The Extraterritorial Impact of EU Digital Regulations: How Can the EU Minimise Adverse Effects for the Neighbourhood?

The paper explores the impact of EU data protection laws, such as the General Data Protection Regulation (GDPR) or the Digital Markets Act (DMA), on trade relations with neighbouring regions. It delves into the "Brussels Effect" on EU's neighbouring countries amid rising geopolitical tensions, assessing the extraterritorial influence of EU regulations on trade with regions such as the Western Balkans, Turkey, Eastern Partnership countries, and the Southern Neighbourhood. The paper proposes methods to alleviate the regulatory burden on these areas, which is vital for the EU's ambition to maintain regional influence in competition with rivals like China.

As part of a Bertelsmann Stiftung's series under the "Sovereign Europe: Strategic Management of Global Interdependence" project, the publication follows the paper on the impact of the Carbon Border Adjustment Mechanism (CBAM).

The research was conducted in partnership with the European Centre for International Political Economy (ECIPE).