Our new #EconomicResilience Index is out!
EU countries hit hardest by economic crises are still least prepared for the next crises – among them rich countries like Italy.
Why that’s bad, why they are also least prepared for the #greentransition and what to do - a thread🧵1/10
Scandinavian economies are the best-placed to absorb, recover from, and adapt to shocks, with Sweden first in the ranking. Romania, Greece and Bulgaria are the countries at the bottom of the Index. 2/10
Some of EU’s largest economies are not doing well: France ranks 11 out of 25, Spain 18 und Italy 19. The breakdown shows: Divergence is particularly large in the dimensions of Education & Skills and Governance. 3/10
That’s a problem because economic shocks hitting these economies tend to spill-over to the rest of the EU. 4/10
That also means they are comparatively unprepared for the #greentransition. That’s because Resilience is determined by the ability to absorb a shock, recovery from it and adapt to new circumstances. 5/10
Being able to adapt is precisely what countries need to be able to transform their economies. However, absorption and recovery are important too, as countries hit hard by external shocks have a hard time pushing the transition forward (see e.g. Germany and the coal exit). 6/10
So, what to do? Policymakers need to take a holistic approach and learn from the divergences apparent in this Index to build-up the resilience of the weaker countries in order to have higher resilience collectively. 7/10
That means massively investing in less resilient EU countries, particularly with a focus on Education and better Governance. The ongoing negotiations about the EU #fiscal framework are a good place to start building more room for investments. 8/10
However, the Industrial Policy response to the #IRA can also be leveraged to decrease economic dependency and increase cohesion by supporting the growth of industries in economically weak European regions 9/10
Explore all the results and methodology of our #EconomicResilience Index on our website:
zoe-institut.de/en/publication…
Feedback welcome 10/10
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