Tension within the European Union

An analysis by the Brussels-based research institute Bruegel and the Kiel Institute for the World Economy estimates the costs and requirements if Europe has to defend itself against Russia without the support of the USA. According to the estimations, considerable defense investments of around EUR 250 billion per year would be necessary to effectively counter Russian military force.

Over the past 3 years of war, donor countries have provided a low but continuous flow of support to Ukraine, with a value of about EUR 80 billion per year. European donors have been the main source of aid to Ukraine since 2022, especially when it comes to financial and humanitarian aid. At the same time, we observe a shift towards weapon procurement. In the initial phase of the war, military aid to Ukraine mostly came from existing arsenals of donor countries, but these have emptied over time. Today, the large majority military aid is newly produced weaponry from Western defense industries—with a small but growing role of multilateral weapon procurement initiatives. These are the findings of the latest update of the Ukraine Support Tracker, which tracks aid up to December 2024.

Pursuing a European approach to international trade policy—the agenda of the Kiel Institute calls for a robust EU response to geopolitical tensions, protectionism, and economic uncertainties. China's dominance in key industries, the looming threat of U.S. tariffs under Donald Trump, and Europe’s waning competitiveness require a unified European strategy. A strengthened single market and a strategic trade policy—one that fosters openness, liberalization, and new partnerships, e.g. with Africa—are essential to bolstering Germany’s and the EU’s resilience while maintaining parity with the U.S. and China in the long term.

MEDAM is a research and consulta­tion project that aims to identify and close the gaps in existing research and to develop research-based solutions for European asylum and immigration policies. Starting from an economic perspective, MEDAM looks at the bigger picture seeking better outcomes for all stakeholders.

The global economy is currently confronted with far-reaching changes, including in particular the ecological transformation and adaptation to climate change, which is promoting regional disparities and conflicts.

Exploring the driving forces and diverse impacts of international development processes, focusing on the global and regional interconnections of countries, companies, and the mobility of people, goods, and capital.

The Research Center “International Finance” investigates the risks and opportunities of financial globalization, including political risks.

The Research Center conducts research into the causes and consequences of financial instability, geo-economic developments, the development of income and wealth inequality and questions of political economy.