"Things are bleak in Europe these days. European leaders are caught in a “fight or flight” response, deciding whether they should run and hide or send troops into Ukraine to fight the Menace from the East. However, the existential terror of Emmanuel Macron and his toxic-narcissist accomplices in the EU will have to wait for a dedicated article because this one will focus on the European economy.
It has puzzled many how the EU has been managing its economy since the beginning of the Ukraine war. There have been two distinct shocks inflicted upon the Eurozone economy since then. The third shock, which may be the worst, is on the way. All of them are direct results of European policies.
The first shockwas the increase in energy prices (and availability) resulting from the sanctions on Russia. This shock alone has decimated the competitiveness of European industry and many large companies in the most important part of the value-adding chain, particularly basic and advanced manufacturing, have either shut down operations or are packing their bags and leaving the EU. Thousands of small (and mostly family owned) companies, particularly in Germany, are either already bankrupt or technically bankrupt. This will have severe consequences for the “service” part of the Eurozone economies as well as state finances and the ability to maintain the European welfare state.
The second shockis the obvious and all-out regulatory and bureaucratic attack from Brussels on European companies and entire sectors of the Eurozone economies. The regulatory load inflicted on European companies has been tuned up to such a degree that many of them can barely operate any longer. Technical trickery and bizarre laws are being used to outright destroy European agriculture by bankrupting farmers and to prevent investment into new energy projects. The automobile industry, a key sector in Europe, also appears to have been scheduled for termination with Brussels reportedly planning to double the cost of owning and operating a car in the next few years. I could go on, but it’s clear that these measures are massively adding to the energy price shock from the Russia sanctions."
WHY IS THE EUROPEAN UNION DESTROYING ITS OWN ECONOMY? (sonar21.com)
