The economic effects of carbon pricing Carbon pricing policies are critical tools to mitigate the effects of climate change. Diego Känzig and Maximilian Konradt examine the impact of European emission reduction policies A fight for every job: decarbonising Europe’s cars Decarbonising is key to achieving climate neutrality in the EU by 2050. Bela Galgóczi argues that the automotive industry’s ability to manage the transformation will have implications for millions of Europeans The manufacturing jobs boom that isn’t Niclas Poitiers argues that the US Inflation Reduction Act shows that massive subsidies are not leading to massive manufacturing job creation

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Lessons from the Germany shock Harald Fadinger, Philipp Herkenhoff and Jan Schymik evaluate the German labour market reforms of the early-2000s and the consequences of uncoordinated economic policies in a currency union Adapting the EU AI Act to deal with generative AI J Scott Marcus writes that the European Union’s draft AI Act already needs to be revised to account for the opportunities and harms of generative AI
Can Europe make its space launch industry competitive? Europe is falling behind in the global commercial space launch sector. Francesco Nicoli, Kamil Sekut, Giuseppe Porcaro argue that a new programme may not be enough to fix the shortcomings The trade effects of EU adequacy decisions Digital trade is increasing rapidly. Martina Ferracane, Bernard Hoekman, Erik van der Marel and Filippo Santi consider how the EUs approach to data protection impacts digital trade
The impact of artificial intelligence on growth and employment Ethan Ilzetzki and Suryaansh Jain discuss the results of the May 2023 CfM-CEPR survey, where panellists were asked to predict the impact of AI on the global economy Rebooting the European Union’s Net Zero Industry Act Simone Tagliapietra, Reinhilde Veugelers and Jeromin Zettelmeyer argue the EU should reboot the proposal and refocus objectives, improve its governance and add financial incentives to ensure implementation
Navigating uncertainty Petros Fassoulas and Aimée Duprat-Macabies stress the importance of social and green policies to build a just and resilient European economy Citizens protest against compulsion and coercion Patrick van Schie discusses the provincial elections in the Netherlands, and examines whether this might be part of a broader trend among voters in Western democracies
How will higher carbon prices affect growth and inflation? Carbon pricing is a central instrument in the EU’s fight against climate change. Claus Brand et al use macroeconomic models examine what higher prices for carbon emissions will do to growth and inflation The value added of CBDCs: a view from the euro area Maria Demertzis and Catarina Martins argue that the ECB is uniquely positioned to help create the global standard, and in the process to help protect the EU’s global strategic interests
Sanctions against Russia will worsen its economic prospects Sanctions, coming on top of longstanding domestic shortcomings, are gradually weakening Russia. Elina Ribakova argues countries opposing Russia’s war on Ukraine should keep up the pressure EU's digital competition law can give users more control Christophe Carugati believes that the EU’s Digital Markets Act gives regulatory authorities another chance to tackle the difficult issue of user consent for data processing
Mobilising transition finance Many jurisdictions now require companies to demonstrate ‘climate alignment’. Alexander Lehmann says investors need tools to evaluate whether transition plans are credible Developing Europe’s policy towards China Ursula von der Leyen wants to de-risk, not de-couple trade with China, arguing that trade can remain strong as long as the EU can increase its resilience in some strategic sectors Climate risks and global value chains Extreme weather events will become more frequent as global temperatures rise. Rikard Forslid and Mark Sanctuary analyse the impact of the 2011 Thailand flood on Swedish firms COVID-19 and GVCs Laura Lebastard, Marco Matani and Roberta Serafini examine the impact of COVID-19 supply disruptions on exporters in global value chains The fiscal case for Europe to ‘go Dutch’ on defence Hanno Lustig argues that there is a clear self-interested fiscal rationale for Europe to invest more in its own defence, starting by stepping up its aid to Ukraine How Europe should answer the US Inflation Reduction Act Kleimann et al argue that the EU should respond to the Inflation Reduction Act by pursuing broader aims such as a speedy decarbonisation and a broader development policy Is Europe failing on import diversification? Lennard Welslau and Georg Zachmann find that despite a goal of economic self-reliance, the EU’s imports are generally sourced from an increasingly limited set of suppliers Headwinds persist Maarten Verwey and Oliver Dieckmann discuss the Commission’s Winter 2023 Economic Forecast and describe how the EU economy is set to escape recession Has the DMA got it wrong on app stores? Bertin Martens argues that the app-store obligations in the EU’s Digital Markets Act are unlikely to weaken the market power of Apple and Google
