The Sound Of Economics

The EU has been using trade policy to export its standards on competition policy, environmental protection and human rights among other policy areas, which has famously become known as ‘The Brussels Effect’. But this could eventually get in the way of trade deal negotiations. For example, the EU-Mercosur Trade Agreement is bogged down by Amazon deforestation concerns since 2019.  But can the EU afford to prolong the trade deal negotiations with Latin America countries, given Latin America’s increasingly important role in global economics, from the reconfiguration of the global supply chains to being a key component for critical raw materials, which is a strategic emerging consumer’s market and an indispensable natural resource for the planet? In this episode of The Sound of Economics, Giuseppe Porcaro invites Alan Beattie, Alicia García-Herrero and David Kleimann to discuss the state of play of EU-LATAM trade relations and how the EU should proceed to showcase its commitment to trade openness and economic e

At the start of the Covid-19 crisis, the European Commission suspended the fiscal rules that applied to member states to allow countries to use fiscal policy domestically to deal with health emergency. This suspension was further extended when Russia invaded Ukraine and cause a great energy crisis in the European Union. The suspension is now meant to be lifted in 2024 when the rules will come back into full operation. In this three-year period, the European Commission has also tried to update and modernise the fiscal framework in a proposal they put forward in April 2023. In this episode of The Sound of Economics, Maria Demertzis invites Jeromin Zettelmeyer and Zsolt Darvas to evaluate this proposal. As they present in a recent paper, in this framework, medium-term fiscal adjustment requirements would be determined by country-by-country debt sustainability analysis (DSA), the 3 percent deficit ceiling and simple rules requiring minimum deficit and debt adjustments (‘safeguards’). These elements are controv

On 13 September 2023, Ursula von der Leyen, President of the European Commission, delivered this year’s State of the Union address before the European Parliament. This is the last address of her current mandate. In this episode of The Sound of Economics, Giuseppe Porcaro hosts André Sapir, Simone Tagliapietra and Jeromin Zettelmeyer to evaluate von der Leyen’s address regarding the European Green Deal, industrial policy, economic security, Ukraine and more.

European banking supervision has developed and matured by moving from being predominantly rules-based and heavily codified, to becoming more risk-focused and adaptable to rapidly changing economic circumstances.  Backstage at the Bruegel Annual Meetings 2023, Giuseppe Porcaro and Nicolas Véron speak with Sharon Donnery, Deputy Governor, Central Bank of Ireland, to discuss the evolution of European banking supervision, the increasingly central role of risk assessment, as well as the prospects for the near future.

This year’s BRICS annual summit delivered the headline announcement of the group’s expansion: in January 2024, Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates will join the grouping of Brazil, Russia, India, China, and South Africa . In this episode of The Sound of Economics, Giuseppe Porcaro and Alicia García-Herrero are joined by Jim O’Neill, who coined the acronym BRIC, to discuss how the grouping has developed since its formation in 2009, the reasons behind this new expansion and the consequences it may have on the global economic and geopolitical landscape.

China has become a world leader in making and buying Electric Vehicles (EV), somehow under the radar. In fact, China today produces 54% of total EVs globally and with an even higher share for EV batteries.  How did China get there? In this episode of The Sound of Economics, Giuseppe Porcaro sits down with Alicia García-Herrero and Zeyi Yang to explore China’s EV industry. Together they discuss the country’s rapid rise in the market, its advancement on battery technology, as well as geopolitical implications with a growing chorus calling for de-risking. This episode is part of the ZhōngHuá Mundus series of The Sound of Economics. ZhōngHuá Mundus is a newsletter by Bruegel, bringing you monthly analysis of China in the world, as seen from Europe. Sign up now to receive it in your mailbox!

Artificial Intelligence (AI) is changing the international balance of power. In the field of defence, beyond weaponry, AI is instrumental for various Intelligence, Surveillance and Reconnaissance (ISR) tasks at the strategic, operational and tactical level, as well as automated reasoning, logistics, training, and much more. In this episode of The Sound of Economics, Giuseppe Porcaro invites Sarah Shoker to discuss the evolving role of AI in defence.  They highlight AI's role in foreign policy decision-making and prediction, but stress that balanced human judgment is crucial due to AI's limitations. Speakers urge caution in AI integration, complementing, not replacing, human reasoning. International cooperation for responsible AI norms and regulations is also needed.

