1ISSUE EIGHT

We are facing a demographic timebomb: by 2050, there will be 2 workersfor every 1 retired individual in mostEuropean countries.In Spain and Italy, the ratio is forecast to be 1:1.The harsh reality is that current pay-as-you-gopension systems are financially, economically andsocially unsustainable. Policy makers and citizensof Europe alike are awakening to the fact thatunless the current systems are reformed rapidly,public liabilities in the near future will beastronomical.Without reform, pensioners willbankrupt the welfare state.

A Stockholm Network conference: Europe NeedsSaving: Defusing the Pensions Time bomb, held inBrussels in February 2006, brought togethersome of the world’s leading experts on pensionsand pension reform in an attempt to identifycommon problems, discuss different countryexperiences and search for ways to brighten the

seemingly gloomy future for Europe’s pensioners.The conference was attended by 60 politicians,policy makers, journalists, and industry and civilsociety 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 dorecognise the existence of a ‘pensions problem’.This publication, however, does not concern itselfsolely with the political challenges surroundingthe process of reform.Acknowledging theexistence of the problem, the experts seekanswers to the following questions:What are the alternatives to a pay-as-you-go system? AreNotional Defined Contribution schemes – suchas the one applied in Sweden – the answer? Is afully funded system – such as the one achieved in Chile – the ultimate solution, and even if it is,can it be sold politically in Europe?

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SPRING 2006ISSUE EIGHT

EYE ON EUROPESTOCKHOLM NETWORK THE LEADING PAN-EUROPEAN THINK TANK AND MARKET-ORIENTED NETWORK

Sitting in the funky, inflatableboardrooms of 1999, the futurelooked bright. Stock markets werebooming, with dot-coms winning allthe plaudits (no matter how wackytheir corporate cultures). Oil wastrading at just over ten dollars abarrel, and nothing was so deeplyunfashionable as the “old economy”.Since then, with oil prices now reaching recordnominal highs of $60 per barrel, energy hasseldom left the headlines. Even Hollywood istaking an interest, with George Clooney winningan Oscar for the film Syriana, his conspiratorialtake on the global energy business.

Europe’s advanced industrial economies already import about 60% of their oil and thisis forecast by the International Energy Agencyto 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 Russialikely to maintain and expand its dominantmarket share.

CONTINUED ON PAGE 3

DEFUSING THE PENSIONS TIMEBOMB

A COLD DARK FUTURE?

DIRECTOR’S REPORT

While some markets in Europeremain resistant to liberalisation –health and postal services to namejust two – the energy market has not been one of them.Until recently, UK consumers at least have beenreaping the benefits of competition and choice,including some of the lowest domestic energyprices in Europe. Now, however, the prospectsfor the future appear dimmer. Unless publicpolicy changes to accommodate the new energyenvironment, including Russia’s more aggressivestance and the recent rise in wholesale gas andelectricity prices in the UK, our economy andeven the independence of our foreign policycould be at risk.

With this in mind, the Stockholm Network isorganising a major half-day seminar to addressthe issue of Europe’s Energy Crisis. Speakers will examine the future of Europe’s energy mix,what the correct balance might be betweendifferent forms of energy, and the impact ofpolitical freedom on a coherent energy policyfor Europe. And what impact will global foreignpolicies have on the future security of ourenergy supply?

The event will also mark the official arrival of the Stockholm Network’s new Director ofEnvironmental Affairs, Peter Nolan, who will beworking with us to highlight some of the energyand environmental challenges Europe is facing.

Recently recruited too is Simon Moore whojoined the Stockholm Network in early 2006following the completion of a successfulinternship period. In addition to administrativework and website maintenance, Simon recentlyfinished editing Beyond the Borders, a companionpiece to The Stockholm Network’s State of theUnion publication, looking at market-orientedreform in Europe’s non-EU member states.Simon holds a bachelors degree in politics from Lancaster University, where he wasawarded the Frank Cass/Oakeshott prize forbest overall performance in political theory and comparative politics.

We welcome them both on board and lookforward to their contribution this year.

But it is not just the Stockholm Network itselfwhich 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 qualitypress articles, delivered more than 600 majorpublications and hosted more than 600 majorevents last year. As such, the StockholmNetwork and its members’ work influence many millions of Europeans every year and we hope that 2006 will be better still.

Helen DisneyDirectorStockholm Network

ISSUE EIGHT2

EYE ON EUROPE

As businesses and consumers struggle to adjust to high prices and political instability,the European Commission and many of themember states of the EU are drawing upnational strategies for energy security so as toensure the ready availability of reliable energysupplies at affordable prices.The G8 group ofthe world’s leading industrial nations will beholding 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 gastransit fees with the Ukraine saw supplies toWestern Europe interrupted in December2005. Russia has looked at Saudi Arabia anddecided that it likes the model. Nobodycriticises the Saudis – they are too importantas a supplier,” the Financial Times quoted oneMoscow banker as saying.

Yet “the best way to secure energy security is to have a free market...that’s exactly theopposite of what is happening in Russia,” saidAndrei Illarionov, Putin’s long-time economicadvisor, who will speak at a StockholmNetwork/Freedom Institute conference in late May (see page 12). Moscow has begun“using energy as a weapon against its politicalenemies” the economist indicated, pointing outthat pro-Western governments in Moldova andGeorgia have all also had their energy suppliescut in the past six months, as have even thepro-Moscow Belorussians of late.

