EYE ON EUROPE STOCKHOLM NETWORK THE LEADING PAN-EUROPEAN THINK TANK AND MARKET-ORIENTED NETWORK ISSUE EIGHT
SPRING 2006
A COLD DARK FUTURE? Sitting in the funky, inflatable boardrooms of 1999, the future looked bright. Stock markets were booming, with dot-coms winning all the plaudits (no matter how wacky their corporate cultures). Oil was trading at just over ten dollars a barrel, and nothing was so deeply unfashionable as the “old economy”. Since then, with oil prices now reaching record nominal highs of $60 per barrel, energy has seldom left the headlines. Even Hollywood is taking an interest, with George Clooney winning an Oscar for the film Syriana, his conspiratorial take on the global energy business. Europe’s advanced industrial economies already import about 60% of their oil and this is forecast by the International Energy Agency to rise to 85% by 2030. For natural gas also, imports are expected to rise from 40% to 65% of use by 2010 and 75% in 2020, with Russia likely to maintain and expand its dominant market share. CONTINUED ON PAGE 3
DEFUSING THE PENSIONS TIMEBOMB We are facing a demographic time bomb: by 2050, there will be 2 workers for every 1 retired individual in most European countries. In Spain and Italy, the ratio is forecast to be 1:1. The harsh reality is that current pay-as-you-go pension systems are financially, economically and socially unsustainable. Policy makers and citizens of Europe alike are awakening to the fact that unless the current systems are reformed rapidly, public liabilities in the near future will be astronomical. Without reform, pensioners will bankrupt the welfare state. A Stockholm Network conference: Europe Needs Saving: Defusing the Pensions Time bomb, held in Brussels in February 2006, brought together some of the world’s leading experts on pensions and pension reform in an attempt to identify common problems, discuss different country experiences and search for ways to brighten the ISSUE EIGHT
seemingly gloomy future for Europe’s pensioners. The conference was attended by 60 politicians, policy makers, journalists, and industry and civil society representatives, and its success has led to the publication of their expert views. In a sense, the first hurdle has been cleared – politicians and usually sceptical publics do recognise the existence of a ‘pensions problem’. This publication, however, does not concern itself solely with the political challenges surrounding the process of reform. Acknowledging the existence of the problem, the experts seek answers to the following questions:What are the alternatives to a pay-as-you-go system? Are Notional Defined Contribution schemes – such as the one applied in Sweden – the answer? Is a fully funded system – such as the one achieved in Chile – the ultimate solution, and even if it is, can it be sold politically in Europe? CONTINUED ON PAGE 3
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DIRECTOR’S REPORT
While some markets in Europe remain resistant to liberalisation – health and postal services to name just two – the energy market has not been one of them. Until recently, UK consumers at least have been reaping the benefits of competition and choice, including some of the lowest domestic energy prices in Europe. Now, however, the prospects for the future appear dimmer. Unless public policy changes to accommodate the new energy environment, including Russia’s more aggressive stance and the recent rise in wholesale gas and electricity prices in the UK, our economy and even the independence of our foreign policy could be at risk. With this in mind, the Stockholm Network is organising a major half-day seminar to address the issue of Europe’s Energy Crisis. Speakers will examine the future of Europe’s energy mix, what the correct balance might be between different forms of energy, and the impact of political freedom on a coherent energy policy for Europe. And what impact will global foreign policies have on the future security of our energy supply? The event will also mark the official arrival of the Stockholm Network’s new Director of Environmental Affairs, Peter Nolan, who will be working with us to highlight some of the energy and environmental challenges Europe is facing. Recently recruited too is Simon Moore who joined the Stockholm Network in early 2006 following the completion of a successful internship period. In addition to administrative work and website maintenance, Simon recently finished editing Beyond the Borders, a companion piece to The Stockholm Network’s State of the Union publication, looking at market-oriented reform in Europe’s non-EU member states. Simon holds a bachelors degree in politics from Lancaster University, where he was awarded the Frank Cass/Oakeshott prize for best overall performance in political theory and comparative politics. 2
We welcome them both on board and look forward to their contribution this year. But it is not just the Stockholm Network itself which is growing but also the wider influence of its affiliated think tanks. When 60 per cent of our network was surveyed in a recent poll, we discovered that we and our colleagues had published more than 8,000 high quality press articles, delivered more than 600 major publications and hosted more than 600 major events last year. As such, the Stockholm Network and its members’ work influence many millions of Europeans every year and we hope that 2006 will be better still. Helen Disney Director Stockholm Network
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A COLD DARK FUTURE? CONTINUED
The European Commission sees liberalisation of domestic electricity and gas markets as a key part of its Lisbon agenda to make Europe more competitive and eliminate the human cost of economic stagnation. Energy market reform was pioneered in Britain, which saw households paying several hundred pounds a year less than before privatisation. Competition among power generators in the UK led to wholesale prices falling nearly 40 percent.
