The Sound of Economics

Think-tanks play a critical role in developing and promoting policy solutions, particularly in times of extreme disruption and change. However, these organisations now operate in information-rich societies where facts, evidence and credible research are often ignored – and where disinformation can gain a footing. In this edition of the Bruegel Backstage podcast series on ‘The Sound of Economics’, Bruegel secretary general Matt Dann welcomes senior thought leaders from research centres around the world, to discuss a range of strategies and best practices for transforming public policy and institutions in an era of digital and political disruptions as well as increased social and economic turbulence. Speakers Matt Dann, secretary general at Bruegel James McGann, director of the Think Tanks and Civil Societies Program at the Lauder Institute, University of Pennsylvania Milena Lazarević, programme director and co-founder of the European Policy Centre in Belgrade, Serbia Edward Kofi Anan Brown, senior director for research and policy engagements at the African Center for Economic Transformation in Ghana Credits Produced by Giuseppe Porcaro James McGann, Milena Lazarević and Edward Kofi Anan Brown participated in the Global Think Tank Summit 2018, hosted by Bruegel in Brussels.

The final act of the Brexit negotiations is upon us, with many questions still seemingly unresolved and the future relationship between the EU and the UK yet uncertain.The EU remains unyielding on compromising the integrity of the single market, with the UK struggling to propose an agreement suitable both for the EU as well as its own nuanced internal political situation.With the numbers delicately balanced in the UK’s House of Commons, whose MPs have to ratify the final deal, the subtlest shifts in positions and proposals have the potential to constitute serious stumbling blocks on the road to an agreement.Joining Bruegel’s Maria Demertzis for this Director’s Cut of ‘The Sound of Economics’ is Robin Niblett, director of the Chatham House institute in London. Together they run through what has already been agreed, what sticking points remain to be got past, and how the two sides might yet reach a deal that suits them both.For further reading, we recommend our blog post, written by Maria Demertzis and André Sapir, outlining the basic options for the future relationship of the EU and the UK, how they might be negotiated upon, and which would suit each side the best.

Bruegel senior fellow Nicolas Véron joins Sean Gibson to delve into the recent Policy Contribution on how to better the European Union anti-money laundering (AML) regime, a paper he has co-written with Joshua Kirschenbaum.The study offers a response to the evident flaws of the present system, exemplified by a series of banking scandals in multiple European Union countries, and amplified by changing geopolitics.The shortcomings of the current legal framework are identified by the authors as systemic in nature – the combination of an enforceable single market and national supervision of banks fails to meet the AML objectives.In their analysis, the authors propose a new European AML authority that would work on the basis of deep relationships with national authorities such as financial intelligence units and law enforcement agencies.For further reading, you might consider a blog post by Isabel Schnabel and Nicolas Véron discussing the need to "complete the banking union" by breaking the bank-sovereign vicious circle.

Bruegel senior fellow Zsolt Darvas welcomes Sayuri Shirai, professor at Keio University, visiting scholar at the Asian Development Bank Institute and former Member of the Policy Board of the Bank of Japan (BOJ), for a discussion of the Japanese monetary policy outlook.Japan is often portrayed in the economic circles as a country facing decades of loss, as it has long been experiencing slow economic growth and sluggish underlying inflation, despite numerous attempts at boosting it.The ambitious plan designed to do just that is known as ‘Abenomics’, a macroeconomic package advocated by Japan’s Prime Minister Shinzō Abe, based upon the ‘three arrows’ of monetary easing, fiscal stimulus and structural reforms.To evaluate the outcomes of the Abe’s policies and explore the challenges facing Japanese economy, Bruegel senior fellow Zsolt Darvas welcomes Sayuri Shirai, professor at Keio University, visiting scholar at the Asian Development bank institute and former Member of the Policy Board of the Bank of Japan.The discussion touches upon the reasons why target inflation is so hard to achieve, including the issue of stagnant wages and low labour productivity, especially in the context of Japan’s aging society. It also reflects on the Bank of Japan’s monetary easing normalisation, and whether it is feasible for it to tamper its massive government bond purchases.For further reading, you might consider a blog post by Akio Egawa on the third arrow of Abenomics – a growth strategy. We can also recommend our recent round up of economists’ opinions on the past years of Abe’s policies.

Bruegel director Guntram Wolff is joined by Tharman Shanmugaratnam, deputy prime minister of Singapore and chair of the G20 Eminent Persons Group, and Jean Pisani-Ferry, mercator senior fellow at Bruegel, for a conversation about the growth and stability challenges facing the global financial system, and how the system can be better equipped to deal with the significant and novel problems of the future.In this Director’s Cut of ‘The Sound of Economics’ Guntram Wolff is joined by Bruegel’s mercator senior fellow Jean Pisani-Ferry, and by Tharman Shanmugaratnam, deputy prime minister of Singapore and chair of the G20 Eminent Persons Group.A report from the Eminent Persons Group looks into how the global financial system can adapt to meet the sizeable challenges the future will pose, with particular reference to growth and financial stability.Small episodes of growth scarcity accumulate to make for a significant reduction worldwide, and the current model is not going to achieve the necessary uptick in growth in the next decade. Meanwhile, financial stability remains elusive, despite the positive changes made – particularly in the banking sector – since the most recent crisis.But the report from the G20 Eminent Persons Group is not without hope, and in fact sees a practical way forward by which the gaps in the current system can be plugged before new foundations are laid for the future.For further reading, we recommend Jean Pisani-Ferry’s Bruegel Policy Contribution on the question of whether we should give up on global governance in such turbulent times.

Amid the Asia-Europe Economic Forum on the fringes of the 12th ASEM Summit, Bruegel senior fellow hosts a conversation on developing global trade relations, with guests Moonsung Kang, professor as Korea University, and Michael G. Plummer, director at SAIS Europe – Johns Hopkins University, for an episode of the Bruegel Backstage series on ‘The Sound of Economics’. With Bruegel hosting the two-day Asia-Europe Economic Forum in the same week as the Asia-Europe Meeting takes place in Brussels, André Sapir takes the opportunity to talk about the quickening changes to the global trade landscape in conversation with Moonsung Kang, professor as Korea University, and Michael G. Plummer, director at SAIS Europe – Johns Hopkins University. Led by President Donald Trump, the US has begun to challenge the multilateral trade system. Meanwhile, Europe has been busy securing free trade agreements – most recently with Japan, previously with Canada and others. With the US appearing to withdraw, and abdicate its leading role in the global trading system, Asia’s moves to improve relations with Europe make sense; the EU seems to have better appreciated the shift of the gravitational centre of world trade towards Asia. The question remains how closely Asia and the EU will agree to cooperate in the years to come, and whether the US political narrative will develop in a way that leads them back towards free trade, or even further down the road of bilateral agreements. If you are interested in reading more on this topic, we can recommend the research paper on the EU-Japan agreement that Bruegel has submitted to the European Parliament, by André Sapir, Sonali Chowdhry and Alessio Terzi. Consider also the Bruegel Backstage podcast episode on the developing EU-China relationship in the face of rising global trade tensions.

