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Economy

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The economy is an essential attribute of power and a major component of international relations. While geopolitical tensions are on the rise, economic interdependence remains strong.

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Publications
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Towards a New European Trade Strategy in Times of Geopolitical Upheaval: The German Perspective

Date de publication
06 October 2023
Accroche

As one of the most successful trading blocs, the EU sees itself confronted with the erosion of the global rules-based trading system and trade becoming increasingly weaponized.

Klemens KOBER

EU-Mercosur: An Unsolvable Trilemma Between Competition Rules, Normative Ambitions and Supply Chain Diversification

Date de publication
03 October 2023
Accroche

The EU-Mercosur trade deal was believed to be heading toward the finish. The election of Luiz Inácio Lula da Silva as the president of Brazil, as successor to the right-wing populist Jair Bolsonaro, and the Spanish presidency of the European Union (EU), raised hopes for its conclusion. But the reservations expressed by several EU member states and some Latin American countries have dashed hopes.

Marie KRPATA Ana Helena PALERMO

The EU, the Indo-Pacific and the US-led IPEF: Which Way Forward?

Date de publication
28 September 2023
Accroche

The paper provides a European Union (EU) perspective on the Indo-Pacific Economic Framework (IPEF).

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Fiscal Policy in France and Germany: Insurmountable Differences?

Date de publication
05 September 2023
Accroche

The state of public finances in France and Germany is often compared. Germany is considered a model of rigor, through its ability to contain its deficits and generate surpluses, particularly between 2012 and 2019, thanks to the introduction into its constitution of a debt brake mechanism. 

Andreas EISL
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Between Inertia and Openness. Germany Reforms Its Labor Immigration System

Date de publication
05 July 2023
Accroche

With its new Skilled Immigration Act (Fachkräfteeinwanderungsgesetz) of 23 June 2023, Germany aims to become the country with "the most modern immigration law in Europe". A new points system and new entry rules for experienced workers having a degree from their home country demonstrate the willingness of the German government to open up its labor market to third-country nationals. While immigration law was already the subject of a previous reform in 2020, the new law is a real paradigm shift in Germany’s migration policy.

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A framework for a Win-Win Europe-Africa Energy and Climate Partnership

Date de publication
04 July 2023
Accroche

North-South tensions are exacerbated at a time of unprecedented turmoil for both Europeans and Africans. European polycrises (geopolitical, energy-related and economic) echo the systematic vulnerability of Africans, which is reinforced by external shocks.

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Is International Climate Finance Unfair and Inefficient?

Date de publication
20 June 2023
Accroche

Finance is arguably the most sensitive climate negotiation topic. Different studies have shown that rich countries emit the majority of greenhouse gas (GHG) emissions, while the climate footprint of the poorest countries is much more limited.

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IRA: Towards Clean Hydrogen Leadership in the U.S.

Date de publication
15 June 2023
Accroche

Although late in adopting clean hydrogen (H2) and defining a national strategy–a draft was presented by the Department of Energy (DOE) in September 2022–, the United States (US) has strongly reinforced its support to clean hydrogen with the passage of the Inflation Reduction Act (IRA) in August 2022.

Türkiye’s Stifled Ambitions

Date de publication
07 June 2023
Accroche

As its elections have unfolded this spring, Türkiye has again shown itself to be symptomatic of the times. Across the world, numerous political regimes oscillate between democratic forms of government and an authoritarian concentration of power; impressive periods of growth give way to inflation and recession; and international deregulation gives rise to widespread diplomacy in an effort to juggle a myriad of shifting political loyalties. Faced with the war in Ukraine, Ankara is playing a strong hand by enlarging its areas of presence and intervention. Türkiye is more important to its partners than ever, independent of its eventual domestic trajectory.

Western discourse predicted the advent of Chinese dominance in the very short term, but events have taken a rather different turn. The drivers that enabled the unprecedented growth of recent decades seem to have run out of steam. Moreover, the outcome of Beijing’s economic strategies is still uncertain, in a context shaped primarily by U.S. policies. China’s influence in the future will be considerable, but the direction its rebound will take remains unclear.

For Europeans, the events in Ukraine and the thorny issue of the Sino-American rivalry cannot paper over the other security problems we face: On what common vision of our history and future will we build the Europe of tomorrow? Has drug trafficking already changed the nature of our societies? Can we afford to turn away from instances of destabilization in Africa, from the Horn to the Sahel?

