European economy – Europa Site http://europasite.net/ Tue, 19 Oct 2021 01:29:13 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://europasite.net/wp-content/uploads/2021/07/icon-2021-07-05T150327.373-150x150.png European economy – Europa Site http://europasite.net/ 32 32 Coronavirus: What’s Happening in Canada and Around the World Monday https://europasite.net/coronavirus-whats-happening-in-canada-and-around-the-world-monday/ https://europasite.net/coronavirus-whats-happening-in-canada-and-around-the-world-monday/#respond Mon, 18 Oct 2021 23:34:13 +0000 https://europasite.net/coronavirus-whats-happening-in-canada-and-around-the-world-monday/ The last: All Ontarians vaccinated against COVID-19 can now download their enhanced certificates, which include a QR code. The provincial government said the scannable documents will allow faster entry to facilities requiring proof of vaccination. The improved system officially goes into effect on Friday, but Ontarians can get their new vaccine certificates before that date […]]]>

The last:

All Ontarians vaccinated against COVID-19 can now download their enhanced certificates, which include a QR code.

The provincial government said the scannable documents will allow faster entry to facilities requiring proof of vaccination.

The improved system officially goes into effect on Friday, but Ontarians can get their new vaccine certificates before that date and businesses can start using a new app to verify those codes.

Residents with birthdays between January and April were able to upload the enhanced vaccination certificate to the province’s COVID-19 website on Friday, and other cohorts gained access over the weekend.

Under Ontario’s vaccination certificate program, only those who have been fully vaccinated against COVID-19 – or who have a valid medical exemption from a physician – can access certain settings.

They include theaters, gymnasiums, nightclubs and restaurant dining areas.

Ontario reported 373 new cases of COVID-19 and two more deaths on Monday. According to the provincial health minister, there were 168 people in ICU due to COVID-19. Christine Elliott noted, however, that not all hospitals report data on weekends.

Meanwhile, Saskatchewan will transfer six COVID-19 patients to Ontario over the next 72 hours as the Prairie province faces immense strain on its healthcare system.

Saskatchewan’s hospitalization dashboard on Monday showed 85 COVID-19 patients in intensive care, surpassing previous highs. There are normally 79 intensive care beds in the province, according to the Saskatchewan Health Authority.

From the Canadian Press and CBC News, latest update 5:15 p.m. ET


What’s happening across Canada

WATCH | How COVID-19 Vaccination Mandates Impact Professional Sports:

The impact of COVID-19 vaccination mandates on professional sport

Sports journalists Donnovan Bennett and Andi Petrillo speak to Ian Hanomansing about the return of Canadian fans to the stands and the reaction of professional athletes to COVID-19 vaccination mandates. 6:11


What is happening in the world

WATCH | Vaccine inequity continues to increase infections in hot spots, according to a WHO official:

Vaccine inequity “fuels transmissions” despite falling number of cases, WHO official says

Dr Maria Van Kerkhove, COVID-19 technical lead at the World Health Organization, told Power & Politics that despite the weekly drop in cases and deaths around the world, the lack of equity in vaccines continues increase infections in COVID-19 hotspots around the world. 9:02

As of late Monday morning, more than 240.8 million cases of COVID-19 had been reported worldwide, according to the Johns Hopkins University Coronavirus Tracker. The death toll worldwide stood at over 4.9 million.

In Europe, the UK reported its highest number of new COVID-19 cases in three months on Monday with 49,156 new infections.

The Italian president sharply criticized on Monday the violence that erupted amid protests over the country’s new coronavirus workplace health card requirement, saying it appeared to be aimed at jeopardizing Italy’s economic recovery.

President Sergio Mattarella spoke as riot police again clashed with protesters in the port in the northern city of Trieste, sometimes using water cannons to push them back.

Italy on Friday became the first major European economy to require all workers – from hairdressers to factory workers – to present proof of vaccination, a negative test in the past 48 hours or proof of having recently recovered COVID-19 to enter workplaces.

Italian police used a water cannon and tear gas to disperse people blocking a door while protesting against vaccination rules at the country’s workplace in the port of Trieste. (ANSA / AFP / Getty Images)

Meanwhile, the total number of coronavirus infections in Russia has exceeded eight million, or more than five percent of the population, and the daily number of infections topped previous highs with 34,325 new infections over the course of the last day. The National Coronavirus Task Force also reported 998 new deaths from COVID-19 on Monday.

In the Americas, the NHL suspended San Jose Sharks forward Evander Kane for 21 games for submitting a fake COVID-19 vaccination card.

WATCH | US police fight COVID-19 vaccination warrants:

US police fight against COVID-19 vaccination warrants

Some police officers in the United States are battling warrants to declare their COVID-19 vaccination status, a move that at least one mayor has called “insubordination.” 1:46

In the Middle East, Saudi sports fans will be allowed to attend full capacity events at all stadiums and other sports facilities from Sunday, the country’s sports ministry said in a statement on Saturday.

In AfricaSouth Africa’s Medicines Regulatory Authority said on Monday it did not approve a request for emergency use for the Russian Sputnik V COVID-19 firing at this time, citing concerns over its safety for people at risk of HIV.

Egypt will require public sector employees to be vaccinated against COVID-19 or take a weekly coronavirus test to be allowed to work in government buildings after November 15, a cabinet statement said on Sunday.

In the Asia Pacific region, Thailand will stop using the vaccine developed by Chinese company Sinovac when its current stock runs out, a senior official said. Thailand has used the vaccine extensively in combination with vaccines developed by the West.

New Zealand Prime Minister Jacinda Ardern said on Monday that the country’s largest city, Auckland, would remain stranded for another two weeks as it seeks to control the spread of the delta variant of the coronavirus.

From The Associated Press and Reuters, latest update 7:15 p.m. ET


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Brussels hosts a delicate international debate https://europasite.net/brussels-hosts-a-delicate-international-debate/ https://europasite.net/brussels-hosts-a-delicate-international-debate/#respond Sun, 17 Oct 2021 17:15:12 +0000 https://europasite.net/brussels-hosts-a-delicate-international-debate/ This article is an on-site version of our The Week Ahead newsletter. Register now here to receive the newsletter directly in your inbox every Sunday Hello and welcome to the working week. Joining an international club can be complicated, something to be unveiled over the next seven days with reunions for some of the most […]]]>

This article is an on-site version of our The Week Ahead newsletter. Register now here to receive the newsletter directly in your inbox every Sunday

Hello and welcome to the working week.

