The role of Central Europe in the German economy. The political consequences. OSW Report June 2016

Recent publications allow us to conclude that the economic relations between Germany and Central Europe have come to the ‘end of history’, and nothing new will happen. However, a deeper analysis of these relationships reveals interesting new trends. Since joining the European Union the states of Central Europe have not settled for maintaining the average level of economic development, but have continued to narrow the distance between them and Western Europe, something which the global financial crisis did not prevent. Their improved economic situation also affected their relations with Germany. The latest results from the Visegrád Group states show them to be Germany’s most important trading partner, and their balance of trade in goods is in a state of equilibrium, while many euro area countries have recorded high trade deficits with Germany. The aim of this report is to display the trends in trade and investment between Germany and Central Europe, based on the example of the Visegrád Group. The author will also attempt to answer the question of whether the advancing economic cooperation between Germany and the V4 countries will lead to the further modernisation of those countries’ economies, or whether it will run the risk of leaving them in the ‘middle income trap’.

A constitution for Erdoğan. Consequences of the political conflict in Turkey. OSW COMMENTARY No. 213, 2016-06-01

Since mid-2015 Turkey has been affected by a deep internal crisis, caused by rising political polarisation, increased levels of terrorist threat (posed by the Kurds and Islamic radicals) and the revived conflict with the Kurdistan Workers’ Party (PKK). As a consequence of this crisis, over 350,000 residents of south-eastern Turkey have been forced to leave their homes. At the same time, due to the migration crisis and despite mutual distrust in relations between Turkey and the EU, cooperation between Ankara and Brussels has been intensifying. Turkey’s ongoing destabilisation does not challenge the status of the ruling Justice and Development Party (AKP), which is de facto controlled by President Recep Tayyip Erdoğan; paradoxically, it strengthens the party. The internal crisis which the authorities have been deliberately fuelling is an element of a plan to rubber-stamp political change by introducing a presidential system of government. This is happening amid a thorough reconstruction of the socio-political order which has been underway for over a decade. In the upcoming months it is expected to result in the constitution being changed and, as a consequence, the institutionalisation of Erdoğan’s autocratic rule.

The Impact of Spain’s Economic and Political Crisis on the European Elections. EPIN Commentaries No. 17, 2 April 2014

Despite the emergence of a critical debate against the EU-imposed austerity measures both at the level of the political elites and on the street, this EPIN Commentary by two Spanish political scientists based in Barcelona finds no sign that the upcoming European elections will have a more European focus than any of the previous ones. While there is no anti-European discourse among the Spanish mainstream political parties, they report that public trust in the European institutions is plummeting and Spanish turnout in European elections has been dropping in the last few years. In the authors’ view, the main reason for this is the low level of awareness of the functioning of the European Parliament but some responsibility also lies with the Spanish political parties and the way they deal with the electoral campaign to mobilise the discontented voters, who consider unemployment and the economic situation as the two most important issues that the country is facing at the moment.

Political crossroads ahead in Sweden: The signs are red-green. EPIN Commentary No. 20, 31 July 2014

The political balance in Sweden was upset in this year’s elections to the European Parliament (EP). The far-right ‘Sweden Democrats’ almost tripled their vote-share and the Greens gained enough votes to become the second-largest Swedish party in the EP after the Social Democrats. Support for the current government incumbents, the Moderates, fell beyond expectation. The party will not recover in time for the national elections in September, whereas both the Greens and the Sweden Democrats are likely to repeat their EP election success. Since the Sweden Democrats are unlikely to form part of the coalition government – the election-winners will be the Greens and Social Democrats – Sweden’s political landscape is set to undergo a shift to the left.

Immigration and free movement in an unusual electoral race: what implications for the next political cycle? EPC Policy Brief, 20 May 2014

Immigration and freedom of movement of EU citizens are among the main issues debated throughout the European Parliament election campaign and have some potential in determining who tomorrow’s EU leaders will be. This Policy Brief looks at how the two policies are debated at national level – in France, Germany and the UK – and at EU level between the ‘top candidates’ for European Commission Presidency – Jean-Claude Juncker (EPP), Ska Keller (Greens), Martin Schulz (PES) and Guy Verhofstadt (ALDE) – who have participated in several public debates. Two different campaigns have been unfolding in front of EU citizens’ eyes. The tense debate that can be identified at national level on these issues, is not transferred to the EU level, where immigration and free movement are less controversial topics. Furthermore, although participating in European elections, national parties present agendas responding exclusively to the economic and social challenges of their Member State, while the candidates for the Commission Presidency bring forward ‘more European’ programmes. Hence, several aspects need to be reflected upon: What will the consequences of this discontinuity be? How will this impact the future European agenda in terms of immigration and free movement? What institutional consequences will there be? Answering these questions is not a simple task, however, this paper aims to identify the parameters that need to be taken into account and the political landscape which will determine the future EU agenda in terms of immigration and free movement.

Political economy of the Agenda 2010 reforms: How Gerhard Schröder overcame the "blocked republic". ACES Cases No. 2008.3

This essay will show that the Schröder-led government managed to break the political gridlock and introduce the Agenda 2010 because key institutional structures of Germany‟s political economy had lost their obstructive powers. In other words, the formerly semi-sovereign state had reclaimed its sovereignty. To understand how this happened, Peter Katzenstein's concept of the semi-sovereign state is first explored as a framework through which to analyze economic policy continuity and change. Within this framework, the causes for constant reform inertia between 1982 and 2002, in spite of varying political constellations and changes in the country‟s economic structure, are then discussed. This analysis will demonstrate that the Agenda 2010 reforms are predominantly a result of underlying incremental change in the political economy and its effect on the political decision-making process. Finally, the findings of this analysis are summarized and discussed with the aim of better understanding the economic policies of the current grand coalition government of the CDU/CSU and the SPD government under Chancellor Angela Merkel.