Capitalism without Capitalists? A Bottom-Up View of Industrial Transformation in East Germany. CES Germany & Europe Working Papers, No. 00.1, 1999

Research on the industrial transition in East Germany and its outcomes has long focused on the strategy of the Treuhand­ anstalt (IHA). According to institutionalists, David Stark and Lazlo Brust!: (1998), the powerful position of the German privatization agency was not only a result of German unification but also a function of a pathway rooted in the institutional peculiarities of the East German economy before 1989. This paper shows that neither a simple top-down perspective nor the pathway approach, as Stark and Brust!: suggested, are adequate for explaining the internal dynamic of enterprise transformation as well as the outcomes of this process. First of all, the dissolution of the former organizational structures and hierarchies was less coordinated by the 1HA than is often assumed. Often Kombinates fell apart more quickly from below than they could be dismantled from above since enterprises or their units chose the exit­ option and had good reasons to do so. Secondly, although the privatization by the 1HA resulted in the clear dominance of Western investors, the new ownership structure of East German industry as a whole could be characterized as a "capitalism without (East German) capitalists." In fact, what exists in East Germany is rather a kind of "small business capitalism" (KleinbetriebsknpitalifmllS) in which small-and medium-sized producers dominate the landscape. Finally, there was no single starting point in 1989. Two different industrial orders shaped the industrial history of the East German regions which were not destroyed between 1945-89, but rather transformed into the state socialist production system. It can be shown that these older historical patterns are relevant for transition and their outcomes as well.

The Composition and Drivers of Energy Prices and Costs in Energy-Intensive Industries: The Case of Ceramics, Glass and Chemicals. CEPS Special Report No. 85, 27 March 2014

In May 2013, the European Commission received a mandate from the European Council to “to present an analysis of the composition and drivers of energy prices and costs in Member States, with a particular focus on the impact on households, SMEs and energy intensive industries, and looking more widely at the EU's competitiveness vis-à-vis its global economic counterparts”. Following such mandate and in view of the preparation by the Commission of a Communication and a Staff Working Document, DG Enterprise and Industry commissioned CEPS to carry out a set of studies aimed at providing well-grounded evidence about the evolution and composition of energy prices and costs at plant level within individual industry sectors. A team of CEPS researchers conducted the research, led by Christian Egenhofer and Lorna Schrefler. Vasileios Rizos served as Project Coordinator. Other CEPS researchers contributing to the project included: Fabio Genoese, Andrea Renda, Andrei Marcu, Julian Wieczorkiewicz, Susanna Roth, Federico Infelise, Giacomo Luchetta, Lorenzo Colantoni, Wijnand Stoefs, Jacopo Timini and Felice Simonelli. In addition to an introductory report entitled “About the Study and Cross-Sectoral Analysis”, CEPS prepared five sectoral case studies: two on ceramics (wall and floor tiles and bricks and roof tiles), two on chemicals (ammonia and chlorine) and one on flat glass. Each of these six studies has been consolidated in this single volume for free downloading on the CEPS website. The specific objective was to complement information already available at macro level with a bottom-up perspective on the operating conditions that industry stakeholders need to deal with, in terms of energy prices and costs. The approach chosen was based on case studies for a selected set (sub-)sectors amongst energy-intensive industries. A standard questionnaire was circulated and respondents were sampled according to specified criteria. Data and information collected were finally presented in a structured format in order to guarantee comparability of results between the different (sub-)sectors analysed. The complete set of files can also be downloaded from the European Commission’s website: http://ec.europa.eu/enterprise/newsroom/cf/itemdetail.cfm?item_id=7238&lang=en&title=Study-on-composition-and-drivers-of-energy-prices-and-costs-in-energy-intnsive-industries The results of the studies were presented at a CEPS Conference held on February 26th along with additional evidence from other similar studies. The presentations can be downloaded at: http://www.ceps.eu/event/level-and-drivers-eu-energy-prices-energy-inten...

Doha/COP 18: gateway to a new climate change agreement. CEPS Commentary, 13 December 2012

Drawing on his recent experience in the climate negotiations in Doha as an advisor and negotiator on a wide variety of issues, Andrei Marcu offers his assessment of the progress achieved in the two weeks of intensive talks. In spite of modest results, he describes the talks as an important and necessary step in the revolution, first ignited at the Montreal negotiations in 2005, that rejected the top-down Kyoto Protocol model in favour of a bottom-up climate change regime. In his view, the decisions taken in Doha enable the start of a new negotiating process aimed at delivering a new global climate agreement.

