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India: taking stock of Modi's five years

10-04-2019

From 11 April to 18 May 2019, 900 million Indians are invited to take part in the world's biggest democratic event: the election of the 543 members of the Lok Sabha (lower chamber). Voting will be held across the country in seven phases and the result will be declared on 23 May. In 2014 the Hindu nationalist Bharatiya Janata Party (BJP) obtained the absolute majority in India's Lok Sabha, and Narendra Modi became prime minister. Enjoying a strong and undisputed mandate, Modi has generated expectations ...

From 11 April to 18 May 2019, 900 million Indians are invited to take part in the world's biggest democratic event: the election of the 543 members of the Lok Sabha (lower chamber). Voting will be held across the country in seven phases and the result will be declared on 23 May. In 2014 the Hindu nationalist Bharatiya Janata Party (BJP) obtained the absolute majority in India's Lok Sabha, and Narendra Modi became prime minister. Enjoying a strong and undisputed mandate, Modi has generated expectations of unleashing the country's economic potential and has adopted many flagship initiatives in a bid to change the country. In the last five years, India has overtaken China as the fastest growing economy, becoming the world's sixth biggest economy and a space power. Doing business in the country has become easier. Poverty has been reduced. The government succeeded in introducing major fiscal unification reform and a new law on bankruptcy. It failed, however to create the necessary stock of jobs for young people or to promote long-awaited labour reforms. The situation for farmers has worsened, and an overnight demonetisation hindered progress among small businesses and rural communities, while failing to bring real advances in the fight against corruption. State banks hold large stocks of bad loans and the government has increased pressure on the central bank and on its independence. Hindu nationalism and religious intolerance, pressure on freedom of expression, possible state intrusion into privacy, citizenship issues and other topics have been matters for concern in the area of human rights, although the country remains a robust democracy governed by the rule of law. Modi has increased the country's presence in the global arena, although the framework of India's relations with the major powers has not changed. Following two summits in 2016 and 2017, the EU and India have embarked on a road towards cooperation on non-trade issues. Trade has meanwhile stagnated and little progress has been made in negotiations on a trade and investment agreement.

Towards a new EU policy approach to China: 21st EU-China Summit – April 2019

08-04-2019

With the European Parliament elections set for May 2019, the 21st EU-China Summit has been advanced, to be held in Brussels on 9 April 2019, only nine months after the previous one. The 2018 summit's joint statement captured a broad range of deliverables that had been achieved over a three-year period, since the EU and China had failed to agree on joint statements in 2016 and 2017. Considering that not even the short-term commitments on the trade and investment agenda from 2018 have been met, that ...

With the European Parliament elections set for May 2019, the 21st EU-China Summit has been advanced, to be held in Brussels on 9 April 2019, only nine months after the previous one. The 2018 summit's joint statement captured a broad range of deliverables that had been achieved over a three-year period, since the EU and China had failed to agree on joint statements in 2016 and 2017. Considering that not even the short-term commitments on the trade and investment agenda from 2018 have been met, that the context of US-China great power competition looms large and that the EU has adopted more assertive language in its recently issued EU-China strategic outlook, it remains to be seen whether meaningful outcomes will be reached at this year's summit.

5G Deployment: State of play in Europe, USA and Asia

03-04-2019

This in-depth analysis was prepared by Policy Department A at the request of the ITRE Committee. It compares 5G deployment in the EU with other leading economies – the USA, China, Japan, the Republic of Korea, Singapore and Taiwan. On a range of indicators, the EU compares well. However, this is not a short-term race. 5G is more complex than previous wireless technologies and should be considered as a long-term project to solve technical challenges and develop a clear business case.

This in-depth analysis was prepared by Policy Department A at the request of the ITRE Committee. It compares 5G deployment in the EU with other leading economies – the USA, China, Japan, the Republic of Korea, Singapore and Taiwan. On a range of indicators, the EU compares well. However, this is not a short-term race. 5G is more complex than previous wireless technologies and should be considered as a long-term project to solve technical challenges and develop a clear business case.

External author

Colin Blackman, Simon Forge

Taiwan's political survival in a challenging geopolitical context

26-03-2019

Since the landmark victory of Tsai Ing-wen from Taiwan's pro-independence Democratic Progressive Party (DPP) in the 2016 presidential elections, mainland China has intensified the island's international isolation and intimidation through political pressure, economic coercion and military drills. In a January 2019 speech commemorating the 40th anniversary of the 1979 'Message to Compatriots in Taiwan', China's President, Xi Jinping, alluded to the inevitability of unification based on a 'one country ...

