Green Deals in the EU Exposed | IEA Interview

Governments across Europe have convinced themselves they can pick winners, drive innovation and save the planet — all at the same time. But what happens when the bill comes due? Kristian Niemietz is joined by Professor Kristin Sandstrom and Professor Magnus Henriksen, authors of a new IEA report on green industrial policy in the EU, to find out.From Northvolt — the European Union’s flagship battery manufacturer that became Sweden’s largest bankruptcy since the 1930s — to the broader failure of the Green Deal to deliver on its promises, the case studies are damning. The professors argue that the problem with industrial policy is not just picking winners, but creating losers: distorting markets, misallocating capital and leaving local communities to foot the bill.Climate policy has become the Trojan horse for a new era of big government intervention — and the economics profession has largely failed to push back. This interview cuts through the green rhetoric and asks what a genuine exit strategy from the Green New Deal would actually look like.The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff.The professors' book, A Green Entrepreneurial State?, is open access and available here: https://link.springer.com/book/10.1007/978-3-032-15512-2 This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

Join Andy Mayer, IEA Chief Operating Officer, with Sean Ridley, energy and environment analyst at the Centre for Policy Studies and co-author of Power to the Markets, for a comprehensive breakdown of why Britain’s energy market has stopped functioning as a market at all. This episode of Free the Power explores how decades of subsidies, government targets, and intervention have eroded price signals to the point where costs are locked in for generations, and consumers are left footing the bill.Ridley traces the journey from the 2008 Climate Change Act through to Ed Miliband’s Clean Power 2030 plan, explaining how a drive to decarbonise the grid has produced a system built around capacity rather than price. The discussion unpacks the Contracts for Difference model, the Renewables Obligation, and the regulated asset base model for Sizewell C, revealing how each layer of policy has compounded costs for households. As one industry executive told a parliamentary committee, even if wholesale prices halved, bills would still rise due to the upward pressure of accumulated policy decisions.The conversation also examines Great British Energy, the government’s flagship national energy champion, questioning whether an £8 billion capitalisation can realistically compete with the likes of EDF or Orsted, and whether it risks becoming a return to 1970s-style nationalised industry. Ridley argues that Power Purchase Agreements, better price signals, and a genuine market role for small modular reactors offer a credible alternative path to cheap, reliable energy without the government picking winners.The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

Inheritance tax is one of Britain’s most hated taxes -- but is the outrage justified? Kristian Niemietz sits down with Rory Meakin, Research Fellow at the Taxpayers’ Alliance and author of a new IEA paper on inheritance tax, to examine what this tax actually does, how much it raises, and whether it makes any economic sense. From the farmer protests that pushed the issue back into the headlines, to the surprising fact that Britain sits in the global top five for inheritance tax rates, this conversation cuts through the politics to look at the hard numbers.Rory and Kristian explore the serious practical problems with inheritance tax -- from the near-impossible task of valuing a privately owned family business, to the compliance costs that fall squarely on grieving families rather than the state. They also tackle the ideological debate head-on, revealing that the case for a 100% inheritance tax has been made not just by left-wing commentators, but by figures like James Buchanan, the Nobel Prize-winning father of public choice economics -- and they explain why that argument ultimately fails in the British context.The conclusion is striking: inheritance tax doesn’t raise much revenue, likely damages savings and investment, and is the least popular tax in Britain -- yet the current system is more punitive than most comparable countries, particularly when it comes to passing wealth to your own children. Rory sets out what a reformed system could look like, including raising the threshold to £2 million -- which would remove 95% of estates from the tax altogether -- and explains why, even if full abolition is off the table, there are straightforward ways to make this tax far less damaging.The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

