Money

European median wealth has plummeted 14 to 25 percent over five years

The Duran · UK Cuts Infrastructure Spending to Fund Nukes; Germany's Railways Collapse · July 6, 2026

The Duran

UK Cuts Infrastructure Spending to Fund Nukes; Germany's Railways Collapse

"We have studies about what's from UBS as well, about what's have happening in Europe over the last over the last 5 years. Um wealth median wealth per adult in Britain has fallen by around 23% in the Netherlands by about 25% in Germany by about 14%. Europeans are getting poorer."

Citing UBS data, Alexander reveals dramatic declines in median wealth per adult across major European economies over the past five years, with the Netherlands down 25%, Britain down 23%, and Germany down 14%. This contrasts sharply with earlier discussion of wealth increases in Russia during the same period. Alexander predicts this trend will continue as defense spending crowds out productive investment.

About this episode

In this episode, host Alex Christoforou speaks with Alexander Mercouris about European defense spending and economic decline, focusing particularly on the United Kingdom. Mercouris reveals that UK Prime Minister Keir Starmer's announced defense spending increases will primarily fund nuclear weapons development rather than conventional military forces, with the funding coming from cuts to infrastructure budgets for roads and energy systems. He explains that while total defense spending appears to increase, Britain's conventional army, navy, and air force will actually receive less funding, with nuclear investments unlikely to deliver results for two decades. The discussion exposes how defense contractors favor nuclear and sophisticated weapons projects with higher profit margins over the high-volume production of simpler weapons like drones and artillery that would be more militarily useful. Mercouris predicts that across Europe, governments will increase defense spending through borrowing while infrastructure deteriorates, but weapons production will remain inadequate due to industrial systems not designed for high-volume manufacturing. He warns of scammers obtaining defense contracts despite lacking production experience. Most significantly, Mercouris cites UBS data showing dramatic declines in median wealth per adult over five years: 25% in the Netherlands, 23% in Britain, and 14% in Germany. He predicts Europeans will continue getting poorer as defense spending crowds out productive investment, while a small elite grows wealthier. The conversation characterizes the entire arrangement as a wealth transfer scheme justified by rhetoric about threats from Russia, China, Iran, and North Korea.

Key takeaways

UK Prime Minister Starmer is funding increased defense spending by cutting infrastructure budgets for roads and energy while most new spending goes to nuclear weapons rather than conventional forces.
UBS data shows median wealth per adult has fallen 25% in the Netherlands, 23% in Britain, and 14% in Germany over the past five years.
European weapons manufacturers favor high-profit nuclear and sophisticated weapons projects over cheaper high-volume production of drones and artillery needed for actual conflict.
Western industrial systems are not structured for high-volume weapons production, with major programs like Rheinmetall's destroyer project failing despite massive spending.
Defense contractors with no production experience are obtaining contracts in what Mercouris describes as scamming, with legal constraints limiting what he can say publicly.
Germany has more fiscal space than Britain due to lower debt-to-GDP ratios but is still experiencing infrastructure decline with its railway system recently suffering a complete two-hour shutdown.
The European defense spending push will continue for at least a decade regardless of Ukraine war outcomes, justified by threats from Russia, China, Iran and North Korea while ordinary Europeans grow poorer.