British Balance of Competence Reviews, Part III: More reform than renegotiation or repatriation. EPIN [Working] Paper No. 42/December 2014. [see Abstract for I and II]

This paper, the third in a series for a CEPS project on the ‘The British Question’, is pegged on an ambitious exercise by the British government to review all the competences of the European Union on the basis of evidence submitted by independent stakeholders. The reviews considered in this paper cover the following EU policies: the single market for services, financial markets, the free movement of people, cohesion, energy, agriculture, fisheries, competition, social and employment policies, and fundamental rights. The declared objective of Prime Minister Cameron is to secure a ‘new settlement’ between the UK and the EU. From political speeches in the UK one can identify three different types of possible demand: reform of EU policies, renegotiation of the UK’s specific terms of membership, and repatriation of competences from the EU back to the member states. As most of the reviews are now complete, three points are becoming increasingly clear: i) The reform agenda – past, present or future - concerns virtually every branch of EU policy, including several cases reviewed here that are central to stated UK economic interests. The argument that the EU is ‘unreformable’ is shown to be a myth. ii) The highly sensitive cases of immigration from the EU and social policies may translate into requests for renegotiation of specific conditions for the UK, but further large-scale opt-outs, as in the case of the euro and justice and home affairs, are implausible. iii) While demands for repatriation of EU competences are voiced in general terms in public debate in the UK, no specific proposals emerge from the evidence as regards competences at the level at which they are identified in the treaties, and there is no chance of achieving consensus for such ideas among member states. Michael Emerson and Steven Blockmans, “British Balance of Competence Reviews, Part I: ‘Competences about right, so far’”, CEPS/EPIN Working Paper No. 35, October 2013 (www.ceps.eu/book/british-balance-competence-reviews-part-i-%E2%80%98competences-about-right-so-far%E2%80%99)(http://aei.pitt.edu/45599/); Michael Emerson, Steven Blockmans, Steve Peers and Michael Wriglesworth, “British Balance of Competence Reviews, Part II: Again, a huge contradiction between the evidence and Eurosceptic populism”, CEPS/EPIN Working Paper No. 40, June 2014 (www.ceps.eu/book/british-balance-competence-reviews-part-ii-again-huge-contradiction-between-evidence-and-eurosc)(http://aei.pitt.edu/52452/).

The Ukrainian government's strategy towards the opposition. OSW Commentary No. 47, 2011-09-02

In recent months in Ukraine, there has been a toughening of measures targeted at opposition leaders, in particular the former Prime Minister Yulia Tymoshenko and the former interior minister Yuri Lutsenko. These two have been charged with abuses of office when in power. The way in which the criminal investigations are being conducted shows that these measures are actually meant to prevent the two politicians from conducting regular political activities, or at least to make this practically impossible for them. These actions are an element of the Party of Regions’ long-term strategy, as it tries during the pre-election period to eliminate Yulia Tymoshenko from political life and weaken or even destroy her powerbase. Similar measures, although to a more limited extent, are being taken against other opposition groups. These actions are leading to the lowering of democratic standards in Ukraine, although these are still much higher than in Belarus or Russia; this has been proved, among other things, by the militia’s more restrained behaviour towards the protesters, and the fact that abuses of the law during the current investigations have not yet slipped into actual violations. The Ukrainian opposition is fragmented and disorganised; even the Yulia Tymoshenko Bloc is unable to stage a major campaign in defence of its leader. This allows the authorities to feel free to tighten their policy towards the opposition.

Counter-reforms in times of prosperity. OSW Point of View, September 2006

In 2000, Vladimir Putin came to power after nearly a decade of the rule of the first Russian president, Boris Yeltsin. As prime minister, and later as a candidate for president, Putin announced that he would reform the state. The main assumptions of this reform were presented during a congress of the pro-Kremlin Unity movement, in Putin's address entitled 'Russia at the turn of the millennium' which was delivered on 29 December 1999, and later in a open letter to voters published on 25 February 2000. Both declarations were rather general, but they gave a clear picture of the principal directions of and priority areas for the future president's efforts: they outlined Russia's development path as pro-market and democratic. Nearly seven years have passed since Vladimir Putin came to power, a time for a summary of his achievements. In a way, Vladimir Putin has partially delivered on his initial declarations; indeed, Russia has undergone a deep transformation. However, when seen in the light of the president’s initial promises, the changes appear to be no more than 'counter-reforms', because instead of putting into practice the policy he outlined seven years ago, they have largely followed a different, if not entirely opposite direction.

