The ambition to achieve the Paris Agreement goals has led to the realization that a rapid and full decarbonization of the economy is required, involving a structural transition of the current economy and society. With the rise of quantified policy targets, policy packages, and consideration of multiple dimensions and sectors, Integrated Assessment Models with their ability to consider complex relationships and provide calibrated numerical results have become ever more important in the last decade. The PRISMA project aims to bring these models to the next level by focusing on four key areas of improvement, namely the representation of distributional justice and efficiency, innovation and finance, climate impacts and land-use implications, and lifestyle change and circularity. In these four key areas we will improve existing large-scale IAMs and sectorial models, and consider the linking of different models where applicable. Two cross-cutting shared themes across these areas are the improvement of the temporal and spatial resolution of the analysis, and the representation of disruptive and structural change in the economy. Notably we will increase the spatial granularity with a focus on Europe, and look at the yearly and in particular near term detailed modeling of rapid decarbonization pathways. The extensive model development will be co-designed through an interactive stakeholder engagement process from the beginning, and focus on model openness and usability to ensure the stakeholder and policy relevance. Moreover, PRISMA will focus in its application on the analysis of the spectrum of Fit for 55 package policies of the EU developing focalized robust and resilient Net zero pathways and assess the uncertainty around key variables and outcomes. PRISMA will also provide key insights to international climate assessments, a large number of open modelling tools and databases, including capacity building and dissemination activities for all countries.

The UK’s decision to leave the EU sent shock-waves through an EU that had gone through an unprecedented process of integration extending for seven decades. Brexit came at a propitious moment for a Union that was still reeling from the effects of the Euro-crisis, the refugee crisis and other challenges, which had exposed the EU’s vulnerabilities, and served as a reminder that member states may not continue on the same integrationist track. It is widely recognised that the EU that emerged from the crises is more differentiated, but it is not clear if differentiation is part of the problem or part of the solution. All political systems are differentiated, but the EU is distinct in the way it is structured, and in the way in which the process of integration is structured and conducted. The EU’s White Paper contains proposals that variously recommend more and less differentiation. EU3D’s main objective is to develop and apply to the EU and beyond a theory of differentiation that specifies the conditions under which differentiation is politically acceptable, institutionally sustainable and democratically legitimate, and the conditions under which it is not, i.e. when conditions of dominance prevail. EU3D does that through comprehensive analyses of the multilevel EU’s institutional and constitutional make-up across a range of policy areas. To properly address this critical issue, EU3D has devised an innovative analytical approach and a framework of research that provides the necessary benchmarks and that moves research well beyond the state-of-the-art, both theoretically and empirically. Further, EU3D will have an impact on the debate on the future of Europe by a) systematically analysing a broad range of proposals; b) mobilising knowledge and competence of a broad and multidisciplinary network of scholars, practitioners, stake-holders and publics from across Europe; and c) providing policy and polity recommendations that have been tested against EU3D’s benchmarks.

Dealing with challenges associated to digital platforms is currently one of the top three priorities according to the European Commission’s Digital Single Market strategy. Platforms can create immense value for the economy, online commerce and drive up productivity. But, at the same time, they have been disruptive and source of regulatory controversy. By design, in the core of platforms’ business models there are algorithms which are based on machine learning principles and use personal data as input to match efficiently and at real time supply with demand. This project analyses the dynamic impact of digital platforms on markets and consumers and addresses challenges that are associated with their disruptive operation, using a novel and multi-level economic approach. At the same time, it also explores the impact of algorithmic design and automated systems in decision making, market competition and society. The research agenda is separated in 3 chapters. The first chapter deals with algorithmic competition and evaluates whether big data raise entry barriers and what the incentives of algorithmic systems to discriminate are. It also assesses policy measures to increase algorithmic transparency and accountability. The second chapter deals with the dynamic nature of digital platforms. A firm with significant market power today might not be in the position to conserve its market power tomorrow because of the entry of, or drastic innovation by competitors. The chapter develops a methodology that defines a robust measure of future potential competition. It also provides insights over the creation and expansion of digital platforms in EU and US and illustrates firms' equilibrium market strategies in fast growing markets. Chapter 3 deals with the impact of automation on employment. By estimating the impact of the introduction of robots in EU industries on labor, it identifies the associated labor displacement and productivity effects and the optimal policy response.

This consortium recognises the resurgence of China as a top tier great power is changing the world, and the EU needs to develop a long-term approach based on knowledge to engage strategically with the resurgent and increasingly assertive China as well as the global changes unleashed thereby, including the process of selective ‘de-coupling’ and persistent US-China tension. To assist this, this consortium will bring together some of the best researchers across seven countries to work in a synergetic way to build up a world class independent knowledge base on China in Europe. We will do so by engaging in critical scientific research, nurturing a generation of younger scholars and building up a collaborative network that endures. The key subjects we will address will cover all the key areas identified in the Horizon call, namely, society and culture, politics, economy and foreign policy. Furthermore, this consortium will prioritise impact and dissemination for the EU, the corporate world, the media and the wider public across Europe. The building up of independent knowledge on a resurgent China will enable the EU to better deal with it.