Afleveringen
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A new EuroMed Pact could reinvigorate EU-MENA relationsBy James Moran
The recent history of the EU’s relations in its ‘southern neighbourhood’ can hardly be called its finest hour. It has been preoccupied with defensive policies, notably the focus on controlling illegal migration, spurred by the far right’s growing support. Then there’s the rise of other world powers in the MENA region such as China, Russia and Turkey, which are often less demanding on fundamental values and economic reform.
This has holed the European Neighbourhood Policy (ENP) in the South below the water line (the ENP in the East is effectively obsolete) and if not yet irretrievably sunk, it’s listing badly and in need of more than a salvage operation. The US’ disengagement from the region (other than Israel) hasn’t helped either.
Above all, the failure to effectively call out Israel’s disproportionate military campaign and disregard of international law in Gaza, as well as its aggression in Lebanon and Syria, has plagued the EU with accusations of double standards vis-à-vis its positioning on Ukraine. This has badly damaged the EU’s reputation as a global force for peace.
That said, the EU still matters in the region. For most MENA countries, it’s still the largest trader, investor and source of aid, as well as a growing security provider. People-to-people links are also second to none, whether through the EU’s large immigrant communities, the millions who have studied in Europe, or through the still substantial support the EU provides to MENA civil society.
Notwithstanding Israel/Palestine, the EU is also seen as a relatively reliable partner that respects its agreements. Today, as countries like Jordan and Morocco could be subjected to unjustified US tariffs at any moment (despite having FTAs with Washington), reliability is more than ever a prized commodity.
And the region also matters to the EU. Some 250 million relatively young and increasingly well-educated citizens live just a few hundred kilometres across the mare nostrum in countries with major energy resources, whether they be sun, wind, green hydrogen or gas. It’s also an important market for EU exports and a potentially competitive source of products and labour for a rapidly ageing Europe – provided that the right balance can be found in the EuroMed partnership.
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To retaliate or not to retaliate? Or three reasons why the EU shouldn’t react to US tariffs (at least for now)By Cinzia Alcidi
Donald Trump’s ‘Liberation Day’ has delivered the highest tariff hike in nearly a century. If they’re implemented, the average US tariff rate will rise to 22.5%, around 11 percentage points higher compared to March. Trump has given the world just one week to absorb the news and potentially begin negotiations.
European Commission President Ursula von der Leyen was quick to promise a proportionate response while maintaining an openness to dialogue. But the reality is that any retaliation would be far from ideal. It would be driven by the political pressure to show that such aggression won’t be tolerated and not by cold-hard strategy (as it should be).
There are at least three reasons why it would be wise for the EU not to react – at least for now – especially if reacting involves duties or taxes targeting US goods or services.
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Zijn er afleveringen die ontbreken?
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Disk backup to the cloud is a gaping vulnerability in the EU’s securityBy J. Scott Marcus
Suppose vast quantities of Europeans’ digital data were being sent every few days to a foreign power that has threatened military action against an EU Member State. How should the EU react?
Oh, and that foreign power isn’t Russia or China – it’s the United States.
We’re not talking about the data provided to online service providers such as Google and Facebook – rather the disk backups that are running on everyone’s personal computer, typically every few days. This potentially enormous security exposure is just sitting in plain sight but hasn’t yet visibly bubbled up into the consciousness of European policymakers.
That needs to change – the EU needs to conduct a detailed threat assessment reflecting the new realities, identifying who needs to make changes… and how.
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The EU’s competitiveness drive could turn quality jobs into a mirageBy Davide Monaco
In the wake of the Draghi report and the EU Competitiveness Compass, ‘competitiveness’ is again dominating debates about the present and future of EU economies and societies, despite being long criticised as an elusive concept or a dangerous (and wrong) obsession.
This is hardly new. The search for competitiveness has shaped EU integration and policy discussions for at least three decades. It was already at the heart of the 1993 White Paper on ‘Growth, Competitiveness and Employment’ and the 2000 Lisbon Strategy. A decade later, the drive for competitiveness underpinned how the eurozone debt crisis was managed, legitimising austerity, wage restraint and the rise of precarious work in many countries.
This time, we’re being assured that competitiveness will bring about ‘good jobs’ and won’t come at the expense of wages and workers’ wellbeing. But will this really be the case? If recent developments are any guide, we have some very good reasons to be skeptical.
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Europe’s retail payments are a success story – we need to keep it that wayBy Judith Arnal, Fredrik Andersson and Beatriz Pozo
We’re undergoing a global transformation marked by competition for resources, value chain shifts, geopolitical tensions, humanitarian crises, climate change and demographic challenges. This shifting landscape is forcing EU leaders and businesses to rethink their strategies.
