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Security + Geopolitics 19

Trump Needs China’s Help to Effectively Sanction Iran

The United States has announced sweeping new economic sanctions against Iran, with President Trump warning of "crushing" consequences. Treasury Secretary Scott Bessent has specifically urged China to reduce business ties with Iran, which currently purchases over 80 percent of Iran's shipped oil. China has rejected these demands, advocating instead for diplomatic resolution. Iranian leadership has threatened "crushing, punishing, and devastating responses" to any new U.S. threats. In Zambia, opposition leader Brian Mundubile faces police questioning following disputed election results, while a former cabinet member was killed during a raid on his residence. Rights groups have called for an independent investigation. In Pakistan, imprisoned former Prime Minister Imran Khan was briefly taken to a hospital for medical examination but returned to prison after being declared fit, prompting his party to challenge the government's violation of a Supreme Court order requiring examination at a private facility. Meanwhile, U.S. and South Korean military drills concluded six days early after Trump ordered scaled-back American involvement, citing his relationship with North Korean leader Kim Jong Un.

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Why We Are Living Through ‘Hyperpolitics’

Political scientist Anton Jager describes "hyperpolitics" as a paradoxical phenomenon in which citizens demonstrate increased political activity—higher voter turnout and protest participation—yet fail to achieve structural policy changes. Simultaneously, membership in political parties, unions, and civil society organizations continues declining. This combination of high politicization with low institutionalization represents a new development in Western political culture, emerging after the 2008 financial crisis. Jager argues the right has been more successful exploiting hyperpolitics than the left, partly due to greater access to private funding and because reversing entrenched power structures proves more difficult for progressive movements. While primarily focused on the West, Jager acknowledges hyperpolitical trends appear globally, though countries like China and India, with strong mass parties like the CCP and BJP, represent exceptions. Without institutional channels translating political engagement into policy results, he warns citizens may increasingly turn to political violence as their last viable avenue for change.

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What in the World?

This article presents a weekly news quiz covering global political developments. Key stories include President Trump's criticism of U.S.-South Korea military drills and his complimentary remarks about North Korean leader Kim Jong Un. The United States and Iran failed to meet a deadline for nuclear negotiations. The United Kingdom reaffirmed support for Ukraine after Russian threats over military aid provision. Pakistan's Supreme Court ordered former Prime Minister Imran Khan's transfer to a higher-security prison amid health concerns. Chinese President Xi Jinping met with Latin American leaders, emphasizing regional autonomy. Zambia's re-elected President Hichilema faces UN scrutiny over press freedom concerns. The Trump administration announced $206 million in humanitarian aid for Gaza. Chinese courts sentenced Evergrande founder Hui Ka Yan to life imprisonment for financial fraud related to the company's $300 billion debt collapse. Lithuania hosted its annual corgi race with international participation. Singer Shakira pledged to rebuild schools and a university in Colombia damaged by earthquake.

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Why Do Young Africans Love Donald Trump?

While Trump's approval ratings decline globally, the African Youth Survey reveals strong support among young Africans, with approximately 60 percent believing his leadership could benefit the continent. This represents a significant shift from 2024, when only 23 percent supported him over Biden. Young Africans are attracted to Trump's assertive foreign policy, business acumen, and traditional values, particularly appealing to culturally conservative youth and aspiring entrepreneurs. Support also reflects protest against domestic leaders and hope that Trump's transactional approach to aid withdrawal could encourage African self-reliance and government accountability. However, skepticism persists regarding U.S. intentions toward African resources. Importantly, young Africans maintain strong commitment to democratic institutions and term limits domestically while viewing Trump favorably internationally. Despite Trump's appeal, China remains Africa's strongest ally, with young Africans preferring multipolar global engagement and advocating for greater African representation in international institutions like the UN Security Council.

