Von der Leyen admits Russia sanctions were a disaster
Von der Leyen admits Europe's energy model has collapsed. Brussels is hunting for money for Ukraine amid growing speculation about tapping savings.
English · Original discussion in Spanish · Published
Von der Leyen admits Russia sanctions broke Europe's energy model
Who is going to foot the bill for the new militarised Europe? European Commission President Ursula von der Leyen has acknowledged what many had warned about: Europe's economic model, built on cheap Russian energy, has collapsed. Companies on the continent are paying two to three times more for their energy than their competitors in the United States and China. Germany, the industrial powerhouse, is on the ropes, and half the EU is piling up deficits and growing debt.
Where will Brussels find the money for Ukraine and the army?
The question is on everyone's lips: with member states broke, who pays? War bonds with a 10% annual yield are floating around, along with fine print that makes repayment conditional on victory over Russia. If voluntary placement fails, the logical next step, according to several readings, is the forced conversion of deposits: any balance above 3,000 euros would automatically be converted into peace bonds. There is even talk of paying part of public salaries and pensions with these instruments.
Among the nastier questions circulating is one that recalls Spanish precedents: are they being advised by Fórum Filatélico or Nueva Rumasa (two notorious Spanish investment frauds)? The scepticism has grounds: post-ELbichito inflation has already devoured 40% of the purchasing power of savings. Now the job would be finished off with another euphemism. In Brussels they will come up with a grandiose name, something like "Savings System for Old Age and Sustainable Development". But there is a shorter word: expropriation.
Who is going to foot the bill for the new militarised Europe? European Commission President Ursula von der Leyen has acknowledged what many had warned about: Europe's economic model, built on cheap Russian energy, has collapsed. Companies on the continent are paying two to three times more for their energy than their competitors in the United States and China. Germany, the industrial powerhouse, is on the ropes, and half the EU is piling up deficits and growing debt.
Where will Brussels find the money for Ukraine and the army?
The question is on everyone's lips: with member states broke, who pays? War bonds with a 10% annual yield are floating around, along with fine print that makes repayment conditional on victory over Russia. If voluntary placement fails, the logical next step, according to several readings, is the forced conversion of deposits: any balance above 3,000 euros would automatically be converted into peace bonds. There is even talk of paying part of public salaries and pensions with these instruments.
Among the nastier questions circulating is one that recalls Spanish precedents: are they being advised by Fórum Filatélico or Nueva Rumasa (two notorious Spanish investment frauds)? The scepticism has grounds: post-ELbichito inflation has already devoured 40% of the purchasing power of savings. Now the job would be finished off with another euphemism. In Brussels they will come up with a grandiose name, something like "Savings System for Old Age and Sustainable Development". But there is a shorter word: expropriation.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (32 replies).
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