European Economics Thread

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luminary

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All the economic news out of Germany is bad, but it is also not the kind that will simply rebound with the global economy. In reality, it was Berlin’s decision to sever itself from Russian energy that made its entire industrial export model uncompetitive. Just this past week Bloomberg
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German businesses are increasingly curbing investments and eyeing production abroad amid high energy prices at home. Over half of surveyed companies say the energy transition is having negative or very negative effects on their competitiveness, according to a report by the German Chamber of Commerce and Industry.
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And now Berlin is
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it can no longer subsidize power prices for energy-intensive industries. From the Financial Times:

Scholz said the best way to deal with the problem of high gas and electricity costs was to increase renewable energy capacity and expand Germany’s power grid. Germany plans to derive 80 per cent of its electricity from renewables by 2030. But [Markus Steilemann, head of the VCI, the chemical industry lobby], insisted that until there was enough cheap renewable capacity available, the government must step in to help energy-intensive sectors such as chemicals. The idea was a “must-have for preventing deindustrialisation”, he said.
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Siegfried Russwurm, head of the German Industry Federation, is
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Those who believe the energy transition could become the nucleus of a new economic miracle underestimates the fact that investments will largely only replace existing assets and, for the most part, at much higher cost. “This certainly won’t bring us additional economic growth for the time being. An economic upswing doesn’t come on its own. So, there’s no all-clear for Germany as an industrial location. On the contrary: Germany faces a mountain of major challenges….
Russwurm sees huge challenges ahead in restructuring the country’s energy supply. “The BDI expects the government to quickly come up with a concept that can be implemented and that ensures a secure, long-term supply of electricity at internationally competitive costs. The many state-induced burdens such as taxes, surcharges and network fees must be reduced to make electricity more attractive than fossil fuels,” demanded Russwurm. Equally urgent is the need to build the necessary infrastructure and expand the supply of electricity. The delta between ambition and implementation is growing by the day.
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The next German federal election isn’t until 2025.

While Borrell is likely to slink off soon to whatever retirement he has planned, and Scholz will almost certainly find a cushy landing spot (he’s
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and the Americans), who’s going to clean up their mess?


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C

CMP

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luminary said:
All the economic news out of Germany is bad, but it is also not the kind that will simply rebound with the global economy. In reality, it was Berlin’s decision to sever itself from Russian energy that made its entire industrial export model uncompetitive. Just this past week Bloomberg
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And now Berlin is
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it can no longer subsidize power prices for energy-intensive industries. From the Financial Times:


Siegfried Russwurm, head of the German Industry Federation, is
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The next German federal election isn’t until 2025.

While Borrell is likely to slink off soon to whatever retirement he has planned, and Scholz will almost certainly find a cushy landing spot (he’s
Please, Log in or Register to view URLs content!
and the Americans), who’s going to clean up their mess?


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No one. Europe is finished.
 
siegecrossbow

siegecrossbow

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luminary said:
All the economic news out of Germany is bad, but it is also not the kind that will simply rebound with the global economy. In reality, it was Berlin’s decision to sever itself from Russian energy that made its entire industrial export model uncompetitive. Just this past week Bloomberg
Please, Log in or Register to view URLs content!



And now Berlin is
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it can no longer subsidize power prices for energy-intensive industries. From the Financial Times:


Siegfried Russwurm, head of the German Industry Federation, is
Please, Log in or Register to view URLs content!




The next German federal election isn’t until 2025.

While Borrell is likely to slink off soon to whatever retirement he has planned, and Scholz will almost certainly find a cushy landing spot (he’s
Please, Log in or Register to view URLs content!
and the Americans), who’s going to clean up their mess?


From:
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Isn’t this like the textbook example of cultish behavior?
 
L

luminary

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The EU’s pledge to ban the sale of new gasoline and diesel cars and vans from 2035 poses an “imminent risk” to Europe’s car manufacturers, which are unlikely to win a looming EV price war with their Chinese competitors, BMW chairman Oliver Zipse has told the
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.
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“I want to send a message: I see that as an imminent risk,” Zipse said.

The executive, however, said BMW was in a better position to compete with the Chinese manufacturers, most of which are targeting buyers of cheaper and smaller electric vehicles.
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Yet, “The base car market segment will either vanish or will not be done by European manufacturers,” Zipse told FT.
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European Union member states in March approved an emissions regulation under which the bloc
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of new carbon dioxide-emitting cars and vans in 2035.

The new rules target 55% CO2 emission reductions for new cars and 50% for new vans from 2030 to 2034 compared to 2021 levels, as well as 100% CO2 emission reductions for both new cars and vans from 2035.

The landmark deal was made possible after Germany – the biggest economy, the biggest car market, and the biggest car manufacturer – sought and won an
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. Germany wanted sales of new cars with internal combustion engines if they run on e-fuels
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, and it got that exemption.
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The slump in exports of Germany’s auto industry to China in the first quarter of 2023 could be the beginning of a new long-term trend of
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in German-Chinese trade as China’s EV boom accelerates, researchers at the IW institute in Cologne said in a report in June.
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“There appear to be strong disruptions playing out in the automotive sector, especially regarding China’s increasing importance as an exporter of electric cars,” the report’s authors wrote.
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https://twitter.com/i/web/status/1699416302232727797
 
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