Joining an international club can be complicated, something to be unveiled over the next seven days with reunions for some of the most important of them, and 76th birthday celebrations for the biggest of all, the UN.

EU leaders will meet in Brussels on Thursday and Friday for the European Council summit. There will be a lot to discuss, from the role of the EU in stabilizing gas prices to the importance of the transatlantic partnership and bloc’s relations with China – there will also likely be pledges to share the Covid-19 vaccine. with the developing world – but brace yourself for a row, with Dutch Prime Minister Mark Rutte voicing concerns over Poland’s failure to comply with EU law.

It seems like a good time to publish FT’s Europe Express newsletter, which will cover these issues in more detail. You can sign up to receive it in your inbox here. You can also email me about The Week Ahead: jonathan.moules@ft.com.

Brussels is home to not one but two international clubs. NATO defense ministers also meet in the Belgian capital at the weekend. This gathering of military leaders may give an indication of the group’s determination in the aftermath of the exit from Afghanistan and the creation of the Australian-British-American alliance, Aukus.

Europe does not have a monopoly on cross-border networks. New Zealand will also host a meeting this week, bringing together finance ministers from Asia-Pacific economic cooperation countries to discuss macroeconomic and financial issues in their region.

Companies

Profit season is in full swing. It will be a busy week for the Paris office of the FT. Many announcements from French companies will be business updates, but it won’t just be the numbers that will be of interest.

For the first time, Danone shareholders will hear CEO Antoine de Saint-Affrique speak publicly. Many are hoping he will give clues to his recovery plans – an uphill battle.

Carrefour is reporting on Wednesday, but what many will want to hear is what CEO Alexandre Bompard has to say about the supermarket’s strategy after buyout talks failed with Auchan, a small private family-owned French food retailer. billionaire Mulliez.

Recovery from the pandemic will be a theme elsewhere. Anglo-Dutch consumer goods company Unilever, which reports Thursday, is grappling with rising costs for food, energy and packaging. The question is whether its brands have enough strength to pass some of that extra expense on to consumers, preserving Unilever’s margins.

The most viewed number for Netflix is ​​the subscribers. Love it or hate it, the success of Squid Game got people talking about the streamer’s content. But will this allow it to attract new customers? In the last quarter, the tech media group beat forecasts by adding 1.5 million new subscriptions, but it was much slower than at the same time in 2020, when the pandemic kept us all at home.

Finally, or rather finally, the shareholders of Wm Morrison will vote on Tuesday on the takeover offer of Clayton, Dubilier & Rice. The company needs 75 percent backing for the CD&R deal to go through. Some shareholders, including the largest, Silchester, had opposed the offers earlier in buyout talks, but sentiment has heated since CD&R raised its offer this month to 287 pence a share.

Economic data

We start the week with the Chinese GDP figures. Here are five things to watch out for in data.

The UK is providing the inflation news this week with the release of its Consumer Price Index and its Producer Price Index. The overall figure is expected to decline – albeit temporarily – but the recent surge in short-term gilt yields indicates that money markets feel that a rate hike is about to suppress further increases.

For international comparisons of the economic recovery, there are a handful of reports on Markit’s G7 purchasing managers index.

Friday’s data on consumer confidence and retail sales from Gfk will indicate whether rising energy prices and Covid uncertainty are slowing the UK’s recovery.

Main economic and corporate reports

Here’s a more comprehensive list of what to expect in terms of corporate reports and economic data this week.

On Monday

  • China, Q3 GDP data and monthly retail sales figures

  • UK Rightmove monthly house price figures

  • United States, monthly industrial production and capacity utilization figures

  • Results: Charles Schwab T3, Philips electronics T3, Schröders update Q3, State Street T3

Tuesday

  • BHP Billiton First quarter production figures

  • Hungary, interest rate decision

  • WM Morrison shareholder vote on the takeover bid for Clayton, Dubilier & Rice

  • United States, data for new residential construction

  • Results: Bank of New York Mellon T3, Bellway FY, Canadian National Railway Company T3, Danone Q3 sales, Deutsche Börse T3, Halliburton T3, Johnson & johnson T3, Kering Q3 sales, Netflix T3, Omnicom T3, Philip morris T3, Procter & Gamble T3, TV2 T3, Telefonaktiebolaget LM Ericsson T3, Business travelers T3

Wednesday

  • Canada, inflation data

  • China, key rate

  • EU, Eurostat inflation data

  • Germany, monthly producer price index for industrial products

  • United Kingdom, Office for National Statistics data on inflation and public sector finances

  • United States and the Federal Reserve’s Beige Book on the Health of the Economy

  • Results: Akzo Nobel T3, ASML T3, Biogen T3, crossroads Q3 sales, Deliveroo 3rd quarter commercial update, IBM T3, Kuehne nagel T3, Nasdaq T3, Nestle Q3 sales, Northern Trust T3, rock Q3 sales, Segro 3rd quarter commercial update, Svenska Handelsbanken T3, Verizon Communications T3

Thursday

  • Anglo-American Q3 production update

  • EU and European Commission shine a light on consumer confidence figures

  • Rentokil Initial Q3 Business Update

  • Turkey, one-week repo rate

  • UK and CBI Quarterly Industrial Trends Survey

  • UK and ONS Retail Sales Figures

  • Business Outlook for the Philadelphia Fed in the United States

  • Results: ABB T3, AT&T T3, Barclays T3, black stone T3, Danaher T3, DNB Bank T3, Dow T3, Hermes Q3 sales, Intelligence T3, L’Oreal T3, Marsh & McLennan T3, Mattel T3, Nordea Bank T3, Pernod Ricard first quarter sales, Trusted industries T2, SAP T3, Break T3, Southwest Airlines T3, Swedish bank T3, TeliaSonera T3, Pacific Union T3, Unilever T3, Vivendi Q3 sales, Volvo T3, Whirlpool T3

Friday

  • Canada, monthly retail sales figures

  • Eurozone, France, Germany, Japan, United Kingdom, United States: data from the purchasing managers index of Markit’s flash composite (manufacturing and services)

  • UK Monthly Retail Sales and Consumer Confidence Data from GfK

  • Results: American Express T3, Hitachi T2, Hyundai mobis T3, Remy Cointreau H1, Renault T3, Royal Caribbean Group T3, Saab T3, Schlumberger T3, Sika T3

Global events

Finally, here’s a look at other events and milestones this week.