European and Japanese Soft Power Signal Renewed Influence of G7

Date de publication
25 May 2023
Accroche

The G7 summit in Hiroshima showcased a new international order in the making: in a world where security is indivisible, the priority should be to uphold a collectively shaped rules-based order and find a modus vivendi with China. The G7 can work toward this by taking into account the diverse perspectives of industrialized countries and the Global South, which prioritizes multi-alignment and autonomy. Japan and Europe played a critical role in this process.

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Fishing for Chips: Assessing the EU Chips Act

Date de publication
08 July 2022
Accroche

China, the United States, and the European Union (EU) are currently developing strategies for semiconductors aimed at financing R&D and the installation of new factories on their territories, in particular through subsidies. The EU Chips Act, announced in February 2022, represents a real break in Europe's industrial policy.

Niclas Frederic POITIERS Pauline WEIL
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The Sino-Lithuanian Crisis: Going beyond the Taiwanese Representative Office Issue

Date de publication
08 March 2022
Accroche

The year 2021 marked the 30th anniversary of the establishment of diplomatic relations between China and Lithuania. Instead of commemorative events and customary lofty rhetoric, the bilateral relationship rapidly plunged to a level rarely seen in either country’s foreign policies since the end of the Cold War.

Korea-EU Direct Investment Links: The Neglected Facet of a Tight Partnership

Date de publication
06 January 2022
Accroche

Despite their difference in size, Korea and the EU have developed over time a strong and deep relation through direct investment flows. Germany dominates the relationship, but there remains ample room for the other EU member-states to further develop their relations with Korea.

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European Economic Governance: Past Errors and Future Promises

Date de publication
14 December 2021
Accroche

The eurozone crisis marked a real failure of European Union (EU) policy, which led to mediocre economic performance and the erosion of its political legitimacy among the populations of member states.

Vivien SCHMIDT
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Strengthening Sovereignty in the Era of Global Value Chains

Date de publication
14 December 2021
Accroche

How to reduce the vulnerabilities induced by these global value chains to be more independent, while taking into account the reality of these productive processes which precisely generate interdependencies?

Paul HERAULT
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Towards a more China-centred global economy? Implications for Chinese power in the age of hybrid threats

Date de publication
18 November 2021
Accroche

An era of hyper globalization is giving way to an age of geoeconomics wherein China seeks a decisive seat at the table.

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Asia-Pacific mega trade deals (RCEP, CPTPP): Which role for the US, and what are the implications for the EU?

Date de publication
11 October 2021
Accroche

While it has long been reluctant to engage in institution-based regional economic integration, East Asia is now home to two mega trade deals: the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP).

France, China and the BRI: The challenge of conditional engagement

Date de publication
03 September 2021
Accroche

Moving away from its traditional low-profile attitude, China has gradually shifted to a muscular foreign policy in the wake of the 2008 global financial crisis and the resulting change in the global balance of power.

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Europe, Power and Finance

Date de publication
09 July 2021
Accroche

Finance has become an essential attribute of power. Its importance has grown given the substantial investments needed for the energy and digital transitions as well as the need to support economies affected by the COVID-19 pandemic.

Sylvie GOULARD, Former Minister and Member of the European Parliament, President of the Franco-German Institute in Ludwigsburg
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The regional economic order: Four scenarios

Date de publication
28 May 2021
Accroche

What will the economic order in the Indo-Pacific region look like twenty years from now? What are the major trends shaping it, and how are they likely to evolve in the near future?

Support independent French research

Ifri, a foundation recognized as being of public utility, relies largely on private donors – companies and individuals – to guarantee its sustainability and intellectual independence. Through their funding, donors help maintain the Institute's position among the world's leading think tanks. By benefiting from an internationally recognized network and expertise, donors refine their understanding of geopolitical risk and its consequences on global politics and the economy. In 2024, Ifri will support more than 70 French and foreign companies and organizations.

Ramses Conference, 2024
Related centers and programs
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digital globe
Geoeconomics and Geofinance Initiative
Accroche centre

To analyze the impact of power rivalries and tensions on globalization, this initiative combines economic and political expertise. In the face of growing geopolitical risk, the goal is to decipher the dynamics of reconfiguration: protectionist pressures, sanctions, restrictions, industrial policies, and economic security concerns are redefining the rules of international trade. These tensions are also transforming international financial relations by undermining the foundations of trust and reshaping the global monetary system. They raise questions about the role of several key players: sovereign wealth funds, central banks, digital platforms, multilateral institutions, and financial infrastructure operators. In a context of profound disruption, simply refining existing approaches is no longer sufficient. The initiative is designed as a flexible model, drawing on diverse expertise to offer both broad overviews and targeted analyses. It also provides a platform for stakeholders and experts from various backgrounds to debate these issues freely.

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