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261. Next-Generation Perspectives on Taiwan: Insights from the 2024 Taiwan-US Policy Program

Author:
Bonnie S. Glaser, Joshua Stone, Alicja Bachulska, Viking Bohman, and Francesca Ghiretti
Publication Date:
08-2024
Content Type:
Working Paper
Institution:
German Marshall Fund of the United States (GMFUS)
Abstract:
The papers in this compendium were written by 11 members of the 2024 Taiwan-US Policy Program (TUPP) delegation: Alicja Bachulska, Viking Bohman, Francesca Ghiretti, Heather Hwalek, Leland Lazarus, Lauren Racusin, Friso Stevens, Joshua Stone, Brian Volsky, Theresa Winter, Adrienne Wu. Transatlantic attention to Taiwan has surged in recent years for several reasons. First, Russia’s illegal invasion of Ukraine in February 2022 has led to increased concern in the United States and Europe that Beijing’s growing military capabilities and declining confidence in its ability to achieve peaceful reunification will soon lead the People’s Republic of China (PRC) to attempt a takeover of Taiwan by force. The cost of such a war would carry a price tag of around $10 trillion, equal to about 10% of global GDP, according to Bloomberg Economics, far higher than the economic impact of the 2008 global financial crisis, the COVID-19 pandemic, and the war in Ukraine. The devastating impact of a Taiwan Strait conflict has provided a wake-up call for leaders in Europe who now echo the Biden administration’s warnings to PRC leader Xi Jinping to refrain from using violence to change the status quo in the Taiwan Strait. In addition, Taiwan is now a regular agenda item in the US-EU Consultations on the Indo-Pacific and the US-EU Dialogue on China. Second, intensifying US-China strategic competition has increasingly focused on technology with chips at the center. Taiwan produces more than 60% of the world’s semiconductors and more than 90% of the most advanced ones. A single company, Taiwan Semiconductor Manufacturing Corporation (TSMC), manufactures most of those chips. Recognition of Taiwan’s dominant role in the semiconductor supply chain has provided another reason to bolster deterrence. It has also sparked interest in “friendshoring” and “onshoring” semiconductor manufacturing. TSMC plans to start production at its first fab in Arizona in 2025 and will break ground on another in Dresden at the end of 2024 with an estimated completion date of 2027. Recognizing the rising geopolitical risks and their own strategic dependencies, the United States and the EU have made building resilient supply chains a priority, especially in semiconductors. In its 2021 Indo-Pacific Strategy, Brussels explicitly committed the EU to engaging with Taiwan in creating resilient supply chains. Third, rising concern in the United States and Europe about election interference and disinformation have sparked interest in learning from Taiwan’s experience in combatting such threats. In the run-up to the January 13, 2024, presidential and legislative elections, PRC attempts to interfere in Taiwan’s politics surged to unprecedented levels through economic coercion, direct political meddling, displays of military force, and manipulation of social media. As the United States and many European countries prepare for their own national elections this year, they are engaging with experts from Taiwan to better understand PRC tactics and the tools that Taiwan successfully employed to counter PRC interference. Fourth, the United States and Europe increasingly recognize that Taiwan’s vibrant and successful democracy is under threat from an authoritarian regime. Taiwan has received high marks for protecting political rights and holding free and fair elections. Taiwan’s democratic achievements are even more impressive when set against the backdrop of a deterioration in freedom worldwide. Like other industrialized democracies, Taiwan faces a multitude of challenges that are especially difficult to address in the face of PRC efforts that prevent Taiwan’s government and its people from interacting with the world. Taiwan’s exclusion from international organizations also hampers the world’s ability to develop effective solutions to myriad problems. The Taiwan-US Policy Program (TUPP) was launched in 2017 to encourage young professionals from the United States to include Taiwan in their research and help Taipei expand its global networks. In 2022, TUPP was expanded to include young professionals from Europe in support of GMF’s mission of promoting transatlantic cooperation. TUPP enables future leaders to acquire a deeper understanding of Taiwan and its relations with the United States through meetings with officials and experts in Washington, DC, followed by a visit to Taiwan to gain first-hand exposure to its politics, culture, and history. Experiencing Taiwan influences how these future leaders approach their work and their writing. It impacts their worldview by imbuing them with an appreciation for Taiwan’s history and commitment to the principles of democracy and human rights that undergird the existing international order. It also reinforces the importance of maintaining robust bilateral relations and strengthening international support for maintaining peace and stability in the Taiwan Strait. The 2024 TUPP cohort traveled to Taiwan in February for an intense week of meetings and activities. Each participant gained insights into Taiwan and its role in their respective fields. This year’s delegation comprised five Americans and five Europeans. Over time, TUPP seeks to create a body of global experts with firsthand knowledge of Taiwan who support sustaining and expanding its international ties. I am grateful to the Henry Luce Foundation, the Global Taiwan Institute, and the Taiwan Foundation for Democracy for their support of this goal. The contributions here, written by the entire 2024 TUPP delegation, underscore the importance of deeper study and understanding of Taiwan. I sincerely hope that they stimulate continued transatlantic and global interest in Taiwan and its future.
Topic:
Security, Foreign Policy, European Union, Geopolitics, and Trade
Political Geography:
China, Europe, Taiwan, Asia, Poland, Germany, Latin America, United States of America, and Indo-Pacific

