For decades, American liberals have pointed to Western Europe as a model for enlightened, humane governance. But now that model is leading to economic ruin.
Many of the Western European nations most celebrated by progressives are sinking into economic stagnation and social decay. Years of de-industrialization, bloated welfare states, and punishing energy policies have eroded productivity, gutted middle-class stability, and left many of these countries in a prolonged state of managed decline. And it’s not just conservatives sounding the alarm—Europe’s own central bankers and economists are beginning to admit they don’t have answers.
In February, the Bank of England acknowledged it could no longer “fully account” for the country’s ongoing productivity slump. Things are so bad, in fact, that The Telegraph reported in March that Britain is “no longer a rich country” after 15 years of stagnation.
“Economic stagnation over the past decade is now threatening the U.K.’s position as a place for a high standard of living,” one economist told The Telegraph. Years of near-zero wage growth, productivity collapse, and spending cuts have left the country with neither prosperity through high wages nor security through welfare.
The solution, economists argue, must include significant tax cuts and a rollback of destructive energy regulations – a stark reversal from decades of liberal policies and a vindication of sorts for conservatives in the United States, warning about the consequences of those policies.
One major contributor to Britain’s crisis is the country’s aggressive pursuit of “net zero” energy policies. By imposing heavy taxes on traditional energy sources like oil, gas, and coal – while heavily subsidizing unreliable wind and solar – the government has imposed major costs on both businesses and everyday citizens. According to the Heritage Foundation, the impact has been “devastating” for families simply trying to heat their homes and get to work.
France faces a similarly grim trajectory. As Politico put it in January, “a crash is coming.” Years of runaway spending and deficit financing have left the country with massive debt, and the public has shown little interest in reform. When former Prime Minister Michel Barnier tried to rein in the budget, he was ousted. Today, no party holds a majority in the French National Assembly, creating gridlock that experts warn could spiral into full-blown crisis.
“It will take a budget crisis, maybe a financial crisis, for parties to sit down and say we’re going to do something,” warned Olivier Blanchard, an MIT economist and former chief economist of the International Monetary Fund.
France’s birth rate has also been falling since 2011, a trend that – while better than many of its neighbors – still reflects a continent-wide fertility collapse. It’s not just economic decay that threatens the future of Europe – it’s demographic catastrophe, too.
Germany, the supposed anchor of European prosperity, is in equally dire straits. Even as The New York Times praises the country as “a product of enlightened postwar American policy” for embedding itself in global institutions, Germany’s economy shrank in both 2023 and 2024. Its embrace of net-zero policies – again lauded as “bold” by the Western media – left it reliant on imported natural gas, especially from Russia. When Vladimir Putin invaded Ukraine, German energy prices surged, hammering its economy and forcing industry to a halt.
Worse still, Germany’s birth rate hit a 10-year low in 2024, even as the country continued to import large numbers of refugees – many of whom have failed to assimilate into German society. Social cohesion is fraying, and the economic engine of the European Union is sputtering.
Meanwhile, political elites in all three countries continue to virtue signal about Donald Trump and “threats to democracy” in the United States. According to the European Council on Foreign Relations, about half of U.K. residents said Trump’s 2024 election victory was “bad for Americans and for peace in the world.” But perhaps they ought to focus on their own mounting crises before casting stones across the Atlantic.
Not all of Europe is in freefall, however. Portugal has taken a different path – and is reaping the rewards.
Following intervention from the International Monetary Fund nearly a decade ago, Portugal made painful but necessary fiscal reforms. It reduced its debt load, embraced a more market-oriented approach, and resisted the temptation to endlessly expand its welfare state.
The results have been impressive: a booming export sector, record-breaking tourism, relatively low unemployment, and faster-declining inflation than peer nations like Germany and France. Caixa Bank projects 2.4 percent GDP growth in 2025, citing strong wage growth and encouraging signs across the economy.
Portugal’s success shows that fiscal discipline and pro-growth policies can still turn things around. The question is whether the rest of Western Europe is willing to follow its lead.
And here lies the warning for the United States. For nearly 60 years, Western Europe has been a case study in managed decline – slow, comfortable decay enabled by massive social spending, anti-growth regulation, and a cultural aversion to risk and industry. America is not immune to these same trends. De-industrialization, a ballooning federal budget, and utopian energy mandates are beginning to echo the European model.
As Americans debate their economic future, the evidence is clearer than ever that Europe is a giant flashing warning sign, not a road map. Democrats’ affinity for bigger government, reckless spending, and Green New Deal-style energy policy only accelerates this disastrous trajectory.
That’s why President Donald Trump’s reforms – focused on revitalizing American industry, cutting taxes, reining in the administrative state, and restoring energy independence – are not just important. They are essential.
AMAC Newsline contributor Matt Lamb is an associate editor for The College Fix. He previously worked for Students for Life of America, Students for Life Action, and Turning Point USA. He previously interned for Open the Books. His writing has also appeared in the Washington Examiner, The Federalist, LifeSiteNews, Human Life Review, Headline USA, and other outlets. The opinions expressed are his own. Follow him @mattlamb22 on X.
Each of the countries mentioned have been infiltrated and taken over by Islamic rule. The goal of Islam is to destroy Europe and the ‘Western’ hemisphere in 100 years. They are in about year 70. Wake up!!!
Watching the news all across western Europe each day does show the breakdown of European societies accelerating at an alarming rate, even as the so-called leaders of most of those countries continue to embrace the ruinous policies that have led to the current decline. The citizenry basically has been reduced to sheep just trying to endure the next day’s onslaught, while the EU plans the next round of “improvements” designed to make things worse.
