Europe's social problem and its implications for economic growth. Bruegel Policy Brief 2014/03, 1 April 2014

The European Union faces major social problems. More than six million jobs were lost from 2008-13 and poverty has increased. Fiscal consolidation has generally attempted to spare social protection from spending cuts, but the distribution of adjustment costs between the young and old has been uneven; a growing generational divide is evident, disadvantaging the young. The efficiency of the social security systems of EU countries varies widely. Countries with greater inequality tended to have higher household borrowing prior to the crisis resulting in more subdued consumption growth during the crisis. The resulting high private debt, high unemployment, poverty and more limited access to education undermine long-term growth and social and political stability. Policymakers face three main challenges. First, addressing unemployment and poverty should remain a high priority not only for its own sake, but because these problems undermine public debt sustainability and growth. Second, bold policies in various areas are required. Most labour, social and fiscal policies are the responsibility of member states, requiring national reforms. But better coordination of demand management at European level is also necessary in order to create jobs. Third, tax/benefit systems should be reviewed for improved efficiency, inter- generational equity and fair burden sharing between the wealthy and poor.

Supporting Access to Finance by SMEs: Mapping the initiatives in five EU countries. ECMI Research Report No. 9, April 2014

This paper maps the initiatives to support access to finance for small- and medium-sized enterprises (SMEs) that were available at national level in 2012 in the five biggest European economies (Germany, France, the UK, Italy and Spain). This mapping distinguishes initiatives promoted and financed primarily through public resources from those developed independently by the market. A second breakdown is proposed for those sources of finance with different targets, i.e. whether the target is debt financing (typically bank loans at favourable conditions, public guarantees on loans, etc.) or equity financing (typically venture capital funds, tax incentives on equity investments, etc.). A broad set of initiatives has been implemented to close the funding gap of SMEs in these five countries. The total amount of public spending for SMEs, however, has remained well below 1% of GDP. Public subsidisation of bank loans has been by far the most diffused type of intervention. Despite the fact that this strategy might prove to be effective in the short term, it fails to address long-term sustainability issues via a more diversified set of financing tools.

A Financial Markets Policy for the next 5 years. CEPS Commentary, 1 October 2014

Karel Lannoo prefaces his survey of the priorities for the new European Commission in the area of financial markets with a warning that the hangover from the past five years is huge and that public opinion on the role of the financial sector will continue to be critical for some time to come. Implementation and enforcement will need to be followed-up carefully, as any flaws could rapidly attract negative headlines. In this commentary, he finds that three themes stand out: moving back to normal in financial markets regulation, adequate implementation and enforcement, and access to finance. The latter, in particular, should be the overarching theme, in all its dimensions -- access to credit for SMEs, access to capital markets for new ventures and access to finance for households.

Iceland’s contested European Policy: The Footprint of the Past - A Small and Insular Society. Jean Monnet Occasional Paper 01/2013

Introduction. Iceland’s domestic politics and foreign affairs are undergoing drastic changes. After an economic crash, violent protests on the streets of Reykjavik for the first time in Iceland’s history contributed to the defeat of the government. The party system has been altered. A turn has been taken towards Europe after the United States left the island, first by closing its military base in 2006 and then by its clear stance not to assist the country in its economic difficulties. The former close relations with the superpower are unlikely ever to be restored. The EU membership application is placing severe constraints on political parties which are split on the issue and has put in jeopardy the unity of the first left majority in the Icelandic parliament, the Althingi. Society is in a state of flux after an unprecedented economic downscaling and the collapse of almost its entire financial sector – which had boomed rapidly beginning in the mid-1990s. The credibility of politicians, the parliament and the media is in ruins. Iceland’s smallness and its location on the geographical map – one could also say the geopolitical map – has had a profound influence on its domestic and foreign affairs. Iceland is closely associated with the other Nordic states and has adopted many of their domestic characteristics, with important exceptions. On the other hand, the country has come under American influence – geographically, it straddles the Mid-Atlantic rift – and has limited its participation in the European project. Its geographical location in the middle of the North Atlantic has led to a notion that the country’s culture is unique and should be protected by all available means. Politicians continue to play the ‘nationalistic uniqueness’ card with considerable success even though the country has been swept by globalization. Rapid modernization (which only really began in the Second World War with British and American occupations) and sudden engagement with the outside world (which only extended to the general public in the last quarter of the twentieth century) are still slowly but steadily making their mark on the country’s foreign policy. The country’s political discourse and foreign policy still bear the hallmark of the past, i.e. of a small and insular society This paper will address the political developments in Iceland since the 2008 economic crash and place it in a historical context. The aim is to understand Iceland’s present foreign policy and, in particular, the highly contested decision by its government in 2009 to apply for membership of the European Union. The paper is divided into five sections in addition to this introduction and the concluding remarks. First, it starts by explaining the importance in Iceland of a political discourse based on the concept of independence which dates back to the historical narrative of the settlement period. This section will also examine Iceland’s close relations with the other Nordic states – despite important differences between it and the others. Second, the paper will analyse the importance of the party system, i.e. the dominance of the centre-right in Icelandic politics, and the changed nature of the system. Third, it examines how Iceland further distinguishes itself from the other Nordic states in many important features. Fourthly, the paper analyses the country’s three main foreign policy priorities in the post-war period, i.e. extensions of the Exclusive Economic Zone, firm defence arrangements with the US and membership of NATO, and the drive for better market access for marine products – including a partial engagement in the European project. Fifthly, the paper examines how the country’s smallness, in terms of its central administrative capacity, has affected its domestic and foreign policy-making. The concluding section summarizes the main findings concerning the political and historical obstacles that the Social Democratic Alliance faces in its hard-fought battle to change the country’s European Policy.

