The sky is falling for a lot of the EU/Europe. They have massive social programs they can't afford and economies that aren't growing anymore. There is another Eurozone crisis approaching and there doesn't seem to be the political will or the acceptance by the people on what needs to happen to stop it.

Even small steps to delay it like in France lead to near open revolt.

In a nutshell, the sovereign debt crisis. If you don't realize there's a sovereign debt crisis (ongoing across years), or even more accurately, a wide variety of sovereign debt crises, or even more accurately, a wide variety of debt crises of both sovereign and private entities, well, your governments and some of the more government-adjacent private entities have bent a lot of resources into make sure that's the case and convincing that it's just peachy when they borrow money, if not outright a boon, without regard to how much they borrow or how much they've already borrowed. They may have convinced you that this is true, but they know better.

Whatever happens and however it resolves, there aren't a lot of options where they retain as much power as they have now for very long. (Even if the top people maintain control they're going to be cutting loose a lot of lower level elites because they'll have to because they won't be able to maintain their upkeep.) The wheel turns and we're in that phase where they're still in power, but have begun to feel their decline. Human psychology fears and feels loss much more keenly than gain and they both fear and feel a lot of loss of power underneath the veneer they maintain.

European governments anxious yet refuse switch to wartime production...

Perhaps its because people are realizing a lot of economic and financial activity is kind of useless for anything besides pumping the numbers of stocks and valuations and a larger fraction of money is going towards the already wealthy while the majority are losing out. And when financial bubbles start popping and economies fall flat on their faces there is going to be a lot of angry people.

People saying eat the rich and posting guillotines and supporting socialist redistribution ideas use to be kind of edgy and fringe, but now it is gaining popular appeal again, and it makes people with wealth or political power scared.

Several reasons. For one we've broken the climate and poisoned our habitat, this will for sure cause major problems for existing power structures. We're not sure when, just that it will, eventually. There will be massive amounts of refugees and unemployment, as well as strongly argued and broadly supported demands for accountability.

For another we've definitely decided to not put effort into international law and instead run with a might-makes-right kind of ethics in international relations. One sign that this was the case was the US repeatedly perpetrating the crime of aggression in the early 2000s, another was the ethnic cleansing of Nagorno Karabakh/Artsakh in 2023, as well as ongoing genocidal and similar campaigns in e.g. Sudan, DR Congo and likely the Caribbean and/or South America in the future. Ukraine is yet another example. Currently China is probably the last major country to heavily prioritise money and trade over atrocities and tribute.

Then there's the future of technology. Software has been treading water since the seventies while at the same time promising to deliver some utopian revolution anytime now. Sometimes it's promised to war machines, like GOFAI often was, sometimes it's promised to the general public, usually it doesn't deliver outside of making either legal conflict (i.e. commerce, political participation and the like) or illegal conflict (i.e. mafia, non-parliamentary/autonomous political participation, and the like) and the state response more efficient and intense.

Some in power expect computers to replace labour on a massive scale sometime soon, in part because that's a promise that has been made. Some also expect computerised fake persons and marketing-adjacent technologies to finally make democratic ambitions impossible to realise. It's also expected that people will have to be kept in their place for other, more mundane reasons.

Climate protests, anti-genocide protests and so on show that people are still willing to put themselves in harms way for some ethical purpose and hope for a decent future. This is very scary if you're a contemporary world leader, because there is this harsh disconnect between the stories you tell yourself and others in a similar position about what you do and how you're perceived by your constituents. Basically they think they're doing their best and that's admirable, and the rest of us think they're shit and deserve to be harshly punished.

There's also the spectre of history. Once upon a time ordinary people took a lot of power for themselves, and sometimes they just murdered their leaders. Dragged them out on a town square and chopped their heads off, or shot them or beat them with bamboo until they died. When the conditions look like it might be time for revolution and you're the one holding the levers of power you get scared. The might-makes-right-states are also scary, because those that haven't made the jump already don't have a bloc that backs them up, unlike the socialist states and the capitalist ones and the third world collective did way back when.

So, we're in a hurry to figure out how to make sure local populations cannot revolt, and next up is to figure out whether there are actually any allies or whether this is a war of all against all.

Can't imagine why they'd be anxious.

Life is a negotiation. What the populace brings to the table is they will vote harder next time or maybe a little bit of protests, but mostly just do what they're told and carry on with their jobs and pray things get better. What the government bring is fighter jets and guns and career civil servants who have had a lifetime of training how to fuck you, the might and wishes of the rich and powerful, and lording power by taxing you then redistributing it back as benefits that then feel depended upon.

If you enter the negotiating table with a sociopath and expect them not to steamroll you when you openly show you have far worse cards, then you're not thinking clearly. Insanity is thinking you can keep bringing the same things to the negotiation table and getting different results.