Tension within the European Union

After decades of military downsizing, German military spending is woefully inadequate to meet the new strategic challenge posed by Russia—as both a new report by the Kiel Institute for the World Economy and the new Kiel Military Procurement Tracker show. In combination with a cumbersome national procurement system and depending on weapon systems it would take Germany as much as a century to bring its military inventory up to the level of 20 years ago. In contrast, Russia is radically increasing its capacity to produce armaments, including advanced systems, and is now in a position to produce as many weapons in six months as all of Germany’s armed forces currently field.

The motivation behind the West's and China's granting of loans to African countries differs considerably. Western countries are more likely to lend to resource-poor and highly indebted African countries than China. China's lending to Africa is more driven by its economic interests, lending to countries with richer resources, lower risk of default, and higher willingness to pay for loans. These conflicting interests jeopardize much-needed debt relief for African countries, according to a new study by the Kiel Institute that examines lenders’ motives for lending to African countries.

Starting on July 4, 2024, the European Union will impose provisional countervailing duties of on average 21 percent on battery electric vehicles (BEVs) imported from China. This decision follows an investigation that found evidence of WTO-incompatible subsidies for Chinese BEVs. The EU is now the last major market to establish new trade barriers against Chinese BEVs. While imports of Chinese vehicles may significantly decrease, the long-term impact on electric vehicle prices is expected to be minimal. It could be particularly advantageous for the EU to now adjust its tariff policies towards other WTO members as well.

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.