The bilateral tariffs imposed by the US are uncalled for, and the EU must respond vigorously to deter the administration from harming their mutual trade relationship. The threats of tariffs come on top of adverse energy shocks associated with the war in the Ukraine and lagging productivity...

In the presence of strategic complementarities stemming from peer effects in demand or from technological spill-overs, propagation and amplification mechanisms increase the effectiveness of climate policies. This suggests that climate goals can be met with smaller policy interventions. However,...