Synthesis Report on the Impact of Capital Use. Factor Markets Working Document No. 57, August 2013

This paper examines the drivers of productivity in EU agriculture from a factor markets perspective. Using econometrically estimated production elasticities and shadow prices of factors for a set of eight EU member states, we focus on field crop farms represented in the FADN database for the years 2002-08. As it turned out that output reacts most elastically to materials input, we investigate this factor further and find different rationing regimes represented in different member states. Marginal return on materials is low in Denmark and West Germany, but significantly above typical market interest rates in East Germany, Italy and Spain. In the latter countries and in Denmark it also increased towards the end of the observed period. This finding is consistent with a perception of tightening funding access, possibly induced or reinforced by the unfolding financial crisis. Marginal returns to land, labour and fixed capital are generally low. We conclude that the functioning of factor markets plays a crucial role for productivity growth, but that factor market operations display considerable heterogeneity across EU member states.

Cardiff: Birthplace of a new Transatlantic Narrative? Egmont Security Policy Brief No. 57, July 2014

Cardiff has the potential to turn into a “great meeting”, if the focus is on forging a new and attractive narrative to underpin a solid transatlantic security relationship, in which NATO finds its place. But Europeans must become serious on defence – and not only because the US asks for it. Otherwise, the EU and for sure the European States will become strategic bystanders and even objects of great power competition. That would be a real game-changer. That is why, in Cardiff, “we” ought to be ambitious enough to deal with the real issues, including the relationship between NATO and the CSDP.