a mechanism to continue to enjoy the benefits of globalisation but on a smaller scale. as an illustration, in 2022, 44 % of global companies were developing regionalised supply networks ( up from only 25 % in 2021 ). evidently, some of the above - mentioned trends may well imply a further slowdown of the globalisation process beyond that observed in recent years, or even result in deglobalisation pressures. the eu response in response to these challenges, the eu has recently been launching a series of policies within the so - called open strategic autonomy agenda : an emerging set of regulatory, structural and fiscal policies that seek to address the eu ’ s economic vulnerabilities arising from geopolitical considerations. under the framework of open strategic autonomy, three types of policies have been proposed to reduce the eu's vulnerabilities. a first set of measures aims to assess supply chain dependencies and vulnerabilities and increase the resilience of the european industrial system. specific examples are the action plan on critical raw materials - aimed at reducing the eu's external dependence in the sourcing of such goods -, the " repowereu " initiative - aimed at reducing the eu's energy dependence -, and plans to drive the digitalisation of european economies. a second set of measures aims to protect eu countries from possible abusive practices adopted by third economies - practices that may be related to strategic or political objectives. these measures include those aimed at monitoring foreign direct investment flows from third countries and other measures designed to limit coercive actions against european companies. a third class of measures aims to preserve the international level playing field by compensating for competitive disadvantages that eu companies might face due to less stringent environmental and state aid policies implemented by third countries. examples are the regulation on foreign subsidies that distort the internal market and the carbon border adjustment mechanism ( cbam ). other countries have started to include geopolitical considerations in their economic policy decisions as well. foremost among these is the recent move by the us to restrict exports of semiconductors and advanced chip - making manufacturing equipment to china, and the adoption of the inflation reduction act, which provides tax credits to clean energy and electric car producers conditional on assembly and production in north america. in the particular case of the eu, and with a view to at least partially offsetting the costs of deglobalisation and to ensure a more robust and resilient eu economy, in my view strategic autonomy

” ) may increase. in contrast, additional public investment can help to expand potential output and reduce price pressures. 24 five, any period of policy change comes with higher policy uncertainty. more frequent geopolitical tensions generate uncertainty and, in turn, uncertainty is shown to have an impact on investment, especially investment in intangibles and technology adoption. 25 all in all, a reconfiguration of the globalisation process may have an impact on prices and productivity. in addition, these developments may affect the structural forces that shape the transmission channels of monetary policy. however, given the elevated uncertainty regarding both the nature of these trends and their impact, monetary policy should not overreact to the potential supply - side effects of a change in the nature of globalisation in the short run, but should keep track of its long - run effects on the structure of the economy. in other words, policymakers should act cautiously and, in the case of monetary policy, its medium - term orientation should be maintained. let me conclude by saying that multilateral dialogue in open, rules - based multilateral fora should, in my view, be the way to approach the fascinating environment i have just described. beyond economic costs, vulnerabilities, and policy trade - offs, the key loss resulting from a step - back from “ globalisation ” due to geopolitical considerations would be the mutual benefits that all societies currently draw from interconnections in all dimensions of life. we are bound together by non - divisible, common challenges, like climate change, and we have witnessed in recent decades the massive benefits and progress that global airaudo, f., pappa, e., and seo ane, h. ( 2022 ). “ greenflation : the co st of the green transition in small open eco nomies ”. mimeo. blo o m, n., bo nd, s. and reenen, j. van ( 2007 ). “ uncertainty and investment dynamics ”. the r eview of economic studies, vo l. 74, issue 2, pp. 391 - 415. integration of goods, services and people has generated. the latter should not be given up, at least as an aspiration.