The Sound Of Economics

In this episode of The Sound of Economics, host Rebecca Christie is joined by ECB Senior Economist Christoph Kaufmann and Bruegel’s Stavros Zenios to unpack how disaster risk, political instability, and investor behaviour collide in euro area bond markets. They explore why investment funds respond differently to fiscal and political shocks, compared to other investor groups, and what are the consequences for both periphery and core countries. The conversation also addresses the disciplining role of markets, the sustainability of public debt and the need of a eurozone safe asset. Relevant research: Ajovalasit, S., A. Consiglio, G. Pagliardi and S. Zenios (2024) "Incorporating political risk into analysis of sovereign debt sustainability", Analysis, Bruegel Anaya Longaric, P., K. Cera, G. Georgiadis and C. Kaufmann (2025), “Investment funds and euro disaster risk”, Working Paper No. 3029, European Central Bank

In this episode of The Sound of Economics, we explore the shifting strategies of European companies operating in China, as unveiled in a new Bruegel paper co-authored by Alicia García-Herrero, Théo Storella, and Jianwei Xu. Host Yuyun Zhan speaks with Alicia and Théo about the findings, which are based on panel survey data from the European Chamber of Commerce in China. The discussion dives into the four typologies of firm strategy, doubling down, hedging, hibernating, and exiting. Why are some firms staying despite envisioning less profitability? Why are others hedging their bets by expanding elsewhere? Speakers also also touch on broader macroeconomic challenges such as deflation, overcapacity and declining foreign direct investment in China, with implications for European policy and business resilience. This conversation was recorded on 25 July 2025, just after the EU-China Summit. This episode is part of the ZhōngHuá Mundus series of The Sound of Economics. ZhōngHuá Mundus is a newsletter by Bruegel, b

In this episode of The Sound of Economics, host Rebecca Christie is joined by Simon O’Connor, head of the secretariat for the Ukraine Donor Platform, along with Tyson Barker (Atlantic Council) and Bruegel’s Elina Ribakova. The guests discuss the challenges of financing reconstruction while the war is ongoing, the role of the defence industrial base, and Ukraine’s growing strategic importance to European defence. They also examine Ukraine’s evolving partnership with the U.S., the future of reconstruction efforts, and the importance of reform and anti-corruption in long-term planning. With the Ukraine Donor Platform helping to coordinate financial support, speakers highlight the delicate balance between urgent wartime needs and planning for a resilient, post-war economy. Relevant research: Ukraine Donor Platform meetings in Rome, 9-10 July, 2025 Strategic lessons from Ukraine for strengthening European security — KSE Institute report Charting a Path Forward for the U.S.-Ukraine Minerals Deal

In this episode of The Sound of Economics, host Rebecca Christie discusses how insurance funds invest in the global economy with Patrick Hoedjes, Head of Policy and Supervisory Convergence Department of the European Insurance and Occupational Pensions Authority (EIOPA), and Bruegel’s Jesper Berg, Marie-Sophie Lappe and David Pinkus. Where is the money going? What role does European policy play? How can we make sure citizens understand their options and have confidence in the system? They also discuss new research on how much insurance company and pension fund investments stay in Europe, a key question in the EU capital markets debate. The discussion is based on an upcoming Bruegel Policy Brief written by Marie-Sophie Lappe and David Pinkus.

In this episode of The Sound of Economics, host Rebecca Christie is joined by Bruegel’s Director Jeromin Zettelmeyer and Affiliate Fellow Ben McWilliams to discuss new research on climate action and international cooperation. They present their chapter in the Paris Report 3, exploring the decarbonisation of energy-intensive industries, the design of the Clean Industrial Deal, and relatively high energy costs. They discuss how the EU could work in partnership with developing countries to achieve efficient global industrial decarbonisation. Bruegel has released two Policy Briefs which feature in the Paris Report 3: Global Action Without Global Governance: Building coalitions for climate transition and nature restoration, a joint initiative by Bruegel and CEPR (Pisani-Ferry et al, 2025). This year’s focus is on accelerating the energy transition and restoring nature in emerging and developing economies. Relevant research: McWilliams, B., S. Tagliapietra and J. Zettelmeyer (2025) ‘Reconciling the European U

In this episode of The Sound of Economics, host Rebecca Christie discusses how common financial-services supervision could jumpstart the EU single market with Bruegel’s Nicolas Véron and Enrico Letta, former Italian prime minister and author of the EU’s flagship single-market report. They talk about ways to boost the European Securities and Markets Authority, the current regulator, and move away from national silos by putting ESMA offices in every member state. They also discuss how better capital markets would make the EU more competitive and lead to a stronger and safer European economy. Relevant research: Letta, E. (2024) "Much more than a market - Speed, Security, Solidarity", Report Véron, N. (2025) "Breaking the deadlock: a single supervisor to unshackle Europe's capital markets union", Blueprint, Bruegel

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

In this episode of the Sound of Economics, host Rebecca Christie talks about the proposed digital euro with ECB Executive Board member Piero Cipollone and Bruegel Senior Fellow Pablo Hernández de Cos. Why does the EU need a Central Bank Digital Currency (CBDC)? How much should citizens be able to hold? How will it affect financial stability and the banking system? They discuss the state of play and why the case for the digital euro has become stronger.

