How are EU institutions handling the Covid challenge and what are the prospects for EU recovery? With Draghi trying to form a new government in Italy, upcoming elections in Germany to decide who replaces Merkel, and a difficult vaccine rollout a potential source of euroscepticism, it's safe to say that 2021 has change in store for European politics.

It’s been just 3 months since our last spotlight on Europe episode, but in that time a lot has changed. This week on Macro Matters, our hosts Stephanie Kelly and Paul Diggle return our attention back to Europe and bring us up to speed on the recent economic and political developments impacting the EU.

Part 1 focuses on Europe’s handling of the covid crisis, covering vaccine roll out, fiscal policy and the role of the European Central Bank.

Part 2 covers both Germany and Italy, discussing the implications of Germany’s next chancellor and the task ahead for the Draghi government.