Tagged: transatlantic relations

Mathis Lohaus

Dahrendorf Symposium: Discussing EU foreign policy

Dahrendorf Symposium

Two weeks ago I had the pleasure of attending (parts of) the 2016 Dahrendorf Symposium hosted by Hertie School of Governance, LSE and Mercator foundation. The event focused on European foreign policy. I was unable to attend any of the workshops, but will try and summarize the debates on the final day. Please also see my previous post on the scenarios for Europe in 2025.

Panel #1: Europe in the World 2025

Panelists:  Ahmed Badawi (Free University Berlin), Frances G. Burwell (Atlantic Council, Washington), Fabrice Leggeri (FRONTEX Executive Director), Daniela Schwarzer (GMFUS Berlin), Sylke Tempel (DGAP).

The panel did not directly address the scenarios, but rather focused on current challenges for the EU that have long-term consequences. Not surprisingly, the three main topics were challenges related to refugees/migration, the rise of European populism, and the consequences of Brexit.

[By the way: This and the other discussions will be available on YouTube soon.]

Panel#2: EU Global Strategy: game changer or wish list?

Panelists: Robert Cooper (British diplomat/adviser), Anne-Marie Le Gloanec (Sciences Po), Sebastian Heilmann (Mercator Institute for China Studies MERICS), Andrey Kortunov (Russian International Affairs Council), Alfredo Conte (Head of the Strategic Planning Division, European External Action Service EEAS)

The second panel of the day addressed the forthcoming EU Global Strategy on Foreign and Security Policy, which will be the successor to the EU’s 2003 strategy (“A Secure Europe in a Better World”). Three European/Russian academics plus two practitioners (the skeptical veteran Cooper and EEAS planning official Conte) turned out to be a good mix.

(Very selective) summary and reflections

I’m not an expert on any of these issues, but I found the following bits the most interesting:

Who is leading EU (foreign) policy-making? Echoing the famous “which phone number do we call?” argument, Frances Burwell adopted the American perspective and asked Germany to step up its leadership, including a bold decision in favor of mutualized debt and increased defense spending. Daniela Schwarzer pointed out that German leaders might think they did the Eurozone a favor over the past few years, but people in Athens see it differently. (Nobody made an attempt to defend German foreign policy choices…)

With an eye to the looming Brexit referendum, panelists suggested the UK might no longer be a reliable partner for European cooperation. Mr. Conte (EEAS) said that Brexit would mean losing one of the few members “with a strategic vision for the whole world, not just some regions” — but also result in one veto player less.

What about the European Union’s credibility and “soft power”? Andrey Kortunov described the EU as long-term “focal point for intellectual aspirations as well as material envy”, but said that the feasibility of the European model is now being doubted in Russia. Still, he urged European diplomats to focus on their comparative advantage: linking development and security (rather than trying their hand at geopolitics).

Anne-Marie Le Gloanec asked: “Do we still have the resources and soft power we thought we had when we wrote the first strategy in 2003?” Her diagnosis, citing the EU-Turkey deal on refugees and the EU’s actions in the MENA region, was rather negative. For the EEAS strategist Conte –not surprisingly– the answer was to develop a strategy revolving around “flexibility” and “credibility”, that is, member state activism and cash.

What role for the EU External Action Service? Not surprisingly (again), the EEAS representatives were confident about their ability to act and speak for the Europeans. Other panelists seemed skeptical regarding the service’s mandate and operational capabilities. Robert Cooper pointed out that “strategy” documents often amount to “bullshit”, and also said that EU members must invest in their foreign services’ day-to-day capabilities.

At a more fundamental level, the aforementioned call for national leadership seems at odds the very idea of the EEAS. Stuck between unwilling member states and external actors that don’t take her seriously, the high representative Mogherini indeed seems to face an “impossible task” (Le Gloanec).

What and where is our border again? Mr. Leggeri from Frontex, who seems to be a social constructivist, emphasized the need for a “credible external border” that is “emotionally perceived as ‘our’ border”. He added that he was “appalled” by the precarious situation in Lesbos “last year”, but said things were improving on the ground. Frontex, in his view, needs more resources and a mandate to plan for the future and do things other than emergency responses.

