Past Event

Trends of the 21st century global economy and implications for Europe

Does the EU have all the necessary tools to deal with the trends of 21st century in global economy?

Date: October 26, 2016, 12:30 pm Topic: Digital economy and innovation

summary

SEE BELOW FOR THE VIDEO, AUDIO AND EVENT MATERIALS

 At this event the main trends and challenges at the global and EU level have been outlined by the panelists. Mikhail Fridman recalled that the main global challenges in the past used to be related to energy resources, implying the need for conquering and defending territories. This idea is today steadily disappearing and the developed world is moving towards the exploitation of intellectual capacity. It is striking to look at the sector in which the top companies by market capitalization operate: the power of technologies outpaced that of natural resources. This applies also to emerging markets: as far as infrastructure and resource exploitation was concerned, China, for instance, performed well thanks to a centralized system. This principle, however, does not apply to intellectual and social capital which require a long-standing development of rule of law, competition rights, intellectual property rights and so on.

Marco Buti looked back at the main expectations 20 years about future economic developments: a globalization of capital rather than labor; a skill-biased technological progress that would have displaced unskilled workers; the faith in multilateral solutions; the assumption that sharing (especially monetary) sovereignty would have brought convergence of social preferences and mutual trust; and that an inclusive welfare model in the EU would have protected from inequality. However, the actual developments have shown to be quite different. The globalization of people is now more pressing than that of capital. Globalization and technological change have negatively impacted mostly the middle class, and this trend will be accentuated even more by recent advancements in robotics. The current populist tendency is indeed addressing the median voter and her malcontent. Multilateral solutions and sharing sovereignty can be disputed since the recent economic crisis, as does the EU welfare model. According to him, six are now the main trends: low productivity growth, demographic transition, new innovation patterns, rising inequality, risk of fragmentation and widespread lack of trust. Looking at the governance levels, there are three main sets of responsibilities: the pre-market level (i.e. the endowments/resources), the market liberalization or integration and the post-market level, embodied by the tax and welfare system. Currently, only the second one is an EU prerogative, while the other two are up to National States. According to MB, this distinction of levels is not politically sustainable in the long term, and a rethinking of the responsibilities is needed.
Christian Kastrop contended whether the EU is fit for the megatrends of this century. Macro policies have become more supportive, but demand is still weak, unemployment high, financing for firms is still a problem, the barriers to intra-EU mobility remain too high and the level of investment is still below pre-crisis levels. GDP gains from EU structural reforms can be large, but more of them are needed, as well as a proper Digital Single Market to unleash the potential of the Industry 4.0 and a single market for services. Aggregate demand is weak as does the gross capital formation, while non-performing loans are still too high, hampering demand. Public investment cuts are needed, but there is a quality issue in selecting them. Regulatory burdens are still too high in Europe, e-commerce remains mostly domestic and the ICT capital stock gap with the US is still persistent. The quality of impact assessment and of ex-post evaluation should be increased, as well as the recognition of professional qualification in order to increase labor mobility, also for migrants.

Event Notes by Enrico Nano

Video and audio recordings


 

event materials

Perspectives of the world economy in the era of unprecedented çartindividual creativity – The Jerusalem Post 05/18/2016

Searching for growth in an unstable global-economy -The Milken Institute Review

Schedule

Oct 26, 2016

12:30-13:00

Check-in and lunch

13:00-13:45

Panel discussion

Chair: Maria Demertzis, Deputy Director

Marco Buti, Head of Cabinet, Commissioner Paolo Gentiloni

Mikhail Fridman, Chairman, LetterOne

Christian Kastrop, State Secretary, Federal Ministry of Justice and Consumer Protection, Germany

13:45-14:30

Audience Q&A

14:30

End

Speakers

Marco Buti

Head of Cabinet, Commissioner Paolo Gentiloni

Maria Demertzis

Deputy Director

Mikhail Fridman

Chairman, LetterOne

Christian Kastrop

State Secretary, Federal Ministry of Justice and Consumer Protection, Germany

Location & Contact

Bruegel, Rue de la Charité 33, 1210 Brussels

Matilda Sevón

[email protected] +32 2 227 4212

Read about event
 

Past Event

Past Event

Monetary policy in the time of climate change

How does climate change influence monetary policy in the eurozone? What potential monetary policy measures should be taken up to address climate risks?

Speakers: Cornelia Holthausen, Jean Pisani-Ferry and Guntram B. Wolff Topic: Green economy, Macroeconomic policy Date: October 20, 2021
Read about event
 

Past Event

Past Event

A hybrid future of work

Addressing employers’ and employees’ challenges.