The terrorist attacks of 9/11 highlighted thecontinuing political risk that remains in the key

savings are all discussed.The authors putforward differing opinions on how to solve the same problem. Liam Halligan, for example,argues for the introduction of compulsorycontributions, paid from an early age, whileWilfried Prewo argues for an increase inweekly work time. Ian Vasquez extols thevirtues of the fully funded pension system inChile, and is optimistic that it can be appliedelsewhere, but Kamil Kajetanowicz is lesspositive about the prospects of the market-oriented reform of Poland’s pension system.All authors would agree, no doubt, with MatthewBishop that countries need to pursue strategiesthat maximise economic growth so that theywill be better able to support a relatively largerblock of pensioners.Without strong economicgrowth, financing any radical change in thepension system will be incredibly difficult.

Yet it takes enormous courage for agovernment to embark on a course of seriousreform. After all, governments have strongincentives to avoid tackling the issue of

pensions. It produces no short-term results, canbe extremely costly (again, in the short term),and it is almost certain to cost popularity witha powerful voting block. In such a difficult policyenvironment, it is crucial that there existsvaluable intellectual ammunition for those withthe nerve to reform.

There is no comprehensive solution to allcountries’ pension woes.The intricacies ofdomestic politics, the complexities of pensionreform and the huge potential for error makethis impossible. However, there are clearindications as to the kind of reform that isneeded and the authors in this book canidentify at least one clear conclusion: the mosteffective way of defusing the pensions timebomb is to harness the power of market forces.

Terry O’Dwyer

producing countries of the Middle East,especially Saudi Arabia and Iraq.Terrorism alsopresents a major threat to energy infrastructure,with pipelines, storage facilities and tanker shipsall being targeted by Al Qaeda.

European governments echo EU energycommissioner Andris Piebalgs’ hope thatreforms favouring free markets and liberalinstitutions will provide the right framework forinvestment and trade. Nevertheless, over threequarters of world oil remains in state handsrather than private companies. According to arecent OECD report, ‘it is unlikely that Russia’sprivate oil companies could have achieved thegrowth of the last few years if they hadremained under state control.’ Rather thanexploration being encouraged by a favourableregime, higher taxes are being levied, even inthe UK’s declining North Sea fields.

The European Commission sees liberalisation of domestic electricity and gas markets as a keypart of its Lisbon agenda to make Europe morecompetitive and eliminate the human cost ofeconomic stagnation. Energy market reform waspioneered in Britain, which saw householdspaying several hundred pounds a year less thanbefore privatisation. Competition among powergenerators in the UK led to wholesale pricesfalling nearly 40 percent.

Following a full-scale enquiry into the energysector, competition commissioner Neelie Kroeshas concluded that EU gas and electricitymarkets suffer from distortions, with excessconcentration among state-owned or state-favoured incumbents, leading to higher pricesfor consumers and harming energy security.The Commission intends to take further actionto prod national governments to meet theirexisting commitments towards opening markets.

Energy consumers and the Commission alikeview with alarm the outbreak of what FrenchPM de Villepin has called “economic patriotism”,the shielding of domestic industry fromtakeovers by companies based elsewhere inthe EU.Yet while few easy solutions presentthemselves, high oil prices, increasing concernsabout reliability of energy imports and newregulations on emissions of carbon dioxide mayreinvigorate the prospects for other energytechnologies such as ‘clean coal’, wind power,carbon sequestration, biofuels and a newgeneration of nuclear power plants.

Peter Nolan

3SPRING 2006

WWW.STOCKHOLM-NETWORK.ORG

A COLD DARK FUTURE? CONTINUED

DEFUSING THE PENSIONS TIMEBOMB CONTINUED

As well as answering the questions above, thepublication has three main aims: to provide abrief analysis of the existing pension systems inEurope, to examine the pensions crisis throughthe prism of internationally recognised research,and perhaps most interestingly, to propose anumber of routes out of the pensions quagmire.

Several authors point to the value of NotionalDefined Contribution schemes, which are pay asyou go schemes – with the crucial differencethat there is a fixed contribution rate onindividual earnings that are noted in an individualaccount. NDCs have played a critical role inSweden but their true value lies in the fact thatthey are an excellent intermediary step towardfully funded pensions. Giuseppe Pennisi andEdward Palmer provide excellent insights intohow NDCs could help defuse the time bomb.

NDCs aside, other solutions, such as raising theretirement age, increasing taxes and stimulating

Think tanks are a rather newphenomenon in Iceland.While in the past a number of political groupshave behaved in a manner similar to think tanks – producing articlesand pamphlets – none have used theterm ‘think tank’ to describe theirform.There are now a total of threeIcelandic free-market think tanks.Besides Veritas, which is rooted inconservative philosophy, two libertariangroups – RSE (www.rse.is) and Andríki(www.andriki.is.) – are also workingon issues of market liberalisation.Veritas was founded on December 1 2005 bythree university students; Hjörtur J. Gu∂mundsson,Gísli Freyr Valdórsson, and Sindri Gu∂jónsson.Gu∂mundsson and Valdórsson are studyingpolitical history and political science respectivelyat the University of Iceland, while Gu∂jónssonreads law at the University of Akureyri.Thefounding date was chosen specifically becauseIceland became a sovereign state on December1st in 1918. It later became independent on June 17, 1944 with the founding of the Republicof Iceland.

The founding of Veritas is a direct continuation of the establishment of a free-marketconservative weblog – www.ihald.is in October2004.This weblog was an early success andquickly became one of the most prominentpolitical websites in Iceland, demonstrating thesubstantial demand in Iceland for a free-marketconservative contribution to the political debate.Buoyed by the success of the weblog, the threeeditors of Ihald.is decided to expand their activityand found a think tank in order to furtheraddress this demand – thus Veritas was borne.

