Sitting on the fence: Swedish defence policy and the Baltic Sea region. OSW Point of View Number 33, April 2013

Sweden finds itself in the midst of the most heated debates about defence policy and the direction of military reforms since the end of the Cold War, as Stockholm faces the challenge of finding a new military security formula. From the Swedish point of view, the post-Cold War strategic timeout in Europe is coming to an end. The international environment is reverting to a situation in which the use of force among states is no longer an improbable scenario. Stockholm cannot rule out the emergence of crises or conflicts in Northern Europe in the future, which could directly or indirectly affect Sweden. In this context, the transformations of Sweden’s defence policy over the past twenty years have become a problem. Sweden has moved from neutrality, i.e. non-involvement on any side of an armed interstate conflict, to non-alignment, whereby it stays outside military alliances and freely shapes its policies during wartime. It has joined the European Union and co-operates closely with NATO on foreign missions. Its ability to defend its own territory, however, has diminished.

Jihad vs The New Great Game: Paradoxes of militant Islamic threats in Central Asia. OSW Point of View (Policy Brief), January 2010

Threats linked to Islamic fundamentalism have been hanging over Central Asia for almost two decades. Many believe that militant Islam has played a significant part in each major political crisis in the region, and Central Asia is perceived as an almost perfect environment for its further development. Such a picture of this region is a result of serious abuses and manipulations. The real threat posed by militant Islam seems to be rather limited, and its roots lie outside Central Asia. This region is unlikely to become a key front of global jihad. Nevertheless, this does not guarantee peace and safety in Central Asia, as the Islamic threat remains an element of the geopolitical rivalry in the region – the ‘New Great Game’.

European Integration and Europeanisation: Benefits and Disadvantages for Business. Bruges European Economic Policy (BEEP) Briefing 29/2013

European integration is a project of great economic importance for the 500 million consumers and 21 million companies in Europe. With the economic borders between Member States removed, Europeanisation becomes inevitable for companies. The paper proposes a framework to analyse the benefits and disadvantages for business that come with the process of European integration, structured according to the logic of the four fundamental freedoms of movement within the Internal Market (freedom of movement of goods, services, capital and people) complemented by the section on technology and innovation, and the general EU regulatory environment. Whereas the business decisions need to be taken on a case-by-case basis, taking into consideration firm’s own capabilities and resources as well as industry specificities, several recommendations for companies willing to Europeanise are made, based on an analysis of the regulatory macro-environment of the EU. Above all, any company willing to be successful in the EU has to become a learning organisation, responsive to the advancements of the macro-environment. The ability to anticipate the regulatory developments and to adjust one’s own business and corporate strategy accordingly is the key to achieving sustainable competitive advantage in the European Union.

(EU) friends: NGO cooperation and involvement across multi-level policy processes. IES Working Paper 1/2007

A growing body of research focuses on the expanding roles of NGOs in global and supranational governance. The research emphasizes the increasing number of participation patterns of NGOs in policymaking and cross-national cooperation. It has produced important insights into the evolving political role of NGOs and their growing involvement in governance. The focus on activities at a transnational level has, however, lead to the virtual exclusion of research on other levels of governance. It has not been possible to tell whether the locus of their political activity is shifting from the national to the transnational environment, or whether it is simply broadening. Missing from the literature is an examination of the variety of cooperative relationships, including those between NGOs, which impact policy involvement across different levels of governance. To bridge this gap, I address two key questions: 1) Is the strategy of cooperation among NGOs a common feature of social movement activity across levels of governance, and if so, what does the structure of cooperation look like? 2) What impact, if any, does cooperation have on the expanding political involvement of NGOS, both within and across levels of governance? Using data from an original survey of migrant and refugee organizations across much of Europe, I test several hypotheses that shed light on these issues. The findings broadly indicate that 1) Cooperation is a widely-used strategy across levels of governance, 2) Cooperation with specific sets of actors increases the likelihood of NGO involvement at different levels of governance. Specifically, cooperation with EU-level actors increases the likelihood of national-level involvement, and 3) NGOs are more likely to extend their involvement across a range of institutions if they cooperate with a broad range of actors.

The Sahel Crisis: Where do European and African Perspectives Meet? IES Policy Brief Issue 2013/02/March 2013

Summary. The crisis in Mali has brought the Sahel to the centre of international attention. This fragile region not only suffers from longstanding development challenges, but also from an acute security vacuum that has triggered military intervention. Many questions have arisen as a consequence of the crisis. Has the European Union the ability to cope with such a complex and dynamically evolving security environment? How have divergent views on the political roadmap to be adopted, and the lack of resources at the African level, impacted the crisis response? Can the different players involved agree on what are the most pertinent needs and challenges to be addressed? Are they ready for long-term engagement? Can regional organisations effectively collaborate and are they able to successfully integrate different agendas? Following a conference organised by the Institute for European Studies, the Egmont Institute and the Observatoire de l’Afrique on these questions this Policy Brief builds on the findings of the conference and provides an analytical overview of the regional crisis by focusing on the main challenges facing the Sahel, the local and regional dynamics at play and the military and security response.

