The European Union is moving decisively towards the introduction of Eurobonds. At the discreet EU preparatory meeting at Alden Biesen Castle in Belgium, several signs indicate that Mario Draghi’s report for competitiveness may soon be put into effect. At the same time, geopolitically, the possibility of Russia’s return appears as a new challenge for Brussels.
The “diagnosis” of EU leaders
On Thursday, in Belgium, at the EU summit, we assessed the state of the EU leadership. The leadership circle around Ursula von der Leyen, together with political pillars Emmanuel Macron and Friedrich Merz, had correctly diagnosed the problem in advance: the European economy lacks competitiveness.
China and the United States are advancing technologically at a rapid pace — and they have the audacity to position themselves diametrically opposed to Europe’s ideology of central control and transformation logic.
The two superpowers categorically refuse to implement carbon emissions penalties. CO₂ emissions elsewhere help plants grow and herds graze. On the contrary, they have moved towards radical liberalization of their markets.
The Chinese did it earlier, the Americans are now following at full speed, adopting what seems evolutionarily correct: trusting the social fabric back in markets, individuals, and the principle of personal responsibility.
European values of meritocracy, the revival of urban culture — Europe wants none of this. It all remains “woke,” carefully selected by the supreme censor in Brussels. On the same day, the European Parliament declared that a transgender woman is a woman.
The Draghi Plan and Eurobonds
The old familiar figure, former Italian Prime Minister and former ECB chief Mario Draghi, presented a plan for a supposed European recovery two years ago — and now he may set the framework for EU action.
If the Draghi plan is implemented, a trillion-euro debt package will be activated — public credit designed to catapult Europe into green technology, artificial intelligence, digital infrastructure and even defense technology on par with its geopolitical rivals by 2030.
The fiscal framework set out by Draghi is enormous: over five years, €800 billion per year will be directed towards Eurobonds. This corresponds to around 5% of EU GDP and will increase the total debt of member states by around 25%.
The pilot phase of this venture was already carried out with NextGenerationEU bonds during the Covid period — with about the same volume. Most of it was eventually absorbed by the European Central Bank.
Demand for European debt remains modest, and the funds were channeled into Southern European welfare budgets and selected prestigious “green” projects.
The implications for Germany
For Germany, the simultaneous introduction of Eurobonds together with the Draghi plan would mean the end of any hope for fiscal stability.
Debt would increase by at least 5% per year, and with Germany’s share of the new euro debt, the country could easily exceed 110% of GDP by 2030.
Chancellor Friedrich Merz appeared united at the summit with Emmanuel Macron, agreeing on the need to make Europe competitive again — especially in industry, despite the fact that it itself has been hit by the policies Merz has overseen: increased CO₂ taxes, supply chain legislation and an energy policy that limits industrial development.
Russia and the dollar
According to information from The Liberal Globe, Russia is considering a possible return to the dollar payments system. After years of European sanctions, US embargoes and a SWIFT ban, such a move would be a geopolitical shock, further isolating the EU and strengthening potential separatist tendencies, especially in Eastern Europe.
The document describes areas of overlapping Russian-US interests: energy and raw materials cooperation, as well as the possible integration of dollar-based financial instruments into the Russian banking system. There is already a channel of communication between Washington and Moscow.
Within this context, Brussels’ strategy is seen in a different light. Perhaps this explains the EU’s efforts to seek strategic partnerships with geopolitically crucial states such as India or the MERCOSUR bloc.
