Launch of the Geoeconomic Interconnectivity Index (GEOII)

As the new Geoeconomic Interconnectivity Index (GEOII) shows, the EU should strategically leverage economic relations in its neighbourhood to remain competitive over the long term with China, Russia and the United States. The index measures interconnectivity in the areas of trade, finance and economic policy between the EU and neighbouring countries. The tool was developed by the Bertelsmann Stiftung in cooperation with the Vienna Institute for International Economic Studies (wiiw) and the European Centre for International Political Economy (ECIPE).

The EU remains the strongest economic power in its neighbourhood – well ahead of China, Russia and the United States. However, its rivals are catching up in key regions. The index measures interconnectivity between 2010 and 2023 – compared to the three major powers China, Russia and the US. It highlights where the European Union has the potential to strengthen its geoeconomic role and where it must be careful not to lose ground. Findings from the index are intended to help fine-tune the EU’s neighbourhood strategies.

Outlook and recommendations
The GEOII shows that market power alone does not ensure influence or create cooperative relationships. The EU must strategically leverage the power of its single market and its economic ties to promote stability and partnerships in its neighbourhood, for example by:

• Updating its accession policy and introducing a phased integration process for the Western Balkans
• Modernising its customs union with Turkey
• Expanding the Global Gateway as the EU’s own strategic infrastructure initiative
• Strategically leveraging markets, capital and regulations to promote stability and cooperative relations