In this episode of the Sound of Economics, host Rebecca Christie discusses global development with Bruegel director Jeromin Zettelmeyer and Alfonso García Mora, vice president for Europe, Latin America and the Caribbean at the International Finance Corporation, the World Bank Group’s arm for mobilizing private finance. They discuss what tools are available, what needs can be addressed, and how that fits into today’s geopolitical environment. By helping public and private funders work together, these efforts allow recipient countries like Ukraine to get more out of international assistance.

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

In this episode of The Sound of Economics, we look at what came out of the May 19 EU-UK summit. Host Rebecca Christie speaks with Bruegel’s Ignacio García Bercero and Heather Grabbe about the shift in post-Brexit ties between the two trading partners, what needs to be negotiated next, and how this relates to contentious transatlantic trade relations. U.S. President Donald Trump’s threat of big tariffs against the EU contrasts with the cooperative approach of the London talks, which laid out a path forward in key areas like energy, fishing, youth mobility, emissions trading schemes, and animal and plant health standards. Relevant research: Ignacio García Bercero and Heather Grabbe, ‘The EU-UK reset: a first, big step in the right direction’, First Glance, 22 May 2025, Bruegel, https://www.bruegel.org/first-glance/eu-uk-reset-first-big-step-right-direction Berg, J., R. Christie, H. Geeroms and F. Papadia (2025), ‘Make finance part of the EU-UK post-Brexit reset', Analysis, Bruegel García-Bercero, I. (2024)

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-gla

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

In this episode of The Sound of Economics, Yuyun Zhan sits down with Bruegel’s own Alicia García-Herrero and Finbarr Bermingham, EU correspondent of South China Morning Post to unpack the latest developments in the US-China trade war and what they mean for the European Union. With Trump’s volatile approach to tariffs, China’s charm offensive toward Brussels, and the EU’s own strategic uncertainty, the conversation dives deep into the geopolitical triangulation reshaping global trade order. Can the EU defend its interests and values without being drawn into binary alignments? 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!

In this extra episode of The Sound of Economics, Bruegel’s Bertin Martens and Fiona M. Scott Morton explain the EU’s first fines under the Digital Markets Act, in conversation with Rebecca Christie. Apple and Meta were hit with the penalties on 23 April 2025 in what will be a test case for the European Commission’s new mandate to rein in digital gatekeepers. This podcast walks through why the fines were assessed, whether they will be big enough to change the companies’ behaviour, and how the EU must manage its regulatory agenda in the middle of a trade war. This podcast was recorded on 25 April 2025. Relevant research: Scott Morton, F. (2024) ‘It’s time for the European Union to rethink personal social networking’, Policy Brief 34/2024, Bruegel Bertin Martens, ‘EU targeting of digital services in tariff retaliation would present challenges’, Bruegel First Glance, 11 April 2025 Scott Morton, F. (2024) ‘Entry and competition in mobile app stores’, Working Paper 03/2024, Bruegel ‘The state of play on global ta

The Western Balkans are often seen as Europe’s periphery, but they are in fact embedded within the continent’s history and future ambitions. Despite close economic ties with the EU, these six countries—Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia—remain outside the Union, navigating a complex path toward accession. In this episode of The Sound of Economics, Rebecca Christie is joined by Simonida Kacarska, Nina Vujanović and Anna Fiore to explore the economic realities, trade dynamics, and political hurdles facing the region. How integrated are these economies already? What barriers remain, and can the new EU growth plan bring about meaningful progress? This podcast was produced with financial support from The Open Society Foundations Western Balkans. 

In this episode of The Sound of Economics, we mark a decade since the Greek debt crisis, reflecting past hardships and the progress made and the challenges that lie ahead. Host Rebecca Christie is joined by George Papaconstantinou, former Greek Minister of Finance, and Eleni Varvitsioti, journalist and expert on European affairs. Together, they explore Greece’s recovery journey, from the turbulence of the crisis to its recovery and economic growth. They discuss the cautious optimism in Greece today and the resilience of the Greek people, as well as continuing fiscal and political challenges.  The episode mentions the following books:  ‘Game Over: The Inside Story of the Greek Crisis’ by George Papaconstantinou  ‘The Last Bluff: How Greece came face-to-face with financial catastrophe & the secret plan for its euro exit’ by Viktoria Dendrinou and Eleni Varvitsioti  Safeguarding the Euro in Times of Crisis: The Inside Story of the ESM, by the European Stability Mechanism, lead author Rebecca Christie

How should Europe respond to the new US administration’s aggressive rhetoric on trade? Bruegel’s Uri Dadush, Niclas Poitiers and Ignacio Garcia Bercero join a conversation with Rebecca Christie for a special live edition of The Sound of Economics podcast.