European Leaders Double-Down On Stagnation At Davos

European Leaders Double-Down On Stagnation At Davos

Daniel Lacalle,

Many market participants appeared astonished to learn that Von Der Leyen and Scholz in Davos were steadfastly pursuing the policies that have severely damaged the EU. However, this is typical bureaucratic behaviour.

In a predictable move, EU bureaucrats have chosen to exploit the new Trump administration as an external enemy, rather than seizing the opportunity to unleash the immense potential of their economies. Bureaucrats do not care about results; they care about bureaucracy.

Ursula Von Der Leyen expressed her unwavering commitment to upholding the European Union’s climate and economic strategies when she asserted that “Europe will continue on its current path,” a stance marked by stagnation, high taxes, low competitiveness, and excessive debt. 

The Paris Agreement continues to be the best hope of all humanity,” she repeated. “Europe will stay the course and keep working with all nations that want to protect nature and stop global warming.” This statement is simply incorrect. The EU has used the Paris Climate Agreement as a tool for economic and social control, causing harm to its industrial and business infrastructure. 

In fact, the Paris Climate Agreement has achieved the opposite of its intended goals. The EU is now more dependent on imports of liquefied natural gas and coal to address supply challenges. European Union climate policies have only reduced emissions by crippling economic growth and industrial production.

We should not be surprised when we read that the European Commission will present its competitive compass plan without reducing government overspending or eliminating any of the taxation and legislation burdens that have crippled the European Union.

When governments subsidise low productivity and penalise high productivity with enormous taxes, the economy slumps.

European Union officials justify this trend, citing the rise of China and emerging economies as the reasons for the European relative decline. However, the share of global GDP for the EU has decreased from 34% in 1960 to 15% in 2024, while the U.S. has seen an increase from 28% to 25% over the same timeframe.

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