Simon Tilford from the CER says: "This is a recipe for stagnation, deflation and political populism in France and Italy. It may culminate in a breakdown in relations between Germany and these countries and could even lead to a eurozone break-up."
Stephen Tindale, an associate fellow at the Centre for European Reform, argued in a September report that "inefficient fossil fuel subsidies" needed to be stopped in Europe, in line with a G20 commitment made in 2009.
"Everybody recognises him as competent and effective, so if he’s given charge of the important energy dossier that is good news because you need someone as experienced as him to handle this sensitive issue," said Charles Grant, director of the CER.
"The ECB’s position has been made much harder by the eurozone employing pro-cyclical fiscal policies" of spending cuts and tax increases that have weighed on growth, said Simon Tilford, deputy director of the CER.
The CER commission on the UK and the EU single market