The Sound of Economics

In this discussion, Nicolas Véron, a senior fellow at Bruegel with a focus on financial regulation, and Enrico Letta, former Italian Prime Minister and proponent of EU integration, dive into the future of the EU's capital markets. They explore how establishing a single capital markets supervisor could enhance competitiveness and safety in Europe's economy. The duo emphasizes the importance of streamlining the European Securities and Markets Authority and moving away from national silos to unleash the potential of financial services across member states.

Critical technologies including artificial intelligence, semiconductors and quantum computing are gaining increasing attention due to their strategic importance and indispensable role in national security. In this episode of The Sound of Economics, Yuyun Zhan invites Alicia García-Herrero and Claudio Feijóo to look into how the world’s three leading global economies, China, the US and the EU, are advancing in these cutting-edge sectors. Which economies are leading in specific subfields? How quickly are these technologies being translated into real-world applications? Relevant publications: García-Herrero, A., M. Krystyanczuk and R. Schindowski (2025) ‘Radical novelties in critical technologies and spillovers: how do China, the US and the EU fare?’, Working Paper 07/2025, Bruegel García-Herrero, A., M. Krystyanczuk and R. Schindowski (2025) ‘Which companies are ahead in frontier innovation on critical technologies? Comparing China, the European Union and the United States’, Working Paper 08/2025, Bruegel This episode is part of the ZhōngHuá Mundus series of The Sound of Economics. ZhōngHuá Mundus is a newsletter by Bruegel, bringing you monthly analysis of China in the world, as seen from Europe. Sign up now to receive it in your mailbox!

Piero Cipollone, an Executive Board member at the European Central Bank, and Pablo Hernández de Cos, a Bruegel Senior Fellow, dive into the intricacies of the digital euro. They discuss its necessity in the EU, exploring financial stability, holding limits, and the legislative journey since June 2023. The conversation highlights how conditional payments could revolutionize transactions and emphasizes the balance between public and private money. Listeners gain insights into the potential impact of Central Bank Digital Currencies on the future financial landscape.

Alfonso García Mora, VP at the International Finance Corporation, and Jeromin Zettelmeyer, Director at Bruegel, delve into the pivotal role of development finance in combating poverty and fostering job creation. They discuss the shift from traditional aid to innovative financing strategies like blended finance, emphasizing its potential in countries like Ukraine. The guests explore global finance trends, the importance of effective partnerships, and how understanding default rates can reshape investment perceptions in emerging markets. It's a fascinating look at the intersection of finance and social responsibility.

How Europe’s defence sector can align to climate goals without compromising security needs In this episode of the Sound of Economics, we look at the present and future efforts of the defence sector to integrate climate sustainability. Host Rebecca Christie is joined by Bruegel's Simone Tagliapietra and Kädi Ristkok, Executive Director of Cleantech for Baltics. Together, they explore the challenges and practical steps to decarbonise defence. What are the key policy actions needed at the European level? Relevant research: Ristkok, K. and L. Balciume (2025), 'Cleantech for Defence, Security and Resilience', White paper, Cleantech for Baltics  Tagliapietra, S. (2025), ‘Defence and climate: seven points for a common agenda', Analysis, Bruegel

Ignacio García Bercero, a trade policy expert at Bruegel and former European Commission official, and Heather Grabbe, also from Bruegel, specializing in EU-UK relations, discuss the implications of the recent EU-UK summit. They analyze the challenges and prospects of post-Brexit trade ties and the impact of U.S. tariffs under Trump. Exciting topics include new agreements in energy, fishing, and youth mobility, along with innovative carbon pricing strategies, highlighting the necessity for cooperative approaches amidst shifting geopolitical landscapes.

In this episode of The Sound of Economics, Yuyun Zhan sits down with Bruegel’s own Alicia García-Herrero and Plamen Tonchev, Head of Asia Unit at the Athens- based Institute of International Economic Relations (IIER), to dive into China's economic presence in the Eastern Mediterranean, a region that we have not covered much before in terms of its relations with China. The conversation delves into the geostrategic importance of the region and China’s highly tailored approach to individual countries, including Egypt, Türkiye, Israel, Greece, and Cyprus. What lessons can the EU draw from China’s engagement in this pivotal area? This episode is part of the ZhōngHuá Mundus series of The Sound of Economics. ZhōngHuá Mundus is a newsletter by Bruegel, bringing you monthly analysis of China in the world, as seen from Europe. Sign up now to receive it in your mailbox! Read more about Sino-Cypriot relations in Plamen Tonchev's paper, More Than Meets The Eye: Behind the Façade of Sino-Cypriot Relations.

In this episode of the Sound of Economics, we look at how Europe can attract and keep top-tier scientific researchers, especially given US political turmoil and the Trump administration’s conflicts with higher education. Host Rebecca Christie speaks with Bruegel’s Reinhilde Veugelers and Mario Mariniello, joined by Daniel Gros of the Institute for European Policymaking at Bocconi University, to discuss how the academic world is changing and what European authorities can do about it. Short-term funding incentives to attract scientists will help. But success requires long-term commitment to a research-friendly environment, such as the proposed Project Einstein initiative, to encourage top talent to put down roots. Relevant research: Mariniello, M. and Ruer, N. (2025), 'How much research talent could Europe grab from the US?', Analysis, Bruegel Heather Grabbe and Daniel Gros, '‘Project Einstein’: research excellence for Europe and the world', First Glance, 8 May 2025, Bruegel, https://www.bruegel.org/first-glance/project-einstein-research-excellence-europe-and-world 

In this episode of the Sound of Economics, we look at Germany’s budget outlook under new Chancellor Friedric Merz and whether much-needed reforms to the so-called debt brake put Berlin on a collision course with Brussels. Host Rebecca Christie is joined by Bruegel's director, Jeromin Zettelmeyer, and Bruegel non-resident fellow, Armin Steinbach, to discuss the legal and economic implications. How can the EU encourage Germany to spend more on defence and security without unraveling the new fiscal rules? Does the EU need to redo its debt safeguards again? Relevant research: Germany's fiscal rules dilemma, Bruegel Analysis, Armin Steinbach and Jeromin Zettelmeyer, 24 April 2025 Will EU fiscal rules prevent Germany from using its new national borrowing space? Bruegel newsletter, Armin Steinbach, 28 April 2025

*We released the original podcast on 23 April 2025. As the blackout in Iberian Peninsula happened soon after, we decided to record an update on what happened there. In this episode of The Sound of Economics, Rebecca Christie talks to Bruegel energy experts Conall Heussaff and Georg Zachmann about the urgent need to upgrade and connect Europe's electricity grids. They discuss their recent paper outlining the challenges, opportunities, and necessary policy responses to modernise Europe's energy infrastructure. Relevant publications: Heussaff, C. and G. Zachmann (2025) ‘Upgrading Europe’s electricity grid is about more than just money’, Policy Brief 04/2025, Bruegel McWilliams, B., S. Tagliapietra and G. Zachmann (2025) ‘Europe’s energy information problem’, Policy Brief 07/2025, Bruegel