Some panelists made related points about what the EU can and should do beyond its external borders, but ultimately with a view to stabilizing them. On MENA, Sylke Tempel urged policymakers to work on good governance issues, as people there had “neither taxation nor representation”.

Should we embrace multi-speed Europe on social issues? Closely related to the idea of borders, some parts of the discussion addressed differentiation within Europe. Francess Burwell urged EU leaders to make a choice on migration: Ultimately, are the Syrian refugees going to be ‘visitors’ or ‘citizens’? (Her advice was crystal clear: Europeans need to work on turning them into the latter!)

The old debate about multi-speed Europe applies to social policy — which, in Europe and beyond, inevitably has consequences across borders. A member of the audience suggested to just accept the fact that Hungary, Austria and other do not wish to support Chancellor Merkel’s humanitarian policies. In response, Daniela Schwarzer instead called for a push-back against illiberal developments.

 

In sum, the panel discussions at the Dahrendorf Symposium raised many interesting questions (although, as usual at such events, they could have been even more focused). It was great to have practitioners, advocates and academics illuminate different aspects. With the Brexit vote around the corner and half a dozen crises ongoing in the neighborhood, readers of this blog are well advised to keep an eye on the EU …

Mathis Lohaus

Scenarios for European External Relations in 2025

Dahrendorf Symposium

Last week I had the pleasure of attending (parts of) the 2016 Dahrendorf Symposium hosted by Hertie School of Governance, LSE and Mercator foundation. The event focused on European foreign policy. I will summarize the debates on the final day in a separate blog post.

A few months ago, Hertie School hosted a scenario planning workshop as part of the Dahrendorf project. It focused on the EU’s relations to other world regions, trying to draw up scenarios for the year 2025. Meeting in five different working groups, the participants developed scenarios for the future relations between the EU and the U.S., China, Russia and Ukraine, Turkey, and the MENA region. Given my interest in forecasting and curiosity about scenario planning, I gladly signed up and contributed to the EU/U.S. working group.

At the Dahrendorf Symposium last week, Monika Sus and Franziska Pfeifer (who are coordinating the scenario project) briefly described our method and results to the audience. The publication with our 18 (!) brief scenarios is available via the Dahrendorf blog: European Union in the World 2025 – Scenarios for EU relations

The results are interesting and I really encourage you to download the document! Personally, I particularly enjoyed the process. It was a great exercise to think about  basic assumptions we have about transatlantic relations; to identify key drivers relevant for change; and to come up with scenarios that reflect the most relevant combinations of key drivers taking particular directions.

Transatlantic mistrust on tech
Illustrations for the scenario report by Jorge Martin

Let me indulge in a bit of self-promotion and quote the intro to my group’s scenario:

“In the years up to 2025 there will be a situation of balkanised technological regulation in the EU, driven by political debates which emphasise the need to shield national markets and societies against the uncertain effects of technological progress. On the other side of the Atlantic, political leaders will continue to embrace new technologies, with an emphasis on keeping the competitive edge also in terms of offensive capabilities in the cyber and AI realms. Only after a series of trigger events, increasing the pressure on decision-makers, will transatlantic leaders be willing to invest in a new institutional framework to manage the political problems associated with technological progress.” (‘Transatlantic Frankenstein’ scenario)

Then, of course, there was the Dahrendorf Symposium, which included a couple of workshop sessions (that I couldn’t attend) and two round-table panels on the final day. I will put my summary of these discussions into a separate post.

Mathis Lohaus

Predicting the Effects of TTIP, or: Whose Crystal Ball Can We Trust?

In a paper called “TTIP: European Disintegration, Unemployment and Instability”, economist Jeronim Capaldo argues that there are flaws in four prominent studies on the effects of the proposed TTIP agreement between the U.S. and the European Union. The problem is two-fold. First, all studies use similar models and data, which means that they all share the same set of assumptions and should thus not be treated as independently reaching similar conclusions:

Methodologically, the similarities among the four studies are striking. While all use World Bank-style Computable General Equilibrium (CGE) models, the first two studies also use exactly the same CGE. The specific CGE they use is called the Global Trade Analysis Project (GTAP), developed by researchers at Purdue University. All but Bertelsmann use a version of the same database (again from GTAP).

