SWP

Climate policy in the European Union (EU) and Germany changed significantly with the adoption of net-zero emissions targets. A key new development is the growing importance of carbon management. The umbrella term includes not only the capture and storage of CO2 (carbon capture and storage, CCS), but also CO2 capture and utilisation (carbon capture and utilisation, CCU) as well as the removal of CO2 from the atmosphere (carbon dioxide removal, CDR). It is important to provide clarity when differentiating between these approaches and identifying their relation to so-called residual emissions and hard-to-abate emissions. This is particularly important because it will determine the overall ambition of climate policy as well as shape future policy designs and their distributional impacts. Current policy and legislative processes should ensure that carbon management does not delay the phase-out of fossil fuels. New policy initiatives present an opportunity to actively shape the interface between ambitious climate and industrial policy.

Es ist eine Schicksalswahl für die Türkei. Bleibt Erdoğan Präsident oder schafft es sein Herausforder Kilicdaroglu vom Oppositionsbündnis, nach 20 Jahren einen Machtwechsel in der Türkei zu vollziehen und das autoritäre Präsidialsystem Erdogans zu beenden. Wir sprechen darüber mit Dr. Hürcan Aslı Aksoy vom Centrum für angewandte Türkeistudien (CATS). Sie sagt, dass die Wahl zwar frei sei, aber nicht fair.

In light of the deflationary trends following the 2008/2009 financial crisis, as well as the return of inflation triggered by the COVID-19 pandemic and the war in Ukraine, this book offers insights into price stability issues in various East Asian countries.

Konnektivität, besonders im Transportbereich, ist mit Blick auf den Südkaukasus während der letzten Jahre zu einem allgegenwärtigen Thema avanciert. Auch in der EU-Politik vis-à-vis der Region spielt Transportkonnektivität eine zentrale Rolle. Im Rahmen ihrer Global-Gateway-Initiative hat sich die EU dabei einem Engagement verschrieben, das gleichzeitig werte­basiert und geostrategisch ist. Um diesem Anspruch gerecht zu werden, sollte die EU die verschiedenen Dimensionen von Transportkonnektivität und ihre Implikationen auf mehreren Ebenen integriert betrachten. Vor allem der Verknüpfung von Konnektivität mit machtpolitischen Fragen sollte die EU Rechnung tragen. Bei der Etablierung genuin inklusiver und transparenter Multi-Stake­holder-Prozesse sowie unabhängiger projektbegleitender Moni­torings könnte die EU Unterstützung leisten. Dies könnte die Richtung zu einem eher holistisch gedachten Konnektivitätsansatz weisen. Die EU sollte ihr Konnektivitätsengagement auch kritisch auf mögliche Zielkonflikte abklopfen. Die Policy-Debatten in Berlin und Brüssel würden dabei von einem intensiveren Austausch mit der kritischen Logistik-, Infrastruktur- und Konnektivitätsforschung profitieren. Deren Erkenntnisse könnten zu einer nuancierteren Betrachtung von Transportkonnektivität und der damit verbundenen Komplexitäten und Ambivalenzen beitragen.

Mit der »Zeitenwende« in der internationalen Politik geht die Notwendigkeit einher, strategisches Denken zu stärken und sich für künftige Herausforderungen besser zu wappnen. Deutschland tut dies bereits, indem es strategische Dokumente zur natio­nalen Sicherheit und zu den Beziehungen mit China vorbereitet. In Bezug auf Russ­land drängt sich eine ähnliche Vorgehensweise auf: Erstens weil Russlands Aggression gegen die Ukraine die Situation in Europa und darüber hinaus für längere Zeit wesent­lich verschlechtert hat. Zweitens weil die Konzeption einer Russlandpolitik, die auf den seit 2022 deklarierten Leitlinien basiert, eine Möglichkeit bietet, frühere Fehler zu korrigieren und Maßnahmen, die aus einer Krisensituation hervorgegangen sind, in eine langfristige Politik zu verwandeln.

China has gradually emerged as an important player in the Eastern Mediterranean, where its economic power has allowed it to develop positive relations with virtually every regional country. In this interview, Daniel Schoolenberg asks Jens Bastian how China’s growing influence might affect the geopolitical dynamics currently at work in the region.

Sudan’s two main security forces are fighting each other. A swift military outcome is not to be expected in view of the relatively balanced power between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF). This strategic stalemate means that the chances for successful mediation are not hopeless. For this to happen, how­ever, Sudan’s international partners would have to abandon the approach that domi­nated negotiations for decades, namely giving violent actors a leading role in nego­tiations. Civilian actors formed a broad anti-war coalition that should set the tone for peace talks from the very beginning. This could well be in the interest of the parties to the conflict, as they will need a third actor to arbitrate their relationship in the future. The German government should strive for stronger coordination of the inter­national mediation approaches under civilian leadership from Sudan, while the Euro­pean Union (EU) should initiate constrains on the financial leeway of Sudan’s violent actors.

Die G7 tritt im Ukraine-Krieg geschlossen auf. Doch Russland betreibt eine international durchaus erfolgreiche Gegenmobilisierung. Was kann der Westen dagegen tun?

