What role for social investment in the new economic governance of the Eurozone? EPC Policy Brief, 10 November 2015

The EU, and the Eurozone in particular, has been going through a period of prolonged economic difficulty. While there are some signs of recovery, growth rates remain too low, only returning to the already modest growth rates of the pre-crisis period. This not only affects the creation of jobs, but also, through lower tax revenues and stagnant GDP levels, the consolidation of public finances.

A proposal to revive the European Fiscal Framework. Bruegel Policy Contribution ISSUE 2016/07 MARCH 2016

Pro-cyclical fiscal tightening might be one reason for the anaemic economic recovery in Europe, raising questions about the effectiveness of the EU’s fiscal framework in achieving its two main objectives: public debt sustainability and fiscal stabilisation. • In theory, the current EU fiscal rules, with cyclically adjusted targets, flexibility clauses and the option to enter an excessive deficit procedure, allow for large-scale fiscal stabilisation during a recession. However, implementation of the rules is hindered by the badly-measured structural balance indicator and incorrect forecasts, leading to erroneous policy recommendations. The large number of flexibility clauses makes the system opaque. • The current inefficient European fiscal framework should be replaced with a system based on rules that are more conducive to the two objectives, more transparent, easier to implement and which have a higher potential to be complied with. • The best option, re-designing the fiscal framework from scratch, is currently unrealistic. Therefore we propose to eliminate the structural balance rules and to introduce a new public expenditure rule with debt-correction feedback, embodied in a multi-annual framework, which would also support the central bank’s inflation target. A European Fiscal Council could oversee the system.

Rulemaking in Super-RTAs: Implications for China and India. Bruegel Working Paper 2014/03, March 2014

The faltering Doha round has led to a renewed focus on large regional trade agreements. There are two super-RTAs in the making in the Asia-Pacific and one in the Atlantic, all with rather ambitious negotiation targets, and presented as alternate means to reset global trade rules and take the multilateral trade liberalisation agenda forward. So what does this development mean for large emerging markets such as China and India that are on the fringes of these regional trade negotiations? Can these agreements become alternate means of pressuring these Asian economies to follow new trade rules set by industrialised countries, especially given the progressive erosion of the policy dominance of industrialised countries and the strong dissenting voice of developing countries in the Doha Round? This paper examines how super-RTAs may emerge as game changers in the multilateral trading system as promulgated by the WTO, and the implications for China and India. The paper analyses the new economic governance system that is likely to emerge given the renewed interest in regionalism, and argues that while the super-RTAs will not be entirely benign in their impact on China and India, rather than forcing these economies to accept the higher new regulatory standards enshrined in the super-RTAs, a distinct possibility in the medium-term is the emergence and entrenchment of a dual regulatory regime in these economies.

Cities: The Juncker Commission should not miss this key to growth, jobs and the environment. CEPS Commentary, 3 October 2014

Cities, more particularly ‘smart’ cities, could become a catalyst for economic and social development. For this to happen, Europe will need a new type of integrated infrastructure, a new urban governance and policy structure, as well as new finance and business models. Successful smart projects will eventually develop into new business models and companies. While the European Commission cannot mandate or regulate this top down, it has a role to play in nurturing new initiatives to allow Europe the possibility of developing its own Google and Apple.

EU-US S&T Collaborations, Challenges and Opportunities for Development. Innovation Diplomacy, Special case in point: the Hellenic-American innovation bridge and its underlying dimensions. ACES Working Papers, October 2012

Developed and developing economies alike face increased resource scarcity and competitive rivalry. Science and technology increasingly appear as a main source of competitive and sustainable advantage for nations are regions alike. However, the key determinant of their efficacy is the quality and quantity of entrepreneurship-enabled innovation that unlocks and captures the pecuniary benefits of science enterprise in the form of private, public or hybrid goods (for instance, bio-entrepreneur-millionaires, knowledge for the public good - ie: public health awareness, and new public-private research centers funded partly by bio-entrepreneur-millionaires and monies levied as taxes on bio-ventures).

Promoting the agenda for a social Economic and Monetary Union: Attention, credibility and coalition-building. Bruges Political Research Paper No. 37, November 2014

In the aftermath of the crisis, new instruments of economic governance have been adopted at the EU level. Until recently, these have been strongly dominated by what I assume to be the ECFIN coalition. However, at least since 2011, this coalition’s supremacy has been challenged by the competing coalition’s (EPSCO) willingness to rebalance the economic governance so that social concerns are better taken into account. Hence, drawing on the agenda-setting literature in the EU context, this working paper aims at retracing the process that has led to put this issue of the social dimension of the EMU on to the EU political agenda. Three hypotheses are made concerning the rise of this issue, the strategies employed by agenda-setters, and the policy subsystem of the economic governance. First, this study shows that the interest in this issue has been gradually fostered ‘from below’, at the level of the European Parliament and the European Commission. Second, due to its ‘high politics’ nature, this issue could only be initiated ‘from above’ (European Council) and then expanded to lower levels of decision-making (Commission). Specifically, DG EMPL has managed to attract attention to this issue and to build its credibility in dealing with it by strategically framing the issue and directing it towards the EPSCO venue. Finally, I analyze the outcome of this agenda-setting process by assessing to what extent the two new social scoreboards which form part of this social dimension have been taken into account during the 2014 European semester. The result of this analysis is that the new economic governance has not been genuinely rebalanced insofar as its dominant policy core remains that of the ECFIN coalition.