262. Pivotal Powers 2024: Innovative Engagement Strategies for Global Governance, Security, and Artificial Intelligence

Author:
Alexandra de Hoop Scheffer, Sharinee Jagtiani, Kristina Kausch, Garima Mohan, Martin Quencez, Rachel Tausendfreund, and Gesine Weber
Publication Date:
11-2024
Content Type:
Working Paper
Institution:
German Marshall Fund of the United States (GMFUS)
Abstract:
States outside the transatlantic alliance have gained leverage in international affairs in recent years and, with that, the potential to significantly reshape the global order. Engagement with these "pivotal powers", which include Brazil, Indonesia, India, Nigeria, Saudi Arabia, South Africa, and Türkiye, is of paramount importance for Europe and the United States. "Pivotal Powers 2024: Innovative Engagement Strategies for Global Governance, Security, and Artificial Intelligence" offers tactics for enhancing Western cooperation on global challenges with these countries. This report builds on GMF reports from 2012 and 2023.
Topic:
Security, Governance, European Union, Geopolitics, Artificial Intelligence, and Transatlantic Relations
Political Geography:
Africa, Turkey, Middle East, India, Southeast Asia, and United States of America

263. Europe and NATO: Mountains Ahead

Author:
W. Robert Pearson
Publication Date:
08-2024
Content Type:
Journal Article
Journal:
American Diplomacy
Institution:
American Diplomacy
Abstract:
The European Union has been an unprecedented success of diplomacy and cooperation. In the European mind, there has always been a dream to reconnect the broken parts left behind with the fall of the Roman Empire. For fifteen centuries, the tool for this project was warfare and political domination by one country or another. These measures failed in chaos and catastrophe. The last – the greatest conflict the world had ever seen – inspired Europeans to begin to rebuild the continent on an entirely different foundation. The European Union emerged and with it the NATO alliance, forming a link of transatlantic security that has held together with triumphs, divisions, and similar but separate interests for 75 years. The EU has become a major moral voice globally. In environmental protection, health diplomacy, internet privacy protection, financial data protection, anti-trust actions, the peaceful use of space, careful husbandry of marine resources and areas, and support for sustainable and resilient life for humans, among other commitments, Europe has offered outstanding leadership and contributions that are evident and admired.
Topic:
NATO, Diplomacy, European Union, and Cooperation
Political Geography:
Europe and North America

