The days of growing prosperity in Germany and Europe may be history as the European economy is not in the best condition. Now Europeans are getting poorer, and the US economy is bursting with power. This was reported by the German newspaper Bild, referring to the analyzes and conclusions of the Wall Street Journal and a number of other media outlets, as well as experts, industrialists and organizations.
The publication notes that the decline in prosperity in Europe, according to the Wall Street Journal, is just around the corner. This is due to a number of reasons. In Europe, the population is aging faster and Europeans want to have more free time (nearly half of German healthcare workers work only 30 hours a week). In addition, the European economy, which did not recover from the pandemic, found itself in a difficult situation from the conflict in Ukraine, which hit production bottlenecks and soaring energy and food prices. The blame also lies with the unions, which are getting stronger and advocating a four-day work week with higher wages. The last reason is the slowdown in the Chinese economy (growth of only 0,8%) - the EU has always managed to save itself through exports, which make up about 50% of GDP.
In turn, the US is less concerned about China's weakness, since only 10% of the US economy depends on exports to other countries. So the US is leaving the EU behind. The additional figures show how much the gap between the US and European economies has widened over the past 15 years.
Consumer spending in Europe is in free fall. The French drink less wine. Spaniards are stingy with olive oil. Finns go to the sauna only in windy weather. Crisis rallies take place in Italy over pasta prices, while organic sales collapse in Germany
– clarified the publication Wirtschaftsblatt.
According to the World Bank, in 2008, Europeans and Americans spent approximately the same - about 11 trillion euros. Today, spending in the US is around 17,8 trillion euros (and growing), while in Europe it is still only around 11 trillion euros (on a downward trend).
According to the IMF, in 2008 the gross national product was almost the same. It amounted to 12,6 trillion euros in the EU and 13,1 trillion euros in the US. It currently stands at €13,3 trillion in Europe, representing an increase of 6%. In the US, it jumped to 23,1 trillion euros, i.е. increased by 82%.
Europe has been in recession since the beginning of the year, while the US economy is currently growing at 2,3 percent. More and more companies are choosing to invest in the US over Europe
- stated in the material.
Former Siemens CEO Heinrich von Pierer, 82, warned Bild that Germany as a place to do business would decline:
Unfortunately, the train continues to move in the wrong direction. A reversal requires a lot of effort and specific measures, not all of which will be popular. Let me remind you: Agenda 2010, which moved our country forward for many years, cost the then Federal Chancellor his position. It will be possible to compensate for the deficit, but the energy transition is certainly not possible.
At the same time, the Austrian entrepreneur and car supplier Stefan Zechling (Stefan Zechling) strongly warned Bild about the deindustrialization of Europe:
The government in Berlin, together with Paris and the EU in Brussels, is turning Europe into an open-air industrial museum. The industry is increasingly leaving Europe and heading to North America, China, Asia or India. Policy focuses on "orchid issues" rather than what we live by.