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Europe must act quickly to ensure its economic security in the face of current threats. The European Commission has proposed defensive measures, but debates persist about the best approach. How can Europe effectively coordinate its actions to guarantee its economic security, and what role does international cooperation play in this strategy?
At a time when the major powers are adopting the language of economic security, this note identifies five major strategic issues that deserve to be placed at the heart of the debate.
Making European Economic Security a Reality
European competitiveness is under threat. Demographic and digital trends are transforming European societies and economies. Inflation is high and politics are more fractured. The US-China tech rivalry is intensifying and companies are feeling the squeeze. European governments, like countries around the world, are under intense pressure to safeguard their interests. Many are turning to law to achieve this.
China Trends #16 by Institut Montaigne.
Cross-border data flows govern almost everything we do today. States are facing a dilemma between protection of their data and benefits from free-flow. Europe faces a challenge from the US, the dominating actor in the digital world, and a threat from China’s authoritarian model. Europe must make choices to strengthen its position in the digital field.
Economic security is an important notion that provides strategic coherence and clarity to the set of defensive, pro-innovation and (so far timid) pro-industry steps that the EU has been taking. It could also provide a convincing selling point to gain wider support across the EU for bolder public policies, including in the area of trade, in a way to guarantee European prosperity and resilience.