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11. The Digitalization of EU Public Diplomacy: the pandemic crisis and beyond

Author:
Christos A. Frangonikolopoulos and Eleftheria Spiliotakopoulou
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
This paper explores the digitalization of diplomacy and attempts to shed light on the adaptation level of the European Union by presenting the European External Action Service’s activity on social media and selected Public Diplomacy initiatives during the covid-19 pandemic. The main research questions posed in the study are: a) in what ways has the European Union used digital tools to respond to the coronavirus crisis; and b) what are the (recurring) challenges facing the European Union in its efforts to improve its image in a changing world and enhance its role as a leading global actor? The paper concludes that while the European Union is highly competent in terms of digitalization, it does face challenges, which are partly inherent in the sui generis nature of the European Union as an International Organization. These include the need for deeper integration, better coordination between member states, and further dialogue with the Union’s citizens, and must be met if the EU is to enhance trust and build solidarity, as well as a clearer and more solid European identity.
Topic:
Diplomacy, European Union, Regional Integration, COVID-19, Digitalization, and Adaptation
Political Geography:
Europe

12. Digitalisation for Sustainable Infrastructure: The Road Ahead

Author:
Carlo Secchi and Alessandro Gili
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
In today’s tumultuous and fast-changing times, digitalisation and technology are game changers in a wide range of sectors and have a tremendous impact on infrastructure. Roads, railways, electricity grids, aviation, and maritime transport are deeply affected by the digital and technological transition, with gains in terms of competitiveness, cost-reduction, and safety. Digitalisation is also a key tool for fostering global commitment towards sustainability, but the race for digital infrastructure is also a geopolitical one. As the world’s largest economies are starting to adopt competitive strategies, a level playing field appears far from being agreed upon. Why are digitalisation and technology the core domains of global geopolitical competition? How are they changing the way infrastructure is built, operated, and maintained? To what extent will road, rail, air, and maritime transport change by virtue of digitalisation, artificial intelligence, and the Internet of Things? How to enhance cyber protection for critical infrastructure? What are the EU’s, US’ and China's digital strategies?
Topic:
Science and Technology, Infrastructure, European Union, Sustainability, and Digitalization
Political Geography:
China, Europe, Asia, North America, and United States of America

13. Implications of the European Union’s Digital Regulations on U.S. and EU Economic and Strategic Interests

Author:
Kati Suominen
Publication Date:
11-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
In recent months, the European Union has adopted several sweeping digital regulations, such as the Digital Services Act (DSA) and Digital Markets Act (DMA), while proposing a number of new measures—including the Data Act, the Artificial Intelligence Act, and the Media Freedom Act. These regulations will shape, likely quite dramatically, the environment for doing digital business in Europe and beyond. They will have profound implications on the leading U.S. digital service providers designated by the European Union as “gatekeepers”—large digital services providers that are expected to adhere to regulatory requirements—as well as these companies’ hundreds of millions of transatlantic European business and individual customers. By impacting primarily U.S. companies instead of Asian or European ones, Europe’s digital policies will also shape U.S. and European global strategic and national security interests. This study will assess the potential implications of new and proposed EU digital acts on U.S. digital service providers, on their customers in Europe and the United States, and on the EU and U.S. economies and exports.
Topic:
European Union, Regulation, Regionalism, Strategic Interests, and Digitalization
Political Geography:
Europe, North America, and United States of America

14. The Digital Silk Road and China’s Influence on Standard Setting

Author:
Alex He
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
China is striving to become a leader in international standard setting, and the Digital Silk Road, part of China’s Belt and Road Initiative to expand its global infrastructure and markets, is key to realizing this goal. Both roads depend on standard connectivity, fuelled by Chinese private companies that are the driving force behind China’s growing role as a leader in technology development and shaping standards in both domestic and global markets. However, China faces strong competition to gain more influence in international standard-setting bodies, which are dominated by the European Union and the United States.
Topic:
Infrastructure, Digital Economy, Trade, Digital Culture, Silk Road, and Digitalization
Political Geography:
China, Europe, Asia, North America, and United States of America