In this episode of the IEA Podcast, Lord Frost is joined by Kristian Niemietz and Andy Mayer to discuss the growing “Dubai phenomenon” — why increasing numbers of Brits are leaving the UK to build a better life abroad, and why politicians like Ed Davey are wrong to criticise them for it. The panel argues that rather than attacking those who leave, Britain should be asking why it can no longer offer the living standards, low crime, and economic opportunity that draws people to places like Dubai in the first place.The conversation turns to energy policy, where Andy Mayer welcomes the Government’s moves to implement the Fingleton Review on nuclear energy, making the case that a nuclear-led decarbonisation strategy would cost around £400 billion less than the current renewables-heavy approach. The panel challenge the Committee on Climate Change’s claim that net zero will cost Britain almost nothing, arguing the assumptions behind it are implausible and that nuclear power — with a 90% capacity factor versus solar’s 10-12% — is simply a far more reliable and affordable path to decarbonisation.Finally, the panel examines a troubling free speech case in Germany, where an IEA author was accused of posting a Nazi symbol for sharing a satirical image comparing Putin to Hitler. Kristian and Andy argue this reflects a broader erosion of free speech culture across the West — where laws designed for a pre-internet world are being weaponised in bad faith to silence political opponents, and where the only real safeguard is a strong cultural commitment to free expression that is increasingly absent.The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

Callum Price is joined by Dr Lawrence Newport, co-founder of Looking for Growth, a grassroots movement pushing for meaningful economic reform across the UK. Lawrence explains how the movement was born out of frustration with the Government’s first budget, which he argues was indistinguishable from years of previous Treasury thinking, typified by managed decline and a lack of ambition from the political class.The conversation covers the deep structural problems holding Britain back, from the inability to build infrastructure at reasonable cost and speed, to a legal and planning system that actively subsidises frivolous objections. Lawrence draws on concrete examples, including the Thames Valley Crossing, HS2, and the extraordinary case of a 30-year charity kite festival being shut down over a rare flower, to illustrate how quangos and an ever-expanding regulatory regime are strangling the country’s capacity to get things done.The pair also discuss the student loans crisis and the campaign to release Longitudinal Educational Outcomes data so that parents and students can make genuinely informed decisions about university. Lawrence argues that universities have engaged in deeply misleading practices for years, and that publishing this data in full would shatter a number of sacred assumptions about the value of a degree, ultimately benefiting students, taxpayers, and universities alike in the long run.The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

On the 250th anniversary of its publication, we revisit one of the most consequential books ever written: Adam Smith’s The Wealth of Nations. Published on 9th March 1776 — the same year as the American Declaration of Independence — Smith’s masterwork laid the intellectual foundations for modern economics, free trade, and the idea that individual freedom, properly channelled through law and competition, can transform entire nations from poverty to prosperity.Daniel Freeman is joined by Dr Mark Skousen, presidential fellow at Chapman University and author of The Making of Modern Economics and the new IEA paper The Genius of Adam Smith. Together they explore why Smith, a Scottish moral philosopher with no economics department to his name, produced ideas that still define debates about wealth, inequality, and the role of government today. From the invisible hand to the system of natural liberty, Skousen unpacks why Smith’s three grand principles — justice, freedom, and competition — remain as radical and relevant as ever.They also take stock of the state of the Adam Smith model in 2026, asking whether his vision of peace, easy taxes, and a tolerable administration of justice is advancing or retreating in the face of rising protectionism, trade wars, and renewed enthusiasm for state intervention. With Smith’s ideas increasingly under pressure from all sides of the political spectrum, this conversation is a timely reminder of what is at stake — and why, 250 years on, the debate Smith started is far from over.The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

Australia made global headlines when it introduced a social media ban for under-16s, but does the evidence actually support such a drastic step? In this episode, Callum Price is joined by IEA Public Policy Fellow Matthew Lesh to examine the claims driving the push to restrict young people’s access to social media platforms. They explore what the research really says about social media and children’s mental health, drawing on the work of leading academic sceptics who find the link far weaker than campaigners often claim.The episode takes a close look at Australia’s ban in practice, finding that millions of accounts have been deleted whilst VPN usage has surged and teenagers are simply finding workarounds. Matthew argues that bans of this kind create a false sense of security for parents, undermine open conversations between families about online safety, and strip young people of the very safe, age-appropriate accounts that platforms have developed. The discussion also turns to the UK’s own consultation on a potential under-16s ban, including the alarming prospect of extending restrictions to AI chatbots.Matthew and Callum argue that well-intentioned as these policies may be, they risk doing more harm than good. Rather than reaching for prohibition, the answer lies in parental responsibility, digital education, and making better use of the child safety frameworks that already exist under the Online Safety Act. With the Government now openly consulting on measures that could dwarf what Australia has done, the stakes for British children’s access to the open internet have never been higher.The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

