Keeping friends closer: Why the EU should address new geoeconomic realities and get its neighbours back in the fold

Russia’s invasion of Ukraine has marked the start of a new geo-economic era for the EU. The invasion has dramatically intensified the EU’s ongoing economic and financial decoupling from Russia, which started in 2014, and adds to existing challenges, which are now assuming added salience: global economic decoupling between the US and China, the climate emergency and increasing irregular migration. Gaining a better understanding of the geo-economic challenges that the EU faces in its neighbouring regions and assessing their influence in relation to its peers and rivals are now of fundamental importance. 
This study set out to measure the interconnectivity between the EU and its neighbouring countries and to compare these interconnections with those of the EU’s peers and rivals: the US, China and Russia. We have dealt with interconnectivity in five areas: trade, finance, technology and know-how, infrastructure and labour mobility. In doing so, we have sought to identify and measure the extent of these interconnections and to draw out the key geoeconomic implications for the EU. 

The 2nd updated edition became necessary because in some graphics notes were incomplete or incorrectly reproduced. It replaces the 1st edition ( DOI 10.11586/2023008).