The future of the area of freedom, security and justice. Addressing mobility, protection and effectiveness in the long run. EPC Discussion Paper, 23 January 2014

With the Stockholm Programme coming to an end in 2014, the “Brussels Community” is increasing agitated with a recurring question: what will replace the Stockholm Programme? Paradoxically, this uncertainty is fuelled by the existence of a new and clear Treaty provision – Article 68 TFEU – which states “The European Council shall define the strategic guidelines for legislative and operational planning within the area of freedom, security and justice”. Clear in its wording, this provision may lead to different understandings and unclear implications in practice. In order to provide more clarity, the European Policy Centre (EPC) set up a Task Force to reflect on the impact of this provision and more generally the future of the area of freedom, security and justice after 2014. Results of this process are reflected in this discussion paper which addresses the process and content regarding the definition of future strategic guidelines.

Brexit will deepen the fault lines within the EU over mobility. CEPS Commentary, 12 July 2016

Much has been made of the divide that opened up in 2015 between eastern and western member states as a result of acrimonious discussions on how to handle the refugee crisis and distribute asylum applicants across the EU. Against the prevailing political sentiment in certain member state capitals, Germany and France pushed through a plan devised by the European Commission to relocate 120,000 refugees, by a qualified majority vote in the Council. Rather than creating an east/west divide, however, the vote split the group of (relatively) new Central and Eastern European countries (CEECs) of the EU into two factions: Romania, Czechia, Slovakia and Hungary voted against the plan, whereas several other CEECs, namely Poland, Bulgaria and the Baltic states, joined the controversial motion on the side of the other (northern, southern and western) member states. Finland abstained. Few member states have shifted their positions in the meantime. If anything, in fact, they have coalesced among the Visegrad 4, following a change of government in Poland; and they have hardened, as a result of new proposals by the Commission to fine member states that refuse to accept refugees. With Hungary’s referendum on the Commission’s relocation scheme scheduled for October 2nd, tensions are set to intensify even further.

Europe's single supervisory mechanism and the long journey towards banking union. Bruegel Policy Contribution 2012/16, 4 October 2012

Problems in the banking system are at the core of the current crisis. The establishment of a banking union is a necessary (though not sufficient) condition for eventual crisis resolution that respects the integrity of the euro. The European Commission’s proposal for the establishment of a Single Supervisory Mechanism and related reform of the European Banking Authority (EBA) do not and cannot create a fully-fledged banking union, but represent a broadly adequate step on the basis of the leaders’ declaration of 29 June 2012 and of the decision to use Article 127(6) of the treaty as legal basis. The proposal rightly endows the European Central Bank (ECB) with broad authority over banks within the supervisory mechanism’s geographical perimeter; however, the status of non-euro area member states willing to participate in this mechanism, and the governance and decision-making processes of the ECB in this respect, call for further elaboration. Further adjustments are also desirable in the proposed reform of the EBA, even though they must probably retain a stopgap character pending the more substantial review planned in 2014.

The known unknowns and the unknown unknowns of the EMU. Bruegel Policy Contribution 2012/18, October 2012

Extensive prior research on the economics of European monetary union highlighted some potential risks (the known unknowns) but overlooked others (the unknown unknowns). Asymmetries among participating countries, the potentially destabilising character of a one-size-fits all monetary policy, the weakness of adjustment mechanisms, the lack of incentives for fiscal discipline, the possibility of sovereign solvency crises and their adverse consequences were all known and understood. But policymakers often relied on a complacent reading of the evidence. • The potential for financial disruption was vastly underestimated. Economists generally did not consider, or underestimated, the possibility of balance of payment crises such as those experienced by southern European countries, or the risk of a feedback loop between banks and sovereigns. • Remedying EMU’s systemic deficiencies is on the policy agenda. Banking union would go a long way towards addressing the fault lines. The urgent question for economists is if it is going to be enough and, if not, what else should complement the ‘bare-bones’ EMU of Maastricht.

Justice and Home Affairs databases and a Smart Borders System at EU external borders. An evaluation of current and forthcoming proposals. CEPS Paper in Liberty and Security No. 52/December 2012

This study examines current and forthcoming measures related to the exchange of data and information in EU Justice and Home Affairs policies, with a focus on the ‘smart borders’ initiative. It argues that there is no reversibility in the growing reliance on such schemes and asks whether current and forthcoming proposals are necessary and original. It outlines the main challenges raised by the proposals, including issues related to the right to data protection, but also to privacy and non-discrimination.