The unprecedented political crisis throughout Europe, in which the two leading countries, Germany and France, are without government (France formally, Germany de facto), is a reflection of the war policy and of the self-inflicted economic disintegration, which gets aggravated by the day. The latest figures of the Purchasing Manager Index (PMI), indicating firms propensity to produce, are devastating:
The composite PMI (manufacturing and services) has dropped to 47.2 vs. 47.3 expected and 48.6 prior in November in Germany. In France, it fell from 48.1 in October to 45.9 in November, signaling the sharpest contraction in French private sector activity since January. In Italy, it dropped to 44.5 in November from 46.9 in October, and below its forecast of 45.7, showing a strong contraction. (A figure above 50 shows expansion, below 50 a contraction).
This, while workers are going on strike in response to the automakers’ decisions to shut down production and lay off personnel. Over 100,000 Volkswagen workers have joined the first warning strikes throughout Germany. In Italy, Stellantis has virtually stopped producing cars and its head Carlos Tavares, who had stuck to the failing e-car strategy, has resigned.