As businesses and consumers struggle to adjust to high prices and political instability, the European Commission and many of the member states of the EU are drawing up national strategies for energy security so as to ensure the ready availability of reliable energy supplies at affordable prices.The G8 group of the world’s leading industrial nations will be holding a summit on energy security in July, hosted in St. Petersburg by President Putin. Ironically, Russia is perhaps the main cause of anxiety in Europe after a dispute over gas transit fees with the Ukraine saw supplies to Western Europe interrupted in December 2005. Russia has looked at Saudi Arabia and decided that it likes the model. Nobody criticises the Saudis – they are too important as a supplier,” the Financial Times quoted one Moscow banker as saying. Yet “the best way to secure energy security is to have a free market...that’s exactly the opposite of what is happening in Russia,” said Andrei Illarionov, Putin’s long-time economic advisor, who will speak at a Stockholm Network/Freedom Institute conference in late May (see page 12). Moscow has begun “using energy as a weapon against its political enemies” the economist indicated, pointing out that pro-Western governments in Moldova and Georgia have all also had their energy supplies cut in the past six months, as have even the pro-Moscow Belorussians of late. The terrorist attacks of 9/11 highlighted the continuing political risk that remains in the key
DEFUSING THE PENSIONS TIMEBOMB CONTINUED
As well as answering the questions above, the publication has three main aims: to provide a brief analysis of the existing pension systems in Europe, to examine the pensions crisis through the prism of internationally recognised research, and perhaps most interestingly, to propose a number of routes out of the pensions quagmire. Several authors point to the value of Notional Defined Contribution schemes, which are pay as you go schemes – with the crucial difference that there is a fixed contribution rate on individual earnings that are noted in an individual account. NDCs have played a critical role in Sweden but their true value lies in the fact that they are an excellent intermediary step toward fully funded pensions. Giuseppe Pennisi and Edward Palmer provide excellent insights into how NDCs could help defuse the time bomb. NDCs aside, other solutions, such as raising the retirement age, increasing taxes and stimulating SPRING 2006
producing countries of the Middle East, especially Saudi Arabia and Iraq.Terrorism also presents a major threat to energy infrastructure, with pipelines, storage facilities and tanker ships all being targeted by Al Qaeda. European governments echo EU energy commissioner Andris Piebalgs’ hope that reforms favouring free markets and liberal institutions will provide the right framework for investment and trade. Nevertheless, over three quarters of world oil remains in state hands rather than private companies. According to a recent OECD report, ‘it is unlikely that Russia’s private oil companies could have achieved the growth of the last few years if they had remained under state control.’ Rather than exploration being encouraged by a favourable regime, higher taxes are being levied, even in the UK’s declining North Sea fields.
savings are all discussed.The authors put forward differing opinions on how to solve the same problem. Liam Halligan, for example, argues for the introduction of compulsory contributions, paid from an early age, while Wilfried Prewo argues for an increase in weekly work time. Ian Vasquez extols the virtues of the fully funded pension system in Chile, and is optimistic that it can be applied elsewhere, but Kamil Kajetanowicz is less positive about the prospects of the marketoriented reform of Poland’s pension system. All authors would agree, no doubt, with Matthew Bishop that countries need to pursue strategies that maximise economic growth so that they will be better able to support a relatively larger block of pensioners. Without strong economic growth, financing any radical change in the pension system will be incredibly difficult.
Following a full-scale enquiry into the energy sector, competition commissioner Neelie Kroes has concluded that EU gas and electricity markets suffer from distortions, with excess concentration among state-owned or statefavoured incumbents, leading to higher prices for consumers and harming energy security. The Commission intends to take further action to prod national governments to meet their existing commitments towards opening markets. Energy consumers and the Commission alike view with alarm the outbreak of what French PM de Villepin has called “economic patriotism”, the shielding of domestic industry from takeovers by companies based elsewhere in the EU.Yet while few easy solutions present themselves, high oil prices, increasing concerns about reliability of energy imports and new regulations on emissions of carbon dioxide may reinvigorate the prospects for other energy technologies such as ‘clean coal’, wind power, carbon sequestration, biofuels and a new generation of nuclear power plants. Peter Nolan
pensions. It produces no short-term results, can be extremely costly (again, in the short term), and it is almost certain to cost popularity with a powerful voting block. In such a difficult policy environment, it is crucial that there exists valuable intellectual ammunition for those with the nerve to reform. There is no comprehensive solution to all countries’ pension woes.The intricacies of domestic politics, the complexities of pension reform and the huge potential for error make this impossible. However, there are clear indications as to the kind of reform that is needed and the authors in this book can identify at least one clear conclusion: the most effective way of defusing the pensions time bomb is to harness the power of market forces. Terry O’Dwyer
Yet it takes enormous courage for a government to embark on a course of serious reform. After all, governments have strong incentives to avoid tackling the issue of 3
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PROFILE: VERITAS (REYKJAVIK, ICELAND)
Think tanks are a rather new phenomenon in Iceland.While in the past a number of political groups have behaved in a manner similar to think tanks – producing articles and pamphlets – none have used the term ‘think tank’ to describe their form.There are now a total of three Icelandic free-market think tanks. Besides Veritas, which is rooted in conservative philosophy, two libertarian groups – RSE (www.rse.is) and Andríki (www.andriki.is.) – are also working on issues of market liberalisation.
