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This paper provides an overview of the policy measures applied in the EU to address the COVID-19 crisis and their macroeconomic consequences. It focuses on the macroeconomic impact on labour markets, external balances, financial markets and the corporate sector. The paper also examines the impact on longer-term growth and productivity. Impacts on public finances and debt sustainability are analysed independently, with considerations regarding prospective growth, interest rate and inflation developments ...

The growing importance of global supply chains has fundamentally changed the way the global economy and goods manufacturing are organised. While trade conducted through global supply chains has fallen somewhat as a share of total trade since the 2008-2010 global financial and economic crisis, more than two-thirds of international trade still involves transactions made possible by such chains. The EU is profoundly involved in these production chains, more so than most other countries, and significantly ...

European Globalisation Adjustment Fund

Εν συντομία 21-04-2021

The 2018 European Commission's proposal to revise the European Globalisation Adjustment Fund, modified under the 2020 recovery plan for Europe, introduces changes to eligibility criteria, co-financing rules and the mobilisation procedure. Outside the 2021-2027 Multiannual Financial Framework (MFF) ceilings, it should continue to serve as a solidarity and emergency fund used on an ad hoc basis. Following an early second-reading agreement reached in January 2021, Parliament is expected to vote in April ...

These briefings discuss how free trade agreements (FTAs) can help small and medium-sized enterprises (SMEs). It provides an overview of FTAs with provisions supporting SMEs internationalise. Based on a literature review, we also discuss the main challenges and concerns for SMEs doing business in third countries. First, we show the current situation of European SMEs with respect to internationalisation and highlight the corresponding benefits. Following previous literature on the topic, we distinguish ...

This briefing discusses the main challenges and concerns for SMEs doing business in third countries. First, we show the current situation of European SMEs with respect to internationalisation and highlight the corresponding benefits. Second, based on previous literature on the topic, we distinguish between SMEs without international operations and SMEs that are already internationalised and discuss how different barriers can affect them.

This briefing discusses the actions that the EU could take to properly tackle the challenges that SMEs are currently facing. Several initiatives have already been launched, such as the EU Helpdesk, the Access2Markets Platform and the CTEO. The pros and cons of these initiatives are outlined, and examples and a general assessment are provided. In a second step, several actions of Member States and commerce organisations are highlighted and a detailed classification provided. In a final step, recommendations ...

This study examines the phenomenon of land abandonment, its consequences and mitigation options. Using quantitative data, it provides an overview of the possible future evolution of land abandonment in the EU by 2030, its historical evolution and current state of play. Based on desk research and case studies, this research project carries out an analysis of the drivers and effects of the phenomenon, considers mitigating actions to be implemented through EU policies, notably the CAP and outlines ...

Slowbalisation – understood as the slowdown in global integration – is said to have started in the aftermath of the global financial crisis of 2007-2008. The coronavirus pandemic brought about a further dramatic fall in cross-border movement of goods, services, capital and people, to the extent that commentators have proclaimed the beginning of deglobalisation. This paper examines whether the phenomenon described as slowbalisation is myth or reality, by looking at five different pathways of globalisation ...

As fashion becomes increasingly globalised, garment and footwear production has shifted to low-wage, mostly Asian countries. Thanks to lower manufacturing costs, clothes have become increasingly affordable for European consumers. For developing countries, fashion exports create jobs and growth, helping to bring poverty rates down. While there are benefits on both sides, the fashion industry highlights inequalities between the global North and South. With almost unlimited flexibility between countries ...

Free trade or geo-economics? Trends in world trade

Λεπτομερής ανάλυση 27-09-2019

The European Union (EU) is the biggest integrated economic zone and a guarantor of an open and predictable regulatory system able to determine its own economic destiny. But the behaviour of other global powers is increasingly calling this ability into question. China and the United States, especially, do not separate economic interests from geopolitical interests in the same way the EU does and are increasingly trying to gain geopolitical advantage using their economic might. The EU is known as ...