Europe’s potential in addressing maritime security in Asia: a Japanese view. EPC Commentary, 29 June 2016

The level of interest in, and concerns about, Asia’s maritime security situation have increased substantially in Europe in the past few years, reflecting growing tensions particularly in the South China Sea (SCS). China’s actions there – island-building, reclamation and militarisation – are frequently making headlines in newspapers these days, including in Europe.

Estrangement Day: The implications of Brexit for the EU. CEPS Commentary, 27 June 2016

In a post-imperial burst to define the boundaries of its sovereignty, Britannia is ruling the waves again, albeit in the form of air time devoted to the fallout from its referendum vote rather than in a show of force from its flotilla. It was with disbelief and sorrow that the UK’s partners in Europe and the rest of the world woke up to the news of the British Leave vote in the referendum on its EU membership. The prospect of a Brexit has sent shock waves throughout the international financial and political system and is set to occupy media debate for months to come.

A Fresh Start for the European Union after Brexit. CEPS Commentary, 29 June 2016

I am still trying to process the shock of the UK referendum, which has dealt a historic blow to the European Union and has alerted us to the danger of the wave of anti-establishment and anti-elite sentiments shaking up developed nations, and bringing about disastrous decisions that cannot be easily reversed. These movements are present in many European countries; we cannot underestimate the dangers of tumbling down the slippery slope of nationalism, which could put the very survival of the Union into question. A response from the EU, or from a smaller circle of its founding or main members, is necessary – as long as we can identify meaningful goals.

From apathy to nationalist mobilisation: politics makes a comeback in Armenia. OSW COMMENTARY NUMBER 215 | 08.06.2016

In the military dimension, the Four-Day War in Nagorno-Karabakh (2–5 April 2016) changed little in the conflict zone. It has, however, had a significant impact on the situation in Armenia. The country was shocked out of the political malaise that had been the dominant mood in the last few years, and the Karabakh question, which used to animate political life in the late 1980s and early 1990s, once again became a driving force behind developments. In the internal dimension, the renewed fighting galvanised the political scene, triggered a rise in nationalist sentiments, mobilised the public and consolidated it around the Karabakh question, overshadowing the frustrations caused by the country’s difficult economic situation. In the external dimension, the war, which was viewed as Moscow-endorsed Azerbaijani aggression, undermined people’s trust in Russia and the Armenian-Russian alliance. It also made it clear for Armenians how uncertain the Russian security guarantees were and exacerbated their feelings of vulnerability and isolation on the international stage.

Business under supervision – pathologies serving the system of power in Russia. OSW COMMENTARY NUMBER 212 | 31.05.2016

The relations between Russia’s authorities and business circles are subordinated not so much to rational economic calculations as to the interests of political elites. The key interest in this case is maintaining the current model of government. The formal and informal supervision of business by law enforcement agencies is an important element of Russia’s economic reality. Despite the rhetoric of high-ranking officials, intended to suggest that the state is taking care of businesspeople’s interests, it is evident that there is no will to devise a systemic solution to the most urgent problems, including the state institutions’ disrespect for the rights of ownership.

The Effects of Sanctions and Counter-Sanctions on EU-Russian Trade Flows. CEPS Commentary, 5 July 2016

After Russia annexed Crimea in early 2014 and then intervened, manu militari, in the Eastern part of Ukraine, the European Union wanted to show its disapproval and put pressure on Russia to change its behaviour. A wide variety of measures were taken, including the imposition of individual restrictions, such as asset freezes and travel bans, but also the suspension of development loans from the EBRD. But the EU (together with the United States) also took, in July and September 2014, a set of broader measures: limited access to EU primary and secondary capital markets for targeted Russian financial institutions and energy and defence companies; export and import bans on trade in arms; an export ban for dual-use goods and reduction of Russia’s access to sensitive technologies and services linked to oil production.

Europe cannot afford people in bad health - Economics of health and care as a guide for investments. EPC Commentary, 4 July 2016

It is widely accepted that a new way of looking at Europe’s health sector is necessary if we are to maintain universal health coverage. Financial resources are limited, and the sustainability of Europe’s health systems is under threat. Economic growth is slow, health expenditures outpace GDP growth, public budgets are under strain and demographics – with a growing aging population – are putting pressure on the younger tax-paying generations. In an effort to ensure the sustainability of Europe’s health systems, reforms, underpinned by a new understanding of the economic value of health for individuals and society is needed.

Georgia and the EU – maintaining the momentum. EPC Commentary, 1 July 2016

The Association Agreement (AA) between Georgia and the European Union (EU), signed in June 2014, will enter into force on 1 July 2016 after having been ratified by the parliaments of the 28 member states. The AA, with its Deep and Comprehensive Free Trade Area (DCFTA), foresees far-reaching political and economic integration with the EU by significantly deepening political and economic ties. Many provisions of the agreement have already begun to be implemented, and some are even beginning to give tangible results, such as the opening up of European markets to Georgian exports. Yet this benchmark moment was somehow overshadowed by the EU’s failure to extend visa free travel to Georgians, as had been expected, despite acknowledging that Georgia had fulfilled all the criteria that had been set. Whilst this was quickly explained by the EU as being only a temporary setback, based on reasons more related to other countries, such as Turkey and Ukraine, with which similar arrangements were being negotiated, it exposed the fragility of maintaining the necessary momentum in Georgia-EU relations.

