In this episode of the Sound of Economics, host Rebecca Christie speaks with Bruegel’s Ben McWilliams and Ilaria Mazzocco about the triple challenge facing European Union automakers. Electric and autonomous vehicles require a big shift in the EU’s mindset towards cars. As diesel and other fuel prices soar, car buyers are looking for affordable transportation. On top of that, Europe must decide how to support its own industries as Chinese competition surges. What would be the best ways to preserve European jobs and expertise within the global supply chain? What is possible, given political realities? How can the EU bridge the disconnect between its desire for a strong manufacturing sector and its society’s need for affordable and accessible electric and hybrid cars?
Related research:
Bjerkan-Wade, B., I. García Bercero, A. Mathieu Collin, B. McWilliams and S. Tagliapietra (2026) 'The European Union’s automotive sector needs a plan, not undue protection', Policy Brief 19/2026, Bruegel
Cai, R. and Mazzocco, I. (2026) 'The New Carbon Order: China’s Response to Europe’s CBAM', Report, CSIS
U.S.-China Relations and the Future of America’s Energy and Automotive Sectors, Event recording, CSIS
Mazzocco, I. (2025) 'Will the United States Push Europe Toward China?', Commentary, CSIS