Economic policy: Financial expert calls for more EU cooperation to ensure security of supply.

Economic policy: Financial expert calls for more EU cooperation to ensure security of supply.

According to a report by www.morgenpost.de,

Economic experts have presented proposals to strengthen security of supply in Germany. They advocate increased cooperation at the European level in order to reduce dependence on other countries, especially for critical goods. The Scientific Advisory Board of the Federal Ministry of Economics emphasized that the German economy is particularly vulnerable to uncertainties in international supply chains due to its strong industrial base and the high degree of openness of the market.

Trade statistics do not show a great dependence on individual importing countries, but this could be different for important raw materials. The advisory committee warned of the possible effects of a decoupling from Germany on electronic products and IT services. If supply relationships were to cease, significant losses in value creation amounting to billions could occur.

However, the experts warned against hasty political measures to contain these fluctuations, as these could often be counterproductive and short-term oriented. They see EU free trade agreements and greater involvement of the EU in trade policy as important instruments for securing supplies.

The establishment of a European Office for Security of Supply and the coordination of common strategic reserves of key raw materials are recommended as possible measures to ensure security of supply.

Given these proposals, it is likely that future policy will focus more on cooperation within the EU to ensure security of supply. The impact could bring significant changes in trade policy and relations with other countries. The establishment of a European Security of Supply Office could also have a direct impact on the availability of certain raw materials and products.

Increased cooperation at European level could also help reduce value creation losses in the event of a possible decoupling in the electronics and IT sectors. Stronger protection of foreign investments by German companies could help reduce risk.

The above measures clearly show that politics and economics are closely intertwined and that political decisions can have a significant impact on the market and the financial sector. It is therefore important to keep an eye on these developments and to carefully analyze their possible effects.