• 6. 4. 2025 • H. T. •
The European Commission‘s new Savings and Investments Union aims to channel €10 trillion of EU citizens’ savings into “productive investments” like Defense Spending, Green Energy, Climate Change, Digital Transformation, …
While the initiative promises economic growth, it raises serious concerns about its potential impact on inflation, energy costs, and living standards.
💡 Inflation Risks: Injecting such a massive amount of savings into the economy could lead to significant inflation. When a large amount of money enters the economy, it can increase demand for goods and services, potentially outpacing supply. And we are dealing with global markets. We’ve seen how large-scale monetary injections during the COVID-19 pandemic caused prolonged inflation, eroding purchasing power for ordinary citizens. Could this strategy repeat history?
💡 Rising Energy Costs: A significant portion of the investments is expected to target renewable energy projects. Renewables like wind and solar are often expensive and unreliable compared to traditional energy sources. Higher energy costs could ripple through the economy, driving up prices for goods and services.
💡 Living Standards at Stake: If inflation and energy costs rise, EU citizens could face a decline in their quality of life. Higher prices and reduced competitiveness in global markets might lead to job losses and economic stagnation.
What do you think? Is this a bold step toward a better future, or a risky gamble with citizens’ hard-earned savings & risk of reigniting inflation on a global scale?
