Austrian linkages to the European economy and the transmission mechanisms of economic crisis

Client/Funding Institution

Austrian Ministry of Economy, Family and Youth


The goal of this project was to develop a new concept called ‘strategic fragmentation’ which is used to explore how stronger interconnectedness between EU Member States could lead to lower vulnerability and hence to more freedom of action in economic and foreign policy. The economic value of energy solidarity mechanisms and more interconnection capacity between Member States was assessed and simulated numerically. For this purpose a model of strategic fragmentation has been developed which yields costs and benefits of various policy concentration options for EU Member States.


June 2010 - November 2010

wiiw team Leader

Joseph F. Francois

wiiw Staff

Mario Holzner, Olga Pindyuk

Keywords: macroeconomic analysis

Countries covered: The World

Research Areas: Macroeconomic Analysis and Policy