Constitution for a new Hungary - the domestic and regional implications. OSW Commentary No. 60, 2011-07-29

The new constitution will come into force in Hungary on 1 January 20121. Its adoption is part of the state reform which the Fidesz party led by Prime Minister Viktor Orbán has been implementing since it won the election in April 2010. Fidesz, along with the Christian Democrats which support it, has a qualified majority of two-thirds of the votes in parliament and may introduce solutions to facilitate its rule without support from other groupings and it is taking advantage of this opportunity. One example of this has been the amendment of the constitution ten times followed by a speedy adoption of a new constitution. The next step will be passing dozens of constitutional laws which regulate essential areas of the functioning of the state over the next few months. Both the way and the scope in which the changes have been made have raised controversies both at home and abroad. The regulations reinforce the position of the ruling camp on the Hungarian political scene, assisting it in passing the test of the next elections. Slovakia, which has criticised the practice of granting Hungarian citizenship to ethnic Hungarians living in other countries, is opposing the promise of also granting them electoral rights. The constitutional reinforcement of the state’s ‘responsibility’ for the diaspora linked with the collective concept of national minority rights fostered by Hungary has already led to tensions in the region.

Slovakia: the Eurogroup’s enfant terrible. OSW Commentary No. 63, 2011-10-14

When Slovakia’s parliament rejected the European Financial Stability Facility (EFSF) reform on 11 October it undermined Slovakia’s reputation as a credible partner within the EU. Moreover, Prime Minister Iveta Radicova combined the vote on the strengthening of the EFSF – a key anti-crisis mechanism in the Eurozone – with a vote of confidence for her cabinet. This eventually led to the collapse of the government. Before Slovakia’s decision, the strengthening of the EFSF had been endorsed by the national parliaments of all the eurozone countries. Slovakia, which had opted to be the last one to carry out the ratification procedure, adopted the EFSF reform only in a re-vote on 13 October, due to the support of the opposition left-wing party. However, problems with ratification have cast a shadow over the achievements of Slovakia which as one of the freshest members of the eurozone had been actively seeking to influence the creation of EU mechanisms for dealing with the debt crisis. For the past eighteen months the Slovak government, formed by conservative and liberal parties, has consistently called for the controlled bankruptcy of Greece, a tightening of the rules of the Stability and Growth Pact, and for the private sector’s participation in financing the rescue packages for indebted states. It was in part down to Slovakia that these proposals, previously regarded as extreme, were introduced into the mainstream EU debate. The constructive position presented by Slovakia’s diplomacy in recent months has brought Bratislava tangible results, such as the reduction of its contribution to the permanent anti-crisis fund, the European Stabilisation Mechanism (ESM). Thus Slovakia, which adopted the single currency on 1 January 2009, has become an informal spokesman for the new, poorer members of the eurozone.

2002 Parliamentary elections in Ukraine: Events, results and consequences; Ukraine's Parliamentary system after the elections. OSW Study 8/2003

2002 elections: On 31 March 2002, parliamentary elections were held in Ukraine. As expected, they were a major success for the centrist-rightist coalition focused around former Prime Minister Viktor Yuschenko. The communists emerged significantly weaker from the vote, and the "party of power" achieved a poor result. Yet, due to the mixed electoral law (half of the deputies were elected in single-mandate districts), the latter block, firmly supported by President Leonid Kuchma, resulted as the main force in Parliament. The results of particular parties and blocks were as follows: Viktor Yuschenko's Block received 23.57% of votes and 112 seats, the Communist Party of Ukraine - 19.98% of votes and 66 seats, the "For One Ukraine" block - 11.77% of votes and 101 seats, Yulia Tymoshenko's Block - 7.26% of votes and 22 seats, the Socialist Party of Ukraine - 6.87% of votes and 22 seats, and the Social Democratic Party of Ukraine (united) - 6.27% of votes and 24 seats. This shows how the mixed electoral regulations favour "For One Ukraine" and act against Yuschenko's block. One should note, however, that the latter gained the support of less than one quarter of voters. After the election: The dominant force in Ukraine's Verkhovna Rada, elected in March 2002, are the deputies of "One Ukraine", a fraction of the pro-presidential centre. "One Ukraine" has refused to admit any of the opposition's representatives (either from the right or left wings) into the parliament's presidium, but has accepted opposition-appointed heads of many parliamentary commissions. Viktor Yuschenko's "Our Ukraine", which has been the largest parliamentary fraction since June, attempted to proclaim itself the centre of the parliamentary majority, but its policy was awkward and inconsistent, and the main success of this club was that it didn't break up. Viktor Yuschenko's moves have been particularly incoherent and they undermined the image of Yuschenko as Ukraine's future leader, created throughout the course of the electoral campaign. In autumn, the main oligarchic groups and their representative fractions ("One Ukraine", which proved to be a useless instrument, was dissolved in June), reached a compromise with the president. It was agreed that the new prime minister should be a Donetsk clan representative (Viktor Yanukovych), and that the Dnipropetrovsk clan should appoint the president of the National Bank of Ukraine (this position went to Serhij Tihipko). The Kyiv clan obtained the President's Administration (Viktor Medvedchuk was appointed in spring) and a considerable number of parliamentary commissions. The president's interests in the government are to be protected by Mykola Azarov, former Head of the State Tax Administration. This compromise "package" was designed to secure the shares of the main oligarchic clans in the power and the president's strong position as mediator.

