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Which development do you think will dominate the European agenda in the coming period and have the greatest geopolitical significance? – ELIAMEP experts’ views

ELIAMEP - Thu, 09/10/2026 - 15:24

Which development will be at the centre of the European agenda in the coming months? The war in Ukraine, geopolitical shifts in the Eastern Mediterranean and the wider region, as well as the remarkable rise of the far right across Europe, are contributing to an increasingly complex environment. Which of these developments will have the greatest geopolitical significance and have the strongest impact on Europe’s future? ELIAMEP Analysts share their assessments. (the post in available only in Greek)

 

Sovereign trust funds for planned climate relocations

Climate-induced planned relocation is becoming an unavoidable policy issue for some highly exposed communities. Although relocation should remain a last resort after other realistic options for adaptation in place have been assessed, ensuring that the money is available when needed to support relocation is critical. The challenge is that funding is insufficient, drawn from diverse sources and often arrives too late and in fragmented forms: for example, one project for housing, another for infrastructure, and little predictable support for consultation, land negotiations, safeguards, livelihoods, host communities or long-term maintenance. The financing problem is therefore not only the scale of the costs, but the difficulty of organising money over time and across institutions and safeguards. This can leave governments reacting after crises rather than planning before risks become unmanageable.
Sovereign trust funds offer one practical way to address this gap. They do not create finance by themselves, but they can provide a country-owned platform for receiving, sequencing and reporting domestic revenue, bilateral support, multilateral development bank (MDB) finance, climate funds, disaster risk finance, and loss and damage resources. They present an alternative to predominantly loan- and grant-based financing for planned relocation. Fiji’s Climate Relocation of
Communities Trust Fund shows both the promise and limits of this approach: It provides a legal and institutional basis for relocation finance within government and links international funding to procedures, but it still requires capitalisation, administrative capacity and long-term technical support. The model presents an opportunity to support sovereign, rights-based financing systems rather than relying solely on donor-funded, often piecemeal relocation projects. It can also make funding available at the appropriate time and without undue time pressure.
Key policy messages:
• Finance planned relocation before a crisis, especially assessment, consent, land, safeguards and project preparation.
• Treat relocation as a long-term investment in the collective good, rather than solely as a construction or emergency response measure.
• Support sovereign trust funds where they are legally mandated at the national level, budget-linked, transparent and capitalised.
• Use finance to uphold quality and rights, including community-led processes, support for host communities and support for long-term livelihoods.

Sovereign trust funds for planned climate relocations

Climate-induced planned relocation is becoming an unavoidable policy issue for some highly exposed communities. Although relocation should remain a last resort after other realistic options for adaptation in place have been assessed, ensuring that the money is available when needed to support relocation is critical. The challenge is that funding is insufficient, drawn from diverse sources and often arrives too late and in fragmented forms: for example, one project for housing, another for infrastructure, and little predictable support for consultation, land negotiations, safeguards, livelihoods, host communities or long-term maintenance. The financing problem is therefore not only the scale of the costs, but the difficulty of organising money over time and across institutions and safeguards. This can leave governments reacting after crises rather than planning before risks become unmanageable.
Sovereign trust funds offer one practical way to address this gap. They do not create finance by themselves, but they can provide a country-owned platform for receiving, sequencing and reporting domestic revenue, bilateral support, multilateral development bank (MDB) finance, climate funds, disaster risk finance, and loss and damage resources. They present an alternative to predominantly loan- and grant-based financing for planned relocation. Fiji’s Climate Relocation of
Communities Trust Fund shows both the promise and limits of this approach: It provides a legal and institutional basis for relocation finance within government and links international funding to procedures, but it still requires capitalisation, administrative capacity and long-term technical support. The model presents an opportunity to support sovereign, rights-based financing systems rather than relying solely on donor-funded, often piecemeal relocation projects. It can also make funding available at the appropriate time and without undue time pressure.
Key policy messages:
• Finance planned relocation before a crisis, especially assessment, consent, land, safeguards and project preparation.
• Treat relocation as a long-term investment in the collective good, rather than solely as a construction or emergency response measure.
• Support sovereign trust funds where they are legally mandated at the national level, budget-linked, transparent and capitalised.
• Use finance to uphold quality and rights, including community-led processes, support for host communities and support for long-term livelihoods.