In this episode of Deep Focus, Bruegel research fellow Simone Tagliapeitra explains how the nature of cross-Mediterranean energy relations needs to change, not only in line with new climate-change targets but also to meet the burgeoning energy demand outside Europe.Oil and gas dominated Euro-Mediterranean energy relations in the 20th century, but with the turn of the 21st century came a new focus on renewable sources. The new ventures were less successful than those of old, and both institutional and commercial plans failed to achieve the same level of fruitful cooperation.With electricity demand sky-rocketing in the Middle East, future efforts must differ from those of the past in providing much more supply for the countries outside Europe. The EU can play a key role in ensuring that both they and the countries on the southern side of the Mediterranean Sea benefit from such a spike in energy demand, with a strategy in-keeping with agreements already reached on cutting greenhouse gas emissions.In this episode of Bruegel’s Deep Focus series, Simone Tagliapietra explains how the regulatory and financial constraints on renewable energy projects can be overcome. European institutions have the capability to back the sizeable upfront investment in renewables that will propel such projects towards their long-term pay-offs. But funding must be conditional on reform that promotes private investment and removes archaic bias towards fossil fuels.The research discussed in this episode is available in full in the Bruegel Policy Brief, ‘The Euro-Mediterranean energy relationship: a fresh perspective’, by Simone Tagliapietra. This scholar has also collaborated with Bruegel senior fellow Georg Zachmann on a study of Europe’s failure to clean up its transport sector, which we recommend as further reading.

In this Director’s Cut of ‘The Sound of Economics’, Guntram Wolff welcomes Bruegel research fellow Grégory Claeys to assess how the new Italian budget proposals measure up against the existing EU fiscal rules.Italy’s new budget proposals, together with projected deficit levels for the coming years, have put the EU as well as bond-market investors on alert.In the context of Italy’s already-high ratio of public debt to GDP, the coalition government’s plan to increase the budget deficit has prompted concerns that the country risks running afoul of the EU’s fiscal framework. What are the means by which the EU can monitor and, if need be, administer sanctions on Italy, in the event of any contravention of its fiscal rules? Bruegel director Guntram Wolff takes this opportunity to discuss all the options facing the European Commission and Council, as well as the specific details of the Italian case and the forecasts underpinning the budget’s figures, with Bruegel research fellow Grégory Claeys. For further reading, we recommend our full break-down of the EU’s options for response to Italy’s fiscal plans, written by Grégory Claeys and Antoine Mathieu Collin. You can also hear more on Italy’s economic and political outlook in another of our podcasts, featuring Bruegel affiliate fellow Silvia Merler in discussion with Marcello Minenna, PhD lecturer at the London Graduate School and head of quants at Consob, and Lorenzo Codogno, visiting professor at the London School of Economics and Political Science.

Bruegel senior fellow André Sapir welcomes Tamotsu Nakamura, dean of Kobe University’s Graduate School of Economics, and Maria Åsenius, head of cabinet to European trade commissioner Cecilia Malmström, for a discussion of the EU-Japan economic partnership in the context of heightening global trade tensions.The EU and Japan have signed a landmark trade deal this summer that will create the world’s largest open economic area.The economic partnership agreement will be the biggest bilateral trade agreement the EU has ever signed, permitting not only the dropping of tariffs but also regulatory cooperation, as well as a special focus to promote the interests of SMEs. The trade-positive nature of this agreement goes against the grain of the numerous challenges made to the global multilateral system in recent times, best represented by the tariffs and counter-tariffs imposed by the US and China upon one another.To explore how this accord suits the EU and Japan, in terms of both the domestic and international interests of each side, Bruegel senior fellow André Sapir welcomes two guests for this edition of the Bruegel Backstage series – Tamotsu Nakamura, dean of Kobe University’s Graduate School of Economics, and Maria Åsenius, head of cabinet to European trade commissioner Cecilia Malmström. If you are interested in reading more on this topic, we can recommend the research paper on the EU-Japan agreement that Bruegel has submitted to the European Parliament, by André Sapir, Sonali Chowdhry and Alessio Terzi. You might also consider our previous podcast on EU’s options in the event of global trade war, featuring Bruegel director Guntram Wolff with Bernd Lange, member of the European Parliament and chair of the Committee on International Trade. Tamotsu Nakamura and Maria Åsenius participated in one session of the Bruegel conference on international trade and the EU-Japan agreement.

Bruegel deputy director Maria Demertzis welcomes Financial Times commentator Martin Sandbu to explore the journey taken by the field of economics since the financial crisis struck 10 years ago, and discusses what new tools economics has now that it didn’t have then. In this Director’s Cut of ‘The Sound of Economics’, we trace the journey upon which the field of economics has embarked since the financial crisis, what lessons it has learnt and what it can do differently now with the benefit of hindsight. Economists and financial specialists failed to identify the burgeoning threat of financial imbalances, excessive risk-taking and housing bubbles that led to the crisis that first broke a decade ago. Can economics provide answers to the right questions – and in good time? Bruegel deputy director Maria Demertzis is joined by Martin Sandbu of the Financial Times to look at what new tools and approaches can help economists make a difference in the event that any similar such crisis strikes again. For further consideration we recommend another edition of the Director’s Cut podcast series, featuring a discussion between Maria Demertzis, Nicola Viegi – South African Reserve Bank professor of monetary economics at the University of Pretoria – and Frank Smets – director general of economics at the European Central Bank – on the topic of macroeconomics’ post-crisis reinvention and the flourishing of new models. FURTHER READING Rebuilding macroeconomics: Initial reflections on a major theory project The DSGE Model Quarrel (Again) Tales from a crisis: diverging narratives of the euro area

