The EU’s Path to Strategic Autonomy

According to the study, increasing geopolitical fragmentation, trade conflicts and crises such as the pandemic or the war in Ukraine show that Europe’s previous, highly globalised growth model is now outdated. The EU is therefore pursuing the concept of ‘Open Strategic Autonomy’: it aims to remain open to international trade, whilst at the same time reducing critical dependencies on raw materials, energy and technologies. However, cep industry expert André Wolf, author of the study, sees room for improvement: “In its quest for European autonomy, the EU risks getting bogged down in a multitude of policy initiatives. Future economic policy measures should be geared towards a clear, strategic vision.”

Wolf emphasises that key technological sectors – such as digital technologies, semiconductors, climate-neutral technologies and artificial intelligence – are increasingly becoming a geopolitical power factor. Whoever controls technological standards and innovations can gain economic influence in the long term. Whilst Wolf recognises progress in the implementation of trade defense instruments, industrial policy and strategic partnerships, significant challenges remain, particularly regarding access to clean and affordable energy, critical raw materials, markets for new technologies and risk capital for long-term investments.

“Private investment, in particular, is the key to greater European autonomy. The EU should consistently pursue trade and industrial policy from an investor’s perspective and focus on the biggest barriers to investment. This also requires intelligent forms of risk-sharing for areas where market-based hedging is not possible,” Wolf argues in the study.