Geo-Economics in Transition: Adapting to Global Economic Fragmentation in Central and Eastern Europe

Recent economic and geopolitical tensions have sparked discussions about an emerging shift in global trade marked by growing concerns over global economic fragmentation (GEF). This trend is characterized by the decline of global economic coordination, weakened trade flows, and the formation of geo-economic blocs. As trade policy becomes more protectionist and capital flows slow, countries are increasingly turning to regional trade agreements and reshoring production. The global shift has been accelerated by key developments such as the China-US trade war, the COVID-19 pandemic, Russia’s invasion of Ukraine, and rising protectionism in major economies. However, the true scale and long-term impact of the GEF remain uncertain.

In this context, Central and Eastern Europe (CEE) faces its own unique challenges and opportunities. Yet, the national implications are diverse across the region. How will GEF trends reshape the economies and impact the national growth models of these countries? What are the strengths and weaknesses of CEE economies in navigating this new geopolitical and economic landscape? What role will reshoring, friendshoring, and nearshoring play in the future of CEE’s trade and economic growth? How should CEE governments respond to the shifting international trade environment, particularly regarding foreign investment and industrial policies?

This panel brings together experts to examine the dynamics of the GEF and its specific impact on CEE, analyze how the region’s diverse trade-growth models are adapting to GEF-related shifts, and highlight opportunities and challenges for CEE countries.

For more information, please contact Zsuzsanna Végh ([email protected]).

The German Marshall Fund of the United States (GMF) is a nonpartisan policy organization committed to the idea that the United States and Europe are stronger together.