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The EU's Lisbon agenda has failed to deliver what it promised. Although most member-states have made some progress towards the targets they set themselves in 2000, their commitment to reform has been half-hearted. This leaves few EU countries well-placed to thrive economically. With public finances in a parlous state following the financial crisis, population ageing kicking in, and strains emerging in the eurozone, the EU must provide new impetus to supply-side reforms. The new EU 2020 agenda needs a stronger method of governance – with public rankings of countries’ performance – and should pay greater attention to skills and innovation.
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Coal will be the biggest single source of electricity for decades to come. Yet the EU is doing far too little to encourage the take-up of carbon capture and storage, a technology which could make coal a low-carbon fuel. This failure threatens not only Europe’s leadership of global climate change policy but also its ability to profit from the emergence of a huge global market for equipment and expertise. Stephen Tindale and Simon Tilford argue that more public money is needed for the construction of demonstration projects, while regulation and strong market signals will be required to ensure mass deployment of the technology.
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In 2008, the global financial system came close to collapse. Ever since, policy-makers have been busy overhauling the way it is regulated and supervised. Will this flurry of activity produce a more stable financial system – and if it does, at what cost? Many of the changes afoot are desirable. But the reform agenda suffers from three flaws: side-issues are getting more attention than they deserve; regulation is doing all the heavy lifting; and not enough attention is being paid to the combined impact of all the changes underway. The regulatory burden is rising, therefore, but policy may not be taking the optimal path to greater stability. To do so, the reform agenda needs to be guided by a clearer sense of priorities.
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