Reform momentum and its impact on Greek growth. Bruegel Policy Contribution 2015/12, July 2015

Greece has an imperfect track-record of structural reform implementation. However, the poor growth outcome of the Greek programmes is also a consequence of the timing and composition of reforms, which were not optimally geared towards a speedy transition to a new growth model based on the private sector. While the main responsibility for this lies with the Greek authorities, international institutions share the responsibility for the poor growth-enhancing effect of reforms. In the current context, further structural reform efforts should be mainly targeted at supporting Greece's speedy return to solid growth rates. This is not only because poverty and unemployment have reached very high levels, but also for political economy reasons: reforms must quickly be seen to be working in order to buttress the consensus in favour of reform. Further efforts should be made to improve Greece’s business environment and to liberalise product markets, in addition to shifting taxation away from labour and towards consumption. Reforms to improve the quality of institutions should continue and are very much needed in the Greek setting, while taking into account that their demanding implementation might use up administrative capacity and their impact on growth will only be seen over long time horizons.

The Political Economy of the 2014-2020 Common Agricultural Policy: An Imperfect Storm. CEPS Paperback, 17 August 2015

After five years of debates, consultations and negotiations, the European institutions reached an agreement in 2013 on the Common Agricultural Policy (CAP) for the 2014-2020 period. The outcome has major implications for the EU’s budget and farmers’ incomes but also for Europe’s environment, its contribution to global climate change and to food security in the EU and in the world. It was decided to spend more than €400 billion during the rest of the decade on the CAP.The official claims are that the new CAP will take better account of society's expectations and lead to far-reaching changes by making subsidies fairer and ‘greener’ and making the CAP more efficient. It is also asserted that the CAP will play a key part in achieving the overall objective of promoting smart, sustainable and inclusive growth. However, there is significant scepticism about these claims and disappointment with the outcome of the decision-making, the first in which the European Parliament was involved under the co-decision procedure. In contrast to earlier reforms where more substantive changes were made to the CAP, the factors that induced the policy discussions in 2008-13 and those that influenced the decision-making did not reinforce each other. On the contrary, they sometimes counteracted one another, yielding an ‘imperfect storm’ as it were, resulting in more status quo and fewer changes. This book discusses the outcome of the decision-making and the factors that influenced the policy choices and decisions. It brings together contributions from leading academics from various disciplines and policy-makers, and key participants in the process from the European Commission and the European Parliament.

Syria: An end to the hands-off policy. CEPS Commentary, 31 August 2015

After a year of focusing on the nuclear deal with Iran, international diplomacy is returning to consider resolution of the civil war in Syria, with each side now a little less firm in their positions as the situation on the ground deteriorates further. In this new CEPS Commentary Steven Blockmans sheds light on the highly complex and volatile environment in the Middle East, concluding that failure to seize the new diplomatic momentum to resolve this conflict will likely mean that Syria falls into the hands of IS.

Towards a sustainable European economy. EPC Policy Brief, 13 October 2015

Europe is faced with interlinked economic, ecological and climate crises. As identified in the European Environment Agency's The European Environment – state and outlook 2015 report1 , Europe is increasingly affected by global trends that come with positive and negative impacts. Some of these it contributes to, some it can try to manage, while others are beyond its control. Regardless, only by anticipating these trends and making a sustainable economy the overriding policy objective, can it aim to maximise the related opportunities and minimise the threats.

Policy Options for Improving the Functioning and Efficiency of the Digital Single Market in the Field of Copyright. CEPS Special Report No. 121, 19 November 2015

This study explores the existing policy problems and the possible options for reforming the EU copyright framework as provided by EU Directive 29/2001 on Copyright in the Information Society (InfoSoc Directive) and related legislation, with a specific focus on the need to strengthen the Internal Market for creative content. We find two main policy problems: i) the absence of a Digital Single Market for creative works; and ii) the increasing tension between the current system of exceptions and limitations and the legal treatment of emerging uses of copyrighted content in the online environment. Without prejudicing a future impact assessment that might focus on more specific and detailed policy options, our analysis suggests that ‘more Europe’ would be needed in the field of copyright, given the existing sources of productive, allocative and dynamic efficiency associated with the current system. Looking at copyright from an Internal Market perspective would, in this respect, also help to address many of the shortcomings in the current framework, which undermine legal certainty and industrial policy goals.

