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11. The Zeitenwende in German Foreign Policy And The Eastern Partnership

Author:
Mariam Macharashvili
Publication Date:
07-2023
Content Type:
Commentary and Analysis
Institution:
Georgian Foundation for Strategic International Studies -GFSIS
Abstract:
This paper aims to analyze Germany’s approach to the Eastern Partnership against the backdrop of the “turning point” (Zeitwende) in German foreign policy announced by Olaf Scholz in February 2022. The deviation from the previous policy came as a result of Russia’s war against Ukraine, which disrupted the European collective security system and called into question the main characteristics of German foreign policy. The outbreak of the war on the territory of Europe showed the German leadership that the use of non-military means in the foreign policy, as well as their policy of openness and normalization towards the East (Ostpolitik), which largely implies Russia, turned out to be wrong. Russia’s war in Ukraine also became the basis for the rethinking of yet another political concept - change through trade (Wandel durch Handel), according to which trade and economic interdependence with Russia will facilitate its integration into Europe and push it towards peaceful mutual cooperation. Germany’s dependence on Russian natural resources on the one hand gave Russia a lever of political influence, and on the other made the German economy vulnerable.
Topic:
Foreign Policy, European Union, Partnerships, Regional Integration, Regional Security, and Russia-Ukraine War
Political Geography:
Russia, Europe, Ukraine, and Germany

12. Protecting the EU’s Submarine Cable Infrastructure: Germany’s Opportunity to Transform Vulnerability into Mutual Resilience

Author:
Jannik Hartmann
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
Submarine cables handle over 95 percent of the world’s internet traffic, making them essential for everything from finance to foreign affairs. The September 2022 attack on the Nord Stream pipelines and increased Russian naval activity brought greater awareness of how European – and German – interconnectedness also brings vulnerability. The urgency of tackling this threat offers Germany an opportunity to take a structural and joined-up approach that shows it can act as a “team power.”
Topic:
Security, Infrastructure, European Union, and Resilience
Political Geography:
Europe and Germany

13. Higher Renewable Energy Targets in Germany: How Will the Industry Benefit?

Author:
Gilles Lepesant
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
Institut français des relations internationales (IFRI)
Abstract:
“Deutschland – Einstieg in die Deindustrialisierung?” – “Germany, the beginning of deindustrialisation?” asked the German economic newspaper Handelsblatt in the context of the spike in energy prices that has put at risk thousands of companies across Germany in 2022. Whereas some sectors such as steel, glass and chemicals have been seriously hit, the manufacturing industries operating in the areas linked to the energy transition (such as renewable energies and hydrogen production) should benefit from decisions taken to reach climate neutrality. Will the German industry benefit from the ambitious commitments agreed by the new coalition? The boom and bust of the solar sector in 2011 are a reminder that a strong internal demand does not necessarily translate into strong and resilient supply chains on the national territory. In the context of generous support schemes, several companies emerged in the 2000s benefiting from the strong demand for solar panels before being overwhelmed by Asian competitors. Nowadays, more than 90% of solar panels are imported from China. The level of ambition of the Federal government for the Energiewende has dramatically increased with the new coalition elected in 2021, the share of renewables to be reached in the power mix by 2030 being set at 80% (against 47% in 2022). The German wind industry has however been affected by a slowdown of the expansion of capacities, several rounds of onshore wind and solar auctions being in 2022 undersubscribed. The added value of the Energiewende in terms of job creation has been ambivalent so far. The country’s current industrial geography might be partly reshaped with the efforts made by northern and eastern States to deploy renewables and green hydrogen at large scale. Stakes are high for southern Germany since new spatial patterns are emerging in the automotive sector too. While Chinese competition in the solar and wind manufacturing sectors is tough, the Inflation Reduction Act has reinvigorated discussions around a stronger industrial policy.
Topic:
European Union, Electricity, Renewable Energy, Wind Power, Hydrogen, and Energy
Political Geography:
Europe and Germany

