The Economics of State Aid for the Rescue and Restructuring of Firms in Difficulty: Theoretical Considerations, Empirical Analysis and Proposals for Reform. Bruges European Economic Research (BEER) Papers 27/September 2013

State aid for rescue and restructuring (R&R) of companies in difficulty causes a significant distortion of competition. It prevents the market from eliminating inefficient companies. Because of this, the European Commission has to be specially strict when it assesses rescue or restructuring aid. This paper examines recent cases of corporate restructuring partly funded with public money. It explains the main aspects of the current guidelines which are applicable to R&R State Aid and establishes a theoretical framework for the economic assessment of R&R aid. It then analyses decisions adopted by the European Commission concerning R&R state aid during the period 2000-2013. It finds that there is little economic rationale in the granting of R&R aid. The paper concludes by applying the lessons drawn from the empirical analysis to the anticipated revision of the R&R guidelines in the context of the State Aid Modernisation process.

The Emergence of a Network of ‘European Embassies’: Increasing Cooperation between EU Delegations and Member State Diplomatic Missions. EU Diplomacy Paper No. 10, December 2014

Five years after the entry into force of the Treaty of Lisbon and at the end of the first mandate of the High Representative of the Union for Foreign Affairs and Security Policy/Vice-President of the European Commission (HR/VP), this analysis provides an in-depth view of the on-going institutional socialisation between Member State Embassies and EU Delegations. Specifically, it focuses on the Member States’ perceptions of the role of EU Delegations. These perceptions can back up or restrain the EU Delegations in fulfilling their mandate. More precisely, the paper examines to what extent the socialisation between EU Delegations and EU Member State Embassies helps the Delegations to fulfil their mandate in bilateral diplomacy. It argues that EU Delegations are still under dynamic processes of institutional socialisation with the Member States’ Embassies which increasingly accept and expect EU Delegations’ actions. The post-Lisbon context of EU Diplomacy is consolidating a primus inter pares role of Delegations being central hubs coordinating and implementing EU policies on the spot.

Georgian dilemmas. Between a strong state and democracy. Point of View No. 29, July 2012

No abstract.

Ending the State-Building Impasse: What Can Be Learned from Previous EU Enlargements that Might Offer Solutions for Bosnia and Herzegovina. ACES Working Paper No. 10, 2007

On the basis of the success of the two previous waves of European Union enlargement to post-communist states, EU accession is the international community's solution for ending the state-building impasse in Bosnia and Herzegovina. Through a literature review of analysis of the recent EU enlargements, this paper compares those countries' experiences with the current situation in Bosnia, and raises questions about the ability of the EU to address state-building issues through the accession process. The paper concludes that the previous enlargements do not provide a model for state-building in Bosnia. Because the EU's attempts to help along the process of state building in Bosnia is a new type of policy project, the paper proposes how the enlargement process might be adapted to address the specific problems in Bosnia, particularly in terms using human rights norms to compel Bosnian leaders to adopt necessary reforms.

Labor Market Policy Decentralization in Germany, the United Kingdom and Italy - Dynamics and Reasons. ACES Working Papers No. 5, 2008

This article argues that welfare-to-work or activation policies, which have been adopted across a range of OECD countries during the last two decades, do not only have led to changes in the substance of the welfare state but also to transformations in its institutional configuration. This institutional transformation includes the spatial reconfiguration of the welfare state, which has given new roles to the supra-national, national, and sub-national levels of government as well as private actors in the management and creation of labor market policies. By bringing institutions into these debates, this article seeks to expand the literature on welfare-to-work and activation as to date authors working on this topic have said very little about the degree, types, and reasons for the spatial re-configuration of welfare-to-work policies across different states. To fill a gap in the literatures on changes in the welfare state and its territorial configuration in particular, we compare trends in the re-configuration of welfare-to-work policies in Italy, Germany and the United Kingdom. We find that there is a cross-national trend, when it comes to the institutional effects of the implementation of activation. These trends bear a tension between decentralization and centralization, as both central and sub-national levels of government have acquired new responsibilities to implement the activation paradigm.

Autonomy in the global era: Euro-regionalism and new policy spaces in education. ACES Working Papers, August 2010

Framed by a critical discussion of methodological nationalism, this paper explores the intersection of new and evolving regional, central state, and supranational education policy spaces through examples drawn from post-Franco Spain. This work is situated within the broader literature on the development of a European Education Policy Space, which aims to understand changing governance structures in European education (cf. Grek et al., 2009; Lawn & Lingard,2002; N6voa & Lawn, 2002). Using policy documents since 2000 and interview data, the paper first examines Spanish and regional (Catalan) education policy related to devolution, namely Catalonia's recently revised Statute of Autonomy. The paper then places devolution in Spain and Catalonia in a broader context of Euro-regionalism, which has deepened and legitimized regional autonomy. Together these shifts in educational governance and the development of new education policy spaces have promoted a concept of the multi-scalar, European "ideal citizen" (Engel & Ortloff, 2009). The last section presents an overview of the recent influx of immigrants into Catalonia and Spain, exploring whether and to what extent recent education policy promoting the "ideal citizen" has taken non-European immigrants into account.

