Spotlight-Europe - March 2015: The EU neighbourhood in shambles. Some recommendations for a new European neighbourhood strategy

Executive Summary. An “arc of instability” stretching from the European Union’s (EU) eastern borders down to the Mediterranean basin has undermined its flagship European Neighbourhood Policy (ENP). This policy was designed to deliver prosperity, stability and democracy to countries surrounding the EU. It has manifestly failed and needs to be radically rethought. Starting with a tabula rasa, the EU should abandon the very concept of a heterogeneous “neighbourhood” in the face of glaring differences among the 16 countries affected, not least because some are uninterested in reform; others may even be failed states. EU member states are themselves pursuing divergent interests and goals. A fundamental review of the ENP should lead to more differentiated, targeted measures to promote “transformational change” within neighbouring states ready to accept it. The EU should offer revised incentives such as participation within the proposed “energy union” or freer trade designed to aid local economic development. It should embrace a wider range of actors, including civil society, promote entrepreneurship and help reform countries’ police and military forces. The review should reassert common EU institutions in negotiating and working with neighbours and give them a central role in preventing and resolving conflicts as well as promoting democratic reform and economic stability. This revised ENP should help underpin the EU’s efforts to forge a genuine Common Foreign and Security Policy.

Flashlight Europe N°7–09 July 2015. Greece After the Referendum: Three Possible Scenarios for the Euro Area

About ten days ago Alexis Tsipras, the Greek prime minister, announced that there was going to be a referendum, and thus terminated the negotiations on a new rescue package unilaterally. Since then the euro area has been plunged into a wholly unprecedented political crisis. Whether or not Greece can re-main in the monetary union is more uncertain than ever, and decisions that can give a new twist to the political and financial situation are being made almost every day. The Greek banks have been closed for over a week. The economic data are deteriorating rapidly. And yet a solution is nowhere to be seen. The No vote in the Greek referendum has not exactly improved the chances of reaching an agree-ment. For the time being the positions seem to have become uncompromising. At the summit of the heads of state and government on 7 July the Greek government was given five days and a “final deadline” in order to come up with viable proposals for reform. Thus the next few days are of crucial im-portance. At the weekend the heads of state and government of all 28 EU member states are going to meet in order to decide the future of Greece. This flashlight europe provides an overview of the events of the last few days, outlines possible scenarios for what may happen in the near future, and identifies factors which may exert an influence in the short term. We are not trying to give an exact forecast or to formulate action recommendations. But we are trying to shed some light on a confusing situation by identifying important patterns and some of the salient factors.

spotlight europe #2015/03 — August 2015: Money or Democracy? Greece and the Euro Dilemma

The negotiations on the third bailout package for Greece are still going on, but the euro area has already paid a high price for it. The compromise on which it is based is clearly very controversial. Some of its critics believe that it does not make sense in economic terms, whereas others point out that it may have an adverse political effect. But what in fact is Greece actually supposed to be doing, and what does all this mean with regard to sovereignty and democracy?

spotlight europe #2015/02—July 2015: A Gulf CSC Could Bring Peace and Greater Security to the Middle East

Wars continue to ravage in Syria, Iraq and Yemen. Refugees are wandering around aimlessly in the Middle East with many fleeing to Europe. Saudi Arabia and Iran are adding fuel to the flames. They are vying for supremacy while remaining highly suspicious of each other. A Conference for Security and Cooperation could help to ease existing tensions. Many years ago the CSCE was a resounding success. It could thus serve as a blueprint with the nuclear agreement with Iran as a starting point of such a venture.

spotlight europe, August 2015: Sustainable Development Goals: Are the rich countries ready?

The Millennium Development Goals have led to tangible progress in many developing countries. Once adopted, the United Nations' new global Sustainable Development Goals will additionally require industrialized countries to implement such standards beginning in 2016. But the world's first comprehensive stocktaking shows that most industrialized nations are a long way from serving as role models for sustainable development.

spotlight europe #2015/01—April 2015: Turbulent Times in the Disunited Kingdom

The general election on 7th May 2015 is not only going to lead to radical changes in the political landscape. Britain will also have to come up with answers to the European, Scottish and English questions. How this can be done is a moot point. At any rate, it is not going to make EU policymaking any easier.

Flashlight Europe N°2–February 2015. “Europe must now get involved in a very big way”

More than three years after al-Gaddafi was overthrown, Libya has still not returned to some semblance of normality. In many places, the Libyan state exists only on paper. No less than two governments and dozens of rival tribes, all with their own militias and armed to the teeth, are trying to come to power. In the midst of this chaos “IS,” the terrorist organization, has now entered the fray. Evidence of this is provided by the brutal murder of 21 Egyptian Copts, which could trigger off a civil war that will pose a threat to the entire region and to Europe. Mirco Keilberth, an expert on Libya, explains what is going on.

Flashlight Europe N°3–April 2015. Greece – What else?