On Monday

  • Greece, torchlighting ceremony in Olympia for the Beijing 2022 Olympic Winter Games

  • UK, vaccination passport application begins in Scotland

Tuesday

  • International Aerospace and Defense Exhibition opens in South Korea and Seoul

  • Bank of England Governor Andrew Bailey speaks at joint research conference with Banca d’Italia on macro-financial impacts of net zero transition

Wednesday

  • France, fossilized remains of ‘Big John’, largest triceratops dinosaur discovered, will be sold at Paris auction house

  • Libya, 10th anniversary of the death of ousted leader Muammar Gaddafi

Thursday

  • Belgium and EU leaders meet for European Council summit in Brussels

  • France, release of Asterix and the Griffon, the first comic strip to appear since the death of the co-creator and illustrator of Asterix Albert Uderzo

  • UK Queen attends service in Armagh to mark Northern Ireland centenary

Friday

  • Belgium and NATO Defense Ministers meet in Brussels

  • New Zealand and Asia-Pacific Economic Cooperation Finance Ministers meet to discuss regional macroeconomic and financial issues

  • Norway, opening of Munch, a museum in Oslo dedicated to the Norwegian modernist painter Edvard Munch

  • Russia, Israeli Prime Minister Naftali Bennett to meet Russian President Vladimir Putin during country visit

Saturday

  • In the United States, the auction of 11 paintings and works by Picasso in Las Vegas is expected to fetch $ 100 million, making it the most valuable sale of its kind dedicated to the Spanish artist

Sunday

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Britain’s obsession with sovereignty is hurting the economy https://europasite.net/britains-obsession-with-sovereignty-is-hurting-the-economy/ https://europasite.net/britains-obsession-with-sovereignty-is-hurting-the-economy/#respond Sat, 16 Oct 2021 15:00:00 +0000 https://europasite.net/britains-obsession-with-sovereignty-is-hurting-the-economy/ Britain’s obsession with sovereignty to the exclusion of virtually all other considerations, including economic benefit, is a constant source of astonishment to European negotiators, which in itself perhaps demonstrates how little they understand the policy of Euroscepticism. Until they have to face their own constituents. Now that he’s a French presidential candidate, Michel Barnier, the […]]]>

Britain’s obsession with sovereignty to the exclusion of virtually all other considerations, including economic benefit, is a constant source of astonishment to European negotiators, which in itself perhaps demonstrates how little they understand the policy of Euroscepticism. Until they have to face their own constituents.

Now that he’s a French presidential candidate, Michel Barnier, the EU’s former chief Brexit negotiator, is apparently as hostile to the ECJ as Lord Frost and Johnson.

“We must recover our legal sovereignty so that we are no longer subject to judgments of the European Court of Justice or the European Court of Human Rights,” Barnier told French voters in the midst of the electoral campaign. Ridiculous. Looks like suspicion of the ECJ rule extends far beyond UK borders.

With everything going on, you’d expect international capital to be avoiding Britain like the plague already. Yet, perhaps strangely, and much to the relief of HM Treasury – who must constantly worry about how to finance Britain’s dual budget and trade deficit – there isn’t much evidence of this.

The number of foreign direct investment projects declined significantly last year, but not as much as one might expect given the ravages of Covid. In terms of numbers, Britain is still tied with France and Germany.

According to an EY survey, furthermore, Britain this year regained first place as Europe’s most attractive investment destination, helped, it seems, by the advance it acquired in the deployment of vaccines.

These discoveries certainly predate the scenes of chaos on British courtyards, the energy crisis, staff shortages, empty supermarket shelves and the latest deterioration in relations with the EU; but even so, confidence in the UK economy remains remarkably resilient. It’s kind of a testament to the UK’s underlying strengths.

Yet if things continue as they are, it will inevitably take its toll. None of the supply chain tensions plaguing the UK economy are unique to Britain. They are very comprehensive in nature.

But the fact of not adequately preparing for the break with Europe has undoubtedly made them worse here than elsewhere.

Cold turkey can have its merits. But these are big changes, both in the structure of the labor market and in the way we trade goods with the continent, and they have not been properly thought out or planned.

Hope, as they say, is not a strategy.


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Investors hide inflation fears to renew equity bets https://europasite.net/investors-hide-inflation-fears-to-renew-equity-bets/ https://europasite.net/investors-hide-inflation-fears-to-renew-equity-bets/#respond Fri, 15 Oct 2021 08:12:00 +0000 https://europasite.net/investors-hide-inflation-fears-to-renew-equity-bets/ Dollar close to three-year high against yen The FTSE 100 recovers all the ground lost in the pandemic Oil prices return to near multi-year highs Bitcoin at six-month high, close to record Goldman Sachs earnings, US retail sales expected LONDON, Oct. 15 (Reuters) – Shares rose on Friday, buoyed by strong corporate results, but high […]]]>
  • Dollar close to three-year high against yen
  • The FTSE 100 recovers all the ground lost in the pandemic
  • Oil prices return to near multi-year highs
  • Bitcoin at six-month high, close to record
  • Goldman Sachs earnings, US retail sales expected

LONDON, Oct. 15 (Reuters) – Shares rose on Friday, buoyed by strong corporate results, but high oil prices and slowing car sales in Europe served as a reminder of headwinds for the global economy.

The STOXX index (.STOXX) of 600 European stocks rose 0.2% to three-week highs. The UK’s FTSE 100 (.FSTE) also gained 0.2%, as the UK blue chip index recovered all of the ground lost since the coronavirus pandemic began in March of last year.

“There is an element of appeasement. Markets are trying to determine if inflation is transient, if supply chain disruptions are going to translate into higher costs,” said Mike Hewson, chief market analyst. at CMC Markets.

“But this week’s earnings from various companies allay some concerns that companies won’t be able to pass some of these cost increases on to consumers, and that’s why we’re seeing an increase in risk,” said Hewson.

Strong earnings from major US banks on Thursday – with more of the same expected from Goldman Sachs (GS.N) later on Friday – helped the S & P500 index on Wall Street register its biggest daily percentage increase since early March and send off of European lenders (.SX7P) higher at the start of the session.

The return of optimism in the markets will be tested, however, by weaker growth data expected from China next week and the impact of strengthening oil prices on consumers as the months approach. winter, Hewson said.

