The Protocol of Frankfurt: a new treaty for the eurozone. EPC Discussion Paper, 12 January 2016

At a time when the EU finds itself in a perfect storm of crises which it seems unable to overcome, a bold move is needed to reinvigorate the EU’s system of government and stave off the risk of disintegration. In order to address the inherent weakness of the EU’s monetary and economic governance, this pamphlet proposes a new treaty for the eurozone: the Protocol of Frankfurt. Written by Andrew Duff, former Member of the European Parliament and Visiting Fellow at the EPC, it is the first ever attempt to draft a treaty aimed at setting up a fiscal union. “The Protocol of Frankfurt provides the constitutional framework for a proper economic government and will, hopefully, also serve to accelerate the debate on the Five Presidents’ Report”. Realising that the time is not ripe for a major constitutional overhaul, the pamphlet instead puts forward a shorter treaty revision that concentrates on re-engineering the Maastricht arrangements for the economic and monetary union, taking on the form of a Protocol to be added on to the existing Treaties. Article 48(2) of the Treaty on European Union allows the government of any member state, the European Parliament or the Commission to table amendments to the Treaties. Our hope is that somebody, informed by this draft Protocol, does just that.

Nagorno-Karabakh and the arc of crises on Europe's borders. EPC Policy Brief, 3 February 2016

For more than two decades, Azerbaijan and Armenia have been locked in a stalemate over the Nagorno-Karabakh. The protracted conflict remains the biggest impediment to security, stability and prosperity in the South Caucasus. The EU has put itself on the sidelines of the conflict resolution process, allowing the Organization for Security and Co-operation in Europe (OSCE) Minsk Group (MG), of which Russia, France and the US are co-chairs, to take centre stage. In this Policy Brief, Amanda Paul and Dennis Sammut argue that the EU should play a more active role in the conflict resolution process, taking the lead with innovative initiatives and using its soft power skills and experience. A recent review of the European Neighbourhood Policy recognises that protracted conflicts continue to hamper development in the region. This new approach now needs to be given substance, before the conflict further escalates and becomes another crisis on Europe’s border the already burdened Union cannot cope with.

Iranian-Saudi tensions: the energy dimension. EPC Policy Brief, 9 February 2016

Following the execution of Saudi Shiite cleric Nimr Baqer al-Nimr, the deep rooted rivalry between Iran and Saudi Arabia entered a new phase in January 2016. While the main objective for both countries still is regional hegemony, the Iranian-Saudi competition takes many different forms and shapes, and also extends into the field of energy. In this Policy Brief, David Ramin Jalilvand gives a detailed analysis of the energy-related aspects of the Iran-Saudi Arabia rivalry and its possible consequences for Europe’s energy market; both countries hold giant hydrocarbon reserves, so European energy will probably be affected by their competition in several regards; increased oil supplies will be available for the European market, while the cycle of low oil prices will be prolonged. According to Jalilvand, this is a mixed blessing; Europe’s energy import bill will be reduced, but its indigenous production will suffer, while Russia’s role in European natural gas will only continue to grow.

Financial assistance to Greece: Three programmes. EPC Discussion Paper, 26 February 2016

There are a lot of myths surrounding the bailout money that was given to Greece. Many people still believe that the money never went to the Greek people, but to the Greek and European banks; that the intervention of the euro-area governments and the IMF dealt almost exclusively with the Greek debt; that very little money was used to finance Greek public expenditure; that most Greek debt was reimbursed; that no cuts were made to the stock of Greek government bonds on the market; and, finally, that so far, no cuts have been made to the debt of the Greek state towards the euro-area countries. In this Discussion Paper, Fabio Colasanti debunks some of those myths by taking stock of the numbers behind the financial support given to Greece by the countries of the euro-area and the IMF. Examining the three bailout programmes in detail, he discusses the reasons for and against a restructuring of the Greek public debt in 2010, its implementation in 2012, the degree in which the Greek debt towards the euro-area countries has already been cut, and the scope for further cuts. Finally, the paper explains how both issues were and are still dominated by internal political considerations, both in the creditor countries and in Greece.

