A Ky Fan minimax inequality for quasiequilibria on finite dimensional spaces

Several results concerning existence of solutions of a quasiequilibrium problem defined on a finite dimensional space are established. The proof of the first result is based on a Michael selection theorem for lower semicontinuous set-valued maps which holds in finite dimensional spaces. Furthermore this result allows one to locate the position of a solution. Sufficient conditions, which are easier to verify, may be obtained by imposing restrictions either on the domain or on the bifunction. These facts make it possible to yield various existence results which reduce to the well known Ky Fan minimax inequality when the constraint map is constant and the quasiequilibrium problem coincides with an equilibrium problem. Lastly, a comparison with other results from the literature is discussed

The market design proposal: the journey has only begun. EPC Commentary, 19 January 2017

On 30 November 2016, the European Commission issued the Clean Energy for All Europeans package, including a proposal for reforming the electricity market design. The reform will contribute to the transition of Europe’s power sector towards a decarbonised future, which accommodates renewable energy sources (RES) whilst avoiding the negative consequences for the security of supply (due to RES intermittency) and for cross-border trade (due to the fragmentation of national support schemes). This commentary argues that the proposal includes several important innovations, yet most of the work lies ahead and requires significant political will

Nord Stream expansion: what does it mean for Europe? EPC Commentary, 2 July 2015

Two announcements in sequence have shaken the energy debate on 18 and 19 June. Gazprom announced the signature of a Memorandum of Understanding with Shell, Exon and OMV for the construction of strings 3 and 4 of Nord Stream, aiming at doubling the current 55 bcm capacity of the corridor running in the Baltic sea bed and connecting the Russian terminal of Vyborg to Germany. On the day after, a €2 bn deal between Russia and Greece was signed for extending the Turkish Stream project into Greek territory. ..

Nord Stream 2: Rule no more, but still divide. EPC Issue Paper 25 June 2018

Nord Stream 2 (NS2) would lead to a sizeable capacity increase of the gas route connecting Russia and Germany. This paper examines the economic, strategic, legal and political implications of NS2 from an EU perspective

Gazprom’s evolving strategy in a new commercial and political context: how should the EU react? EPC Policy Brief, 27 April 2015

After years of unchallenged commercial domination of a sizeable portion of the EU's gas market, Gazprom is confronted with a statement of objections issued on 22 April by the EU Commission for abusing its dominant market position. The company was already prevented from going ahead with its South Stream project aimed at consolidating Gazprom's grip on Southeast Europe's markets by bypassing Ukraine – due to alleged non-compliance of intergovernmental agreements with the EU regulatory framework. Furthermore, it walked away from negotiations that could have allowed it to access more than 50% of the OPAL pipeline – an onshore branch of the offshore Russian German Nord Stream pipeline –, whilst its attempts to go downstream through the acquisition of European distribution and transmission operators, such as Wingas and DESFA, failed due to current political tensions and the risk of a negative Commission ruling on the operation. Does this mean that the Russian gas behemoth – so often portrayed as the energy arm of the Kremlin – is not so powerful after all? This Policy Brief aims to frame the erosion of Gazprom's power in a wider perspective, analysing its peculiar position at a time of transition, with the global gas business going from a sellers' to a buyers' market, and providing recommendations on how Europe should deal with it. It will be argued that Gazprom – despite still being affected by the Kremlin's political priorities – is moving towards more commercially sound behavior. The EU should profit from this evolution without being tempted by mercantilist options, and rather use the political momentum provided by the energy union to remove barriers to solidarity and to increase competition on the trading platforms

End of an energy honeymoon: what’s next for Russia-Turkey energy relations? EPC Commentary, 7 December 2015

Back in the autumn of 2014, the deal between Russia and Turkey on the Turkish Stream pipeline was expected to start a period of close energy cooperation between the two countries, potentially able to change the energy game in the region and consolidate political relations in a long-term perspective. One year later, after announcing the project’s size would be reduced by half, Moscow suspended the negotiations in retaliation to the downing of a Russian fighter jet by the Turkish Air Force at the border between Turkey and Syria. This seems to complement growing doubts about Turkish Stream, which already started as a result of Russia’s military involvement in Syria. From an EU perspective, recent developments raise doubts about Turkey’s role in the Union’s energy strategy

