The new geopolitics and the reinterpretation of economic interdependencies: what role for European policies?

Abstract

Over the last decade, the growing relevance of various geopolitical factors in economic decisions is introducing tensions into the current framework of multilateral international relations. Most recently, the invasion of Ukraine has starkly revealed how the European Union's (EU) high economic and financial interconnectedness with the rest of the world can entail vulnerabilities. This article analyses these interdependencies, and discusses the role that economic policies can play in mitigating the vulnerabilities arising from them.

Keywords:

globalisation, geopolitics, multilateralism, international trade, value chains, capital flows, industrial policy, European integration

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