Transforming European Competitiveness Under Conditions of Geoeconomic Fragmentation

This article analyses the transformation of the competitiveness of the European Union in the context of geopolitical fragmentation, geo-economic rivalry and the growing importance of economic security in contemporary economic governance. The article argues that the traditional efficiency-oriented understanding of competitiveness, associated primarily with productivity growth, market efficiency and trade openness, is increasingly complemented by a resilience-oriented governance framework that emphasizes strategic autonomy, technological capabilities, economic security and long-term adaptive resilience. Using a conceptually oriented qualitative research design based on interpretive analysis and analytically focused comparison, we integrate knowledge from studies of competitiveness, political economy, geo-economics and European economic governance. The research draws on academic literature primarily available in the Web of Science and Scopus databases, EU strategic documents and legislation, and selected aggregated indicators related to productivity, innovation, trade openness, technological development and sustainability. The findings show that geopolitical fragmentation, supply chain vulnerabilities, technological competition and strategic dependencies are increasingly changing the structural foundations of European competitiveness. Innovation and technological capabilities remain key determinants of long-term competitiveness, but their strategic importance is increasingly linked to resilience, technological sovereignty and economic security. The results also show that the European Union is gradually moving towards a hybrid governance model that combines market openness with strategic coordination, industrial policy and resilience-oriented adaptation. At the same time, significant asymmetries between Member States continue to limit the EU’s ability to adapt in a coordinated manner. The article contributes to current debates on competitiveness by establishing an integrated analytical framework linking competitiveness, resilience, economic security, strategic autonomy and sustainable development in the context of geo-economic transformation.