Policy insights
Policy Insights
Policy Insight 129: How to de-risk: European economic security in a world of interdependence
The EU and other advanced economies are attempting to ‘de-risk’ their external economic relationships without foregoing the benefits of trade. But how? Drawing on a body of research published in the joint CEPR/Bruegel Paris Report 2, this Policy Insight argues that (1) import de-risking should focus on a few product categories where the costs of supply interruptions are unquestionably large; (2) risk exposures through exports and financial channels require more attention; and (3) de-risking must be complemented by deterrence and by raising resilience with respect all disruptions, wherever their origin. The latter requires a deeper and broader EU Single Market.
