News Archive

Despite EU restrictions, only around one-third of pre-war exports to Russia are fully sanctioned; most trade remains unaffected or subject to numerous exemptions. While exports have decreased by 32%, imports have increased by 17% due to innovative ways to bypass trade sanctions. China is Russia’s most important alternative country of origin for products under sanction: 61 percent of all products subject to sanctions come from China. The Russian economy shows signs of recovery, driven by robust domestic demand from wartime fiscal stimulus, contributing about 10% to GDP in 2022-23.

To improve defence capabilities, Europe has to increase defence spending immediately and also to create fiscal space for a permanent rise in defence spending. Many European countries have collected a considerable peace dividend since the end of the Cold War. In the same period, welfare states have expanded to a degree not backed by the general economic development. This Policy Report shows that if European NATO countries shifted around one percent of non-defence expenditure towards defence, this would be sufficient to meet the NATO 2%-target.

The last EconPol Newsletter of 2023 has just been published. This issue features a special Policy Report on Geoeconomics analyzing different scenarios for the EU's future trade policy, a review of our 2023 EconPol Annual Conference in Brussels, as well as the latest EconPol Forum on how to make the green transition finally happen.

Recent events and rising geopolitical tensions have raised concerns about the external dependence and vulnerability of Europe’s economy. A division of the global economy into geopolitical blocs would hit European pharmaceutical manufacturers, automotive manufacturers and suppliers, and manufacturers of machinery and equipment particularly hard. This is the finding of a new EconPol Policy Report.

The devastating effects of climate change are becoming increasingly evident. It is difficult to accurately predict or even quantify the risks. Despite this threat, the pace of change is slow. Why is the world failing to tackle this problem collectively and effectively? What constraints are holding us back? How can we overcome them and contribute to the formulation of a credible and acceptable climate policy? What policy instruments can help pave the way to the green transition?