EU Economic Policy Research Articles

Making “strategic autonomy” rhyme with “fiscal austerity?” Unresolved conflicts of (geo)economic ideas in EU infrastructure policy

As a reaction to intensifying global competition, measures related to strategic autonomy are gaining traction on the EU level. Yet they coincide with a general return to fiscal consolidation. With current developments more inconclusive than previously suggested, this article asks how the central actors in EU economic policy, both public and private, position themselves in the autonomy-austerity conflict. It introduces a political-economic approach to the role of (geo)economic ideas and state-business relations in EU policy formation. The article focuses on infrastructure policy as a main field within which the conflict unfolds. A content analysis of official documents systematically maps the positions of relevant actors. While an influential group of southern finance ministries, Directorates-General, center-left parties, and trade unions is promoting strategic autonomy, a shrinking constellation around fiscal austerity contains relevant veto players. The deadlock results in the attempt to reconcile both ideas via “targeted flexibility”: consolidation via the expenditure side and a delegitimization of non-investment spending, coupled with a public de-risking of private investments. The approach is supported by European capital, yet highly inconsistent and runs up against pro-austerity forces. The findings have strong implications for the EU’s future geoeconomic strategy and its ability to compete globally.

Austerity and Financialization: Is There Another Way? The Pasinetti Suggestion

Since the 1990s, economic policies in Europe and elsewhere, have been based on the theoretical and practical ideas embedded in the Maastricht Treaty: public debt and deficit must be reduced, even if this implies severe austerity. The main goal of this policy, growth with a decrease in public debt, did not work. Although the Maastricht Treaty framework received a wide consensus in the academic world as well in European politics, a few brave scholars stood up since the beginning to show its fallacies. In this article, we will discuss the critiques that Pasinetti made to the set-up of the EU economic policy, then we will connect the fate of public and private debt and finally we will explain why continuing with austerity will condemn Europe to anemic growth and political irrelevance.

Geoeconomic Power Europe: When Global Power Competition Drives EU Integration

AbstractThe European Union's (EU's) ‘geoeconomic turn’ denotes the growing integration of international security considerations into EU economic policies. This article introduces the concept of ‘geoeconomic power Europe’ to show how this development has the potential to renew debates on the nature of EU power. Most existing conceptualisations of EU power – whether characterised as civilian, normative, market based, regulatory or liberal – tend to focus on the EU's endogenous characteristics. However, the added value of the concept of geoeconomic power is that it redirects attention to the ‘co‐constitution’ loop between global power competition and the evolution of EU power. In this article, I present an analytical framework that highlights the drivers of EU geoeconomic power and distinguishes between systemic pressures, the intra‐EU policy process and the impact on EU power. I conclude that the concept of geoeconomic power Europe can help to bridge theories of international security and economic interdependence, particularly neorealism and neofunctionalism.

Navigating the New Normal: The European Union's Changing Stance on Globalization in the Era of Trade Conflicts

Abstract The EU is becoming more inward-looking and more hesitant toward globalization. This paper examines recent transformations in the EU's economic policies, with a focus on international trade and industrial policy. It argues that these changes reflect the EU's response to the evolving global economic and political landscape, driven by factors such as China's rise and the United States’ protectionist policies. By analyzing the potential consequences of these policy adjustments on EU industries’ competitiveness and trade relations, the paper offers insights into the future prospects of EU economic policies and their role in shaping the global economy.

Экономические стратегии ЕС 2020-2024: цели и показатели

The paper discusses the EU Strategy 2020-2024 created in 2019. There are analyzes the Strategy plan and Management Plan EU, Economic forecast EU, the hierarchy of General and Specific objectives, Activities with results, indicators and targets to achieve the goals and systems for implementing the Strategy for the EU in the paper. The analysis used EU Commission work programme, Strategic Plans 2020-2024 EU Commission, Management Plans EU Commission for the current reporting year (2024), Annual activity report. It is a system of documents of Departments and executive agencies (Directorate General, Executive agency and Service) of the EU Commission, whose competence and area of activity are related to the implementation of EU economic policy. The analysis is based on the plans and reports of The Directorate General for Economic and Financial Affairs (DG ECFIN) of the European Commission: Strategic plan, Management plan, Annual activity report, Annual work programme. It is shown that the EU is pursuing a proactive policy regarding digitalization, climate neutrality and a number of other goals to achieve competitiveness in the global market. The system of macroeconomic indicators of the Economic Forecast underlies the formation of plans of all The Directorate General of the EC. Activities are described in results, indicators and targets to achieve the stated General and Specific objectives 2020-2024. The final values of the main macroeconomic indicators for the current period are not justified and the forecast indicators for the period until 2025 remain almost unchanged. An analysis of the added value of the EU economy by industry shows the instability of the structure of the EU economy for the period 2020-2023.

