European Union Economy Research Articles

Energy Transition and European Sub-Models. Restructuring EU Economy

Abstract The European Union (EU) stands at the forefront of the global energy transition, committed to transforming its economy by adopting sustainable energy sources. This paper explores the diverse European sub-models of energy transition, highlighting different patterns among the EU Member States within the context of their particularities. Using the hierarchical cluster methodology and the panel data model with fixed effects for the period 2010-2021, we analyze the broader implications of the energy transition for the restructuring of the EU economy, with a focus on key sectors such as power generation, manufacturing, and social aspects. The study identifies significant challenges, including the need for substantial investment and technological innovation, as well as economic competitiveness, and social consequences. Additionally, the paper illustrates the complex interplay between climate objectives and economic restructuring within the EU, offering insights into the potential of the energy transition to not only mitigate climate change but also to drive socio-economic development and resilience.

An Empirical Analysis of the European Union's Economy and Politics in the Context of the War in Ukraine

Abstract Crises will always change society. Since 2020, since the outbreak of the COVID-19 pandemic, the world economy has had many trials to overcome. Likewise, the values of states or state alliances prioritizing their citizens' medical, social, and economic well-being have also been tested. The European Union was severely affected by the COVID-19 pandemic, but two years after its appearance, another critical event would accentuate the existing problems and put it in great difficulty. This critical event is the war started by Russia against Ukraine in February 2022. Given the desire Ukraine expressed since 2014 through the EUROMAIDAN movement, the EU could not remain indifferent to what was happening there, and from the very first moments of the war, it showed its support for economic, military, and diplomatic relations towards Ukraine. Thus, the second economic power of the world had to put the decent living and well-being of its citizens to the test in order to save its people. However, it is crucial how much the standard of living of the Europeans suffered compared to the citizens of the states that also contributed to helping Ukraine. Through a difference-in-difference analysis (DID), this article aims to observe how large the discrepancy was between the sacrifice made by Europeans compared to the sacrifice made by other people regarding the values of the consumer price index and consumer confidence index. One thing is sure: regardless of cost, people's freedom, peace, and life are priceless.

The EU Logistics Sector

Logistics and efficient transportation are crucial for the European Union economy. For economies to thrive and remain competitive, logistics and transportation networks must operate in an organized, economical and ecological manner. They facilitate the movement of goods within and outside the EU, giving businesses access to bigger markets and a wider range of consumer items. As a result, there were more prospects for employment and greater success in trade and the economy. An outline of the fundamental trends in the European logistics industry is given in this study. We anticipate the current study will add to our knowledge of the EU logistics industry.

Digitalization as an instrument in support of covering the circularity gap in the European Union economy

Digitalization as an instrument in support of covering the circularity gap in the European Union economy

The relationship between toxic air pollution, health expenditure, and economic growth in the European Union: fresh evidence from the PMG-ARDL model.

Air pollution is a danger to economies throughout the European Union. Industry, population expansion, a building boom owing to housing and infrastructure development, increasing vehicle traffic, crowded streets, a lack of availability of clean fuel, and ineffective control programs are the primary causes. Toxic air is a double-edged sword for a country's health since it affects just a tiny fraction of Europe's population. The financial burden and healthcare expenses for people rise when health expenditures rise. The present research looks at how dangerous air levels, healthcare costs, and the expansion of the European Union's economy are all connected. The findings are based on data collected over 29years and account for the abovementioned variables. The results of the unit root test have the significant probability values of all variables: health expenditures (HE), gross domestic product (GDP), nitrous oxides (NOX), and carbon dioxides (CO2) emissions at both level and first difference. We used the Johansen, Kao, and Pedroni cointegration tests to test the null hypothesis of no cointegration to see that sample variables had a long-term association. The PMG-ARDL test was used to get these findings. The results confirmed the significant probability values of dependent variables in long- and short-run results that GDP has a positive and significant effect on health expenditure, while NOX and CO2 emissions have a negative and significant impact on (HE), in the European Union. To verify the results, we applied the robustness test, fully modified OLS (FMOLD), and dynamic OLS (DOLS); the robustness test results validated the PMG-ARDL test results. Environmental pollution (CO2, NOX) has a significant and negative impact on healthcare expenditures and a significant effect on GDP (HE) in the EU region. The findings of this research have implications for a wide range of parties, including those who would examine the link between factors in a study meant to improve air quality, distribute health resources, or develop strategies for economic development.

