Summary of Europe in a New World Order

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As the United States begins to look more inward, Europe has to alter its course, too. The European Union has gained a great deal from multilateral trade, but changes in the global macroeconomic and geopolitical environment will force it to strengthen its economic heft. This succinct yet informative analysis from economists Maria Demertzis, André Sapir and Guntram Wolff explains why the continent must reinforce its economic position and well-being in the world. getAbstract recommends this worthwhile report to executives and students of political economics.

In this summary, you will learn

  • How the global economy has changed,
  • What challenges Europe faces in this new world order and
  • What Europe needs to do to promote its standing in a rapidly changing geopolitical and economic environment.

About the Authors

Maria Demertzis is the deputy director of Bruegel, where André Sapir is a senior fellow and Guntram Wolff is the director.



As the developing economies have grown, the influence of the advanced nations in the global economy has contracted: In 2010, their contribution to world GDP dipped below 50% in terms of purchasing power. Citizens in developed countries are demanding protectionist policies, and Americans are no exception. The Trump administration wants to replace multilateral trade deals with bilateral agreements in an attempt to revive manufacturing jobs. The European Union faces the prospect of a diminished US presence in both trade and security. Brexit further jeopardizes Europe’s prominence in global economic and foreign policy arenas, especially in light of China’s ascent.

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