Global economy and trade
Explore recurring issues in Europe’s relationship with its extended neighbourhood, and economic relations with China, India and the rest of the world.
The global economy in continues to be affected by the pandemic. However, it is also marked by major geopolitical developments, from President Biden’s inauguration and a revival of the transatlantic relationship, to the continued rivalry with China, with the EU caught in-between these global trends.
Bruegel’s scholars cover the European Union’s increasing assertiveness towards neighbours over the past year, including the external repercussions of the European Green Deal, managing a crisis at its borders, building a future relationship with a former member, strengthening the international role of the euro and tackling a resurgent China.
Recently published and updated
The Belt and Road Initiative 2.0 is all about security
How the Belt and Road Initiative has transformed into a geopolitical tool for China.
Is Europe failing on import diversification?
Despite a goal of economic self-reliance, the European Union’s imports are generally sourced from an increasingly limited set of suppliers.
What China’s reopening will mean for the global economy
A timely discussion about the reopening of China after the zero-Covid policy and its implications on the global economy
How should Europe react to the Inflation Reduction Act?
A deep dive into the IRA and its expected impact on the world trade system.
Climate versus trade? Reconciling international subsidy rules with industrial decarbonisation
Environmental subsidies could be justified when emissions taxation is not feasible or is insufficient due to political economy constraints.
Is deglobalisation already happening?
Is the world witnessing a shift away from Hyper-globalisation to Deglobalisation?
The boom, bust and future of China's real estate sector
Is China’s real estate market sustainable?
Global and regional Gini coefficients
27 October 2022
European Union fiscal rules: is a better system feasible?
EU countries seem to be converging on a set of reform objectives. But can these be jointly satisfied? Two recent proposals offer some hope.
26 October 2022
How have sanctions impacted Russia?
In this paper we assess both the immediate economic impact and the likely longer-term impact of sanctions on the Russian economy.
24 October 2022
National policies are the best protection against euro-area financial fragmentation risks
An analysis of German-Italian spreads under five Italian governments shows that the gap was biggest when Italian policies worried markets most.
19 October 2022
The sometimes puzzling differences in transatlantic earnings growth
Low-skill workers have seen faster wage growth than high-skill workers in many EU countries, contrary to the United States.
19 October 2022
The advance of China’s private sector pauses, but the trend is unclear
The drop in the previous private-sector advance should not be viewed as the start of a new trend of continuous decline, at least not yet.
17 October 2022
Europe’s promised semiconductor subsidies need to be better targeted
The proposed European Chips Act over-emphasises semiconductor production subsidies, focusing too little on increasing value-added in research.
14 October 2022
How European Union energy policies could mitigate the coming recession
The European Union faces recession, but the way in which policymakers manage the energy crisis will determine its depth and duration.
11 October 2022
Does the European Union need an energy crisis fund?
An EU energy fund is justified, but for different reasons than commonly assumed, with implications for the fund’s design.
06 October 2022
Using online data to glimpse into the future of work
Labour-market data from online sources can identify emerging occupations and skill demand, helping policymakers prepare better for future needs.
06 October 2022
Volatile energy markets expose the fragility of Europe’s capital market infrastructure
Reform of the EU central clearing framework is an essential part of capital markets union, but reform should not be driven by current energy turmoil.
05 October 2022
China and the West: growing apart as geopolitical tensions grow
The model of increasing economic interdependence between the West and the emerging world was built on assumptions that no longer hold.
04 October 2022
How the European Union can best apply the Digital Markets Act
The European Union’s new Digital Markets Act will enable the European Commission to get ahead of potential anti-competitive behaviour.
30 September 2022
Germany’s gas-price ‘defence shield’: problems and redeeming features
The €200 billion “defence shield” risks undermining European solidarity. This could be avoided by designing it well.
29 September 2022
An assessment of Europe’s options for addressing the crisis in energy markets
Action to intervene in the gas and electricity wholesale markets is also being taken at European Union level, which is what we analyse in this paper.
29 September 2022
Greeniums in sovereign bond markets
In this paper, we analyse whether green sovereign bonds are systematically priced differently to conventional sovereign bonds in the secondary markets
27 September 2022
China’s top ranked corporations are not as opaque as they may seem
Even though most large Chinese SOEs are not listed, they generate most of their revenue from their listed subsidiaries.