ВПЛИВ ОКРЕМИХ ФАКТОРІВ НА ЕНЕРГЕТИЧНІ РИНКИ КРАЇН ЄС

The influence of energy consumption is an outstanding criterion for economic development of any state. European countries are critically dependent on energy supplies because of a high deficit of energy carriers and an energy crisis. The energy dependence makes the energy market not so stable and rises its instability due to global challenges. This article states the subject of research as the description and trends energy factors’ dynamics and their relevance to the other factors of influence on the European economic development. The goal of the article is to analyze and measure significant factors influencing the markets of energy through the current economic development of European countries. We try to analyze the up-to-date situation with ordinary energy carriers consumption, to define the peculiarities of the influence of energy markets on macroeconomic indices. We also try to measure here the degree of influence of energy market indices on macroeconomic development. That might allow us to define the significant factors for analysis and to demonstrate the overall condition of energy markets in the economy. There are the following common scientific methods used: systematic, logical and descriptive; analysis and synthesis; statistical; economic-mathematical modelling, constructing the correlation-regression model. Basing on the analysis made, it was defined that the EU markets of energy have common feature of growing dependence, and that is why their dependence on external factors, which is associated with a significant fall in domestic production, as well as a weak differentiation of markets. The European production of the common energy resources shows a downward trend for all energy markets, that leads to the growing significance of imports. The impact of energy market factors on macroeconomic indices of European countries is defined. The correlation analysis made by us proves the strong influence of oil market on GDP growth rate in Europe. The outstanding energy dependence of European countries shows bigger correlation with external factors, however no direct correlation between energy dependence and economic development was found. The intensive dependence of Europe on energy resources import is a big problem, and the energy security factor is also of high importance for investors. Summarizing it, we declare that energy factors do not have a big impact on the development of EU GDP these days, but the proper use of energy resources is more important than their consumption. This underlines the importance of effective use of resources for the further development of the European Union economy.

Russia’s military conflict against Ukraine and its impact on the European Union’s wealth. Can good governance counteract the effects of the war?

Russia’s war against Ukraine, which originated in the midst of the COVID-19 pandemic, is undoubtedly one of the defining events of this current period, expected to exert a significant impact on the entire world’s economies. This study aims to determine whether the conflict between Russia and Ukraine has a significant impact on European Union (EU) Member States, particularly on the economic output of the EU countries, in the post-pandemic context. Difference-in-difference methodology alongside panel data econometric techniques are used to study the relationship between the effects of war, reflected in the deepening energy crisis, inflation, limited trade relations, restructuring of governmental expenditures, and the migrant crisis, together with economic freedom and governance quality as elements of neoliberal doctrine, and the economic wealth of EU Member States for the 1995–2021 period. In light of current research, the results prove that war has a significant impact on the economic output of the European Union structure, especially for the EU countries that rely the most on Russia’s energy imports. Using the difference in difference analysis, the impact of war on gdp_cap is evaluated as a drop in economic output of −405.08 euros per capita in the considered European countries. Applying panel regression analysis, defense and military expenditures, inflation, lack of trade openness, and increased levels of energy dependence negatively impact economic growth in the EU economies. In addition, this study provides essential information for public officials in order to prepare the EU economy for the recovery from war shocks in the forthcoming period, taking into account the study’s policy recommendations regarding energy reliance, restructuring public expenditure, prioritizing investment, and improving governance quality.

