Can the EU anchor policy reform? The case of the Euro-Med Partnership

The emerging literature on ‘anchoring’ draws attention to non-conventional benefits of regional integration arrangements, which include increased policy credibility. Nevertheless, this literature tends to view the anchoring of policy reform as an exogenously given option for a reforming country. We demonstrate that anchoring is an endogenously determined choice, which may guarantee neither optimal levels of policy reform nor effective anchoring unless the relevant contracts are both complete and incentive compatible. We examine the economic pillar of the Euro-Med Partnership (EMP) to ascertain the extent to which its contractual provisions satisfy these conditions. Our findings suggest that the EMP leaves too much room for discretion and does not internalize the positive externalities associated with policy reform. These findings enable us to elaborate on why the EU cannot be expected to function as an effective anchor for policy reform for its trading partners

Whither Hungary and the European communities?

Recent political changes in Eastern Europe will help to cement improving economic relations with the European Communities (EC). Hungary has little alternative but to seek to continue strengthing these ties. It faces important supply constraints and needs injections of fresh capital to help it gear up to seize market opportunities. In the past, Hungary has been somewhere near the bottom of the EC's pyramid of privileges as far as tariff and non-tariff barrier (NTB) treatment are concerned. Hungary has been examining the options of applying for EC membership, European Free Trade Association (EFTA) membership, and examining other forms of association such as those the EC has with a number of Mediterranean countries. From a simulation exercise, the authors conclude that membership of the EC could lead to an expansion of Hungarian exports to the Communities of some 48 percent, with meats, iron and steel, fruit and vegetables, textiles, and clothing being the main sectors to gain. This results from setting tariffs to zero and eliminating non-tariff barriers. If EC or EFTA membership is ruled out, Hungary must seek a closer relationship with the EC, encompassing agriculture as well as manufactures, and covering tariffs and non-tariff barriers.Trade Policy,Environmental Economics&Policies,Economic Theory&Research,Agribusiness&Markets,TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT

The EU, Israel and the "Arab Spring" States: Beyond the Status Quo?

Introduction This workshop, organized in Jerusalem by the ‘Centre de recherche français à Jérusalem’ (CRFJ), the Hebrew University and Sciences Po Paris, provided a great and rare opportunity to exchange views between researchers and diplomats on the impacts of the Arab Awakening on EU relations with Israel and its neighbors. By bringing together historians, political scientists, orientalists, economists and diplomats, it enabled to draw up an exciting interdisciplinary perspective on the uph..

Revisiting Egyptian Foreign Policy towards Israel under Mubarak: From Cold Peace to Strategic Peace

This article is the first academic study of Egyptian foreign policy towards Israel under Hosni Mubarak (1981–2011). It challenges a deeply entrenched conventional wisdom that Egypt pursued a cold-peace foreign policy towards Israel throughout this period. We demonstrate that Egyptian foreign policy towards Israel was dynamic – comprising cold peace (1981–91), a hybrid foreign policy of cold peace and strategic peace (1991–2003), and a pure strategic peace posture (2003–11). We also use the case of Egyptian foreign policy towards Israel as a heuristic to develop a conception of a new type of peace, strategic peace, as an intermediary analytical category between cold and stable peace

Mapping Israel’s Policy Options regarding Its Future Institutionalised Relations with the European Union. Middle East & Euro-Med Working Paper No. 3, March 2003

The nature of the Euro-Mediterranean Partnership will change with the Enlargement of the EU to include 13 additional members since all Mediterranean non-Arab countries will be in the EU except Israel. Israel will therefore be obliged to revise its relations with the EU. This paper explores some possible policy options open to Israel. After discarding a continuation of Israel’s present status in the Euro-Mediterranean Partnership, a second policy option gauges advantages and disadvantages for Israel of obtaining membership in the European Economic Area, i.e. full economic integration without political integration in the EU. Taking into consideration quantum political changes that have taken place in and around the EU, as well as in the Middle East, a third Israeli policy option postulates EU membership, so as not to be left behind and which would bring a "new vision" for Israel, once peace with its neighbours is in the offing, allowing for a complete change of the present terms of reference

“The Trade Impact of the Euro-Mediterranean Free Trade Areas on North African Countries”

The paper deals with the quantitative trade impact by sectors and at a very disaggregated level of the implementation of free trade area agreements between the EU and Mediterranean countries towards the years 2008-2010 according to the strategy adopted in the framework of the Euro-Mediterranean Partnership. The paper focuses on the Tunisia-EU FTA. For the investigation, a partial equilibrium model is adopted, allowing for the separate evaluation of different static effects of concluding Free Trade Area Agreements between Tunisia and other Mediterranean countries. Among the latter, Tunisia seems to be the country most affected by the Partnership. It appears that the Partnership will deepen the asymmetric trade interdependence between the EU and Mediterranean Countries. The static trade effects appear to be negative

Bloques regionales internacionales : ¿agrupaciones económicas o superpotencias políticas?

La pregunta de si el movimiento hacia acuerdos comerciales exclusivos puede ser interpretado bien como movimiento hacia un “regionalismo benigno” o bien hacia un “regionalismo agresivo” es una pregunta repleta de juicios de valor. El objetivo principal de este artículo es clarificar de una vez por todas la naturaleza y el propósito del regionalismo y de los bloques comerciales regionales para distinguirlos de otras figuras. Una revisión de los principales esquemas de integración lleva a la conclusión que el único bloque comercial regional, como tal, es la Unión Europea. Tanto MERCOSUR como la Unión Aduanera UE-Turquía no funcionan de omento como verdaderos bloques comerciales. Ni NAFTA ni el EEE pueden considerarse como bloques comerciales. ________________________________________The question whether the movement towards the conclusion of exclusive trade agreements can be interpreted as a movement towards a “benign regionalism” or an “aggressive regionalism” is a question based on value judgements. The principal aim of this article is to clarify once and for all the nature and the purpose of regionalism and of creating regional trading blocks to be able to distinguish these concepts from other creatures. A review of the main integration schemes leads to the conclusion that the only existing regional trading blocks, as such, is the European Union. Both Mercosur and the Customs Union EU-Tukey are not yet functioning as real trading blocks. Neither NAFTA not the EEA can be considered as trading blocks