The finance-welfare state nexus. ACES Cases No. 2013.1

At the height of the financial crisis, the Western welfare state prevented a repeat of the Great Depression. But there were also suggestions that social policy had contributed to the crisis, particularly by promoting households’ access to credit in pursuit of welfare goals. Others claim that it was the withdrawal of state welfare that led to the disaster. Against this background that motivated our interest, we propose a systematic way of assessing the relationship between financial market and public welfare provisions. We use structural vector auto-regression to establish the causal link and its direction. Two hypotheses about this relationship can be inferred from the literature. First, the notion that welfare states ‘decommodify’ livelihoods or that there is an equity-efficiency tradeoff would suggest that welfare states substitute to varying degrees for financial market offers of insurance and savings. By contrast, welfare states may support private interests selectively and/or help markets for households to function better; thus the nexus would be one of complementarity. Our empirical strategy is to spell out the causal mechanisms that can account for a substitutive or complementary relationship and then to see whether advanced econometric techniques find evidence for the existence of either of these mechanisms in six OECD countries. We find complementarity between public welfare (spending and tax subsidies) and life insurance markets for four out of our six countries, notably even for the United States. Substitution between welfare and finance is the more plausible interpretation for France and the Netherlands, which is surprising. Data availability constrains us from testing the implications for the welfare state contribution to the crisis directly but our findings suggest that the welfare state cannot generally be blamed for the financial crisis.

The UN General Assembly Vote: Upgrading the Status of Palestine and Its Implications for a Possible Role of the ICC. IES Policy Brief Issue 2013/06 • June 2013

On 29 November 2012, the General Assembly of the United Nations (UN) voted overwhelmingly to accord Palestine ‘Non-Member Observer State’ Status in the UN. In the first part of this Policy Brief, the implications of upgrading the status of Palestine with regard to the possible role of the International Criminal Court (ICC) will be assessed. In April 2012, the Office of the Prosecutor of the ICC declined to accept jurisdiction for acts committed on the territory of Palestine since 1 July 2002, justifying its decision based on the fact that Palestine had, at the time, only the status of an ‘Observer Entity’ at the UN. Subsequently, it will be analysed if the Palestinian pursuit of its cause before the ICC can be considered as an effective lawfare strategy or rather as a poisoned chalice.

State Aid and Public Service Broadcasting How Future-proof is the Remit of Public Broadcasting Organisations? IES WORKING PAPER 1/2009

The European Commission’s interference through state aid rules with the Member States’ support for public service broadcasting is not undisputed. Member States, public broadcasters and numerous academics fear that State aid control might limit the public service remit and, hence, the multi-platform and holistic role of public broadcasters in the converging media industries. This paper assesses to what extent the fear for Commission intervention is, indeed, justified. It starts with the assumption that the transformation from public service broadcasting to public service media is vital for the European democratic society. The paper leads to the observation that, in fact, European State aid policy might contribute to such a necessary and urgent transformation, instead of threatening it. The paper consists of three main parts. Firstly, the legal constraints and margins of the Community’s State aid framework are discussed. Secondly, the application of the rules to a selection of public broadcasting cases is analyzed. Finally, some conclusions are drawn from the analysis.

Putin: The morally depraved degradation of a strong state leader. CEPS Commentary, 31 March 2015

In a new CEPS Commentary, Michael Emerson calls for an end to diplomatic euphemisms in describing Putin’s tragic degradation of Russia, its political regime and society. The assassination of Boris Nemtsov on February 27th signals one more step down this dreadful path.

Re-designing the European Climate and Energy policies post-2020. European Policy Brief No. 29, March 2014

Ensuring the sustainability, security and cost-competitiveness of energy supplies for the EU citizens are the main objectives of the EU climate and energy policy, which remains high on the EU agenda. The next European legislature will have the difficult task to reconcile these different objectives into a comprehensive 2030 framework for climate and energy policies. Taking into account the changing energy dynamics, this paper analyses thus the state of play of these objectives today in order to better understand how the 2030 framework for climate and energy policies should be designed.

The summit of our ambition? European defence between Brussels and Wales. Egmont Security Policy Brief No. 55, March 2014

When they meet at NATO’s Wales Summit in Newport on 4-5 September, the European Heads of State and Government should not see this as the first chapter of a new book, but as the next chapter of an existing one. The previous chapter was their meeting in Brussels last December for the European Council. The title of the book is European defence.

