Due to concerns over its economic security, the European Union is transitioning to a new form of international economic and policy engagement. While seeking to preserve the benefits of interdependence with the rest of the world, the bloc is contemplating policies that would induce change. Recent research by Chad Bown of the Peterson Institute for International Economics outlines domestic policy instruments that the EU, member states, and other governments are taking to address economic security, including stockpiling and inventory management, investment or production subsidies, tariffs, export controls, and regulations on foreign investment.
This ECA Talk discussed Bown’s findings on the EU’s economic security, the role of trade and industrial policy in achieving EU goals, and the associated economic costs.
