European Neighbourhood Instrument Research Articles

Community Resilience in Belarus and the EU response

Community Resilience in Belarus and the EU response

Ukraine’s experience and prospects of cross-border cooperation: Legal and economic parameters in the light of sustainable development

The article provides a general overview of the course of forming Ukraine’s legal and policy basis for cross-border cooperation in connection with economic development. Specific attention is given to its cross-border cooperation with the neighbouring Eastern European countries in the frameworks of bilateral treaties, the Madrid Outline Convention and the EUUkraine Association Agreement. Their cooperation within four Euroregions, supported by the EU European Neighbourhood Instrument, is observed. The complex of cross-border cooperation advantages, shortcomings of their realisation and the current prospects for cross-border cooperation advancement in the light of sustainable development are characterised.

The current state of investment and financial cooperation between Ukraine and the European Union

Relevance of research topic. Nowadays the Ukraine's relations with the European Union are extremely important. European integration for Ukraine is a strategic choice for the future, and it makes a great influence on the place and role of the state in the new system of international relations, including economic, monetary and financial ones. Formulation of the problem. Ukraine's reform agenda is comprehensive and requires significant financial resources that cannot be raised solely from domestic sources. This determines the importance of attracting foreign funds, including those from the EU as a strategic partner of Ukraine, as well as the creation of a favourable investment climate and therefore the intensification of foreign investment. Analysis of recent research and publications. In the background of Ukraine's European integration intentions, a significant number of scientists study the problems and prospects of investment and financial cooperation between Ukraine and the EU. This cooperation is the subject of constant monitoring by European government agencies and central executive bodies of Ukraine as well. Selection of unexplored parts of the general problem. In the conditions of unstable global political and economic environment, new challenges in the region and the extreme dynamism of investment and financial processes, it is necessary to conduct the research reflecting the current state of investment and financial cooperation between Ukraine and the EU. Setting the task, the purpose of the study. Highlighting the state of investment and financial cooperation between Ukraine and the EU at the current stage of Ukraine's European integration. Method or methodology for conducting research. System and structural approach, method of logical analysis, statistical method, method of graphic analysis, method of comparison, method of structuring. Presentation of the main material (results of work). The paper describes the political background for investment and financial cooperation between Ukraine and the EU. The analysis of foreign direct investments in Ukraine by countries of origin and by areas of attraction is carried out; the dynamics of direct investments from EU countries in Ukraine's economy for 2010-2019 is described. The current state of application of the valid instruments of investment and financial support given to Ukraine by the EU is analyzed. The areas of priority attention in the process of implementing reforms in terms of attracting the investment from the EU are identified. The field of application of results. Research of Ukraine’s European integration problems, educational process (in the preparation of the relevant sections of textbooks and tutorials for courses “International Economics”, “Global Economics”, “Finance”). Conclusions according to the article. The EU sustainable financial support covers many sectors of the economy and public life in Ukraine, including agriculture, infrastructure, transport and energy, small and medium-sized enterprises, as well as democratic reforms, overcoming the effects of the COVID-19 pandemic, research and innovation, the environment, support for military conflict victims, etc. The EU supports Ukraine through various instruments, including macro-financial assistance, the European Financial Institutions (EBRD and the EIB), bilateral support from EU member states, the EU External Investment Plan, the European Neighbourhood Instrument, and the Instrument contributing to Stability and Peace. The volumes of EU foreign direct investment in Ukraine still remain low, and their structure by country of origin is not optimal. It is important for Ukraine to attract investments from the most developed EU countries, which is possible only if an attractive investment climate is formed, and the rule of law and the fight against the corruption are ensured.

EU‐Russia cross‐border co‐operation in the twenty‐first century: Turning marginality into competitive advantage

AbstractThis paper aims to examine how Russian north‐western regions and municipalities use their marginal/border position as a resource to build a sustainable development strategy. Theoretically, this study is based on the marginality theory which states that border or remotely located subnational units are able to turn their marginality from disadvantage to a resource and transform themselves from depressed and provincial territories to attractive places hosting intense international flows of goods, services, capital, technologies and people. A number of venues for the EU‐Russia cross‐border co‐operation are explored: the European Neighbourhood Instrument, Northern Dimension partnerships, Euroregions and city‐twinning. The authors conclude that despite some problems with establishing a proper division of labour between above programmes and project implementation cross‐border co‐operation proved to be a valuable instrument not only for successful development of the marginal/border actors but also for establishing mutual trust and collaborative relations between Russia and neighbouring EU countries.

