EU Market Research Articles

‘Ever Greater Divergence’, but…: The Ongoing Saga of Brexit and Financial Services

AbstractAs in many other fields, UK‐EU relations in financial services are set on a path of ever greater divergence. This follows logically from Theresa May’s Lancaster House speech in January 2017 announcing that the UK would leave the single market. The City‐based policy community then quickly moved from hoping to keep passporting rights to the EU market, towards searching for access based on ‘equivalence’. But as negotiations became more acrimonious following Boris Johnson’s arrival in Downing Street and (Lord) David Frost’s appointment as Chief Negotiator for Exiting the European Union in 2019, the prospects for a deal on financial services slipped away—perhaps surprisingly, given the centrality of finance to the British economy. For its part, the EU has been increasingly reluctant to reach a deal on financial services, taking instead the path to greater financial autonomy and regulatory control within the European Union and the Eurozone in particular. As a result, UK‐based firms no longer have access to the EU market, although there is still a tug‐of‐war of some consequence over the location of euro‐denominated derivative trading. Incremental divergence is now at work, as Britain pursues a strategy of competitiveness based on better regulation, within the international framework established after the global financial crisis of 2007–2009.

Dangerous products on the contemporary EU market – characteristics of the non-food products

Purpose: For most products, for example, toys, food, cosmetics, there are regulations in European law that define safety requirements. However, each year, several thousand products potentially dangerous for consumers appear on the market. Producers’ organizations, as well as public institutions and consumer organizations are fighting to keep them as few as possible, yet, different market forces play a role here and they are still on the market. Therefore, consumers should be educated and knowledge about such products should be disseminated. Design/methodology/approach: In the research part, the products deemed unsafe in years 2015-2021 were analyzed. Additionally, the 80 latest alerts on dangerous products were also thoroughly analyzed. Data was collected from The European Commission Safety Gate system, The comparative analysis method was used as well as the documentary analysis. Findings: The aim of this article was to identify the main types of risk to consumers, related to the consumption of non-food products. The conducted analysis shows that it is mainly a risk of injury, poisoning, allergic reaction, as well as chocking and suffocation, but the risks vary greatly depending on the product group. It is significant that dangerous products are often intended for children, therefore the conscious attitude of parents is important. Research limitations/implications: It should be taken into account that the situation may change over time, that may be related to new legal norms, to a change in the economic situation on international markets due to new products, to greater awareness of producers, for example. Therefore this type of research should be discussed in a broader context. Practical implications: The analysis shows the need for an alert system against dangerous products. The results indicate that stereotypes about the ‘safe country of origin’ can change; in practice, therefore, consumers need new knowledge about dangerous products which will help them make informed decisions. Up-to-date knowledge is also needed by the sellers – they can make decisions about cooperation with suppliers that will be more favorable to them. Social implications: The awareness of the presence of dangerous products on the market is important for the health of consumers, but it is also important for producers themselves due to the potential damage that can be caused to consumers and the environment. Keywords: conscious consumption, consumer rights, RAPEX, safety of consumption. Category of the paper: Research paper.

Evaluation of the innovation activities of companies in the competitive EU market – external factors

Purpose: The purpose of this paper is to assess the innovation activities of companies in the EU countries, taking into consideration the external factors. Design/methodology/approach: This article focuses on the analysis of the most frequently used factors determining the external conditions of the companies innovation activities with the use of taxonomic analysis. The research was conducted on the annual data for years 2017-2019 for the selected European countries. The data from the databases of OECD and Eurostat were used in the analysis. Findings: The results of the conducted analysis allow to conclude that the state and organisation of innovation activities in the economy and thus, in the companies is strongly dependent on external factors. The averages and quartiles were calculated to show the dynamics of the factors. Moreover, Ward dendrogram was presented to show the similarities and differences in shaping the innovation activities. The synthetic indicator was used to determine the development path and the map of objects was drawn. There is a strict connection between the amount of expenditures on R&D and the employees’ education concerning the implementation of the innovation activities in all analysed countries. In particular, it is visible in the Scandinavian countries and in Luxembourg. In Poland the innovation activities of companies is similar to the ones in the countries of Central and Eastern Europe. The low level of GERD causes that many companies have financial problems and despite high dynamics of industrial production, the innovativeness is still at a low level. Research limitations/implications: The comparison of Poland with other countries would surely give a wider picture whether the innovation processes are performed in an efficient way. The accessibility of data, for each country, used in the research not only limited the period of analysis but also determined the selection of variables. The analysis was based on the data from the mentioned databases to make it more reliable. Practical implications: The information obtained during the conducted analysis may facilitate the process of proper decision making referring to the management of innovations. The implementation of innovations guarantees not only the company development but also greater transparency in the information and knowledge flow among the workers. Originality/value: The analysis of external factors of the innovation activities is really important as the investments in innovation activities are the more and more important GDP part and the numerical taxonomy methods enable to indicate, indirectly, these countries which should be models for Poland so that it could organise and manage the innovation processes. The analysis of innovation activities makes it possible to indicate desired directions of changes 564 A. Strzelecka in the management of Polish companies. Thus, it is a basis to take decisions in the competitive markets.

