EU Comp and Cplan--SN 8.doc

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    European Competitiveness Disad & Voluntary Counterplan (1/2)

    European Competitiveness Disad & Voluntary Counterplan (1/2).................................................1______..............................................................................................................................................4**1NC..............................................................................................................................................4European Competitiveness 1NC!"ort .......................................................................................#

    European Competitiveness 1NC$on% .........................................................................................___________....................................................................................................................................'**niueness ..................................................................................................................................'niuenessEurope Eonomy.......................................................................................................+niuenessEurope Eonomy.......................................................................................................,niuenessEurope Competitiveness .........................................................................................1-niuenessEurope Competitiveness .........................................................................................11niueness! Eonomy...........................................................................................................12niueness! Competitiveness ...............................................................................................1niuenesslo0al Eonomy......................................................................................................14______............................................................................................................................................1#

    **$ins..........................................................................................................................................1#$inind Competitiveness ......................................................................................................1$inEner%y Competitiveness ....................................................................................................1'$inEner%y Competitiveness ....................................................................................................1+$inEner%y Competitiveness ....................................................................................................1,$in3esear" and Development ...............................................................................................2-$inuto 5ndustry .....................................................................................................................21$in2NC uto 5ndustry ............................................................................................................22$in2NC uto 5ndustry ............................................................................................................2_____________..............................................................................................................................24**5nternal $ins.............................................................................................................................24

    5$6ero7!um3ene8a0les .......................................................................................................2#5$6ero7!um9anu:aturin% ...................................................................................................25$6ero7!umEurope/!/;apan................................................................................................2'5$6ero !um3ene8a0les ........................................................................................................2+5$6ero !umEletri tilities/Ener%y ....................................................................................2,5$Ener%y Competitiveness port 9arets............................................................................................'lo0al Eonomy 5$Europe

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    2NC Disad !olves Case.................................................................................................................4_______..........................................................................................................................................44**=los........................................................................................................................................44? ! "ead in lt Ener%y No8 ................................................................................................4#? !iene and En%ineerin%

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    ?B Aerm 5ndependent tion

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    **1NC

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    European Competitiveness 1NCSort

    TurnEuropen !o"pe#$#$%ene&&

    A' !o"pe#$#$%ene&& (ero &u" ) US $n*re&e& $n *o"pe#$#$%ene&& +e*re&e #,e EU&

    ;o"an Le"./eF Visitin% !"olarF ?"e 5nstitute :or EuropeanF 3ussian and Eurasian !tudies (5E3E!)F F 2-03

    ("ttpB//"ome.%8u.edu/Glem0e/?"eH2-EuroFH2-EuropeH2-andH2-?ransatlantiH2-3elationsH2-7H2-!"ortH2-version.ppt) more po8er:ul Euro76one ould "allen%e merias eonomi po8erF :inanial in:luene and industrialpreeminene t"at "ave 0een supported 0y virtue o: "avin% t"e 8orlds dominant urrenyaullist Europe sees t"e Euro as a means to reover in:luene and pus" :or an independent :orei%nF seurity andde:ense poliy t"at ould inrease osts :or merias diplomayit" a stron%er Euro & Euro76one in t"e international monetary and :inanial systemF t"e .!. and t"e E 8ill0eome $n*re&$n en#ne+ $n (ero-&u"5 *o"pe#$#$on t"at ould redue Europes interest in t"e promotion o:ommon strate%ies 0eyond Europe

    B' Turn& #,e !&eEU *o"pe#$#$%ene&& /e #o #,e e*ono"'

    ?ais 6o#opouo&F !enior $eturer in Eonomis at t"e niversity o: Nort" $ondonF 1,7F"ttpB//888.demoraynature.or%/dn/vol2/:otopoulos_end."tm

    ?"ere:oreF t"e institutional :rame8or t"at is 0ein% esta0lis"ed today in Europe onsists o: a model in 8"i" t"eontinuation o: %ro8t" depends on a proess o: :urt"er internationaliIin% its eonomyF t"rou%" t"e destrution o:loal eonomi sel:7reliane and t"e ontinual e>pansion o: e>ports to ope 8it" a %ro8in% volume o: imports. 5nt"is proessF 8"i" taes plae 0ot" 0et8een 0los (EE a%ainst t"e ;apanese and merian 0los) and inside ea"0loF t"e vitors 8ill 0e t"ose 8"o possess t"e prodution and te"nolo%ial 0asis t"at allo8s :or t"e ontinualinrease in produtivity reuired 0y t"e tou%" international ompetition. ConseuentlyF t"e more suess:ul aountry is in raisin% its produtivity and ompetitivenessF t"e %reater its eonomi prosperity.

    RAIDERRETALIATION - 9 -

    http://home.gwu.edu/~lembke/The%20Euro,%20Europe%20and%20Transatlantic%20Relations%20-%20Short%20version.ppthttp://home.gwu.edu/~lembke/The%20Euro,%20Europe%20and%20Transatlantic%20Relations%20-%20Short%20version.ppthttp://home.gwu.edu/~lembke/The%20Euro,%20Europe%20and%20Transatlantic%20Relations%20-%20Short%20version.ppthttp://home.gwu.edu/~lembke/The%20Euro,%20Europe%20and%20Transatlantic%20Relations%20-%20Short%20version.ppt
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    European Competitiveness 1NC!on"

    A' Un$:uene&&

    Europen e*ono" #,r$%$n po *r$&$&

    Ne;&;ee/< 11=10=08:ter 8ees o: :iddlin% 8"ile t"e %lo0al :inanial system 0urned F t"e Europeans :inally %ot to%et"er in mid7to0erto support t"eir 0anin% systems 8it" a oordinated J1.# trillion0ailout F in a move t"at may "ave "r/e+ #,e#urnroun+ $n #,e *r$&$&. ?"e various national paa%es o: %uarantees and 0an reapitaliIation 8ere sensi0le andseem to 0e iin% in . 9oney marets "ave 0e%un to un:reeIe . $ast 8ee0uyers seem ed :inally to 0e returnin% toEuropeKs 0attered sto marets F 8it" t"e Do8 ;ones Euro !to>> inde> lim0in% 12 perent :or t"e 8ee. "et"ert"is is t"e start o: a reovery or Lust t"e se%ue into a ne>t p"ase o: t"e risis isF o: ourseF unlear. =ut it "as e>posed"o8 t"e European nion 8ors77or doesnKt77and t"e :issures 0et8een t8o o: its 0i%%est mem0ers.

    B' L$n/

    !o"pe#$#$%ene&& (ero &u" ) US $n*re&e& $n *o"pe#$#$%ene&& +e*re&e #,e EU&

    ;o"an Le"./eF Visitin% !"olarF ?"e 5nstitute :or EuropeanF 3ussian and Eurasian !tudies (5E3E!)F F 2-03("ttpB//"ome.%8u.edu/Glem0e/?"eH2-EuroFH2-EuropeH2-andH2-?ransatlantiH2-3elationsH2-7H2-!"ortH2-version.ppt) more po8er:ul Euro76one ould "allen%e merias eonomi po8erF :inanial in:luene and industrialpreeminene t"at "ave 0een supported 0y virtue o: "avin% t"e 8orlds dominant urrenyaullist Europe sees t"e Euro as a means to reover in:luene and pus" :or an independent :orei%nF seurity andde:ense poliy t"at ould inrease osts :or merias diplomayit" a stron%er Euro & Euro76one in t"e international monetary and :inanial systemF t"e .!. and t"e E 8ill0eome $n*re&$n en#ne+ $n (ero-&u"5 *o"pe#$#$on t"at ould redue Europes interest in t"e promotion o:ommon strate%ies 0eyond Europe

    !' I"p*#&

    1' EU *o"pe#$#$%ene&& $& /e #o #,e e*ono"

    ?ais 6o#opouo&F !enior $eturer in Eonomis at t"e niversity o: Nort" $ondonF 1,7F"ttpB//888.demoraynature.or%/dn/vol2/:otopoulos_end."tm?"ere:oreF t"e institutional :rame8or t"at is 0ein% esta0lis"ed today in Europe onsists o: a model in 8"i" t"eontinuation o: %ro8t" depends on a proess o: :urt"er internationaliIin% its eonomyF t"rou%" t"e destrution o:loal eonomi sel:7reliane and t"e ontinual e>pansion o: e>ports to ope 8it" a %ro8in% volume o: imports. 5nt"is proessF 8"i" taes plae 0ot" 0et8een 0los (EE a%ainst t"e ;apanese and merian 0los) and inside ea"0loF t"e vitors 8ill 0e t"ose 8"o possess t"e prodution and te"nolo%ial 0asis t"at allo8s :or t"e ontinualinrease in produtivity reuired 0y t"e tou%" international ompetition. ConseuentlyF t"e more suess:ul aountry is in raisin% its produtivity and ompetitivenessF t"e %reater its eonomi prosperity.

    2' I"p*# $& nu*er ;r

    3i"ard !oo/F /14/0>F p%. "ttpB//888.%lo0alresear".a/inde>.p"pMonte>tva&aid#,4?imes o: eonomi risis produe international tension and politiians tend to %o to 8ar rat"er t"an :ae t"eeonomi musi. ?"e lassi e>ample is t"e 8orld8ide depression o: t"e 1,-s lead in% to orld ar 55. Conditionsin t"e omin% years ould 0e as 0ad as t"ey 8ere t"en. e ould "ave a really 0i% 8ar i: t"e .!. deides one and:or all to "aul o:: and let C"ina F or 8"omeverF "ave it in t"e "ops. 5: t"ey dont 8ant our dollars or our de0t anymoreF "o8 a0out a :e8 nuesM

    RAIDERRETALIATION - -

    http://home.gwu.edu/~lembke/The%20Euro,%20Europe%20and%20Transatlantic%20Relations%20-%20Short%20version.ppthttp://home.gwu.edu/~lembke/The%20Euro,%20Europe%20and%20Transatlantic%20Relations%20-%20Short%20version.ppthttp://home.gwu.edu/~lembke/The%20Euro,%20Europe%20and%20Transatlantic%20Relations%20-%20Short%20version.ppthttp://home.gwu.edu/~lembke/The%20Euro,%20Europe%20and%20Transatlantic%20Relations%20-%20Short%20version.ppt
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    **#ni$ueness

    RAIDERRETALIATION - > -

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    #ni$uenessEurope E%onomy

    UTurnroun+Europen e*ono" #,r$%$n po *r$&$& ($on% 1NC)Ne;&;ee/< 11=10=08:ter 8ees o: :iddlin% 8"ile t"e %lo0al :inanial system 0urned F t"e Europeans :inally %ot to%et"er in mid7to0er

    to support t"eir 0anin% systems 8it" a oordinated J1.# trillion0ailout F in a move t"at may "ave "r/e+ #,e#urnroun+ $n #,e *r$&$&. ?"e various national paa%es o: %uarantees and 0an reapitaliIation 8ere sensi0le andseem to 0e iin% in . 9oney marets "ave 0e%un to un:reeIe . $ast 8ee0uyers seem ed :inally to 0e returnin% toEuropeKs 0attered sto marets F 8it" t"e Do8 ;ones Euro !to>> inde> lim0in% 12 perent :or t"e 8ee. "et"ert"is is t"e start o: a reovery or Lust t"e se%ue into a ne>t p"ase o: t"e risis isF o: ourseF unlear. =ut it "as e>posed"o8 t"e European nion 8ors77or doesnKt77and t"e :issures 0et8een t8o o: its 0i%%est mem0ers.

    UEU e*ono" re*o%er$n

    ?one< 11==008!o "o8 s"ould you :ill out t"at 2#H :orei%n alloationM ?"e vast maLority o: t"is money 0elon%s in s"ares o:ompanies 0ased in estern Europe and ;apanF money mana%ers say.Not only is t"erepolitial and :inanialsta0ility in t"ese re%ionsF 0ut alon% 8it" Nort" meria t"ey olletively aount :or nearly #,ree-:ur#er& o@ #,e;or+& ou#pu#' T,ere &o epe*#e+ #o re*o%er @ro" re*e&&$on n+ re-**eer#e &ooner #,n #,e re o@ #,e

    ;or+'

    UEuropen e*ono" re.oun+$n

    Boo".er< 11==08European stos advaned :or a :i:t" dayF t"e lon%est stret" o: %ains in a yearF as delinin% money7 maret ratesovers"ado8ed evidene t"e %lo0al eonomy is slippin% into a reession.5N roep NVF t"e Net"erlandsK 0i%%est :inanial7servies providerF added #.2 perentF and !8iss 3einsurane Co.Ft"e 8orldKs seond7lar%est reinsurerF lim0ed . perent as a leadin% money7maret indiator slid to t"e lo8est levelsine t"e ollapse o: $e"man =rot"ers Ooldin%s 5n. O=! Al rallied .1 perent on speulation t"e mort%a%elender may reeive a rival 0id to $loyds ?!= roup AlKs o::er.

