Documents Intereconomics. Review of European Economic Policy 334 results

"The COVID-19 pandemic has completely disrupted the European labour markets. Demand has collapsed in certain sectors, teleworking has become the norm in others, and the use of digital technologies in services and businesses has experienced a significant acceleration. While the use of short-time work schemes contributed – especially in the initial months of the crisis – to preserving employment and avoiding massive layoffs, unemployment and the inactivity rates are increasing and this course is expected to continue. Such a constellation poses significant challenges to European labour markets. Multiple questions arise around job creation and destruction, up- and re-skilling of the labour force, spatial or sectoral relocation of dismissed workers and the quality of the newly created jobs..."

"In just a few short months, the new government administration in the United States has thrown the world order into disarray. A potential global trade war, new global value chain configurations and shifting security alliances are reshaping geopolitics. Given the current uncertainty, access to developing technologies will be decisive, and technological sovereignty is more important for the European Union than ever before. How can the EU get up-to-speed? What steps can Europe take to ensure its technological sovereignty? How should it go about relations with China and the new Trump Administration with regards to its tech policy? What role does Big Tech play in European security?"

"As the COVID-19 pandemic causes a record number of people to work from home, this disruptive event will likely have a long-lasting impact on work arrangements. Given existing research on the effects of working from home on hours worked and wages, an increased availability of working from home may provide a chance for women to catch up with their male counterparts. Yet, the need to simultaneously care for children during the COVID-19 lockdown may also revive traditional gender roles, potentially counteracting such gains. We discuss the likely effects of the COVID-19 pandemic on gender gaps in the labour market and at home in light of recent empirical findings and novel statistics on the heterogeneous structure of work arrangements among couples. We construct a novel teleworkability index that differentiates between fully teleworkable, partly teleworkable and on-site jobs and find that in about a third of households the COVID-19 shock is likely to induce shifts in the intra-household allocation of tasks from mothers to fathers."

"After decades marked by struggles to combat high unemployment, today's main challenge is labour market shortages. Since the aftermath of the COVID-19 pandemic and despite the economic slowdown driven by Russia's invasion of Ukraine, EU labour markets have demonstrated remarkable resilience. Employment reached a record high in 2022 and the trend is expected to continue. Most companies, in the EU and beyond, are now struggling to fill vacancies. Labour and skill shortages in several sectors are the new problems to overcome. What are the reasons behind these shortages? Are these only temporary issues? Has unemployment ceased to be a burning issue? What policy options could address these challenges? Based on their presentations at the 2024 edition of the Centre for European Policy Studies' flagship conference, Ideas Lab, the contributors to this Forum attempt to answer these questions, discussing recent shifts in the labour market and policy solutions to address the different sources of shortages."

"As of 7 March 2024, the EU Commission began to enforce its controversial Digital Markets Act (DMA). This article sheds light on the recent debate. It lists the dos and don'ts of the DMA as well as stakeholder reactions to them before tracing some of the underlying motivations and reasoning that emerge from the EU's current policy reversal with reference to dealing with abuse of dominant positions in line with Article 102 of the Treaty on the Functioning of the European Union. Following this, the paper reviews economic aspects of digital platforms, concerns about market foreclosure and essential facility as well as appropriate remedies before closing with a discussion of the challenges in stipulating and enforcing efficient rules to govern digital platforms. It is argued that the DMA ought to be rewritten to stipulate clear and cogent legal standards, return to a strengthened system of ex post control and provide platforms with the opportunity to deliver efficiency defenses as part of corporate self-regulation."

"EU member states observe an elaborate process to preserve macroeconomic stability: the macroeconomic imbalance procedure (MIP). The MIP is supposed to monitor and prevent macroeconomic imbalances – and if necessary, correct them. It considers a variety of variables to determine the existence of imbalances, e.g. the current account balance or unit labour costs. However, the macroeconomic impact of climate change is ignored. In light of the growing economic risks due to climate change, this article argues that the MIP should consider climate-related risks explicitly to maintain relevance."

"After decades of relative peace and security, Europe is faced with a conflict on its doorstep that threatens to upend the recent stability and shift geopolitical order. Russia's war of aggression in Ukraine has forced Europe to confront its shortcomings with regard to providing its own security and to reconsider its reliance on the United States, which may be – under a potential Trump administration – much less supportive. This Forum focuses on what needs to be done now to address Europe's security concerns and guarantee stability for the foreseeable future. Is meeting NATO spending targets enough to support European defence? What would it take to make Europe more self-sufficient? How does Europe protect itself against malicious cyberattacks? And what role do women specifically play in supporting defence efforts and future reconstruction in Ukraine?"

"This article discusses the case of the minimimum wage for Italy as a policy instrument to foster both social justice and productive efficiency. After briefly reviewing the empirical evidence on the effects of minimum wages upon employment, wage distribution and firm-level reallocation, it presents a series of channels, from the micro to the macro level that can represent transmission mechanisms able to trigger positive feedback loops in the macroeconomic system."

"The new European Commission has taken shape during a period of significant geopolitical unrest. Russia's war of aggression against Ukraine approaches its third year with no signs of abating as Russia continues to build its arsenal with assistance from North Korea. The United States prepares for the inauguration of President-elect Donald Trump, ushering in a new era of uncertainty in the transatlantic relationship with worries about tariff threats and questionable security commitments. In the European Union, numerous challenges await the Commission from the rising cost of living and housing shortages to ensuring more clean energy and migration management. These challenges are further compounded by broader environmental, security and economic shifts. In this Forum, our authors look at some of the priorities for the European Commission for 2024-2029 and beyond. How can the EU prepare itself for the uncertainty of a possible global trade war? What should the EU do about its Eastern Neighborhood expansion plans that have continued to stall? How can industrial policy help to create a Single Market for defence goods? What should be the priorities of the Commission with regards to the financial sector? This Forum examines these questions deeply and offers recommendations."