New shocks will increase the temptation of competition (in the areas of taxes, social policies, wages, etc.) between euro-zone countries

The euro zone is suffering from an acceleration in deindustrialisation, due to the automotive sector crisis that is starting now and the slowdown in global demand for industrial products. To save their industry, euro -zone countries may be tempted to step up tax, social and wage competition. This may be the case in Germany in particular, where the loss of competitiveness is weakening industry markedly and where the CDU increasingly seems to be moving away from the idea of coordinating economic policies with other European countries.