Is the EU’s Governance ‘Good’?: An assessment of EU governance in its partnership with ACP States. IES WORKING PAPER 1/2010

This paper examines both the processes and outcomes of governance in the context of the EU’s relationship with ACP States within the period of the Cotonou Agreement (CA). It discusses and assesses a variety of governance mechanisms, including the European Commission’s use of the governance concept, EPAs, manifestations of partner preferences, the EDF, the revision of the CA, and Fisheries Partnership Agreements. Specific examples of the wielding of each mechanism are assessed based upon two criteria: a) the extent to which the wielding of the mechanism by the EU is a manifestation of “good governance”, and b) the extent to which the EU’s wielding of the mechanism has resulted, or is likely to result, in the sustainable development of and reduction of poverty in ACP countries. The examples are chosen to illustrate contradictions between rhetoric and practice and the consequential negative (actual and potential) impact upon development in ACP States. The final section offers suggestions for improving the EU’s governance processes and their outcomes for development.

Future of skills in Europe-Convergence or polarisation? CEPS Working Document No. 390, 27 February 2014

In this Working Paper, based on nearly 20 papers produced by the Centre for European Policy Studies, Slovak Governance Institute and the Conference Board Europe, we examine whether the current trends in the areas of education and skills are pushing the European Union, towards convergence or polarisation. We cover a wide range of questions related to this main issue. No easy answers, but several cross-cutting messages emerged from the research. We demonstrated that there is increasing complexity in what a ‘low-skilled’ person is and how well (or poorly) s/he fares in the labour market. There are undoubtedly powerful forces pushing for more polarisation, particularly in the labour market. Our research confirmed that early childhood education plays an important role, and it also appears to be increasingly uncontested as a policy prescription. However, the other frequently emphasised remedy to inequality – less selection in secondary education, particularly later division of children into separate tracks – is more problematic. Its effectiveness depends on the country in question and the target group, while education systems are extremely difficult to shift even on a long-term basis. A different, more-nuanced type of warning to policy-makers is delivered in our research on returns to higher education by field of study, which showed hidden rationality in how students choose their major.

Malta Transformed by Multi-level Governance: More Than Just an Outcome of Europeanisation. Occasional Paper 03/2014

Malta has been transformed in many ways with and by EU Membership. This paper goes beyond the more obvious impacts of ‘Europeanisation’ and instead reviews the implications of an explosion of multi-level governance on doing politics in Malta. While for most of its recent political history, there has been a clawing back of power by the central government – as when the Gozo Civic Council (1960-1973), an early foray into regional government, was “unceremoniously dissolved” in 1973 – this trend was reversed with the setting up of local councils as from 1994, an advisory Malta Council for Economic and Social Development (MCESD) in 2001, and then EU membership in 2004. These events have created a profligacy of decision-making tiers and multiplied the tensions that exist between different levels of governance in this small archipelago state. Malta has never experienced such pluralism before. In fact, since 1966, only two political parties have been represented in the national legislature and, therefore, there has been no division of powers between the executive and the national parliament. This paper reviews the implications of these developments on two hot political issues in 2014: the International Investor Programme (IIP) proposed by the Labour Government in its 2014 Budget; and the location of a Liquid Natural Gas (LNG)-storage vessel inside Marsaxlokk harbour.

The role of politicians in inciting financial markets to attack the eurozone. EuropEos Commentary No. 4, 21 June 2010

While acknowledging that the sustainability of sovereign debt is a serious issue that must be confronted, this EuropEos Commentary finds that financial markets have blown the problem completely out of proportion, leading to a full-scale confidence crisis. The authors present evidence suggesting that politicians’ public disagreements and careless statements at critical junctures may have added oil to incipient fire. By creating the impression that domestic political interests would take precedence over orderly management of the Greek debt crisis, they raised broader doubts about their ability to address fundamental economic divergences within the area, which are the real source of debt sustainability problems in the medium term.

Social Citizenship and Institution Building: EU-Enlargement and the Restructuring of Welfare States in East Central Europe. CES Germany & Europe Working Paper, No. 01.2, April 2001

With the EU-enlargement process well underway, this paper focuses on social citizenship as a conceptual frame for analyzing the restructuring of social institutions in applicant countries in East Central Europe. So far, comparative welfare state analysis has concentrated mainly on the developed economies of the OECD-countries; there is little systematic analytical work on the transitions in post-communist Europe. Theoretically, this paper builds on comparative welfare state analysis as well as on new institutionalism. The initial hypothesis is built on the assumption that emerging patterns of social support and social security diverge from the typology described in the comparative welfare state literature inasmuch as the transformation of postcommunist societies is distinctly different from the building of welfare states in Europe. The paper argues that institutionbuilding is shaped by and embedded in the process of European integration and part of governance in the EU. Anticipating full membership in the European Union, the applicant countries have to adapt to the rules and regulations of the EU, including the "social acquis." Therefore, framing becomes an important feature of institutional changes. The paper seeks to identify distinct patterns and problems of the institutionalization of social citizenship.

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.

The challenge of freedom in the Southeastern Europe. OSW Report, July 2015

Over the past few decades substantial progress has been achieved in the democratisation and modernisation of the countries of Southeastern Europe. The formal democratic institutions were introduced, a liberalisation of trade resulted in the reintegration of the region into the global economy and some of them successfully applied to join the EU and NATO. But the transformation process is far from over. In the past years the achievements of the political and economic transformation have been rolled back and the quality of governance has declined in many countries. To avoid a further deterioration of the situation in the region the new impulse for institutional transformation and a change of the development model are needed. This report is the outcome of a discussion held during the conference “The Freedom Challenge in Southeastern Europe – Implications for Poland”. This joint event was developed by the Centre for Eastern Studies and Ideas Lab – the President’s Expert Programme at the Chancellery of the President of the Republic of Poland. The chapters of the report reflect the main three subjects debated during the conference. In the first chapter Spasimir Domaradzki assesses the rule of law and its influence on the consolidation of democracy in the region. In the second chapter Marta Szpala focuses on economic development in Southeastern Europe. The third chapter is written by Adam Balcer and analyses the key instruments Russia is using to build influence in this region.

The Drivers of Current Account Surplus in Germany and the Politics of Rebalancing in the Eurozone. EU Centre, Singapore Working Paper No. 24, April 2015

Current account deficits have caught the public’s attention as they have contributed to the European debt crisis. However, surpluses also constitute an issue as a deficit in any country must be financed through a surplus in another country. In 2013, Germany, now the world’s largest surplus economy, registered a record high US$273 billion surplus. This paper looks at what accounts for Germany’s surplus, revealing that the major driving factors include strong global demand for quality German exports, domestic wage restraint, an undervalued single currency, high domestic savings rate and interest rate convergence in the euro area. This paper echoes the US Treasury’s view that a persistent German surplus makes it harder for the eurozone as a whole and the southern peripheral economies in particular to recover from the current financial crisis by imposing a Europe-wide “deflationary bias” through pushing up the exchange rate of the euro, exporting feeble German inflation and projecting its ultra-tight macroeconomic policies onto crisis economies. This paper contends that Germany’s trade surplus is likely to endure as Germany and other eurozone countries uphold diverging views on the nature of the surplus engage in a blame-game amidst a sluggish rebalancing process. Prizing the surplus as a reflection of hard work and economic competitiveness, German authorities urge their southern eurozone colleagues to undertake bold structural reforms to correct the imbalance, while the hand-tied governments in crisis-stricken economies call on Germany to do its “homework” by boosting German demands for European goods and services.