Caught in Geopolitical Fragmentation: How to De-risk Germany´s Economic Model

Sebastian de Quant (), Sander Tordoir () and Shahin Vallee ()
Additional contact information
Sebastian de Quant: German Council on Foreign Relations (DGAP)
Sander Tordoir: Centre for European Reform (CER)
Shahin Vallee: German Council on Foreign Relations (DGAP)

No 2, Working Papers from Forum New Economy

Abstract: Stagnating globalisation, the possible weaponisation of dependencies by autocracies, and US-China tensions threaten to disrupt Germany’s export-driven economic model. But German efforts to derisk that model remain underdeveloped, as does its policy toolkit. Germany’s most important trade relationship is with China. Germany’s import, export and investment exposure to an increasingly mercantilist and possibly aggressive China pose considerable risk to its comparative advantage and security. But the range of policy-levers required to address these– such as export controls or industrial policy - needs upgrading. Given Germany’s deep integration into the European economy, they also need to be defined much more consistently across the state, federal, and EU level. Successfully managing China-related risks can serve as a template for an integrated EU de-risking policy toolkit to make Germany’s model more resilient.

Keywords: Geoeconomics; International trade; De-risking; Germany-China relations; European Union; Industrial policy (search for similar items in EconPapers)
JEL-codes: F13 F14 F21 F33 F51 F68 L52 O52 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2024-02
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published

Downloads: (external link)
https://newforum.org/wp-content/uploads/2024/01/FNE-WP02-2024.pdf First version, 2024 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:agz:wpaper:2402

Access Statistics for this paper

More papers in Working Papers from Forum New Economy
Bibliographic data for series maintained by Xhulia Likaj ().