Trade and geopolitics: should the EU engage with the Eurasian Economic Union? EPC Policy Brief, 2 April 2015

In an effort to find a solution to the deteriorating relationship between the EU and Russia, various commentators, policy-makers and experts have suggested that the EU should seriously consider engaging with the Eurasian Economic Union, as part of a new ‘grand bargain’ between Russia and the EU. If Ukraine will no longer be forced to choose between two integrating regimes, so the argument goes, Russian sensibilities can be pacified, which will in turn, hopefully, lead to peace in eastern Ukraine. However, according to Rilka Dragneva and Kataryna Wolczuk, these arguments are based on a number of problematic assumptions about integration dynamics in the eastern neighbourhood. In this Policy Brief, they recommend the EU better think twice before further engaging with the EEU.

Europäische Integration aus historischer Erfahrung, Ein Zeitzeugengespräch mit Michael Gehler = European integration from a historical experience, A Discussion with Michael Gehler. ZEI Discussion Paper C227, 2015

From 1995 to 1999 Monika Wulf-Mathies served as EU commissioner responsible for regional and cohesion policy. She tells us the story of the EU Commission under President Jacques Santer with regard to the historical development of the preparation of the Economic and Monetary Union (EMU), the Union Treaty of Amsterdam (1999) and the EU-Eastern Enlargement. She touches also controversial aspects of the Santer Commission, which led to her collective demission in 1999. According to Wulf-Mathies the increase of EU's democracy deficit is result of an erosion process of the common institutions caused by the nation states which contributed to their weakness. The democratic substance of the union suffers because of the 'summarization' of the EU decision making processes. Monika Wulf-Mathies argues in favor of the community method, which needs revitalization. She proposes European democracy enforcement and transfers of the national budget und economy policies to EU bodies. This eyewitness talk offers an actual EU analysis as well as an assessment of the Santer Commission.

The Schengen Governance Package-another missed opportunity?. IES Policy Brief Issue 2015/1, February 2015

The Schengen Area of free movement is considered to be one of the most substantial and, in the eyes of many, most successful achievements of European integration. In 2014, the ‘Schengen Governance Package’, which alters the rules of the Schengen co-operation, came into force. It is a response to conflict among Member States in maintaining the common zone of freedom of movement. This Policy Brief aims to analyse how this package was developed and to assess whether it represents a suitable response to the conflict and difficulties within the Schengen agreement. The Brief argues that the Governance Package only touches on one part of the problem, namely border controls, whereas it does not deal with solidarity and burden-sharing and hence represents another missed opportunity to improve cooperation in the Schengen Area.

The Case for a European Social Union. European Policy Brief No. 23, March 2014

This Policy Brief discusses the notion of a ‘European Social Union’, in which European countries would cooperate with an explicit social purpose. A European Social Union should not be seen as an idealistic bridge too far. Instead, a Social Union is both desirable and necessary for the eurozone and wider European integration.

The Path to European Integration: A Historical Institutionalist Perspective, CES Germany & Europe Working Papers, No. 05.2, 25 October 1994

Many European and American observers of the EC have criticized "intergovemmentalist" ac­ counts for exaggerating the extent of member state control over the process of European integra­ tion. This essay seeks to ground these criticisms in a "historical institutionalist" account that stresses the need to study European integration as a political process which unfolds over time. Such a perspective highlights the limits of member-state control over long-term institutional de­ velopment, due to preoccupation with shorHerm concerns, the ubiquity of unintended conse­ quences, and processes that "lock in" past decusions and make reassertions of member-state control difficult. Brief examination of the evolution of social policy in the EC suggests the limita­ tions of treating the EC as an international regime facilitating collective action among essentially sovereign states. It is ore useful to view integration as a "path-dependent" process that has pro­ duced a fragmented but still discernible "multitiered" European polity.

Divided but United: European Trade Policy & EC-U.S. Agricultural Negotiations in the Uruguay Round. CES Germany & Europe Working Papers, No. 07.3, 1996

How has the integration of trade policy and negotiating authority in Europe affected the external bargaining capabilities of the European Community (EC)? This paper analyzes the bargaining constraints and opportunities for the EC created by the obligation to negotiate as a single entity. The nature of demands in external~ the voting rules at the EC level, and the amount of autonomy exercised by EC negotiators contribute to explaining, this paper argues, whether the EC gains some external bargaining clout from its internal divisions and whether the final international agreement reflects the position of the median or the extreme countries in the Community. The Uruguay Round agricultural negotiations illustrate the consequences of the EC's institutional structure on its external bargaining capabilities. Negotiations between the EC and the U.S. were deadlocked for six years because the wide gap among the positions of the member states at the start of the Uruguay Round had prevented the EC from making sufficient concessions. The combination of a weakened unanimity rule and greater autonomy seized by Commission negotiators after the May 1992 reform of the Common Agricultural Policy made possible the conclusion of an EC-U.S. agricultural agreement. Although the majority of member states supported the Blair House agreement, the reinstating of the veto power in the EC and the tighter member states' control over the Commission eventually resulted in a renegotiation of the U.S.-EC agreement tilted in favor of France, the most recalcitrant country.

