Tension within the European Union

The European Central Bank (ECB) is expected to cut its deposit rate by 25 basis points to 2.25 percent today. Lena Dräger, an expert on monetary policy, and trade researcher Julian Hinz see the move as a further step toward monetary easing, but are calling for a stronger signal in view of the economic risks to the real economy and financial markets, particularly those arising from the escalating trade policy of the US.

Since the Trump administration took office, US aid to Ukraine has come to a standstill, while Europe has consistently maintained its support, widening the gap in total allocations: The European continent has now allocated EUR 23 billion more than the United States. This is shown in the latest update of the Ukraine Support Tracker, which covers aids until February 2025. Smaller countries like Estonia and Denmark contribute disproportionately relative to their economic size—while larger economies such as Germany, France, and Spain are being called upon to play a more significant role.

The newly announced tariffs by the US administration on imports from nearly all countries could have severe negative economic consequences—most notably for the United States itself. Other countries are significantly less affected, with Germany and the EU only moderately impacted by comparison.

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.