Bruegel 80d ago

🔴 "I think it's also quite important to have a conversation who pays for the industry protection? Maybe in general, because those costs exist regardless how they are framed, and they have to be paid by someone. So if we raise tariffs on cheap Chinese electric vehicles, consumers have to pay more for a car. If we introduce local content requirements that perhaps push up production costs, taxpayers fund the difference through subsidy schemes. 🟠 And if we shield European manufacturers from competition too much, we reduce the pressure to cut costs and innovate. And consumers pay that price, too, just in the long run. And there might be arguments for that redistribution, so protecting strategic industries, reducing dependence on China, or keeping jobs in Europe and these are all legitimate goals. But I think we need to be explicit about the price tag. It's important not to treat this industrial protection as if it's free, because it's actually not". 🗣️ Ugne Keliauskaite in conversation with host Rebecca Christie, Antoine Mathieu Collin and Ben McWilliams. 👂 Listen to the podcast now!