A detailed discussion of the shared heritage of the different CGE models can be found in a paper by Werner Raza and colleagues (pp. 37-49), which Capaldo cites.

He then goes one step further and alleges that the underlying econometric models are simply false, or at least inappropriate. According to him, CGE models rely on several flawed assumptions:

  • High labor mobility is supposed to allow workers in less competitive industries to switch to those that benefit from trade liberalization, which are assumed to grow enough to absorb the new workforce.
  • Overall, the gains for workers with the right skills are supposed to outweigh the losses for others.
  • The model assumes that new trade between countries/regions is created (rather than diverted from elsewhere, which would be a zero-sum result).

While I have no training in economics and don’t know the econometrics literature, I realize that all large-scale models of social science need to rely on simplified assumptions. Nevertheless, it seems to me that Capaldo has a point. If his account is correct, then European policymakers should look for more diverse academic input. More generally, if the most widely used models really are blind to potential downsides for labor, then that goes against the interest of European citizens. (As they ought to be very loss averse when it comes to employment as well as skeptical about the distribution of pay-offs from economic gains.)

So how do we come up with an estimate that pays more attention to potential negative effects? Capaldo uses the UN Global Policy Model (GPM), which models economic activity as demand-driven, explicitly models different regions, and includes an estimate of employment. (Again, I lack the knowledge to assess how this works and how much sense it makes.) In this model, unemployment and household income are projected to deteriorate in the long term (2025) for several European countries, as aggregate demand is lowered due to trade diversion (see pp. 10-19 for this and other findings).

capaldo-figure4
Jeronim Capaldo, “The Trans-Atlantic Trade and Investment Partnership: European Disintegration, Unemployment and Instability”, Global Development and Environment Institute Working Paper No. 14-03, October 2014, p. 14.

Capaldo is pretty transparent about the limitations of this approach:

  • the non-TTIP baseline scenario (which serves as a comparison) might be wrong
  • the chosen model might be as ill-specified as the ones he is criticizing
  • policy responses down the road are not included (and that’s hardly possible)
  • …and the paper completely ignores the investment dimension of TTIP (which is a weakness shared by the CGE models, according to Raza et al., p. 49)

So the headline “TTIP will lead to a loss of 600,000 jobs” does not really do the paper justice, although the author himself uses pretty strong language in the conclusion.

No matter which forecast turns out to be better in the end, this discussion shows that policy decisions should not rely on a single strand of academic analysis. There is a lot of uncertainty involved in these negotiations, and I don’t see how there can be a confident forecast of net effects.

One final note for the political debate in general: TTIP opponents should not forget that the status quo will not necessarily be maintained or improved just by inaction. The people likely to lose from TTIP are probably heading for difficult times anyway, leading to questions about how to compensate them. Whether European leaders will decide in favor or against TTIP, they are making high-stakes bets on how globalization will play out over the next decades.

Thanks to Zoe for pointing me to the study. And if anyone can add insight regarding the comparison between the different models, please let me know!

Tobias Bunde

Putin, the Atlanticist

Putin wins a prize
Image credit: “Siggiko”

Since 1997, the American Academy in Berlin has awarded the annual Henry A. Kissinger Prize “in recognition of outstanding services to the transatlantic relationship.” Taken literally, this means that the next recipient can only be one person: Vladimir Putin.

Just a few weeks ago, even the most committed Atlanticists would not have predicted a spectacular comeback for NATO in 2014. At this year’s Munich Security Conference, often dubbed the transatlantic partnership’s “family meeting”, the mood was quite pessimistic. [My detailed conference report, in German, will appear in the next issue of the Zeitschrift für Außen- und Sicherheitspolitik.] The Europeans, and especially the Germans, were upset about the fact that Senator Kerry gave a speech about the “transatlantic renaissance” without mentioning the NSA affair at all. As some observers noted, the Americans “just don’t listen to us anymore, they only listen in.”