    ?"e Do8 ;ones !to>> -- 5nde> rose -. perent to 22.+F marin% t"e lon%est 8innin% strea sine to0er 2--'.PPQou are seein% some si%ns o: t"e stress indiatorsF or inter0an lendin%F are re+u*$nFKK said ndre8 =ellF "ead o:resear" and strate%y at 3ens0ur% !"eppards Al. PPClearly liuidity is 0ein% provided :rom entral 0ans and%overnments to s"o8 t"at t"e 0ans an ontinue to :untion. 5 donKt t"in t"e 0an 0ailouts are overF 0ut 8"at you"ave no8 is a 0elie: t"at su::iient apital 8ill 0e :ound to plu% t"e "oles.KKN#$on .en*,"r/ $n+ee& ro&e $n 18 ;eern Europen "r/e#& e>ept 5reland. ?"e .

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    #ni$uenessEurope E%onomy

    UEurope re*o%er$n

    A&&o*$#e+ Pre&&< 10=2>=08.!. and European sto marets reovered mu" o: t"eir early lossesF "elped 0y investors looin% :or 0ar%ains a:ters"arp drops in sia overni%"tF alt"ou%" t"e mood in :inanial marets remains dar on :ears o: a %lo0al reession.

    ?"e Do8 ;ones industrial avera%e 8as do8n Lust '.# pointsF or -.1 perent lo8er F at +'1.- in early Ne8 Qortradin%. ?"ey 8ere almost 1 perent lo8er on t"e open..!. stos 8ere supported 0y 0ar%ain "untin% as 8ell as a rare piee o: %ood ne8s :rom eonomi data. ?"eCommere Department said sales o: ne8 sin%le7:amily "omes rose 2.' perent in !eptem0erF :ar 0etter t"aneonomistsK e>petations :or a drop.Sood ne8s is pretty t"in on t"e %round t"ese daysF so t"e latest :i%ures on ne8 "ome sales in !eptem0er s"ould 0e"eris"edFS said Aaul s"8ort" at Capital Eonomis.European s"ares 8ere still in t"e redF 0ut retraed t"e maLority o: t"e losses t"ey su::ered on t"e open F 8"en t"ey:ollo8ed sian marets lo8er.=ritainKs @?!E 1-- inde> 8as -.2 perent lo8er at +'# a:ter "avin% 0een do8n 4.,perent in t"e mornin%.ermanyKs DRF 8"i" 8as lie8ise do8n almost # perent earlierF reovered to trade only -.# perent lo8er at42'. ?"is 8as "elped 0y an +- perent rise in t"e s"are prie o: Vols8a%en :ollo8in% ne8s t"at Aors"e 8ants to inrease its stae in t"e ar manu:aturer.

    UEurope %$n o@@ e*ono"$* &o;+o;n

    Ne; Yor/ T$"e&< 10=28=085n EuropeF 8it" evidene mountin% t"at t"e Continent is lur"in% into a reessionF t"e European Cental =anpresidentF ;ean7Claude ?ri"etF said it 8as Tpossi0leU t"at t"e 0an 8ould lo8er interest rates :or a seond time in asmany mont"sF a:ter main% its :irst move alon%side ot"er entral 0ans on t. +.T5t is not a ertaintyF it is a possi0ilityFU 9r. ?ri"et said.Despite t"e are:ul uali:iationF entral 0an 8at"ers are no8 virtually ertain t"at t"e 0an 8ill ut its 0en"marrateF no8 at .'# perentF 0y anot"er "al: perenta%e point 8"en it meets on Nov. .?"at move no8 loos set to 0e part o: a 0roadF %lo0al easin% o: interest rates over t"e ne>t 8eeF 8it" t"e @ederal3eserve t"is 8ee and t"e =an o: En%land ne>t also liely to lo8er 0orro8in% osts .:ter 8orryin% over t"e summer mainly a0out 0ris in:lation and risin% ommodity priesF entral 0ans "ave

    s"i:ted t"eir :ous to "eadin% o:: a %lo0al eonomi slo8do8n.

    UEurope e*ono" re&$$en#

    Bu&$ne&& ?on$#or< 10=29=08Consumer spendin% at supermarets in t"e Net"erlands "as "eld up 8ell despite delinin% onsumer on:idenelined to t"e :inanial risis. 5n :at t"e Dut" eonomy "as so :ar pro%en #o .e one o@ "o re&$$en# in esternEuropeF 8it" unemployment :allin% in 2--+ and DA %ro8t" still 8ell a0ove 2H. lt"ou%" =95 is urrently:oreastin% t"at eonomi %ro8t" 8ill slo8 sli%"tly over t"e ne>t t8o years (see %rap") at present t"e Dut"eonomy loos in re#$%e oo+ &,pe to 8eat"er t"e %lo0al eonomi slo8do8n.

    RAIDERRETALIATION - 7 -

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    #ni$uenessEurope Competitiveness

    Ye& EU *o"pe#$#$%ene&&!uer $n#er#$on

    Te*, EuropeF 11=4=08F Competitive ClustersB En%ines o: Europes CompetitivenessF $e>is.//;V!! European Commission ommuniation adopted on 1' to0er alls :or more e::orts to :ailitate t"e emer%ene o:

    8orld7lass lusters in t"e E. ?"e idea is to remove 0arriers to t"e inte%ration o: lusters in t"e internal maretFespeially t"ose o0strutin% no8led%e :lo8sF t"e mo0ility o: uali:ied sta:: or aess to :inane aross 0orders. European Cluster Aoliy roup ould 0e esta0lis"ed to support mem0er states 8it" t"e reation o: 8orld7lasslusters. 5n t"e European Cluster llianeF mem0er states and E re%ions 8ould ontinue to e>"an%e praties todesi%n 0etter luster poliies. ?"e European Cluster 0servatory 8ould :oster transnational ooperation and developpartners"ips aross t"e E. pilot s"eme 8ould o::er trainin% pro%rammes and a plat:orm :or ooperation :orluster mana%ers. ?"is ould "elp to reate a uality la0el :or luster or%anisations and esta0lis" ne8 8ays o:supportin% small and medium7siIed enterprises.Aersistent maret :ra%mentationF 8ea lins 0et8een resear" and industry and insu::iient ooperation 8it"in t"eE mean t"at lusters in t"e E do not "ave t"e neessary innovation apaity to :ae %lo0al ompetition.Competitive lusters provide a ri" 0usiness environment :or ompaniesF espeially !9EsF to olla0orate 8it"resear" institutionsF suppliersF ustomers and ompetitors loated in t"e same %eo%rap"ial area.?o :ailitate t"e development o: more 8orld7lass lusters in EuropeF t"e Commission 8ill streamline initiatives t"at

    are relevant to luster support su" as t"ose 8it"in t"e Co"esion AoliyF t"e @rame8or Aro%ramme :or 3esear"and Development and t"e Competitiveness and 5nnovation Aro%ramme.

    UEU @un+$n @or S?E& +r$%$n ro;#, n+ *o"pe#$#$%ene&&

    Go. In&$,#< 11=9=-+F $e>is.//;V!!!mall and medium enterprises (!9Es) ould %ain aess to more apital in 2--, as t"e %overnment o: Arime9inister 9ire ?opolane "as deided to release more European nion (E) :unds :or t"eir support. mid8orsenin% eonomi prospets and ti%"tenin% reditF ?opolaneKs a0inet 8ill provide 1 0illion oruna (-!.+40illion) to !9Es durin% t"e ne>t :isal yearF almost + 0illion oruna more t"an ori%inally planned & ; o@e&$n #,e @$nn*$ &$#u#$on @or en#erpr$&e&. s some 0ans "ave restrited t"eir lendin% in li%"t o: t"e %lo0almaret turmoilF many :irms no8 :ind it di::iult to o0tain 0an redit. ?"e E :unds 8ill 0e provided under t"eum0rella o: t"e perational Aro%ramme Enterprise and 5nnovations 2--'72-1F 8"ose %oal is to inrease #,e

    *o"pe#$#$%ene&& o@ #,e n#$on e*ono". Durin% t"e entire 2--'7 to 2-17periodF t"e total sum availa0le :or t"epro%ramme is - 0illion oruna.

    Ye& EU *o"pe#$#$%ene&&

    6$nn*$ Ne#;or/F (9iddle East and Nort" :ria @inanial Net8or)F 11=3=08F $e>is.//;V!!?"e European 5nvestment =an (E5=) is lendin% E3 -- million :or ey investments in $atvia. ?"e E5= tar%etssoial and eonomi in:rastrutureF eduationF trainin% and promotion o: entrepreneurs"ip as 8ell as transportFenvironment and ener%y. n t"is oasionF E5= Vie7Aresident Eva !reL0er stated todayB S5n vie8 o: t"e importaneo: E5= lendin% to ey in:rastruture proLets atta"ed 0y E leaders at t"eir re%ular autumn summit in =russels last?"ursdayF ;e re epp$n up our e@@or#& #o ren#,en t"e *o"pe#$#$%ene&& o: t"e $atvian eonomy and en"anet"e e::etive use o: t"e E %rant :unds alloated to $atvia.

    RAIDERRETALIATION - 10 -

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    #ni$uenessEurope Competitiveness

    UEurope #/$n #,e *o"pe#$#$%e e+

    P#r$o# Ne;&< 11=2=08F $e>is.//;V!!?"e Eonomist 5ntelli%ene nitF usin% some8"at di::erent riteriaF predits t"at t"e nited !tates 8ill 0e only t"e12#, .e environment :or 0usiness over t"e ne>t :ive years. !i> European ountries are e>peted to 0e 0etter 0ets .

    ?"e point isF t"ere is not mu" di::erene 0et8een t"e eonomi ompetitiveness o: t"e nited !tates and mostEuropean ountries despite very di::erent 0elie:s in t"e appropriate role o: %overnment in t"e eonomy.CertainlyF ta> rates are "i%"er in Europe. ?a>es omprise a0out 4- perent o: %ross domesti produt :or t"e 1#ri"er ountries o: t"e European nion 77 "i%"er t"an t"e - perent :i%ure :or t"e nited !tates. Oo8everF "avin%"i%"er ta> rates t"an t"e nited !tates does not mae a ountry si%ni:iantly less ompetitive.?"e Nordi ountries "ave ta> rates t"at 8ould %ive most merians "eart attas. =ut t"eir %overnments "ave0ud%et surpluses and lo8 levels o: pu0li de0tF and "ave used ta> revenues to 0uild stron% eduation systems ande>pand aess to te"nolo%y 77 poliies t"at "ave 0ene:ited multinationals su" as Noia and Erisson.Europe "as serious "allen%esF inludin% an a%in% populationF overly ri%id la0or maretsF and %overnments inountries lie @rane and 5taly t"at meddle too mu" in mer%ers and auisitions. =ut t"ese ountries de:initely arenot eonomi 0aset ases.ermany 77not t"e nited !tates 77 is t"e 8orldKs lar%est e>portin% nation. @inland and !8eden spend :ar more onresear" and development relative to t"e siIe o: t"eir eonomies t"an t"e nited !tates does. nd 8orers in=el%iumF @raneF t"e Net"erlands and Nor8ay all produe more per "our 8ored t"an do merian 8orers. ?"eseaomplis"ments do not suare 8it" t"e derision t"at 9Cain and Aalin "ave :or European ountries and t"eireonomi models and undersore t"e andidatesK 8ea understandin% o: t"e %lo0al politial eonomy.

    RAIDERRETALIATION - 11 -

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    #ni$ueness#S E%onomy

    UDor ron n+ r$&$n

    BB! Ne;&< 10=2>=08?"e dollar "as emer%ed as one o: t"e main 8inners in t"e :inanial risis. s redit "as dried upF 0ans "ave startedto all in loansF 8"i" "as meant 0orro8ers "avin% to 0uy up dollars to repay loans t"ey o8e in t"e urreny. ?"is

    all o: 8"i" means t"e pr$*e o@ #,e +or $& &e# #o *on#$nue r$&$n' 9any developin% ountries :ae mountin%pro0lems :inanin% t"eir de0ts as ! 0ans are inreasin%ly relutant to lend dollars to 0ans a0road. ?"e sale o:t"ese loans is "u%e. 5nternational 0ans "ave e>tended a0out 2.# trillion in :orei%n7urreny loans to emer%in%marets. 5nvestors are s8it"in% to urrenies and marets t"ey pereive as sa:e 7 and t"at means t"e dollar. ?"e5CE :utures e>"an%eKs ! Dollar 5nde>F 8"i" tras t"e dollar a%ainst si> ot"er maLor urreniesF "as risen 21Hsine ;ulyF to its "i%"est sine to0er 2--. ?"e dollar level "as &ore+ #o #;o-n+--,@ er ,$, a%ainst t"eeuro and rea"ed its stron%est in si> years a%ainst t"e pound. !everal urreny traders no8 say t"ey e>pet t"edollar to rea" pr$# 8it" t"e euro . Oans 3edeer o: =NA Aari0as in $ondon said t"e %lo0al risis 8as Smani:estin%into dollar stren%t"S.

