Diplomacy & Defense Think Tank News

Revised version, December 2025

Tax expenditures (TEs) are benefits granted through the tax system that lower government revenue and the tax liability of beneficiaries. Governments worldwide use TEs to pursue different policy goals such as attracting investment, boosting innovation and mitigating inequality. At the same time, TEs are costly: according to the Global Tax Expenditures Database (GTED), the worldwide average over the 1990-2023 period is 3.7 percent of GDP and 23.0 percent of tax revenue (Redonda et al., 2025). When ill designed, they can be ineffective in reaching their stated goals. They can also be highly distortive and trigger negative externalities. Yet, despite the fact that TEs have similar effects on public budgets as direct spending programmes, the lack of transparency in the TE field is striking, as only 116 out of 218 jurisdictions have reported on TEs at least once since 1990.1 In addition, the quality, regularity and scope of such reports are highly heterogeneous and, in many cases, do not allow to engage in meaningful discussions on the effectiveness and efficiency of TEs. The Global Tax Expenditures Transparency Index (GTETI) is the first comparative assessment of TE reporting covering jurisdictions worldwide. It provides a systematic framework to rank jurisdictions according to the regularity, quality and scope of their TE reports, and seeks to increase transparency and accountability in the TE field. Note that countries are not scored, ranked or compared on the size of revenue forgone reported, nor on the quality of their TE policy as such. This new version of the Companion Paper introduces the GTETI, outlines the updates made to the index since December 2024, and provides an in-depth explanation of its five dimensions and 25 indicators. It also discusses the rationale, scope, methodology, and assumptions underpinning the GTETI assessment process. The Companion Paper explains the limitations and issues users should bear in mind when consulting the index, which is publicly available free of charge on the Tax Expenditures Lab website,  www.taxexpenditures.org.

Revised version, December 2025

Tax expenditures (TEs) are benefits granted through the tax system that lower government revenue and the tax liability of beneficiaries. Governments worldwide use TEs to pursue different policy goals such as attracting investment, boosting innovation and mitigating inequality. At the same time, TEs are costly: according to the Global Tax Expenditures Database (GTED), the worldwide average over the 1990-2023 period is 3.7 percent of GDP and 23.0 percent of tax revenue (Redonda et al., 2025). When ill designed, they can be ineffective in reaching their stated goals. They can also be highly distortive and trigger negative externalities. Yet, despite the fact that TEs have similar effects on public budgets as direct spending programmes, the lack of transparency in the TE field is striking, as only 116 out of 218 jurisdictions have reported on TEs at least once since 1990.1 In addition, the quality, regularity and scope of such reports are highly heterogeneous and, in many cases, do not allow to engage in meaningful discussions on the effectiveness and efficiency of TEs. The Global Tax Expenditures Transparency Index (GTETI) is the first comparative assessment of TE reporting covering jurisdictions worldwide. It provides a systematic framework to rank jurisdictions according to the regularity, quality and scope of their TE reports, and seeks to increase transparency and accountability in the TE field. Note that countries are not scored, ranked or compared on the size of revenue forgone reported, nor on the quality of their TE policy as such. This new version of the Companion Paper introduces the GTETI, outlines the updates made to the index since December 2024, and provides an in-depth explanation of its five dimensions and 25 indicators. It also discusses the rationale, scope, methodology, and assumptions underpinning the GTETI assessment process. The Companion Paper explains the limitations and issues users should bear in mind when consulting the index, which is publicly available free of charge on the Tax Expenditures Lab website,  www.taxexpenditures.org.