Agricultural Development in European Union: Drivers, Challenges and Perspectives

Globalisation of world trade, consumer-led quality requirements and EU enlargement are the new realities and challenges facing European agriculture today. The changes will affect not only agricultural markets, but also local economies in rural areas. The future of the agricultural sector is closely linked to a balanced development of rural areas. The Community dimension in this relationship is therefore clear: agricultural and rural policy have an important role to play in the cohesion of EU territorial, economic and social policy. With over 56 percent of the population in the 27 Member States of the European Union (EU) living in rural areas, which cover 91 percent of the territory, rural development is a vitally important policy area. Farming and forestry remain crucial for land use and the management of natural resources in the EU’s rural areas, and as a platform for economic diversification in rural communities. The strengthening of EU rural development policy is, therefore, an overall EU priority. The European Union has an active rural development policy because this helps to achieve valuable goals for the country sides and for the people who live and work there. The policy is funded partly from the central EU budget and partly from individual Member States' national or regional budgets. Theoretically, individual EU Member States could decide and operate completely independent rural development policies. However, this approach would work poorly in practice. Not all countries in the EU would be able to afford the policy which they needed and many of the issues addressed through rural development policy do not divide up neatly at national or regional boundaries. Also, rural development policy has links to a number of other policies set at EU level. Therefore, the EU has a common rural development policy, which nonetheless places considerable control in the hands of individual Member States and regions. The EU’s rural development policy is all about meeting the challenges faced by our rural areas, and unlocking their potential.

CHANGES OF EUROPEAN UNION COUNTRIES POSITIONS IN THE INTERNATIONAL TRADE OF RAW MATERIALS IN 2016, 2019 AND 2021. IMPORTANCE FOR AGRICULTURE

The purpose of this paper is an explanation of a strategic independency or dependency of particular countries of the European Union on raw materials imports. A strategic importance of raw materials for the EU and world economy is connected with the necessity of these materials for the production, including agricultural production and industrial production for agriculture. The design is finding the threats for the further development of most EU economies which results from their dependency on raw materials imports. There were fifteen net importers of raw materials in 2016. Most important of them were: Germany, Italy, Belgium and Spain. These first four countries did not change their positions in 2019 and 2021. The quantity of EU net importers decreased to fourteen member-states in 2019 and to thirteen countries in 2021. However, many EU net importers deepened their trade deficits of raw materials in 2021. The Dutch paradox explains the Netherlands position of the first EU net exporter in spite of this country dependency on imports of raw materials. Practical implications of the results can be considered to elaborate the short-term and long-term EU economic and trade policy.

Are Soft Legal Measures in Circular Economy Action Plans Enough to Permeate EU Strong Economic Core Regulations Bringing Systemic Sustainable Change?

This paper provides a legal assessment of the EU circular economy action plans [2015, 2020] to determine whether their implementation aims at transformative change or is embedded in the prevailing neoliberal ideology. Measures intended to promote the circular economy (CE) are classified according to their public or private nature, the degree of public or private intervention (command and control, economic instruments, information, self-control). It also analyzes how core EU economic policies shield a narrow, technocratic conception of the CE.

