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Hubertus Bardt / Klaus-Heiner Röhl / Christian Rusche in The Economists' Voice External Publication 21. June 2022 Subsidizing Semiconductor Production for a Strategically Autonomous European Union?

The COVID-19 pandemic has highlighted the vulnerability of international supply chains and the dependency of the economy of the European Union (EU) on goods from non-EU countries. The scarcity of microchips that has persisted since the COVID lockdowns has laid bare the dependency of the EU on overseas producers of this essential high-tech product.

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Subsidizing Semiconductor Production for a Strategically Autonomous European Union?
Hubertus Bardt / Klaus-Heiner Röhl / Christian Rusche in The Economists' Voice External Publication 21. June 2022

Subsidizing Semiconductor Production for a Strategically Autonomous European Union?

German Economic Institute (IW) German Economic Institute (IW)

The COVID-19 pandemic has highlighted the vulnerability of international supply chains and the dependency of the economy of the European Union (EU) on goods from non-EU countries. The scarcity of microchips that has persisted since the COVID lockdowns has laid bare the dependency of the EU on overseas producers of this essential high-tech product.

The Russian attack on Ukraine has magnified this issue due to the close economic ties and geographic proximity between the EU and both countries. While ensuring production capability in a crisis is primarily the task of enterprises themselves, a supply disruption can also have tremendous consequences for an entire economy and therefore justify state interventions. The EU has reacted to these circumstances with its concept of Open Strategic Autonomy and the initiative for an EU Chips Act. This concept of autonomy should entail the incorporation of the benefits of an open economy and the aspiration of the EU to co-determine the global framework in a favourable way. But it also calls for more market interventions. However, these require an economic and political justification and close monitoring. The measures should be discussed with international partners in order to prevent retaliation measures or international subsidy races.

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Subsidizing Semiconductor Production for a Strategically Autonomous European Union?
Hubertus Bardt / Klaus-Heiner Röhl / Christian Rusche in The Economists' Voice External Publication 21. June 2022

Subsidizing Semiconductor Production for a Strategically Autonomous European Union?

German Economic Institute (IW) German Economic Institute (IW)

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Europe votes: Who cares and why?
Matthias Diermeier / Judith Niehues / Samina Sultan IW-Report No. 29 7. June 2024

Europe votes: Who cares and why?

This study, based on the IW-People Survey 2024, shows that around 62% of Germans consider the election of the European Parliament to be important. This is the result of around 5,200 respondents. The proportion is therefore roughly as high as the voter turnout ...

IW

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Samina Sultan at IEP@BU Policy Brief External Publication 17. April 2024

Not so Different?: Dependency of the German and Italian Industry on China Intermediate Inputs

On average the German and Italian industry display a very similar intermediate input dependence on China, whether accounting for domestic inputs or not.

IW

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