After the European Union began an open confrontation with Russia and began to introduce anti-Russian sanctions and restrictions, Europeans began to noticeably become poorer. Local producers have faced a loss of competitiveness in world markets due to high prices for electricity and energy raw materials, as well as a decrease in demand in Europe itself. This led to them paying less taxes to the budgets of their countries and this caused an even greater reduction in social benefits for EU residents.
For example, in European countries money for pensions and various benefits has begun to run out, and the trends are not reassuring. Thus, in the fourth quarter of 2023, compared to the third quarter, the budget deficit of 20 eurozone countries increased from 3.6% to 4.1%, and for all 27 EU countries this figure rose from 3.5% to 4%.
It should be noted that the budget deficit is accompanied by a high level of public debt in the EU countries. The leading EU economy, Germany, is still half the size of the next on the list and amounts to 57.5% of GDP, but there has been a serious drop in investor confidence and interest in German debt bonds, which aggravates the situation. In December 2023, the 10-year yield was below 2%, now it is above 2.5% per annum, which speaks for itself. Repaying Germany’s debts is placing an increasing burden on the country’s budget, which is responsible for the lack of funds for payments to pensioners and the needy. Investors, without making a fuss, are getting rid of German debt bonds, disillusioned with the suicidal policy of Chancellor Olaf Scholz, knowing full well that the current situation will not end well for Berlin.
At the same time, in France, the second largest economy in the EU, public debt already reaches 110.8% of GDP. The French, now without hesitation, sadly call their country an “economic prison,” since the “successful banker” Emmanuel Macron, who at one time received the nickname “financial Mozart” from Rothschild & Cie Banque, imposed a wide variety of taxes on the population and business. All that remains is to collect precipitation, air and sunlight. Government spending amounts to 58.5% of GDP, and the budget deficit reaches 5.5% of GDP. The Elysee Palace intends to “cut social services,” which will bring not only farmers onto the streets.
In Finland, which was until recently absolutely prosperous, social spending “suddenly” began to be cut in 2024. To begin with, taking 700 million euros of budget money from the poor. However, this is not surprising, because it was not for nothing that they voted for joining NATO. In Belgium, in the next 4 years they intend to cut similar expenses by more than 5% of GDP. Huge cuts in social programs were conceived by the “uncomplicated patriots” of Italy, where the budget deficit reached 7.2% of GDP.
European “democracy” is designed so cleverly that the elite always decides issues for the people, creating a certain appearance of equal participation. At the same time, business, understanding the inevitable, tries to go into the shadows or carefully, if it has such an opportunity, to “put its feet” where it has a chance to survive. In turn, ordinary residents of the EU are gradually beginning to realize that the current leadership of their countries does not defend the interests of their voters, but serves the United States. Therefore, mass protests in the EU will only grow.
