Latest news with #CEPS
Euractiv
31-07-2025
- Business
- Euractiv
Europe dodged a trade war, but its electricity market is broken
Apostolos Thomadakis is Research Fellow and Head of the Financial Markets and Institutions Unit at the Centre for European Policy Studies (CEPS), and Head of Research at the European Capital Markets Institute (ECMI). This week's EU-US tariff deal has been spun as a diplomatic success. But beneath the surface, the outcome is sobering. Washington keeps its 15% tariffs on key European exports while Europe pledges closer trade and investment ties with a country whose industrial strategy is increasingly dictated between rounds of golf. The real question isn't whether Europe avoided a trade war – it's whether it gave away too much, and whether the trade-offs made are consistent with any serious long-term competitiveness strategy. Because accepting structural tariffs while simultaneously rolling back parts of the EU Green Deal is not strategic patience. It's strategic incoherence. And nowhere is this contradiction more evident than in Europe's electricity market, the very foundation of its green transition. Despite years of reform talk, the core design of Europe's power market remains dangerously outdated. Wholesale electricity prices are still dictated by the marginal cost of gas-fired plants. This means that even when wind and solar provide the majority of supply, consumers still pay prices shaped by the most expensive generator on the grid. In 2022, when gas prices exploded following Russia's invasion of Ukraine, this mechanism pushed power prices to record highs, forcing entire industries to shut down and households into energy poverty. This is not just a bug. It's a feature of a market architecture that was never built to deliver resilience – only efficiency under stable conditions that no longer exist. Today, Europe is in the paradoxical position of producing record amounts of clean energy while remaining shackled to fossil fuel price volatility. Every time gas prices jump, electricity follows; jeopardising the electrification of transport, heating and industry that lies at the heart of the Green Deal. Yes, reform is on the table. But it remains incremental, buried in consultations and bogged down in jargon. The fundamental truth remains: Europe's electricity market cannot enable a 21st-century transition while operating on 20th-century principles. This isn't just an energy story. It's a powerful and direct parallel to the core flaw in the financial system. In finance, just as in the energy market, long-term sustainable investment is constantly held hostage by the logic of short-term, speculative gains. In both cases, the solution is architectural. We need to redesign the 'software' of these markets to correctly price risk and reward long-term resilience. In other words, ensure the 'price' of capital is no longer dictated by the most destructive parts of the system. The same principle must now be applied to energy. Europe needs to decouple electricity prices from gas, expand the use of long-term contracts (like power purchase agreements and contracts for difference), and build out the grid infrastructure that allows low-cost renewable power to flow across borders. Countries like Spain have shown it's possible – their use of long-term contracts and domestic renewables helped buffer them from the 2022 crisis far more effectively than markets like France or Germany, where the link between gas and power prices remains entrenched. Meanwhile, the US (once Europe's green partner) is backtracking. Critical clean energy support under the Inflation Reduction Act is under pressure, with projects stranded and investment pipelines drying up. Yet this moment presents Europe with a rare opportunity: to attract viable US projects with targeted relocation incentives and industrial policy tools it already possesses. If done strategically, this could reinforce Europe's leadership in clean technology while accelerating its energy independence. What Europe doesn't need is more high-risk, high-cost LNG from hurricane-prone regions with gutted climate science and forecasting capacity. Studies already show the EU is well on track to meet its energy needs through accelerated renewables deployment, not new fossil dependencies. Doubling down on fossil-based import dependencies is not resilience. It's regression. Ultimately, this is about power – both electrical and geopolitical. In a fractured world, fossil fuel geopolitics cannot be the foundation of future partnerships. Climate cooperation can. By aligning Europe's foreign, trade, investment, and innovation policies with its climate agenda, the EU can rebuild multilateralism around shared challenges – not extractive competition. The electricity market is just one piece of this puzzle. But it is a foundational one. Without a functioning pricing system that rewards resilience, Europe will continue to pay strategic premiums for tactical mistakes. Avoiding a trade war is not enough. Avoiding a self-inflicted energy crisis must now be the priority.
