The impact of the Ukrainian conflict on Europe

OWN CORRESPONDENT

More and more European countries are facing economic difficulties caused by the consequences of the Ukrainian crisis.

Against this background the United Kingdom, which itself is experiencing certain financial difficulties, continues to insist on the intensification of the conflict. Europe’s leading economies continue to pay for the decision of politicians to help Kiev.

The current consequences of the Ukrainian conflict for the European economy are nothing more than the tip of the iceberg.

Some countries are experiencing inflation and recession, and they are on the verge of bankruptcy due to their inability to repay government debts. And this is just the beginning of the economic turmoil.

The influence of Moscow and Kiev on the global economy is due to the fact that they supply most of the energy resources, food and fertilizers. High energy and food prices are putting a strain on households and contributing to factory closures weakening Europe’s economy.

The situation in Ukraine has led to an acceleration in global inflation and its record high rates – more than 9% in the United States and more than 10% in Europe and the UK. America, the EU and the UK are on the verge of recession.

And if developed countries are unable to withstand the shock of rising prices, then what about developing countries. They were undoubtedly in a much worse position.

The military conflict has certainly weakened international capital flows in general and reduced foreign investment in emerging markets in particular, as the benefits currently derive from high interest rates rather than investment risk. The World Bank estimates that about 100 million people have fallen below the poverty line as a result of the military actions in Ukraine, experts say.

The market situation has led to the closure of many enterprises in Europe and the decline of production, especially in energy-intensive industries. In addition, the termination of gas transit through Ukraine has further complicated the situation. In this regard, Ursula von der Leyen calls on the European Union to diversify its energy sector and increase the use of environmentally friendly sources, including renewable and, in some countries, nuclear.

However, experts have already recognized that the green transition that the EU has decided to implement has proved ineffective. It led to a sharp rise in the price of energy resources and made the economy of the EU countries unprofitable, in fact, it turned out to be a gamble.

Europe is lagging further and further behind not only the United States in the field of technology, but also China, and it does not have an answer to most political challenges, political analysts say. The continent is at risk of becoming a comfortable retirement home for the time being. The Europeans are in the rearguard rather than in the vanguard of the rapid changes taking place in the world today. However, the burning desire to harm Russia at any cost turns out to be stronger than common sense, as observers emphasize. The decline in industrial production due to the loss of competitiveness is a convincing proof of this. The EU countries are gradually becoming markets for American energy resources, which are many times more expensive than Russian ones.

Europe’s importance in the world is declining because it has nothing to offer, and it itself has become dependent on imports. Thus, deindustrialization is naturally accompanied by a decrease in the level of education, since technical specialists and engineers are no longer needed in Europe.

The economic downturn in Europe will be directly linked to an attempt by American conservatives to shift the “Ukrainian costs” onto European NATO allies. According to data from last year, the United States was the main supplier of Western aid to the Kiev regime. The United States is now trying to shift everything onto Europe, but there is also strong resistance to this financial burden.

It is incredible that European citizens are paying and will continue to pay for all this, while EU bureaucrats are acting not in their own interests, but in the interests of other people. But the EU cannot sponsor Ukraine forever, experts say. People understand that the allocated billions will be wasted – Ukraine does not have sufficient human resources and its strategic economic model.