Trump’s gas doctrine: What does it mean for the EU? EPC Commentary, 26 July 2017

The United States (US) has always been a key player in the European Union’s energy security, as a supporter of its gas supply diversification plans. The Trump administration is underlining the US’ role as a gas exporter. This shift of tone from a strategic to a commercial approach risks furthering divisions and mistrust among European Union (EU) member states, with potential negative effects for the Energy Union

Adapting to change: Time for climate resilience and a new adaptation strategy. EPC Issue Paper 5 March 2020

The dramatic effects of climate change are being felt across the European continent and the world. Considering how sluggish and unsuccessful the world has been in reducing greenhouse gas (GHG) emissions, the impacts will become long-lasting scars. Even implementing radical climate mitigation now would be insufficient in addressing the economic, societal and environmental implications of climate change, which are expected to only intensify in the years to come. This means climate mitigation must go hand in hand with the adaptation efforts recognised in the Paris Agreement. And although the damages of climate change are usually localised and adaptation measures often depend on local specificities, given the interconnections between ecosystems, people and economies in a globalised world there are strong reasons for European Union (EU) member states to join forces, pool risk and cooperate across borders. Sharing information, good practices, experiences and resources to strengthen resilience and enhance adaptive capacity makes sense economically, environmentally and socially. The European Commission’s 2013 Adaptation Strategy is the first attempt to set EU-wide adaptation and climate resilience and could be considered novel in that it tried to mainstream adaptation goals into relevant legislation, instruments and funds. It was not very proactive, however. It also lacked long-term perspective, failed to put the adaptation file high on the political agenda, was under resourced, and suffered from knowledge gaps and silo thinking. The Commission’s European Green Deal proposal, which has been presented as a major step forward to the goal of Europe becoming the world’s first climate-neutral continent, suggests that the Commission will adopt a new EU strategy on adaptation to climate within the first two years of its mandate (2020-2021). In light of the risks climate change poses to ecosystems, societies and the economy (through inter alia the vulnerability of the supply chain to climate change and its potential failure to provide services to consumers), adaptation should take a prominent role alongside mitigation in the EU’s political climate agenda. Respecting the division of treaty competences, there are important areas where EU-wide action and support could foster the continent’s resilience to climate change. The European Policy Centre (EPC) project “Building a climate-resilient Europe”, which has culminated in this Issue Paper, has identified the following: (i) the ability to convert science-based knowledge into preventive action and responsible behaviour, thus filling the information gap; (ii) the need to close the protection gap through better risk management and risk sharing; (iii) the necessity to adopt nature-based infrastructural solutions widely and tackle the grey infrastructure bias; and (iv) the need to address the funding and investment gap. This Issue Paper aims to help inform the upcoming EU Adaptation Strategy and, by extension, strengthen the EU’s resilience to climate change. To that end, the authors make a call for the EU to mainstream adaptation and shift its focus from reacting to disasters to a more proactive approach that prioritises prevention, risk reduction and resilience building. In doing so, the EU must ensure fairness and distributive justice while striving for climate change mitigation and protecting the environment and biodiversity. To succeed, the new EU Adaptation Strategy will need to address specific challenges related to the information, protection, funding and investment gaps; and the grey infrastructure bias. To tackle and address those challenges, this Paper proposes 17 solutions outlined in Table 1 (see page 6)

Policy Uncertainty, Symbiosis, and the Optimal Fiscal and Monetary Conservativeness

This paper extends a well-known macroeconomic stabilization game between monetary and fiscal authorities introduced by Dixit and Lambertini (American Economic Review, 93: 1522-1542) to multiplicative (policy) uncertainty. We find that even if fiscal and monetary authorities share a common output and inflation target (i.e. the symbiosis assumption), the achievement of the common targets is no longer guaranteed; under multiplicative uncertainty, in fact, a time consistency problem arises unless policymakers� output target is equal to the natural level.Monetary-fiscal policy interactions, uncertainty, symbiosis.

Policy Uncertainty, Symbiosis, and the Optimal Fiscal and Monetary Conservativeness

This paper extends the stabilization game between monetary and fiscal authorities to the case of multiplicative (model) uncertainty. In this context, the “symbiosis assumption”, i.e. fiscal and monetary policy share the same ideal targets, no longer guarantees the achievement of ideal output and inflation, unless the ideal output is equal to its natural level. A time consistency problem arises.Monetary-fiscal policy interactions, uncertainty, symbiosis.