Huguenot-Noël, Robin; Andor, László
In May 2018, the European Commission is expected to publish its proposal on the EU’s post-2020 funding strategy, a seven-year budget known as the Multiannual Financial Framework (MFF). This proposal comes at a time when, despite strong signs of economic recovery, European citizens’ attitudes towards the EU’s global trade and investment agenda remain mixed. In this commentary, the authors argue that the EU and its member states should use the context of the MFF review to better address European citizens’ concerns about the downsides of globalisation.
Following the presentation of the draft secession treaty by the Commission on 28 February and the interventions of four former, wannabe or acting UK Prime Ministers, Andrew Duff discusses the prospects of the future relationship between the European Union and the UK.
Egenhofer, Christian.; Drabik, Eleanor; Alessi, Monica; Rizos, Vasileios
The Ecodesign Directive (ED) provides consistent EU-wide rules for improving the
environmental performance of products, such as household appliances, information and
communication technologies or engineering. This report summarises the responses of 27
stakeholders who were interviewed to obtain their assessment of the implementation of the
ED, particularly the successes and shortcomings, the results and the processes and the
Directive’s contribution to encouraging the circular economy. The objective was to gather
the views of both EU-level and Member State experts and stakeholders on the following
To what extent has the Directive met its objectives?
What are the main obstacles in the implementation?
How does the ED interact...
De Groen, Willem Pieter; Zielińska, Klaudia
The limited resources available to the ESAs, compared to national regulators, remain a barrier to their ability to carry out their responsibilities and act as independent authorities at EU level.
In its proposed model to supervise the clearing of euro derivatives following Brexit, the Commission fails to appreciate the huge volume of business that will be disrupted.
Bouyon, Sylvain; Krause, Simon
Several policy options are under discussion for better regulation of the dynamic currency conversion (DCC) payment service, each of which offers specific advantages but also poses distinct challenges. Enhancing transparency, for example, will require creative solutions. The imposition of fixed price caps would call for the design of robust criteria to determine the level of the caps. And the adjustment of the payment card chip would necessitate the adoption of common standards between card providers. From a consumer protection perspective, a ban on DCC makes sense only if all other options have been exhausted and if consumers can find satisfactory...
Darvas, Zsolt; Wolff, Guntram B.
There will be a €94 billion Brexit-related hole in the EU budget for 2021-27 if business continues as before and the United Kingdom does not contribute. The authors show that freezing agriculture and cohesion spending in real terms would fill the hole, but new priorities would then need to be funded by an increase in the percent of GNI contribution.
Callan, T.; Colgan, B.; Keane, C.; Walsh, J.R.
The Irish healthcare system includes a complex mix of entitlements – some are universal, others age-related, and some are income-related. In this report, we concentrate on the major income-related entitlements in the current system i.e., the Medical Card and the GP Visit Card. Most medical cards are provided on an income-tested basis, and provide free access to in-patient and out-patient care in public hospitals, to GP care, and to prescription drugs. We examine how the income test for such schemes can be modelled using the detailed income and demographic information in the Survey on Income and Living Conditions. The approach...
Lynch, Muireann A.; Devine, Mel T.
Capacity remuneration mechanisms exist in many electricity markets. Capacity mechanism designs do not explicitly consider the effects of refurbishment of existing generation units in order to increase their reliability. This paper presents a mixed complementarity problem with endogenous probabilities to examine the impact of refurbishment on electricity prices and generation investment. Capacity payments are found to increase reliability when refurbishment is not possible, while capacity payments and reliability options yield similar results when refurbishment is possible. Final costs to consumers are similar under the two mechanisms with the
exception of the initial case of overcapacity.
