EYE ON EUROPE
STOCKHOLM NETWORK THE LEADING PAN-EUROPEAN THINK TANK AND MARKET-ORIENTED NETWORK
TURKEY’S ACCESSION CHALLENGES AND CHANGE TO THE EU ISSUE FIFTEEN
Turkey’s membership of the European Union has been a controversial issue not only for the EU, but also a source of contention in Turkey itself. In order to understand the domestic controversy, one should focus on the process of accession and not on membership itself in order to avoid the political and emotional barriers that have come to epitomise this issue. Beyond the membership goal, the people of Turkey need to reach a consensus on a minimum framework which will engender a peaceful coexistence in a country which plays host to great diversity. Factions in Turkey that speak out against tolerance and peace among the civil population are not helping to carry our country forward toward accession and are also going against our civic traditions.The political, legal and economic system, together with the approach of Turkey’s ruling elites, is to be the essential focus of an accession deal.
A QUESTION OF DEMOCRACY?
The debate around Turkey’s accession is a very useful one, because it shines a spotlight on some of the confusions that lie at the heart of the European Union. We do know that large numbers of Europeans are opposed to Turkish membership of the EU.The figures vary, but surveys that suggest over 80% of people in Austria, over 70% of people in France, and at least 55% in Germany are opposed to Turkish EU membership. We need to ask ourselves: is this down to some sort of racism or are these poll results the artifact of a more profound kind of controversy? Until recently, the majority of Turks had shown strong support for joining the EU; now many of those people seem to be disillusioned. ISSUE FIFTEEN
A Eurobarometer survey taken in February this year showed that only 49% of Turks thought EU membership would be a good thing.That is lower than many countries that are already in the EU and was down from 54% in the previous survey in spring last year and way down from surveys in 2003 and 2004 that showed support for EU membership at over 70%. Proponents of Turkish membership argue that the EU is not strictly defined by borders or geography. Instead of shared territory, perhaps the EU is about shared values. According to Olli Rehn, the EU enlargement commissioner, the only limit to the EU’s frontiers is the imagination. Most trends within 21st century Europe do not sustain strong evidence of belief in shared or common meaning. This is effectively shown in the debate over mutual recognition of the applicability of divorce law.The problem here is, for example,
To understand current struggles in Turkish politics, one needs only to examine its recent history. Turkey, where constitutional reforms had already started in the late Ottoman Empire in the early 20th century, had the continuation of its civil CONTINUED ON PAGE 2
IN THIS ISSUE: Book review: The Guide to Reform
The Stockholm Network Golden Umbrellas
Spotlight on Intellectual Property and Competition Programme
Turkey as an Energy Bridge
Think Tank Profiles
CONTINUED ON PAGE 3
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It won’t be easy for the Turkish establishment to stem the tide of democratisation and liberalisation. But some elements will try – recently Turkey has been dealing with violations of liberal democracy in the form of exploitation of the judicial system.Two political parties are filed to be closed down by the Constitutional Court: one who defends Kurdish rights with an indictment of challenging the unity of the nation and the other for consecutively getting 47 % of the votes with an indictment of challenging the secular system.
TURKEY’S ACCESSION TO EU … CHALLENGES AND CHANGE CONTINUED
society and constitutional tradition interrupted and fundamental freedoms suppressed in the early Republican era.The founders of the republic favoured “fast modernisation” over enjoying freedom.This path, inspired by a positivist mentality, effectively engendered a distrust of free will and a rigid devotion to modernity, science, and rationality.Thus the elites considered themselves as uniquely placed to lead Turkish society to prosperity. This goal of modernisation was accompanied by other fundamental principles of the Republic which made up the official ideology: secularism and nationalism. Obviously secularism is interpreted not in the Anglo Saxon mold but far beyond, in a French Jacobin tradition. Here, religion is considered as a blockage to modernisation, and religious symbols are duly removed from public life. Religion has always been pointed to as the biggest potential and present threat to modernisation in Turkey. To control society, the central authority practices a semi-official Muslim religious belief and practice. Any deviation from this – be it Muslim or non-Muslim – is recognised as a perversion or a threat. So not only the minority groups face suppression, but also the individual is unable to choose his way of life freely. Just as the principle of nationalism is problematic, a collectivist and authoritarian understanding of nationalism attempts to create homogeneity among all citizens, regardless of their ethnicity. Certainly some minority ethnic and religious groups have been harshly discriminated against, but actually the majority and, indeed, the individual is under threat.
secularism and the unity of the nation as an excuse to restrict liberties. In fact, it is their authority and privileges that will be threatened in a free, competitive and globalised society. The establishment is supported by big businesses and the media who are able to sustain their economic power through protectionist policies and, in the latter case, by defending the official ideology. Entrepreneurs operating without government subsidies are considered a threat to the regime. Similarly, groups small in numbers but with a high profile in society claim that their secular, modern lifestyles are under threat. It is unclear where this danger is coming from – the government for one has implemented and upheld legislation against religious or conservative people. Indeed, those groups integrated with civil and military bureaucracy have enjoyed many privileges and now seem disturbed by the openness and plurality of Turkish society.
Currently one of the issues regarding Turkey’s accession to meet the Copenhagen criteria is the infamous article 301, which exists “to protect Turkishness”. However, one should realise that there are many other elements that restrict freedom of expression in the constitution.This is due to the ‘official ideology’ which prevents the state being neutral before its citizens.This needs to be challenged and reformed.
