EU budget proposal: right priorities, too little ambition European Commission proposals for the next multiannual EU budget contain some good ideas but fall far short of the needed radical rethink

🔍 EU budget proposal: right priorities, too little ambition

@zsoltdarvas.bsky.social scrutinises the European Commission's budget proposal, both in light of the subsequent debate it has ignited and with reference to Bruegel's own blueprint for an MFF revamp

🔗 buff.ly/ETkRHbk
#EconSky

Bigger, better funded and focused on public goods: how to revamp the European Union budget Improving economic policy

💡 Catch up on the MFF Blueprint authored by @zsoltdarvas.bsky.social, @roeldom.bsky.social, Marie-Sophie Lappe, Pascal Saint-Amans and @steinbacharmin.bsky.social

📖 buff.ly/nif44vY

CORE concerns: why a turnover-based levy is wrong for the EU budget A plan to raise EU revenues from companies benefitting from the single market would create risks and distortions, and should be withdrawn

The #EU proposed CORE levy taxes turnover, not profit. It penalises low-margin firms. It’s regressive & risks tax cascading.

Together with @zsoltdarvas.bsky.social & Marie-Sophie Lappe, I argue it should be scrapped.

👉 www.bruegel.org/first-glance...

#EUBudget #Tax #MFF @bruegel.bsky.social

CORE concerns: why a turnover-based levy is wrong for the EU budget A plan to raise EU revenues from companies benefitting from the single market would create risks and distortions, and should be withdrawn

🫴 CORE concerns: why a turnover-based levy is wrong for the EU budget

⚠️ One revenue-raising proposal of the Commission's #MFF announcement could undermine the budget's other merits

🖊️ @zsoltdarvas.bsky.social, @roeldom.bsky.social and Marie-Sophie Lappe
🔗https://buff.ly/QTdQhTN
#EconSky

Come and join us for an insightful discussion on the next EU budget at the Bruegel Annual Meetings on 3 September at 15:30-16:30!

My sincere thanks to Governor Boris Vujcic and Managing Director Kristalina Georgieva for the opportunity to speak at the event, and to my fellow panellists, Ivailo Izvorski, Piroska Nagy Mohacsi, and Debora Revoltella, as well as our moderator, Sasha Vakulina, for the excellent discussion.

International conference “Growth and Resilience of Central, Eastern and Southeastern European Countries in a Fragmented World” held in Dubrovnik - HNB

This was one of the key messages I shared at the joint @hnb-croatia.bsky.social - IMF conference in Dubrovnik yesterday (www.hnb.hr/en/-/u-dubro...)

If national governments have deliberately maintained distinct domestic regulations and standards to shield local service providers from competition, then, unfortunately, the prospects for a breakthrough appear limited.

CEE countries have greatly benefited from the EU’s Single Market, despite ongoing fragmentation. The European Commission’s new Single Market Strategy contains several valuable initiatives, but dismantling the remaining barriers will depend more on the political will of Member States.

Although the first quarter typically sees a seasonal dip in Russian imports, the decline in 2025 is significantly larger than in previous years, except for the first few months after the full-scale invasion of Ukraine in 2022.

Russia's slowing economic growth cuts demand for Chinese imports Slowing economic growth and reduced demand for large purchases like cars, electronics and household appliances have curtailed the volume of Russia's imports from China, first-quarter customs data showed, just as Beijing faces serious trade headwinds from U.S. tariffs.

A Reuters report (www.reuters.com/world/china/...) suggests that slowing Russian economic growth, driven by high interest rates and labour shortages, has reduced demand for key imports from China, including cars, electronics, and household appliances.

Our updated Russian foreign trade tracker (www.bruegel.org/dataset/russ...) shows a notable decline in Russia’s imports, particularly from China.

In fact, increasing trade with other global partners could help offset some of the negative effects of reduced trade with the United States.

Instead, we should engage in dialogue with the U.S. to reach a sensible deal. We should build alliances with the rest of the world to uphold global trade rules beyond the U.S. market.

Since the U.S. trade deficit is sustainable, there is no economic justification for trying to reduce it. The EU should not rush to retaliate. Let the U.S. bear the consequences of its own policy – we need not harm ourselves in response.

Reducing the trade deficit without increasing production lowers domestic consumption and investment, and tariffs are also likely to dampen U.S. production—further harming both. Moreover, U.S. exports depend on imports, so making US imports more expensive will negatively affect US exports as well.

Portfolio.hu - Online gazdasági újság Pénzügyi és gazdasági online hírportál. Mikro- és makrogazdasági hírek, elemzések, életrevaló fórumok a szakembereket foglalkoztató kérdésekről. Pénzügyi konferenciák, iparági fórumok, befektetői klub...

In an interview with portfolio.hu www.portfolio.hu/gazdasag/202... (in Hungarian), I argue that the United States is likely to suffer the most damage from the tariff war.

Trying to reduce a sustainable trade and current account deficit, while also undermining trust in U.S. politics and the dollar, will leave Americans worse off in the long run, even after the short-term effects of new tariffs wear off.

Returns on foreign assets and liabilities: exorbitant privileges and stabilising adjustments Large stock of foreign assets and liabilities could foster international risk diversification. US, British and Japanese investors earn high yields on

Pia Hüttl and I confirmed this in our earlier research www.bruegel.org/working-pape... .

However, the economics literature has long shown that the U.S. pays less on its foreign liabilities than it earns on its foreign assets, thanks in part to the dominant role of the U.S. dollar in the international monetary system. This contributes to US current account sustainability.

This is paradise – if the current account deficit is sustainable. And in the case of the U.S., it is. Running a current account deficit implies accumulating foreign liabilities, such as foreign investors buying U.S. Treasuries or investing in American companies.

While reading insightful commentaries on the new U.S. tariffs, let me take a step back and question the rationale behind President Trump’s obsession with the U.S. trade deficit. A trade deficit and current account deficit means that domestic consumption and investment exceed domestic production.

Why it's time for Norway and Iceland to join EU Iceland and Norway are deeply integrated into the EU’s internal market through the European Economic Area and the Schengen zone, yet formally outside the Union. Both have a history of EU candidacy. Bo...

Support for EU membership is rising in Norway and Iceland, because “non-integrated, neutral states do not function as buffer zones between spheres of influence. To aggressive great powers with imperial mindsets, they appear as easy prey, inviting predatory behaviour.”

euobserver.com/eu-and-the-w...

I'm thrilled to join BlueSky and look forward to engaging in insightful discussions!