The SILC Road local culture project: opportunities for destination Varna in the Black Sea coast region

Тhe report is dedicated to the project Silk Road Local Culture – SILC – under the Joint Operational Programme Black Sea Basin 2014-2020. The programme is co-financed by the European Union through the European Neighbourhood Instrument and by the participating countries: Armenia, Bulgaria, Georgia, Greece, Romania. The report outlines the opportunities resulting from the SILC Road Local Culture project for Varna in the context of good international practices for the use of the Silk Road cultural and historical heritage for tourism purposes.

SUB-STATE MOBILIZATION IN ‘HIGH POLITICS’: THE ROLE OF REGIONAL AND LOCAL GOVERNANCE IN THE IMPLEMENTATION OF THE EUROPEAN NEIGHBOURHOOD POLICY

Subnational mobilization literature has flourished since the mid. 1990s. Regional and local authorities have tried, not always successfully, to utilize alternative channels of representation in the European Union (EU) in different policy areas and with different scope and depth. The policy areas and the degree of subnational mobilization is greatly varied contingent on exogenous -at the EU level- and endogenous -within local and regional organisational capacity- factors. Most commonly, subnational authorities (SNAs) find themselves involved in cohesion policy issues, environmental affairs, and social policy measures, mostly involved in the implementation phase. However, as the EU continuously emphasizes the importance of regional and local authorities in facilitating the European integration process, it has fuelled SNAs’ institutional ambitions and expanded their aspirations for participation in new policy areas, even in fields traditionally considered to be exercised –and monopolized–by national authorities, such as foreign policy issues. This article focuses on the role of subnational institutions in the European Neighbourhood Policy (ENP), a relatively new policy area compared to other established EU policies. In short, the ENP was introduced in 2004 and revised in 2011 and 2015. Its rationale is to bring closer EU countries and their neighbours, so as to work together on issues regarding prosperity, stability and security for all. The ENP constitutes a policy field for subnational authorities that aim to mobilize in the supranational arena. The European Neighbourhood Instrument (ENI – former European Neighbourhood Policy Instrument/ENPI) is the ENP financial tool which provides opportunities for “financial mobilization” to institutional actors by granting funds for implementing programmes. In addition, the European Committee of the Regions (CoR), the official assembly of representatives of local and regional authorities in the EU, stands for another channel for subnational mobilization. Through specific policy initiatives that have been established and promoted by the CoR, namely the Conference of Regional and Local Authorities for the Eastern Partnership (CORLEAP) and the Assembly of Local and Regional elected Representatives from the EU and its Mediterranean partners (ARLEM), local and regional institutions have the opportunity to actively participate in the ENP. Moreover, the European Grouping of Territorial Cooperation (EGTC) serves as a distinct policy tool for enhancing territorial development and cooperation, allowing for the engagement of subnational actors from different EU countries –and third countries as well. Drawing on the literature of multi-level governance, it is argued that sub-state entities have managed to expand their institutional role in new policy areas that have been traditionally monopolized by central state authorities. Empirical evidence is utilized by examining certain types of subnational mobilization originally found on initiatives proposed and developed by the CoR, the financial instrument of the ENP (ENI) as well as the EGTC. DOI: http://dx.doi.org/10.5755/j01.eis.0.12.20869

