From Economic Openness to Strategic Capacity: The European Union as a Hybrid Geoeconomic Actor

The European Union now routinely leverages economic governance to tackle strategic vulnerabilities caused by geopolitical rivalry, foreign dependencies, and supply chain shocks. This article analyses this shift, exploring how the EU adapts its economic toolkit and what restricts its capacity to act as a geoeconomic power. It builds an analytical framework connecting external pressures, strategic vulnerabilities, policy choices, and institutional barriers. Methodologically, the study combines qualitative document analysis of EU policy frameworks with trade metrics and evidence from the Geoeconomic Interconnectivity Index. The findings show a clear expansion in investment screening, anti-coercion tools, targeted industrial policy, and supply-chain diversification—all aimed at safeguarding core sectors and curbing asymmetric exposure. These steps mark a departure from purely regulatory-market logic towards a hybrid model blending market openness, defensive controls, and capacity-building. Persistent institutional splits, conflicting national priorities, technological gaps, and reliance on foreign markets limit the effectiveness of this transition. Ultimately, the EU’s evolving geoeconomic stance aims not for total self-sufficiency, but for the deliberate, strategic management of interdependence.