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European Union

European Union

Middle-Class Concerns and European Challenges

Date of Editorial Board meeting: 
Publication date: 
Friday, September 15, 2023
Abstract in English: 
This report studies the position, aspirations, expectations and fears of Europe’s middle classes concerning some of the key challenges that the EU is facing. It is based on an extensive online survey carried out in all 27 EU member states. It reveals an acute economic insecurity and fear of falling behind among EU citizens, especially in the lower social strata. It also shows that this crisis of citizens’ expectations and prospects is a threat to political stability, as it feeds into a dangerous crisis of legitimacy and trust in public institutions and political parties. Concerns may be most strongly expressed in the economic field, but also extend to the possible consequences of the war in Ukraine and the broader geopolitical realignments it entails. In particular, the combination of middle-class insecurity and relatively high levels of trust in Russia in parts of Southern and Eastern Europe should be highlighted. However, citizens also think that most challenges can be tackled and reversed through adequate political and policy action. In particular, the centre–right’s approaches to security, immigration and the economy retain great appeal among the European middle classes; there is a need to better connect with the lower middle classes though. Citizens also have a high estimation of the problem-solving capacity of civil-society actors and a relatively high level of trust in the EU. An inclusive narrative addressing European challenges on the basis of safety, stability, justice, freedom and cooperation could help to reassure Europe’s middle classes. Centre–right forces have a fundamental role to 1 play in this process.
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72
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State of the Union 2022

Date of Editorial Board meeting: 
Publication date: 
Wednesday, September 14, 2022
Abstract in English: 
Every year in September, the President of the European Commission delivers a State of the Union Address before the European Parliament, taking stock of achievements of the past year and presenting priorities for the year ahead. The President also sets out how the European Commission will address the most pressing challenges the European Union is facing. The speech is followed by a plenary debate. This kick-starts the dialogue with the European Parliament and the Council to prepare the Commission Work Programme for the following year.
Anchored in the Treaty of Lisbon, the State of the Union Address is set out in the 2010 Framework Agreement on relations between the European Parliament and the European Commission, which also requires the President to send a Letter of Intent to the President of the European Parliament
and the Presidency of the Council detailing the actions the European Commission intends to take by means of legislation and other initiatives until the end of the following year.
Ursula von der Leyen, the President of the European Commission, delivered her third State of the Union Address on 14 September 2022.
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21
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State of the Union Address 2023

Date of Editorial Board meeting: 
Publication date: 
Wednesday, September 13, 2023
Abstract in English: 
In her State of the Union address on 13 September 2023, President of the European Commission Ursula von der Leyen outlined the main priorities and flagship initiatives for the year to come, building on the European Union's successes and achievements of the past years.
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31
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Security and Defence Days – Conference Proceedings

Date of Editorial Board meeting: 
Publication date: 
Friday, July 28, 2023
Abstract in English: 
This joint publication is the result of a 2-day conference on Security and Defence in the EU that took place as a common project of Martens Centre and De Gasperi Foundation in June 2022. Four panel discussions took place on “The new strategic concept and the war in Ukraine: charting NATO’s route in a changing geopolitical scenario”; “NATO’s future in uncertain times: a new political direction suited for a new era”; “The new security landscape in Europe, NATO’s Madrid Summit and the European Union”; “Time to invest in Security and Defence: political and technological opportunities in a competitive world”. The conference proceedings are an overview of the main discussion points of the panellists who attended the event.
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72
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EUISS Yearbook of European Security 2023

Date of Editorial Board meeting: 
Publication date: 
Wednesday, August 2, 2023
Abstract in English: 
The 2023 Yearbook of European Security provides an overview of events in 2022 that were significant for European security – in particular, inevitably, Russia’s full-scale invasion of Ukraine.
The first section of the volume explores the EU’s response to the war in Ukraine and the far-reaching repercussions of this unprecedented event for Europe’s security and defence architecture.
The second section assesses the implementation of the Strategic Compass, the guiding framework for the Union’s security and defence up to 2030, and the EU’s evolution as a defence actor. The third section focuses on multilateralism, and contains geographical and regional thematic chapters on North Africa and the Middle East, Sub-Saharan Africa, Asia, Europe and the Americas.
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136
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Forward Look 2023

Date of Editorial Board meeting: 
Publication date: 
Monday, January 9, 2023
Abstract in English: 
Events over the past year – first and foremost the Russian invasion of Ukraine, with its immediate and long-term consequences – have both confirmed and accelerated the long-term global trends which were highlighted in last year’s Forward Look. These trends included global fragmentation, the polarisation of society, evolving economic models, and pressing environmental challenges. Their development during 2022 suggests that we are witnessing the beginning of a new era of both challenges and opportunities which may call for a far-reaching reassessment of the European model.
Russia’s war against Ukraine is the most visible and far-reaching of these developments, but it is not the only one.
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19
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Future Shocks 2023: Anticipating and weathering the next storms

