Options for a Euro-area fiscal capacity. Bruegel Policy Brief 2013/01, January 2013

Europe has responded to the crisis with strengthened budgetary and macroeconomic surveillance, the creation of the European Stability Mechanism, liquidity provisioning by resilient economies and the European Central Bank and a process towards a banking union. However, a monetary union requires some form of budget for fiscal stabilisation in case of shocks, and as a backstop to the banking union. This paper compares four quantitatively different schemes of fiscal stabilisation and proposes a new scheme based on GDP-indexed bonds. The options considered are: (i) A federal budget with unemployment and corporate taxes shifted to euro-area level; (ii) a support scheme based on deviations from potential output;(iii) an insurance scheme via which governments would issue bonds indexed to GDP, and (iv) a scheme in which access to jointly guaranteed borrowing is combined with gradual withdrawal of fiscal sovereignty. Our comparison is based on strong assumptions. We carry out a preliminary, limited simulation of how the debt-to-GDP ratio would have developed between 2008-14 under the four schemes for Greece, Ireland, Portugal, Spain and an ‘average’ country.The schemes have varying implications in each case for debt sustainability

Foraging Habitat and Chick Diets of Roseate Tern, Sterna dougallii, Breeding on Country Island, Nova Scotia

Breeding seabirds are threatened by human activities that affect nesting and foraging habitat. In Canada, one of the seabirds most at risk of extirpation is the Roseate Tern, Sterna dougallii. Although critical nesting habitat has been identified for the Roseate Tern in Canada, its foraging locations and the diet of its chicks are unknown. Therefore, our goal was to determine the foraging locations and diet of chicks of Roseate Tern breeding on Country Island, Nova Scotia, which is one of Canada's two main breeding colonies. In 2003 and 2004, we radio-tracked the Roseate Tern by plane to locate foraging areas and conducted feeding watches to determine the diet of chicks. Roseate Tern foraged approximately 7 km from the breeding colony over shallow water < 5 m deep. In both years, sand lance, Ammodytes spp., was the most common prey item delivered to chicks, followed by hake, Urophycis spp. Our results are consistent with previous work at colonies in the northeastern United States, suggesting that throughout its range, this species may be restricted in both habitat use and prey selection. The reliance on a specific habitat type and narrow range of prey species makes the Roseate Tern generally susceptible to habitat perturbations and reductions in the availability of prey.

Preparation of consistent soil data sets for modelling purposes: Secondary SOTER data for four case study areas

The common GIS-based approach to regional analyses of soil organic carbon (SOC) stocks and changes is to define geographic layers for which unique sets of driving variables are derived, which include land use, climate, and soils. These GIS layers, with their associated attribute data, can then be fed into a range of empirical and dynamic models. Common methodologies for collating and formatting regional data sets on land use, climate, and soils were adopted for the project Assessment of Soil Organic Carbon Stocks and Changes at National Scale (GEFSOC). This permitted the development of a uniform protocol for handling the various input for the dynamic GEFSOC Modelling System. Consistent soil data sets for Amazon-Brazil, the Indo-Gangetic Plains (IGP) of India, Jordan and Kenya, the case study areas considered in the GEFSOC project, were prepared using methodologies developed for the World Soils and Terrain Database (SOTER). The approach involved three main stages: (1) compiling new soil geographic and attribute data in SOTER format; (2) using expert estimates and common sense to fill selected gaps in the measured or primary data; (3) using a scheme of taxonomy-based pedotransfer rules and expert-rules to derive soil parameter estimates for similar soil units with missing soil analytical data. The most appropriate approach varied from country to country, depending largely on the overall accessibility and quality of the primary soil data available in the case study areas. The secondary SOTER data sets discussed here are appropriate for a wide range of environmental applications at national scale. These include agro-ecological zoning, land evaluation, modelling of soil C stocks and changes, and studies of soil vulnerability to pollution. Estimates of national-scale stocks of SOC, calculated using SOTER methods, are presented as a first example of database application. Independent estimates of SOC stocks are needed to evaluate the outcome of the GEFSOC Modelling System for current conditions of land use and climate. (C) 2007 Elsevier B.V. All rights reserved.