Yahoo
25-07-2025
- Business
- Yahoo
Pharma braces for critical French drug pricing reforms pending CEPS's report
Growing budgetary pressure is a central theme in France as the country prepares for the publication of the government's 2026 Social Security Finance Bill (PLFSS). French Prime Minister François Bayrou has requested the Economic Committee for Health Products (CEPS) to create a report, which will be published by the end of July 2025 and released in Q3 2025, outlining its drug pricing policy recommendations. These policy recommendations are likely to be defined by what Bayrou describes as 'changing geopolitical context' and 'investment dynamics' for the EU pharma sector. The environment has therefore triggered an opportunity to re-evaluate current price setting and regulation policies, with the potential for greater flexibility and higher prices due to changing business conditions. This principle is already starting to be put in place. From March 2025, the CEPS has been required to consider the manufacturing location of production sites when setting prices, known as the 'industrial criterion'. While this policy existed previously, it is now mandated, giving preferential pricing for domestically manufactured medicines. A price premium for local manufacturing will likely improve the generic sector, making it more financially viable. Historically, financial viability has been a definitive struggle for generic and biosimilar manufacturers in France. Based on a sample of off-patent, generic, and biosimilar prices, these medicines are typically priced between 38% to 68% lower in France, on average, when compared to the other top European markets. Using the available current prices from GlobalData's Price Intelligence (POLI) & HTA service, the figure below compares the average price per milligram per unit of pack (one tablet, for example) difference between off-patent, generic, and biosimilar medicines that are available in France and the other four major European markets. The sample from each drug type was generated by including products that have their strength measured in milligrams and are available in all five markets. Figure 1: Average price per strength unit (euros/unit/mg) comparison of prices in France to the other EU5 market Furthermore, the Generic Same Drug Association (GEMME) in France has pushed for biosimilars to be excluded from the 'safeguard clause' pricing policy. This measure limits public health spending on medicines by requiring pharmaceutical companies to contribute to health spending once the reimbursed expense exceeds a set threshold. There may be further positive news for generics and biosimilars as the government also considers lowering the discount ceiling for generics from 40% down to 20%–25% while setting a low ceiling for biosimilars. While the upcoming report from CEPS will likely have benefits for the generic/biosimilar sector, it is unclear what potential benefits will be brought to the innovative pharmaceutical sector. There are appeals to change the 'safeguard clause' and lower the cap, and there are possible modifications, but it is unlikely to be entirely overhauled. It is more likely that other cost-saving measures will be considered. For example, medicines with low clinical value ratings (Service Médical Rendu, SMR) could be delisted. Products that are reimbursed at the lowest tier (15%) would therefore no longer be reimbursed. Such measures would likely target non-essential and lifestyle medicines that receive this low SMR rating in their cost-effectiveness assessments. GlobalData's Price Intelligence (POLI) & HTA service shows that 77 molecules are currently 15% reimbursed and could therefore face a delisting challenge. These products see an average first price cut similar to that of products with a higher clinical rating. The average first price cut across different reimbursement tiers ranges between 6% and 7% for the different clinical ratings. Therefore, products with a low clinical rating see a similar impact on price after launch compared to those with a higher rating, despite being more likely to have competition with alternative treatments on the market. Figure 2: Average first price cut (%) of products based on reimbursement level granted Additionally, France's National Health Insurance Agency (Caisse Nationale d'Assurance Maladie, CNAM) has set out proposals to save on pharmaceutical spending. In its annual report, CNAM suggested that medicines with an improvement in actual benefit (Amélioration du Service Médical Rendu, ASMR) that are rated 'absent/no improvement' (ASMR V) or 'minor' (ASMR IV) should be subject to a discount compared to the net price of the cheapest available comparator. The figure below shows the proportion of brands in France by ASMR ratings granted. More than 70% of brands, accounting for the majority of the medicines reimbursed in France, have been granted these ratings of ASMR IV or V and would therefore be impacted. Figure 3: Distribution of medicines in France by ASMR rating Throughout 2025, CEPS has been coordinating many policy initiatives that will determine and influence the government's approach to pharmaceutical spending in 2026. As such, the French Government has requested that the CEPS publish a report later in July 2025 to outline its policy recommendations. While this appears to be a quick turnaround for CEPS, the ongoing initial proposals have given a sneak peek into what this report may feature. The generic and biosimilar sectors are likely to benefit from upcoming reforms. Potential amendments could include changes to the limit