The Economics of EU Railway Reform. Bruges European Economic Policy (BEEP) Briefing 8/2004

The EU began railway reform in earnest around the turn of the century. Two ‘railway packages’ have meanwhile been adopted amounting to a series of directives and a third package has been proposed. A range of complementary initiatives has been undertaken or is underway. This BEEP Briefing inspects the main economic aspects of EU rail reform. After highlighting the dramatic loss of market share of rail since the 1960s, the case for reform is argued to rest on three arguments: the need for greater competitiveness of rail, promoting the (market driven) diversion of road haulage to rail as a step towards sustainable mobility in Europe, and an end to the disproportional claims on public budgets of Member States. The core of the paper deals respectively with market failures in rail and in the internal market for rail services; the complex economic issues underlying vertical separation (unbundling) and pricing options; and the methods, potential and problems of introducing competition in rail freight and in passenger services. Market failures in the rail sector are several (natural monopoly, economies of density, safety and asymmetries of information), exacerbated by no less than 7 technical and legal barriers precluding the practical operation of an internal rail market. The EU choice to opt for vertical unbundling (with benefits similar in nature as in other network industries e.g. preventing opaque cross-subsidisation and greater cost revelation) risks the emergence of considerable coordination costs. The adoption of marginal cost pricing is problematic on economic grounds (drawbacks include arbitrary cost allocation rules in the presence of large economies of scope and relatively large common costs; a non-optimal incentive system, holding back the growth of freight services; possibly anti-competitive effects of two-part tariffs). Without further detailed harmonisation, it may also lead to many different systems in Member States, causing even greater distortions. Insofar as freight could develop into a competitive market, a combination of Ramsey pricing (given the incentive for service providers to keep market share) and price ceilings based on stand-alone costs might be superior in terms of competition, market growth and regulatory oversight. The incipient cooperative approach for path coordination and allocation is welcome but likely to be seriously insufficient. The arguments to introduce competition, notably in freight, are valuable and many e.g. optimal cross-border services, quality differentiation as well as general quality improvement, larger scale for cost recovery and a decrease of rent seeking. Nevertheless, it is not correct to argue for the introduction of competition in rail tout court. It depends on the size of the market and on removing a host of barriers; it requires careful PSO definition and costing; also, coordination failures ought to be pre-empted. On the other hand, reform and competition cannot and should not be assessed in a static perspective. Conduct and cost structures will change with reform. Infrastructure and investment in technology are known to generate enormous potential for cost savings, especially when coupled with the EU interoperability programme. All this dynamism may well help to induce entry and further enlarge the (net) welfare gains from EU railway reform. The paper ends with a few pointers for the way forward in EU rail reform.

Human security in Central Asia: can the EU help out? EUCAM Policy Brief No. 21, October 2011

The European Union is a security actor in Central Asia, although with less influence than other players. Russia and China have a much larger impact on Central Asian regimes’ security strategies. These limitations do not dispense with the need for the EU to provide a better security narrative, especially in light of its growing emphasis on human security, and to incorporate this into the current review of its strategy for the region. This policy brief will centre on the EU’s contribution to human security in Central Asia.

EU Sanctions: A Relevant Foreign Policy Tool? EU Diplomacy Paper No. 3, May 2014

This paper examines an instrument which establishes an explicit link between economic power and foreign policy of the European Union (EU): restrictive measures or sanctions. As the EU is increasingly confronted with situations requiring a firm response, sanctions – arguably the EU’s ‘hardest’ tool – have become somewhat of a standard reaction. To what extent are sanctions a relevant tool for EU external action? By looking at several case studies from a set of 47 autonomous EU sanction cases, this paper acknowledges the many internal and external difficulties the EU faces when using the sanctions tool. However, it also shows that despite those challenges, the ‘hard’ and coercive nature of the sanction instrument nevertheless make it a relevant foreign policy tool which allows the EU to react to external crises.

The turn to the East. The flawed diversification of Russian foreign policy. OSW Point of View Number 44, November 2014

The ‘turn to the East’ proclaimed by Russia in 2010 has failed to bring about a fundamental breakthrough in her relations with Asian countries, nor has it produced impulses for the economic modernization of Russia’s Far Eastern territories. Although the energisation of Russian policy towards Asia which has taken place under this slogan has diversified Russian foreign policy somewhat, this diversification has two weak points: Firstly, it has occurred only in the political sphere. The share of Asian countries in Russia’s foreign economic relations has not risen significantly in comparison with the share of European and North American countries. Secondly, the ‘turn to the East’ has turned out primarily to be a turn towards China. In all spheres – diplomatic, economic, energy and military – it is Beijing that has become the most important Asian partner for Moscow. The result is that the policy that aimed to limit the excessive – in the Kremlin’s view – dependence of Russia on the West is likely to turn Russia into a ‘junior partner’ of the People’s Republic of China.