Guntram Wolff welcomes Bruegel affiliate fellow Silvia Merler to evaluate the Italian government’s planned budget for 2019, in this Director’s Cut of ‘The Sound of Economics’ Six months after its election, Italy’s coalition government reached an agreement on public spending. The key tenets of its first budget include a spending increase that will drive the budget deficit to 2.4% of GDP, tax cuts, a proposal for a minimal income for the unemployed, as well as cancellation of the plans to increase retirement ages. Though the new deficit budget fits into the EU’s limit of 3%, Italy’s debt of €2.3 trillion makes for a difficult case to increase spending. The news comes as a blow for the finance minister Giovanni Tria, who pushed for a more fiscally responsible budget, trying to limit budget deficit to 1.6% of GDP. The decision also received disapproval from Brussels, with EU Economics Commissioner Pierre Moscovici criticising Italy for “flouting the rules” and disregarding its large debt. To discuss the potential consequences, Guntram Wolff welcomes Bruegel affiliate fellow Silvia Merler to this Director’s Cut of ‘The Sound of Economics’. For further reading, we recommend Guntram Wolff’s opinion piece on how to overcome the hurdles obstructing Italian growth, as well as Silvia Merler’s note comparing the capital flight from Italy in 2018 with similar such scenarios witnessed in 2011 and 2016.

Bruegel senior fellow Scott Marcus welcomes former European Regulators Group chairman Kip Meek to explore the consequences of Brexit for ICT policy-making in Europe.The divorce of the UK from the European Union will have far-reaching consequences for all sectors, but what will be the balance of continuity and disruption in the sphere of ICT regulation?With the terms of separation and the nature of the UK’s future relationship with the EU yet to be finalised, there are still many variables that could affect the final outlook. Nevertheless, we can explore the industry’s broader regulatory inclinations, as well as the areas that are most vulnerable to any serious disruption. Reflecting on the most essential problems that Brexit will pose to the ICT industry, Bruegel senior fellow J. Scott Marcus is joined in conversation by Kip Meek, former chairman of the European Regulators Group. For further reading, we recommend a blog post written by Scott Marcus on the question of whether mobile roaming arrangements can be maintained between the UK and EU post-Brexit. Kip Meek appeared as a panellist at an International telecommunications Society conference in Trento, Italy in August 2018, in a session moderated by Scott Marcus.

Following a conference at Bruegel, at a critical moment for the global economic system, Bruegel director Guntram Wolff is joined by Zhang Weiwei, director at The China Institute of Fudan University, together with Bruegel senior fellow Alicia García-Herrero, for a discussion of EU-China trade relations.With the United States pursuing a policy of imposing trade tariffs on its international partners, the geopolitical landscape is poised for change. What room is there, then, for closer economic ties between China and Europe in a world where a multilateral trading system cannot be taken for granted?There are many points, political and economic, on which European and Chinese approaches diverge; nevertheless, there remains the opportunity to focus on common ground, establish a more mutually beneficial relationship, while also standing up for the multilateral system.US trade tariffs have driven China and Europe together more quickly than they might have met otherwise. How prepared China and Europe actually are for building closer ties remains an essential debate. This conversation assesses what problems still prevent a smoother integration of interests in both the Chinese and the European spheres.We invite you to peruse the audio and video recordings of our sessions from the event, ‘Perils and potential: China-US-EU trade relations’, where Bruegel welcomed a number of Chinese and EU trade experts.For further reading, consider the Bruegel research paper looking into European and Chinese trade competition in Latin America, written by Alicia García-Herrero with Thibault Marbach and Jianwei Xu.Also note our blog post analysing data on bilateral trade, services, investment and protectionism between Asia, Europe and the US in recent years, determining whether the nature of the global economy is Transatlantic, Transpacific or Eurasian.

Immigration is one of the most contentious policy matters currently facing the EU. In this Director’s Cut of ‘The Sound of Economics’ Bruegel director Guntram Wolff welcomes Ana Palacio, member of the Spanish council of state and former foreign affairs minister, as well as Bruegel visiting fellow Elina Ribakova for a constructive discussion as to which approaches will yield the best results. Joining Bruegel director Guntram Wolff for this Director’s Cut of ‘The Sound of Economics’ is Ana Palacio, member of the Spanish council of state and former foreign affairs minister, and Elina Ribakova, Bruegel visiting fellow at Bruegel, to discuss the exact nature of the migration challenges currently troubling the EU. Previous agreement upon the creation of disembarkation centres on the north African coast constitutes only a policy step rather than a resolution. Still very little has been done to draw up a common European migration policy and consensus remains difficult while Member States continue to operate their own independent, broadly disparate policies. Separating the concept of migration and refugees is also key to improving the general understanding of the challenges; likewise, being clear that the number of arrivals in the EU is now significantly lower than in 2015. There is also progress to be made in accepting that integration is a two-way street, and that legitimate concerns should not be written off without a hearing. For further reading, consider the Bruegel Blueprint publication ‘People on the move: migration and mobility in the European Union’, which contains a wealth of research on the various challenges that immigration poses to Europe’s policymakers. Also recommended is this blog post by Zsolt Darvas which illustrates that Europe’s population growth would now be negative if it were not for the inflow of immigrants.

In the first episode of the new Backstage series on ‘The Sound of Economics’, Bruegel senior fellow Nicolas Véron takes time out from the Bruegel Annual Meetings to discuss the immediate future of European banking and capital markets union with Jörg Kukies, state secretary at the German ministry of finance. The euro-area reform agenda hopes to prevent the repetition of problems that arose during the crisis at the beginning of this decade – to provide better protection for taxpayers and depositors and to avoid any perception of privilege for the banks of one country over those of another. Although there appears to be consensus on the necessity of completing banking union, the question remains open as to which elements are still missing. On the matter of capital markets union (CMU), though the current European Commission has given great emphasis to progressing with the project, we are still quite far from consensus on the exact shape that a more integrated supervisory framework should take. This discussion gets into the details of the immediate challenges and the particular sticking points in negotiations over banking and capital markets union. For further reading, consider the Policy Contribution on making a reality of Europe’s capital markets union, co-written by Nicolas Véron, André Sapir and Guntram Wolff. Meanwhile, in a previous edition of the Director’s Cut podcast, Nicolas Véron discusses the importance of developing deposit insurance as a part of Europe’s broader banking union aspirations.