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    #ni$ueness#S Competitiveness

    US *o"pe#$#$%ene&& o; no;!,$n

    =rian OS,u,ne&&F C"airman o: 3evere Copper ArodutsF #/22/08F .!. and lo0aliIationF Capitol OillOearin% ?estimonyF Committee on Oouse !iene and ?e"nolo%y !u0ommittee on 5nvesti%ations and versi%"tF

    $e>is.//;V!!?"e artile statesF SC"ina "as surpassed t"e nited !tates in a ey measure o: "i%" te" ompetitiveness. ?"eeor%ia 5nstitute o: ?e"nolo%yKs 0i7annual Oi%"7?e" 5ndiators :inds t"at C"ina improved its te"nolo%ialstandin% 0y , points over t"e period o: 2--# to 2--'F 8it" t"e nited !tates and ;apan &u@@er$n +e*$ne& o: .+ and'.1 respetively. 5n eor%ia ?e"Ks sale o: one to 1--F C"inaKs te"nolo%ial standin% no8 rests at +2.+F omparedto t"e .!. at '.1. ?"e nited !tates peaed at ,#.4 in 1,,,. C"ina "as inreased :rom 22.# in 1,, to +2.+ in2--'.S S?"e messa%e speas out pretty loudlyFS says lan AorterF o7 diretor o: eor%ia ?e"Ks ?e"nolo%y Aoliyand ssessment CenterF 8"i" produes t"e 0en"mar. S5 t"in t"e pro&pe*#& re pre## &*r.S

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    #ni$uenesslo'al E%onomy

    No o. +epre&&$on#,e e*ono" ;$ .oun*e .*/

    !teve 6or.e&F Editor in C"ie:F AresidentF and C"ie: E>eutive ::ier o: @or0esF 11=10=08F Oo8 Capitalism ill!ave sF @or0es 9a%aIineF $e>is.//;V!!e are e>perienin% t"e devastatin% onseuenes o: a "ain o: maLor eonomi poliy errorsF 8"i"F to use a

    urrent li"WF reated t"e per:et storm. ?"ese %overnment0lunders temporarily paralyIed t"e %lo0al redit systemand are no8 sendin% t"e .!. and Europe into reessionF 8"ile s"arply uttin% 0a siaKs %ro8t" rates . $e:t to itso8n deviesF t"e redit risis F 8"i" 0e%an in u%ust 2--'F 8ould "ave rus"ed eonomies as severely as did t"ereat Depression . =elatedlyF0ut t"an:ullyF %overnments reo%niIed t"at t"e only 8ay to %et redit :lo8in% a%ain8as :or t"em to mae ui and diret massive in:usions o: ne8 euity into 0elea%uered0ansF as 8ell as ommit toot"er emer%eny measures "it"erto unima%ina0le. 5: sensi0le resue e::orts ontinue77and t"ey 8ill77t"e immediaterisis 8ill uily pass. !"ell7s"oed 0usinesses and onsumers 8onKt reover rapidly :rom t"e trauma o: reentmont"sF espeially as 8e no8 ope 8it" reession. =ut #,e +o;n#urn &,ou+n# .e proone+C T,e e*ono" ,eren+ #,o&e o%er&e& &,ou+ r# #o p$*/ up no #er #,n ne# &pr$n '?"at soonM Despite t"e risisF #,e o.e*ono" $ re#$n& enor"ou& ren#,& ' =et8een t"e early 1,+-s and 2--' 8e lived in an eonomi olden%e. Never 0e:ore "ave so many people advaned so :ar eonomially in so s"ort a period o: time as t"ey "avedurin% t"e last 2# years. ntil t"e redit risisF '- million people a year 8ere Loinin% t"e middle lass. ?"e .!.ied o:: t"is lon% 0oom 8it" t"e eonomi re:orms o: 3onald 3ea%anF partiularly "is enormous inome ta> uts.e 0urst :rom t"e eonomi sta%nation o: t"e 1,'-s into a dynamiF innovativeF "i%"7te"7oriented eonomy. Evenin reent years t"e mu"7mali%ned .!. did 8ell. =et8een year7end 2--2 and year7end 2--' .!. %ro8t" e>eededt"e entire siIe o: C"inaKs eonomy. 0viously C"inaKs %ro8t" rates 8ere "i%"erF 0ut C"ina 8as omin% o:: a mu"smaller 0ase. ?"e 8orld is :lus" 8it" as" . 5tKs :roIen 0eause o: :ear F 0ut t"e as" is t"ere. Arodutivity %ains are0ur%eonin%. !oF 8ill t"is %lo0al 0oom resume ne>t yearF slo8ly at :irst and t"en 8it" inreasin% momentumM 5ts"ould. "et"er t"at "appensF "o8everF depends on t"e ne>tF "i%"ly dan%erous p"aseB t"e politial a:termat".

    Go. e*ono"$* re*o%er +e&p$#e re*e&&$on ;oe&

    T,$ Pre&& Repor#< 11==08!to marets around t"e 8orld are postin% stron% %ains ?uesday as merians "ead to t"e polls to "oose t"e ne>tpresident o: t"e 8orldKs lar%est eonomy..!. s"are pries %ained 0et8een one and t8o perent as tradin% opened. European inde>es are up s"arply in middaytradin%F and ey sian marets 8ere "i%"er at t"e lose.

    ?"e %ains ome as a ey measure o: 0ans 8illin%ness to lend to ea" ot"er improved a%ain. =e:ore reent delinesin t"e S$i0orS interest rateF redit marets "ad 0een stalledF main% t"e eonomi risis 8orse.lso ?uesdayF =ritis" Arime 9inister ordon =ro8n predited oil7ri" ountries :rom t"e Aersian ul: 8illontri0ute more money to t"e 5nternational 9onetary @und (59@) 8"en 8orld leaders meet in as"in%ton ne>t8ee. ?"e 59@ is already %ivin% 0illions o: dollars to "elp 0ail out 5elandF raine and Oun%ary.

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    ______

    **!ins

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    !inind Competitiveness

    $n+ /e #o EU *o"pe#$#$%ene&&

    Re&our*e ee/< 10=2=08EE e>presses its onern a0out a proposed Krevie8 lauseK in t"e 3ene8a0le Ener%y DiretiveF and underlinest"e importane o: priority %rid aess :or rene8a0les. ?"e letter also addresses some o: t"e ot"er ey issues on t"e

    ta0leF su" as t"e internal eletriity maretF %rid inte%ration and E ompetitiveness. Krevie8 lauseK is urrently0ein% de0ated in Counil as part o: t"e 3ene8a0le Ener%y Diretive. ?"e lause 8ould introdue a revie8F in 2-14Fo: 8"et"er t"e :le>i0ility me"anisms 8ere ensurin% t"at t"e 9em0er !tates 8ere meetin% t"eir tar%ets. ?"is ouldundermine sta0le national support me"anismsF maret sta0ility and investor ertaintyF as 8ell as disoura%e9em0er !tates :rom ensurin% adeuate domesti investments 0e:ore t"e results o: su" a revie8 8ere no8n.EE onsiders it vitally important t"at rene8a0les are inte%rated into t"e E %rid system in a timely mannerF andin t"e uantities neessary to meet t"e E tar%et. 5t supports t"e European CommissionKs proposal on %rids andur%es t"e Counil to maintain it. ?"e Commission proposal 8ould ensure t"at 9em0er !tates tae all t"e neessarysteps to develop %rid in:rastrutureF and t"at rene8a0les 8ere %ranted priority %rid aess and priority %ridonnetion. 5t 8ould also "ave %uaranteed rene8a0les e::etive priority durin% dispat" 7 i: t"is is not up"eld 0y t"eCounilF e>istin% E le%islation 8ill 0e 8eaened. @air %rid aess is a minimum reuirement i: t"e E is to meetits 2-H tar%ets :or rene8a0les 0y 2-2-. 5n its letterF EE points out t"at 8ind ener%y ontri0utes to all t"ree eyo0Letives o: t"e EKs ener%y poliyF namely reduin% %reen"ouse %as emissionsF $"pro%$n #,e *o"pe#$#$%ene&&o@ Europe n+ en&ur$n &e*ur$# o@ &upp.

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    !inEner"y Competitiveness

    Ener *o"pe#$#$%ene&& /e @*#or @or Europen e*ono"$* ro;#,

    Europe EnerF 10=8=08SEven i: t"e Competitiveness Counil is not t"e orret :orum :or disussin% t"e limate "an%e paa%eF it is only

    le%itimate t"at it s"ould 0e raised "ere 0eause t"ere is ertainly an impat in terms o: ompetitiveness o: ourindustryFS said C"atelF promisin% to loo at t"e uestion o: S*o"pe#$#$%ene&& p&S t"at t"e European industrymi%"t 0e su::erin% . Oe added t"at talin% limate "an%e 8as an oppor#un$# :or European industry' Se :eel t"at#,$& $& re ro;#, @*#or @or our e*ono"$e&FS said C"atel. @or "is partF Enterprise Commissioner unterVer"eu%en stressed t"at t"e Commission is 8orin% "ard on identi:yin% 8"i" setors an 0e alled ener%y7intensive and are partiularly e>posed to international ompetition. Se 8ant to :ind and must :ind a solution :or t"eener%y7intensive industries in EuropeFS said Ver"eu%en. S5t "as 0een made lear t"at in partiularly important ases1--H :ree alloation 8ould 0e possi0leFS "e said. S?"is is somet"in% t"at 8e "ave to deal 8it" in t"e onte>t o: t"eoverall paa%eFS "e added.

    A#ern#$%e ener $& /e &e*#or @or EU *o"pe#$#$%ene&&

    Europe EnerF 1-/22/08?odayF t"e entire 8orld is :oused on t"e :inanial risis and t"e e::orts o: %overnmentsF entral 0ans and maretaut"orities to restore on:idene and to prevent a maLor eonomi meltdo8n. QetF t"e "allen%es o: limate "an%emustF under no irumstanesF 0e rele%ated to seond ran. ?"e promotion o: am0itious poliies and o: vi%orousation plans remains more t"an ever an a0solute priority in tain% up t"ese "allen%es. ?"e adLustment o: e>istin%servies to limate "an%e and t"e redution o: %reen"ouse %as emissions onstitutes a tremendous opportunity interms o: %ro8t"F innovation and ompetitiveness. ?"e European nion must t"ere:ore adopt resolutely t"e ener%y7limate paa%eKF allo8in% it to aim :or t"e si%ni:iant tar%ets it "as set and to prepare t"e %round :or a post7

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    !inEner"y Competitiveness

    Europen #ern#$%e ener *o"pe#$#$%ene&& /e #o EU e*ono"

    T,e Feru&e" PoF 1-/1#/08

    sienti:i proLet :unded 0y t"e EKs resear" pro%ram "as laimed it :ound t"at introduin% "ydro%en into t"eener%y system 8ould redue t"e total oil onsumption 0y t"e road transport setor 0y 4-H 0et8een no8 and 2-#-.=y 8orin% to8ard tain% a leadin% position in t"e 8orld8ide maret :or "ydro%en te"nolo%iesF Europe 8ants toopen ne8 eonomi opportunities and ren#,en $#& *o"pe#$#$%ene&&' =ut t"e analysis also states t"at transition8onKt "appen automatially. !u0stantial 0arriers "ave :irst to 0e overomeF ran%in% :rom eonomi andte"nolo%ial to institutional 0arriersF and ations must 0e taen as soon as possi0le. ?"e European Commissionstrives to 0rin% to%et"er industryF resear" institutes and %overnment a%enies :rom 1- European ountries.@ollo8in% a series o: more t"an #- 8ors"ops t"e proLet "as produed a road map to analyIe t"e potential impatson t"e E eonomyF soiety and environment o: t"e lar%e7sale introdution o: "ydro%en s"ort7 and lon%7termF as8ell as an ation plan detailin% 8"at needs to 0e done :or t"is to tae plae.

