Greater Economic Stability Through Market Regulation.

The Frankfurt School Competence Centre for German and Global Regulation (FCCR) and the Europa-Institut of Saarland University hosted a joint conference on economic security and market regulation on 6–7 June 2024. The FCCR and the Europa-Institut welcomed distinguished speakers from German and European institutions, associations, companies, as well as from the German and international academic community. The conference was organised by Professor Dr Thomas Weck and Dr Philipp Reinhold.

As keynote speaker, Jörg Wuttke, President emeritus of the EU Chamber of Commerce in China, provided an up-to-date overview of the situation of European companies in China and placed EU–China relations in a geopolitical context. Andrew Zvirzdin, Political/Economic Section Chief at the U.S. Consulate General in Frankfurt, delivered an impulse speech outlining the continuities and priorities of U.S. economic security policy.

The conference was structured around the European Commission’s communication “European Economic Security Strategy” of 20 June 2023 and was accordingly divided into four thematic panels:

“Risk Assessment”:
De-risking is not only a matter for the EU and its Member States, but also for market participants. In order to pursue de-risking strategies vis-à-vis countries such as China, it is essential to gain a precise understanding of global value chains and to recognise one’s own limits of action. Countries involved at intermediate stages of production may also be unavoidable trading partners, which complicates de-risking strategies.

“Promoting Competitiveness in the EU (Promoting)”:
The EU’s economic security strategy relies on strategic financial support by public authorities for strategically important sectors of the economy. This is intended to complement EU measures aimed at removing barriers to market entry within the internal market. However, the EU should also remain mindful of the risk that subsidy races between individual Member States could lead to renewed market fragmentation.

“Protecting the EU Economy (Protecting)”:
The EU has already taken measures to counter non-market practices by other states – for example through anti-dumping duties – as well as distortions of fair competition within the internal market, such as through the Foreign Subsidies Regulation. In the future, greater consideration may be given to the fact that investment and export controls can also indirectly contribute to ensuring a level playing field within the internal market.

“Partnering with Third Countries Sharing Common Interests (Partnering)”:
This panel focused primarily on EU–Japan relations. Bilateral partnerships can contribute to legal certainty and promote “friend-shoring,” which refers to relocating business processes to countries that share common values.

The third panel was organised in cooperation with the German Society of International Law (Deutsche Vereinigung für Internationales Recht). The conference was funded by the Internationalisation Fund of Saarland University.

On 29 October 2024, the 6th Frankfurt Regulation Conference will provide the next opportunity to discuss current approaches and application areas of German and international regulation across industries and sectors.