Search

Begin New Search Topic European Union Political Geography Europe

51. Making the best of the new EU Social Climate Fund

Author:
Eva Jüngling, Giovanni Sgaravatti, Simone Tagliapietra, and Georg Zachmann
Publication Date:
04-2025
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The slow pace of decarbonisation of buildings and transportation threatens the European Union’s goal of reducing emissions by 55 percent by 2030 and achieving net zero by 2050. To address this, a new emissions trading system, ETS2, is being introduced to put a carbon price on fuels used in buildings and road transport. However, the resulting cost increases risk a disproportionate impact on vulnerable households and small and medium sized enterprises. The European Union has created the Social Climate Fund (SCF) to address these distributional challenges. This instrument redistributes a portion of auction revenues generated by the ETS2 among EU countries, in order to protect the most vulnerable. A much larger share of ETS2 revenues will flow directly to national governments, offering significant opportunities for social measures and investments in the green transition. The use of those revenues will dictate how successful EU countries are in managing the transition and protecting households, particularly in higher-income member states, which will receive relatively smaller shares of SCF funding. ETS2 is an essential part of the EU climate policy toolkit. Governments should employ good practices, as identified by the European Commission, to tackle emissions from buildings and transport and to gradually phase out income support, in line with the achievement of investment targets and milestones. Higher-income EU countries should develop additional targeted financing levers to protect the vulnerable and to introduce extra enablers to encourage private investment. Proper sequencing, outreach and communication will be essential to ensure the uptake of measures and public support for policy instruments. Cross-country learning should be leveraged, including through the creation of a European policy registry that will help countries compare their approaches and potentially amend their SCF spending plans on the basis of learning from policies that been successful elsewhere.
Topic:
Climate Change, European Union, Welfare, Transportation, Carbon Emissions, Decarbonization, and Protection
Political Geography:
Europe

52. Who should be charged? Principles for fair allocation of electricity system costs

Author:
Conall Heussaff, Eva Jüngling, Simone Tagliapietra, and Georg Zachmann
Publication Date:
04-2025
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The high costs in the European Union of supplying electricity can only be structurally reduced through decarbonisation and deeper European electricity system integration. In the short-term, policymakers have few choices. They can redistribute system costs by shifting components from one consumer to another. Another immediate distributional option would be to reduce energy taxation, implicitly shifting costs to the taxpayer. Meanwhile, decision-making processes that translates electricity system costs into final consumer prices are fragmented. Rules on the short-term production, transmission and consumption of electricity are determined at EU level. National regulators and governments determine how the fixed costs of the system are recovered from consumers, while national policymakers also set energy taxes. This Policy Brief sets out options for shifting the fixed costs of the electricity system between consumers, for changing energy taxation to reduce prices and for evaluating systemic trade-offs between system cost and other characteristics, such as sustainability and reliability. We also estimate the quantitative effects of shifting costs between consumers and reducing taxes on electricity. We set out four principles for pricing electricity fairly. Policy interventions in the electricity system should not seek to achieve broader economic objectives at the expense of energy-policy goals. Consumer prices should incentivise efficient system operation. Carbon emissions should be priced in. The fixed costs of the electricity system should be primarily recovered from inelastic consumption. European policymakers should develop transparent analytical tools to assess the distributional effects of electricity-policy interventions. Lessons should be learned from the energy crisis, during which EU and national policies attempted to shield consumers from price impacts, and these lessons should form the basis of ongoing efforts to reduce prices. EU guidelines for electricity cost recovery should be established, following fundamental economic principles, and could form a policy toolbox for national governments to reduce energy prices. Finally, the long-term strategic goal of deeper physical and institutional integration of the European electricity should be pursued to structurally reduce electricity prices.
Topic:
Climate Change, European Union, Electricity, and Energy
Political Geography:
Europe

