According to recent reports from French media, journalist Karl De Meyer published an article "The EU Thinks about the European Industrial Policy Framework" and pointed out that at the beginning of this week a senior European official said seriously: "Europe has the highest labor costs in the world, the highest energy costs in the world, and major trading partners that provide large subsidies to our industries. The United States and other competitors. Our hands are about to drain Europe’s industrial blood, and we must seriously think about how to resist.”
Based on this judgment of the situation, EU leaders held a meeting in Brussels to try to formulate a rapidly advancing competitiveness strategy. Draft conclusions from the just-concluded EU leaders' summit show that EU countries intend to push for more gas deals next year - including long-term contracts - to replace Russian gas supplies. The draft seen by reporters said the EU should move quickly to start joint purchases of natural gas. The EU last year suggested using its influence as the world's largest natural gas market to negotiate lower prices, but the suggestion has yet to be implemented.
After the U.S. Congress passed a large-scale plan to support "Made in America" green technologies, European leaders realized that the United States was about to drain Europe's industrial blood, leaving them little time to prevent EU companies from relocating to the United States. Big industry has made this very clear to them. Biden apparently didn't expect the Europeans to react so poorly to the "Made in America" initiative, only saying they could do the same. So, 27 countries did this. If Europe is to keep pace with the green and digital transition, significant investment is needed.
With this in mind, the 27 countries will also reflect on the current state aid framework. In a draft conclusion obtained by reporters, 27 countries urged the European Commission to submit a new bill for an "ambitious European industrial policy" in early 2023. Just a few years ago, the word itself was taboo. Lowering energy prices is clearly another important pillar of European industrial competitiveness. The issue is likely to return to the summit after energy ministers previously failed to agree on a mechanism for adjusting gas prices. But the market also suspects that all these measures are far from being able to save a nearby fire.
The EU's sluggish industrial prospects have also undermined its determination to have independent defense strategies. After the conflict between Russia and Ukraine broke out, European countries all proposed plans to massively increase defense spending. However, it is obvious that the speed of Europe's production of weapons cannot keep up with the speed at which Ukraine consumes them, and the Americans have once again benefited in this matter. Regardless of the fact that it is jointly developing a future air combat system with France, Germany ordered F-35 fighter jets from Lockheed Martin, France's largest competitor, Dassault Aviation, which fully illustrates the defeat of Europe. Text/PY