Ideas and Policy: The European Union considers social policy futures. ACES Cases No. 2010.2

The European Union’s social policy perspectives have changed quite dramatically over the last several decades. Now EU’s social policy discourse often promises to “invest in people,” sometimes “to invest in children,” and always to pay particular attention to youth. This paper argues that the tools of historical institutionalism can lead to understanding the ideational roots of this social investment perspective so distant from the “European social model.” Coming out of social movements, and with collective identities shaped both by those movement roots and national experiences, activists have effectively focused their practices on altering the social representations of European social solidarity through their interest group interventions, their participation in policy forums, and their mobilization within civil society at the European and sub-European levels. They have been able to make common cause with several epistemic communities that themselves revamped their ideas in the face of new institutional constraints, in order to advance their interests in promoting particular directions for social policy. The paper documents that “ideas” are not a variable and discourse “sometimes important” but that the ideas carried by movements and in epistemic communities are integral to the very definition of their interests that they promote within and with institutions.

(EU) friends: NGO cooperation and involvement across multi-level policy processes. IES Working Paper 1/2007

A growing body of research focuses on the expanding roles of NGOs in global and supranational governance. The research emphasizes the increasing number of participation patterns of NGOs in policymaking and cross-national cooperation. It has produced important insights into the evolving political role of NGOs and their growing involvement in governance. The focus on activities at a transnational level has, however, lead to the virtual exclusion of research on other levels of governance. It has not been possible to tell whether the locus of their political activity is shifting from the national to the transnational environment, or whether it is simply broadening. Missing from the literature is an examination of the variety of cooperative relationships, including those between NGOs, which impact policy involvement across different levels of governance. To bridge this gap, I address two key questions: 1) Is the strategy of cooperation among NGOs a common feature of social movement activity across levels of governance, and if so, what does the structure of cooperation look like? 2) What impact, if any, does cooperation have on the expanding political involvement of NGOS, both within and across levels of governance? Using data from an original survey of migrant and refugee organizations across much of Europe, I test several hypotheses that shed light on these issues. The findings broadly indicate that 1) Cooperation is a widely-used strategy across levels of governance, 2) Cooperation with specific sets of actors increases the likelihood of NGO involvement at different levels of governance. Specifically, cooperation with EU-level actors increases the likelihood of national-level involvement, and 3) NGOs are more likely to extend their involvement across a range of institutions if they cooperate with a broad range of actors.

The role of EU Special Representatives in the post-Lisbon foreign policy system: A renaissance? IES Policy Brief Issue 2012/02/June 2012

Summary. EU Special Representatives have been deployed since 1996 in order to contribute to the EU’s crisis management efforts in various crisis regions. As they are not part of the formal hierarchy of the European External Action Service and thus a rather flexible foreign policy instrument at the disposal of the Member States, new special representatives have been appointed in 2011 and 2012. This Policy Brief argues that the representatives’ autonomy must not necessarily lead to ‘clashes of competence’ with the EU’s diplomatic service.

Reviewing the EU’s Crisis Management Procedures. IES Policy Brief Issue 2012/04/November 2012

Summary. The ongoing review of the EU’s Crisis Management Procedures warrants attention. What passes as an update of an arcane and technical document masks a profoundly political debate concerning what the Common Security and Defence Policy (CSDP) should be about. This policy brief summarises the main proposals and formulates a set of critical reflections. It calls for replacing the bureaucratic scheming with a more forthright political debate, and warns against sacrificing incompatible organisational cultures on the altar of the comprehensive approach. At a time when European security and prosperity trends are increasingly pointing downwards, the EEAS and the member states must look to the future and embrace, rather than resist, change.

The Role of Civil Society Dialogue in the EU-China Cooperation on Renewable Energy. IES Policy Brief Issue 2012/05/December 2012

Summary. Expanding EU-China institutional cooperation in the energy sector has been matched by a parallel process of stronger economic ties between European and Chinese companies in the renewable energy (RE) sector (particularly wind and photovoltaics). While the foundation of early EU-China institutional relations was based primarily on trade cooperation, international efforts to mitigate climate change and the common challenge of decreasing energy dependence in a sustainable manner brought a new dimension to their partnership in the energy sector in the mid 90s. Although the role of EU-China energy cooperation has grown tremendously in the context of EU external trade policy and EU strategy to boost its energy independence and international climate policy, the potential of civil society collaboration in this partnership has remained rather unexploited. Based on major civil society initiatives in the RE field that have been developed in recent years, this policy brief argues that civil society dialogue between China and EU could be an important driving force in deepening EU-China cooperation on RE and a bridge towards a more sustainable future.

