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on European Economics |
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Issue of 2025–07–28
27 papers chosen by Simon Sosvilla-Rivero, Instituto Complutense de Análisis Económico |
| By: | Pelizzon, Loriana; Mattiello, Riccardo; Schlegel, Jonas |
| Abstract: | This paper examines the rise of non-bank financial intermediaries (NBFIs) and its implications for financial stability and monetary policy transmission in the Euro Area and the United States. While the U.S. financial system has long been market-based, the Euro Area has experienced a striking expansion of NBFIs, which now account for a larger share of GDP than in the U.S. While the sector has grown significantly, much of its capital is intermediated and allocated outside the EU, reflecting missed opportunities for domestic capital market development. We argue that this pattern is a consequence of limited growth opportunities within Europe, weak financial market infrastructure, and the absence of key institutional enablers such as a sizable capital market and securitization frameworks. We further examine how NBFIs pose supervisory challenges due to geographic concentration, influence money market dynamics, and interact with monetary policy transmission. The paper concludes with policy recommendations to unlock the sector's potential - including reforms to deepen European capital markets, a unified supervisory mechanism and consideration of extending some central bank facilities to NBFIs. |
| Keywords: | Non-bank Financial Intermediaries (NBFIs), Monetary Policy Transmission, European Capital Markets |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:safewh:321877 |
| By: | Herrera, Luis; Pirovano, Mara; Scalone, Valerio |
| Abstract: | This paper proposes a novel yet intuitive method for the calibration of the CCyB through the cycle in the euro area, including the positive neutral CCyB rate. The paper implements the Risk-to-Buffer framework by Couaillier and Scalone (2024) in both a DSGE and macro time series setting and proposes a calibration of the PN CCyB aimed to reduce the macroeconomic amplification of shocks occurring in an environment where risks are neither subdued nor elevated. The suggested positive neutral CCyB rates for the euro area are consistent across methodologies and robust to alternative specifications, ranging between 1% and 1.5%. The results also highlight the role of different shocks and sources of cyclical systemic risk for the calibration of the CCyB through the cycle. The flexibility of the method regarding the modeling tools, the selection of specific levels of risks as well as the choice of state variables and of exogenous shocks make it particularly suitable to be tailored to national specificities and policymakers’ preferences. JEL Classification: C32, E51, E58, G01 |
| Keywords: | capital requirements, countercyclical capital buffer, financial stability, macroprudential policy |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20253075 |
| By: | Futura D'Aprile; Martin Koehler; Paolo Maranzano; Mario Pianta; Francesco Strazzari |
| Abstract: | This paper investigates the expansion of EU military activities, involving the European Commission, other EU-related institutions and Member States. Expenditure on EU military programmes - defence-related R\&D, arms production, joint procurement, military mobility, and the supply of lethal weapons to third countries - has skyrocketed since 2021, well before the Russian invasion of Ukraine, with an increase of about 350% from 2021 to 2024. The European Commission is playing a growing role in developing initiatives in the defence domain, with programmes such as the European Defence Fund that supports research into and production of new weapons systems. In 2025, it announced the plan ReArm Europe, later renamed Readiness 2030, to sustain the further militarization of the EU. The largest arms-related programme, however, is the European Peace Facility that is funded by EU Member States - as opposed to previous actions funded by the EU budget - for the supply of weapons, ammunitions and equipment to non-EU countries; Ukraine has obtained € 5.6 billion of military supplies from the European Peace Facility since the start of the war with Russia. EU military programmes have spent a total amount of € 8.2 billion in 2023, as opposed to € 200 million in 2019. The largest part of Europe's military expenditure, however, is still found in national budgets. In 2024, NATO EU countries spent € 346 billion in their military budgets, with an increase in real terms of 66% between 2013 and 2024. When we consider the total spending of NATO EU countries and the major EU economies - Germany, France, Italy and Spain - we find that in the last decade the expansion of national military budgets, and particularly the acquisition of new weapons and equipment, has dramatically outpaced growth in GDP, total public expenditures and spending on the environment, education and health. In a context of widening conflicts, current political developments - in US policy and within the EU - are accelerating the militarisation of European policies without an adequate debate on real security needs, on the model of EU integration in defence and on the economic dimensions of the process. |
