The closure of Michelin’s tire factory in Cholet, France, where over 1,200 workers were laid off, highlights Europe’s industrial decline despite government support, as reported by Politico.
Michelin received millions in financial aid, yet the factory could not compete with cheaper Asian rivals. This trend is affecting industries across Europe, where jobs are disappearing due to global competition, high energy prices, and regulatory challenges. French companies like Auchan and Valeo are also laying off workers, and bankruptcies hit a 15-year high. The situation has fueled political instability, with the rise of far-right parties in response to economic discontent.
While EU policies aimed at improving competitiveness may help in the long run, the immediate impact of factory closures and job losses is harsh. Critics argue that the policies of “creative destruction,” which allow uncompetitive companies to fail for the sake of innovation, only deepen social unrest.
Many workers feel betrayed by government support given to profitable companies like Michelin while they face layoffs. Economists warn that Europe needs to invest in emerging technologies, like AI, to secure future job growth. For now, discontent is growing, with calls for political action to prevent further industrial decline.
