Monthly Report No. 9/2025

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Vasily Astrov, Georg Fischer and Grzegorz W. Kolodko

wiiw Monthly Report No. 9, September 2025
53 pages including 1 Table, 25 Figures and 2 Boxes

Current issues accessible exclusively for Members. Free access after an embargo period of six months.

  • Western sanctions have pushed Russia into China’s embrace
    by Vasily Astrov
     
  • How to revive the Belt and Road Initiative in times of geopolitical turbulence
    by Grzegorz W. Kolodko
    We hear increasingly that globalisation is over, especially as we know it. China, however, views matter differently, demonstrating unwavering energy in harnessing globalisation for its own development, while also intentionally striving to give it a more inclusive face. From this perspective, it is worth examining how the Belt and Road Initiative is used for these purposes, and why, in relation to Central and Eastern Europe, it has developed only on a modest scale so far.
     
  • Social Europe: recent developments
    by Georg Fischer
    Procyclical fiscal policy, pressures to reduce wages and social-spending cuts pursued in the aftermath of the Great Recession of 2009 led to social divergence across the EU and rising inequality within member states. This started to jeopardise the legitimacy of the European project and resulted in the adoption of the European Pillar of Social Rights (EPSR) in 2017, which includes important initiatives in such areas as the free movement of workers, labour law, social protection and the creation of targeted EU funds. During the next crisis – the COVID-19 pandemic – the policy response was much more accommodative, resulting in far better economic and social outcomes, notably in Southern Europe.
     
  • The new European Commission and the future of Social Europe
    by Georg Fischer
    Social Europe is currently facing a raft of challenges, including the housing crisis, poverty, the rise of non-standard work, the digital and environmental transition, population ageing and, most recently, the shifting of policy priorities towards security and defence. In order to cope with these challenges, further progress is needed in EU policy-making in such areas as the coverage of unemployment benefits, labour rights and digitalisation, as well as digital skills, adult education and gender equality.

 

Reference to wiiw databases: wiiw Monthly Database, wiiw FDI Database

Keywords: economic sanctions, trade dependence, Belt and Road Initiative, R&D, infrastructure investments, European Pillar of Social Rights, Great Recession, COVID pandemics, social and labour market policies, EU budget, digital and environmental transition, population ageing, social and labour market policies

Countries covered: CESEE, China, EU, Russia, Ukraine

Research Areas: Labour, Migration and Income Distribution, International Trade, Competitiveness and FDI


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