Showing papers in "Baltic Journal of European Studies in 2020"

State aid rules and public financing of infrastructure. The case of Autostrada Wielkopolska S.A.

Abstract: The operation of a toll road typically involves an economic activity for which State aid rules apply. However, if the construction and operation of the road infrastructure is bundled and they are tendered out together, they usually fall outside the State aid regime. The reason for it lies in the fact that the use of competitive procurement procedures aim to increase the efficiency of public expenditure and to ensure a level playing field for private operators to compete for public contracts. Nevertheless, based on the European Commission’s decisional practice, it transpires that an economic advantage for a concession holder cannot be ruled out automatically, in particular when there are amendments made to the original agreement. On the example of the Autostrada Wielkopolska S.A. case, critical State aid issues are discussed, among others, the application of State aid rules to public financing of infrastructure, the amendments made to a concession contract in the light of the risk assignment problem, as well as the existence of State aid in the form of overcompensation for a concession holder. The considerations are carried out on the canvas of a concrete case; however, they are enriched by the analysis of relevant legal provisions as well as conclusions from the EU courts and the European Commission decisions made in similar cases.

The Right to Be Forgotten in the European Perspective

Abstract: The article focuses on the right to be forgotten, which is at the center of changes in the concept of human rights in the digital age. The origins of the right to be forgotten in European legal doctrine and judicial practice, as well as its relationship with autonomy and identity, are analyzed. The article also examines the significance of the new understanding of “time” and “data” for the adoption of this right, considering the influence of two key cases of the Court of Justice of the European Union, such as Google v. Spain [2014] and Google v. CNIL [2019] on the concept of the right to be forgotten. The place of this right, its connection with privacy and European data protection law is debated. The article focuses on jurisdictional issues, paying particular attention to both the right to be forgotten and the understanding of the relationship between privacy a nd freedom of expression in the European Union and the United States, and possible jurisdictional disputes around the world. The article also addresses the issue of balancing rights and legitimate interests, as well as the proportionality for applying the right to be forgotten, both in the European and global contexts.

Understanding the Nordic Gender Diversity Paradox

Abstract: Norway and Iceland consistently top global gender equality rankings and pioneer the introduction of various measures for increased gender diversity. Still, actual gender diversity in top- level positions is lacking. This article seeks to better understand the contradiction between gender equality as a value and the actual lack of gender diversity and presents a conceptual model built of existing literature, which draws on potential differences between values held at the societal level and the individual level, and subsequent consequences for attitudes to diversity and diversity- impacting behaviors. Conceptual propositions are set forth that can be developed into a testable hypothesis.

Foreign Direct Investment, Production Factors Productivity and Income Inequalities in Selected CEE Countries

Abstract: The issue of global economic inequality has inspired researchers to explore the potential connection between income inequalities and foreign direct investment (FDI), as it is one of the driving forces of globalization. Although there is a large body of theoretical as well as empirical studies linking these variables, the empirical literature on the relationship between FDI, production factors productivity and income inequalities is not conclusive because most scientists treat FDI as uniform. Therefore there is a lack of reliable empirical evidence on the distributional effects of FDI, especially in emerging countries, such as in Central and Eastern Europe (CEE). The research presented in the article fills this gap.

The Impact of FDI on Economic Development: The Case of Georgia

Abstract: From the strategic point of view, not all foreign direct investments (FDI) are always positively benefiting the host economy, i.e. not all multinational enterprises (MnEs) are promoting local host economies. Even more, not all FDIs are equally beneficial to different sectors within the same economy. The fact is that fdi can impact different sectors in various ways, and the impact is not only based on the amount of fdi itself but on MnEs’ motivations and the peculiarities of the host economy, which can differ from country to county. in other words, only fdi numbers aggregated per year are not really giving a comprehensive picture of the situation and in many cases lead to incorrect strategic decisions, as it has happened in many countries, including Georgia.

Integration Perspectives of Eurasian Land-Based Transport Corridors: Empirical Evidence from the OBOR and Rail Baltica Initiatives

Abstract: Land-based Trans-Eurasian transport corridors, their current development and perspectives have been high on the political agenda in the last two decades not only in Europe and China but also in the transit countries such as russia, Belarus and Kazakhstan. A number of conceptual initiatives are already being implemented. The Belt and road or the one Belt, one road (oBor) initiative on the Chinese side and the rail Baltica project from the European perspective have gained special attention. Big-scale infrastructural projects are also being implemented by transit countries, e.g., the construction of a motorway from China to Europe—from Kazakhstan via russia to Belarus—to facilitate the land-based shortcut for cargo transport within the Eurasian transport corridor. This article investigates the general framework conditions of infrastructural investments into projects related to Eurasian logistics and discusses strategic areas of intersection between the European activities and the new Silk Way. in the framework of the oBor initiative, this article also addresses the interaction of the Chinese–Kazakh–russian–Belarusian –polish railway transport, with a special focus on Belarusian–polish cross-border issues. The authors have participated in several projects focusing on transport corridors and discuss the research question of how different Eurasian land-based transport corridors can be integrated and which strategic role can the rail Baltica project play in the context of the new Silk route. The research is based on surveys, expert interviews, secondary data research and case studies.

