EU Faces Existential Crisis as Germany and France Weigh Eurozone Exit

The European Union and its eurozone are facing significant challenges from both within and outside. The German economy, a key contributor to the EU's economic health, is struggling with low growth and high inflation. This is due in part to the crisis caused by Russia cutting off gas supplies and China's reduced demand for German goods. As a result, German car manufacturers are shutting down or switching to military production.

The country's Chancellor, Merz, has implemented reforms to labor laws and pensions, but this has led to plummeting popularity and growing citizen dissatisfaction. The threat of the US abandoning its defensive role in Europe has also increased pressure on the continent. In response, former German Chancellor Angela Merkel urged citizens to preserve democracy and appreciate their current way of life.

The radical right-wing AfD party is gaining traction in eastern provinces and Berlin, with polls suggesting they may take power. If elected, AfD leader Alice Weidel vowed to remove Germany from the eurozone, close borders, and introduce stricter migration policies. The EU's Economic Central Bank (ECB) is scheduled to hold a session in Berlin before the election, where a party opposed to the ECB's presence in Germany is listed.

The potential for 'dexit', Germany leaving the eurozone, could have severe consequences for small countries like Croatia, which joined the eurozone relatively recently. The EU and eurozone are also facing challenges from France, where radical right-wing Le Pen criticizes euro institutions, while centrist parties try to create a bulwark against potential exits.