For European economies, we are likely moving towards less trade with non-democratic or geopolitically more risky countries and a goal for greater independence in the production of essential goods, such as pharmaceuticals, military equipment, and high-technology goods. At the same time, we should avoid protectionism, aiming for an “open strategic autonomy”.
Such a diversification of trade flows and reorientation of suppliers of sensitive or critical products towards producers within the EU and other geopolitically less risky countries – the so-called regionalization and “friend-shoring” - would enhance the resilience of European economies to global geopolitical or pandemic-like shocks.