Polish and European Union economy in 2011–2019 and under the Covid pandemic: Application of macroeconomic condition index

AbstractA set of simple and complex indicators is used to measure the economic condition of economies, and the analysis can be conducted in a static or dynamic approach. This article proposes the author's macroeconomic condition index (MCI), which is based on the popular misery index, supplementing the unemployment and inflation rates with two variables: GDP growth rate and budget deficit. The aim of the study is to assess the macroeconomic situation of Poland against the average for the EU, using the above-mentioned measure. The time scope of the study covers the years 2011–2020, with particular emphasis on the effects of the first year of the Covid crisis. The results indicate that throughout the period the economic situation in Poland in terms of the four variables combined was relatively favourable, although less stable. A sharp downturn occurred in 2020, both domestically and on average in the EU. The main determinants of the worse condition were a decline in the GDP growth rate and an increase in the budget deficit, with relatively steady unemployment and inflation.

Unveiling the hidden economic toll of biological invasions in the European Union

BackgroundBiological invasions threaten the functioning of ecosystems, biodiversity, and human well-being by degrading ecosystem services and eliciting massive economic costs. The European Union has historically been a hub for cultural development and global trade, and thus, has extensive opportunities for the introduction and spread of alien species. While reported costs of biological invasions to some member states have been recently assessed, ongoing knowledge gaps in taxonomic and spatio-temporal data suggest that these costs were considerably underestimated.ResultsWe used the latest available cost data in InvaCost (v4.1)—the most comprehensive database on the costs of biological invasions—to assess the magnitude of this underestimation within the European Union via projections of current and future invasion costs. We used macroeconomic scaling and temporal modelling approaches to project available cost information over gaps in taxa, space, and time, thereby producing a more complete estimate for the European Union economy. We identified that only 259 out of 13,331 (~ 1%) known invasive alien species have reported costs in the European Union. Using a conservative subset of highly reliable, observed, country-level cost entries from 49 species (totalling US$4.7 billion; 2017 value), combined with the establishment data of alien species within European Union member states, we projected unreported cost data for all member states.ConclusionsOur corrected estimate of observed costs was potentially 501% higher (US$28.0 billion) than currently recorded. Using future projections of current estimates, we also identified a substantial increase in costs and costly species (US$148.2 billion) by 2040. We urge that cost reporting be improved to clarify the economic impacts of greatest concern, concomitant with coordinated international action to prevent and mitigate the impacts of invasive alien species in the European Union and globally.

Prerequisites and scenarios for the EU economy transformation inlight of Industry 4.0 development

The purpose of this study is to verify the condition of European Union economy and its ability to effectively implement the concept of sustainable development in the era of the fourth industrial revolution. To achieve the goal settled by this research, we used the technical indicator MACD (Moving Average Convergence / Divergence), based on the assessment of the convergence and divergence of moving averages of macroeconomic indicators. The studies carried out made it possible to identify three scenarios for the state of the EU economy after 2022. All these scenarios pose a high risk of a crisis phenomena in this economic system. According to the optimistic scenario, after 2022, a downward correctional wave is predicted in the EU-27 economy with the emergence of a situation similar to the situation in 2008. The search for a new economic model based on the active implementation of Industry 4.0 technologies can become a way for the EU economy to recover from the crisis and move to a qualitatively new level of socio-economic development.

Green growth for whom, how and why? The REPowerEU Plan and the inconsistencies of European Union energy policy

The REPowerEU plan redefines the European Union (EU) energy transition agenda in response to the Russia-Ukraine war. Formally, it aims to boost green growth, defend liberal democracy, and increase Europe's energy sovereignty. Yet, the new course of EU energy policy may be paradoxically yoking the continent into raw materials dependency and lock-in investments in fossil fuel infrastructures, while partnering with other warmonger and dictatorial states. I argue that even a much-needed switch to low-carbon energy sources is not immune from the calamitous consequences of an energy transition based on the growth imperative. Building on the System of Provision approach and integrating it with insights from ecological economics and political ecology, this paper asks how, for what purpose, and on whose terms is the remarkable expansion of solar photovoltaics outlined in the REPowerEU taking place. I find that the mass of raw materials required to meet solar energy targets will increase 3-fold by 2030. This could provide 4.4–6.7 % of EU energy while occupying 5.5–8 % of urbanised spaces. It will also strengthen the dependency on Chinese refining and manufacturing, besides intensifying mining and extractive activities around the globe. The findings in this paper show that the EU economy is not de-materialising, but rather harnessing discontent around rosy narratives like “green growth”. To conclude, I argue that a truly transformative energy policy requires questioning the material foundations of ecological modernisation approaches, abandoning the growth imperative, and reorganising energy systems around sufficiency and decentralised provisioning beyond, rather than within, global capitalism.