The Letta and Draghi reports in particular urged the EU and its Member States to act – rethink governance, remove barriers to innovation, address productivity gaps, simplify legislation and ease compliance burdens.
But if the EU wants to face to these new challenges and emerge stronger, its financial sector needs to be resilient and competitive – and the retail payments system is a crucial part of the financial sector. It underpins economic activity, facilitates cross-border transactions and supports financial stability. In short, it’s one of the foundations of Europe’s digital and economic sovereignty.
Recently, the payments sector has experienced significant transformation driven by digitalisation, rapid technological changes and evolving consumer expectations. That’s why it’s essential to take a forward-looking approach and fully take advantage of the ‘payments revolution’.
The good news is that Europe’s payments landscape is dynamic well-functioning, and increasingly innovative and competitive. Yet it has started to lose ground in terms of reach and scalability, as some key players only operate within their national borders rather than EU-wide. This means that Europe could remain fragmented in a world where scale, speed and technological leadership define success.
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In the plutocratic age of ‘broligarchy’, democracy is in deep trouble – but there’s still hopeBy Julia Pocze
The democratic rule of law is badly deteriorating in many parts of the world and those responsible are hiding in plain sight. In fact, they’re not hiding at all, but they do pretend that their conduct supposedly benefits the public good instead of seriously harming it.
A play on ‘oligarchy’, ‘broligarchy’ is being increasingly used to describe the influence and power of US tech billionaires not only on certain policies and legislation, but on the entire system of checks and balances that underpins the rule of law. While it’s true that a small group of billionaires and the political right have developed a symbiotic relationship across the US and also in Europe, there’s more to this story than merely condemning a few select incredibly wealthy individuals.
In Europe – like everywhere else – corporate influence on policymaking has long been an issue, as lobbyists working for big companies tend to have ‘privileged access’ to decision-makers and, thanks to the millions they spend, have a more extensive impact on political outcomes. This creates a ‘two-tier’ version of democracy, where immense wealth can easily be translated into political power, reinforcing and exploiting existing inequalities across society.
Meanwhile, another International Women’s Day has come and gone, with many political leaders emphasising equal rights and social justice. Their words, however, are hollow so long as moderates continue flirting with the ever-stronger extreme right and most political groups continue to accommodate corporate interests that might be diametrically opposed to justice and equality.
To deliver on the grand ideals of justice, democracy and even equality – as promised in the EU Treaties, in the Charter, in national constitutions and countless political manifestos – the EU must meet the challengers to its core values head on. Instead of falling in line with the backlash against diversity, equity and inclusion (DEI), it must double-down on its supposed commitment to these principles.
For the third year in a row, CEPS is marking International Women’s Day on 8 March with a special short series of Expert Commentaries to highlight the insights and expertise of some of our most talented female researchers.
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With the US leaving the WHO, Europe must urgently increase its global leadership in health preparedness – not weaken itBy Alice Orlandini
Five years on, Covid-19 taught us the hard way, that health crises can turn our lives upside down overnight – forcing lockdowns, halting even the world’s strongest economies but, most importantly, killing millions. The pandemic exposed the weaknesses of the most advanced healthcare systems – including the EU’s – and demonstrated that unilateral actions are a losing strategy when it comes to tackling cross-border health threats. It became clear that preparedness and prompt, coordinated responses are the crucial ingredients in a successful approach.
This is even truer since Covid-19 is unlikely to be an isolated event. Future pandemics are inevitable due to climate change, deforestation and the loss of biodiversity. With governments around the world scaling back their commitment to both environmental policies and health preparedness, we’re already starting off on the wrong foot in terms of prevention – when actually this could be a great opportunity for the EU to take the initiative and show some global leadership.
For the third year in a row, CEPS is marking International Women’s Day on 8 March with a special short series of Expert Commentaries to highlight the insights and expertise of some of our most talented female researchers.
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Minding the gender gap – a critical omission in the EU’s AMR response
By Cosima Lenz
Gender is largely absent from the EU’s antimicrobial resistance (AMR) policies and strategies. Yet AMR is a major global health threat. It happens when microbes (bacteria, viruses, fungi and parasites) stop responding to medication, making infections harder to treat, and increasing the risk of severe illness and death. Misuse and the overuse of antibiotics accelerate resistance, turning once-treatable infections into serious health risks.
