EU Institutions & Policy-Making

The unfair distribution of responsibility for asylum seekers between EU member states under the “Dublin system” has long been a bone of contention in the Common European Asylum System. In April 2024, the EU Parliament approved the controversial migration and asylum package after lengthy negotiations. The rules for illegal immigrants in particular were significantly tightened. However, a balanced and comprehensive migration concept must address very different objectives: EU member states not only want to prevent irregular migration, but also recruit highly skilled workers. The protection of human rights is paramount. In a single market with freedom of movement, it is necessary to go beyond the 27 national immigration policies. A common European migration policy can make immigration rules simpler, less bureaucratic and more transparent for immigrants and the relevant authorities. In addition, a coordinated approach enables better access to education, language courses and employment opportunities for migrants. This facilitates their integration into the European labor market and their social inclusion.

With the war now one of attrition, the Ukrainian economy needs to be strengthened. To this end, a package of measures is needed to incentivize the return of Ukrainian refugees and help businesses invest in Ukraine to create the jobs needed by returning refugees.

The European Union faces several simultaneous threats to its competitiveness: weakness in the industries of the future, insufficient innovation, expensive energy, the need to green its economy, and geopolitical and trade shifts, to name but a few. The EconPol Europe Annual Conference, on whose proceedings this policy brief is based, focused on three aspects that could make a substantial contribution to securing prosperity in the EU, but are in a lamentable state: they all currently fall far short of their potential. These are the power of the single market, the level of its innovation, and the capacity to defend itself. Both the high-level speakers at the conference as well as EconPol and ifo research make clear that some low-hanging fruit are there for the taking, if only the political will were there, a good dose of national chauvinism could be overcome, and an effective communication campaign were undertaken to explain to voters why some measures are not only necessary, but unavoidable. 

This Policy Report assesses various options for EU climate policy utilizing a quantitative trade and environment model. The authors investigate the EU’s 2030 emission reduction target, evaluate the impact of the newly introduced Carbon Border Adjustment Mechanism (CBAM), and analyze different climate coalitions with the EU at their core, including the recently launched “G7-led Climate Club.” Thereby they assess the impact on both national and global emissions accounting for carbon leakage, on international economic competitiveness and changes in the global market shares of the EU, as well as on aggregate income gains and losses.

The idea of a Banking Union emerged in the aftermath of the global financial crisis. Ten years on, two of its three pillars, the Single Supervisory Mechanism and the Single Resolution Mechanism, have proven to be a success with regard to financial integration and stability. In this Policy Brief, experts from the Deutsche Bundesbank explain why, in times of structural change, it is crucial to complete the Banking Union and advance the Capital Markets Union.