Russia's strategy towards Moldova: continuation or change? OSW Commentary No. 74, 2012-04-19

The nomination on 21 March of deputy prime minister Dmitri Rogozin to the newly created post of the Russian president’s special representative for Transnistria and to the post of co-chairman of the Russian-Moldovan intergovernmental committee demonstrates the Kremlin’s increased interest in Moldova, and may be a sign of a change in Russia’s strategy towards this country. Other developments which may suggest a revival of Russia’s policy towards Moldova include the appointment on 5 April of Farit Mukhametshin as Russia’s new ambassador in Chisinau. Mukhametshin is a high-ranking official who had previously headed the Federal Agency for the Commonwealth of Independent States, Compatriots Living Abroad and International Humanitarian Cooperation (Rossotrudnichestvo), which is one of the major instruments of Russia’s ‘soft power’ policy towards the post-Soviet states. The Kremlin’s growing interest in Moldova has further been confirmed by an unprecedented visit by Russia’s defence minister Anatoly Serdyukov to Transnistria on 12 April, and a two-day visit by Dmitri Rogozin to Chisinau and Tiraspol on 16–17 April.

Euro 2012 – Ukraine’s wasted opportunity? OSW Commentary 80, 2012-06.08

Ukraine saw hosting the European Football Championship as an important project in terms of image-building and modernisation from the very beginning. The country’s government assumed, during the presidency of Viktor Yushchenko and Viktor Yanukovych alike, that Euro 2012 would provide a major impulse for economic development and show that the young Ukrainian state was capable of successfully preparing one of the most important sport tournaments in the world. Although UEFA’s decision raised eyebrows both in the West and in Ukraine, after initial delays the work gained momentum and, shortly before the championship, Ukraine’s progress could be evaluated as being satisfactory at the least. As part of the preparations, four stadiums were built or modernised, four airports in the host cities were developed and 1,600 km of roads were repaired or built from the ground up. The investments have doubtlessly contributed to an improvement of the infrastructure in Ukraine, but it would be rather inaccurate to say that Euro 2012 has brought about a real modernisation of the country. The funds allocated for the preparations were relatively modest, and part of them was spent in a non-transparent way, which gives rise to suspicions of corruption. The chance to improve Ukraine’s perception in the West has been to a great extent lost due to the trial of the former prime minister, Yulia Tymoshenko, who was sentenced to seven years in prison in October 2011. Over the past few weeks, Euro 2012 as a sports event has been overshadowed by discussions among Western politicians and in the Western media about rising authoritarian tendencies in Ukraine. In turn, football is currently treated as a minor issue in Ukraine’s internal politics. The government has so far not used Euro 2012 to improve its popularity although hosting it is supported by a clear majority of the Ukrainian public. It is still an open question as to whether the Ukrainian government will try to capitalise politically on this sports event; this is especially significant as parliamentary elections are approaching.