European car registrations fell by more than a quarter in September, and Toyota Motor Corp (7203.T) announced it would cut global production in November, as chip shortages and supply chain issues continued to weigh on the sector.

Investors were also trying to determine where bonds went next after 10-year Treasury yields hit 10-day lows, hoping for a direction from expected US retail sales figures later today.

“With no strong case for either direction and many investors likely to be sitting on a dismal performance as major bond indices have been in the red since the start of the year, return volatility is expected stay high in the coming months, ”UniCredit told clients. in a note.

Asian stocks edged higher on Friday, building on Wall Street’s positive lead, although concerns about the Chinese economy limited gains.

Fund Flows to Global Equity Bonds and Money Markets

BRENT BRUT EYES $ 85

Oil prices have hit multi-year highs, a drag on the growth of energy-importing markets in North Asia, but good news for some energy-exporting markets in Southeast Asia.

US crude rose 1% to $ 82.13 a barrel, back near Monday’s seven-year high of $ 82.18. Brent crude rose 1% to $ 84.88 a barrel, around its three-year high on Monday.

Bitcoin hit a six-month high of $ 60,000 on Friday, approaching the April record, as traders grew increasingly confident that U.S. regulators would approve the launch of an exchange-traded fund based on its futures contracts. Read more

The largest MSCI Asia-Pacific stock index outside of Japan (.MIAPJ0000PUS) gained 1.1% and was forecast for a weekly gain of 1.7%, which would be its best weekly performance since early September, while Japan’s Nikkei jumped 1.81%, led by tech stocks. .

Analysts largely attributed the gains in Asia to the US rally.

US stocks rose overnight after data showed lower new jobless claims, lower than expected ex-factory price inflation and better-than-expected results for the four largest consumer banks American. Read more

“The stagflation story has had cold water,” said Kyle Rodda, analyst at IG Markets.

Chinese stocks rose more cautiously than elsewhere with blue chips (.CSI300) up 0.43% ahead of next week’s growth figures.

“We expect GDP growth to slow to 4.6% yoy in the third quarter from 5.6% previously, given continued weakness in consumption and services amid repeated outbreaks of COVID , and erasing the weak base from the previous year, ”Barclays analysts said in a note.

In forex markets, the dollar again hit an almost three-year high against the yen, with the dollar buying 114.12 yen, the highest since late 2018.

The dollar index, which measures the greenback against a basket of currencies, was down slightly on that day, at 93.89 and poised for its first weekly decline against its major peers since the start. last month, after losing some ground on the pound sterling and the euro. .

The benchmark 10-year Treasury yield was 1.5458%, slightly higher on the day, following a downtrend this week from Tuesday’s four-month high of 1.631%.

Bitcoin on the rise

Reporting by Huw Jones, additional reporting by Alun John; Editing by Muralikumar Anantharaman, Sam Holmes and Susan Fenton

Our standards: Thomson Reuters Trust Principles.


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The European Commission gives formal notice to 5 certification agencies in India https://europasite.net/the-european-commission-gives-formal-notice-to-5-certification-agencies-in-india/ https://europasite.net/the-european-commission-gives-formal-notice-to-5-certification-agencies-in-india/#respond Tue, 12 Oct 2021 20:00:00 +0000 https://europasite.net/the-european-commission-gives-formal-notice-to-5-certification-agencies-in-india/ India’s total organic exports amounted to 8.88 lakh ton valued at $ 1.04 billion in FY21. The European Commission (EC) has put five certification agencies in India on formal notice after finding traces of a chemical, above its allowable limit, and even in organic sesame seeds exported from the country. In a draft notification published […]]]>
India’s total organic exports amounted to 8.88 lakh ton valued at $ 1.04 billion in FY21.

The European Commission (EC) has put five certification agencies in India on formal notice after finding traces of a chemical, above its allowable limit, and even in organic sesame seeds exported from the country.

In a draft notification published on October 5, the European Commission mentioned that CU Inspections India, Ecocert India, Indian Organic Certification Agency (Indocert), Lacon Quality Certifications and OneCert International should be removed from the list of approved agencies by India. . When this notification project becomes operational, not all organic products certified by these agencies in India may be accepted in Europe.

This draft has not yet been adopted or approved by the Commission as these are its preliminary views and cannot be considered as an official position of the EC.

A large number of lots of thousands of tonnes of allegedly organic sesame seeds contaminated with ethylene oxide (ETO) have been imported from India since October 2020, he said in the notification. India’s exports of sesame seeds (including organic) to the EU fell 47% to $ 71 million (531 crore rupees) in FY 21. In volume, the drop is 38% at 43,835 tons.

There were around 90 incidents of rejection of a batch of sesame seeds due to detection of ETO, which were also captured in the EU’s internal organic farming information system (OFIS) , said industry experts. ETO is carcinogenic to humans and contamination levels varied depending on the shipment.

Meanwhile, the US-based IOAS Accreditation Committee has revoked OneCert International’s accreditation for organic textiles. The agency has given the Indian certification company time until November 5 to appeal its decision and notify by October 22 if it wishes to appeal.

“The proposed action could further strengthen India’s organic program. The export of organic products will not face any problem as we have 28 certification agencies. India needs to reinvent its organic brand and rejuvenate this sector through policy innovation, ”said S Chandrasekaran, Trade Policy Analyst.

India’s total organic exports amounted to 8.88 lakh ton valued at $ 1.04 billion in FY21.


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Ten EU countries call for inclusion of nuclear in taxonomy: Energy & Environment https://europasite.net/ten-eu-countries-call-for-inclusion-of-nuclear-in-taxonomy-energy-environment/ https://europasite.net/ten-eu-countries-call-for-inclusion-of-nuclear-in-taxonomy-energy-environment/#respond Mon, 11 Oct 2021 15:08:50 +0000 https://europasite.net/ten-eu-countries-call-for-inclusion-of-nuclear-in-taxonomy-energy-environment/ October 11, 2021 Nuclear energy must be included as part of European taxonomy before the end of this year, energy and economy ministers from ten EU member states said in a joint article published yesterday in several European newspapers. The ministers declared that nuclear energy is “an affordable, stable and independent energy resource”. They noted […]]]>

October 11, 2021

Nuclear energy must be included as part of European taxonomy before the end of this year, energy and economy ministers from ten EU member states said in a joint article published yesterday in several European newspapers. The ministers declared that nuclear energy is “an affordable, stable and independent energy resource”. They noted that it protects European consumers from price volatility and contributes to national energy security.

