{"id":18433,"date":"2025-01-16T14:19:24","date_gmt":"2025-01-16T13:19:24","guid":{"rendered":"https:\/\/www.progressives-zentrum.org\/en\/?p=18433"},"modified":"2025-03-03T19:32:58","modified_gmt":"2025-03-03T18:32:58","slug":"preparedness-investment-and-industrial-policy-in-times-of-political-upheaval-progressive-economics-network-meeting-in-berlin","status":"publish","type":"post","link":"https:\/\/www.progressives-zentrum.org\/en\/preparedness-investment-and-industrial-policy-in-times-of-political-upheaval-progressive-economics-network-meeting-in-berlin\/","title":{"rendered":"Preparedness, Investment and Industrial Policy in Times of Political Upheaval"},"content":{"rendered":"\n

As the new European Commission is taking charge, the Progressive Economics Network (PEN) reconvened in Berlin and online on 21 and 22 November 2024 to discuss current challenges and help guide the development of policy responses strengthening economic resilience, industrial policy and competitiveness as well as public investments in the green transition. PEN is a joint initiative by the Foundation for European Progressive Studies (FEPS), Friedrich-Ebert-Stiftung and Das Progressive Zentrum.<\/strong><\/strong><\/p>\n\n\n\n

Europe\u2019s economy is facing a series of economic challenges stifling growth, productivity and innovation. The picture across the board is mixed when it comes to economic output. The conventional wisdom that the economic heavyweights, including Germany, pull ahead does not hold at the moment. On top of this, the result of the US elections brings additional uncertainty to international relations, both on economic and security dimensions.<\/p>\n\n\n\n

In these times, speaking with one voice while also addressing current challenges in a targeted manner is more important than ever for progressives in power. But there is much to build on. Europe stood together in dealing with the immediate economic and social damage brought about by the pandemic, and transatlantic unity has seen a remarkable revival in the West\u2019s resolute response to Russia\u2019s unprovoked war of aggression. <\/p>\n\n\n\n

To bring policymakers and leading economic advisers and researchers together, the Progressive Economics Network hosted a two-day event in Berlin and online on 21\u201322 November 2024. The meeting consisted of three main sessions taking place at the FES Berlin Office, the German Chancellery, and the DPZ Office. This event was held upon invitation only.<\/p>\n\n\n\n

Lessons Learnt from the Crises: Building up Shock Preparedness and Resilience<\/h2>\n\n\n\n

Even though the inflation crisis looks to be over, there was very little learning and policy adjustment in its aftermath. Apart from the reform of the European electricity market, there was very little done that would prevent or mitigate an inflation shock in the future. Instruments to address supply-side shocks remain limited and vulnerabilities in different markets remain. Against this background, Isabella Weber<\/strong>, Associate Professor of Economics at the University of Massachusetts Amherst, held a presentation on why we need economic disaster preparedness, especially with regard to the impact of inflation on social cohesion and the climate crisis. According to Weber, only a few sectors would be systemically significant related to inflation based on either external shocks like the Russian war on Ukraine or the COVID-19 pandemic (\u2018shockflation\u2019) or rising prices due to the EU’s stricter CO2 pricing policy (\u2018carbonflation\u2019). An economic disaster preparedness strategy was particularly important in the energy sector (oil and gas, coke and petroleum products as well as electricity and heating), for food and beverages, real estate services and land transportation.<\/p>\n\n\n\n

Comments were made by: <\/p>\n\n\n\n