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Formation of Geopolitical Blocs Would Hit the EU’s Pharmaceutical, Machinery, and Automotive Industries Particularly Hard

A division of the global economy into geopolitical blocs would hit European pharmaceutical manufacturers, automotive manufacturers and suppliers, and manufacturers of machinery and equipment particularly hard. This is the finding of a study conducted by the EconPol research network and presented today in Brussels. Although agriculture and mining could see small increases in value added, they account for only a small proportion of the EU’s total economic output.

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Emigration Can Lead to More Votes for Right-Wing Parties in Poland

Emigration from Poland can have a strong impact on elections, according to a new study in the journal EconPol Forum. Higher emigration causes a significant increase in right-wing votes: a 1 percent increase in the number of emigrants increases the share of right-wing votes by 0.25 percent. The opposite is true for the left-wing parties: a 1 percent increase in the number of emigrants causes a 0.57 percent decline in left-wing parties’ share of the vote.

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Germany’s Middle Class Has One of the Highest Tax Burdens in Europe

In a European comparison, the tax and contribution burden for middle-class incomes is highest in Denmark, Belgium, Germany, Finland, Lithuania, Slovenia, and the Netherlands. By contrast, France, Poland, Italy, Luxembourg, Sweden, and Austria impose average tax burdens on their middle classes, while the tax burden for the middle class is lowest in Spain, Greece, Estonia, Portugal, Cyprus, Bulgaria, and Romania. These are the findings of a study conducted by the ifo Institute and EconPol Europe on behalf of the Hanns Seidel Foundation.

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German Automotive Industry Employees Hold Top Position in E-mobility Skills

Employees in the German automotive industry are better qualified in e-mobility than employees in other Western countries. This is a finding by EconPol Europe researchers using data from the career network LinkedIn. In the German automotive industry, 6.2 percent of the employees on the online platform have skills in e-mobility. In the Italian automotive industry, the figure is 4.6 percent; in the US, 3.7 percent; in France, 3.3 percent; and in Spain, 2.4 percent. All values are based on employees’ self-reported data from 2023.

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ifo President Clemens Fuest Sees Need for Improvements in EU Debt Rules

The President of the ifo Institute, Clemens Fuest, sees a need for improvement in the European Commission’s plans for debt rules in the EU. “Reform should focus on fiscal discipline and member states’ national ownership. In the Commission’s current proposal, this is only partly the case,” Fuest says. Allowing more debt when states give greater weight to EU policy priorities in their budgets might conflict with the goal of sustainable fiscal policy, he explained in an essay in the new EconPol Forum.

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