The European Commission building in Brussels (Image: Dimitris Vetsikas / Pixabay)

“The decarbonization of our economy requires immediate and profound transformations in our [energy] production and consumption patterns, to make them less CO2 emitting, “said the article submitted by 15 ministers from Bulgaria, Croatia, Czech Republic, Finland, France, Hungary, Poland, Romania, Slovakia and Slovenia.” This means massively electrifying our consumption and developing low-carbon industries such as hydrogen – which also, in turn, require the production of more electricity. “

“Nuclear power must be part of the solution,” they said. “Renewable energies play a key role in the energy transition, but we need other sources of carbon-free energy to meet our needs in a coherent and sufficient manner. Nuclear power is essential. It already represents almost half of the production of carbon-free electricity in Europe.

“Nuclear power is safe and innovative,” the article adds. “For more than 60 years, the European nuclear industry has proven its reliability and safety. It is one of the most regulated industries in the world, with 126 reactors in operation in 14 European countries. The constant exchanges between the agencies give this industry the capacity to guarantee the highest safety standards in the world, in particular for the treatment of waste.

“The European nuclear industry is a leading industry in the world, with unique disruptive technologies. Its development could generate nearly a million highly qualified jobs in Europe. As cooperation between Member States develops, we will soon be able to build new modern reactors, such as small modular reactors.

While EU member states are free to choose their own energy mix, ministers said: “It is essential that our rights in this area are respected and that all low-carbon energy production technologies are treated fairly. “

The article adds: “It is therefore absolutely essential that nuclear energy is included in the framework of European taxonomy before the end of this year. All the scientific analyzes commissioned by the European Commission on the environmental impact of nuclear energy lead to the same conclusion. : there is no scientific evidence that nuclear energy contributes more to global warming than other energies include in the taxonomy. “

Nuclear power, they said, is “our best weapon” in the fight against climate change. “It is a clean, secure, independent and competitive source of energy. It offers us Europeans the opportunity to continue to develop a high added value industry, to create thousands of qualified jobs, to strengthen our environmental ambitions and to ensure energy strategy and autonomy. Let’s not let such a crucial opportunity slip away. ”

The EC launched its action plan on financing sustainable growth in March 2018 and adopted a package of measures two months later. Then, in July 2018, a Technical Expert Group (TEG) on sustainable finance set up by the Commission began to assist it in developing a unified classification system for sustainable economic activities. TEG has published its Taxonomy technical report in June of last year. Nuclear energy has been excluded from the list of sustainable economic activities. However, in September 2020, the European Council decided to remain technologically neutral in its strategy for financing sustainable growth and the transition to a low-carbon and resource-efficient economy.

On December 16 last year, the European Union adopted a unified classification system to encourage private investment in sustainable growth and contribute to a climate neutral economy.

In March, the leaders of seven EU member states wrote to the EC on the role of nuclear energy in EU climate and energy policy. “We call on the European Commission to ensure that the EU’s energy and climate policy takes into account all paths to climate neutrality in accordance with the principle of technological neutrality,” the letter said.

The following month, the European Commission announced its decision to include nuclear energy in a delegated act complementary to the EU taxonomic regulation, which will also include natural gas.

Research and writing by World Nuclear News




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The rights of American decline https://europasite.net/the-rights-of-american-decline/ https://europasite.net/the-rights-of-american-decline/#respond Wed, 06 Oct 2021 22:50:00 +0000 https://europasite.net/the-rights-of-american-decline/ Democrats scramble to find an argument, any argument, that sells their $ 5,000 billion spending plan to a skeptical public. The latest and surprising attempt is President Biden’s claim that all of his new rights will make America greater. “To oppose these investments is to be complicit in America’s decline,” Biden said on Tuesday, adding […]]]>

Democrats scramble to find an argument, any argument, that sells their $ 5,000 billion spending plan to a skeptical public. The latest and surprising attempt is President Biden’s claim that all of his new rights will make America greater.

“To oppose these investments is to be complicit in America’s decline,” Biden said on Tuesday, adding that “other countries are accelerating and America is falling behind.” Got it, Senators Joe Manchin and Kyrsten Sinema? You are complicit in the impending failure of the country.

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You have to admire the audacity to propose higher taxes and more social welfare as the path to national renewal, especially when the global evidence is to the contrary. The result of Mr Biden’s rights expansion is likely to be reduced incentives to work and invest, slower economic growth, lower living standards, and reduced tax room for essential public goods like National Defense.

This is the lesson of European welfare states from cradle to grave, which Bernie Sanders explicitly presents as role models. Most have populations older than the United States, but that alone does not explain their lower work participation rates and much higher structural unemployment. Unemployment rates in Europe tend to be much higher than in the United States, especially for young people. In 2019, the activity rate was 62.6% in the United States against 49.7% in Italy, 55% in France, 57.7% in Spain, 59.3% in Portugal and 61.3% in Germany.

Lower participation rates in Europe contributed to the slowdown in growth. While the US economy was slow to recover from the 2008-09 recession amid Obama’s political uncertainty, US GDP growth still averaged 2.3% from 2010 to 2019, overtaking Italy (0.27%), Portugal (0.86%), Spain (1.07%). , France (1.42%) and Germany (1.97%).

Democrats say more generous family leave will encourage more women to work and increase the workforce. But Italy offers 22 weeks of maternity leave at 80% of previous earnings. France plans 16 weeks at 90% and Spain 16 weeks at 100%. Rather, higher payroll taxes to finance these generous benefits reduced the incentive to hire.

Europe’s little-discussed secret is that its cradle-to-grave welfare states are funded by the middle class through value-added taxes and wages. The combined employer-employee social security tax rate is 36% in Spain, 40% in Italy and 65% in France. Value added taxes in most European economies are around 20%. There are simply not enough rich people to fund their rights.

The Democrats in Washington know this, which is why they are using budget tricks to hide $ 5,000 billion in spending within the 10-year budget window. They plan to pay off a few years of spending with 10 years of tax hikes on businesses and high net worth individuals, but that still only earns them $ 2.1 trillion in estimated new revenue.

Europe’s vast rights also mean less money for security and the military. Only around nine European countries are meeting their NATO commitment to spend 2% or more of their GDP on defense, and only Greece spends more than 3% as the United States does. Germany spends a paltry 1.56%.

