America innovates, China replicates, Europe regulates
The world has changed, but the EU’s worldview hasn’t changed with it
Last week, I attended a meeting of mainly European intellectuals and policymakers in the Italian Alps.
One belief that everyone in Trump’s camp shares is that China has been a free rider in the global trading system, and that the resulting imbalances must be corrected.
US today is “in the position of some blend of the UK, France, and Weimar Germany in 1930”.
America is a global financial centre with the world’s reserve currency, but also the world’s largest debtor with a hollowed out industrial base.
If the US succeeds in decoupling its economy from China’s without major inflation or a market crash, the EU would be even more exposed to Chinese mercantilism
As former EU trade commissioner Pascal Lamy put it in a main stage session at the Grand Continent summit last week: “The EU is predictable, slow, and rules based. Trump is the opposite.
While intellectuals debated in the Alps, the French government collapsed.
Rana Foroohar Financial Times 9 December 2024
https://www.ft.com/content/5984afb1-6f9c-47ad-a398-5821d4648c33
– Vi vet alla nu, och vi visste alla då, att Grekland fuskade med sin statistik berättar Pascal Lamy, WTO-chefen som på nittiotalet var EU-kommissionens ordförande Jacques Delors högra hand.
https://englundmacro.blogspot.com/2012/02/vi-vet-alla-nu-och-vi-visste-alla-da.html
The biannual gathering of the European elites at the Ambrosetti forum – a mini-Davos on Lake Como, on Chatham House rules – was a succession of grim warnings, punctuated by confessions from battle-weary officials that the half-formed structure of the EU makes it almost impossible to solve any of the problems.
“China shock 2.0”, this time larger and rising far up the technological ladder. “If we go on like this, Europe is simply going to die,” said a doyen of the EU illuminati.
“America innovates, China replicates, Europe regulates. It is an extraordinary picture of our situation, because it’s true,” said Italy’s prime minister, Giorgia Meloni.
“In 1990 the EU of 12 states made up 26.5pc of world GDP. Today the EU of 27 states makes up 16.1pc, while the US is still at 26pc. We were a big weight in the world but that is no longer the case,” she said.
Ambrose Evans-Pritchard Telegraph 10 September 2024
https://englundmacro.blogspot.com/2024/09/america-innovates-china-replicates.html
Chatham House Rule
https://en.wikipedia.org/wiki/Chatham_House_Rule
Tillbaka till Rolfs länktips 9 december 2024
https://englundmacro.blogspot.com/2024/12/rolfs-lanktips-9-december-2024.html
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