Sovereign trust funds for planned climate relocations

Climate-induced planned relocation is becoming an unavoidable policy issue for some highly exposed communities. Although relocation should remain a last resort after other realistic options for adaptation in place have been assessed, ensuring that the money is available when needed to support relocation is critical. The challenge is that funding is insufficient, drawn from diverse sources and often arrives too late and in fragmented forms: for example, one project for housing, another for infrastructure, and little predictable support for consultation, land negotiations, safeguards, livelihoods, host communities or long-term maintenance. The financing problem is therefore not only the scale of the costs, but the difficulty of organising money over time and across institutions and safeguards. This can leave governments reacting after crises rather than planning before risks become unmanageable.
Sovereign trust funds offer one practical way to address this gap. They do not create finance by themselves, but they can provide a country-owned platform for receiving, sequencing and reporting domestic revenue, bilateral support, multilateral development bank (MDB) finance, climate funds, disaster risk finance, and loss and damage resources. They present an alternative to predominantly loan- and grant-based financing for planned relocation. Fiji’s Climate Relocation of
Communities Trust Fund shows both the promise and limits of this approach: It provides a legal and institutional basis for relocation finance within government and links international funding to procedures, but it still requires capitalisation, administrative capacity and long-term technical support. The model presents an opportunity to support sovereign, rights-based financing systems rather than relying solely on donor-funded, often piecemeal relocation projects. It can also make funding available at the appropriate time and without undue time pressure.
Key policy messages:
• Finance planned relocation before a crisis, especially assessment, consent, land, safeguards and project preparation.
• Treat relocation as a long-term investment in the collective good, rather than solely as a construction or emergency response measure.
• Support sovereign trust funds where they are legally mandated at the national level, budget-linked, transparent and capitalised.
• Use finance to uphold quality and rights, including community-led processes, support for host communities and support for long-term livelihoods.

Agree to disagree: why the AU and the EU should engage in pragmatic partnerships

The AU–EU partnership should embrace the plurality within both unions, make interests transparent, and enable pragmatic cooperation between coalitions of willing countries, helping to bring proclaimed ambitions closer to actual practice, explain Benedikt Erforth and Lena Gutheil.

Agree to disagree: why the AU and the EU should engage in pragmatic partnerships

The AU–EU partnership should embrace the plurality within both unions, make interests transparent, and enable pragmatic cooperation between coalitions of willing countries, helping to bring proclaimed ambitions closer to actual practice, explain Benedikt Erforth and Lena Gutheil.

Agree to disagree: why the AU and the EU should engage in pragmatic partnerships

The AU–EU partnership should embrace the plurality within both unions, make interests transparent, and enable pragmatic cooperation between coalitions of willing countries, helping to bring proclaimed ambitions closer to actual practice, explain Benedikt Erforth and Lena Gutheil.

Digitalization and innovation in Egyptian firms: does female ownership and management matter?

This paper examines how leadership gender configurations shape digitalisation and innovation in Egyptian manufacturing. Using the 2020/21 Egyptian Industrial Firm Behavior Survey (EIFBS) covering 2,338 firms, we construct a four-category gender variable (female owners and male managers (FOMM), male owners and female managers (MOFM), female owners and female managers (FOFM) and all-male baseline) and analyse how these owner–manager gender mixes relate to the adoption of digital technologies (DT) and to innovation outputs, and how these relationships vary by firm size and DT use. Our analysis suggests that firms with male owners and female managers (MOFM) are most likely to adopt DT across specifications. The cross-sectional data suggests that mixed-gender firms are associated with a higher probability of spending on R&D, but not with higher innovation outputs in firms with female owners (i.e. FOMM and FOFM) – pointing toward an innovation conversion gap in those firms. Heterogeneity results show that the MOFM adoption premium of DT and a negative association between FOMM and innovation are strongest in small firms. DT use moderates gender gaps: female-owned firms not using DT are significantly less likely than all-male firms to generate innovation outputs, but this penalty disappears when female-owned firms use DT. A combined size–sector analysis suggests that the divergence between MOFM and FOMM/FOFM is driven mainly by small food manufacturers, with average marginal effects elsewhere broadly comparable. The results highlight leadership composition as a correlate of technology adoption and the role of DT in converting innovation inputs into outputs.

Digitalization and innovation in Egyptian firms: does female ownership and management matter?