Bulgarian contribution to the economics of the European Union

Bulgaria, as one of the youngest members of the European Union (EU), has made significant contributions to the economic development of the Union. Since joining the European Union in 2007, Bulgaria has undergone a series of economic reforms and has shown impressive growth rates, which have had positive effects on the European Union's economy. The country's strategic location, low-cost labour force, and relatively low corporate tax rates have made it an attractive destination for foreign investors, leading to increased trade and investment flows between Bulgaria and other European Union member states. Bulgaria has also played an active role in the European Union's efforts to deepen economic integration and promote the digital single market. However, the country still faces challenges related to corruption, governance, and demographic trends that need to be addressed to ensure sustainable growth and to fully realize its potential in the European Union's economy.

The Role of FDI in the Sustainable Development of the European Union

This paper aims to examine the role of international business behavior in the sustainable development of the European Union (EU) and to answer two questions: (1) To what degree could international business contribute to the development of a “green economy” under the uncertainty caused by the COVID–19 pandemic?; (2) In what way could host countries attract “green” and socially responsible foreign direct investment (FDI)?
 The statistical analysis of international business involvement in environmentally harmful sectors/industries of the EU economy indicates that the share of such investments in most member states did not exceed 20% of the total FDI stocks between 2015 and 2020. The structure of investments changed in half of the analyzed countries towards sectors/industries that were less harmful to the environment. These changes and high requirements for domestic and foreign companies within the framework of the EU’s environmental policy allow us to conclude that international business contributed to the ecological transformation of the EU.
 On the other hand, changes in the structure of FDI stocks located abroad by the EU Member States in environmentally harmful sectors/industries were multidirectional. Six of the EU states remained net exporters of direct investment in these sectors/industries. The involvement of foreign direct investors in the new EU Member States in sectors that are important for implementing the Sustainable Development Goals (SDGs) of the 2030 Agenda was not very high. It was characterized by high volatility and did not play a significant role in their economies. Attracting “green FDI” and socially responsible investments requires changes in policy towards foreign investors. They should include facilitating foreign investment, including investments aimed at sustainable development, incentives for investors to engage in “green investments”, and making investment agreements more flexible to combat climate change.

Cost and regression analysis of preeclampsia from the perspective of the reimbursement agency

ObjectiveThe aim of this study is to determine the financial burden of preeclampsia (PE) from a single institution's perspective and then determine the cost of the illness from the reimbursement institution perspective and finally draw a regression model that predicts the annual cost of a patient. Materials and methodsThe research is a descriptive and cross-sectional type of research and a retrospective cost analysis. Patients diagnosed with PE in 2021 were included in the study. For the regression analysis of the study, a dataset with 29 parameters belonging to 65 patients was created. Regression models were built on top of it. ResultsIn our study, per-patient expenses of PE patients from the perspective of the reimbursement institution were calculated and presented as average costs; severe PE patient with cesarean section 7598.5 Ł ($769.8), severe PE patient with normal vaginal delivery 8487.48 Ł (1050.43 $), mild PE patient with cesarean section 5331.67 Ł ($659.86) and mild PE patient with normal vaginal delivery was calculated as 6220.65 Ł (769.88 $). In the study, different regression formulas were created for the two groups of PE. The created regression model had an R2 score of 91.85%. ConclusionThe actors involved in the management of the disease should determine the cost-effectiveness of the disease by using the financial data of the patients and choose the right approach. Health costs in Turkey differ from the parameters in the European Union economy. Therefore, there are lower health costs. The financial findings of the disease are a guide for health policy makers, health managers and researchers.