| Keywords: | EU programmes, military technologies, arms expenditure, economic performance |
| Date: | 2025–07–24 |
| URL: | https://d.repec.org/n?u=RePEc:ssa:lemwps:2025/25 |
| By: | Heriaud Bastien; Joossens Elisabeth (European Commission - JRC); Le Blanc Julia (European Commission - JRC) |
| Abstract: | "A regional resilience dashboard is a powerful tool to visualise and assess each European regionâs capabilities and vulnerabilities and guide policymakers. Modelled after the Commissionâs Resilience Dashboards, the Regional Resilience Dashboard indicates significant disparities of capacities and vulnerabilities among regions within each country.There is a strong negative correlation between capacities and vulnerabilities among regions within each country confirming that regions with heightened vulnerabilities frequently possess diminished capacities, and vice versa. Regions situated at the EU's periphery, particularly in South-Eastern Europe, exhibit lower capacity and heightened vulnerability indices while urban regions and those encompassing national capitals show higher capacities and reduced vulnerabilities. Between 2017 and 2023 vulnerabilities diminished and capacities improved slightly across all EU regions. At the same time, inequalities in resilience across regions increased." |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc141990 |
| By: | Bulfone, Fabio; Stratenwerth, Mischa; Tassinari, Arianna |
| Abstract: | This paper traces the growth trajectories of the Southern European economies (Greece, Italy, Portugal, and Spain) from the financial to the covid crisis. From a review of the comparative political economy literature focusing on Southern Europe, we derive three propositions regarding the growth profile, the development of high value-added services and manufacturing exports, and employment outcomes. To assess the accuracy of these propositions, we conduct growth decompositions based on import-adjusted demand components as well as on sectoral output and employment indicators. The data show that Southern European economies are similar in that export-led growth has not been sufficient to boost aggregate growth, stimulate high value-added services or manufacturing, reverse pro-cyclical employment declines, or create high-wage employment opportunities. But the Southern European economies also differ, both in terms of their sectoral growth profiles and their aggregate performance. In the second half of the decade, Portugal and Spain managed to combine domestic demand and exports to achieve stronger growth than Italy and Greece. Sectoral developments in Portugal and Spain (and to a lesser extent in Italy) tentatively suggest a potential "Iberian growth path" that is compatible with euro area constraints but ultimately peripheral. The paper concludes by considering the empirical and theoretical implications of these findings for the study of the Southern European model of capitalism. |
| Abstract: | Dieser Beitrag zeichnet die Wachstumsverläufe südeuropäischer Volkswirtschaften (Griechenland, Italien, Portugal und Spanien) im Jahrzehnt zwischen Finanz- und Coronakrise nach. Aus der vergleichenden politökonomischen Literatur mit Südeuropa-Schwerpunkt werden drei Thesen zum Wachstumsmodell sowie speziell zur Entwicklung von wertschöpfungsintensiven Dienstleistungs- und Industrieexporten und damit verbundenen Arbeitsmarkteffekten abgeleitet. Deren Stichhaltigkeit wird anhand von Wachstumsdekompositionen auf Grundlage importbereinigter Nachfragekomponenten sowie sektoraler Produktions- und Beschäftigungsindikatoren überprüft. Die Ergebnisse zeigen, dass sich die südeuropäischen Volkswirtschaften insofern ähneln, als exportorientiertes Wachstum nicht ausgereicht hat, um die Gesamtwirtschaft mitzuziehen, hochwertige Dienstleistungen oder das verarbeitende Gewerbe zu stimulieren, den prozyklischen Beschäftigungsrückgang zu kompensieren oder hoch bezahlte Arbeitsplätze zu schaffen. Andererseits weisen die südeuropäischen Volkswirtschaften auch markante Unterschiede auf, sowohl in Bezug auf ihre sektoralen Wachstumsprofile als auch auf ihre gesamtwirtschaftlichen Resultate. In der zweiten Hälfte des letzten Jahrzehnts gelang es Portugal und Spanien beispielsweise, durch eine Kombination von Binnennachfrage und Exporten ein stärkeres Wachstum zu erzielen als Italien und Griechenland. Sektorale Entwicklungen in Portugal und Spanien (sowie in geringerem Maße in Italien) deuten auf einen potenziellen (wenn auch letztlich peripheren) "iberischen Wachstumspfad" hin, der mit den Beschränkungen des Euroraums vereinbar ist. Der Beitrag schließt mit einer Betrachtung der empirischen und theoretischen Implikationen dieser Ergebnisse für die wissenschaftliche Auseinandersetzung mit dem "südeuropäischen" Kapitalismusmodell. |
| Keywords: | Comparative political economy, economic sectors, export growth, growth models, post-austerity, Southern Europe, Exportwachstum, Post-Austerität, Südeuropa, Vergleichende Politische Ökonomie, Wachstumsmodelle, Wirtschaftssektoren |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:mpifgd:321881 |