In a “non-paper” published at the beginning of May, 19 EU member states – including Germany, France, Hungary and Poland – outline ways to combat the growing problem of supply shortages of medicines. The situation is particularly dramatic for generic drugs, i.e., medicines without patent protection. Antibiotics, oncological preparations as well as medicines containing paracetamol and ibuprofen, such as syrups for children’s fevers, are particularly affected. In order to solve the problem, the relocation of production sites back to the EU takes a central role, both in the non-paper and in the latest proposal of the German government offered on the sidelines of the meeting of EU health ministers in Stockholm. However, the foundation and ultimate goal of any strategy must be the diversification of supply chains. Previous initiatives have neglected this aspect.

Initiatives to Address Bottlenecks

Health Minister Karl Lauterbach is promoting a “pan-European response”. His proposal to bring some generic drug production back to the EU is based on a current German legislative initiative to combat the supply shortages of generic drugs. Among other things, this initiative provides for incentives to relocate production back to Germany by requiring European production sites to be awarded contracts even if they charge higher prices.

 

The non-paper of the 19 EU member states takes a similar approach. It calls for a “Critical Medicines Act” to relocate essential steps in the production process back to the EU, following the example of the “European Chips Act” and the “Critical Raw Materials Act”. Although it makes sense to follow initiatives in the area of critical raw materials, the relocation of production back to the EU and also the obligation of manufacturers to stockpile – as included in the German legislative initiative – cannot be the only way. Although relocation and stockpiling may make sense in individual cases that still need to be examined in detail, these strategies are associated with enormous costs. Since manufacturers usually relocate due to low profit margins and a lack of investment incentives, production would have to be permanently subsidised or market prices would have to be increased. The latter would be a burden on health insurers and/or insured persons. Therefore, there is another component that is crucial and has received little attention so far, but it could be the foundation for a robust European pharmaceutical supply: The diversification of supply chains.

Necessary Diversification of Supply Chains

The EU is largely dependent on foreign-produced intermediates, active pharmaceutical ingredients (APIs) and finished pharmaceutical products (FPPs) in order to import generic drugs. Trade data from Eurostat shows that in 2021, 79 per cent of all antibiotic API imports (trade code 2941) came from China and 82 per cent of ibuprofen API imports (trade code 29163990) came from China and India in roughly equal proportions. In addition, the production of more than 50 per cent of global API production is concentrated in five producer countries. This strong concentration means that European supply chains are extremely vulnerable and present security-relevant weaknesses. During the Covid-19 pandemic, the geopolitical implications of medical supplies was already evident, and it is foreseeable that they will be increasingly instrumentalised in the future. To overcome this import concentration, new supply chains must therefore be opened up. Two points are important here.

 

First, more transparent supply chains are needed to identify critical dependencies. Currently, neither the European Health Emergency Response Authority (HERA) nor any other body has the power to require companies to disclose their supply chains. The European Commission should examine whether such a competence can be created through EU law. However, in order to avoid unnecessary bureaucracy and to protect companies, a disclosure obligation only makes sense on an event-related basis. The Commission could find inspiration in competition law, which requires transparency from companies in certain scenarios, such as subsidies and mergers.

 

Second, the EU will continue to be dependent on cheap medicines from abroad, since a large-scale relocation of production to the EU cannot be financed in the long term. This is all the more true as kick-start financing alone will not be sufficient, and permanent support for companies from states, health insurers and/or insured persons will be needed. To build up new supply chains, companies – mediated and secured by member states or the EU – could find new suppliers and manufacturers in Africa or South-East Asia, for example, or build up and expand local production, following the example of the “European Raw Materials Alliance” (ERMA) and the “Raw Materials Investment Platform” (RMIP). This also involves costs, as projects can fail, and diversification runs counter to cost-saving economies of scale. However, these costs are likely to be lower than those resulting from a strategy that relies solely on relocating production back to the EU and stockpiling goods that are already in short supply.

Die griechischen Parlamentswahlen am 21. Mai 2023 werden in mehrerlei Hinsicht einschneidend sein. Zum ersten Mal stimmen die Bürgerinnen und Bürger des Lan­des nach dem Verhältniswahlrecht für politische Parteien ab. Da Griechenland kaum Koalitionen kennt, ist mit einer schwierigen Regierungsbildung zu rechnen. Eine weitere Premiere ist, dass Griechen, die im Ausland leben, in ihrem Wohnsitzland wählen können. Und schließlich sind es die ersten Parlamentswahlen nach dem Ende der internationalen Aufsicht, dem das Land im Zuge seiner Staatsschuldenkrise mehr als ein Jahrzehnt lang unterstand. Für die griechische EU-Politik wird vor allem von Bedeu­tung sein, inwiefern sich neue Dialogformate im bilateralen Verhältnis zur Türkei ergeben – dem Nachbarland, das nur eine Woche zuvor gewählt hat.

When it comes to being supplied with raw materials, Europe faces a number of chal­lenges. These include the diversification of European supply chains, the implementation of effective sustainability standards, and the reduction of strategic dependencies on China. What will European-Chinese raw material supply chains look like in 2030? This paper outlines three possible scenarios, illustrating the combined effects of dif­ferent political and socio-economic developments and the impact they could have on European-Chinese supply chains. It aims to help political actors gain a deeper under­standing of possible future trajectories and map out appropriate policy strategies in response to different scenarios.