15. The productivity paradox: policy lessons from MICROPROD

Author:
Gregory Claeys and Maria Demertzis
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Productivity growth in Europe has been on a downward trend for several decades. Given that productivity growth is a crucial source of output growth, particularly in an aging society like the European Union, it is crucial to understand what is driving this slowdown and what the potential consequences are for our economic model and for citizens’ welfare. Some explanations for this trend are global in nature, but there are also significant differences in country structures in Europe that have led to different outcomes and that need to be accounted for before policy prescriptions can be made. The objective of MICROPROD, an EU-wide research project that runs until the end of 2021, is to contribute to this research strand by using data from various European countries to study the microeconomic mechanisms behind this macroeconomic phenomenon. In particular, the aim is to understand the challenges posed to Europe by the fourth industrial revolution and its impact on productivity in the context of globalisation and digitalisation, and to recommend policies to address these challenges. MICROPROD researchers have so far delivered 20 papers on four broad issues relevant for today’s policy debates: the measurement and effects of intangible capital on productivity; the impact of globalisation, international trade and the integration of global value chains (GVCs) on productivity; factor allocation and allocative efficiency; and finally the social consequences of the two structural shocks Europe has faced in the last two decades: globalisation and technological progress. This Policy Contribution reviews the main conclusions of these 20 MICROPROD papers and how they inform policy debates. However, the mid-point of the three-year MICROPROD project also coincided with the start of the COVID-19 crisis, which might have accelerated some trends or possibly reversed others. We therefore discuss how some of the messages of MICROPROD research may contribute to our understanding of the current crisis and its aftermath.
Topic:
Globalization, Governance, European Union, Macroeconomics, Productivity, and Digitalization
Political Geography:
Europe

16. The EU-US Trade and technology Council: Mapping the Challenges and Opportunities for Transatlantic Cooperation on Trade, Climate, and Digital

Author:
Guillaume Van der Loo, Thijs Vandenbussche, and Andreas Aktoudianakis
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
The EU-US Summit on 15 June 2021 marked the beginning of a renewed transatlantic partner- ship and set an ambitious joint agenda for EU-US cooperation post-COVID-19. The new Biden administration offers the EU the opportunity to re-establish transatlantic relations, which reached their lowest point since World War II under the turbulent Trump administration, and to address the bilateral disputes and tensions that have emerged, partly as a result of Trump’s ‘America First’ policies. One of the key deliverables of the Summit was the establishment of the EU-US Trade and Technology Council (TTC). The TTC aims to deepen EU-US relations on trade and investment and to avoid new technical barriers to trade by cooperating on key poli- cies such as technology, digital policy issues and supply chains. Despite the optimism in Brussels and Washington about renewing and strengthening transat- lantic cooperation, there are several challenges for EU-US cooperation. In the areas of trade, digital and climate in particular several differing views or outstanding disputes (most of them inherited by the Trump administration) will need to be addressed by the new TTC (the first meeting is scheduled on 29-30 September 2021) or other joint bodies. Only then will the EU and the US be able to deliver on the new ambitious transatlantic agenda. This paper will there- fore discuss the key challenges and opportunities for EU-US cooperation in the three inter- related areas of trade, digital and climate. For each of these areas, the outcome of the June 2021 EU-US Summit will be discussed and the challenges and opportunities for delivering on the renewed transatlantic agenda will be analysed. Moreover, this paper will present several policy recommendations, for the TTC or on EU-US cooperation in general, on how to advance the transatlantic partnership.
Topic:
Climate Change, Diplomacy, International Cooperation, International Trade and Finance, Science and Technology, European Union, Digitalization, and Summit
Political Geography:
Europe, North America, and United States of America

