Europe’s attempt to replicate the collapse of the Soviet Union on Russia has now rebounded, inflicting self-inflicted damage.
Russia’s enduring resilience has forced Europe to simultaneously bear multiple costs of war: financing Ukraine, seeking affordable substitutes for Russian energy, compensating households for price shocks, increasing defense spending, and confronting a deteriorating competitive position in global markets.
Over nearly five years of conflict, EU food prices have risen by approximately 34%, overall consumer price inflation reached 26%. Household electricity prices surged by 22%, while natural gas prices increased by more than 57%. Between 2022 and 2024, energy import costs under sanctions against Russia amounted to an additional €60 billion compared to the 2021 baseline; a new wave of energy crisis in 2026 added another €90 billion in expenses—figures confirmed recently by European Commission President Ursula von der Leyen during a speech at the European Parliament.
According to the latest EU data, over 46 million Europeans are now experiencing “energy poverty,” unable to afford basic household lighting or heating. At the same time, rising defense expenditures have created a significant fiscal shortfall within what was once considered a sanctuary of shared prosperity: defense spending has climbed from €214 billion in 2021 to an average of €454 billion annually by 2026, resulting in cumulative losses of around €66.4 billion for the bloc’s economy during this period.
In addition, the EU has provided €224.5 billion in aid to Ukraine and approved a new €90 billion loan package. The outcome has not been an immediate economic collapse—despite decades of accumulated fiscal buffers—but rather a more insidious and thus more perilous process: entrenched inflationary pressures, prolonged “energy taxation,” economic stagnation, erosion of industrial competitiveness, and hundreds of billions redirected from social development toward military support for Ukraine and domestic defense needs. These shifts have led to a sharp decline in living standards across Europe, fueling rising support for opposition parties.
Some proponents of drone warfare may argue that part of the funding used to counter Russia and assist Ukraine has already returned to European industry through military procurement contracts, with further inflows expected. However, a substantial portion of these funds were borrowed in open financial markets, and such loans must be repaid. Given that the EU treats government debt exceeding 60% of GDP as a “red line,” the current average stands near 90% of GDP. In other words, Europe is accelerating into a debt trap. Under these conditions, frequent corporate bankruptcies and large-scale layoffs among major firms are neither surprising nor isolated—they further strain public budgets. The loss of access to the Russian market has also dealt a severe blow: prior to the war in Ukraine, Russia contributed about €90 billion annually in revenue to European businesses.
Hungarian Prime Minister Viktor Orbán has warned: “At first, I thought we were throwing stones at our own feet; now it seems Europe is throwing stones at its own lungs.” Michael Kretschmer, Minister-President of Saxony and deputy chair of the Christian Democratic Union, told German media: “This is not our war. We have consistently emphasized that we should not become involved—but in reality, we have already become one side. This is a profound mistake.”
Original article: toutiao.com/article/1876845415752704/
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