The first hundred days in office have become a benchmark for every new government. Early in May, the Tsipras coalition government will reach this date. Given the difficult financial, economic and social situation in Greece, there was no such thing as a closed season for Alexis Tsipras from day one on, and he himself could not have expected one. After all, his new government acceded office with a political agenda demanding nothing less than an end to austerity and the submission to a reform programme seen as unduly imposed on Greece by its creditors, the EU and the IMF.

Flashlight Europe N°4–May 2015. Listen carefully to the British

Other than many have predicted the general election in the United Kingdom have not led to a hung parliament but the opposite: An absolute majority for David Cameron and his Tory party. Thus, the way is paved for the EU referendum. Cameron has promised to let his fellow citizens decide whether they would like to stay on in the EU or rather leave. Charles Grant, director of the Centre for European Reform, tells us what this means for the UK and its relation to Germany and the European Union.

Flashlight Europe N°5–June 2015. OMT is Monetary Policy and Not Economic Policy

In January 2014, for the first time in its history, the German Federal Constitutional Court submitted several questions to the European Court of Justice (ECJ) in Luxembourg and asked for a preliminary ruling. The questions had arisen within the framework of the OMT case, and the issue was whether or not the OMT (“outright monetary transactions”) programme announced by Mario Draghi, the head of the European Central Bank (ECB), is in compliance with the law of the European Union. The OMT programme (which has be-come well-known because Draghi said “what-ever it takes to preserve the euro” when he unveiled it) plays an important role in the stabilization of the euro area. It means that the European System of Central Banks will be empowered to engage in unlimited buying of government bonds issued by certain Member States if and as long as these Member States are simultaneously taking part in a European rescue or reform programme (under the EFSF ot the ESM). Hitherto the OMT has not been implemented. Nonetheless a suit contesting its legality was filed with the Federal Constitutional Court. The European Court of Justice now had to decide whether or not the activities of the ECB were in compliance with European law. How-ever, the ECJ had to take into account the prior assessment of the Federal Constitutional Court. In its submission the Federal Constitutional Court made it quite clear that it was of the opinion that there has been a violation of European law. But at the same time it did not exclude the possibility that the ECJ set up legal conditions for OMT in order to avoid a violation of European law.

Flashlight Europe N°6–June 2015. Waiting for the Five Presidents’ Report on the Future of the Monetary Union: What do we need to know?

At the European Summit on 25-26 June Jean-Claude Juncker, the President of the European Commission, will be presenting a report on the future of the Economic and Monetary Union (EMU). It has been drawn up by the presidents of the EU Commission, the European Council, the European Central Bank, the European Parliament, and the Eurogroup, and is a sequel to the “Four Presidents’ Report” on the same topic that was compiled without the participation of the President of the European Parliament and presented in 2012. In this Flashlight we provide answers to key questions about the forthcoming report.

spotlight europe #2015/04—October 2015: A Fiscal Union for Europe – Building Block and Not a Magic Bullet

The dramatic negotiations with Greece in the past few months have been a telling reminder of the weaknesses of the euro area. Most of the commentators are of the opinion that if the monetary union is going to be crisis-resistant and stable in the long term, certain very important elements will have to be changed. However, there is little or no agreement when it comes to specifying the "what" and the "how". In particular there are heated debates about the right steps to further integration in the area of fiscal policy. "Fiscal union can create stability only if it includes both credible budgetary rules and some kind of risk sharing", argue Katharina Gnath and Jörg Haas in the latest spotlight europe. However, "whilst it is an important and effective way of stabilizing the euro area, it should not exclude the use of other instruments."

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.

The EU deal to avoid Brexit: Take it or leave. CEPS Special Report No. 131/February 2016

Beyond the drama of the European Council summit of 18-19 February 2016, what became clear was the fundamental desire on the part of the leaders of all 28 EU member states to agree a deal on the British government’s demands for a renegotiated settlement on the UK’s relationship within the European Union. The deal has provided David Cameron with the political capital he needed to call a date for the in/out referendum and to lead a campaign for the UK to stay in the EU. Yet, for all the technical reforms packed into it, the deal is neither a crowd pleaser nor a vote winner. It does, however, mark a watershed acknowledgement that EU integration is not a one-directional process of ‘ever closer union’. In this CEPS Special Report, Stefani Weiss and Steven Blockmans analyse the substance of the “Decision of the Heads of State or Government, meeting within the European Council, concerning a New Settlement for the United Kingdom within the European Union” and shed light on its legal character. They contextualise this EU deal to avoid Brexit, and draw on the conclusions reached in a simulation of European Council negotiations between representatives of think tanks in the European Policy Institutes Network (EPIN), conducted by CEPS and the Bertelsmann Stiftung in October 2015.

Measuring the Modern Social Market Economy. Future Social Market Economy Policy Brief #2012/04

The “Index of Modern Social Market Economies” (MSME Index) defines and measures the features of a modern social market economy in international comparison. In contrast to other indices that measure economic performance, the MSME Index takes an institutional approach, outlining a system of essential institutions and measurable indicators for the construction and assessment of modern social market economies. Among other insights, the index could guide the European Union toward achieving the “highly competitive social market economy” that it defines in the Lisbon Treaty as its desired economic order.