17. How to get European businesses to digitalise

Author:
Frederico Mollet
Publication Date:
07-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
Europe’s underperforming tech sector and reliance on foreign technologies has long alarmed its policymakers. But a significant – and often overlooked – factor in the EU’s economic underperformance over the last two decades is its slow business digitalisation. EU industry, especially SMEs, struggles with the prosaic challenge of integrating digital technologies into its business models and operations. The preoccupation tends to be on how to foster new digital start-ups. But what about the digitalisation of existing firms? The EU budget and recovery fund are armed with a range of new EU funding streams and programmes to tackle this challenge. With its 2030 targets and new policy framework, the EU aims to catch up with the previous generation of digital technologies and ensure that it does not miss out on the next wave of transformational change. Otherwise, Europe will fall behind its economic competitors even further. But there are still some gaps in the EU’s game plan for business digitalisation. Frederico Mollet outlines several areas where the new policy framework can be optimised, and new initiatives would be worthwhile: Additional funding should be mobilised from Cohesion Policy funds. Business digitalisation is a critical factor in regional convergence, and so an increased funding share would be in line with the policy’s main objectives. The Commission should use its coordinating and convening powers to get banks to commit to a best practice code, to assess digitalisation loans and improve their staff’s digital knowledge. Public authorities should leverage private partners. Many firms lack the awareness and information necessary to digitalise, but a number of ‘access points’ and private sector networks (e.g. finance providers, B2B businesses, supply chain networks) can reach them. The EU should consider complementing the design and implementation of European Digital Innovation Hubs and transition pathways – its main programmes for supporting business digitalisation directly – with 5 additional components. Taken together, these recommendations will bolster the funding available for business digitalisation, tackle some of the critical barriers to finance, and optimise the delivery of the Commission’s programmes.
Topic:
Political Economy, Science and Technology, European Union, Business, and Digitalization
Political Geography:
Europe

18. Russia’s quest for digital competitiveness: The role of private businesses in securing state interests

Author:
Andrey Indukaev
Publication Date:
12-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
The Russian leadership prioritizes digital technology for the country’s security and international standing, but also for its economic and technological success and development. These diverse goals are closely intertwined within the logic of geoeconomic competition. The Russian authorities have increased their involvement in the ICT sector over the years and this has led to the hybridization of business and state logic of action at all levels. While the state has an upper hand in the relationship, this does not exclude the possibility of mutually beneficial partnerships. Moscow-based start-up NtechLab’s close collaboration with the city of Moscow is a case in point. For private businesses, the Russian state’s proximity is a mixed blessing that creates business development opportunities but also major risks. These risks limit Russia’s capacity to make digital technology the driver of modernization of its economy.
Topic:
Business, Private Sector, Strategic Interests, and Digitalization
Political Geography:
Russia and Europe

19. The Economic Impact of an Online Retail Sales Tax in the UK

Author:
Oxford Economics
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Oxford Economics
Abstract:
Amazon have commissioned Oxford Economics to produce an independent quantitative assessment of the economic implications of the introduction of an online sales tax in the UK. On 27 July 2020, HM Treasury (HMT) announced a call for evidence around the issue of a business rates review. Contained within this document was a consideration of alternative tax bases that could raise revenue for the Exchequer to compensate for any shortfall that might be created by business rates reform. One of the options proposed was an online sales tax (OST). In this context, Amazon have commissioned Oxford Economics to produce an independent quantitative assessment of the economic implications of the introduction of such a tax in the UK. We find that that the introduction of an OST would raise around £1.6 billion in government revenue. The burden of the tax would be split between consumers, online sales platforms, and upstream businesses. Our analysis shows that a majority of the tax’s burden will most likely be borne by consumers who could lose around £1.3 billion in welfare terms. The net inefficiencies due to the OST are estimated to be around £200 million (i.e., 13% of the revenue). The government’s fiscal options will need to be assessed against a range of economic as well as procedural criteria. In our assessment of the OST against the Treasury Select Committee’s principles of taxation, we found that the OST is distortive and also could potentially restrict SMEs from competing in the retail market. Further, the disproportionate impact on households in the lowest income decile and on economically weaker regions of the UK as well as the restrictive effect on the elderly and the disabled raise questions about the fairness of the OST.
Topic:
Economics, Digital Economy, Retail, and Digitalization
Political Geography:
United Kingdom and Europe

20. Fostering digital connectivity in and with the Indo-Pacific

Author:
Brigitte Dekker and Maaike Okano-Heijmans
Publication Date:
04-2021
Content Type:
Special Report
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
pen, safe and inclusive digital connectivity and engage with the region’s thriving digital economies. While Indo-Pacific countries have called for greater maritime presence by European countries in their increasingly contested waters, European actors may have more to offer in the less-discussed but equally contested high-tech and digital domains. Recognizing the opportunities and disruptions that accompany the digital transition and green transformation globally, the EU and its member states need to increase their engagement with governments, commercial and civil-society stakeholders and networks in the Indo-Pacific on a broad array of digitalization issues.
Topic:
Civil Society, European Union, Economy, and Digitalization
Political Geography:
Europe and Indo-Pacific