The famous American economic newspaper reported on an interesting sanction development According to them, the damage to Europe will last forever.
The Wall Street Journal published a long analytical article about the sanctions related to the war in Ukraine and the resulting energy crisis. It was already stated in the first sentence of the article that
one of the big winners of the European energy crisis: the American economy.”
The newspaper explained that European companies that produce steel, fertilizer and other raw materials, hit by skyrocketing gas prices, are moving their operations to the United States because of more predictable energy prices and massive government subsidies.
They added that while wild swings in energy prices and persistent problems with supply chains threaten to erode industrial production in Europe, Washington has created a number of incentives to support manufacturing and green energy. According to the article, economic trends are increasingly playing into the hands of the United States, especially for companies that make chemicals, batteries and other energy-intensive products.
The paper explained that although the American economy is facing record inflation, it has come out of the coronavirus crisis well and has good prospects,
because Europe was destabilized by the war.
They explained that the Danish jewelry manufacturing company Pandora and Volkswagen announced American expansion at the beginning of the year, and Tesla is pausing the implementation of the battery factory in Germany.
We will suffer the effects of the sanctions for years
Economists cited by the Wall Street Journal have warned that natural gas producers ranging from Canada to the United States to Qatar will find it difficult to fully replace Russia in supplying Europe in the medium term. If this happens, the continent will have to face high prices, at least for gas, even in 2024.
which threatens to make the damage to the European manufacturing industry permanent.
Featured image: MTI/EPA/Sipa USA pool/Oliver Contreras
