Introducing more equity in the CAP: a difficult challenge. Egmont Paper #55, June 2012

[From the Introduction]. The main question addressed by this paper is how to reach a more equitable distribution of CAP’s payments pragmatically, politically and economically? Pragmatically, the CAP is a multi-functional policy, which has to combine different goals, i.e. to be more equitable, green and market-oriented. However, these objectives are not always compatible and require trade-offs. Politically, regarding the CAP’s significant share (40%) of the EU budget and the current public debt crisis, Member States are most likely to keep their attention on the juste retour calculations rather than the promotion of the European public interest in the EU negotiations. Economically, reaching a more equitable distribution of payments should be achieved without significant disruptive changes that could have serious consequences on the costs and benefits of the agricultural sector in the EU. Considering these elements, it is already clear that reaching a more equitable distribution of CAP’s payments represents a difficult challenge.

Between Apathy and Anger: Challenges to the Union from the 2014 Elections to the European Parliament. EPIN [Working] Paper No. 39, 20 May 2014

This EPIN study brings together contributions from a ​broad selection of member states ​and ​provid​es ​insightful analysis ​into the 2014 elections to the European Parliament on the ground. The report reveals the different factors that impede the development of genuine European elections and the consequences of the ballot in the member states covered by the study​, namely Bulgaria, Finland, France, Germany, Greece, Italy, the Netherlands, Poland, Romania, Spain and the UK​,​ and at EU level. The report finds that: • The EP Resolution to encourage European parties to nominate candidates for the next Commission President has not really increased public interest in the EU and voter turnout will probably remain low. • Visibility of the European top candidates in most member states has been quite limited. • National manifestos do not coincide – and sometimes event conflict with – the European parties’ manifestos. • Election debates focus on national issues; EU issues are only brought to public debate when they are relevant for domestic politics. • Again, we will see a protest vote against governments and large parties. The EP elections are still perceived as a test ahead of local and national elections, or as a vote of confidence in national governments. • This year the protest vote also concerns the EU. The report predicts a more eurosceptic ballot that might complicate decision-making in the EU, exacerbate the conflict between the national and European levels and increase tensions among member states.

Economic Implications of Enlargement. Bruges European Economic Policy (BEEP) Briefing 1/2002

The Eastern enlargement is about to be decided by the European Council. As expected, the “end game “ of the negotiations and assessments is heavily biased by a narrow perspective on net transfers, on income compensations to Central European farmers and on the psychological politics of a single “big bang “. None of these three so-called key items of the end game are of much relevance to appreciate the significance of enlargement. Net transfers have little to do with the costs and benefits of club membership for countries which pay, and can lead to addiction and lethargy rather than extra growth if market integration, macro-economic stability and domestic reforms are not taken serious (as the case of Greece before 1997 has demonstrated). Income compensations for Eastern farmers are crucial for this pressure group, and symbolically of some importance in domestic politics because of the perversity that rich farmers get more, but their absence is likely to serve the public interest in candidate countries far better. And being part of the big bang, as against getting in one or three years later, has assumed a dramatic meaning during this end game, far beyond its true proportions. This hectic European theatre tends to obscure what enlargement is mainly about, now that the stability and values have been secured for the peoples from Central Europe. In a guaranteed setting of peace, freedom and security, enlargement is about greater prosperity.

The Importance of Being Earnest: The green economy and sustainable development in China. Asia Policy Brief 2012/02, November 2012

China's past economic development model has not been sustainable, at least in environmental terms. In recent years, the Chinese government has dedicated considerable time, planning energy, policy and rhetoric to "green" issues. However, there is a risk that this trend will be stalled by struggles related to pending economic problems and the upcoming leadership transition. Consequently, the international community should acknowledge China’s achievements in terms of environmental policy and cooperation as one way of serving the global public interest.

Why EU promotion is at odds with successful crisis management: public relations, news coverage, and the Aceh Monitoring Mission. EU Centre in Singapore Working Paper No. 10, September 2012

The EU’s Common Foreign and Security Policy (CFSP) and its accompanying Common Security and Defence Policy (CSDP) missions can be tools used to increase the international profile of the European Union. Nevertheless, CSDP missions garner little news coverage. This article argues that the very nature of the missions themselves makes them poor vehicles for EU promotion for political, institutional, and logistical reasons. By definition, they are conducted in the middle of crises, making news coverage politically sensitive. The very act of reporting could undermine the mission. Institutionally, all CSDP missions are intergovernmental, making press statements slow, overly bureaucratic, and of little interest to journalists. Logistically, the missions are often located in remote, undeveloped parts of the world, making it difficult and expensive for European and international journalists to cover. Moreover, these regions in crisis seldom have a thriving, local free press. Using the Aceh Monitoring Mission (AMM) as a case study, the author concludes that although a mission may do good, CSDP missions cannot fulfil the political function of raising the profile of the EU.