The United States succeeded in defeating the Soviet Empire in the 1980s because a booming economy generated enough revenue to rebuild the military. Mr Biden is proposing to cut defense in real terms, and his social spending wedge will rise quickly. There will be no Reagan-style military build-up with the rise of China.

***

The irony is that some European governments have tried to reform their tax and social systems to become more competitive. Germany and Sweden reformed their social and labor policies for two decades. Their participation in the labor market and GDP growth exceeded that of the rest of Europe. Labor force participation in Germany increased to 61.3% in 2019, from 58.1% in 2000.

During the 1970s and 1980s, Sweden’s tax burden reached the highest level in the world as its social protection system became much more generous. The result: Swedes’ real after-tax incomes stagnated while public debt skyrocketed. From 1976 to 1995, GDP growth in Sweden was about half the average for developed countries and a third lower than that of major European economies.

Sweden’s decline led to tax and spending reforms in the early 1990s that increased labor productivity, private employment growth and incomes. The growth rate of disposable income quadrupled from 1996 to 2011. Sweden’s average GDP growth from 2010 to 2019 (2.6%) far exceeded that of most European countries.

Other European governments are also pushing for welfare state reform. French President Emmanuel Macron adopted the pension reform and reduced the corporate tax rate to 26.5% from 33% in 2017; small businesses pay 15%. Greece is emerging from the debt trap with the tax, pension and regulatory reforms of Prime Minister Kyriakos Mitsotakis. The corporate rate is 22%, while Biden wants the combined federal and US state average to be well over 30%.

Mr Biden also argued on Tuesday that the United States needs to spend more on green energy and manufacturing to compete with China. But Beijing’s industrial policy has resulted in misallocation of capital and economic distortions, as evidenced by its current debt difficulties. Since when is China supposed to be an economic model?

America escaped the decline of the 1970s by returning to its historic model of liberation from private initiative and enterprise. Mr Biden’s plan would empower government, increase the burden on the private economy, and erode upward mobility by encouraging people not to work. This is the real recipe for decline.

Wonder Land: “We have three things to do,” says Joe Biden. “The debt ceiling, the resolution continues and the two laws. We do it, the country will be in great shape.” Images: Disney via Everett Collection / Getty Images Composite: Mark Kelly

Copyright © 2021 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8


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Spain’s energy tax threatens EU green hydrogen plans, industry warns – EURACTIV.com https://europasite.net/spains-energy-tax-threatens-eu-green-hydrogen-plans-industry-warns-euractiv-com/ https://europasite.net/spains-energy-tax-threatens-eu-green-hydrogen-plans-industry-warns-euractiv-com/#respond Wed, 06 Oct 2021 10:21:15 +0000 https://europasite.net/spains-energy-tax-threatens-eu-green-hydrogen-plans-industry-warns-euractiv-com/ As energy prices skyrocket across Europe, the chairman of electricity giant Iberdrola has warned of short-sighted measures in Spain that threaten the expansion of renewable electricity needed to the production of green hydrogen. Europe’s path to net zero emissions by 2050 will require large amounts of renewable electricity, including for the production of so-called green […]]]>

As energy prices skyrocket across Europe, the chairman of electricity giant Iberdrola has warned of short-sighted measures in Spain that threaten the expansion of renewable electricity needed to the production of green hydrogen.

Europe’s path to net zero emissions by 2050 will require large amounts of renewable electricity, including for the production of so-called green hydrogen from the electrolysis of water.

Policy makers are considering hydrogen to store energy and as a feedstock to decarbonize carbon-intensive industries like chemicals, steel and heavy transport.

But investments in green hydrogen are now on hold in Spain due to a one-off tax imposed by the government in response to rising electricity prices, said Jose Galán, chairman of Spanish electricity company Iberdrola. .

Madrid announced on September 14 its intention to recover 3 billion euros from electricity companies, accused of deriving windfall profits from soaring gas prices.

“Some countries imposing new royalties on renewable energies due to the temporary situation of gas prices seriously worry investors and endanger future investments in renewable energies,” Galán warned.

Europe is already behind on the deployment of renewables and regulatory certainty is crucial to attracting investment, Galán said at the Renewable Hydrogen Summit on September 29.

Others in the industry have accepted. Europe needs a lot more renewable electricity to develop the green hydrogen market, said Walburga Hemetsberger, CEO of SolarPower Europe, a trade association. And that requires more investment and faster approval procedures for new wind and solar projects, she added.

“Green hydrogen… will need huge volumes of green electricity,” said Sopna Sury, CEO of the hydrogen unit at RWE, the German energy company.

Spain is once again preparing to curb soaring electricity prices

Spain’s left-wing government on Tuesday (September 14th) approved a new package of measures, including tax cuts, to curb soaring household electricity bills that have hurt businesses and angered voters.

The race is on for hydrogen market leadership

The comments came after the September publication of a study describing the potential of solar energy in building a hydrogen economy. The study looked at locations around the world and singled out the southernmost Spanish city of Malaga which has the highest potential in Europe.

But these investments are now suspended in Spain due to the exceptional tax imposed on electricity companies. Iberdrola has reportedly suspended tenders for goods and services associated with the construction of renewable energy projects in Spain in order to assess their economic viability.

Due to the current energy crisis, BloombergNEF has reduced its solar PV projections for next year by 1.5 GW, according to Vesa Ahoniemi, head of strategy for the Finnish electricity company Fortum.

This despite the widespread recognition that Spain has a key role to play in the deployment of solar photovoltaic energy and green hydrogen.

“The development of renewable energies is essential for the decarbonization of Europe, and Spain is crucial as an important site for solar photovoltaic installations,” said Jan Rosenow, European director of the Regulatory Assistance Project, a think tank .

Any delay in the deployment of renewable energies will jeopardize Europe’s goal of reducing emissions and being a world leader in green hydrogen.

“We have to be quick,” warned Iberdrola’s Galán, saying the United States was aiming for very competitive hydrogen prices. $ 1 / kg by 2030.

European hydrogen has a fighting chance, he added, saying the EU has competitive advantages such as binding targets and companies willing to invest.

According to the study, renewable hydrogen could become as cheap as 0.7 € / kg ($ 0.8) if produced from photovoltaic solar panels in Malaga.

