Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 1466: Navigating the New Normal: The European Union's Changing Stance on Globalization in the Era of Trade Conflicts

Fredrik Sjöholm ()
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Fredrik Sjöholm: Research Institute of Industrial Economics (IFN), Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden

Abstract: The European Union (EU) is becoming more inward looking and more hesitant towards globalization. This paper examines recent transformations in EU's economic policies, with a focus on international trade and industrial policy. It argues that these changes reflect the EU's response to the evolving global economic and political landscape, driven by factors such as China's rise and the US's protectionist policies. By analyzing the potential consequences of these policy adjustments on EU industries' competitiveness and trade relations, the paper offers insights into the future prospects of EU economic policies and their role in shaping the global economy.

Keywords: Globalization; European Union; Trade War; Industrial Policy

JEL-codes: F02; F15; F51

Language: English

20 pages, May 31, 2023

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