| By: | Torrecillas Jodar Juan (European Commission - JRC); Nepelski Daniel (European Commission - JRC) |
| Abstract: | This report updates the data and findings of Signorelli et al. (2024) regarding the EUâs long-term budget with potential to affect the Digital Decade (DD) targets and objectives. We provide updated data and figures on the 5 main Funding Instruments â Recovery and Resilience Facility, Cohesion Policy, Horizon Europe, Digital Europe Programme and Connecting Europe Facility-Digital. We estimate a DD-target related budget of around â¬177 bn and a budget funding Digital Decade general objectives of â¬29.5 bn out of a total budget of â¬973 bn. As in the previous exercise, the targets that receive the largest amount of budget are the digitalisation of public services and businesses, which receive around 64% of the total mapped budget with potential to impact Digital Decade targets. At Member State level, we find that Spain, Italy and Greece are the countries that receive the largest RRF and CP budget in per capita terms, while the distribution of budget across targets is homogeneous across countries, with a strong focus on the digitalisation of public services |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc141966 |
| By: | Okan Akarsu; Emrehan Aktug; Muserref Kucukbayrak |
| Abstract: | We document hand-to-mouth (HtM) ratios for European countries using the Household Finance and Consumption Survey (HFCS) dataset and assess their role in monetary policy transmission. Using European Central Bank (ECB) monetary shocks and panel local projections, we find that countries with higher HtM ratios have a less pronounced response to monetary policy shocks compared to those with lower HtM ratios. This aligns with the predictions of heterogeneous agent New Keynesian models with both wage and price rigidity. When wages are stickier than prices, real wages for HtM agents may decline despite interest rate cuts, which hinders the demand boost typically expected from the New Keynesian Cross. Consequently, monetary policy is less effective in stimulating aggregate demand in countries with higher HtM ratios. |
| Keywords: | HtM ratio, Monetary policy transmission, Wage and price rigidity, Heterogenous agents |
| JEL: | E12 E24 E31 E52 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:tcb:wpaper:2506 |
| By: | Hoffmann, Mathias; Mönch, Emanuel; Pavlova, Lora; Schultefrankenfeld, Guido |
| Abstract: | During the post-pandemic inflation surge, many central banks actively used communication about the inflation outlook as a policy tool to limit spillovers from realized to expected inflation. We present novel survey evidence showing that the ECB's guidance about the projected inflation path substantially lowers households' inflation expectations in times of unusually high inflation. A reassuring, positively framed non-quantitative communication style has the largest treatment effects on short-term expected inflation. Providing simple visualizations of the ECB's projected inflation path also significantly lowered inflation expectations across horizons. We document substantial heterogeneity of these effects along key socio-demographic characteristics. Our findings suggest that, regarding their communication, central banks should 'keep it sophisticatedly simple (KISS)'. |
| Keywords: | Inflation projections, Central Bank Communication, Inflation Expectations, Randomized Control Trial, Survey Data |
| JEL: | E31 E52 E32 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:319900 |
| By: | Lasarte Lopez Jesus (European Commission - JRC); Gonzalez Hermoso Hugo; M'barek Robert (European Commission - JRC) |
| Abstract: | Life sciences-related sectors play a vital role in addressing EU challenges, driving innovation in key areas like healthcare, biotechnology, and agriculture to enhance competitiveness, sustainability, and strategic autonomy. This policy brief examines the socioeconomic relevance, structure, and trends of Life Sciences sectors using three key economic indicators: employment, value added and R&D business expenditure. The analysis shows that Life Sciences sectors are crucial to the EU economy, accounting for 9.4% of GDP and employing 29 million people. These sectors have also driven economic growth in recent years, with increasing GDP contributions and job creation in productive sectors, and offer high growth potential and innovation capacity to address EU challenges. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc142396 |
| By: | London Melina (European Commission - JRC); Cotignano Giacomo (European Commission - JRC); Fatica Serena (European Commission - JRC) |
| Abstract: | "To support informed policymaking, this brief offers a detailed, sector-specific analysis of how EU firms access capital markets, with a focus on green financial instruments, comparing their position with counterparts in other regions and industries.It aims to help identify both the opportunities financial markets offer for fostering innovation and advancing the green transition, and the barriers that still hinder effective financing. The analysis also outlines possible directions for strengthening EU financial markets and exploring their role in achieving the objectives of the Competitiveness Compass" |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc142344 |
