A captive island. Kaliningrad between Moscow and the EU. OSW Study 41/2012

The Kaliningrad region can be called a 'captive island', because of its specific geopolitical location - it is part of the Russian legal, political and economic space, yet it is geographically separated from the rest of the Russian Federation, and it is particularly open to co-operation with its neighbours in the European Union. Moscow is trying to compensate the region for its separation, offering it financial support and economic privileges.At the same time, it is sensitive to any potential challenges to Russia's territorial integrity - and the centre's desire for control over the region often limits the latter's potential for cooperation and internal development. This report presents the situation in the region, and is intended to help develop a model for its effective regional co-operation with its EU neighbours.

The Fate of Greece in a ‘Genuine Economic and Monetary Union’: Lessons from a small island state. CEPS Hi-Level Brief, 19 June 2015 Friday, 19 June 2015

As the Greek debt drama reaches another supposedly decision point, Daniel Gros urges creditors (and indeed all policy-makers) to think about the long term and poses one key question in this CEPS High-Level Brief: What can be gained by keeping Greece inside the euro area at “whatever it takes”? As he points out, the US, with its unified politics and its federal fiscal transfer system, is often taken as a model for the Eurozone, and it is thus instructive to consider the longer-term performance of an area of the US which has for years been kept afloat by massive transfers, and which is now experiencing a public debt crisis. The entity in question is Puerto Rico, which is an integral part of the US in all relevant economic dimensions (currency, economic policy, etc.). The dismal fiscal and economic performance of Puerto Rico carries two lessons: 1) Keeping Greece in the eurozone by increasing implicit subsidies in the form of debt forgiveness might create a low-growth equilibrium with increasing aid dependency. 2) It is wrong to assume that, further integration, including a fiscal and political union, would be sufficient to foster convergence, and prevent further problems of the type the EU is experiencing with Greece.