The pressures of geopolitics and proliferation of crisis means that EU’s political agenda must be profoundly reoriented towards implementing economic security as a third major paradigm shift, in parallel to the green and digital transitions. It entails significant trade-offs and distributional consequences inside and outside EU.

From raw materials, energy and health to cybersecurity and emerging technologies, an economic security policy matrix is needed to ensure resilience, security of supply and technological competitiveness.

Prepare

The prerequisite of preparing for the world of new pressures and challenges is the essential starting point for the EU’s economic security strategy. It needs to involve a solid understanding of today’s geopolitical inflection points. On this basis, an analytical capacity concerning critical resources, technology & value chains must be built. The EU decision-making should be underpinned by newly formed ‘Economic Security Council’.

Promote

The objective of promoting value creation in the EU is about ensuring that the EU’s growth and development model remains vibrant in the face of growing international competition. The EU needs to build strategic technological leverage and stimulate industrial competitiveness. Its aim should also be to leverage the Single Market to scale fragmented European efforts and develop an EU investment framework for key assets.

Protect

The need to protect the European interest is a function of intensifying tendencies to disrespect the rules of the global multilateral system and distort the level playing field. In a world of disruptions, the EU must protect its critical infrastructure as well as the provision of energy, food and health. It has to look after its cyber-resilience and security. The available toolkit needs to be adapted to these objectives by refining trade defence instruments and deploying autonomous tools.

Partner

As an open economy relying on extensive supplies of critical materials and resources, the EU must remain a globally engaged actor, pursuing new partnerships and revitalising old ones. It should pursue its de-risking strategy through diversification and the deepening of trade relations with a broader range of countries. At the same time, it should develop bilateral and plurilateral partnerships with like-minded countries.