| By: | Abendroth Dias Kulani (European Commission - JRC); Arias Patricia (European Commission - JRC); Bacco F. Manlio (European Commission - JRC); Bassani Elias (European Commission - JRC); Bertoletti Alice (European Commission - JRC); Bertolini Lorenzo (European Commission - JRC); Bertrand Astrid (European Commission - JRC); Bili Danai (European Commission - JRC); Boucher Philip (European Commission - JRC); Cachia Romina (European Commission - JRC); Ceresa Mario (European Commission - JRC); Chaslot Guillaume (European Commission - JRC); Chaudron Stephane; Comte Valentin (European Commission - JRC); Consonni Cristian (European Commission - JRC); Cosgrove Judith (European Commission - JRC); Giuditta (European Commission - JRC); Dessart François (European Commission - JRC); Francesca (European Commission - JRC); Diaz Stephanie (European Commission - JRC); Duch Brown Nestor (European Commission - JRC); Economou Anastasia (European Commission - JRC); Eriksson Maria (European Commission - JRC); Fabiani Josefina (European Commission - JRC); Farinha Joao (European Commission - JRC); Farrell Eimear (European Commission - JRC); Fernández Cruzado Ana (European Commission - JRC); Fernandez Llorca David (European Commission - JRC); Fernandez Machado Roxana (European Commission - JRC); Fernandez Macias Enrique (European Commission - JRC); Gomez Gutierrez Emilia (European Commission - JRC); Griesinger Claudius Benedict (European Commission - JRC); Herrero Cesar (European Commission - JRC); Hledik Juraj (European Commission - JRC); Jungnickel Robert (European Commission - JRC); Karopoulos Georgios (European Commission - JRC); Klein Sarah (European Commission - JRC); Kotsev Alexander (European Commission - JRC); Kotseva Bonka; Kovacikova Kristina (European Commission - JRC); Krasovec Andraz (European Commission - JRC); Lemaire Sarah (European Commission - JRC); Linge Jens (European Commission - JRC); Lopez Cobo Montserrat (European Commission - JRC); Macmillan Charles (European Commission - JRC); Marques Santos Anabela (European Commission - JRC); Minghini Marco (European Commission - JRC); Nagy Orsi (European Commission - JRC); Nai Fovino Igor (European Commission - JRC); Navajas Cawood Elena (European Commission - JRC); Nepelski Daniel (European Commission - JRC); Noroozian Arman (European Commission - JRC); Paci Daniele (European Commission - JRC); Pagano Andrea (European Commission - JRC); Purificato Erasmo (European Commission - JRC); Reina Vittorio (European Commission - JRC); Reitis-Münstermann Theresa; Rodriguez Müller Paula (European Commission - JRC); Sala Arianna (European Commission - JRC); Sanchez Ignacio (European Commission - JRC); Schade Sven (European Commission - JRC); Sehrer Mareike (European Commission - JRC); Sellitto Alessandro (European Commission - JRC); Soares Da Silva Joao (European Commission - JRC); Soler Garrido Josep (European Commission - JRC); Stake Johan (European Commission - JRC); Steri Gary (European Commission - JRC); Tangi Luca (European Commission - JRC); Toader Adeline-Raluca (European Commission - JRC); Torrecilla Salinas Carlos (European Commission - JRC); Torrecillas Jodar Juan (European Commission - JRC); Triaille Jean Paul (European Commission - JRC); Van Bavel Rene (European Commission - JRC); Vespe Michele (European Commission - JRC); Villar Onrubia Daniel (European Commission - JRC); Vinagre Joao (European Commission - JRC) |
| Abstract: | This Outlook report, prepared by the European Commission's Joint Research Centre (JRC), examines the transformative role of Generative AI (GenAI) with a specific emphasis on the European Union. It highlights the potential of GenAI for innovation, productivity, and societal change. GenAI is a disruptive technology due to its capability of producing human-like content at an unprecedented scale. As such, it holds multiple opportunities for advancements across various sectors, including healthcare, education, science, and creative industries. At the same time, GenAI also presents significant challenges, including the possibility to amplify misinformation, bias, labour disruption, and privacy concerns. All those issues are cross-cutting and therefore, the rapid development of GenAI requires a multidisciplinary approach to fully understand its implications. Against this context, the Outlook report begins with an overview of the technological aspects of GenAI, detailing their current capabilities and outlining emerging trends. It then focuses on economic implications, examining how GenAI can transform industry dynamics and necessitate adaptation of skills and strategies. The societal impact of GenAI is also addressed, with focus on both the opportunities for inclusivity and the risks of bias and over-reliance. Considering these challenges, the regulatory framework section outlines the EU's current legislative framework, such as the AI Act and horizontal Data legislation to promote trustworthy and transparent AI practices. Finally, sector-specific "deep dives" examine the opportunities and challenges that GenAI presents. This section underscores the need for careful management and strategic policy interventions to maximize its potential benefits while mitigating the risks. The report concludes that GenAI has the potential to bring significant social and economic impact in the EU, and that a comprehensive and nuanced policy approach is needed to navigate the challenges and opportunities while ensuring that technological developments are fully aligned with democratic values and EU legal framework. