European heavy industry, including autos, is heretofore hopelessly uncompetitive due to huge energy costs resulting from its sanctions war. Volkswagen for example is revamping its flagship ID3 EV and the new version is priced almost 10,000 euros higher. BMW is moving production of the EV version of the Mini - practically Britain's national symbol - to China, where cheap Russian pipeline gas that used to go to Europe will soon be available. The US is of course the prime instigator of the sanctions, but the US has its own vastly cheaper pipeline gas and is much less affected. That's a much bigger advantage than IRA subsidies. Meanwhile ASML is already losing billions in sales because of US pressure not to sell high-end chip-making equipment to China, but the US wants even more restrictions. Cutting China off from Western chips might delay its tech development temporarily, but it will forever cede to China one of Europe's few remaining viable export industries. At the same time, Europe's other major export, financial services, is being undermined by its rampant use as a geopolitical weapon, again mostly at the behest of the US. The WSJ's proposed grand bargain is just one more step in Europe's transition into an economic backwater.