264. Türkiye’s and the EU’s Coordinated and Divergent Approaches to the 2011 Syrian Crisis

Author:
Yusuf Avar
Publication Date:
06-2024
Content Type:
Journal Article
Journal:
Turkish Journal of Middle Eastern Studies
Institution:
Sakarya University (SAU)
Abstract:
The Syrian crisis has prompted immediate reactions from the EU and a few other countries, including the US, Russia, and Türkiye, as well as some of their proxies. This research purposefully limits itself to examining Türkiye’s and the EU’s reactions to the Syrian civil war. According to the study’s results Türkiye and the EU have differences and similarities in six key policy areas: (1) Assad’s oppressive actions against its people drew criticism from Türkiye and the EU. (2) Türkiye and the EU have suffered as a result of the ISIS danger resulting from the Syrian civil conflict. (3) Türkiye and the EU both have humanitarian concerns and have made an effort to assist Syrian refugees. (4) Türkiye has engaged in two military operations in northern Syria in opposition to the YPG. The EU denounced these military maneuvers by Türkiye. (5) The EU and Türkiye have had discussions over the issue of foreign fighters. The EU criticized Türkiye as it failed to secure its borders, and as a result, foreign fighters utilized the country as a transit between Syria and European nations. (6) Despite opposition from the EU, Türkiye has insisted on creating a “safe zone” in Syria for Syrian refugees.
Topic:
Foreign Policy, European Union, and Syrian War
Political Geography:
Europe, Turkey, Middle East, and Syria

265. Differentiated Integration in the EU Regarding the Migration Crisis: Disputes Between the Member States

Author:
Buket Ökten Sipahioğlu
Publication Date:
04-2024
Content Type:
Journal Article
Journal:
Journal of Academic Inquiries
Institution:
Sakarya University (SAU)
Abstract:
The European Union (EU) has been challenged by several crises lately. In addition to Brexit, the Euro crisis, and the migration crisis; global issues such as the coronavirus pandemic and the Russian attack on Ukraine affected the EU. The migration crisis, on the one hand, differs from the above-mentioned crises with one remarkable feature. The member states have no real consensus about forming a common migration policy. Besides, for geographic reasons, some member states put much more burden on immigrants. Agreeing on immigration becomes impossible for the border countries on the migration route and also transit countries. The paper argues that, unlike the other crises of the EU, the migration crisis reinforces EU integration in such a way that disputes between member states prevent the EU from making institutional changes about the issue. The study results assume that the other above-mentioned crises, on the other hand, stimulated institutional change throughout the EU. In light of this information, this study evaluates, using a method of relevant literature review and comparing the arguments of the researchers, how the migration issue became a subject of dispute between member states by evaluating the 2015 crisis.
Topic:
European Union, Refugees, Regional Integration, Regional Politics, and Migration Policy
Political Geography:
Europe

266. Investigation of Connectedness Effects in the Euro Region: The Case of the Real Estate Prices Index

Author:
Öznur Taşdöken and Hakan Kahyaoğlu
Publication Date:
06-2024
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
Shocks occurring in the housing market among countries using the common currency in the European Union also cause fluctuations in real estate market prices. Therefore, the analysis of the spread and mutual influence of price fluctuations in the real estate market on the economies of countries becomes essential in the implementation of macroeconomic and common monetary policies. In terms of the social and economic impact of the housing market, this information has become the most important source for understanding countries’ investment preferences and price dynamics. Consequently, what initially begins as country-specific shocks in housing markets often evolves into a structure in which these shocks affect housing markets in other countries. Within this framework, the primary objective of this study is to present findings regarding the estimation of parameters related to the interconnectedness of shocks occurring in the housing markets of countries using the single currency of the European Union with other countries’ housing markets.Otherwise, it explores the macroeconomic impacts of countries’ housing markets in the Eurozone due to the mutual interdependence among these countries.The main findings obtained from the study indicate that shocks in the left tail (τ = 0.05) and right tail (τ = 0.95) have a greater impact on connectivity than shocks obtained from median predictions. This demonstrates that relying solely on median-based predictors is not appropriate for examining return transmissions associated with extreme positive/negative events. This is because shocks in the housing market propagate more strongly in the right and left tails than in the median.
Topic:
Economics, European Union, Real Estate, Housing Market, and Interconnectedness
Political Geography:
Europe

