The Visegrad group and Germany: towards a new paradigm. CEPS Commentary, 28 November 2013

In surveying the strategic realignment now underway in Central Europe among the four members of the Visegrad Group, Michal Simecka observes in a new CEPS Commentary that it is hard to think of another point in modern history that permitted a scenario of Germany and its eastern neighbours working together to constructively shape Europe.

Between Apathy and Anger: Challenges to the Union from the 2014 Elections to the European Parliament. EPIN [Working] Paper No. 39, 20 May 2014

This EPIN study brings together contributions from a ​broad selection of member states ​and ​provid​es ​insightful analysis ​into the 2014 elections to the European Parliament on the ground. The report reveals the different factors that impede the development of genuine European elections and the consequences of the ballot in the member states covered by the study​, namely Bulgaria, Finland, France, Germany, Greece, Italy, the Netherlands, Poland, Romania, Spain and the UK​,​ and at EU level. The report finds that: • The EP Resolution to encourage European parties to nominate candidates for the next Commission President has not really increased public interest in the EU and voter turnout will probably remain low. • Visibility of the European top candidates in most member states has been quite limited. • National manifestos do not coincide – and sometimes event conflict with – the European parties’ manifestos. • Election debates focus on national issues; EU issues are only brought to public debate when they are relevant for domestic politics. • Again, we will see a protest vote against governments and large parties. The EP elections are still perceived as a test ahead of local and national elections, or as a vote of confidence in national governments. • This year the protest vote also concerns the EU. The report predicts a more eurosceptic ballot that might complicate decision-making in the EU, exacerbate the conflict between the national and European levels and increase tensions among member states.

Drivers of agricultural capital productivity in selected EU member states. Factor Markets Working Paper No. 30, September 2012

The aim of this Working Paper is to provide an empirical analysis of the marginal return on working capital and fixed capital in agriculture, based on data gathered by the Farm Accountancy Data Network from seven EU member states. Particular emphasis is placed on the detection of credit market imperfections. The key idea is to provide farm group-specific estimates of the shadow price of capital, and to use these to analyse the drivers of on-farm capital use in European agriculture. Based on Cobb Douglas estimates of farm-type specific production functions, we find that working capital is typically used in more than economically optimal quantities and often displays negative marginal returns across countries and farm types. This is less often the case with regard to fixed capital, but it is only in a small set of sectors where access to fixed capital appears severely constrained. These sectors include field crop and mixed farms in Denmark, dairy farms in East Germany, as well as mixed farms in Italy and the UK. The relationship between farm financial indicators and the estimated shadow prices of capital varies considerably across countries and sectors. Among the farms with a high shadow price for fixed capital in Denmark, high debt levels and little owned land tended to induce more intensive capital use, which may reflect the liberal Danish banking system. In East Germany, Italy and the UK, high debt levels made farmers more tightly capital constrained. Hence, in the latter group of countries, more traditional mechanisms of capital allocation based on debt capacity seemed to be at work. As a general conclusion, EU agriculture appears to be characterised by overcapitalisation rather than by credit constraints.