European Economics Thread

gelgoog

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It is just a shuffling of the chairs in the Titanic. They will be taking someone else's gas, so where will the others be getting their gas from?
Algeria's gas production is also definitively not enough to meet German demand.

Look, Europe was basically getting piped gas from Algeria, Norway, the Netherlands, the UK, and Russia. Algeria supplied Southern Europe, Norway supplied Northern Europe, and the Netherlands supplied Central Europe. The massive gas supplies in the Netherlands have basically been depleted at this point. So you can count them out. At the same time the gas supply from Russia was massively cut.

The other suppliers like Algeria or Norway can only supply a fraction of demand. New suppliers like Azerbaijan will only be enough to meet some of the demand in Southeastern Europe. Not the main gas consumers in Central Europe.

Lately Algerian natural gas exports were going down, rather than going up, because Algeria decided it was more profitable for them to export liquefied ammonia for fertilizer than the natural gas in its raw form. Algeria is also one of Russia's main allies and one of their largest weapons purchasers. Because the Soviet Union supported their independence from France.
 
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gelgoog

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I thought Continental makes tires? This sounds like a backlash of the lack of Russian energy (natural gas and oil) making car tire production in Germany unprofitable.

It is true that companies like ZF and Bosch will be majorly hit by transition towards EVs though. Electric cars don't need mechanical transmissions nor electronic fuel injection systems.
 

tphuang

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I thought Continental makes tires? This sounds like a backlash of the lack of Russian energy (natural gas and oil) making car tire production in Germany unprofitable.

It is true that companies like ZF and Bosch will be majorly hit by transition towards EVs though. Electric cars don't need mechanical transmissions nor electronic fuel injection systems.
continental is a major supplier all across auto supply chain
 

gelgoog

Lieutenant General
Registered Member
The US is basically making them drop trade with Russia and China. Both. I kind of doubt it is worth it.
Look at the chart in 2013 before Russia slapped an import ban on agricultural production from the EU.
Exports to Hong Kong are also exports to China.
 

tphuang

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The US is basically making them drop trade with Russia and China. Both. I kind of doubt it is worth it.
Look at the chart in 2013 before Russia slapped an import ban on agricultural production from the EU.
Exports to Hong Kong are also exports to China.

China won't say this publicly, but the outcome of current geopolitical issues and growing industrial competitiveness mean China will just treat Germany like SK and Japan. Long term, Europe will get deindustrialized whether they like it or not
 

supercat

Major
Germany's electricity generation has significantly decreased in 2023.. lowest in 3 decades.

View attachment 125527
Germany is probably already in recession.
Germany likely in recession, Bundesbank says
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I think it's too little and too late for Germany to save its economy by boosting its military spending.

Germany Says Its Defense Spending Could Increase to 3.5% of GDP​

  • Defense minister concedes finding funds will be challenging
  • Chancellor pledges to hit NATO target until after next decade
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