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41. Transatlantic Paralysis: The US-EU Trade Policy Stalemate and the European Union’s Democratic Deficit

Author:
Thomas J. Duesterberg
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
What is often labeled the democratic deficit in governance of the European Union (EU) is not a a flaw or bug in its architecture, it is a design feature. From its earliest days in the Second World War’s chaotic aftermath, European integration “was essentially an elite project, pursued at a distance from the daily concerns of the national populations in Western Europe.” Also formed as a response to the economic disintegration following the Depression and World War Two, the General Agreement on Tariffs and Trade (GATT) was similarly removed from national or populist politics. It too was an elite, top-down initiative designed to embed nations in a system of international rules largely articulated by technical experts, enforced by a form of international courts, and far removed from national and populist politics. Many of the intellectual proponents of both supranational institutions, from the Austrian School of economics, the ordoliberals emerging in early-20th century Germany, to the London School of Economics indeed shared a distrust of American-style democracy, let alone the various parliamentary democracies whose failure led to the disasters of the 1930s and 1940s. Over the last fifty years, the institutions put in place after World War II have been perfected and have, to a certain extent, ossified. Many of the difficulties in achieving greater US-EU economic coordination in the 21st century have their origins in the institutional design and the subsequent early implementation of early European Community rules during the post-war period. A brief overview of the history of European integration, and the political thinking behind it, helps explain the current paralysis in contemporary transatlantic cooperation, including in a joint approach to the challenge of Chinese mercantilism and its growing international reach.
Topic:
Economics, Governance, Democracy, Trade, and Transatlantic Relations
Political Geography:
Europe, North America, and United States of America

42. Transatlantic tools: Harmonizing US and EU approaches to China

Author:
David Barkin and Agatha Kratz
Publication Date:
11-2021
Content Type:
Special Report
Institution:
Atlantic Council
Abstract:
Close cooperation between the United States and the European Union is essential if advanced economies are to develop effective responses to the array of challenges presented by China. Washington and Brussels share concerns regarding competitive distortions arising through the state’s role in the Chinese economy, the use of advanced technologies to repress ethnic minorities and fuel its military, and the spread of authoritarian influence through the Belt and Road Initiative (BRI). However, there has been a lack of coordination and cooperation in recent years between the US and EU when it comes to responding to China’s policies and behaviors. Washington’s focus on risks to US economic and national security contrasts with an emphasis in Brussels on ensuring reciprocity and leveling the economic playing field. But, with the transatlantic relationship back on a better footing under the Biden administration, new structures for transatlantic dialogue being put in place, and a greater focus on the Indo-Pacific in both Washington and Brussels, this paper argues there is now an opportunity for the United States and Europe to learn from each other and harmonize some of their China-related efforts.
Topic:
Human Rights, Markets, Sanctions, European Union, Regulation, Trade, and Transatlantic Relations
Political Geography:
China, Europe, and United States of America

43. The Logic (and Grammar) of US Grand Strategy: Implications for Germany and Europe

Author:
Markus Jaeger
Publication Date:
06-2021
Content Type:
Special Report
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
Although President Biden has made US foreign policy more predictable, its medium- and long-term direction and concomitant implications for transatlantic relations are less certain. This report presents three scenarios of how US strategy might evolve. They provide insight into how the United States behaves in the spheres of security and international economy under different conditions and why, suggesting ways for the EU and Germany to preemptively mitigate risks and positively influence future policy.
Topic:
Security, Economics, Grand Strategy, Risk, and Transatlantic Relations
Political Geography:
Europe, Germany, North America, and United States of America

44. Germany’s Debt Brake and Europe’s Fiscal Stance after COVID-19

Author:
Shahin Vallée, Jérémie Cohen-Setton, and Dominik Buhl
Publication Date:
05-2021
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
Germany’s plan to return to its debt brake creates a serious risk of premature fiscal tightening. Given that the fiscal divide between Europe and the US will widen sharply in 2021, a hasty return to European and German fiscal rules would stifle recovery and undermine efforts to rebuild transatlantic ties in trade and macroeconomic cooperation. This paper proposes several practical options to attenuate the fiscal drag associated with a return to the debt brake and calls for a broad debate on its reform.
Topic:
Debt, European Union, Finance, Transatlantic Relations, and COVID-19
Political Geography:
Europe, Germany, and United States of America

45. After the OECD-Deal: Transatlantic Cooperation and International Corporate Tax Reform

Author:
Shahin Vallée and Ben Judah
Publication Date:
09-2021
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
Tax avoidance by multinational corporations has become a central feature of the world economy. After decades of opposition, the US wants to set a global minimum corporation tax rate and limit tax avoidance, but it will need all of Europe to stand behind it. A historic 130-country OECD tax agreement is giving some hope but both sides of the Atlantic will need to confront deeply rooted interests if they want to implement the deal and build a new cooperative tax reform framework.
Topic:
International Cooperation, Reform, Economy, Transatlantic Relations, Corporate Tax, and OECD
Political Geography:
Global Focus and United States of America