POSA223 Dynamics of EU Market Exclusivity: The Impact of Orphan Designation on Generic or Biosimilar Entry

Orphan designation (OD) status was introduced to encourage development of therapies for rare disease. Products that fulfil the OD criteria benefit from a 10-12 year market exclusivity period from market authorisation (MA), which can extend protection from generic competition beyond patent expiry. In this study we explore the impact of OD market exclusivity on the likelihood of generic and biosimilar entry. Factors which may influence the attractiveness of generic entry are also analysed.

INSTITUTIONAL ARCHITECTURE OF SECURITY IN THE CROSS-BORDER TRADE IN GOODS OF THE EUROPEAN UNION, WITH PARTICULAR EMPHASIS ON CUSTOMS ADMINISTRATIONS

Ensuring security in cross-border trade in the European Union means counteracting threats and facing the challenges of globalization, changes in world trade and the development of the common market. The customs administrations of the Member States play a key role in ensuring the security of cross-border trade. Customs administrations pursue the following goals and tasks: first, a traditional fiscal target (of diminishing importance); second, they play a protective role in preventing dangerous and non-compliant products from entering the EU market. Particularly important is the protective function associated with ensuring the safety and security of the EU industry, the state and society, the natural environment, and the world’s fauna and flora. The aim of the article is to present the institutional security architecture in cross-border trade in goods involving specific institutions along with the tasks falling under their responsibility. Particular attention was paid to the tasks of customs authorities in ensuring security in cross-border trade in goods.

The particularities of food products’ export on the EU market

The terms of food products supply to the countries of the European Union are examined. The features of the requirements for the import and release of products are analyzed. The main problems faced by an exporting company selling their products on the European market are indicated. A list of food products most imported by Europe from the Russian Federation is provided, and a positive trend in terms of export volume for each of the listed products is pointed. The authors identify the main problems as a result of which the European Union does not want to purchase products, among them the insufficient quality of these products and non-compliance with all the requirements for them stand out. The key conditions for the Russian Federation to be included in the list of leading countries in the export of food products, despite the existing climatic and other peculiarities of the country, are outlined.

Європейський зелений курс в Україні: можливості та наслідки для промисловості

The purpose of the article is to substantiate the European Green Deal (EGD) commitments, identify opportunities and threats for the development of Ukrainian industry, and elaborate proposals for the adaptation of Ukrainian producers to the requirements of the EGD. It is shown that the EGD is at the centre of the European agenda, and it is a modern challenge that can change the economy and consumption patterns not only in the European Union but throughout the world. This could have profound geopolitical implications. The authors justify that Ukraine has stable economic, social, and political ties with the EU and has been involved in new value chains with European producers, so implementing the EGD opens new opportunities for “green” transformations of the Ukrainian industry. It has been found that Ukraine should serve to implement international commitments on development. However, such compliance carries significant threats aggravated by technological backwardness and financial insecurity of industrial agents. Also, complying with Ukraine’s international commitments and other international agreements could further impede access of Ukrainian goods to the EU market by strengthening trade barriers associated with more stringent environmental requirements. It has been shown that today the level of climatic neutrality and environmental load on the environment in Ukraine does not correspond to European standards. This enhances the importance of adapting the Ukrainian industry to the requirements of the EGD. To address the shortcomings, the authors propose regulatory and institutional changes. Paper recommends developing economic incentives to save energy and primary material resources, modern waste management methods to minimize waste volumes, disseminate environmental innovations and environmentally friendly resource-efficient technologies to develop “green” business.