Have the Baltic Countries Run out of Labour Reserves

Abstract: The aim of the article is to study both the magnitude and structure of internal labour reserves in the Baltic countries as well as to discuss potential policy measures that might help to activate these reserves despite the record-high employment rates recently posted by Estonia, Latvia and Lithuania, considerable internal labour reserves can still be found in some population groups Among upper-middle-aged men, low employment might reflect a low incidence of lifelong learning, inadequate digital skills and rapidly deteriorating health condition Low employment of youth mirrors the low prevalence of apprenticeships in Lithuania and Latvia, there is also a postponed entry of young women into the labour market These internal labour reserves total more than 25,000 people in Estonia, 55,000 in Latvia and 85,000 in Lithuania, corresponding to 4-7% of the total employment The recent outbreak of the Covid-19 pandemic may somewhat increase and change the structure of these labour reserves © 2020 Olegs Krasnopjorovs, published by Sciendo

The Origins of Supranational State Aid Legislations: What Policymakers Must Know and Adhere to. The Case of Estonia

Abstract: As an independent country, Estonia can decide on how to promote its economy through state intervention, at least in theory. At the same time, Estonia has been a WTO member since 1999 and an EU Member State since 2004 and must adhere to these rules. Both regimes limit a Member State’s ability to interfere in the economy, setting forth rules on when a state can interfere with consequences if the rules are not met. But these rules differ, and the same situation can have a different result depending on the rules applied. Also, both sets of rules limit the competence of a member country to interfere in economy differently, for example, the WTO applies a rather lenient ex post control while in the EU a strict ex ante control by the Commission is used. Also the consequences for failing to adhere are different. Although one of the smallest EU Member States and represented by the Commission in WTO roundtables, it is still relevant for Estonia to have a position on globally applied state interference measures, and present and protect its views, if needed. To successfully promote its economy nationally and in the EU, Estonian policymakers, like those of any other country in the same position, must know not only the applicable state interference rules but also the underlying principles thereof. The article will provide a historical overview of the framework of the supranational state aid regimes of the WTO and the EU, as well as the domestic rules of Estonia. It is aimed at reflecting the principles behind the state aid rules that the domestic policymakers must consider when designing national state interference measures. The author applies classical research methods, namely, reading and interpretation of texts, but also comparing the WTO, EU and Estonian laws on state subsidies.

Expulsion of a Shareholder from a Limited Liability Company on Substantial Grounds

Abstract: The present article is devoted to the research on the admissibility of expulsion of a partner from a limited liability company (LLC) based on the ground that is not envisaged in the charter, and on respective dogmatic normative grounds in Georgian law. The importance of research in legal studies and judge-made law1 is revealed in the fact that the situation in which the action of a partner is directed against the interests of the company and becomes an obstacle for the achievement of a common goal, and it becomes impossible to retain the partner remains outside of Georgian normative reality. The aim of the research requires an analysis of German law, assimilated in the context of the Georgian solution, as well as the description of civil legal grounds for exclusion and prerequisites for admissibility, a study of the legal nature of the society and dogmatic support to the application of the civil law regime for the termination of long-term contractual relations. The suggested Georgian solution in this matter shares the spirit of German law policy; however, it is outstanding in its individuality.

Brokers in biotechnology and software networks in EU research projects

Abstract: Researchers have acknowledged that the flow of knowledge is influenced by the non-structural and structural features of networks. This paper aims to further develop an understanding of the institutional and structural features of knowledge networks by relating the brokerage roles of actors to the types and locations of organisations in biotechnology and software networks. The study is set within the context of the European Union (EU) research and innovation policy. It is designed as a social network analysis of EU research projects in biotechnology and software that took place between 1995 and 2016, wherein organisations from the Baltic States participated. The results of the study revealed that higher education and research organisations and public bodies acted as the main knowledge brokers and brokered more frequently across different regions in biotechnology networks. In software, it was the universities and research organisations that fulfilled this role. Thus, this study contributes to an understanding about the institutional and structural aspects of knowledge networks by focusing on brokers and their brokerage roles and relating these factors to specific organisation types and the locations of actors within the two sectors. It also adds the empirical context of the Baltic States in the areas of biotechnology and software collaborative research projects to the studies of knowledge networks, and offers practical suggestions for implementing collaborative research projects.

Election Campaigning: The Case of Georgia

Abstract: Preparing for elections during election campaigning has been topical in every era. In the 19th century, new methods for carrying out election campaigns were developed in the United States. The Americanization of election campaigns is characterized by political personalization, the special role of the media in a pre-election period, brittle ideological grounds and particular specialization of the political campaign. A plethora of different concepts have been coined to explain this process, including ‘Americanization’ and ‘professionalization’. As the uS is identified as the origin of election campaigning trends, these assumed convergences came to be known in academic writing as ‘Americanization’. Election campaigning was in need of professionals hired to navigate the campaign’s strategy. With the emergence of campaign advisors, the term ‘professionalization’ was introduced.