The Gulf Cooperation Council as a New Regional Power: Time for the EU to Propose a Strategic Partnership. Bruges Regional Integration & Global Governance Papers 3/2012, November 2012

The Gulf Cooperation Council (GCC) is a de facto regional power in the Arab world. Its role has been crucial in some of the outcomes of the Arab Spring. The GCC countries have been very pragmatic in dealing with the uprisings, avoiding any revolutionary spill-over throughout the Gulf region. This paper examines to what extent the policies of the European Union (EU) in the Gulf have changed since the beginning of the Arab Spring. It argues that despite the calls by the European Parliament and by the High Representative Baroness Ashton to improve the relationship, the EU’s support for a new policy in the Gulf after the Arab Spring is stalling, and little new or concrete has been achieved. The paper concludes that the Union needs a reinforced partnership that merges the various EU policies in the region into a single strategic partnership with the Arab countries.

Regional health governance: a comparative perspective on EU and ASEAN. EU Centre in Singapore Policy Brief No. 4, June 2012

Globalisation has led to new health challenges for the 21st Century. These challenges have transnational implications and involve a large range of actors and stakeholders. National governments no longer hold the sole responsibility for the health of their people. These changes in health trends have led to the rise of Global Health Governance as a theoretical notion for health policy-making. The Southeast Asian region is particularly prone to public health threats and it is for this reason that this brief looks at the potential of the Association of Southeast Asian Nations (ASEAN) as a regional organisation to take a lead in health cooperation. Through a comparative study between the regional mechanisms for health cooperation of the European Union (EU) and ASEAN, we look at how ASEAN could maximise its potential as a global health actor. Regional institutions and a network of civil society organisations are crucial in relaying global initiatives for health, and ensuring their effective implementation at the national level. While the EU benefits from higher degrees of integration and involvement in the sector of health policy making, ASEAN’s role as a regional body for health governance will depend both on greater horizontal and vertical regional integration through enhanced regional mechanisms and a wider matrix of cooperation.

Mixed Public-Private Enterprises in Europe: Economic Theory and an Empirical Analysis of Italian Water Utilities. Bruges European Economic Research (BEER) Papers 4/July 2006

Mixed enterprises, which are entities jointly owned by the public and private sector, are spreading all over Europe in local utilities. Well aware that in the vast majority of cases the preference of local authorities towards such governance structure is determined by practical reasons rather than by the ambition to implement new regulatory designs (an alternative to the typical “external” regulation), our purpose is to confer some scientific value to this phenomenon which has not been sufficiently investigated in the economic literature. This paper aims at proposing an economic analysis of mixed enterprises, especially of the specific configuration in which the public partner acts as controller and the private one (or “industrial” partner) as service provider. We suggest that the public service concession to mixed enterprises could embody, under certain conditions, a noteworthy substitute to the traditional public provision and the concession to totally private enterprises, as it can push regulated operators to outperform and limit the risk of private opportunism. The starting point of the entire analysis is that ownership allows the (public) owner to gather more information about the actual management of the firm, according to property rights theory. Following this stream of research, we conclude that under certain conditions mixed enterprises could significantly reduce asymmetric information between regulators and regulated firms by implementing a sort of “internal” regulation. With more information, in effect, the public authority (as owner/controller of the regulated firm, but also as member of the regulatory agency) can stimulate the private operator to be more efficient and can monitor it more effectively with respect to the fulfilment of contractual obligations (i.e., public service obligations, quality standards, etc.). Moreover, concerning the latter function, the board of directors of the mixed enterprise can be the suitable place where public and private representatives (respectively, welfare and profit maximisers) can meet to solve all disputes arising from incomplete contracts, without recourse to third parties. Finally, taking into account that a disproportionate public intervention in the “private” administration (or an ineffective protection of the general interest) would imply too many drawbacks, we draw some policy implications that make an equitable debate on the board of the firm feasible. Some empirical evidence is taken from the Italian water sector.

La Banque centrale européenne et la nouvelle gouvernance économique européenne: le défi de l’intégration différenciée = The European Central Bank and the new European economic governance: the challenge of differential integration. Research Paper in Law 01/2015

No abstract.