WHAT THEY BELIEVE These are very exciting times in Iceland.Thecentre-right government, which has been inpower since 1995, has introduced radicallyliberalising economic reforms including theprivatisation of state property, a significantlowering of taxes and substantial reductions in the regulatory burden. As a consequence,Iceland has seen considerable economicprogress – driven by the rapid growth of the private sector – in recent years.

foundation. It has publicly issued a number ofresolutions on various issues ranging frominternational free trade to government fundingof independent organisations, and its membershave written numerous articles for domesticnewspapers, journals and weblogs, participatedin media interviews and held both public andprivate meetings.

Veritas has already published two researchpapers, both in Icelandic.The first, Iceland andSchengen: A step forward or membership ofincreased problems? by Hjörtur J. Gu∂mundsson,examines the consequences for Iceland ofjoining the EU’s ‘free movement of people’ area.The second, Are politicians and public officialsdangerous to democracy? by Gísli FreyrValdórsson, investigates one of the greatparadoxes of power and democracy.

WHAT ARE THEIR PLANSVeritas will continue its development as aprominent and permanent influence on thepolitical debate in Iceland. Although Icelandicpublic policy has largely been headed in theright direction in recent years, there is stillmuch to be done, and the most pressingpriority is to ensure this liberalising course isretained.Veritas aims to continue contributingto this trend, along with other like-mindedorganisations and individuals, both domesticand abroad.

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PROFILE:VERITAS (REYKJAVIK, ICELAND)

Veritas’ primary aim is to promote conservativeideas and values in Iceland, not the least ofwhich is further economic liberalisation. Itswork strongly emphasises the necessity ofadditional tax cuts and a further reduction instate interference and centralisation, and, as adirect consequence, the power of politicians.Veritas also urges the Icelandic government tocontinue on the road towards concluding free-trade agreements with other countries,and thus contributing to the spread ofprosperity throughout the world. Finally, theirwork stresses the importance of the family asthe cornerstone of society.

Veritas is also concerned with foreign, securityand defence policy making.The think tankfavours mutual cooperation between Icelandand other countries of the world, and especiallysupports strong ties and cooperation with theUnited States of America. It is strongly in favourof Iceland’s continued membership of theNorth Atlantic Treaty Organisation (NATO),but strongly oppose to the idea that Icelandshould join the European Union.

WHAT THEY HAVE DONEDespite its relative youth,Veritas has been veryactive in the political debate in Iceland since its

www.veritas-iceland.com

EYE ON EUROPE

5SPRING 2006

and organisations across Europe in its researchand activities, and disseminates its ideas widelyacross the EU and the rest of the world. OpenEurope is the UK’s leading voice for reform ofthe EU and has a wide national and internationalsupporter base.

Open Europe’s campaigning experience andextensive relationships with politicians of allparties and journalists working in the broadcastand print media mean that it is also able tomarket its ideas to UK and EU opinion formers,and ensure that they have an impact. As well as hosting regular events and debates, OpenEurope believes in helping young peopleunderstand the challenges faced by the EU,and regularly organises talks in schools.

OPEN EUROPE’S ACTIVITIESINCLUDE:Making the case for free trade.Europe’s economy is held back by high tradebarriers against the rest of the world. Instead of getting ready to compete in the new globaleconomy, the European Commission has cavedin to pressure from protectionist member states, and uses high trade barriers to shut outcompetition from fast growing economies likeChina. Open Europe commissioned originalresearch into the benefits of trade liberalisationfor the EU and developing world, and found thatbringing down Europe’s trade barriers wouldsave a typical UK household of four around£1,500 a year.The research also found thatopening up trade would benefit developingcountries most of all – boosting African GDP byjust under 6% and lifting millions out of poverty.

Rolling back EU over-regulation.A study by Open Europe revealed that despitepromises to reduce the burden of EU regulation,the cost of red tape on the economy is stillgrowing. An intensive research programmerevealed that 77% of the cost of regulation onbusiness since 1998 had been caused by EUlegislation. In total Open Europe found that EUregulations since 1998 alone have cost the UKeconomy £30 billion.

Arguing for more democracy andtransparency.Europe’s institutions still operate in a secretiveand undemocratic way, with the EU refusing topublish records of its most important meetings.

Open Europe is an independent think tank set up by some of the UK’sleading business people in October2005 to contribute bold new thinkingto the debate about the direction ofthe EU.

WHAT THEY BELIEVESet up by the people behind the successful ‘No’ campaigns against the Euro and the EUConstitution, Open Europe is committed toEuropean cooperation but believes the EU hasreached a critical moment in its development.“Ever closer union”, espoused by Jean Monnetand propelled forwards by successive generationsof political and bureaucratic elites, has failed.

Open Europe believes that the EU must nowembrace radical reform based on economicliberalisation, a looser, more flexible structure andgreater transparency and accountability, if it is toovercome these challenges and succeed in thetwenty-first century.The best way forward for the EU is an urgent programme of radical changedriven by a consensus between member states.

WHAT THEY DOIn pursuit of this consensus, Open Europeinvolves like-minded individuals, political parties

Year after year officials who try to blow thewhistle on corrupt practices find that they arethe ones who are investigated, rather thanthose who are guilty. Open Europe published a report revealing that even in Westminster,MPs’ attempts to scrutinise the torrent of EUlegislation are blocked by the UK Government’sincreasing use of the “scrutiny override” – whichmeans the Government signs up to bindinglegislation without MPs ever having a chance to even look at it.

