Towards a World Integrated and Socio-economically Balanced European Economic Development Scenario

POLICY RECOMMENDATIONS

Carbon Border Adjustment Mechanism for resilient and sustainable EU value chains?
Since 2008, the EU’s carbon footprint has decreased by 21%, but offshoring continued to result in the growth of emissions by 6%. Indirect emissions were the main contributor to the changes. This underlines the need for CBAM to expand its coverage to intermediates, as well as final goods, which other research highlights is a long standing request from some EU industries.
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Economic Security Strategy calls for Regional Policies
While Europe certainly needs a New Normal trade policy to restore a level playing field in international trade, there are questions about the costs of this shift and whether these costs will affect regions differently. TWIN SEEDS provides answers to these questions, through the simulation of GDP growth rates at NUTS2 level for all EU member countries (+ UK) under the assumptions of this new trade policy.
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GVCs reconfigurations call for place-based industrial policies
The crucial question is whether reshoring can relaunch employment growth, and if so, whether this is the case across Europe. TWIN SEEDS provides answers to these questions, by studying the capacity of backshoring to relaunch manufacturing employment and, in particular, its ability to renew industrial capacity in traditionally manufacturing regions.
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International trade under attack: Policies to better defend the EU from a tariff war
The TWIN SEEDS project addressed this issue by forecasting what happens to welfare of European citizens in a trade war and how the EU could best riposte. Researchers modelled a retaliatory escalation of a tariff war between the US and the EU after the mid-April 2025 “Liberation Day”, where the US administration announced an additional 20 percentage point tariff rate on imports from the EU to the US.
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TWIN SEEDS

Towards a World Integrated and Socio-economically Balanced European Economic Development Scenario

TWIN SEEDS is a research project funded within the Horizon Europe program led by Politecnico di Milano (Grant agreement ID: 101056793)

The project studies the recent evolution of Global Value Chains (GVC), with the aim of understanding the role played by technological transformations and geopolitical and policy shifts in shaping these changes. Thanks to the joint effort of eleven universities and research institutions from eight EU countries, TWIN SEEDS is expected to enrich the European debates and public policies aiming at economic prosperity, social cohesion and environmental quality in the light of the still unknown effects of GVC reconfiguration.

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IN THE PRESS

OUR OBJECTIVES

1

Explore

Explore the geographical reorganization of GVC under these transformative geopolitical, economic and technological conditions, paying particular attention to key players within GVC, especially MNEs and their production networks.

2

Highlight

Highlight the effects of the challenges posed by the Covid-19 pandemic to trade relations and GVCs in general.

3

Analyse

Analyse how recent and emerging technological development and GVC restructuring have impacted on social inequalities.

4

Construct

Construct optimal, multifaceted scenarios for a spectrum of interrelated policies in the key policy areas of trade and investment, competition and social policies.

NEWS & EVENTS

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