The impact of the Russia-Ukraine war on the European Union economy

This study aims to see the impact of the Russo-Ukrainian war on the European Union economy. It uses a qualitative descriptive method. This method answers research questions requiring an explanation and understanding of social activities due to the war. In this descriptive research, we evaluate aimed to evaluate the impact of the Russo-Ukrainian War on the European Union Economy. The results of this study indicate that the European Union's economy was greatly affected by this war, starting from the disruption of trade relations between Russia and the European Union in all fields, especially in the energy sector, to the creation of high inflation rates in developing countries. With this, of course, the economy and stability in the European Union will be interrupted and causing an economic crisis in many European countries.

ВПЛИВ РОСІЙСЬКОЇ АГРЕСІЇ В УКРАЇНІ НА ЕКОНОМІЧНУ ТА ЕНЕРГЕТИЧНУ БЕЗПЕКУ ЄВРОПЕЙСЬКОГО СОЮЗУ

The article examines the influence of Russian aggression in Ukraine on February 24, 2022, on the economic and energy security of the European Union (EU). Security issues are critical to the EU because it ensures the sustainability and competitiveness of the European economy, contributing to the growth of the wellbeing and development of EU Member States. The study of the impact on economic and energy safety is performed in several directions, which cover: 1) migration crisis; 2) inflation, including energy; 3) dynamics of changes in gross domestic product in the context of economic development; 4) structural transformations of the EU energy sector. The work defines the essence of economic and energy security and analyzes the consequences of Russian aggression in Ukraine and the rate of economic growth of the EU based on the dynamics of key macroeconomic indicators. The prospects for EU economic and energy security have been determined. During the study, methods such as analysis and synthesis, logical generalization, and a comprehensive approach were used. In evaluating the consequences of the invasion of Ukraine into the economy and the EU energy sector and the study of the main macroeconomic indicators used statistical, comparative, systemic, and structural analysis. The results of the study show that the EU has suffered from a full-scale invasion of the Russian Federation into Ukraine due to the introduction of economic sanctions and reducing energy supplies. The shocks caused by Russian aggression in Ukraine impress the EU economy both directly and indirectly, directing it to the path of lower growth and high inflation, as well as exacerbating the migration crisis in the EU. The article states that the EU should diversify its energy sources and strengthen its energy security, reducing the dependence on Russian energy. To strengthen EU economic security, the economy and trade partners should be diversified, by concluding new trade agreements. EU economic forecast from the European Commission for 2023 has been analyzed and it is justified that the threat of new economic upheavals for the EU still exists as the active phase of the Russian-Ukrainian war is ongoing.

Prospects for the Implementation of Underground Hydrogen Storage in the EU

The hydrogen economy is one of the possible directions of development for the European Union economy, which in the perspective of 2050, can ensure climate neutrality for the member states. The use of hydrogen in the economy on a larger scale requires the creation of a storage system. Due to the necessary volumes, the best sites for storage are geological structures (salt caverns, oil and gas deposits or aquifers). This article presents an analysis of prospects for large-scale underground hydrogen storage in geological structures. The political conditions for the implementation of the hydrogen economy in the EU Member States were analysed. The European Commission in its documents (e.g., Green Deal) indicates hydrogen as one of the important elements enabling the implementation of a climate-neutral economy. From the perspective of 2050, the analysis of changes and the forecast of energy consumption in the EU indicate an increase in electricity consumption. The expected increase in the production of energy from renewable sources may contribute to an increase in the production of hydrogen and its role in the economy. From the perspective of 2050, discussed gas should replace natural gas in the chemical, metallurgical and transport industries. In the longer term, the same process will also be observed in the aviation and maritime sectors. Growing charges for CO2 emissions will also contribute to the development of underground hydrogen storage technology. Geological conditions, especially wide-spread aquifers and salt deposits allow the development of underground hydrogen storage in Europe.