The above depiction of Turkey’s political landscape illustrates that our country lacks civil opposition to government.There exists a loose democratic element and a strong establishment. The establishment aims to close the country off from global capitalism and the accompanying values and institutions that come with a free and democratic society. Restricting liberties and impeding democracy discourages foreign direct investment, and hinders the value of assets held by foreign investors, tourism revenues, as well as the activity of local entrepreneurs.
After the transformation of the system to a multi party democracy in 1950,Turkey was presented with great opportunities to extend and enhance personal freedoms. Unfortunately, the openness of Turkish society to global influences and the expansion of free markets have been viewed as a threat to the power of the ruling elites who respond every other decade with a military intervention. Indeed, there are also civil bureaucratic safeguards of this regime enshrined in the constitution to limit elected governments and civil society.They are mainly and namely the Presidency, Higher Courts, and the Higher Council of Education.Those institutions use
The EU integration process has helped the political government to strengthen its ability to limit the establishment via legal reforms expanding freedom of expression and association. Democratisation and liberalisation have made people optimistic about the future and keen to invest in the Turkish markets.Turkey has been rapidly changing for the last 10 years. The GNP per capita has increased to $9,300 (6,000) and the gro wth rate has been averaging 7 %.The emergence of new entrepreneurs has had positive implications across the social and economic life of the country. Increased diversity has also enriched Turkish society.
At this stage, it is crucial for civil and political will to be the determining factor in transforming the system to a fully constitutional government, and the complete establishment of freedom of expression, freedom of religion, freedom of association, private property rights, and a competitive free market economy as the safeguards of a free society.To this end, the continuation of the integration process to the European Union shall follow. Membership might not be the ultimate goal, yet the process itself is conducive to political reforms in Turkey. The European Union’s approach is instructive in Turkey’s domestic situation – instead of hesitancy and inconsistency on accession hopes, it would be more helpful if institutions and actors within the EU would uniformly speak out in support of democratic “forces” in Turkey. No limitations on freedom can be legitimised due to religious or cultural differences.Therefore, when Europeans look at Turkey, potential problems with such a partnership should be analysed in purely political terms, regardless of any religious or other differences. Freedoms are universal and political regimes cannot fight against sociological realities unless they promote violence – a policy that is not sustainable. In the words of the Freda Utley, “People of all nations have similar aspirations and can learn the universal lessons of freedom and prosperity”. As with every other entity and organisation, Europe is changing, and so is the European Union.The policy, the perception and the conditions, which currently make Turkey’s membership controversial, might change in the coming years. Moreover, the expansion of the EU together with Turkey’s membership might disrupt planned economic harmonisation standards and might urge the EU to become an increasingly free market zone. Ultimately, actors in civil society will continue to promote diversity of traditions underpinned by common and universal values of a free society all around Europe – a goal we should all strive for. Ozlem Caglar-Yilmaz is the General Coordinator at the Association for Liberal Thinking in Ankara
TURKEY’S ACCESSION TO EU … A QUESTION OF DEMOCRACY? CONTINUED
the Swedes who have embraced same sex marriages and where divorce is commonplace are not very happy about entering into a mutual recognition contention which would also include countries like Turkey, where elements of divorce law exist which would be entirely unacceptable in a Swedish court. Many sight the debate in Turkey over women’s right to wear a headscarf as proof that Turkey is unsuitable for EU membership, but many countries are having this debate.The headscarves issue is deeply divisive in France and in the Netherlands, thus the idea that it is indicative of some kind of backwardness in Turkey is simply not borne out by the wider European experience. There are deep divisions in Turkish society, but it is foolish to think that they run along straight religious lines. According to a major survey, conducted last year, only 9% of Turks would support the introduction of an Islamic state. That was down from 20% in 1999.Turkish women were given the vote many years before most countries in the EU.The idea of Turkey as a purely Muslim country is as ludicrous as saying that mainland Europe is purely Christian. Turkey has been a longstanding NATO ally and Turkey’s geopolitical importance is more to do with its geography than its cultural identity. Another important aspect of EU membership is the issue of democratic accountability and bringing democracy to countries that may have a problematic political tradition.There is a fundamental problem with this notion. Democratic societies must be built by peoples themselves, not imported wholesale. Indeed, the Turkish discussion strikes at the heart of the democratic malaise in the EU itself.The EU is currently in referendum denial, following the popular ‘No’ votes in France and the Netherlands. If it can’t be democratic at home, in its own territories, the idea of bringing democracy to Turkey is invalid. Europe should have a strong relationship with Turkey: a relationship based on internationalism and equality, and a precondition for building that kind of relationship is honesty. Bruno Waterfield is the Brussels correspondent for The Daily Telegraph
Book Review: The Guide to Reform By Johnny Munkhammar
“He who rejects change is the architect of decay”. It is not often that the words of former Prime Minister Harold Wilson are employed by proponents of free market reform, so it comes as a surprise when they provide the introduction to Munkhammar’s new book The Guide to Reform. The author states that his aim is two-fold: to inspire politicians to carry out more reforms and show them how to do it; and to show economists and business people how politics works and thereby how to communicate with politicians. Munkhammar succeeds in providing a clear and easy-to-follow guide for anyone hoping to institute (or at least promote) free market reform. With the aid of an interesting range of graphs and tables, the author successfully demonstrates that those countries which have implemented market-oriented policies have reaped substantial benefits, both in narrow economic terms and also in improved quality of life. Radical reforms in Estonia, for instance, have not only led to a 120% increase in average income over the past decade, but also to a higher standard of living in a country where today “restaurants abound, people communicate a sense of well-being... and there is activity wherever you look”. Munkhammar is keen to assert that it is not just small states such as Estonia that are able to institute change. He cites the UK’s experience over the last 25 years as compelling evidence that a large country can thrive on sustained market-oriented reform.The author also successfully draws upon certain periods in