    Rene;.e *o"pe#$#$%ene&& +r$%$n @*#or @or EU ro;#,

    ?yler H"$#onF !ta:: riterF ?"e !tarF ,/2'/08F $e>is.//;V!!SEvery day you %et loser in one :orm or anot"er to priin% ar0on into :uelsF #,e p nrro;&< n+ #,e*o"pe#$#$%ene&& o@ rene;.e& $& en,n*e+FS "e says. Oe admits t"at "i%" eletriity pries in Europe "ave mademany o: t"ese te"nolo%ies and approa"es e*ono"$* in ountries lie ermany and !painF meanin% t"ey8ouldnKt neessarily 8or in ntario. ?o t"e dismay o: some environmentalistsF "e also emp"asiIes "is ommitmentto stay t"e ourse 8it" nulearF 8"i" om0ined 8it" "ydroeletriity :rom Nia%ara @alls %ives t"e provine t"estron% :oundation 7 and on:idene 7 it needs to eliminate oalF "e says. Se t"in 8eKre :as"ionin% a %ood 0alane.S

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    !inEner"y Competitiveness

    Ener e@@$*$en* +r$%$n EU *o"pe#$#$%ene&&/e @*#or @or ro;#, $n &e*#or& o@ #,e

    e*ono"

    Bu&$ne&& $reF ,/2#/08

    9i"ael Dell today ommended t"e European nionKs initiatives on %reen prourementF its sustaina0le industrialpoliy and its reent ommuniation on in:ormation and ommuniations te"nolo%y (5C?) @or ener e@@$*$en*.!peain% to E o::iialsF 9r. Dell said "is ompany 8anted to 8or 8it" E institutions in :ramin% t"ese poliiesand ot"ers in t"e :uture to preserve t"e environment 8"ile +r$%$n e*ono"$* *o"pe#$#$%ene&& n+ pro+u*#$%$#'S?"e European Commission an play an important role in motivatin% 9em0er !tates to use 5C? strate%ially toK%reenK t"eir o8n pu0li in:rastruture and servies. EuropeF as a leader in settin% environmental poliiesF anontinue to in:luene and inspire similar approa"es around t"e %lo0eFS said 9r. DellF "airman and CE o: Dell.Sit" t"e ri%"t poliy mi>F 8e an lead t"e transition and s"ape t"e :uture o: a prosperousF lo87ar0on eonomy.S;oined 0y o::iials o: t"e European Commission :oused on environment and in:ormation soiety poliyF 9r. Delldisussed t"e po8er o: reen 5? in miti%atin% environmental and limate "an%e pro0lems aross t"e eonomy. Oesaid reen 5? tools an +r$%e e@@$*$en* n+ pro+u*#$%$# $n &e*#or& o@ #,e e*ono"F ena0lin% improvements int"e use o: ener%y resoures.

    Ener e@@$*$en* /e #o EU *o"pe#$#$%ene&&

    ENDS Europe Repor#F ,/2#/085n ;ulyF t"e European ommission unveiled a poliy paa%e t"at aims to reenproduts manu:atured in Europe .mon% ot"er t"in%sF t"e ommission 8ants to e>tend t"e rea" o: e>istin% E eo7desi%n rulesF revise and enlar%eprodut eo7la0ellin% praties and set ne8 mandatory %reen pu0li prourement standards. K produt made inEurope an only 0e suess:ul in t"e :uture on t"e 8orld maret i: it "as not only uality standards 0ut i: it also isener%y e::iient and is %ood :or t"e environmentFK industry ommissioner unter Ver"eu%en said. KEuropean industry8ill retain ompetitiveness on $@ $#& pro+u*#& n+ &er%$*e& re #,e "o &u$n.e.

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    !inesear% and Development

    EU RD +%n#e $& /e #o EU *o"pe#$#$%ene&&

    Europen !o""$&&$onF 11/2#/04F"ttpB//europa.eu.int/omm/enterprise/enterprise_poliy/ompetitiveness/do/omprep_2--4_en.pd:@urt"ermoreF t"e pu0li setor is not only a per:ormer o: 3&DF 0ut also an important soure o: 3&D :undin% in t"e

    0usiness setor. 5n t"e =arelona European Counil 2--2F t"e 9em0er !tates deided to intensi:y t"eir e::orts toinrease investment in resear" and te"nolo%y development and lose t"e %ro8in% %ap 0et8een Europe and itsmain ompetitors. E>penditures on 0usiness setor 3&D as a perenta%e o: DA in t"e European nion (E71#B1.- H in 2--2) la% si%ni:iantly 0e"ind t"e ! (1.+ H in 2--2) and ;apan (2.2 H in 2--1) 8"ereas t"ere isvirtually no %ap in pu0li setor e>penditures on 3&D (inludin% t"e %overnment and "i%"er eduation setor). ?"e%ap in private resear" investment 0et8een t"e E and t"e ! "as alarmin% onseuenes :or t"e lon%termpotential :or innovationF %ro8t" and t"e reation o: employment in Europe. @or t"is reasonF t"e European Counildeided to strive to inrease %ross e>penditures on 3&D :rom 1., H to .- H o: DA in t"e European nion 0y2-1- 8it" industry ontri0utin% t8o7t"irds o: t"e total amount o: 3&D e>penditures (European CommissionF 2--aZ2--d). si%ni:iant ran%e o: pu0li %oods is neessary in a no8led%e7driven eonomy to reate t"e ompetitive advanta%eEuropean ountries need to ompete suess:ully 8it" t"e most dynami industrial eonomies in t"e 8orld. ?"esepu0li %oods inlude an e::etive siene and te"nolo%y 0aseF inentives :or no8led%e trans:er and 0usiness 3&DFt"e support o: onditions :osterin% innovationF and improvements in "uman apital endo8ments 0ot" t"rou%" :ormaleduation and lon%7li:e trainin%. ?o a"ieve t"ese aims European %overnments use di::erent mi>es o: indiret anddiret measures to stimulate te"nolo%ial ativity. Diret poliies inlude t"e :undin% o: %overnment 3&D la0sFuniversities or 0usinessesF t"e investment in "uman apital :ormation as 8ell as t"e e>tension o: patent protetionand :isal inentives :or 3&D (EC 2--aZ ri::it"F 2---). t"er poliies not diretly tar%eted at 3&D may also "avea positive impat on t"e level o: 3&D e>penditure. ?"ese measures inlude ompetition poliy and re%ulation inseveral setorsF inludin% p"armaeutials and teleommuniations (ri::it"F 2---).

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    !in+uto ,ndustry

    EU nee+& #o .e @$r "o%er n+ $nno%#or #o .e *o"pe#$#$%e

    Europen !o""$&&$onF 1172#704F"ttpB//europa.eu.int/omm/enterprise/enterprise_poliy/ompetitiveness/do/omprep_2--4_en.pd:

    ?"e om0ination o: mass prodution 8it" t"e omple>ity o: spei:i %oods su" as ars and ot"er transporteuipment maes t"e riss o: :ailure related to radial innovations very "i%". ?"ere:oreF proesses and produts aredeveloped inrementally. 5n7"ouse 3&D ativities and produt en%ineerin% are t"e main soures o: te"nialpro%ress. dditionallyF t"e 8or o: speialised suppliers sometimes resear" :ailities is inte%rated into t"e value"ain. E :irms "ave inreased t"eir investments in ne8produtsF ne8 proesses and ne8 te"nolo%ies onsidera0ly in t"e 1,,-s. Compared to t"e ! and ;apanF t"e E"as improved its position in terms o: 3&D investment. ?"e te"nolo%ial ompetitiveness o: t"e Europeanautomotive industry rests not only on t"e presene o: leadin% ar maers 0ut also on 8idespread innovationativities 8it"in t"e supplier part o: t"e industry.?"e impat o: a ne8 re%ulation on t"e automotive industry is omple>. 5t an vary 8it" t"e time "oriIon andintrodue dynami e::ets t"at are di::iult to assess aurately. 9easures lie ne8 pollution standards an "ave ane%ative e::et on t"e per:ormane and ost struture o: armaersF "allen%in% t"e ompetitive stren%t" o: t"eindustry. t t"e same timeF dealin% 8it" t"e measures an 0e t"e :irst step to8ards ne8 marets and a"ievin%

    te"nolo%y or uality leaders"ip.orld78ide demands to mae ve"iles sa:er and more environment7:riendly 8ill ontinue. ?"ese demands 8illdrive resear" and innovationZ it is o: ruial importane to identi:y and implement innovative te"nial solutionst"at 8ill 0eome %lo0alF t"us %ivin% European industry a :irst mover advanta%e.

    EU nee+& #o .e #,e $nno%#or #o .e *o"pe#$#$%e $n #,e u#o $n+ur

    Europen !o""$&&$onF 1172#704F"ttpB//europa.eu.int/omm/enterprise/enterprise_poliy/ompetitiveness/do/omprep_2--4_en.pd:C"apter 4 e>amines t"e ompetitive position and reent developments in t"e European automotive setor as 8ell asre%ulation issues impin%in% on t"e setors per:ormane. Europe "as a stron% position in automotive prodution andtrade and European ompanies "ave esta0lis"ed leadin% international positions 0ot" as e>porters and as investors.?"is suess rests on t"e lar%e and sop"istiated European maret 8"i" is dominated 0y loal 0rands.

    ?"e industry is under permanent "an%e as %lo0alisationF onsolidation and restruturin% o: t"e value "ain oursZone su" development 8as t"e up%radin% o: t"e role o: t"e supplier industry. t t"e same timeF t"e Europeanautomotive industry seems to "ave :ully %rasped t"e opportunities o: t"e reent enlar%ement o: t"e E.?"e importane o: t"e ar in t"e eonomy and in everyday li:e plaes it neessarily at t"e entre o: manyF sometimesdiver%entF re%ulatory reuirements. ?"e industry "as an interest in t"e ontinuation and :ruition o: t"e e::orts to0etter re%ulate. : ruial importane 8ill 0e to identi:y and implement innovative solutions t"at 8ill 0eome%lo0alF t"us %ivin% European industry a ompetitive advanta%e.

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    !in2NC +uto ,ndustry

    US "r/e# /e #o EU u#o $n+ur

    Europen !o""$&&$onF 1172#704F"ttpB//europa.eu.int/omm/enterprise/enterprise_poliy/ompetitiveness/do/omprep_2--4_en.pd:?"e E71# maret is dominated 0y European 0rands. =et8een 1,,+ and 2--2F only minor s"i:ts too plae in t"e

    maret s"ares o: di::erent 0rands. erman and @ren" 0rands "old 0y :ar t"e lar%est s"aresF and 8ere even a0le toe>pand t"eir maret preseneF 8"ile 5talian and < maret s"ares delined. ;apanese 0rands are t"e lar%est e>ternalplayers on t"e European maretsF onsidera0ly a"ead o: panded :urt"er 0et8een 1,,+ and 2--2. ;apanese 0rands "old a siIea0leF0ut delinin% stae. 5n ontrastF plained previouslyF produtivity in t"e E is lo8er t"an inF :ore>ampleF t"e ! or ;apan. ?"is puts pressure on t"e pro:it rates. ?"e e>"an%e rates 0et8een t"e main urreniesplay also an important role in t"is respet. 5n reent years t"e E71# automotive industry "as 0een %raduallyat"in%7up in terms o: la0our produtivity 8"i" is ontri0utin% to improvin% prie ompetitiveness. Oo8everF t"eat"in%7up in t"e area o: la0our osts "as 0een slo8. ?aen to%et"erF t"e E automotive industry is sine someyears under severe pressure 8it" re%ard to prie ompetitiveness.?"is is espeially true relative to t"e ! 8"i" "as %ained prie advanta%es due to dereasin% la0our osts relative toprodutivity %ro8t". Enlar%ement "as added to t"e E re%ions 8it" e>tremely lo8 la0our osts. ?"is 8ill "elp t"eautomotive industry to re%ain prie ompetitiveness. Oo8everF traditional loations o: ar or ar7parts prodution int"e E71# 8ill :ae an inreasin% pressure resultin% :rom t"e need o: improvin% t"eir prie ompetitiveness in 8orldmarets and :rom ompetition 0y lo8 ost prodution in t"e ne8 9em0er !tates. 5n summaryF enlar%ement 8ill "elpt"e E automotive industry to stay ompetitive and to restruture t"e value "ain.iven t"e pro0lems in t"e area o: prie ompetitiveness E automotive industry invests "eavily in 3&D in order to:oster produt and proess innovation. ?"e te"nolo%ial ompetitiveness o: t"e European automotive industry restsnot only on t"e presene o: leadin% ar maers 0ut also on 8idespread innovation ativities 8it"in t"e supplier parto: t"e industry. ?"ere are several indiations t"at t"is investment "as already improved t"e te"nolo%ialompetitiveness o: t"e industryF espeially in t"e area o: onstrution o: ar 0odies and "assis. 5n some ot"er areas

    o: te"nolo%ial innovation (e.%. ative sa:ety :eatures and en%ine te"nolo%y) t"e E la%s 0e"ind ;apan.