Panel Evidence from EU Countries on CO2 Emission Indicators during the Fourth Industrial Revolution

Research question and the most important issue in this paper relates to the determination of CO2 emission drivers in EU and the possibility of its reduction in the era of the fourth industrial revolution. EU strategies and economic policies are directed toward sustainable development, with special emphasis on reducing CO2 emissions towards carbon neutrality. The method used in this research is the Panel Generalized Method of Moments (GMM) two-step dynamic estimator on 27 EU countries in the period 2012–2019. The research resulted with the following findings: innovation activity, industrial structure and development, human capital, and institutional framework; these are all statistically associated with CO2 emission levels in a negative manner, thus, contribute significantly to the reduction in CO2 emissions. Following the empirical results, it may be concluded that reaching sustainable development goals requires the EU to enhance innovation activity, technological development, reshape its industrial structure, create high-quality human capital, and increase the quality of its public institutions.

The results of internal devaluation policy as a crisis exit strategy: The case of Spain

AbstractIn line with the orientation of EU economic policy, the Spanish government has favoured a strategy of internal devaluation as a way of adjusting price levels within the currency union and offsetting the fall in competitiveness accumulated over time, as evidenced by the persistent trade deficit. The results of comparative empirical studies indicate that the internal wage devaluation applied in Spain as a crisis exit strategy (in the form of labour reforms and, in general, measures to contain labour costs) does not seem to have attained the desired goals in terms of reducing the relative prices of exports and consolidating a model of growth based on external demand. Indeed, the estimates drawn up show that tailwinds – the depreciation of the euro as a result of the measures taken by the ECB, greater economic activity by trading partners and the fall in the price of oil – exercised a decisive influence in the trends followed by the prices of exports and the balance of trade during the period of crisis management in Spain.

EUROPEAN INTEGRATION AS A CHALLENGE FOR THE IMPLEMENTATION OF ECONOMIC STATE SOVEREIGNTY

One of the most significant modern examples of political and economic integration for Ukraine is the EU, given the plan for European integration. In gaining membership in this integration entity, states face the issue of delegating their powers to the Union. The issue of modification of state sovereignty in the context of the EU’s relations with member states and candidate countries for EU membership is acute, which raises concerns about the forced restrictions on their state economic sovereignty. The methodological basis of the study are such general-science and special methods as historical-legal, dialectical, comparative-legal, and others. The historical-legal method was used to study the genesis of the content of the legal categories of ‘economic sovereignty’, ‘sovereign debt’, and the stages of European integration. The usage of the dialectical method provided a comprehensive study of the process of forming EU economic policy, as well as defining the ratio between the categories of ‘economic sovereignty restriction’ and ‘restriction of sovereign economic rights of the state’. By using the comparative-legal method, the paper reveals the specifics of the approaches of individual states to the legal regulation of relations to ensure economic sovereignty and economic security of the state. The study, based on the experience of the new EU member states, has shown that European integration as a whole contributes to changing the volume of sovereign powers of states during the implementation of economic state sovereignty. However, the authors conclude that such a process is twofold: on the one hand, factors that objectively reduce the economic sovereignty of countries through the delegation of their sovereign rights are increasing, and, on the other, most states voluntarily and consciously accept such restrictions to obtain economic, political, and social benefits.

Social resilience management of Ukrainian territorial communities during the Covid-19 pandemic

The Covid-19 pandemic changes people’s behavior, determines the interpersonal distance of communication, and deepens the digitalization processes of public life. This paper aims to establish the social trust impact on the social sustainability of Ukrainian territorial communities in the Covid-19 pandemic. For an empirical study, four territorial communities of Ukraine were taken, which geographically represent the whole of Ukraine. It used the online survey method based on Google forms. A randomly selected 1530 respondents aged 18+ were interviewed in 2021, where the quota sampling by gender, age, and territorial community has been preserved. The study proves that the family remains the basis of social stability for Ukrainians. In difficult situations, the population expects help from their relatives and is ready to help themselves. However, institutional social trust is highly deficient, with only 5.8% of citizens wishing for help from local authorities in the face of the pandemic. The survey shows that the poorest part of the population is prone to atomization and demonstrates the lowest interpersonal and institutional trust level, weakening social stability due to the risks of numerous divorces, labor migration, and the problems of family members’ isolation during the Covid-19 pandemic. The pandemic has widened the gap between the poorest and wealthiest groups. Therefore, social resilience management should aim to improve institutional and interpersonal social trust. Furthermore, public authorities should unite the community using economic, social, cultural, and religious instruments since atomized individuals cannot withstand local and global challenges efficiently. AcknowledgmentThe paper was prepared in the framework of the research project “Sustainable development and resource security: from disruptive technologies to digital transformation of Ukrainian economy” (№ 0121U100470) and “ Jean Monnet Chair in EU Economic Policies and Civil Society” (619878-EPP-1-2020-1-UA-EPPJMO-CHAIR).

