The Crowding-out Effect of Mandatory Labour Market Pension Schemes on Private Savings. Evidence from renters in Denmark. CEPS Working Document No. 389, February 2014

This paper aims to estimate the crowding-out effect of the Danish mandatory labour market pension reforms begun in 1993 on the level of total household savings for renters. The effect is identified via a large panel of individual administrative records utilising the differences in speed, timing and sectoral coverage of the implementation of the reform in the period 1997 to 2005. Little substitutability was found between current mandatory labour market pension savings and private voluntary savings. Each euro paid into mandatory labour market pension accounts results in a reduction in private savings of approximately 0 to 30 cents, depending on age. This low rate of substitution is only, to a minor extent, explained by liquidity constraints. The results point to mandatory pension savings having a large effect on total household savings. Thus, pension reforms that introduce mandatory savings have macroeconomic implications.

Impact of the ‘Big bang’ enlargement on EU foreign policy – 10 years on. CEPS Commentary, 5 May 2014

The tendency within the EU today to blur distinctions between internal and external policies and between hard and soft security demands a more holistic and inclusive approach in tackling challenges and seizing opportunities if the EU is to make good on its foreign policy objectives. In his assessment of the impact of the ‘big bang’ enlargement on EU foreign policy a decade later, Steven Blockmans finds that the experience and expertise of the (by now not so) new member states has been and will continue to be indispensable for the European Union.