They are right now, but if Japan can do it, and China can do it so can Europe and by the way, so can Australia, New Zealand and Canada they have the abilities they just have to have the will and if they haven’t learned anything recently, they better develop the will. Once again congratulations.

They are more expensive but the figures I have seen are 3x for Ariane 5 and 2x for Ariane 6 (source : https://spacenexus.us/guide/space-launch-cost-comparison).

Then, it depends on what you need to do. A 3x cost if you deploy a strategic constellation is fine. A 3x cost if you want to launch huge payloads for a Mars trip (I know costs were for LEO, just giving an example) is probably uncompetitive.

No, counterintuitively Ariane is non-EU. It launches from South America

Cost decreases with scale. Spacex was also wildly expensive, it grew up thanks to government assistance