The EU’s Open Strategic Autonomy from a central banking perspective - Challenges to the monetary policy landscape from a changing geopolitical environment

Demosthenes Ioannou, Javier Pérez, Ana M. Almeida, Irina Balteanu, Iván Kataryniuk, Hans Geeroms, Isabel Vansteenkiste, Pierre-François Weber, Maria Grazia Attinasi, Kristel Buysse, Rodolfo Campos, Daragh Clancy, Dennis Essers, Donata Faccia, Maximilian Freier, Rinalds Gerinovics, Makram Khalil, Patrick Kosterink, Michele Mancini, Marta Manrique, Peter McQuade, Philippe Molitor, Daniela Pulst, Jacopo Timini, Ilona Van Schaik, Vilém Valenta, Filippo Vergara Caffarelli, Francesca Viani, Natalja Viilmann, Daniel Alonso, Lorenzo Bencivelli, Oscar Borgogno, Fructuoso Borrallo, Lucía Cuadro-Sáez, Enrica Di Stefano, Andreas Esser, María García-Lecuona, Maurizio Michael Habib, Bruno-Philippe Jeudy, Andrés Lájer, Florian Le Gallo, Ádám Martonosi, Antonio Millaruelo, Andrea Miola, Pauline Négrin, Michele Savini Zangrandi, Felix Strobel and Kalina Paula Tylko-Tylczynska
Authors registered in the RePEc Author Service: Lucía Cuadro Sáez

No 311, Occasional Paper Series from European Central Bank

Abstract: Over the past decade, geopolitical developments – and the policy responses to these by major economies around the world – have challenged economic openness and the process of globalisation, with implications for the economic environment in which central banks operate. The return of war to Europe and the energy shock triggered by the Russian invasion of Ukraine in 2022 are the latest in a series of episodes that have led the European Union (EU) to develop its Open Strategic Autonomy (OSA) agenda. This Report is a broad attempt to take stock of these developments from a central banking perspective. It analyses the EU’s economic interdependencies and their implications for trade and finance, with a focus on strategically important dimensions such as energy, critical raw materials, food, foreign direct investment and financial market infrastructures. Against this background, the Report discusses relevant aspects of the EU’s OSA policy agenda which extends to trade, industrial and state aid measures, as well as EU initiatives to strengthen and protect the internal market and further develop Economic and Monetary Union (EMU). The paper highlights some of the policy choices and trade-offs that emerge in this context and possible implications for the ECB’s monetary policy and other policies. JEL Classification: F0, F10, F30, F4, F5, F45, E42, L5, Q43

Keywords: capital flows; European Central Bank; European Economic and Monetary Union; financial market infrastructures; financial stability; geoeconomics; geopolitics; globalisation; global value chains; industrial policy; international trade; monetary policy; multilateralism; Open Strategic Autonomy (search for similar items in EconPapers)
Date: 2023-03
New Economics Papers: this item is included in nep-ban, nep-cba, nep-cis, nep-des, nep-eec, nep-int, nep-mac, nep-mon and nep-tra
Note: 1056819
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbops:2023311

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