Search

18381. The New Stability and Growth Pact: Primum non nocere

Author:
Claudio Vicarelli and Marco Fioramanti
Publication Date:
03-2011
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
The recent economic and financial crises have shown the weakness of EU economic governance. A process of strengthening macroeconomic and fiscal surveillance started in the course of 2010; among other proposals, the European Commission suggested a new binding criterion of debt reduction: debt-to-GDP ratio is to be considered sufficiently diminishing if its distance with respect to the 60% of GDP reference value has reduced over the previous three years at a rate of the order of one-twentieth per year.
Topic:
Debt, Economics, International Trade and Finance, Financial Crisis, and Governance
Political Geography:
Europe

18382. Has the financial crisis shattered citizens' trust in national and European governmental institutions? Evidence from the EU member states, 1999-2010

Author:
Felix Roth, Felicitas Nowak-Lehmann D., and Thomas Otter
Publication Date:
02-2011
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
The financial crisis has affected trust in national and European governmental institutions in different ways. This paper analyses the determinants of trust in the national and European institutions over the last decade and comes to the conclusion that inflation reduces citizens' trust only when the economy runs smoothly. In times of crisis, citizens do not worry about inflation but rather about jobs and the effects of a recession. Declining trust in national governments is related to an increase in unemployment in the EU-15 in all time periods, whereas trust in the European Commission and the European Parliament seems to be strongly associated with the situation in the real economy (unemployment and growth of GDP per capita) only in times of crisis. Yet in the EU-27, falling levels of trust in the national and European governmental institutions during times of crisis seem to be primarily related to an increase in government debt. In an EU-15 country sample, this negative relationship appears to be driven by countries that owe a larger share of their increase in government debt to aiding/bailing out their financial sector and the implementation of significant austerity measures.
Topic:
Debt, Economics, Financial Crisis, and Governance
Political Geography:
Europe

18383. Britain, Ireland and Schengen: Time for a smarter bargain on visas

Author:
Michael Emerson
Publication Date:
08-2011
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
For the present UK government, full accession to the Schengen area, a passport- free travel area covering most of Europe, is a red line that it will not cross. Ireland shares a common travel area and land border with the UK and is also bound by this decision. However, it is becoming increasingly clear that the UK, along with Ireland, is suffering serious economic and reputational costs as a result of its separate visa and border management policies.
Topic:
Economics, International Trade and Finance, Markets, and Regional Cooperation
Political Geography:
Britain, United Kingdom, Europe, and Ireland

18384. TARGET2 Unlimited: Monetary Policy Implications of Asymmetric Liquidity Management within the Euro Area

Author:
José M. Abad, Axel Löffler, and Holger Zemanek
Publication Date:
07-2011
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
This paper analyses the implications of a continued divergence of TARGET2 balances for monetary policy in the euro area. The accumulation of TARGET2 claims (liabilities) would make the ECB's liquidity management asymmetric once the TARGET2 claims in core countries have crowded out central bank credit in those regions. Then while providing scarce liquidity to banks in countries with TARGET2 liabilities, the ECB will need to absorb excess liquidity in countries with TARGET2 claims. We discuss three alternatives and their implications for absorbing excess liquidity in core regions: 1) using market-based measures might accelerate the capital flight from periphery to core countries and would add to the accumulation of risky assets by the EC B; 2) conducting non-mark et based measures, such as imposing differential (unremunerated) reserve requirements, would distort banking markets and would support the development of shadow banking; and 3) staying passive would lead to decreasing interest rates in core Europe entailing inflationary pressure and overinvestment in those regions and possibly future instability of the banking system.
Topic:
Economics, Monetary Policy, and Financial Crisis
Political Geography:
Europe

18385. The General Affairs Council: The Key to Political Influence of Rotating Presidencies

Author:
Piotr Maciej Kaczyński and Andrew Byrne
Publication Date:
07-2011
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
In spite of the formal role laid out for the General Affairs Council (GAC) in the Treaties, it has been weakened since it was extracted from the General Affairs and External Relations Council (GAERC) and set up to function on its own. Its current uneven composition is leading to further marginalisation. Reforming the GAC can bring it to the centre of gravity of the Council proceedings and address a number of problems in the current institutional structure. For that to happen, however, countries holding the rotating Council presidency need to consider placing their head of state or government in the chair of the GAC meetings. Upgrading GAC in this way would streamline the diverse work of the Council, it would help in alleviatin g the heavy political burden that now falls on the understaffed President of the European Council and it would allow the institution of the rotating presidency to regain a higher political profile by creating out of national leaders a de facto Vice President of the European Council.
Topic:
Regional Cooperation, Treaties and Agreements, and Governance
Political Geography:
Europe

