Europe in a new world order

Author
Maria Demertzis, André Sapir, Guntram Wolff
Content Type
Policy Brief
Institution
Bruegel
Abstract
The United States is the European Union’s most important trade and bilateral investment partner, which has, until now, supported a multilateral trade system and European integration and has provided a security guarantee to the countries of the EU. But like other advanced economies, the US’s relative weight in the global economy has declined. The new US administration seems intent on replacing multilateralism with bilateral deals. In trade, it aims to secure new trade deals in order to reduce bilateral trade deficits and to protect, in particular, the US manufacturing sector. In climate policy, the US commitment to the Paris Agreement is being questioned. In defence, the security umbrella appears less certain than previously. The overall promise behind this change of direction is to put ‘America first’ and deliver better results for US citizens.
Topic
International Political Economy, International Trade and Finance, Bilateral Relations, Multilateral Relatons, Political stability
Political Geography
Europe, United States of America