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German, French, and Italian history to support his case, emphasising that “reform is not about adopting an Anglo-Saxon concept of society”. Munkhammar takes the reader through the main aspects of marketoriented reform, providing advice – with reference to real life examples – on what shape reform should take. He asserts, for example, that the perennial issue of substandard health care is reformable, and points to the success of recent Swiss and Dutch reform as evidence: “Switzerland and the Netherlands both have large privately funded health care sectors and have introduced competition on a major scale”. In line with his pragmatic approach, Munkhammar stresses the need for economists, business people and academics to understand the warlike nature of politics and to work with it – “For proposed reforms to be politically relevant they have to be useful ammunition in the political battle and not likely to blow up in your face”. For those readers who have already been convinced of the value of market-oriented reform, the early chapters of Munkhammar’s book will be preaching to the converted. Where this book stands out from other pro-market books, however, is in its focus on giving practical advice to those involved (or at least potentially involved) in actually implementing reform. Tamlin Vickers is currently a stagiaire at the European Parliament Research Team Helen Davison, Senior Researcher Simon Moore, Research Fellow David Torstensson, Research Officer Kristian Niemietz, Research Officer Gulya Isyanova, Research Officer
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As part the Stockholm Network’s 10 year anniversary celebrations, we held the first ever pan-European think tank awards ceremony on Wednesday 5th December 2007. The ‘Golden Umbrella Think Tank Awards’, which were held at the National Liberal Club in Whitehall Place, were not only a celebration of the Stockholm Network itself, but also provided greater recognition and support for the achievements of the think tanks we work with across Europe. A hotly contested field, the most influential think tanks from across Europe descended upon London, along with British and European politicians, journalists and policy makers.
Each of the nine awards were presented by luminaries from across the political landscape, with Boyden Gray, the US Ambassador to the EU, delivering the key note speech. Also in attendance were a number of committed free-market politicians and journalists, including the Conservative peer Lord Ashcroft, Shadow Defence Secretary Dr Liam Fox, the former Slovakian Prime Minister Jan Cournogursky and The Daily Telegraph columnist Janet Daley. In the 10 years since its inception, the Stockholm Network has acted as the umbrella organisation for market-oriented individuals and policy institutes in Europe. During this time the number of think tanks in the network has expanded exponentially, now reaching over 130 member think tanks. Ambassador C Boyden Gray
Matthew Elliott, Director of Taxpayers’ Alliance
Dimitar Chobanov, Chief Economist at the Institute for Market Economics with John Fund
the Stockholm Network thank Cara Walker and Helen Disney from for the evening Dr Karen Horn, Master of Ceremonies
Photos: Stephen Sandon
Helen Disney, Founder and CEO of the Stockholm Network Alice Thompson of The Daily Telegraph
Prof Atilla Yayla, winner of The Personality of the Year Award
ean Parliament Christofer Fjellner, Member of the Europ
Dr Jan Carnogursky, Prof Atilla Yayla and Susie Squire from the Stockholm Network
Dr Karen Horn, Richard Durana, Director of the Institute of Economic and Social Studies and Dr Céc ile Philippe
Dr Karen Horn, Fredrik Erixon, Director of Europe an Centre for International Political Economy, and the Rt Hon Iain Duncan Smith
Janet Daley of The Daily Telegraph
Dr TomPalmer from The Cato Institu te
And the winners are…
The Award for the Best Think Tank in New Market Economies Free Minds Association in Azerbaijan Presented by Ambassador C. Boyden Gray, US Ambassador to the EU
Director of the Dr Karen Horn,Tural Veliyev, Executive r C Boyden Gray Free Minds Association, and Ambassado
The Award for the Best Contribution to Free Market Thinking Dr José Piñera, former secretary of Labour and Social Security in Chile and founder of The International Centre for Pension Reform Presented by Dr Tom Palmer,Vice President for International Programs,The Cato Institute SUMMER 2008
The Best New Think Tank Award European Centre for International Political Economy in Brussels
The Award for Best Research Istituto Bruno Leoni in Italy
Presented by The Rt. Hon. Iain Duncan Smith MP, Centre for Social Justice
Presented by Christofer Fjellner MEP, European People’s Party (Christian Democrats) and European Democrats
SN Think Tank of the Year Award Institute for Market Economics in Bulgaria
The Innovation Award Taxpayers’ Alliance in the United Kingdom
Presented by Dr Jan Carnogursky, former Prime Minister of the Slovak Republic
Presented by Janet Daley, Leader Writer, The Daily Telegraph
The Personality of the Year Award Prof Atilla Yayla, Political Scientist and President of the Association for Liberal Thinking in Turkey
The Media Award Institute for Market Economics in Bulgaria Presented by John Fund, The Wall Street Journal
Presented by Alice Thomson, Assistant Editor, Comment Section, The Daily Telegraph The Internet Award Institute of Economic and Social Studies in Slovak Republic Presented by Dr Cécile Philippe, Director – General, Molinari Economic Institute
Alber to Mingardi, Direttore Generale
of the Istituto Bruno Leoni
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The issue of EU enlargement – and its political, economic and social consequences – has always been, and remains, a controversial topic. Several new countries are now on the cusp of becoming members of the EU, including Croatia, where the Stockholm Network recently hosted its 4th Annual Sponsors Retreat, along with others, like Turkey, whose situation still hangs in the balance. This Summer issue of Eye on Europe discusses the various questions surrounding Turkey’s proposed membership of the EU and, most importantly, also listens to what Turks themselves think about their own prospects for reform.To that end, we have invited one of our member think tanks, the Association for Liberal Thinking, to give us their views on Turkey’s future. There are many reasons to hope that Turkey’s accession to the EU will be a win-win situation. For Turkey, accession presents an excellent opportunity for modernisation and liberalisation. Indeed, the Stockholm Network’s ‘Golden 6
Umbrellas’ award ceremony last December presented Professor Atilla Yayla the “Personality of the Year Award” for his vigorous defence of freedom of speech in Turkey. For the EU, on the other hand, the inclusion of Turkey would represent the consolidation of a strategic alliance with a powerful neighbour. As our Energy Fellow, Paul Domjan, points out “if the EU is to forge a common external policy predicated on secure and diverse supplies,Turkey is indispensable”. Looking at energy and environment policies more broadly, the Stockholm Network is proud to have launched in June its latest report, Carbon Scenarios: Blue Sky Thinking for a Green Future, based on a set of three climate change policy scenarios. Based on the work of experts from across the ideological and professional spectrum, the report’s findings suggest that a radical step change in policy will be needed if Europe wishes to have any chance of meeting its environmental goals while also safeguarding economic growth.
