CEDPR Davos Watch: Europe in the New Global Economy Towards Integration or Fragmentation?

The European Union (EU), located at the westernmost tip of the Asia-Europe continent, is the world's largest association of developed countries. In recent years, this union has faced a number of crises, including the energy crisis caused by sanctions against Russia, repeated strikes by workers whose wages have struggled to keep up with inflation, and the refugee crisis, which has fuelled a number of social divisions, among others.

In this context, the EU how to maintain stability and unity, to achieve long-term economic development and how to find its own position in the world's new pattern of new order has become a matter of great concern. On 16 January, the Davos Forum held a discussion on "Europe in the New Global Economy", in which CEDPR took part and expressed its views on the subsidy race, the development of innovative industries, and More Europe or less (whether the member states are transferring more competences to the EU).

As the world's most powerful and integrated regional economic and political union, the EU is now a customs union with a common foreign trade, agriculture and fisheries policy and a unified internal market.

However, in the process of reshaping the world's new pattern, the EU's integration is facing new challenges. During the discussion, many guests mentioned their support for "More Europe".

CEDPR consultants believe that Europe does face this problem, especially in the case of economic slowdown or recession, the differences between different countries will deepen. For example, disagreements over monetary policy at the European Central Bank and over national budgets have increased in the wake of the slowdown, while geopolitical risks are also fuelling these differences.

The continuation of the Russian-Ukrainian conflict has also led to increased divergence on national security between Eastern European countries and Western and Southern European countries, and with the US using NATO to exert influence on European countries, this divergence could further lead to divisions within the EU. In terms of trends of thought, the rightward shift in the politics of some European countries in the context of deepening anti-globalisation will also increase the rift between European countries.