The European Economic Area (EEA), originally conceived to deepen economic integration among European nations, must now evolve into a dynamic platform for fostering collaboration with Asian economies. This evolution is not merely about expanding trade but about establishing itself as a trait d’union —a bridge connecting diverse economic ecosystems across continents. By focusing on economic cooperation rather than military expansion, the EEA can act as a stabilizing force that promotes prosperity without escalating geopolitical tensions or overlapping with NATO’s security agenda. NATO, as a military alliance, plays a crucial role in ensuring collective defense and deterrence in Europe. However, its focus on armament and strategic positioning risks exacerbating existing tensions if extended beyond its traditional scope. In contrast, the EEA operates within a distinct domain: it leverages economic tools such as trade agreements, investment frameworks, and infrastructure development to build trust and interdependence among nations. In developing and enhancing these areas, the EEA avoids militarization and instead becomes a catalyst for long-term stability, where mutual economic interests outweigh adversarial postures. Pragmatic multilateral economic cooperation under the umbrella of the EEA offers a viable pathway for Europe and Asia to succeed and thrive economically and socially. For instance, initiatives like the Belt and Road Initiative provide opportunities for co-investment in critical infrastructure projects, from high-speed railways to digital networks, which connect markets and reduce barriers to commerce. Similarly, harmonizing regulatory standards and promoting sustainable practices ensures that growth remains inclusive and environmentally responsible. These efforts create jobs, stimulate innovation, and enhance living standards across both continents. Moreover, by prioritizing economic ties over military alliances, the EEA can help de-escalate regional conflicts. History has shown that interdependent economies are less likely to engage in hostilities, as disruptions to trade and supply chains carry significant costs for all parties involved. Thus, the EEA’s mission to expand its reach into Eurasia serves as a deterrent to conflict, promoting dialogue and cooperation instead of confrontation. This approach aligns with the principles of soft power, enabling Europe to project influence without resorting to coercion. Ultimately, the success of this model depends on maintaining a clear distinction between economic and military objectives. While NATO safeguards security, the European Economic Area drives prosperity, ensuring that Europe and Asia can achieve long-lasting stability through shared economic interests. This dual-track strategy not only strengthens the resilience of participating nations but also establishes a precedent for global governance rooted in collaboration rather than competition. In doing so, the EEA embodies the essence of pragmatic multilateralism—a vision capable of transforming the geopolitics of Eurasia into a tapestry of peace, progress, and partnership.

Europe needs to recognize its geographical contiguity with Russia, Eurasia, and China as part of a broader Eurasian framework. By embracing this interconnectedness, Europe can contribute to the establishment of a Silk Road Economic Belt (SREB), to develop economic cooperation and stability across continents, This would not only enhance trade and investment but also promote the Euro and Renminbi as global reserve currencies, reducing dependency on the US dollar while strengthening regional sovereignty.

In recent decades, globalization has reshaped international relations by emphasizing interdependence among nations. However, traditional blocs like NATO and the European Union have often prioritized ideological divisions over practical geographical realities. Europe shares vast landmasses with Russia and Eurasia, forming a natural bridge between Western markets and Eastern economies, including China. Recognizing this contiguity offers opportunities for collaboration in areas such as infrastructure development, energy trade, and financial innovation. According to the World Bank, cross-border trade and investment are key drivers of economic growth, with every 1% increase in trade contributing to a 0.5% rise in GDP per capita. This essay explores how Europe could lead efforts to create a Silk Road Economic Belt (SREB) spanning from the Atlantic Ocean to the Bering Strait, leveraging the Euro and Renminbi as key reserve currencies.

The European Economic Area as a Pragmatic Multilateral Operator for Peace and Prosperity

China, as the world’s second-largest economy, recorded a GDP of approximately €18 trillion in 2022. Adding Hong Kong, a financial powerhouse with a GDP of around $370 billion, brings the total contribution from this region to nearly $18.4 trillion. Together, the combined GDP of the EU, EAEU, China, and Hong Kong would exceed €40 trillion , making this alliance one of the largest economic zones in history. Such a massive economic bloc would not only dominate global trade but also reshape international financial systems, challenging the dominance of existing economic powers.