Bruegel senior fellow Zsolt Darvas joins Sean Gibson on ‘The Sound of Economics’ to expound on the themes of a Policy Contribution on the macroeconomic implications of healthcare systems, which he has co-written with Nicolas Moës, Yana Myachenkova and David Pichler.This episode is the first in a new Bruegel podcast series, ‘Deep Focus’, looking specifically at Bruegel research and elaborating on the insights contained therein, in conversation with the authors. The effects that healthcare systems can impose upon economies are pronounced and far-reaching. The health sector alone accounts for a significant portion of output and employment in the EU, even before we look at the pharmaceutical companies conducting research and development towards healthcare. From a fiscal point of view, health is one of the most expensive items on a government’s list of expenses. In this analysis, the scholars measured the efficiency of each EU healthcare system – and of several from beyond the EU’s borders. The results illustrate that improving healthcare outcomes is not as simple as investing more and more money in the system. In this podcast, we discuss some of the areas where real differences can be made both to the health of the general public and to the cost incumbent upon governments.For further reading, consider our blog post digging into the details of the ongoing lack of German public investment, written by Alexander Roth and Guntram Wolff.

Bruegel director Guntram Wolff welcomes Brad Setser, senior fellow at the Council on Foreign Relations, and Jean Pisani-Ferry, mercator senior fellow at Bruegel, to discuss the deterioration of Turkey's economy. Although a recent souring of relations with the US has provided the immediate prompt for Turkey's current crisis, the country's underlying economic malaise is more deeply rooted. Headlines have tracked the plummeting value of the lira, while the trust of external investors has been challenged by recent policy decisions. Though Turkey's case bears some of the hallmarks of a textbook emerging-market meltdown, there are key divergences. Meanwhile, President Erdogan's previous refutation of IMF policy recommendation does not bode well for potential assistance in the event that Turkey needs help brokering extension agreements with its creditors. In conversation with Brad Setser, senior fellow at the Council on Foreign Relations, and Jean Pisani-Ferry, Mercator senior fellow at Bruegel, Guntram Wolff assesses not only the nature of the crisis in Turkey but how the country might navigate its way back to safer economic waters. For further reading, consider the recent blog post written by Grégory Claeys and Guntram Wolff discussing how the EU might respond to the currency crisis unfolding in Turkey, including options for the EU to help Turkey in the absence of any agreed IMF assistance programme.

More than two months after the Italian elections and its turbulent political negotiations, Italy finally has a new government. While this has had a calming effect on the financial markets, Italy's medium and long term economic outlook is yet to be determined. Bruegel affiliate fellow, Silvia Merler, is joined by Marcello Minenna, PhD lecturer at the London Graduate School and Head of Quants at Consob, and Lorenzo Codogno, LSE visiting professor, to examine the different ways the country can move forward.Starting off this Sound of Economics, Silvia examines the new government's policy priorities and discusses the message of uncertainty it sends to financial markets and investors. Indeed, the way in which the government will finance its promises is still uncertain, thus leaving room for unpredictability. In the short and medium term, Lorenzo puts forward the proposal that the new government should tread carefully by introducing policies gradually in order to maintain fiscal stability and discipline.The three guests address the widely discussed topic of Italy's euroscepticism. Italy's relatively stagnant economic growth over multiple generations is seen as a key factor in the country's present-day skepticism towards the single currency. They agree that, although an 'Italexit' is an unlikely scenario, it is nonetheless an important one to consider. Moreover, Marcello points out that Italy's situation is also a testament to ongoing issues at the European level, requiring a reform of the eurozone's policies and a tough look at its current functioning.

Bruegel director Guntram Wolff and Ashoka Mody – visiting professor in international economic policy at Princeton University – explore subjects addressed in the latter’s latest book, Euro tragedy: a drama in nine acts.Kicking off this Director’s Cut of the 'The Sound of Economics', the two explore the historical development behind the EU's creation. Ashoka Mody argues that the adoption of the euro as a single currency has exacerbated economic divergences between EU Member States as some do not have the institutional maturity or capabilities to fully adopt monetary policy measures. Guntram Wolff points out that in the view of Helmut Kohl, the adoption of the euro was a means to further reunite the continent and support peace-building. They also discuss the role of social democracy in the drama on the future of Europe.The conversation from this episode explores the development of the EU from its early history until its present-day situation. Member States’ commitments to the European project from a political and economic point of view are touched upon, with a particular focus on Germany's role within the whole debate. For a more in-depth discussion on the subject, be sure to play back the full recording of the Bruegel event chaired by Maria Demertzis and featuring Ashoka Mody and Guntram Wolff.

According to Annamaria Lusadi, academic director at the Global Financial Literacy Excellence Center, financial literacy requires both a knowledge of financial concepts and the confidence to make effective financial decisions in order to maximise one's well-being. Financial literacy is not only limited to knowledge of monetary calculations, but is also measured by the extent to which individuals understand their financial rights and obligations, in addition to their ability to educate themselves on financial matters. People are increasingly expected to have the appropriate skills to manage their own financial decisions; however, the rapidly shifting financial environment often proves to be extremely complex to understand and, thus, leaves many with poor financial literacy abilities. The young, the elderly, women, and people with low-education levels are particularly susceptible to the negatives effects of low financial literacy. The consequences of the situation are harmful both for the individual and at a national level. Just as reading and writing skills are a part of the educational curriculum, Annamaria Lusadi believes that financial literacy courses should now be a requisite part of school programmes. Moreover, the adult population should also have access to workplace and public financial education programmes. All in all, good financial literacy skills have long-term beneficial effects; sound financial decisions take today's resources and invest them in the future. As a result, policy-makers should redouble their efforts in this area. Maria Demertzis has co-authored a Bruegel Policy Contribution with Uuriintuya Batsaikhan on financial literacy and inclusive growth in the European Union. Annamaria Lusardi previously made a presentation at the Bruegel event, ‘The importance of being financially literate’.

Paul Tucker, former deputy governor of the Bank of England, joins Bruegel director Guntram Wolff to discuss the thesis of his new book, as well as the current tensions within current models of central banking governance.On the agenda is the contention that there is, and even should be, a limit to the level of responsibility that a central bank can reasonably be expected to shoulder. Some decisions have such far-reaching consequences that we might prefer they be made by elected, rather than appointed, officials.Paul Tucker presented his book in an event at Bruegel in May 2018, with Bruegel deputy director Maria Demertzis hosting a debate between Paul Tucker, Joanne Kellermann, former member of the Single Resolution Board, and Jean Pisani-Ferry, mercator senior fellow at Bruegel.For further reading, consider 'Central Banking in Turbulent Times' - a book co-written by Bruegel senior fellow Francesco Papadia with Tuomas Valimaki, launched at a Bruegel event in April 2018.Additionally, we recommend reading Silvia Merler's collation of economists' opinions on the current state of central banking in an age of populist politics.

