The Great Debate UK

Europe needs smarter education and research investment

Anka Mulder–Anka Mulder is Vice-President for Education and Operations at Delft University of Technology.  She was formerly Global President of the OpenCourseWare consortium.—

Education and research infrastructure, such as laboratory facilities and digital learning networks, play an increasingly important role in diffusing knowledge and technology to enhance prosperity. At a time when the overall EU budget has decreased for the first time ever, education and research programmes such as Erasmus+ and Horizon 2020 continue to receive significant funding increases, but Europe is still falling behind other areas of the world in building digital infrastructure.

Part of the reason is that education largely remains a national-level responsibility and the record of individual countries is uneven. This is due to a lack of prioritisation in some member states, post-crisis budget cutbacks, and many member states not using EU Structural and Investment Funds for funding research infrastructures, despite encouragement from Brussels.

Investing more smartly in education and research is perhaps as important as absolute levels of investment. Of the Erasmus+ budget, 77% is spent on mobility for nearly 500,000 higher education students and teachers/lecturers per year.

Youth is the answer to the EU’s troubling voter turnout rate

MJC–Dr Marie Julie Chenard is Deputy Head of the Cold War Studies Programme at LSE IDEAS and Academic Officer for the Dahrendorf Symposium Project at the London School of Economics and Political Science. The opinions expressed are her own.–

The European elections are the second biggest exercise in democracy world-wide (behind India). Nearly 400 million EU citizens were eligible to vote their representatives to the European Parliament between the 22nd and 25th May, but only 43% actually did. What can be done to increase participation in elections that have an impact on 500 million people?

Italy – the new good man of Europe

Up until Monday, Italy used to be known as the sick man of Europe. It has huge debts, sclerotic growth and had been ruled by a billionaire prone to a bunga-bunga parties. It was at risk of becoming the laughing stock of the currency bloc. The relationship in recent years between Italy and Germany has been dreadful. But could things be about to change?

Italy could become the best man of Europe after the EU elections last weekend. Italian Prime Minister Matteo Renzi’s Democratic Party won an impressive 33% of the vote, beating off competition from the anti-establishment Five Star Movement led by Beppe Grillo. Silvio Belusconi’s Forza Italia was left straggling in Renzi’s wake with only 18% of the vote.

Scepticism about the state runs deep

–Sheila Lawlor is Director of the London think tank, Politeia. The opinions expressed are her own.–

As UKIP’s earthquake materialises, with the party topping the European poll and the Conservative party narrowly missing second place, a shift in the political landscape is underway. Even before counting of the council votes had finished, or that for the European parliament had begun, the message from voters was clear – people were returning to the values with which they most readily identify: socialist or conservative.

Why Antwerp is under threat as the world’s diamond trading centre

–Vashi Dominguez is the founder of Vashi.com. The opinions expressed are his own.–

When the European Union and the U.S. took action against Russia over the invasion of Crimea and the crisis in Eastern Ukraine, alarm bells immediately rang for the diamond industry. Russia is one of the biggest suppliers ($2.8 billion last year) of rough diamonds for Belgium, through which 80% of all rough diamonds and 50% of all polished stones pass. If Antwerp were to lose access to Russia’s diamonds, it would be the latest in a string of challenges facing the world’s diamond trading centre.

from The Great Debate:

Europe is under siege from both the left and right

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Elections will begin on Thursday across the 28 European Union member states to elect national representatives to the European Parliament, which regulates trade, borders and some elements of foreign policy. Though this is a continent-wide election, voters historically use it to send a message to their own nation’s governing party. With the meteoric rise of anti-European populism on the political left and right, however, things promise to buck that trend this time.

This was not how things were supposed to be. Five years ago, at a meeting of the European Union’s heads of state and government in Lisbon, Portugal, European leaders signed a treaty that foresaw these elections as defining the political direction of the European Union. This week’s elections are supposed to mark a turning point, as competing progressive, liberal, green and conservative visions of Europe’s future vied for popular support.

from The Great Debate:

A good deal for Greece, its creditors, and Europe

Amid all the doom and gloom about Greece in the last few weeks, it is easy to overlook an important piece of good news: the debt exchange offer published by Greece on Friday with endorsement by its main private and official creditors. If implemented, this would be a major achievement and an important step toward overcoming the euro zone crisis, almost regardless of what happens next.

Under the offer, bondholders would receive 15 percent of the face value of their bonds in the form of short-term European Financial Stability Facility (EFSF) bonds, plus a set of new Greek sovereign bonds maturing between 2023 and 2042, with a 31.5 percent face value.

A 6-1 defeat is not a draw

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Michael Gove trying to laugh off Monday’s rebellion by 81 backbenchers sounds like a United supporter arguing that 6-1 was more or less a draw. For all the excuses, he can’t hide the fact that the government’s position is full of contradictions.

On the one hand, the PM has added his voice to the chorus calling for the euro zone to turn itself into a monetary-and-fiscal union, a proposal which certainly goes with the grain of the crisis. The idea has the support of the Americans and would probably be warmly welcomed in Asia too. In fact, it has great appeal everywhere except in the euro zone itself, where the main protagonists themselves have got a severe attack of cold feet.

Another week, another E.U. bailout agreement

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By Mark Hillary. The opinions expressed are his own.

Once again German Chancellor Angela Merkel has had to dig deep to ensure that the euro zone can limp along for a little longer without any single nation defaulting.

And this story changes day by day. No sooner has Germany rescued the euro, Greece apologises and says they can’t meet the deficit targets – no more savings can possibly be achieved through austerity.

Could Europe be on the cusp of a Lehman moment?

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By Kathleen Brooks. The opinions expressed are her own.

The euro zone debt crisis has now spread from the sovereigns – after the ECB came in and purchased Italian and Spanish debt – to the banking sector. Although the EU authorities put in place a short-selling ban, which has another week to run, the banking sector is back at the pre-ban levels or in some cases even lower.

Europe’s banks are by and large less capitalised than their U.S. peers. They are also exposed to Europe’s sovereign debt and European loan books. Even if a member state manages to avoid a default, growth is now slowing and we could be in line for another recession that would most likely increase bad debts and further erode banks’ profits.

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