The Sound of Economics Europe’s 2025 identity crisis: the year in review
Dec 15, 2025
Join Jeromin Zettelmeyer, Director of Bruegel, Simone Tagliapietra, Senior Fellow focusing on energy policy, and Reinhilde Veugelers, innovation expert, as they tackle Europe's identity crisis. They dive into how Europe can support Ukraine, the challenges of the Green Deal, and the need for strategic autonomy. The trio discusses the transformative impact of AI on scientific research and the importance of collaboration between France and Germany for future reforms. With the EU at a crossroads, can it emerge as a leader by 2025?
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Europe's Pressure Cooker Moment
- Europe faces growing external pressures from a shifting US policy, rising China competition, and an intensified Russian hybrid war.
- Despite these threats, European institutions and rule-based governance remain strong assets that could preserve its model.
Targets Secured, Instruments Weakened
- The EU enshrined a 2040 target of 90% emissions reduction but watered down key measures to reach it.
- Political compromise preserved the target but delayed or diluted instruments like transport/buildings carbon pricing and the ICE car ban.
AI Powers A More Resilient Innovation Engine
- AI acts as a general-purpose technology that accelerates scientific breakthroughs and democratizes innovation.
- This makes Schumpeterian creative destruction more resilient to geopolitical turbulence.