18386. An evaluation of the French proposal for a restructuring of Greek debt

Author:
Christian Kopf
Publication Date:
06-2011
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
French commercial banks are proposing a swap of €85.5 billion in Greek government bonds maturing between 2011 and 2014 into a combination of new long-term Greek bonds with principal guarantee and cash payments. If this initiative were implemented under the proposed parameters, private creditors would only suffer a minimal haircut and official lenders would be provided with cash-flow relief of around €20 billion over the next three years, but the solvency of the Hellenic Republic would worsen significantly.
Topic:
Debt, Economics, and Financial Crisis
Political Geography:
Europe

18387. Space Observation Systems: An underused element for EU and global climate change policy

Author:
Christian Egenhofer and Monica Alessi
Publication Date:
06-2011
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
The European Union has long played a key role in global efforts to reduce GHG emissions and, where necessary, to adapt to its impacts. It has also been an advocate of a legally binding comprehensive global climate change agreement.
Topic:
Climate Change, Globalization, and Science and Technology
Political Geography:
Europe

18388. The EU-Russia Summit in Nizhny Novgorod: Divergent logics of communication

Author:
Andrei Makarychev and Alexander Sergunin
Publication Date:
06-2011
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
This policy brief analyses the state of EU–Russian relations as seen from the vantage point of the summit held on June 9-10 in Nizhny Novgorod. We describe the political context in which the summit was embedded, the anticipations it evoked from the both sides, its outcomes and some perspectives for the nearest future.
Topic:
Foreign Policy, Diplomacy, and Bilateral Relations
Political Geography:
Russia and Europe

18389. The EU and China's engagement in Africa: the dilemma of socialisation

Author:
Liu Lirong
Publication Date:
07-2011
Content Type:
Working Paper
Institution:
European Union Institute for Security Studies
Abstract:
China's engagement in Africa has obliged the EU to re-evaluate its own relationship with Africa. Since 2008, in an attempt to resolve the conflicts of norms and interests, the EU has proposed establishing a trilateral dialogue and cooperation mechanism between the EU, China and Africa, which so far has not yielded any substantial results. The differences between China's and the EU's Africa policies are mainly visible in two areas: aid and security. The contradiction between their respective aid policies lies in China's 'no-strings-attached aid' versus European 'conditionality' or emphasis on 'fundamental principles'. The contradiction between their security approaches in Africa lies in China's non-interference policy and the European concept of human security. Promoting common normative values and principles is at the core of the Common Foreign and Security Policy (CFSP), which is important for the EU's self-construction at present. China's non-interference policy is related to its domestic security and stability and in this context it engages in its own rhetoric. In matters of principle it is difficult for both sides to make compromises or accept limitations imposed by the other.
Topic:
Security, Foreign Policy, International Trade and Finance, and Foreign Direct Investment
Political Geography:
Africa, China, and Europe

18390. Alternative futures for Russia: the presidential elections and beyond

Author:
Simon Saradzhyan and Nabi Abdullaev
Publication Date:
05-2011
Content Type:
Policy Brief
Institution:
European Union Institute for Security Studies
Abstract:
This Occasional Paper outlines alternative scenarios for Russia's short-term future with a focus on potential outcomes of the March 2012 presidential elections. To construct these scenarios, the paper first identifies key predetermined factors in Russia's domestic and foreign policy domains. The paper then outlines and analyses key factors of uncertainty, which the authors define as events that could be 'game changers', having the potential to lead to a significant change in the course of Russia's development over the coming twelve months. The paper goes on to present three scenarios, based on three different interpretations of key areas of uncertainty and their interaction with predetermined factors. The paper concludes which scenarios are more probable and which are more favourable for Russia and by extension for its partners, and primarily the European Union.
Topic:
Corruption, Democratization, and Politics
Political Geography:
Russia and Europe