Europe, including Turkey. We hope that their hard work and efforts to promote policies which stimulate economic growth and lead to greater personal freedom will inspire others to follow their example.
Last but not least, in this issue we are delighted to profile four of the Stockholm Network’s member think tanks from different parts of ISSUE FIFTEEN
Spotlight on the Intellectual Property and Competition Programme:
BENCHMARKING AND INDEXING SPECIAL
Much controversy exists around Intellectual Property Rights (IPRs). Often, the debates are as emotional as they are rational, centring on whether international agreements that attempt to establish standards of IP protection are beneficial or damaging to the interests of the developed and developing world. Yet, one of the most fundamental problems in public discussions on the strength of IPRs is the lack of sufficient information about the specific composition and weight of the total factors comprising national IP environments. For this reason, the Stockholm Network has sought to use benchmarking and indexing as an objective way to measure these environments. In creating a policy template that enables us to measure national policy environments we can better discuss the effects that IPRs have on economic wellbeing and national innovation systems. We can establish the relative strengths and weaknesses of IPRs in a given country, we can make cross-national comparisons across both the developed and developing world and attempt to find correlation between IP and its effects. We can then go on to formulate ‘best practice’ policy recommendations to encourage the development of IP systems that promote growth and innovation.
In the past our indexing and benchmarking projects have included broad policy environment indexes examining the strength of IP protection, and sector specific indexes that examine the composition of IP environments relevant to knowledge intensive industries like IT and pharmaceuticals. For example, the Stockholm Network’s IT-IP index attempted to address the shortage of information about the specific composition of the IP environment, relevant to Europe’s high tech industries (in general), and the IT sector in particular. In this way policy discussions about the issue were greatly enhanced, in particular around the need for Europe to implement significantly stronger IT-related IP elements if it could ever to hope to keep up with the IT industries in the US and Japan. SUMMER 2008
BENCHMARKING AND INDEXING – WHERE NEXT? The Stockholm Network Intellectual Property and Competition programme currently has a number of indexing and benchmarking programmes in the pipeline. Our Lisbon Agenda Barometer marks a new and innovative attempt to compare the progress of the EU in meeting its 2000 Lisbon Agenda goal of becoming the most dynamic, knowledge-based economy in the world. In ranking a number of EU countries alongside the US and Japan we hope to be able to identify best practice in promoting innovation and knowledge creation where it exists. Accompanying the Lisbon Agenda Barometer will be a Lisbon Agenda White Paper, which will use the measurements as a launch pad for discussing in greater detail the successes and failures of the EU in meeting its ambitious goals. Using instances of best practice, the paper will attempt to formulate some broad policy recommendations for the EU to follow if it is ever to come close to meeting its ambitious goals.
biotechnology and life sciences in our ‘Race for Innovation’ project. In examining down-stream and up-stream factors affecting the performance of the biotech and life sciences sector, we hope to combine empirical, cross-national analysis of our findings with a more general and qualitative discussion of the policy implications and lessons that we can draw from our analysis.The research will then form the basis of a S.W.O.T (strengths, weaknesses, opportunities and threats) analysis of some of the leading countries’ innovation efforts in the pharmaceutical and biotechnology sectors, as applied both at the regional and national level. In short, indexing provides us with a transparent and objective way to compare and contrast policy environments cross-nationally. In doing so we are able to plug the gaps in our knowledge about IP regimes, draw considered analysis and make well-informed policy recommendations. All publications of the Intellectual Property and Competition programme are available under the ‘Publications’ section on our website. For more information, please contact: email@example.com
We are also currently looking to provide high quality information about the state of 7
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PROFILE: New Economic School Georgia Tbilisi, Georgia
New Economics School – Georgia (NES-G) is a non-governmental and not-for-profit organisation based in Tbilisi, Georgia.The organising group of NES-G was established in August 2001 in the USA by Gia Jandieri (Vice-President) and Paata Sheshelidze (President). Actual operations NES-G started in 2002 and passed official registration under Georgian law on the 2nd of April 2003 in Tbilisi, Georgia.