Conformity assessment for organic products in the European Union

The adoption of organic agriculture has acquired particular significance as one of the effective means of high-quality and safe products recovery. A brief conformity assessment of requirements for organic products and their regulation in the European Union is provides. The EU legislative acts are confirmed to EU market features raised for organic products. EU regulatory legal acts for imports of organic products from third countries, food quality and labeling of organic production, organic aquaculture animal and seaweed production, organic wine are considered. All food manufacturers must comply with general EU foodstuff laws and regulations, which include labeling regulations. Regulation is complemented by several legislative acts on the production, distribution and marketing of organic products, which are the legal framework for determining rules for their implementation in the EU. The United States permits the sale of European products that produced and certified under the EU organic program as organic in the United States are considered. Legislative acts EU Regulation 1235/2008, EU Regulation 2020/25, EU Regulation 889/2008, EU Regulation 710/2009, EU Regulation 203/2012 are discussed.

Suitable Areas for Apiculture Expansion Determined by Antioxidant Power, Chemical Profiles, and Pesticide Residues in Caldcluvia paniculata Honey and Beeswax Samples

Forty-two samples of Tiaca Honey (Caldcluvia paniculata) obtained from beehives belonging to 14 apiaries (three honey samples per apiary) were collected at the end of January near Osorno (40°34' S, 73°8' W), Puyehue (40°40' S, 72°37' W) and Frutillar 41°7' S, 72°59' W) covering an area of 1240 km2. They presented the highest phenol contents (0.36 mg gallic acid equivalent/kg) and antioxidant power (1.27 mM equivalent of Fe+2/g of sample), and were among the highest for antiradical activity. Phenol contents and antioxidant power (r = 0.72, p-value < 0.01) and total phenol contents and antiradical activity (r = 0.69; p-value < 0.01) displayed linear correlations. Only two beeswax samples showed residues of the pesticide fenhexamid. The respective sites (Purranque [40°55' S, 73°10' W] and Coligual [40°49' S, 72°54' W]) were the only areas located near active farms. Additionally, the m/z value 163.1091 was found as an element to identify honeys. Data were used to construct a mapped suitability index ranking for pesticide-free areas with high biological quality. The provided chemical profiles will aid local beekeepers in obtaining international certifications, particularly for the EU market. In turn, the constructed maps indicate suitable areas for apiculture expansion, while differentiated pesticide detection in honey and beeswax requires further comparative research.

Вплив новітніх концепцій державного управління в країнах ЄС на розвиток системи соціальної роботи

Розглянуто досвід та інноваційні методи управління і стандартні процедури вдержавному управлінні країн Європейського Союзу та їх вплив на ефективність надання соціальних послуг. Зроблено аналіз розповсюдження неоліберальних політичних переконань та принципів нового державного управління (далі – NPM) у європейських країнах із початку 80-х рр. ХХ ст. і до сьогодні, що суттєво вплинуло на існуючу систему соціальної роботи. Виокремлено дієві інструменти: інформатизація, дебюрократизація, децентралізація, деінституціалізація, деконцентрація (аутсорсинг), приватизація та запровадження економічних механізмів регулювання управлінських процесів і сервісне адміністрування, які можна впровадити у реформування державного управління системою соціальної роботи в українському суспільстві.

Market Analysis and Meal Ready-to-Eat Main Course Development in the Context of Military Use

Abstract A one-day ration can be supplied to a soldier in the form of one ration pack for 24 hours or three packs of meal ready-to-eat, which equals one 24-hour ration. Based on the physical activity level and consequently energy requirements, there are two categories of military operations: a) normal operations, comparable to urban police work or firefighting, and b) combat operations which represent missions involving light-infantry. The aim of this study was: a) to analyse the EU market on the subject of a main course (MC) product in flexible packaging (n = 184), in the context of military use, and b) to develop thermostabilised MC aligning with modern health and nutrition recommendations for military use, i.e. protein, carbohydrate, fat, total energy intake, and essential amino acid composition. The greatest amount of ready-to-eat meals with shelf-life over one year are produced in the United Kingdom (n = 48) and most of the MC meals are preserved using freeze-drying (n = 135). While 90% of analysed products meet fat criteria for a physically active consumer (i.e. soldier), 39% meet carbohydrate criteria, 21% meet energy intake criteria, only 1% of the products are able to fulfill protein requirements. In this study, nine MC meals with shelf-life of three years were developed, which provide the necessary protein amount for a highly physically active consumer and cover its daily essential amino acid requirements.