Turbulence ahead: disputes within the Russian ruling elite are gathering force. OSW Commentary No. 91, 2012-09-27

The last month has seen a public confrontation between Igor Sechin, the president of Rosneft, and Arkady Dvorkovich, the deputy prime minister, concerning the consolidation of the energy sector. This is the latest in a series of disputes between the Kremlin & businessmen from Putin’s inner circle on one side, and the government & Prime Minister Medvedev on the other. These disputes have been wide-ranging in nature, concerning economic policy, the scope of competency of individual members of the elite, but also the ‘tough line’ adopted by the Kremlin since Vladimir Putin’s return to the presidency. The Kremlin, which is still the main decision-making centre in Russia, has been effectively forcing its opinions through in its short-term disputes with the government. However, a new element in the ongoing conflicts, which is unfavourable to President Putin, is their exceptional strength, their much more public nature, and their wide range (which has included criticism of the president himself) and ever-changing context, especially the worsening socio-economic situation. These conflicts have been overlapping with signs of dissent among Putin’s business supporters, and their declining political willingness to support the leader unconditionally. The Kremlin’s response to the unrest consists of intensifying efforts to discipline the elite and weakening those groups in which Vladimir Putin has limited confidence. The elite’s support is crucial to the stability of his government; to maintain this support, the Kremlin is ready to introduce restrictive and repressive actions against both parliamentarians and government officials. In the short term, such a policy will force the Kremlin’s supporters back into obedience, but fears of a further increase in repression are also starting to be expressed on the sidelines.

The prospects for the EU-Ukraine free trade agreement. OSW Commentary No. 94, 2012-10-15

The European Union and Ukraine initialled the Deep and Comprehensive Free Trade Area Agreement (DCFTA) on 19 July 2012. The scope of the agreement which the EU and Ukraine reached following their negotiations is much more extensive than that of a typical free trade agreement. It envisages not only the lifting of tariff and extra-tariff barriers but also, more importantly, Kyiv adopting EU legal solutions and standards in this area. Whether the agreement will be signed and implemented is still an open question and depends on the existing political conditions. On the one hand, the repression imposed by the government in Kyiv on its political opponents (including the detention of the former prime minister, Yulia Tymoshenko) has provoked criticism from the EU, which refuses to sign the agreement if the government in Kyiv continues to violate democratic principles. The manner in which Ukraine’s parliamentary elections are conducted this October will be the key test. On the other hand, Russia is increasingly active in its efforts to involve Ukraine in the integration projects it has initiated (the Customs Union and the Eurasian Economic Community). It should be noted that Moscow has effective instruments to exert its will, such as the dependence of the Ukrainian economy on supplies of Russian oil and gas and on exports to the Russian market. Besides, Moscow also has political instruments at its disposal. It is impossible to participate in integration projects both with the EU and with Russia. Therefore, Kyiv will have to make a strategic decision and choose the direction of its economic integration. Unless Ukraine takes concrete action to implement its agreements with the EU, primarily including the free trade agreement, its economic dependence on Russia will grow, and it will be more likely to join the Russian integration projects.

Promises and hurdles in EU-Kazakhstan energy cooperation. EUCAM Commentary No. 20, November 2011

Kazakhstan’s Prime Minister, Karim Massimov, once referred to energy cooperation as the ‘core’ of relations between his country and the European Union (EU). Indeed, there is great mutual interest in this area. Six percent of the EU’s crude oil imports and 16 percent of its uranium imports come from Kazakhstan. And around 80 percent of the latter’s oil exports go towards Europe. For Kazakhstani producers, access to European lucrative and reliable markets is of utmost importance. Over the last several years, the thrust of Kazakhstan’s foreign policy was aimed at increasing the capacity of the Caspian Pipeline Consortium (CPC) that pumps Kazakhstani oil to Europe. Moreover, Kazmunaigaz’s (KMG) – the national oil and gas company – major external investment was in the Romanian oil company Rompetrol.

Flashlight Europe No° 1 – January 2015. Tsipras Will Have to Put His Cards on the Table

Alexis Tsipras, the new Greek prime minister, has announced that he intends to terminate the policy of austerity and that “subservience is over.” How will this affect policymaking in the euro-zone? Is the troika going to reconsider its positions? Will the other crisis-ridden states join in the rebellion? And what has all this got to do with the European Central Bank and “quantitative easing?” Henrik Enderlein, who is Professor of Political Economy at the Hertie School of Governance and Director of Jacques Delors Institut – Berlin, provides some answers to these questions.