discount ceiling and possible exclusion from the 'safeguard policy'. It is unclear what this report may consider for the innovative sector; however, certain medicines could be delisted based on reimbursement levels, and further discounts could be granted on net prices for products with ASMR IV and V ratings. This report will encompass the progress made for recent and upcoming policy actions, while also giving insight into significant spending constraints for innovative medicines expected for 2026. This article is produced as part of GlobalData's Price Intelligence (POLI) service, the world's leading resource for global pharmaceutical pricing, HTA and market access intelligence integrated with the broader epidemiology, disease, clinical trials and manufacturing expertise of GlobalData's Pharmaceutical Intelligence Center. Our unparalleled team of in-house experts monitors P&R policy developments, outcomes and data analytics around the world every day to give our clients the edge by providing critical early warning signals and insights. For a demo or further information, please contact us here. "Pharma braces for critical French drug pricing reforms pending CEPS's report" was originally created and published by Pharmaceutical Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Korea Herald
15-07-2025
- Automotive
- Korea Herald
Nexteer Breaks Ground on New Manufacturing Facility in Liuzhou, China
Capacity Expansion, Supply Chain Co-location & Smart Manufacturing Fuel APAC Growth Strategy AUBURN HILLS, Mich. and LIUZHOU, China, July 15, 2025 /PRNewswire/ -- Nexteer Automotive held a groundbreaking ceremony today for its new smart manufacturing facility in Liuzhou, China. This expansion marks a key milestone in Nexteer's strategic growth – reinforcing its leadership in the APAC steering market and supporting growing demand from both domestic and global OEMs. With continued growth in APAC business volume and product scope, Nexteer is investing in enhanced capacity and innovative supply chain integration. The new facility is designed to increase in-house production of key components while fostering deeper collaboration across Nexteer's supply chain. The development also includes a dedicated co-location for core suppliers, enabling real-time innovation, enhanced agility and optimized cost efficiencies through a tightly integrated ecosystem. The new Liuzhou facility enables Nexteer to meet rising demand for advanced steering and motion control technologies including Column-Assist Electric Power Steering (CEPS) systems and Modular Power Packs that enhance safety, serviceability, packaging and integration for intelligent vehicle platforms. The project is a relocation and new construction initiative. Once completed, Nexteer's current Liuzhou facility will move in its entirety to the new site. The new plant will span more than 40,000 square meters and include advanced laboratories, test tracks, and an employee center. The facility is expected to be fully operational in H1, 2026. "Nexteer's Liuzhou subsidiary has been established for ten years and has cumulatively produced over 10 million steering systems," said Jun Li, "Nexteer's Global Vice President and APAC Division President. "This new expansion represents a strategic step to scale capacity and meet growing demand for our steering solutions across China and the broader APAC region. Our innovative Motion-by-Wire™ portfolio enhances safety, performance, control, personalized customization and seamless vehicle integration. By investing in smart, sustainable, high-quality manufacturing, we can better anticipate and meet the evolving needs of our customers and support the future of intelligent mobility." Designed with smart and green manufacturing principles, the facility will feature energy-efficient infrastructure and advanced automation. These elements align with local priorities for sustainable industrial development and reinforce Nexteer's commitment to responsible innovation. Nexteer's new Liuzhou facility will continue to work in collaboration with its APAC Technical Center in Suzhou, China and play a critical role in Nexteer's global manufacturing footprint across all major markets. "Nexteer remains well positioned in China's highly dynamic and competitive market by thinking globally and acting locally," said Robin Milavec, President, Chief Technology Officer, Chief Strategy Officer and Executive Board Director of Nexteer Automotive. "We understand the nuances of a fast-moving APAC environment while maintaining safety-critical quality and expertise in requirement standards across global OEMs and markets. This approach has secured Nexteer's leadership among China's top automotive OEMs and supports our vision to accelerate mobility to be safe, green and exciting." ABOUT NEXTEER AUTOMOTIVE Nexteer Automotive (HK 1316) is a global leading motion control technology company accelerating mobility to be safe, green and exciting. Our innovative portfolio supports "motion-by-wire" chassis control, including electric and hydraulic power steering systems, steer-by-wire and rear-wheel steering systems, steering columns and intermediate shafts, driveline systems, software solutions and brake-by-wire. The company solves motion control challenges across all megatrends – including electrification, software/connectivity, ADAS/automated driving and shared mobility – for global and domestic OEMs around the world including BMW, Ford, GM, RNM, Stellantis, Toyota and VW, as well as automakers in India and China including BYD, Xiaomi, ChangAn, Li Auto, Chery, Great Wall, Geely, Xpeng and others.
