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1321. Bank recapitalizations in Greece: From state-led bailouts to the ownership transfer of banks to foreign hands

Author:
Athanasios Kolliopoulos
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
A decade after the conclusion of the first economic adjustment programme in 2010 and despite three consecutive recapitalizations, Greek banks still suffer from the highest Non-Performing Loans ratio in the Eurozone, with credit expansion in the “real economy” remaining anemic. Furthermore, the overall impact on public debt from government financial support to Greek banks over the last decade was one of the largest among the Eurozone countries. What went wrong? What were the reasons that the domestic financial system ended up in this exceptionally sad state? Why did the recapitalization policy not have the desired outcome? Exploring these questions throughout the literature of responses to banking crises, this paper shows that recapitalization policy in Greece failed to exploit the advantages of the principal forms of bank rescues. In fact, the significant inertia prevailing among authorities and bankers throughout the recapitalizations brought about the ownership transfer of the Greek banking system to foreign hands (“dehellenization”) after the third recapitalization in late 2015. You may acces the full paper by Dr. Athanasios Kolliopoulos, Postdoctoral Researcher at the Athens University of Economics and Business, here.
Topic:
Financial Crisis, Banks, Recapitalizations, Bailout, and Banking Crisis
Political Geography:
Europe and Greece

1322. The Greek-Turkish Maritime Disputes: An International Law Perspective

Author:
Efthymios Papastavrdis
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
This Policy Paper by Efthymios Papastavridis, Research Associate of ELIAMEP; Researcher and Part-time Lecturer, University of Oxford Fellow; Academy of Athens & Athens PIL Center, examines the maritime disputes between Greece and Turkey, in particular those concerning maritime delimitation and the breadth of the territorial sea of Greece, against the background of international law. It starts with setting out the historical and legal background of the continental shelf dispute in the Aegean Sea, in particular Greece’s applications before the International Court of Justice (ICJ) and the UN Security Council in 1976. Then, the paper considers the different legal positions of Greece and Turkey concerning the issues of the breadth of the territorial sea and the maritime delimitation and assesses these positions under international law. This assessment is followed by the discussion of the various means available under international law for the settlement of the maritime delimitation dispute under international law, in particular, its submission to the ICJ, which has often been at the front line of public and scholarly discourse. The paper concludes that international law provides a sufficient, clear and predictable legal framework for the resolution of the Greek-Turkish maritime dispute, which will be of the outmost benefit for both States and for the Eastern Mediterranean region as a whole.
Topic:
International Law, United Nations, and Maritime
Political Geography:
Europe, Turkey, Greece, Mediterranean, and Aegean Sea

1323. Russian pipelines and EU energy security: Utilizing the externality elements of the EU’s regulatory framework

Author:
Michalis Mathioulakis
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
Russia and the EU have been entangled in the harsh effects of asymmetrical interdependence and the security threats it generates. Russia’s economy is linked directly to the form and volume of trade directed from the EU towards the Russian economy, while the EU economy is linked to the flow of Russian gas and oil directed towards European businesses and households. Growing concerns on EU’s dependency on energy imports led the European Commission to release its Energy Security Strategy (2014), aiming to secure stability and abundancy of energy supply while simultaneously examining the effects of discrepancies from Russian gas imports to the European energy systems. In contrast, Russia’s primary concern is to secure the necessary energy revenues that could enable Moscow to project and exercise its hard power to areas with strategic interest by striving to gain greater leverage within the European energy markets. Russia’s security objectives in relation to its energy export capacity are expressed primarily through materialisation of two major natural gas pipeline systems, namely the Nord Stream 2 and the TurkStream pipelines. This paper by Michalis Mathioulakis, Research Associate of ELIAMEP; Energy Strategy Analyst and Academic Director of the Greek Energy Forum, examines the strive between the two international actors in redetermining their future relations and the role of Russian gas pipelines and the EU’s regulatory framework in shaping the two actors’ common future.
Topic:
Security, Energy Policy, European Union, and Regulation
Political Geography:
Russia, Europe, and Eurasia

1324. Protecting data, ruling over the algorithm: The Regulation Challenge for the European Union

Author:
George Pagoulatos and Vasiliki Poula
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The European Union has managed to reposition data protection laws from the periphery of legal consciousness to the centre of intensive legal and media publicity. And it has done so, primarily, through the enactment of the General Data Protection Regulation Act (GDPR) and its related case law. In particular, the legal saga of Schrems ΙΙ has recently confirmed the regulatory capacity of the EU. However, while the European legal order has led the way in codifying the unknown territory of new technologies, there is still the concern that the EU is handling the new challenges in a “legalistic” way. In particular, we explore the persistent challenge of the exploitation of data in the commercial and political context through microtargeting. We also explain why algorithmic regulation should become a priority in the EU’s regulatory agenda, so that the EU adopts a pre-emptive rather than a firefighting role. Ultimately, we have to also be aware of the limits of regulation in an era of constantly evolving technology: finding ways to live with technological evolution should also be an EU priority.
Topic:
Science and Technology, European Union, Regulation, and Data
Political Geography:
Europe

1325. Towards an EU Hydrogen Economy: Policy and Energy Security Perspectives

Author:
Mariana Liakopoulou
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
Hydrogen is positioned as a strong candidate for fulfilling the carbon-neutrality objective set out in the European Green Deal, provided that it is able to compete on a level-playing field with other technologies favoring sector coupling. Pushing the envisioned hydrogen economy past its tipping point necessitates a conducive EU regulation, repurposing of existing large-scale EU networks, along with additional investments, as well as strategic partnerships with the EU’s third-country suppliers. This paper aims to outline the role of hydrogen as a component of the decarbonization of the European natural gas sector, in the context of an integrated energy system.
Topic:
Security, Climate Change, Energy Policy, European Union, Economy, and Hydrogen
Political Geography:
Europe