The NES-G has been honoured three times by the Atlas Foundation, most recently by receiving the Dorian and Antony Fisher Grant in 2008, and has also previously received grants from FNF, CATO and others. Further, we have participated in brainstorming consultancy work with high level State officials including the Georgian President, Prime Minister, Ministers of State and the Chairwoman of the Parliament. More than 20 associate experts of NES-G were invited by the Government and have heavily influenced some revolutionary legislation that has moved the country toward free market reforms and deregulation. Ruth Richardson, Mart Laar, Andrei Illarionov, Jan 8
“In our next five year plan, our goal is to transform New Economics School – Georgia into an international resource and a formidable research and training centre for the dissemination of economic knowledge” Oravec, Marc Miles, Robert Lawson, Richard Ebeling,Tom Palmer and many others the NES-G invited to our country have helped to move the country in the direction of free market reforms and popularised ideas of economic freedom. The new website of NES-G was launched in July 2006; the site is available in English, Georgian and Russian. Media coverage received by NES-G experts increased exponentially in 2007 and continues in 2008 – we are currently averaging 2-3 interviews for different TV and Radio stations per week.
European Resource Bank Meeting (ERBM), the largest annual congress of free market think tanks in Europe.This meeting aims to provide participants with unparalleled networking opportunities, as well as with the chance to learn and share think tank methods and techniques that have been proven to promote liberty. In our next five year plan (2008-2013), our goal is to transform New Economics School – Georgia into an international resource and a formidable research and training centre for the dissemination of economic knowledge. In 2008 the NES-G is kicking off this initiative by collaborating with CIPE and USAID to organise Training for Journalists, a year-long project we hope will be a major success. We have much to celebrate at the NES-G, and much to do. We look to the future with anticipation and hope that we can keep growing, evolving and influencing opinion both in Georgia, and beyond. Tamara Khvtisiashvili is Secretary General and Office Executive at the New Economic School – Georgia
Between October 9 and 12 this year, the New Economic School-Georgia is hosting the Fifth ISSUE FIFTEEN
New Economics School – Georgia completed its first five year plan between 2002-2007.The aim of this plan was to create a recognisable brand, a network of like-minded people, and to influence and encourage economic reforms in Georgia. Along the way, NES-G conducted 160 seminars (more than 7,700 participants in total, among them 900 young people with certificate programmes), conferences and public lectures. We have also published and edited key texts including books by F. Bastiat, C. Menger, K. Schoolland,T. Machan, S. Hence and J. Gwartney as well as 5 volumes of selected articles under the title Library of Liberty.
The Hellenic Leadership Institute has also instigated the creation of the International Advisory Committee on Arab Affairs.The International Advisory Committee on Arab Affairs consists of eight prominent personalities in the business and media sectors who provide the necessary knowledge to approach the issues of entrepreneurship and civil society effectively.The committee contributes to our aim through the transfer of capacity building and education, capitalising on the public awareness work already done in promoting the ideas of transparency and rule of law in Egypt.The members of this committee, experts in their fields, also function as examples of principled leadership, facilitating HLI’s efforts to reach out to emerging leaders.
PROFILE: Hellenic Leadership Institute Athens, Greece www.hli.gr
HLI is a non-profit, non-governmental organisation, aiming to provide a nucleus of communication between Greece, the countries of the Mediterranean Region and the Arab world, in order to enhance the positive climate of extroversion in the areas of entrepreneurship and development, in the framework of civil society, rule of law and transparency. HLI is based in Greece, with headquarters in Athens, offices in Cairo, Egypt and a representation office in Arlington,Virginia (USA). The Hellenic Leadership Institute promotes the values of free economy and free society, as well as international cooperation, through the planning and implementation of development programmes in areas of the world where these values have not been fully embraced yet, or are seriously challenged. Our programmes are based on the principles of: building local networks; initiating interaction with carefully planned conferences; facilitating transfer of know-how with capacity building workshops and maximising message dissemination through media campaigns. Public opinion research is one of our most widely used tools to gain specific knowledge in the countries and issues we work on. For the past few years, HLI has been active in the organisation, planning and implementation of successful development programmes in Turkey and Egypt. In 2006, HLI received two Templeton Awards from the Atlas Economic Research foundation, for its “outstanding work in the field of SUMMER 2008
“We can broaden the civil society and entrepreneurial network to strengthen the overall influence of advocate agents for free enterprise and transparency and help create sustainable economic development” international development and cooperation in the region of South Eastern Mediterranean”. Since its foundation, the Hellenic Leadership Institute has focused on the Middle East and the Arab World. HLI has been active in Egypt, conducting programmes for the enhancement of free entrepreneurship and the promotion of civil society.
In 2008 the Hellenic Leadership Institute will continue its work in Egypt.The key challenge for HLI is to build upon the trust and credibility gained in Egypt and the work already accomplished, in order to strengthen our network with Egyptian Institutions and think tanks outside Cairo. Constant communication with the parties involved, and the recruitment of local people are key to the success of our project. Furthermore, we plan to expand our activities with publications and journalistic expeditions, to help promote free society and free economy values. We aim to maximise media exposure by bringing into contact the western and Egyptian media. This way we can broaden the civil society and entrepreneurial network to strengthen the overall influence of advocate agents for free enterprise and transparency and help create sustainable economic development. Katerina Stebili is the Director of Programmes and Communications at the Hellenic Leadership Institute.
Our programmes aim to promote the principles of free economy in the framework of democratisation and civil society. We focus on the creation of communication channels for the transfer of economic know-how, the enhancement of the role of the media in the promotion of free business in Egypt as well as the information of the public about the vital role of free entrepreneurship in the economic development of Egypt. During the HLI Pyramid programmes, workshops and conferences were organised in Cairo and Alexandria, with media and networking visits of our Egyptian partners to Athens. Furthermore, public opinion research and analysis were conducted, focusing on the entrepreneurial climate in Egypt today.
Photo: Michael Vlavianos
The Hellenic Leadership Institute (HLI) was founded in 2001 in Athens, Greece, by a group of dynamic entrepreneurs, with the aim to promote the values of democratisation, free enterprise and civil society as a means of sustainable economic development.