Speakers: Julie Brophy, Joost Korte, Laura Nurski, Renske Paans and Alex A. Saliba Topic: Digital economy and innovation, Inclusive growth Date: October 19, 2021
Read about event More on this topic
 

Past Event

Past Event

What is the link between biodiversity loss and financial instability?

Biodiversity loss impacts financial stability. How big is the risk of biodiversity loss for financial institutions?

Speakers: Sylvie Goulard, Romain Svartzman, Guntram B. Wolff and Michael Wilkins Topic: Banking and capital markets Date: October 5, 2021
Read about event More on this topic
 

Past Event

Past Event

How to strike the right balance between the three pillars of the pension system?

In this event panelists will discuss the future of European pension schemes.

Speakers: Elsa Fornero, Svend E. Hougaard Jensen and Suvi-Anne Siimes Topic: Macroeconomic policy Date: September 23, 2021
Read about event More on this topic
 

Past Event

Past Event

Academic lecture: International technology competition

Bruegel Annual Meetings, Day 3 - On the final day of the Annual Meetings, our Director Guntram Wolf sits with Keyu Jin to discuss international competition policy.

Speakers: Keyu Jin, J. Scott Marcus and Guntram B. Wolff Topic: Digital economy and innovation Location: Palais des Académies, Rue Ducale 1, Brussels Date: September 3, 2021
Read about event
 

Past Event

Past Event

Conference on the Future of Europe: envisioning EU citizens engagement

Bruegel Annual Meetings, Day 3 - Panellists will discuss different options and what they may entail while revisiting the debates on the future of Europe at national and EU-level that have been conducted thus far.

Speakers: Caroline de Gruyter, Kalypso Nicolaïdis, Niclas Poitiers and György Szapáry Topic: European governance, Macroeconomic policy Location: Palais des Academies, Rue Ducale 1 Date: September 3, 2021
Read about event
 

Past Event

Past Event

Sustainable finance

Bruegel Annual Meetings, Day 3 - In this session on the final day of the Meetings, our panelists will discuss the future of finance and its sustainability.

Speakers: Maria Demertzis, Alberto De Paoli, Pierre Heilbronn and Alexandra Jour-Schroeder Topic: Banking and capital markets, Green economy Location: Palais des Académies, Rue Ducale 1, Brussels Date: September 3, 2021
Read about event More on this topic
 

Past Event

Past Event

The role of the EU's trade strategy for an inclusive and sustainable recovery

Bruegel Annual Meetings, Day 3 - We are delighted to welcome Valdis Dombrovskis, Executive Vice President of the European Commission for An Economy that Works for People to talk about Europe's trade strategy.

Speakers: Valdis Dombrovskis, Alicia García-Herrero and Guntram B. Wolff Topic: Macroeconomic policy Location: Palais des Academies, Rue Ducale 1 Date: September 3, 2021
Read about event More on this topic
 

Past Event

Past Event

Navigating a more polarised world: policy implications

Bruegel Annual Meetings, Day 2 - Are we entering a new age in the relationship between international economics and global politics? Is Europe well-equipped for this new world?

Speakers: Hélène Rey, Jean Pisani-Ferry, Adam Tooze and Sabine Weyand Topic: Global economy and trade Location: Palais des Academies, Rue Ducale 1 Date: September 2, 2021
Read about event
 

Past Event

Past Event

Blending physical and virtual: shaping the new workplace

Bruegel Annual Meetings, Day 2 - This panel will cover the changes the COVID-19 pandemic made to our workplaces, and what to expect in the near future.

Speakers: Nicholas Bloom, Michael Froman, Mario Mariniello, Sara Matthieu and Luca Visentini Topic: Inclusive growth, Macroeconomic policy Location: Academy Palace Date: September 2, 2021
Read about event
 

Past Event

Past Event

Brave new digital industrial policy

Bruegel Annual Meetings, Day 2 - In this session our speakers will discuss innovation and digitalisation.

Speakers: Francesca Bria, Kerstin Jorna, Aura Salla, Marietje Schaake and Reinhilde Veugelers Topic: Digital economy and innovation, Inclusive growth Location: Palais des Académies, Rue Ducale 1, Brussels Date: September 2, 2021
Read about event More on this topic
 

Past Event

Past Event

Monetary and macroeconomic policies at the crossroads

Bruegel Annual Meetings, Day 2- In this session we would like to discuss monetary and macroeconomic policies after Covid-19.

Speakers: Grégory Claeys, Per Callesen, Gita Gopinath, Jorge Sicilia Serrano and Lawrence H. Summers Topic: Banking and capital markets Location: PALAIS DES ACADEMIES, RUE DUCALE 1 Date: September 2, 2021
Load more posts