Renewable hydrogen is currently four times more expensive than hydrogen produced from fossil gas. This means that Europe’s goal of installing 40 gigawatts of electrolysers by 2030 will only be achievable if the policy framework is right, said Galán, calling for further investment and tax cuts. to promote renewable energies.

At the same time, rising gas prices mean that the cost of producing hydrogen from electrolysis is becoming relatively more competitive. “Rising gas prices have a significant impact on the cost of hydrogen made from gas,” Rosenow told EURACTIV.

[Edited by Frédéric Simon]



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How the German economy is affected by supply chain shortages https://europasite.net/how-the-german-economy-is-affected-by-supply-chain-shortages/ https://europasite.net/how-the-german-economy-is-affected-by-supply-chain-shortages/#respond Tue, 05 Oct 2021 23:12:44 +0000 https://europasite.net/how-the-german-economy-is-affected-by-supply-chain-shortages/ FRANKFURT – In Germany, where one in four jobs depends on exports, the crisis in global supply chains is weighing heavily on the economy, which is Europe’s largest and a mainstay of world trade. Recent surveys and data point to a marked slowdown in German manufacturing power, and economists have started to predict a “bottleneck […]]]>

FRANKFURT – In Germany, where one in four jobs depends on exports, the crisis in global supply chains is weighing heavily on the economy, which is Europe’s largest and a mainstay of world trade.

Recent surveys and data point to a marked slowdown in German manufacturing power, and economists have started to predict a “bottleneck recession.”

Almost everything German factories need to operate is lacking, not just computer chips, but also plywood, copper, aluminum, plastics and raw materials like cobalt, lithium, nickel and carbon. graphite, which are essential ingredients in electric car batteries.

The auto industry has been the hardest hit. Opel, a unit of Stellantis, the company that owns Jeep and Fiat, announced in September that it would close a plant in Eisenach until next year due to a semiconductor shortage. The 1,300 workers at the plant will be put on leave.

Over 40 percent of German companies said they lost sales due to supply issues in August investigation by the Association of German Chambers of Commerce and Industry. Europe-wide, exports would have increased by 7 percent in the first six months of the year without the supply bottlenecks, according to the European Central Bank.

While all the world’s economies suffer from shortages, Germany is particularly sensitive due to its dependence on industry and commerce. Almost half of Germany’s economic output depends on exports of cars, machine tools and other goods, compared to just 12% in the United States.

Because Germany is a nation of factories, “the impact is dramatic,” said Oliver Knapp, senior partner at Roland Berger, a Munich-based consulting firm.

The country is also going through a period of political uncertainty. Last month’s elections left no party with a clear majority, and there is a risk that whatever coalition government emerges will lack cohesion enough to act decisively.

The slowdown has made the German economy a test of how businesses can become less vulnerable to power shortages in China or to ships stranded in the Suez Canal.

Already many companies are increasing their inventories of parts, ordering raw materials further in advance, and finding creative – some might say desperate – ways to keep products out of the factory gates. Traton, Volkswagen’s truck unit, said last month it was cannibalizing hard-to-find truck components that had been built but not sold, and reinstalling them in trucks for which there were firm orders.

In the longer term, companies have been thinking about ways to protect their supply lines, for example by purchasing parts and raw materials closer to home rather than from contractors across the world. planet. Some political leaders have even suggested that the pandemic may have a silver lining, as it will prompt companies to bring manufacturing back to Europe and the United States, creating well-paying factory jobs.

But disentangling the networks that move products around the world isn’t that easy, and maybe not even a good idea, some economists and business leaders say.

The popular assumption that suppliers close to home are more reliable has not always been true. During the turmoil caused by the pandemic, some German companies had more difficulty obtaining supplies in France or Italy, due to strict confinements, than in Asia.

“It’s not true that if we weren’t dependent on China we would have gotten through the crisis without any problems,” said Alexander Sandkamp, ​​an economist who studies supply chains at the Kiel Institute. for the global economy in Kiel, Germany.

There is mounting evidence that shortages are depressing German growth. The most recent from the Ifo Institute survey of German business leaders, considered a reliable indicator of the direction of the economy, indicated a marked slowdown. More than three-quarters of German companies told the Munich institute that they had difficulty obtaining raw materials and spare parts.

Obeying the law of supply and demand, prices go up. The annual inflation rate in Germany was 4.1% in August, the highest in almost three decades. While most economists believe the spike is temporary, inflation is still a hot topic in Germany, reminiscent of hyperinflation and poverty in the aftermath of WWI.

Businesses are caught in a vicious cycle. Robert Ohmayer, global purchasing manager at Voith, a Heidenheim-based company that builds and equips paper mills and hydropower plants, calls it the toilet paper effect.

Just as panicked consumers hoarded toilet paper at the start of the pandemic, businesses worried about running out of key materials order more than they need and put them in warehouses. This created even more shortages.

Businesses had little choice. “We are ordering more to protect our business,” Mr. Ohmayer said.

Supply issues are doubly frustrating for businesses because many of them have large order books that they cannot fill.

Take the bicycle shops. Malaysian factories that make gears, shock absorbers and other parts for bicycles have been locked down due to the pandemic. In addition, sea containers have been scarce and the movement of cargo ships has been disrupted by events such as the closure of Chinese ports as dockworkers have tested positive for the virus.

Problems have stifled the supply of things like brake pads that bike shops need for repairs. Still, demand is booming, in part because many Germans have turned to cycling as an alternative to public transport during the pandemic, or have decided to take a cycling vacation near their homes rather than taking the road. plane to a beach in Spain.

“All things in the global market hit us at the same time,” said Tobias Hempelmann, owner of a bicycle dealership in Lage. “High demand, no containers and people want to cycle. “

One of his employees is just picking up components, searching for rare items on eBay or Amazon, or bartering with other resellers, Hempelmann said.

The tensions in the system were evident even before the pandemic. Tensions between China and the United States, along with rising protectionism, had already prompted many companies to reconsider their reliance on distant suppliers.

An additional complication for German businesses is a new law, due to come into effect in 2023, which requires them to ensure that they do not buy from suppliers who use child labor or slave labor.

“We knew global supply chains were risky before we had Covid,” said Mr. Ohmayer, Voith’s chief purchasing officer. “The Covid crisis is an accelerator, but it is not a new trend. “

Companies are now trying to figure out what lessons to learn and how to reorganize their supply networks so that they are less susceptible to crises.

