This is what happens when youre the EU! Brussels shamed as eurozone lags behind UK

EU at ‘crunch point’ over future of the Eurozone says expert

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The eurozone is struggling to keep its economic head above water as private companies increasingly move to invest in the UK, the US and Japan.

According to Eurointelligence director Wolfgang Munchau, bloc’s economic area is getting “weaker” at each crisis it faces, failing to ever recover in time for the next one.

“This is what happens when you leave innovation to others,” he said.

As private companies seek to move their business outside of the EU, he warned: “Euro area consumption has recovered well, in line with other G10 countries. But investment is lagging behind the UK, Japan and the US.

“Since today’s investment is tomorrow’s growth, this is bad news.

“It is possible that the recovery fund will make a dent.

“The data do not yet reflect its full impact.

“But we think you will need a microscope to see its effect. Given its small size, we doubt you will see its effect in the data.”

He continued: “There has been no austerity during this crisis. Those poor numbers reflect mostly what has been happening in the private sector.

“These data also confirm something we have observing: that with each crisis the euro area economy weakens. It displays what economists call hysteresis effects, on a macro level.

“In the past, such effects were often observed in relation to long-term unemployment. In each recession, people lost jobs, but not all regained work when the recession ended.

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“What seems to happen here is that each crisis leaves the euro area structurally weaker.

“We have been arguing that this is not primarily the result of macroeconomic policies, although the austerity years did large and persistent damage.

“The main reason for what we are seeing right now is Europe’s lack of innovation. All the action on artificial intelligence is the US and China, and to some extent the UK.

“The Europeans are doing better in robotics, but the Japanese are the world leaders in this area. And the car industry, one of the main sources of private-sector investment in Europe, has failed to take a lead in hybrids and electric cars.”

The warning comes as the UK secured another stunning win after Brexit as Bentley will invest £2.5billion to build its new electric vehicle fleet in the UK.

The company committed to investing £2.5billion in sustainability over the next 10 years.

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The announcement is a major boost for the UK’s post-Brexit economy and also helps secure Bentley’s first step into electrification at the production plant.

Bentley plans for the BEV to roll off the production line in 2025 and will mark a significant moment in the British company’s history.

It is also a critical step in the company’s Beyond100 strategy – a plan launched in 2020 that will ensure Bentley is exclusively electric and end-to-end carbon neutral by 2030.

Adrian Hallmark, Chairman and CEO of Bentley Motors, said: “Beyond100 is the boldest plan in Bentley’s illustrious history and in the luxury segment.

“It’s an ambitious and credible roadmap to carbon neutrality of our total business system, including the shift to 100 per cent BEV in just eight years.

“Our aim is to become the benchmark not just for luxury cars or sustainable credentials but the entire scope of our operations.

“Securing production of our first BEV in Crewe is a milestone moment for Bentley, and the UK, as we plan for a long-term sustainable future in Crewe.”

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