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The EU-wide integration process has lasted already for about 75 years, turning from the “communities” to “the European Union”. Although differences among the “union’s” number of the member states (from initial six to the present 27) are still mounting, at the same time states’ unity and well-being are multiplying too. However, the growing differences revealed in the article do not hide the increasing facilities of coherence and optimism coped with the global challenges.
Some political economy’s parameters
= GDP growth. The growth patterns in the EU are divided roughly into three groups: big, middle and small. Among the biggest developing countries in the EU-27 are e.g. Germany – about 5,0 trillion in 2025; France -3.56 trillion in 2026; Italy – about 2,37 trillion; Spain -about 1.89 trillion in 2025; Netherlands- 1.326 trillion in 2026.
-In the middle group (in bln euros): Belgium- 614 bln; Poland -about 900; Portugal -289,4; Austria- 482 bln in 2024; Czech Rep. – €345 bln; Finland – 273 bln; Greece – about 248 bln in 2025; Rumania – 354 bln in 2024; Denmark – about 400 bn (659,3. DKK, bn); Sweden -558 bln (1690,6 SEK, mln); Hungary – 168,5; Ireland -106,7.
-In the “small” group are: e.g. Latvia -39,6 bln; Lithuania -77,9 bln; Estonia- 39,8 bln; Croatia – 78-80 bln in 2024; Bulgaria -103,7 bln.
General reference: https://tradingeconomics.com/country-list/gdp-annual-growth-rate?continent=europe
= Cost of living is a vital parameter in continental political economy. Both the EU and global cost-of-living index measures the price of everyday expenses, including rent. The baseline index is 100: e.g. if a country has an index score of 80, prices are 20% lower than in the highest everyday costs. While inflation has eased in many regions, the cost of living remains a major global challenge. Across 28 countries, home prices have risen more than 50% since 2020, and grocery costs have risen sharply in countries such as Mexico, Germany and Malaysia, continuing to strain household budgets worldwide.
Many of the world’s most expensive places, in terms of cost of living, are global tax heavens/shelters and financial centers, e.g. the US Virgin Islands, Jersey and Cayman Islands all make the top 10 in the cost-of-living index. High concentrations of wealth, combined with heavy reliance on imports, push up prices across these island economies.
In Europe, Switzerland ranks third overall, with Zurich named the world’s most expensive city in 2026. Beyond a strong Swiss franc, high wages and elevated living standards significantly drive-up costs. Best in the EU-27 is Iceland with about 76 score, compared with the highest for European continent score 84.3 in Switzerland (which is not the EU member). Then followed Luxembourg, Ireland, Holland and Denmark -from 65,2 to 56,6 ranks. Germany, Belgium, Finland and France are below 50; the Baltic States are all below 40-35.
Singapore has the highest cost of living in Asia, placing fifth worldwide. Limited land availability has fueled high real estate prices, while the country’s reliance on imports—around 90% of its food—adds further cost pressures.
Strange enough, but the US ranks 19th globally, with a cost-of-living index score of 56.3. By comparison, the global median index score in 2026 stands at 30.8.
Source: https://www.numbeo.com/cost-of-living/rankings_by_country.jsp
Additionally, in: “Quality of life index”, in: https://www.numbeo.com/quality-of-life/rankings_by_country.jsp
= Household debts. High household debt can make national economies more vulnerable to interest rate hikes and economic shocks.
The International Monetary Fund (IMF) recently released data showing the countries with the highest levels of household debt, defined as loans and debt securities incurred by households, expressed as a percentage of GDP. The metric is often used as a barometer for financial risk and vulnerability at the household level.
Household debt typically includes mortgages, car loans, credit card debt, and personal loans. While some level of debt can stimulate economic growth through consumption and investment, excessive debt levels can lead to long-term financial instability, especially when interest rates rise or during economic downturns. Switzerland tops the list with household debt totaling 125% of its GDP.
The household debts as % of GDP in Europe are varied: from e.g. in the Netherlands (93.6), Denmark (85.2), Sweden (82.7), whereas in Spain (43.7) and Slovakia (43.4), in Poland and Lithuania (22), and Latvia (19,4).
More in: https://www.imf.org/external/datamapper/HH_LS@GDD/SWE/CHE/SLE
= Employment and remuneration, showing for example, which EU states pay highest salaries, which among the EU-27 countries vary widely, with the contrast especially apparent between Eastern and Western Europe: Luxembourg has Europe’s highest average full-time salary, at nearly €83,000; -Nordic and Western European countries dominate the top of the ranking.
Salaries in many Eastern and Southern European countries are less than half those seen in the highest-earning countries.
