Bruegel Working paper-Instruments of economic security

May 23, 2024--The challenge of improving European economic security has grown in importance, with various relevant policy measures introduced at EU level
Geopolitical and economic developments, including Russia's invasion of Ukraine and trade disruptions during the COVID-19 pandemic, have raised concerns about the European Union's exposure to hostile countries.

The challenge of improving European economic security (which we narrowly treat here as exposure to foreign trade or production shocks) has grown in importance, with various relevant policy measures introduced at EU level.

Focusing in particular on the threat posed by economic coercion, this paper begins by assessing the nature of this threat, before outlining two lessons that can be drawn from two recent instances of this coercion in action: China's actions against Lithuania and Australia respectively. First, while much of the policy debate has focused on imports, the threat to EU exporters should not be ignored. Second, while coercion may not cause any macroeconomically significant harm, this may mask severe impacts on the targeted industries, which should be considered in any policy responses.

ESAs warn of risks from economic and geopolitical events

September 10, 2024--The three European Supervisory Authorities (EBA, EIOPA and ESMA-ESAs) today issued their Autumn 2024 Joint Committee Report on risks and vulnerabilities in the EU financial system. The Report underlines ongoing high economic and geopolitical uncertainties.