The Mirage of the State: Why the West has failed in Afghanistan, Iraq, Libya, Mali and Central African Republic? Jean Monnet/Robert Schuman Paper Series Vol. 14 No. 15, July 2014

The state still matters. However, the members of the Euro-Atlantic community may be misinterpreting this crucial baseline prior launching their military interventions since 2001. The latest violence and collapse of the state of Iraq after the invasion of Northern Iraq by a radical Sunni Muslim terrorist group, so-called Islamic State of Iraq and Syria (ISIS), demonstrate once again the centrality and requirement of a functioning state in order to maintain violent forces to disrupt domestic and regional stability. Since 2001, the US and its European allies have waged wars against failed-states in order to increase this security and national interests, and then have been involved in some type of state-building.1 This has been the case in Afghanistan, Iraq, Libya, Mali, and Central African Republic (CAR). France went into Mali (2012) and CAR (2013), which preceded two European Union military and civilian Common Security and Defense Policy missions (CSDP), in order to avoid the collapse of these two states. The threat of the collapse of both states was a concern for the members of the Euro-Atlantic community as it could have spread to the region and causing even greater instabilities. In Mali, the country was under radical Islamic pressures coming from the North after the collapse of Libya ensuing the 2011 Western intervention, while in CAR it was mainly an ethno-religious crisis. Failed states are a real concern, as they can rapidly become training grounds for radical groups and permitting all types of smuggling and trafficking.2 In Mali, France wanted to protect its large French population and avoid the fall of Mali in the hands of radical Islamic groups directly or indirectly linked to Al-Qaeda. A fallen Mali could have destabilized the region of the Sahel and ultimately affected the stability of Southern European borders. France wanted to avoid the development of a safe haven across the Sahel where movements of people and goods are uncontrolled and illegal.3 Since the end of the Cold War, Western powers have been involved in stabilizing neighborhoods and regions, like the Balkans, Africa, and Middle East, which at the exceptions of the Balkans, have led to failed policies. 9/11 changes everything. The US, under President George W. Bush, started to wage war against terrorism and all states link to it. This started a period of continuous Western interventions in this post-9/11 era in Afghanistan, Iraq, Libya, Mali and CAR. If history has demonstrated one thing, the members of the Euro-Atlantic community are struggling and will continue to struggle to stabilize Afghanistan, Iraq, Libya, Mali and Central African Republic (CAR) for one simple reason: no clear endgame. Is it the creation of a state à la Westphalian in order to permit these states to operate as the sole guarantor of security? Or is the reestablishment of status quo in these countries permitting to exit and end Western operations? This article seeks to analyze Western interventions in these five countries in order to reflect on the concept of the state and the erroneous starting point for each intervention.4 In the first part, the political status of each country is analyzed in order to understand the internal and regional crisis. In a second time, the concept of the state, framed into the Buzanian trinity, is discussed and applied to the cases. In the last part the European and American civilian-military doctrines are examined in accordance with their latest military interventions and in their broader spectrum.

Europe as International Actor: Maximizing Nation-State Sovereignty. CES Germany & Europe Working Papers, No. 06.3, 1996

The continually increasing literature on foreign- and security-policy dimensions of the European Union (EU) has provided no remedy for the widespread helplessness in gaining a purchase on Europe as an international actor. The basic hindrance to understanding this policy comes from an all-too-literal interpretation of the acronym involved: the CFSP is understood as a total or partial replacement of the nation-states' foreign and security policy. This article aims to point the way to a new understanding of the CFSP in which this policy is not based on the integration of nation­ state foreign and security policy. I suggest that the proper way to grasp the phenomenon of the CFSP is to describe it as an international regime whose goal is to administer links between economic integration and foreign- and security­ policy cooperation in the sense of maximizing the sovereignty of member states. This requires, on the one hand, the prevention of "spillovers" from the economic area that could interfere with the foreign- and security-policy indepen­ dence of member states. On the other hand, it demands applying the EU's economic potential to reinforce the foreign- and security-policy range of member states. Due to the logic of this policy, CFSP priorities and fields of ac­ tion differ profoundly from those of a national foreign and security policy. Expectations on the evolution of the CFSP must be aware of these basic characteristics of this policy.

Recent Changes in European Welfare State Services: A Comparison of Child Care Politics in the U.K., Sweden, Germany, and the Netherlands. CES Germany & Europe Working Papers, No. 07.6, 1997

This paper examines recent policies and politics of services, in particular child care services in European welfare states. It is argued that social (care) services are becoming an increasingly political issue in postindustrial societies and are at the very center of welfare-state restructuring. Some countries have recently developed new policy pro­ grams for child care-but there are important differences among these programs. To understand these differences as well as some common features, the paper argues that it is necessary to examine the institutional organization of child care and short-term political factors as well as the rationales articulated in political debates to support or im­ pede various policies. The paper concludes that a comprehensive system of child care provisions is still far off in most countries, despite a rhetoric of choice and postindustrial care and labor-market patterns.