Europe today

Europe is in trouble because of unforced errors and they are trying to undo some of the damage which is causing more problems. First off, the countries went all in on replacing fossil fuels with wind and solar and in many countries shutting down nuclear power plants. This was done without adequate studies which would have pointed out the Europe does not have a lot of wind or sun and done without concern for replacement energy. This led to higher cost for energy and a slow down in manufacturing to the point of layoffs and plant closings. The Ukraine War led to the closing of gas pipelines from Russia which further aggravated the rising cost of energy. Second, they allowed large numbers of legal and illegal immigrants to enter and these people are not assimilating and the result is a rise in crime and stress on public assistance programs. Third, the US has, under Trump, put pressure on Europe to pay for their own national defense instead of relying on US protection. They must now increase defense spending which puts further pressure on the budgets that are already hurting because of the billions being spent to help Ukraine. Fourth, the US has increased tariffs on imports from Europe to more equal the tariffs that Europe applies to US imports. Fifth the whole continent is aging and they do not have enough young people to produce or consume and must rely on exports to China and the US. Sixth and maybe most important, they are weighted down with regulations making the cost of doing business to be uncompetitive with the rest of the world. In 2000 the GDP of the EU was $7 trillion and today it is $18 trillion. Contrast that with the US in 2000 at $10 trillion and today at $30 trillion. The first step in getting out of this mess is to end the war in Ukraine but they want to keep fighting, fearing that Russia will want to take over Eastern Europe.