CEPS Project

Analysis of developments in EU capital flows in the global context


This project presents the analysis of the main trends and developments in global and EU capital movements observed until 2019 and the challenges brought about by the Covid-19 pandemic. The report covers the following topics:

  • In section 2 trends in advanced economies are complemented by an overview of the situation in EMEs and developing countries.
  • Section 3 looks at the recent debate about how to enhance the international role of the euro.
  • Section 4 offers an overview of the intra-EU capital flows. The second part focuses on the evolution of flows across clusters of member states over the last two decades. The third part includes an overview of the several measures of resilience of financial integration. The last part focuses on the euro area and inspects intra-Eurosystem positions, including TARGET2, and their meaning for financial integration.
  • Section 5 is devoted to EU FDI. It develops an in-depth analysis of EU inward FDI position, driven by intra and extra EU flows, with the purpose of distinguishing real from flows from those channeled by Special Purpose Entities (SPEs). The final outcome is the identification of the EU members states FDI network
  • Section 6 investigate the potential impact of trade policy uncertainty on EU FDI. The main focus of the section is EU-US FDI, as US is the main source of trade uncertainty at global level and the main investment partner of the EU.


View the set of data visualisations produced for this project here.

Cinzia Alcidi

Director of Research

+32 (0)2 229 39 58

Farzaneh Shamsfakhr


Doina Postica

Research Assistant

Daniel Gros

Distinguished Fellow

+32 (0)2 229 39 38

Mattia Di Salvo

Associate Researcher

+32 (0)2 229 39 76