Europe’s most wanted? Recalibrating Trust in the European Arrest Warrant System. CEPS Paper Liberty and Security in Europe 55/21 March 2013

This paper assesses the uses and misuses in the application of the European Arrest Warrant (EAW) system in the European Union. It examines the main quantitative results of this extradition system achieved between 2005 and 2011 on the basis of the existing statistical knowledge on its implementation at EU official levels. The EAW has been anchored in a high level of ‘mutual trust’ between the participating states’ criminal justice regimes and authorities. This reciprocal confidence, however, has been subject to an increasing number of challenges resulting from its practical application, presenting a dual conundrum: 1. Principle of proportionality: Who are the competent judicial authorities cooperating with each other and ensuring that there are sufficient impartial controls over the necessity and proportionality of the decisions on the issuing and execution of EAWs? 2. Principle of division of powers: How can criminal justice authorities be expected to handle different criminal judicial traditions in what is supposed to constitute a ‘serious’ or ‘minor’ crime in their respective legal settings and ‘who’ is ultimately to determine (divorced from political considerations) when is it duly justified to make the EAW system operational? It is argued that the next generation of the EU’s criminal justice cooperation and the EAW need to recognise and acknowledge that the mutual trust premise upon which the European system has been built so far is no longer viable without devising new EU policy stakeholders’ structures and evaluation mechanisms. These should allow for the recalibration of mutual trust and mistrust in EU justice systems in light of the experiences of the criminal justice actors and practitioners having a stake in putting the EAW into daily effect. Such a ‘bottom-up approach’ should be backed up with the best impartial and objective evaluation, an improved system of statistical collection and an independent qualitative assessment of its implementation. This should be placed as the central axis of a renewed EAW framework which should seek to better ensure the accountability, impartial (EU-led) scrutiny and transparency of member states’ application of the EAW in light of the general principles and fundamental rights constituting the foundations of the European system of criminal justice cooperation.

The European Citizens‘ Initiative – Chances, Constraints and Limits. IHS Political Science Series No. 134, April 2013

In order to celebrate the 20th anniversary of the establishment of European Union citizenship under the Maastricht Treaty in 1993, the year 2013 has been designated by the European Commission as the ‘European Year of Citizens’. The European Citizen’s Initiative (ECI) – labelled by the Commission as a ‘direct gateway through which citizens can make their voices heard in Brussels’ - may emerge in the European awareness as a new appealing platform for policy-shaping and communication. The ECI, through its transnational vox civilis character, figures among the most important novelties in the Lisbon Treaty and in the long run may facilitate and accelerate the bottom-up building of a European demos. The question is, however, whether the mechanism of pan-European signature collection is strong enough to face the democratic challenges present in the EU, especially during the ongoing financial crisis.

Collateral and Credit Rationing. The role of collateral in explaining and remediating the limited flow of credit to households and SMEs. ECRI Policy Brief No. 7, February 2014

European-wide data concerning both companies and households indicate that the credit rationing phenomenon, which has been predicted by theory, does in fact occur to a significant degree in the European credit market. Among SMEs, micro companies are most vulnerable and the current economic crisis has only made these concerns more pressing. Top-down use of the monetary transmission mechanism alone is insufficient to counter the problem. The other solution consists of a bottom-up, microeconomic stimulation of lending transactions, by focusing on collateral and guarantees. The data confirm the high importance that lenders – especially individual households and micro companies – attach to collateral and guarantees when making their lending decisions. As a consequence, we would argue that those parts of the law governing security interests and guarantees should be one of the primary targets for government policy aimed at improving credit flows, especially in avoiding a conflict between consumer protection measures and laws on surety and guarantees. This policy brief firstly aims to give an overview of the problem of credit rationing and to show that low-income households and SMEs are most concerned by the phenomenon. Focusing solely on loans as a way of financing and on the issues related to access to finance by micro and small companies as well households, it then sketches possible solutions focused on guarantees. This paper brings together data from the Eurosystem Household Finance and Consumption survey (HFCS), Eurostat, and both the latest wave of the extended biennial EC/ECB Survey on the access to finance of SMEs (EC/ECB SAFE 2013) and the latest wave of the smaller semi-annual ECB SAFE Survey, covering the period between October 2012 and March 2013.

