{"id":59060,"date":"2025-09-23T11:36:30","date_gmt":"2025-09-23T09:36:30","guid":{"rendered":"https:\/\/www.ludovika.hu\/?p=59060"},"modified":"2025-09-29T11:41:34","modified_gmt":"2025-09-29T09:41:34","slug":"lets-focus-more-on-economic-sovereignty","status":"publish","type":"post","link":"https:\/\/www.ludovika.hu\/en\/blogs\/the-daily-european\/2025\/09\/23\/lets-focus-more-on-economic-sovereignty\/","title":{"rendered":"Let\u2019s Focus More on Economic Sovereignty!"},"content":{"rendered":"\n<p><strong>The\u00a0classical concept of sovereignty\u00a0in international law and political theory traditionally refers to the\u00a0supreme and unrestricted authority of the state, ensuring that a state is legally independent of any external influence.<\/strong><\/p>\n\n\n\n<p>This perspective still dominates political and legal discourse today: debates about sovereignty are mostly framed in legal terms. However,&nbsp;<strong>global economic interdependence, financial markets, international supply chains, and technological dependencies<\/strong>&nbsp;present new challenges for states. In the twenty-first century,&nbsp;<strong>economic sovereignty&nbsp;<\/strong>\u2014 the ability of a state to effectively control strategic resources, maintain financial stability, and steer long-term economic development \u2014 has increasingly become the&nbsp;<strong>true benchmark of self-determination<\/strong>.<\/p>\n\n\n\n<p>For most states,&nbsp;<strong>legal sovereignty is no longer in question<\/strong>. The UN Charter and the fundamental principles of international law \u2014 especially the equality of states and the prohibition of interference in domestic affairs-guarantee formal independence. By contrast,&nbsp;<strong>economic sovereignty is far less obvious and far less absolute<\/strong>. Even the United States and China are not self-sufficient in every field and remain dependent on forces beyond their borders, which they naturally seek to reduce. Economic sovereignty, unlike classical legal sovereignty, is&nbsp;<strong>relative rather than absolute<\/strong>, and its key feature is the&nbsp;<strong>extent and quality of mutual dependencies<\/strong>.<\/p>\n\n\n\n<p>International trade and global supply chains create complex webs of interdependence. Moreover,&nbsp;<strong>international organizations, global corporations, and NGOs now exercise economic power that competes with that of states<\/strong>. This means that the subjects of economic sovereignty are&nbsp;<strong>not only states<\/strong>, but also&nbsp;<strong>large corporations, NGOs, and international bodies<\/strong>&nbsp;that often command greater economic resources and influence than many nations. In the digital sector,&nbsp;<strong>Big Tech companies such as Google, Apple, Amazon, and Meta<\/strong>&nbsp;possess capital, data, and innovation capacities on a scale that allows them to act as&nbsp;<strong>quasi-sovereign economic players<\/strong>. Similarly, the&nbsp;<strong>World Trade Organization (WTO)<\/strong>&nbsp;and the&nbsp;<strong>International Monetary Fund (IMF)<\/strong>&nbsp;exert significant influence on the economic policies of their member states through trade dispute settlement and lending conditions.<\/p>\n\n\n\n<p>Membership in international organizations such as the&nbsp;<strong>European Union or the WTO<\/strong>&nbsp;involves a&nbsp;<strong>voluntary sharing of sovereignty<\/strong>, which inevitably limits a state\u2019s room for economic maneuver. For members of the euro area, the&nbsp;<strong>loss of an independent monetary policy<\/strong>&nbsp;is particularly sensitive. At the same time, joining a common market \u2014 or even concluding a treaty on the&nbsp;<strong>avoidance of double taxation&nbsp;<\/strong>\u2014 can&nbsp;<strong>strengthen a state\u2019s actual economic security<\/strong>.<\/p>\n\n\n\n<p>In everyday language, politics, and academia, the concept of sovereignty is still used primarily in its&nbsp;<strong>legal sense<\/strong>, even though the realities of the twenty-first century call for&nbsp;<strong>placing its economic dimension at the forefront<\/strong>. Legal independence alone does&nbsp;<strong>not guarantee genuine self-determination<\/strong>&nbsp;if key areas of economic decision-making\u2014such as&nbsp;<strong>energy, finance, and technology\u2014are shaped by external actors<\/strong>.<\/p>\n\n\n\n<p>Analyses by&nbsp;<strong>Mario Draghi, Enrico Letta<\/strong>, and several other EU reports all point to the same conclusion: a&nbsp;<strong>lack of, or a dramatic decline in, economic sovereignty<\/strong>. The experience of EU Member States in the twenty-first century makes it clear that the&nbsp;<strong>real measure of sovereignty today is no longer primarily the fulfillment of a legal concept, but the degree of economic and technological autonomy a country can achieve<\/strong>.<\/p>\n\n\n\n<p><em>Photo source: depositphotos.com<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Today, legal sovereignty is not an issue in most states.<\/p>\n","protected":false},"author":326,"featured_media":58000,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1506],"tags":[4563,4493],"class_list":["post-59060","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-daily-european","tag-european-union-en","tag-politics-en"],"featured_image_src":"https:\/\/www.ludovika.hu\/wp-content\/uploads\/2025\/09\/eu-econ_16x9-scaled.jpg","author_info":{"display_name":"Matuz J\u00e1nos","author_link":"https:\/\/www.ludovika.hu\/en\/author\/matuzjanos\/"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Let\u2019s Focus More on Economic Sovereignty! 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