Exposing EU waste.Despite the fact that the EU’s own accountantshave refused to sign off its accounts for elevenyears, the UK Government has agreed to payeven more money (over £12 billion a year)into a totally unreformed EU budget.The EUcontinues to squander half its budget on thefailed Common Agricultural Policy, which raisesfood prices for people in Europe and damagesthe developing world – but hasn’t stoppedfarmers’ incomes falling by half.

Exposing the failures of the EuropeanSocial Model.Open Europe recently published a book ofessays from leading thinkers around Europelooking at the failures and lessons of theEuropean Social Model. Research by OpenEurope found, for example, that income growthfor the poorest people in so-called Anglo-Saxoneconomies like Ireland and the UK has beenquicker than in high-tax, highly regulatedeconomies such as Sweden.The book arguedthat the ‘social model’ is not working, and thatthe time has come for the EU and its memberstates to take a different approach.

Open Europe plans to build on these initiatives in2006, expanding its network of supporters, andcontinuing to make the case for radical reform atthis critical time for the European Union.

www.openeurope.org.uk

PROFILE:OPEN EUROPE (LONDON, UK)

WWW.STOCKHOLM-NETWORK.ORG

The Institute for Free Enterprise (IUF)is Germany’s leading free market thinktank. Its major areas of focus arepension policy, healthcare, labourregulation, tax reform and fiscalpolicy.While German think tanks and research institutions dependalmost entirely on state funding orgovernment contracts, the IUF isfunded only by private donations.It was founded in 1998 and is aregistered charity located in Berlin.

WHAT THEY BELIEVEIUF’s vision is a free Europe where economicpolicy follows the principles of classical liberalism;where the level of wealth creation is high andfreedom of contract is the basis of all economictransactions.The pension and health systems arerun privately and European societies are part ofthe fight for small government. Public welfareplays no significant role, neither in the budget,nor in the lives of the people.

At present no political party, politician, ororganisation in Germany today offers popularlong term solutions to the economic problemsbesetting the nation. Established public policygroups and academia are failing Germany justwhen it needs them the most. And as long as financial reserves exist to prolong thegenerosity of the current welfare system,postponing reform will remain the strategy of choice.

The answer to the current dilemma is therediscovery of Germany’s liberal roots and the economic history of the post-WWIIeconomic miracle.Thus, the outlook for Europeand Germany is positive, but only if it is viewedthrough the filter of real economic and socialreform.

WHAT THEY HAVE DONEThe IUF regularly appears in the German printmedia, with Sascha Tamm writing regularcolumns for the Frankfurter Allgemeine Zeitung,Handelsblatt and other prominent newspapers.Oliver Knipping has also published articles ontransportation economics for the Institute forEconomic Affairs and appeared on TVprogrammes such as the Night Café talk-show

Funds permitting, IUF plans for 2006-7 include

Two single-issue conferences dealing with the reform of the German health andpension systems respectively.The publication of three research papers onhealthcare and pensions.Publication of a German edition of EuropeanDawn by Johnny Munkhammar.The creation of a multilingual on-line course,The Miracle of Markets, to introduce viewersto basic economics.

The Institute will generate most of its material inboth German and English. Almost 100 millionEuropeans speak German while English is themost widely studied second-language in Europe.The IUF will also divide its work into twostrands; while it will focus on policy areas inneed of immediate reform, the Centre forLiberal Studies (CLS), an internal department,will look at long term solutions to the underlyingissues.Thus while the IUF works with currentpolicy makers and academics, the CLS will workwith students who are the policy makers andacademics of tomorrow.

The IUF is also currently developing a monthlypublication, New Liberal Review, which will publisharticles in both English and German. Similarly, theCLS will be producing a regular email newsletterfor students informing them of conferences,internships, scholarships and opportunities thatmay help them further their academic careers.

ISSUE EIGHT6

PROFILE:INSTITUTE FOR FREE ENTERPRISE(BERLIN, GERMANY)

on the global economy, Polylux, Hart aber Fairand other national television programmes.

The IUF has organised a number of seminarsand conferences, such as the 2005 WorldFreedom Summit together with the InternationalSociety for International Individual Liberty (ISIL).It has also jointly published, with the LiberalesInstitut of Switzerland, The Welfare State DestroysWelfare and the State. In addition, the IUF’sCentre for Liberal Studies has published TheIdeals of Tyranny, The Ideals of Liberty, What theGreens Really Want, and Chernobyl’s Real Disaster.The Centre is also making numerous lectures oneconomics and public policy available on DVD.

FORTHCOMING ACTIVITIESThe IUF will hold an annual Reform Summit forGermany, on May 2, focussing on the IUF’s corepublic policy agenda.The issues of taxation,labour law, pensions and healthcare are widelyunderstood to be crucial to Germany’s futureeconomic performance.This summit will bringGerman policy makers, academics andjournalists together with experts from aroundthe world to discuss the need for reform, theprocess of reform, and which reforms havebeen successfully tried in various nations.

The compiled lectures of the Reform Summitwill be published in German and English.

EYE ON EUROPE

www.ife-berlin.org/en/index.php

7SPRING 2006

the competitiveness of the region, its healthcaresystem, the evolution of its public sector andthe future prospects of Navarra.The research is conducted by in-house economists andsociologists, though the Institución also has anetwork of external researchers with whomthey collaborate on a regular basis. All the workis dissipated through books and periodicals,conferences and seminars, and regular mediaappearances – including a semi-monthlyopinion article in Expansión, the main Spanisheconomic newspaper.The website, recentlyredesigned, releases updated information aboutthe activities of the Institución and keepsrecords of all publications.