The spatiality of trust in EU external cross-border cooperation

ABSTRACTThis paper argues that effective cross-border cooperation (CBC) networks closely interrelate with the building of ‘trust’ between actors. The aim is to contribute to the CBC literature by investigating the different forms of trust, their spatial attributes and impact on actor relations in the context of the Finnish–Russian European Neighbourhood Instrument (ENI) of CBC. The paper applies a specific spatial approach by identifying the territorial and relational aspects of four different forms of trust: rational-personal decisions, social-cultural understanding, general-personal interactions and the historical–institutional environment. The analysis, based on policy documents and semi-structured interviews with relevant Finnish ENI CBC actors, shows that the study of transnational cooperation networks benefits from a conceptualization of trust recognizing its spatial characteristics. The study concludes that sub-national actors are key agents in the formation and maintenance of trust. These actors negotiate with socio-cultural differences through the development of personal relationships which increase social capital in the actor–network. However, the cooperation network is vulnerable towards geopolitical circumstances affecting foreign relations. The paper demonstrates that Finnish ENI CBC actors are operating in a transnational network in which their activities are challenged by territorial constraints such as national border-crossing regulations.

The role of territoriality in the European Union multi-level governmental cooperation framework of Finnish–Russian cross-border cooperation

The economic sanctions in the wake of the Ukrainian crisis threatened external cross-border cooperation (CBC) funded by the European Neighbourhood Instrument (ENI) in the summer of 2014. The European Union considered several of the ENI CBC programmes that Finland and Russia participate in for the sanctions list. These programmes are implemented by a multiplicity of actors that include supra-national, national and regional authorities and form a dense actor-network with vertical and horizontal relations. The political relations between the actors are influenced by geopolitical discourses, bordering effects and power imbalances that are conceptualised in this paper as practices of territoriality. Previous research has insufficiently addressed the territoriality of actor relations within the multi-level governance (MLG) structures of CBC. Territoriality is present in MLG in the sense that CBC actors from various political levels significantly contribute to the territorial logic of political power by promoting their own interests towards cooperation practices. The research problem in this paper stems from the alleged non-hierarchical organisation of actors in CBC and argues that MLG policy structures do not render equality among the different actors and that they fail to consider the impact of territoriality. The paper investigates how territoriality influences the actor relations in the MLG structure of ENI CBC and how the actors cope with the frictions that emerge out of territoriality. Qualitative interviews reveal a conflicting system of governance in Finnish–Russian ENI CBC that fluctuates between state centrality and region-based initiatives to address frictions of various territorialit(ies) produced by actors.

The System of Cross-border Tourism in the Polish-Russian Borderland

Abstract The main aim of the paper is to analyse the system of cross-border tourism between Poland and Russia. In order to study the system, interviews and surveys were conducted; statistical data, legal documents and other sources were analysed and interpreted. A model of cross-border tourism was used in this article. The key stakeholders of tourism organisational system were specified and links among them were discussed. In relation to the development of cross-border tourism, five types of cross-border areas were distinguished (frontier zone, cross-border administrative area, Euroregions, eligible area of the European Neighbourhood Instrument, local border traffic). This article presents the functioning of the border, an analysis of border traffic in the years 2002-2014 was performed and the causes of fluctuations in such traffic were given. Also the relation between border formalities and the volume of border traffic was discussed. Cross-border cooperation and the introduction of “small border traffic” were proven to increase significantly the volume of cross-border tourism.

Whose partnership? Regional participatory arrangements in CBC programming on the Finnish–Russian border

ABSTRACTCross-border cooperation (CBC) serves as a tool to combat peripherality of border regions and integrate formerly disconnected borderlands. Resting on the principles of partnership and multi-level governance, CBC activities are deemed by the European Union (EU) to include local/regional authorities, economic and social partners at various stages of the cooperation process. Even at the EU's external borders, where EU regional development principles of CBC are endorsed in an often uneasy combination with external policy principles, joint cross-border administrative arrangements and regional programme designs have been introduced through successive administrative reforms. Analysing the preparations for the European Neighbourhood Instrument Karelia CBC (2014–2020), it is argued that in order to promote regional development goals the priorities of CBC programmes should be in line with the aims of local/regional stakeholders, which requires resilient consultation and participatory processes throughout the programming cycle. Participant observation of the Finnish–Russian Karelia CBC programme preparations helped the authors pinpoint achievements and weaknesses of current joint programming solutions and investigate ways in which the partnership principle is put into practice in the preparatory processes. In the current political climate, it is interesting to note that CBC was not included by the EU or Russia in sanctions/countersanctions that were the result of the crisis in Ukraine.