AMR is a global crisis, causing around 4.7 million deaths in 2021, including 35 000 in the EU and EEA. Recognising the urgency of this threat, the EU named AMR among its top priorities in its Global Health Strategy. The EU is playing a key role in shaping global and regional AMR policies and research through its funding commitments – which account for one-third of global AMR development assistance in 2020 – and collaborations, such as the Joint Programming Initiative on AMR, the Global AMR R&D hubs and other Horizon Europe initiatives.
Despite growing awareness of the need to recognise gender in AMR research, EU efforts have failed to incorporate gender or gender considerations. This is a significant oversight and needs to be immediately rectified as gender influences AMR risk, management and the effectiveness of health policies and interventions. Global research shows that women are more likely than men to use antibiotics in their lifetime. This trend is reflected in EU data, where women report slightly higher antibiotics use over the past year compared to men.
For the third year in a row, CEPS is marking International Women’s Day on 8 March with a special short series of Expert Commentaries to highlight the insights and expertise of some of our most talented female researchers.
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The fight for Georgia is still a fight for EuropeBy Tinatin Akhvlediani
Georgia is no stranger to political turmoil but the country now finds itself at a perilous tipping point. Georgians are known for taking to the streets, waving EU flags with unmatched passion and fighting for their European future.
But this time, with mounting geopolitical tensions and a ruling party desperate to cling to power while appeasing the Kremlin, the stakes are higher than ever. Despite months of protests, Georgian Dream (GD), the ruling party controlled by oligarch Bidzina Ivanishvili, who amassed his fortune in Russia, has only tightened its grip, escalating repression, detaining and assaulting demonstrators, and fast-tracking Georgia’s descent into authoritarianism.
In 2024, the ‘foreign agents’ law was reintroduced despite overwhelming public protests, elections were manipulated and rigged, and then came the final blow – the prime minister’s announcement that Georgia would halt EU accession negotiations until 2028. This was the last straw. Protesters flooded the streets in November and have remained there ever since.
In response, GD has passed laws that tighten restrictions on demonstrations, increase penalties for disobeying or insulting police officers, and makes it easier to fire civil servants. Additionally, new legislation is underway to ban foreign funding for media outlets and to replace the ‘foreign agents’ law with even stricter legislation to target civil society. Many civil servants have already been fired for joining public protests and several hundred demonstrators have been detained, including journalists, politicians and activists. More than 300 of them have reported beatings, torture and other ill-treatment.
The EU’s response? Underwhelming at best. A symbolic visa suspension for holders of diplomatic passports and officials, allowing EU Member States to impose visa requirements, though with the discretion to grant exemptions. Even without exemptions, the impact is limited – the diplomats and officials were not particularly eager to travel to the EU for work anyway and they can still obtain visas for personal travel. At best, it introduces procedural hurdles rather than any real consequences.
Throughout 2024, the EU has frozen EUR 30 million earmarked for Georgia’s defence sector (in July) and has suspended EUR 121 million in bilateral support (in October), followed by the European Council deciding to halt Georgia’s accession.
In short, the EU wielded the stick but not with enough force to shift GD’s course. Worse still, there’s no clear strategy for what comes next.
For the third year in a row, CEPS is marking International Women’s Day on 8 March with a special short series of Expert Commentaries to highlight the insights and expertise of some of our most talented female researchers.
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Skills aren’t your plug-and-play solution for inclusive competitiveness
By Laura NurskiSkills have become a central pillar in policy discussions on the future of work. Since the 2000 Lisbon Strategy, the EU has gradually shifted from focusing on formal education and qualifications – as indicators of skill bundles – to a greater emphasis on skills as individual units that can be independently acquired and traded. The Recommendation on Microcredentials – first adopted in 2022 and now featured prominently in the Union of Skills – represents the clearest indication of this shift.
Since then, policymakers frequently turn to skilling as a silver bullet – something to reduce labour shortages and help the workforce adapt to technological change, ultimately providing social mobility and even supporting the inclusion of vulnerable groups in both the labour market and society at large.
In the recent Competitiveness Compass skills are seen as ‘horizontal enablers’ of competitiveness that also ensure social fairness. But it doesn’t explain how exactly this mechanism would work. This isn’t surprising, as the debate on skills is riddled with misconceptions that oversimplify skills’ role in the labour market and in society.
In short, if we don’t move beyond this simplified view, inclusive competitiveness will remain out of reach.
For the third year in a row, CEPS is marking International Women’s Day on 8 March with a special short series of Expert Commentaries to highlight the insights and expertise of some of our most talented female researchers.
