10 Recommendations for a new European Economic Foreign Policy

In the current geopolitical context in which multilateralism comes under threat, the European Union (EU) and its national governments have the opportunity to clearly define their position in the world and their geoeconomic interests. The next five years are critical to showcase the EU’s commitment to enhanced cooperation, preserve multilateralism, and form deeper economic partnerships with key countries.

Equally important is the EU’s engagement beyond the G20, ensuring trust and cooperation with traditional partners such as Small Island Developing States (SIDS) and Least Developed Countries (LDCs). These countries are pivotal in global climate and development efforts, so it is crucial to preserve and nurture decades of trust earned through inclusive and principled leadership. Without a more impactful and visible international role, the EU risks yielding influence to competing powers. 

Our new report, “Recommendations for a new European Economic Foreign Policy”, shows how Europe can redefine its role in the world, asserting its geoeconomic interests also through meaningful partnerships. A more impactful and visible diplomatic strategy is essential at times when the current US administration is retreating from multilateralism, and many emerging economies are claiming geopolitical recognition in every corner of the globe. 

The European Commission’s upcoming publication on climate and energy diplomacy can set out the vision for the EU’s role in the world. It can define concrete priorities for cooperation,  the 30th UN climate summit (COP30) and boosting “Team Europe” in advancing a new joint agenda. 

The report identifies 10 concrete recommendations:

1. Strengthen mutually beneficial trade relations as the US administration creates tariffs. 
2. Boost finance and business involvement for clean technology in the Global South.
3. Show credibility with bold climate targets for 2035 and 2040.
4. Align economic, trade, and finance policies to strengthen global partnerships.
5. Revamp the Global Gateway to mobilise more finance and deliver impact.
6. Demonstrate the value of multilateralism through visible engagement in international processes.
7. Collaborate with broad alliances on solutions to further close the 1.5°C gap at COP30.
8. Use the Global Energy Transition Forum to advance the just, equitable, and orderly energy transition across the world.
9. Become a driving force to advance multilateral agreements, preventing backsliding at bilateral summits.
10. Enhance communication to counter disinformation and highlight diplomatic successes.