they do supply side nonsense, like saying Europe is doing bad because
Fixing that problem would mean bringing down energy costs, making labour markets more flexible, integrating markets for capital and services and culling unwise regulations.
Energy costs, fine. But rest is neoliberal junk.’
They have nothing, because the state isnt allowed to do anything. So all they can do is call for more ‘reform’.
bringing down energy costs by underwriting risk of investment in infrastructure, providing subsidized loans, and massive grants always seems to be on the table.
bringing down labor costs by improving the material conditions of the working class with high quality, low cost housing, universal free education/training, free healthcare, free childcare, and provisioning fresh/nutritious food never seems to make the list.
it’s almost like giving tons more resources to the leisure class doesn’t get anything productive done. oh well, we probably just haven’t given them enough yet! once europe has its own trillionaire, i’m sure it’ll reindustrialize.
EU really doesn’t have a coherent industrial or energy policy. It’s just a framework of subsidies and regulations and “jesus take the wheel” type of blind faith in that market will sort it out, what little there is in terms of policy is on the level of member states. That’s probably why they blame China. They have tried everything and they are all out of ideas, so it must be an outside saboteur or “cheater”. What else are they going to do? Abandon neoliberal orthodoxy on which EU and many of it’s ruling governments were founded on? Step aside and let somebody else with ideas take their place? Fuck no. They really would need to “incentivized” and forcefully to even consider either of those. best they can do now is gut the welfare states and funnel money into military keynsianism and hope people don’t protest too much.
It’s even worse than that tbh — the industrial policy is that member states are not allowed to have industrial policies and this policy is actively enforced
The continent’s leaders should instead consider what problem they are trying to solve. Europe may have a bilateral trade deficit with China. But in Germany’s case, only about a third of its loss in market share in other global markets can be explained by Chinese exports, according to the Kiel Institute, a think-tank. The rest reflects a broader loss of competitiveness. Fixing that problem would mean bringing down energy costs, making labour markets more flexible, integrating markets for capital and services and culling unwise regulations. Some progress is being made at a European level, but national governments are more interested in protectionism, such as the blanket eu tariffs against China floated by advisers to the French government earlier this year. Talk of “global imbalances” helps that agenda, while doing little to raise the remote prospect of either America or China changing tack. Make no mistake: it would be a good thing if America were to borrow less and Chinese consumers spend more. There is some evidence that imbalances tend to increase the risk of a financial crisis—and they certainly breed protectionism. Market competition must be seen by voters and consumers to be fair, and it is wise to avoid giving China choke points in critical supply chains or total dominance of carmaking. New balance Yet Europe must recognise that erecting trade barriers with China only increases the need for reforms, because diversifying away from the cheapest supplier raises costs and harms growth. An economy of China’s size and stage of development will always have significant manufacturing exports. If Europeans wants their industries to thrive, they should focus not on shutting out competitors but fixing their own house.
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Thanks for your service.
I thought I posted an archived link, but apparently not.Welcome! Thanks for the share, it greatly improved my mood!
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bringing down energy costs
Damn if only there was a virtually unlimited supply of cheap energy/gas right next door that they could use. Shucks.
Paywall
Oops, I forgot to replace it with an archived link.
