My dear friend Tomas, who is our international correspondent and is very familiar with the workings of Europe shared in our December 6th international daily edition an article in which Elon Musk called for the “abolition of the EU.” Other articles that we have published in recent days also emphasize growing discontent from Italy wanting their gold back from the ECB to Hungary and Czech Republic’s stance on pushing for the end of “giving money” to Ukraine among many other issues.
To me who is an American and has never been to Europe, but has read a ton of history on Europe finds these stories quite amusing. A truly unified Europe I always thought was a pipe dream, Ludwig von Mises famously said in 1927, “The champions of Pan-Europe and of the United States of Europe … do not plan on establishing a new kind of state different in its policies from the imperialistic and militaristic states that have existed up to now, but on a reconstitution of the old imperialistic and militaristic idea of the state. PanEurope is to be greater than the individual states that will comprise it; it is to be more powerful than they are and therefore more efficient militarily and better suited to oppose such great powers as … the United States of America, and Russia.” This quote published in our December 4th edition and while I had read this quote before it did not truly resonate with me in the past as I had no direct ties to Europe in anyway until I joined Liberland and now am looking through this from a different viewpoint. Mises said this almost 100 years ago and during the interwar period, I find this ironic that it took essentially the continuation of the Great War as it was known then to bring to fruition what is now known as the EU. I will be going into more detail how exactly all of this impacts Liberland below.
In the waning days of 2025, as the European Union teeters under the weight of internal fractures, rising nationalism, economic stagnation, and bureaucratic overreach, the notion of its full disintegration no longer seems like a dystopian fiction. Recent analyses paint a grim picture: centrifugal forces are eroding the bloc’s foundations, with scenarios ranging from piecemeal exits to a total unraveling of the bloc that could slash prosperity across member states by staggering proportions. For established nations, this could spell total chaos. But for the Free Republic of Liberland, the self-proclaimed microstate wedged between Croatia and Serbia, an EU implosion could be the catalyst that transforms a quixotic dream into a thriving reality. As a libertarian enclave founded on principles of minimal government, voluntary taxation, and blockchain governance, Liberland stands to gain immensely from the fallout, directly reshaping its borders, economy, diplomacy, and it’s very existence.
Liberland, remains unrecognized by any UN member state as of December 2025. Yet, under the leadership of President Jedlička and its recently reelected Prime Minister, crypto mogul Justin Sun, Liberland has built a virtual citizenry of over 1,200 citizens and over 800,000 applicants, a blockchain-based meritocracy system, and even diplomatic overtures to figures in the Trump administration. Its location is key: bordered by EU member Croatia to the west and non-EU Serbia to the east, Liberland’s fate is inextricably tied to the region’s geopolitical stability, or the lack thereof. An EU disintegration, as I define it here would be the dissolution of the Schengen Area, common market, and supranational institutions, this would ripple directly into this Balkan no-man’s-land in profound ways I think.
First and foremost, the collapse would shatter the rigid Schengen border controls that have long thwarted Liberland’s physical settlement. Croatia’s EU membership requires them to enforce strict external borders, including patrols and arrests that have repeatedly blocked Liberlanders from accessing their claimed territory, often citing EU migration rules or environmental directives. Without the EU’s overarching framework, Croatia could revert to the bilateral border management with Serbia that in place before their EU integration, potentially easing restrictions on the disputed parcel. Historical precedents like the Velvet Divorce of Czechoslovakia or even Brexit’s Irish border headaches suggest that disintegrating unions lead to fluid frontiers, where local agreements prevail over Brussels’ edicts. For Liberland, this could mean unhindered boat access via the Danube, enabling the construction of its planned eco-friendly settlements and blockchain hubs. Recent X discussions highlight entrepreneurs eyeing Liberland as an EU escape hatch, precisely because a post-EU Balkans might allow freer movement without the bloc’s surveillance-heavy Schengen Information System.
Economically, Liberland’s libertarian model with zero mandatory taxes, cryptocurrency as legal tender, and no central bank, can then position itself as a prime beneficiary of EU-induced turmoil. Studies warn that EU disintegration could trigger trade barriers, currency devaluations, and a 10-20% GDP hit for members like Croatia, fueling capital flight and entrepreneurial exodus. Liberland, already pitching itself as a DAO-friendly haven, could absorb this influx: imagine tech founders fleeing EU regulations like the Digital Markets Act or GDPR and relocating to a microstate where smart contracts replace bureaucracy. Justin Sun’s reelection and his White House ties underscore this appeal, with Liberland’s metaverse prototypes already serving as a virtual testing ground. Writings from digital nomads decry the EU’s “totalitarian” tendencies on mass surveillance and censorship, viewing Liberland as Europe’s indie founder hotspot. In a fragmented Europe, Liberland’s low-regulation zone could boom, attracting investment in crypto mining, DeFi, and even space tech, echoing Switzerland’s prosperity outside the EU bloc.
Diplomatically, the EU’s fall would level the playing field for microstates like Liberland, which has lobbied tirelessly for recognition amid Balkan EU accession stalls. With Brussels’ influence waning, Croatia and Serbia long locked in border disputes could then negotiate directly, potentially acknowledging Liberland as a neutral buffer state to resolve the Gornja Siga claim. Scenarios of EU “piecemeal adjustment” or full disintegration often predict a resurgence of national sovereignty, which could favor microstates unburdened by historical baggage. Liberland’s non-aggressive stance, emphasized in its motto “Live and Let Live,” aligns with anti-imperialist sentiments in the region, where EU expansion is increasingly seen as overreach. Liberland can be seen as an alternative for those ditching EU states, with people possibly buying property nearby to escape banking restrictions.
What I just outlined though, is what I would argue a more best case scenario, of course, risks do abound, a chaotic EU breakup could ignite Balkan nationalism, exacerbating Croatia-Serbia tensions and engulf Liberland in the middle of another 1990’s Balkan War era conflict. Economic convergence in the Western Balkans has significantly stalled under EU promises, and EU disintegration might spur protectionism or migration crises that spill over into other countries. Yet, for a microstate built on resilience, operating in the metaverse when physical access is denied, these perils pale against the opportunities. Liberland’s neutrality (via a citizenry militia) and focus on private security could mitigate threats, turning instability into a recruiting tool for liberty-seekers.
In summary, the EU’s disintegration wouldn’t just impact Liberland, it could bring about a newfound hope. As Europe fragments into a mosaic of sovereign states once again, this tiny libertarian outpost can emerge as a beacon of voluntaryism, proving that from the ashes of supranationalism rises true freedom. For those weary of Brussels’ grip, Liberland whispers: the future is micro, crypto, and unencumbered.
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I hereby give You my vote to become our EU ambassador.