Breaking down the barriers to firm growth in Europe: The fourth EFIGE policy report. Bruegel Blueprint 18, 28 August 2012

Large firms contribute disproportionately to the economic performance of countries: they are more productive, pay higher wages, enjoy higher profits and are more successful in international markets. The differences between European countries in terms of the size of their firms are stark. Firms in Italy and Spain, for example, are on average 40 percent smaller than firms in Germany. The low average firm size translates into a chronic lack of large firms. In Italy and Spain, a mere 5 percent of manufacturing firms have more than 250 employees, compared to a much higher 11 percent in Germany. Understanding the roots of these differences is key to improving the economic performance of Europe’s lagging economies. So why is there so much variation in firm size in different European countries? What are the barriers that keep firms in some countries from growing? And which policies are likely to be most effective in breaking down those barriers? This policy report aims to answer these questions by developing a quantitative model of the seven European countries covered by the EFIGE survey (Austria, France, Germany, Hungary, Italy, Spain and the UK). The EFIGE survey asked 14,444 firms in those countries about their performance, their modes of internationalisation, their staffing decisions, their financing structure, and their competitive environment, among other topics.

Making or Breaking the Republic of Moldova? The Autonomy of Gagauzia. EDAP 02/2013

This article describes the process of self-determination and the creation of a territorial autonomy of the Gagauz people in the Republic of Moldova. It also analyses the situation in the autonomy after the change of government in Chisinau in 2009 and evaluates the current status of accommodation of the Gagauz’ interests in the country. Aspects of state-building and the influence of external actors are explored as well. Gagauzia (Gagauz Yeri) is one of the first post-Soviet autonomies. Since its establishment in 1994, no violent conflict has taken place there. However, the Gagauz language and culture remain relatively unprotected, and incentives as well as support for the integration of the Gagauz are low. The article outlines the potential for future disputes between the central government and local authorities, due to continuous attempts to limit Gagauzia’s self-governance and conflicting interpretations of how the autonomy should work. Furthermore, struggles between Gagauz political leaders and other local realities hamper the successful realization of Gagauz Yeri. With respect to Moldova’s efforts to resolve the Transnistrian conflict and to integrate with the European Union, compromises and cooperation through an ongoing dialogue between the centre and autonomy are clearly due. Resolving the remaining stumbling blocks could make Gagauzia a living, rather than symbolic autonomy.

Breaking the boundaries. The transformation of Central European gas markets. OSW Point of View Number 46, December 2014

According to the European Council decision of February 2011, the process of creating the European Union’s internal gas market should be completed by the end of 2014. Therefore, it is worth summarising the changes which have taken place in the gas markets of Central Europe so far. The past few years have seen not only a period of gradual ‘marketisation’ of the national gas sectors, but also the building of new gas infrastructure, a redrawing of the gas flow map, and changes in the ownership of the Central European gas companies. Another change in Central Europe is the fact that individual states and companies are moving away from their traditional focus on their national gas markets; instead, they are beginning to develop a variety of concepts for the regional integration of Central European markets. This publication attempts to grasp the main elements of the ongoing transformation of Central Europe’s gas markets, with particular emphasis on the situation in Poland, the Czech Republic, Slovakia and Hungary.

Ukraine, Russia and the EU. Breaking the deadlock in the Minsk process. CEPS Working Document No. 423 / June 2016

Although the Minsk process brought about a de-escalation of the conflict in Eastern Ukraine, not all of its 13 points have been implemented, including a ceasefire and withdrawal of heavy weaponry. In the absence of a military option, economic sanctions have become the core instrument of the EU and the US, to respond to Russia’s aggression. At the end of June 2016, when EU Heads of State and Government meet to discuss the extension of sanctions against Russia, they should bear in mind that Russia did not implement the commitments it took upon itself in the framework of the Minsk agreements. Given the persistent deadlock in the Ukraine crisis, the leaders of the EU ought to agree to prolong the sanctions against Russia, push for the renegotiation of the Minsk II agreement and widen the ‘Normandy format’ to include the US and bolster reforms in Ukraine.