Europe should not copy Bidenomics
It needs a deeper, greener single market—not more state handouts
It is not hard to see why Europe feels the urge to copy President Joe Biden’s economic policies. The loss of cheap Russian fossil fuels has made the clean-energy transition feel like a matter of national security. Germany, Europe’s biggest economy, fears its automotive industry will lose market share to state-subsidised electric carmakers in China and America. And the euro zone’s economy is increasingly falling behind America’s. As we report, the worst-suffering European economies are grappling with inflation of over 10%, rapid ageing, high public and private debts and exposure to autocracies. This week the IMF said the euro-zone economy would grow by only 0.7% in 2023. It expects America to grow three times as fast.
This article appeared in the Leaders section of the print edition under the headline “Don’t copy Bidenomics”
From the October 14th 2023 edition
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