Cameron’s ‘renegotiations’ (or Russian roulette) with the EU: An interim assessment. CEPS Working Document No. 413/September 2015

Since the May 2015 general election when the Tory Party gained an absolute majority in the House of Commons, Prime Minister Cameron has put his campaign into high gear to get a ‘new settlement’ with the EU and invested much personal diplomacy to try to advance his objective. “What does he really want?” is still heard from other EU leaders, yet his agenda is taking rough shape with calls for results under four headings: “competitiveness, sovereignty, social security and economic governance”. These are only code words, however, for a mixed bag of more specific desiderata, which overall seem to be moderate. Impossible demands have been quietly dropped. Some items will still be tricky to negotiate while others can be placed on the agenda for ongoing EU ‘reform’ that can be widely supported. The Brussels side of the affair thus seems manageable, but the wild cards at home in the UK remain or are becoming even wilder. The standard hazards of the referendum instrument are now exacerbated by the unknown quantity of the new Labour leadership alongside the aggressively Eurosceptic majority of Tory MPs and the great migration crisis, which is translating now into a negative factor for the EU in UK opinion polls. This ostensibly very democratic process is looking more and more like a deadly serious game of Russian roulette.

Will Cameron get what he wants? Anticipating reactions to Britain’s EU reform proposals. CEPS Commentary, 29 October 2015

After months of speculation about the British Prime Minister’s specific demands in terms of the “renegotiation” of the UK’s relationship with the EU, David Cameron has bowed to pressure from the heads of state or government of the other EU member states and committed himself to setting out the UK’s specific “concerns” in writing by early November. While we cannot be certain of the contents of David Cameron’s missive to the EU, his recent pronouncements before Parliament set out an agenda whose contours have become quite clear. In this Commentary the authors consider how far the other EU member states might be willing to accommodate Cameron’s demands and provide him with the political capital he seeks to lead the ‘in’ campaign. They distinguish four different attitudes among EU countries, and advocate a constructive approach that sets the scene for a Convention after 2017 – one that opens the treaty for a revision that could accommodate both the British demands for an ‘opt-out’ from ever closer union and gives leeway to those who wish to integrate further. Putting emphasis on strengthening the single market in the more immediate term would allow the Prime Minister to show his home audience that he is a leading reformer and that the EU gives oxygen to the British economy.This is an obvious area where he might be able to seal deals during the UK’s Presidency of the Council of the EU in the second half of 2017. The authors also consider what the European Council Conclusions on the UK’s wish list for EU reform might look like, given that any treaty revision before the time set for the UK referendum is unattainable. They present the results of a two-day simulation exercise involving a cross-section of national experts and present mock European Council Conclusions on the areas of ever closer union; the role of national parliaments; competitiveness; economic and monetary integration; and the free movement of labour.

European Bank Resolution: Making it work! Interim report of the CEPS Task Force on Implementing Financial Sector Resolution. CEPS Task Force Report, January 2016

From the start of 2016, new rules for bank resolution are in place – as spelled out in the Bank Recovery and Resolution Directive (BRRD) – across the EU, and a new authority (the Single Resolution Board, or SRB) is fully operational for resolving all banks in the eurozone. The implementation issues of the new regime are enormous. Banks need to develop recovery plans, and authorities need to create resolution plans as well as set the minimum required amount of own funds and eligible liabilities (MREL) for each bank. But given the diversity in bank structures and instruments at EU and global level, this will be a formidable challenge, above all with respect to internationally active banks. In order to explore ways in which the authorities and banks can meet this challenge, CEPS formed a Task Force composed of senior experts on banking sector reform and chaired by Thomas Huertas, Partner and Chair, EY Global Regulatory Network. This report contains its policy recommendations.