46. The Hidden G2 for Democratic Tech Governance is the EU-US Relationship: A Starter Kit

Author:
Tyson Barker
Publication Date:
06-2021
Content Type:
Commentary and Analysis
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
The EU and the United States are expected to launch a Trade and Technology Council (TTC) on the sidelines of the US-EU Summit in mid-June, which could present a rare opportunity to jumpstart the EU-US technology relationship. Against the backdrop of rapid technological change, a transatlantic digital technology community could be a 21st-century answer to the Coal and Steal Community – a big democratic project that reaches across borders, knits like-minded communities together in a manner that reinforces shared values, and codifies standards of market access, increased interdependence, and intensified political dialogue.
Topic:
Science and Technology, Governance, European Union, Democracy, and Transatlantic Relations
Political Geography:
Europe and United States of America

47. Four Scenarios for the Iran Nuclear Deal

Author:
Riccardo Alcaro
Publication Date:
11-2021
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
After a hiatus of over five months, negotiations to restore the Joint Comprehensive Plan of Action (JCPOA), commonly known as the Iran nuclear deal, have finally resumed in Vienna. Struck in July 2015 by Iran and a group of six powers – France, Germany and the UK plus China, Russia and the US, as well as the EU (E3/EU+3)–, the JCPOA placed limits on Iranian nuclear activities, while also introducing a highly intrusive inspection regime by the International Atomic Energy Agency (IAEA). The deal is in a comatose state due to former US President Donald Trump’s decision to unilaterally pull out of the agreement and re-adopt all sanctions on Iran in May 2018. In response, since May 2019 Iran has progressively reduced its compliance with its non-proliferation obligations under the deal.
Topic:
Foreign Policy, Treaties and Agreements, Disarmament, Nonproliferation, Transatlantic Relations, and JCPOA
Political Geography:
Europe, Iran, Middle East, and United States of America

48. Europe’s Strategic Compass: Merits and Shortcomings

Author:
Riccardo Perissich
Publication Date:
12-2021
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
Europe’s “Strategic Compass” proposes a number of initiatives to enable the EU to act in the security and defence domain and confront the many challenges impacting European interests. The document, prepared by the European External Action Service (EEAS) under the responsibility of Josep Borrell, the EU High Representative and Vice President of the Commission, will be debated by defence and foreign ministers over the next few months and subsequently adopted as an official strategy statement sometime during the French Presidency of the European Council next year.
Topic:
Defense Policy, NATO, Politics, Military Affairs, European Union, Institutions, and Transatlantic Relations
Political Geography:
Europe and United States of America

49. Protect, Constrain, Contest: Approaches for coordinated transatlantic economic and technological competition with China

Author:
François Chimits, Ashley T. Lenihan, Jonathan Liebenau, Stephen Paduano, Anthony Vinci, and Peter Watkins
Publication Date:
01-2021
Content Type:
Special Report
Institution:
LSE IDEAS
Abstract:
The Biden Presidency offers opportunities for a renewed effort at formulating a coordinated allied approach to technological and economic competition with China. The latest report from China Foresight at LSE IDEAS provides a guiding framework for transatlantic coordination, and offers insights into key elements of future cooperation. While challenges abound, the opportunities for action prove just as great in number.
Topic:
Economics, Science and Technology, Transatlantic Relations, and Strategic Competition
Political Geography:
China, Asia, and United States of America

50. Charting a Transatlantic Course to Address China

Author:
Julianne Smith, Andrea Kendall-Taylor, Carisa Nietsche, and Ellison Laskowski
Publication Date:
10-2020
Content Type:
Special Report
Institution:
Center for a New American Security (CNAS)
Abstract:
Mounting competition between China and liberal democracies will shape the course of the 21st century. The gravity and scope of the challenges that China poses have permeated the transatlantic policy agenda and become a focal point in U.S.-Europe relations. Whereas China has long been a source of disagreement and even tension between the transatlantic partners, in the past two years views have converged. The Chinese Communist Party’s (CCP) assertive actions—its “Wolf Warrior” diplomacy, aggressive influence operations, human rights violations at home, and elimination of fundamental freedoms in Hong Kong—have increased concerns in both the United States and Europe. There is now fertile ground for transatlantic cooperation on everything from reducing dependency on Chinese trade and investment to setting global norms and standards for the future. Yet, despite this convergence of views and interests, there is still no roadmap for how such cooperation should progress. This report outlines such an approach. It is based on the premise that the time is ripe for greater transatlantic cooperation on China. It also recognizes the comprehensive nature of the task at hand. Today’s controversies with China over trade, investment, technology, and global governance are all part of a larger competition between political systems and worldviews. The breadth of the challenge means that the United States and Europe must compete with China across multiple domains. This report lays out a roadmap for doing so, outlining concrete recommendations across the four sectors of technology, investment, trade, and global governance. By working together, the United States and Europe can pool the resources and leverage needed to push back against the CCP in these areas and develop preferred alternatives that advance strategic priorities for both sides of the Atlantic. Moreover, the strategies outlined in this report will also serve a second purpose: re-energizing the ailing relationship between Europe and the United States.
Topic:
Security, International Cooperation, Transatlantic Relations, and Strategic Competition
Political Geography:
China, Asia, North America, and United States of America