The Impact of Banking Structural Reform on Household Retail Finance. ECRI Commentary No. 13, 7 October 2014

There are two main objectives behind the EC proposal on banking structural reform: the financial stability objective and the economic efficiency objective. If it is implemented, the reform should reinforce the stability and economic efficiency of household retail activities through lower contagion, better resolvability in the event of failure, more harmonised supervisory practices across the EU and more resilient household demand for retail loans. However, it could also trigger counterproductive effects that could partly undermine the expected benefits. These potential negative effects are not appropriately assessed in the impact study of the proposal published in January 2014 and will require further consideration in the coming months. In particular, the stability of household retail finance could be strengthened by placing more emphasis on bankruptcy risks of retail banks; the transfer of existing systemic activities towards less regulated and supervised markets and reputational risk. A better analysis of the borrowing costs for households (impacted by the potential decreasing diversification of the funding base of banks and scarcer liquidity) and implementation costs could help regulators to achieve the objective of efficient household activities.

EU citizenship, Citizenship and identity beyond national borders. EU Centre Singapore Background Brief No. 10, October 2013

The 1992 Maastricht Treaty introduced the concept of European Union citizenship. All citizens of the 28 EU member states are also EU citizens through the very fact that their countries are members of the EU. Acquired EU citizenship gives them the right to free movement, settlement and employment across the EU, the right to vote in European elections, and also on paper the right to consular protection from other EU states' embassies when abroad. The concept of citizenship in Europe – and indeed anywhere in the world – has been evolving over the years, and continues to evolve. Against this time scale, the concept of modern citizenship as attached to the nation-state would seem ephemeral. The idea of EU citizenship therefore does not need to be regarded as a revolutionary phenomenon that is bound to mitigate against the natural inclination of European citizens towards national identities, especially in times of economic and financial crises. In fact, the idea of EU citizenship has even been criticised by some scholars as being of little substantive value in addition to whatever rights and freedoms European citizens already have. Nonetheless the ‘constitutional moment’ that the Maastricht Treaty achieved for the idea of EU citizenship has served more than just symbolic value – the EU’s Charter of Fundamental Rights is now legally binding, for instance. The idea of EU citizenship also put pressure on the Union and its leaders to address the perceived democratic deficit that the EU is often accused of. In attempts to cement the political rights of EU citizens, the citizens’ initiative was included in Lisbon Treaty allowing citizens to directly lobby the European Commission for new policy initiatives or changes.

The European Union and global security: is the EU becoming the indispensable partner? EU Centre Singapore Background Brief No. 11, April 2014

The European Union has developed new capacity as a security actor in third countries, in particular in the area of crisis management. Over the past two decades the EU has deployed numerous missions, both of a civilian and military nature. Moreover the EU has defined its ability to intervene all along the ‘crisis cycle’, (from prevention to mediation, from peace-keeping to post-conflict reconstruction) and using all tools at its disposal (taking a ‘comprehensive approach’). However the EU is still not perceived as a major security provider globally and interventions remain limited to some geographic areas, mostly in its neighbourhood and Africa, with just a few examples further afield. The EU also tends to avoid taking direct action and seems to prefer partnership arrangements with other players. How can we explain the growing activism and number of EU’s intervention with the low impact and lack of visibility? Can we expect the EU to become more active in the future, taking on more responsibility and leading roles in addressing conflict situations? This paper will argue that the main reason for the EU’s hesitant role in crisis management is to be found in the weak decision-making provisions for EU’s security interventions, as one of the few policy areas still subject to consensus amongst 28 European Union Member States. Lack of a clearer delegation of competence or stronger coordination structures is closely linked to low legitimacy for the EU to take more robust action as a security actor. In order to overcome this legitimacy problem, and in order to facilitate consensus amongst Member States, the EU thus privileges partnership arrangements with other actors who can provide legitimacy and know-how, such as the UN or the African Union. As there is no political desire in the EU for tighter decision-making in this area, we can expect that the EU will continue to play a supporting rather than leading role in crisis management, becoming the partner of choice as it deepens its experience. However this does not mean that the EU is playing just a secondary role in the wider area of security, in particular when looking at nontraditional security. Looking at the role of the EU in Asia, where the EU has deployed just two missions, this paper will offer a broader assessment of the EU as a partner in the area of security taking into account different types of actions. The paper will argue that in order to strengthen cooperation with Asian partners in the area of crisis management, the EU will need to define better what it is able to offer, present its actions as part of an overall strategy rather than ad-hoc and piecemeal, and enter into partnership arrangements with different players in the region.

Infospective on the European Elections and the European Parliament. EU Centre Singapore Background Brief No. 12, May 2014

With the 2014 European Elections just round the corner, the EU Centre has published an infospective (Background Brief 12) by Devi Shree Malarvanan and Dexter Lee (EU Centre in Singapore) entitled “Infospective on the European Elections and the European Parliament” This infospective covers the history of the European Parliament, highlighting the legislative powers that Parliament has since the 1960s. It also covers the issues and results of the previous 7 European elections, and will feature a sneak peak of the upcoming 2014 European Elections which will be held later in May.

