Expert report

Instruments of a strategic foreign economic policy

Study by IfW Kiel, Bruegel and DIW Berlin PDF Download

The separation of security and economic objectives in foreign policy, which was often sought in international political issues in the past, has outlived its usefulness. The transition to a more power-based order can be felt around the world. International economic instruments and agreements are increasingly used to achieve various foreign policy goals. These are simultaneously used to promote own political interests, sometimes to the detriment of partner countries. This "weaponized interdependence" makes it necessary for Germany and the European Union to assess their vulnerabilities and to design their own defensive and offensive strategies.

The Kiel Institute for the World Economy, together with DIW Berlin and Bruegel, has produced a study on behalf of the Federal Foreign Office that addresses the objectives, instruments, and trade-offs of a strategic foreign economic policy and describes how to deal with them in the context of German and European policy making.


Kerstin Bernoth
Jacqueline Dombrowski
Prof. Gabriel Felbermayr. Ph.D.
Gabriel Felbermayr
Mia Hoffmann
Sebastian Horn
Karsten Neuhoff
Niclas Frederic Poitiers
Malte Rieth
Pauline Weil
Guntram Wolff
Georg Zachmann


JEL Classification
F4, F5, L5, Q58