Using party press releases and Wikipedia page view data to analyse developments and determinants of parties’ issue prevalence: Evidence for the right-wing populist ‘Alternative for Germany’

We make use of party press releases and Wikipedia page view data to study issue dynamics and its determinants of a relatively young right-wing populist party. By applying structural topic models, we analyse 2262 press releases of the ‘Alternative for Germany’ (AfD) from 2013 until 2019. The findings reveal, first, that European integration, EU economic policy, and migration are prevalent topics, but that a change occurs over time so that the focus on economic policy decreases as the focus on migration policy increases. In addition, we show – by using novel data that provides information on the number of daily hits of entries in the German Wikipedia – that the AfD took the attention into account that people attached to European integration and migration issues when preparing their press releases. The results support the findings of existing studies and imply that the content of press releases can be used for measuring changes in the policy profile of parties during a legislative period when normally no manifestos are published, and that the interest in Wikipedia articles can serve as a proxy for the dynamics of issue salience among the population. Furthermore, the findings indicate that a combination of these two data sources is a fruitful approach for studying the determinants of short-term issue dynamics.

Trends in the development of the agricultural sector of the Slovak Republic

The purpose of the study is to research and systematically analyze the trends in the development of the agricultural sector of the Slovak Republic at the present time. The research used the "Green report" of the Ministry of Agriculture and Rural Development of the Slovak Republic. The author conducted a comparative analysis of the main economic indicators in the agricultural sector. Based on the application of the economic and statistical method, information on the volume of allocated funds for the main economic indicators of agriculture in Slovakia in 2019-2020 is considered. Based on the analysis, proposals were developed: to provide equal opportunities for all market participants, an equal standard of living for citizens and rural residents, to improve opportunities for the activities of regional entrepreneurs, mandatory participation of the state in agrarian policy.In the last quarter of the twentieth century, the concepts of sustainable development began to prevail in European countries, ensuring the development and implementation of the Union. The methods of intensive development of rural areas based on a comprehensive survey are considered. In this regard, the following tasks arose: to stop the migration of the population and to preserve the environment. One of the priorities of the EU economic policy is the state regulation of agriculture. In this regard, the agrarian policy, which provides for a single system of guaranteed prices, market, and customs protectionism in trade with other countries. This allowed the EU countries to become leaders in the export of agricultural products from importers for ten years.

Constructions of Care in EU Economic, Social, and Gender Equality Policy: Care Providers and Care Recipients versus the Needs of the Economy?

Abstract The European Union is facing a crisis of care due to demographic shifts, policies aimed at driving up women’s employment while cutting state care expenditures, and marketizing public care provisions. This article combines feminist political economy approaches to reproductive labor as an essential part of the economy with theories of care ethics to explore the European Union’s role in deepening this crisis. It concludes that the European Union fails to recognize the importance of care or address it holistically and is more preoccupied with the potential impact on public finances than finding a solution to the care crisis.

EU Open Strategic Autonomy and the Trappings of Geoeconomics

The EU’s new trade strategy promises to advance open strategic autonomy that is to balance the benefits of economic interdependence with growing demands to manage Europe’s exposure to the risks it entails. What explains these shifting priorities? This article situates open strategic autonomy in the theoretical debates of International Political Economy (IPE) literature on economic interdependence and geoeconomics to aid our understanding of the debates ensnaring economic strategy in the EU, but also related debates in the United States, China and elsewhere. This framework, the article argues, helps us understand changing strategic priorities in economic policy by reference to wider structural shifts engulfing the global economy. It then identifies four priority targets of EU economic policy in which (new) autonomous policies are forthcoming: (i) tackle economic distortions; (ii) defend against economic coercion; (iii) link with values and sustainability; and (iv) protect critical assets and supply chains. These observations build towards addressing the main research question: Has open strategic autonomy turned a corner on EU principles of openness, liberalization and international cooperation? trade and investment, European Union, geoeconomics, International Political Economy