Portugal. In economics, we call it conflict of interest! CEPS Commentary, 12 April 2013

Faced with limited options for coming up with the funds needed to pay off the next instalment on its bailout loan, Portugal is advised in this Commentary by economist Leonor Coutinho to trim the number of public sector employees, in combination with an increase in public sector working hours, among the lowest in Europe. In her view, these measures will have the best long-term implications both in terms of fiscal sustainability and of labour productivity, and may finally allow the country to resume the catching-up process that has been stalled since the start of EMU.

The SRM and the dream to resolve banks without public money. CEPS Commentary, 19 December 2013

In his assessment of the compromise agreement reached on the Single Resolution Mechanisn (SRM), Daniel Gros finds that the popular perception that the periphery has the most to gain from the establishment of a unified resolution regime might have gotten it backwards. In reality, he finds that Germany and other surplus countries have a bigger interest in tying the hands of their national resolution authorities, which have a tendency to be too generous.

Public feeling in Ukraine ahead of the parliamentary election. OSW Commentary No. 89, 2012-07-12

After two and a half years under President Viktor Yanukovych and the Party of Regions, the overwhelming majority of Ukrainians are dissatisfied with the state the country’s economy is currently in and the direction it has been developing in. There has also been a significant drop in stability and social security with the general public increasingly feeling that the government has little interest in their problems. Only 16% of Ukrainians believe that the current government has performed better than their predecessors, although overall confidence in both the ruling party and the opposition remains low. Nonetheless, falling support for the president and the Cabinet does not seem to have translated into greater popularity for the country’s opposition parties; these currently enjoy the confidence of only a quarter of the electorate. The clear lack of credibility for politicians on either side of the political spectrum, coupled with an almost universal preoccupation with the bare necessities of life, has shifted the political processes in Ukraine further down the agenda for the majority of Ukrainians. Ukraine’s poor economic performance, which over the last two years has been addressed through a series of highly unpopular economic reforms, has resulted in a growing mood of discontent and increased civil activity, with the Ukrainian people reporting a greater willingness than ever to join protests on social issues. Most of them, however, have shown much less interest in political rallies. This is likely to stem from low levels of trust in the opposition and the general belief that opposition politicians are not a viable alternative to the current government. One may therefore assume that there will be little public scrutiny of the parliamentary election scheduled for 28 October, and that the likelihood of mass demonstrations during it is low. However, in the event of large-scale vote rigging and a dismissive response from the government, spontaneous unsanctioned rallies cannot be ruled out. What is more likely, however, is a series of protests after the elections, when the already difficult economic situation is further exacerbated by a predicted rise in the price of gas for Ukrainian households and a possible move to devalue the Ukrainian hryvnia.

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.

Flashlight Europe N°8 – October 2015; Deeper EU integration is in Poland’s interest

The Polish people have voted in favour of the political change: former prime minister Jaroslaw Kaczyński’s party Law and Justice (PiS) with its front-runner Beata Szydlo turned out strongest in the parliamentary elections on Sunday with almost 38 per cent of votes. The liberal Civic Platform (PO), headed by prime minister Ewa Kopacz, gained only 23.4 per cent. Why this shift to the right? And what will be the consequences for Polish politics? We asked Jacek Kucharczyk, President of the executive board of the Warsaw-based Institute of Public Affairs.

TTIP and Public Procurement: Going beyond the tip of the iceberg. CEPS Policy Brief No. 339, March 2016

Trade negotiations involving international public procurement rules are on the rise, stimulating a growing interest in having a clear picture of the economic stakes involved, including the current level of international openness. A recent paper published by the European Centre for International Political Economy (Messerlin, 2016) made an attempt to provide a range of estimates for the EU and the US and found relatively low rates of import penetration. This analytical approach, however, looked only at the ‘tip of the procurement iceberg’, as the data used covered primarily only one modality of international procurement (direct cross-border), which is not the main avenue for international government procurement. Other modalities, such as procurement from foreign subsidiaries established in Europe, account for much more. Such an approach therefore ignores the main modalities through which foreign firms win EU contracts. Once these other main procurement modalities are taken into account, EU openness in procurement is much higher. Comparable data across all modalities do not yet exist for the US, but we do have clear evidence that the US has introduced the largest number of protectionist procurement measures since 2008 affecting all modalities for international procurement. Against this background, this Policy Brief makes four basic points: i. Public procurement is a key area of trade negotiations, and TTIP is no exception to this rule. ii. The existing levels of openness in procurement markets need to be assessed across all three main procurement modalities and not based only on direct cross-border procurement, which is not the main procurement avenue. According to this comprehensive metric, the EU market already has a high foreign participation rate, including by US companies. iii. Unfortunately, similar data do not exist for the US market. But there is growing evidence of discriminatory measures introduced in recent years, which impede the ability of EU firms to compete on a level-playing field in US procurement markets. iv. The importance of procurement as a key negotiating area requires better data and a greater analytical engagement.