Financial Repression Is Back As Euro Debasement Continues

In June 2024 , the European Central Bank began lowering its key interest rate.

Borrowing costs were reduced from 4.5 per cent to 2.5% in March 2025 .

Polleit: Interventionist-socialist policies in many European countries, particularly in Germany , are suffocating the forces of economic growth.

The ECB will most likely fix euro capital market interest rates at around 3 percent , so that the real interest rate will be negative, debasing the purchasing power of the euro, the real value of government debt, destroying peoples’ savings.

In other words, the ECB will return to financial repression, gradually sucking savers dry, empowering the state.