Any changes? The future agenda of Sweden's security policy. OSW Commentary No. 126, 28.01.2014

Sweden’s annual security and defence conference, which this year focused on the future of the country’s security policy, was held in Sälen on 12-14 January. It was attended by almost all the leaders of Sweden’s ruling and opposition parties. The discussions have revealed whether and how the mindset of the Swedish elite has changed following the heated debates on defence issues in 2013. The opposition parties (Social Democrats, the Green Party, and the Left Party), which are likely to form a coalition government after the election to the Swedish parliament in September 2014, were given the opportunity to present their own priorities. The discussions have brought to the surface conflicting perceptions within the political elite concerning the threats and challenges to Swedish security, and divergent positions on the future direction of the country’s security and defence policy. It is highly likely that, due to a coalition compromise, the current course of Sweden’s security policy (namely, a policy of non-alignment along with close co-operation with NATO) will be maintained following the parliamentary election, albeit with new “leftist” influences (a greater involvement in the United Nations). Big changes that could lead to a significant strengthening of Sweden’s defence capabilities, or a decision on NATO membership, are not likely. Paradoxically, polls suggest that in the long run a more radical change in Stockholm’s security policy may be shaped by a gradual, bottom-up evolution of public opinion on the issue.

Towards a New (European Research) Deal: The Case for Enhanced Fiscal Policy Coordination on Research and Innovation. Bruges European Economic Policy (BEEP) Briefing 20/2008

The paper reviews the evolution of research and innovation in the EU and assesses how current policies and programmes have influenced the development of Europe's research landscape. Based on existing literature, evaluation reports and practice, the paper critically examines the effectiveness of current European research funding instruments in a context of open innovation and in the presence of global spillovers. It therefore develops a subsidiarity test to assess whether current rationales still prove sufficient to justify policy intervention in this area. The paper sheds light on how to improve the effectiveness of EU action by enriching it by the use of coordinated fiscal policy for research funding. This will constitute an incentive to genuine bottom-up research, development and innovation (R&D&I) and a stimulus to local investments in innovation. The paper also assesses the potentials of a reinforced open method of coordination as well as a review of state aid law in the field of research funding in the EU.

Democracy Promotion and the EU, US Formulas: Photo Opportunities or Potential. Jean Monnet/Robert Schuman Paper Series Vol. 14 No. 5, May 2014

Why do we think more of the United States (US) than the European Union (EU) in discussing Afghani or Iraqi democratization, and EU more than US when it is East European? Should not democratization be the same? A comparative study asks what democracy has historically meant in the two regions, how democratization has been spelled out, why instruments utilized differ, and democracy within global leadership contexts. Neither treats democracy as a vital interest, but differences abound: (a) While the US shifted from relative bottom-up to top-down democracy, the EU added bottom-up to its top-down approach; (b) the US interprets democracy as the ends of other policy interests, the EU treats it as the means to other goals; and (c) flexible US instruments contrast with rigid EU counterparts. Among the implications: (a) the 4-stage US approach reaches globally wider than EU’s multi-dimensional counterpart, but EU’s regional approach sinks deeper than the US’s; (b) human rights find better EU than US anchors; (c) whereas the US approach makes intergovernmental actions the sine qua non of democratization, EU’s intergovernmental, transnational, and supranational admixture promotes quid pro quo dynamics and incremental growth; and (d) competitive democratization patterns creates lock-ins for both recipient and supplier countries.

Report on democracy assistance from the European Union to the Middle East and North Africa. EUSpring Report, 18 May 2016

Since the Arab uprisings of 2011, European Union (EU) assistance has nominally targeted more resources to supporting democracy movements in the Middle East and North Africa (MENA) region. The EU has better equipped itself institutionally, financially and conceptually, by strengthening its bottom up grassroots approach to democracy support; resources earmarked for supporting civil society have been increased, the budget for the European Instrument for Democracy and Human Rights (EIDHR) has been beefed up, and the strengthened EU Delegations have be come more empowered to reach out to groups at the local grass roots level behind democracy activities; The European Endowment for Democracy (EED) was created with the mandate to support individuals and organizations in neighbouring countries that work for democracy. Whether this translates into a more effective strategy for democracy support, however, remains to be seen. In this report, Rosa Balfour, Francesca Fabbri and Richard Youngs present a detailed overview of the support given to civil society in the MENA region by the EU, with a special focus on the various financial instruments used.