CEPS Working Documents


151 - 180 of 265
12 October 2006

Foreign direct investment (FDI) is an instrument of international capital flow and it also shares some features of international trade flows as it is often associated with intra-firm trade by multinational corporations. Combining features from both ‘growth-type’ and ‘gravity-type’ models, the authors of this paper argue that democracy and economic reform in emerging economies have a joint positive impact on FDI inflows from advanced countries. They conclude that the role of democracy and market-oriented reform is robust and widespread beyond European borders.

13 September 2006

The Lisbon strategy of 2000 sets the ambitious goal (among others) of achieving an employment rate of 70% overall, 60% for women and 50% for older workers within the EU-15 by 2010. Five years later, labour market participation has increased somewhat (overall from 62.5% in 1999 to 64.3% in 2003), but remains disappointingly low in the EU-15 (and even lower for the EU-25).

12 July 2006

This Working Document presents the thoughts and recent writings of CEPS researchers on what should be done in the near future to get Europe moving again. It is addressed to the Finnish Presidency of the EU at the start of its six-month term to run from July through December 2006. It addresses many of the most important areas that need attention from EU policy-makers, grouped together into five broad policy areas: economics, environment, justice and home affairs, wider Europe and the future of Europe.

04 July 2006

Responsibility for the implementation of the Community budget is entrusted by the EC Treaty to the European Commission exclusively. However, by virtue of the principles of subsidiarity and proportionality, approximately 80% of the total expenditure (agricultural spending and spending on structural aid) is managed, in various guises, by member state administrations. The application of the above-mentioned principles to the Community budget has given rise to a complicated panoply of levels of decision-making, which has not resulted in a clear indication of who is responsible for what.

16 June 2006

During the 1950s, Jan Tinbergen and other prominent economists developed an attractive theoretical way of using fiscal instruments (taxes and public spending) to promote socially-desirable economic objectives, such as stabilisation, income redistribution and more efficient allocation of resources. The theory may well have reflected the institutional arrangements that prevailed at the time in the countries of origin of these economists. For these countries, it could be seen as a perhaps naive but still ‘positive theory’.

09 June 2006

Since the Kyoto Protocol entered into force in February 2005, many Parties to the Protocol have shifted their domestic policies into high gear to achieve the quantitative reductions in greenhouse gas emissions undertaken for the period from 2008 to 2012. While the basic design of environmental taxation in European countries has received widespread attention, its actual performance has not been systematically assessed. This report aims at examining, against pre-determined criteria (e.g.

08 June 2006

The Doha negotiations have renewed interest in the effects of liberalisation of markets on developing countries. Middle-income developing countries stand to gain more because the commodity composition of their exports is such that they will gain substantially in large commodity markets, while lower-income countries need additional help to take advantage of new opportunities in smaller or niche markets.

06 April 2006

The US international investment position today should in principle be equal to the sum of past current account balances (mostly deficits). However, this is by far not the case even taking into account the balancing item ‘errors and omissions’. Between 1982 and 2004, the US has accumulated a grand total of around $4.5 trillion (thousand billion).

06 April 2006

The income account of the US balance of payments has so far remained in surplus because of a very large differential in reported earnings on direct investment – US firms seem to enjoy a much higher rate of return than foreign firms in the US. There is little difference in terms of the rate of dividend payments; the difference is due to what is called ‘reinvested earnings’ (earnings minus dividends).

25 March 2006

Over the last five years, the EU has sent more than 35 Election Observation Missions (EOMs) around the world. EOMs are often the most visible part of the EU’s efforts to promote democracy abroad and carry consequences for the EU’s overall policy towards a given country. While the methods and techniques of observing elections are well established, the linkage between the findings of observers and general political follow-up by the EU can be weak, in particular in cases where observers report significant flaws. The EU should be more coherent in these cases.

01 March 2006

The negotiation of a regional trade agreement between the EU and Ukraine is the next significant step towards Ukraine’s deeper integration with the West. Drawing on analyses of official and independent analytical materials and statistical data, this paper explores the form such an arrangement should take – namely, which of the existing models would be an appropriate model for EU-Ukraine trade relations: a Free Trade Agreement, a Customs Union or something along the lines of the European Economic Area Agreement.

01 March 2006

The enlargement of the EU and the European Neighbourhood Policy (ENP) have revived the debate in the ‘neighbourhood countries’ around the need to converge legislation with EU internal rules and regulations, known as the acquis communautaire. The political incentive of accession to the EU, which has driven legal approximation in new EU member states, is missing for ENP countries. Yet, in the case of countries like Moldova, the cost of non-compliance is significant and translates into loss of existing export markets (e.g.

01 February 2006

This paper analyses the UK rebate on EU contributions and concludes that it creates adverse effects, which greatly reduce the incentive for the UK to play an active role in the development of EU policies. This may to a large extent explain the UK’s traditional semi-detached relationship with the EU. The paper concludes, however, that that there is a strong case for the continuation of a modified system of rebates for a country or countries in the UK’s position.

01 February 2006

The spectacular growth of the US housing market as a driver of domestic demand has attracted a lot of attention over the last year. Policy-makers and market participants routinely add a health warning to their outlooks for the US economy related to the US housing market, based on the assumption that growth in US domestic demand will slow down dramatically once housing prices start to decelerate. It is generally assumed that the eurozone does not face a similar prospect, because areas of ‘froth’ (Spain, for example) co-exist alongside areas of declining prices (Germany).

