Not economically, but from a systemic perspective, the BRICS countries are a challenge. When BRICS was established, there were many hopes for these countries' economic growth and a system change towards our Western system.
Out of the BRICS countries, only China delivered an extraordinary growth story, which helped Europe and the USA keep our living standards high while getting lazy as a society.
➡️ Meanwhile, Europe is taking its first steps toward a new path of state capitalism. The liberal idyll is fading away, and the West is experiencing a silent system change - away from the market and towards a state capitalism system. For example, Germany's market economy model "Soziale Marktwirtschaft," which essentially consisted of a free economic order with social stabilizers, disappears behind the clouds of covid, climate change, energy crisis, and inflation.
❗ "Whatever it takes… is over!" - Mario Draghi's claim allowed the European states to continue to get into debt. The state not only makes regulations for companies, but it is increasingly acting as a player itself, which is why the debt of European nations is going through the roof.
❗ "Inflation - the ECB fights Inflation with Cotton Balls." The monetary policies of central banks do not support the real economy but create the foundation of our inflation by pushing additional capital into the cycle by massively printing Euros. The ECB has no more gun powder left to fight inflation.
❗ "European energy and car companies are subject to "industrial policy."
When it comes to climate protection, e-mobility, and digitalization, the European Union and its member countries are taking on the role of initiator through incentive programs, legal requirements, and investments.
What if… the European politicians are wrong in their industry policy assumptions - like they failed with the "whatever it takes" Euro monetary policy?