WHAT THEY HAVE DONESince its foundation, the Institución Futuro haspublished several books. Some of the mostrecent ones include a prospective study ofSpain in 2020, a review of immigrants’entrepreneurship in Navarra, and a study of thesocial values and public image of the region.It has also published policy briefings where itrecommends the implementation of newpolicies on topics such as the Public Budget or fiscal incentives for R&D. Equally, it hasorganised seminars on the drug marketplace in Spain, the economic perspectives of the lastEU enlargement and the sustainability andcompetitiveness of the region. Other activitiesinclude public appearances and speechesdelivered about topics such as the unity ofSpain, Spanish foreign relations, the state of theeconomy, the automotive industry or the futureof the European Union.

WHAT THEY BELIEVEThe Institución Futuro believes in the activerole that civil society should play in thedevelopment of public affairs.The think tankagrees with the principles of advanceddemocracies: the defence of individual freedomand civil rights; and of the market economy andthe proper balance between the power of thestate and the initiative of individual citizens.The Institución Futuro believes in Westernculture and values and they share the idea of acommon territory for all Spaniards, although italso agrees with the autonomy of the Spanishregions.The Institución supports the EuropeanUnion and is optimistic about globalisation.

Institución Futuro was founded inSeptember 2001 to design andpromote a better socio-economicfuture for Navarra.This independentthink tank analyses public policies andlaunches innovative proposalsthrough research, publications andeducational activities.The institution’smembers come from the businessand professional communities and are independent from the politicalestablishment.The Institución Futurois a non-profit organisation.

WHAT THEY DOThe Institución plays a pioneering role inNavarra.The nature and activities of a thinktank are not well known in Spain, and especiallyin this region. Not only are citizens unaware of the phenomenon, but political, economic and social leaders are equally in the dark.TheInstitución therefore undertakes a pedagogicfunction: besides promoting its own ideas andactivities, it educates people on the nature andfunctions of an independent think tank.

Research at the Institución focuses on thefollowing areas: the public image of Navarra,

FORTHCOMING PLANS ANDPUBLICATIONSIn 2006, the Institución Futuro is planning toissue several books about the competitivenessof Navarra in Europe, the impact of the Budgetof the European Union on the region, theintegration of immigrants in Navarra, fiscalincentives to increase competitiveness andpublic opinion about its health care system.It will continue the publication of the weeklynewsletter Opinion Review, focused on theinternational media, and the quarterlynewsletter Tendencias de Futuro, which givescoverage to studies and opinions of think tanksall over the world.

A range of activities is also planned.TheInstitución Futuro will host lectures withexperts, academics, businessmen and politicalleaders. In addition, it will host two seminars.The first one will focus on the competitivenessof Navarra and in the other, several expertswill discuss the public image of the region. Asone of the first truly independent think tanks in Spain, the Institución Futuro faces a uniqueand difficult task: as well as attempting toinfluence the political landscape and stimulatedebate, it must educate the public and thepolitical establishment on the meaning andvalue of think tanks.

www.institucionfuturo.org

PROFILE:INSTITUCIÓN FUTURO (NAVARRA, SPAIN)

WWW.STOCKHOLM-NETWORK.ORG

ISSUE EIGHT8

ABOUT THE NETWORKPolicy IssuesThe Network is a forum for sharing,exchanging and developing pan-Europeanresearch and best practice. Interested in ideaswhich stimulate economic growth and helppeople to help themselves, we promote andraise awareness of policies which create thesocial and economic conditions for a freesociety.These include:

Reforming European welfare states andcreating a more flexible labour market.Updating European pension systems toempower individuals.Ensuring more consumer-driven healthcare,through reform of European health systemsand markets.Encouraging an informed debate onintellectual property rights as an incentive to innovate and develop new knowledge inthe future, whilst ensuring wide public accessto such products in the present.Reforming European energy markets toensure the most beneficial balance betweeneconomic growth and environmental quality.Emphasising the benefits of globalisation, tradeand competition and creating an understandingof free market ideas and institutions

What do we doWe conduct pan-European research on, andcreate a wider audience for, market-orientedpolicy ideas in Europe. Our website contains a comprehensive directory of European freemarket think tanks and thinkers.We advertiseforthcoming events (our own and those ofpartner organisations) and facilitate publicationexchange and translation between think tanks.We also post regular news flashes and updateson European think tanks and their activities.

When was the Stockholm Networkfounded?The Stockholm Network was founded in 1997by Helen Disney, a British journalist and policyspecialist.The spread of market-oriented thinktanks and independent policy research institutesacross Europe from the mid-1990s onwards,created a niche for a network hub, capable of providing a bird’s eye view of the policyenvironment.The network’s early aims, whichhave continued to the present day, were to findan efficient method of connecting like-mindedpolicymakers and thinkers; to encouragecollaboration on joint research projects inorder to share the most successful policyinnovations and arguments more widely;and to ensure a wider audience and a moreco-ordinated approach to the dissemination of market-oriented ideas within Europe andbeyond its borders.

Who funds the Stockholm Network?The Network is funded by a wide range ofindividuals, corporations and foundations.A mixture of for-profit and not-for-profitorganisations, some SN supporters are globalenterprises, while others are small or medium in size. Subscriptions from individuals, commercialenterprises, and a range of NGOs including otherthink tanks make up the bulk of our funding.

We also derive a small income from the sale of our publications and research materials tothe public, bookshops, government agencies andprivate companies. Corporate subscribers comefrom a wide range of sectors that currentlyinclude information technology, energy,pharmaceuticals, healthcare, public affairs andventure capitalism. Subscribers do not have aveto over the outcome of Stockholm Networkresearch or any influence over its media output.

