European Policy Uses of International Comparisons of Academic Achievement. ACES Working Papers, 2012

International large-scale assessments (ILSAs) and the resulting ranking of countries in key academic subjects have become increasingly significant in the development of global performance indicators and national level reforms in education. As one of the largest international surveys, the Programme for International Student Assessment (PISA) has had a considerable impact on the world of international comparisons of education. Based on the results of these assessments, claims are often made about the relative success or failure of education systems, and in some cases, such as Germany or Japan, ILSAs have sparked national level reforms (Ertl, 2006; Takayama, 2007, 2009). In this paper, I offer an analysis of how PISA is increasingly used as a key reference both for a regional2 entity like the European Union (EU) and for national level performance targets in the example of Spain (Breakspear, 2012). Specifically, the paper examines the growth of OECD and EU initiatives in defining quality education, and the use of both EU benchmarks and PISA in defining the education indicators used in Spain to measure and set goals for developing quality education. By doing so, this paper points to the role of the OECD and the EU in national education systems. It therefore adds to a body of literature pointing to the complex relationship between international, regional, and national education policy spaces (cf. Dale & Robertson, 2002; Lawn & Grek, 2012; Rizvi & Lingard, 2009).

Re-thinking the EU's development paradigm: views from Morocco and Tunisia. EPC Policy Brief, 12 January 2015

A decade of the European Neighbourhood Policy (ENP) and the standard model of business as usual remains. Is there a reluctance to take the prevailing development paradigm based on economic growth and question its suitability as a motor for development? Most ENP resources and most tangible results remain within a financial framework, with a concentration on market-driven reforms in relation to economic and social change. On this basis, the current atmosphere represents a historical opportunity for rethinking the EU´s development paradigm fostered in the region. Drawing on extensive field work in Morocco and Tunisia, this policy brief highlights limitations and contradictions of the EU´s socio-economic development policies.

From a European to a common security and defence policy. IES WORKING PAPER 5/2010

The Lisbon Treaty has introduced significant changes in the field of EU security and defence. On the one hand, important institutional reforms, such as the creation of a renewed High Representative, have of course a great impact on this policy field. On the other hand, the Lisbon Treaty has also introduced specific innovations in the security and defence of the European Union. The mutual defence clause and the new mechanisms for flexible cooperation such as the permanent structured cooperation, are only some of the key innovations. Generally, the European Security and Defence Policy receives its own section in the Treaty on European Union and is rebranded as Common Security and Defence Policy. Thus, the Lisbon Treaty sets the objective for a common policy in this field. However, does this reform really provide for the means for the realization of such a common policy? Furthermore, does the Lisbon Treaty increase the importance of CSDP or is the increasing importance of this policy field just reflected in the Treaty text? These are the main questions that the present paper attempts to address through the analysis of the new institutional setting of the post-Lisbon security and defence policy, as well as through the examination of the specific innovations in this area.

It’s not just Russia: Currency crisis in the Commonwealth of independent states. Bruegel Policy Contribution 2015/01, February 2015

The currency crisis that started in Russia and Ukraine during 2014 has spread to neighbouring countries in the Commonwealth of Independent States (CIS). The collapse of the Russian ruble, expected recession in Russia, the stronger US dollar and lower commodity prices have negatively affected the entire region, with the consequence that the European Union's entire eastern neighbourhood faces serious economic, social and political challenges because of weaker currencies, higher inflation, decreasing export revenues and labour remittances, net capital outflows and stagnating or declining GDP. •The crisis requires a proper policy response from CIS governments, the International Monetary Fund and the EU. The Russian-Ukrainian conflict in Donbass requires rapid resolution, as the first step to return Russia to the mainstream of global economic and political cooperation. Beyond that, both Russia and Ukraine need deep structural and institutional reforms. The EU should deepen economic ties with those CIS countries that are interested in a closer relationship with Europe. The IMF should provide additional assistance to those CIS countries that have become victims of a new regional contagion, while preparing for the possibility of more emerging-market crises arising from slower growth, the stronger dollar and lower commodity prices.

