The concept of dependency has been at the center of most recent policy debates. The German economy's dependence on exports, Europe's military dependence on the USA and, not least, the Germans' dependence on Russian gas - dependencies seem omnipresent and at the same time hardly solvable.
Dependence - What does it mean and where does it exist?
German Economic Institute (IW)
The concept of dependency has been at the center of most recent policy debates. The German economy's dependence on exports, Europe's military dependence on the USA and, not least, the Germans' dependence on Russian gas - dependencies seem omnipresent and at the same time hardly solvable.
However, dependencies only become a problem when relationships between states are reconfigured, or unforeseen events suddenly disrupt the geoeconomic order. In this study, we try to define different types of dependencies and ask when do they exist and when do they become a problem. Therefore, we will approach the concept of dependency by proposing a broad definition that includes political dependencies in addition to geoeconomic dependencies. The results show that while Germany's economic dependencies may be relatively small in international comparison, major dependencies can be identified in the area of mineral fuels and raw materials. Moreover, dependency can only unfold its full problematic nature in its absolute dimension. In addition, there are phases in which certain dependencies become problematic because conflicts arise between countries and economic dependencies are used as political weapon. Politically, Germany has placed itself in an intentional dependency on the other EU member states and the USA and faces the necessary challenge of global coordination of the climate protection due to the international interdependence in this area.
Dependence - What does it mean and where does it exist?
German Economic Institute (IW)
More on the topic
Crypto regulation in the EU
FC Bayern Munich footballers advertise for the crypto exchange Bitpanda, Crypto.com advertised with rapper Eminem during the NBA playoffs of the Los Angeles Lakers basketball team, whose arena was renamed “Crypto.com Arena” in 2021.
IW
The EU and money: Who pays, who gets?
The German net position fell slightly in 2023 compared to the previous year, from 19.7 billion euros to 17.4 billion euros. However, it is still significantly higher than in the pre-Brexit period.
IW