European Union Leadership and Enlargement in 2014. Jean Monnet/Robert Schuman Paper Series Vol. 14 No. 14, July 2014

On July 15, 2014 the European Parliament confirmed the new European Commission President. An absolute majority was needed for this purpose, and the 422 votes “For” cleared the 376-vote threshold in the legislative body of 751 members. A Grand Coalition has been formed among the three largest political parties: the European People’s Party (EPP), the Progressive Alliances of Socialists Democrats (S&D), and the Alliance of Liberals and Democrats for Europe (ALDE). Considering policy decisions going forward, the European Union (EU) faces the pressing question: Will there be more, less, or similar power from the EU? There are a greater number voices from across the political spectrum contributing to the democratic plurality. European leaders may regain trust by acknowledging that future governance will not be “business as usual” as the reform agenda gets underway. 2014 has been an exciting and important year in European politics. “This time is different” was the motto for the European Parliament’s election campaign. This essay analyzes recent EU political trends with the new Commission leadership and the Parliamentary elections results. The Parliamentary elections, held in late May, and the new European Commission, planned to be in place in the autumn, influence the leadership direction of the 28-member bloc. Additionally, this year on July 1 Croatia celebrated the first anniversary of joining the EU in 2013. Leading the way for candidate countries, Croatia embraces the democratic politics and capitalist market economics embodied by the EU. The greater number of seats held by newer political parties in the European Parliament demonstrates increasing plurality in the EU democracy. The Parliamentary elections have taken place every 5 years since 1979. In this eighth legislative session, the EPP and the S&D remain the largest parties represented, with 221 and 191 seats respectively. As the EU has evolved, a greater number of voices influence politics. The ongoing point of contention on a host of policies is national sovereignty in relation to pooled sovereignty in the EU. The European Parliament is important for democracy in EU governance since it is the direct link from the national citizens to their elected leaders at the supranational level. The representatives of the European Commission are appointed by the national governments of Member States, and their heads of government are the representatives to the European Council. These three political institutions – the European Parliament, the European Commission, and the European Council – together with other important institutions, including the European Court of Justice Luxembourg, form the EU. The new European Commission President is Jean-Claude Juncker, former Prime Minister and Minister of Finance of Luxembourg (1995-2013). After being nominated by the European Council on June 27, his candidacy was voted on by the European Parliament on July 15, according to the guidelines of the Lisbon Treaty. The leadership for the President of the European Commission has been an important issue, considering Britain’s deliberations on whether or not to stay in the EU in the face of a future national referendum. Voting on June 27, among the European Council on the nomination of Commission President-Designate Juncker, was 26 in favor and 2 opposed. Only Viktor Orbán, the prime minister of Hungary, joined David Cameron, the prime minister of the United Kingdom (UK), with a negative vote (Spiegel and Parker 2014). The UK had not been supportive, being concerned that Juncker embraces the policies of a federalist, prioritizing an ever-closer union above the interests of individual Member States. Historically, since joining the predecessor institution of the European Economic Community in 1973, the UK has had a relatively independent attitude about participation in the EU.

An appropriated state? Moldova’s uncertain prospects for modernisation. OSW COMMENTARY 168, 22.04.2015,

From the Introduction. There have been several significant changes on Moldova’s domestic political scene in the wake of the November 2014 parliamentary elections there. Negotiations lasted nearly two months and resulted in the formation of a minority coalition composed of two groupings: the Liberal-Democratic Party (PLDM) and the Democratic Party (PDM). New coalition received unofficial support from the Communist Party (PCRM), which had previously been considered an opposition party. Contrary to their initial announcements, PDLM and PDM did not admit the Liberal Party led by Mihai Ghimpu to power. Moreover, they blocked the nomination for prime minister of the incumbent, Iurie Leancă. Leancă has been perceived by many as an honest politician and a guarantor of reforms. This situation resulted in the political model present in Moldova since 2009 being preserved. In this model the state’s institutions are subordinated to two main oligarch politicians: Vlad Filat (the leader of PLDM) and Vlad Plahotniuc (a billionaire who de facto controls PDM).

Britain’s Political Earthquake: What aftershocks for Europe and the UK? CEPS Commentary, 11 May 2015

In the wake of last week’s elections in Britain, Michael Emerson examines in this CEPS Commentary the implications of the astonishing results for the EU and the UK and outlines a possible reform package that David Cameron might present to the EU institutions and other member states to fulfil his pledge to achieve a “reformed EU”. He also urges the Prime Minister to consider adding a constructive component to his reform package, namely positioning the UK to act once again as a leading proponent of a more effective European foreign, security and defence policy.