The economic-social success model of the last century, at least in Western and Central Europe, was industrialization – capitalism plus democracy. With cheap coal and the steam engine, that is, with sufficient energy, goods became available to everyone in our part of the world that were previously only accessible to a very small stratum of the rich. Warm apartments and clothing, enough food and luxury items, crockery, newspapers and books, cars, bicycles and much more. Globalization has opened this path for everyone, and many nations beyond the “West” have taken it. Industry and energy are no longer something that a few countries (can) own exclusively – always only in competition and in cooperation with others. And now comes the alarm call:
Energy costs – pushed to record levels in 2022 by Russia’s invasion of Ukraine and the shutdown of vital gas pipelines – have become too high for many manufacturing companies to remain competitive with production in Europe. At the same time, a huge package of American subsidies for green industries has (not only) shocked and angered our EU officials. They watch as the US – a supposed ally – entices companies to move production across the Atlantic.
Of course, energy-intensive sectors such as glass, chemicals, metals, fertilizers, pulp or paper, ceramics and cement are particularly affected. This affects industries that employ 8 million people. Confronted with the globally growing economic competition not only with China, but also with the increasingly protectionist United States the European heads of state and government openly warn against extending the “deindustrialization” to the entire production of our continent.
“With the actions of the US and China, we see the real threat of deindustrialization and divestment,” said a senior European Commission official.
And it’s not just the politicians who warn against “Made in Europe”:
Losing production capacity means losing jobs, and that – said Luc Triangle, general secretary of the European trade union IndustriALL, which represents production workers – has “political consequences”.
Triangle warned that z. For example, an accelerated industrial exodus in Central and Eastern Europe could position voters against the EU, which would then slide into a protracted crisis.
“There are political ramifications,” Triangle said. “Which parties will win and thrive on dissatisfaction and disappointment? The parties that have anti-European or other extremist agendas”.
Some want to abolish capitalism, which is responsible for everything. I’m yes with a lot of what Wolfgang Merkel in FR says not entirely agree, but here I agree – democracy and capitalism
this is a forced marriage. Capitalism follows a different principle, but democracy depends on capitalism, on its efficiency and innovative power, otherwise it will lose legitimacy among its own citizens. Capitalism does not need democracy, but democracy needs capitalism.
If we lose industry, we may lose democracy. It won’t work entirely without energy-intensive factories …
But with all the differences of opinion between the countries and strategies, the way forward still remains unclear.
Relaxing the EU’s tough state aid rules is a key focus among officials, and EU financial support for manufacturing is also under consideration.
The mirror writes, that z. In Germany, for example, the federal government wants to conclude so-called climate protection agreements with industry from next year:
Anyone who produces in a climate-friendly manner, even though it is more expensive, will be reimbursed by the state for the additional costs for up to 15 years. The steel, chemical, cement and glass industries in particular should be driven to switch quickly to green production.
One can only say that under socialism, for a long time, attempts were made to compensate for the lack of productivity through subsidies. That would be something of Münchhausen, if the competitors don’t follow suit, it won’t work like that. But whatever the case, 2023 will be a globally exciting year…