The Progressive Economics Network (PEN) aims to bring together some of the top economic advisers from multiple European countries and the US. The goal of the series is to build upon the political momentum on both sides of the Atlantic to put into place an economic plan that is fit for the huge transformational challenges posed by the conflict in Ukraine, Covid-19, and the climate crisis.
The network offers a space to strategise, exchange best-practices, and form a progressive economic policy strategy on how to tackle some of the most pressing economic challenges in the areas of inflation policy, fiscal policy and regional development and industrial policy.
Background
In light of the sharp rise of political polarisation, geopolitical instability and economic insecurity, there is a need for progressives on both sides of the Atlantic to deepen their economic leadership. Overlapping social, economic and environmental challenges make decisive policy action even more important.
Russian war in Ukraine
Alongside an emerging fiscal consensus, Europe and the U.S. have responded to the Russian invasion in Ukraine with far-reaching sanctions and social relief packages, while facing surging energy and commodity prices as well as greater volatility. Under these conditions, supply-side bottlenecks, interrupted supply chains, fossil inflation, and distributive conflict over price markups have exhibited the need of boosting investments into energy sovereignty and the social-ecological transformation. Relevant questions for progressive policymakers in this context are:
- How can the inflationary pressures be alleviated while keeping the economy on a path toward strong growth and shared prosperity?
- What is an adequate economic toolkit that serves progressive policymakers to respond to the inflationary environment?
- How can low-income households who disproportionately suffer from increased prices over time be supported?
- And does Europe need a Hamiltonian moment 2.0? What role does the issuance of European bonds play in this?
Climate crisis
A progressive industrial policy that caters to the socio-ecological transformation is needed. Under conditions of financialisation, industrial policies have to reduce uncertainty about the future. Which role do subsidies for Research & Development, enterprises, and public procurement play in a progressive industrial strategy?
Covid-19 pandemic
In response to the pandemic, activating the General Escape Clause of the Stability and Growth Pact by the European Commission and the ECB’s pandemic emergency purchase programme (PEPP) were necessary first steps in progressive economic policymaking. Similarly, the Biden administration’s massive stimulus bill and investment packages offer great potential for progressive reform in the US. Economic policymakers should thus grasp this opportunity. The EU and the US are in need of a new progressive consensus that leverages a greater economic repertoire. Which fiscal tools are needed to enter a growth environment after the pandemic?
The Vision
To answer these pressing issues, the Progressive Economics Network (PEN) aims to bring together some of the leading economic advisers, analysts, and scholars from multiple European countries and the US. The goal of the series is to offer a space to think, exchange, and form a progressive inflation, fiscal, and industrial policy strategy in order to build capacities for a progressive economic consensus.
With progressives in power in key countries, this moment provides an opportunity for them to come together and outline a vision for tackling these big socio-economic challenges. A joint progressive transatlantic vision for economic policy up to 2030 could serve as a North Star at a time of huge geopolitical uncertainty. It could prove that governments in liberal democracies are able to generate prosperity while reducing inequalities, empowering communities and delivering growth within planetary boundaries. Coming together and implementing such a transnational vision for equitable prosperity could allow progressives to champion democratic values, a just transition, social justice and human rights at home and abroad.
Recent PEN Meetings
Towards a progressive toolbox to deal with inflation: Progressive Economics Network Hybrid Expert Meeting in Brussels
On 30 January 2024, the Progressive Economics Network (PEN) held an Expert Meeting in the FEPS Headquarters in Brussels as well as online, where academics, policymakers and key advisers were gathered to discuss the experience of new ways to managing inflation and how they should be refined to build up a progressive toolbox approach to dealing with inflation. The meeting’s highlight was a keynote speech and presentation by Professor Isabella Weber, Associate Professor of Economics, University of Massachusetts Amherst and Associate in Research, Fairbank Center, Harvard University, in which she spoke about latent systematically significant prices in different sectors and why some prices matter much more than others. Isabella Weber presented a set of recommendations aimed at putting together a toolbox for economic preparedness, looking at possible actions to counter economic shocks.
Getting the Green Deal Done: Progressive Economics Network meets in Brussels
On 21 September 2023, the Progressive Economics Network (PEN) met in Brussels to continue the discussions of the last meeting in Washington, D.C. that highlighted a paradigm shift in economic policy in the U.S. towards a new industrial strategy. At the heart of the day’s exchanges, held at the offices of Friedrich-Ebert-Foundation and the Foundation for European Progressive Studies (FEPS) as well as at the European Commission’s Berlaymont building, were possible ways of equipping Europe with similar policy tools, funding and governance to enable a far-reaching industrial and investment strategy.
Progressive Economics Network gathers at IMF Spring Meetings side event in Washington, D.C.
On April 12th, 2023, on the sidelines of the IMF Spring Meetings in Washington D.C., the third PEN gathering convened about 40 senior economic advisers, experts and policymakers from the U.S., the European Union, Germany, Spain, France, the UK, Slovenia, Ireland and Sweden. The event was kicked off with inputs by Heather Boushey (President Biden’s Council of Economic Advisers) and Araceli Fernandez Pales (Lead author of the IEA’s flagship Energy Technology Perspectives report). This was followed by the views from European capitals and a discussion with all participants.
Carsten Jung’s discussion paper builds on the discussions at the roundtable and reflects on some of the key issues around industrial policy in the U.S. and Europe.
Progressive Economics Network Gathers in Lead-Up to G20 Meeting for the Second Time
On November 10th, 2022, prior to the G20-Meeting in Bali, 30 advisers and experts participated in the exclusive discussion. Laura Cozzi (IEA’s Chief Energy Modeller) led off the very stimulating discussion, which was then followed by interventions from Germany (Ole Funke, German Chancellery), France (Stanislas Pommeret, Alternative Energies and Atomic Energy Commission), as well as Brussels (Members of the Cabinet of EU Vice-President Timmermans and Commissioner Gentiloni). Carys Roberts (IPPR) moderated the event.
Progressive Economics Network kicks off with pre-briefing for the IMF Annual Meetings
On October 6, 2022, the virtual kick-off meeting for the newly-established Progressive Economics Network took place. Before meeting at the IMF Annual Meetings in Washington, DC, 34 advisers and experts joined the exclusive discussion. Prof. Ulrike Malmendier (Berkeley) and Prof. Moritz Schularick (Sciences Po / Bonn) kicked off the debate with their viewpoints on the current macroeconomic situation, followed by a response from Steffen Meyer (German Chancellery). Carys Roberts (IPPR) hosted the meeting.
Co-Hosts
Team
Communications
News
Towards a progressive toolbox to deal with inflation - Progressive Economics Network Expert Meeting in Brussels
Getting the Green Deal Done: Progressive Economics Network meets in Brussels
We develop and debate progressive ideas and bring together leading actors who turn thoughts into action. Our think tank’s goal: making the just transformation a reality. ▸ Learn more