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    !in2NC +uto ,ndustry

    EU @*e& *,ene& @ro" #,e US ) EU u#o *o"pe#$#$%ene&& /e #o #,e EU u#o $n+ur

    Europen !o""$&&$onF 1172#704F"ttpB//europa.eu.int/omm/enterprise/enterprise_poliy/ompetitiveness/do/omprep_2--4_en.pd:

    ?"e level o: la0our osts presents an inreasin%ly serious pro0lem :or t"e automotive industry in some 9em0er!tates. !tillF la0our ost per "our 8ored in t"e E is some8"at 0elo8 t"e ! 0ut si%ni:iantly "i%"er t"an in ;apanand espeially in tF apaity utilisation rates are still"i%" in t"e E and t"ere "ave 0een some si%ns o: reovery in reent mont"s.Oo8everF despite overapaity in %lo0al automotive produtionF ne8 apaity 8ill enter t"e maret soon :romemer%in% ountries lie C"ina 0ut also :rom t"e ne8 9em0er !tates. ?"is 8ill inevita0ly :uel prie ompetition%lo0ally espeially in t"e mass maret se%ments o: t"e automotive industry.=ased on per:ormane on t"e %lo0al automotive maret one an onlude t"at t"e European automotive industry isompetitive. Oo8everF suess in t"e :uture is learly not %uaranteed. ;apanese manu:aturers are eually stron% ininvestin% in automotive innovations and ! produers are tain% advanta%e not only t"e lar%e "ome maret 0ut "avealso pursued internationalisation strate%ies :or years.?"ere are maLor te"nolo%ial "allen%es a"eadF most prominently t"e development o: ne8 te"nolo%y/ :uelom0inationsF inludin% :uel ells. Competition and innovation 8ill ontinue to 0e entral determinants o: t"evia0ility and stren%t" o: Europes automo0ile industry. orld78ide demands to mae ve"iles sa:er and moreenvironment7:riendly 8ill ontinue. ?"ese demands 8ill drive resear" and innovationZ it is o: ruial importane toidenti:y and implement innovative te"nial solutions t"at 8ill 0eome %lo0alF t"us %ivin% European industry a :irstmover advanta%e.

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    _____________

    **,nternal !ins

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    ,!-ero.Sumenea'les

    !o"pe#$#$%ene&& (ero-&u" ;,en #,ere re @e; pro+u*er& ) #,$& $& #rue o@ rene;.e )

    $rpne e"pe pro%e&

    Clyde v. Preo;$#(F ;r. is t"e Aresident o: t"e Eonomi !trate%y 5nstituteF 1,74F

    "ttpB//888.:orei%na::airs.or%/1,,4-'-1:aresponse#'4/lyde7v7presto8itI7Lr/playin%7to78in."tmlports airplanes and ma"inery t"at Costa 3ia does not mae. =ot" ountries ome out 8inners 0ydevotin% t"eir resoures to 8"at ea" does 0est. =ut 8"at a0out t"e ind o: trade typi:ied 0y t"e reent !audira0ian order :or 0illion o: ne8 airplanesM "y 8ere t"e Europeans so upset and Clinton so "appy 8"en t"e!audis announed t"at .!. produers 8ould 8in all t"e ordersM =ot" t"e Europeans and t"e merians maeairplanesF and t"is order means t"at t"e nited !tates 8ill %ain Lo0s and inome t"at Europe mi%"t "ave "ad 0ut lost.

    ?"is 8as lar%ely a Iero7sum trade situationF and ironially it 8as preisely t"e ase t"at :irst 0rou%"t ampleF 0ut it does not redue t"e livin% standard o: ot"er ountries. lt"ou%" t"is notion may 0etrue in t"e s"ort7termF a0solute senseF it is not neessarily true in t"e lon%7termF potential sense. !ine t"e end o:orld ar 55F t"e nited !tates "as %ro8n :aster t"an reat =ritain. ?"e nited !tates "as done so in part 0y tain%

    =ritis" inventions su" as Let planes and radar and ommerialiIin% t"em :aster t"an t"e =ritis"F t"ere0y losin% o::t"ose industries as potential avenues o: =ritis" %ro8t". : ourseF i: =ritain ould enter ot"er "i%"7%ro8t"F "i%"78a%e industriesF t"e .!. position 8ould mae no di::erene. =ut at any one time t"e num0er o: t"ose industries islimitedZ missin% t"e 0oat on one an mean losin% potential %ains in livin% standards. 5n t"e e>tremeF loss o:eonomi ompetitiveness an 8eaen national seurity and ause %reater vulnera0ility to politial re%imes andinternational artels t"at may severely onstrain a ountryKs eonomi potential. ?"is ompetition isF a:ter allF 8"atimperialism and its opposition "as 0een all a0out.

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    ,!-ero.Sum0anua%turin"

    !o"pe#$%ene&& $& (ero &u" $n "nu@*#ur$n $n+ur$e&

    P$n#F Eonomi nalyst [ 5nternational $a0or r%aniIationF 1,78F"ttpB//888.itilo.it/en%lis"/atrav/telearn/%lo0al/ilo/art/."tmCompetitiveness as a Iero7sum %ame . "en prodution and trade in partiular industries are sta%nantF t"e e::ort at

    inreasin% ompetitiveness 0y one ountry may simply displae :orei%n produersF 8it" no net %ain 7 e>ept in t"e:orm o: some 8el:are %ains :or onsumers o: ountries 8it" aess to lo8er ost %oodsF or a t"eoretialimprovement in t"e e::iieny o: resoure alloation (main% t"e irrealisti assumption o: per:et mo0ility o: :atorso: prodution aross setorsF re%ionsF et.). s t"e ountry losin% out may respond 8it" similar e::orts at lo8erin%ostsF a do8n8ard spiral may resultF leavin% 0ot" rivals 8orse o::Z as la0our ost and onditions are t"e easier tar%et:or ation in t"e s"ort termF t"e ris is a rae to t"e 0ottom 8"i" o::sets t"e eonomi %ains promised 0y inreasede::iieny and ompetitiveness. ?"e employment onseuenes o: su" strate%ies are partiularly ne%ative.Oo8 serious is t"is risM ::iial vie8s are ui to dismiss su" a possi0ility. ?"e 3eport o: t"e EuropeanCompetitiveness dvisory roup stresses t"at Sompetitiveness is not a Iero sum %ameS. n inrease inompetitiveness in one ountry is not seen as omin% at t"e e>pense o: anot"erF as t"e %ains in produtivity ande::iieny in di::erent ountries an 0e mutually rein:orin% (Competitiveness dvisory roupF 1,,).5n reality t"e ris o: a Iero7sum %ame depends on t"e overall dynamism o: partiular industries. Competitiveness is%enerally re:erred to t"e trada0le part o: t"e eonomyF in partiular manu:aturin% industryF 8"i" is a s"rinin% parto: t"e eonomy in terms o: value added and employmentZ moreoverF 8it"in manu:aturin% t"ere are a num0er o:slo87%ro8in% setors 8"ere e::orts to sueeIe lar%e produtivity %ains and inrease ompetitiveness may result in aIero7sum %ame. 5n :atF many manu:aturin% industries 8"i" in several European ountries "ave re%istered netemployment losses appear to 0e lear ases o: ompetitive pressures resultin% in a Iero7sum %ameF 8it" employmentlosses in European ountries and Lo0 %ains in ot"er industrial areas.

    In#ern#$on #r+e n+ *o"pe#$#$%ene&& $& (ero-&u"

    9arus Non+F 5nstitute :or 5nternational Eonomis and Oo8ard AaF "arton !"ool [ AennF 2-01F"ttpB//888.0entral.l/esp/estpu0/on:erenias/anuales/pd:/noland_pa.pd:#. e>ternalities t"at arise :rom t"e interation o: suppliers and 0uyers on t"e desi%n or met"od o: prodution o: aprodut leadin% to a 0etter or "eaper %ood t"an is availa0le internationally. 5n t"is aseF t"e soure o: t"e e>ternalityis t"e nontrada0ility o: some types o: inputs or no8led%e 7 ot"er8ise t"e improved met"od or produt ould 0eo0tained :rom international suppliers. 5n t"ese asesF 5A an 0e diretly 8el:are7en"anin% 0y improvin% t"e

    ompetitiveness o: domesti industryF leadin% to 0ot" "i%"er national (and 8orld) output. ?"ere are additional asesin 8"i" 5A an 0e 8el:are en"anin% or %ro8t"7promotin% t"rou%" t"e apture o: rents or terms o: trade e::etsassoiated 8it" international trade.4 5n t"ese asesF national industrial poliies "ave a Iero7sum element at t"e %lo0allevel and ould "ene 0e t"ou%"t o: as ontainin% a strate%i or predatory element. !imilarlyF t"e ne8 trade and%ro8t" literature 8"i" lins t"e ross7national pattern o: international trade speialiIation to di::erential ross7national %ro8t" rates provides numerous t"eoretial possi0ilities :or %ro8t"7en"anin% 5A at t"e national level(rossman and OelpmanF 1,,1).#

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    ,!-ero.SumEurope/#S/apan

    Europe< Fpn n+ #,e US re $n (ero-&u" *o"pe#$#$on ;$#, e*, o#,er

    Go. D$oueF 1,7> ("ttpB//888.i%d.or%.Ia/pu0/%7dialo%ue/pinion/%lo0al."tml)ne stream o: interpretation :ollo8in% t"e proli:eration and deepenin% o: re%ional arran%ements sine t"e 1,+-s"olds t"at t"e 8orld tradin% system is :ra%mentin% in t"e same 8ay as it did in t"e 1,-s. 5ts proponents mostly

    su0sri0e to t"e neorealist vie8 t"at state interation is 0ased on ompetition :or resoures leadin% to Iero7sumon:lit. s EuropeF Nort" meria and sia 0eome K:ortressesKF s"ieldin% KinsidersK :rom t"eir most7:avoured7nation o0li%ations and e>ludin% KoutsidersK :rom t"is re:u%eF t"e rules70ased multilateral tradin% system t"at "asdeveloped under t"e eneral %reement on ?ari::s and ?rade (att)F 8ill 0eome o0solete.?"is 8ill lead to a s"i:t to8ards a tripolar systemF 8it" t"ree 0los entred on EuropeF t"e nited !tates and ;apan8"i" 8ould "ave :ree trade internallyF 0ut mana%ed trade amon% t"em. ordin% to t"is perspetiveF as ea"re%ional po8er sees to ma>imiIe its 8ealt" and e>tend its territoryF t"e ris o: eonomi 8ars risesF 0eause in aIero7sum 8orld ea" re%ional po8er alulates t"at on:lit 8ill yield more 0ene:its t"an ooperation. Conerns o:t"ose 8"o :avour t"e multilateral tradin% systemF su" asF t"at t"e e>pansion o: re%ionalism ould undermine t"emultilateral system s"ould %overnments privile%e re%ional arran%ements in t"eir alloation o: eonomi resouresand politial apitalF are entirely le%itimate. Oo8everF t"ose 8"o vie8 an upsur%e in re%ionalism purely as a si%n o:politial and eonomi :ra%mentation o: t"e %lo0al system display a narro8 understandin% o: t"e omple>ity o: t"epost7old 8ar 8orld.

