Europe’s Suicide Pact: Debt, War Economy, And The Climate Cult

Submitted by Thomas Kolbe

The EU summit on Thursday in Brussels focused primarily on security issues. To put it bluntly: Ukraine must somehow turn its lost war against Russia into a victory, and the EU must be militarily ready for action by 2030. The fact that this would only be feasible with a functioning economy has apparently not yet dawned on the power center in Brussels. Instead, they are preparing for a major fiscal “liberation strike,” giving bureaucracy a lush boom of its own.

When German Chancellor Friedrich Merz traveled to Brussels for the EU summit, his fiery rhetoric about EU bureaucratization followed him closely. “Let me put it in very vivid terms: We need to stick a branch into the wheels of this Brussels machine so that this stops,” Merz declared in September at a conference of the SME and Economic Union — playing, for a brief moment, the role of someone who understands the concerns of the small-business community.

Empty Media Theater

Given today’s Kafkaesque bureaucratic pressures, Merz will likely resort more frequently to this kind of small-business slang in the coming months — whenever the complaints from industry grow louder and demands to end pointless regulatory harassment reach public consciousness.

But no one should expect serious reforms. The example of relabeling “citizen’s income” to “basic security” without any structural change shows that the German government’s policy amounts to a media performance, buying time to defend Brussels’ eco-socialist course at any cost.

The summit confirmed this: Some “mini-reforms” are allowed to release a bit of pressure — but the fundamental line is untouchable. By 2040, the EU must produce climate-neutral output, no matter the cost — either through radical de-growth like in Germany or via buying CO₂ indulgences from elsewhere. As long as the climate books balance, nothing else matters.

Loyal Climate Disciple

Despite the sharp rhetoric, Merz remains a loyal disciple of Brussels’ regulatory-and-climate policy. Along with 19 other European leaders, he presented a sweeping reform proposal to strengthen EU competitiveness. In a letter to EU Council President António Costa, they demanded the Commission review all rules by year-end, scrap outdated and excessive regulations, and reduce new legislation to an “absolute minimum.”

This is rhetorical shadowboxing. Tough talk about regulatory madness — followed by nothing. At best, critics are pacified with subsidies. It’s the oldest EU trick: today’s credit-financed subsidy silences dissent and shifts the price — inflation and higher taxes — into the future.

Masters of Concealing Causality

Brussels is world champion in disguising cause and effect.

In fact, the EU is already preparing a €2 trillion heavyweight budget to be launched in 2028 — with green subsidies and new war machinery, all centrally orchestrated and embedded into national bureaucracies. In Germany’s case, Brussels’ debt wave is complemented by another €50 billion per year from “special funds.” Thousands of new government jobs will be needed to distribute this credit shock.

That this will inevitably trigger major inflation and further tax hikes is something the Chancellor prefers not to mention. The public mood is already… let’s say: tense. No need to pour fuel on that fire.

War Economy = More Bureaucracy

The build-out of a European war economy — with Germany as the main engine — will further swell the state apparatus. Defense and green sectors together form a massive impoverishment program targeting the European middle class, which is being milked more bluntly than ever.

Rising carbon taxes, an EU-wide plastic levy, higher business-tax multipliers, exploding labor costs — the construction of a EU super-state and the financing of its climate ambitions is a costly pleasure.

Germany’s companies are suffocating under mountains of freshly minted EU regulation. Direct bureaucracy costs alone amount to about €70 billion annually, according to a study by the Bundesbank.

Bureaucratic Burdens Keep Growing

If Chancellor Merz now wants to cut bureaucracy and reduce the public workforce by 8% — after contracting 50,000 new state employees in just 12 months — while also reducing bureaucratic burdens by a quarter… it basically means one thing: the green-socialist ideology would need to be deeply curtailed.

But the summit made one thing clear: While awareness is slowly growing in the badly battered economies of Germany, Italy, and France, the climate path remains sacred. Net-zero stays — whether the target year says 2040 or 2045. Any concessions? Shell games designed to reshuffle burdens without altering policy fundamentals.

Privatizing State Bureaucracy

How detached this ideological steering is from economic reality becomes crystal clear in new labor-market data. In the past three years, regulation has “created” 325,000 new jobs in medium-sized companies. The press cheers this as a labor-market success.

But these positions are merely outsourced government bureaucracy — financed by companies and customers. They produce nothing, improve nothing, and respond to no market demand. They are barriers — new cost centers imposed by a metastasizing regulatory regime.

Industrial Exodus Accelerates

The fallout is obvious. A recent survey of 240 executives in energy-intensive industries like steel and chemicals shows: 31% of major companies in Germany are shifting production abroad. Another 42% are delaying investment or moving it to other European locations.

Energy prices, overregulation, and rising trade pressure from the U.S. — all accelerating Germany’s deindustrialization — and strengthened by a bureaucracy that keeps multiplying like bacteria in a petri dish.

Yet neither CEOs nor unions dare challenge the grotesque EU climate agenda. Brussels’ climate crusade increasingly resembles a sectarian conspiracy against rationality and economic logic.

The solution already exists — straight from former ECB chief Mario Draghi: more debt, another €800-billion megaprogram to “boost productivity” — meaning: more central control in Brussels. Add climate ideology plus war economy — and the recipe for the EU’s future is complete.

Climate Bureaucracy: The Last Fortress of Power

For Ursula von der Leyen and her Commission, climate politics is existential. Over the years, Brussels has built a tentacled, subsidy-fed bureaucracy that expands its power in direct proportion to regulatory intervention in the economy.

Wherever a “climate compliance officer” files reports on EU deforestation rules, Brussels is lurking close by.

“Ubi Brussels, ibi Imperium.”

Even U.S. tech giants are discovering Europe’s censorship apparatus — targeting platforms like X and Google to secure control of the public narrative and silence criticism of Brussels’ growing influence and failed transformation agenda.

An open debate about the failed green regulation project? Absolutely forbidden. The entire power architecture of the Brussels bureaucracy rests on CO₂ panic. If that panic dies, Brussels dies with it — and they know it.

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About the author: Thomas Kolbe, born in 1978 in Neuss/ Germany, is a graduate economist. For over 25 years, he has worked 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.