The De-Industrialization Of Europe Is Accelerating

The BASF factory in Ludwigshafen Foto: Xaver Lockau / BASF SE  

OilPrice.com: Europe May See Forced De-Industrialization As Result Of Energy Crisis 

European industries including ferroalloys, fertilizer plants and specialty chemicals are shutting down as a result of the ongoing energy crisis. 

Certain industries may not come back, even if the energy crisis eases. An increasingly tight regulatory environment is another reason for de-industrialization in Europe. 

The European Union has been quietly celebrating a consistent decline in gas and electricity consumption this year amid record-breaking prices, a cutoff of much of the Russian gas supply, and a liquidity crisis in the energy market. 

Yet the cause for celebration is dubious: businesses are not just curbing their energy use and continuing on a business-as-usual basis. They are shutting down factories, downsizing, or relocating. Europe may well be on the way to deindustrialization.  

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Update: Energy crisis chips away at Europe's industrial might (Reuters)  

WNU Editor: The next three years are projected to be very grim .... Europe facing gas insecurity, 'uncontrolled deindustrialization' through 2025 (SPGlobal).

Inflation In Europe Reaches A Record 10.7%. Economic Growth Slows Sharply

 

CNBC: Euro zone inflation hits record high of 10.7% as growth slows sharply 

* Preliminary data on Monday from Europe’s statistics office showed headline inflation came in at an annual 10.7% this month. 

* This represents the highest ever monthly reading since the euro zone’s formation. The 19-member bloc has faced higher prices, particularly on energy and food, for the past 12 months.

* But the increases have been accentuated by Russia’s invasion of Ukraine in late February. 

Euro zone inflation rose above the 10% level in the month of October, highlighting the severity of the cost-of-living crisis in the region and adding more pressure on the European Central Bank. 

Preliminary data on Monday from Europe’s statistics office showed headline inflation came in at an annual 10.7% this month. This represents the highest ever monthly reading since the euro zone’s formation. The 19-member bloc has faced higher prices, particularly on energy and food, for the past 12 months. But the increases have been accentuated by Russia’s invasion of Ukraine in late February.  

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WNU Editor: If interest rates are not increased significantly, and soon, inflation in Europe is only going to get worse. And when you factor in inflation, economic growth is actually in the negative. 

This is what you see in an undeveloped country. 

And it is going to get worse. 

On December 5 the EU's embargo on Russian oil comes into effect. The disruption in oil markets and supply chains from this one act alone will result in even higher prices for oil and other energy supplies. 

If you want to industrialize the EU and put the economy into a depression, this is the way to do it. 

Inflation In Europe Reaches A Record 10.7%. Economic Growth Slows Sharply  

Inflation hits new record in Europe, slowing economy -- AP  

Euro-Zone Inflation Soars to New Record as Economy Fades -- Bloomberg  

Euro zone inflation soars past forecasts to new record high -- Eurozone/Reuters  

Inflation in Europe Reaches a Record 10.7% as Officials Face Hard Options -- NYTimes  

Eurozone inflation jumps to record-high 10.7% -- DW  

Cost of living: Eurozone inflation rises far more than expected to hit record 10.7% -- SKY News