How to Deal with the European Energy Crisis? Core Challenges for the EU

The current energy crisis in Europe is bringing about profound changes that can accelerate the transition to a more sustainable and secure energy system. Yet, it is a supply shock of unprecedented scale and complexity, most noticeable in the markets for natural gas, coal, and electricity. Winter promises to be tough - especially for low-income households that use gas for heating and for small and medium-sized industrial companies. Short-term policy measures aim to shield consumers from the effects of the crisis: these include gas and electricity price brakes and energy subsidies for households. At the same time, many governments in the EU are now trying to increase or diversify oil and gas supplies and also accelerate structural change. The articles in the “Policy Debate of the Hour” section of this issue of EconPol Forum examine the causes of the crisis, analyze its effects, critically assess the policies already in place, and propose new short- to medium-term energy policies to better manage it and strengthen the EU’s systemic resilience to energy market volatility.

In our evidence-based policy evaluation section, an article offers insights into the revenue implications of a global effective minimum tax, followed by an international comparison of the effects of pandemic severity and the stringency of government restrictions on work from home in the “Institutions across the World” section. Last but not least, in this issue of the EconPol Forum, we examine the success of the social integration of Syrian refugees in Germany as part of a Big Data study.