What Now, Europe?

Implementing the digital euro project

The European Central Bank (ECB) is working on a digital version of the euro, a project started back in 2020 that is coming closer to fruition as the enabling EU legislation progresses. The ECB has designed a digital equivalent of cash, aimed at complementing physical euros for day-to-day payments. Its approach may be compared and contrasted with the US Federal Reserve's reluctance to introduce a digital dollar and with the People's Bank of China's definition of the digital yuan largely as a bank deposit. Has the ECB's rationale for the digital euro evolved over time, from a response to tech challengers, such as Facebook's Libra project in 2019, towards a more geoeconomic motivation of reducing critical dependency on non-EU payment service providers? What are the main features of the digital euro as currently considered? When will it be concretely introduced, and what are the risks and opportunities in Europe and globally?

The geopolitics of EU enlargement

The European Union has not admitted a new member state since Croatia in 2013, while the United Kingdom left the block in 2020. Enlargement, however, is now back on the EU agenda. Western Balkan countries such as Montenegro are coming close to EU membership, and the new geopolitical context has fostered a reconsideration of the EU enlargement approach altogether. What factors will determine which new countries will join the European Union and when, and what are the next steps?

Will Europe ever get its defense act together?

European leaders are waking up to the imperative of ensuring the continent's defense in a changed geopolitical environment. But they face complex trade-offs in terms of how to manage the corresponding transition and build the institutions needed for efficient defense procurement, threat assessment, and strategic planning.

Making the EU friendlier to high-growth businesses

Since the 2024 publication of reports by senior statesmen Enrico Letta and Mario Draghi, the European Union has been debating how to improve its competitiveness and foster more high-growth companies. Together with France's Christian Noyer, former German Federal Finance Minister Jörg Kukies has led an in-depth investigation of policy options to that effect. This session discusses their findings and recommendations.

The "Brussels effect" in a fragmenting world

In 2012, Anu Bradford coined the expression "Brussels effect," echoing earlier intra-US references to a similar "California effect"—namely that the global significance of the European market allowed the European Union to shape market regulations worldwide. Is this concept still relevant in a world that appears to have entered a phase of fragmentation?