53. Reconciling the European Union’s clean industrialisation goals with those of the Global South

Author:
Ben McWilliams, Simone Tagliapietra, and Jeromin Zettelmeyer
Publication Date:
07-2025
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Clean industrialisation is a political and economic priority for the European Union. For it to work, affordable clean energy is needed. However, producing this energy in Europe is constrained by limited renewable energy endowments (sunshine and wind) and land availability, while the transportation costs for imported clean energy (in the form of electricity or hydrogen) are much higher than for fossil fuels. An alternative way to fuel Europe’s clean industrial sector would to import energy-intensive primary tradeable products such as ammonia, methanol and reduced iron. We estimate that more than ten percent of total future EU clean energy demand will be met by such products. Public policy in Europe should aim to facilitate trade in energy-intensive intermediate inputs, which are cheaper to import than energy directly. Imports of these inputs could boost the competitiveness of downstream stages in the energy-intensive value chain (such as steel production). By lowering overall energy demand and thus electricity prices, such imports would also raise EU competitiveness more broadly. In many cases, they would replace imports of less energy-intensive commodities such as iron ore, therefore not adding to Europe’s overall import dependency. The direct economic impact in terms of jobs and value added that would be offshored is not substantial. The international benefit of such a strategy would be that it would embed third countries – especially emerging and developing economies – into clean industrial value chains. Stable European demand can help such countries develop export-driven, clean industrial strategies. Politically, this could be an important incentive that could offset the EU’s carbon border adjustment mechanism. Governments should therefore not use taxpayer money to fight the relocation of energy-intensive and tradeable primary products, beyond some minimum threshold that is desirable for economic security and innovation reasons. Meanwhile, ongoing negotiations with third countries to establish Clean Trade and Investment Partnerships should put trade in energy-intensive clean products at the core of new international clean supply chains.
Topic:
Industrial Policy, European Union, Global South, Industrialization, Decarbonization, Energy, and Emerging Economies
Political Geography:
Europe

54. The time is right to make a European Union-India trade deal happen

Author:
Ignacio Garcia Bercero and André Sapir
Publication Date:
07-2025
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Nearly 20 years have passed since the EU and India started negotiations on a bilateral trade and investment agreement. After seven years of intense negotiations, the process stalled in 2014, primarily because of the failure of the respective political leaders to make difficult choices. Talks restarted in 2022 and now offer a reasonable chance of delivering a bilateral free-trade agreement “within the course of the year”, as Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen declared in February 2025. The EU and India both rank among the world’s five largest economies in terms of GDP. Yet much separates the two economically. India’s GDP per capita is much lower than the EU’s, and its level of trade and investment protection is much higher than that of the EU or even its middle-income peers. However, India has recently enjoyed faster growth than any other large economy, including China. The EU and India are also being brought closer by the global geopolitical situation and their common pursuit of strategic autonomy and economic security. The two sides should learn the lessons from past failure and reach an ambitious agreement in areas that previously proved difficult, such as goods tariffs and services, and in new areas, such as climate protection, that could again derail the revived negotiation if not managed well. A deal by the end of 2025 will have economic benefits and will also reinforce the broader economic and political links between the EU and India at a time when world affairs are under severe strain. An ambitious agreement could also help reconstruct a rules-based global order for the new multipolar world. This is particularly important for the multilateral trade and climate regimes, where converging EU and Indian positions could have a major influence on the redesign of international institutions and rules.
Topic:
Treaties and Agreements, Bilateral Relations, Governance, European Union, and Trade
Political Geography:
Europe, South Asia, and India

55. What to expect from the UK-EU Summit

Author:
Jannike Wachowiak, Joël Reland, and Anand Menon
Publication Date:
05-2025
Content Type:
Special Report
Institution:
UK in a Changing Europe, King's College London
Abstract:
The first leader level post-Brexit UK-EU summit will take place on Monday 19 May. The government has stated its desire to strengthen the ‘strategic alliance’ between the UK and the EU, to deepen relations on security and to tear down barriers to trade. Not all of this will be achieved. However, the meeting will mark a significant first step towards building on existing agreements and a test of whether the two sides are committed to matching increasingly warm words with actions. This insight paper explains the key areas to keep an eye out for during the summit and the potential impact they might have on the future of UK-EU relations.
Topic:
Diplomacy, Bilateral Relations, European Union, and Trade
Political Geography:
United Kingdom and Europe