In this Institute of Economic Affairs podcast, IEA Director of Communications Callum Price is joined by Editorial Director Kristian Niemietz and Director General Lord Frost to discuss the Spring Statement, the Middle East crisis and its economic repercussions, and shifting British attitudes towards national identity and the NHS.The trio assess Rachel Reeves’s Spring Statement, which delivered little in the way of new policy direction. They examine the OBR’s report and note a modest but meaningful shift in tone from official forecasters, who are increasingly acknowledging the distortionary effects of high taxation and the link between employment rights legislation and rising unemployment. With the tax burden at a historic high and youth unemployment worsening, the panel argues the conditions are ripening for a more serious public debate about economic reform. They also discuss the geopolitical fallout from the Middle East crisis, warning that Britain’s energy policy, its cancellation of North Sea licences, and its strained relationships with key energy suppliers leave the country exposed to a significant price shock.The conversation concludes with a look at a Pew Research survey on national pride, which finds British respondents unusually likely to cite things they are not proud of. The panel explores the collapse in NHS satisfaction, noting that only 12% of people now cite the health service as a source of national pride, a dramatic reversal from its near-unanimous approval during the pandemic. They discuss what this signals for the appetite for reform and whether a return to economic growth could restore the national mood more broadly.The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems. The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

In this Institute of Economic Affairs interview, IEA Editorial Director Kristian Niemietz speaks with Jesús Armas, Venezuelan opposition activist and former IEA intern, about his imprisonment by the Maduro regime following the disputed July 2024 presidential election. Jesús describes being kidnapped by regime security forces, held in clandestine detention, subjected to torture, and kept in isolation for months, as well as the broader collapse of Venezuelan civil society under Chavismo.The conversation examines how Venezuela descended from a state with at least nominal civil liberties into a full dictatorship, drawing parallels with Soviet-era show trials and Hayek’s Road to Serfdom. Jesús explains how the opposition won the 2024 election with 70% of the vote, collected the tallies to prove it, and were then systematically persecuted for doing so. He also discusses the current political situation under Delcy Rodriguez, the prospects for democratic transition, Venezuela’s economic collapse including salaries below $1 a month, the destruction of the oil industry through nationalisation, and why 9 million Venezuelans have fled the country.The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems. The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe

The latest event in the Entrepreneurial Minds series brought together entrepreneur and mentor Simon Krystman in conversation with Lord Kamall for a wide-ranging discussion on entrepreneurship, innovation and the realities of building businesses. Designed to give aspiring founders and those interested in enterprise an honest insight into entrepreneurial journeys, the event explored the motivations, risks and lessons that shape successful ventures. Through an informal interview format followed by audience questions, attendees heard first-hand reflections on decision-making, resilience and the importance of learning through both success and failure.Krystman reflected on his unconventional route into entrepreneurship, challenging the assumption that entrepreneurs are simply “born” with innate talent. Drawing on early experiences founding a technology business in the 1990s, he described the risks of leaving secure employment with little preparation, the setbacks encountered when initial ideas proved unworkable, and the rapid pivot that ultimately enabled growth. The discussion highlighted practical themes including idea validation, customer demand, scaling challenges and the distinction between enjoying entrepreneurial creation versus managing large organisations.The conversation broadened into wider policy and social questions, including regulation, access to investment, community entrepreneurship and the cultural attitudes that shape innovation ecosystems. Audience discussion touched on philanthropy, local enterprise initiatives and comparisons between British and American approaches to risk and failure. Krystman emphasised mentorship and evidence-based validation as critical tools for founders, arguing that understanding customer need, rather than pursuing investment alone, remains the central determinant of entrepreneurial success.The Institute of Economic Affairs is a registered educational charity. It does not endorse or give support for any political party in the UK or elsewhere. Our mission is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.The views represented here are those of the speakers alone, not those of the Institute, its Managing Trustees, Academic Advisory Council members or senior staff. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insider.iea.org.uk/subscribe