McQuinn, Kieran; Duffy, David; Mc Inerney, Niall
The aftermath of the 2007/08 financial crisis has resulted in many Central Banks and regulatory authorities examining the appropriateness of macroprudential policy as an effective and efficient policy option in preventing the emergence of future credit bubbles. Specific limits on loan-to-value (LTV) and loan-to-income (LTI) ratios have been assessed and applied in a large number of markets both in developing and developed economies as a means of ensuring greater financial stability. The Irish property and credit market were particularly affected in the crisis as the domestic housing market had, since 1995, experienced sustained price and housing supply increases. Much of...
Tol, Richard S.J.
This paper surveys the literature on the economic impact of climate change. Different methods have been used to estimate the impact of climate change on human welfare. Studies agree that there are positive and negative impacts. In the short term, positive impacts may dominate, but these are largely sunk. In the longer term, there are net negative impacts. Poorer people tend to be more vulnerable to climate change. There is a trade-off between development policy and climate policy. Estimated aggregate impacts are not very large, but they are uncertain and incomplete. Estimates of the marginal impacts suggest that greenhouse gas...
Mayor, Karen; Tol, Richard S.J.
We use a model of international and domestic tourist numbers and flows to forecast tourist numbers and emissions from international tourism out to 2100. We find that between 2005 and 2100 international tourism grows by a factor of 12. Not only do people take more trips but these also increase in length. We find that the growth in tourism is mainly fuelled by an increase in trips from Asian countries. Emissions follow this growth pattern until 2060 when emissions per passenger-kilometre start to fall due to improvements in fuel efficiency. Forecasted emissions are also presented for the four SRES scenarios...
The creation of Permanent Structured Cooperation (PESCO) in December 2017 crowned the series of recent debates and actions aimed at strengthening the common security and defence policy of the EU. However, the compromise around PESCO has revealed strategic divergences among France, Germany and the countries on the eastern flank related to the perceptions of threats and challenges, the development of the EU’s security and defence policy, and the future of trans-Atlantic relations. The debates on PESCO in Western Europe have also highlighted a growing gap between the political narratives and military reality.
Kardaś, Szymon; Iwański, Tadeusz
The awards by the Arbitration Institute of the Stockholm Chamber of Commerce (further: the Arbitral Tribunal) concerning the contract on gas supplies to Naftohaz and the volume of Russian gas transit via Ukraine have radically changed the model of gas relations between the two countries as they have existed until now. Kyiv’s victory is its crowning achievement in the process of emancipation from Russian dominance in the energy sector which began after the Revolution of Dignity. This has also significantly strengthened Ukraine’s position with regard to Russia and the EU because Gazprom was found to have been in breach of...
In this contribution, Jaap Jensen finds that the practice of automatically issuing guarantees of origin (GOs) to all producers of renewable energy undermines EU energy and climate objectives.
Jacques Pelkmans reminds the EU and its WTO partners that trust and the global public good of a rules-based WTO are fragile accomplishments that deserve to be protected, even if the means seem to come from a former imperial age.
Now that the contours of the future trade relationship between the UK and the EU are gradually emerging, Daniel Gros reflects on what it would take for that relationship to minimise the friction that Brexit will inevitably generate.
Carrera, Sergio; Stefan, Marco
This study takes stock of the main developments that have occurred in the Schengen Governance Framework since 2016. It analyses the legitimacy of a number of States’ decisions to maintain internal border controls and assesses the most recent policy proposals in the field of internal police checks in light of relevant EU legal standards. The paper also questions the legality of the border walls and fences, which have recently been erected at the EU external borders and within the Schengen area.
The study was commissioned by the European Parliament’s Policy Department for Citizens’ Rights and Constitutional Affairs at the request of...
Barslund, Mikkel; Laurentsyeva, Nadzeya
To mark International Women’s Day, two CEPS economists, Mikkel Barslund and Nadzeya Laurentsyeva, tackle the challenge facing policy-makers of how best to integrate women migrants into the labour market.
In examining May’s first attempt to operationally define the UK’s future trade relations with the EU, Michael Emerson finds that she draws heavily on the Deep and Comprehensive Free Trade Area model.