News Archive

The European Emissions Trading System is a cornerstone of the EU climate policy and its development is set until 2030. However, it is unclear what will happen afterwards. A new Policy Brief compares three different scenarios: Rapid Decarbonization, 2050 Climate Neutral and a Break scenario. The simulations quantify the total benefits of a joint European effort at EUR 248 billion between 2024 and 2050. In the worst-case scenario, total costs could reach EUR 8.629 trillion.

In June, the people of the EU will elect a new European Parliament. The election will have an important impact on the new composition of the European Commission, which will play a key role in shaping the future of European policy. In the new EconPol Newsletter, you will find an overview of our recent policy contributions, which dealing with the future of EU energy, climate, and innovation policy.

Russia’s invasion of Ukraine was a wake-up call for Europe regarding its levels of dependence on the energy and metals fronts, and the associated threats this posed to its competitiveness. Meanwhile, the need to decarbonize the economy has become ever more pressing. What is needed now, is the look ahead on the road towards a decarbonized energy system in a competitive Europe. We would like to discuss with you main challenges and chances and the role that individual members states and the EU should play on this road.

The Russian attack on Ukraine in February 2022 marked not only a turning point (Zeitenwende) for German security policy but also for German foreign economic policy. From a European standpoint, the war served as a painful reminder of how economic dependencies can be used as political leverage, bringing the geopolitical dimension of trade relations and economic interdependencies into public focus. In particular, economic ties with the People’s Republic of China are increasingly being scrutinized.

A joint report by a group of economists from France, Germany, and Italy criticizes the EU's innovation policy and the direction of research and development spending in Europe and calls for changes. The authors argue that the EU is losing the race to innovate, ceding economic prosperity as well as regulatory and geopolitical power. EU research investment is concentrated in the medical technology sector, especially the automotive industry, while Europe is falling behind in growing high-tech sectors such as the digital economy. The continent is caught in a mid-tech trap.