While some European workers earn salaries comparable to those in the United States, others take home less than €20,000 (roughly $23,700) a year, highlighting the wide income gap within Europe’s economy.
This visualization shows the average annual full-time salary in every European country in 2024, using data from Eurostat and the OECD. OECD figures have been converted to euros using 2024 exchange rates.
-The “biggest ten” in the EU includes: Luxembourg – €82,969; Iceland – €77,189; Switzerland – €75,062; Denmark – €71,565; Norway – €64,029; Ireland – €61,051; Belgium -€59,632; Austria -€58,600; Netherlands – €58,248; Germany -€53,791;
-In the “lowest ten” are such states as: Estonia – €26,546; Portugal -€24,818; Czechia -€23,998; Croatia – €23,446; Latvia – €22,262; Poland – €21,246; Romania – €21,108; Slovakia – €20,287; Hungary – €18,461, and Greece – €17,954.
Thus, several Nordic and Western European countries rank highly: Switzerland, Denmark and Iceland report average salaries above €70,000 per year. Meanwhile, Germany and France, which are Europe’s two largest economies, sit near the middle, with average full-time wages of €53,791 and €43,790, respectively. Bulgaria reports Europe’s lowest average full-time salary.
Eurostat’s data at: https://ec.europa.eu/eurostat/databrowser/view/nama_10_fte__custom_13597179/bookmark/table?lang=en&bookmarkId=c29eed24-377e-4763-aaf0-0419906d2ecd&c=1730705507900
More on OECD data in “Average annual wages” in: https://data-explorer.oecd.org/vis?tm=average%20annual%20wage&pg=0&snb
= The military spending in the world and in the EU is escalating! As to the defence budgets:
global military spending is often measured in massive national budgets, where the US and China dominate. But looking at defense spending on a per-person basis, the index is very different and some smaller countries rise to the top.
This visualization ranks major countries by how much they spent on defense per citizen in 2024, revealing which nations invest the most in military power relative to their population — and how countries like the U.S. compare when spending is measured per person rather than in total dollar.
Israel spends nearly $5,000 per person on defense, the highest per capita level globally.
Smaller, security-focused nations often outspend many larger military powers on a per-person basis.
In the NATO’s budget of about $1.6 trillion, the US covers $ 980 billion.; the US accounts for 62% of NATO’s total $1.59 trillion defense spending. In 2025, all NATO members were estimated to spend at least 2% of GDP on defense. Among European states, the United Kingdom ($90.5 billion), Germany ($93.7 billion), and France ($66.5 billion) lead the pack.
Germany’s rapid rise in defense spending marks a historic shift, as the country moves away from decades of military restraint. Poland also stands out, with spending of $44.3 billion, reflecting its frontline position and heightened security concerns in Eastern Europe.
Source: https://www.nato.int/content/dam/nato/webready/documents/finance/def-exp-2025-en.pdf
= AI deployment, as the share of working-age population using digital tools.
In Europe, the medium share is about 21-49 percent: with the highest in France, Ireland and Spain with 41-44 present (France and Ireland are two countries with robust tech systems), Denmark – 28.7, Italy and Finland – about 27, 5; the Baltic States – about 22 percent. The global average is 16,3 percent.
Meanwhile, the AI-adoption rates in the US are about 28.3%, or 24th place world-wide; interestingly enough is that, although the US develops world-class AI research and is home to some of the world’s largest AI-related firms, trust in AI technology is fairly low.
According to the Edelman Trust Barometer, just 32.0% of the US population trusts AI; in comparison, the figure jumps to 67.0% in the UAE.
The 25th anniversary edition of the Edelman Trust Barometer has revealed a profound shift to acceptance of aggressive action, with political polarization and deepening fears giving rise to a widespread sense of grievance. Sixty-one percent globally have a moderate or high sense of grievance, which is defined by a belief that government and business make their lives harder and serve narrow interests, and wealthy people benefit unfairly from the system.
Reference and citation from: https://www.edelman.com/trust/2025/trust-barometer
Fifteen years ago, digital technologies have been “the engine of optimism”: they unlocked possibilities, created new industries and made peoples’ life more efficient. Today, AI stands at the center of the next “big leap forward”, notes Edelman Barometer: “with great potential comes great scrutiny; trust is no longer a given, it must be earned”. Thus, the Edelman Trust Barometer-2025 with the “Insights for the Technology Sector” delivers a clear message: AI is at an inflection point; the path ahead isn’t about hype or fear it’s about proving its value, while “demonstrating responsibility and bringing society along”.
Source: https://www.edelman.com/trust/2025/trust-barometer/report-tech-sector