The changing landscape of financial markets in Europe, the United States and Japan. Bruegel Working Paper 2013/02, 18 March 2013

We compare the structure of the financial sectors of the EU27, Japan and the United States, looking at a set of 23 indicators. We find a large variation within the European Union in the structure of the financial sector. Using principal components analysis, we identify robust groups of EU countries. One group consists of the eastern European members that entered the EU more recently.These have substantially smaller financial sectors than the old member states. A second group can be classified as market-based (MBEU) and the third group is more bank-based (BBEU). We compare US, MBEU, BBEU, Eastern EU and Japan with the following main results. First, the groups within Europe are geographically related. Second, in many indicators, MBEU countries are closer to the (market-based) US, while BBEU countries more closely resemble Japan. Paradoxically, however, market-based EU countries also have large banking sectors. Banks in market-based countries have larger cross-border assets and liabilities, and derive a larger fraction of their income from fees, rather than interest income, than banks in bank-based countries. Finally, for most indicators, the ordering of groups of countries is quite stable over time, but while the crisis has had no impact on the relative ordering of the groups, it has slightly widened the gap between the US and all EU regions insome respects. We also find that during the crisis, substitution between market-based and bank-based sources of finance occurred in the US, and to a lesser extent in MBEU and BBEU countries.

Developing an Analytical Framework on Social Cohesion in Singapore. Reflections from the framing of social cohesion debates in the OECD and Europe. EU Centre Singapore Working Paper No. 17, November 2013

Official discourse in Singapore on social cohesion is often framed along the broad parameters of achieving racial and religious harmony. Many policies – formal and informal – and several laws evolved to manage these two aspects of society. Yet, as Singapore developed and with a much more complex socioeconomic environment both domestically and externally, there is perhaps a need to re-look the discourse and framework for discussing social cohesion. This paper takes a critical look at how the issue of social cohesion is framed in academic literature and policy discussions in Europe and the OECD, and tries to develop a broader analytical framework that could be useful in the Singapore context as it struggles with the multiple fault lines in society (beyond race and religion) that have emerged in the last decade or so.

Citizenship in post-awakening Tunisia: power shifts and conflicting perceptions

With the passing of its new Constitution, Tunisia is rightly celebrated as the Arab state that has advanced the most in strengthening democratic rights provisions. The Constitution formally enshrines the progress Tunisia has made especially on women’s rights; the rights of expression and assembly; freedom of the press; the rights of political parties; and the formal recognition of social and economic rights. However, the Constitution does not definitively resolve tensions between individual and religious rights. In order to maintain consensus between the differing opinions in Tunisia, the document remains ambivalent on the state’s precise role in protecting the ‘sacred’. Tunisia has made much progress, but the Constitution is likely to perpetuate rather than close debates over different concepts of rights.

Eastern Policy of the EU: the Visegrad Countries' Perspective. OSW Point of View, February 2003

1. After its enlargement, scheduled for 2004, the European Union will face a completely new situation at its eastern borders. This new situation calls for a new concept of the EU eastern activities, i.e. for development of the new Eastern Policy of the EU. 2. Due to a number of specific features such as geographical location, closeness of ties, direct risk factors etc., the Visegrad countries will and should be particularly interested in the process of formulating the new EU Eastern Policy. Consequently, they should be the co-makers of this policy. 3. The new EU Eastern Policy should differ fundamentally from the Union's traditional eastern relations. Firstly, its scope should not cover the entire CIS area: instead, the policy should focus on some of the European successor states of the former Soviet Union, namely Belarus, Russia and Ukraine, as well as Moldova, following the accession of Romania. It does not seem advisable to exclude the Russian Federation from this policy and to develop and implement a separate policy towards it. The new Eastern Policy should be an autonomous component and one of the most important elements in the overall foreign policy of the EU. 4. Secondly, the new Eastern Policy should be founded on the following two pillars: a region-oriented strategy, which could be called the Eastern Dimension, and reshaped strategies for individual countries. The Eastern Dimension should set up a universal framework of co-operation, defining its basic mechanisms and objectives. These should include: the adaptation assistance programme, JHA, transborder co-operation, social dialogue and transport infrastructures. The approach, however, should be kept flexible, taking into account the specific situation of each country. This purpose should be served by keeping in place the existing bilateral institutional contacts between the EU and each of its eastern neighbours, and by developing a national strategy for each neighbour.

European Neighbourhood Policy Package - Conclusions for the Eastern Partners. OSW Commentary No. 78, 2012-05-25

