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Forum · Issue 5 · 2024
The Future of European Industrial Policy

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Forum · Issue 4 · 2024
Ensuring European Security and Stability

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From Unemployment Struggles to Labour Market Shortages?

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Forum · Issue 2 · 2024
European Parliament Elections 2024: What Is at Stake?

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Forum · Issue 1 · 2024
Artificial Intelligence: Potential and Challenges for Europe

Editorial
A Challenging Juncture for von der Leyen II

Following the enormous legislative efforts of the past five years, the second EU Commission of Ursula von der Leyen should focus on delivering, writes Karel Lannoo. This means making sure rules are well implemented and enforced, following through with commitments on enlargement, extending the Single Market and contributing to the geopolitical stability of the European continent.

Forum
Industrial Policy in the Semiconductor Industry

Despite concerns and the traditional reservations among economists against industrial policy in general, there are compelling reasons for pursuing an industrial policy approach that includes subsides, write Fabrice Naumann and Monika Schnitzer, particularly in the European semiconductor industry.

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Forum
An Innovation-Based Industrial Policy for the EU

The innovation system can develop and deploy unique new sustainable solutions to serve security of supply while generating comparative advantages on world markets. But the innovation system cannot do this on its own. For vertical policies to be efficient, they need to be flanked by horizontal policies ensuring large, open, competitive markets, writes Reinhilde Veugelers.

Forum
European Industrial Policy in the 2020s

The contrast between an ideally designed industrial policy and the one actually implemented in Europe hints that there is ample room for improvement, writes Sebastian Dullien. What is needed is a clear and overarching European industrial policy strategy with specific targets.

 

Letter from America
Fears About Debt and Deficits

While this year’s presidential election in the US features candidates that could not be more different, their parties share a strikingly similar take on debt and deficit: they both regularly claim that debt and deficit is one of America’s most urgent problems, despite the fact that in reality, neither side really cares, writes Mark Copelovitch.

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Forum
The Challenges of Defence Spending in Europe

The realisation that Europe’s defence industry needs political support has taken some time, but it is now an important point of consensus between EU member states and political groupings in the European Parliament. Yet, as Daniel Fiott argues, defence expenditure is an intensely political affair, which makes our ability to assess the quality of defence investments harder.

Quote of the Month

"It would be naive to assume that industrial policy decisions are immune to political interests and influences. Yet, it would be equally misguided to expect that policymakers will refrain from interfering and that firms by themselves will internalise all the externalities and coordination failures that arise in these industries."

Fabrice Naumann and Monika Schnitzer

Rationales for Industrial Policy in the Semiconductor Industry

Current Issue

Volume 59
2024
Issue 5

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Figure of the Month

Fiscal consolidation requirements to meet reformed EU fiscal rules

Figure 1 shows the fiscal adjustment requirements for the four largest euro area economies, which account for close to three-quarters of euro area GDP. The four-year adjustment case is based on the baseline adjustment in the Debt Sustainability Analysis-based reference trajectories. The seven-year case will only be granted if member states submit an investment and reform plan that is accepted by the European Commission.