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc142598 |
| By: | Laurence Jacquet; Stéphane ROBIN (CY Cergy Paris Université, THEMA) |
| Abstract: | We re-examine the R&D - innovation - productivity nexus in 8 EU countries in the context of a possible EU-wide "super deduction" on R&D expenditures, using panels of industries with a long time dimension. We introduce dynamics in the innovation production function and extended production function models, taking the availability/unavailability of R&D tax credits (R&DTC) into account. Our benchmark estimates, obtained with panel ARDL models, yield positive longrun elasticities of innovation and productivity with respect to R&D intensity. R&D conducted under an R&DTC either reinforces an already-existing positive elasticity or makes it significantly positive if it was not before. Disentangling the respective effects of ’pure’ business R&D and of government-supported R&D reveals a wider diversity of situations, however. The effect of R&DTC is less often significant, sometimes superseded by other forms of public support to R&D. The main policy implication of these results is that a harmonized "super-deduction" on R&D at the EU level may be slightly premature. Complementary analyses suggest that targeting specific industries may make such a policy more effective and accurate. |
| Keywords: | Innovation, Productivity, Dynamic Panel Data Models, Public Support to R&D, European Science and Technology Policy |
| JEL: | O30 O38 H25 H54 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ema:worpap:2025-09 |
| By: | Albora Giambattista (European Commission - JRC); Diodato Dario (European Commission - JRC); Napolitano Lorenzo (European Commission - JRC) |
| Abstract: | "The economic complexity framework is inspired by evolutionary and institutional literature. It interprets the economy as an interconnected ecosystem by shifting the focus from aggregate quantities like GDP that reveal how much countries or regions produce to a more granular view revealing what they actually do (e.g. in which products they export or the in which technologies they innovate). This approach leverages high-quality trade and patent data as well as advanced techniques from machine learning, network science, and complex dynamical systems to provide a nuanced understanding of a country's economic sophistication and capabilities.These factsheets aim to showcase the potential of the economic complexity framework by providing quantitative insights into policy-relevant issues and to illustrate the kind of insights it can offer policymakers regarding the industrial and innovation landscape of Europe. Each factsheet focuses one EU member state and follows a fixed structure comprising six sections, each consisting of a chart and some accompanying text to aid interpretation. Overall, the factsheets aim to provide a comprehensive overview of the analytical potential of the economic complexity framework, demonstrating its value in informing policy decisions and contributing to economic development. They highlight the importance of understanding the intricate dynamics of industrial and innovation systems to drive strategic economic growth in the EU." |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc140945 |
| By: | McGuinness, Seamus (Economic and Social Research Institute, Dublin); Staffa, Elisa (Economic and Social Research Institute, Dublin) |
| Abstract: | In this paper, we examine the incidence of skill gaps among European employees. We identify the worker and firm level characteristics most commonly associated with skill gaps and investigate the extent to which this particular form of skill mismatch is associated with wage penalties. In 2021, we find that 16.2% of EU employees had essential and non-essential general skill gaps. The incidences for competency specific skill gaps were 29.5% for numeracy skills, 39.7% for technical skills and 49.4% for social skills. Among employees we find that general skill gaps were highly correlated with numeracy, social and technical skills gaps. The more complex the job, the higher the probability for workers to report having a general skill gap or a domain specific skill gap. We find no evidence that skill gaps are associated with negative productivity impacts (proxied by wages). We find that, where skill gaps exist, they are likely to be driven by workers motivated to keep pace with evolving requirements in more complex jobs. This is very different from the usual view of skill gaps as being concentrated among poorly educated workers in low value-added employment lacking essential skills. |
