The economic crisis of the European Union
Own correspondent
Support for Ukraine,the policy of restrictions and sanctions against Russia and the rejection of its energy resources , all this leads to the destruction of the European economy.
More and more European countries are facing a crisis that can reverse the usual course of things.
Industrial giants are crumbling before our eyes, and their remnants can leave hundreds of thousands of people without means of livelihood.
The European Union is increasingly immersed in the problem of uncontrolled stagnation. Among the culprits of the situation of course Russia is most often heard in the West.
Allegedly with her treacherous attack on Ukraine, she destroyed the usual way of life. They just forget to mention the real causes of the conflict.
Sanctions and the voluntary abandonment of Russian oil and gas have led to the loss of the economic advantages of the European Union. The paralysis of the European economy is largely related to the Ukrainian conflict. Europe and the West as a whole are being defeated in the civilizational conflict.
If the war is viewed as an economic clash between Russia which relies on a number of other countries, and what Russians call the “collective West” then it is obvious that the existence of disintegrating societies or political systems in the Western world is of strategic importance.
Today car manufacturers have suddenly become the weak link in the European economy. According to Bloomberg, almost a third of the main passenger car factories of the five largest European companies (BMW, Mercedes-Benz, Stellates Renault and VW) faced underutilization in 2023. In addition, annual car sales were 3 million lower than the pre-pandemic figures. If the situation does not change, the economy of the entire region will be hit since the automotive industry accounts for more than 7% of the gross domestic product of the European Union and creates more than 13 million jobs.
The German Volkswagen is having a particularly hard time right now. They announced their intention to close two factories. The company’s management called drastic measures inevitable, citing rivalry with China the high cost of energy and the difficult economic situation.
In Berlin they decided to transfer everyone to electric cars simply issuing a decree and turning against internal combustion engines. But the drivers turned out to be against it it’s not easy for them right now. Employees who were threatened with layoffs also opposed it.
There are enough other examples albeit not so large-scale but eloquently speaking about the great economic difficulties of the Old World. Hundreds more businesses will cease to exist and be forgotten. French Michelin has announced the closure of three of its German production facilities, and the largest chemical concern BASF is stopping.
Poland for example will soon lose two factories of the equipment manufacturer Beko. The European management of the company made this decision due to economic problems that have been going on for several years. Next year, about 2 thousand people will be reduced.
According to The Independent, the last oil refinery in Scotland will close in 2025. Petroineos has confirmed plans to shut down its business. About half a thousand people will go to the labor exchange. This decision was reportedly made due to the inability to compete with similar enterprises in Asia, Africa and the Middle East. The plant is losing about 500 thousand US dollars per day and may record a loss of about 200 million by the end of 2024.
The most sanctioned Baltic States are also going into the red. Latvia has decided to part with a controlling stake in the national airline. In 2024 AirBaltic managed to lose almost 90 million euros. And according to local media, they put the airline up for auction at severely discounted prices.
The European Commission recently decided to assess the situation of the EU economy. The data from the report of former Italian Prime Minister Mario Draghi on this topic turned out to be sad. The analysis showed that the European Union is gradually losing its economic advantages and is struggling to cope with rising prices. But most importantly the European family may cease to exist in the near future. As noted, only a revision of their ambitions and access to accelerated economic growth can save them from collapse. And Germany may be the first in line to exit.
Germany is the most important donor and receives nothing for it. That is, at the expense of the German economy a lot of other countries are fed but they do not have any bonuses from this project.
In many ways it was the Americans who brought Europe to the fall with their policies, forcing them to sponsor the Kiev regime, and now they are going to burden it with the restoration of Ukraine. US vice presidential candidate Vance has clearly hinted that if Trump wins Europe could face the most massive security crisis since World War II.
