signed between Armenia and Azerbaijan on November 9 brought a lasting peace to the South Caucasus, or is the truce just temporary, freezing the conflict for yet another round of hostilities?
Topic:
Diplomacy, Conflict, Peace, and COVID-19
Political Geography:
Europe, Asia, and South Caucasus

274. Is the COVID-19 crisis an opportunity to boost the euro as a global currency?

Author:
Gregory Claeys and Guntram B. Wolff
Publication Date:
06-2020
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The euro never challenged the US dollar, and its international status declined with the euro crisis. Faced with a US administration willing to use its hegemonic currency to extend its domestic policies beyond its borders, Europe is reflecting on how to promote it currency on the global stage to ensure its autonomy. But promoting a more prominent role for the euro is difficult and involves far-reaching changes to the fabric of the monetary union.
Topic:
Health, European Union, Currency, and COVID-19
Political Geography:
Europe and Global Focus

275. The financial fragility of European households in the time of COVID-19

Author:
Maria Demertzis, Marta Dominguez-Jimenez, and Annamaria Lusardi
Publication Date:
07-2020
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The concept of household financial fragility emerged in the United States after the 2007-2008 financial crisis. It grew out of the need to understand whether households’ lack of capacity to face shocks could itself become a source of financial instability.
Topic:
Governance, European Union, Finance, Macroeconomics, and COVID-19
Political Geography:
Europe

276. Greening the recovery by greening the fiscal consolidation

Author:
Ben McWilliams, Simone Tagliapietra, and Georg Zachmann
Publication Date:
07-2020
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
In the wake of COVID-19, some economic recovery policies will help green the economy – for example, energy renovation of buildings. But there are limits to the share of stimulus that can be explicitly green. The European Union should therefore also green the fiscal consolidation by setting out the path to much higher carbon prices than today. This would guide investment and provide revenues to help the fiscal consolidation.
Topic:
Climate Change, Energy Policy, European Union, Economy, Renewable Energy, and COVID-19
Political Geography:
Europe

277. An effective economic response to the Coronavirus in Europe

Author:
Maria Demertzis, André Sapir, Simone Tagliapietra, and Guntram B. Wolff
Publication Date:
03-2020
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
'Whatever it takes' needs to be the motto to preserve lives and reduce the impact on the economy of the epidemic.
Topic:
Governance, Economy, Central Bank, Macroeconomics, and COVID-19
Political Geography:
Europe

278. Racing against COVID-19: a vaccines strategy for Europe

Author:
Reinhilde Veugelers and Georg Zachmann
Publication Date:
04-2020
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
This Policy Contribution proposes a staged support scheme to tackle the COVID-19 vaccine challenge and a moon shot programme to meet the challenge of future pandemics.
Topic:
Health, Science and Technology, Innovation, Vaccine, and COVID-19
Political Geography:
Europe

279. Rebooting Europe: a framework for a post COVID-19 economic recovery

Author:
Julia Anderson, Simone Tagliapietra, and Guntram B. Wolff
Publication Date:
05-2020
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
COVID-19 has triggered a severe recession and policymakers in European Union countries are providing generous, largely indiscriminate, support to companies. As the recession gets deeper, a more comprehensive strategy is needed. This should be based on four principles: viability of supported entities, fairness, achieving societal goals, and giving society a share in future profits. The effort should be structured around equity and recovery funds with borrowing at EU level.
Topic:
Climate Change, Energy Policy, Global Recession, European Union, and COVID-19
Political Geography:
Europe

280. The European Central Bank in the COVID-19 crisis: whatever it takes, within its mandate

Author:
Gregory Claeys
Publication Date:
05-2020
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
To keep the euro-area economy afloat, the European Central Bank has put in place a large number of measures since the beginning of the COVID-19 crisis. This response has triggered fears of a future increase in inflation. However, the ECB's new measures and the resulting increase in the size of its balance sheet, even if it were to be permanent, should not restrict its ability to achieve its price-stability mandate, within its legal obligations.
Topic:
Governance, Central Bank, Macroeconomics, Judiciary, and COVID-19
Political Geography:
Europe