Upgrading the notion of “sustainable foods” in the European Union: concept and challenges

The article emphasizes that Ukraine, as an active exporter of agri-food products and agricultural raw materials to the European market, needs to take into account the new EU approach to categorization of products based on their sustainability indicators. The European Commission will formulate a legislative proposal on the framework of a sustainable food system, and general requirements for sustainable foods, and their certification and labeling according to sustainability indicators by the end of 2023. Based on the presently available EU documents (first of all, the Farm to Fork Strategy) the author generalizes the main principles and requirements for sustainable foods that will become standard for all foods placed on the EU market in accordance with public interests. It is substantiated that the quite new for Ukraine concept of "sustainable agri-food product" has a broader content than the concept of "eco-friendly product" or "organic product", as environmental friendliness is just one of the characteristics of sustainability, along with the climatic and social ones. The main differences between sustainable and eco-friendly/organic products are systematized. A prominent place in the article is given to the climate criterion of sustainability, in particular, the reduction of greenhouse gas emissions in the production and supply of agricultural food (carbon footprint), which meets the target of decarbonization and achieving climate neutrality in Europe. In the context of creating a harmonized EU methodology for food sustainability, the author considers the content and components of the ecological footprint (land area used for production and utilization, water resources, carbon dioxide emissions, and food miles). The article provides global experience of voluntary certification of food sustainability, and national programs for certification of food sustainability, in particular soybeans in the USA and Canada, which testifies to the growing differentiation of the food market and a tendency towards official certification and labeling of sustainable foods. The author highlights the challenges for Ukrainian exports to the EU under the increasing requirements for the sustainability of agri-food products. In particular, high levels of greenhouse gas emissions from crops (corn and oilseeds) may lead to restrictions on their exports as raw materials for biofuel production. Tracking of chemical pesticide and antimicrobial residues in exported products is expected to be tightened, as the use of these hazardous substances in the EU should be reduced by 50% by 2030. The revealed asymmetry of the spread of the concept of "sustainable foods" between foreign (quite common) and domestic (almost absent) scientific and journalistic sources may indicate that domestic farmers might not be prepared for a timely reorientation to production and export to the EU of sustainable agri-food products. It is obvious that the better off countries will be those who manage to modernize their national agri-food systems in advance in the context of ensuring product sustainability.

OLIGOPOLY TRENDS IN ENERGY MARKETS: CAUSES, CRISIS OF COMPETITION, AND SECTORAL DEVELOPMENT STRATEGIES

Uncertainty in the markets associated with COVID-19 created the need for choosing the optimal model of energy markets. At the current stage of energy markets development, oligopoly tendencies tend to prevail. The article discusses the problem of choosing an effective energy market model, using the example of the electricity market. The competitive energy market of the European Union (finalized with the adoption of the Third Energy Package) was chosen as the basic model, with which the energy markets of the Russian Federation and Azerbaijan are compared. The basic indicators of the EU market were defined and compared with similar indicators for the Russian and Azerbaijani markets. The article explored the main tendencies as well as deadweight losses for Russian and Azerbaijani markets. Recommendations for improving the competitiveness of the markets are developed. The study showed that the level of market competitiveness was directly associated with the economic security of the energy market. The ways of increasing market liberalization in Russia and Azerbaijan were proposed. The proposed gradual liberalization of electricity markets involves the transition from a closed monopolistic to an open competitive electricity market, changing the institutional structure, the search for new and effective mechanisms of interaction between the buyer and seller of electricity. It also creates an opportunity to improve the quality of electricity supply, increase the investment attractiveness of the sector at large, and reduce the cost of electricity.Keywords: degree of competition; electrical power; energy markets; European Union; market model.JEL Classifications: D43, D47DOI: https://doi.org/10.32479/ijeep.11634