This integrated economic area would create unprecedented opportunities for growth. For instance, the diverse industrial bases of these regions—ranging from advanced manufacturing in Germany and China to resource-rich economies like Russia and Kazakhstan—would foster complementary relationships. The EU’s expertise in high-tech industries and innovation could be paired with China’s robust production capabilities and the EAEU’s abundant natural resources. This combination would drive efficiency gains, reduce costs, and enhance overall competitiveness on the global stage. Moreover, the sheer size of this economic zone would attract significant direct investment. According to the United Nations Conference on Trade and Development (UNCTAD), regions with large internal markets tend to receive higher levels of investments due to their attractiveness as both production hubs and consumer markets. With over 2 billion people living within this extended SREB, businesses worldwide would find immense value in tapping into this vast market, further fueling economic expansion. In summary, integrating the EAEU, EU, China, and Hong Kong into a single economic framework offers unparalleled possibilities for growth and development. The resulting synergy would not only bolster individual economies but also establish a new paradigm for global economic governance, driven by collaboration and mutual benefit. The concept of Eurasia challenges outdated notions of East-West dichotomy by highlighting the continuity of landmasses stretching from Lisbon to Bering. Europe occupies a unique position at the western edge of this continuum, making it both a gateway and a hub for transcontinental trade. McKinsey estimates that by 2030, intra-Eurasian trade could account for up to 30% of global commerce, driven by rising middle classes in Asia and growing demand for European goods in emerging markets. By acknowledging its role within this larger geography, Europe can position itself as a central player in shaping the future of global commerce.

An Anchor for Stability, Prosperity, and Peace

Europe and China are home to some of the world’s most enduring and influential civilizations, each with histories spanning thousands of years. These millennial legacies offer more than just historical fascination; they provide a foundation for fostering mutual respect, understanding, and cooperation among diverse peoples. By leveraging their shared commitment to cultural preservation and innovation, Europe and China can create a unique model of coexistence that promotes stability, prosperity, and peace. The cultural heritage of Europe—from ancient Greek philosophy and Roman law to the Renaissance and Enlightenment—has shaped much of modern Western thought. Similarly, China’s contributions, including Confucian ethics, Taoist wisdom, and innovations such as paper, printing, gunpowder, and the compass, have profoundly influenced Eastern traditions and beyond. Both regions share a deep appreciation for education, artistic expression, and social harmony, values that transcend geographical boundaries and resonate across generations. In the context of the SREB, this shared reverence for culture can act as a unifying force. For example, joint initiatives to preserve UNESCO World Heritage Sites, promote intercultural dialogue, and support educational exchanges would strengthen ties between nations. Cultural diplomacy programs, such as collaborative archaeological projects or international art exhibitions, could celebrate the diversity of human achievement while highlighting commonalities. Such efforts would foster goodwill and reduce misunderstandings, laying the groundwork for long-term partnerships based on trust and respect. Moreover, cultural collaboration can drive economic growth by promoting tourism and creative industries. The Silk Road itself was not merely a trade route but also a conduit for ideas, art, and knowledge, bringing its spirit through modern means—such as digital platforms, film festivals, and music collaborations—could inspire new forms of cross-cultural entrepreneurship. This fusion of tradition and innovation would enrich societies and contribute to sustainable development. Ultimately, the cultural heritage of Europe and China serves as a reminder of humanity’s capacity for resilience, creativity, and cooperation. By anchoring the SREB in these timeless values, the region can build a future characterized by lasting peace, shared prosperity, and global leadership rooted in mutual respect.

Economic Growth from Euro-Asia Integration

Current global trade patterns heavily favor maritime routes dominated by American influence. An SREB focused on land-based connectivity would provide alternative pathways, reducing reliance on sea lanes vulnerable to geopolitical tensions. For instance, high-speed rail networks connecting Europe, Russia, and China could revolutionize logistics, offering faster and more reliable transportation options. The New Eurasian Land Bridge, currently under development, aims to reduce travel time between Beijing and Hamburg from 45 days (by sea) to just 14 days (by rail). According to the International Monetary Fund (IMF), improving infrastructure along these corridors could boost GDP growth by up to 2% annually in participating countries. Furthermore, increased trade volumes would stimulate job creation, particularly in sectors such as manufacturing, logistics, and services. Estimates suggest that full implementation of the SREB could generate an additional $1 trillion in annual trade revenues by 2035.