Veritas’ primary aim is to promote conservative ideas and values in Iceland, not the least of which is further economic liberalisation. Its work strongly emphasises the necessity of additional tax cuts and a further reduction in state interference and centralisation, and, as a direct consequence, the power of politicians. Veritas also urges the Icelandic government to continue on the road towards concluding free-trade agreements with other countries, and thus contributing to the spread of prosperity throughout the world. Finally, their work stresses the importance of the family as the cornerstone of society.
Veritas was founded on December 1 2005 by three university students; Hjörtur J. Gu∂mundsson, Gísli Freyr Valdórsson, and Sindri Gu∂jónsson. Gu∂mundsson and Valdórsson are studying political history and political science respectively at the University of Iceland, while Gu∂jónsson reads law at the University of Akureyri.The founding date was chosen specifically because Iceland became a sovereign state on December 1st in 1918. It later became independent on June 17, 1944 with the founding of the Republic of Iceland. The founding of Veritas is a direct continuation of the establishment of a free-market conservative weblog – www.ihald.is in October 2004.This weblog was an early success and quickly became one of the most prominent political websites in Iceland, demonstrating the substantial demand in Iceland for a free-market conservative contribution to the political debate. Buoyed by the success of the weblog, the three editors of Ihald.is decided to expand their activity and found a think tank in order to further address this demand – thus Veritas was borne.
WHAT THEY BELIEVE These are very exciting times in Iceland.The centre-right government, which has been in power since 1995, has introduced radically liberalising economic reforms including the privatisation of state property, a significant lowering of taxes and substantial reductions in the regulatory burden. As a consequence, Iceland has seen considerable economic progress – driven by the rapid growth of the private sector – in recent years. 4
foundation. It has publicly issued a number of resolutions on various issues ranging from international free trade to government funding of independent organisations, and its members have written numerous articles for domestic newspapers, journals and weblogs, participated in media interviews and held both public and private meetings. Veritas has already published two research papers, both in Icelandic.The first, Iceland and Schengen: A step forward or membership of increased problems? by Hjörtur J. Gu∂mundsson, examines the consequences for Iceland of joining the EU’s ‘free movement of people’ area. The second, Are politicians and public officials dangerous to democracy? by Gísli Freyr Valdórsson, investigates one of the great paradoxes of power and democracy.
WHAT ARE THEIR PLANS Veritas will continue its development as a prominent and permanent influence on the political debate in Iceland. Although Icelandic public policy has largely been headed in the right direction in recent years, there is still much to be done, and the most pressing priority is to ensure this liberalising course is retained.Veritas aims to continue contributing to this trend, along with other like-minded organisations and individuals, both domestic and abroad.
www.veritas-iceland.com Veritas is also concerned with foreign, security and defence policy making.The think tank favours mutual cooperation between Iceland and other countries of the world, and especially supports strong ties and cooperation with the United States of America. It is strongly in favour of Iceland’s continued membership of the North Atlantic Treaty Organisation (NATO), but strongly oppose to the idea that Iceland should join the European Union.
WHAT THEY HAVE DONE Despite its relative youth,Veritas has been very active in the political debate in Iceland since its
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PROFILE: OPEN EUROPE (LONDON, UK)
and organisations across Europe in its research and activities, and disseminates its ideas widely across the EU and the rest of the world. Open Europe is the UK’s leading voice for reform of the EU and has a wide national and international supporter base. Open Europe’s campaigning experience and extensive relationships with politicians of all parties and journalists working in the broadcast and print media mean that it is also able to market its ideas to UK and EU opinion formers, and ensure that they have an impact. As well as hosting regular events and debates, Open Europe believes in helping young people understand the challenges faced by the EU, and regularly organises talks in schools.
OPEN EUROPE’S ACTIVITIES INCLUDE: www.openeurope.org.uk Open Europe is an independent think tank set up by some of the UK’s leading business people in October 2005 to contribute bold new thinking to the debate about the direction of the EU. WHAT THEY BELIEVE Set up by the people behind the successful ‘No’ campaigns against the Euro and the EU Constitution, Open Europe is committed to European cooperation but believes the EU has reached a critical moment in its development. “Ever closer union”, espoused by Jean Monnet and propelled forwards by successive generations of political and bureaucratic elites, has failed. Open Europe believes that the EU must now embrace radical reform based on economic liberalisation, a looser, more flexible structure and greater transparency and accountability, if it is to overcome these challenges and succeed in the twenty-first century.The best way forward for the EU is an urgent programme of radical change driven by a consensus between member states.
WHAT THEY DO In pursuit of this consensus, Open Europe involves like-minded individuals, political parties
SPRING 2006
Making the case for free trade. Europe’s economy is held back by high trade barriers against the rest of the world. Instead of getting ready to compete in the new global economy, the European Commission has caved in to pressure from protectionist member states, and uses high trade barriers to shut out competition from fast growing economies like China. Open Europe commissioned original research into the benefits of trade liberalisation for the EU and developing world, and found that bringing down Europe’s trade barriers would save a typical UK household of four around £1,500 a year.The research also found that opening up trade would benefit developing countries most of all – boosting African GDP by just under 6% and lifting millions out of poverty. Rolling back EU over-regulation. A study by Open Europe revealed that despite promises to reduce the burden of EU regulation, the cost of red tape on the economy is still growing. An intensive research programme revealed that 77% of the cost of regulation on business since 1998 had been caused by EU legislation. In total Open Europe found that EU regulations since 1998 alone have cost the UK economy £30 billion.