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PROFILE: Centre for Social Justice
London, United Kingdom www.centreforsocialjustice.org.uk
Looked-after children and destitute asylumseekers are two particularly vulnerable groups that have policy groups dedicated to finding new ways of helping them. As crime most hurts our hard-pressed communities, four CSJ policy groups are considering new approaches aimed at reducing crime and achieving effective rehabilitation. Police, courts and sentencing, the prison system and youth and gang crime are each being examined individually.
The Centre for Social Justice (CSJ) exists to champion and learn from grassroots poverty-fighting groups throughout the UK. Former Conservative Party leader Iain Duncan Smith established the Centre in 2004 to develop new approaches to tackling the poverty and social breakdown that still disfigures large parts of Britain today.
On his first day as Conservative leader in 2005, David Cameron asked Iain Duncan Smith to chair the first of a series of in-depth policy reviews, for which the CSJ provided the secretariat.The Social Justice Policy Group (SJPG) was tasked with addressing five ‘pathways to poverty’: family breakdown, educational failure, worklessness and economic dependency, addictions to drink and drugs and serious personal debt. In each of these areas, strengthening the voluntary sector’s work in helping vulnerable people escape poverty was a key emphasis. Although the SJPG was commissioned by the Conservative Party, its work was conducted fully independently. Breakthrough Britain, the Group’s final report, was published in July 2007 with 200 proposals to tackle social breakdown. Current policy is building on Breakthrough Britain’s foundations. We believe that reversing family breakdown and strengthening families is vital in sustainably alleviating poverty.The CSJ is soon publishing a pamphlet on improving the 10
“The CSJ is not a conventional Westminster think tank – policy development work is rooted in the experience and wisdom of many small charities, social entrepreneurs and faith based groups” life chances of vulnerable infants which Iain Duncan Smith is co-authoring with Graham Allen, the Nottingham Labour MP. A CSJ commission is also looking at potential reforms to the family law that may be contributing to family breakdown. Our economic dependency group is examining how the tax and benefits system could better encourage work and reduce poverty, with a particular focus on reforming tax credits and housing benefit. Our new housing policy group is studying the links between the housing system and poverty and considering changes to social housing to encourage social mobility.
The CSJ runs an annual charity awards programme sponsored by the Pears Foundation and JP Morgan. Double Olympic champion Dame Kelly Holmes was among the prize givers at last year’s ceremony.Through our Alliance we establish mutually beneficial long term relationships with the grassroots groups in our network. Many of these host MPs for our ‘Inner-City Challenge’, a five day placement during which the parliamentarian lives and works in an urban charity outside their constituency. Oliver Letwin and Ed Vaizey are among those who have completed the Challenge. Manchester, Birmingham and Glasgow have been visited by the Centre in recent months as part of a series of events considering the social problems in our major cities and how they could be better tackled. Hundreds of voluntary sector groups from these cities have joined with us to consider how Breakthrough Britain’s proposals might be applied in each town. Cameron Watt is the Deputy Director of the Centre for Social Justice.
Photo: Stephen Sandon
The CSJ is not a conventional Westminster think tank. Policy development work is rooted in the experience and wisdom of the many small charities, social entrepreneurs and faith based groups that are having great success in tackling Britain’s deepest problems where the best efforts of the state may have failed.
Our policy groups comprise top academics, policy makers and practitioners. For example, the policing group is chaired by Ray Mallon who pioneered ‘zero-tolerance’ policing in Middlesbrough, and former cabinet minister and prisoner Jonathan Aitken is heading our prison reform group.
PROFILE: Association for Liberal Thinking Ankara,Turkey www.liberal.org.tr
Before the efforts of ALT fellows, there had been no institutional and systematic efforts to spread free market ideology in Turkey’s history of thought.Therefore, ALT focuses on reaching out to national networks and publishes Turkish translations of classical liberal authors as well as contemporary contributions by modern and local authors.To date, ALT has published more than 150 books which are sold in retail outlets and online at www.liberte.com.tr. Since 1996, ALT has published a quarterly academic journal titled Liberal Dusunce (Liberal Thought). As an academy of ideas on free society, ALT holds ‘The Liberty School’ at regular intervals since 1993 which teaches essential titles and deals with contemporary challenges to freedom and the market economy.Thousands of people have graduated from these seminars. Attendees, especially university students, are encouraged to form groups to disseminate classical liberal ideas on their campuses or in their home cities. In order to establish a tradition of thought and sustain a network, ALT organises the SUMMER 2008
Annual Congress for Liberal Thought to bring together academics, researchers, journalists, lawyers and other intellectual entrepreneurs from all over Turkey to exchange ideas and defend freedom. ALT conducts some specific studies through its research centres on human rights, religious freedom, economic freedom, environmental studies and education. Moreover, ALT is trying to influence not only academia and university students but also politicians, civil servants, media and businessmen through counselling, research, publications, and newspaper articles. Some members of ALT are columnists in national daily newspapers and regularly write op-eds. Thanks to the consistency of the liberal position of ALT fellows over more than 15 years, ALT has proved its credibility as an opinion movement and its stance on defending political and economic freedom and promoting limited government. It does this regardless of religious orientation, ethnicity or culture. In this role, many members of ALT have assisted various human rights organisations, helping to emphasise their work on the violations of the rights of individuals, rule of law, and issues surrounding constitutional government. ALT also reaches out to local opinion leaders to discuss the problems facing Turkey within a framework of peaceful co-existence. Regarding the significance and magnitude of problems around freedom of expression and religious freedom, ALT has recently conducted some specific projects in addition to its regular efforts on civil liberties. During attempts at integration with the European Union, the Turkish government passed some legal reforms
“ALT aims to establish a tradition of thought in Turkish intellectual history, sustain a network of liberal intellectuals around the country, and promote intellectual entrepreneurs in other fields such as academia, media, literature and business” which instigated further debate on freedom of expression and religion.The outcomes of the work of ALT provided reference materials (such as theoretical publications and commentaries on the decisions of Higher Courts such as European Court of Human Rights and US Supreme Court) for public prosecutors, judges, lawyers and for researchers and academics.The subsequent open panel discussions further introduced the ideas to the general public. Opinion surveys of the general public and judges accurately reflected contemporary perceptions. Later, the legal scrutiny reports and policy recommendations provided concrete reference materials to public policy experts, politicians and bureaucrats. ALT’s activities and initiatives have had enormous impact on public debates, policy reforms and have mobilised further projects to expand freedom and limit government. ALT’s perspective for freedom in Turkey has drawn a framework beyond the requirements of EU integration, and will provide a better future for our country. Ozlem Caglar-Yilmaz is the General Coordinator at the Association for Liberal Thinking. 11
Photo: Nuray Koca
Association for Liberal Thinking was founded in 1992 by a small group of academics to introduce and advance the values and ideas of a free society such as freedom, tolerance, peace, individual rights, constitutional government, rule of law, a free market economy, free competition and free trade in Turkey. ALT aims to establish a tradition of thought in Turkish intellectual history, sustain a network of liberal intellectuals around the country, and promote intellectual entrepreneurs in other fields such as academia, media, literature and business.