What Makes Economic Differentiation Effective? Insights from the EU Energy Sector, Banking Union and Third-Country Access to the Single Market

ABSTRACT Few studies so far have analysed the effectiveness of differentiation in EU policies. This is surprising given the importance and permanence of many differentiated arrangements, for example in EU economic policy. Insights from three studies on differentiation in the energy sector, the financial sector and third-country access to Single Market highlight the importance of institutional factors. EU economic differentiated arrangements tend to be more effective when: (i) there is a good ‘fit’ between the institutional design and the policy objectives; (ii) there are mechanisms to adapt them over time; and (iii) there are institutional provisions to prevent or mitigate negative side effects for the Union as a whole.

THE IMPACT OF EUROPEAN INTEGRATION PROCESSES ON THE DEVELOPMENT OF RURAL AREAS OF UKRAINE

The article is devoted to the study of the problems of rural development of Ukraine in the context of the European integration perspective of our state. Particular attention is paid to the study of the evolution of EU economic policy aimed at rural development, as well as priorities of institutional and organizational and economic development of rural areas of Ukraine, aimed at maximizing the experience of EU countries. The ways of overcoming the existing socio-economic, institutional and demographic problems of the native village on the principles and principles of EU economic policy are outlined. The main reasons and main directions of spreading negative trends in rural development in Ukraine are described. Options for adapting the EU experience to domestic realities are proposed. Socio-economic trends in rural development in the context of economic and food security of both the EU and Ukraine have been studied. An assessment of the existing socio-economic potential for the development of rural areas of Ukraine in terms of prospects for further European integration of our country. The regional aspects of development of rural territories of Ukraine in the conditions of increase of their competitiveness on the basis of global competition are defined. The main directions of formation of innovative agricultural production and multifunctional development of rural economy of Ukraine are outlined. Methodical recommendations on improving the infrastructure of rural areas in order to increase their competitiveness in the context of European integration are identified. Priorities for improving the socio-demographic situation in rural areas in the context of improving the quality of human capital have been identified. Measures to improve the investment climate in rural areas through the use of innovative levers for their integrated development are proposed. Recommendations for public authorities and local self-government are proposed, which are aimed at overcoming the existing differences in the legal and institutional support for the development of rural areas of Ukraine and the EU at the national and regional levels.

Rifiuti informatici, inquinamento digitale. Il lato insostenibile della 4a rivoluzione industriale

This paper is devoted to the electronic waste and the digital pollution topic. Firstly, concerning the e-waste, we are going to see its origin, the directions of its disposal, and if there is any possibility of recovery. Secondly, we are going to see the digital pollution. The data exchanged in internet leave a footprint not only in terms of Big Data but also in terms of the CO2 emissions. Millions of physical servers in data centers around the world, are connected with miles of undersea cables, and with switches and routers. All of them require a lot of energy to run. Finally, we will examine what measures governments can promote to manage the digital and ecological transitions. The challenge is to implement the digitalization process in the sense of sustainability according to the EU economic and social policies.

Slowing Economic Growth and Falling Production in EU

The author examines the problems of economic growth of the EU in the period before the coronavirus pandemic, as well as during the 2020 economic crisis and gradual recovery. It is argued that the decrease in 2017‒2019 was caused by a number of long-term reasons, i.e. slow technological renewal of production base and narrowing of trade surplus due to loss of competitive advantages over producers from Southeast Asia. The author analyses the mechanics of pandemic’s impact on EU production volume, caused by decline in general demand and supply of goods and services. The EU economic policy is viewed as an appropriate instrument to protect citizens and companies from bankruptcy. It is outlined that the recovery will stem not from the economic policy, but from countering the pandemic with vaccines and sanitary restrictions. The author forecasts that economic growth rates in the region will slow down due to the reasons that emerged before the pandemic. Moreover, the growth will be negatively affected by the current EU policy of greater use of clean energy and technologies that preserve the environment, but inflate the production costs.