The forced mass-scale shift to work-from-home during the COVID-19 pandemic has changed both employees’ and employers’ perspectives on work location, demonstrating that more jobs could be done remotely than we could have imagined before.   Since we emerged from the pandemic, there is an ongoing debate about a full-scale return to office, as well as hybrid and remote work.   Employee surveys across different countries consistently indicate that employees prefer to remain working remotely and do not want to return to the office full time. At the same time, many companies are trying to bring their employees back to the office. In this episode of The Sound of Economics, Giuseppe Porcaro speaks to Tatiana Andreeva about her latest work researching employers’ experience of working fully remotely during the pandemic and their approaches to returning to the office following the pandemic.  Relevant publication: Mulcahy, D., and T. Andreeva (2023) ‘Employer perspectives on employee work location: collaboration, cul

The Sound of Economics is bringing you a summer 2023 special series, 'Read with Bruegel.' In this series, we have the pleasure of hosting renowned authors who will discuss various economic issues based on their insightful books. We hope this conversation will inspire you to explore their books and offer you some food for thought during your summer break. In this episode of the series, Nicolas Véron welcomes Ulrich Bindseil to discuss his latest book ‘Central Banking before 1800: A Rehabilitation’. Véron and Bindeil ponder the definition of central banking, whilst analysing pre-1800 central banking and the role of numerous other institutions across the European continent. They discuss the long and colourful history of central banking before 1800, from which important lessons for today's debates can be drawn.

The Sound of Economics is bringing you a summer 2023 special series, 'Read with Bruegel.' In this series, we have the pleasure of hosting renowned authors who will discuss various economic issues based on their insightful books. We hope this conversation will inspire you to explore their books and offer you some food for thought during your summer break. In this episode of the series, Simone Tagliapietra welcomes Daniel Yergin to discuss his book ‘The New Map: Energy, Climate, and the Clash of Nations’.  The global energy order is being shaken by climate change, the COVID-19 pandemic, Russia’s invasion of Ukraine and the rising tension between the West and China over critical raw materials. The discussants explore how these developments shape global supply chains, international co-operation and the course of technological advancement. They delve into what energy security might entail in different parts of the world and how varying national priorities can influence the speed of the green transition. 

The Sound of Economics is bringing you a summer 2023 special series, 'Read with Bruegel.' In this series, we have the pleasure of hosting renowned authors who will discuss various economic issues based on their insightful books. We hope this conversation will inspire you to explore their books and offer you some food for thought during your summer break. In this episode of the series, Bruegel Senior fellow Maria Demertzis welcomes Agathe Demarais, Global forecasting director, Economist Intelligence Unit, to discuss her latest book ‘Backfire: How Sanctions Reshape the World Against U.S. Interests’. From Russia’s invasion of Ukraine to Iran’s COVID response and China’s cryptocurrency ambitions, they discuss how sanctions are transforming geopolitics and the global economy—as well as diminishing U.S. influence. They also exchange views on global fragmentation and how to save multilateralism and cooperation. 

The Chinese economy is at a crossroads. The investment-driven growth model, which the government had relied on for the last four decades, is running out of steam. Fiscal deficits are widening and public debt is rising. Furthermore, population aging is becoming more visible and the pandemic had some scarring effects which have taken a toll both on consumer and business confidence.  The very rapid rise in wages since the global financial crisis is pushing China to get ahead in its production capabilities so it will be productive enough to continue to raise wages and avoid the middle-income trap. Pressure on the economy is further intensified by the recent increase in geopolitical tensions and fears of decoupling between the US and China.  As the Chinese economy continues to decelerate, the central government is investing heavily in innovation, doubling down on research and development (R&D) spending and STEM-oriented human capital. In this episode of The Sound of Economics, Giuseppe Porcaro invites Alici

In June 2018, the US Trump administration introduced tariffs on European steel and aluminium exports, starting a long-time dispute between the two trade partners. On 31 October 2021, the European Union and the United States agreed on temporary measures to settle their dispute over US Section 232 ‘national security’ tariffs on EU steel and aluminium products. In addition to opening tariff rate quotas for historical EU export volumes, the joint EU-US statement mandates negotiations on a “global steel and aluminium arrangements to restore market-oriented conditions and address carbon intensity”, with a deadline of 31 October 2023. As this deadline approaches, negotiators from Brussels and Washington are scrambling to get a deal. At the same time the discussions have been overlapping with the broader goals of supporting the green transition and need to be considered against the backdrop of the geopolitical rivalry between the USA and China.  In this episode of The Sound of Economics, Giuseppe Porcaro invites K

Today, the mitigation of climate change is one of the most important issues worldwide. However, governments also need to prioritise geopolitical resilience and economic growth when designing their industrial policies.  In this episode of the Sound of Economics, Giuseppe Porcaro is joined by Philippe Aghion, Simone Tagliapietra and Reinhilde Veugelers to discuss what an innovative, European-level industrial policy would look like and how it could address all those competing objectives.  They propose that the EU should engage in ‘co-opetition’ with the United States and China, which includes co-operation and maintaining economic ties to facilitate global decarbonisation most efficiently. At the same time, they argue that investing in new technologies in the EU is key to ensure its competitiveness and economic stability.   Relevant publication: Aghion, P., K. Ahuja, C. P. Bown, U. Cantner, C. Criscuolo, A. Dechezleprêtre, M. Dewatripont, R. Hausmann, G. Lalanne, B. McWilliams, D. Rodrik, S. Tagliapietra, A. T

