As the conflict between Russia and Ukraine continues, energy prices and inflation in European countries soar. Affected by this, some European automobile and manufacturing companies have been forced to stop production or decide to move production lines out recently. Since the US energy prices are far lower than those of Europe and the huge subsidy policy has been introduced, the US has become one of the important destinations for European companies to relocate production lines. Some comments pointed out that the United States is trying to "turn the danger of Europe into an opportunity for the United States" and gain benefits from it. Just as Europe faces serious challenges of key industries loss and economic recession, the United States secretly raised the sickle of "cutting European leeks", forcing the balance of the transatlantic partnership to tilt to the side that is beneficial to the United States.
19, German Minister of Economy and Climate Protection Habeck held a video conference with French Minister of Economy and Finance Le Maire. Both sides said that Europe must respond to the U.S. Inflation Cuts Act.
German Minister of Economic and Climate Protection Habeck: We see that European companies and businesses are "sucked away" by the United States because the United States provides huge subsidies.
French Minister of Economy and Treasury Le Maire: The US "Inflation Reduction Act" not only aroused concerns between France and Germany, but also all European countries. Europe must take action against the US Inflation Cuts Act because it may undermine the level playing field in the US and Europe.
US President Biden html signed the "Inflation Reduction Act" in mid-August, among which subsidies for electric vehicles became the focus of attention. It is worth mentioning that the relevant measures take conditions such as "local assembly of complete vehicles in North America" as the premise for providing subsidies. EU countries generally believe that the bill is discrimination against EU automobile, renewable energy, battery and energy-intensive industries. The EU's concerns are not without reason. On October 19, the German BMW Group announced that it would make a new round of electric vehicle investment worth US$1.7 billion in South Carolina.
Not long ago, one of the world's largest steel manufacturers, ArcelorMittal said that due to the soaring electricity costs, the company has closed two factories in Germany and turned to factories in Texas, USA to continue production. In addition, a large steel plant in ArcelorMittal in Hamburg, Germany is also cutting production and the prospects are not good.
Steel plant workers: According to our expected (future) energy prices, it is doubtful whether the factory will continue to operate next year.
ArcelorMittal Hamburg CEO Uwe Braun said that energy bills have risen "7 times" since the outbreak of the Russian-Ukraine conflict, which has caused the factory to not operate normally as usual. Since early October, more than 500 workers in the steel mill have had to reduce their working hours.
Uwe Braun, CEO of ArcelorMittal Hamburger: It's not just about our factory. We must create conditions (reduce energy costs) in order to continue production in Europe. If you don't do this, it's clear that some of the most energy-consuming parts of production will be moved away.
" Wall Street Journal " expressed concerns about the signs of " deindustrialization " in Europe. The report said the question is whether the current pain (Europe) is temporary or a sign of the beginning of a "de-industrialization" era.
Europe's online magazine "Modern Diplomacy " published an article titled "How the United States destroyed Europe". The article points out that "the US government is the initiator of the outflow of wealth in Europe." The article also worried, "As Europe continues to flow out of wealth - mainly to the United States, Europe will become increasingly backward."
(Source: CCTV News Client)