| Keywords: | job complexity, wages, skill gaps, measurement, policy |
| JEL: | J20 J24 J31 J38 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17993 |
| By: | Lasarte Lopez Jesus (European Commission - JRC); De Jong Beyhan (European Commission - JRC); Gurria Patricia; M'barek Robert (European Commission - JRC) |
| Abstract: | Monitoring income distribution in the bioeconomy and food system is necessary to understand their contributions to socioeconomic development and inform related policies. This report proposes a set of replicable methodologies for the inclusion of income distribution indicators within the frameworks of the Bioeconomy Monitoring System (BMS) and the EU Food System Monitoring Framework (FSMF). The report develops four indicators to measure income distribution in the bioeconomy and food system sectors, focusing on the functional income distribution. The indicators include the average salary by sector, share of labour income over value added, employee' earnings ratio, and share of value added by sector in the food chain. The report applies these indicators to the EU bioeconomy and food system sectors, revealing significant divergences in income distribution across sectors and Member States. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc141767 |
| By: | Hormigos Feliu Clara (European Commission - JRC); Florio Pietro (European Commission - JRC); Dijkstra Lewis (European Commission - JRC); Auteri Davide (European Commission - JRC); Bertozzi Cecilia (European Commission - JRC) |
| Abstract: | In the context of the European path towards carbon neutrality and energy resilience, this report investigates energy poverty in EU households and energy need challenges in the EUâs building stock, focusing on the vulnerabilities and opportunities for rural areas. Based on measures of consensual comfort levels, economic strain and dwelling energy efficiency from the Household Budget Survey and the EU Statistics on Income and Living Conditions, our results indicate that rural households could face higher levels of energy poverty. A high-resolution analysis of the building stock shows that rural areas feature higher residential building volumes per inhabitant and less compact shapes, which challenges their energy efficiency and increases heating needs. On the other hand, rural areas lead in energy efficiency improvements, and are particularly suited for the implementation of self-consumption renewable systems such as rooftop photovoltaics thanks to large roof areas per inhabitant and a high share of rural ownership (78% of owned dwellings). With rooftop PV, rural areas could potentially produce 2 200 kWh/inhabitant annually, 38% more than the average household electricity consumption in the EU. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc142243 |
| By: | António Afonso; José Alves; Wojciech Grabowski; Sofia Monteiro |
| Abstract: | We examine the effects of debt distribution characteristics, specifically skewness and maturity concentration, on sovereign yields across OECD countries over the period 1995Q1 to 2020Q4. After computing specific Lorenz curves and Gini coefficients, we find that positive skewness generally exerts a dominant influence. Employing Panel Cointegration Techniques, we show that greater skewness is associated with higher sovereign bond yields and higher short-term interest rates, whether measured in face or market value. In contrast, an increase in debt concentration tends to reduce both sovereign bond yields and short-term interest rates. |
| Keywords: | sovereign debt concentration; yields; Gini coefficient; skewness; Panel Cointegration; OECD. |
| JEL: | C23 C58 G15 E44 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:ise:remwps:wp03812025 |
| By: | Baraldi, Anna Laura; Cantabene, Claudia; de Iudicibus, Alessandro; Fosco, Giovanni; iacopo, Grassi |
| Abstract: | This paper investigates the fiscal consequences of EU-funded waste management projects on local taxation in Italian municipalities. Using a difference-in-differences approach on panel data from 2007 to 2023, we find that municipalities receiving EU cohesion funds experienced a significant increase in per-capita waste taxes, driven by rising service costs. A decomposition of these costs reveals that while separate waste collection expanded — in line with sustainability goals — the associated logistical and operational expenses increased sharply. Conversely, although the vol- ume of unsorted waste declined, disposal costs rose, likely due to lower quality and more complex treatment requirements. To assess whether cost increases reflected inefficiency or technological progress, we estimate total factor productivity changes via a non-parametric Malmquist index. The results indicate substantial productivity gains in sorted waste management, mostly from technological advancement, but also suggest transitional inefficiencies. Our findings highlight the need for more integrated investment strategies to balance environmental goals with fiscal sustainability. |
