The Structural Contradictions Created by the EU and the Euro
In the first place, the background to the turmoil faced by many EU member states, including France, lies in the structural problems of the introduction of the euro.
The euro was expected to achieve economic stability and growth by uniting countries with strong and weak economies into a single currency area. In other words, it was thought that the problems would be solved if economically strong countries like Germany and economically weak countries were operated under the same currency.
However, the reality was different.
It is not the case that poor countries can freely use German funds, and the EU strictly requires fiscal discipline. There are regulations to ensure that deficits and debt do not exceed certain levels, and member states cannot freely conduct their own fiscal and monetary policies.
For example, the EU's Stability and Growth Pact sets rules to keep government deficits within 3% of GDP and debt within 60%. As of 2025, France has significantly exceeded this, with its deficit ratio reaching nearly 6%. This has fueled market anxiety, leading to a 1.4% drop in France's CAC 40 stock index and causing a decline in the value of the euro as a whole.
This constraint is directly linked to the short tenure of French prime ministers and governments, as well as public dissatisfaction.
In other words, austerity measures implemented with little policy flexibility are hitting the lives of citizens directly, creating political chaos. The resignation of the Prime Minister in October 2025 is a typical example of how this fiscal crisis has accelerated political instability, and the debt problem of France, the EU's second-largest economy, is exposing the vulnerability of the entire eurozone.
■ The Unexpected Relationship Between EU Institutions and War
Furthermore, it can be said that this structural problem also influences the background of the war in Ukraine.
While chasing the carrot of "EU membership," EU member states have found themselves in a situation where they are drawn into war while being constrained in fiscal and military terms.
Because of a system where poor countries cannot use German funds without limit, maintaining the EU as a whole entails political and military sacrifices. In fact, while EU fiscal rules limit increases in defense spending, and flexibility was applied to 15 countries in July 2025 to allow defense investments exceeding deficit limits, exceptions for the entire investment program are not recognized, so it is highly likely that the scale of support for Ukraine will be limited.
The UK has already left the EU, and Eurosceptic parties are gaining support in France as well. Far-right parties like France's National Rally (RN) increased their vote share in the 2025 elections, and criticism of EU fiscal constraints is growing. If this continues, the integration of the EU itself may not be maintained, and support for Ukraine could reach its limit.
In other words, the essence of the increasing number of war victims lies in the structural constraints of the EU system. The rise of nationalism across Europe is collapsing support for traditional centrist parties, further threatening EU unity.
#EUCrisis
#Eurozone
#FrenchFiscalCrisis
#UkraineWar
#EUIntegration
#FiscalDiscipline
#NATO
#FrenchEconomy
#UkraineSupport
#EUSceptics
#Geopolitics