Why should I support theStockholm Network and its work?The Stockholm Network is in the business of creating in Europe an intellectual climate inwhich human prosperity and your organisationcan thrive.We strive to maintain the bestknowledge of European market-oriented thinktanks, ideas and thinkers, directing you swiftly to the expert or organisation you need.We already have a proven track record ininfluencing the policy debate and our networkand influence is growing all the time.

How could you or your organisationbenefit from SN membership?

Expand your database by meeting newcontacts from across EuropeReceive weekly Stockholm Network emailupdates and quarterly newslettersReceive Stockholm Network Books and PublicationsGet invitations to Stockholm NetworkEvents and Activities

Would you like to join theStockholm Network?Please contact us on +44 20 7354 8888 or email our Assistant Director Sacha Kumaria at sacha@stockholm-network.org

EYE ON EUROPE

The Stockholm Network is theleading pan-European think tank and market-oriented network. It is a one-stop shop for organisationsseeking to work with Europe’sbrightest policymakers and thinkers.Today, the Stockholm Network bringstogether 120 market-oriented thinktanks from across Europe, giving usthe capacity to deliver local reformmessages and locally-tailored globalmessages across the EU and beyond.

Combined, the think tanks in ournetwork 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, theStockholm Network and its memberorganisations influence many millions of Europeans every year.

“We face a broad range ofeconomic challenges over thenext decade. Learning from theexperiences of market-basedreform elsewhere in Europeand the world can help us setthe best course for Britain.TheStockholm Network is aninvaluable resource in facingthat challenge.”Matthew Hancock, Economic Advisor to ShadowChancellor George Osborne MP

9SPRING 2006

MEET THE TEAM

WWW.STOCKHOLM-NETWORK.ORG

HELEN DISNEY is Director of the StockholmNetwork. Her background is in public policy and the media.

Formerly an editorial writer for The Times and an editorial writer and commentator for the DailyExpress, Helen continues to write regularly on arange of public policy topics for such publicationsas the Daily Express and Sunday Express, PublicFinance, Public Service Magazine, and The Sprout,a satirical Brussels-based magazine, as well asregular weekly entries for the Centre for theNew Europe’s health weblog, CNE Health.

Helen has been the Director of the StockholmNetwork since 1997, and is a founding memberof the organisation.

DR TIM EVANS is the Stockholm Network’sDirector of Development. He works across the spectrum of policy issues to ensure that theStockholm Network continues to promote itswork and develop support across a range ofconstituencies 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 theIndependent Healthcare Association in Londonwhere he oversaw the political affairs and publicrelations of one of the UK’s independent healthand social care sector. He also served as chiefeconomic and political advisor to the SlovakPrime Minister, Dr. Jan Carnogursky, between1991-92.

ANNE KRISTINE JENSEN is the StockholmNetwork’s Project Manager for Trade, I.P. andCompetition. She joined the Network in October 2004 following a period as an intern.She is responsible for organising events andfrequently contributes to and edits StockholmNetwork publications.

SACHA KUMARIA is the Stockholm Network'sAssistant Director and Manager of its Energy andEnvironment Programme. He is responsible forliaising with member think tanks, co-ordinatingresearch projects and events and contributing toand editing Stockholm Network newsletters andpublications.

SIMON MOORE joined The StockholmNetwork in early 2006 following the completionof a successful internship period. In addition toadministrative work and website maintenance,Simon is currently working on Beyond theBorders, a companion piece to The StockholmNetwork’s State of the Union publication,focussing this time on market-oriented reform innon-EU member states in Europe.

PETER NOLAN is the Director of theEnvironment and Energy Programme. He is agraduate of Trinity College Dublin, City Universityin London and Birkbeck College, University ofLondon with degrees in economics, mathematicalfinance and political science.While studying, healso worked as a researcher for what was thenthe main Irish opposition party.

Peter is also a director of the Freedom Institute,an Irish free-market think-think and writesregularly for the press in Ireland, the UK, Europeand the Middle East. Previously an investmentbanker specialising in emerging markets, he isdirector of development for an internationalfinancial information and analytics company.

TERENCE O’DWYER is manager of theStockholm Network’s Health and WelfareProgramme. He is also responsible forcoordinating the Amigo Society meetings, liaisingwith our Spanish and Portuguese think-tankmembers and managing the Stockholm Networkwebsite.Terry joined the Stockholm Network inJuly 2004.

KATIE PERRIOR is the Media Director of theStockholm Network. She joined us in July 2005to 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.

Katie acted as a media consultant to the awardwinning television programme, ‘Who Wants To Be A Millionaire?’, and has worked for severalpoliticians, notably the Conservative PartyChairman and the Shadow Home Secretaryduring high profile campaigns. Most recently,she has also worked for ITV and Channel 4News, and is a local councillor, and ConservativeSpokesman for Community Safety, for theLondon borough of Bexley.

DR MEIR PUGATCH heads the intellectualproperty and competition programme at theStockholm Network and edits its monthlye-newsletter, Know IP. He is based at the Schoolof Public Health, University of Haifa in Israel,where he is a lecturer on intellectual propertypolicy, management and the exploitation ofknowledge assets and entrepreneurship.

Dr Pugatch is also a guest lecturer at theDepartment of International Relations, HebrewUniversity Jerusalem, where he lectures on theinternational political economy of trade policy.

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MEMBER ORGANISATIONS

The Stockholm Network is theleading pan-European think tank andmarket-oriented network. Spanningalmost 40 countries and over 120think tanks, our unique organisationhas the capacity to deliver localmessages and locally-tailored globalmessages across the EU and beyond.

Through our publications, weekly newsletter,and special events, members are able toexchange ideas and make an impact on a widerange of public policy topics and ideas.