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    ,!-ero Sumenea'les

    Rene;.e #e*,noo $& (ero-&u" "e

    Ee*#ron$* En$neer$n T$"e&F 4/12/045nnovate to 8in t"e (ero-&u" %ame. !ustaina0le te"nolo%ies an 0e one o: t"e soures o: innovation and 8ealt"reation t"at reverses t"e :lo8 o: Lo0s o::s"ore. ?"ere are many opportunities7most immediately in t"e ener%y

    setor7to roll out ne8 lasses o: "i%"7valueF "i%"7pro:it produts and te"nolo%ies t"at 8ill "elp ot"er 0usinesses runmore e::iiently and allo8 us one a%ain to e>port %oodsF rat"er t"an pay"es. =ut to sueedF 0uddin% eo7preneurs must learn t"e tou%" lessons t"at suess:ul "ip maers "ave mastered to let t"em ompete and :louris" intou%" ommerial marets . ne use:ul tri 8e an 0orro8 :rom t"e "ip industry is t"e art o: em0eddin% oneKs produt deeply 8it"in t"evalue "ain. s t"e pries :or eletroni %oods :all or remain :latF "ip maers an maintain and even improve pro:its 0y %ra00in% lar%er "unso: t"e value "ain 0y o::erin% more :untions usin% :e8erF more innovative omponents. Clever desi%ners are reatin% "ips t"at a0sor0

    :untionsF add :eatures and eliminate ostly e>ternal passive omponents. $ie8iseF a %ood %reen en%ineer an put te"nolo%y to8or at t"e "eart o: an appliation and a0sor0 or displae ot"er :untions in t"e value "ain. @or e>ampleF Ao8er5nte%rations 5n.F in developin% "ip sets :or "i%"7e::iieny po8er supplies t"at meet upomin% sian and European su07178att stand0yreuirementsF still mana%ed to %ain a lar%er s"are o: a :lat 0ill o: materials 0y doin% a8ay 8it" ostly "eat sins and :ans7andF in some asesFtrans:ormers. 5Km not lever enou%" to envision even a :ration o: t"e plaes t"e eletronis industry 8ill 0e a0le to em0ed %reen te"nolo%ydeeply into value "ainsF 0ut ot"er :ields o::er %reat e>amples. 5nter:ae 5n.F t"e nationKs lar%est industrial arpet maerF "as reen%ineered its

    produts to 0e reyla0le 8it" a minimum o: 8aste and to>i emissions. =y ensurin% a lo87ostF ready7made stream o: :eedsto :or ne>t7%eneration arpetsF t"e ompany "as drastially ut material and ener%y osts. ill any omputer or appliane manu:aturer 0e 0old enou%" tospend time studyin% t"is oneptM @or anot"er e>ellent e>ampleF loo at t"e ener%y7e::iient "omes on t"e maret t"is year. !everal developersno8 o::er "i%"7e::iieny desi%ns t"at replae 2 > 4 studs 8it" more e>pensive 2 > s in t"e 8alls to allo8 room :or 37- insulation instead o: t"e

    usual 371,. ?"e 8ider 0eams and "i%"er7%rade insulation material are pried "i%"er t"an t"eir lo8er7%rade euivalentsZ 0ut 8it" t"e stron%er 2 >sF spain% 0et8een t"e studs an inrease :rom 1 to 24 in"esF savin% enou%" money 0y some estimates to pay :or t"e 8ider :ramin% as 8ell as

    t"e 0etter insulation. nd t"e resultant redution in OVC system reuirements :or t"e 0uildin% 8ill save even more. ?"e risin% ener%y andmaterials osts e>peted in t"e ne>t deade 8ill %ive innovators opportunities :or eo7smart produts andte"nolo%ies. @rom t"e polymer70ased p"otovoltai roo:in% materials under development at !?9iroeletronis tot"e "y0rid eletri ars o::ered 0y @ordF Oonda and ?oyotaF 8eKre Lust 0e%innin% to learn "o8 to reate savin%s :orot"ers and pro:it :or ourselves.

    Rene;.e #e*,noo $& (ero-&u"< !$@orn$ @ee +$&pu#e pro%e&

    Sou#,n+ Repor#&F 2-03 ("ttpB//888.sout"landreports.om/-212-!tory1."tm)?"e :ull amount o: t"e :ees is not yet no8nF t"ou%" estimates ran%e :rom a0out 2. ents a ilo8att "our in!out"ern Cali:ornia Edisons territory to possi0ly more in ot"er utility territories. ?"ey are liely to add T0illions o:dollarsU to t"e ost o: eletriity produed 0y distri0uted %eneration euipment in t"e omin% yearsF aordin% to

    Carl oodF a mem0er o: t"e Au0li tilities Commission."en eletri utility ustomers install euipment to maet"eir o8n eletriityF it reates 8"at is no8n as Tdepartin% load.U enerallyF t"ose ustomers still use t"e utilityompanys system :or some o: t"eir po8er. ?"ey also "ave 0ene:ited :rom t"e utility %rid in t"e pastF so t"eompanies ar%ue t"ose ustomers s"ould pay t"e same portion o: t"e ost as ratepayers 8"o "ave not installed t"eiro8n %eneratin% euipment. Tn e>emption is e::etively a su0sidyFU maintains ood. Tne %roup o: onsumers issu0sidiIin% anot"er %roup o: onsumers.U onsumer %roup t"at usually is at odds 8it" t"e eletri utility industryFsides 8it" t"e ompanies in t"is instane. T5ts a Iero sum %ameFU said 9att @reedmanF an attorney :or t"e tility3e:orm Net8or. Oe said t"at Cali:ornia "as Ta%%ressiveU rene8a0le ener%y pro%ramsF inludin% state su0sidies anda reuirement :or utilities t"at 8it"in t"e ne>t ten years 2-H o: t"e eletriity t"ey supply to Cali:ornia ustomers is%enerated 8it" rene8a0le ener%y. Oe su%%ested t"at estimates o: t"e impat o: t"e e>it :ees 0y t"e rene8a0le anddistri0uted %eneration industry are in:lated. Te 8ant to provide an inentive :or te"nolo%y t"ats positiveF 0ut atone you open t"e door everyone tries to %et an e>emption.U Oe su%%ested t"e state ould so:ten t"e 0lo8 o: t"e e>it:ees on environmentally 0ene:iial distri0uted %eneration te"nolo%iesF su" as solarF 0y providin% :urt"er

    inentives.

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    ,!-ero SumEle%tri% #tilities/Ener"y

    Ee*#r$* u#$$#$e& *o"pe#$#$on $& (ero &u"

    C"arles 9. S#u+ne&&F A"D in EonomisF Colum0iaF 1,7 (Au0li tilities @ortni%"tly)?"e mer%er a%reement 0et8een Enron and Aortland eneral Corp. "as res"u::led t"e eletri restruturin% de. 5tmaes eletri utilities taeover tar%ets :or outside suitors a:ter - years o: peae:ul immunity. 5t drives "ome t"e

    :at t"at eletri utilities 8ill 0e t"rust suarely into t"e (ero-&u" %ame o: "ead7to7"ead ompetition . 5tdemonstrates t"at maret :ores 8ill limit t"e a0ility o: re%ulators to ontrol restruturin%. 5t 0rin%s t"e onver%eneo: %as and eletri marets to enter sta%e.EnronKs proposed auisition o: Aortland eneral appears surprisin% only in its timin%. !ine 1,#F t"e Au0li tilityOoldin% Company t (AOC) "as e::etively %iven eletri utilities immunity to taeovers 0y outsiders. 5tsreuirements "ave proven su::iiently onerous t"at no private orporation outside t"e utility industry "as 0een8illin% to auire a utility and :all su0Let to Lurisdition under t"e t.Enron apparently e>pets t"at AOC 8ill "ave 0een repealed 0y t"e time it ompletes its auisition o: AortlandeneralF sine it is pro0a0ly no are 8illin% to 0e saddled 8it" AOC t"an anyone else.it"out t"e protetion a::orded 0y t"e Ooldin% Company tF an eletri utility s"ould prove as liely a tar%et :or ataeover as any ot"er ompany. 5n t"is aseF Enron "as simply antiipated repeal instead o: 8aitin% :or it to our.No8 t"at Enron "as made its preemptive strieF ot"ers an 0e e>peted to :ollo8.!o"pe#$#$on Turne+ Are&&$%e

    ?"e proposed mer%er maes it lear t"at "ead7to7"ead ompetition 8ill :orm a ey omponent o: t"e restruturedeletri industry. iven EnronKs a%%ressive 0ul7po8er maretin% ativity and Aortland eneralKs strate%i loation0et8een t"e lo87ost "ydropo8er re%ion o: t"e Aai:i Nort"8est and t"e "u%e Cali:ornia maretF Enron o0viouslyintends to ompete vi%orously :or ustomers and sales.

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    ,!Ener"y Competitiveness 3ey to E# E%onomy

    Europe& ener *o"pe#$#$%ene&& /e #o Europen e*ono"

    Europen !o""$&&$onF //09Current ener%y poliy5n its Communiation !"apin% t"e Ne8 EuropeF issued in 9ar" 2---F 8"i" looed at t"e nionKs strate%i

    o0Letives until 2--#F t"e European Commission identi:ied ener%y as San essential :ator :or EuropeKsompetitiveness and eonomi developmentS.?"e CommissionKs reen Aaper on t"e seurity o: ener%y supplyF pu0lis"ed in Novem0er o: t"e same yearF set outt"e main aim o: t"e nions ener%y poliy as 0ein% Sto ensure a supply o: ener%y to all onsumers at a::orda0lepries 8"ile respetin% t"e environment and promotin% "ealt"y ompetition on t"e European ener%y maretS. !in%le 9aret?"e reation o: a !in%le 9aret :or %oods and servies is a part o: t"e Es ener%y poliy and "as lon% 0een apriority o: t"e 9em0er !tates. ?"e European CommissionKs aim is to provide t"e E 8it" an e::etiveF sa:e andompetitive ener%y maret. ?"e reation o: t"e sin%le maret in ener%y supply is no8 8ell under 8ay. 5n t"e earlysta%es measures 8ere taen to ensure t"e openness o: pries to onsumers and to mae it easier :or t"e movement o:%as and eletriity 0et8een t"e Es maLor %rids.

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    ,!enea'le Competitiveness 3ey to E# 4usinesses

    Rene;.e ener *o"pe#$#$%ene&& /e #o Europen .u&$ne&&e&

    6$nn*$ T$"e&F /+/09?"e environmental dama%e aused 0y ministersK :li%"ts 8ill 0e o::set 0y investment in rene;.e ener andener%y e::iieny proLets.

    ?"is So::settin%S o: t"e ar0on dio>ide e>pended 0y ministersF to ome into e::et :rom pril 2--F is part o: t"e%overnmentKs sustaina0le development strate%yF announed yesterday.5t 8ill also see a plan to ensure t"e pu0li setorKs Aounds 12#0n annual prourement is spent in environmentallysound 8ays.9ar%aret =eettF environment seretaryF alled on 0usinesses to ontri0ute to environmental protetion.?"e %overnment "as told ompanies t"ey ould improve t"eir *o"pe#$#$%ene&& 0y reduin% t"eir environmentalimpat and :indin% ne8 opportunities in t"e industries arisin% :rom sustaina0le development.David 9iddletonF "airman o: t"e =usiness Counil :or !ustaina0le DevelopmentF 8elomed t"e strate%yB S5tKsappallin% t"at t"ere is a Aounds -0n maret (:or rene;.e ener and environmental te"nolo%ies) and yet ourdelinin% en%ineerin% and manu:aturin% setors donKt no8 itKs t"ere.S?"e ounil "ad alulated t"at manu:aturers ould earn Dollars 1.0n (Aounds ,#-m) a year i: t"ey too a -.2# perent s"are o: t"e 8orld maret :or environmental produts.S?ae 8ind tur0inesFS said 9r 9iddleton. S?"e en%ineerin% you need to mae t"e parts . . . isLust t"e same stu:: t"atyou put in arsF 0uses and trainsZ everyt"in% t"at manu:aturers in t"e est 9idlands an already do. =ut t"ey t"inin setors and t"ey donKt see t"is opportunity.Ss part o: t"e planF pu0li setor prourement mana%ers 8ould onsider :ators su" as ener%y e::iieny 8"enmain% pur"asin% deisionsF and optin% :or reyled material 8"ere appropriate.

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    ,!Competitiveness ey to E# E%onomy

    Europen e*ono"$* *o"pe#$#$%ene&& /e #o europe& e*ono"

    I?6AF 5talian 9inistry o: @orei%n ::airsF 2-04("ttpB//888.esteri.it/en%/_2_'.asp)5ntrodutionEuropean eonomi ompetitiveness is one o: t"e main :ators in a onte>t "araterised 0y %ro8in%

    interdependene and t"e p"enomena assoiated 8it" %lo0alisation. ttempts at a "oriIontal rein:orement o:ompetitiveness poliies 8ere 0e"ind t"e 22 ;une 2--2 !eville European Counil %roupin% o: t"e previous 5nternal9aretF 5ndustry and 3esear" Counils into a sin%le ounil 8it" t"e purpose o:Brein:orin% t"e sienti:i and te"nolo%ial 0ases o: E industry and enoura%in% development o: its internationalompetivenessZinte%rate ommunity resear" ativitiesZstruturin% t"e European 3esear" rea (E3) so t"at it is applied to t"e setors o: a%riultureF :is"in%F "ealt"Fonsumer protetionF transport and in:ormation (t"ose losest to t"e itiIens in partiular)Zsupport trainin% and mo0ility o: resear"ers 8it"in t"e E.?"e !prin% 2-- European Counil plaed ompetitiveness at t"e entre o: politial attention and appealed to all t"einstitutions and ountries o: t"e nion to %ive si%ni:iant impetus to and reate initiatives aimed at developin% aninte%rated strate%y to improve ompetitiveness :ators 8it"in 0usinesses and industry. ?"e need to stimulate %ro8t"also t"rou%" aelerated in:rastruture investments "as 0aed t"e initiative :or a strate%y related to a Europeantion :or ro8t" as a omplement to t"e eonomi strate%yF 0ased on t"e more ompetitive and dynamino8led%e o: t"e 8orld in a situation o: :ull employment and %reater soial o"esion.