Year after year officials who try to blow the whistle on corrupt practices find that they are the ones who are investigated, rather than those who are guilty. Open Europe published a report revealing that even in Westminster, MPs’ attempts to scrutinise the torrent of EU legislation are blocked by the UK Government’s increasing use of the “scrutiny override” – which means the Government signs up to binding legislation without MPs ever having a chance to even look at it. Exposing EU waste. Despite the fact that the EU’s own accountants have refused to sign off its accounts for eleven years, the UK Government has agreed to pay even more money (over £12 billion a year) into a totally unreformed EU budget.The EU continues to squander half its budget on the failed Common Agricultural Policy, which raises food prices for people in Europe and damages the developing world – but hasn’t stopped farmers’ incomes falling by half. Exposing the failures of the European Social Model. Open Europe recently published a book of essays from leading thinkers around Europe looking at the failures and lessons of the European Social Model. Research by Open Europe found, for example, that income growth for the poorest people in so-called Anglo-Saxon economies like Ireland and the UK has been quicker than in high-tax, highly regulated economies such as Sweden.The book argued that the ‘social model’ is not working, and that the time has come for the EU and its member states to take a different approach. Open Europe plans to build on these initiatives in 2006, expanding its network of supporters, and continuing to make the case for radical reform at this critical time for the European Union.
Arguing for more democracy and transparency. Europe’s institutions still operate in a secretive and undemocratic way, with the EU refusing to publish records of its most important meetings. 5
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PROFILE: INSTITUTE FOR FREE ENTERPRISE (BERLIN, GERMANY) The Institute for Free Enterprise (IUF) is Germany’s leading free market think tank. Its major areas of focus are pension policy, healthcare, labour regulation, tax reform and fiscal policy.While German think tanks and research institutions depend almost entirely on state funding or government contracts, the IUF is funded only by private donations. It was founded in 1998 and is a registered charity located in Berlin. WHAT THEY BELIEVE
on the global economy, Polylux, Hart aber Fair and other national television programmes. The IUF has organised a number of seminars and conferences, such as the 2005 World Freedom Summit together with the International Society for International Individual Liberty (ISIL). It has also jointly published, with the Liberales Institut of Switzerland, The Welfare State Destroys Welfare and the State. In addition, the IUF’s Centre for Liberal Studies has published The Ideals of Tyranny, The Ideals of Liberty, What the Greens Really Want, and Chernobyl’s Real Disaster. The Centre is also making numerous lectures on economics and public policy available on DVD.
IUF’s vision is a free Europe where economic policy follows the principles of classical liberalism; where the level of wealth creation is high and freedom of contract is the basis of all economic transactions.The pension and health systems are run privately and European societies are part of the fight for small government. Public welfare plays no significant role, neither in the budget, nor in the lives of the people. At present no political party, politician, or organisation in Germany today offers popular long term solutions to the economic problems besetting the nation. Established public policy groups and academia are failing Germany just when it needs them the most. And as long as financial reserves exist to prolong the generosity of the current welfare system, postponing reform will remain the strategy of choice. The answer to the current dilemma is the rediscovery of Germany’s liberal roots and the economic history of the post-WWII economic miracle.Thus, the outlook for Europe and Germany is positive, but only if it is viewed through the filter of real economic and social reform.
WHAT THEY HAVE DONE The IUF regularly appears in the German print media, with Sascha Tamm writing regular columns for the Frankfurter Allgemeine Zeitung, Handelsblatt and other prominent newspapers. Oliver Knipping has also published articles on transportation economics for the Institute for Economic Affairs and appeared on TV programmes such as the Night Café talk-show
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Funds permitting, IUF plans for 2006-7 include Two single-issue conferences dealing with the reform of the German health and pension systems respectively. The publication of three research papers on healthcare and pensions. Publication of a German edition of European Dawn by Johnny Munkhammar. The creation of a multilingual on-line course, The Miracle of Markets, to introduce viewers to basic economics. The Institute will generate most of its material in both German and English. Almost 100 million Europeans speak German while English is the most widely studied second-language in Europe. The IUF will also divide its work into two strands; while it will focus on policy areas in need of immediate reform, the Centre for Liberal Studies (CLS), an internal department, will look at long term solutions to the underlying issues.Thus while the IUF works with current policy makers and academics, the CLS will work with students who are the policy makers and academics of tomorrow. The IUF is also currently developing a monthly publication, New Liberal Review, which will publish articles in both English and German. Similarly, the CLS will be producing a regular email newsletter for students informing them of conferences, internships, scholarships and opportunities that may help them further their academic careers.
www.ife-berlin.org/en/index.php
FORTHCOMING ACTIVITIES The IUF will hold an annual Reform Summit for Germany, on May 2, focussing on the IUF’s core public policy agenda.The issues of taxation, labour law, pensions and healthcare are widely understood to be crucial to Germany’s future economic performance.This summit will bring German policy makers, academics and journalists together with experts from around the world to discuss the need for reform, the process of reform, and which reforms have been successfully tried in various nations. The compiled lectures of the Reform Summit will be published in German and English.
