Green Economy

Something sounds awry about the term ‘twin transition’. The concept, often used in EU or UN contexts, ties two crucial transitions: the move to renewable energy and the digitalisation of economies. While it sounds forward thinking, evidence suggests this pairing may be less beneficial than promised. As developing countries bear the socio-environmental costs while reaping limited benefits, a handful of tech giants continue to dominate global markets. Paz Peña raises a crucial question: is this ‘transition’ truly a path to equity, or does it deepen old divides under the guise of green progress?

European Commission President Ursula von der Leyen tasked Mario Draghi, former President of the European Central Bank and former Italian Prime Minister, to write a comprehensive report on the state of the European economy. In this long-awaited report, the Italian economist provides a substantive analysis on how a changing geopolitical landscape, an energy shock, demographic change, climate change, and international competition put stress on the European economy and the European social model. We asked Sander Tordoir, Chief Economist at the Centre for European Reform, for his first reactions to the report.

Infrastructure deficiencies are paralysing Germany. But as a result of the Schuldenbremse (debt brake), urgently needed investments – including to boost climate protection – are to be postponed. This is both risky and economically short-sighted.

Europe can die. This was the warning issued by Macron in his second Sorbonne speech. However, it is not only Europe that can die, but also its industry. So far, Europe is falling behind in the race for future markets such as green and digital technologies and biotechnology, and is instead becoming strategically dependent. The European Union must use the next legislature to build an industrial policy worth its name, even if this means a historic turn.

From Russia’s war in Ukraine to the green and digital transformation, we’re not short on challenges nowadays. What we are lacking is the vast sums of money needed to deal with them. The EU requires an estimated 500 billion euros a year for the green transition, while NATO’s European members need to find another 56 billion euros annually to meet the alliance’s 2% defence spending target.

Five years after the European Green Deal was launched, Europe's economic strength and security are at stake. What lies ahead for the German and European economy? A conversation with Sandra Parthie and Roderick Kefferpütz.

With the floods in northern Germany, the relaxation of the country’s debt brake is back on the agenda. But instead of always returning to the same debates, what is finally needed is sustainable reform. A new study shows what this could look like and sets out the options for financing climate protection over the short term.

It’s been one year since the US passed the most significant climate bill in American history. The achievement, after years of failures, offers lessons for progressive movements on building coalitions, creating hopeful narratives, rebuilding trust in government-led solutions, and expanding grassroots support.