How much does EU citizenship cost? The Maltese citizenship-for-sale affair: A breakthrough for sincere cooperation in citizenship of the union? CEPS Liberty and Security in Europe No. 64, April/2014

How much does European citizenship cost in the EU? This was the question that has raised so much controversy over the Maltese citizenship-for-sale programme. The outright selling of Maltese nationality to rich foreigners led to unprecedented responses by the European Parliament and European Commission. This paper examines the affair and its relevance for current and future configurations of citizenship of the EU. It studies the extent to which member states are still free to lay down the grounds for the acquisition and loss of nationality without any EU supervision and accountability. It provides a comparative overview of member state schemes and the exact price for buying citizenship and a residency permit in the EU. It is argued that the EU’s intervention on the Maltese citizenship-for-sale affair constitutes a legal precedent for assessing the lawfulness of passport-for-sale or golden migration programmes in other EU member states. The affair has also revealed the increasing relevance of a set of European and international legal principles limiting member states’ discretion over citizenship matters and providing a supranational constellation of accountability venues scrutinising the impact of their decisions over citizenship of the Union. The Maltese citizenship-for-sale affair has placed at the forefront the EU general principle of sincere cooperation in nationality matters. Member states’ actions in the citizenship domain cannot negatively affect in substance the concept and freedoms of European citizenship. That notwithstanding, the European institutions’ insistence on the need for Maltese nationality law to require a ‘genuine link’ in the form of an effective residence criteria for any rich applicants to benefit from the fast-track naturalisation poses a fundamental dilemma from the angle of Union citizenship: what is this genuine link really about? And what is precisely ‘habitual’, ‘effective’ or ‘functional’ residence? It is argued that by supporting the ‘real connections’ as the most relevant standard, the European institutions may be paradoxically fuelling nationalistic misuses by member states of the ‘genuine link’ as a way to justify restrictive integration policies on the acquisition of nationality.

Holes in the skies over NATO's Central European member states. OSW Commentary No. 119, 22.10.2013

Over the past few months, four Central European states have made decisions which will determine the shape of their air forces over the next decade. On 11 October, Romania signed a contract under which it will buy twelve used US F-16A/B multi-role fighter aircraft from Portugal. In August, Slovakia signed contracts with Russia’s MiG for repairs and the limited modernisation of its twelve MiG-29 fighter aircraft currently in service. The Czech Republic entered into a preliminary agreement in July with Sweden on extending the lease of fourteen JAS-39 Gripen multi-role fighter aircraft (the new Czech government will hammer out the details following the parliamentary election). Bulgaria, which has been facing financial problems and political instability, in June postponed the purchase of new (non-Soviet) combat aircraft at least until the end of this year. If Sofia decides to buy any within the next few years, these will be not more than twelve relatively old and worn-out machines (most likely F-16A/B from Portuguese or Dutch army surplus). Given the fact that Hungary in 2012 made the same decision regarding its fourteen Gripen aircraft as the Czech Republic, there are good grounds to claim that the capabilities Central European NATO member states have to take action in airspace are durably limited. The region’s saturation with combat aircraft is the lowest when compared to the entire continent (with the exception of the Baltic states). Furthermore, the machines to be used in the coming decade will be the oldest and the least advanced technologically (all of them belong to the so-called “fourth generation”, the roots of which date back to the 1970s). The problem with gaining full interoperability within NATO has not been resolved in its Central European member states. By modernising its MiG-29 aircraft, Slovakia is to say the least postponing the achievement of interoperability once again. Bulgaria will gain interoperability by buying any Western combat aircraft. However, it is very unlikely to introduce new machines into service earlier than at the end of the present decade. Since the introduction of new fifth generation multi-role combat aircraft or transitional 4+ generation machines in the region’s air forces is unrealistic, the defence of the airspace of NATO member states in Central Europe can be termed an ever more porous sky.

