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 In a letter to EU Council President António Costa, they demanded the Commission review all rules by year-end, scrap outdated and excessive regulations, and reduce new legislation to an “absolute minimum.”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.
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