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Trump’s Twin Blunders

In 2011, the Obama administration announced a "pivot to Asia" to reduce costly Middle East commitments and counter China's rise. However, the strategy never fully materialized as the Middle East remained a priority across administrations. During Trump's first term, this pivot deteriorated further through public doubts about defending Taiwan, coercive trade negotiations with allies, and minimal alliance-building efforts. Recently, Trump's actions have simultaneously damaged U.S. credibility in both regions. He abruptly halved joint U.S.-South Korean military drills without warning, citing resentment over Seoul's refusal to support operations in the Persian Gulf. Meanwhile, the USS George Washington was redeployed from East Asia to the Middle East due to mismanagement of the Iran conflict, which forced the USS Abraham Lincoln into its longest deployment without port access, straining crew morale. Additionally, a U.S. destroyer suffered a power failure in the strategically critical South China Sea. Years of Middle East wars have depleted advanced U.S. weapons stocks and exposed the vulnerability of American bases to Iranian attacks, causing regional allies to question U.S. defense guarantees. The result is managed calamity in both regions simultaneously.

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The U.S. Is Learning the Wrong Lessons in Iran

While security analysts have identified tactical shortcomings in the U.S. military operation against Iran—including insufficient munitions, inadequate drone countermeasures, and poor preparation for supply disruptions—these logistical failures are not the fundamental cause of American strategic failure in the Strait of Hormuz. The Trump administration failed to achieve its core objectives of regime change, destroying Iran's long-range strike capabilities, and altering Iranian nuclear and regional proxy policies. The article argues that achieving regime change through airpower alone is historically impossible, as demonstrated by failed bombing campaigns from World War II through Vietnam to recent Middle Eastern conflicts. Similarly, neutralizing mobile missile and drone systems from the air has never succeeded without ground operations. The ultimate responsibility for this military debacle lies not with Pentagon planners but with political leadership—specifically President Trump for demanding impossible tasks and Defense Secretary Pete Hegseth for failing to push back against flawed strategy. The article ultimately places blame on American voters for electing an incompetent leader incapable of accepting expert counsel, demonstrating that military excellence cannot compensate for poor political decision-making.

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Southeast Asia Isn’t Buying Elbridge Colby’s Flexible Realism

U.S. Undersecretary of Defense Elbridge Colby recently toured Southeast Asia to reassure allies of continued American commitment to the region. However, his messaging contradicts the Trump administration's actual policies, fueling concerns about U.S. withdrawal. While Colby emphasized America's commitment and characterized alliances as based on "mutual respect," simultaneous actions tell a different story. The administration redirected an aircraft carrier from the Pacific to the Middle East, reduced military exercises with South Korea, and pressured Indonesia for military access while claiming to respect its sovereignty. The Trump administration's transactional approach echoes problematic Cold War and colonial-era tactics, prioritizing concessions over genuine partnership. Officials defend these policies as "pragmatic" and "realistic," but this rhetoric masks protectionist assumptions rooted in 19th-century economics. Increased tariffs and burden-sharing demands undermine the economic interdependence and trust that historically prevented conflict. Regional leaders perceive an unreliable, distracted United States, a perception Washington has earned through inconsistency between stated strategy and demonstrated actions.

Learn
Notes

What Odysseus Can Teach Us About Liberalism

Christopher Nolan's "The Odyssey" succeeds as a summer blockbuster while raising profound moral questions. Rather than dismissing criticism about casting a Black actress as Helen as mere "woke" commentary, Ezra Klein argues the film operates on a deeper level. Nolan replaces ancient morality—which celebrated conquest and victory—with nuanced values reflecting modern sensibilities. Unlike Homer's Odysseus, celebrated for cunning deceit, Nolan's protagonist is haunted by war's devastation and his own deception. This shift reflects Christianity's gradual replacement of pagan ethics centered on domination with emphasis on universal human dignity and compassion. Today, populist movements romanticize pre-Christian values prioritizing strength and winning over empathy. However, Western civilization's greatest achievement has been expanding human rights and dignity to previously marginalized groups. While Nietzsche worried egalitarianism diminishes ambition, the West demonstrated that greatness and goodness need not conflict. Nineteenth and twentieth-century liberal democracies were simultaneously moral and ambitious, building infrastructure, defeating fascism, and landing on the moon. Rather than retreating to Homer, the West should recover this older liberal tradition, particularly when developing artificial intelligence.

