EU leaders are furious that the US is making lots of money from the proxy war in Ukraine by selling weapons and exporting expensive natural gas. Meanwhile European industries are being destroyed as high energy prices and US subsidies push its companies to go overseas.
by Ben Norton
Part 4 - Companies leaving Europe for United States
In a November report titled “European industry pivots to US as Biden subsidy sends ‘dangerous signal,’” the Financial Times reported the same: the Inflation Reduction Act “is moving momentum a lot from Europe to the US.”
The FT wrote:
The FT wrote:
The combination of the Biden Administration’s $369bn package and high energy costs in Europe, where even after recent declines gas prices remain five times more expensive than in North America, is sounding alarm bells in EU capitals.
“I think we need a European wake-up on this point,” French president Emmanuel Macron told executives from domestic industrial companies such as glassmaker Saint-Gobain and cement maker Lafarge in a speech last week.
Germany’s economy minister, Robert Habeck, described the US support as “excessive” and “hoovering up investments from Europe”.
The EU has accused Washington of breaching World Trade Organization rules and set up a task force with the Biden administration to resolve their differences.
“I think we need a European wake-up on this point,” French president Emmanuel Macron told executives from domestic industrial companies such as glassmaker Saint-Gobain and cement maker Lafarge in a speech last week.
Germany’s economy minister, Robert Habeck, described the US support as “excessive” and “hoovering up investments from Europe”.
The EU has accused Washington of breaching World Trade Organization rules and set up a task force with the Biden administration to resolve their differences.
The Wall Street Journal published a similar article in September, titled “High Natural-Gas Prices Push European Manufacturers to Shift to the U.S.”
“The Ukraine war is driving up energy costs in Europe, while relatively stable prices and green-energy incentives are luring companies to the U.S.”, the newspaper wrote.
“Battered by skyrocketing gas prices, companies in Europe that make steel, fertilizer and other feedstocks of economic activity are shifting operations to the U.S., attracted by more stable energy prices and muscular government support,” the Wall Street Journal added.
The report predicted that Europe “could face high prices, at least for gas, well into 2024, threatening to make the scarring on Europe’s manufacturing sector permanent.”
“The Ukraine war is driving up energy costs in Europe, while relatively stable prices and green-energy incentives are luring companies to the U.S.”, the newspaper wrote.
“Battered by skyrocketing gas prices, companies in Europe that make steel, fertilizer and other feedstocks of economic activity are shifting operations to the U.S., attracted by more stable energy prices and muscular government support,” the Wall Street Journal added.
The report predicted that Europe “could face high prices, at least for gas, well into 2024, threatening to make the scarring on Europe’s manufacturing sector permanent.”
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