Europe's industrial nightmares are coming true

The scale of the problems facing Europe, though, with Germany giving up hope of achieving any growth this year, mean a lot has to go right. If energy costs are a competitive disadvantage for industry, that’s a separate challenge to needing more R&D spending. Trade policy will also have to play a part in leveling the playing field for domestic industries, with an imminent decision due on China EV tariffs. All these will have to work alongside foreign policy in the race to secure raw materials, as the Centre for European Reform notes.