In recent years, the European Union (EU) has been grappling with a multitude of crises that have intensified anxiety and uncertainty about its future. These crises, ranging from economic to political, have exposed the vulnerabilities of the EU’s current neoliberal system, and the leadership’s response has often been viewed as insufficient or misguided. Instead of addressing the root causes of these issues, the EU appears increasingly focused on militarization, particularly in its response to the ongoing war in Ukraine, leaving its socio-political fabric under strain.
Multiple Crises Threatening the European Union
The EU is confronting several interlinked crises that are shaking the foundations of its political and social systems. These crises are not only undermining public confidence in the Union but also providing fertile ground for far-right movements to gain traction across member states. The most prominent crises include:
- Cost-of-Living Crisis: The cost-of-living crisis has been a defining feature of the EU’s economic landscape in recent years. Rising energy costs, driven by the war in Ukraine and subsequent sanctions on Russia, have disproportionately affected lower- and middle-income households across Europe. Inflation has also surged, making everyday essentials such as food and utilities increasingly unaffordable. The resulting economic squeeze has led to widespread discontent, with protests and strikes becoming more frequent in countries like France, Germany, and Italy.
- Housing Crisis: Europe’s housing crisis has reached critical levels, especially in major urban centers. The scarcity of affordable housing has been exacerbated by speculative investment in real estate markets, particularly by private equity firms. This has driven up property prices, making it increasingly difficult for ordinary citizens to secure affordable homes. In countries like the Netherlands, Spain, and Ireland, housing shortages have become a significant social issue, fueling public frustration.
- Migration Crisis: The EU’s ongoing migration crisis continues to polarize member states. On the one hand, Europe faces an influx of migrants and refugees, particularly from war-torn and economically devastated regions such as the Middle East and Africa. On the other hand, many EU countries are witnessing the rise of far-right, anti-immigrant parties that capitalize on fears of cultural erosion and economic insecurity. The inability to forge a unified, humane, and practical approach to migration has led to a fractured EU policy that is rife with contradictions.
- Sluggish Economic Growth: Despite recovering from the economic devastation caused by the COVID-19 pandemic, the EU is struggling with sluggish economic growth. Persistent inequalities between northern and southern European countries remain, with nations like Greece and Italy continuing to face high levels of unemployment and public debt. The region’s lackluster economic performance is further compounded by the looming challenges posed by automation, digital transformation, and global competition from emerging economies.
- Political Crisis: Perhaps the most alarming development in the EU’s current landscape is the rise of far-right political movements. These movements, which are gaining ground across member states, threaten the EU’s liberal democratic values and unity. The recent electoral success of Austria’s far-right Freedom Party, which secured 30% of the vote, is a stark indication of the political fragmentation within Europe. Similar movements are in power or propping up governments in nine other EU countries, including Italy, Hungary, and Poland.
As these crises converge, the EU’s response has increasingly involved a focus on militarization and the bolstering of its defense capabilities, particularly in light of the ongoing conflict in Ukraine.
- Ukraine’s Surprise Strikes: A Turning Point in the War?
- Ukraine’s Incursion Threatens Russian Supplies to Europe
- Is Europe Ready for China’s Mediation in the Ukraine Conflict?
The Escalating Conflict in Ukraine: Military Solutions or Diplomacy?
The war between Russia and Ukraine has been one of the most consequential geopolitical events of the past decade, and it has had profound implications for the EU. Since Russia’s invasion of Ukraine in 2022, the EU has provided significant military and financial support to Kyiv, viewing the conflict as a direct threat to European security.
However, the EU’s approach to the conflict has raised concerns about its long-term implications for regional stability. European leaders have repeatedly argued that the path to peace is through escalation—providing Ukraine with increasingly sophisticated and lethal weaponry to counter Russian forces. Most recently, the European Parliament passed a non-binding resolution calling for countries supplying missiles to Ukraine to allow them to be used against Russian targets. This move, while symbolic, underscores the EU’s growing commitment to military engagement.
The outgoing EU foreign chief, Josep Borrell, has been one of the leading proponents of this escalation strategy. He has argued that Ukraine should be allowed to use long-range missiles to target Russian positions, despite warnings from Moscow that such actions could lead to a broader conflict. Russia’s response to these developments has been to lower the threshold for the use of nuclear weapons, heightening the risk of catastrophic miscalculations.
