Intereconomics | 2026
Authors: Demertzis M.; Fiorito A.
DOI: 10.2478/ie-2026-0007
Journal: Intereconomics
Year: 2026
Publisher: Sciendo
Document Type: Article
Open Access: All Open Access; Gold Open Access
Cited by: 1
Debates on the EU’s economy focus on the competitiveness gap, a narrative that encourages export-first policies. This is the wrong focus, as prosperity depends mainly on domestic productivity. Therefore, the EU’s key challenges are weak productivity and, more recently, economic security. Trade can help address both issues primarily via imports: access to capital goods, intermediates and energy raises efficiency and reduces vulnerability. Hence, “protecting trade” should prioritise keeping critical import channels open, diversified and contestable, with export-oriented policy only becoming primary under binding external financing or hard-to-rebuild market presence. This article assesses EU measures – limited tariffs, diversification partnerships and trade deals – as well as strategic domestic capacity, and proposes rebalancing away from surplus-led growth. © The Author(s) 2026.