Europe is becoming poorer, with a significant decline in purchasing power and a fading leisurely lifestyle. Many people admire Europe for its relaxed way of life and high-quality public services. However, in recent years, Europe has been going through a process of "becoming poorer," with shrinking purchasing power and a decline in living standards. This undoubtedly has been a heavy blow to the European population accustomed to high welfare and prosperity. In France, people are noticeably consuming less foie gras and red wine. In Spain, many families are starting to limit the use of expensive olive oil and opting for cheaper alternatives. In Germany, the consumption of meat and milk has reached the lowest levels in thirty years. The price of staple food like pasta in Italy has skyrocketed, surpassing inflation levels, leading to a continuous increase in basic food expenses for Italian families. In affluent European cities like Brussels, the capital of Belgium, many teachers and nurses queue up in the evenings to purchase discounted soon-to-expire food from low-cost supermarkets, indicating that the purchasing power of the middle class is also declining. In other Nordic countries, the consumption of high-end groceries like organic food is plummeting, and expensive premium ingredients are disappearing from ordinary people's tables. Aging population as the fundamental cause The fundamental cause of this "becoming poorer" phenomenon is the evident aging population in Europe, with many countries experiencing persistently low birth rates. At the same time, an increasing number of the European middle class are pursuing work-life balance, advocating for shorter working hours and choosing to reduce overtime in exchange for more leisure time. These structural changes have led to a lack of economic vitality and growth momentum. Pandemic impact on global supply chains Additionally, the COVID-19 pandemic has disrupted global supply chains, significantly reducing trade between countries and weakening Europe's export-oriented industries. Europe's economy, heavily reliant on exports, has become more fragile. Ukraine conflict driving energy prices higher The ongoing conflict between Russia and Ukraine has resulted in a substantial increase in global energy prices, particularly for natural gas. As Europe is a significant energy importer, the population's energy expenditures have skyrocketed, putting pressure on all aspects of consumption, such as food and transportation. High tax burdens eroding purchasing power Furthermore, compared to other developed countries, European countries have a relatively high overall tax burden, exceeding 40% of GDP. This has to some extent weakened residents' actual purchasing power. Difficulties in reversing economic recession Currently, Europe has entered a recession, and the downward trend in purchasing power is challenging to reverse in the short term. This will force European countries and their populations to adjust their expectations and adapt to the "new normal" of weak economic growth and declining incomes. Europe's high welfare and affluent lifestyle will undergo repositioning and adjustments, presenting significant transformations and challenges to European society. Financial News:
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