| Keywords: | U Cohesion Policy, Waste Management, Local Public Finance, En- vironmental Taxation, Service Costs, Efficiency and Productivity |
| JEL: | H23 H72 Q58 R53 |
| Date: | 2025–06–27 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125150 |
| By: | Emilio Colombo; Luca Michele Portoghese; Patrizio Tirelli |
| Abstract: | What is the relationship between internet (broadband) connectivity shocks, markups, and fixed costs? We address the issue by exploiting a large dataset based on balance sheets of European firms. Broadband shocks raise sales, profits-to-sales ratios, fixed costs, and markups of firms that are large, are more efficient (high TFP) and already bear large fixed costs. For these firms, the shock therefore is expansionary, and firms exploit it to raise profit margins. Firms at the opposite tails of the distribution exhibit a substantially muted response. Our results hint that the shock lowers the cost of entering new markets, inducing some firms to bear larger fixed costs as part of their profit-maximizing strategy. |
| JEL: | L9 L16 L25 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:dis:wpaper:dis2505 |
| By: | António Afonso; José Alves; Frederico Silva Leal |
| Abstract: | We examine the impact of government size on economic fluctuations and the role of fiscal policy in promoting macroeconomic stability in the period 1980-2024. The results indicate that indirect taxes, capital taxes, and social security contributions (as a percentage of GDP) are associated with lower output volatility, whereas direct taxes tend to amplify it, particularly over longer horizons. On the expenditure side, current spending – especially public wages and interest payments – also exerts a stabilising influence. We further provide new estimates of output losses from the two most severe recent recessions in the EU27 – the Great Recession and the COVID-19 pandemic – and find evidence that the severity of these losses may be linked to the scale of the government, both before and after the crises. |
| Keywords: | Government size; Fiscal policy, Macroeconomic stability; Output losses. |
| JEL: | E32 E62 H20 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:ise:remwps:wp03852025 |
| By: | Lindner, Vincent; Riedel, Max |
| Abstract: | This policy letter critically assesses the European Commission's proposed revisions to the Securitisation Regulation, which aim to simplify disclosure requirements by reducing reporting fields by at least 35%. While the Commission frames this as a step toward cutting red tape, this quantitative approach risks undermining the core function of securitisation reporting: to ensure transparency and enable effective risk assessment. We argue that politically expedient deregulation overlooks key qualitative dimensions of financial supervision. Using the case of auto asset-backed securities (ABS), we propose a costeffective alternative that reduces administrative burden while enhancing information depth. Specifically, we demonstrate that the mandatory reporting of just two existing vehicle identifiers can yield highly granular and reliable vehicle data. Using public datasets from the European Environment Agency, we show that these identifiers can reproduce or surpass the current data quality for key vehicle characteristics, including CO₂ emissions, fuel type, and engine power. We conclude that regulatory simplification should aim for intelligent substitution rather than deletion. |
| Keywords: | Securitisation, Disclosure Requirements, Collateral Identifiers |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:safepl:321878 |
| By: | Yankova Dima; Abbasiharofteh Milad |
| Abstract: | European innovation policy combines place-based and spatially blind instruments that operate under distinct logics. Building synergies between them requires not only regulatory alignment, but a better understanding of how economic actors interact across policy levels. This study examines how companies’ participation in the European Framework Programmes (FP) influences their propensity to engage in regional R&D partnerships, supported by Cohesion Policy. We analyse longitudinal data on Valencian firms using inferential network analysis (i.e., Temporal Exponential Random Graph Models). Results indicate that FP beneficiaries are more active in regional tie formation than non-FP firms, especially when academic intermediaries are involved. Yet, they also tend to collaborate with each other, limiting opportunities for knowledge diffusion among firms that do not benefit from the international collaboration premium. |
| Keywords: | rR&D network, innovation policy, intermediaries, TERGM |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2520 |
| By: | Pelissier Pierre-Mathieu (European Commission - JRC); Grabowska Marcelina (European Commission - JRC); Bergamini Michela (European Commission - JRC) |
