Bosnia, Kosovo and the EU: Is Accession Possible without Full Sovereignty?

Bosnia and Kosovo are the only two members of the EU enlargement zone that have never tried to apply for EU membership, given that both are too far from complying with the required minimum standards. But besides lacking basic capacities, these two potential candidates share another common feature: both are limited, to different degrees, in their national sovereignty. This lack of sovereignty not only limits the capacity of the potential candidates to negotiate or to enter into agreements with the EU; it also undermines their readiness to undertake serious reforms. The EU tries to dodge the political blockades that are the root cause of the problem by focusing on the technical issues; this might provide a temporary relief but cannot substitute a realistic accession perspective, which is currently absent. However, without this perspective, the EU’s ‘normative power’ in these countries will continue to erode – which bears the risk that both Kosovo and Bosnia will, in the end, try to solve existing problems through unilateral measures, such as partition. Given its lack of ability to provide alternatives, the EU has to realistically consider such outcomes and think about the possible consequences.

The Monetary Policy of the European Central Bank (2002-2015). CEPS Special Report No. 109/May 2015

This paper examines the policies pursued by the European Central Bank (ECB) since the inception of the euro. The ECB was originally set up to pursue price stability, with an eye also to economic growth and financial stability as subsidiary goals, once the primary goal was secured. The application of a single monetary policy to a diverse economic area has entailed a pronounced pro-cyclicality in its real economic effects on the eurozone periphery. Later, monetary policy became the main policy instrument to tackle financial instability elicited by the failure of Lehman Brothers and the sovereign debt crisis in the eurozone. In the process, the ECB emerged as the lender of last resort in the sovereign debt markets of participating countries. Persistent economic depression and deflation eventually brought the ECB into the uncharted waters of unconventional policies. That the ECB could legally perform all of these tasks bears witness to the flexibility of the TFEU and its Statute, but its tools and operating procedures were stretched to their limit. In the end, the place of the ECB amongst EU policy-making institutions has been greatly enhanced, but has entailed repeated intrusions into the broader domain of economic policies – not least because of its market intervention policies – whose consequences have yet to be ascertained.

The Monetary Policy of the European Central Bank (2002-2015). Bruges European Economic Policy Briefings (BEEP) 35/2015.

This paper examines the policies pursued by the European Central Bank (ECB) since the inception of the euro. The ECB was originally set up to pursue price stability, with an eye also to economic growth and financial stability as subsidiary goals, once the primary goal was secured. The application of a single monetary policy to a diverse economic area has entailed a pronounced pro-cyclicality in its real economic effects on the eurozone periphery. Later, monetary policy became the main policy instrument to tackle financial instability elicited by the failure of Lehman Brothers and the sovereign debt crisis in the eurozone. In the process, the ECB emerged as the lender of last resort in the sovereign debt markets of participating countries. Persistent economic depression and deflation eventually brought the ECB into the uncharted waters of unconventional policies. That the ECB could legally perform all of these tasks bears witness to the flexibility of the TFEU and its Statute, but its tools and operating procedures were stretched to their limit. In the end, the place of the ECB amongst EU policy-making institutions has been greatly enhanced, but has entailed repeated intrusions into the broader domain of economic policies – not least because of its market intervention policies – whose consequences have yet to be ascertained.

Russia’s ‘Middle East’: the escalation of religious conflicts in the Northern Caucasus. OSW Commentary Number 207/04.04.2016

The eastern part of the Northern Caucasus (Dagestan, Chechnya and Ingushetia) is becoming an increasingly distinct region in cultural, civilisational and social terms when compared to the rest of the Russian Federation. The situation on the ground there bears greater resemblance to the Middle East than to Russia: Islam is the key factor organising socio-political life, and conflicts inside the Muslim community, often involving bloodshed, are the driving power of developments in the region. The conflict is between the two main branches of Islam in the Northern Caucasus: Sufism linked to the official clergy and government, and Salafism which is gaining more and more supporters among young people in the Caucasus. Tension, including clashes over mosques, attacks, mass detentions, etc. has been observed mainly in Dagestan and Ingushetia.