Germany's European Policy: A Constructivist Perspective. CES Germany & Europe Working Papers, No. 08.1, 1998

This paper sets out a constructivist analytical framework and applies it to post-reunification German policy towards the European Union. Although the structural constraints facing Germany shifted dramatically with the end of the Cold War and reunification, the direction of its European policy did not. The more powerful Federal Republic continued to press for deeper economic and political integration, eschewing a more independent or assertive foreign policy course. Neorealism, neoliberalism, and liberalism cannot adequately explain this continuity in the face of structural change; a constructivist account centered around state identity can. During and after reunification, German leaders across the political spectrum identified the Federal Republic as part of an emergent supranational community. This European identity, with roots in the postwar decades, drove Germany's unflagging support for deeper integration across the 1989-90 divide.

Beyond Cooperation and Competition: What Kind of Federalism for EU Social Policy? CES Germany & Europe Working Papers, No. 00.7, December 2000

The EU has become a loose kind ofsocial federation, a fact that has not been adequately taken into account due to the peculiarities ofthe Maastricht strategy for monetary integration. Yet, a new approach to the economic theory offederalism is required ifone wants to analyze the most pressing issues ofEU social policy. The social insurance view of redistribution and stabilization provides for such an approach. This view supports laboratory federalism in which it is the role ofthe EU Commission to contain systems competition in order to preserve "stability in diversity." The role ofthe EU level would be to promote horizontal and vertical learning processes and to make sure that stability concerns ofthe EU are taken seriously by member countries' governments. The minimum requirements framework for social policy that the EU Commission has adopted must be taken as a point of departure, even though it is a less than satisfactory approach from this point of view. Laboratory standardization, in contrast, would not set specific minimum requirements but meta-standards that protect systems functions and safeguard against systems failures.

Capital Markets Union: a vision for the long term. Bruegel Policy Contribution ISSUE 2015/05 April 2015

Capital Markets Union (CMU) is a welcome initiative. It could augment economic risk sharing, set the right conditions for more dynamic development of risk capital for high-growth firms and improve choices and returns for savers. This offers major potential for benefits in terms of jobs, growth and financial resilience. • CMU cannot be a short-term cyclical instrument to replace subdued bank lending, because financial ecosystems change slowly. Shifting financial intermediation towards capital markets and increasing cross-border integration will require action on multiple fronts, including increasing the transparency, reliability and comparability of information and addressing financial stability concerns. Some quick wins might be available but CMU’s real potential can only be achieved with a long-term structural policy agenda. • To sustain the current momentum, the EU should first commit to a limited number of key reforms, including more integrated accounting enforcement and supervision of audit firms. Second, it should set up autonomous taskforces to prepare proposals on the more complex issues: corporate credit information, financial infrastructure, insolvency, financial investment taxation and the retrospective review of recent capital markets regulation. The aim should be substantial legislative implementation by the end of the current EU parliamentary term.

The South Caucasus - Between integration and fragmentation

The South Caucasus is situated at the intersection of Eurasia’s major transport and energy corridors, making it an important geostrategic region. Traditional regional actors Iran, Turkey and Russia have jostled for influence and power in the region for centuries, and are now faced with competition from the EU, China, the US and NATO. Although Armenia, Azerbaijan and Georgia have been independent for more than two decades, they still continue to feel the sway, and sometimes threat, of external actors. As a response, the three South Caucasus states have chosen very different geostrategic paths since the collapse of the Soviet Union, leaving the region more fragmented and volatile than ever. In this book, various authors offer a deep and broad understanding of the developments in the South Caucasus, analyse the different foreign trajectories that each of the three state is following, and highlight the impact of external actors’ policies.