New EU fiscal rules and governance challenges Guido Lorenzoni, Francesco Giavazzi, Veronica Guerrieri and Leonardo D’Amico argue for a new system of fiscal rules that goes in the direction of a political and fiscal union Achieving a full banking and capital markets union Don’t look only to Brussels to increase the supply of safe assets in the European Union, Francesco Papadia and Heliodoro Temprano Arroyo argue
If it doesn’t trade, is it really marketable debt? Rebecca Christie says Europe’s bond markets are essential infrastructure, just like the power grid How to fix the EU’s proposed Data Act The proposed EU Data Act on industrial and non-personal data should be simpler and clearer, or the benefits could be limited, Bertin Martens argues
To cap or not to cap Simone Tagliapietra, Georg Zachmann and Jeromin Zettelmeyer argue that a EU gas price cap would be counterproductive, but the reasons why it is supported widely must be addressed Pulling the curtain on Russian myth making Nikolai Levin writes behind the Kremlin’s threats and bluster lies a broken country that has never really made it to the 20th century, let alone the 21st
The European Climate Law and the ECB The EU has adopted the European Climate Law. Frank Elderson considers how the European Central Bank will be affected Does the EU need an energy crisis fund? Simone Tagliapietra, Georg Zachmann and Jeromin Zettelmeyer argue that an EU energy fund is justified, but for different reasons than commonly assumed, with implications for the fund’s design Enlarging and deepening Franz Mayer, Jean Pisani-Ferry, Daniela Schwarzer and Shahin Vallée consider the EPC and argue that it could act both as a bridge to an eventual larger EU and as a framework for continental-scale partnership A union that stands strong together Ursula von der Leyen, in her annual State of the Union speech, outlines the European Union’s main political priorities for the next working year Code of coercion Filip Medunic says the EU needs a sanctions doctrine – a framework to set out the goals, means, and risks for the use of economic measures The grand energy bargain Europe needs to defeat Putin Ben McWilliams, Simone Tagliapietra and Georg Zachmann argue that deeper integration and accelerated investment will allow the EU to push the transition to cleaner and more affordable energy The social dimension of the climate transition Mehtap Akgüç, Kalina Arabadjieva and Béla Galgóczi outline some of the key labour and social effects of the EU’s Fit for 55 climate package and potential responses that should be considered The role of competition Georg Zachmann looks at the role of competition in the transition to climate neutrality, and argues for the regulation of production to best serve European consumers Regulating the digital economy Christophe Carugati says overlapping rules in the digital economy requires cooperation between national regulatory authorities to ensure consistency and effective enforcement Fiscal support and monetary vigilance Olivier Blanchard and Jean Pisani-Ferry consider the economic policy implications of the Russia-Ukraine war for the European Union Is the EU Chips Act the right approach? Niclas Poitiers and Pauline Weil argue that measures to safeguard semiconductor supplies proposed in the European Chips Act could prove to be wrongly focused and could tip over into harmful protectionism
EU economic resilience tested The EU has revised growth forecasts down. Maarten Verwey, Laura Bardone and Kristian Orsini say the Russian invasion is exacerbating pre-existing headwinds to economic growth REPowerEU: will the EU really make it work? Simone Tagliapietra believes acting together, the European Union can optimise its response to the energy crisis in all scenarios, but each country will have to make concessions A new Thessaloniki offer Georgia, Moldova, and Ukraine have aspirations to join the European Union. Marek Dabrowski believes the EU should grant candidate status as part of a long-term stabilisation strategy

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Decarbonisation of the energy system Zachmann et al highlight that the current national energy and climate plans (NECPs) of EU countries are insufficient to achieve a cost-efficient pathway to EU wide climate neutrality by 2050 The economic policy consequences of the war Jean Pisani-Ferry says the Ukraine war will have significant impacts on the EU, arising from oil and gas supply shocks, energy independence measures, the inflow of refugees and boosted defence spending The climate transition and its social dimension Mehtap Akgüç, Kalina Arabadjieva and Béla Galgóczi discuss the employment and distributional aspects of climate change mitigation in the European Union A European climate fund or a green