Revised version, December 2025

Tax expenditures (TEs) are benefits granted through the tax system that lower government revenue and the tax liability of beneficiaries. Governments worldwide use TEs to pursue different policy goals such as attracting investment, boosting innovation and mitigating inequality. At the same time, TEs are costly: according to the Global Tax Expenditures Database (GTED), the worldwide average over the 1990-2023 period is 3.7 percent of GDP and 23.0 percent of tax revenue (Redonda et al., 2025). When ill designed, they can be ineffective in reaching their stated goals. They can also be highly distortive and trigger negative externalities. Yet, despite the fact that TEs have similar effects on public budgets as direct spending programmes, the lack of transparency in the TE field is striking, as only 116 out of 218 jurisdictions have reported on TEs at least once since 1990.1 In addition, the quality, regularity and scope of such reports are highly heterogeneous and, in many cases, do not allow to engage in meaningful discussions on the effectiveness and efficiency of TEs. The Global Tax Expenditures Transparency Index (GTETI) is the first comparative assessment of TE reporting covering jurisdictions worldwide. It provides a systematic framework to rank jurisdictions according to the regularity, quality and scope of their TE reports, and seeks to increase transparency and accountability in the TE field. Note that countries are not scored, ranked or compared on the size of revenue forgone reported, nor on the quality of their TE policy as such. This new version of the Companion Paper introduces the GTETI, outlines the updates made to the index since December 2024, and provides an in-depth explanation of its five dimensions and 25 indicators. It also discusses the rationale, scope, methodology, and assumptions underpinning the GTETI assessment process. The Companion Paper explains the limitations and issues users should bear in mind when consulting the index, which is publicly available free of charge on the Tax Expenditures Lab website,  www.taxexpenditures.org.

• The European Parliament that emerged after the June 2024 elections is characterized by a high level of diversity and fragmentation.
• More than 200 national and transnational parties are represented, with more than one third of the Members of the European Parliament (MEPs) belonging to very small political parties, with one to three representatives, or have no party affiliation. Ten national parties gather 204 MEPs, dominating political interactions in the EP environment.
• The observed fragmentation enhances diversity and pluralism but also undermines the formation of stable political and ideological networks and coalitions.
• The EPP, the S&D, and Renew, together with the Greens at some (small) distance, form the cluster of the ‘governing majority’. ESN and PfE are located far away from this first cluster. The European Left and the ECR have an intermediate position, showing thematic flexibility and an occasional, selective ad hoc convergence with either cluster in different votes.
• S&D is the most cohesive political group in the EP, followed by the EPP and the RENEW group that also show a high level of cohesion. Large deviations in the voting patterns of their constituent members exist in the ECR and PfE groups.
• Combining our findings with the ones of the Chapel Hill Expert Survey (CHES) on the ideological positions of the EP political groups, we find that the groups’ positions on European integration explain voting alignment better than ideology does. This reinforces a key literature insight that European integration has become perhaps the most influential cleavage in the EP politics — one that increasingly structures legislative behaviour beyond the traditional Left–Right divide.

Read here in pdf the Working paper by Antonis Papakostas, former EU official; Research Associate, ELIAMEP; Spyros Blavoukos, Professor, Athens University of Economics and Business; Senior Research Fellow and Head of the ‘Ariane Condellis’ European Program, ELIAMEP and Georgios Matsoukas, Research Assistant, ELIAMEP.

 

Das DIW Berlin war am 8. Dezember 2025 als Mitveranstalter an der von der Begleitforschung BEWEGT organisierten Tagung zur Wärmewende am EUREF-Campus beteiligt. Die Tagung brachte zahlreiche Beiträge aus Politik- und Sozialwissenschaften zusammen und zeigte deutlich, wie vielfältig die ...

India’s growing footprint in the Indian Ocean is reshaping the partnership with Mauritius. This policy brief explores how Mauritius can balance deepening ties with India while safeguarding strategic autonomy amid rising regional competition.

India’s growing footprint in the Indian Ocean is reshaping the partnership with Mauritius. This policy brief explores how Mauritius can balance deepening ties with India while safeguarding strategic autonomy amid rising regional competition.

India’s growing footprint in the Indian Ocean is reshaping the partnership with Mauritius. This policy brief explores how Mauritius can balance deepening ties with India while safeguarding strategic autonomy amid rising regional competition.

The Transatlantic Periscope is an interactive, multimedia tool that brings together expert commentary, high-quality media coverage, official policy documents, quantitative data, social media posts, and gray literature. It will provide on a monthly basis a summary of the most important news concerning the Greek-US relations, as reflected in the media. Below you will find an overview for October 2025.

