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Investing in decarbonising the EU: The role of the economic governance reform and beyond

How to balance fiscal sustainability and responsibility with the financing of the green transition?

Date: Wednesday 29 March 2023, 15.00 - 17.00 CEST
Venue: Friedrich-Ebert-Stiftung EU Office, Rue du Taciturne 38, 1000 Brussels
Language: English

Please note that this event will take place in person and will also be live streamed. Please use the link:

The European Commission communication of 9 November 2022 on the review of the Stability and Growth Pact proposes solutions to some of the pressing criticalities of the current economic governance framework. The corridor of reform is politically narrow. While the proposal stresses the importance of the green transition, it does not seem to increase by much the member states’ fiscal space for investment in the decarbonisation of their economies.

The Commission’s Green Deal Industrial Plan, in tandem with the announcement of a European Sovereignty Fund, may open complementary pathways for financing the green transition. The importance of a successful decarbonisation of the EU’s economy is highlighted by the EU’s own climate objectives and energy dependency, as well as by the work on integrating climate risk in economic modeling by the ECB and the potential impact of this on the assessment of the sustainability of national debts.

Following an event in Rome in 2022, the Friedrich-Ebert-Stiftung and ECCO convene a dialogue in Brussels with Italian and German Progressives to consider possible ways to balance fiscal sustainability and responsibility with the financing of the green transition in the context of the review of the Stability and Growth Pact and beyond.

Speakers:

  • Introduction: Matteo Leonardi, Co-Founder and Executive Director, ECCO Think Tank

  • Antonio Misiani, Member of the Italian Senate, vice president of the budget commission
     
  • Joachim Schuster, Member of the European Parliament, spokesperson economic policy Europa-SPD
     
  • Paul van den Noord, Affiliate Member, Amsterdam School of Economics and Amsterdam Centre for European Studies
     
  • Stéphanie Pamies, Head of Unit DG ECFIN, Unit C2 - Sustainability of public finances and public expenditure trends
     
  • Moderation: Davide Panzeri, ECCO Think Tank
     
  • Conclusions: Stephan Thalhofer, FES Just Climate

If you have any questions about the event, please contact Stephan Thalhofer by e-mail (stephan.thalhofer(at)fes.de).

In the Spotlight

An agreement on the European electricity market reform

Intense negotiations took place, now an agreement on the EU electricity market reform has been reached. It became necessary following the electricity price crisis as a consequence of the Russian invasion of Ukraine. The goal: protect private households from extreme high energy prices, reduce price fluctuations, and strengthen the competitiveness of renewable energies.
In the future, surplus profits from clean electricity can be redistributed in the long term by the member states through contracts for differences (CfDs). Long-term green electricity supply contracts (PPAs) will be secured.
The two-sided contracts for differences aim to guarantee stable prices and planning security for producers. Subsidies can be granted for wind, solar hydropower, geothermal, and nuclear energy. Alternative support mechanisms for renewables such as Germany's sliding feed-in premium, are also possible.
However, as with CfDs, prices must be capped here too. CfDs are also possible for repowered plants and expansion or lifetime extension of operating plants. This was particularly important to France, as it allows the existing fleet of nuclear power plants to be subsidised. Critics fear that this could guarantee a very low electricity price for industry in France and distort competition.
The Commission is therefore now to review the promotion of existing plants under competition law. An exemption for coal in certain circumstances, which was introduced at Poland's insistence, also remains controversial.
Other crucial points of the reform: Consumer rights will be strengthened; a price reduction in the event of a price crisis will be possible for households and SMEs in need; energy sharing of clean electricity will be facilitated.
Further information

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Keep cool and don't carry on

Can we really afford climate protection? Yes, we can. And we must. An unchecked temperature increase would endanger the world economy, labor markets and global stability like nothing before. No one could really afford that any more. Besides, there is much to gain in the industrial revolution of our time. More

Just European Green Deal

Just European Green Deal

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Energize it, industrialize it and make it work

Energize it, industrialize it and make it work

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Going local and let people drive change

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About FES Just Climate

FES Just Climate acts as a think tank about current and coming trends, and a policy advisor in ongoing debates. We support FES offices and their partners in shaping the industrial revolution of our times. We focus on energy, industrial, structural and labor policies, and the European Green Deal.

In the future, climate and social policymust be two sides of the same European coin. We need to develop climate-neutral energy systems and industries. Simultaneously, we need to safeguard and strengthen the welfare state, local participation and workers’ rights.We shall be working on this with our political, trade union and civil society partners, as well as other think tanks.

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Investing in decarbonising the EU: The role of the economic governance reform and beyond

How to balance fiscal sustainability and responsibility with the financing of the green transition?

Date: Wednesday 29 March 2023, 15.00 - 17.00 CEST
Venue: Friedrich-Ebert-Stiftung EU Office, Rue du Taciturne 38, 1000 Brussels
Language: English

Please note that this event will take place in person and will also be live streamed. Please use the link:

The European Commission communication of 9 November 2022 on the review of the Stability and Growth Pact proposes solutions to some of the pressing criticalities of the current economic governance framework. The corridor of reform is politically narrow. While the proposal stresses the importance of the green transition, it does not seem to increase by much the member states’ fiscal space for investment in the decarbonisation of their economies.

The Commission’s Green Deal Industrial Plan, in tandem with the announcement of a European Sovereignty Fund, may open complementary pathways for financing the green transition. The importance of a successful decarbonisation of the EU’s economy is highlighted by the EU’s own climate objectives and energy dependency, as well as by the work on integrating climate risk in economic modeling by the ECB and the potential impact of this on the assessment of the sustainability of national debts.

Following an event in Rome in 2022, the Friedrich-Ebert-Stiftung and ECCO convene a dialogue in Brussels with Italian and German Progressives to consider possible ways to balance fiscal sustainability and responsibility with the financing of the green transition in the context of the review of the Stability and Growth Pact and beyond.

Speakers:

  • Introduction: Matteo Leonardi, Co-Founder and Executive Director, ECCO Think Tank

  • Antonio Misiani, Member of the Italian Senate, vice president of the budget commission
     
  • Joachim Schuster, Member of the European Parliament, spokesperson economic policy Europa-SPD
     
  • Paul van den Noord, Affiliate Member, Amsterdam School of Economics and Amsterdam Centre for European Studies
     
  • Stéphanie Pamies, Head of Unit DG ECFIN, Unit C2 - Sustainability of public finances and public expenditure trends
     
  • Moderation: Davide Panzeri, ECCO Think Tank
     
  • Conclusions: Stephan Thalhofer, FES Just Climate

If you have any questions about the event, please contact Stephan Thalhofer by e-mail (stephan.thalhofer(at)fes.de).

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Sozialökologische Transformation gestalten: Wie gesellschaftliche Barrieren überwunden und Resonanzpotenziale genutzt werden können

Schleer, Christoph; Wisniewski, Naima; Reusswig, Fritz A.

Sozialökologische Transformation gestalten: Wie gesellschaftliche Barrieren überwunden und Resonanzpotenziale genutzt werden können

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Sozialökologische Transformation: Ländervergleichender Bericht - Grafische Aufbereitung

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Download publication (70 MB, PDF-File)


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