Strengthening the Enforcement of Customs Debt within the Institution of Customs Debt Security in the EU

This article examines the institution of customs debt security under the EU Customs Code and the closely related institution of customs debt, without which the former would not exist. The literature review carried out for this article has revealed a serious knowledge gap in this area. Based on the EU Customs Code. Three types of customs securities are presented, provided for in the EU Customs Code: mandatory (obligatory); non-mandatory (optional); not required (exemption), and applied forms of customs securities. The analysis is complemented by a discussion of the debtor’s responsibility for the debt arising by operation of law, focusing on the joint and several liability of customs debtors, which is predominant in economic turnover and constitutes a security mechanism for customs debt coverage. This mechanism on the one hand protects the EU budget and on the other hand, it guards the principle of fair competition on the EU market. customs debt, customs debt security, customs guarantor, legal principles, administrative sanction, debtor’s liability, compulsory guarantee, optional guarantee

The Pending EU CBAM: Quo Vadis Switzerland?

The intention of the EU to introduce a carbon border adjustment mechanism (CBAM) raises concerns among its trading partners fearing the loss of competitiveness in the EU market, should the measure apply to their exports. Switzerland, a major EU trading partner, has an advantage compared to many others: It has its own emissions trading scheme (ETS) in place, which due to the linking arrangements with the EU ETS results in the same carbon price for Swiss producers as for their EU counterparts. There seems therefore no need to adjust emissions costs at the border between the EU and Switzerland, and good chances for an exemption of Swiss exports from the pending EU CBAM. However, the exemption is unlikely to come without a condition: Switzerland would have to introduce its own CBAM to avoid the transshipment of other countries’ carbon-intensive products through the Swiss territory to the EU. The article discusses the main conditions and constraints for the design of an effective Swiss CBAM that would need to balance between achieving environmental and economic objectives, while also remaining acceptable from a practical, legal, and political perspective. In designing its CBAM, Switzerland could follow the EU model and adjust it accordingly depending on the reaction the EU measure will provoke among stakeholders. Statements and recommendations on a CBAM design made in the article hold true, for the most part, also for other third countries. Carbon Border Adjustment, Emissions Trading, WTO Law, EU, Switzerland

Cyber-insurance in EU policy-making: Regulatory options, the market's challenges and the US example

Over the last decades digital technologies have penetrated our daily lives affecting all aspects of our societal and economic activities. Even though the benefits of relying on information systems to run everyday tasks, organise one's business, interact with each other or enjoy public services are undisputable, the increasing use of digital technologies comes with a price: the growing exposure to cyber risks. This new type of threat has been in the center of the EU agenda for over 15 years during which a solid legislative framework for the protection S of network and information systems against cyber incidents has been developed. However, security and resilience of infrastructures and networks is one parameter of the challenge. Dealing with the financial risk emerging from a cyber incident, is another, equally important one. The need to mitigate these risks led to the emergence of a new insurance market, the cyber insurance market. Despite though the constantly growing demand for this type of insurance coverage, the market is still under development. The fast-evolving nature of cyber threats, the lack of a common language as regards risks, losses and coverages and the lack of historical data on cyber incidents are listed among the factors that slow down the market's growth. Currently, all involved stakeholders in the insurance field are considering specific initiatives that would accelerate the process of turning the EU market more competitive and efficient against its many challenges. The example of the US cyber insurance market, with its shortcomings and know-how, could also contribute to this effort, as an example of a market that has been intensively facing these challenges for almost twenty years.

Trade Relations Between EU and African, Caribbean and Pacific Countries: With or Without Economic Partnership Agreements?

