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> I don’t know, seems fine. Sure, on paper. However, energy prices and increasing curbing down on CO2 emissions drive heavy industry (the one Germany was built
by rad_gruchalski 3y ago
> I don’t know, seems fine.
Sure, on paper. However, energy prices and increasing curbing down on CO2 emissions drive heavy industry (the one Germany was built on) away from Germany. It's getting worse and this is the story line in the mainstream media.
The best example here is Viessmann take over by Carrier Global. In the midst of a heat pump boom, a Germany company manufacturing heat pumps sells itself to an American business: https://www.cleanenergywire.org/news/us-takeover-german-heat-pump-maker-viessmann-sparks-fears-key-industry-loss https://www.cleanenergywire.org/news/us-takeover-german-heat.... The reason? Many believe it's down to how expensive and difficult it is to manufacture these in the EU in the current eco climate.
This shows where the German industry is heading. The media often reports that about 30% of heavy manufacturing industry is thinking of leaving Germany and moving to the US or other places.
- lispm 3y ago> The media often reports that about 30% of heavy manufacturing industry is thinking of leaving Germany and moving to the US or other places. Especially because the US provides a lot of local subsidies: https://en.wikipedia.org/wiki/Inflation_Reduction_Act https://en.wikipedia.org/wiki/Inflation_Reduction_Act
- signatoremo 3y agoEurope itself has a lot of local subsidies. Airbus, the space industry, France’s agriculture, the list goes on. Europe also tries to attract chipmakers like TSMC or Intel to open plants there with generous incentive. Intel is said to get $10 billions from Germany: https://www.reuters.com/technology/chipmakers-plans-factories-europe-2023-02-16/ https://www.reuters.com/technology/chipmakers-plans-factorie...
- lispm 3y agoThe US also has a lot subsidies & protectionism: Boeing, the space industry, agriculture, chip industry, ... the US tries to get TSMC and others to open plants there with generous incentives, etc Plus they added even more subsidies and protectionism lately.
- eduction 3y agoIt’s one thing to say German economy is getting worse, I don’t take issue with that. It’s another thing entirely to say it’s “no longer exceptional”. Especially while quoting exceptional stats like lower unemployment than US and rest of continent. All economies have challenges but the article made a more novel claim than that and failed to prove it by quite a ways IMO.