Germany, long considered the engine of Europe, is now facing its third consecutive year of recession. A symbol of this downturn is Volkswagen, which has begun closing plants on German soil for the first time in its 87-year history. This marks the start of a difficult period for the country, with even darker days anticipated.

The current economic and political trajectory of Europe is under critical scrutiny, especially when considering the intersection of agricultural protests and the industrial decline in Germany. Economist Richard Werner, in his analysis, says that these protests are not just about disputes over subsidies, but represent a fundamental struggle for survival against “green” mandates and the very future of the European Union.

While big names like Volkswagen and BASF dominate the headlines, thousands of small, specialized German companies are quietly closing or going bankrupt. High energy prices in Europe are a major part of the problem, and they are much higher than those of the US and China. The transition into completely ceasing the importation of energy from Russia by 2027 is a very painful experience, and although the EU is successful in storing its gas volume over 95%, the price tag of such energy security comes at the expense of the imminent concept of “de-industrialization.”

As a consequence, a negative growth cycle is looming in Germany, a situation that Werner describes as similar to the economic crisis experienced in the 1930s. Meanwhile, the farmer protests are also on the rise. In December 2025, tens of thousands of protesting farmers once again assembled in Brussels, with the trade agreement Mercosur with countries in South America being a major flashpoint. European Farmers feel that they are compelled to live up to “Green Deal” standards, at the same time watching agreements being struck by the EU to allow the import of cheap food from countries that fail to implement the same standards. As a consequence, a “blocking minority” has emerged in the EU, with the French government firmly against the agreement, and leaders such as the Italian Giorgia Meloni struggling to reconcile the demands of the farmers with global trade.

Werner points to new policies, such as changes to the UK’s inheritance tax, which he argues effectively “disown” family farmers, making it nearly impossible for them to pass down land to the next generation.

The growing fear is that Europe is heading toward a “Renter Society,” where individuals no longer own their cars (which might become part of an EV subscription model), their houses (which could be owned by institutional landlords), or even their land (which would be controlled by large agricultural firms, with farmers as “contract workers”).

The inheritance tax changes in the UK are an example of the structural forces driving this economic shift. While the UK has its own tax laws, the European Central Bank (ECB) influences the rest of Europe through interest rates, making it nearly impossible for young farmers to buy land or for older farmers to refinance their debts. When family farms can no longer pay their taxes or debts, the land doesn’t just disappear. It is usually bought up by institutional investors or large agricultural corporations, shifting control of the food supply away from local families and into the hands of global financial entities.

This is why the protests aren’t just about money they represent a defense of the right to own private property and remain independent from state control. Werner argues that the EU, at its core, is structurally more like the Soviet Union than a Western democracy.

He suggests that the European Commission operates like a ‘Politburo’, where laws are drafted by non-elected bureaucrats. The European Parliament is like a ‘rubber stamp’ with no legislative initiative. In other words, laws are made behind locked doors where elected representatives have no say. The Commission is responsible

The promotion of Electric Vehicles (EVs) is presented as a means to restrict personal mobility. With insufficient electricity grids, the ambition to shift to electric cars mirrors the Soviet system, where only the elite had cars, and the public relied on state transport. The end goal, Werner argues, is a “United States of Europe,” where national identities (like French, German, or Italian) dissolve in favor of a centralized, undemocratic state.

Moreover, Werner, an expert in central banking, suggests that the current economic “chaos” may be a precursor to a total monetary shift. He believes the ECB intentionally fueled asset bubbles that are now being deflated, potentially leading to a banking crisis. Such a crisis could serve as the justification for introducing Central Bank Digital Currencies (CBDCs), giving the state direct control over individual spending and moving money away from private banks.

The economic situation in Europe is dire. In August of 2025 alone, German industrial production shrunk 5.2%. This is not a “soft patch” – it’s the actual contraction of Europe’s industrial base. While official institutions like the ECB and the European Commission use cautious language like “stagnation” or “subdued growth,” the actual indicators on the ground suggest a more serious, structural breakdown.

The EU continues to avoid admitting that it is in a depression. Acknowledging this would force the admission that its core policies the rapid energy transition and the break from Russia have failed to protect the working class. While gas prices have stabilized, they remain 3-4 times higher than in the US. This acts as a permanent tax on European industry, forcing companies to relocate to America or China just to remain competitive.

Despite stock markets sometimes staying afloat due to global dynamics, the “real” economy the farmers, the small shops, and factory workers is living through a depression-era reality. Rising costs and shrinking opportunities are now the norm.

The term “depression” may be historically heavy, but the data increasingly supports the conclusion that Europe is facing a crisis far deeper than a typical economic dip.

ECB “Final Move” is Digital Euro of  as many analysts believe the rush to implement the Digital Euro in 2025/2026 is actually a response to this looming depression. In a true depression, states often have to ration resources. A digital currency allows the government to precisely control who spends what and where, preventing bank runs and controlling inflation by “locking” certain funds.

With EU debt reaching record levels and interest rates remaining high despite the recession the state needs a way to ensure people keep their money within the system. The Digital Euro could be the “closed loop” the government uses to achieve this.

This shift toward a digital currency could be the “final move” or EU will face the collapse and dissolution.