267. How the EU can – and should – enhance its security and global competitiveness

Author:
Stefania Benaglia, Steven Blockmans, Michael Emerson, Tinatin Akhvlediani, Ceren Ergenc, and Fanny Sauvignon
Publication Date:
09-2024
Content Type:
Special Report
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
To achieve the objectives of security and competitiveness the EU will absolutely need to prioritise its enlargement policy, defence strategy and global partnerships over the coming years to 2030 and beyond. To make the EU fit for 30+ members, it will have to start by reforming its enlargement methodology towards a ‘staged accession’ procedure and move towards more qualified majority voting, alongside adapting its budget to accommodate new members. Accession negotiations will need to have ironclad security commitments and the EU should assist candidates in shoring up their own defences, as well as beefing up its own Member States’ military capacities. The EU also has no choice but to become a security provider for the entire continent. To strengthen its overall global competitiveness, the EU should boost Europe’s defence industry, ramp up the production of much-needed capabilities, tackle procurement issues and harmonise technical and operational standards. Collaboration with regional partners through the Global Gateway is also important but the EU shouldn’t position itself as an exclusive alternative to China’s Belt and Road Initiative. It must also actively engage all parties in the Middle East peace process to counterbalance China’s influence and (re)assert itself as a key regional player. The India-Middle East-Europe Economic Corridor (IMEC) will test the EU’s ability to maintain its global relevance and uphold its values.
Topic:
Security, Foreign Policy, Defense Policy, European Union, Competition, and Enlargement
Political Geography:
Europe

268. The Impact of Ukraine’s Accession on the EU’s Economy

Author:
Tinatin Akhvlediani and Veronika Movchan
Publication Date:
03-2024
Content Type:
Special Report
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
The groundwork for Ukraine’s integration into the EU’s single market was laid by the EU-Ukraine Association Agreement (AA). A key component of the AA, the Deep and Comprehensive Free Trade Area (DCFTA), paved the way for Ukraine’s gradual integration into the EU’s single market. Building on the DCFTA, Ukraine’s integration into the EU’s economy has significantly advanced since February 2022. In response to the invasion, the EU swiftly and temporarily but completely liberalised its market for Ukrainian goods through Autonomous Trade Measures (ATMs) and triggered the Temporary Protection Directive that has enabled over 4 million Ukrainian refugees to reside and work in the EU. With a continued swift trajectory, Ukraine’s integration is set to be much more comprehensive by the (yet unknown) time of accession. As this study outlines, the prospect of Ukraine’s accession to the EU brings some challenges but holds immense potential for mutual economic benefit. Free movement of goods. Full access under the ATM has not caused drastic changes in the EU’s imports or in the functioning of the single market in general. Yet, to avoid disruptions in the future, the accession treaty could include transition periods for full market access for Ukrainian goods in those EU Member States that may be vulnerable to a sharp increase in imports. Full trade liberalisation in services is expected to have more trade-easing effects, particularly for the EU, as it holds most of the reservations. Ukraine’s main EU partners in services trade are Germany and Poland, but services trade with Ukraine’s other major partners, including Estonia, has been steadily increasing since the implementation of the EU-Ukraine DCFTA. Thus, trade absorption capacity should be sustainable. Free movement of capital. Given the underdevelopment of Ukraine’s financial sector and capital markets, legislative and policy alignment should serve as a solid foundation for financial deepening in the country. Eased movement of capital will make it significantly easier to conduct business and trade and commercial and non-commercial payments between Ukraine and the EU. Free movement of workers. As long as Ukrainian workers fit the labour demands of the receiving EU countries, they could fill the gap in the labour supply and complement rather than replace local workers. An enlarged EU as a global supplier. Ukraine could strengthen the EU’s position in critical materials and key agricultural products, as well as contribute to the EU technologically with its emerging ICT sector and increasing skills and know-how in IT and computer services. Ukraine’s reconstruction and sustainable recovery is a significant challenge that requires substantial financial support. Yet, by addressing these considerations with foresight and diligence, Ukraine’s accession to the EU could not only elevate Ukraine’s standing but could also strengthen the EU’s position on the global stage.
Topic:
Reconstruction, European Union, Economy, Regional Integration, Trade, Recovery, and Russia-Ukraine War
Political Geography:
Europe and Ukraine