Date of Editorial Board meeting: 
Publication date: 
Thursday, July 20, 2023
Abstract in English: 
The European Parliament started monitoring future shocks during the coronavirus crisis, and has continued to do so during Russia's unprecedented war on Ukraine. The annual 'Future Shocks' series reviews global risks, with a focus on specific risks and the capabilities and resilience of the EU system in the face of multiple challenges. It seeks to provide up-to-date, objective and authoritative information on these risks, based on risk literature from a broad range of sources. 'Future Shocks' includes, but is not limited to, areas where the EU has primary competence, and identifies the benefits of concerted action by the EU as well as the ability of its institutions and Member States to find new and effective solutions to deal with major shocks. The 2023 edition, the second in this annual series, highlights 15 risks related to geopolitics, climate change, health, economics and democracy that could occur in the coming decade, and 10 policy responses to address existing governance capacity and possible ways to enhance capabilities within the EU. Among the options set out are those previously included in European Parliament resolutions, positions from other EU institutions, and policy papers from think tanks and stakeholders.
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235
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The cost of non-rurality

Date of Editorial Board meeting: 
Publication date: 
Monday, June 5, 2023
Abstract in English: 
Rapid urbanisation in several EU Member States and the ensuing population shift from rural areas towards urban centres are generally treated in economic literature as a necessity for generating growth and wellbeing. In the last two decades, however, the overly positive assessment of this trend has shifted.

Globalisation has put increasing pressure on agriculture, food processing industries and other local cottage and SME enterprises. This has led to accelerating changes in the balance between rural and urban areas and has deeply impacted the overall socio-economic fabric of regions.
At the same time, declining rural populations make many rural communities unsustainable. Once inhabitants decide to leave areas due to falling living standards, the remaining population suffers from the further deprivation of goods and services, driving even more people to leave. Several studies have been assessing the costs associated with these changes, in particular their impact on the viability of rural communities. However, they generally fall short of the holistic assessment required, as the decline and shift of populations also create further negative spillovers on the rest of the economy, for example on urban areas that are usually at the receiving end of the influx of rural populations.
This report aims to contribute to the debate on EU rural development policy by presenting a methodology to understand the net costs and benefits of investing in rural areas to society as a whole. By doing so, it asks whether rural depopulation is just a rural problem or whether the consequences have a bearing on the whole of society, and in particular urban areas.
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53
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Towards monetary policies that do not subsidise banks

Date of Editorial Board meeting: 
Publication date: 
Thursday, July 13, 2023
Abstract in English: 
The massive programmes of government bond buying have led to a fundamental change in the operating procedure of the major central banks. The latter now operate in a regime of abundance of bank reserves. This makes it impossible to raise the money market rate except by increasing the rate of remuneration of bank reserves. This, in turn, leads to a massive transfer of the central banks’ profits to commercial banks that will become unsustainable. We argue that the remuneration of bank reserves is not inevitable and that there is an alternative to the current central banks’ operating procedure that avoids making profit transfers to private agents. We propose to use minimum reserve requirements as a policy tool to achieve this objective. Our favoured proposal is a two-tier system of reserve requirements that would only remunerate the reserves in excess of the minimum required. This would drastically reduce the giveaways to banks and allow the central banks to maintain their current operating procedures.
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20
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Strategic Foresight Report 2023

Date of Editorial Board meeting: 
Publication date: 
Thursday, July 6, 2023
Abstract in English: 
The European Union is forging ahead with unprecedented action to achieve climate neutrality and sustainability. A successful transformation will limit the existential risks of climate change and the environmental crisis while strengthening the EU’s open strategic autonomy and economic security. It will be key to reinforcing Europe’s long-term competitiveness and social model, and thus its global leadership in the new, net-zero economy, also by supporting other regions in building a sustainable future. Ultimately, this will increase the wellbeing of current and future generations.
However, a successful and fair socio-economic transformation is not a given. Together with its twin, the digital transition, the green transition requires pivotal changes and trade-offs that will affect, among others, our economies and societies at an unmatched pace and scale. To succeed in this transformation, it is essential to recognise the links between the environmental, social, and economic dimensions of sustainability. This will enable Europe to pursue a forwardlooking geopolitical strategy that successfully leverages its most valuable assets – namely, its unique social market economy and its position as the largest trading block in the world.
Against this backdrop, the 2023 Strategic Foresight Report examines the key intersections between the structural trends and dynamics affecting the social and economic aspects of sustainability, to clarify the potential choices and trade-offs that the EU is likely to face in the future. Drawing on an inclusive foresight exercise and building on the three previous editions, it explores key challenges that will determine the transformation of our society and economy towards a model that respects planetary boundaries, and safeguards global competitiveness, strong social foundations, and resilience. It also investigates how pursuing inclusive wellbeing over the long-term, engaging in a pathway towards sustainability, and consolidating democracy can be the recipe for Europe to strengthen its global role.
On this basis, the report proposes ten areas for action to achieve the objectives of a socially and economically sustainable Europe with a stronger role in the world in the coming years.
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36
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