Technological advancements continue to drive change in every industry. In a recent working paper co-written with Francesco Chiacchio and David Pichler, Bruegel research fellow Georgios Petropoulos has explored the impact of the increasing number of robots on employment and wages in Europe.The introduction of robots constitutes only one industrial advance among many, and each automated technology has different impacts on employment. The impacts across social strata can also be disparate.In this episode of ‘The Sound of Economics’, Georgios Petropoulos discusses the findings of his study, which focuses on six EU countries (Finland, France, Germany, Italy, Spain, Sweden) that account for 85% of robots in the EU market. Specifically this work sought to answer the question of whether robots have a positive or negative effect on EU employment and wages, and to place its conclusions in the context of other studies of automated technologies and their consequences for labour.The research pertinent to this podcast can be found in our publication: ‘The impact of industrial robots on EU employment and wages: A local labour market approach’. Meanwhile, Georgios Petropoulos has previously detailed the specifics of the growing presence of robots in EU industries in a Bruegel blog post.He has also written an article questioning whether we understand the impact of artificial intelligence on employment. Elsewhere, a number of Bruegel scholars have collaborated on our Blueprint book of research: ‘Remaking Europe: the new manufacturing as an engine for growth’. This comprehensive study looks at how well European firms are responding to new opportunities for growth, and in which global value chains they are developing new activities.

The coalition agreement between Italy’s Five Star Movement and the League puts the country’s new government on a potential collision course with the European Union, and has prompted fears that the country could nosedive out of the euro zone.Markets have already born witness to investor nervousness over the coalition’s proposed agenda, and the new government’s priorities run counter to the prevailing fiscal and monetary policies of the euro area. If Italy were to follow through on its new plans for spending, the expected reaction in among bond-buyers would make it very difficult for Italy to finance its already-significant amount of public debt.Any discussion of a possible default necessarily involves the euro area – as Bruegel’s database of sovereign bond holdings illustrates. Just how exposed are the other members of the currency bloc, and what paths might be taken in order to avert a crisis?In this week’s Director’s Cut, Bruegel senior fellow Francesco Papadia joins Guntram Wolff to assess the problems that currently occupy both Italy and the EU.For further reading, note Guntram Wolff’s article on why Europe needs a strong Italy, whoever is leading the government.Also consider looking at Jean Pisani-Ferry’s opinion piece on the opportunity that such political upheaval might offer Italy to overcome its longstanding internal issues.

The global financial crisis exposed flaws in the methods and theories of macroeconomics. Certain aspects of the crisis were completely unexpected; other burgeoning problems were flagged up but explained away, and thus allowed to get worse. As the profession seeks to reinvent itself post-crisis and reassert its worth, what exactly has been learned and what changes have been made to the practice of macroeconomics? New models appear to be flourishing, but debate continues over whether we have improved our understanding and mitigated the potential for misreading the results that these models present. In this Director's Cut of 'The Sound of Economics' podcast, Bruegel deputy director hosts a conversation with Nicola Viegi, South African Reserve Bank professor of monetary economics at the University of Pretoria, and Frank Smets, director general of economics at the European Central Bank. For further reading on this topic, consider our overview of the ‘Rebuilding Macroeconomic Theory Project’ recently concluded by the Oxford Review of Economic Policy, written by Konstantinos Efstathiou.

The deepening and enlargement of Europe’s capital markets has long been a policy target for the EU – indeed, it is a flagship priority of the current Commission. Many legislative proposals have been forwarded, and there is widespread agreement on the necessity of the Capital Markets Union (CMU) project, but few tangible measures have been formally adopted.Joining Bruegel director Guntram Wolff for this week’s Director’s Cut of ‘The Sound of Economics’ is Valdis Dombrovskis, vice-president of the European Commission, overseeing the department of Financial Stability, Financial Services and Capital Markets Union.The Bruegel director met Vice-President Dombrovskis at the informal meeting of the EU’s Ecofin Council in Sofia, where the former presented a research paper (co-written by André Sapir and Nicolas Véron) advocating significant steps forward in the CMU project.The vice-president here expounds on the Commission’s own planned measures to have significant initial elements in place before the end of the current term in 2019.

The EU's transport sector is now a significant burden in the context of commitments made under the Paris Agreement to reduce carbon emissions. Transport is the only sector in which Europe's CO2 emissions are now higher than in 1990.Countermeasures are imperative, but it is not a simple challenge to abandon car-friendly policies; policymakers are not blind to economic benefits brought about by the automotive industry in the past.In this episode of 'The Sound of Economics', Bruegel fellows Simone Tagliapietra and Georg Zachmann discuss the findings of a Policy Brief that they have co-written containing policy prescriptions for cleaning up Europe's transport sector.Utilising taxation, as well as funds already allocated within the current multiannual financial framework, the EU can incentivise change not only in the habits of Europe's citizens but its industry leaders too, promoting the policy discussion at country- and city-level where locally appropriate plans and changes can be introduced. Though the EU's research and development funding for transport is dwarfed by that of the continent's automotive sector, there are fields in which the EU can take the lead – fields which private money would otherwise leave undeveloped.

As global trade war continues to unfold, Bruegel director Guntram Wolff is joined for this Director's Cut of 'The Sound of Economics' podcast by Bernd Lange MEP, chair of the Committee on International Trade (INTA), to discuss Europe's options.Increasingly it appears that the EU will have to choose between standing strong with the established laws of the World Trade Organisation (WTO), or striking a deal for a permanent reprieve from the US trade tariffs.There is no question that the tariffs have significant implications for European industry. Indeed, as the US and China brandish lists of further products on which they would consider imposing tariffs, the full scale of the potential future damage to EU exporters is unclear. Yet there remains some hope that the EU could align with other nations to use the WTO to bring US President Trump back on side.To discuss what opportunities as well as threats this current stand-off presents to the EU, Bernd Lange - member of the European Parliament and chair of the Committee on International Trade (INTA) - joins Bruegel director Guntram Wolff in this instalment of 'The Sound of Economics'.

In this week’s Director’s Cut of ‘The Sound of Economics’ podcast, Bruegel director Guntram Wolff talks with Nicolas Véron, senior fellow at Bruegel, about the implementation of a European Deposit Insurance Scheme (EDIS), one of the three pillars needed for the completion of banking union. Significant progress has been made on European banking supervision and resolution schemes, but the debate on a common framework for deposit insurance has remained stuck since the first consistent proposal in 2012.Member States are currently enjoying their own deposit insurance system, an example of financial fragmentation through the various national differentiations of policy instruments. The Cyprus case highlights the flaws of a national-level system, based only on a presumption of financial assistance between Member States in case of bail-out.The financial crisis has proven this is not sufficient. Referring to his own research, Nicolas Véron, senior fellow at Bruegel, recommends strengthening trust by setting up a fully integrated, country-blind deposit insurance system to break the vicious circle of the linkage between banks and sovereign debt.In this episode of ‘The Sound of Economics’, Nicolas Véron joins Bruegel director Guntram Wolff to debate the implementation and advantages of such a common system, aiming in the long-term at the completion of a harmonised banking union.

