Every crisis makes European companies more demanding on production costs

Euro-zone companies' profitability worsen during every crisis and every recession. After the crisis, companies try to restore their profitability so they become "demanding" on production costs. Accordingly, they modify the organisation of production and favour production sites with low labour costs. In euro-zone countries with high production costs, deindustrialisation and offshoring therefore accelerate after recessions if production costs cannot be rapidly reduced. This is likely to happen again after the COVID crisis.