golden rule Zsolt Darvas argues that spending and borrowing via a non-redistributive EU climate fund or under a green golden rule would be treated the same in the EU’s fiscal framework Opaque and ill-defined Poor governance and transparency creates a risk that competition in the single market will be weakened. Niclas Poitiers and Pauline Weil argue that an overhaul of Europe’s IPCEI subsidy framework is needed The Global Gateway: a real step towards a stronger Europe in the world Disappointment at the lack of fresh cash from EU global connectivity strategy is short-sighted. Simone Tagliapietra says Europe supports global development more than any other country in the world The ‘gatekeeper’ dilemma The scope of the Digital Markets Act has emerged as one of the most contentious issues in the regulatory discussion. Mario Mariniello and Catarina Martins assess which companies will be caught by the DMA Big tech reset? EU court dismisses Google appeal. Renaud Foucart believes the knock-on effects from this ruling could be enormous as tech giants consider their business models Strengthening the soul of our union In the face of complex challenges Ursula von der Leyen emphasises the Union’s unity and how Europe can become a more formidable actor on the global stage Why technology shapes European power Ulrike Franke and José Ignacio Torreblanca consider the role of technology in shaping international relations and argue that the EU needs to engage with the geopolitical implications of technology Public finances in the EU COVID-19 has led to governments borrowing at unprecedented levels. Mehmet Burak Turgut discusses EU government finances as well as relevant policy priorities to ensure healthier public finances in the future Hydrogen development strategies: a global perspective The EU, UK, US, China and Japan all expect hydrogen to play a significant role in the decarbonisation of their economies. Alicia García Herrero, Simone Tagliapietra and Victor Vorsatz appraise their approaches The EUs carbon border mechanism and the WTO André Sapir argues that to avoid any backlash, the European Union should work with other World Trade Organization members to define basic principles of carbon border adjustment mechanisms Europe’s climate moment of truth Simone Tagliapietra writes that with Fit for 55 Europe is the global first mover in turning a long-term net-zero goal into real-world policies, marking the entry of climate policy into the daily life of all businesses Workers can unlock the AI revolution Mia Hoffmann and Laura Nurski argue that employers and AI developers should ensure new technologies work for workers by making them trustworthy, easy to use and valuable in day-to-day work The Dutch elections and ‘populism’ Fleur de Beaufort and Patrick van Schie interpret the results of the Dutch elections, and consider the growth in the support for the alternative 'populist' parties Quo vadis, Swiss-European Union relations? Switzerland’s decision to abandon InstA talks with the EU will have widespread consequences. Stefanie Walter says future relations now depend both on the EU’s response and on domestic developments AI in the workplace Laura Nurski says that job quality measures should be included explicitly in health and safety risk assessments for workplace artificial-intelligence systems Pricing of carbon within and at the border of Europe The EU has announced carbon neutrality by 2050 as the key target of the Green Deal. Schmidt et al. argue that the EU should consider a border carbon adjustment mechanism to incentivise other countries to join The Janus’ face of Europe’s new social rulebook The COVID pandemic has had a huge effect on employment prospects in the EU. László Andor and Robin Huguenot-Noël discuss the Social Pillar Action Plan’s long-term targets Vaccine diplomacy: soft power lessons from China and Russia? Michael Leigh discusses the rocky start to the EU’s vaccination rollout that has allowed Moscow and Beijing to score political points in the Balkans and Central and Eastern Europe Is the EU’s investment agreement with China underrated? Uri Dadush and André Sapir argue that the CAI binds China to an international treaty that includes improvements on subsidies, SOEs, technology transfer and transparency Navigating through hydrogen Ben McWilliams and Georg Zachmann argue that policymakers must address the need to displace carbon-intensive hydrogen with low-carbon hydrogen to meet the 2050 emissions target Much ado about nothing? Fraser Cameron considers the political and economic context of the EU-China investment deal What the British government needs to do to get Brexit done post-COVID Patrick Minford considers the options available to the UK government to ensure a successful Brexit The end of the beginning Democratic Europe has come under pressure. Benjamin Zeeb considers the lessons that Europe can learn from the American experience to ensure a peaceful completion of the European project Will 2021 in CEECs look better than 