On the other hand, the U.S. representatives were frustrated that the Europeans were not eager to discuss other topics they deemed more relevant. Again, the old burden-sharing debate resurfaced – but with more urgency. In contrast to earlier debates, the U.S. administration has actually followed through and significantly reduced their troops in Europe while ramping up their forces in the Asia-Pacific (the “rebalancing” FKA “the pivot to Asia”). Quite symbolically, after 69 years, the last Abrams tanks left European soil in 2013, which many saw as a “historic moment”. [It should be noted, however, that a number of refurbished Abrams tanks have returned to Germany in 2014.]

Under Obama, the United States has made clear that it does not expect to lead every military mission the transatlantic partners undertake. In Libya, the Europeans had to realize that they lacked the capabilities to run an intense air campaign alone. In early 2013, when the Europeans discussed the crisis in Mali, NATO’s Deputy Secretary General, Alexander Vershbow, bluntly stated: “The US and NATO cannot be everywhere.”

In earlier years, U.S. politicians would have been furious if the Europeans had planned for an operation without the United States. But the new message was: Europe, it’s your job, get used to it. Yet, given that these debates were about “wars of choice” in a “post-interventionist era”, few Europeans pushed for a major overhaul of Europe’s defense planning – much to the dismay of Washington.

Waiting for the “transatlantic renaissance”

It didn’t help that a conversation between Victoria Nuland and a U.S. ambassador was leaked, in which the Assistant Secretary of State for European and Eurasian Affairs used the F-word in respect to the EU. Ironically, Nuland is one of the few remaining committed transatlanticists in Washington and had coined the notion of a “transatlantic renaissance”. Now, that whole concept seemed to be a non-starter.

Enter Vladimir Putin. Thanks to the Russian annexation of Crimea and the ongoing threats from Moscow, the transatlantic partnership, and with it NATO, is back again.

With his actions in the past few weeks, Putin has actually provoked what he had successfully avoided for a long time: the rapid rapprochement of NATO members’ policies towards Russia. He might not have provided a “solution” to one of the core challenges in the internal debate about the Atlantic Alliance in the twenty-first century: How do we define our relations with Russia? But at the very least, he has made a new consensus among NATO member states much more likely. Continue reading

Mathis Lohaus

Steinmeier on Transatlantic Relations

steinmeier-brookings

This morning, I went to see German foreign minister Steinmeier’s speech at the Brookings Institution. Under the heading “Transatlantic Ties for a New Generation”, he argued that to be attractive for young people, the European-American partnership has to be based on shared values and standards of governance. The text is on the ministry’s website. In addition, Brookings published the audio and video recordings of the speech and the Q&A.

To be fair, this speech was more interesting and better prepared than the last foreign policy speech delivered by a Social Democrat that I have attended. Still, if you go beyond the personal anecdotes and jokes he made, Steinmeier said very little, let alone . The Q&A, regrettably, was hurt by the fact that Steinmeier – who had given the speech in English- answered in German. So a lot of time was spent on translation and we only covered four or five (pretty harmless) questions in total.

So, here are the few concrete things I took away from this event. (Plain English translation in italics.)

  • The “no spy” treaty is a non-starter. Instead, Steinmeier wants to have several rounds of talks between U.S. and European officials, which should cover both eavesdropping on government leaders and large-scale surveillance of general population. These talks should include civil society and academia. (We know that’s kind of embarrassing, but what are we gonna do? Nobody wants to kill TTIP because of civil rights.)
  • On the choice to spy: the U.S. government should realize that their surveillance/ spying practices are inappropriate in a setting of close partnership. It must be made clear that democratic bodies have the last words rather than corporate or intelligence interests. (Please be a little bit nicer, for old time’s sake, OK?)
  • Europeans and in particular Germans are committed to show more leadership in foreign policy (“expand the toolbox of diplomacy”). As head of the G8 group in 2015, Germany will push for climate change politics. (But please don’t mention Syria, because we really don’t know what to do.)
  • On Europe: Between Germany and the UK, fundamental disagreements remain about the general trajectory of EU integration. We might see more subsidiarity in select issue areas, but no reversal of integration. (Those ***** Brits! As if we didn’t have enough problems already. Oh, and maybe we should tweak those austerity policies in Southern countries, but please don’t ask about specifics).
  • While the Russian human rights ombudsman Vladimir Lukin played in a constructive role in the talks with German, French, Polish FMs last week, Steinmeier is just as puzzled about Crimea as everybody else. (Nobody knows what’s going on in Ukraine, and even if we knew, we probably couldn’t do much about it. It’s not like we’re a  superpower or anything.)

