The European Union’s Economic Policy Evolution: Balancing Trade, Investment, and Geopolitical Interests

Abstract

Goal – the article aims to analyse the European Union’s economic policies and strategies in response to contemporary global challenges. It focuses on how the EU is evolving its trade agreements, instruments, and sanctions mechanisms to enhance economic security, sustainability, and competitiveness in an increasingly volatile geopolitical landscape. Research methodology – the research employs a qualitative analysis of policy documents, official reports, and recent developments in EU economic strategy. It synthesises theoretical perspectives on trade and investment policy while contextualising the EU’s actions within global economic trends, including protectionism and geopolitical tensions. Score/results – the findings indicate that the EU is transitioning from bilateral to multilateral agreements, emphasising collective interests over individual member states. The establishment of monitoring mechanisms for foreign direct investments and the introduction of non-trade measures, such as carbon border taxes, illustrate the EU’s commitment to safeguarding its internal market. Moreover, the article highlights the EU’s strategic response to external pressures, showcasing its adaptability in creating institutional frameworks that enhance selective participation in globalisation. Originality/value – this article contributes to the discourse on the EU’s economic strategy by illustrating its unique approach to addressing global challenges through a blend of protective and proactive measures. It highlights the interconnectedness of trade and investment policies and underscores the EU’s aspiration for strategic autonomy in the global economy, making it a valuable resource for policymakers and scholars interested in international relations and economic governance.