European support for Ukraine in the war against Russia can be “sustained for a long time”. This is what VVD MEP Bart Groothuis says in the BNR De Wereld programme. “As long as the state intervenes, it can be sustained for a long time.”
With the help of the state, Groothuis focuses his words on high inflation. «Our resistance to this (the war in Russia, ed.) can be managed well if the state also intervenes. Because we see energy prices rising, competitiveness deteriorating significantly and we have to do something about it, because that doesn’t happen by chance,’ says Groothuis.
However, the Netherlands and other northern European countries are in a luxury position, because the debt mountain is relatively lower here. Groothuis also notes that countries that are not in such a luxurious position face problems because they cannot support their industry with fiscal measures. ‘We have to solve that problem, we can, but not with the resources the Greeks and the Belgians want. We have to let the market do its job properly.’
American protectionism
Groothuis is therefore concerned about American practices, where subsidy schemes ensure that inflation in that country must be suppressed. Partly because of the subsidy, European producers could move their production to the US, that’s the fear in Europe. ‘A lot of companies think, hey, that’s cool. We must be able to give a similar perspective in Europe, without overreacting, but with caution.’
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According to Groothuis, American protectionism also violates the rules of the World Trade Organization (WTO). Groothuis is not afraid that the EU might also violate these rules. ‘Brussels tends to think of everything very well conceptually, to have a good story and to complete it. But then we waste a lot of time and it doesn’t add up in terms of effect. In the meantime, the Americans will invent something new and we will keep up with the times».
Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