01 February 2006

The European Union has successfully supported democratisation in its new Eastern member states and candidate countries. Now it needs to become more engaged in those post-communist countries where democratisation is incomplete or stalled. This study argues that civil society should be a more important priority of democracy promotion in the EU’s Eastern neighbourhood and calls for a strategic and differentiated approach designed according to the stage of democratisation in the target country.

06 January 2006

This paper draws policy conclusions for the EU based on the studies performed for the Fifth Framework Programme on industrial competitiveness and other relevant literature. The issue of competitiveness of the new member states and the implications of enlargement for the EU as a whole and for individual member states is complex. This paper discusses the policy implications that result from the research undertaken in the context of this project and presents some additional considerations. Policy actions on industrial competitiveness may be taken at national or EU level.

01 January 2006

On 27 May 2005, seven Member States signed the Prüm Convention to step up cross-border cooperation, particularly in combating terrorism, cross-border crime and illegal migration. Named after the German city in which it was signed, the Treaty’s main advantage is that it enables the signatories to speed up the exchange of information. However, this paper argues that the Treaty produces negative externalities for the European Union’s area of freedom, security and justice by circumventing the EU framework.

01 December 2005

With its new European Neighbourhood Policy (ENP), the European Union has begun to develop a further ring in a widening set of economic policy regimes that gravitate around it. There are now no less than six rings to this system. We observe that the EU economic regime has extended its outreach to all categories of countries but the degree of acceptance of EU economic norms and the speed of adoption of EU economic rules is diminishing in the areas further away from the EU core.

01 October 2005

This paper gives an overview of the channels by which the EU budget is directly or indirectly affected by the change in the external trade relations of the EU. In addition it discusses what role the EU budget can play, despite its limited size and scope, in addressing some other key challenges presented by globalisation and liberalised trade flows. The paper begins with a detailed theoretical explanation of the ways in which the EU budget is directly or indirectly affected by its revenues, structure and objectives.

01 October 2005

The future of the Constitutional Treaty is now very much in doubt. The blows received from the French and Dutch referenda in such rapid succession have made it difficult to imagine that the Treaty, at least in its current form, will ever enter into force. Inter alia, the Constitution promised to consolidate and extend the flagship of the Amsterdam Treaty – the Area of Freedom, Security and Justice. This paper examines what the failure of the Constitutional Treaty would mean for this critical area explores what can be done to mitigate the negative effects?

01 October 2005

Series: CEPS Working Paper No: 232 An EU approach dealing with labour migration continues to be the missing element for the establishment of a truly common immigration policy. Until present there has been an unacceptable official reluctance to the liberalisation and adjustment of immigration policies to reflect the realities that the Union is facing. In 2004 the European Commission presented a Green Paper on an EU approach to managing economic migration, which intends to pave the way for an Action Plan to be presented on this issue at the end of this year.

01 September 2005

This report assesses ways in which the Action Plan process that has been launched under the European Neighbourhood Policy (ENP) could become a more effective driver of political and economic change in the Mashreq region (covering Egypt, Jordan, Lebanon, Syria and the Palestinian territories), compared with the modest results from the Barcelona process to date. The development of the ENP has already provided a valuable systemic/institutional advance in Euro-Med relations and has been an important confidence-building measure in an increasingly uncertain political environment.

01 August 2005

In times marked by trends as diverse as economic globalisation, international migration as well as fear of terrorism and organised crime, the efficient handling of borders has become an issue of political priority, in the EU and across the world. Modern, economy-oriented states have to rely on a flourishing trade and offer a comfortable degree of security to their citizens. The formula commonly chosen in combining these two objectives is that of ‘integrated border management’, which represents the delicate attempt to marry security concerns with trade facilitation.

01 August 2005

This paper examines the relationship between the institutional set-up of the EU policy-making process and the international actorness of the EU in two cases: the establishment of the International Criminal Court (ICC) and the negotiations in the United Nations Framework Convention on Climate Change (UNFCCC) on the implementation details of the Kyoto Protocol.

01 July 2005

In its discourse, the EU places democracy and the rule of law as number one. This paper examines the extent to which the EU is a coherent actor in pursuing this goal in practice, especially in its wider neighbourhood. Case studies are presented, covering much of the neighbourhood: Balkans, Turkey, Russia and Ukraine, Maghreb and Israel-Palestine.

01 July 2005

The main message of this contribution by CEPS Director Daniel Gros is that lean times are here to stay for the old member states. The principal reasons are deep seated: Deteriorating demographics continue with the ratio of working age population to total population falling. There are thus fewer and fewer producers for every consumer and recipient of transfers. On top of this, productivity growth is declining as labour quality is dropping and investment growth is slowing.

01 July 2005

This paper makes the case for regionalism as a possible conceptual framework and policy instrument to address the challenges posed by Europe’s new, diverse neighbourhood. It explains why, where and how regionalism can emerge as a political practice and policy instrument that contributes to tackling the correlation between security and integration in the wider European space. A set of recommendations to develop regionalism is then proposed and applied to the emerging case of the Black Sea Region.

01 May 2005

With the end of the WTO Agreement on Textiles and Clothing and the removal of all textile and clothing quotas on 1 January 2005, the characteristics of global production patterns and trade flows will change substantially. Countries previously constrained by quotas will gain under the new situation. This paper analyses the restrictiveness of the quotas that were applied by the EU in 2004 and argues that large and instantaneous changes in terms of prices and import shares are a natural and expected adjustment that is proportionate in size to the quotas’ level of restriction.