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Europe + Lithuania 6

How Greek farmers milked EU funds from imaginary cows

A POLITICO analysis of Greek government data reveals significant discrepancies between EU subsidy claims and actual livestock numbers. In 2024, Greek farmers claimed subsidies for approximately 260,000 lactating cows, which should have resulted in a national herd increase of roughly 70,000 animals when accounting for births and slaughter. However, official statistics show the herd actually shrank from 640,000 in 2023 to 520,000 in 2025. Similar discrepancies appear in sheep and goat records, with registrations vastly exceeding official population counts. Agriculture ministry officials attribute the problem to reliance on unreliable municipal data and lack of a secure livestock registry. The findings threaten to expand an ongoing farm-subsidy scandal already under investigation by the European Public Prosecutor's Office, which has indicted 22 defendants including four lawmakers. Greece is implementing new controls, including electronic identification systems for livestock, and submitted an action plan to EU authorities addressing fraud prevention measures.

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First map of Lithuanian businesses in the UK launched, companies urged to sign up

Hundreds of Lithuanian-linked businesses operate across the United Kingdom, yet their collective presence has never been comprehensively documented. The Lithuanian Chamber of Commerce and Industry in the UK is now creating the first map of these businesses, encompassing companies founded by Lithuanians, those with Lithuanian capital, and Lithuania-linked enterprises. The initiative aims to visualize the geographic distribution, sectors, and scale of the Lithuanian business community throughout all UK regions. Beyond serving as an informational resource, the map will function as a practical tool enabling businesses to identify potential partners, strengthen connections, and collaborate more effectively. All UK-based Lithuanian businesses are invited to register. LCCUK president Laura Budrienė emphasizes that while the business environment shifted post-Brexit, thousands of Lithuanian companies continue operating successfully in the UK. The map will provide the first comprehensive assessment, identifying concentration areas, high-performing sectors, and untapped opportunities. The UK represents one of Lithuania's most significant trading partners, with Lithuanian exports to the UK reaching nearly €1.6 billion in 2025.

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Lithuania to seek full CERN membership, PM says

Lithuania's Prime Minister Mindaugas Sinkevičius announced the country will formally apply for full membership at CERN, the European Organization for Nuclear Research. Currently holding associate membership since 2018, Lithuania seeks to upgrade its status to remove existing restrictions and gain greater influence in European innovation policy. Full membership would enable stronger participation in CERN's research initiatives and enhance Lithuania's competitiveness in high-value sectors. The government stated the formal application will be submitted shortly. Lithuanian scientists, students, and companies have already benefited from associate membership through participation in CERN's work and contract opportunities. President Gitanas Nausėda has emphasized Lithuania's interest in deepening cooperation with CERN, particularly in artificial intelligence, advanced detector systems, and quantum technologies. CERN currently comprises 25 member states and associate partners conducting physics research with significant applications across industry, medicine, and information technology globally.

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Lithuania should not invest in airBaltic until airline turns profitable – president

Lithuania should not invest in Latvia's airBaltic airline until it achieves profitability, according to President Gitanas Nausėda. He emphasized the company must make radical cost reductions and demonstrate viable recovery plans before Lithuania considers acquiring shares. All financial risks must be thoroughly evaluated first. While Lithuania remains interested in airBaltic's survival—partly due to its EU Council presidency in the first half of 2025, which will require extensive travel to other EU capitals—caution is warranted. Lithuanian officials are divided on the issue. Prime Minister Mindaugas Sinkevičius said Lithuania would consider a stake if offered, pending assessment of national interests. Transport Minister Jūras Taminksas opposed the move, calling it an "emotional action." Meanwhile, Latvia's parliament approved state support measures for airBaltic, including €30 million in interim financing bonds and €50 million in bond capitalization. Latvian Prime Minister Andris Kulbergs described this as the airline's final opportunity to stabilize.

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Lithuania's leaders resist calls for broader Church inquiry

Lithuania's government officials have resisted calls for a comprehensive independent investigation into sexual abuse within the Catholic Church, though they cited different reasons. Prime Minister Mindaugas Sinkevičius argued that such decisions belong to Church leaders, not politicians, citing the separation of state and Church governance. Parliamentary Speaker Juozas Olekas suggested waiting for ongoing court proceedings to conclude before considering additional investigations, while advocating for independent experts in any internal Church inquiries. Archbishop Gintaras Grušas agreed that a broad inquiry is premature, prioritizing victim protection instead. The debate intensifies amid two significant criminal cases: priest Tadas Švedavičius faces charges of sexual offences against eleven minors across 34 episodes spanning 23 years, while priest Ryšardas Pečiūnas is charged with possessing child pornography. These cases have also sparked broader discussion about Lithuania's lack of a sex offender registry.