The Wire
15-07-2025
- Automotive
- The Wire
Nexteer Breaks Ground on New Manufacturing Facility in Liuzhou, China
Capacity Expansion, Supply Chain Co-location & Smart Manufacturing Fuel APAC Growth Strategy AUBURN HILLS, Mich. and LIUZHOU, China, July 15, 2025 /PRNewswire/ -- Nexteer Automotive held a groundbreaking ceremony today for its new smart manufacturing facility in Liuzhou, China. This expansion marks a key milestone in Nexteer's strategic growth – reinforcing its leadership in the APAC steering market and supporting growing demand from both domestic and global OEMs. With continued growth in APAC business volume and product scope, Nexteer is investing in enhanced capacity and innovative supply chain integration. The new facility is designed to increase in-house production of key components while fostering deeper collaboration across Nexteer's supply chain. The development also includes a dedicated co-location for core suppliers, enabling real-time innovation, enhanced agility and optimized cost efficiencies through a tightly integrated ecosystem. The new Liuzhou facility enables Nexteer to meet rising demand for advanced steering and motion control technologies including Column-Assist Electric Power Steering (CEPS) systems and Modular Power Packs that enhance safety, serviceability, packaging and integration for intelligent vehicle platforms. The project is a relocation and new construction initiative. Once completed, Nexteer's current Liuzhou facility will move in its entirety to the new site. The new plant will span more than 40,000 square meters and include advanced laboratories, test tracks, and an employee center. The facility is expected to be fully operational in H1, 2026. "Nexteer's Liuzhou subsidiary has been established for ten years and has cumulatively produced over 10 million steering systems," said Jun Li, "Nexteer's Global Vice President and APAC Division President. "This new expansion represents a strategic step to scale capacity and meet growing demand for our steering solutions across China and the broader APAC region. Our innovative Motion-by-Wire™ portfolio enhances safety, performance, control, personalized customization and seamless vehicle integration. By investing in smart, sustainable, high-quality manufacturing, we can better anticipate and meet the evolving needs of our customers and support the future of intelligent mobility." Designed with smart and green manufacturing principles, the facility will feature energy-efficient infrastructure and advanced automation. These elements align with local priorities for sustainable industrial development and reinforce Nexteer's commitment to responsible innovation. Nexteer's new Liuzhou facility will continue to work in collaboration with its APAC Technical Center in Suzhou, China and play a critical role in Nexteer's global manufacturing footprint across all major markets. "Nexteer remains well positioned in China's highly dynamic and competitive market by thinking globally and acting locally," said Robin Milavec, President, Chief Technology Officer, Chief Strategy Officer and Executive Board Director of Nexteer Automotive. "We understand the nuances of a fast-moving APAC environment while maintaining safety-critical quality and expertise in requirement standards across global OEMs and markets. This approach has secured Nexteer's leadership among China's top automotive OEMs and supports our vision to accelerate mobility to be safe, green and exciting." ABOUT NEXTEER AUTOMOTIVE Nexteer Automotive (HK 1316) is a global leading motion control technology company accelerating mobility to be safe, green and exciting. Our innovative portfolio supports "motion-by-wire" chassis control, including electric and hydraulic power steering systems, steer-by-wire and rear-wheel steering systems, steering columns and intermediate shafts, driveline systems, software solutions and brake-by-wire. The company solves motion control challenges across all megatrends – including electrification, software/connectivity, ADAS/automated driving and shared mobility – for global and domestic OEMs around the world including BMW, Ford, GM, RNM, Stellantis, Toyota and VW, as well as automakers in India and China including BYD, Xiaomi, ChangAn, Li Auto, Chery, Great Wall, Geely, Xpeng and others. Link to Nexteer Media Center Link to Release Press Kit Logo - (Disclaimer: The above press release comes to you under an arrangement with PRNewswire and PTI takes no editorial responsibility for the same.).
Yahoo
11-07-2025
- Automotive
- Yahoo
Europe faces ‘critical turning point' in EV shift: report
A new report from the Centre for European Policy Studies (CEPS), supported by the European Automobile Manufacturers' Association (ACEA), has raised alarm over persistent barriers slowing Europe's electric vehicle (EV) transition, highlighting high production costs, supply chain fragility, and inadequate charging infrastructure as key concerns. The report, shaped by expert researchers and stakeholders, warns that the shift to EVs 'requires a significant transformation of existing supply and value chains,' which will have deep repercussions on jobs, investment flows, and the EU's global competitiveness. Europe stands at a 'critical turning point,' the authors argue, with consumer adoption still held back by 'insufficient charging infrastructure, high total cost of ownership, and limited consumer confidence', factors that are contributing to an ageing vehicle fleet across the continent. The report paints a stark picture of the cost gap between supply and demand. CEPS analysts found that average battery-electric vehicle (BEV) prices would need to hover around €45,000 to sustain current manufacturer pricing structures, yet average consumer willingness to pay is 'only €20,000.' That disconnect is compounded by the risk to European value-added content in vehicle manufacturing. Whereas internal combustion engine vehicles (ICEVs) typically retain 85–90% EU value-added content, this drops to just 70–75% for BEVs due to shifts in production processes and globalised supply chains. 'This transition,' the report notes, 'will also impact the types of labour and skills needed in the industry,' raising further concerns over potential job losses in ICEV-related manufacturing, even as new EV jobs emerge. Retraining and upskilling are seen as essential. On the infrastructure front, the investment needs are striking. The EU will require an estimated €172 billion by 2030 to build out charging networks—but slow permitting and grid connection processes remain major bottlenecks. Similarly, battery production, where Europe remains heavily reliant on China, demands around €42 billion in annual investment to build a competitive domestic supply chain, the report adds. Without urgent action, CEPS warns, the EU risks falling behind in a global race for EV leadership. 'Establishing a sufficient supply chain and achieving manufacturing scale will be key,' the report concludes. "Europe faces 'critical turning point' in EV shift: report" was originally created and published by Motor Finance Online, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