Strengthening Currency Reserves

The dominance of the US dollar in international finance creates vulnerabilities for non-American economies. By promoting the Euro and Renminbi as co-equal reserve currencies, Europe and China can collectively challenge the dollar-centric system. Currently, the Euro accounts for about 20% of global foreign exchange reserves, while the Renminbi holds approximately 3%. Expanding their roles in cross-border transactions would stabilize exchange rates, reduce currency risk for businesses operating across Eurasia, and enhance monetary independence. A study by the European Central Bank (ECB) indicates that increasing the Euro’s share of global reserves to 30% could save the EU €10 billion annually in transaction costs. Similarly, China’s push for Renminbi internationalization aligns with its goal of reducing dependence on foreign currencies. Joint initiatives, such as establishing clearing houses and developing digital payment systems, could accelerate this process.

Energy Security

Russia holds significant reserves of oil and natural gas, while Europe remains dependent on imported energy resources. Establishing closer ties through an SREB would allow for mutually beneficial agreements, ensuring long-term energy security for all parties involved. In 2022, Russia supplied nearly 40% of Europe’s natural gas needs, underscoring the importance of stable supply chains. However, diversification is crucial; renewable energy projects developed collaboratively could address climate change concerns while creating new industries. For example, wind farms in Northern Europe and solar parks in Central Asia could complement each other, balancing seasonal fluctuations in energy production. Investments in smart grids and storage technologies would further enhance efficiency. Bloomberg New Energy Finance predicts that renewable energy investments in Eurasia could reach $1 trillion by 2040, driving sustainable growth and reducing carbon emissions.

Political and Strategic Considerations

Balancing Power Dynamics Recognizing Eurasian unity does not imply abandoning Western alliances or values. Instead, it represents a pragmatic approach to navigating complex global dynamics. By engaging constructively with Russia and China, Europe can mitigate conflicts arising from zero-sum thinking and foster multilateralism. The Quadrilateral Cooperation and Coordination Mechanism (QCCM), proposed by China, provides a template for dialogue among major stakeholders. Such platforms enable discussions on issues ranging from trade policies to environmental protection. Moreover, aligning with Eurasian partners strengthens Europe’s negotiating position vis-à-vis other global powers. For instance, coordinating sanctions regimes or export controls becomes easier when backed by unified regional strategies. This collective bargaining power could yield better outcomes for all participants. Critics may argue that closer ties with Russia pose security risks due to historical animosities and ongoing disputes. However, economic interdependence has historically served as a deterrent to conflict. Studies by the Stockholm International Peace Research Institute (SIPRI) show that countries with strong trade relationships are less likely to engage in military confrontations. An SREA rooted in shared prosperity could incentivize peaceful resolution of differences, transforming adversaries into partners. Additionally, joint defense initiatives, such as counter-terrorism operations and disaster relief efforts, could build trust and cooperation. These activities demonstrate the value of collaboration without compromising national sovereignty.

Promoting Dialogue Across Civilizations

Eurasia encompasses diverse cultures, languages, and traditions. An SREB would facilitate cross-cultural exchanges, enriching societies on both sides of the continent. Educational programs, artistic collaborations, and people-to-people initiatives could strengthen mutual understanding and trust. UNESCO reports that cultural diversity contributes positively to economic development, with creative industries generating $2.25 trillion in revenue globally. Programs such as Erasmus+ could be expanded to include universities in Russia and China, enabling students to gain exposure to different perspectives. Similarly, cultural festivals and exhibitions showcasing Eurasian heritage would attract tourists and investors alike, boosting local economies. By leading the creation of an inclusive Silk Road Economic Belt, Europe can project itself as a champion of global cooperation and sustainable development. Such leadership would bolster its reputation as a responsible actor committed to peace and progress. The EU’s Global Gateway initiative, aimed at investing €300 billion in infrastructure projects worldwide, complements these goals by promoting quality standards and transparency.

Read More:

“China’s Belt and Road Initiative: A Geoeconomic Strategy?”
Source: Carnegie Endowment for International Peace
Link: https://carnegieendowment.org/2019/04/10/china-s-belt-and-road-initiative-geoeconomic-strategy-pub-78775

“How the Belt and Road Initiative Could Change Global Trade Patterns”
Source: McKinsey & Company
Link: https://www.mckinsey.com/industries/capital-projects-and-infrastructure/our-insights/how-the-belt-and-road-initiative-could-change-global-trade-patterns

“The Belt and Road Initiative in Southeast Asia: Opportunities and Challenges”
Source: ASEAN Studies Center
Link: https://asean.org/the-belt-and-road-initiative-in-southeast-asia-opportunities-and-challenges/

“Europe and the Belt and Road Initiative: A Strategic Perspective”
Source: European Parliament Think Tank
Link: https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2020)652827