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The EU’s sustainability rollback is a retreat disguised as simplification
By Apostolos ThomadakisThe European Commission’s ‘Simplification Omnibus’ proposal, unveiled on 26 February, was presented as a necessary step to reduce the regulatory burden on businesses and enhance European competitiveness. By amending key sustainability directives – including the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD) and the EU Taxonomy Regulation – the Commission claims to be streamlining compliance processes for companies.
However, beneath the rhetoric of simplification lies a profound retreat from the EU’s sustainability commitments. The proposal significantly weakens corporate transparency, accountability and long-term economic credibility, undermining years of progress in environmental, social and governance (ESG) regulation.
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With a new German government incoming, the implications for Europe are substantial
By Sophie Pornschlegel and Sophia RussackGermany went to the polls last Sunday and the conservative CDU came first, followed by the far-right AfD. Upcoming coalition negotiations will ultimately determine the next government’s composition, but CDU leader Friedrich Merz will likely become the next Chancellor, with the Social Democrats (SDP) as the probable junior coalition partner.
The past 3.5 years were sobering – the ‘traffic-light’ coalition of the SDP, Greens and liberal FDP fell short of playing a constructive role in EU policymaking, despite having set itself an ambitious EU programme. Finding compromise in a tripartite coalition proved challenging and relations between France and Germany – already not in the best shape – further eroded.
With the current geopolitical situation, the new government will have to show much more EU leadership than before. But whether they can deliver is another matter entirely.
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The Italy v ICC row exposes deep-rooted hypocrisy in EU migration policy
By Davide ColombiThe Italian government’s recent refusal to comply with an International Criminal Court (ICC) arrest warrant exposes deep-rooted hypocrisy in EU migration policy. While claiming to fight ‘human trafficking’, the Italian government has shielded a high-ranking Libyan official accused of crimes against humanity and war crimes.
This case exemplifies a broader trend where ‘migration’ concerns are used to justify legal exceptionalism, erode the rule of law and foster impunity.
The case concerns Osama Elmasry (or Almasri) Njeem, chief of the Libyan judicial police. He was arrested in Turin on 19 January following an ICC arrest warrant for crimes including torture, rape and sexual violence, murder and persecution. Just two days later, he was released and flown back to Libya on an Italian state aircraft.
The Italian government presented a list of unconvincing justifications for why it released him: the Court of Appeal of Rome hadn’t validated the arrest as it awaited the necessary approval from the Minister of Justice; the documents hadn’t been translated from English to Italian; and he was expelled for being a ‘national security risk’. However, Italy’s refusal to execute the ICC arrest warrant isn’t just a procedural failure but a direct violation of Italy’s – and the EU’s – legal obligations.
The ICC is currently assessing a legal complaint against Prime Minister Giorgia Meloni, Justice Minister Carlo Nordio and Interior Minister Matteo Piantedosi, and it has given the Italian government 30 days to provide further information so it can assess its decision to not cooperate.
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Europe’s hidden AI champions are vital in its quest to becoming a global tech leaderBy Robert Praas and Pierre-Alexandre Balland
Zooming out from the buzz around DeepSeek, it’s clear the AI game is rapidly changing. The usual big tech players no longer have the playing field to themselves. During the last few weeks, a wave of impressive, mostly open-source AI models have hit the scene, many created by smaller, scrappier companies outside the traditional Silicon Valley giants.
In short, the AI landscape is no longer just about who has the most money or the biggest data centres – it’s about who can innovate smarter, faster and achieve more with less.
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Europe is taking a pragmatic approach to Syria. Its origins lie in KabulBy Loqman Radpey
Europe’s engagement with the new Syrian leadership has been notably swift, yet it still refuses to recognise the Taliban. On 19 December 2024, the European Council issued guidelines for recognising Syria’s transitional government, tying it to respect for ‘human rights, including women’s rights, non-sectarian governance, and the protection of members of religious and ethnic minorities.’ On 4 January 2025, the German and French foreign ministers visited Damascus, less than a month after Bashar Assad’s fall.
Europe’s differing approaches to Syria’s new governing authority and the Taliban clearly shows the complexity of modern diplomacy and the intricate geopolitical and ideological factors driving Europe’s Middle East foreign policy decisions.
Of course, Europe currently hosts millions of Syrian refugees, many of them having fled the violence and extremism that flourished during the civil war. With continuing pressures on European governments – ranging from housing to social integration – the prospect that these refugees might soon return to a stable Syria is an alluring incentive for Europe to positively engage with Damascus and support its transition.