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Lithuania rules out fuel VAT cut despite rising oil prices

Lithuania's government has ruled out cutting value-added tax on fuel despite rising oil prices, positioning itself differently from neighboring Poland, which temporarily reduced VAT on some fuels from 23% to 8%, potentially lowering pump prices by up to €0.23 per litre at an estimated cost of €115 million to the state budget. Prime Minister Mindaugas Sinkevičius cited the significant disparity in economic size, noting Poland's economy is nearly 11 times larger, affording greater fiscal flexibility. Instead, Lithuania plans to rely on excise duty reductions as its primary response mechanism. The government previously indicated willingness to consider such measures if diesel prices exceeded €2.20 per litre. In mid-April, following Middle East conflict escalation, Lithuania cut diesel excise duty by six cents per litre for two months. Sinkevičius indicated that similar excise-based interventions remain available should regional tensions and petroleum prices increase substantially.

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Markets + Economy 5

Who Reaps the Benefits of India’s Growth?

India has emerged as the world's fifth-largest economy with a 7 percent annual growth rate, yet endured decades of economic stagnation under policies established by founder Jawaharlal Nehru that over-regulated industry and limited global integration. A fiscal crisis in 1991 forced market-friendly reforms that catalyzed steady growth and poverty reduction, though inequality deepened. A new book by Devesh Kapur and Arvind Subramanian, "A Sixth of Humanity," challenges conventional interpretations of India's development trajectory. The authors argue India incompletely implemented import-substitution industrialization, instead creating an inefficient public sector while stifling private enterprise. Early democratization enabled populist policies that prioritized powerful interest groups over broader fiscal health. Weak taxation systems, infrastructure neglect, and skewed educational investment—favoring higher education over primary schooling—hindered both growth and equity. Contemporary challenges include jobless economic expansion and youth unemployment, exemplified by recent protest movements demanding education reform and better opportunities, concerns the Modi government has yet to adequately address.

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Why Europe can’t escape the fallout from $40 trillion US debt woes

Rising U.S. government debt of $40 trillion is creating global financial strain as borrowing costs surge worldwide. American tech giants' heavy AI investments have intensified competition for global savings, forcing European governments to pay more to borrow. Germany's 10-year bond costs hit their highest level since 2011, pressuring EU nations facing budget constraints while needing to increase defense spending. France is particularly vulnerable, with debt interest costs projected to quadruple from €30 billion in 2020 to €124 billion by 2030. This comes as multiple European countries prepare for elections, creating political pressure against necessary tax increases or spending cuts. While Italy and Spain face fewer immediate pressures, France's situation mirrors broader eurozone concerns. European debt rose from 66 percent of GDP in 2007 to 88 percent last year, becoming unsustainable as the European Central Bank raises interest rates from near-zero levels. Though experts believe a full crisis remains unlikely given the EU's stronger fiscal position relative to the U.S., prominent economists warn the continent has entered a "danger zone" where investor confidence could rapidly deteriorate.

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France tackles dodgy condom problem

French health authorities warned that over 40,000 noncompliant condoms sold online pose serious health risks, including unwanted pregnancies and sexually transmitted infections. Investigators found approximately 30 condom lines lacking required EU safety markings and third-party conformity checks, mostly from Asian vendors on major online marketplaces. Tests identified two faulty CE-marked products—one at risk of bursting and another with perforations—prompting recalls of around 260,000 units in May and August. Online platforms were instructed to remove listings immediately, with 36 ads taken down and several sites promising improved screening processes. This French alert follows a broader European crackdown in July, when authorities traced over 200,000 counterfeit condoms bearing a known brand's logo to a Chinese source, with seizures in Spain, Romania, and Serbia. The warning comes amid surging STI rates across Europe, with gonorrhea cases increasing 31 percent year-over-year in 2023 and over 300 percent since 2014, reaching the highest recorded rate since 2009.