On October 2, Kimberly Guilfoyle begun her first official contacts as the new U.S. Ambassador to Greece. The Ambassador visited her Greek counterpart in Washington, D.C., Ambassador Katerina Nasika. According to SKAI, Guilfoyle outlined her plans for Greece, while the Greek Ambassador appeared satisfied with the meeting.

Greece participated in the Association of the United States Army (AUSA) Annual Meeting & Exposition, with a dedicated Hellenic Pavillion, under the auspices of Enterprise Greece and the Hellenic Ministry of National Defense, in collaboration with the American Hellenic Chamber of Commerce. As part of the AUSA Exposition, a high-level event entitled “Investing in Europe’s Defense Future: Opportunities and Innovation in Greece” was held on October 14. The event brought together industry leaders, defense experts, and stakeholders to explore Europe’s evolving defense landscape, with particular emphasis on Greece’s pivotal role in strengthening its defense capabilities. Distinguished speakers, including senior officials from the Hellenic Ministry of National Defense and representatives from U.S. and Greek defense industries, engaged in in-depth discussions on the shared challenges facing European and U.S. defense sectors, highlighting opportunities for enhanced understanding and cooperation.

The Chief of the Hellenic Navy, Vice Admiral Dimitrios Eleftherios Kataras, participated in the commemorative events marking the 250th anniversary of the United States Navy in Philadelphia, Pennsylvania, from 7 to 13 October 2025, where he held meetings with senior U.S. officers, following an invitation from his counterpart, Admiral Daryl Caudle, Chief of Naval Operations of the United States. On October 16, Minister of National Defence of Greece, Nikos Dendias, visited the U.S. Naval War College in Rhode Island. During his visit, the Minister of Defense held discussions with the President, Rear Admiral Darryl Walker, and senior officials of the U.S. Navy.

Finance Minister Kyriakos Pierrakakis met U.S. Treasury Secretary Scott Bessent on the sidelines of the International Monetary Fund (IMF) meetings on October 17, for the second time in six months. During the meeting they reaffirmed the relationship of trust and strategic cooperation between Greece and the United States. Secretary Bessent and Minister Pierrakakis also stressed the need for cooperation on national security issues. Pierrakakis presented Greece’s progress in fiscal stability and investment attraction, and underlined the need to further deepen the economic partnership between Greece and the United States, particularly in the fields of technological innovation and energy infrastructure.

More at: https://transatlanticperiscope.org/relationship/GR#

Council agrees on a mandate to begin negotiations with the European Parliament on new rules for plant reproductive material.

Interview mit Politikwissenschaftler Felix Heiduk

Die neue US-Sicherheitsstrategie hat in Europa Bestürzung ausgelöst. Ein neues Geheimpapier soll nun Pläne zur Spaltung der EU offenbaren. Das Weisse Haus dementiert.

Im Südwesten Kanadas sowie Teilen des US-Bundesstaates Washington herrscht derzeit Land unter. Die Behörden sperrten am späten Mittwochabend (Ortszeit) Autobahnen und riefen die Bevölkerung zur Wachsamkeit auf.

Am Montag einigten sich Vertreter*innen des Europäische Parlament und des Europäischen Rats auf eine Reform wichtiger Nachhaltigkeitsregelwerke. Die EU-Richtlinie zur Nachhaltigkeitsberichterstattung (CRSD), die EU-Taxonomie und die europäische Lieferkettenrichtlinie regeln Berichtspflichten und Verantwortlichkeiten von Unternehmen in Bezug auf ökologische und soziale Auswirkungen ihrer Wirtschaftstätigkeit. In einem sogenannten Omnibuspaket sollen diese Regulierungen vereinfacht und damit Bürokratie abgebaut werden. Das ist ein legitimes Anliegen. Nach der Einigung ist jedoch klar, dass die Regelwerke zum Teil entkernt und die Zahl der Unternehmen, für die sie gelten, massiv reduziert wird.