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PROFILE: INSTITUCIÓN FUTURO (NAVARRA, SPAIN) the competitiveness of the region, its healthcare system, the evolution of its public sector and the future prospects of Navarra.The research is conducted by in-house economists and sociologists, though the Institución also has a network of external researchers with whom they collaborate on a regular basis. All the work is dissipated through books and periodicals, conferences and seminars, and regular media appearances – including a semi-monthly opinion article in Expansión, the main Spanish economic newspaper.The website, recently redesigned, releases updated information about the activities of the Institución and keeps records of all publications.
WHAT THEY HAVE DONE
www.institucionfuturo.org Institución Futuro was founded in September 2001 to design and promote a better socio-economic future for Navarra.This independent think tank analyses public policies and launches innovative proposals through research, publications and educational activities.The institution’s members come from the business and professional communities and are independent from the political establishment.The Institución Futuro is a non-profit organisation. WHAT THEY DO The Institución plays a pioneering role in Navarra.The nature and activities of a think tank are not well known in Spain, and especially in this region. Not only are citizens unaware of the phenomenon, but political, economic and social leaders are equally in the dark.The Institución therefore undertakes a pedagogic function: besides promoting its own ideas and activities, it educates people on the nature and functions of an independent think tank. Research at the Institución focuses on the following areas: the public image of Navarra, SPRING 2006
Since its foundation, the Institución Futuro has published several books. Some of the most recent ones include a prospective study of Spain in 2020, a review of immigrants’ entrepreneurship in Navarra, and a study of the social values and public image of the region. It has also published policy briefings where it recommends the implementation of new policies on topics such as the Public Budget or fiscal incentives for R&D. Equally, it has organised seminars on the drug marketplace in Spain, the economic perspectives of the last EU enlargement and the sustainability and competitiveness of the region. Other activities include public appearances and speeches delivered about topics such as the unity of Spain, Spanish foreign relations, the state of the economy, the automotive industry or the future of the European Union.
FORTHCOMING PLANS AND PUBLICATIONS In 2006, the Institución Futuro is planning to issue several books about the competitiveness of Navarra in Europe, the impact of the Budget of the European Union on the region, the integration of immigrants in Navarra, fiscal incentives to increase competitiveness and public opinion about its health care system. It will continue the publication of the weekly newsletter Opinion Review, focused on the international media, and the quarterly newsletter Tendencias de Futuro, which gives coverage to studies and opinions of think tanks all over the world. A range of activities is also planned.The Institución Futuro will host lectures with experts, academics, businessmen and political leaders. In addition, it will host two seminars. The first one will focus on the competitiveness of Navarra and in the other, several experts will discuss the public image of the region. As one of the first truly independent think tanks in Spain, the Institución Futuro faces a unique and difficult task: as well as attempting to influence the political landscape and stimulate debate, it must educate the public and the political establishment on the meaning and value of think tanks.
WHAT THEY BELIEVE The Institución Futuro believes in the active role that civil society should play in the development of public affairs.The think tank agrees with the principles of advanced democracies: the defence of individual freedom and civil rights; and of the market economy and the proper balance between the power of the state and the initiative of individual citizens. The Institución Futuro believes in Western culture and values and they share the idea of a common territory for all Spaniards, although it also agrees with the autonomy of the Spanish regions.The Institución supports the European Union and is optimistic about globalisation.
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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 120 market-oriented 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.
Policy Issues
Who funds the Stockholm Network?
The Network is a forum for sharing, exchanging and developing pan-European research and best practice. Interested in ideas which stimulate economic growth and help people to help themselves, we promote and raise awareness of policies which create the social and economic conditions for a free society.These include:
The Network is funded by a wide range of individuals, corporations and foundations. A mixture of for-profit and not-for-profit organisations, some SN supporters are global enterprises, while others are small or medium in size. Subscriptions from individuals, commercial enterprises, and a range of NGOs including other think tanks make up the bulk of our funding.
Reforming European welfare states and creating a more flexible labour market. Updating European pension systems to empower individuals. Ensuring more consumer-driven healthcare, through reform of European health systems and markets. Encouraging an informed debate on intellectual property rights as an incentive to innovate and develop new knowledge in the future, whilst ensuring wide public access to such products in the present. Reforming European energy markets to ensure the most beneficial balance between economic growth and environmental quality. Emphasising the benefits of globalisation, trade and competition and creating an understanding of free market ideas and institutions
What do we do We conduct pan-European research on, and create a wider audience for, market-oriented policy ideas in Europe. Our website contains a comprehensive directory of European free market think tanks and thinkers. We advertise forthcoming events (our own and those of partner organisations) and facilitate publication exchange and translation between think tanks. We also post regular news flashes and updates on European think tanks and their activities.
“We face a broad range of economic challenges over the next decade. Learning from the experiences of market-based reform elsewhere in Europe and the world can help us set the best course for Britain.The Stockholm Network is an invaluable resource in facing that challenge.” Matthew Hancock, Economic Advisor to Shadow Chancellor George Osborne MP
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When was the Stockholm Network founded? The Stockholm Network was founded in 1997 by Helen Disney, a British journalist and policy specialist.The spread of market-oriented think tanks and independent policy research institutes across Europe from the mid-1990s onwards, created a niche for a network hub, capable of providing a bird’s eye view of the policy environment.The network’s early aims, which have continued to the present day, were to find an efficient method of connecting like-minded policymakers and thinkers; to encourage collaboration on joint research projects in order to share the most successful policy innovations and arguments more widely; and to ensure a wider audience and a more co-ordinated approach to the dissemination of market-oriented ideas within Europe and beyond its borders.