The current state, problems and future of Germany's air and missile defence. OSW Commentary No. 105, 2013-04-10

From German point of view, air and missile defence systems are of little relevance for the protection of Germany’s territory. However, they are seen as important for conducting ‘out of area’ operations, providing military assistance to allies, and for Germany’s political and military- technical position within NATO. The Bundeswehr has been modernising its air and missile defence systems for several years. The modernisation of very short-range and short-range systems is slightly behind schedule. Plans to modernise the medium-range air and missile defence have been encountering problems since the United States decided to refrain from buying the jointly developed MEADS system. Therefore Germany is currently considering using the results of the MEADS program in the development of its own medium-range air and missile defence system, possibly in co-operation with France and Italy. Such a system would ensure protection against short-range ballistic missiles (up to 1000 km) and might become part of NATO’s ballistic missile defence, replacing the Patriot batteries which Germany is currently operating. Furthermore, Germany could expand its involvement in NATO’s ballistic missile defence in the future by buying or developing system to intercept medium- and intermediate- range ballistic missiles (up to 3000 km and 5500 km). The final decision on this matter has not yet been taken, and will be left for the successive governments of Germany to resolve. It will depend on a number of political, military and financial factors.

The Market for Tractors in the EU: Price Differences and Convergence. Factor Markets Working Documents No. 35, February 2013

This study evaluates the degree of segmentation of the market for agricultural machinery and equipment in the EU. We focus on agricultural tractors, the most common and biggest investment in machinery and equipment in the agricultural sector. By using country price data for individual tractor models, we test the law of one price, i.e. the existence of a common price for tractors across EU member states. We find that significant price differences exist, yet unlike most other studies we find that large price deviations are penalised within a short time. The study also shows that transport costs are an important source of price differences, as domestic production leads to lower prices on the domestic market and as price convergence is negatively correlated with distance. Finally, price differences should not solely be understood from a geographical perspective, as evidence supports the idea that farmers’ buying power is significant in explaining price differences within countries.

Time for the ECB to bite the bullet. CEPS Commentary, 19 January 2015

This Commentary summarises the main reasons why the ECB can no longer delay launching a massive bond-buying programme, also including sovereigns of eurozone member countries, and why such interventions will indeed be effective in raising inflation, thus restoring the ECB’s credibility and spurring economic activity. A credible programme must continue either until an explicit inflation target has been achieved or the ECB balance sheet has reached the €2 trillion target already announced by the ECB’s Governing Council. Regardless of how such interventions will be undertaken, they will reduce interest-rate spreads between eurozone markets, but it is nevertheless important that the ECB designs its operations so as to avoid any implication of direct support or deficit financing facilitation for the eurozone’s most indebted countries. Finally, some kind of guarantee against first losses by the ECB on its sovereign bonds may be appropriate, while entrusting open market operations to each national central bank for their own sovereigns could threaten the very survival of monetary union.

Flashlight Europe N°5–June 2015. OMT is Monetary Policy and Not Economic Policy

In January 2014, for the first time in its history, the German Federal Constitutional Court submitted several questions to the European Court of Justice (ECJ) in Luxembourg and asked for a preliminary ruling. The questions had arisen within the framework of the OMT case, and the issue was whether or not the OMT (“outright monetary transactions”) programme announced by Mario Draghi, the head of the European Central Bank (ECB), is in compliance with the law of the European Union. The OMT programme (which has be-come well-known because Draghi said “what-ever it takes to preserve the euro” when he unveiled it) plays an important role in the stabilization of the euro area. It means that the European System of Central Banks will be empowered to engage in unlimited buying of government bonds issued by certain Member States if and as long as these Member States are simultaneously taking part in a European rescue or reform programme (under the EFSF ot the ESM). Hitherto the OMT has not been implemented. Nonetheless a suit contesting its legality was filed with the Federal Constitutional Court. The European Court of Justice now had to decide whether or not the activities of the ECB were in compliance with European law. How-ever, the ECJ had to take into account the prior assessment of the Federal Constitutional Court. In its submission the Federal Constitutional Court made it quite clear that it was of the opinion that there has been a violation of European law. But at the same time it did not exclude the possibility that the ECJ set up legal conditions for OMT in order to avoid a violation of European law.