14. Fossil Fuel Industry Phase-Out and Just Transition: Designing Policies to Protect Workers’ Living Standards

Author:
Robert Pollin
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
This paper focuses on just transition policies targeted at supporting workers now employed in the fossil fuel industries and ancillary sectors within high-income economies. As a general normative principle, I argue that the overarching aim of such policies should be to protect workers against major losses in their living standards resulting through the fossil fuel industry phase-out. The impacted workers should be provided with three critical guarantees to accomplish this, in the area of jobs, compensation and pensions. Just transition policies should also support workers in the areas of job search, retraining and relocation, but these forms of support should be understood as supplementary. Within the framework of these broad principles, the paper first reviews experiences with transitional policies in Germany, the UK, the EU and, more briefly, Japan and Canada. A critical point that emerges is that these just transition policies do not provide the needed guarantees for assuring workers that they will not experience major living standard declines. The paper then describe an illustrative just transition program for workers that includes reemployment, income and pension guarantees, focusing on a case study for the U.S. state of West Virginia. The results show that the costs of the just transition program for West Virginia’s fossil fuel industry dependent workers will amount to an annual average of about $42,000 per worker, equal to about 0.2 percent of West Virginia’s GDP. I briefly summarize results from the seven other studies of U.S. states and for the overall U.S. economy. For the U.S. economy overall, the just transition program’s costs would total to about 0.015 percent of GDP. These findings demonstrate that providing a generous just transition program does not entail unaffordable levels of public spending. Robust just transition policies should therefore be understood as an entirely realistic prospect for all high-income economies.
Topic:
Political Economy, Labor Issues, European Union, GDP, Economy, and Fossil Fuels
Political Geography:
Japan, United Kingdom, Europe, Canada, and Germany

15. Centre-right parties in Germany and Sweden: Challenges and strategies in a changing political landscape

Author:
Sanna Salo and Tuomas Iso-Markku
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
Centre-right parties have played a central role in stabilising European party politics and advancing European integration, but the increased fragmentation of party systems and the rise of the radical right present serious challenges to them. The way that centre-right parties respond has important implications for domestic and EU politics alike. Many European centre-right parties have become divided on their political profile and programme, debating between leaning towards the progressive-liberal or the conservative-authoritarian end of the political spectrum. In Germany, the rise of the radical-right AfD has fuelled disagreements within the CDU/CSU and generated demands to sharpen its profile. However, this has thus far not led to major changes to the CDU/CSU’s platform, as it is also challenged from the political centre by the SPD and the Greens. In Sweden, the Moderates have clearly reshaped their political agenda in the last decade, focusing on immigration and law-and-order issues, as well as adopting positions and rhetoric reminiscent of the SD. This shift culminated in the formation of a Moderate-led coalition government supported by the SD in late 2022.
Topic:
Politics, European Union, and Political Parties
Political Geography:
Europe, Germany, and Sweden

16. Transatlantic Trends 2023: Public Opinion in a Shifting Global Order

Author:
Alexandra de Hoop Scheffer, Martin Quencez, and Gusine Weber
Publication Date:
09-2023
Content Type:
Special Report
Institution:
German Marshall Fund of the United States (GMFUS)
Abstract:
Transatlantic Trends 2023 presents the results of representative surveys conducted in 14 countries on both sides of the Atlantic: Canada, France, Germany, Italy, Lithuania, the Netherlands, Poland, Portugal, Romania, Spain, Sweden, Türkiye, the United Kingdom, and the United States. Divided into five chapters, this report assesses public opinion on contemporary structural issues impacting the world order, transatlantic relations, security and defense, China, and global challenges.
Topic:
Security, Foreign Policy, Public Opinion, European Union, Democracy, Geopolitics, and Transatlantic Relations
Political Geography:
China, United Kingdom, Europe, Turkey, Ukraine, France, Poland, Germany, Global Focus, and United States of America

