The EU’s capital markets quest

In this episode of The Sound of Economics, host Rebecca Christie is joined by Bruegel’s Director Jeromin Zettelmeyer and Affiliate Fellow Ben McWilliams to discuss new research on climate action and international cooperation. They present their chapter in the Paris Report 3, exploring the decarbonisation of energy-intensive industries, the design of the Clean Industrial Deal, and relatively high energy costs. They discuss how the EU could work in partnership with developing countries to achieve efficient global industrial decarbonisation. Bruegel has released two Policy Briefs which feature in the Paris Report 3: Global Action Without Global Governance: Building coalitions for climate transition and nature restoration, a joint initiative by Bruegel and CEPR (Pisani-Ferry et al, 2025). This year’s focus is on accelerating the energy transition and restoring nature in emerging and developing economies. Relevant research: McWilliams, B., S. Tagliapietra and J. Zettelmeyer (2025) ‘Reconciling the European Union’s clean industrialisation goals with those of the Global South’, Policy Brief 18/2025, Bruegel Pisani-Ferry, J., B. Weder di Mauro and J. Zettelmeyer (2025) ‘Building coalitions for climate transition and nature restoration’, Policy Brief 17/2025, Bruegel CEPR (2025) Paris Report 3: Global Action Without Global Governance: Building coalitions for climate transition and nature restoration, Centre for Economic Policy Research, available at https://cepr.org/publications/books-and-reports/paris-report-3-global-action-without-global-governance-building

In this episode of The Sound of Economics, host Rebecca Christie discusses how common financial-services supervision could jumpstart the EU single market with Bruegel’s Nicolas Véron and Enrico Letta, former Italian prime minister and author of the EU’s flagship single-market report. They talk about ways to boost the European Securities and Markets Authority, the current regulator, and move away from national silos by putting ESMA offices in every member state. They also discuss how better capital markets would make the EU more competitive and lead to a stronger and safer European economy. Relevant research: Letta, E. (2024) "Much more than a market - Speed, Security, Solidarity", Report Véron, N. (2025) "Breaking the deadlock: a single supervisor to unshackle Europe's capital markets union", Blueprint, Bruegel

Critical technologies including artificial intelligence, semiconductors and quantum computing are gaining increasing attention due to their strategic importance and indispensable role in national security. In this episode of The Sound of Economics, Yuyun Zhan invites Alicia García-Herrero and Claudio Feijóo to look into how the world’s three leading global economies, China, the US and the EU, are advancing in these cutting-edge sectors. Which economies are leading in specific subfields? How quickly are these technologies being translated into real-world applications? Relevant publications: García-Herrero, A., M. Krystyanczuk and R. Schindowski (2025) ‘Radical novelties in critical technologies and spillovers: how do China, the US and the EU fare?’, Working Paper 07/2025, Bruegel García-Herrero, A., M. Krystyanczuk and R. Schindowski (2025) ‘Which companies are ahead in frontier innovation on critical technologies? Comparing China, the European Union and the United States’, Working Paper 08/2025, Bruegel 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!

In this episode of the Sound of Economics, host Rebecca Christie talks about the proposed digital euro with ECB Executive Board member Piero Cipollone and Bruegel Senior Fellow Pablo Hernández de Cos. Why does the EU need a Central Bank Digital Currency (CBDC)? How much should citizens be able to hold? How will it affect financial stability and the banking system? They discuss the state of play and why the case for the digital euro has become stronger.

In this episode of the Sound of Economics, host Rebecca Christie discusses global development with Bruegel director Jeromin Zettelmeyer and Alfonso García Mora, vice president for Europe, Latin America and the Caribbean at the International Finance Corporation, the World Bank Group’s arm for mobilizing private finance. They discuss what tools are available, what needs can be addressed, and how that fits into today’s geopolitical environment. By helping public and private funders work together, these efforts allow recipient countries like Ukraine to get more out of international assistance.