Mechanisms Fostering Social Entrepreneurship as Potential Instruments for Economic Development: The Eastern Partnership Perspective

Abstract With its plan to assign 600 million euros through the European Neighbourhood Instrument for Eastern Partnership countries, the European Union intended to increase the efficiency of institutions, attenuate social problems, and create an environment that fosters economic growth and human well-being in Armenia, Azerbaijan, Belarus, Georgia, Moldova, and Ukraine. A few scholars have criticized the amount of funding and planned initiatives of the European Neighbourhood Instrument as insufficient and suggested that in order to foster cooperation and support reforms in its Eastern Partnership countries, more action should be taken. In times when European Commission budget is under constraints of consolidation and increase of aid for supporting European Neighbourhood countries is hardly possible, alternative solutions for tempering social problems need to be assessed. Various scientists, philanthropists and entrepreneurs see social entrepreneurship as a tool for solving social problems in a sustainable way where business thinking is being combined with non-profit philosophy. Contrary to government support and intervention for solving social problems, social entrepreneurship is already being used as tool that initially addresses joint needs--solve social problems and create revenue that provides much needed income for sustainable business initiatives. This paper analyzes the concept of social entrepreneurship, examples where social entrepreneurship is solving social problems, and mechanisms that can foster these phenomena. The aim of this paper is to examine different mechanisms of how governments can foster the creation and development of social entrepreneurship. Unique survey data derived from a project examining social entrepreneurship in Europe is used. It is concluded that by adopting mechanisms proven in various developed countries, the Eastern Partnership countries can stimulate social entrepreneurship, thus attenuating social problems and creating environment that fosters economic growth and the wellbeing of people

The Programming of EU’s External Assistance and Development Aid and the Fragile Balance of Power between EEAS and DG DEVCO

The Lisbon Treaty left the question of the future organization of the European Union's external assistance and development aid largely unanswered. It was only after its entry into force on 1 December 2009 and with the adaptation of the European External Action Service (EEAS) that a major organizational revision of the EU's foreign aid was set in motion. Development - and in its extension neighbourhood - is now the crucial area of work that straddles both the EEAS and the Commission. This article outlines the dispute over the division of labour of the programming and management cycle and the tools of European external assistance and development aid. The subsequent reorganization of powers between the EEAS, the new DG DEVCO and the up-graded EU Delegations is examined and the general impact of this rearrangement on the future paths of the EU's foreign policy is tackled. The focus lies on strategic planning and programming of EU's main external action instruments for the years 2014-2020: the European Development Fund (EDF), the Development Cooperation Instrument (DCI) and the new European Neighbourhood Instrument (ENI).

The Economics of the 'European Neighbourhood Policy': An Initial Assessment

Abstract This paper describes the general framework of the EU’s emerging relationship with its new neighbours and investigates the potential economic impact of the European Neighbourhood Policy (ENP), both for the EU itself and for its neighbours. In particular, it seeks to develop an answer to the question of whether the ENP is sufficiently attractive so as to induce the governments in neighbourhood countries to adopt (or accelerate the adoption of) the types of economic and governance reforms that were implemented in the new member states during their accession processes. Although the specifics of the ENP are still being developed, the lack of incentives as regards to unclear accession to the EU is identified as the main weakness of the ENP. Economically, the ENP seeks to ease trade restrictions through the implementation of legislative approximation and convergence with EU standards, before accessing the EU’s single market can become a reality. Positively though, is that the access to the single market could improve significantly under the ENP. As experienced by the Central European states, FDI is instrumental to transform the economies of the Western CIS and the Caucasus. The ENP can be a supportive framework for improving investor confidence. Likewise, the new European Neighbourhood Instrument can add more coherence in technical assistance, and provide more financial support for creating capacities for trade infrastructures and institutional and private sector development. Finally, measures to promote increased labour migration between the new neighbours and the enlarged EU may be worth to put on the agenda for the future development and impact of the ENP.