Proponents of blockchain see it as the future – but when might it become the present? In this latest episode of ‘The Sound of Economics’ we welcome Julio Faura, global head of innovation at Banco Santander, and Johan Pouwelse, associate professor at Delft University of Technology, to help illuminate the blockchain concept and where it could be taking us.The development and implementation of blockchain networks is meant to give everyone an opportunity to participate in a market that is not controlled by a central body.Questions remain, however, over the practicality of blockchain networks; how to transition from proof-of-concept to real-world usefulness, how to integrate with and provide benefits for the world economy, and where the greatest benefits of such decentralisation might lie.Shining a light on the brave new blockchain world in this latest episode of ‘The Sound of Economics’ is Julio Faura, the global head of innovation at Banco Santander, and Johan Pouwelse, associate professor at Delft University of Technology and found of the Tribler peer-to-peer service.Both Julio Faura and Johan Pouwelse participated in the Bruegel event ‘The implications of blockchain platforms’, video and audio recordings of which can be reviewed on our events page.

In this week’s Director’s Cut of ‘The Sound of Economics’ podcast, Bruegel director Guntram Wolff hosts a discussion with Bruegel fellows Alicia García-Herrero and André Sapir on where Europe will position itself between the two major trading powers of China and the United States if relations continue to cool.Bruegel director Guntram Wolff begins his regular Director’s Cut of ‘The Sound of Economics’ podcast with a broad assessment of the recent fomentation of global trade tension, joined in conversation by Bruegel fellows Alicia García-Herrero and André Sapir.Amid escalating trade tensions, Europe is still working out where it stands between China and the United States. Reprieved – for now at least – of inclusion in the US tariff on steel and aluminium imports, the EU remains regretful of the prospect of global trade war.China, and Asia more broadly, faces a range of difficulties in the event of a tariff tit-for-tat. Some countries will have to choose where they align themselves; other countries will not have the option to choose.For a more in-depth look at global trade balances, consider Nicolas Moës recent Bruegel blog post data on bilateral trade, services, investment and protectionism between Asia, Europe and the US in recent years.Meanwhile, Francesco Chiacchio has written another blog post identifying which sectors would be most vulnerable to any deterioration in relations between the EU and the US.

Ongoing negotiations over the next multiannual financial framework represent an opportunity for the EU to support its new priorities, such as increased investment in border control and defence.However, new investment necessitates either an expansion in the size of the budget or cuts to other sectors – each a difficult sell to different Member States. Brexit compounds the problem of finding funds for the seven-year framework, which will run from 2021-27.The Common Agricultural Policy (CAP) accounts for a sizeable portion of the current budget, and Bruegel director Guntram Wolff here elaborates on the possibility of freeing up more space in the budget by freezing funding for CAP – either in real or nominal terms – based on a research paper he has co-authored with Bruegel senior fellow Zsolt Darvas.Joining the conversation in this episode of ‘The Sound of Economics’ is Lars Hoelgaard, former deputy director general at the Directorate-General for Agriculture and Rural Development, who explores specific options for reforming the CAP.

In this episode our senior fellow, André Sapir discusses with Uri Dadush, non-resident scholar here at Bruegel about President Trump's announcement to apply a 25% tariff on all steel and a 10% tariff on all aluminium imports into the United States.

What comes next for the euro area? Europe has emerged from crisis, and progress has been made with banking union; but more can be done to reform the EU budget and improve the public perception not only of EU money but of the Union itself.Gideon Rachman, chief foreign affairs correspondent at the Financial Times, and Manfred Weber, chair of the EPP Group in the European Parliament, discuss their thoughts on current state and future direction of the euro area alongside Bruegel director Guntram Wolff. Guntram Wolff, Gideon Rachman and Manfred Weber enjoyed a lengthier debate on this same topic at the third Bruegel-Financial Times Forum earlier this week.

Bruegel senior fellow André Sapir clarifies the UK's options for a new relationship with the EU in the wake of Brexit.The UK's position relative to the European Union following Brexit remains undecided. With negotiations ongoing, Bruegel senior fellow André Sapir explains the UK's options, and explores the scope for a new kind of relationship between the two parties.This latest episode of 'The Sound of Economics' considers what it might mean, in reality, for the UK to remain in a customs union with the EU but to leave the single market, as well as what the examples of Turkey and Norway can indicate about the UK's potential future dealings with the EU.André Sapir has also co-authored a blog post with Bruegel deputy director, Maria Demertzis, elaborating on the various paths open to the UK in phase two of the Brexit negotiations.Maria Demertzis has more recently considered in a blog post why a positive Brexit outcome matters not just for the UK, but for the EU too.

Bruegel director Guntram Wolff frames the two debates that will dominate the upcoming meeting of the European Council on 23 February 2018 – the shape of the next EU budget, and the method by which a new European Commission president will be appointed.Major questions still hang over the next EU budget, or multiannual financial framework (MFF), and not just because of Brexit.The next budget, another seven-year MFF that will run from 2021 through to 2027, will likely reflect Europe’s developing priorities in sectors such as defence, border control and fighting climate change. Other sectors may face a cut in spending, particularly given the shortfall left as a result of the UK’s departure.Elsewhere, the European Council and European Parliament have still to reach agreement over the future of the Spitzenkandidaten process, by which the appointment of current European Commission president Jean-Claude Juncker was decided in 2014.These topics are lead items on the agenda for the European Council meeting on February 23. Bruegel director Guntram Wolff features in this episode of ‘The Sound of Economics’, highlighting the key considerations and likely deciding factors in the debates still to be had.