Since the landmark victory of Tsai Ing-wen from Taiwan's pro-independence Democratic Progressive Party (DPP) in the 2016 presidential elections, mainland China has intensified the island's international isolation and intimidation through political pressure, economic coercion and military drills. In a January 2019 speech commemorating the 40th anniversary of the 1979 'Message to Compatriots in Taiwan', China's President, Xi Jinping, alluded to the inevitability of unification based on a 'one country, two systems' formula, which is widely rejected in Taiwan. Taiwan's successful transition from an authoritarian anti-communist bulwark led by the Nationalist Party or Kuomintang (KMT), to a liberal multi-party democracy that embraces individual political freedoms, the rule of law and universal human rights, is a challenge for the authoritarian one-party system of the People's Republic of China (PRC), as it belies mainland China's rhetoric that a liberal multi-party democracy is unsuitable for Chinese people. Taiwan's political survival within the fragile status quo of cross-strait relations ultimately depends on the United States' continued national interest in ensuring that Taiwan's defence capabilities and the US's military supremacy over the PRC act as a deterrent against a potential invasion of Taiwan by mainland China's military forces. Against the backdrop of the PRC's increasingly aggressive Taiwan policy and growing US-China strategic competition on multiple fronts, the US has expanded its long-standing commitments in support of Taiwan's defence and democracy, and considers the island as a partner in promoting the goals and values of the US's free and open Indo-Pacific strategy. The EU maintains a 'One China' policy, which recognises the PRC government as the sole legal government of China. However, since the EU and Taiwan are like-minded in many regards and the EU respects Taiwan's governance system, it is interested in closer cooperation with Taiwan on non-political issues, even in the absence of diplomatic recognition.

Parliamentary scrutiny of trade policies across the western world

25-03-2019

The Lisbon Treaty increased the European Parliament’s powers over EU trade policy. Ten years after its entry into force it is timely to take stock of how the EP has made use of this leverage in shaping the EU’s trade negotiations. Such an exercise benefits from a comparison with other well-established parliamentary democracies, particularly the key partners with whom the EU has recently negotiated or has started to negotiate a comprehensive trade agreement. This study compares parliamentary scrutiny ...

The Lisbon Treaty increased the European Parliament’s powers over EU trade policy. Ten years after its entry into force it is timely to take stock of how the EP has made use of this leverage in shaping the EU’s trade negotiations. Such an exercise benefits from a comparison with other well-established parliamentary democracies, particularly the key partners with whom the EU has recently negotiated or has started to negotiate a comprehensive trade agreement. This study compares parliamentary scrutiny of trade policy in the EU with the United States, Canada and Australia. It concludes that the European Parliament has become powerful and active in trade policy, on a comparable level to the US Congress. Its powers exceed those of other Western democracies, such as Australia and Canada. From the latter the European Parliament may conclude that it is important to codify some of its informal oversight practices, before they may get lost over time again. This may also help to encourage its trading partners to increase their parliamentary involvement during negotiations with the EU. As regards the implementation of trade agreements however, the EU has very few competences in comparison to all other three countries analysed.

External author

Bart KERREMANS, Johan ADRIAENSEN, Francesca COLLI, Evelyn COREMANS

Impact of Digitalisation on International Tax Matters

15-02-2019

This paper was prepared by Policy Department A at the request of the Committee on Financial Crimes, Tax Evasion and Tax Avoidance (TAX3) to discuss tax challenges posed by digitalisation, especially regarding new business models and value creation process, the impact of Base Erosion and Profit Shifting (BEPS) actions, unilateral measures and recent tax developments in the European Union (EU) and the United States (US) while evaluating alternative approaches to reform the international tax system ...

This paper was prepared by Policy Department A at the request of the Committee on Financial Crimes, Tax Evasion and Tax Avoidance (TAX3) to discuss tax challenges posed by digitalisation, especially regarding new business models and value creation process, the impact of Base Erosion and Profit Shifting (BEPS) actions, unilateral measures and recent tax developments in the European Union (EU) and the United States (US) while evaluating alternative approaches to reform the international tax system and highlighting difficulties and opportunities presented by Blockchain and collaborative economy for international taxation.