As political leaders had hoped, Voith is buying from suppliers closer to its factories in Germany and the United States. China’s cost advantage has eroded because wages have gone up, and sometimes a small machine shop in Wisconsin is more profitable, Mr. Ohmayer said.

But what may work for Voith, which buys a small number of specialized components, may not work for an automaker who buys millions of the same part. There is always a strong incentive to buy from suppliers who can mass produce a decent quality component at the lowest price. Among German companies surveyed in August by the Association of German Chambers of Commerce and Industry, only 8% said they plan to move production.

“You can try to bring production back, but you have to expect that these products can only be produced at higher prices,” said Mr Sandkamp of the Kiel Institute. “We will lose in competitiveness.

Supply shortages are expected to ease as suppliers expand their factories to catch up with demand. German chipmaker Infineon, which specializes in the automotive industry, last month opened a factory that had been planned before the pandemic. The plant, in Villach, Austria, can produce enough chips to power 20 million electric vehicles, said Peter Schiefer, president of Infineon’s automotive division.

Many other chipmakers have announced plans to expand production. But, noting that it takes just a year and a half to acquire the necessary machinery, Mr Schiefer said: “It won’t happen right away.


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Analysis: Cold Brexit turkey: UK has been trying to shed imported work habit for 25 years https://europasite.net/analysis-cold-brexit-turkey-uk-has-been-trying-to-shed-imported-work-habit-for-25-years/ https://europasite.net/analysis-cold-brexit-turkey-uk-has-been-trying-to-shed-imported-work-habit-for-25-years/#respond Tue, 05 Oct 2021 06:03:00 +0000 https://europasite.net/analysis-cold-brexit-turkey-uk-has-been-trying-to-shed-imported-work-habit-for-25-years/ LONDON, October 5 (Reuters) – Britain’s 25-year-old model of importing cheap labor has been shaken up by Brexit and COVID-19, sowing the seeds of a winter of discontent in the way the 1970s did, with labor shortages, spiraling wage demands and price hikes. The exit from the European Union, followed by the chaos of the […]]]>

LONDON, October 5 (Reuters) – Britain’s 25-year-old model of importing cheap labor has been shaken up by Brexit and COVID-19, sowing the seeds of a winter of discontent in the way the 1970s did, with labor shortages, spiraling wage demands and price hikes.

The exit from the European Union, followed by the chaos of the biggest public health crisis in a century, plunged the world’s fifth-largest economy into a sudden attempt to shake off its dependence on cheap imported labor.

Prime Minister Boris Johnson’s Brexit experience – unique among major economies – has further strained already crumbling supply chains globally for everything from pork and poultry to medicines and milk.

Wages, and therefore prices, will have to increase. Read more

The long-term impact on growth, Johnson’s political fortunes and the UK’s intermittent relationship with the European Union are unclear.

“What I won’t do is go back to the failed old model of low wages, low skills, supported by unchecked immigration,” said Johnson, 57, when asked about the shortages.

He said the British voted for change in the 2016 Brexit referendum and again in 2019, when a landslide election victory made Johnson the most powerful Conservative prime minister since Margaret Thatcher.

Stagnant wages, he said, are set to rise – for some, the economic logic behind the Brexit vote. Johnson bluntly told business leaders in closed meetings to pay workers more.

‘Taking back control’ of immigration was a key message from the Brexit campaign, which the Johnson-led ‘Leave’ campaign narrowly won. He later promised to protect the country from the European Union’s “job-killing machine”.

BREXIT “ADJUSTMENT”

Johnson presents his Brexit bet as an “adjustment”, although opponents say he disguises a labor shortage as a golden opportunity for workers to raise their wages.

But restricting immigration amounts to a generational shift in UK economic policy, just after the pandemic triggered a 10% contraction in 2020, the worst in over 300 years.

As the EU expanded eastward after the fall of the Berlin Wall in 1989, Britain and other major European economies welcomed millions of migrants from countries like Poland, which joined the block in 2004.

No one really knows how many came: in mid-2021, the UK government said it had received more than 6 million settlement applications from EU nationals, more than double the number it thought to be in the country in 2016.

After Brexit, the government stopped prioritizing EU citizens over people from elsewhere.

Brexit has prompted many workers in Eastern Europe – including around 25,000 truck drivers – to leave the country just as around 40,000 truck license tests have been halted due to the pandemic.

Britain is now short of around 100,000 truckers, leading to queues at gas stations and concerns about food being brought into supermarkets, a shortage of butchers and staff to warehouse is also of concern.

“Wages will have to go up, so the prices of everything we deliver, everything you buy off the shelves, will also have to go up,” said Craig Holness, a British truck driver with 27 years of experience.

Salaries have already skyrocketed: A Class 1 Heavy Truck Driver (PL) position was advertised for 75,000 pounds ($ 102,500) a year, the highest the recruiter had ever heard of.

WINTER IN THE MONTENT?

The Bank of England said last month that CPI inflation is expected to reach 4% by the end of the year, “largely due to the development of energy and goods prices” , and that the case for raising interest rates from historic lows appears to have strengthened.

He cited evidence that “recruitment difficulties had become more widespread and more acute,” which Bank officials attributed “to a combination of factors, including a faster-than-expected recovery in demand and a reduction in demand. availability of European workers “.

Johnson’s ministers have repeatedly rejected the idea that Britain is heading for a “winter of discontent” like the one that helped Thatcher come to power in 1979, with wage demands spiraling, inflation and electricity shortages – or even that Brexit is a factor.

“Our country has a long history of relatively low wage growth – mostly stagnant wages and totally stagnant productivity – and that’s because, chronically, we haven’t invested in people, we haven’t. not invested in equipment and you saw wages stagnate, ”Johnson said on Sunday.

But he did not explain how wage stagnation and low productivity would be solved by a mixture of lower immigration and higher wages fueling inflation that eats away at real wages.

It was also unclear how higher prices would affect a consumer-driven economy increasingly dependent on supply chains whose tentacles stretch across Europe and beyond.

For some observers, the UK has come full circle: he joined the European club in the 1970s as a sick man from Europe and his exit, many European politicians clearly hope, will bring him back to a cautious dead end. .

Johnson’s legacy will depend on proving them wrong.

Reporting by Guy Faulconbridge; Editing by Catherine Evans

Our standards: Thomson Reuters Trust Principles.


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