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Turkey:The Energy Bridge Austria, Hungary, Romania, Bulgaria and Turkey – and Gazprom’s South Stream project are competing. Both pipelines would carry gas through Turkey and South-Eastern Europe, with Nabucco ending in Austria’s Baumgarten hub, and South Stream in Italy, although it is as yet undecided whether the pipeline will end in the north or the south of the country. Considerable diplomatic effort has been expended on both sides lobbying Austria and Hungary, the critical hub countries, about their project preference. Gazprom’s offer of a lucrative gas-storage hub in Hungary for its Blue Stream pipeline tested Budapest’s loyalty to the Nabucco consortium, threatening the entire project’s viability. When they ultimately demurred, Gazprom used the opportunity of a visit to Vienna by President Putin to purchase a stake in the giant Baumgarten Central European gas hub from OMV, the Austrian state-owned firm and Nabucco partner. Baumgarten is intended to be the terminus of the Nabucco pipeline, and the agreement has caused consternation in Brussels. Hungary, too, has now come strongly back into the Gazprom camp, with a major agreement on South Stream concluded at the end of February in Moscow.
The debate about Turkish accession to the EU has long hinged on a range of emotive cultural and historical issues. Yet one point on which there is wide consensus is that, if the EU is to forge a common external energy policy predicated on secure and diverse supplies,Turkey is indispensable. For centuries the armies, merchants and missionaries that shaped European history traversed the Anatolian heartland. In modern times, concerns over the reliability of Russian gas supplies mean that they are being replaced by energy pipelines running from the Caucasus, Central Asia and Iran into the heart of Europe. Competition for access to Turkey’s gas transit grid is fierce and highly politicised.The recently completed Baku-Tbilisi-Erzerum (BTE) pipeline, which carries offshore Azeri gas via Georgia 12
into the Turkish gas system, has provided an outlet that may eventually provide enough gas from Azerbaijan as well as potentially Turkmenistan, Kazakhstan and Iran to supply nearly 6% of Europe’s annual consumption. Erzerum also connects the Turkish gas grid with Tabriz, the Iranian export hub, which has long supplied eastern Turkey’s domestic gas consumption and could provide significantly greater volumes to Europe, as could gas from Turkmenistan supplied via Iran or via an admittedly unlikely future sub-sea trans-Caspian gas pipeline. However, although Turkey, Greece and Italy are linking their gas grids, the key interconnector between Central Europe and Turkey has yet to be built. It is over this gas route into Europe that a European consortium – the EU-backed Nabucco project, consisting of firms from
“Support in Berlin and Paris for Turkish accession remains almost entirely absent as political concerns continue to trump strategic interests” By contrast, relatively little time has been spent of late engaging Turkey on the complex issues surrounding its energy relationship with Europe. In 2005,Turkey refused to sign up to the EU’s Energy Community Treaty (ECT) – a document which it had helped draft – because, amongst other reasons, Brussels was unable to offer any prospect of substantive progress towards accession.Their institutional equivocation was most apparent when Energy Commissioner Piebalgs subsequently stated in Istanbul that Turkey has a standing invitation to join the ECT and that, “this is a process that of course has nothing to do with the EU accession – the one does not prejudge the other or vice versa – but ...as I see it these two processes have a common ground in the fact that they both stem from the understanding that further cooperation is needed between EU and Turkey in a number of fields.” ISSUE FIFTEEN
“The longer the EU’s accession policy diverges from its stated energy goals, the weaker its diplomatic credibility becomes” Active cooperation with Turkey is vital to ensure that Turkey becomes a route for alternative supplies to reduce the EU’s growing reliance on Russia’s increasingly uncertain gas supplies, rather than simply another route for Russian supply. Europe currently consumes more than 150 billion cubic metres (bcm) of Russian and Russian-transited Kazakh, Turkmen and Uzbek gas per annum.Yet a study by Vladimir Milov, a former Deputy Minister of Energy of the Russian Federation, suggests that declining giant fields and growing Russian domestic demand may see the deficit between contracted and delivered supplies grow to between 100-125 bcm by 2010. Gazprom, by far the largest Russian gas producer, is also unable to invest large sums in new exploration and production because its programme of domestic and European acquisitions has left it with massive capital debts. Meanwhile, the
ABOUT THE NETWORK
The Stockholm Network is the leading pan-European think tank and market-oriented network. It is a one-stop shop for organisations seeking to work with Europe’s brightest policymakers and thinkers. Today, the Stockholm Network brings together over 120 marketoriented think tanks from across Europe, giving us the capacity to deliver local reform messages and locally-tailored global messages across the EU and beyond. Combined, the think tanks in our network publish thousands of op-eds in the high quality European press, produce many hundreds of publications, and hold a wide range of conferences, seminars and meetings. As such, the Stockholm Network and its member organisations influence many millions of Europeans every year. SUMMER 2008
Russian gas sector is closed to private firms, whether foreign or domestic, which might have greater success in developing new fields. Yet support in Berlin and Paris for Turkish accession remains almost entirely absent as political concerns continue to trump strategic interests. Neither is keen to see their influence within the EU diluted further still, and both remain uncomfortable with both Turkey’s Islam and its relative poverty. Fortunately, Ankara has recently taken a more constructive approach, having improved its relations with Greece by negotiating the construction of an inter-connecter between their respective gas markets. Cyprus, however, remains the primary obstacle, refusing to allow the EU to open the Energy Chapter of accession negotiations.The latest spat between Nicosia and Ankara centres on oil and gas exploration licences in the disputed seas off Northern Cyprus.
