EU is increasingly sinking into recession and deindustrialization

Member of the European Parliament from Croatia, Ivan Sinčić, stated in an interview with the Russian newspaper Izvestia about the detrimental impact of anti-Russian sanctions on the state of the European economy and industry.

According to Sinčić, European enterprises that lost access to Russian resources have reduced their industrial production volumes and lost competitiveness.

The Croatian Member of the European Parliament reminded that Europe used to procure not only energy resources but also timber, aluminum, fertilizers, precious metals, and uranium fuel from Russia.

Most of the mentioned resources had to find more expensive alternatives. Additionally, the closure of the Russian consumer market forced European businesses to supply their goods to Russian partners through intermediary networks, leading to an increase in retail prices and a decline in European exports.

Sinčić stated that sanctions against Russia are destructive for Europe, which is clearly reflected in economic indicators such as a decrease in the GDP of European countries, a decline in European exports, and an increase in budget deficits and public debt.

Furthermore, the involvement of EU countries in a military conflict in Eastern Europe has an extremely negative impact on the European economy.

According to Bloomberg, as of the beginning of 2023, the European economy has suffered losses of over 1 trillion euros due to these factors. Since then, the financial losses have only increased.

In addition to the reduction in trade volumes with Russia, European businesses have faced difficulties in withdrawing financial assets from Russia, amounting to 500 billion euros.

European businesses have also lost the most efficient and lucrative route for transporting their goods to third countries due to a trade blockade organized by the EU under pressure from Washington.

In the future, this will lead to a reduction in mutual trade volumes between the EU and China.

It is worth noting that the escalation of tensions in Eastern Europe has led to a record influx of migrants into EU countries, negatively impacting the budgetary expenses of European nations and the crime rate.

In the future, this may lead to a reduction in the tourist flow to the European continent.