You seriously think our decline here in America is managed? It’s a full-fledged stampede right down the toilet sponsored by the Democrat party and the deep state liberal federal district judges. You have no rights anymore unless you’re gay or transgendered.
There are many huge massive anti-immigrant protests all over Europe . So massive are they that the government of Ireland , Britain and possibly France and maybe even Germany may be toppled by the popular uprising . Last week Starmer could not be properly protected by dissatisfied Brittons who were protesting his policies , particularly , relaxed immigration , and asylem grants . Italy has also had huge massive protests . But Italians are more angry with their government . Not angry with Georia Maloni , the PM of Italy . Just the oposite , she’s rising , rapidly . Other European countries’ citizens are looking to her for leadership . The protesters are focussing on their own official political leaders and on the European Union . The EU’s popularity is declining preciptously . In Ireland , Connor McGreggor is being talked about for Prime Minister and his recent meeting with Pres. Trump has perpetuated his standing in Ireland . Irish PM Martin has lost the confidence of most Irish . I have been following these protests on line on various platforms .
I have seen absolutely NOTHING on American “news” organizations’ tv programs . The huge protests are not be covered by the European MSM in an effort to protect ‘golbalist’ leaders from the popular outrage .
America should return basic education, responsibilities and strong work ethics!
They’re fooling themselves if they think it’ll stay “managed” for long. One day, quite by surprise, the whole thing will blow up and get really nasty. Then people will be scratching their heads saying, “How did this happen?” while all along their “management” has seen to it that such a crises was inevitable.
Wake up America indeed. We don’t need to go down that road.
It has been going on for so long ,now that it is unescapable it finally is acknowledged. EU is a nightmare, central planning and socialist policies results are a disaster. Flood of “immigrants ” another one. What outcome was expected? There already was a workers paradise that did not work, USSR . I wonder if it was an attempt to build a Fourth Reich.
Rerun 1930s
Unfortunately the citizens of those countries are in for all they can get from the government and that is why they will have a very difficult time turning the ship to prosperity. The governments have to end the free givaway mentality which will be entirely opposed by the “I want the government to support me crowd” eventually someone’s gotta pay! nothing is really free. The US is leaning that in the cities trying to support all of the immigrants off the taxpayer funds, it will end when they are bankrupt which most are close to now.
Bible prophecy indicates that Germany will get a strong charismatic leader who will turn things around in Germany and Europe in general and I don’t think America will be too happy with the way he turns things around.
What saddens me most regarding the situation we are in is that we were warned back in the 1950s. The information was published in a book called “The Naked Communist,” and information from that book was published in the Congressional Record dated January 10, 1963. It hit us again in 1993 with the United Nations conference in Rio de Janeiro to introduce UN Agenda 21, and then again in September 2015 with the UN 2030 Agenda. No one has paid attention to any of this, nor has anyone done anything to stop it. The road map has all been laid out, and no one is taking it seriously. If people would just read and understand the 45 Communist Goals entered into the Congressional Record, they would never vote for a “democrat” again. These “democrats” are all communists, socialists, marxists, maoists, and other vile anti-America, freedom-hating cretins.
Agenda 21 is pushing to “bring the USA down to a level more in line with the rest of the world.” They are advocating a redistribution of our wealth, which the “democrats” have been doing for the last 12+ years. They are trying to disarm us and take away individual property rights all under the guise of “sustainability” and “the green new deal.” The UN is pushing for a world government, of which they will be the center. Their 2030 agenda is a milestone check. This is why they are pushing so hard to disarm U.S. Citizens. They believe once we are disarmed, they cannot be stopped. This is not a conspiracy theory, folks. It’s all there in black and white. All anyone needs to do is read it and understand it.
We need to throw the un out of our Country and stop funding them immediately. Why do we fund our enemies who are trying to destroy our Country and freedom?
Tariffs and inflation are taxes.
A big “Thank You” to Europe for showing us the way not to travel.
tariffs reset is just the first step to defeat glo-ball-ism
This is why the democrats created the department of education back in 1979. The elder generation knows this but unfortunately, it’s the youth and younger generation of adults that were brain washed by the liberal far left democrats-controlled education system that refuses to see this reality, and they do not care because they bought into the liberal entitlement bull. Unless we get through to this young generation of liberals, they will be the ones that will destroy America for what they believe will be their gains which they do not realize that there won’t be any. They at least won’t realize it until it happens, and they get screwed by the party they so whole heartedly supported and defended. If it does happen, they will probably still blame the Republicans.
My son is a Marine stationed in Germany and my wife and I visited Europe recently. The author criticizes Europe as being in “managed decline,” but that’s the exact sentiment of many Europeans about the U.S. They pointed to fading democratic values, decline in the rule of law, how the U.S. treats its allies, and presidential corruption. I know Europe has its own problems, but that’s what we heard about us.
what do you mean Europes “managed decline’ should serve as a warning to America? What nation do you think started the “managed decline” in Europe.
The United States at some point got too fat and lazy to compete with other nations so in lieu of that, we went into full theft mode. It is America that arranged for the de-industrialization of western Europe. The latest example is in our proxy war using Ukraine against Russia. The real result? An energy starved western Europe talked into cutting off cheap energy supplied by Russia and instead relying on LNG shipped across the Atlantic from good old America. Soon western Europe will resemble what we all laughed at in the movie Borat.
Now we are trying but losing in stealing the success China has built. I think that again we have met our match though and soon we will join our “allies” in western Europe and continue futher sliding down into irrelevance.
Se le Viz