We will address, not exclusively, one of those European countries that has been affected by this, which is France, and we will shed light on the causes of its economic deterioration over the last 5 years:
1. France has lost relationships with allied African countries that provided it with raw materials used in industries and secured energy sources for France, such as uranium. It also lost other agricultural inputs, raw materials, and minerals, not to mention African markets, some of which have been closed to French exports.
2. Logistical and military support for Ukraine with tens of billions of euros.
3. Increasing the defense budget from 1.5% to nearly 5% of the GDP, as France has earmarked 63.4 billion euros from its budget for the coming year 2027 for military spending, compared to 57 billion euros during the current year.
4. French debt exceeding 115% of the GDP, and an increase in the debt service bill.
5. The closure of various companies and factories and a reduction in production, especially car manufacturers such as Renault, Citroën, and Peugeot, due to their inability to compete, especially after the global market was flooded with Chinese cars.
6. Western countries, including France, adhering to environmental and emissions systems and laws, unlike the United States and China, which has affected French industries.
7. Britain's exit from the European Union, which affected France as it is the closest to Britain through previously concluded economic agreements.
8. Trump's policy of raising customs duties on French imports.
9. The gas bill rising by three times on average and the oil bill rising by half.
10. The failure of austerity policies previously approved by the French government.
11. Loss of investment appetite within France due to its lack of viability.
By reviewing the reasons for the deterioration of the European economy in general and the French economy in particular, it was the result of misguided European policies of supporting a futile war on its territory. Europe has lost global competitiveness in the industrial sector; Germany is also in no better condition than France, as its automotive industry has suffered from global competition and companies and factories have closed.
In conclusion, we must not forget the loss of the European role in the Middle East to ease tension, which has indirectly affected the European economy.
The European Union must reconsider its foreign policies towards the world to be more independent and effective, avoid being dragged into alliances that negatively reflect on its economy, and end any military escalation within the Old Continent, which leads to further economic exhaustion.
* Director of the Hopkins Center for Strategic Studies.