The energy security package: significant overhaul or business as usual? EPC Commentary, 24 February 2016

On 16 February 2016, the European Commission presented its energy security package, the first major delivery of the Energy Union agenda. The package includes legislative texts (the revised Regulation on Security of Supply and the Decision on Inter-Governmental Agreements) and non-legislative texts (the Communications on the LNG and Storage Strategy and the Heating and Cooling Strategy). This commentary takes stock of the political and market conditions surrounding the proposal, highlighting strengths and weaknesses of the EU’s approach. It argues that more attention should be devoted to demand to ensure correct investment signals, which are key to the strategy’s success.

Brexit averted through EU reform? EPC Post-Summit Commentary, 22 February 2016

After some drama, the EU Summit produced the expected result: an agreement on the UK-EU relationship that broadly reflects the demands Prime Minister Cameron set out in his letter to President Tusk in November 2015. This reveals that no other EU leader wants to see the UK leave, given the political and economic costs this implies for the EU as a whole, especially in such a crises-dominated period.

Europe's refugee/migrant crisis: can 'illiberal' Turkey save 'liberal Europe' while helping Syrian refugees? EPC Policy Brief, 19 February 2016

Turkish democracy today has lost much of its shine. As the Turkish government continues to backtrack on reforms and infringe on basic freedoms, the country is beginning to look more and more like an ‘illiberal democracy’ at best. Ironically, as one of the most important destination and transit countries for Syrian refugees, it is also still uniquely positioned to help the EU deal with the current refugee crisis. In November 2015, the EU and Turkey signed a Joint Action Plan to better manage the situation, but both parties have fallen short of their promises. German Chancellor Angela Merkel, one of the biggest supporters of closer EU-Turkey cooperation, had hoped that this would allow for the refugees to be admitted into Europe in a more controlled and orderly manner. But it seems she is standing alone in a Europe that is becoming increasingly more hostile towards newcomers, drifting further and further from the liberal values it stands for. In this Policy Brief, Kemal Kirişci discusses the ways in which Turkey, Germany and the EU in general could all benefit from closer cooperation on this issue: “With the right frame of mind and will, the current ‘illiberal Turkey’ could indeed help ‘liberal Europe’. In the long run this would be a ‘win-win’ for Germany, Turkey, and the EU – but most importantly, for the Syrian refugees.”

Green Diplomacy Network – What is in a name? EPC Commentary, 29 February 2016

The external representation of the European Union (EU), with 28 member states plus the Brussels institutions, has a complex architecture. While the inauguration of the European External Action Service (EEAS) and the transformation of European Commission offices worldwide into EU delegations in December 2009 were meant to streamline external representation patterns, such hopes have only been partially attained. Despite a continuing series of national embassy closures abroad by EU member states, mostly spurred by shrinking budgets, many countries in the world host embassies from nearly the full complement of EU member states along with an EU delegation.

Turkey makes a mockery of Europe’s claim to uphold democratic values. EPC Commentary, 16 March 2016

The 7 March EU-Turkey migration crisis summit took place three days after the Turkish authorities seized Feza media group, which includes Turkey’s largest circulation daily Zaman and its English language sister paper Today’s Zaman. The seizure was the latest development in the worst crackdown on fundamental rights and freedoms Turkey has witnessed in decades. Yet because Turkey is vital in dealing with the migration/refugee crisis, the EU’s response was meek to say the least. For the first time since the Cold War – when Turkey was key in shoring up Europe’s security – Ankara has found itself in a particular position of strength. Turkey has skillfully exploited the EU’s and particularly German Chancellor Angela Merkel’s urgent need to find a way out of the crisis.

EU-Turkey Summit on the refugee crisis Law and (dis)order? EPC Commentary, 21 March 2016

After many meetings and long hours of negotiations, the overwhelming feeling when a deal between the EU and Turkey was struck, was one of “mission accomplished”! Faced with an unprecedented crisis and forced to appease increasingly hostile public opinions back home, EU leaders had only one objective in mind: reducing the number of migrants arriving in the EU so that order can return in the framework of EU rules. However, a closer look at the Summit Conclusions and the EU-Turkey statement leaves a bitter taste, according to Yves Pascouau. In this Commentary, he questions the feasibility of the final EU-Turkey deal, saying that it creates more problems than it solves: besides the obvious legal and practical issues, it is far from certain which member states will be willing to do their part, or whether or not the EU can come up with a strategic vision on human mobility for the future.

