Europe’s electric vehicle conundrum

Europe’s electric vehicle conundrum

April 8, 2026 · 45 min

About this episode

The episode discusses Europe's transition to electric vehicles amidst energy shocks and the implications for the automotive sector and industrial policy.

In this episode of The Sound of Economics, host Rebecca Christie speaks about electric cars with Bruegel’s Ugnė Keliauskaitė, Antoine Mathieu Collin and Ben McWilliams. Europe is navigating its transition to green technology while facing energy shocks from the Iran war. How will the automotive sector adapt? Can the European Union make the most of its industrial and trade policy instruments to support industry with minimal protectionism? What do electric vehicle supply chains look like now? Who pays the costs to consumers and industry of making these changes, or funding the related government programmes? Bruegel’s clean tech tracker shows what manufacturing is happening in Europe and where the investment is coming from. How are these trends shaping the global auto trade, and what will be Europe’s best shot to secure jobs and growth? As the US and China ramp up industrial policy, the EU needs to stay competitive. Relevant research: Bruegel Dataset (2025) ' European Clean Tech Tracker '. García-Bercero, I., A. Mathieu Collin, B. McWilliams, N. Poitiers and S. Tagliapietra (2026) ‘ Made with Europe’ not ‘Made in Europe’ should guide EU industrial policy ’, First Glance, 10 February…

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