The issue is the relative cost. Since energy costs in Europe are higher than in Asia or America that means overall input costs for manufacturing are also higher. Whatever energy issues may exist elsewhere, they’re not as severe as the ones in Europe. This makes it impossible for businesses doing manufacturing in Europe to compete with those doing it elsewhere.
Both China and the US are actively luring the industry out of Europe as we speak. Once the industry moves out of Europe, there is little incentive for it to move back since that’s a huge cost. This will absolutely affect long term competitiveness of Europe.
The issue is the relative cost. Since energy costs in Europe are higher than in Asia or America that means overall input costs for manufacturing are also higher. Whatever energy issues may exist elsewhere, they’re not as severe as the ones in Europe. This makes it impossible for businesses doing manufacturing in Europe to compete with those doing it elsewhere.
Both China and the US are actively luring the industry out of Europe as we speak. Once the industry moves out of Europe, there is little incentive for it to move back since that’s a huge cost. This will absolutely affect long term competitiveness of Europe.