56. Regulating after Brexit

Author:
Joël Reland
Publication Date:
05-2025
Content Type:
Special Report
Institution:
UK in a Changing Europe, King's College London
Abstract:
Deregulation was at the heart of the Conservative vision of Brexit. Boris Johnson negotiated a Brexit deal which gave Great Britain significant freedom to diverge from EU rules and regulations, promising to make the UK ‘the best regulated economy in the world’. This report examines the extent to which the UK has made use of its ‘Brexit freedoms’, finding that there has been very little meaningful divergence from the EU. It identifies the key reasons for this lack of divergence: trade frictions, political complexities, limited state capacity and a lack of strategy. The report then analyses the change in regulatory approach under the current government. It finds that, unlike its predecessors, this government is willing to align with EU rules to remove existing trade barriers and to avoid new ‘passive divergence’ where EU rule changes create divergence by default. Yet, at the same time, the government is keen to use deregulation to boost growth and to build trade ties with the United States. This report identifies a potential conflict between these aims and its EU regulatory agenda, and argues that the UK needs a clear strategy to ensure its multiple regulatory objectives do not undermine one another.
Topic:
European Union, Regulation, Economy, Brexit, and Deregulation
Political Geography:
United Kingdom and Europe

57. The Brexit Files: from referendum to reset

Author:
UK in a Changing Europe
Publication Date:
01-2025
Content Type:
Special Report
Institution:
UK in a Changing Europe, King's College London
Abstract:
For the past decade, UK in a Changing Europe has provided impartial, research-based analysis on a number of issues, but most particularly on UK-EU relations. Since before the 2015 General Election, we have evaluated those relations, traced and explained the tortuous Brexit process, and attempted to assess the impact that Brexit has had on the country. This report brings together some of the best scholars working on these issues to consider a number of these questions on the 5th anniversary of the UK ceasing to be a member of the European Union.
Topic:
Bilateral Relations, Elections, European Union, and Brexit
Political Geography:
United Kingdom and Europe

58. Recognition of the Status of Stateless Persons and Right of Residence for Palestinians in Belgium: Applying the Principle of res judicata to Avoid Divergences among Courts

Author:
Giulia Bittoni
Publication Date:
01-2025
Content Type:
Journal Article
Journal:
Statelessness & Citizenship Review
Institution:
Peter McMullin Centre on Statelessness, Melbourne Law School
Abstract:
The recognition of the status of stateless Palestinians within the European Union (‘EU’) is complex and sensitive, notably due to the challenges in determining whether Palestine qualifies as a state. Moreover, not all EU Member states grant a right of residence to stateless individuals. In some states, including Belgium, recognising statelessness does not automatically confer a right of residence, creating a gap between statelessness recognition and thisright.1This discrepancy has led to numerous legal actions in Belgian civil courts to seek this residence right.Until August 2024, Belgium recognisedstateless statussolely through judicial procedure.More specifically,until 2017, the Tribunal de première instance (‘Tribunalof First Instance’)held jurisdiction in these matters. Since 3 August 2017, jurisdiction has shifted to the Tribunal de la familleet de la jeunesse(‘The Family and Juvenile Tribunal’) based on the residence of the applicant.
Topic:
European Union, Palestinians, Statelessness, and Aliens Act
Political Geography:
Europe, Palestine, and Belgium

59. Reflections on Statelessness Awareness Forum (Europe) 2024

Author:
Aleksejs Ivashuk, Jessica Schmieder, and Aleksandra Semeriak Gavrilenok
Publication Date:
01-2025
Content Type:
Journal Article
Journal:
Statelessness & Citizenship Review
Institution:
Peter McMullin Centre on Statelessness, Melbourne Law School
Abstract:
Statelessness Awareness Forum (Europe), or SAF(E), is the firstever international forum hosted by a stateless-led organisation, Apatride Network.1The organisation is one of the biggest stateless-led organisations in the world, working to address statelessness in the European Union(‘EU’) byfocusing on awareness raising, legal assistance and stakeholder bridge-building, and impact initiatives that tackle daily challenges faced by stateless people.2These daily challenges may include issues in documentation, employment, banking access, freedom of movement, lack of representation in the media and other relevant spaces. SAF(E) is designed by Apatride Network as a continuous, annual event that takes on the challenge of the lack of systemic awarenessraising on statelessness. The first edition was held from 20 to 24March2024 in Alicante, Spain. It brought together leading experts in statelessness, including experts from stateless-led organisations, representation from the United Nations High Commissioner for Refugees (‘UNHCR’), the Institute on Statelessness and Inclusion (ISI), the Hungarian Helsinki Committee,and the European Network on Statelessness (‘ENS’). This reflection piece is meant to highlight the significance of SAF(E), the lessons drawn and learnedfrom the forumand the impact it has had on addressing statelessness.
Topic:
European Union and Statelessness
Political Geography:
Europe

