Contrary to a widely held notion, widespread reshoring would be bad for the euro zone

It is often claimed that the euro zone would benefit from industrial reshoring. But we should not think only in terms of reshoring from the rest of the world to the euro zone; we should think symmetrically, including reshoring from the euro zone to the rest of the world. In this symmetrical context, a return to regional value chains, which generates reshoring, would be negative for the euro zone since, if there is a return to such regional value chains, productive capital will head to regions where domestic demand is expected to grow the fastest, which is certainly not the case for the euro zone .