Euro-area governance: what to reform and how to do it. Bruegel Policy Brief 2015/01 February 2015

The Issue Reform of the governance of the euro area is being held back by disagreement on what is at the root of the euro area’s woes. Pre-crisis, the euro area suffered from the built-up of financial imbalances, price and wage divergence and an insufficient focus on debt sustainability. During the crisis, the main problems were slow resolution of banking problems, an inadequate fiscal policy stance in 2011-13 for the area as a whole, insufficient domestic demand in surplus countries and slow progress with structural reforms to overcome past divergences. Policy Challenge Euro-area governance needs to move beyond the improvements brought about by banking union and should establish institutions to prevent divergences of wages from productivity. We propose the creation of a European Competitiveness Council composed of national competitiveness councils, and the creation of a Eurosystem of Fiscal Policy (EFP) with two goals: fiscal debt sustainability and an adequate area-wide fiscal position. The EFP should have the right in exceptional circumstances to declare national deficits unlawful and to be able to force parliaments to borrow more so that the euro-area fiscal stance is appropriate. A euro-area chamber of the European Parliament would have to approve such decisions. No additional risk-sharing would be introduced. In the short term, domestic demand needs to be increased in surplus countries, while in deficit countries, structural reform needs to reduce past divergences.

Poor and under pressure: the social impact of Europe's fiscal consolidation. Bruegel Policy Contribution, Issue 2015/04, March 2015

Europe faces major challenges related to poverty, unemployment and polarisation between the south and the north, which impact adversely the current living conditions of many citizens, and also negatively impact medium- and long-term economic growth. Fiscal consolidation exaggerated social hardship. In vulnerable countries there was no alternative to fiscal consolidation, but in most EU countries and at aggregate EU level, consolidation was premature when the cyclical position of the economy was deteriorating. Spending on social protection was shielded relative to other spending categories, but public bank rescue costs were high. While the changes in the tax mix favoured job creation, the overall tax burden become more regressive. There is an increasing generational divide between the elderly and the young in terms of social indicators. Social spending on elderly people was favoured relative to spending on families, children and education. There is now a serious danger that a lost generation might develop in several member states. Forceful policies should include bold structural reforms, better use of the European economic governance framework, more demand promotion, and a revision of national tax/benefit systems for fair burden sharing between the wealthy and poor.

A briefing on Eurobonds. European Policy Brief No. 10, June 2012

The recurrent debate on Eurobonds is often clouded by misconceptions. This Policy Brief clarifies their aims and possible forms, before discussing the key challenges for their introduction. It argues that, by ensuring market access to vulnerable Member States, Eurobonds can constitute a valuable tool to alleviate the eurozone crisis. To make use of their short-term potential, a condi-tional and progressive introduction of Eurobonds, starting with a limited scheme, seems the best achievable approach.

Don’t complicate it even further: Macroeconomic Conditionality as a Substitute for new Structural Reform Contracts. European Policy Brief No. 15, May 2013

The idea of introducing contracts between Member States and the EU on structural reforms has its merits, it also has several disadvantages. Most notably, the contracts risk rendering European economic governance even more complex and cumbersome. It is therefore sensible to first try to integrate the structural reform contracts into one of the foreseen economic governance instruments. This Policy Brief argues that macroeconomic conditionality can serve this purpose. With some minor reforms, it could even become a full-fledged substitute for structural reform contracts – without suffering some of latter’s disadvantages.

What if the Next Financial Crisis Hits the Banking Union? A Call for an “If All Else Fails” Clause. European Policy Brief No. 16, September 2013

This Policy Brief argues that the envisaged design of the Banking Union risks not being sufficient to deal with the next large-scale financial crisis. Therefore, an “if all else fails” clause should be approved, stating that the Banking Union members can provide joint last resort financing to deal with a future crisis. An agreement on the clause should be feasible because it is beneficial to all Member States.

