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How does the EU deal with uncompetitive industry in accesion countries?

Cutting costs? Investing in capital improvement? Or dismantling it?

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Wed Dec 14th, 2011 at 08:43:26 AM EST
[ Parent ]
Having the EU decide such issues through diktat would hardly be in accordance with the principle of subsidiarity. That is, thankfully, still an issue for national governments.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Wed Dec 14th, 2011 at 08:59:09 AM EST
[ Parent ]
What? You're telling me the EU Commission doesn't deal with accession countries by diktat?

Accession countries don't have the luxury of subsidiarity. That's a privilege they earn upon accession.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Wed Dec 14th, 2011 at 09:00:45 AM EST
[ Parent ]
Then maybe accession countries should wait with seeking membership until uncompetitive industries they want to keep, have been made competitive. Off course, not all countries should do everything at all times. Sweden once was one of the leading builders of tanker ships. Not anymore. The Koreans and Japanese could build cheaper than we could, so we closed down our shipyards and freed up labour and capital which could then be used in more value-creating ways. But who cares, really? We do other things nowadays. Even earlier, we had a great textile industry. All gone. Missed by none.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Wed Dec 14th, 2011 at 09:15:27 AM EST
[ Parent ]
Did the shipyard labour Sweden freed really get redirected to other uses, or did they join the ranks of the early retired and the long-term unemployed?

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Wed Dec 14th, 2011 at 09:23:11 AM EST
[ Parent ]
They went into the auto industry, which like the shipyards were located in the area around Gothenburg. Swedish business and (private sector) labour unions alike believe in creative destruction and dynamism. Instead of focusing on protectionism they are confident that lost jobs in old industries will swiflty be replaced by better paying-jobs in new industries, as this has been the historical pattern. This stoicism is further supported by the workers knowledge that there's a generous welfare safety net which I'll help them out while they wait for those new better jobs.

Which is why these news were so astounding.

   

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Wed Dec 14th, 2011 at 09:31:14 AM EST
[ Parent ]
This stoicism is further supported by the workers knowledge that there's a generous welfare safety net which I'll help them out while they wait for those new better jobs.

Right, which is why dismantling the comparatively less generous welfare states in peripheral Europe is part of the medicine the doctor prescribed (after a frontal assault on the welfare states in core Europe, of course).

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Wed Dec 14th, 2011 at 09:34:27 AM EST
[ Parent ]
You won't find me saying isolated austerity makes any kind of sense whatsoever. :)

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Wed Dec 14th, 2011 at 09:41:21 AM EST
[ Parent ]
You're providing me with a great opportunity for Socratic debunking of the Eurozone's architecture.

It looks almost scripted :P

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Wed Dec 14th, 2011 at 09:42:30 AM EST
[ Parent ]
The pleasure is all mine. ;p

Jokes aside, these are the best kinds of threads at the ET. A lot like a debate in the seminar room, except they leave room for less rhetoric and require more clarity as everything is written down.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Wed Dec 14th, 2011 at 09:44:55 AM EST
[ Parent ]

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