If you know of a new organisation you think would benefit from StockholmNetwork membership, please contact ouroffice at info@stockholm-network.org and let us know.

“The Stockholm Network hasproved a great help by making it easier for me to get in touchwith interesting organisations and individuals across Europe”.Allister Heath, Associate Editor,The Spectator,and Deputy Editor, The Business

EYE ON EUROPE

11SPRING 2006

Adam Smith Institutewww.adamsmith.org/United KingdomAdam Smith Societywww.adamsmith.it/ItalyAdriatic Institute for Public Policy www.adriaticinstitute.org/CroatiaAlbanian Liberal Institutewww.liberalb.org AlbaniaAnders Chydenius Foundationwww.chydenius.net/eng/index.aspFinlandAssociation for Liberal Thinkingwww.liberal-dt.org.tr/TurkeyAssociation for Modern Economywww.ame.org.mk/MacedoniaAvenir Suissewww.avenir-suisse.ch/SwitzerlandBulgarian Society for Individual Libertywww.libertarium.net/BulgariaCaptuswww.captus.nuSwedenCausa Liberalwww.causaliberal.net/PortugalCentre for Economic Developmentwww.ced.bgBulgariaCentre for Economic Developmentwww.cphr.sk/SlovakiaCentre for Economics and Politicscepin.cz/cze/index.phpCzech RepublicCentre for Entrepreneurship and Economic Developmentwww.visit-ceed.orgMontenegroCentre for European Reformwww.cer.org.uk/United KingdomCentre for Institutional Analysis and Developmentwww.cadi.roRomaniaCentre for Liberal Strategieswww.cls-sofia.org/BulgariaCentre for Liberal-Democratic Studieswww.clds.org.yu/SerbiaCentre for Policy Studieswww.cps.org.uk/United KingdomCentre for Political Thoughtwww.omp.org.pl/indexang.htmlPolandCentre for Research into Post-CommunistEconomieswww.crce.org.uk/United KingdomCentre for Social and Economic Researchwww.case.com.plPolandCentre for the New Europewww.cne.org/index.htmBelgiumCentre for the Study of Democracywww.csd.bg/BulgariaCentro Einaudiwww.centroeinaudi.it/ItalyCentrum im.Adama Smithawww.smith.pl/ PolandCEPOSwww.cepos.dk DenmarkCercles Liberauxwww.cerclesliberaux.com/FranceCIDASwww.cidas.it/ItalyCivic Institutewww.obcinst.cz/Czech RepublicCivitawww.civita.no/civ.php?mod=content&id=6NorwayCivitaswww.civitas.org.ukUnited Kingdom

Conservative Institute of M. R. Stefanikwww.institute.sk SlovakiaCouncil on Public Policywww.council.uni-bayreuth.de/GermanyE.G.West Centre UKwww.ncl.ac.uk/egwest/United KingdomEconomic Policy Research Institutewww.epri-macedonia.org/ MacedoniaEkome (Society for Social and EconomicStudies)www.ekome.gr/English/default.aspGreeceEudoxawww.eudoxa.se/SwedenEuro 92www.euro92.com/new/europe.php3FranceEuropean Ideas Networkwww.epp-ed.org/europeanideasnetwork/BelgiumEuropean Independent Institutewww.european-independent.orgThe NetherlandsEVAwww.eva.fi/eng/index.phpFinlandF.A. Hayek Institutewww.hayek-institut.atAustriaFAESwww.fundacionfaes.org SpainFondation pour l’innovation politique www.fondapol.orgFranceFoundation for Market Economywww.fme.hu/HungaryFrédéric Bastiat Stichtingwww.bastiatstichting.nl/The NetherlandsFREE (Forum Rozwoju Edukacji Ekonomicznej) www.free.org.pl/PolandFree Market Centrewww.fmc.org.yu/SerbiaFreedom Institutewww.freedominst.orgIrelandFriedrich Naumann Stiftungwww.fnst.de/webcom/show_article.php/_c-449/i.htmlGermanyFriedrich von Hayek Gelsellschaftwww.hayek.de/GermanyFundacio Catalunya Obertawww.catalunyaoberta.netSpainGdansk Institute for Market Economicswww.ibngr.edu.pl/english/index2.htmPolandHayek Foundationwww.hayek.ru/RussiaHealth Consumer Powerhousewww.healthpowerhouse.com BelgiumHealth Policy Institutewww.hpi.skSlovakiaHealth Reform.czwww.healthreform.czCzech RepublicHellenic Leadership Institutewww.hli.gr/GreeceiFRAP (French Institute for Research into Public Administration)www.ifrap.org/FranceINEKOwww.ineko.sk/english/ SlovakiaInstitución Futuro www.institucionfuturo.orgSpainInstitut Constant de Rebecquewww.institutconstant.chSwitzerlandInstitut Economique Molinariwww.institutmolinari.org/BelgiumInstitut Hayekwww.fahayek.org/Belgium