2020? Mehmet Burak Turgut is optimistic about CEE growth in 2021 following the successful development of COVID vaccines Regulating big tech The EU’s proposed Digital Markets Act will attempt to control online gatekeepers by subjecting them to a wider range of upfront constraints. Julia Anderson and Mario Mariniello consider the implications The geopolitics of the European Green Deal Mark Leonard, Jean Pisani-Ferry, Jeremy Shapiro, Simone Tagliapietra and Guntram Wolff consider the geopolitical consequences of the European Green Deal Why the Google-Fitbit decision is appropriate Pierre Régibeau believes that the discussion should now move from the realm of speculation to the sphere of evidence Working from home is revolutionising the UK labour market Shivani Taneja, Paul Mizen and Nicholas Bloom discuss a recent survey, and it seems certain that many workers will continue to work from home long after the end of the pandemic What do vaccination passports mean for Europe? Fundamental freedoms should not be limited unnecessarily, say Lionel Jeanrenaud, Mario Mariniello and Guntram Wolff. Nevertheless, vaccination passports have to be considered The double irony of the new UK-EU trade relationship The TCA signed between the EU and the UK goes against UK efforts to avoid being economically disadvantaged. Tracking the evolution of the relationship can help in understanding this, André Sapir argues The Digital Markets Act: a translation Cristina Caffarra and Fiona Scott Morton argue that the European Commission's proposal is progress, but there are issues that need to be addressed Has the EU squandered its coronavirus vaccination opportunity? The EU’s purchases of frontrunner coronavirus vaccines are insufficient. J Scott Marcus says the shortfall could have healthcare consequences and might delay economic reopening Digital platforms and antitrust A proper regulatory framework is needed to relieve concerns about online platform competitive practices, argue Geoffrey Parker, Georgios Petropoulos and Marshall Van Alstyne They don’t need to be green The EU needs a liquid market in bonds to fund the recovery programme. Alexander Lehmann argues green bonds would complicate matters Freedom during the COVID-19 crisis Fleur de Beaufort and Patrick van Schie consider the measures taken to combat the pandemic and how state intervention can be reigned back New challenges to transfers of personal data Scott Marcus considers the recent CJEU judgement and the impact on data transfers between the European Union and the United States Deeper recession, wider divergences Maarten Verwey and Björn Döhring consider the Commission’s Summer 2020 interim forecast, and argue that a rapid response at the EU level is needed to minimise hysteresis An uncompromising budget The EU response to the COVID-19 crisis has so far been weak. Zsolt Darvas considers the Next Generation EU proposal, and feels that an opportunity has been missed to reform the EU budget A small step forward Grégory Claeys argues that the EU's SURE plan to safeguard employment is too modest to have a significant impact the COVID-19 crisis The EU’s financial readjustment Rebecca Christie and Thomas Wieser consider the EU post-Brexit reckoning with financial markets, and argue that time is of the essence to create highly integrated, functional and fair financial and capital markets Big data versus COVID-19 All available resources need to be brought to bear on COVID-19. J Scott Marcus asks to what extent can digital technology help, what risks are there in using big data, and what policies can mitigate any limitations that these risks impose? A European carbon border tax: much pain, little gain Georg Zachman and Ben McWilliams argue that the EC should not make the implementation of a carbon border adjustment mechanism into a must-have element of its climate policy A trillion reasons to scrutinise the Green Deal Investment Plan The European Commission has revealed its €1 trillion investment plan for the European Green Deal. Grégory Claeys and Simone Tagliapietra argue that more must be done to unleash the ‘green investment wave’ A Green Deal will not work without refocusing productivity Karl Aiginger argues that a welfare-oriented Green Deal needs to focus on resource and energy productivity, not raising labour productivity A new EU level playing field instrument EU competition policy appears to be ill-equipped to deal with the challenges raised by Chinese state capitalism. Thorsten Kaeseberg discusses some of the gaps in the EU’s economic toolbox, and identifies potential goals and design Developing a coherent EU competition policy Mathew Heim asks how can European competition law address market distortions caused by state-owned enterprises? The European Green Deal needs a reformed fiscal framework Europe needs to change behaviour and technologies. Grégory Claeys argues that to do so the EU needs to adapt its fiscal rules to encourage the transition
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