81. Measured response: How to design a European instrument against economic coercion
- Author:
- Jonathan Hackenbroich and Pawel Zerka
- Publication Date:
- 06-2021
- Content Type:
- Policy Brief
- Institution:
- European Council on Foreign Relations (ECFR)
- Abstract:
- Europe is at ever greater risk of economic coercion from other powers. To protect itself, the EU could adopt a new anti-coercion instrument (ACI) to allow it to impose economic countermeasures. The ACI needs to enable countermeasures that are both effective and credible; if it does not, this could carry more risks than benefits. These countermeasures could include: trade and investment restrictions; export controls and divestment in certain sectors; and restrictions on access to EU public procurement markets. The EU should also include a flexibility mechanism for countermeasures against those forms of economic coercion the ACI cannot cover explicitly. The ACI should be a de-politicisation tool. It must be used only as last resort and should include an effective de-escalation mechanism to trigger dialogue and negotiations.
- Topic:
- Defense Policy, Economics, European Union, Trade, and Transatlantic Relations
- Political Geography:
- Europe