through which the EU has so far failed to walk. Any EU imports from Turkmenistan that avoid Russia will have to transit Turkey, and Turkey could be a powerful ally in approaching Turkmenistan. Since Turkey is geographically destined to become critical to Europe’s future energy security – either by dint of Nabucco or South Stream, or both – the EU would be better served not to be regarded as a reluctant partner. Brussels needs to strike a grand bargain with Cyprus, perhaps arbitrating a diplomatic division of the Eastern Mediterranean oil and gas concessions in return for Nicosia’s acquiescence in opening the Energy Chapter, and concurrently press Turkey to join the ECT. The longer the EU’s accession policy diverges from its stated energy goals, the weaker its diplomatic credibility becomes. Paul Domjan is the Energy Fellow at the Stockholm Network
Furthermore, the death of Turkmenistan’s President Niyazov in December 2006 and his succession by Berdymukhammedov presented Europe with an opportunity for constructive engagement on Turkmen gas.This is a door
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Adam Smith Institute www.adamsmith.org United Kingdom Adam Smith Society www.adamsmith.it Italy Adriatic Institute for Public Policy www.adriaticinstitute.org Croatia Albanian Liberal Institute www.alblib.org Albania Anders Chydenius Foundation www.chydenius.net Finland Association for Liberal Thinking www.liberal-dt.org.tr Turkey Association for Modern Economy www.ame.org.mk Macedonia Avenir Suisse www.avenir-suisse.ch Switzerland Bulgarian Society for Individual Liberty www.libertarium.net Bulgaria Captus www.captus.nu Sweden Causa Liberal www.causaliberal.net Portugal Centre for Economic Development www.ced.bg Bulgaria Centre for Economic Development www.cphr.sk Slovakia Centre for Economics and Politics cepin.cz Czech Republic Centre for Entrepreneurship and Economic Development www.visit-ceed.org Montenegro Centre for European Policy www.cep.eu Germany Centre for European Reform www.cer.org.uk United Kingdom Centre for Institutional Analysis and Development www.cadi.ro Romania Centre for Liberal Strategies www.cls-sofia.org Bulgaria Centre for Liberal-Democratic Studies www.clds.org.yu Serbia Centre for Policy Studies www.cps.org.uk United Kingdom Centre for Political Thought www.omp.org.pl Poland Centre for Research into Post-Communist Economies www.crce.org.uk United Kingdom Centre for Social and Economic Research www.case.com.pl Poland Centre for Social Justice www.centreforsocialjustice.org.uk United Kingdom Centre for the New Europe www.cne.org Belgium Centre for the Study of Democracy www.csd.bg Bulgaria Centro Einaudi www.centroeinaudi.it Italy Centrum im. Adama Smitha www.smith.pl Poland Center for Policy Studies (CEPOS) www.cepos.dk Denmark Cercles Libéraux www.cerclesliberaux.com France CFACT Deutschland www.cfact.eu Berlin Civic Institute www.obcinst.cz Czech Republic Civita www.civita.no Norway
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BOOK FEATURE Why Europe Should Embrace Turkey By Katinka Barysch, Steven Everts and Heather Grabbe
The EU is currently in accession negotiations with Turkey. But a majority of voters in the EU, and many politicians, oppose Turkish membership. These essays examine the fears concerning Turkish membership and argue that many of them are misplaced.The authors examine the geo-strategic and economic consequences of Turkey joining the EU.They explain the accession process and advise the Turks on how to conduct the negotiations. And they suggest ways in which European politicians could convince voters that Turkey is, potentially, an asset rather than a burden for the EU. www.cer.org.uk/turkey_new/ publications_turkey_new.html
Stockholm Network’s online think-tank publications library is our unique one-stop catalogue of European think tank publications. After surveying our members, this initiative was given overwhelming support.We are now seeking all our members’ permission to upload into the library as many of their publications as they would like to see reaching a larger audience, across the Europe and the world. Our aim is to include all languages in the library, so if publications exist in more than one version, we would like to host it in all available languages.
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