    !o"pe#$#$%ene&& /e #o e*ono"$* ro;#,

    AD Fon&onF 2-03 ("ttpB//888."enryt"ornton.om/artile.aspMartile_id22++)5n a :ierely ompetitive %lo0al eonomyF innovation 0ased ompetitiveness provides a more sta0le :oundation :orprodutive %ro8t" t"an lo87ost prodution 7 8"i" is neessary 0ut not su::iient. enerally innovationontri0utes to eonomi %ro8t" and 8ealt" reation t"rou%" t"ree proessesB %enerationF appliation and di::usion.Close e>amination s"o8s t"at no8led%e di::usion 7 or t"e transmission o: e>istin% no8led%eF te"nial e>pertiseor te"nolo%y 0et8een :irmsF industries and nations 7 maes t"e lar%est ontri0ution to eonomi %ro8t".

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    ,!E# +uto ,ndustry 3ey to E# E%onomy

    EU Au#o In+ur $& /e #o #,e Europen e*ono" ) "r/e# $& "#ure no;

    Europen !o""$&&$onF 1172#704F"ttpB//europa.eu.int/omm/enterprise/enterprise_poliy/ompetitiveness/do/omprep_2--4_en.pd:

    ?"e automotive industry is one o: Europes maLor industries. 5t ontri0utes a0out H to total Europeanmanu:aturin% employment and ' H to total manu:aturin% output. lmost 2- H o: all 3&D in manu:aturin% isundertaen 0y ar manu:aturers. ?"e importane o: t"e automotive industry derives to a lar%e de%ree :rom lina%es8it"in t"e domesti and international eonomy. ?"ere is evidene :or upstream inputs o: a0out up to t8o times t"evolume o: value added t"at t"e industry produes.?"e E automotive industry is "i%"ly onentratedF 8it" ermany alone aountin% :or lose to "al: o: total valueadded. =esides !8edenF ermany and @raneF a speialisation in auto manu:aturin% is lear in t"e CIe" 3epu0liF!lovaia and Oun%ary.?"e E automotive industry "as 0een a0le to maintain its international position 0ot" in terms o: e>ports (8"ere itss"are "as inreased onsidera0ly) and in terms o: %lo0al salesF i.e. 8orld8ide salesF inludin% t"e "ome maretFe>ports and sales to :orei%n marets t"rou%" su0sidiaries. ?"is ould only 0e done 0y esta0lis"in% and maintainin% asu0stantial presene in :orei%n marets t"rou%" 8"i" European ompanies an %at"er ustomer :eed0a andmaret in:ormation. lar%e and sop"istiated "ome maretF in 8"i" European 0rands dominateF onstitutes a :irst and deisiveompetitive advanta%e :or t"e European automotive industry. ?"is maret presents a 8ide variety o: onsumerdemandsZ it permits t"e early ommerialisation o: innovations as 8ell as strate%ies o: produt di::erentiation.Oo8everF t"is maret is to a lar%e e>tent matureF most sales are :or replaement o: e>istin% ars. ?"ere:oreFperspetives :or :urt"er %ro8t" are rat"er limited.

    EU u#o $n+ur /e #o EU e*ono"

    Europen !o""$&&$onF 1172#704F"ttpB//europa.eu.int/omm/enterprise/enterprise_poliy/ompetitiveness/do/omprep_2--4_en.pd:4.2.1.1 Value added?"e automotive industry ontri0utes a0out ' H to total manu:aturin% output in Europe. ?otal value added produedin t"e motor ve"iles industry in t"e E71# in 2--2 8as rou%"ly t"e same as in t"e !F some J 114 0illion. ?"e

    value added in t"e prodution o: motor ve"iles in ;apan 8as some # H lo8erF J '4 0illion see ?a0le 4.1. it"int"e EF t"e prodution o: motor ve"iles is rat"er onentrated in a :e8 ountries. ?"e lar%est produers areermany (8"i" aounts :or 4# H o: total E71# value added in motor ve"iles prodution)F @rane (1' H)F t"enited ountries aount :or a0out, H o: motor ve"ile prodution 8it"in t"e E71#. ?"e s"are o: motor ve"iles in total manu:aturin% value added"as 0een sta0le sine 1,,1 in ;apan and t"e E71#F 0ut "as inreased si%ni:iantly in t"e !.114 5n 1,,1F t"e s"are8as a0out + H in ;apan (, H in 2---)F 4 H in t"e ! (+ H in 2---)F and H in t"e E71# (' H). it"in t"e EFmotor ve"iles prodution is most prominent in terms o: its DenmarF @inlandF reee and 5reland. s"are in totalmanu:aturin% in !8eden (1# H o: total manu:aturin% value added in 2--2)F ermany (1 H)F @rane (1- H)F!pain (' H)F =el%ium (' H)F ustria ( H)F < (# H) and 5taly (4 H).

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    ________

    **,mpa%ts

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    2NC ,mpa%t+ri%a E5port 0arets

    A++- OnA@r$*n Epor# ?r/e#&

    A' !op&e $n EU e*ono" $"$#& A@r$*n epor# "r/e#n/& #,e$r e*ono"

    T,o"&on 6$nn*$ Ne;&< 10=3=08!ome analysts "ave ar%ued t"at emer%in% maretsF su" as t"ose in :riaF "ave KdeoupledK :rom t"e developedeonomies o: t"e estF 8it" C"ina playin% an inreasin%ly important role as 0ot" a soure o: investment and amaret :or :rian e>ports o: oil and minerals.=ut 8"ile trade 0et8een :ria and t"e sian emer%in% marets o: C"ina and 5ndia 8as %ro8in%F t"oserelations"ips 8ere still youn% and :riaKs e*ono"$* $n/& ;$#, Europe ;ere "u*, roner F C"am0as said. K@orno8F t"e 0ul o: trade is still 8it" EuropeFK "e said. Oe e"oed t"e ar%uments o: mineral7e>portin% ountries lieuinea and Demorati 3epu0li o: Con%oF 8"i" 8ant to stop 0ein% soures o: Lust 0asi ra8 materials su" asunre:ined minerals and to 0eome produers o: :inis"ed and semi7:inis"ed %oods.K5 t"in t"at even 8it" t"ese ne8 maretsF t"e issue s"ould no# .e u #,e &upp o@ r; "#er$& :rom :ria.?"e same "allen%es t"at 8e :ae 8it" Europe also applyF and t"at isF 8e 8ant value7added e>ports to t"esemaretsFK "e said.

    B' L$"$#e+ r; "#er$ epor#& *u&e *$%$ ;r& #,# e&*#e ou#&$+e #,e *on#$nen#

    Aamela BoneF ssoiate EditorF ?"e %eF '/12/03F Tt lastF meria disovers :riaUF"ttpB//888.t"ea%e.om.au/artiles/2--/-'/11/1-#''+4,'4."tml

    :riaKs8ars are o:ten dismissed as Set"niS on:lits. =ut a reent orld =an study o: #2 maLorivil 8ars :ound most 8ere aused not 0y et"ni tensions 0ut0y entren"ed poverty and "eavydependene on natural resoure e>ports. ?"e report onludedt"at0eause t"e e::ets o: t"ese8ars o:ten spill over into nei%"0ourin% ountries 7 and even to :ara8ay ri" ountries 7 t"einternational ommunity "as Sompellin%S reasons to try to prevent t"emF even apart :rom t"e"umanitarian reasons.

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    2NC ,mpa%t+ri%a E5port 0arets

    !' T,$& $n*re&e& #,e r$&/ o@ r"& r*e& n+ nu*er u&e

    T,e A@r$*n S#u+$e& !en#re et al 2-03F ?"e ?ransnational 5nstituteF ?"e Center o: !oial !tudiesF Coim0raniversityF and ?"e Aeae 3esear" Center C5A7@OE9F T@ailed and Collapsed !tates in t"e 5nternational

    !ystemFU Deem0erF "ttpB//888.%lo0alpoliy.or%/nations/soverei%n/:ailed/2--/12:ailedollapsedstates.pd:5n t"e mali%n senario o: %lo0al developments t"e num0er o: ollapsed states 8ould %ro8 si%ni:iantly.?"is 8ould mean t"at several more ountries in t"e 8orld ould not 0e "eld to aount :orrespetin% international a%reements invarious :ieldsF 0e it ommerial transationsF de0t repaymentF t"epossession andproli:eration o: 8 eapons o: m ass d estrution and t"e use o: t"e national territory :orriminal or terrorist ativities. ?"e inrease in :ailed states 8ould $""e+$#e lead to an inrease ininternational mi%rationF 8"i" ould "ave a no7on e::et F :irst in nei%"0ourin% ountries8"i"F "avin% similar politio7eonomi struturesF ould su::er inreased desta0iliIation andollapse as 8ell. Developments in est :ria durin% t"e last deade may serve as an e>ample. 5nreasedinternational mi%ration 8ouldF seondlyF "ave serious impliations :or t"e estern 8orld. 5nEurope it 8ould put soial relations 0et8een t"e population and immi%rant ommunities under

    :urt"er pressureF polariIin% politis. n inrease in ollapsed states 8ould also endan%er t"eseurity o: estern states and soieties. Oealt" onditions ould deteriorate as onta%iousdiseases lie E0ola or !ars 8ould spread 0eause o: a la o: measures taen in ollapsed areas. eapons o: m ass d estrution ould ome into t"e "ands o: various sorts o: politial entitiesF 0et"ey terrorist %roupsF politial :ations in ontrol o: part o: a ollapsed state or an a%%ressivepolitial elite still in ontrol o: a national territory and intent on e>pansion. Not onlyNort"

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    a::eted 0y t"e universal ni%"tmare o: modern terrorism surprised 0y ne8 terrorist SsurprisesSM ?"ere are manyreasonsF inludin% misunderstandin% o: t"e mani:old spei:i :ators t"at ontri0ute to terrorismKs e>pansionF su" asla o: a universal de:inition o: terrorismF t"e reli%ioniIation o: politisF dou0le standards o: moralityF 8eapunis"ment o: terroristsF and t"e e>ploitation o: t"e media 0y terrorist propa%anda and psy"olo%ial 8ar:are.nlie t"eir "istorial ounterpartsF ontemporary terrorists "ave introdued a ne8 sale o: violene in terms o:onventional and unonventional t"reats and impat. ?"e internationaliIation and 0rutaliIation o: urrent and :utureterrorism mae it lear 8e "ave entered an %e o: !uper ?errorism ]e.%.0iolo%ialF "emialF radiolo%ialF nulear

    and y0er 8it" its serious impliations onernin% nationalF re%ional and %lo0al seurity onerns.