We also derive a small income from the sale of our publications and research materials to the public, bookshops, government agencies and private companies. Corporate subscribers come from a wide range of sectors that currently include information technology, energy, pharmaceuticals, healthcare, public affairs and venture capitalism. Subscribers do not have a veto over the outcome of Stockholm Network research or any influence over its media output.
Why should I support the Stockholm Network and its work? The Stockholm Network is in the business of creating in Europe an intellectual climate in which human prosperity and your organisation can thrive. We strive to maintain the best knowledge of European market-oriented think tanks, ideas and thinkers, directing you swiftly to the expert or organisation you need. We already have a proven track record in influencing the policy debate and our network and influence is growing all the time.
How could you or your organisation benefit from SN membership? Expand your database by meeting new contacts from across Europe Receive weekly Stockholm Network email updates and quarterly newsletters Receive Stockholm Network Books and Publications Get invitations to Stockholm Network Events and Activities
Would you like to join the Stockholm Network? Please contact us on +44 20 7354 8888 or email our Assistant Director Sacha Kumaria at sacha@stockholm-network.org
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MEET THE TEAM
HELEN DISNEY is Director of the Stockholm Network. Her background is in public policy and the media. Formerly an editorial writer for The Times and an editorial writer and commentator for the Daily Express, Helen continues to write regularly on a range of public policy topics for such publications as the Daily Express and Sunday Express, Public Finance, Public Service Magazine, and The Sprout, a satirical Brussels-based magazine, as well as regular weekly entries for the Centre for the New Europe’s health weblog, CNE Health. Helen has been the Director of the Stockholm Network since 1997, and is a founding member of the organisation. DR TIM EVANS is the Stockholm Network’s Director of Development. He works across the spectrum of policy issues to ensure that the Stockholm Network continues to promote its work and develop support across a range of constituencies and interests. A former President and Director General of the Centre for the New Europe (2002-2005), between 1993 and early 2002 Dr Evans was the Executive Director of Public Affairs at the Independent Healthcare Association in London where he oversaw the political affairs and public relations of one of the UK’s independent health and social care sector. He also served as chief economic and political advisor to the Slovak Prime Minister, Dr. Jan Carnogursky, between 1991-92. ANNE KRISTINE JENSEN is the Stockholm Network’s Project Manager for Trade, I.P. and Competition. She joined the Network in October 2004 following a period as an intern. She is responsible for organising events and frequently contributes to and edits Stockholm Network publications. SPRING 2006
SACHA KUMARIA is the Stockholm Network's Assistant Director and Manager of its Energy and Environment Programme. He is responsible for liaising with member think tanks, co-ordinating research projects and events and contributing to and editing Stockholm Network newsletters and publications.
KATIE PERRIOR is the Media Director of the Stockholm Network. She joined us in July 2005 to help promote our work in the British, European and International media. She is the co-founder and director of The Research Shop, an independent media agency which specialises in out-sourced, ad-hoc media research.
SIMON MOORE joined The Stockholm Network in early 2006 following the completion of a successful internship period. In addition to administrative work and website maintenance, Simon is currently working on Beyond the Borders, a companion piece to The Stockholm Network’s State of the Union publication, focussing this time on market-oriented reform in non-EU member states in Europe.
Katie acted as a media consultant to the award winning television programme,‘Who Wants To Be A Millionaire?’, and has worked for several politicians, notably the Conservative Party Chairman and the Shadow Home Secretary during high profile campaigns. Most recently, she has also worked for ITV and Channel 4 News, and is a local councillor, and Conservative Spokesman for Community Safety, for the London borough of Bexley.
PETER NOLAN is the Director of the Environment and Energy Programme. He is a graduate of Trinity College Dublin, City University in London and Birkbeck College, University of London with degrees in economics, mathematical finance and political science.While studying, he also worked as a researcher for what was then the main Irish opposition party. Peter is also a director of the Freedom Institute, an Irish free-market think-think and writes regularly for the press in Ireland, the UK, Europe and the Middle East. Previously an investment banker specialising in emerging markets, he is director of development for an international financial information and analytics company.
DR MEIR PUGATCH heads the intellectual property and competition programme at the Stockholm Network and edits its monthly e-newsletter, Know IP. He is based at the School of Public Health, University of Haifa in Israel, where he is a lecturer on intellectual property policy, management and the exploitation of knowledge assets and entrepreneurship. Dr Pugatch is also a guest lecturer at the Department of International Relations, Hebrew University Jerusalem, where he lectures on the international political economy of trade policy.
TERENCE O’DWYER is manager of the Stockholm Network’s Health and Welfare Programme. He is also responsible for coordinating the Amigo Society meetings, liaising with our Spanish and Portuguese think-tank members and managing the Stockholm Network website.Terry joined the Stockholm Network in July 2004. 9
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The Stockholm Network is the leading pan-European think tank and market-oriented network. Spanning almost 40 countries and over 120 think tanks, our unique organisation has the capacity to deliver local messages and locally-tailored global messages across the EU and beyond.
