The potential enlargement of the European Union to encompass a number of eastern (Georgia, Moldova and Ukraine) and Western Balkan (Albania, Bosnia-Herzegovina, Kosovo, North Macedonia, Montenegro and Serbia) neighbours would involve significant net transfers to those countries under current EU budget rules. Moreover, if budget allocation rules remain unchanged, ‘cohesion’ funding that helps pay for […]
Conflict is tragically common, particularly in low- and middle-income countries. This column reviews the rapidly growing literature linking changes in climate to various types of human conflict and finds that climate change is projected to cause an increase in numerous forms of violent human behaviour. Policies like a robust social safety net and political inclusion […]
The dramatic diffusion of digital technologies and partial policy reforms in services is transforming East Asian economies. This column describes how the result is higher productivity and changing jobs in the services sector, as well as in the manufacturing sectors that use these services. However, a region that has thrived through openness to trade and […]
Global humanitarian needs have surged due to escalating armed conflicts, climate-induced disasters, and political instability. Anticipatory action in the humanitarian sector is regarded as a key tool to help address this surge. This column discusses the potential for AI-based forecasting systems to inform anticipatory action in the humanitarian sector as well as the barriers to […]
Euro area economic performance has been subdued since around 2018. This column outlines how this subdued performance underscores the multifaceted challenges of energy dependency, manufacturing vulnerabilities, and shifting global trade dynamics. Manufacturing has struggled amidst rising energy prices, which intensified export declines in high natural gas-intensive sectors. Shifting trade dynamics with China – characterised by […]
Industrial policy will play a key role in navigating the energy transformation, and the global automotive industry is already adapting. This column examines the impact of industrial policies on electric vehicle innovation. Using both country- and firm-level records, the authors compile a database of global industrial policies and patents for the automobile industry, highlighting the […]
At the 2023 UN Climate Change Conference, goals were set to transition away from fossil fuels, triple renewable capacity, and double energy efficiency improvements by 2030, requiring a substantial increase in clean energy investments among emerging market and developing economies. Against the backdrop of tight fiscal space and relatively high financing costs, foreign direct investment […]
Fostering investment in clean energy and transport systems is essential if the European Union is to achieve the 2030 climate goal of a 55 percent emissions reduction relative to 1990. However, getting to the required levels of investment during 2025-2030 is likely to be exceptionally difficult. Clean electricity generation and electricity transmission systems need to […]
The European Union will need in the coming years to invest a substantial amount of resources in European public goods (EPGs), including for the digital and climate transitions, and for defence and security. Funding for this could be provided in a centralised way at EU level, via either a fund or from the EU budget, […]
Executive summary Energy prices are higher in the European Union than in most other industrialised economies, presenting a fundamental competitiveness challenge. The price disparity stems from the EU’s reliance on imported fossil fuels, contrasting with the United States, which is a net exporter of energy. In 2024, EU gas wholesale prices were on average nearly five […]
