The Future of European Defense 
 EVENT                            

  • Geoeconomics: Rethinking Dependencies and Partnerships 
 POLICY REPORTS       

  • European Defense Spending in 2024 and Beyond 

  • Monitoring the Impact of Sanctions on the Russian Economy 
 POLICY BRIEF               

  • Reconfiguration of Supply Chains: What Are the Priorities of German Firms? 
 ECONPOL FORUM       

  • BRICS Enlargement – What Are the Geoeconomic Implications? 

  • Mentoring Improves the School-to-work Transition of Disadvantaged Adolescents 

  • Why Moving towards a Strong Decentralized Federal State Would Be Beneficial for the European Union 

  • New Evidence on the Effects of EU Regional Policy 
 EVENT                                 

Geoeconomics:
Rethinking Dependencies and Partnerships

 

At the Munich Security Conference 2024 the ifo Institute together with EconPol Europe hosted a Breakfast Debate in which Clemens Fuest (ifo Institute), Arancha González Laya (Paris School of International Affairs), Henry Farrell (Johns Hopkins University), Mariano-Florentino Cuéllar (Carnegie Endowment for International Peace), Norbert Röttgen (Member of the German Federal Parliament), Reinhard Bütikofer (Member of the European Parliament), and a lineup of several top leaders from politics, industry, and academia discussed the current geoeconomic reality. 
 POLICY REPORTS           

European Defense Spending in 2024 and Beyond

 

To improve defense capabilities, Europe must increase defense spending immediately and create fiscal space for a permanent rise in defense 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 1% of non-defense expenditure towards defense, this would be sufficient to meet the NATO 2%-target. 

Monitoring the Impact of Sanctions on the Russian Economy

 

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% of all products subject to sanctions come from China. 
 POLICY BRIEF                 

Reconfiguration of Supply Chains: What Are the Priorities of German Firms?
EconPol Europe Annual Conference 2023: Geoeconomics – New Challenges for Europe

 

Even after the coronavirus pandemic, German manufacturing is continuing to restructure its supply chains to reduce the risk of production losses. Companies are focused primarily on diversification. 58% have broadened their supply chains and found new suppliers in the past year. One in three companies is also planning to expand its supplier base further. Last year, 45% of manufacturing companies also made increased use of warehousing. However, only 12% are planning such increases in the future. Moreover, 44 % of companies report improved monitoring of their supply chains, while 17 % have increased their vertical integration and reintegrated previously outsourced production steps into the company. 
ECONPOL FORUM           


Policy Debate of the Hour

BRICS Enlargement – What Are the Geoeconomic Implications?

Economic Policy and its Impact

Mentoring Improves the School-to-work Transition of Disadvantaged Adolescents
Economic Policy and its Impact
This article evaluates the effectiveness of one of the largest mentoring programs for disadvantaged adolescents in Germany. The aim of the program “Rock Your Life!” is the successful transition of adolescents from lower secondary school to an apprenticeship or upper secondary school. Mentoring programs can strongly improve the transition from school to work for disadvantaged adolescents. The results show that substituting a lack of family support with other adults can help disadvantaged children in adolescence. 

Institutions Across the World

Why Moving towards a Strong Decentralized Federal State Would Be Beneficial for the European Union
Institutions Across the World
Few politicians dare to think aloud about federal models for the European Union. Currently, the European Union is a politically fragmented and divided union of member states, economically underperforming, with a defense capability that is insufficient. This article argues that EU should develop towards a stronger decentralized federation, but by restoring the principle of subsidiarity. When it comes to sharing political power, the Swiss model is more suitable for the European Union than the US model. 

Big Data-Based Economic Insights

New Evidence on the Effects of EU Regional Policy
Big Data-Based Economic Insights
 
EU Cohesion Policy constitutes an important item in the EU budget. This article presents results from a pilot study that combines official data on projects co-funded by the European Regional Development Fund and the EU’s Cohesion Fund in the programming period 2007–2013, with remote sensing data on night light emission and land cover to assess the effect of EU funding on economic growth at the municipal level, where regional GDP data are not available. 
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EconPol Europe is CESifo’s economic policy platform. With key support from the ifo Institute, it seeks to leverage CESifo’s globe-spanning network of more than 2 000 high-ranked economists – at least a dozen of whom have won the Nobel Prize – and ifo’s decades-deep research expertise to provide well-founded advice to European policymakers and to facilitate informed decisions. Drawing on the wide range of specializations of its members, EconPol’s mission is to contribute to the crafting of evidence-based, effective economic policy in the face of the rapidly evolving challenges faced by the European economies and their global partners.
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