Monday, 8 february 2021
Good morning Future is blue readers,
This week we are having a closer look at the impact of vaccine delays on Europe’s economy. Don’t miss our podcast where Christian Odendahl, Chief Economist at the Centre for European Reform, and myself respond to questions from Brussels journalist Carlos Carnicero Urabayen. More details below.
We are also looking at the impact of Covid on tax systems reform in Europe. Jesús Urios, Junior Policy Analyst covering green economy at the Institute for European Environmental Policy, argues that the pandemic is an opportunity to accelerate sustainable taxation.
See at the very end what we are reading these days.
Podcast – The economics of the vaccine
In our podcast we address the following issues:
- What the challenges that the slow rollout of vaccines is posing for Europe’s recovery prospects in 2021?
- Most analysts expect a stronger recovery in the US than in Europe: what can explain such an outcome?
- What are the implications of Merkel’s farewell from power later this year.
The EU Green deal has set a target for the EU to become carbon neutral by 2050. This will require a redesign of the European economy, including through changes in tax systems, argues Jesús Urios.
Green taxation has proven to be a very useful economic instrument to simultaneously advance environmental protection and support the decarbonization of the economy.
Greater use of well-designed environmental taxes in the EU has the potential to contribute decisively to the 2025 neutrality goal, as well as healthier public accounts. To combine environmental with economic benefits, it is crucial to design the tax system well, the paper finds.
Access here Jesús Urios’ article for Agenda Pública.
What we are reading
The fiscal implications of Covid-19 in Europe and in Spain
The new wave of COVID-19 infections is putting economic recovery at risk. Within this context, this issue of Funcas’ SEFO sheds some light on both the fiscal and monetary implications of the current crisis at the European level as well as within Spain.
Lessons from the battleground: EU strategic autonomy after the “vaccine wars”
“Power asymmetry matters, vaccine nationalism is stupid and together is better, even if slower”, claims Ricardo Borges Castro in this European Policy Centre paper.
The global race between vaccines and mutations
Pandemic will not be beaten until it is vanquished in all countries. Interesting editorial piece in the FT about how rich countries should promote vaccination all around the globe.
The geopolitics of the European Green Deal
Interesting angle about the repercussions of the green transformation for the EU relations with its neighbors.
Have a nice week!
Raymond Torres, Funcas Europe Director