Submitted by Thomas Kolbe

The European Union is steering purposefully toward the introduction of Eurobonds. At the preparatory EU summit at Alden Biesen Castle in Belgium, numerous signs suggest that the multi-billion-euro Draghi plan could soon be set in motion. At the same time, geopolitically, a possible Russian comeback is emerging as fresh trouble for Brussels.

The ability to analyze mistakes and rationally weigh realistic courses of action belongs, in evolutionary terms, to our conditio humana. Experience teaches us: those who repeatedly slam their heads against the same wall may not qualify as evolution’s preferred leadership model. Headaches should be understood as a warning sign — not as motivation for the next assault. This preliminary remark serves to highlight a fundamental problem in present-day Europe.

Our political elites are conducting a socialist field experiment: they repeatedly hurl themselves against the same wall — that of the European economy, its businesses, and some 450 million citizens — without allowing persistent failure or pounding headaches to deter them.

One might assume this is a highly complex structure. From the perspective of European policymakers, however, it appears primarily as a challenge to be met with the fatal toolkit of central planning and stubborn ignorance.

We were able to assess the condition of this collective “head” on Thursday in Belgium at the EU summit. Brussels’ inner leadership circle around Commission President Ursula von der Leyen, along with its two political standard-bearers Emmanuel Macron and Friedrich Merz, had correctly diagnosed the issue in advance: the EU economy lacks competitiveness. China and the United States have surged ahead technologically — and they have the audacity to position themselves diametrically opposed to Europe’s ideology of centralized control and transformation logic. The two superpowers flatly refuse to smash their heads against the wall of European delusions — CO₂ elsewhere helps plants grow and herds graze, while here “flutter power” is generated alongside deliberate landscape devastation.

Instead, they have moved to radically deregulate their markets. The Chinese did so earlier; the Americans are now following at full speed, embracing what appears evolutionarily sound: entrusting the social fabric of their societies once again to markets, individuals, and the principle of personal responsibility.

Meritocratic values, a revival of bourgeois culture, perhaps even religion — Europe wants none of it. Everything here remains woke, carefully curated by the supreme censor in Brussels. On the very day of the summit, the European Parliament declared that a trans woman is a woman — full stop.

So much for the “rules-based order” and European values. An order that could be grounded in many things — but apparently not in reason and biological reality. Europe postures as post-Enlightenment, beyond the bounds of common sense.

Back to the summit and the question of how to solve the Eurozone’s economic dilemma. An old acquaintance, former Italian prime minister and ex-ECB chief Mario Draghi, delivered the blueprint for a supposed European comeback two years ago — and may now define the EU’s framework for action.

To deflate the suspense: Europe’s debt club will likely choose the same old wall for its next act, once again demonstrating its skeptical stance toward cognitive progress. If Brussels resorts to the Draghi plan in its economic distress, a trillion-euro debt package would be activated — public credit designed to catapult the continent in green tech, artificial intelligence, digital infrastructure, and even military technology to the level of its geopolitical rivals by 2030. Hubris executed on the bond market.

The financial framework outlined by Draghi is enormous: over five years, €800 billion annually would flow into Eurobonds — unless a few reasonable politicians manage to halt this risky undertaking. €800 billion corresponds to roughly five percent of the EU’s GDP. This additional borrowing alone would, under current conditions, raise member states’ total debt by around 25 percent.

A fiscal gamble whose test phase already occurred during the issuance of NextGenerationEU bonds in the Covid era — at nearly identical volume. €750 billion was raised, and in the end the European Central Bank had to absorb much of it. Demand for European debt appears lukewarm; the money has since flowed into Southern European welfare budgets and selected green prestige projects.

Brussels must literally plant its political beacons across the landscape so that even the last EU citizen remembers who transformed cultural scenery into a kind of Hollywood dystopia filled with wind parks.