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Through our publications, weekly newsletter, and special events, members are able to exchange ideas and make an impact on a wide range of public policy topics and ideas. If you know of a new organisation you think would benefit from Stockholm Network membership, please contact our office at info@stockholm-network.org and let us know.
“The Stockholm Network has proved a great help by making it easier for me to get in touch with interesting organisations and individuals across Europe�. Allister Heath, Associate Editor,The Spectator, and Deputy Editor, The Business
ISSUE EIGHT
WWW.STOCKHOLM-NETWORK.ORG
1 Adam Smith Institute 2 3 4 5 6 7 8 9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29 30 31 32 33
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.liberalb.org Albania Anders Chydenius Foundation www.chydenius.net/eng/index.asp 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/cze/index.php Czech Republic Centre for Entrepreneurship and Economic Development www.visit-ceed.org Montenegro 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/indexang.html 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 the New Europe www.cne.org/index.htm 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 CEPOS www.cepos.dk Denmark Cercles Liberaux www.cerclesliberaux.com/ France CIDAS www.cidas.it/ Italy Civic Institute www.obcinst.cz/ Czech Republic Civita www.civita.no/civ.php?mod=content&id=6 Norway Civitas www.civitas.org.uk United Kingdom
SPRING 2006
34 Conservative Institute of M. R. Stefanik 35 36 37 38
39 40 41 42 43 44 45 46 47 48 49 50 51 52
53 54 55 56 57 58 59 60 61
62 63 64 65 66
www.institute.sk Slovakia Council on Public Policy www.council.uni-bayreuth.de/ Germany E.G.West Centre UK www.ncl.ac.uk/egwest/ United Kingdom Economic Policy Research Institute www.epri-macedonia.org/ Macedonia Ekome (Society for Social and Economic Studies) www.ekome.gr/English/default.asp Greece Eudoxa www.eudoxa.se/ Sweden Euro 92 www.euro92.com/new/europe.php3 France European Ideas Network www.epp-ed.org/europeanideasnetwork/ Belgium European Independent Institute www.european-independent.org The Netherlands EVA www.eva.fi/eng/index.php Finland F. A. Hayek Institute www.hayek-institut.at Austria FAES www.fundacionfaes.org Spain Fondation pour l’innovation politique www.fondapol.org France Foundation for Market Economy www.fme.hu/ Hungary Frédéric Bastiat Stichting www.bastiatstichting.nl/ The Netherlands FREE (Forum Rozwoju Edukacji Ekonomicznej) www.free.org.pl/ Poland Free Market Centre www.fmc.org.yu/ Serbia Freedom Institute www.freedominst.org Ireland Friedrich Naumann Stiftung www.fnst.de/webcom/show_article.php/_c449/i.html Germany Friedrich von Hayek Gelsellschaft www.hayek.de/ Germany Fundacio Catalunya Oberta www.catalunyaoberta.net Spain Gdansk Institute for Market Economics www.ibngr.edu.pl/english/index2.htm Poland Hayek Foundation www.hayek.ru/ Russia Health Consumer Powerhouse www.healthpowerhouse.com Belgium Health Policy Institute www.hpi.sk Slovakia Health Reform.cz www.healthreform.cz Czech Republic Hellenic Leadership Institute www.hli.gr/ Greece iFRAP (French Institute for Research into Public Administration) www.ifrap.org/ France INEKO www.ineko.sk/english/ Slovakia Institución Futuro www.institucionfuturo.org Spain Institut Constant de Rebecque www.institutconstant.ch Switzerland Institut Economique Molinari www.institutmolinari.org/ Belgium Institut Hayek www.fahayek.org/ Belgium
67 Institut Montaigne 68 69 70 71 72 73 74
75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99
www.institutmontaigne.org/ France Institut Turgot www.turgot.org France Institute for Economic Studies Europe www.ies-europe.org France Institute for Free Enterprise www.unternehmerische-freiheit.de/ Germany Institute for Free Society www.isloboda.sk Slovakia Institute for Market Economics www.ime-bg.org/ Bulgaria Institute for Strategic Studies and Prognosis www.isspm.org/ Montenegro Institute for Transistional Democracy and International Security www.itdis.org Hungary Institute of Economic Affairs www.iea.org.uk United Kingdom Institute of Economic and Social Studies www.iness.sk Slovakia Instituto Juan de Mariana www.juandemariana.org Spain Instytut Globalizacji www.globalizacja.org Poland Instytut Liberalno-Konserwatywny www.ilk.lublin.pl/ Poland International Policy Network www.policynetwork.net/ United Kingdom Istituto Acton www.acton.org/ital Italy Istituto Bruno Leoni www.brunoleoni.it Italy Jerusalem Instiute for Market Studies www.jims-israel.org Israel Konrad Adenauer Foundation www.kas.de/ Germany Liberales Institut eng.libinst.ch Switzerland Liberalni Institute www.libinst.cz/english/ Czech Republic Libertarian Alliance www.libertarian.co.uk/ United Kingdom Libertas www.libertas.dk/ Denmark Liberty Ideas www.liberalismus.at Austria Liberty Net www.libertynet.gr/ Greece Lithuanian Free Market Institute www.freema.org/ Lithuania Ludwig von Mises Institute Europe www.vonmisesinstitute-europe.org Belgium Ludwig von Mises Institute Romania www.misesromania.org Romania M.E.S.A. 10 www.mesa10.sk Slovakia Magna Carta Foundation www.magna-carta.it Italy New Economic School www.economics.ge/ Georgia New Social Market Economy Foundation www.insm.de/index.jsp Germany Nova Civitas www.novacivitas.org/ Belgium Nova Res Publica www.novarespublica.org/ Italy
