Europe's economic recovery is being constrained by a combination of geopolitical risks, structural challenges and policy uncertainties, according to a report recently released by the Chinese Academy of Social Sciences' (CASS) Institute of European Studies (IES).

Known in China as the "Blue Book on Europe," the "European Development Report (2025–2026)" noted that Europe has entered a period of deeper adjustment, as security concerns increasingly outweighed economic priorities.

"Security logic is replacing economic logic," IES Director Feng Zhongping told the launch event in Beijing. 

He said that Europe is undergoing its most profound changes since the end of the Cold War, making the region's political and economic landscape increasingly complex.

The report highlighted persistent challenges, including sluggish industrial activity, high energy costs, weak consumer demand, rising protectionism, and prolonged geopolitical conflicts. These factors are complicating Europe's external economic ties and clouding its growth outlook.

The main report in the book, titled "Farewell to a 'Postmodern' Identity, Facing a 'Post-American' World," argued that Europe is moving away from idealistic liberal internationalism toward a pragmatic focus on economic security and strategic autonomy.

Country-specific sections examined leadership and policy shifts in Germany and France, the United Kingdom's evolving security cooperation with the European Union, electoral changes in Poland, and a broader rightward political trend in northern and central Europe.

Li Xuesong, vice-president of the CASS, emphasized that Europe remains a key element of China's major-power diplomacy. He called for stronger research into Europe's economic, political, and foreign policy developments to support China's strategic decision-making.

First published in 1997, the "Blue Book" is widely followed in China for its in-depth analysis of European political, economic and social trends.