Geoeconomics – New Challenges for Europe

Geopolitics in Europe long used to be a non-economic affair. Now, unhealthy dependencies for energy supplies and other key inputs for Europe’s economy on political decisions of other states, in addition to the looming climate crisis and sustainability concerns, have added a massive economic dimension to it—and making the geographic component of economics a key consideration for politics. What happens above and below ground, as well as across borders far and wide, will have a major impact on the European economies for decades to come.
So… Welcome to Geoeconomics.

The recent shocks of the covid pandemic and the Russian invasion of Ukraine have forced Europe out of its cocooned naïveté and into a major rethink of its economic model and its political assumptions. The spikes in energy prices and the rapid deployment of transformational technologies threatens some of Europe’s key industrial mainstays and is exerting increasing pressure on society, governments, and labour markets to adapt at a pace seldom seen before.

These challenges pose thorny questions: How can Europe’s economy remain competitive? How can energy security be balanced with decarbonisation? How can Europe secure the supply of resources and inputs needed for its industry and the digital and green transformation? How to deal with China, which is a geopolitical rival, a competitor for resources and a partner in business? How to improve economic resilience, avoid dangerous dependencies, and safeguard competitiveness, technological leadership, and rules-based trade?

The 2023 Annual EconPol Europe Conference addressed these and many other challenges, drawing lessons from the responses to the recent and ongoing crises, and examining the implications for fiscal and economic policy with a top lineup of EU officials and cutting-edge researchers.