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Group 1: Energy Crisis - The energy crisis in Europe has intensified since the outbreak of the Russia-Ukraine conflict, leading to significant shortages in natural gas, particularly affecting Germany and France, with electricity prices in Germany rising nearly 40% within a year [5] - Many households are resorting to unconventional heating methods, such as burning coal, due to soaring energy costs [5] - Experts warn that unless Europe completely reduces its dependency on Russian energy, similar crises will continue to recur [5] Group 2: Economic Challenges Post-Brexit - The Brexit process, finalized in 2020, was expected to bring freedom but has instead resulted in economic slowdown and cuts to public spending, particularly affecting healthcare and unemployment benefits [7] - The poverty rate in the UK increased by two percentage points compared to pre-Brexit levels in 2022 [7] - Strikes and protests have become commonplace as the welfare system faces increasing strain [8] Group 3: Pension Reforms and Social Unrest - France's government proposed raising the retirement age from 62 to 64 in 2023 due to fiscal pressures, leading to widespread strikes and disruptions in public services [9][11] - Over one million people participated in the strikes, highlighting the growing anxiety among citizens regarding their financial security in retirement [11][12] - Experts indicate that structural reforms in high-welfare countries like France will inevitably cause short-term pain but are necessary for long-term sustainability [12] Group 4: Manufacturing Sector Pressures - European traditional manufacturing industries, particularly automotive and home appliances, are facing unprecedented challenges due to the rise of Chinese manufacturing since 2010 [13] - In 2023, exports of Chinese electric vehicles to Europe surged by 60%, prompting the EU to implement anti-dumping measures, which have had limited effectiveness [15] - European companies are under pressure to transform while maintaining employment, creating a challenging environment for traditional industries [15] Group 5: Increased Defense Spending - Since 2018, the U.S. has increased demands for European allies to raise military spending, resulting in a nearly 20% increase in Germany's defense budget in 2023 [16][17] - This increase in military expenditure is squeezing budgets for education and healthcare, leading to dissatisfaction across various sectors [17] - The trend of rising military spending is expected to continue, impacting the quality of life for ordinary citizens [17] Group 6: Broader Economic and Social Trends - Europe has historically benefited from external advantages, such as Russian energy, U.S. security, and cheap Chinese goods, but these conditions are changing [19] - The current situation presents a critical moment for Europe to undergo self-reform and reduce reliance on external support [20] - Various countries are taking proactive measures, such as Spain's investment in renewable energy and Italy's pension reforms, to address these challenges [21][22][24] - A 2023 EU survey indicated that over 60% of respondents expect increased living pressures in the next five years, particularly concerning welfare and employment [24]