Enlargement Agenda - Special focus on Macedonia, Serbia and Kosovo. CEPS Commentary, 27 March 2013

This CEPS Commentary notes that this is a critical time for the EU’s enlargement agenda with competing interests at play – between those who suggest that further enlargement is a heavy burden that the EU can ill afford in the current economic climate, and others who continue to believe that extending the frontiers of peace and security to include the Balkan countries will make the EU a safer place. To counter the naysayers, Erwan Fouéré underlines the importance for the EU to show that its current strategy continues to deliver dividends, as it certainly does in the case of Kosovo and Serbia. He further advises the EU to be ready to adapt its strategy where necessary, as in the case of Macedonia, by using whatever leverage it has in a more direct and consistent way and ensuring that its policy objectives and strategy in this area are based on the progress assessment narrative and not the other way around. In his view, opening accession negotiations with Macedonia will be the only way to prevent the country from sinking into further political instability.

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.

Ukrainians' EU migration prospects. OSW Commentary No. 128, 10.03.2014.

The political crisis in Ukraine, particularly the bloodshed seen on 18–20 February and the subsequent Russian intervention in Crimea, has sparked fears of another possible wave of immigrants heading to the EU. However, the country was partially politically stabilised (at least in its central and western parts), and this has made the scenario of a mass migration of people from Ukraine rather unlikely. If there is no civil war in Ukraine, any further development of the political situation in Ukraine may have only an indirect impact on the actual migration. Should the political instability continue, the Ukrainian economy remain in recession while jobs are available for Ukrainian immigrants in the EU, then an increase in the migration of Ukrainian citizens to the EU, including Poland, would be possible. In the short term there may be two characteristic groups of immigrants: (1) young people who will attempt to leave Ukraine for good due to the lack of job opportunities; (2) circulating migrants, mainly from western Ukraine, who will be looking for temporary jobs. Only if the economic downturn trend and political turmoil in Ukraine continues for a longer time, will settlement migration increase.

Energy across the Mediterranean: a call for realism. Bruegel Policy Brief ISSUE 2016/03 APRIL 2016

Political instability in the southern Mediterranean countries have highlighted the unsustainability of their economic models. Widespread economic discontent, and in particular very high youth unemployment, underpinned the Arab Spring uprisings. As the refugee crisis shows, this is also Europe’s problem and Euro-Mediterranean economic cooperation needs to be reviewed. Energy is a key part of the cooperation framework.

Kazakhstan: the regional success story; Tajikistan: a trial period; Uzbekistan: the major source of instability in Central Asia? OSW Study 15/2004

Kazakhstan: Kazakhstan can boast economic development like no other country in Central Asia. In contrast to other countries of the region, which have rich natural resources, Kazakhstan has managed to use its economic potential in a way that yields concrete benefits now and, at the same time, creates prospects for further sustainable economic growth. Tajikistan: Tajikistan in its present state has been built on the civil war experiences and provisions of the peace accords signed in 1997. These have had a great impact on the present form of the state, its political scene and power mechanisms. President Emomali Rakhmonov is the central figure in the state. The political system, which he has cocreated, is based on - unique in this region - political pluralism (the existence of the Islamic party), decentralisation (far-going independence of the regions and relatively limited potential of the central structures) and compromise as the basic way of resolving conflicts. Such a system has so far guaranteed stabilisation and normalisation of the country. Uzbekistan: With its geographic location, potential, ambitions and political priorities, Uzbekistan could play a leading role in Central Asia. The international community has perceived the country as the pillar of stability in the region. This perception was further reinforced after 11th September 2001 and was certainly among the factors that inspired the United States to start closer political and military cooperation with Tashkent. The administration in Washington had expected that closer contacts might galvanise political, economic and social change in Uzbekistan, thus reinforcing positive trends in other countries of the region as well. But the relations between Washington and Tashkent are in crisis (which the United States will certainly try to overcome), and we have seen rapprochement between Uzbekistan and Russia and China.

Saving the Banks: The Political Economy of Bailouts. CES Papers - Open Forum #8, 2012

How much leeway did governments have in designing bank bailouts and deciding on the height of intervention during the 2007-2009 financial crisis? This paper analyzes comparatively what explains government responses to banking crises. Why does the type of intervention during financial crises vary to such a great extent across countries? By analyzing the variety of bailouts in Europe and North America, we will show that the strategies governments use to cope with the instability of financial markets does not depend on economic conditions alone. Rather, they take root in the institutional and political setting of each country and vary in particular according to the different types of business-government relations banks were able to entertain with public decision-makers. Still, “crony capitalism” accounts overstate the role of bank lobbying. With four case studies of the Irish, Danish, British and French bank bailout, we show that countries with close one-on-one relationships between policy-makers and bank management tended to develop unbalanced bailout packages, while countries where banks have strong interbank ties and collective negotiation capacity were able to develop solutions with a greater burden sharing from private institutions.