The EU’s defense policies have also seen significant shifts in recent months. Andrius Kubilius, the EU’s defense commissioner nominee, has called for the creation of a “war-weapons storehouse” to deter Moscow. This rhetoric is part of a broader trend in which European leaders are increasingly framing military spending as a necessary response to security threats.
The War Economy:
The militarization of the EU is not only about countering external threats but also about addressing internal economic weaknesses. European leaders are now promoting the idea of a “war economy,” where investments in the armament industry are seen as a means to boost economic growth and competitiveness.
This concept was prominently featured in a report by Mario Draghi, former president of the European Central Bank, titled “The Future of European Competitiveness.” Draghi argued that Europe must heavily invest in its defense sector to remain competitive on the global stage. He emphasized that “physical security threats are rising, and we must prepare,” suggesting that military spending could help revitalize Europe’s struggling economies.
However, the notion that militarization will solve the EU’s economic problems is deeply flawed. Historically, war economies have been associated with short-term economic booms followed by long-term social and economic devastation. The focus on building up Europe’s armament industry risks diverting resources away from critical social investments, such as healthcare, education, and infrastructure. Moreover, the reliance on military spending to drive economic growth is unlikely to address the structural inequalities that underlie the EU’s current economic woes.
Neoliberalism: The Root Cause of Europe’s Crises?
At the core of the EU’s many challenges is its longstanding commitment to neoliberalism. Neoliberal policies, which prioritize free-market economics, deregulation, and austerity, have been a defining feature of the EU’s governance for decades. While these policies have benefited the wealthy and corporate interests, they have done little to improve the lives of ordinary citizens.
The consequences of neoliberalism are evident across Europe. Public services are underfunded, wages have stagnated, and job security has eroded. The rise of the gig economy has left many workers in precarious employment situations, with little access to social protections. Meanwhile, corporate profits have soared, exacerbating income inequality and social fragmentation.
Neoliberalism has also played a significant role in driving migration to Europe. The EU’s extractive trade policies, particularly with developing countries in Africa and Asia, have devastated local economies, forcing people to seek better opportunities in Europe. Rather than addressing the root causes of migration, the EU’s focus has shifted toward militarized border controls and restrictive immigration policies.
Moreover, neoliberalism has contributed to the EU’s failure to address the climate crisis in a just and equitable manner. While the EU has made some progress in reducing carbon emissions, its approach to the green transition has often placed the burden on ordinary citizens through higher taxes and reduced social protections, rather than holding corporations accountable for their environmental impact.
Toward a New Political and Economic Paradigm for Europe
The EU’s current trajectory of militarization and neoliberalism is unsustainable. The focus on warmongering and building a military-industrial complex will not solve Europe’s socio-economic problems. Instead, the EU must reevaluate its political, social, climate, and economic strategies to focus on the well-being of its citizens.
A new political and economic paradigm is needed—one that prioritizes social justice, welfare, participatory democracy, and sustainable growth. The EU must move away from its neoliberal foundations and embrace a more equitable system that uplifts all its citizens. This may involve adopting a new form of socialism that prioritizes public investment in healthcare, education, housing, and social protections, while also promoting international cooperation and peace.
Critical juncture:
The European Union is at a critical juncture. The convergence of multiple crises—ranging from political fragmentation to economic hardship—demands a bold and transformative response. However, the EU’s current focus on militarization and neoliberal policies is leading it down a dangerous path. If the EU is to survive and thrive in the coming decades, it must prioritize the needs of its citizens, embrace a new political and economic model, and commit to peace and social justice.
References
- European Parliament Resolution on Ukraine
- Borrell, Josep. “EU Foreign Policy in a Changing World.” European Union External Action.
- Draghi, Mario. “The Future of European Competitiveness.” European Central Bank.
- Kubilius, Andrius. “A Defense Strategy for Europe: Deterring Russia.” European Defence Agency.
- “Migration and the EU’s Neoliberal Policies.” European Council on Foreign Relations.
- “Housing Crisis in Europe: Causes and Solutions.” The European Housing Review,