This paper examines how leadership gender configurations shape digitalisation and innovation in Egyptian manufacturing. Using the 2020/21 Egyptian Industrial Firm Behavior Survey (EIFBS) covering 2,338 firms, we construct a four-category gender variable (female owners and male managers (FOMM), male owners and female managers (MOFM), female owners and female managers (FOFM) and all-male baseline) and analyse how these owner–manager gender mixes relate to the adoption of digital technologies (DT) and to innovation outputs, and how these relationships vary by firm size and DT use. Our analysis suggests that firms with male owners and female managers (MOFM) are most likely to adopt DT across specifications. The cross-sectional data suggests that mixed-gender firms are associated with a higher probability of spending on R&D, but not with higher innovation outputs in firms with female owners (i.e. FOMM and FOFM) – pointing toward an innovation conversion gap in those firms. Heterogeneity results show that the MOFM adoption premium of DT and a negative association between FOMM and innovation are strongest in small firms. DT use moderates gender gaps: female-owned firms not using DT are significantly less likely than all-male firms to generate innovation outputs, but this penalty disappears when female-owned firms use DT. A combined size–sector analysis suggests that the divergence between MOFM and FOMM/FOFM is driven mainly by small food manufacturers, with average marginal effects elsewhere broadly comparable. The results highlight leadership composition as a correlate of technology adoption and the role of DT in converting innovation inputs into outputs.

Digitalization and innovation in Egyptian firms: does female ownership and management matter?

This paper examines how leadership gender configurations shape digitalisation and innovation in Egyptian manufacturing. Using the 2020/21 Egyptian Industrial Firm Behavior Survey (EIFBS) covering 2,338 firms, we construct a four-category gender variable (female owners and male managers (FOMM), male owners and female managers (MOFM), female owners and female managers (FOFM) and all-male baseline) and analyse how these owner–manager gender mixes relate to the adoption of digital technologies (DT) and to innovation outputs, and how these relationships vary by firm size and DT use. Our analysis suggests that firms with male owners and female managers (MOFM) are most likely to adopt DT across specifications. The cross-sectional data suggests that mixed-gender firms are associated with a higher probability of spending on R&D, but not with higher innovation outputs in firms with female owners (i.e. FOMM and FOFM) – pointing toward an innovation conversion gap in those firms. Heterogeneity results show that the MOFM adoption premium of DT and a negative association between FOMM and innovation are strongest in small firms. DT use moderates gender gaps: female-owned firms not using DT are significantly less likely than all-male firms to generate innovation outputs, but this penalty disappears when female-owned firms use DT. A combined size–sector analysis suggests that the divergence between MOFM and FOMM/FOFM is driven mainly by small food manufacturers, with average marginal effects elsewhere broadly comparable. The results highlight leadership composition as a correlate of technology adoption and the role of DT in converting innovation inputs into outputs.

Formal and informal labour demand in Egyptian manufacturing firms

This paper investigates the determinants and dynamics of labour demand and specifically informal labour in Egypt’s manufacturing sector, using nationally representative firm-level data from the 2020/21 Egyptian Industrial Firm Behavior Survey. Applying ordinary least squares and fractional logit models, we analyse total employment, the share of informal labour, and its average annual change over the firm life cycle. Three key findings emerge. First, employment is positively associated with capital, exporting, technology adoption, innovation, industrial zones, worker training, and managerial education, and negatively associated with sole proprietorships, wages, and total factor productivity. Second, informal employment is more common among private sector firms, sole proprietorships, and firms using more part-time workers, and less prevalent among firms adopting technology or led by more educated managers. Third, changes in informality over time are modest: most formal firms exhibit no change in the share of informal workers. Notably, formal firms that did not initially employ informal labour tend to increase their informal share, while firms that formalised continue to rely heavily on informal employment. Together, these findings underscore the persistence of informality and limited transitions towards full formalisation within Egypt’s formal manufacturing sector.

Formal and informal labour demand in Egyptian manufacturing firms

This paper investigates the determinants and dynamics of labour demand and specifically informal labour in Egypt’s manufacturing sector, using nationally representative firm-level data from the 2020/21 Egyptian Industrial Firm Behavior Survey. Applying ordinary least squares and fractional logit models, we analyse total employment, the share of informal labour, and its average annual change over the firm life cycle. Three key findings emerge. First, employment is positively associated with capital, exporting, technology adoption, innovation, industrial zones, worker training, and managerial education, and negatively associated with sole proprietorships, wages, and total factor productivity. Second, informal employment is more common among private sector firms, sole proprietorships, and firms using more part-time workers, and less prevalent among firms adopting technology or led by more educated managers. Third, changes in informality over time are modest: most formal firms exhibit no change in the share of informal workers. Notably, formal firms that did not initially employ informal labour tend to increase their informal share, while firms that formalised continue to rely heavily on informal employment. Together, these findings underscore the persistence of informality and limited transitions towards full formalisation within Egypt’s formal manufacturing sector.