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AI + Agents 2

Poll: The older and richer you are, the more you like AI

A new Public First poll reveals that optimism about AI increases with age and financial security. Young adults aged 18-24 are the most pessimistic, despite being heavy users of AI technology. Over a third worry the technology will impair their critical thinking skills, and a third believe it will complicate career development. Only 19 percent of this group expect AI to improve their personal opportunities and society, compared to 28 percent of 35-44-year-olds who use AI equally but possess more career experience. Financial security strongly correlates with AI optimism. Among those describing themselves as very financially comfortable, 43 percent expect AI to improve their circumstances and society. However, only 18 percent of those unable to afford essentials share this view, with 51 percent expecting AI to harm both themselves and society. Study authors note the findings don't prove financial insecurity causes pessimism but suggest young adults entering the job market without established professional or financial security compound their AI concerns with existing uncertainties about their futures.

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Work + Productivity 1

Other Signals 17

Brazil's election kicks off

Brazil's 2024 presidential race officially commenced with competing rallies from incumbent President Lula and challenger Flávio Bolsonaro. Flávio launched his campaign in Rio de Janeiro wearing a bulletproof vest, accompanied by running mate Alfredo Gaspar, a legislator facing accusations of financial mismanagement and sexual assault. His father, former President Jair Bolsonaro, addressed supporters via loudspeaker while under house arrest. The turnout proved underwhelming at 7,800-9,900 people. Meanwhile, Lula held a well-attended rally in São Bernardo do Campo, consolidating support from major left-of-center parties and center-right pragmatists. Recent polling shows Lula leading 38-31 percent in the first round and 43-40 percent in a potential runoff. Notably, prominent right-wing figures conspicuously avoided Flávio's event, suggesting weak confidence in his candidacy. Political insiders perceive Bolsonaro's position as isolated, lacking coalition support compared to Lula's unified front. Flávio's unilateral selection by his imprisoned father, bypassing other ambitious rightists, has created resentment within the conservative movement. While Lula maintains a steady polling advantage, the race's outcome remains uncertain until voting concludes in October.

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A Land Without the Troubles?

Jan Carson's novel "Few and Far Between" explores Northern Ireland's unresolved trauma through the fictional story of an anthropologist visiting an island archipelago that once sheltered a utopian community during the Troubles. Using magical realism and dark humor, Carson examines how Northern Ireland's refusal to conduct a formal truth and reconciliation process has left deep societal wounds festering. The novel imagines an alternate history where a 1958 proposal to drain Lough Neagh partially succeeded, creating the "Ark"—islands that became a refuge for mixed-religion families fleeing sectarian violence. The narrative bounces between the 1970s and 2017, revealing how peace agreements failed to address underlying trauma. Carson symbolizes unresolved issues through the islands' magical properties: weapons caches, suicide sites, and "Sleepers" representing traumatized individuals. As toxic algae threatens the islands' existence, the government proposes flooding them—mirroring society's tendency to bury problems rather than confront them. The novel suggests that while painful, revealing buried truths can be liberatory, challenging readers to consider how grievances might be genuinely addressed rather than merely covered up.

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Notes

A German conservative mayor backed the AfD. Now Merz is on the spot.

A conservative German mayor, Bernd Prange, has donated €10,000 to the far-right Alternative for Germany (AfD) and publicly declared his intention to vote for them in the September 6 Saxony-Anhalt state election. In an open letter, Prange, who leads the town of Altmärkische Höhe, stated he wants the AfD to govern alone and hopes his own Christian Democratic Union (CDU) party will "wake up" and abandon what he views as a leftward shift. He also called for Chancellor Friedrich Merz's removal as CDU leader. The move has drawn sharp criticism from CDU Premier Sven Schulze, who rejected Prange's approach. The controversy emerges during a critical period for the CDU, as the AfD polls between 41-43 percent in Saxony-Anhalt compared to the CDU's 22-24 percent. Chancellor Merz continues refusing cooperation with the far-right party, but September's elections across eastern Germany threaten to test this political "firewall" as AfD support surges.