Consensus, contradiction, and conciliation of interests: the geo-economics of the Energy Union. EPC Policy Brief, 8 July 2015

European Union energy policy calls for nothing less than a profound transformation of the EU's energy system: by 2050 decarbonised electricity generation with 80-95% fewer greenhouse gas emissions, increased use of renewables, more energy efficiency, a functioning energy market and increased security of supply are to be achieved. Different EU policies (e.g., EU climate and energy package for 2020) are intended to create the political and regulatory framework for this transformation. The sectorial dynamics resulting from these EU policies already affect the systems of electricity generation, transportation and storage in Europe, and the more effective the implementation of new measures the more the structure of Europe's power system will change in the years to come. Recent initiatives such as the 2030 climate/energy package and the Energy Union are supposed to keep this dynamic up. Setting new EU targets, however, is not necessarily the same as meeting them. The impact of EU energy policy is likely to have considerable geo-economic implications for individual member states: with increasing market integration come new competitors; coal and gas power plants face new renewable challengers domestically and abroad; and diversification towards new suppliers will result in new trade routes, entry points and infrastructure. Where these implications are at odds with powerful national interests, any member state may point to Article 194, 2 of the Lisbon Treaty and argue that the EU's energy policy agenda interferes with its given right to determine the conditions for exploiting its energy resources, the choice between different energy sources and the general structure of its energy supply. The implementation of new policy initiatives therefore involves intense negotiations to conciliate contradicting interests, something that traditionally has been far from easy to achieve. In areas where this process runs into difficulties, the transfer of sovereignty to the European level is usually to be found amongst the suggested solutions. Pooling sovereignty on a new level, however, does not automatically result in a consensus, i.e., conciliate contradicting interests. Rather than focussing on the right level of decision making, European policy makers need to face the (inconvenient truth of) geo-economical frictions within the Union that make it difficult to come to an arrangement. The reminder of this text explains these latter, more structural and sector-related challenges for European energy policy in more detail, and develops some concrete steps towards a political and regulatory framework necessary to overcome them.

The Schengen governance package - another missed opportunity? IES Policy Brief Issue 2015/1 February 2015

The Schengen Area of free movement is considered to be one of the most substantial and, in the eyes of many, most successful achievements of European integration. In 2014, the ‘Schengen Governance Package’, which alters the rules of the Schengen co-operation, came into force. It is a response to conflict among Member States in maintaining the common zone of freedom of movement. This Policy Brief aims to analyse how this package was developed and to assess whether it represents a suitable response to the conflict and difficulties within the Schengen agreement. The Brief argues that the Governance Package only touches on one part of the problem, namely border controls, whereas it does not deal with solidarity and burden-sharing and hence represents another missed opportunity to improve cooperation in the Schengen Area.

Paper Tiger or Game-Changer? Challenges of and Opportunities for EU Engagement with the Eurasian Economic Union. Bruges Regional Integration & Global Governance Papers (BRIGG) 1/2015.

The Eurasian Economic Union (EEU) started work on 1 January 2015. Considered as Russia’s response to the EU’s Eastern Partnership (EaP), it has been almost ignored in Brussels. However, with the Ukraine crisis and the deteriorating relations with Moscow, some European leaders have begun to reconsider Putin’s proposal for a region-to-region engagement. This paper tries to analyse under which conditions this could represent a long-term solution for a new European order. First, it is argued that the EEU is still far from being a credible international interlocutor. Second, Russia’s commitment to international trade rules and liberalization is questioned, whereas its geopolitical objectives seem predominant. EU engagement with the EEU in Ukraine would mean, in the short term, legitimizing Russia’s vision of a ‘bipolar Europe’ divided in spheres of influence. In the long run, prospects for inter-regional cooperation remain open, but the way to go is long and full of obstacles.

Innovations of the European Central Bank in the Context of Financial and Monetary Integration: A Chinese Assessment. ZEI Discussion Paper C229, 2015

In the 15 years since the introduction of the Euro, the integration process within the European Economic and Monetary Union has seen rapid development in terms of both breadth and depth. Exclusively responsible for the monetary policy of the Eurozone, the European Central Bank has continued to adjust to meet the challenges brought about by these changes. The paper explores financial and monetary integration in the Eurozone and reviews the reasons, specific performance and impact of changes in the European Central Bank’s decision-making mechanisms. The purpose of which is to deepen and expand understanding in academic circles of the European economy and the European Economic and Monetary Union, as well as their development trends.

The European Union’s Regionalism Diplomacy in Africa: An English School Approach. Bruges Regional Integration & Global Governance Papers [BRIGG] #2.2015

This paper proposes an innovative analytical approach to regionalism promotion by the European Union (EU) in Africa. The approach pursues the dual aim of accommodating African approaches to regionalism in EU foreign policy analysis and of expounding the centrality of diplomacy in negotiating a renewed EU-African Union relationship. The concept of ‘regionalism diplomacy’ brings the negotiated and contentious nature of EU regionalism promotion to the fore. The paper espouses contemporary English School thinking about ‘international society’ and argues that EU regionalism promotion cannot just remain the expansion of European regional international society onto Africa. Instead, EU regionalism diplomacy should acknowledge and incorporate the anticolonial pan-African roots of African regionalism. Overall, the EU should seek a more diplomacy-focused, negotiated Africa-Europe interregional relationship. The paper concludes with an outline of a pan-African approach to regionalism diplomacy and avenues for future research.