Brazilian perspectives on the changing global order and security challenges. CEPS Working Document No. 376, February 2013

This study analyses the current picture and prospects for EU–Brazil relations in the political and security arenas. As actors experiencing relevant changes, albeit in different directions in their respective international status quo, the EU and Brazil have found some common ground for convergence at the macro level on some structural issues, such as the normative framework of a changing global order, the striving for a multipolar world and the relevance and desirability of multilateralism. At the same time, it is argued that they differ significantly as to the strategies pursued in the attainment of those shared interests, resulting in competing, or eventually divergent, policy preferences when addressing specific issues and developments at the international level, limiting the prospects for a deep mutual commitment and engagement in political and security dynamics at the global level.

The changing landscape of financial markets in Europe, the United States and Japan. Bruegel Working Paper 2013/02, 18 March 2013

We compare the structure of the financial sectors of the EU27, Japan and the United States, looking at a set of 23 indicators. We find a large variation within the European Union in the structure of the financial sector. Using principal components analysis, we identify robust groups of EU countries. One group consists of the eastern European members that entered the EU more recently.These have substantially smaller financial sectors than the old member states. A second group can be classified as market-based (MBEU) and the third group is more bank-based (BBEU). We compare US, MBEU, BBEU, Eastern EU and Japan with the following main results. First, the groups within Europe are geographically related. Second, in many indicators, MBEU countries are closer to the (market-based) US, while BBEU countries more closely resemble Japan. Paradoxically, however, market-based EU countries also have large banking sectors. Banks in market-based countries have larger cross-border assets and liabilities, and derive a larger fraction of their income from fees, rather than interest income, than banks in bank-based countries. Finally, for most indicators, the ordering of groups of countries is quite stable over time, but while the crisis has had no impact on the relative ordering of the groups, it has slightly widened the gap between the US and all EU regions insome respects. We also find that during the crisis, substitution between market-based and bank-based sources of finance occurred in the US, and to a lesser extent in MBEU and BBEU countries.

spotlight europe #2013/04, May 2013: The Changing Face of North Africa. An Opportunity for and with Europe.

North Africa is changing fast, and its youthful societies look back with pride at their recent uprisings. However, they are also getting frustrated by the fact that the economic outlook is not improving. Europe’s role in the strategically important southern Mediterranean area needs to be realigned in order to promote the development of democracy, employment opportunities, and security. There is a great deal of potential for cooperation with Morocco, Algeria, Tunisia, Libya and Egypt.