One Year of EU Economic Security Strategy - comparing progress with Elvire Fabry and Nicolas Köhler-Suzuki
Jun 20, 2024
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Elvire Fabry and Nicolas Koehler-Suzuki discuss the one-year progress of the EU economic security strategy compared to other actors. They explore disparities in approaches, challenges in governance, and the impact of shallow trade deals. The conversation emphasizes the need for a balanced approach, strategic negotiations, and proactive economic security measures within the EU.
National interests influence economic security strategies globally.
Countries like US and China prioritize technological dominance for global influence.
EU's economic security strategy focuses on protection, promotion, and partnership pillars.
Deep dives
Defining Economic Security
Economic security varies per country based on distinct interests, economic goals, and foreign policy objectives which influence how nations engage globally. Varied perspectives within a country, like economic policymakers and security experts, shape the understanding of economic security. The EU's competency differs from unitary powers like the US, China, and Japan, impacting how they define and prioritize economic security. The US closely links economic security with national security, employing tools like export controls and evolving strategies to maintain global leadership.
Discrepancies in Economic Security Approaches
Different countries, like the US, China, Japan, and the EU, exhibit diverse economic security strategies. The US and China focus on technological leadership for regime or global influence, leading to distinct approaches like export controls. In contrast, the EU and Japan prioritize enhancing supply chain resilience over technological dominance. Discrepancies also arise in governance structures and adherence to international trade regulations, impacting how countries address economic security challenges.
Assessing the EU's Economic Security Strategy
The EU's economic security strategy, introduced around June 2023, centers on pillars of protection, promotion, and partnership. While efforts to shield critical infrastructure and enhance innovation are underway, challenges like compliance costs and supply chain adjustments affect firm competitiveness. The strategy aims to strengthen international alliances, consolidating the EU's position in critical technologies and fostering a rules-based global economic order.
Future Recommendations for Economic Security
Future economic security strategies for the EU should prioritize multi-layered partnerships with transatlantic allies and global stakeholders. Enhanced coordination within the G7, G20, and like-minded nations is crucial to address emerging economic threats. Balancing investment in innovation, supply chain resilience, and strategic partnerships while adhering to global trade regulations and fostering internal cohesion are key aspects for the EU's economic security agenda.
Addressing Competitiveness and Prosperity
Balancing security measures with economic prosperity and competitiveness remains a challenge for the EU. While the economic security strategy aims to protect vital sectors and drive innovation, it also imposes compliance costs and supply chain adjustments on firms. Striking a balance between reducing dependencies on non-EU technologies and fostering competitiveness through strategic investments and market diversification is essential for the EU's long-term economic security.
Challenges and Progress in Economic Security
Evaluating the EU's progress in economic security reveals a focus on protection, promotion, and partnership pillars to enhance competitiveness. Despite advancements, challenges like compliance costs, supply chain adjustments, and access to cutting-edge technologies persist. The EU must address immediate weaknesses in member state capacities, internal coordination, and external assertiveness to navigate political transitions and sustain economic security efforts.
In this episode of Geoeconomic Competition, Francesca Ghiretti engages with Elvire Fabry and Nicolas Koehler-Suzuki to discuss how the EU economic security strategy has performed in its first year compared to the economic security approaches of other actors.
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