Europe is trapped in a debt spiral, with countries using debt to finance their ideological projects, such as the green transition. The debt crisis will ultimately lead to a growing state apparatus, inflation and the confiscation of private capital, with heirs, asset holders and small business owners paying the bill.
Politicians, meanwhile, are relying on delayed price effects to obscure the economic damage of their interventions.
On Friday, the federal cabinet agreed to introduce a new EV subsidy. Roughly three billion euros are set to flow into this bloodless market segment over the coming years – a drop in the bucket compared to the vast sums used to artificially keep the green patronage complex alive. But it is a signal.
The decision joins a long list of political misfires in recent months – a list unlikely to end with subsidised industrial electricity, heat pumps or refinancing packages for wind turbines. The state simply has too much money at its disposal to be forced to abandon its wasteful, destructive project.
For Bavaria’s minister-president Markus Söder, the revival of this failed subsidy instrument was cause for a small celebration. He promised a “huge boost” for the domestic market, claiming state intervention would secure value creation and jobs – a thoroughly “Söderized” view of reality.
Once again, Söder proved that his personal learning curve has flattened into a downward-sloping line – a phenomenon broadly visible across European politics....<<<Read More>>>...