The cat is out of the bag. After months of denial, it is now conventional wisdom that Germany — and Europe more generally — faces deindustrialisation due to the end of cheap Russian piped gas. “Germany’s Days as an Industrial Superpower Are Coming to an End,” reads a headline on Bloomberg.

From London to Berlin, Western governments do not have a serious economic growth plan. Media outlets have started to admit this grim reality because there is no longer any point in denying it.

Privately, Americans shrug their shoulders and hint that this means they will no longer face competition from Europe. But watching the economy of your most dependable ally — not to mention a key trade partner — implode is not cynical Machiavellian statecraft: it is folly. American leaders talk about creating a new economic bloc which only includes “democratic” nations, only to dismiss the destruction of the European economy. It is obvious to everyone except the truest of the true believers: America has no strategy either.

America’s negligence of its core ally will likely lead to electoral tremors across the continent in the coming years. There is every chance that Europe will drift away from American influence and start to build pragmatic relationships with other countries. The big question is where this leaves Britain, which has much closer ties with the United States than the rest of the continent. It is a question that British leaders will have to ask themselves seriously moving forward.

  • @nexusband
    link
    -19 months ago

    GDP is not the only measure of the economy. In fact it’s a really bad one

    I agree - which makes the rest of the numbers very odd, because most companies posted a substantial plus for 2023.