Europe: Rescue against US-led de-industrialization

Abstract

Since the turn of the millennium, a new practice has emerged: the new, deregulated US capital players, which are still officially considered "shadow banks", are buying existing companies in Europe. Private equity investors such as Blackstone and Katch Investment Group (KKR) specialize in medium-sized, unlisted companies. BlackRock, Vanguard, State Street, Capital Group, Fidelity & Co. are now the leading owners of the most important companies and banks in Germany, France, Belgium, Luxembourg, the UK, the Netherlands and, incidentally, Switzerland. The strategic decisions - restructuring, sale of parts of the company, job cuts, relocations abroad - are mainly made in the USA, in consultation with the European Commission. Most of the profits go to the USA, while the Americanization of working conditions (job patterns, gig working, working poor) is causing real wages to fall throughout the EU. As a result, the EU's share of global GDP has fallen from its former peak of around 25% to 15%, while the USA's share has since risen back to its former level of 25%. The reindustrialization of Germany is also under US control.