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
--------
45:56
[UPDATED] Wired for the future: building Europe’s next-gen electricity grid
*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
--------
49:00
Europe’s autonomy amid the US-China trade clash
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!
--------
39:03
EU Tech Rules: What to make of the first DMA fines?
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 tax’, The Sound of Economics, Bruegel podcast with Rebecca Christie, Benjamin Angel and Pascal Saint-Amans, 6 December 2023
* Music is excerpted from Lake Danse by Roy Hargrove, courtesy of Red Brick Songs and Universal Music
--------
52:42
The Western Balkans: a region in waiting
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.
The Sound of Economics brings you insights, debates, and research-based discussions on economic policy in Europe and beyond.
The podcast is produced by Bruegel, an independent and non-doctrinal think tank based in Brussels. It seeks to contribute to European and global economic policy-making through open, fact-based, and policy-relevant research, analysis, and debate.
España