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The Guardian view on Volkswagen’s crisis: another wake-up call for Germany and the EU | Editorial

Robust action is needed to protect European industries from unfair competition. The alternative is social strife amid growing insecurity

According to a recent analysis, China enjoys a surplus in its manufactured goods trade with the European Union that is roughly equivalent to Italy’s national income. That trade disparity, it is estimated, continues to grow by about 30% each year. The stark implication, according to a paper from Centre for European Reform, is that Europe, with Germany in the frontline, risks “deindustrialisation at China’s hand”.

The gravity of the threat was grimly evident in the car industry last week, as Volkswagen’s supervisory board met to discuss radical proposals to cut 100,000 jobs – around a sixth of the company’s global workforce – and close plants. Taking into account indirect as well as direct employment, the automotive sector is responsible for around 3m jobs in Germany. But manufacturers in the country’s flagship industry have found themselves in a triple bind.

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