How Europe’s defence sector can align to climate goals without compromising security needs In this episode of the Sound of Economics, we look at the present and future efforts of the defence sector to integrate climate sustainability. Host Rebecca Christie is joined by Bruegel's Simone Tagliapietra and Kädi Ristkok, Executive Director of Cleantech for Baltics. Together, they explore the challenges and practical steps to decarbonise defence. What are the key policy actions needed at the European level? Relevant research: Ristkok, K. and L. Balciume (2025), 'Cleantech for Defence, Security and Resilience', White paper, Cleantech for Baltics  Tagliapietra, S. (2025), ‘Defence and climate: seven points for a common agenda', Analysis, Bruegel

In this episode of The Sound of Economics, we look at what came out of the May 19 EU-UK summit. Host Rebecca Christie speaks with Bruegel’s Ignacio García Bercero and Heather Grabbe about the shift in post-Brexit ties between the two trading partners, what needs to be negotiated next, and how this relates to contentious transatlantic trade relations. U.S. President Donald Trump’s threat of big tariffs against the EU contrasts with the cooperative approach of the London talks, which laid out a path forward in key areas like energy, fishing, youth mobility, emissions trading schemes, and animal and plant health standards. Relevant research: Ignacio García Bercero and Heather Grabbe, ‘The EU-UK reset: a first, big step in the right direction’, First Glance, 22 May 2025, Bruegel, https://www.bruegel.org/first-glance/eu-uk-reset-first-big-step-right-direction Berg, J., R. Christie, H. Geeroms and F. Papadia (2025), ‘Make finance part of the EU-UK post-Brexit reset', Analysis, Bruegel García-Bercero, I. (2024) ‘A trade policy framework for the European Union-United Kingdom reset’, Policy Brief 30/2024, Bruegel

In this episode of The Sound of Economics, Yuyun Zhan sits down with Bruegel’s own Alicia García-Herrero and Plamen Tonchev, Head of Asia Unit at the Athens- based Institute of International Economic Relations (IIER), to dive into China's economic presence in the Eastern Mediterranean, a region that we have not covered much before in terms of its relations with China. The conversation delves into the geostrategic importance of the region and China’s highly tailored approach to individual countries, including Egypt, Türkiye, Israel, Greece, and Cyprus. What lessons can the EU draw from China’s engagement in this pivotal area? 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! Read more about Sino-Cypriot relations in Plamen Tonchev's paper, More Than Meets The Eye: Behind the Façade of Sino-Cypriot Relations.

In this episode of the Sound of Economics, we look at how Europe can attract and keep top-tier scientific researchers, especially given US political turmoil and the Trump administration’s conflicts with higher education. Host Rebecca Christie speaks with Bruegel’s Reinhilde Veugelers and Mario Mariniello, joined by Daniel Gros of the Institute for European Policymaking at Bocconi University, to discuss how the academic world is changing and what European authorities can do about it. Short-term funding incentives to attract scientists will help. But success requires long-term commitment to a research-friendly environment, such as the proposed Project Einstein initiative, to encourage top talent to put down roots. Relevant research: Mariniello, M. and Ruer, N. (2025), 'How much research talent could Europe grab from the US?', Analysis, Bruegel Heather Grabbe and Daniel Gros, '‘Project Einstein’: research excellence for Europe and the world', First Glance, 8 May 2025, Bruegel, https://www.bruegel.org/first-glance/project-einstein-research-excellence-europe-and-world 

In this episode of the Sound of Economics, we look at Germany’s budget outlook under new Chancellor Friedric Merz and whether much-needed reforms to the so-called debt brake put Berlin on a collision course with Brussels. Host Rebecca Christie is joined by Bruegel's director, Jeromin Zettelmeyer, and Bruegel non-resident fellow, Armin Steinbach, to discuss the legal and economic implications. How can the EU encourage Germany to spend more on defence and security without unraveling the new fiscal rules? Does the EU need to redo its debt safeguards again? Relevant research: Germany's fiscal rules dilemma, Bruegel Analysis, Armin Steinbach and Jeromin Zettelmeyer, 24 April 2025 Will EU fiscal rules prevent Germany from using its new national borrowing space? Bruegel newsletter, Armin Steinbach, 28 April 2025