Purpose: The article aims to present the benefits and costs for ACP countries of the conclusion of Economic Partnership Agreements (EPAs) and of the implementation of trade liberalisation thereunder, in the light of their trade relations with the European Union Member States. Design/Methodology/Approach: The article employs an analytical and descriptive method. Empirical (indirect observation and description) and general methods, including deduction and induction, were used to achieve the aim of the study. It draws on sources from the national and international literature, secondary legislation of the European Union in the form of regulations as well as on EUROSTAT statistics. Findings: The analysis produced no unambiguous results, but they do indicate that the answer to the above question depends on the economic situation (status) of the country concerned (in this regard, the group of ACP Countries is very diversified). As regards LDCs, the ‘no EPA’ option seems to be the most favourable, whereas non-LDCs would benefit from an EPA due to the fact that if EPA is not signed, the EU “makes a threat” of suspending preferences, and this means worse EU market access conditions for these countries. Practical Implications: Practical implications for entities involved in trade with the African, Caribbean and Pacific countries and initiating further research to examine the situation of the ACP countries, the progress of EPA negotiations and their consequences. Originality/value: Performing a critical analysis of provisions contained in economic partnership agreements made by the European Union with the ACP countries and demonstrating that such agreements serve mainly the purpose of defending the EU’s interests, but not the interests of the ACP countries, moreover, identifying weaknesses, opportunities and threats concerning the agreements in question (a SWOT analysis).

Development of online shopping within B2C e-commerce in the Visegrad Four countries

Online shopping has become an increasingly common way of shopping in recent years. The main goal of the paper was to evaluate and compare the development of online shopping in the Visegrad Four countries (Slovakia, Czech Republic, Poland, Hungary). The paper outlines the theoretical basis of online shopping concept, describes the current situation of online shopping in the EU market and the main types of goods and services purchased through the Internet. Based on data from the Eurostat database, the paper outlines the development of online shopping in the years 2011 to 2019, the share of online purchases in the EU market and online purchases of goods and services within the V4 countries for the given years. We found that in all countries, an increasing trend of online shopping was recorded over the period under review, with the largest increase in the Czech Republic. There was also a growing share of online purchases from retailers in other EU countries, with the largest increase recorded in Hungary. With regard to online purchases of services, year-on-year decline over the period of two years has been recorded in Slovakia.

Зовнішня торгівля аграрними товарами України в контексті Угоди про асоціацію з Європейським Союзом

The purpose of the article is to establish, based on the analysis, trends in foreign trade and directions for improving the competitiveness of agricultural goods of Ukraine in the EU in the context of the implementation of the Association Agreement. Research methods. In the course of the research the following methods were used: analysis and synthesis, analytical generalizations - during the analysis of foreign trade in agricultural goods; tabular - for clarity of the image of the received results of research; economic and statistical - to assess trends in foreign trade; abstract-logical - in drawing conclusions. Research results. The article analyzes the volume, dynamics, structure of exports and imports of agricultural goods of Ukraine with EU countries, assesses changes in the foreign trade regime, identifies trends and the impact of the implementation of the Association Agreement between Ukraine and the EU on Ukraine's foreign trade. The place and importance of the agricultural sector in European markets are studied. The foreign trade turnover of agricultural goods of Ukraine is determined. The algorithm for assessing the level of competitiveness of agricultural goods is generalized. Scientific novelty. The authors found that, on the one hand, the export orientation of raw materials to the EU market of crop products has increased, on the other hand, there is a high import dependence on finished food products, and the structure of imports is more diversified. Practical significance. Adaptation of Ukrainian legislation in the field of agriculture and sanitary and phytosanitary measures is incomplete and lags behind the planned pace. Ways to diversify exports and increase the profitability of foreign trade in agricultural goods from Ukraine in the EU market are proposed. Tabl.: 1. Figs.: 3. Refs.: 19.

SERBIA'S APPROACH TO CHINA'S SILK ROAD: OPPORTUNITIES AND RISKS

When China introduced the strategy for the new Silk Road in 2013, it had once again affirmed its position as a global leader and defined future direction in its foreign policy and economic development. As one of the most ambitious projects ever, once fully implemented, the new Silk Road will connect markets in Asia, Middle East, Africa and Europe, strengthen cooperation between countries and boost international trade flows.This paper analyzes the importance of the new Silk Road for economies along its corridors, аs well as the impact on Serbia’s economic development. It examines China’s investment model in Serbia, sectors with the largest volume of investment and the potential risks that developing countries could face through the implementation of BRI projects. The review also evaluates the attractiveness of the Serbian market and its role in the BRI vision in the Western Balkans. Preliminary research indicates that investments from China in recent years have had a positive impact on Serbia’s economic development. It is anticipated that further enhancement of investment relations between Serbia and China may have a wider impact not only on the realization of BRI goals in Serbia, but also in Europe, considering Serbia’s geographical position and the potential to bring Chinese companies closer to the EU market.