The Sound of Economics is bringing you a summer 2023 special series, 'Read with Bruegel.' In this series, we have the pleasure of hosting renowned authors who will discuss various economic issues based on their insightful books. We hope this conversation will inspire you to explore their books and offer you some food for thought during your summer break. In this episode, Giuseppe Porcaro invites Isabella Hermann and Laura Horn to discuss their latest book, ‘The Palgrave Handbook of Global Politics in the 22nd Century’.  The book mirrors the format and style of existing handbooks, combining outlines and discussions of theories, structures, processes and core issues in international relations with an academic science fiction account of how these might play out over the course of the next century.

The Sound of Economics is bringing you a summer 2023 special series, 'Read with Bruegel.' In this series, we have the pleasure of hosting renowned authors who will discuss various economic issues based on their insightful books. We hope this conversation will inspire you to explore their books and offer you some food for thought during your summer break. In the first episode of the series, Bruegel Director Jeromin Zettelmeyer welcomes Martin Wolf, Chief economics commentator at the Financial Times to discuss his latest book ‘The Crisis of Democratic Capitalism’. Liberal democracy is in recession and authoritarianism is on the rise. Together, Jeromin and Martin discuss why democracy and capitalism are mutually sustaining in a world like this. They define the concept of democratic capitalism, explain why it is in a crisis and outline the proposed solutions.

China's economic ties with the Gulf States have undergone significant changes in recent years. Although historically there was little interaction between China and the Middle East, the past decade has seen a transformative shift with far-reaching implications for trade, business and politics.  According to the IMF, trade between China and the Gulf countries has doubled from approximately $90 billion to $180 billion between 2010 and 2021. Additionally, the Gulf region has become a significant recipient of China's Belt and Road Initiative (BRI) funding. In this episode of The Sound of Economics, Giuseppe Porcaro sits down with Karen E. Young and Alicia García-Herrero to discuss the growing economic relations between China and the Gulf States. They mention the changing dynamics of trade, investment, currency as well as potential political alliance shifts in the region. They also discuss the changing dynamics of foreign policy with a stronger focus on energy security, leaving an opportunity of leverage for the

In recent years, European Commission borrowing on behalf of the European Union has changed significantly in both scale and nature. This is mainly due to the financing of the Support to mitigate Unemployment Risks in an Emergency (SURE) and NextGeneration EU (NGEU) instruments introduced in response to Covid-19. For the first time, the EU is now faced with its own debt, which will have to be paid for through the EU budget. When these programmes were launched, interest rates were at historic lows. However, they have since risen rapidly, both in absolute terms and as compared to sovereign borrowers like Germany and France. In this episode of The Sound of Economics, Maria Demertzis invites Grégory Claeys and Conor McCaffrey to discuss the causes of this rise in EU borrowing costs, as well as its wider implications on the EU budget, indicated in their latest paper. Relevant piece: Claeys, G., C. McCaffrey and L. Welslau (2023) ‘The rising cost of European Union borrowing and what to do about it’ Policy Brief 12

China’s astounding growth has slowed down over the last decade. Despite enormous progress and investment in research and development, China’s medium-term GDP growth is expected to fall to 2.4% by 2035. The Chinese economy will not grow much larger than the US economy in the foreseeable future, which has important geopolitical implications.  In this episode of the Sound of Economics, Giuseppe Porcaro is joined by Alicia García-Herrero and Max Zenglein to talk about the interconnectedness of China’s long-term growth prospect and its demographics. They discuss how economic deceleration impacts innovation, productivity and the wider society, as well as potential economic and foreign policy responses from the country’s leadership. The importance and possible effects of China’s future economic trajectory on the European Union are explored too.  This episode is part of the ZhōngHuá Mundus series of The Sound of Economics. ZhōngHuá Mundus is a newsletter by Bruegel, bringing you monthly analysis of China in the wor

Digitalisation, robotisation and automation are changing the nature of jobs at an unprecedented rate. Newly emerging technologies are not only reducing the jobs performed by humans but also transforming the way people work. EU economies are undergoing a significant transition leading to the displacement of workers across all industries and workers find themselves in need of reskilling and upskilling to switch to jobs which are high in demand.  The European Commission has named 2023 as its European Year of Skills with the stated goal to give fresh impetus to lifelong learning, empowering people and companies to contribute to the green and digital transitions, while supporting innovation and competitiveness. In the new Skills series of The Sound of Economics, we discuss how we can utilise upskilling and reskilling initiatives to protect vulnerable groups of the workforce, how to build a resilient workforce and a create better functioning EU labour market. In the first episode of the series, Giuseppe Porcaro s