The EU鈥檚 $868 billion 鈥淩eArm Europe Plan鈥� could lead to economic collapse due to debt, Hasan Alkas, a former senior economist at the EU Commission, told Anadolu.
Alkas said under current circumstances the EU is in no position to save its economy or support Ukraine.
The 鈧�800 billion ($868 billion) plan, announced by EU Commission President Ursula von der Leyen, seeks to strengthen Europe鈥檚 military capabilities by boosting defense spending, focusing on joint defense production, investing in the defense industry, and reducing dependence on non-EU suppliers.
But von der Leyen鈥檚 plan does not include a clear financial mechanism, raising concerns over how the EU will fund such a large-scale rearmament effort.
- Germany鈥檚 economy in 鈥榠ntensive care鈥�
Alkas said Europe鈥檚 economic challenges stem from over-reliance on the green transformation programs.
鈥淓specially Germany 鈥� the driving force behind the EU 鈥� has been stumbling for quite some time now, being treated as 鈥榯he sick man of Europe,鈥� and currently, it is in intensive care,鈥� he said.
Alkas also said energy policies have brought Europe鈥檚 economy to the brink of collapse, stressing that recovery is impossible with high prices and adding that the Nord Stream pipeline 鈥渘eeds to be rebuilt and natural gas should flow through these pipes.鈥�
- US-led Western bloc is falling
Alkas said deindustrialization is rampant across the EU, pointing to plans by the new center-right government in Germany to borrow 鈧�900 billion.
鈥淲hy would they want this? Because they realize their entire industry is now sinking,鈥� he said.
Alkas called Europe a 鈥渂ankrupt economy鈥� trying to salvage itself by 鈥渟upporting Ukraine and preparing for war.鈥� Alkas warned that US tariffs would only exacerbate the situation.
鈥淭he US-led Western bloc is falling 鈥� while Canada is retaliating (against US tariffs), the EU is saying it won鈥檛 step back,鈥� he said. 鈥淵esterday鈥檚 Transatlanticists have become today鈥檚 enemies.鈥�
鈥淚f Europe has an identity crisis every time there鈥檚 a change in the US government, we鈥檙e in deep trouble,鈥� he added.
- 鈥極ne last fatal blow to an already failed economy鈥�
Alkas argued that the EU鈥檚 large borrowing plan to bolster its defense industry will lead to the continent鈥檚 economic collapse.
鈥淭his much borrowing 鈥� one last fatal blow to an already failed economy,鈥� he said. 鈥淒ebt partnership always pits people and countries against one another and it never works in the long run.鈥�
He mentioned that exemptions to industrial investments can also lead to abuse.
Alkas said Europe, with its aging society of 500 million people, has a weak economy.
鈥淩efugees going to Europe live mostly on benefits,鈥� he said. 鈥淓urope can鈥檛 confront the US with such a society.鈥�
鈥淓urope鈥檚 ties to (US President Donald) Trump are being broken, prompting the bloc to become a new power under its own flag,鈥� he noted.
鈥淓urope cannot become a military power without T眉rkiye,鈥� Alkas added.
By Melike Pala and Emir Yildirim
Anadolu Agency
energy@aa.com.tr