The Economist: Eager to emulate Biden's economic policies is costing Europe
安全到达彼岸依
发表于 2023-10-17 20:45:18
1372
0
0
Source: Global Times
The Economist article on October 14th, original title: Europe should not replicate Biden's economics. It is obvious that Europe is eager to follow the economic policies of US President Joe Biden, and this is causing Europe to pay a price.
Europe has lost Russia's cheap fossil fuels, making its transition to clean energy more like a national security issue. Germany, the largest economy in Europe, is concerned that China and the United States, which receive state subsidies for electric vehicle manufacturers, will steal market share from the German automotive industry. Meanwhile, the economy of the eurozone is increasingly lagging behind that of the United States. We have reported that the most severely affected European economies are struggling to cope with the impact of over 10% inflation, rapid aging, and high public and private debt. The International Monetary Fund has stated that it expects the eurozone economy to grow by only 0.7% in 2023, while the growth rate of the United States will be three times that of the eurozone.
Europeans are increasingly seeing Biden style industrial policies as a solution to problems. The EU has relaxed national aid regulations that restrict subsidized investment and aims to set targets for green product production in the EU. France and Germany are arguing over how to subsidize industrial electricity. The UK Labour Party also plans to invest heavily in industry when the next government is formed in 2024.
However, replicating Biden's economics is a mistake for Europe. Just like in the United States, using subsidies to attract manufacturing is a waste of money, and over time, companies will only be encouraged to compete for subsidies rather than customers. Although France has indeed achieved some success in industrial policy, the system and regulatory network that limits French interventionism are difficult to replicate, just like the German economic model, which is regarded as a model, cannot be transplanted elsewhere.
The recent experience in Europe is actually a case study of market importance. After the outbreak of the Russia-Ukraine conflict, the German industry once claimed that the loss of Russian natural gas would lead to an economic disaster. But due to the rapid adaptation of enterprises, industrial production can be maintained. Unlike the United States, the European Union has established a carbon pricing mechanism. After a difficult start in the first decade of this century, the carbon emissions trading system has become the gold standard for carbon pricing in recent years, inspiring the private sector to find the most effective ways to reduce emissions.
Therefore, for Europe, the best economic policies must be based on its past market friendly practices. The EU should cultivate a common and competitive green single market. This means limiting national aid regulations and allowing carbon prices in new industries to grow faster than planned targets, as well as taking citizens' climate dividends seriously. The EU should engage in free trade with its allies in order to achieve arduous tasks such as carbon reduction, reducing risks in sensitive supply chains, and strengthening defense at the lowest cost.
In order to promote economic growth, new government spending in Europe should be focused on infrastructure construction, rather than national subsidies.
Germany should repair the already dilapidated railway system, and France should stop obstructing the transmission of solar energy from sunny Spain to the rest of Europe's internet. European governments can establish procurement rules to adhere to environmental protection or safety, but they must respect the principles of the market and free trade.
Europeans may easily believe that if the United States is a protectionist, then all other countries must follow suit, otherwise they will be easily defeated. In fact, the long-term economic advantage of the United States over other countries in the world stems from its greater investment in the market, rather than less. This makes the recent shift towards nationalism in the United States a distortion, rather than a role model to emulate. (Translated by Author Johnson and Chen Xin)
CandyLake.com 系信息发布平台,仅提供信息存储空间服务。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
猜你喜欢
- TSMC's 12 inch factory in Europe will start construction
- General Electric reportedly plans to acquire British startup Satavia
- General Electric reportedly plans to acquire British startup Satavia
- Microsoft's relationship with Reflection AI 'dodges' UK antitrust investigation
- The first batch of autopsy results for the British billionaire shipwreck case have been released: all four people had no water in their lungs and no signs of injury on their bodies. They suffocated to death before drowning
- Viking Cruises announces 2025 European river cruise routes: covering 11 countries and 42 destinations in Europe
- European privacy regulators investigate Google's use of data for artificial intelligence models
- Delivery of over 30000 units in a single month for two consecutive months, officially launched in Europe. Zhu Jiangming: Received 11 orders with soft hands
- European investment giant JAB acquires 86 million shares of JDE Peet's held by Mondelez International
- BeiGene BeiZeAn receives positive feedback from the European Medicines Agency's Committee for Medicinal Products for Human Use
-
美东时间周五,美股三大指数集体收涨,截止收盘,道指涨0.97%,本周累涨1.96%;纳指涨0.16%,本周累涨1.73%;标普500指数涨0.35%,本周累涨1.68%。 大型科技股涨跌不一,特斯拉涨近4%,微软涨1%,苹果、奈飞 ...
- budingmm
- 3 天前
- 支持
- 反对
- 回复
- 收藏
-
新华财经上海11月23日电默沙东与中国癌症基金会23日签署中国低卫生资源地区宫颈癌综合防控项目捐赠协议,将聚焦加速消除宫颈癌这一目标,计划在未来两年由默沙东向中国癌症基金会捐赠共计8.1万支HPV疫苗。 ...
- 逸风宝宝
- 3 天前
- 支持
- 反对
- 回复
- 收藏
-
11月21日晚,路特斯(LOT.US)公布2024年第三季度财报。1—9月,路特斯总交付量共有7617辆,同比增长136%。此外,公司前九个月总收入为6.53亿美元,同比增长翻番。 具体来看,路特斯全球各主要市场交付比例 ...
- 接通无语语sw
- 3 天前
- 支持
- 反对
- 回复
- 收藏
-
11月23日,香港科技大学举行荣誉博士学位颁授典礼及博士毕业典礼,其中向英伟达创始人兼CEO黄仁勋颁授工程学荣誉博士,称赞其带领英伟达在加速运算领域取得杰出成果,研发的GPU重新定义电脑视觉体验并为人工智能 ...
- 寒武季节俨
- 3 天前
- 支持
- 反对
- 回复
- 收藏