Latest EconPol News
New Free Trade Agreements May Increase Industrial Production in the EU by up to 1.1%
Finalization of the ongoing EU free trade negotiations could boost the economy in the EU and offset the negative effects of US tariffs. That’s according to a study by EconPol Europe. Depending on the level of detail in the new trade agreements, value added in industry would permanently increase by up to 1.1% and European economic output by 0.43%.
Rethinking Industrial Policy for European Tech Sovereignty
At a side event held alongside the Munich Security Conference, economists and policy experts discussed the role of industrial policy in advancing European technological sovereignty and strengthening Europe’s innovation capacity in a changing geopolitical environment. The panel featured Oliver Falck, Svenja Falk, Clemens Fuest, Daniel Gros, and Fiona Murray. The debate highlighted the growing interdependence between security policy, technological leadership, and economic competitiveness. Video recordings of the panel discussion and short expert interviews are available on the conference website.
Income Tax Reforms Saved German Taxpayers EUR 15bn Despite Fiscal Drag
The government not only offset the effects of fiscal drag in Germany between 2019 and 2023 but also provided relief, as a new study by EconPol Europe shows. “Overall, the relief effect of various income tax reforms between 2019 and 2023 was greater than the burden caused by fiscal drag,” says ifo researcher Max Lay.
EconPol Newsletter 01/2026
The soon-to-be-unveiled EU Industrial Accelerator Act seems to be guided by the principle of "Buy European," in an attempt to strengthen domestic industries. European industrial policy should certainly aim for technological sovereignty. However, protectionist measures come with risks. Our latest publications and public debates address this very issue, as well as inheritance taxation, alternative labor market statistics, and the impact of patience and institutions on lifelong learning.
Current Publications
EconPol Forum 01/2026: Paving The Way for Tech Disruption: How to Rethink EU Industrial Policy
Industrial policy has returned to the forefront worldwide. The EU is engaged in an effort to expand the scope and scale of its industrial strategy. The goal: to make the continent more resilient and autonomous in an increasingly assertive global landscape, whether on an industrial, commercial, or geopolitical level. To achieve this, however, the bloc must take coordinated and targeted action to leverage its comparative advantages and diversify its R&D partnerships. Its technological sovereignty is at stake.
Fiscal Drag in Europe: Key Facts
The Role of Maritime Chokepoints for German International Trade
EconPol Forum
EconPol Forum (formerly CESifo Forum) is a quarterly English-language journal to bring economic analysis on topics of worldwide interest along with policy advice to a broad range of policymakers and the public.
EconPol Policy Briefs
EconPol Policy Briefs are short articles providing key findings of policy-related studies and policy implications from recent policy relevant economic research. Grounded in evidence-based insights, the Policy Briefs discuss current topics in economic and fiscal policy within a wide range of specific areas of expertise.
EconPol Policy Reports
EconPol Policy Reports conduct comprehensive economic analysis on current European economic and fiscal policy issues, fostering a deeper understanding of European economic development and the implications of policy measures. The reports provide valuable insights into policy scenarios and the impact of economic policies, facilitating informed public discussions and evidence-based policy making.