| Abstract: | This report presents a patent landscape analysis investigating the innovation trends within the industrial biotechnology (IB) sector from 2015 to 2020. The study's primary objective is to identify the geographical hotspots of innovation, the key players, and the role of different types of organizations in driving technological advancements in IB. By employing a methodology that includes data retrieval through the Technology Innovation Monitoring (TIM) tool and careful selection of keywords and Cooperative Patent Classification (CPC) terms, the report categorizes patents across five technological areas pertinent to IB. The geographical scope of the analysis encompasses major global players as well as the European Union, providing a broad view of the innovation landscape. The report also introduces an online dashboard to facilitate further analysis and exploration of the data. This study serves as a resource for policymakers, industry stakeholders, and researchers, offering insights that can inform strategic planning and decision-making in the evolving field of industrial biotechnology. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc139154 |
| By: | Herr, Hansjörg |
| Keywords: | Minimum wage, impact analysis, Germany |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:gluwps:321870 |
| By: | Jean-Luc Albert (CEFF - Centre d'Etudes Fiscales et Financières - AMU - Aix Marseille Université) |
| Abstract: | The european economic news is marked by a protest (if not a revolt) from the agricultural world towards European policy and in particular with regard to trade agreements concluded or to be concluded which always include an agricultural component. In fact, and with regard to the activities initiated by the European Commission, we can wonder about a fundamental question: has management not become in itself a policy, instead of what public policies are? Three examples illustrate the complexities marking or striking the European customs area: a new reform of the Union's customs code, a highly uncertain case law from the Court of Justice, a problematization of trade agreements and in particular the errors of the agreement of trade and cooperation between the United Kingdom and the European Union on the origin of goods. |
| Abstract: | L'actualité économique européenne est marquée par une contestation (à défaut d'être une révolte) du monde agricole en direction de la politique européenne et en particulier s'agissant des accords commerciaux conclus ou à conclure qui comportent toujours un volet agricole. De fait, et en regard des activités initiées par la Commission européenne, on peut s'interroger sur une question fondamentale : la gestion n'est elle pas devenue en elle-même une politique, en lieu et place de ce que sont des politiques publiques. Trois exemples illustrent les complexités marquant ou frappant l'espace douanier européen : une nouvelle réforme du code des douanes de l'union, une jurisprudence la Cour de justice des plus aléatoires, une problématisation des accords commerciaux et en particulier les errements de l'accord de commerce et de coopération conclu entre le Royaume-Uni et l'Union européen sur le terrain de l'origine des marchandises. |
| Date: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05048108 |
| By: | Federico Barbiellini Amidei (Bank of Italy); Matteo Gomellini (Bank of Italy); Lorenzo Incoronato (CSEF, University of Naples Federico II, CESifo, CReAM and Rockwool Foundation Berlin); Paolo Piselli (Bank of Italy) |
| Abstract: | This paper studies the relationship between demographic change and entrepreneurship and highlights its spatial dimension. We digitize historical censuses to reconstruct entrepreneurship rates and the age structure of Italian provinces since1960. We develop an estimation framework that relates entrepreneurship to granular age cohorts of the local population, leveraging instrumental variables to address endogeneity issues. Our results uncover stark regional heterogeneity. In Northern Italy, we find a hump-shaped age-entrepreneurship profile peaking at cohorts aged 30-40. In the South, entrepreneurship increases with age. Regional differences in the local business environment partly account for different estimated profiles. |
| Keywords: | entrepreneurship, demographic change, regional differences, long run |
| JEL: | J11 L26 R11 |
| Date: | 2025–06–15 |
| URL: | https://d.repec.org/n?u=RePEc:sef:csefwp:752 |
| By: | Dessart François (European Commission - JRC); Fernandez Macias Enrique (European Commission - JRC); Gomez Gutierrez Emilia (European Commission - JRC) |
| Abstract: | The Joint Research Centre has developed a methodology to assess the relative impact of AI on occupations. It is based on a mapping between the amount of research in AI and occupations, linking them through cognitive abilities and work tasks.The methodology was used to calculate an AI exposure score for 100+ occupations. AI has the largest impact on occupations such as engineers, administration professionals (including policymakers), and teachers. In contrast, cleaners and construction labourers are much less impacted by AI. With the fast advancement of AI, this score can be updated to anticipate the likely impact of emerging AI technologies on occupations. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc142580 |