Contractual arrangements: the overlooked step towards a fiscal union. European Policy Brief No. 18, December 2013

‘Contractual arrangements’ were proposed as an initial step towards a fiscal union that would consolidate the EMU. At this stage, the debate should be centred on the cornerstone of these contracts: the solidarity mechanism. The form of the financial support should not be limited to loans, and include the possibility for grants. Only the countries with the greatest adjustment needs should benefit from the financial support of other countries. This solidarity could be justified in principle by the intensity of the ‘shocks’ they experienced. In this way, contractual arrangement would facilitate the completion of the necessary adjustment in the current crisis – thanks both to more structural reforms and more mutual support within the eurozone.

Institutional Reform in the EU. European Policy Brief No. 19, February 2014

This Policy Brief discusses the potential reforms of the EU institutions that can take place during the 2014-2019 legislative term. It argues that negotiations on Treaty change are a possibility, but they should only start in the second part of the legislature. In the meantime, several institutional reforms that can improve the functioning of the EU – and hence increase its legitimacy – should already be considered.

The European Semester in Belgium: A state of play. European Policy Brief No. 32, October 2014

After four rounds of the European Semester process of EU economic coordination, Belgium has done relatively little to comply with EU recommendations. This brief substantiates and confirms this claim after clarifying the meaning of these recommendations. While the challenges underlined by the European Commission still lie ahead, Belgium’s ownership of the recommendations for reforms has been low. Not only do coordination processes remain bureaucratic and technocratic, but many of the recommendations’ concerns – external competitiveness, social security reforms, market reforms – are not traditionally defended by the political left in Belgium. The controversy surrounding the recommendations for national structural reforms owes much to their supply-side orientation, which contrasts with the inability of the EU to pursue demand-side policies. But despite this disequilibrium, the recommendations highlight relevant issues that ought to be addressed, and indicate where scope for national debate exists.

European elections: from ‘second-order’ elections to ‘first-order supranational’ elections, How can a ‘first-order supranational’ European election be created? European Policy Brief No. 34, April 2014

Starting from the idea that European elections cannot be considered as purely second order elections, the author gathers some proposals in order to encourage a more effective electoral process. According to the author, if political leaders adopt these reforms, it could transform gradually the European elections into genuine ‘first-order supranational elections’.

Capital Markets Union: a vision for the long term. Bruegel Policy Contribution ISSUE 2015/05 April 2015

Capital Markets Union (CMU) is a welcome initiative. It could augment economic risk sharing, set the right conditions for more dynamic development of risk capital for high-growth firms and improve choices and returns for savers. This offers major potential for benefits in terms of jobs, growth and financial resilience. • CMU cannot be a short-term cyclical instrument to replace subdued bank lending, because financial ecosystems change slowly. Shifting financial intermediation towards capital markets and increasing cross-border integration will require action on multiple fronts, including increasing the transparency, reliability and comparability of information and addressing financial stability concerns. Some quick wins might be available but CMU’s real potential can only be achieved with a long-term structural policy agenda. • To sustain the current momentum, the EU should first commit to a limited number of key reforms, including more integrated accounting enforcement and supervision of audit firms. Second, it should set up autonomous taskforces to prepare proposals on the more complex issues: corporate credit information, financial infrastructure, insolvency, financial investment taxation and the retrospective review of recent capital markets regulation. The aim should be substantial legislative implementation by the end of the current EU parliamentary term.

Costs and Benefits of RES in Europe up to 2030. DIA-Core Policy Brief, 24 June 2014

Introduction. This Policy Brief follows-up on the DIA-CORE Policy Brief on “Assessing costs and benefits of deploying renewables”, dated 26 September 2014, which highlighted the complexities in making a comprehensive and appropriate assessment of costs and benefits resulting from an increased use of renewable energy sources (RES). It distinguished the different types of effects into system-related effects, distributional effects and macro-economic effects, and looked at the related data requirements, which need to be comprehensive and standardised. This DIA-CORE Policy Brief uses the tools proposed in the previous Policy Brief to estimate the effects on Member States of reaching the EU-wide RES target of 27% of the EU’s energy consumption by 2030. This allows to draw some conclusions on the differentiated impacts across Member States, and the potential implications for an effort sharing approach. It also assesses whether a higher ambition level could be beneficial. The paper also takes into account the implications of national policy frameworks and highlights the importance of reforms to reduce the costs of RES adoption.