1326. Greece’s call for an embargo on weapons sales to Turkey: a seminal step for the EU’s collective defence identity?

Author:
Antonis Kamaras
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
This policy paper by Antonis Kamaras, Research Associate of ELIAMEP, situates Greece’s call to its fellow EU member states to implement a weapons embargo on Turkey in the context of the relevant past experiences of Greece and other EU member states. The policy brief argues that the EU’s ability to act collectively, aligned with the status of particular member states as producers of advanced weapons systems, means that weapons embargoes are potential milestone events in the Union’s evolution of a collective defence identity. EU member states threatened militarily by non-EU countries are bound to see EU weapons embargoes imposed on the threatening non-EU countries as constitutive, rather than incidental, aspects of the EU’s raison d’être.
Topic:
Foreign Policy, European Union, Weapons, and Embargo
Political Geography:
Europe and Turkey

1327. It’s Time for a New Deal

Author:
Constantine Michalopoulos
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The prospects of the Greek economy are mostly good with growth continuing for the fourth straight year. But there is a sense of disappointment, as the recovery has not been very strong and pre-crisis income levels will not be regained for another decade. There are two main reasons for the sluggish recovery: The European creditors have imposed on Greece the requirement to run a primary budget surplus of 3.5% of GDP for five years to ensure that they get repaid—a requirement that constricts growth of the Greek private sector—through heavy taxation of consumers and business. And domestic investment is sluggish, although there are plenty of unutilized resources, such as those provided by the European Structural Funds. There is a need for a new deal with the European Institutions: the Europeans should be more relaxed about getting repaid because of Greece’s much improved access to the European capital markets and be willing to accept a Greek government commitment to a significantly lower primary budget surplus for the next several years. In exchange the Greek government should commit to a commensurate increase in domestic investment through reforms of the banking sector as well as greater public sector investment spending.
Topic:
Government, Financial Crisis, Economy, Economic growth, and Public Spending
Political Geography:
Europe and Greece

1328. Greek-American relations: what next?

Author:
George Tzogopoulos
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
With President Donald Trump and Prime Minister Kyriakos Mitsotakis scheduled to meet early this January, Dr. George Tzogopoulos, Research Fellow at ELIAMEP, outlines the course of Greek-American relations from 2015 onwards. Dr. Tzogopoulos argues that Athens and Washington DC have entered a period of strong cooperation that can be further consolidated in 2020. Defense, energy and trade are the main focal points. The agenda includes the need to create a new security environment in the Mediterranean – with Greece playing a key role. The excellent status of Greek-American relations creates new opportunities for closer bilateral cooperation on defense, energy and trade. The region of Northern Greece becomes of gradually higher significance for the US. US foreign policy towards Greece reflects its interest in restraining Russian influence. While anti-Americanism in Greece is declining, there is widespread concern in the domestic public sphere on whether the US will support Greece in the case of a crisis with Turkey in the Eastern Mediterranean. US support to the trilateral cooperation of Greece-Israel-Cyprus will be reinforced through the Eastern Mediterranean Security and Energy Partnership Act. The US-Greece Strategic Dialogue and NATO Mediterranean Dialogue are useful instruments for strengthening Greece’s role in the South, contributing towards a new security landscape.
Topic:
Security, Energy Policy, Bilateral Relations, and Trade
Political Geography:
Europe, Greece, North America, and United States of America

1329. Massive but divisive: Crisis management and EU responses to COVID-19

Author:
Jens Bastian
Publication Date:
04-2020
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
Coordinated Covid-19 crisis management among EU member states took weeks to develop. The initial response was slow, at times contradictory, frequently displaying nation-state unilateralism and obviously divisive. An unprecedented architecture of fiscal and monetary partnership is now building in Europe. The ECB is taking the lead in this construction process, with national governments asserting their political prerogatives while the Commission in Brussels is careful not to overstep the national sovereignty of its member states. As the crisis response to Covid-19 has highlighted manifest fault lines among EU member states, these divisions could morph into bigger controversies during uncoordinated exit strategies. Once the cessation of economic activity can start to unwind, the debate across Europe will accelerate over budget rules, further relief programmes and the demand for debt forbearance.
Topic:
Health, European Union, Crisis Management, and COVID-19
Political Geography:
Europe

1330. Refugees at the gate of Europe

Author:
Angeliki Dimitriadi
Publication Date:
04-2020
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The recent crisis in Evros brought back to the fore the issue of immigration and Turkey’s role in its instrumentalization. The EU-Turkey Statement has not had the expected outcomes. Rather it showed that prevention policies and the outsourcing of migration management strengthens transit countries such as Turkey, without resulting in a a steady reduction in flows. Greece remains a country that bears a disproportionate burden of responsibility due to its geographical location. At the same time, it has delayed in the planning of a holistic immigration policy, which should aim, among other things, to ensure human living conditions, substantial access to asylum and result in the integration of those who will remain in the country. COVID 19 will bring about significant socioeconomic changes globally as well as impact human rights. Practices of the past do not necessarily fit for the new reality and this is the biggest challenge for Greece and the EU; a willingness to move forward by investing on migration within Europe and beyond. It will not be easy, and it will come at a high financial (and likely political) cost. The pandemic makes any long-term commitments seem impossible, however the alternative scenario, of deterrence and outsourcing is already proving insufficient. Balancing the scales is a challenge which the EU cannot afford to lose.
Topic:
Human Rights, Migration, European Union, Refugees, and COVID-19
Political Geography:
Europe, Turkey, Greece, and Mediterranean