Bruegel fellow Georg Zachmann joins Richard Tol, professor in the Department of Economics at the University of Sussex, and Pieter-Willem Lemmens, head of analysis at the climate policy think-tank Sandbag, for this episode of 'The Sound of Economics', to discuss the impact of Brexit on climate and energy policy in the European UnionBritain's departure from the European Union poses questions not only for the EU energy market, but the bloc-wide climate-change targets and emissions trading system.Presented by Sean Gibson, edited by Giuseppe PorcaroIn the energy context, Brexit not only marks the separation of Britain from the EU but also places Ireland in a uniquely difficult position, having previously utilised infrastructure in Britain to connect to the rest of the EU.On the matter of climate change, the loss of Britain might make it more difficult for Europe to meet current targets, and set further ambitious goals for the future.In this episode of 'The Sound of Economics', senior Bruegel fellow Georg Zachmann joins the conversation with Richard Tol, professor in the Department of Economics at the University of Sussex, and Pieter-Willem Lemmens, head of analysis at the climate policy think-tank Sandbag.Georg Zachmann co-authored a research paper in November 2017 for the European Parliament’s Committee on Industry, Research and Energy, about the impact of Brexit on the Irish energy system - also writing a Bruegel blog post on the same topic. More recently Georg has written an opinion piece on how climate-change policies risk increasing social inequality.

The final document on the German coalition agreement will have significant consequences for the European Union and the Eurozone. Bruegel director Guntram Wolff gives his assessment of the agreement's key features in this episode of 'The Sound of Economics'The negotiations to form the next German government have been a significant factor in European affairs for months now. With an agreement finally struck, this episode of 'The Sound of Economics' sees Bruegel director Guntram Wolff analyse the document of the agreement and what it means for the EU.In short, there is a lot of continuity: the Bundestag remains in charge of the European Stability Mechanism, and the EU's fiscal rules are praised; there will be money for the EU budget, too. More significant is the will to move towards a common tax base and minimum tax rate for corporate taxation. Overall, this is not a breakthrough for Europe.Further reading:What has driven the votes for Germany’s right-wing Alternative für Deutschland? - by Alexander Roth and Guntram B. WolffSPEAKER:Guntram B. Wolff, Director, Bruegel.PRODUCTION:Sean Gibson & Giuseppe Porcaro

Brexit has afforded the European Parliament with the opportunity to reform - but will the current proposals for reallocating the UK's 73 seats after 2019 fully realise that opportunity?In the latest chapter of 'The Sound of Economics', Bruegel director Guntram Wolff highlights the potential political ramifications of seat reallocation, and the difficulties inherent in making the Parliament more representative while staying within the bounds of previous agreements.Read more on the topic on Bruegel websiteSPEAKERGuntram B. Wolff, Director, BruegelPRODUCTIONSean Gibson & Giuseppe Porcaro

SUMMARY: Manufacturing in its 21st century guise is markedly different from its traditional portrayal. Innovations are not only improving the efficiency of production processes but are also allowing for the establishment of more complex supply chains, with smarter communications systems and big-data management systems driven by an increasing digitalisation.Companies in a variety of sectors in Europe are having to adapt quickly to keep pace with the change. In this episode of the Sound of Economics, Simone Tagliapietra discusses how the established energy companies are ensuring they stay relevant in this new age; J. Scott Marcus elaborates on the opportunities thus far missed in Europe to make e-commerce work better for everyone; and Reinhilde Veugelers looks at what Europe needs to do to maintain a global presence as new manufacturing takes hold, and what lessons might be learnt from elsewhere.Each of these three scholars has contributed significant research to the Bruegel Blueprint publication 'Remaking Europe: the new manufacturing as an engine for growth', which explores the topic of new manufacturing in Europe across many sectors.SPEAKERSJ. Scott Marcus, Senior Fellow, BruegelSimone Tagliapietra, Research Fellow, BrugelReinhilde Veugelers, Senior Fellow, BruegelPRODUCTIONSean Gibson & Giuseppe Porcaro

The issue of member-state integration in two or more speeds is one of the recurring questions in the debate about the European project. While previously this was a subject for academic circles, it has now moved into policy circles. Is this the future of Europe? Would the idea of proceeding in two or more speeds provoke a break-up of the EU? Is it an opportunity for each country to rethink and renew its commitments to the European project? In this episode of the Sound of Economics, Bruegel's deputy director, Maria Demertzis, asks some of these questions to Sandro Gozi, Italy's State Secretary for European Affairs.#Multispeed #Europe #FutureOfEurope #EU

Senior Bruegel fellow Zsolt Darvas discusses the impact and integration of migrants in the European Union, based on a new research paper he has co-authored with Uuriintuya Batsaikhan and Inês Gonçalves Raposo.Joining him on 'The Sound of Economics' is Manu Bhardwaj, vice president for research and insights at the Mastercard Centre for Inclusive Growth, while Sean Gibson takes the reins of his first podcast as the new Bruegel press officer.Zsolt Darvas has written several blogs ahead of the release of the research paper, the issues of which are discussed in this episode:How the EU has become an immigration area by Zsolt DarvasSupport for intra-EU mobility of people is on the rise by Zsolt DarvasThe challenge of fostering financial inclusion of refugees by Zsolt DarvasIn addition, watch Bruegel's event on the same topic: Better policies for people on the moveSPEAKERS Manu Bhardwaj, Vice President for Research and Insights, Mastercard Center for Inclusive Growth, & Zsolt Darvas, Senior Fellow, BruegelPRODUCTION Sean Gibson & Giuseppe Porcaro

Bruegel senior scholar Nicolas Véron speaks with Steven Maijoor, the chair of ESMA, about the future of the Capital Markets Union (CMU), and of the EU's financial supervisory architecture. Currently, the organisation of the European Supervisory Authorities (ESAs) is based on a sectoral approach with one ESA for each sector: separate authorities for banking, insurance, and securities and markets. Maijoor's institution, ESMA, is an independent EU Authority that contributes to safeguarding the stability of the European Union's financial system by enhancing the protection of investors and promoting stable and orderly financial markets. What does he think about the future of CMU, and the regulatory changes that might entail?