The European Union Multiannual Financial Framework 2014-2020: How to do more for less? IES Policy Brief Issue 2013/05 • May 2013

The European Council meeting on 7 and 8 February 2013 attracted an unusual level of attention from media and citizens. For a couple of days, Europe played a more important role in national politics and news. Sensation-frenzied media and excited politicians spouted notions of ‘a battle’, ‘winners’, ‘losers’ or ‘striking deals’, as if Europe had gone back to the time when its military powers still conflicted. After more than 24 hours of intense negotiations, the respective Member States leaders left Brussels with ‘good news’ for their citizens. However, those with more Euro-federalist feelings were left with a sense of non-accomplishment and missed opportunities, not only because the EU budget for the first time in history was set for a net decrease, but also because the European Council’s conclusions did not contain any ground-breaking changes to this system. Nevertheless, the European Parliament (EP) immediately reminded Europe about its role and outlined its conditions for further negotiations. Thus, the supporters of a modern and stronger EU budget still see a chance in the consent procedure and hope to shift the focus of the debate from the juste retour spirit to the consideration of the European common good. Is there still a chance for such a shift? What issues are at stake?

Environmental Degradation, Climate Change and Migration: from Research to Policy-Making. IES Policy Brief Issue 2013/08/September 2013

Summary. In recent months, the migratory impacts of environmental degradation and climate change have gained increased worldwide attention. In response to the publication of the EC Staff Working Document on Climate Change, Environmental Degradation and Migration, this policy brief critically outlines current themes and issues that surround this global phenomenon, specifically the findings of current international research which frame the discussions on terminology and current legal, political and institutional conceptual debates. Several proposals were put forward during a Policy Forum in January 2013. Firstly, there is a need for tailored and actionable research outputs that take into account political pressures and realities on the ground. Secondly, migration and climate policies would be clearly boosted through the elaboration of a common policy-oriented research agenda of which elements were put forward at the event. Finally, efficient communication tools and channels could be developed to transfer research findings to policy-makers.

Strategic Insurance: The Future of the Belgian Armed Forces. IES Policy Brief Issue 2014/04/May 2014

Summary. Belgium is on the cusp of its next defence reform. While the security landscape throughout Europe’s neighbourhood and beyond deteriorates, the armed forces face numerous challenges. Most importantly, the next defence plan needs to recalibrate the force structure in function of political ambitions and budgetary realities. This Policy Brief argues that Belgium must embrace a nimble but broad-spectrum force. Any future structure must encompass agile land forces as well as a modern combat air force, without neglecting the need to safeguard a sizeable navy and invest in cyber capabilities. European cooperation should be pursued wherever possible while recognising that this necessitates budgetary convergence. For Belgium this means the investment budget needs to grow significantly in order to acquire interoperable but self-owned assets. Such a choice can be justified on the recognition that defence is not just about expeditionary operations, but also economic stimulus, intergenerational solidarity and strategic insurance: maintaining the ability to respond to whatever the future may bring.

Financing European Defence: Time to Call the European Investment Bank? IES Policy Brief Issue 2014/05/July 2014

Summary. Financing research and development programmes have never been more expensive in Europe. Defence budgets are on the wane, international competition is fierce and high-end technologies are increasingly expensive. Europe’s defence-industrial base is under significant strain, and options are needed to fund elements of a sector that is still crucial to Europe’s security and industry. This Policy Brief argues that the European Investment Bank could play a much greater role in Europe’s defence sector. As a public-private institution the Bank could serve as a life-line to defence R&D, dual-use projects and support for SMEs, especially where regional clusters are involved.

Governing Global Food Security. IES Policy Brief Issue 2014/07/September 2014

Summary. Food security remains a critical issue for the international community. Although significant and positive steps have been taken towards worldwide food governance in recent years, this Policy Brief argues that more can and should be done in the coming years. Additional actions that policy-makers could consider range from enhancing understanding between different actors and improving the engagement of civil society to the extension of capacity-building efforts, regulatory stability and sufficient access to credit. When taken together in a search for strategic policy coordination, these actions offer the possibility to dramatically improve global food security.

EU Foreign Policy Between the Revolution and the Status Quo. IES Policy Brief Issue 2014/09/November 2014

Summary. When a new High Representative takes office, an opportunity presents itself to take a look at existing EU external policies and assess whether these are still sufficient to safeguard Europe’s interests in light of recent events. New strategic priorities have to be defined where necessary, not on each and every topic of foreign policy, but on those big issues that European nations can only deal with collectively, through the EU. How to pursue these strategic priorities is an equally important question. Looking for the right balance between a far-reaching reform agenda and a status quo policy, both of which can be detrimental to its interests, the EU can opt for pragmatic idealism as the new strategic concept for its foreign policy.