Turkey makes a mockery of Europe's claim to uphold democratic values. EPC Commentary, 16 March 2016

The 7 March EU-Turkey migration crisis summit took place three days after the Turkish authorities seized Feza media group, which includes Turkey’s largest circulation daily Zaman and its English language sister paper Today’s Zaman. The seizure was the latest development in the worst crackdown on fundamental rights and freedoms Turkey has witnessed in decades. Yet because Turkey is vital in dealing with the migration/refugee crisis, the EU’s response was meek to say the least. For the first time since the Cold War – when Turkey was key in shoring up Europe’s security – Ankara has found itself in a particular position of strength. Turkey has skillfully exploited the EU’s and particularly German Chancellor Angela Merkel’s urgent need to find a way out of the crisis.

Cutting the Gordian knot? Assessing the outcomes of the March EU-India Summit. EPC Commentary, 8 April 2016

After a four-year suspension, the 13th EU-India Summit took place in Brussels on 30 March 2016. While several deep-rooted constraints could not be overcome, the Summit’s deliverables reflect a gradually changing and cautiously optimistic mood in the historically challenging interaction between Brussels and Delhi.

The EU cannot remain a passive observer of the Karabakh conflict. EPC Commentary, 7 April 2016

When Federica Mogherini visited the South Caucasus in March, she was quoted as saying that the Nagorno-Karabakh conflict was a top priority for the EU. Facts, however, do not seem to match the words of the EU High Representative for Foreign Affairs and Security Policy. As violent clashes in the conflict zone unfolded over the past week, the EU was a passive observer, with few visible signs of engagement apart from a cursory phone call urging Armenia and Azerbaijan to show restraint. The escalation has shown how quickly and dangerously the situation can develop, and the unassailable nature of the Line of Contact (LoC). If the diplomatic efforts to resolve the conflict show no progress, a repetition is very probable. Furthermore, it is likely the next incident will be more devastating in human and material costs than this recent one, and may not be contained so quickly. The EU needs to be part of the renewed diplomatic effort.

The revision of the Posted Workers Directive: towards a sufficient policy adjustment? EPC Discussion Paper, 20 April 2016

Labour mobility within the European Union continues to be a limited phenomenon. This concerns both long-term intra-EU mobility and more temporary forms of mobility such as posting of workers, i.e. workers posted to another member state in the framework of cross-border service provision. Yet, despite the limited nature of posting, this topic is far from being absent from the public and political debates. Several factors contribute to this. Firstly, a surge in the number of posted workers has been noticed over the recent years and increased attention has therefore been paid to this issue. Quite a few economic sectors, including construction, manufacturing, and social work, are very concerned by this trend. Secondly, several types of abuses have been recorded such as letter-box companies, bogus self-employment and exploitation of the posted workers' vulnerable situation. Thirdly, questions have been raised as to whether the balance struck by the EU legislator in 1996 (when adopting the Posted Workers Directive) between the freedom to provide crossborder services and the workers' social rights is still valid today. These elements highlight the need for a policy adjustment in order to preserve the legitimacy of the citizens' and workers' freedom to move and, to a certain extent, of the social dimension of the European project. In this context, the European Commission published a proposal to revise the 1996 Directive in order to strike a better balance between economic and social rights. But is this proposal sufficient to ensure a level playing field between economic actors and equal treatment between workers? How will this proposal affect the implementation of other EU initiatives aiming to tackle fraud and abuse? What else is needed to address the tensions between the Single Market principles and the EU's social objectives? This discussion paper, published in the context of the Dutch Presidency and the ongoing negotiations of a revised Directive on posted workers, focuses on these questions while proposing some concrete solutions for a fairer policy framework.

EU visa-liberalisation for Turks: just around the corner? EPC Commentary, 3 May 2016

At the 18 March EU-Turkey Migration Summit EU leaders pledged to lift visa requirements for Turkish citizens travelling to the Schengen zone by the end of June 2016 if Ankara met the required 72 benchmarks. On 4 May the European Commission will decide whether or not Turkey has done enough. The stakes are high because Turkey has threatened to cancel the readmission agreement, which is central to the success of the migration deal, if the EU fails to deliver.