CAS SEE Researchers Present Preliminary Findings on Corrosive Capital at European Parliament and Europe’s Futures Symposium

CAS SEE Researchers Present Preliminary Findings on Corrosive Capital at European Parliament and Europe’s Futures Symposium

As part of the EU-funded Horizon Europe project GEO-POWER-EU, researchers from the Center for Advanced Studies Southeast Europe (CAS SEE), Dr. Tena Prelec and Dr. Sonja Stojanović Gajić, presented early findings from their investigation into corrosive capital and its implications for democracy in Southeast Europe and the EU’s eastern neighborhood. The presentations took place at two key events: at the European Parliament Library in Brussels on 20 May 2025 and during the Europe’s Futures Symposium in Cres on 8 June 2025, co-organised with the Institute for Human Sciences (IWM) and the ERSTE Foundation.

Europoan Parliament Presentation

Hosted by MEP Vladimir Prebilič, the session in Brussels highlighted research from the GEO-POWER-EU project and the launch of Dr. Prelec’s co-authored book, Indulging Kleptocracy: How the West Enables and Sustains Corruption Around the World (Oxford University Press, 2025). The book details how Western financial enablers facilitate illicit flows that fuel authoritarianism globally.

Dr. Tena Prelec explained:

“What we call ‘corrosive capital’ is more than just opaque investment—it’s a mechanism for authoritarian regimes to gain influence through infrastructure and finance, often with the help of Western intermediaries.”

Dr. Sonja Stojanović Gajić presented policy-relevant insights based on 29 case studies across the Western Balkans and Eastern Partnership countries, pointing to systemic vulnerabilities. She emphasized:

“This is not just a regional issue. For the EU, corrosive capital presents a direct challenge to its geopolitical credibility. While the EU remains the largest investor in the region, its competitors are more effective at converting economic presence into political leverage. Without a more strategic and rules-based engagement, the EU risks undermining both its enlargement policy and its legitimacy.”

Cres Symposium with Europe’s Futures Fellows

The follow-up presentation took place during the Europe’s Futures Symposium 2025 at Moise Palace in Cres. Organized by CAS SEE in partnership with IWM Vienna and ERSTE Foundation, the symposium brought together Europe’s Futures Fellows—an

interdisciplinary group of emerging leaders and experts focused on democracy, human rights, and European integration (iwm.at/europes-futures).

The event featured collaborative sessions between fellows and CAS SEE researchers, including interactive discussions on specific cases of corrosive capital. Participants engaged with the evolving analytical framework and offered feedback to help sharpen policy responses to unchecked foreign investments in strategic sectors such as energy, infrastructure, real estate, and critical minerals.

Why This Research Matters

Corrosive capital refers to investments that intentionally exploit governance vulnerabilities, particularly in contexts marked by institutional weakness, elite capture, and limited transparency. Although initially linked to authoritarian influence, it now encompasses any state or corporate actor leveraging these vulnerabilities for strategic or financial gain, regardless of origin. Early findings from the GEO-POWER-EU project show that these investments frequently benefit local oligarchs and autocrats, as well as the EU competitors, while weakening democratic institutions.

About GEO-POWER-EU

Funded under Horizon Europe (grant agreement no. 101132692), GEO-POWER-EU explores the geopolitical dynamics and foreign influence strategies in the Western Balkans and Eastern Partnership regions. Within the GEO-POWER-EU project, CAS SEE leads Work Package 3 on Geopolitical Competition and EU Strategic Autonomy, which analyzes the influence of major geopolitical actors and the EU’s strategic autonomy and defense capabilities, providing strategic foresight on geopolitical competition. For more information, visit geo-power.eu.