Europe should not copy Bidenomics

It is notIMFEU 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 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 said the euro-zone economy would grow by only 0.7% in 2023. It expects America to grow three times as fast.Europeans increasingly see Biden-style industrial policy as the answer. The has loosened state-aid rules that restrict subsidised investment, and aims to set targets for the bloc’s production of green goods. France and Germany are at loggerheads over how (not whether) to subsidise electricity for industrial users. , which will probably form its next government in 2024, also aims to spend lavishly on industry.