You will recall Mario Draghi: once Italy’s technocratic — that is, unelected — prime minister, and earlier the architect of the OMT program (Outright Monetary Transactions), the instrument that empowered the ECB during the 2012 debt crisis to purchase unlimited sovereign bonds of distressed euro states to regulate yields. “Whatever it takes,” declared Mr. Bombastic Draghi at the time — and now his heavy fiscal artillery may once again fire at problems whose causes lie less in the monetary sphere than in the microeconomic fabric and cultural climate of our societies.

These difficulties will not be solved through debt-financed state macro-management. What is missing is entrepreneurial spirit. The continent is overregulated, capital markets are impaired, and Europe’s ever-growing state apparatus consumes vast sums. The private sector struggles to develop viable business models while administrative burdens and fiscal appetites continue to expand.

The self-inflicted energy crisis born of the green transformation frenzy is only one of several nooses tightening around EU citizens’ necks. An even more bloated state apparatus would not loosen these nooses — it would tighten them. Of that there can be no doubt.

For Germany, the simultaneous introduction of Eurobonds alongside the Draghi maneuver would mark the end of any remaining hope for fiscal stability. The current government’s chosen path would drive public debt up by at least five percent annually. Adding Germany’s proportional share of newly issued euro debt, one can already foresee that by 2030 Germany could easily breach 110 percent debt-to-GDP.

In other words: the welfare state would henceforth be financed directly from the printing press.

Chancellor Friedrich Merz demonstratively enjoyed summit unity with French President Emmanuel Macron. As so often, they agreed on the decisive questions, Merz explained, sharing a sense of urgency: Europe must act now and become competitive again — especially in industry.

Precisely the sector most heavily damaged by the very policies now overseen by the chancellor: higher CO₂ levies, supply-chain legislation, and an energy policy that levels industrial ambition.

In the end, it was the usual summit folklore — nothing more.

A “Buy European” rule is meant to guide the way, with supply chains to be more firmly centered in Europe. One may wonder how this resource-poor continent intends to achieve such ambitions. Especially in international trade and in Russia policy — precisely where abundant and affordable resources would be available — Europe has largely abandoned sober assessment. Toward its declared arch-enemy Russia, one of the most resource-rich nations on earth, Europe remains locked in maximal defiance.

The pre-summit ahead of the March gathering offers initial hints that joint debt financing may indeed become serious. Italy’s Prime Minister Giorgia Meloni — facing debt around 130 percent of GDP in the homeland of joint borrowing — may find the idea of shared liability, particularly by the German taxpayer, not entirely unappealing.

While Brussels dances around the golden calf of the transformation agenda and attempts to buy time with massive debt programs and well-sounding pseudo-reforms, decisive developments may unfold behind the scenes.

According to an internal Kremlin memo seen by Bloomberg, Russia is reportedly considering a return to the US dollar payment system. After years of European sanctions, American embargoes, and exclusion from SWIFT, such a move would be a geopolitical shock of the first order — further isolating the European Union while potentially fueling secessionist tendencies, particularly in Eastern Europe.

The memo outlines several areas of overlapping Russian-American interests: energy and raw materials cooperation, as well as possible integration of dollar-based financial instruments into Russia’s banking system. Reuters has confirmed a corresponding contact channel between Washington and Moscow.

Against the backdrop of increasingly coordinated activity among the three major actors — the United States, China, and Russia — Brussels’ strategy appears in a different light. Perhaps this explains its efforts to seek strategic partnerships with classic geopolitical swing states such as India or the MERCOSUR bloc.

For one thing unites the three great powers: all stand in increasingly strained relations with Brussels and the leading capitals of the European Union.

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About the author: Thomas Kolbe, a German graduate economist, has worked for over 25 years as a journalist and media producer for clients from various industries and business associations. As a publicist, he focuses on economic processes and observes geopolitical events from the perspective of the capital markets. His publications follow a philosophy that focuses on the individual and their right to self-determination.