Russia’s Economic War Hits Europe’s Factories

October 14, 2022/in /by Rudolf Huber

Europe has grown addicted to stuff that was developed under the Soviet Union. Its disappearance has also made the development cost of those projects disappear and now they operated at very low book value. It was clear that this would not last forever. One day, Russia would have to replace its legacy systems and then they would not be artificially cheap anymore. Europe has allowed itself to be complacent as it assumed that the Russian bane would last forever. Europe is an administrative monster that kills any real innovation with a thick layer of rules and regulations. Cheap commodities are nice, but entrepreneurial people are more important. If Europe does not get this, it’s doomed.

Factory production in Europe is faltering as the economic war between Russia and the West begins to chip away at the continent’s economic foundations.

WSJ

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