The European Debt Race

To the bottom.

You’ll never catch us! As in U.S.

Germany’s spending push drives up borrowing costs across Eurozone – Investors warn that higher bond yields could make it harder for members of the bloc to increase defence spending.

A surge in Eurozone government borrowing costs as a result of Germany’s planned defence spending spree will intensify debt pressures on other countries in the bloc and could make it harder for them to mount borrowing campaigns of their own, investors have warned.

Let’s talk

Talking is always good. But action is better.

Until today, the EU imposed import tariffs on US cars five times higher than the tariffs imposed by the US on European imports.

That’s changed now.

German minister, autos lobby call for urgent EU-US talks over tariffs.

There’s just less and less demand these days…

To go to Brussels.

Who would want anything to do with the European Parliament industrial complex if could be avoided?

Off the rails: Night train from Berlin to Brussels will stop running at the end of March – Passengers can still travel between Berlin and Brussels on an overnight train using the European Sleeper.

European Sleeper is also a much more appropriate name, I find.

German of the day: Erbärmlich, armselig und jämmerlich

That means pathetic.

Trump cabinet members tear into ‘pathetic’ European allies for ‘free-loading’ in leaked messages – The messages have come to light in an extraordinary security breach after a journalist was added to a high-level messaging group by mistake.

Key members of Donald Trump’s cabinet have ripped into European allies, branding them “free-loading” and “pathetic” in extraordinary leaked messages.

The messages have come to light after The Atlantic‘s editor-in-chief Jeffrey Goldberg was added to a private Signal messaging group by mistake, by Trump’s national security adviser Michael Waltz.

German of the day: Goldgrube

That means bonanza.

Time to invest in the German defense industry. But you knew that already.

Germany eyes swift moves on defence, investors sniff bonanza – The prospect of a military spending boom by Germany unprecedented since the Cold War sent Europe’s defence stocks soaring after Reuters reported the likely next government was mulling a fiscal sea change for Europe’s biggest economy.

Germany’s likely next chancellor, Friedrich Merz, did not confirm that his conservatives and the Social Democrats were considering setting up special funds worth nearly a trillion euros to finance urgent defence and infrastructure spending.

German of the day: Bedrohung von innen

That means threat from within.

At Munich conference, US VP Vance warns European allies of ‘threat from within’ – Vice President JD Vance warned European allies attending the security conference in Munich, Germany, against “the threat from within,” arguing that European governments are exercising extreme censorship and have failed to adequately get a handle on “out-of-control migration.”

“The threat that I worry the most about vis a vis Europe is not Russia, it’s not China, it’s not any other external actor,” he said Friday. “What I worry about is the threat from within, the retreat of Europe from some of its most fundamental values, values shared with the United States of America.”

“What on earth is happening with European leadership?”

What a silly question.

“European leadership?” There is no such thing. It’s just that now and then little reminders like this pop up in the news. Europe doesn’t lead. Europe doesn’t produce. It redistributes. It redistributes until there is nothing less to distribute.

First France, Now Germany: What Is Going On in Europe?

Germany’s government collapse and imminent snap elections mark the latest crisis amid an ‘uneven’ state of European leadership, an expert says.

It’s just a phase-out the Germans are going through

They’ll come to their senses soon enough.

Or maybe they won’t. Hard to say for sure.

Swedish minister open to new measures to tackle energy crisis, blames German nuclear phase-out – Sweden is ready to introduce new measures to tackle the country’s soaring energy prices, Energy Minister Ebba Busch announced on Thursday (12 December), blaming Germany’s nuclear phase-out for the crisis in the country and at EU level…

One main reason Busch cited for the surge in electricity prices is Germany’s decision to dismantle its nuclear power plants, saying it also has detrimental effects for Europe.

“I’m furious with the Germans,” Busch told Swedish broadcaster SVT.

“They have made a decision for their country, which they have the right to make. But it has had very serious consequences,” she added.

Not so quiet on the Western Front

The Chip War Western Front.

EU approves German state aid for $11 billion TSMC chip plant – Taiwan’s TSMC (2330.TW), opens new tab on Tuesday launched a major new computer chip plant in Dresden, Germany, expected to be a key supplier to European industry and carmakers after the EU Commission approved 5 billion euros ($5.5 billion) worth of state aid.

The large aid award for the project, which will cost 10 billion in all, is the biggest approved so far under the EU Chips Act, and the first in Germany.

It is also the first project in Europe under TSMC, the world’s largest contract chipmaker, and is expected to improve Europe’s resiliency if a chip shortage of the type experienced during the COVID pandemic happens again.