Economic Challenges Ahead for the Next European Commission

Key Messages

• Focusing on the “Green Deal” will not be enough in the upcoming legislative period. The new Commission will need a well-thought-out economic policy agenda to respond to the changed geopolitical challenges and to strengthen its competitiveness.
• The EU needs to improve its defense capabilities, overcome international trade frictions, and refine its environmental and climate change policies.
• The EU needs clear policy intervention criteria to deal with supply risks and deepen trade relations with third countries.
• Policy must be upfront regarding the fact that the high levels of investment required for decarbonizing the economy will not be accompanied by an economic boom. 
• The European single market could play a central role in strengthening the EU’s economic power and competitiveness—if it is deepened further.