Belarus at a crossroads. Bruegel Policy Contribution Issue 2016/02 January 2016

Highlights: • Since the collapse of the Soviet Union in 1991, Belarus has maintained a largely non-market economic system. This did not prevent rapid growth of its economy over a sustained period up to 2011. However, the period of economic growth in Belarus seems to be over.The factors that underpinned Belarus’s growth, mainly the beneficial external environment, have gradually disappeared. As a result, the country is confronted by the need to start the far-reaching programme of market-oriented economic reforms and macroeconomic stabilisation which it tried to avoid for so long. Reform will not be easy, economically and politically. • The potential hardship facing Belarus could be at least partly cushioned by external assistance, in the first instance from the International Monetary Fund and the World Bank. However, the IMF has relatively fresh memories of the failure of its 2009-10 Stand-By Arrangement (SBA) with Belarus, which provided substantial balance-of payments support, but which was derailed by its too-narrow focus on monetary and fiscal quantitative performance criteria, and by insufficient reform commitment on the Belarusian side. Other donors, such as the European Union, might be reluctant to offer assistance as long as Belarus does not improve its poor human rights record and start some political reforms.

Between nuclear armament and economic pragmatism: Is North Korea facing change? Asia Policy Brief 2013/04, September 2013

The balance a year and a half after the meanwhile second hereditary power transfer to Kim Jong-Un (Kim Chŏng-ŭn), grandson of the founder of the state, is undecided. The breakdown of the system, predicted by many analysts, has not happened yet. Neither have the reforms that were expected from the young man who has supposedly been educated in Switzerland. The country is not in stagnation however – quite the opposite. What has happened in North Korea in the last two years? What development trends are there and how can other countries approach them? These questions are discussed in the light of the tense security-political and humanitarian environment and the corresponding risks in this Asia Policy Brief.

Is there a need for additional monetary stimulus? Insights from the original Taylor Rule. CEPS Policy Brief No. 342, April 2016

Central banks in the developed world are being misled into fighting the perceived dangers of a ‘deflationary spiral’ because they are looking at only one indicator: consumer prices. This Policy Brief finds that while consumer prices are flat, broader price indices do not show any sign of impending deflation: the GDP deflator is increasing in the US, Japan and the euro area by about 1.2-1.5%. Nor is the real economy sending any deflationary signals either: unemployment is at record lows in the US and Japan, and is declining in the euro area while GDP growth is at, or above potential. Thus, the overall macroeconomic situation does not give any indication of an imminent deflationary spiral. In today’s high-debt environment, the authors argue that central banks should be looking at the GDP deflator and the growth of nominal GDP, instead of CPI inflation. Nominal GDP growth, as forecasted by the major official institutions, remains robust and is in excess of nominal interest rates. They conclude that if the ECB were to set the interest rate according to the standard rules of thumb for monetary policy, which take into account both the real economy and price developments of broader price indicators, it would start normalising its policy now, instead of pondering over additional measures to fight deflation, which does not exist. In short, economic conditions are slowly normalising; so should monetary policy.

Financial risks and opportunities in the time of climate change. Bruegel Policy Brief ISSUE 2016/02 APRIL 2016

Real economic imbalances can lead to financial crisis. The current unsustainable use of our environment is such an imbalance. Financial shocks can be triggered by either intensified environmental policies, cleantech breakthroughs (both resulting in the stranding of unsustainable assets), or the economic costs of crossing ecological boundaries (eg floods and droughts due to climate change). Financial supervisors and risk managers have so far paid little attention to this ecological dimension, allowing systemic financial imbalances resulting from ecological pressures to build up. Inattention also leads to missed economic and financial opportunities from the sustainability transition.

Reactive, Slow and...Innovative? Decision-making Structures and Policy Outputs

Consensus democracies like Switzerland are generally known to have a low innovation capacity (Lijphart 1999). This is due to the high number of veto points such as perfect bicameralism or the popular referendum. These institutions provide actors opposing a policy with several opportunities to block potential policy change (Immergut 1990; Tsebelis 2002). In order to avoid a failure of a process because opposing actors activate veto points, decision-making processes in Switzerland tend to integrate a large number of actors with different - and often diverging - preferences (Kriesi and Trechsel 2008). Including a variety of actors in a decision-making process and taking into account their preferences implies important trade-offs. Integrating a large number of actors and accommodating their preferences takes time and carries the risk of resulting in lowest common denominator solutions. On the contrary, major innovative reforms usually fail or come only as a result of strong external pressures from either the international environment, economic turmoil or the public (Kriesi 1980: 635f.; Kriesi and Trechsel 2008; Sciarini 1994). Standard decision-making processes are therefore characterized as reactive, slow and capable of only marginal adjustments (Kriesi 1980; Kriesi and Trechsel 2008; Linder 2009; Sciarini 2006). This, in turn, may be at odds with the rapid developments of international politics, the flexibility of the private sector, or the speed of technological development.