But by proactively helping Syria (and doing its best to avoid the mistakes it made with Afghanistan), Europe would also be doing itself a huge favour, by alleviating social strains in hosting EU countries, taking away some of Russia’s influence in the region and contributing to long-term security in the Middle East.
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Get over the DeepSeek Panic – it might actually be a good thingBy Robert Praas and Pierre-Alexandre Balland
The release of the freely available and surprisingly capable language model DeepSeek R-1 shocked the world, made it question the growing demand for computer chips and led the mighty NASDAQ to dive on Monday. Here’s a Chinese open-source project matching OpenAI’s capabilities – something we were told wouldn’t happen for years – and at a fraction of the cost. The panic revealed more about our assumptions about AI than about the model itself.
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The EU must stay on course and be much more assertive, both at home and abroadBy Karel Lannoo
The EU should stick to its course, pursue the Green Deal and complete the single market. It needs to demonstrate its resolve and act united as a new – potentially hostile – US administration rolls in and shakes up the foundations of transatlantic cooperation and the world order. But it must also stand firm if China makes its own attempts to split an EU united front.
To do so, the EU should act decisively with the powers it has according to the Treaty, while being much more vocal against any efforts to politically undermine Europe and divide it.
We’ll see over the next few weeks how up to this task the newish von der Leyen II Commission is and how determined it is to counter pressures from both Member States and from abroad. It should clearly indicate whether it believes Europe is still able to credibly anchor itself in between the US and China – but if the past few weeks are any indication, things are not looking promising. Europe, and the EU, have been pushed into a defensive position against full-on attacks from many fronts, including the new US President, but also industry and opinion leaders and the EU’s own extremist parties.
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Stargate and the fight for AI supremacy – this is Europe’s wake-up call By Andrea Renda and Pierre-Alexandre Balland
The announcement of the USD 500 billion US Stargate Project marks a bold leap into the future for AI. Announced with great fanfare at the White House by President Trump, flanked by the CEOs of OpenAI, SoftBank and Oracle, the initiative aims to build the most advanced AI infrastructure the world has ever seen.
This matters because AI drives innovation, creates industries, and fuels economic power – and those who lead in AI will shape the global power balance. And the scale is staggering. An initial USD 100 billion investment, ramping up to half a trillion dollars over four years, to fund state-of-the-art data centres, cutting-edge hardware and sustainable energy systems.
Although the funding is currently private and tech leaders have skirmished over the availability of the committed funds, being announced right at the start of Trump’s presidency signals strong political backing and an explicit alliance with the Big Techs. This could lead to smoother AI regulatory processes, tax incentives and alignment with additional public spending initiatives, such as a future iteration of the Inflation Reduction Act or the CHIPS Act.
The picture becomes even clearer if we consider that Stargate was announced immediately after Trump had scrapped the Biden administration’s Executive Order on AI, erasing and rewinding US AI policy and paving the way for an era of laissez faire AI.
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These are the necessary conditions to get European boots on the ground in UkraineBy Steven Blockmans
Since the US Presidential election there’s been a debate in Europe over a possible ceasefire agreement and the security guarantees Ukraine needs to deter Russia from resuming hostilities. A European ground operation in Ukraine is a welcome idea but only if it can be backed up by the US. This means convincing Donald Trump that European leaders are fully serious about guaranteeing European security.
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Why AI World is providing the key insights that are shaping the AI revolutionBy Andrea Renda and Pierre-Alexandre Balland
We live in a complex world, rich with data and insights, where finding our way is becoming increasingly challenging. As Herbert Simon wrote back in the 1950s, ‘a wealth of information creates a poverty of attention’. And when there’s a dearth of attention, knowing where to look becomes an uphill battle.
Nowhere is this truer than in the burgeoning world of AI. New policies and standards are emerging every day. Large corporations update their models, while startups secure funding to drive innovation. Scientific collaboration spans across continents, researchers tap into software and data swaths to achieve new breakthroughs, all while business leaders form alliances and politicians ponder their next moves. All this in a frantic effort to ride the wave of the most powerful general-purpose technology of the past few decades.
For businesses, policymakers and investors, understanding the AI revolution requires improved skills in locating, processing and analysing data to detect patterns and forecast trends.
And even if they do find the data, understanding what it means often requires guidance, analysis and easy access to technical and non-technical explanations. After all, knowing where we are is a key prerequisite for understanding where we’re going.
To bridge this knowledge gap, CEPS has created a large-scale data platform called AI World. It’s a ‘one-stop-shop’ for all things AI, from insights on market developments, and leading companies and locations, to emerging applications and techniques.
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