Russian nationalists on the Kremlin’s policy in Ukraine. OSW Commentary No. 156|24.12.2014

On the Day of National Unity, celebrated in Russia every 4 November, members of nationalist movements organise a so-called Russian March in Moscow. In 2014 the nationalists took part in three competing marches, which illustrated the divisions present in these circles. The reason for these divisions is a difference of opinions on the policy pursued by Russia towards Ukraine. The pro-Russian, Russia-inspired protests in south-eastern Ukraine organised under the slogan of ‘defending’ the Russians living there (the ‘Russian Spring’) and the annexation of Crimea were received enthusiastically by the nationalists and contributed to a consolidation of these circles around the Kremlin which lasted for several months. In spite of this, opinions on the Russian government’s current policy towards the so-called Donetsk and Lugansk People’s Republics have been varied. The most radical groups have demanded that military support be offered, and that the ‘confederation’ of these republics, the so-called ‘Novorossiya’, should be officially recognised. They consider the Kremlin’s policy to have been too soft, and see the signing of the peace agreements in Minsk as a betrayal of the interests of the Russians. For the remaining representatives of nationalist circles, who are not so numerous and are less visible in the public sphere, finding a solution for Russia’s domestic problems remains a priority. Some of them oppose the very notion of Russia’s involvement in the conflict. Since the beginning of the ‘Russian Spring’, the Kremlin has fostered active attitudes among the nationalists and solicited their support, hoping to win a valuable ally. This has boosted hopes in these circles that their political position may be strengthened. The involvement in the fighting in Ukraine has led to a radicalisation of attitudes among the nationalists, and demonstrated that this group is ideologically motivated and has considerable potential for mobilisation. Moreover, the ‘Great Russian’ and anti-Western slogans some of them have propagated are reflected in views displayed by average Russians, who have been influenced by the patriotic enthusiasm which followed the annexation of Crimea. Due to all this, from among all the actors active on the opposition side, it is the nationalists – and not the representatives of the liberal and pro-Western opposition – that have the best prospects for access to the political stage in Russia. It cannot be ruled out that a further strengthening of the radical groups might also be boosted by the possible growing social frustration caused by the economic crisis, which additionally increases the risk of political destabilisation.

The UN General Assembly Resolution on Access to Legal Aid in Criminal Proceedings - an Example for Europe. IES Policy Brief Issue 2013/04 • May 2013

Summary. The EU’s attempts to adopt an EU-wide instrument on the right to access to legal aid in criminal proceedings have not been successful so far. The important issue was originally part of Measure C of the Roadmap for criminal procedural rights,1 but due to political difficulties legal aid was dropped from the agenda. However, on a different plane agreement was reached on this topic as the United Nations General Assembly (UNGA) has adopted the world’s first international instrument dedicated to access to legal aid in December 2012.2 This policy brief argues that the EU should carry on in the ‘spirit’ of these recent developments and adopt a directive providing suspects and defendants with access to legal aid. 1 Council Resolution of 30 November 2009 on a Roadmap for strengthening procedural rights of suspected or accused persons in criminal proceedings, OJ C 295/1, 4 December 2009; hereafter will be referred to this Council Resolution as the ‘Roadmap’; for further information see M. Jimeno-Bulnes, ‘The EU Roadmap for Strengthening Procedural Rights of Suspected or Accused Persons in Criminal Proceedings’, 4 EUCrim (2009), 157-161. 2 United Nations Principles and Guidelines on Access to Legal Aid in Criminal Justice Systems, A/Res/67/187, 20 December 2012; from here on will be referred to this as the ‘Resolution’.

The Racial Equality Directive – from law to practice. IES Policy Brief Issue 2013/07/September 2013

The transposition of the Racial Equality Directive (2000/43/EC) has immensely enhanced legal protection against discrimination on the grounds of racial and ethnic origin throughout the EU. More than 10 years after its adoption, the main challenge identified in many Member States is the enforcement of anti-discrimination laws in practice, in particular with regard to access to justice. Ultimately it is up to the domestic courts to ensure effective implementation of anti-discrimination law. Polls regularly show that the discrepancy between the levels of discrimination experienced and discrimination reported by victims must be seriously addressed. Awareness is low not only among the public but also among the members of the legal professions, leading to under-reporting of discrimination cases. In addition, data that reflect the ethnic or racial composition of the population are scarce which makes it difficult to prove discrimination before the competent authorities. Moreover, certain procedural difficulties that affect access to justice and effective enforcement also stem from the short limitation periods foreseen in legislation, lengthy procedures, evidence, high costs and failures in the provision of legal aid, ineffective sanctions, as well as barriers in the form of language and issues relating to legal standing or legitimate interest. The law remains complex and remedies often inadequate.

Public Procurement in the Transatlantic Trade and Investment Partnership Negotiations. Paper No. 2 in the CEPS-CTR project "TTIP in the Balance" and CEPS Special Report No. 100/February 2015

For more than 20 years, the United States and the European Union have engaged in often-contentious negotiations over access to government procurement. The EU is dissatisfied with the level of procurement that the US has opened under the WTO Government Procurement Agreement and, as a consequence, it does not give the US its most comprehensive coverage. The US has been constrained in responding to the EU’s requests for greater access, especially to state procurement, by both its federal structure of government and by domestic purchasing requirements. At the current time, neither party has proposed a way to break the impasse. This paper reviews the current state of affairs between the US and the EU on government procurement, examining the procurement that they open to one another and the procurement that they withhold. It then proposes a strategy for the two sides to use the TTIP negotiations to move forward. This strategy includes both steps to expand their current commitments in the TTIP, as well as to develop a longer-term approach by making the TTIP a ‘living agreement’. This strategy suggests that the EU and the US could find a way to expand their access to government procurement contracts and at least partially defuse the issue.