In 2011 the European Union began a process aimed at reforming its policy on the Eastern and Southern Neighbourhood. The change in circumstances in neighbouring countries following the Arab Spring, along with the lack of significant progress regarding Eastern Europe’s integration with the EU, formed the main driving force behind this process. The prime objective of the changes to the European Neighbourhood Policy (ENP) was the need to introduce new incentives for partner countries to modernise and integrate more closely with the EU Another aim was to increase the flexibility of EU instruments (by adapting them to the specific context of each partner state). One year later, on 15 May 2012, the European Commission and the EU High Representative for Foreign Affairs and Security Policy published the European Neighbourhood Policy Package which reported on the progress made in the implementation of the ENP over the preceding year and set out the aims and Action Plans for 20131. An analysis of the outcomes of changes made to the EU policy towards Eastern Europe and the South Caucasus suggests that the aim of the revision was aimed more at addressing the changing political landscape in the region rather than at the implementation of a substantial reform of the neighbourhood policy. The ENP is largely based on bureaucratic procedures (the negotiation of bilateral agreements, the implementation of support programmes). These have only a limited capacity to bring about lasting change in the region, as has been exemplified by the deterioration of democratic standards in a number of countries; this was highlighted in EU’s own reports. This problem is particularly clear in the case of Ukraine; until recently it was seen as the leader of European integration but is now raising much concern due to a deterioration in the state of democracy there. EU instruments have a limited influence on the situation in Eastern Partnership countries and the region’s significance on the EU’s agenda is falling (the priority is now given to counteracting the economic crisis, and prominence in the neighbourhood policy has been given to the Southern Mediterranean). In response to this EU policy on Eastern Europe will focus to a larger extent on technical and sectoral cooperation.

Supporting the Revolution: America, Democracy, and the End of the Cold War in Poland, 1981-1989. ACES Working Paper (Report) No. 8, 2007

Early on the morning of December 13, 1981, General Wojciech Jaruzelski, the leader of the communist Polish United Workers' Party (PZPR), declared martial law, ending the so-called "Polish Crisis," which began with the creation of the Independent Free Trade Union "Solidamosc" in August 1980. Over the next eight years, the Communist government and the opposition struggled over power, culminating in 1989 with the creation of a Solidamosc-led government which ended fifty years of Communist rule in Poland and led the way to further democratic revolutions throughout Eastern Europe. The purpose of this dissertation is to utilize newly available and underutilized archival sources as well as oral history interviews, from both international and American perspectives, to fully chronicle American policy toward Poland from the declaration of martial law until the creation of the Solidarnosc government. Rather than explaining Polish-American relations in bilateral terms, the dissertation illuminates the complex web of influences that determined American policy in Washington and affected its implementation within Poland. This includes descriptions of internal tensions within the Reagan administration, differences between American decisions in Washington and implementation in Warsaw, lobbying from Polish-American groups, clashes between Capitol Hill and the White House, coordination with American labor organizations to support Solidarnosc, disagreements with West European allies in NATO and international financial organizations, cooperation with the Vatican and the Polish Catholic Church, synchronization with American humanitarian organizations working in Poland, limitations caused by the realities of Soviet power in Eastern Europe, and complications caused by domestic Polish concerns. By taking a broad view of American policy and highlighting internal Polish decisions, with both the Communist government and the democratic opposition, the dissertation provides concrete examples of America's role in Poland's transformation, arguing, however, that this role was very limited. These conclusions are relevant to arguments about the end of the Cold War, the nature of American power, as well as current discussions about possibilities to promote democracy within hostile regimes.

Greece & the European Agenda: EU Enlargement and European Monetary Union. CES Germany & Europe Working Papers, No. 08.2, 1998

In the decade to come, the European Union will embark on two new projects, each destined to transform it in fundamental ways: (i) Eastern enlargement, and (ii) economic and monetary union. Neither of these projects will affect all members equally or in the same way. But Greece will, for two reasons, be affected in a manner qualitatively different to all other member states. First, Greece is the only country physically affected by the Luxembourg Summit's decision to begin accession negotiations with some, but not all, Central and Eastern European applicant countries: as a result of this decision, she will continue, for at least another eight to ten years, to be the only member country not to share a common border with another member state, with all the consequent implications in economic and geostrategic terms. Second, when the European Council meets in early May to select those member states that are deemed to have met the convergence criteria, it will find that Greece is the only member state falling short of those criteria. This development may create additional difficulties for her economy during the transitional period of derogation. It will also pose new risks to Greece, insofar as she will be absent during the initial-and crucial-years of establishing a common monetary policy.

Social Investment and State Capacity. CEPS Working Document No. 419/February 2016

This paper looks at the difference between the levels and nature of social policy expenditure in northern and northwest European countries and the countries of southern, central, and eastern Europe, and examines the relationship between social investment and state capacity in these country groupings. The authors show that southern and eastern countries have a much greater preference for ‘compensating’ rather than ‘capacitating’ social policy spending. Furthermore, the state capacity in these countries is lower, which generates less state revenue. Based on these observations they conclude that low state capacity and low state revenue go hand in hand with the preference for capacitating social policies, as these policies involve less delegation and discretion than social investment policies. This paper shows that high state capacity is probably a necessary precondition for effective social investment policies, although some limited alternative paths do exist.

Great hatred, little room Northern Ireland and the European Union: Attitudes, perspectives and the role of religion. Bruges Political Research Papers 48/2015.

Little academic attention has been given to the study of Northern Irish Euroscepticism despite the fact that it is a unique and interesting example of citizens’ relationships with the EU. Northern Irish Euroscepticism is defined by the divergence in attitudes towards European integration between Catholics and Protestants. This is a divide that is rooted in historical and religious interpretations of the project, as well as the widespread belief that membership of the EU will somehow lead to a united Ireland. Membership in the EU has not had a significant political impact on Northern Ireland, with citizens’ attitudes being largely characterised by a clear lack of interest in the project. Participation at the European level provided limited opportunity for cooperation by both sides while it may be argued that European elections contributed to the sectarian divide.