So, as you can see, no grand commitments or surprise announcements were made today. German foreign policy remains, ahem, underwhelming.

Mathis Lohaus

Links: Cyber Attacks, Trade Negotiations, Combat Drones

A Siemens device used to control centrifuges (via Wikimedia commons)
A Siemens device used to control centrifuges (by “Ulli1105” via Wikimedia commons)

Small anniversary: Link post #25. By the way, do you find these useful?

On cyber attacks, I would like to recommend three pieces that might not be for everyone, but are interesting to get a more technical understanding of what is going:

  • Ralph Langner has written a fascinating account of “Stuxnet”. It turns out that the U.S./Israeli (?) attack on Iranian nuclear centrifuges consisted not of one, but two separate types of computer virus, with trade-offs between effectiveness, predictability and stealth. The newer version used a less sophisticated way to damage centrifuges, but a much more sophisticated way to gain access in the first place and then spread across systems.
  • Nicholas Weaver summarizes the steps taken by U.S. intelligence agencies to access/hijack communications through the Internet’s backbone. This discussion of the NSA QUANTUM program is not too technical, but introduces a couple of phrases you might hear more often in the future. (via Bruce Schneier)
  • Jim Cowie discusses a different form of attack, in which internet traffic is redirected to get access to sensitive information. Fascinating for laypeople: Since we’re talking about milliseconds, “[t]he recipient, perhaps sitting at home in a pleasant Virginia suburb drinking his morning coffee, has no idea that someone in Minsk has the ability to watch him surf the web”. (But keep in mind that this comes form a private IT security company and is phrased to maximize PR effects.)

Two items on free trade negotiations:

First, Philip Murphy, the former U.S. Ambassador to Germany, is very confident that President Obama will manage to get approval from Congress for the Transatlantic Trade and Investment Partnership TTIP (via AICGS / Tobias Bunde).

Second, regarding the other U.S. free trade effort currently under negotiation – the Trans-Pacific Partnership TPP – you’ve probably heard that the part dealing with intellectual property rights was leaked last week. GWU PhD candidate Gabriel J. Michael has analyzed the way in which different countries proposed changes to the document (which is visible in the leaked text) and offers the following summary:

  1. The U.S. and Japan are relatively isolated in their negotiating positions.
  2. There appears to be a strong negotiating network between Singapore, Chile, Malaysia and New Zealand.
  3. Canada is up to something!

Some commentators pointed out that he might be neglecting an alternative explanation: that the U.S. and Japan are simply happy with the current document, as they have had a bigger say in creating the draft.

Irrespective of the arguments about causality, Michael’s blog post is a great example of what can be done with leaked documents and visualization! (via The Monkey Cage, where you can find more comments).

Finally, a quick follow-up on last week’s post on combat drones, again by Charli Carpenter at the Duck:

The Campaign to Stop Killer Robots secured an important victory last week when delegates of States Parties to the Convention on Certain Conventional Weapons (CCW) voted unanimously to take up the issue (…).

(…)

While this is an important and promising moment, the shape and trajectory of norm-building efforts will depend a great deal on the tenor and outcome of next May’s CCW meeting. And one thing is sure: if that meeting results in weaker norms that hoped for my human security advocates, NGOs may simply take their cause elsewhere.

Mathis Lohaus

Espionage, Surveillance, and Transatlantic Relations

snowdenletterOK, the NSA was bugging German chancellor Angela Merkel’s cell phone for ten years, and a well-known German member of parliament has just met with whistleblower Edward Snowden in Russia. Snowden has written a letter and offered “to testify to a public prosecutor or an investigating committee of Germany’s lower house of parliament, the Bundestag”, as the SPIEGEL reports.

So I guess it’s time for some quick reflections on two of our favorite topics, Transatlantic relations and surveillance / espionage:

Continue reading