17. Factsheet: Manfred Weber

Author:
Bridge Initiative Team
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
The Bridge Initiative, Georgetown University
Abstract:
Manfred Weber is a German politician who has served as President of the European People’s Party (EPP) since 2022, and as Leader of the EPP Group in the European Parliament since 2014. He has been a Member of the European Parliament (MEP) from Germany since 2004. He is a member of the Christian Social Union in Bavaria (CSU), which is a member of the EPP. Weber has made statements alleging that Muslims and Islam are a threat to European culture.
Topic:
European Union, Islamophobia, Catholic Church, Xenophobia, Christian Social Union, and European People's Party (EPP)
Political Geography:
Europe, Germany, and Austria

18. Ten urgent Franco-German issues for Europe

Author:
Joachim Bitterlich
Publication Date:
12-2023
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
In recent years, political and economic upheavals have accelerated: the ongoing migration crisis, the spillover of the conflictual relationship between the United States and China, the global pandemic, the energy crisis, Russia’s military invasion of Ukraine and the conflict over Gaza following the terrorist attack by Hamas. Faced with this growing insecurity and volatility, the European Union has shown to be only partially united, or even convincing: in some respects, Europe seems to be rather more on the defensive. It is far from achieving its objective of being a global player on the same level as the United States or China on the international scale, and is unable to demonstrate a real strategy to tackle these accumulated challenges and, above all, to convince Europe’s populations. In the light of the electoral trends, we have been observing for some time in various Member States, the European elections in June 2024 may even further jeopardise the strength and prospects of the European Union, as well as its operational capacities. Under these conditions, how can we ensure its credibility and cohesion in a deeply troubled world? An ambitious programme of consolidation and reinsurance is a political necessity now more than ever. Such a programme, initiated by Paris and Berlin, should provide a common compass for the Union over the next five years. In my view this comprises 10 urgent inputs.
Topic:
Bilateral Relations, European Union, Interview, and Regional Politics
Political Geography:
Europe, France, and Germany

19. Fair Competition for an Evolving Economy

Author:
Keldon Bester
Publication Date:
09-2023
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
Fair competition is essential to economic growth. Without it, corporate concentration takes over. Canada’s permissive merger law has allowed a small number of big corporations to dominate key sectors of the Canadian economy, resulting in limited consumer choice. Although Canada’s competition laws are currently under review, its global peers are taking steps to protect competition in their own economies. This paper recommends that Canada should focus on the role of fair competition in its competition law framework, specifically differentiating beneficial and harmful competition. Canada’s abuse of dominance provision protects against anti-competitive conduct, but it does little to protect new and emerging competitors. This paper suggests that Canada should look to international peers such as the European Union, Germany and the United States for cues to reform its own system.
Topic:
European Union, Economy, Legislation, Corporations, and Economic Competition
Political Geography:
Europe, Canada, Germany, North America, and United States of America

20. The Cyclical Behaviour of Government Spending for Social Protection: Is the OECD Methodology Robust?

Author:
Aleksandr Arsenev, Philipp Heimberger, and Torben Schütz
Publication Date:
12-2023
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
Spending elasticities measure the reaction of different government spending components to the business cycle. They are important inputs for fiscal forecasts, and they are particularly relevant in the context of European Union (EU) fiscal rules, as elasticity estimates enter the estimation of fiscal space. This paper analyses the sensitivity of the estimation method used by the Organisation for Economic Co-operation and Development (OECD) and the European Commission to obtain government spending elasticities by focusing on 11 EU countries in the 1995-2020 period. Our results suggest that spending elasticities are sensitive to small variations in data and model specification. For most EU countries, we reject the assumption that only unemployment spending responds to cyclical variations. While unemployment spending is indeed a major driver of counter-cyclical social spending, other categories of social spending also show signs of responding to the business cycle.
Topic:
Budget, European Union, Finance, Macroeconomics, Public Debt, Social Spending, Public Spending, and Fiscal Deficit
Political Geography:
Europe, Greece, France, Poland, Germany, Denmark, Romania, Spain, Italy, Sweden, Austria, and Czechia