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Burnham will divert ‘significant’ resources out of civil service, says No. 10 North chief

Andy Burnham's newly established Manchester office, "No. 10 North," plans to significantly redirect civil service resources from central government to local mayoral authorities and councils. Caroline Simpson, the deputy chief of staff overseeing the devolution unit, told POLITICO that England remains highly centralized and lacks true devolution. The government has committed to transferring powers, resources, and functions to local areas before 2029. While Simpson declined to specify civil service job cuts, she confirmed the intent to move substantial resources from Whitehall to regions. A pilot scheme will deploy five to ten civil servants to eighteen mayoral authorities on secondment. The office, currently housing around fifty civil servants at Manchester's Heron House, is expected to expand to 150. Simpson, previously chief executive of Greater Manchester Combined Authority, described her transition to political staffing as necessary to accelerate change. Officials will outline further details in the October budget. The government also left open the possibility of councils using new economic freedoms flexibly, though specifics remain under discussion.

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Cover Story newsletter: Could AIs become conscious?

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Economist

Cover Story newsletter: Could AIs become conscious?

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Employment tribunals v AI

Also this week, AI and Hollywood, scientific papers, oil pipelines, restaurants, postcards, Richard Wagner

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Foreign Policy

Brazil's election kicks off

Brazil's 2024 presidential race officially commenced with competing rallies from incumbent President Lula and challenger Flávio Bolsonaro. Flávio launched his campaign in Rio de Janeiro wearing a bulletproof vest, accompanied by running mate Alfredo Gaspar, a legislator facing accusations of financial mismanagement and sexual assault. His father, former President Jair Bolsonaro, addressed supporters via loudspeaker while under house arrest. The turnout proved underwhelming at 7,800-9,900 people. Meanwhile, Lula held a well-attended rally in São Bernardo do Campo, consolidating support from major left-of-center parties and center-right pragmatists. Recent polling shows Lula leading 38-31 percent in the first round and 43-40 percent in a potential runoff. Notably, prominent right-wing figures conspicuously avoided Flávio's event, suggesting weak confidence in his candidacy. Political insiders perceive Bolsonaro's position as isolated, lacking coalition support compared to Lula's unified front. Flávio's unilateral selection by his imprisoned father, bypassing other ambitious rightists, has created resentment within the conservative movement. While Lula maintains a steady polling advantage, the race's outcome remains uncertain until voting concludes in October.

Learn
Notes

Trump Needs China’s Help to Effectively Sanction Iran

The United States has announced sweeping new economic sanctions against Iran, with President Trump warning of "crushing" consequences. Treasury Secretary Scott Bessent has specifically urged China to reduce business ties with Iran, which currently purchases over 80 percent of Iran's shipped oil. China has rejected these demands, advocating instead for diplomatic resolution. Iranian leadership has threatened "crushing, punishing, and devastating responses" to any new U.S. threats. In Zambia, opposition leader Brian Mundubile faces police questioning following disputed election results, while a former cabinet member was killed during a raid on his residence. Rights groups have called for an independent investigation. In Pakistan, imprisoned former Prime Minister Imran Khan was briefly taken to a hospital for medical examination but returned to prison after being declared fit, prompting his party to challenge the government's violation of a Supreme Court order requiring examination at a private facility. Meanwhile, U.S. and South Korean military drills concluded six days early after Trump ordered scaled-back American involvement, citing his relationship with North Korean leader Kim Jong Un.

Learn
Notes

Why We Are Living Through ‘Hyperpolitics’

Political scientist Anton Jager describes "hyperpolitics" as a paradoxical phenomenon in which citizens demonstrate increased political activity—higher voter turnout and protest participation—yet fail to achieve structural policy changes. Simultaneously, membership in political parties, unions, and civil society organizations continues declining. This combination of high politicization with low institutionalization represents a new development in Western political culture, emerging after the 2008 financial crisis. Jager argues the right has been more successful exploiting hyperpolitics than the left, partly due to greater access to private funding and because reversing entrenched power structures proves more difficult for progressive movements. While primarily focused on the West, Jager acknowledges hyperpolitical trends appear globally, though countries like China and India, with strong mass parties like the CCP and BJP, represent exceptions. Without institutional channels translating political engagement into policy results, he warns citizens may increasingly turn to political violence as their last viable avenue for change.