100 Open Europe www.openeurope.org.uk United Kingdom
101 Open Republic Institute 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121
www.openrepublic.org/ Ireland Poder Limitado www.poderlimitado.org/ Spain Policy Exchange www.policyexchange.org.uk/ United Kingdom Politeia www.politeia.co.uk/ United Kingdom Project Empowerment www.project-empowerment.org United Kingdom Ratio Institute www.ratioinstitutet.nu/ Sweden Reform www.reform.co.uk United Kingdom Riinvest Institute for Development Research www.riinvestinstitute.org Kosovo Romania Think Tank www.thinktankromania.ro/ Romania Sauvegarde Retraites www.sauvegarde-retraites.org/ France Social Affairs Unit www.socialaffairsunit.org.uk/ United Kingdom Stiftung Marktwirtschaft www.stiftung-marktwirtschaft.de/ Germany Taxpayers’ Alliance www.taxpayersalliance.com United Kingdom The Copenhagen Institute www.coin.dk Denmark The F.A. Hayek Foundation www.hayek.sk/ Slovakia The Globalisation Institute www.globalisationinstitute.org United Kingdom Thomas More Institute www.institut-thomas-more.org Belgium Timbro www.timbro.se/ Sweden Venezie Institute www.venezie.org Italy Veritas www.veritas-iceland.com Iceland Walter Eucken Institut www.eucken.de/en/index.htm Germany
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EYE ON EUROPE
EVENTS AND PUBLICATIONS
WESTMINSTER FRINGE DEBATES
VENUE: One Great George Street, London SW1 PREVIOUS DEBATES: 9th February 2006 If Britain wants decent and efficient public services, it should hand them over to the private sector 23rd March 2006 Free trade is the way to make the poor world richer 25th April 2006 Putin’s energy policies are a disaster for Europe and Russia UPCOMING DEBATES: On June 8th, the Stockholm Network and The Economist will be hosting a debate with the motion Blair’s legacy is one of fulfillment, not failure. Details will shortly be confirmed and will be available at www.stockholm-network.org/conferences/ events/upcoming.php
‘A Cold, Dark Future? Economic, political and security challenges to Europe’s energy future’ A Stockholm Network / Freedom Institute Conference
High prices at home and political instability abroad have left businesses and consumers uncertain about the future security of Europe’s energy.The European Commission and many EU member states are drawing up national energy strategies to ensure the ready availability of reliable supplies at affordable prices. Market liberalisation, bolstered infrastructure security, technological innovation and political reform overseas are all key components of these strategies. But these uncertain times have also seen a resurgence of the countervailing forces of protectionism, monopolisation and realpolitik. This conference will examine the obstacles and opportunities posed by the continent’s current energy crisis. Confirmed speakers include; Albert Bressand, former head of Shell’s Scenario Planning Department Paul Domjan, Director, JH&Co.; former Energy Advisor, United States European Command Peter Nolan, Director, Energy & Environment Programme,The Stockholm Network Carola Hoyos, Energy Correspondent, Financial Times Andrei Illarionov, former Economic Advisor to Russian President Vladimir Putin For more information on attendance, please contact sacha@stockholm-network.org
Beyond the Borders An accompaniment to The Stockholm Network’s earlier pamphlet, The State of the Union, a new title Beyond the Borders investigates the progress of market-oriented reform in those European countries outside of the EU. From Scandinavian welfare states to economies still emerging from communism’s shadow, this diverse group of nations highlight many of the challenges and changes facing European economies today. Alongside The State of the Union, Beyond the Borders completes the most comprehensive analysis of the continent’s reform movement.
Defusing the Pensions Timebomb Europe’s population is ageing rapidly, and time is running out to enact reform.This series of essays offers guidance as to the kind of reform that is needed, and offers a clear lesson: undeniably the most effective way of defusing the pensions time bomb is to harness the power of market forces.
If you would like to order a Stockholm Network publication, please send a cheque made payable to ‘Stockholm Network’ to the address below. Please also include £2 postage in Europe, £3 postage Rest of the World. Return Address: Stockholm Network 35 Britannia Row, London N1 8QH United Kingdom www.stockholm-network.org anne@stockholm-network.org
THE STOCKHOLM NETWORK 35 Britannia Row, London N1 8QH United Kingdom Tel: (44) 207-354-8888 Fax: (44) 207-359-8888 E-mail: info@stockholm-network.org Website: www.stockholm-network.org
A Sick Business £10 Apology for Capitalism £10 Beyond the Borders £10 Defusing the Pensions Timebomb £10
Does the West Know Best? £8 Intellectual Property Frontiers £5 Impatient for Change £12 Poles Apart £10