Banking Union: Ireland vs. Nevada, an illustration of the importance of an integrated banking system. CEPS Commentary, 18 October 2012

Despite their surprising similarities – in size and their housing booms – Ireland and the American state of Nevada sharply parted company when it came to who bore responsibility for bailing out their failed banks when the booms turned to bust. This latest Commentary by Daniel Gros vividly illustrates the importance of that difference and thus the shock-absorbing capacity of an integrated banking system and a banking union.

Factor Markets in Applied Equilibrium Models: The current state and planned extensions towards an improved presentation of factor markets in agriculture. Factor Markets Working Paper No. 23, February 2012

This paper describes how factor markets are presented in applied equilibrium models and how we plan to improve and to extend the presentation of factor markets in two specific models: MAGNET and ESIM. We do not argue that partial equilibrium models should become more ‘general’ in the sense of integrating all factor markets, but that the shift of agricultural income policies to decoupled payments linked to land in the EU necessitates the inclusion of land markets in policy-relevant modelling tools. To this end, this paper outlines options to integrate land markets in partial equilibrium models. A special feature of general equilibrium models is the inclusion of fully integrated factor markets in the system of equations to describe the functionality of a single country or a group of countries. Thus, this paper focuses on the implementation and improved representation of agricultural factor markets (land, labour and capital) in computable general equilibrium (CGE) models. This paper outlines the presentation of factor markets with an overview of currently applied CGE models and describes selected options to improve and extend the current factor market modelling in the MAGNET model, which also uses the results and empirical findings of our partners in this FP project.

Assessment of Socio-Economic and Climate Change Effects on Water Resources and Agriculture in Southern and Eastern Mediterranean countries. MEDPRO Technical Paper No. 28/March 2013

This study aims at assessing the socio-economic and environmental effects of different societal and human development scenarios and climate change in the water-scarce southern and eastern Mediterranean. The study develops a two-stage modelling methodology that includes an econometric analysis for the southern and eastern Mediterranean region as a whole and a detailed, integrated socioecological assessment focusing on Jordan, Syria and Morocco. The results show that water resources will be under increasing stress in future years. In spite of country differences, a future path of sustainable development is possible in the region. Water withdrawals could decrease, preserving renewable water resources and reversing the negative effects on agricultural production and rural society. This, however, requires a combination across the region of technical, managerial, economic, social and institutional changes that together foster a substantive structural change. A balanced implementation of water supply-enhancing and demand-management measures along with improved governance are key to attaining a cost-effective sustainable future in which economic growth, a population increase and trade expansion are compatible with the conservation of water resources.

The Common Security and Defence Policy: National Perspectives. Egmont Paper No. 79, May 2015

FOREWORD. When one looks at the present state of the CSDP, one cannot help but look on with disenchantment at the energy that appears to have abandoned both institutions and Member States. Commentators increasingly take for granted that nothing much should be expected from this field of EU policy. The reasons for this state of mind are well known: the recent economic and financial strains, which have impacted all EU action since 2008, means that most of the Member States will struggle to keep their defence budgets at their present level in the future, and we may even see reductions. Furthermore, and to put it mildly, most of the recent CSDP operations have also experienced a lack of enthusiasm. Adding to this overall trend, the EU is far from presenting a common vision of what security and defence should really mean. Many of the Member States do not want to be involved in all of today’s international turmoils, and they rarely share the strategic culture which inspires those Member States who see themselves as having special responsibilities in dealing with these crises. In the end it may be that Member States diverge fundamentally on the simple question of whether it is relevant for the EU to engage in most of the ‘hot’ crises Europe faces; many prefer to see Europe as a soft power, mostly dedicated to intervening on less dramatic fronts and more inclined to mend than to fight. For whatever reason given, it remains that if there is a lack of common understanding on what CSDP should really be about, it should not come as a surprise if this policy is presently in stalemate. As an additional blow, the Ukrainian crisis, which dragged on for the whole of last year, could only add to the downward spiral the EU has been experiencing, with a new Russia aggressively confronting Europe in a manner not too distant from the Cold War days. This attitude has triggered the natural reaction among EU Member States to seek reassurances from NATO about their own national security. Coupled with the return of France a few years ago into the integrated military command, NATO’s renewed relevance has sent a strong message to Europe about the military organisation’s credibility with regard to collective defence. Surprisingly, this overall trend was gathering momentum at the same time as other more positive developments. The European Council of December 2013 dedicated its main session to CSDP: it underlined Europe’s role as a ‘security provider’ while adopting a very ambitious road map for Europe in all possible dimensions of the security sector. Hence the impression of a genuine boost to all EU institutions, which have been invited to join efforts and give CSDP a reinvigorated efficiency. In the same way, the increasing instability in Europe’s neighbourhood has also called for more EU operations: most recently in Iraq, Libya, Northern Nigeria or South Sudan. Pressure for further EU engagement has been one of the most constant features of the discussions taking place around these crises. Moreover, a growing number of EU partners in Asia, Latin America or Eastern Europe have shown a renewed eagerness to join CSDP missions in what sounds like a vote of confidence for EU capacities. What kind of conclusion should be drawn from this contradictory situation? Probably that the EU has much more potential than it can sometimes figure out itself, if only it would be ready to adapt to the new global realities. But, more than anything else, an enhanced CSDP needs from all Member States strong political will and a clear vision of what they want this policy to be. Without this indispensable ingredient CSDP may continue to run its course, as it does today. It may even grow in efficiency but it will keep lacking the one resource that would definitely help it overcome all the present shortcomings that have prevented Europe from finding its true role and mission through the CSDP. Member States remain central to EU security and defence policy. This is why this collection of essays is so valuable for assessing in no uncertain way the long road that lies ahead for any progress to be made. Pierre VIMONT Senior Associate at Carnegie Europe Former Executive Secretary-General of the European External Action Service

A Global Strategy for a soul-searching European Union. EPC Discussion Paper, 13 July 2016

On 28 June 2016, just a few days after the historic Brexit vote, High Representative of the Union for Foreign Affairs and Security Policy Federica Mogherini presented the paper on the new European Union Global Strategy (EUGS) at the European Council, outlining the strategic coordinates for the EU’s foreign and security policy. In this Discussion Paper, Giovanni Grevi takes a closer look at the EUGS and assesses its main rationale, features, added value and prospects against the backdrop of an ever more complex world. Not only is the EU dealing with increasingly contested and polarised politics at home, but the global theatre itself has become hugely disorienting, more integrated and yet more fragmented at the same time. The paper recalibrates the overall foreign policy posture of the EU and sketches out a more modest and concrete approach compared to earlier aspirations, and a more joined-up one compared to current practice. By doing so, the strategy seeks to square the circle between the need for Europe to be cohesive and purposeful in a harder strategic environment and the fact that domestic politics within the Union constrain its external action and drain its attractiveness. The EUGS calls on the EU and member states to fully take on their responsibility to underpin unity, prosperity and security at home by taking more effective and joined-up action abroad. The question is, of course, whether this call will be heeded.