Europe is less dynamic than other areas in the world. The European Union will lose its position as the largest economic region, with the share in world output decreasing to less than 15% in 2050. This article designs a strategy based on which Europe can increase its internal dynamics, connect with its dynamic neighborhood and stabilize its eastern and southern regions. These regions are currently searching for development paths different from those in the US and China. The envisaged strategy learns from past errors, counteracts “my country first calls”, balances uneven trade and investment pacts, and prevents land and resource grabbing. A new partnership strategy with neighbors in Eurasia, the Middle East and Africa will enable Europe to overcome its growth fatigue. It could help to reshape globalization and convert the current “ring of fire” into a “ring of friends”. Then, together with its neighbors, Europe could still be an important economic region in 2050, on par with China and larger than the US plus its neighbors.
|Pages (from-to)||39 - 54|
|Journal||Review of Economics and Finance|
|Publication status||Published - 2018|