Am Montag einigten sich Vertreter*innen des Europäische Parlament und des Europäischen Rats auf eine Reform wichtiger Nachhaltigkeitsregelwerke. Die EU-Richtlinie zur Nachhaltigkeitsberichterstattung (CRSD), die EU-Taxonomie und die europäische Lieferkettenrichtlinie regeln Berichtspflichten und Verantwortlichkeiten von Unternehmen in Bezug auf ökologische und soziale Auswirkungen ihrer Wirtschaftstätigkeit. In einem sogenannten Omnibuspaket sollen diese Regulierungen vereinfacht und damit Bürokratie abgebaut werden. Das ist ein legitimes Anliegen. Nach der Einigung ist jedoch klar, dass die Regelwerke zum Teil entkernt und die Zahl der Unternehmen, für die sie gelten, massiv reduziert wird.

Am Montag einigten sich Vertreter*innen des Europäische Parlament und des Europäischen Rats auf eine Reform wichtiger Nachhaltigkeitsregelwerke. Die EU-Richtlinie zur Nachhaltigkeitsberichterstattung (CRSD), die EU-Taxonomie und die europäische Lieferkettenrichtlinie regeln Berichtspflichten und Verantwortlichkeiten von Unternehmen in Bezug auf ökologische und soziale Auswirkungen ihrer Wirtschaftstätigkeit. In einem sogenannten Omnibuspaket sollen diese Regulierungen vereinfacht und damit Bürokratie abgebaut werden. Das ist ein legitimes Anliegen. Nach der Einigung ist jedoch klar, dass die Regelwerke zum Teil entkernt und die Zahl der Unternehmen, für die sie gelten, massiv reduziert wird.

Die europäische Sicherheitsordnung ist dysfunktional und in besonderem Maße von der Krise des Multilateralismus betroffen. Die Organisation für Sicherheit und Zu­sammenarbeit in Europa (OSZE), gegründet als Forum zur Förderung kooperativer Sicher­heit und normenbasierter Zusammenarbeit, ist heute Ausdruck der Schwäche klassischer multilateraler Institutionen. Das Berichtswesen im politisch-militärischen Bereich der OSZE ist ein Seismograph für den Wandel von Normen und Dynamiken in der Staatengemeinschaft. Es zeigt aber auch, dass trotz der Veränderungen auf der politisch-strategischen Ebene und einer Politisierung der offiziellen Agenda die Implementierung von Vereinbarungen auf der technisch-mili­tärischen Ebene der OSZE relativ geräuschlos weiterläuft. Das birgt Chancen, aber auch Risiken, die den 57 teilnehmenden Staaten bewusst sein sollten.

Die Verleihung des Friedensnobelpreises an die Venezolanerin María Corina Machado findet in ihrer Abwesenheit statt. Politologin Claudia Zilla sagt: Die Todesdrohungen gegen sie seien ernst zu nehmen.

Bus rapid transit (BRT) has been widely adopted in emerging economies for its affordability and incremental implementation potential. Yet, many cities are now starting to implement urban rail as a higher-quality mass-transit alternative. This raises the question of the role of existing BRT networks once rail arrives, particularly regarding their land-value effects. This paper examines how BRT-related land value uplift (LVU) evolves after rail begins operation, using Jakarta as a case study. The study analyses residential land values around Transjakarta BRT and MRT Jakarta stations for 2017 (pre-rail) and 2021 (post-rail) using Ordinary Least Squares (OLS) and Geographically Weighted Regression (GWR). The findings reveal that (1) proximity to Transjakarta stations was associated with uplift in 2017, particularly in South Jakarta; (2) by 2021, BRT proximity penalties were reported citywide, especially in the north and east, but also in Central Jakarta; and (3) proximity to MRT Jakarta stations was associated with consistent uplift in 2021, with strongest effects at upgraded interchange nodes in South Jakarta. The timing and spatial coherence of these patterns are consistent with a rail-led substitution mechanism in which urban policy attention and developer actions concentrate willingness-to-pay near rail, while stand-alone BRT corridors increasingly reflect proximity penalties in prices. Policy recommendations include strategic co-location and integration of BRT-MRT stations, mitigating BRT proximity effects with context-sensitive station design, and timely transit-oriented development (TOD) and land value capture (LVC) at integrated hubs to harness value where market signals are strongest.