Global Economic Governance in Turmoil: Decisions for Europe

→ Global geopolitical fragmentation has outpaced traditional macroeconomic institutions, and Europe must strengthen its economic sovereignty through reforms that reduce dependence on the U.S.-led financial system.

→ The ECB and European Commission should leverage the euro and its full potential (digital euro, joint debt issuance, capital markets union) to bolster financial autonomy and mitigate vulnerability to sanctions and dollar influence.

→ Europe needs to consolidate common defense—integrating procurement, deepening cooperation with Ukraine, and implementing anti-coercion tools—and diversify energy sources by investing in renewables to ensure long-term energy security.

Staff Photo: Stephen Jaffe