    2NC ,mpa%t+ri%a E5port 0arets

    E' Pro$@er#$on *u&e& e#$n*#$on

    U#o@@F survival v. 44 no 2 summer 2-02F p. ,-idespread proli:eration is liely to lead to an oasional s"oot7out 8it" nulear 8eaponsF and t"at su" s"oot7outs8ill "ave a su0stantial pro0a0ility o: esalatin% to t"e ma>imum destrution possi0le 8it" t"e 8eapons at "and.nless nulear proli:eration is stoppedF 8e are "eaded to8ard a 8orld t"at 8ill mirror t"e merian ild est o:t"e late 1+--s. it" most F i: not allF nations 8earin% nulear Ksi>7s"ootersK on t"eir "ipsF t"e 8orld may even 0e amore polite plae t"an it is todayF 0ut every one in a 8"ile 8e 8ill all %at"er on a "ill to 0ury t"e 0odies o: +e+*$#$e& or e%en ;,oe n#$on&'

    6' US-EU re#$on& &o%e& nu*er ;r

    Ser@#F diretor o: European !tudies [ t"e Center :or !trate%i and 5nternational !tudiesF 1,7>(!imonF !tay t"e CourseB European nity and tlanti !olidarity. A.4#7')9oreoverF si%ni:iant politial o0stales still stand in t"e 8ay o: siaKs eonomi potential. ?"e riss t"eyraise may prove deisive. $ie EuropeF sia remains "i%"ly vulnera0le to e>ternal s"os7inludin% asudden departure :rom t"e nited !tatesF a ollapse o: t"e :inanial marets in ;apanF or an implosion inC"ina. $ie EuropeF tooF many o: t"e sian ountriesF startin% 8it" ;apanF su::er :rom soietal slerosis andstrutural ri%idities. =ut unlie EuropeF t"ere annot 0e :ound in sia a multilateral struture :or peaeFdemorayF and prosperity. ?"e ountries o: sia annot relyF t"ere:oreF on t"e institutions :ound in and8it" t"e EF as 8ell as 0et8een and 8it"in its mem0ers. nlie EuropeF t"ese ountries "ave not yetresolved t"e territorial and national enmities t"at "ave de:ined t"eir violent rivalries in t"e past and mi%"tstill erupt ane8 in t"e :uture. nlie EuropeF t"e po8ers o: sia "ave not asserted amon% t"emselves t"e

    sort o: 0alaneF and displayed t"e ind o: moderationF t"at an "elp ontain on:lits a:ter t"ey start. ndunlie t"eir ounterparts in EuropeF t"e %overnments o: sia "ave not overome :undamen tal 0ut "i%"lyontroversial soial issues7inludin% 0irt" ontrolF environmental issuesF or individual and minority ri%"ts7and t"e ot"er :eatures o: a ne8 a%enda t"at 8ill de:ine tomorro8Ks politi al sta0ility and eonomia::luene. ?"at t"e maLor 8ars :ou%"t 0y 0ot" superpo8ers durin% t"e Cold ar all too plae in sia isnot a oinideneZ t"at t"e maLor 8ars :ou%"t a:ter t"e Cold ar may 8ell tae plae in sia too s"ould not0e vie8ed as a surprise eit"er.n t"e sta%e o: siaF t"ere is no %raious pas de deu>70e t8een F :or e>ampleF 5ndia and C"ina70eause t"ereis no :orei%n "oreo%rap"er 8"o an visualiIe t"e "armin% pirouettes o: one state s"o8in% its sills 8it"t"e support and stren%t" o: anot"erF as t"e nited !tates "elped do 8it" t"e @rano7erman ouple. 5nsteadFC"ina and ;apanF 5ndia and AaistanF t"e t8o

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    lo'al E%onomy ,!Europe 3ey

    EU /e #o #,e Go. E*ono"

    Peope& D$ nlineF /2#/01?"e E leaders attri0uted t"eir :avora0le eonomy to t"e restoration o: sound pu0li :inanes and t"e "ealt"y

    eonomi :undamentals.Aedro !ol0esF E ommissioner :or :inane and monetary a::airsF said t"e relatively stron% %ro8t" in t"e E "asmade t"e 0loF espeially t"e euro Ione< &@e ,%en :or investors. Sro8t" t"is year 8ill 0e su0stantially "i%"er inEurope t"an in t"e ot"er maLor developed eonomi re%ionsFS "e saidF 0ut St"is "as not yet 0een reo%niIed 0y t"emarets.S!8edis" @inane 9inister =osse 3in%"olm said t"e E 8as liely to tae t"e SpoleKs positionS in t"e 8orldeonomyF 8"ile "is @ren" ounterpart $aurent @a0ius 8as more am0itious 0y sayin% t"at t"e union 8as set torep*e t"e nited !tates as t"e "o#or o@ #,e o. e*ono".

    Euro(one /e #o o.e*ono" &,r$n/ *u&e& @er& o@ o. re*e&&$on

    $n,uF +/1#/08Oei%"tened 8orries over t"e %lo0al eonomy :ollo8in% t"e euroIoneKs latest DA readin% added to investor aution.@i%ures s"o8ed t"e euroIone eonomy ontrated -.2 pt in t"e seond uarter. 5t mared t"e :irst time t"e eonomy

    s"ran sine t"e European nion 8as reated in 1,,,F and raised t"e prospet o: a reession t"ere.

    Euro(one n#$on *u&e& o. re*e&&$on

    Fpn E*ono"$* Ne;&;$reF +/14/08?"e 1#7mem0er euroIone eonomy 8as apparently "it 0y a s"arp deline in private onsumption amid t"e %lo0al:inanial turmoil stemmin% :rom t"e .!. su0prime mort%a%e risis and s"arp in:lation led 0y rude oil pries. ?"epoor per:ormane o: t"e euroIone su%%ests t"at t"e 8orld eonomy ould 0e on t"e 0rin o: reession as t"e .!.eonomy lo%%ed a mere -.# perent uarterly inrease in t"e pril7;une period and ;apan ontrated 0y -. perentin t"e same uarter. mon% t"e euroIone nationsF ermany sa8 its eonomy s"rin -.# perent on a uarterly 0asisF8"ile t"e eonomies o: @rane and 5taly ontrated -. perent ea"F Eurostat said. ?"e %ross domesti produt o:t"e 2'7nation European nion also delined 0y -.1 perent in t"e reportin% periodF it said.

    Europe re*e&&$on *u&e& o. re*e&&$on

    &,$n#on PoF /1/09?"e ris is an eonomi implosion. sinin% sto maret ould dama%e merian onsumer on:idene andspendin%. Oi%"er urrenies :or Europe and ;apan ould 8eaen t"eir e>port *o"pe#$#$%ene&&' ( "i%"er urrenytends to mae a ountryKs e>ports more e>pensive and its imports "eaper.) ?o%et"erF t"e nited !tatesF Europe and;apan are "al: t"e %lo0al eonomy. 5: t"ey 8ent into reessionF ot"er ountries mi%"t :ollo8.

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    lo'al E%onomy ,!Europe 3ey

    e/ Europen e*ono" #n/& #,e o. e*ono"

    S*o#&"nF 1/4/09("ttpB//0usiness.sotsman.om/inde>.:mMid'#2--#)eo::rey DisF o: t"e 3oyal =an o: !otlandF saidB S5 8ould asri0e a "i%"7is" pro0a0ility to a s"arp "ousin% :all

    ]say per ent^F 0ut 5 8ould asri0e a lo87is" pro0a0ility ]say 1- per ent^ to t"is "avin% a si%ni:iant no7one::et on onsumer spendin%.S!lo8 8orld eonomi %ro8t" leadin% to a ontinued slu%%is" < e>port per:ormane 8as ited 0y almost "al: t"erespondents as a maLor risF 8it" most itin% a 8ea European eonomy as t"e most liely ause.sed i: t"e =oE s"ould 8orry more a0out "ouse priesF Lust under "al: t"ose respondin% supported its vie8Fe>pressed in t"e Novem0er 5n:lation 3eportF t"at t"e relations"ip 0et8een "ouse pries and t"e %ro8t" o: onsumere>penditure seemed to "ave 0roen do8n. ?"e eonomy "as outpaed t"e euroIone :or t"e past 1, uarters 0ut 8ill %ro8 at a slo8er pae t"is year as "ousepries deline and onsumer spendin% easesF a =loom0er% survey o: eonomists s"o8ed yesterdayF raisin% t"eprospet o: t"e :irst uts in interest rates sine ;uly 2--.?"e eonomy is liely to e>pand 2. per entF aordin% to t"e median estimate o: 21 eonomists surveyed a:ortni%"t a%oF do8n :rom more t"an per ent last year.

    Europe /e #o o. e*ono"

    Ne;eF 1-//08"en (no lon%er i:) t"e rap really "its t"e :an "ereF you 8ill not "ave enou%" marines to patrol 1H o: t"e on:litareas in Europe. ?"in a0out 5ra times - and populated 0y a :ar more 8ell eduated populationF driven 0ydesperation. n t"e ot"er "andF i: Europe 0eomes a :ailed ContinentF you dont "ave to onsider 8"et"er or not tointervene. t t"at point you 8ill simply not "ave t"e money to support your military e::orts anymoreF as 0ot" t"eC"inese and your domesti eonomiesF 8"i" are ,e%$ #$e+ #o ea" ot"er and #,e Europen "r/e#< ;$pro.. *op&e T as more t"an "al: a 0illion o: 8"at used to 0e amon% t"e 8ealt"iest onsumers in t"e orld;$ e%e #,e or+ e*ono" and enter t"e a0yss o: perpetual "ostilities . 5t is t8o minutes to midni%"t`

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    E%onomy ,mpa%tDevelopin" Countries

    Go. e*ono"$* +e*$ne *u&e& #e *op&e< po%er#< @"$ne< +$&e&e< n+ #error$&"'

    LA T$"e&F 1-/2'/08?"e %lo0al eonomi risis is desta0iliIin% a %ro8in% num0er o: developin% ountriesF s"arpenin% seurity riss inmany re%ions at a time 8"en t"e nited !tates and its 8ealt"y allies are preoupied 8it" t"eir o8n pro0lems.

    ?"e distress is liely to pus" #en& o@ "$$on& o: people 0elo8 t"e poverty lineF stirrin% soial unrest t"at ;e/en&%overnments and t"reatens to $n*re&e #,e nu".er o@ J#ee&& (one&FS la8less areas t"at are "avens :or riminalsand violent e>tremistsF say .!. o::iials and ot"er e>perts. 5n t"e poorest ountriesF t"e risis ould un+er"$ne ore%en #oppe o%ern"en#&F t"ey say.S@or t"e ne>t :e8 yearsF #,e ;or+ ;$ .e "ore +nerou& p*eFS predited 9it"ell =. 3eissF 8"o 8as a senior!tate Department o::iial durin% Aresident =us"Ks :irst term.Developin% ountries vital to .!. eonomi and seurity interests su" as 9e>ioF ?ureyF !out" inreases and spendin% limits 77 t"e :und imposes on 0orro8ers. seond set o: ountriesF t"e poorest and most vulnera0leF 8ill 0e%in :eelin% t"e risis in t"e ne>t :e8 mont"s.9any o: t"ese nations 8ill su::er as ommodity pries :all and t"e :orei%n aid and investment on 8"i" some are"eavily dependent dries up.SEven a modest redution in development assistaneF alon% 8it" lo8er :orei%n diret investment :rom t"e developed8orldF may 0e all it taes to #$p #,e" $n#o nr*,FS 3eiss said. S?"e soial :a0ri o: many ountries 8ill 0estret"ed and even torn.S?"e stress is liely to inrease @"$ne< +$&e&e n+ *r$"e and ould imperil t"e poorer %overnmentsF predited3eissF 8"o is diplomat7in7residene at t"e Colle%e o: illiam and 9ary in Vir%inia.

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    E%onomy ,mpa%tlo'al ar

    E*ono"$* *op&e& *u&e& o. ;r

    D$$# FournF 1-/2#/08=ut 0e:ore 8e loo at t"e modern Xuns versus =utter modelF it :irst "as to 0e noted t"at t"is p"rase 8as ori%inallypopulariIed in a time 8"ere seurin% eonomi prosperity 8as a primary onern in nearly every nation. 9ore

    importantlyF 8"en t"ese nations did eper$en*e e*ono"$* *op&e< ner o@ #,e" *,o&e Gun&. ?"ere is nouestion t"at NaIi a%%ression spa8ned orld ar 55F "o8everF 8"at 8as "appenin% in Europe 0eame a 8orld 8ar:or a purpose as entral to t"e "eart o: t"e apitalist as 8as t"e instantaneous end o: t"e "oloaust to t"e "eart o: t"eompassionate e*ono"$* pro&per$#. !imply saidF .$ ;r& re .$ "oneZ and to truly 0rea :rom t"e em0raeo: t"e reat DepressionF a 0i% ommitment to t"e eonomy 8as neessary. nd due to t"e leaders"ip t"at %uided t"e0alane 0et8een Xuns and =utter in t"e ! t"rou%" orld ar 55F t"e eonomy 8as onsidera0ly improvedZ t"is8as true :or many 8estern nations. s 5 sit and evaluate t"e diretion o: t"e urrent eonomi system drivin% t"e8estF as 8ell as 8"at leadin% minds are sayin%F it is lear to me t"at 8ere :aed 8it" a uestion very similar to t"eone ased a0out a entury a%oZ "o8 0est do 8e seure our eonomyM uns or !"ovelsM 5n my opinionF t"e %reatsaviour o: estern deadene t"is time around 8ill eit"er .e no#,er ;or+ ;rF or radialF nation7"an%in%innovation in t8o :ields t"at 5m %oin% to all s"ovels.

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    ,nternal !in/,mpa%tlo'al ar

    Ener *o"pe#$#$%ene&& &o%e& o. ;r

    D$$# FournF 1-/2#/08=ut 0e:ore 8e loo at t"e modern Xuns versus =utter modelF it :irst "as to 0e noted t"at t"is p"rase 8as ori%inallypopulariIed in a time 8"ere seurin% eonomi prosperity 8as a primary onern in nearly every nation. 9ore

    importantlyF 8"en t"ese nations did eper$en*e e*ono"$* *op&e< ner o@ #,e" *,o&e Gun&. ?"ere is nouestion t"at NaIi a%%ression spa8ned orld ar 55F "o8everF 8"at 8as "appenin% in Europe 0eame a 8orld 8ar:or a purpose as entral to t"e "eart o: t"e apitalist as 8as t"e instantaneous end o: t"e "oloaust to t"