269. Maximising EU Concessional Finance for Greater Leverage and Impact: An Options Spread

Author:
Mikaela Gavas, Samuel Pleeck, Andrew Rogerson, San Bilal, and Karim Karaki
Publication Date:
03-2024
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
Already constrained by the economic aftershocks of COVID-19, the impact of the war in Ukraine, and the food and climate crisis, low-income countries and lower-middle-income countries now face a combination of soaring debt and high interest rates. Confronted with insufficient liquidity to respond to these challenges and unable to access capital markets, they need additional concessional finance, in the form of grants and soft loans. The European Union (EU) already provides concessional finance, but it is not nearly enough to respond to their growing needs. With European budgets under more strain than ever, this paper puts forward the case for finding ways to maximise the overall efficiency and impact of European concessional finance and in doing so, better articulating and combining grants and concessional loans in its support and investment toolbox. To remain relevant and maintain relationships and influence with partner countries–even more in a world characterised by the polycrisis and geopolitical fragmentation–the EU will have to step up its game when it comes to providing more strategic concessional finance. The paper sets out six complementary and non-mutually exclusive options for maximising EU concessional finance with a view to a strategic set of decisions to be made for the next EU Multiannual Financial Framework.
Topic:
Development, European Union, Financial Institutions, and Sustainable Development
Political Geography:
Europe

270. The EU’s Global Role: A Third Node of Power

Author:
Mikaela Gavas and W. Gyude Moore
Publication Date:
07-2024
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
In recent years, a quest for economic security and strategic autonomy have come to define the European Union (EU)’s politics. The need to compete globally for the finite resources required for the green and digital transitions, and rivalries between the US and China for global dominance, are all driving this agenda. And while the COVID-19 pandemic and the war in Ukraine highlighted countries’ global dependencies, deepening geopolitical tensions have brought national security considerations to the fore. At the same time, the rise of populist parties across Europe is fuelling calls for countries’ national interests to play the defining role in development cooperation. This presents a challenging environment for EU development cooperation. Caught up in this new paradigm, development cooperation is increasingly viewed as a lever of hard power and an instrument of influence which can be used to reinforce Europe’s strategic autonomy and economic security. With European interests central to EU development cooperation strategy, the climate of distrust between Europe and its partners is being heightened, given the not-so-distant memory of European vaccine “nationalism” during the COVID-19 pandemic, the different standards some Europeans apply with regards to fossil fuel exploration and the negative repercussions the Green Deal will have on African countries’ growth and development. However, shaping EU development policy in this fashion, with geostrategic interests at its forefront will be more detrimental than helpful for the EU in the medium to long-term, and carries the risk of fuelling conflicts of interest with partners. Geo-economic fragmentation and a trust deficit when it comes to governments and societal institutions are threatening our ability to address pressing global challenges. In Africa, this fracturing is evident in the plethora of Africa plus-one summits, for example, the first ever Korea-Africa summit. Instead of using multilateral vehicles to address development cooperation, this new environment has spawned a diversion of resources toward more bilateral initiatives, where the geopolitical returns are direct and attributable. In this piece, we propose a reset of the EU’s international relations narrative and “third way” for the EU to position itself as a global development player.
Topic:
International Relations, Development, European Union, and Green Transition
Political Geography:
Europe