EU Policies on Mixed Migration Flows in the Mediterranean Sea. EU Centre Singapore Background Brief No. 13, February 2015

The tragic deaths of over 300 people off the coast of Lampedusa in 2013 and many other incidents involving migrants from Middle East and North Africa (MENA) crossing the Mediterranean in order to seek refuge in Europe has led to a European Union (EU) level debate on asylum policies and how to deal with irregular migration. However, no concrete policy has been agreed since the tragic events at Lampedusa in 2013 and continuous crossings that have resulted in many more deaths. This background brief provides an overview of the existing EU policies on asylum seekers and in addressing irregular migration and some of the actions which the relevant Member States take when confronted with continuous flows of irregular migrants. This brief concludes that the EU should delink the rescue of irregular migrants from security concerns, provide a legal basis which offers protection to irregular migrants, and create a transparent working environment in which member states are better able to support each other when dealing with such events.

Keeping EU-Asia Re-engagement on track. EU Centre Singapore Policy Brief No. 8, January 2015

The relationship between the European Union (EU) and Asia is in flux. The EU intensified its economic ties to Asia and boosted its security cooperation in the region in 2011 and 2012. But new challenges, including the crises in Ukraine and the Middle East, have made it difficult to sustain this incipient momentum. There are a number of steps that EU and Asian governments can and should take to continue to strengthen their relations.

In Pursuit of Peace, Prosperity and Power – What ASEAN and EU can learn from each other? EU Centre Singapore Policy Brief No. 7, May 2014

The EU and ASEAN are often compared and seen as relatively successful regional organisations in their respective regions. Yet of late, both regional organisations are under intense scrutiny as they confront challenges posed by the financial crisis and rising geopolitical tensions. Their inability to respond effectively to these challenges has brought about a chorus of criticisms. Noting the current tensions face by both the EU and ASEAN in their respective regions, one could not help but wonder how and if they would be able to deal with the increasing complex security landscape because of a weakened US, and the rise of the rest. This article will compare and contrast the approaches taken by the EU and ASEAN thus far in trying to build peace and prosperity, and how they manage the demands of power politics to distill some lessons on what they can learn from each other in order to navigate an increasingly paradoxical world of economic interdependence but political fragmentation.

Discussions in Europe on Variable Compensation in the Financial Sector. EU Centre Singapore Working Paper no. 20, February 2014

Bonuses – which are often used to mitigate principal-agent problems and to encourage employees to work harder – have increased tremendously in the financial sector during the last decade, and have often been seen as a contributing factor to the financial crisis of 2008. The recent European Union (EU) action to adopt a policy that restricts bonuses paid to bankers may seem promising at first, but this does not address the real issues behind variable rewards. Compensation policies should be changed to encourage responsible risk-taking and decision-making through the implementation of broader performance metrics, forfeitable holdbacks and hybrid bonds. Furthermore, a change in organisational culture is needed to improve ethical behaviour leading to a re-balancing of stakeholders’ interests in the financial sector.

Unified European Front: The Road towards a European Unitary Patent. EU Centre Singapore Working Paper No. 21, March 2014

For over forty years, European countries have held numerous conferences and signed multiple international agreements aimed at either creating a unitary patent which will be valid in all European countries upon issuance or establishing a specialized European court with jurisdiction over patents. This paper first outlines the need for a unitary patent in the European Union and then chronicles the measures taken to support and milestones toward the creation of a European-wide unitary patent system. The paper then discusses the few problems and pitfalls that have prevented European countries from coming to an agreement on such a patent system. Finally, the paper considers the closely related agreements of ‘Unitary Patent Package’, the challenges facing these agreements and examines if it would finally result in an EU Unitary patent system that benefits one and all.

The European Union’s Democratic Deficit and Options for EU Democracy in the 21st Century. EU Centre Singapore Working Paper No. 22, August 2014

The European Union (EU) is widely acknowledged as a successful example of economic and political integration of nation states today – a slate of democratic institutions such as the European Parliament have also been developed and European citizens now possess extensive political and civil rights by virtue of the introduction of European citizenship. Nevertheless, the EU is said to suffer from a so called “democratic deficit” even as it seeks deeper and closer integration. Decades of institutional design and elite closed-door decisions has taken its toll on the inclusion and integration of European citizens in social and political life, with widening socio-economic inequalities and the resurgence of extreme-right parties during in the wake of the debt crisis in the Eurozone. This paper attempts to evaluate the democratic development of the EU through the use of a process-oriented approach, and concludes at the end with discussions on the various options that the EU and its citizens can take to reform democratic processes and institutions in Europe.

Higher education scholarships as a soft power tool: an analysis of its role in the EU and Singapore. EU Centre Singapore Working Paper No. 23, March 2015

The European Union and Singapore are vastly different entities, each with its own regional and global priorities and policies. Both actors employ a range of tools and instruments to aid in their foreign policy objectives, including in the projection of their soft power. It is worth analysing and comparing the specific instruments of these two actors’ soft power strategies, including but not limited to their stated objectives and perceived effectiveness. This paper will compare the role of higher education and scholarships in diffusing soft power through a comparative case study of the Erasmus Mundus scholarship program and the Singapore Scholarship administered by the Ministry of Foreign Affairs. It will look at the ways in which these programs have shaped the standing of the actors in diffusing their norms and objectives in the regional and international arena. A comparative analysis of these programs will hopefully provide some insight into the proximity between foreign policy-making and higher education internationalisation. This paper will begin with an overview of the aforementioned programs and related schemes, before dissecting and comparing the intent and the policy-making processes behind these, and concludes with a discussion on the present and future role of higher education as a strategic soft power tool.