The long-term EU budget: size or flexibility? Bruegel Policy Contribution 2012/20, November 2012

The EU is in the process of negotiating its 2014-20 financial framework. Failure to reach an agreement would imply a delay in the preparation of the strategic plans each member state puts together to explain how it will use Structural and Cohesion Funds. Even if solutions are found – for example annual renewals of the budget based on the previous year's figures – there will be political and institutional costs. EU leaders have too often and too forcefully advocated the use of the EU budget for growth to be able to drop the idea without consequences. • The overwhelming attention paid to the size of the budget is misplaced. EU leaders should instead aim to make the EU budget more flexible, safeguard it from future political power struggles, and reinforce assessment of the impact of EU funded growth policies. • To improve flexibility a commitment device should be created that places the EU budget above continuous political disagreement. We suggest the creation of a European Growth Fund, on the basis of which the European Commission should be allowed to borrow on capital markets to anticipate pre-allocated EU expenditure, such as Structural and Cohesion Funds. Markets would thus be a factor in EU budget policymaking, with a potentially disciplining effect. Attaching conditionality to this type of disbursement appears legitimate, as capital delivered in this way is a form of assistance.

Private long-term investment in uncertain times. Bruegel Policy Contribution 2012/23, December 2012

The economic and financial crisis in Europe is affecting the financing of long-term infrastructure investment. There are multiple clearly identifiable channels: reduced demand for long-term investment, a tightening prudential framework for lending, upward adjustment of risk perception, complex transition of the financial system, and increasing macroeconomic, sovereign and regulatory risk. Some of the identified channels are potentially dangerous spillovers from the crisis that entail the risk of a downward spiral (eg increasing regulatory risk), while others are efficient market responses (eg reduced investment demand, correction of pricing of risk). Consequently, public policy instruments should not address the accessibility of long-term finance per se, but should explicitly target the critical channels.

Effect of human disturbance on long-term habitat use and breeding success of the European Nightjar, Caprimulgus europaeus

Land managers often respond to declining numbers of target species by creating additional areas of habitat. If these habitats are also subject to human disturbance, then their efforts may be wasted. The European Nightjar (Caprimulgus europaeus) is a ground-nesting bird that is listed as a species of European Conservation Concern. It appears to be susceptible to human disturbance during the breeding season. We examined habitat use and reproductive success over 10 years in a breeding population on 1335 ha of managed land in Nottinghamshire, England. The study site was divided into a heavily disturbed section and a less disturbed section of equal habitat availability, forming a natural long-term experiment. The site is open to the public, and visitor numbers approximately doubled during the study. We found that overall Nightjar density was significantly lower and there were significantly fewer breeding pairs in the heavily disturbed habitat compared with the less disturbed habitat. However, average breeding success per pair, in terms of eggs and fledglings produced, was not significantly different between the two sections across years. Our findings suggest that human recreational disturbance may drastically alter settlement patterns and nest site selection of arriving females in some migratory ground-nesting species and may reduce the utility of apparently suitable patches of remnant and created habitat. Land managers should bear this in mind when creating new areas of habitat that will also be accessible to the public. Our study also highlights the value of long-term population monitoring, which can detect trends that short-term studies may miss.