Palaeohydrology of the Fazzan Basin and surrounding regions: The last 7 million years

We have integrated information on topography, geology and geomorphology with the results of targeted fieldwork in order to develop a chronology for the development of Lake Megafazzan, a giant lake that has periodically existed in the Fazzan Basin since the late Miocene. The development of the basin can be best understood by considering the main geological and geomorphological events that occurred thought Libya during this period and thus an overview of the palaeohydrology of all Libya is also presented. The origin of the Fazzan Basin appears to lie in the Late Miocene. At this time Libya was dominated by two large rivers systems that flowed into the Mediterranean Sea, the Sahabi River draining central and eastern Libya and the Wadi Nashu River draining much of western Libya. As the Miocene progressed the region become increasingly affected by volcanic activity on its northern and eastern margin that appears to have blocked the River Nashu in Late Miocene or early Messinian times forming a sizeable closed basin in the Fazzan within which proto-Lake Megafazzan would have developed during humid periods. The fall in base level associated with the Messinian desiccation of the Mediterranean Sea promoted down-cutting and extension of river systems throughout much of Libya. To the south of the proto Fazzan Basin the Sahabi River tributary know as Wadi Barjuj appears to have expanded its headwaters westwards. The channel now terminates at Al Haruj al Aswad. We interpret this as a suggestion that Wadi Barjuj was blocked by the progressive development of Al Haruj al Aswad. K/Ar dating of lava flows suggests that this occurred between 4 and 2 Ma. This event would have increased the size of the closed basin in the Fazzan by about half, producing a catchment close to its current size (-350,000 km(2)). The Fazzan Basin contains a wealth of Pleistocene to recent palaeolake sediment outcrops and shorelines. Dating of these features demonstrates evidence of lacustrine conditions during numerous interglacials spanning a period greater than 420 ka. The middle to late Pleistocene interglacials were humid enough to produce a giant lake of about 135,000 km(2) that we have called Lake Megafazzan. Later lake phases were smaller, the interglacials less humid, developing lakes of a few thousand square kilometres. In parallel with these palaeohydrological developments in the Fazzan Basin, change was occurring in other parts of Libya. The Lower Pliocene sea level rise caused sediments to infill much of the Messinian channel system. As this was occurring, subsidence in the Al Kufrah Basin caused expansion of the Al Kufrah River system at the expense of the River Sahabi. By the Pleistocene, the Al Kufrah River dominated the palaeohydrology of eastern Libya and had developed a very large inland delta in its northern reaches that exhibited a complex distributary channel network which at times fed substantial lakes in the Sirt Basin. At this time Libya was a veritable lake district during humid periods with about 10% of the country underwater. (C) 2008 Elsevier B.V. All rights reserved.

Phosphorus dynamics and export in streams draining micro-catchments: Development of empirical models

Annual total phosphorus (TP) export data from 108 European micro-catchments were analyzed against descriptive catchment data on climate (runoff), soil types, catchment size, and land use. The best possible empirical model developed included runoff, proportion of agricultural land and catchment size as explanatory variables but with a low explanation of the variance in the dataset (R-2 = 0.37). Improved country specific empirical models could be developed in some cases. The best example was from Norway where an analysis of TP-export data from 12 predominantly agricultural micro-catchments revealed a relationship explaining 96% of the variance in TP-export. The explanatory variables were in this case soil-P status (P-AL), proportion of organic soil, and the export of suspended sediment. Another example is from Denmark where an empirical model was established for the basic annual average TP-export from 24 catchments with percentage sandy soils, percentage organic soils, runoff, and application of phosphorus in fertilizer and animal manure as explanatory variables (R-2 = 0.97).