Institut Montaignewww.institutmontaigne.org/FranceInstitut Turgotwww.turgot.org FranceInstitute for Economic Studies Europewww.ies-europe.org FranceInstitute for Free Enterprisewww.unternehmerische-freiheit.de/GermanyInstitute for Free Societywww.isloboda.skSlovakiaInstitute for Market Economicswww.ime-bg.org/BulgariaInstitute for Strategic Studies and Prognosiswww.isspm.org/ MontenegroInstitute for Transistional Democracy andInternational Securitywww.itdis.org HungaryInstitute of Economic Affairswww.iea.org.ukUnited KingdomInstitute of Economic and Social Studieswww.iness.skSlovakiaInstituto Juan de Marianawww.juandemariana.org SpainInstytut Globalizacjiwww.globalizacja.orgPolandInstytut Liberalno-Konserwatywnywww.ilk.lublin.pl/PolandInternational Policy Networkwww.policynetwork.net/United KingdomIstituto Acton www.acton.org/ital ItalyIstituto Bruno Leoniwww.brunoleoni.itItalyJerusalem Instiute for Market Studieswww.jims-israel.orgIsraelKonrad Adenauer Foundationwww.kas.de/GermanyLiberales Instituteng.libinst.chSwitzerlandLiberalni Institutewww.libinst.cz/english/Czech RepublicLibertarian Alliancewww.libertarian.co.uk/United KingdomLibertaswww.libertas.dk/DenmarkLiberty Ideaswww.liberalismus.atAustriaLiberty Netwww.libertynet.gr/GreeceLithuanian Free Market Institutewww.freema.org/LithuaniaLudwig von Mises Institute Europewww.vonmisesinstitute-europe.orgBelgiumLudwig von Mises Institute Romaniawww.misesromania.orgRomaniaM.E.S.A. 10www.mesa10.skSlovakiaMagna Carta Foundationwww.magna-carta.itItalyNew Economic Schoolwww.economics.ge/GeorgiaNew Social Market Economy Foundationwww.insm.de/index.jspGermanyNova Civitaswww.novacivitas.org/BelgiumNova Res Publicawww.novarespublica.org/Italy

Open Europewww.openeurope.org.ukUnited KingdomOpen Republic Institutewww.openrepublic.org/IrelandPoder Limitadowww.poderlimitado.org/SpainPolicy Exchangewww.policyexchange.org.uk/United KingdomPoliteiawww.politeia.co.uk/United KingdomProject Empowermentwww.project-empowerment.orgUnited KingdomRatio Institutewww.ratioinstitutet.nu/SwedenReformwww.reform.co.uk United KingdomRiinvest Institute for Development Research www.riinvestinstitute.orgKosovoRomania Think Tankwww.thinktankromania.ro/RomaniaSauvegarde Retraiteswww.sauvegarde-retraites.org/FranceSocial Affairs Unitwww.socialaffairsunit.org.uk/United KingdomStiftung Marktwirtschaftwww.stiftung-marktwirtschaft.de/GermanyTaxpayers’ Alliancewww.taxpayersalliance.comUnited KingdomThe Copenhagen Institutewww.coin.dk DenmarkThe F.A. Hayek Foundationwww.hayek.sk/ SlovakiaThe Globalisation Institutewww.globalisationinstitute.org United KingdomThomas More Institutewww.institut-thomas-more.orgBelgiumTimbrowww.timbro.se/SwedenVenezie Institutewww.venezie.orgItalyVeritaswww.veritas-iceland.comIcelandWalter Eucken Institutwww.eucken.de/en/index.htm Germany

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A Sick Business £10Apology for Capitalism £10Beyond the Borders £10Defusing the Pensions Timebomb £10

Does the West Know Best? £8Intellectual Property Frontiers £5 Impatient for Change £12 Poles Apart £10

EYE ON EUROPE

THE STOCKHOLM NETWORK35 Britannia Row, London N1 8QHUnited Kingdom

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WESTMINSTER FRINGE DEBATES

VENUE:One Great George Street, London SW1PREVIOUS DEBATES:9th February 2006If Britain wants decent and efficientpublic services, it should hand them over to the private sector

23rd March 2006Free trade is the way to make the poor world richer

25th April 2006Putin’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 offulfillment, not failure. Details will shortly be confirmed and will be available atwww.stockholm-network.org/conferences/events/upcoming.php

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EVENTS AND PUBLICATIONS

Beyond the BordersAn accompaniment to The StockholmNetwork’s earlier pamphlet, The State of the Union, a new title Beyond the Bordersinvestigates the progress of market-orientedreform in those European countries outsideof the EU. From Scandinavian welfare states to economies still emerging fromcommunism’s shadow, this diverse group ofnations highlight many of the challenges andchanges facing European economies today.Alongside The State of the Union, Beyond theBorders completes the most comprehensiveanalysis of the continent’s reform movement.

Defusing the PensionsTimebombEurope’s population is ageing rapidly, andtime is running out to enact reform.Thisseries of essays offers guidance as to thekind of reform that is needed, and offers aclear lesson: undeniably the most effectiveway of defusing the pensions time bomb is to harness the power of market forces.

‘A Cold, Dark Future? Economic,political and security challenges to Europe’s energy future’ A Stockholm Network / FreedomInstitute Conference

High prices at home and political instabilityabroad have left businesses and consumersuncertain about the future security of Europe’senergy.The European Commission and many EU member states are drawing up nationalenergy strategies to ensure the ready availabilityof reliable supplies at affordable prices. Marketliberalisation, bolstered infrastructure security,technological innovation and political reformoverseas are all key components of thesestrategies. But these uncertain times have alsoseen a resurgence of the countervailing forces of protectionism, monopolisation and realpolitik.This conference will examine the obstacles andopportunities posed by the continent’s currentenergy crisis. Confirmed speakers include;

Albert Bressand, former head of Shell’s ScenarioPlanning DepartmentPaul Domjan, Director, JH&Co.; former EnergyAdvisor, United States European CommandPeter Nolan, Director, Energy & EnvironmentProgramme,The Stockholm Network Carola Hoyos, Energy Correspondent,Financial TimesAndrei Illarionov, former Economic Advisor to Russian President Vladimir Putin

For more information on attendance, pleasecontact sacha@stockholm-network.org