Analyses

The EU emissions trading system works but most industrial decarbonisation is still to come

Survey evidence shows regulated manufacturers respond to the EU carbon price, but want reassurance on policy direction and stringency

Debora Revoltella and Fotios Kalantzis

Calls for EU financial-rule simplification should not spill over into lower standards

EU banking rules are under pressure for simplification, but reforms should cut complexity without weakening financial safeguards

Jesper Berg and Hans Geeroms

Less focus on poverty reduction? An evaluation of the EU 2028-2034 development aid plan

European Union development aid is emphasising poverty reduction less and directing attention to other geopolitical priorities

Costanza Greppi Maturana and Niclas Poitiers

Stack battles: the US-China artificial-intelligence rivalry is moving beyond chips alone

China is challenging US leadership in both AI hardware and software, with Europe unlikely to catch up

Alicia García-Herrero and Bertin Martens

Should the European Central Bank slow down quantitative tightening?

The ECB could slow down QT in response to currently tight financial conditions, but should communicate its intentions with care

Mahmood Pradhan

Buyer beware: a taxonomy of the risks of international carbon credits

As the EU reintegrates international carbon credits into its climate framework, understanding the associated risks is essential

Maximilian Fuchs, Thomas Mramor and Georg Zachmann

Europe must prepare for a possible oil supply crunch

With falling commercial and emergency oil reserves, Europe’s oil price shock could soon become a volume crisis – a scenario for which it must prepare

Thomas Mramor, Alexander Roth, Simone Tagliapietra and Georg Zachmann

Hungary has room to streamline public spending without hurting growth

Cutting some state operating and economic spending to the average of its regional peers could save Hungary more than four percent of GDP

Zsolt Darvas

How to secure the benefits of an EU-wide incorporation regime

An EU Inc. plan for a common company regime should become more targeted and be underpinned by better system infrastructure

Fiona M. Scott Morton and Reinhilde Veugelers

Europe needs a strategy to close the artificial intelligence compute gap

In its bid to compete with the US on AI, Europe could learn from both China and from the classic Airbus industrial policy case

Alicia García-Herrero and Bertin Martens

Revamping Europe’s chips strategy: indispensability, not self-sufficiency

In revising the European Chips Act, the EU should seek to make itself an indispensable partner in the semiconductor value chain

Niclas Poitiers and Tillman Schenk

Understanding the global clean tech manufacturing slowdown

Benjamin Bjerkan-Wade, Hannah Hess, Marie Jugé, Ugnė Keliauskaitė, Kate Larsen, Ben McWilliams, Hannah Pitt and Simone Tagliapietra

The growing impact of political risk on financial markets

Risk associated with broad political changes can be quantified with a globally priced factor common across stocks, bonds and currencies

Vito D. Gala, Giovanni Pagliardi, Ivan Shaliastovich and Stavros Zenios

Financing the EU budget: an assessment of five proposals for new resources

Four of five new European Union budget ‘own resources’ proposed by the European Commission should go ahead with changes; the fifth should be scrapped

Zsolt Darvas and Roel Dom

Could a Hormuz toll solve the oil crisis and who pays?

With a return to the pre-Iran conflict energy status quo unlikely, a Hormuz toll may be the next best option – but Gulf states would pay the most

Guntram B. Wolff

How Europe should respond to the Iran gas shock – and how it shouldn’t

The European Union should act now to head off growing impacts from the Iran conflict on gas prices and availability

Ugnė Keliauskaitė, Ben McWilliams, Thomas Mramor, Alexander Roth, Simone Tagliapietra and Georg Zachmann