Bruegel scholar Dirk Schoenmaker speaks with James Murray, London’s Deputy Mayor with responsibility for housing. They talk about the challenges London is facing in guaranteeing fair access to reasonably-priced housing. What is the right balance between rental and owned accommodation? And how much can local government influence the housing market in our most desirable cities? SPEAKERS Dirk Schoenmaker, Senior Scholar, Bruegel James Murray, Deputy Mayor of London for Housing and Residential Development PRODUCTION Giuseppe Porcaro Bryn Watkins

Bruegel’s Alicia García-Herrero and Robin Niblett of Chatham House discuss a new joint report on EU-China relations. How easy was it to find common ground with Chinese partners? And what should be the priorities for economic cooperation between Europe and China?In this episode of The Sound of Economics, we host a conversation between Alicia García-Herrero and Robin Niblett. Our guests talk about a new joint report, EU–China Economic Relations to 2025, produced by four leading institutes in Europe and China.They discuss the process of finding common ground between the authors, and draw out some of the most interesting findings. It turns out that the most obvious sphere for EU-China economic cooperation, trade and investment, might be the most difficult. So what could be the next step for Europe and China?SPEAKERS Alicia García-Herrero, Senior Scholar, Bruegel Robin Niblett, Director, Chatham House CREDITS Presented and produced by Bryn Watkins#EU #China #Cooperation #economics

In this episode of The Sound of Economics we focus on trade multilateralism. What are the advantages of a multilateral approach to trade, and what are the risks? What challenges is the global trade system facing, and how should Europe react? Bruegel’s André Sapir explains the benefits of multilateral trade agreements, and calls on society’s to find ways to compensate those who lose out. Arancha González, executive director of the International Trade Center, makes a strong case against protectionsism. Petra Pinzler, journalist and author, highlights the weaknesses in some narrow economic thinking about trade and argues for better quality trade agreements that empower states. And Guntram Wolff, Bruegel’s director, discusses Europe’s place in the multilateral trade system. #Trade #Europe #Protectionism #Globalisation #Multilateralism

In this episode of The Sound of Economics, we host a conversation between Jean Pisani-Ferry and Guntram Wolff on the future of Europe after the French election. Our guests discuss how to address the urban-rural divide that was visible not only in the French election, but also in the Brexit vote and the US election. They also address Emmanuel Macron's pro-European platform, and discuss the significance of winning on such a platform. Finally, they speak about what Macron's victory will mean for the future of the eurozone. SPEAKERS Guntram Wolff, Director, Bruegel Jean Pisani-Ferry, Director for Programme and Ideas of Emmanuel Macron’s presidential campaign CREDITS Presented by Bryn Watkins Produced by Giuseppe Porcaro

This episode of The Sound of Economics focuses on the banking system in Europe and some of the challenges it is facing. The financial crisis made it clear that more should be done to create conditions for a safer financial system. The EU has taken measures to do that, and one of those measures is the creation of the banking union, which implies bringing all instruments of the banking sector policy to the eurozone level.Nicolas Véron explains to which extent the banking union has been completed, and shares his assessment on how successful the implementation of the new framework has been so far. While there are some aspects of the framework that can already be assessed, it seems that addressing the issues of Italian banks will be the first big test of how it will function in practice. Silvia Merler shares her opinion on the situation in Italy and reforms that have been taken so far.One of the key aspects of the banking union is the creation of the European deposit insurance scheme, which has proven to be the most challenging part of completing the banking union. Dirk Schoenmaker reflects on the topic.Our guests go on to discuss how Brexit will affect the European banking and which risks and opportunities it might bring. Finally, they identify some of the challenges that the European banking system will have to address in the longer run.SPEAKERS Silvia Merler, Affiliate FellowDirk Schoenmaker, Senior FellowNicolas Véron, Senior FellowCREDITS Presented and produced by Antonija Parat

This episode of The Sound of Economics focuses on labour mobility in Europe. Anti-immigration sentiment is on the rise due to the perception that immigrants are taking away jobs and benefits. But what is the real impact of migration on European labour markets? What are the economic challenges for migrants and how do these challenges impact on social integration? These are some of the questions we explore with our guests.Alessandra Venturini speaks about the perception of migrants and how it differs from research findings. Samuel Engblom argues that the impact of migration on labour markets depends on political choices, and that it varies between countries. Anna Ilyina discusses IMF research on the economic impact of emigration from Eastern Europe, and Maria Demertzis emphasises the effect of migration on sending countries.Finally, our guests debate what the ideal policy response to migration should be, and how perception of migration could be improved.SPEAKERS Maria Demertzis, Deputy Director, Bruegel Samuel Engblom, Policy director, The Swedish Confederation of Professional Employees (TCO) Anna Ilyina, Division Chief, International Monetary Fund Alessandra Venturini, Deputy Director Migration Policy Center,Robert Schuman Centre for Advanced Studies, European University Institute (EUI)CREDITS Produced and presented by Giuseppe Porcaro

This episode of The Sound of Economics focuses on artificial intelligence (AI). The important technological advancements in computer science and information systems move us towards the artificial intelligence era with the creation of computing machines and systems that perform operations analogous to human learning and decision making. How will our lives change in this new era?Robert Atkinson shares his opinion on how AI will develop in the future and what we can expect from this development. Anna Byhovskaya addresses the widespread perception that AI will replace jobs as we know them. Is that a myth to be debunked or something we should be ready for? Merja Kyllönen discusses the role of legislators in the process of AI advancement, and Georgios Petropoulos emphasises other important issues to consider, such as the role of companies.Our guests go on to discuss the specific ways in which AI might change the nature of work. They also debate whether it will have an impact on politics and the political process. Finally, they discuss what they think will be the biggest change resulting from AI development.SPEAKERS Robert Atkinson, President, Information Technology and Innovation Foundation Anna Byhovskaya, Policy & Communications Advisor, TUAC/ OECD Merja Kyllönen, Member of the European Parliament Georgios Petropoulos, Research Fellow, BruegelCREDITS Produced and presented by Giuseppe Porcaro

This year marks the 60th anniversary of the signing of the Treaty of Rome, which started the process of European integration. This presents an opportunity to reflect on the progress that has been made so far, and to discuss what Europeans can expect in the future. We explore some of the central questions on this topic with our guests.Europe is facing a period of doubt and uncertainty, but this is not the first time it has faced a crisis. We begin this episode by asking Emmanuel Mourlon-Druol how today's challenges compare to previous periods where Europe has faced difficulties. Ivan Krastev goes on to discuss how much control Europe has over its decision-making, and to what extent it responds to external circumstances.As uncertainty especially affects the younger generation of Europeans, Johanna Nyman examines how young people perceive the future of Europe and what they have to look forward to. Guntram Wolff shares his view on what Europeans should be hopeful about, and what they should worry about.Our guests go on to debate what Europe can offer its citizens and what questions it will have to answer to move forward. Finally they reflect on the impact of the Treaty of Rome over the last 60 years.SPEAKERSEmmanuel Mourlon-Druol, Non-resident fellow, BruegelIvan Krastev, Chairman of the Centre for Liberal Strategies ,Sofia and Permanent fellow at the Institute for Human Sciences, ViennaJohanna Nyman, Expert on youth policy and human rightsGuntram B. Wolff, Director, BruegelCREDITSProduced by Giuseppe Porcaro Presented by Bryn Watkins