Monthly Report No. 2/2025
Javier Flórez Mendoza, Hubert Gabrisch, Grzegorz W. Kolodko, Andreas Lichtenberger and Oliver Reiter
wiiw Monthly Report No. 2, February 2025
48 pages including 1 Table and 26 Figures
Current issues accessible exclusively for Members. Free access after an embargo period of six months.
- Chart of the month: Military spending in Europe on the rise
by Andreas Lichtenberger
- Opinion Corner: What can other countries learn from Poland’s transition experience?
by Grzegorz W. Kolodko
In times of great turbulence in the world and the European economies, it is worth looking at the example of the greatest European success in development policy: Poland over the last three decades. Furthermore, Poland is still the fastest-developing country in Europe. It is worth looking at what policy mistakes were committed and how the country’s success came about. Others could benefit from this knowledge.
- The European Union after the Draghi Report: Too powerless to reform
by Hubert Gabrisch
In light of the emerging conflict between the US and China, the Draghi Report describes a catastrophic state of innovative capacity in the European Union. The reaction of the European Council and the Commission offers little hope that this state of affairs can be properly rectified.
- US tariffs on Canada, China and Mexico and their effect on Central and Eastern Europe
by Javier Flórez Mendoza and Oliver Reiter
We use a state-of-the-art trade model to estimate the effects of a trade war initiated by the US against Canada, China and Mexico, as well as possible implications for the countries of Central and Eastern European of retaliation by those three countries. We find that while positive welfare effects are possible, those would be due to rising tariff revenues; real wages, however, are always lower compared to the situation without a trade war.
- Monthly and quarterly statistics for Central, East and Southeast Europe
Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database
Keywords: military expenditure, market reforms, shock therapy, ‘Strategy for Poland’ programme, Draghi Report, Banking and Capital Markets Union, EU governance, EU treaties, import tariffs, trade model of Caliendo and Parro, welfare, real wages, exports
Countries covered: Austria, Canada, China, EU-CEE, European Union, Mexico, Poland, Slovakia, US
Research Areas: Macroeconomic Analysis and Policy, International Trade, Competitiveness and FDI, Sectoral studies