The Sound of Economics How can the EU get its act together?
Aug 27, 2025
Join Jeromin Zettelmeyer, Director at Bruegel, and Jason Furman, former economic adviser to Barack Obama, as they dive into Europe's pivotal role amidst global uncertainty. They discuss the urgent need for the EU to unify resources for economic growth and defense, while overcoming internal barriers. The conversation touches on the implications of U.S. tariffs, the importance of European unity in trade negotiations, and the challenges of climate change, emphasizing the critical reforms needed for a cohesive and resilient Europe.
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Productivity Gap And Growing Policy Awareness
- Europe lags US productivity over 25 years, which is disappointing given past catch-up trends.
- Yet there is growing public debate and policy recognition that could enable needed reforms.
Structural Fragmentation Slows Reform
- Europe's weak growth partly reflects deep structural features and policy fragmentation across member states.
- Lack of centralized federal economic decision-making slows coherent EU-wide reform.
Military Power Shapes Economic Influence
- Geopolitical shifts raise the premium on military strength, reducing Europe's leverage in global negotiations.
- Europe's economic weight alone no longer guarantees security or negotiating power.