Geoeconomic Rivalry and EU Economic Security: A Hybrid Governance Model of Economic Policy Transformation

Abstract

This article examines how intensifying geoeconomic rivalry reshapes European Union (EU) economic governance through the lens of economic security. In response to the fragmentation of the global economy and the politicisation of interdependence, the EU seeks to balance openness with the need to reduce strategic vulnerabilities. The study employs a concept-driven qualitative policy analysis based on the systematic examination of EU strategic and regulatory documents, complemented by interpretative analysis and analytically oriented comparison. Applying an original analytical framework, the study links systemic geoeconomic pressures, EU policy instruments and internal political-economy dynamics to explain the emergence of EU economic security as a hybrid governance model. The findings show that EU economic security does not emerge as a coherent doctrine but as a hybrid governance model combining the promotion of competitiveness, the protection of strategic assets and the development of partnerships. This model is shaped not only by external pressures but also by distributive effects, Member State preferences and institutional constraints. The analysis further identifies key trade-offs between efficiency and resilience, openness and control, and integration and fragmentation. The article concludes that EU economic security represents a structurally conditioned balancing process reflecting the adaptation of an open economic model to the conditions of increasing geoeconomic competition. In doing so, the article also contributes to debates on sustainable economic governance by showing how the EU’s pursuit of economic security affects long-term resilience, social cohesion and the normative foundations of its open economic model.