REPERCUSSIONS ECONOMIQUES DE LA CRISE COVID-19 ET POLITIQUES DE RELANCE DE L’ECONOMIE MAROCAINE

The Coronavirus (Covid-19) crisis has caused considerable effects on the world economy: destabilization of economies, deterioration of the structure of world finance, unemployment and fragility of entire regions, disruption of logistical chains, virtual stoppage of activities and travel, etc. In fact, States are called upon to be vigilant but also flexible in order to put in place adequate policies to adapt to this new unstable context and relaunch economic activity. In Morocco, an exponential increase in the unemployment rate has already been recorded following the unexpected partial, and sometimes total, stoppage of economic activities. However, the main sectors affected are tourism, textiles and automobiles. Being also strongly dependent on the European Union economy, the economic activity of our country has been impacted by the downturn in European growth. Therefore, through this paper, we try to analyze and decipher the economic impacts of this health crisis in order to see what different policies can be envisaged in order to minimize the repercussions of this pandemic, first of all, and then to revive our economic fabric and preserve economic and social stability.

KIBS Role in the Innovation and Internationalization Processes of Firms: a Bibliometric Overview

In recent decades, KIBS have been one of the most dynamic segments of the service sector in European countries and are one of the fastest growing sectors of the European Union economy. KIBS are firms that provide knowledge-intensive inputs to the business processes of other organizations.
 In the regional and national economy, KIBS have played a central role in innovation as carriers, producers and mediators of knowledge. Consequently, this knowledge has a critical impact on the internationalization of firms. New sources of information and knowledge help firms compete and grow in markets of which they possess little or no prior knowledge. Firms face difficulties in foreign markets, so they need to develop a strong knowledge base to successfully compete across borders. The intensity of knowledge and the diversity of knowledge sources positively impact both the internationalization of firms and their innovation. Knowledge-intensive firms represent a link between their customers and the knowledge base available across the economy, and therefore act as a catalyst for innovation and internationalization.
 Recognizing the important role played by KIBS and to provide as overall picture of the research field, a bibliometric approach was performed, based on a mapping of scientific publications, intellectual structure and research trends related to the area under study, highlighting the current approaches of reference on the subject of innovation, internationalization and knowledge. In light of this consideration, the main objective of this study is to identify some of the most relevant research in this field and some of the newest trends, according to the information found in the Web of Science database, thus contributing to the enrichment of the existing literature. The specific objectives of this study are as follows: (1) to identify how the concepts of KIBS, innovation and internationalization are defined in the literature and assess the evolution achieved in the field of research; (2) to identify and measure research productivity, the trend of collaboration between countries, and the main and most relevant journals and authors; and (3) to analyze and map co-citations and research topics to identify the intellectual structure of the literature.

Business roadmap for the European Union in the NewSpace ecosystem: a case study for access to space

A business roadmap is a high-level strategic management tool that maps the actions to develop new industries. It serves as a guide to plan and forecast technological, market and product developments in a more operational way. Precisely, the business roadmap of this article highlights the main actions to be taken by the European Union (EU) space ecosystem with regards to Low Earth Orbit (LEO)—orbits from 450 to 2000 km—and Very Low Earth Orbit (VLEO)—orbits from 150 to 450 km. On the one hand, it is necessary to (1) develop industrial and technological space capabilities, (2) continue investing public funds in European Programs to develop new vehicle concepts of access to space, (3) improve testing, demonstration and exploration for faster the Technology Readiness Level (TRL) development, (4) promote an entrepreneurial and risk-taking culture, and (5) leverage the private investment to boost the development of advanced access to space technologies, attract talent, promote collaboration between public and private companies, and finance NewSpace Small–Medium sized Enterprises (SMEs). On the other hand, it should also strengthen its relationship with the European Space Agency (ESA) to foster its space capabilities and become a competitive player in the access to space market in the medium term (5–10 years). The implementation of these actions will help the EU to improve its international positioning, and adapt the technology to the needs and requirements of NewSpace demand, mobilizing around €40,500 million euros for the EU economy during the first 10–15 years of operations with an average Leverage Factor (LF) of 4.