In contrast to the political developments of the light greens, official public statistics from Eurostat this week show that the impact of the not yet overcome green transition on the industrial production of most Polish countries is small. So far the locomotive of the European economy, Germany, is slowing down as if it were stopping. The stupid decline of industry in the Eurozone is worse than in the entire EU. What is the answer to the question whether and how suitable the euro is for me?
In November 2023, real industrial production fell by 0.3% in the euro area and by 0.2% in the EU as a whole compared to the previous month. This data was published on January 15 by Eurostat, the statistical office of the European Union. In June 2023, industrial production fell by 0.7% in the euro area and by 0.5% in the EU as a whole. This downward trend of EU industry was further illustrated by a year-on-year comparison: in November 2023, compared to November 2022, industrial production decreased by 6.8% in the euro area and by 5. 8% in the EU as a whole.
In the following days, more worrying trends are recorded: the decline in industrial production in the euro area in November 2023 compared to November 2022 was 10.3% less for capital investments, 8% for long-term consumption , by 6.9% for short-term consumption and by 5.2% for intermediate products, while energy production increased by 0.8%. Across the EU as a whole, investment sector output fell by 8.7%, long-term consumption by 8.4%, intermediate products by 5.6% and short-term consumption by 3.8% , while energy production increased by 1%.
Industrial production in the EU in November 2023 as a percentage change compared to November 2022
Source: Eurostat
The main European trade unions, in the context of the publication of Eurostat data, according to the Euractiv portal, were deeply concerned about the extent of the EU’s industrial decline, that structurally high energy prices have devastated the bloc’s economy .
Monthly output of capital goods such as buildings, machinery and equipment fell by 0.8% across the Union in November, following a 0.7% decline in June. The production of capital goods was therefore 8.7% lower in November compared to the same month in 2022. This is a very worrying situation, said Ludovic Voet, secretary of the European Trade Union Confederation at Euractiv. These companies are like a canary in a coal mine: they are mostly invested in long-term investments in buildings and equipment. The lack of investment we see today has dramatic consequences for working communities. According to Voet’s warnings, factories will close and jobs will be destroyed first and foremost in those industries that brought Europe to where it is today.
This includes, in particular, energy-intensive industries, including clay production, fertilizer and chemical industry production. Deindustrialization is a clear and present danger, especially for energy-intensive industries, which are vital to the ecosystems that follow them, said Tobias Gehrke, senior director of the European Council on Foreign Relations.
Among the countries for which data is available, the largest interannual declines were recorded in Ireland (-30.4%), Belgium (-11.6%) and Bulgaria (-10.9%). The highest growth was recorded in Denmark (+14.4%), Croatia (+4.8%) and Germany (+3.4%).
Monthly comparison between selected EU countries from 6 to 11/2023:
Zem6/23 (%)7/238/239/2310/2311/23esko1,5-2,8-0,2-1,22,8-1,4Nmecko-1,2-1,20,4-1, 70.00.3Poland0.5-0.81.00.7-0.1-0.9Slovensko-1.1-2.64.4-1.80.4-4.0
Table: Eurostat author
Meziron compares these countries in the difference in industrial development between 6-11/2023 and 6-11/2022:
Zem622/23 (%)7-22/238-22/239-22/2310-22/2311-22/23esko0,9-3,2-2,2-4,91,8-2,7Nmecko-1, 4-2.3-2.1-4.4-3.7-4.9Polish-1.1-2.3-1.9-1.0-0.6-3.1Slovenian3.6-4, 94.7-0.24.4-1.8
Table: Eurostat author
As can be seen from the chart below, which is based on industrial production in the EU in 2015 as the basis (100%) for the currency in subsequent years, after the sharp covid decline in 2020, last year, after a short rise in 2021 and 2022, industrial production started to decline again, which had repercussions on the Eurozone.
Industrial production in the EU and Eurozone (2015 is 100%)
Source: Eurostat
If the comparative index of the sector as a whole, calendar and weekly, compared to the base year 2015 (100%), today the Czech Republic is at 113.1%, Poland at an excellent 148%, Slovakia at 107, 9%, but Germany saw a huge drop to 91.6%. As the British newspaper The Financial Times pointed out in the title of the previous graph based on data from the Federal Statistical Office (Destatis), the sharp decline in German industry was caused by high energy prices and the energy share of industrial companies Germans compared to the total industry collapsed once again.
Prmyslov produces entirely in Germany and vigorously produces nron
Source: Financial Times according to Destatis
Earlier this year, the German government, in the words of Vice Chancellor Robert Habeck, declared that total production (not measured in months or even days) from solar and domestic energy had reached 55%, with a total of 150 GW of these renewable sources, i.e. double the maximum daily rate of German energy engineering. These unreliable sources are replaced in times of scarcity mainly by coal (38 GW) and natural gas (32 GW) generation. Both branches of the parallel German energy industry must be massively subsidized as they are economically unsustainable. Furthermore it is necessary to build an enormously powerful and astronomically expensive transmission line with a very complicated system. This leads to German electricity prices (and therefore gas, from which the Germans massively produce electricity), which are not competitive with the world. The facts relating to the collapse of German industry demonstrate this.
The German energy development is a strong warning for the Czech politicians behind the law, who, under pressure from the green lobby and its new oligarchy, would like to copy the German self-government models of the green transition. This is because the importance of the Czech industry for the R economy is greater than that of Germany in terms of GDP creation.
2024-01-19 23:00:38
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