Economy
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.
Related Subjects
Towards a New European Trade Strategy in Times of Geopolitical Upheaval: The German Perspective
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.
EU-Mercosur: An Unsolvable Trilemma Between Competition Rules, Normative Ambitions and Supply Chain Diversification
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.
The EU, the Indo-Pacific and the US-led IPEF: Which Way Forward?
The paper provides a European Union (EU) perspective on the Indo-Pacific Economic Framework (IPEF).
Fiscal Policy in France and Germany: Insurmountable Differences?
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.
Between Inertia and Openness. Germany Reforms Its Labor Immigration System
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.
A framework for a Win-Win Europe-Africa Energy and Climate Partnership
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.
Is International Climate Finance Unfair and Inefficient?
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.
IRA: Towards Clean Hydrogen Leadership in the U.S.
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
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
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.
Fishing for Chips: Assessing the EU Chips Act
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.
The Sino-Lithuanian Crisis: Going beyond the Taiwanese Representative Office Issue
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
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.
European Economic Governance: Past Errors and Future Promises
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.
Strengthening Sovereignty in the Era of Global Value Chains
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?
Towards a more China-centred global economy? Implications for Chinese power in the age of hybrid threats
An era of hyper globalization is giving way to an age of geoeconomics wherein China seeks a decisive seat at the table.
Asia-Pacific mega trade deals (RCEP, CPTPP): Which role for the US, and what are the implications for the EU?
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
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.
Europe, Power and Finance
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.
The regional economic order: Four scenarios
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.