Europe in limbo while the UK descends into chaos. EPC Post-Summit Commentary, 30 June 2016

The EU Summit and the separate meeting of the EU27 without the UK on 28/29 June 2016 demonstrated that the EU is in limbo. Following the initial shock, frustration and anger after the unexpected result of the UK ‘in/out’ referendum, the future relationship between the European Union (EU) and the United Kingdom (UK) monopolised the meetings of EU leaders. The EU has entered uncharted waters and leaders are struggling to figure out how exactly to deal with the manifold (potential) consequences of the ‘Brexit crisis’. Despite the many uncertainties, the EU27 managed to reach some common lines, trying to convey four key messages, although the final outcome of the crisis and its effects on the Union’s overall future are still very unclear:

Procedural steps towards Brexit. CEPS Commentary, 13 July 2016

Introduction. With the dust barely settled on the Brexit referendum, a messy legal picture has emerged. Among the many challenges are what, when and how exactly the UK’s withdrawal from the EU should be negotiated. In truth, the way the divorce procedure has been regulated under Article 50 TEU leaves much to be desired. Gaps left by the EU legislator will have to be filled rather swiftly by political elites and lawyers. To the EU and its member states, only the rudimentary aspects of withdrawal are clear. In the UK, however, even the staunchest proponents of Vote Leave seem to have been caught off-guard, with no actionable plan for how to handle Brexit – only visions of alternatives to EU membership that are unlikely to be acceptable to the EU27. The fact that alternatives to membership had not been considered seriously prior to the referendum is perplexing, and underlines the impression that the entire exercise was a stroke of irresponsible political chutzpah.

Brexit will deepen the fault lines within the EU over mobility. CEPS Commentary, 12 July 2016

Much has been made of the divide that opened up in 2015 between eastern and western member states as a result of acrimonious discussions on how to handle the refugee crisis and distribute asylum applicants across the EU. Against the prevailing political sentiment in certain member state capitals, Germany and France pushed through a plan devised by the European Commission to relocate 120,000 refugees, by a qualified majority vote in the Council. Rather than creating an east/west divide, however, the vote split the group of (relatively) new Central and Eastern European countries (CEECs) of the EU into two factions: Romania, Czechia, Slovakia and Hungary voted against the plan, whereas several other CEECs, namely Poland, Bulgaria and the Baltic states, joined the controversial motion on the side of the other (northern, southern and western) member states. Finland abstained. Few member states have shifted their positions in the meantime. If anything, in fact, they have coalesced among the Visegrad 4, following a change of government in Poland; and they have hardened, as a result of new proposals by the Commission to fine member states that refuse to accept refugees. With Hungary’s referendum on the Commission’s relocation scheme scheduled for October 2nd, tensions are set to intensify even further.

Why the future of European renewables policy may be decided in Washington and not in Brussels. CEPS Commentary, 13 July 2016 Wednesday, 13 July 2016

In the last few years, several EU member states have reduced support to renewable energy, leading to numerous claims that these policy changes retroactively affected existing investments and that the practice of ‘grandfathering’ should have been observed. Among these, the case of Spain stands out, both due to the material size of the cuts and the large volume of investments affected, although the Czech Republic, Bulgaria, Poland, Romania and Italy have also introduced reforms with deleterious consequences to their renewable energy sectors.

Is the EU turning a blind eye to the 'new strongmen' of the Balkans? CEPS Commentary, 11 July 2016

"We are working on a daily basis with each and every one, to make steps towards the European integration of the Western Balkans." High Representative/Vice President Federica Mogherini Western Balkans Summit, Paris, 4 July 2016

Demographics and Brexit: A deeper problem for the EU? CEPS Commentary, 8 July 2016

There has been much debate about the demographic factors that contributed to the outcome of the UK’s referendum on its membership of the EU. Two aspects command special attention. First, there are marked differences between young and old generations in the preferences shown for remaining in the EU. While the former predominantly voted to remain, a great majority of the latter voted to leave. On the other hand, voter turnout revealed the opposite trend: about 83% of UK citizens aged 65 and older voted, whereas only 36% of those aged 18-24 cast their vote (Figure 1).

Soft or hard Brexit? EPC Commentary, 15 July 2016

The EU is in uncharted waters when it comes to negotiating the UK’s exit from the Union. Creative and flexible thinking will be required from all parties if an orderly departure is to be managed. The alternative is a fractious, mutually damaging and disorderly Brexit. This commentary argues for a short-term, time-limited agreement to stabilise the EU-UK relationship and to allow breathing space to develop the terms of a long-term strategic partnership.