European Economics Thread
- Thread starter PiSigma
- Start date
19 Jan, 2024
Writing on his Telegram channel on Friday, Deripaska, who used to head up Russian aluminum giant Rusal, said that while the world economy is facing anemic growth, the US delivered its answer to the headwinds back in 2022 at the World Economic Forum in Davos, while the EU dawdled.
He was referring to Washington’s strategy to “promote growth and address long-standing structural issues relating to income inequality, racial disparities and climate change,” as outlined by US Treasury Secretary Janet Yellen.
Deripaska noted that the strategy, which eventually resulted in the Inflation Reduction Act, has spurred more than $500 billion in announced investments in human capital, clean energy, and high-tech manufacturing.
The businessman went on to cite the example of China, which plans to capitalize on its huge untapped domestic market and is also investing heavily in developing a digital and low-carbon economy.
“Meanwhile Europe, has neither access to a large untapped market, nor the necessary technologies, or the money for these innovations and structural changes,” Deripaska wrote.
“According to various estimates, Europe needs about $5.2 trillion to implement the energy transition. And the inability to agree among themselves on priority areas for investment only exacerbates the problem,” he added.
The aluminum magnate highlighted that, despite facing a severe economic downturn, the EU is still “seriously” considering expanding the bloc “as a growth factor.”
“They also want to fragment Ukraine. At the same time, there has not yet been a word about how exactly to do this and who will build a new competitive economy there,” he concluded.
Deripaska, the founder of Rusal, the world’s second-largest aluminum company, also expressed his regret about the failure of a longstanding idea of creating a single economic space from Lisbon to Vladivostok, which could “guarantee prosperity not only for Europe, but also for the entire Eurasian continent.”
The concept of such a free-trade area has at times enjoyed considerable political support. However, according to Deripaska, hopes for the project being realized ended up being “so successfully and purposefully destroyed” by the US.
EU ‘looks sad’ – Russian tycoon
The European Union looks particularly “sad” amid the ongoing global economic slowdown, due to a lack of technology and finances to institute structural changes and invest in innovation, Russian businessman Oleg Deripaska has claimed.Writing on his Telegram channel on Friday, Deripaska, who used to head up Russian aluminum giant Rusal, said that while the world economy is facing anemic growth, the US delivered its answer to the headwinds back in 2022 at the World Economic Forum in Davos, while the EU dawdled.
He was referring to Washington’s strategy to “promote growth and address long-standing structural issues relating to income inequality, racial disparities and climate change,” as outlined by US Treasury Secretary Janet Yellen.
Deripaska noted that the strategy, which eventually resulted in the Inflation Reduction Act, has spurred more than $500 billion in announced investments in human capital, clean energy, and high-tech manufacturing.
The businessman went on to cite the example of China, which plans to capitalize on its huge untapped domestic market and is also investing heavily in developing a digital and low-carbon economy.
“Meanwhile Europe, has neither access to a large untapped market, nor the necessary technologies, or the money for these innovations and structural changes,” Deripaska wrote.
“According to various estimates, Europe needs about $5.2 trillion to implement the energy transition. And the inability to agree among themselves on priority areas for investment only exacerbates the problem,” he added.
The aluminum magnate highlighted that, despite facing a severe economic downturn, the EU is still “seriously” considering expanding the bloc “as a growth factor.”
“They also want to fragment Ukraine. At the same time, there has not yet been a word about how exactly to do this and who will build a new competitive economy there,” he concluded.
Deripaska, the founder of Rusal, the world’s second-largest aluminum company, also expressed his regret about the failure of a longstanding idea of creating a single economic space from Lisbon to Vladivostok, which could “guarantee prosperity not only for Europe, but also for the entire Eurasian continent.”
The concept of such a free-trade area has at times enjoyed considerable political support. However, according to Deripaska, hopes for the project being realized ended up being “so successfully and purposefully destroyed” by the US.
HOLY SHIT. The harvest is insane. I suspect that Netherlands is being carried by ASML valuation and everything outside ASML supply chain is in trouble.View attachment 123692
If the US allowed the euro to internationalize more to its natural potential (they keep it down always so the dollar is way above, so they could print more themselves and prop their own economy first at their expense), then maybe Greece and others below wouldn't have suffered so much and met these present-day crises better. The EU central bank could've simply printed more and given it to their governments to boost their economies, in the past decade, but it's too late now. If the EU was a true independent pole, something like this wouldn't have happened, but they are owned by the US.
Well that graph is even before the shit hit the fan it only goes to 2017. I think people would really cry if they saw 2017~2024
That graph shows the effects of the Euro crisis, which was similarly bad to the COVID and energy crisis. The problem for Europe is just that since the financial crisis it has never really fully recovered from a crisis before the next one hit
In 2009-10 you had the financial crisis. Governments in the EU had to bail out their banks and then severely cut spending on public investment to pay for the bailouts. In 2014 you had the EU sanctioning Russia for the annexation of Crimea, and the Russian counter sanctions on agricultural products. EU agricultural exports, including fruits and vegetables, dairy (milk, butter, cheese), meat (pork, chicken), were all severely affected. Then you had the COVID-19 lockdowns. And now you have the sanctions on Russia after their invasion of Ukraine, which caused tremendous losses for European companies leaving Russia like Renault, the sabotage of the Nord Stream pipeline, spiking cost of fossil energy, etc. All heavy industry in Central Europe is shutting down.
I think the EU's economy will not recover from this. It is going to enter a long recession that will make Japan's look mild in comparison. So far the numbers have been fudged and they are still pretending things are going on as normal. The only way to solve it would be massive investment into nuclear power, but it is not like there are any shovel ready projects you could build, and even if you did the results would only show up in a decade.
I think the EU's economy will not recover from this. It is going to enter a long recession that will make Japan's look mild in comparison. So far the numbers have been fudged and they are still pretending things are going on as normal. The only way to solve it would be massive investment into nuclear power, but it is not like there are any shovel ready projects you could build, and even if you did the results would only show up in a decade.
Lethe
Captain
"I want to travel in Europe, Alyosha; I shall set off from here. And yet I know that I am only going to a graveyard, but it's a most precious graveyard, that's what it is! Precious are the dead that lie there, every stone over them speaks of such burning life in the past, of such passionate faith in their work, their truth, their struggle and their science, that I know I shall fall on the ground and kiss those stones and weep over them; though I'm convinced in my heart that it's long been nothing but a graveyard."
-- Fyodor Dostoevsky, The Brothers Karamazov (1880)
-- Fyodor Dostoevsky, The Brothers Karamazov (1880)