Formal and informal labour demand in Egyptian manufacturing firms

This paper investigates the determinants and dynamics of labour demand and specifically informal labour in Egypt’s manufacturing sector, using nationally representative firm-level data from the 2020/21 Egyptian Industrial Firm Behavior Survey. Applying ordinary least squares and fractional logit models, we analyse total employment, the share of informal labour, and its average annual change over the firm life cycle. Three key findings emerge. First, employment is positively associated with capital, exporting, technology adoption, innovation, industrial zones, worker training, and managerial education, and negatively associated with sole proprietorships, wages, and total factor productivity. Second, informal employment is more common among private sector firms, sole proprietorships, and firms using more part-time workers, and less prevalent among firms adopting technology or led by more educated managers. Third, changes in informality over time are modest: most formal firms exhibit no change in the share of informal workers. Notably, formal firms that did not initially employ informal labour tend to increase their informal share, while firms that formalised continue to rely heavily on informal employment. Together, these findings underscore the persistence of informality and limited transitions towards full formalisation within Egypt’s formal manufacturing sector.

Förderung regionaler Innovationsnetzwerke stärkt vor allem kleine und mittlere Unternehmen

DIW-Studie beleuchtet Effekte von Clusterförderung in Deutschland – Besonders kleine und mittlere Unternehmen werden unterstützt, betriebliche Kapazitäten und Innovationsaktivitäten auszuweiten – Forschende empfehlen stärkeren Fokus auf diese Unternehmen bei künftigen Clusterprogrammen Kleine und ...

Der verlorene Mann

Bei der Wahl in Sachsen-Anhalt unterstützen die AfD vor allem viele Männer. Marcel Fratzscher meint, man muss verstehen, warum viele junge Männer die AfD wählen. Erst dann kann man sie zurückgewinnen., Die Sorge über den Rechtsruck unter jungen Männern ist berechtigt: Bei vergangenen Wahlen haben viele von ihnen die AfD gewählt, während junge Frauen deutlich häufiger progressive oder liberale Parteien unterstützen. Viele erklären das mit toxischer Männlichkeit, Anti­feminismus und mangelnder ...

International cooperation and contestation in the Trump Era: how can countries exercise agency in a fragmenting order?

Countries now act in an international cooperation architecture whose rules are disputed from several directions at once. One of those directions is the hegemon itself, the US. The paper argues that the Trump administration’s disruption matters because it moves the largest actor from affirming to contesting across several arenas at once. That reshuffles the calculus for every country. This paper asks how countries can exercise agency when the international order itself is fragmenting. The paper surveys the bewildering array of concepts on state agency and proposes a schema built on two continua. The first is the medium or type of agency, meaning material/institutional versus ideational/discursive. The second is orientation to the prevailing order in a specific arena (not in general) as affirming versus contesting. Countries are not fixed in one position. Whether the same state contests the rules depends on its interests in a particular arena. Each potential position is available only to a country that can pay the arena’s entry fee. The entry fee is the resources, broadly defined, a position demands before a country can take it up. The paper sets out the strategic positions available in a fragmenting system. It names a further position, norm imperialism, where material instruments are turned against an ideational object. The implications for different types of country are discussed.

International cooperation and contestation in the Trump Era: how can countries exercise agency in a fragmenting order?

Countries now act in an international cooperation architecture whose rules are disputed from several directions at once. One of those directions is the hegemon itself, the US. The paper argues that the Trump administration’s disruption matters because it moves the largest actor from affirming to contesting across several arenas at once. That reshuffles the calculus for every country. This paper asks how countries can exercise agency when the international order itself is fragmenting. The paper surveys the bewildering array of concepts on state agency and proposes a schema built on two continua. The first is the medium or type of agency, meaning material/institutional versus ideational/discursive. The second is orientation to the prevailing order in a specific arena (not in general) as affirming versus contesting. Countries are not fixed in one position. Whether the same state contests the rules depends on its interests in a particular arena. Each potential position is available only to a country that can pay the arena’s entry fee. The entry fee is the resources, broadly defined, a position demands before a country can take it up. The paper sets out the strategic positions available in a fragmenting system. It names a further position, norm imperialism, where material instruments are turned against an ideational object. The implications for different types of country are discussed.

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