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Germany Teetering On Recession
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I have had the feeling that the EU will disappear slowly and it won't be Brexit that caused it. The Eurozone is in trouble.
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"I have had the feeling that the EU will disappear slowly..." One can but hope, Linda, one can but hope.
21:04 Fri 11th Jan 2019
An interesting passage from the Brexit report by the SMMT:
"We need to ensure we can still employ people from the EU to meet our urgent skills needs we cannot fill locally. UK automotive currently has over 5,000 vacancies in the sector and these positions need to be filled if growth is to continue."
Not any more they don't. There are some 5,000 people who will shortly be looking for jobs in that industry from Solihull and South Wales. More than that, the vast majority of jobs in the motor industry are not"skilled". They are jobs which anybody with a few hours training could do.
"We need to ensure we can still employ people from the EU to meet our urgent skills needs we cannot fill locally. UK automotive currently has over 5,000 vacancies in the sector and these positions need to be filled if growth is to continue."
Not any more they don't. There are some 5,000 people who will shortly be looking for jobs in that industry from Solihull and South Wales. More than that, the vast majority of jobs in the motor industry are not"skilled". They are jobs which anybody with a few hours training could do.
"Jaguar Land Rover are also in deep trouble,.."
JLR are not in "deep trouble". Their sales (along with most other volume car manufacturers) have declined globally because, at last, people are buying fewer cars. However, they have just opened a new plant in Slovakia which is the reason why jobs have been lost in Solihull. This decision was taken in 2015 and has nothing to do with China, diesel emissions or Brexit. It may, however, have something to do with the fact the Slovakia was permitted to lavish £120m on JLR to lure them there. Slovakia is a net recipient of EU dosh and the EU sanctioned the State support (which it would not have done if the UK had wanted to spend the equivalent sum supporting the same business). It did so because under the EU's wealth distribution scheme Slovakia is a "needy" area and Solihull is stinking rich. The EU therefore saw it perfectly acceptable to transfer the jobs to Slovakia. That's why the jobs will be lost in the MIdlands.
JLR are not in "deep trouble". Their sales (along with most other volume car manufacturers) have declined globally because, at last, people are buying fewer cars. However, they have just opened a new plant in Slovakia which is the reason why jobs have been lost in Solihull. This decision was taken in 2015 and has nothing to do with China, diesel emissions or Brexit. It may, however, have something to do with the fact the Slovakia was permitted to lavish £120m on JLR to lure them there. Slovakia is a net recipient of EU dosh and the EU sanctioned the State support (which it would not have done if the UK had wanted to spend the equivalent sum supporting the same business). It did so because under the EU's wealth distribution scheme Slovakia is a "needy" area and Solihull is stinking rich. The EU therefore saw it perfectly acceptable to transfer the jobs to Slovakia. That's why the jobs will be lost in the MIdlands.
Indeed, NJ and.....
‘Jaguar Land Rover refused to offer British workers jobs at its new plant in Slovakia on Friday, as it emerged that Theresa May’s Brexit deal would leave Britain powerless to prevent EU countries offering cash sweeteners to companies to move production out of the UK.’
From the Telegraph.
Not a good indicator for industry generally, is it?
‘Jaguar Land Rover refused to offer British workers jobs at its new plant in Slovakia on Friday, as it emerged that Theresa May’s Brexit deal would leave Britain powerless to prevent EU countries offering cash sweeteners to companies to move production out of the UK.’
From the Telegraph.
Not a good indicator for industry generally, is it?
"Jaguar Land Rover refused to offer British workers jobs at its new plant in Slovakia on Friday, as it emerged that Theresa May’s Brexit deal would leave Britain powerless to prevent EU countries offering cash sweeteners to companies to move production out of the UK.’ "
Quite, Zacs. But manufacturing jobs of all descriptions have been steadily lost from the UK for decades. I'm simply surprised that JLR has taken so long to move out. Not only does Mrs May's deal leave the UK powerless to prevent EU cash sweeteners but so would continued membership. The only way for the UK government to provide cash help to large businesses to remain in the UK (if they should be profligate enough to do so) is for the UK to leave with No Deal. That way the UK government, not the EU, decides which businesses it will offer support to.
It seems very odd that no mention has been made of the fact that EU funds (much of which comes from UK taxpayers) have been used to effectively transfer JLR production to Eastern Europe when the UK would be prevented by EU rules from providing support to encourage JLR to remain here. It's no wonder at all that they have chosen to leave when they can received cash support to do so but no support if they remain in the UK. If I were a JLR shareholder I'd be furious if they did anything else. And I will reiterate, this decision has nothing to do with diesel, falling sales in China or Brexit as it was taken more than three years ago.
Quite, Zacs. But manufacturing jobs of all descriptions have been steadily lost from the UK for decades. I'm simply surprised that JLR has taken so long to move out. Not only does Mrs May's deal leave the UK powerless to prevent EU cash sweeteners but so would continued membership. The only way for the UK government to provide cash help to large businesses to remain in the UK (if they should be profligate enough to do so) is for the UK to leave with No Deal. That way the UK government, not the EU, decides which businesses it will offer support to.
It seems very odd that no mention has been made of the fact that EU funds (much of which comes from UK taxpayers) have been used to effectively transfer JLR production to Eastern Europe when the UK would be prevented by EU rules from providing support to encourage JLR to remain here. It's no wonder at all that they have chosen to leave when they can received cash support to do so but no support if they remain in the UK. If I were a JLR shareholder I'd be furious if they did anything else. And I will reiterate, this decision has nothing to do with diesel, falling sales in China or Brexit as it was taken more than three years ago.
I can understand why some people want the UK to leave the EU, but the gloating over the economic ills - such as they are - of our friends in Europe is baffling to me. And rather pathetic. And I suspect doomed to end in disappointment. The end has been predicted for the euro for example for years. It isn’t going to happen
//Of course their loss, reducing or removing their presence in our economy and possibly becoming subject to future tariffs as a result of their shortsightedness. Meanwhile in a dynamic economy jobs do come and go. More enterprising companies will take up the now available workforce. As it ever was.//
I’ll tell my nephew that, he’s losing his job at Michelin in Dundee, I’m sure it will make him happier, he was thinking it was his loss
I’ll tell my nephew that, he’s losing his job at Michelin in Dundee, I’m sure it will make him happier, he was thinking it was his loss
'The EU’s problems have not gone away
BREXIT is so dominating the news that we can miss what is actually happening in Europe.So, let’s consider the events of the past week. The governing parties in Italy have sent messages of solidarity to the Yellow Vests in France, a group who want to remove the French President from office.Italy itself may well already be in recession and with industrial output falling sharply in Germany, even the powerhouse of the eurozone might be going that way.This is a reminder that it would be deeply ignorant to blame every bit of bad economic news on Brexit and that the EU’s problems have not gone away.'
BREXIT is so dominating the news that we can miss what is actually happening in Europe.So, let’s consider the events of the past week. The governing parties in Italy have sent messages of solidarity to the Yellow Vests in France, a group who want to remove the French President from office.Italy itself may well already be in recession and with industrial output falling sharply in Germany, even the powerhouse of the eurozone might be going that way.This is a reminder that it would be deeply ignorant to blame every bit of bad economic news on Brexit and that the EU’s problems have not gone away.'
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