On the day before the European Commission's decision on the fitness of Bulgaria and Romania to become EU members on 1 January 2007 (due to be delivered 16 May 2006), it is becoming increasingly evident that the EU has fallen into its own 'rhetorical trap' from which there is no easy way out. Most EU officials and politicians would agree that the governance standards in the two Balkan candidates are not up to EU level yet, but everyone knows that there is not much the EU can do about it at this point.
Topic:
International Cooperation and Regional Cooperation
Sebastian Kurpas, Christoph Mayer, and Michael Brüggemann
Publication Date:
05-2006
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
In its recent White Paper on a European Communication Policy, the European Commission has promised a “fundamentally new approach”. The policy is meant to narrow the communication gap looming between the European Union and its citizens and ultimately to map a way towards the development of a European public sphere. In contrast to the socalled 'Action Plan' for improving the Commission's own communication from July 2005, the White Paper is addressed to the EU as a whole, including other central institutions, member states, European political parties and even 'civil society'. The purpose of this Policy Brief is to critically evaluate the proposals emanating from the White Paper and to advance several suggestions aimed at helping the current initiative to have a more tangible and long-term effect than its many predecessors, authored by Messrs Tindemans, Adonnino, Oostlander, DeClerq, Pex or Pinheiro.
Topic:
International Cooperation and Regional Cooperation
In the spring of 2004, the European Commission approved a draft Directive on Services in the Internal Market and sent it to the Council and the European Parliament. The proposal is the cornerstone of the ailing Lisbon strategy to revive growth and jobs in the European Union: services account for 70% of GDP and employment in advanced countries, and their performance is a main determinant of overall productivity and employment growth. In the European Union, the markets for services are still organised along national lines, cross border trade remains relatively underdeveloped and competition is scarce. The productivity gap with the United States is largely explained by these obstacles.
Topic:
Economics, International Cooperation, and Regional Cooperation
Emissions trading is a market-based mechanism designed to allow firms to choose the most cost effective strategy to meet environmental standards. The success of SO2 and NOx emissions trading systems in the United States and the launch of the ambitious European Union Emissions Trading System (EU ETS) underscore the value of emissions trading as a tool for environmental policy.
Topic:
Economics, Environment, and International Cooperation
This report constitutes Part II of the CEPS Task Force Report on Reviewing the EU Emissions Trading Scheme. Part I was presented to the UK Presidency on 7 July 2005, and subsequently published on the CEPS website. It focused on a number of short-term implementation issues linked to the second round of allocation, including transparency requirements of the National Allocation Plans (NAPs), the definition of installations, treatment of small installations, new entrants, closure and transfer rules, allocation methodologies, the possibility of opt-ins as well as monitoring, reporting and verification. Part II examines deepseated issues such as economic impact and effects on investment as well as the potential inclusion of aviation. These issues are expected to have a major influence on the second phase of the EU Emissions Trading Scheme (ETS) in 2008-12.
The Kyoto Protocol binds the level of greenhouse gas emissions in participating countries. It does, however, not dictate how the countries are to achieve this level. The economic costs of reaching emission targets are generally evaluated to be low. For example, evaluations with applied general-equilibrium models estimate the costs to be in the range of 0.2% to 0.5% of GDP, when international trade in emissions rights among governments is allowed for. We argue that important costs are overlooked since governments are inclined to choose highly distorting tax schemes.
Topic:
Economics, Environment, and Treaties and Agreements
Following a long period of stagnation, Japan is growing again. The key to this success story is Koizumi's relentless focus on structural reform, with two objectives: breaking the structural trap of political constituencies defending old and unproductive economic sectors; and adopting a two-pronged macromicro approach to make reform unavoidable. This paper argues that Europe should follow a similar strategy whereby financial market integration, and not the EU bureaucracy and grandiose political declarations, should become the main driving force of national economic reforms, pressuring liberalisation in goods and services markets and making labour market reforms unavoidable.
The answer to the question posed in the subtitle is yes, indeed, there are concrete alternatives to enlargement. As there must be. Enlargement has been a key tool in projecting stability across our continent. But it is a reality that the EU cannot expand ad infinitum – everything has its limits. We must honour our present basic commitments, while strictly insisting on the criteria. One of these criteria is our own absorption capacity – it is clear that in some member states the pace and scale of enlargement is approaching the limits of what public opinion will accept. To overstretch, rather than consolidate, the Union would be detrimental not only for us but also our partners. These are all issues with which our leaders will struggle in Vienna in a few months time.
Topic:
International Relations, Security, and Development
More than half way into the decade, it is clear that the ambitious goal to make the EU the 'most competitive economy' by 2010 will be missed. This contribution shows that investing more in education would be the key in terms of employment, a central element in the Lisbon goal. Improving the skills of the EU's population would have, inter alia, a direct impact on the employment rate. Reaching the Lisbon goal of an employment rate of 70% would be possible even without labour market reforms if the average level of qualification of the EU were to reach the benchmarks in this area (which in turn are very close to the values reached by the best performing member states).
The assertion that the enlarged EU will become dysfunctional under the current treaty provisions has been one of the strongest arguments in favour of the Constitutional Treaty. Also after the two 'no' votes to the text, political leaders continue to see the necessity of institutional reform. Jacques Chirac and Tony Blair, neither of whom is keen to resume the ratification process as such, have stressed independently that the issue needs to be addressed in the near future. The British Prime Minister argues that the EU cannot function properly with 25 member states under today's rules of governance, adding "Having spent six months as EU president, I am a good witness of that." His French counterpart even predicted that the status quo would eventually "condemn the EU to inertia and paralysis."
Topic:
International Relations, Diplomacy, and Government