“Conditioned” Quality Assurance of Higher Education in Georgia: Talking the EU Talk

Abstract: The article discusses the latest wave of the higher education quality assurance (QA) reform, implemented by the Government of Georgia in response to its obligations envisaged by the EU–Georgia Association Agreement and its consequent Association Agenda 2017–2020. We argue that Eu conditionality was a major driving factor for the modernization of Georgian QA system according to the European Standards and Guidelines for Quality Assurance (ESG 2015), and even though the reform was mostly implemented in the framework of the country’s EU integration, an expected reward in the form of the membership of the European Association for Quality Assurance in Higher Education (ENQA) granted to the national Center for Educational Quality Enhancement (NCEQE) of Georgia was the major driving force for implementing the reform successfully. While this reward-driven reform has resulted in the ENQA membership, it has not inevitably led to building a sustainable, independent and development-oriented external quality assurance system for the enhancement of Georgian higher education. Therefore, the entire QA reform was merely aimed at “talking the EU talk” (Schimmelfennig & Sedelmeier, 2005, p. 27) by the Georgian government instead of actually being focused on the development of internal “quality culture” in Georgian higher education institutions.

Cryptocurrencies: Some Remarks from the Perspective of Polish Employment and Tax Law

Abstract: In view of the fact that technological progress is in a constant state of change, current research efforts are directed towards blockchain technology and cryptocurrencies. Starting with the description of the way blockchain technology operates, the notions of decentralisation, proof-of-work consensus, and practical immutability are explained. Further, the article examines the possibility of using cryptocurrency in order to pay remuneration, realise partial non-cash payment of remuneration or grant an award to an employee. This article presents evidence that demonstrates that remuneration in the framework of the employment relationship in Poland cannot be paid in cryptocurrency, which contributes to the performance of the protective function of labour law. The article concludes that a collective labour agreement could include a clause allowing the employer to realise partial non-cash payment of remuneration in cryptocurrency. Similar provisions could be introduced in labour law, but the Polish legislator has never adopted such a measure. The authors highlight, however, that an award can be paid in cryptocurrency even in the full amount. Next, the authors research the new tax regulations in force in Poland since 1 January 2019 and explain why it is conceptually more convincing to classify revenues from cryptocurrency trading as revenues from money capital and revenues from capital gains than as property rights. The article presents a definition of the disposal for valuable consideration of a virtual currency. The purpose of this article is also to study how high is the income tax on income earned from the disposal for valuable consideration of virtual currencies. Moreover, an overview of the legislation related to tax-deductible expenses is provided. Finally, some reflections on the cryptocurrency trading in the context of the pursuit of an economic activity are given. The review especially highlights the Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, and the judgment of the CJEU of 22 October 2015 (Skatteverket v. David Hedqvist [2015], case C-264/14), which has impacted the approach to the VAT problem in Poland.

Recent Evolution of Intellectual Property Enforcement in Georgia

Abstract: The article elaborates on the topic of the new wave of evolution of the protection of intellectual property in Georgia inspired by signing the Eu–Georgia Association Agreement, (AA—the Association Agreement between Georgia and the Eu and the nuclear Energy Association of Europe and its Member States). The harmonization process is an impressive field of law on its own. The article deals only with particular issues, such as the role and critical characteristics of the harmonization of intellectual property protection and enforcement mechanisms in Georgia.

Transforming Georgia’s regulations on Shareholders’ right to interim dividend Confronting the European Company Law

Abstract: The article provides a critical legal analysis of Georgia’s regulations on the interim dividend payment and highlights the necessity of proper amendments to comply with European company law. Since having an EU-Georgia Association Agreement signed, the dynamic process of Europeanization has put various legislative changes on the agenda, which also regard shareholders’ proprietary rights. This article briefly gives a novel insight into the distribution of interim dividends from a comparative point of view. It suggests the possibly scrutinized coverage of the legal preconditions along with liability consequences for the interim dividend declaration from the perspective of both shareholders and joint stock companies in Georgia. The article emphasizes the structure of the corporation, which naturally bedrocks the potential conflict of interests between the shareholders and creditors. The topic also endorses questioning Georgia’s rules on capital maintenance in relation to the interim dividend distribution. Hence, the study reveals prevailing regulatory lapses and makes pertinent recommendations on the alignment of the financial interests of those mentioned. Last but not least, the article exposes how directors on the credible basis of their fiduciary duties are assigned to divert assets of the corporation since their rationality in decision-making is expected to meet the best interests of the company.

Excessive Pricing of Pharmaceuticals in the EU: Balancing between Exploitation and Exploitative Abuse

Abstract: Normally, after the end of the exclusivity period offered by patents, medicines fall in public domain attracting competing companies to launch generic production that would bring down price levels. for different reasons, generic production of off-patented medicines does not always take place, allowing the main producer to continue dictate price levels. under some circumstances, this conduct may turn into exploitative abuse. However, excessive pricing itself is not anti-competitive unless other cost-and non-cost-related factors are present that turn excessive pricing a concern of competition law.