External author

Eli Hadzhieva

Trade and investment agreements with Singapore

07-02-2019

The trade and investment agreements with Singapore, the EU's largest commercial partner in the region, are the first between the EU and a member state of the Association of Southeast Asian Nations (ASEAN). The EU views bilateral agreements with ASEAN countries as steps towards the final objective of a region-to-region trade and investment agreement with ASEAN. The European Parliament is due to vote on giving its consent to the conclusion of the agreements with Singapore during the February plenary ...

The trade and investment agreements with Singapore, the EU's largest commercial partner in the region, are the first between the EU and a member state of the Association of Southeast Asian Nations (ASEAN). The EU views bilateral agreements with ASEAN countries as steps towards the final objective of a region-to-region trade and investment agreement with ASEAN. The European Parliament is due to vote on giving its consent to the conclusion of the agreements with Singapore during the February plenary session.

EU preparedness against CBRN weapons

29-01-2019

The European Union faces an increasingly challenging security environment, with a climate of international instability and a level of tension not seen since the end of the Cold War. Repeated chemical attacks by both State and non-state actors in the context of the Syrian conflict, the Novichok attack in Salisbury and the disruption of two ricine terror plots in Germany and in France in 2018 came all as stark reminders that the threat remains real and that Member States could be affected. In this ...

The European Union faces an increasingly challenging security environment, with a climate of international instability and a level of tension not seen since the end of the Cold War. Repeated chemical attacks by both State and non-state actors in the context of the Syrian conflict, the Novichok attack in Salisbury and the disruption of two ricine terror plots in Germany and in France in 2018 came all as stark reminders that the threat remains real and that Member States could be affected. In this context, the European Union (EU) continues to strengthen its capacities in the field of CBRN preparedness and response. The use of EU mechanisms and Member States’ military assets is one of the possibilities for strengthening prevention capacities that must be explored more thoroughly.

External author

Elisande NEXON, Senior Research Fellow, and Claude WACHTEL, Independent Consultant, Associate Senior Research Fellow, Fondation pour la Recherche Stratégique (FRS), France

International Agreements in Progress: The EU-Japan Strategic Partnership Agreement (SPA) - A framework to promote shared values

22-01-2019

The EU and Japan share the same basic values, including on democracy, market economy, human rights, human dignity, freedom, equality, and the rule of law. Against a background of increasingly assertive neighbours, they are also putting emphasis on security issues. The EU has adopted a Global Strategy placing security and defence as a key strategic priority, and conclusions on 'enhanced EU security cooperation in and with Asia'. Japan has reformed its security policy, aiming at becoming a 'proactive ...

The EU and Japan share the same basic values, including on democracy, market economy, human rights, human dignity, freedom, equality, and the rule of law. Against a background of increasingly assertive neighbours, they are also putting emphasis on security issues. The EU has adopted a Global Strategy placing security and defence as a key strategic priority, and conclusions on 'enhanced EU security cooperation in and with Asia'. Japan has reformed its security policy, aiming at becoming a 'proactive contributor for peace'. In order to enhance their relations, in July 2018 the EU and Japan signed a binding Strategic Partnership Agreement (SPA) – to come into force following ratfication by all Member States – along with an Economic Partnership Agreement (EPA), negotiated in parallel. The SPA represents a framework strengthening the overall partnership, by promoting political and sectoral cooperation and joint actions in more than 40 areas of common interest. Once in force, the EU-Japan strategic partnership will become more operational. The agreement will facilitate joint EU-Japan efforts to promote shared values such as human rights and rule of law, a rules-based international system, and peace and stability across the world. It will allow EU-Japan security cooperation to reach its full potential. Second edition. The 'International Agreements in Progress' briefings are updated at key stages throughout the process, from initial discussions through to ratification.

IMF World Economic Outlook reflects consensus views

15-01-2019

This briefing is provided by Policy Department A following the participation of the Members of the European Parliament's Committee on Economic and Monetary Affairs (ECON) in the Annual Meetings of the Boards of Governors of the International Monetary Fund (IMF) and the World Bank (WB) Group in Indonesia on 8-14 October 2018.

This briefing is provided by Policy Department A following the participation of the Members of the European Parliament's Committee on Economic and Monetary Affairs (ECON) in the Annual Meetings of the Boards of Governors of the International Monetary Fund (IMF) and the World Bank (WB) Group in Indonesia on 8-14 October 2018.

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