60. A New Triangle: The Interplay Between China and EU-India Relations

Author:
Philippe Le Corre
Publication Date:
04-2025
Content Type:
Working Paper
Institution:
Asia Society
Abstract:
China has shaped the U.S.-India relationship for decades.1 Today, another significant triangle is emerging: the China-EU-India relationship. Indian and European leaders are strengthening ties. Both view China as a formidable economic and security rival while regarding the United States as a key security partner (and, for Europe, a long-standing ally). What is the current state of EU-China and EU-India relations? As India’s influence and economic appeal grow, could it become a viable alternative to China for European business leaders and policymakers? How is Brussels incorporating India into its strategies to address a potential crisis in Asia or the broader Indo-Pacific? Twenty-five years ago, the European Union viewed China as a top priority for business, cultural exchanges, and diplomacy. Following the introduction of Beijing’s open-door policy in 1978 and with strong encouragement from Chinese authorities, European companies flocked to China. Initially, many Europeans used Hong Kong as an intermediary for business, but by the mid-1990s, Guangdong Province and Shanghai became key gateways to the Chinese market, particularly for Germany and France.2 Trade and investment surged, especially after China’s accession to the World Trade Organization (WTO) in 2001, which was widely supported by European political and business elites. Today, China remains the EU’s largest trading partner, with substantial European investments across the mainland. In contrast, India was long viewed as a potential partner, but only a few EU member states took steps to forge a strategic partnership with New Delhi. European investments in India were — and still are — limited, with many corporations citing challenges such as inadequate infrastructure, market access barriers, and bureaucratic red tape, which make it difficult to operate in most Indian states. However, the mood has begun to shift. On the EU side, the European Commission’s 2019 China strategy characterized Beijing as “a partner, a competitor, and a systemic rival.” The COVID-19 pandemic, which disrupted direct links between Europe and China from 2020 to 2022, caused significant strain. This was followed by Russia’s invasion of Ukraine in February 2022, an event many on the continent perceive as having Beijing’s tacit support. Additional factors, including an increasingly authoritarian regime at home and a more assertive China abroad, have contributed to European perceptions,3 as explained at length by the Center for China Analysis’s latest Global Public Opinion on China project.4 This, in turn, has affected the EU-China relationship, which has been gradually downgraded from the “honeymoon” period of 1995–2015. On the other hand, the strengthening EU-India relationship is a relatively recent development, driven by several factors that have emerged in the wake of the pandemic. These include the rise of the ambitious Bharatiya Janata Party under Prime Minister Narendra Modi, who first took office in 2014 and is now serving his third term, as well as a broader diversity of partnerships between the EU and India. Other factors influencing EU-India relations include the growing assertiveness of the People’s Republic of China and the United States’ shift away from multilateralism during President Donald Trump’s first term (2017–2021). Since January 2025, the increasing probability of a break in the transatlantic alliance under the new Trump administration is leading the EU to look for new partners, including in the Indo-Pacific region. In addition, India’s robust GDP growth — 6.6% in 2025 and a projected 6.7% in 2026 — has attracted European businesses.5 In a global environment defined by multipolarity, could the previously low-profile EU-India relationship evolve into a closer partnership? With EU-China relations facing significant challenges, might India emerge as a viable alternative Asian partner for Europe? The current EU-India relationship is described as “strategic.” In reality, it is partial and uneven, and there are major differences in the nature of relations between India and individual EU member states. Meanwhile, how does Beijing view its competitor in the Global South as it seeks to win over Europe’s support? This paper explores the dynamics of the interaction among these three powers in the rapidly changing geopolitical context. It examines India’s political and economic challenges in the context of the EU-China relationship, how the EU-India relationship is evolving, and whether an EU-India partnership could take center stage if tensions with China escalate. European countries have kept strong ties with the Global South, and some see a strong India as a potential bridge for fostering cooperation in Southeast Asia, the Middle East, and Africa.
Topic:
Foreign Policy, Diplomacy, Economics, Bilateral Relations, and European Union
Political Geography:
China, Europe, India, and Asia