Forging the New EU Agenda: Progressive Inputs for European Economic Policy

Key policy insights for the emerging EU economic policy agenda

As 2025 unfolds, the stakes are high for the EU to step up and secure a strong and resilient economy, shaped by the new European Commission, another Trump presidency, and continued efforts to address critical economic and social priorities across Europe.

Our new analysis “Forging the new EU Agenda – Progressive Inputs for European Economic Policy” is inspired by the rich discussions we had at the Progressive Economic Policy Conference on 25-25 September 2024. It offers key policy insights for the emerging EU economic policy agenda. Furthermore, it lays out solutions to make the most out of the limited resources and opportunities for progressives in the new EU legislative term.

In six chapters, our analysis discusses the following priority areas: 1) the European Social Agenda and the EU’s finances; (2) industrial policy for the twin transition and territorial cohesion; and (3) trade policy and international partnerships.

Funding the EU’s future: a strong response is needed

In this concise analysis, we condense some of the distinctively progressive actions that must accompany EU initiatives throughout the ongoing legislature. Among these, one of the biggest challenges is how the EU and member states can ensure enough public and private investments to jump-start the EU economy in a changed global context. Massive investment needs are clear – once again emphasised in the Draghi report – though neither the European Commission nor member states seem to champion this effort.

The analysis highlights the need for a strong response when it comes to funding the EU’s future:

• EU-level financing must play a growing role if we want to reach the expanding list of common EU priorities. Therefore, a significant increase in the size of the next MFF (EU budget) is needed.
• The private sector will not be able to plug EU investment gaps in most sectors. Substantial amounts of public funding are required to trigger private investments. The Capital Markets Union can address financing challenges for specific segments of the economy like start-ups and scale-ups.
• An EU investment capacity should focus on funding EU public goods. It needs at least 1% of EU GDP in public funding per year to address current gaps in financing and to sustainably transform the EU single market.

Read the analysis here: Forging the New EU Agenda – Progressive Inputs for European Economic Policy by Cédric Koch, David Rinaldi, Anna Kolesnichenko, Marie Hasdenteufel, Gerard Oosterwijk, Daniela Iller, Dominika Biegon, Justin Nogarede, Franziska Korn, Nora Rohde and Milena Horn.