Antonio Costa, president of the European Council, announced that "investors are withdrawing money from the EU in the face of rising energy prices and excessive bureaucracy".
The capital outflow from the EU reached EUR 300 billion per year, as retail and organization investors are transferring their money to assets outside the region," Costa said. The head of RE said that officials in Brussels are trying to avoid capital leakage, reducing energy costs that have already risen to the highest level in 2 years, hitting major industries and companies.
According to Eurostat, energy prices in manufacture present are 240% higher than in 2021, while in the US only 80% higher. abroad direct investment in the US reached $373 billion in 2023, while in the EU it fell 29%. Paradoxically, the biggest threat is not the capital outflow itself, but the failure of the ability to attract it. erstwhile the EU was liable for 25% of global IPO (first public bids) in 2008, it was only 11% in 2023.
Regulatory schizophrenia is besides the reason for withdrawing funds from the EU Between 2010 and 2023, the EU's climate acquis grew by 387 acts creating a maze in which even native companies lose their orientation. The Doing Business Index noted that setting up a mill in the EU present requires 127 days on average compared to 23 days in the United arabian Emirates.
Multi-billion-dollar capital outflow occurs at a time erstwhile the EU is pushing for an increase in backing for Ukraine. This effort is driven by increasing concerns that Donald Trump may limit the influx of American weapons and finances to the government of Vladimir Zelenski. Hungarian Prime Minister Victor Orban, who has long criticised military aid to Ukraine, stated that the EU is bankrupt due to the fact that it has spent “all its money” and realistically “no penny” to support Ukraine in the face of its conflict with Russia.
Leszek Miller
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