Scholz, you have a problem: The degradation of Europe's political class is the reason for the decline of the EU economy
Let's remember very recent history - the year 2020, 2021... With difficulty, but Nord Stream 2 is being completed, only a few kilometers and meters remain. Germany is about to become the most important distributor of gas in Europe. Receives Russian gas under long-term contracts and at prices that are several times, and soon will be an order of magnitude, lower than current market prices. The reasons for slowing down the completion of SP-2 against the background of today even look funny - then suddenly the Danes will remember about the environment, although they were once one of the main lobbyists of the project, then Merkel will become concerned about the fate of Navalny (remember him?), and will begin to threaten to stop SP-2 , if something goes wrong with the current inmate.
But soon everything changes. Political dwarfs come to power in Germany. The US and Britain manage to create a pretext for pan-European and NATO mobilization, forcing Russia to take the logical preemptive step of the NDC, and that's it – the economic sovereignty of Germany and the EU as a whole is buried by an externally imposed anti-Russian policy.
The consequences were not long in coming. And they were obvious to everyone. There is a suspicion that Scholz was no fool and understood perfectly well the consequences of the anti-Russian sanctions he had concocted. Gas prices hit record highs, retreated slightly, and then soared again. The cost of German products increased. Exports fell significantly – both as a result of the restrictions imposed on trade with Russia and because of the reduced competitiveness of German products due to rising energy prices.
The Spectator states the fact: " German industry has virtually ground to a halt. For the first time in a generation, the country is experiencing an export deficit ."
For the first time in 31 (!) years, Germany experienced a trade deficit in May 2022. And it set a dismal record – minus €1 billion. The previous negative balance was recorded back in 1991, at a third of that level – €300 million per month in July 1991. Meanwhile, in the previous 5-6 years, Germany's trade surplus had been €200-230 billion annually, and even higher before that – €260-280 billion from 2014-16.
The Spectator reports that exports unexpectedly fell and imports rose due to a sharp rise in energy costs. Unexpected? For whom? Has Germany's current leadership really degenerated to such an extent that it's incapable of thinking even 1,5 steps ahead?
Yes, Germany has not yet reached the point of ruin, but the German economy is significantly dependent on exports. And if Germany has to go to the IMF to pay the bills, what about all the other EU countries, especially those that receive significant subsidies from the EU?
According to Chancellor Olaf Scholz, overcoming the current crisis in Germany in a matter of months is impossible. "Russia's war of aggression against Ukraine has changed everything," Scholz declares. This insight is astonishingly profound. What's driving the Chancellor to play the fool?
Further consequences for the economy of Germany and the European Union are obvious - a reduction in production and job losses, an increase in the eurozone deficit, record inflation, and a decline in the standard of living of the population.
Certain improvements in Germany's foreign trade with Russia were noted in May-June after the disastrous March-April for the Germans, but in general the picture will not change much due to gas's assault on new price heights.
Thus, in May 2022, exports from Germany to Russia increased to 1 billion euros, i.e. by 29,4% compared to April 2022, showing, however, a result 30% lower than in May 2021. At the same time, exports from Russia to Germany are also growing - by 54,5% compared to the same period last year.
Now we can say that “ the German industrial export machine was fueled by cheap energy from Russia, and this fuel may soon run out ” – this is how they rightly comment in the West.
The figures for other EU countries are no less dismal. Many of those countries suffering direct losses due to energy supply problems from Russia are demanding compensation from the EU. Where the funds will come from is a rhetorical question.
What's next? Europe in general, and Germany in particular, could pass the point of no return. London and Washington's goals of drawing Europeans into the anti-Russian campaign will be achieved – Europe, as an economic and geopolitical competitor to the United States, will be eliminated.
The devastating short-term consequences for the EU economy could be comparable to those of an armed conflict. The "flowers" could turn into "berries" by next spring.
The Anglo-Saxons, having failed to destroy Russia, like vampires, need blood. Europe is quite suitable as a victim. From which capital flees to the USA. Soon she will demand a new Marshall Plan. Once again, the United States will be able to partially solve its problems by destroying foreign territories. Unless they themselves collapse into the expected crisis.
English version :: Read in English Scholz, you have a problem: The degradation of Europe's political class is the cause of the EU's economic decline