Learn
Notes

Who Reaps the Benefits of India’s Growth?

India has emerged as the world's fifth-largest economy with a 7 percent annual growth rate, yet endured decades of economic stagnation under policies established by founder Jawaharlal Nehru that over-regulated industry and limited global integration. A fiscal crisis in 1991 forced market-friendly reforms that catalyzed steady growth and poverty reduction, though inequality deepened. A new book by Devesh Kapur and Arvind Subramanian, "A Sixth of Humanity," challenges conventional interpretations of India's development trajectory. The authors argue India incompletely implemented import-substitution industrialization, instead creating an inefficient public sector while stifling private enterprise. Early democratization enabled populist policies that prioritized powerful interest groups over broader fiscal health. Weak taxation systems, infrastructure neglect, and skewed educational investment—favoring higher education over primary schooling—hindered both growth and equity. Contemporary challenges include jobless economic expansion and youth unemployment, exemplified by recent protest movements demanding education reform and better opportunities, concerns the Modi government has yet to adequately address.

Learn
Notes

A Land Without the Troubles?

Jan Carson's novel "Few and Far Between" explores Northern Ireland's unresolved trauma through the fictional story of an anthropologist visiting an island archipelago that once sheltered a utopian community during the Troubles. Using magical realism and dark humor, Carson examines how Northern Ireland's refusal to conduct a formal truth and reconciliation process has left deep societal wounds festering. The novel imagines an alternate history where a 1958 proposal to drain Lough Neagh partially succeeded, creating the "Ark"—islands that became a refuge for mixed-religion families fleeing sectarian violence. The narrative bounces between the 1970s and 2017, revealing how peace agreements failed to address underlying trauma. Carson symbolizes unresolved issues through the islands' magical properties: weapons caches, suicide sites, and "Sleepers" representing traumatized individuals. As toxic algae threatens the islands' existence, the government proposes flooding them—mirroring society's tendency to bury problems rather than confront them. The novel suggests that while painful, revealing buried truths can be liberatory, challenging readers to consider how grievances might be genuinely addressed rather than merely covered up.

Learn
Notes

What in the World?

This article presents a weekly news quiz covering global political developments. Key stories include President Trump's criticism of U.S.-South Korea military drills and his complimentary remarks about North Korean leader Kim Jong Un. The United States and Iran failed to meet a deadline for nuclear negotiations. The United Kingdom reaffirmed support for Ukraine after Russian threats over military aid provision. Pakistan's Supreme Court ordered former Prime Minister Imran Khan's transfer to a higher-security prison amid health concerns. Chinese President Xi Jinping met with Latin American leaders, emphasizing regional autonomy. Zambia's re-elected President Hichilema faces UN scrutiny over press freedom concerns. The Trump administration announced $206 million in humanitarian aid for Gaza. Chinese courts sentenced Evergrande founder Hui Ka Yan to life imprisonment for financial fraud related to the company's $300 billion debt collapse. Lithuania hosted its annual corgi race with international participation. Singer Shakira pledged to rebuild schools and a university in Colombia damaged by earthquake.

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Notes

Why Do Young Africans Love Donald Trump?

While Trump's approval ratings decline globally, the African Youth Survey reveals strong support among young Africans, with approximately 60 percent believing his leadership could benefit the continent. This represents a significant shift from 2024, when only 23 percent supported him over Biden. Young Africans are attracted to Trump's assertive foreign policy, business acumen, and traditional values, particularly appealing to culturally conservative youth and aspiring entrepreneurs. Support also reflects protest against domestic leaders and hope that Trump's transactional approach to aid withdrawal could encourage African self-reliance and government accountability. However, skepticism persists regarding U.S. intentions toward African resources. Importantly, young Africans maintain strong commitment to democratic institutions and term limits domestically while viewing Trump favorably internationally. Despite Trump's appeal, China remains Africa's strongest ally, with young Africans preferring multipolar global engagement and advocating for greater African representation in international institutions like the UN Security Council.

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Notes

Trump’s Twin Blunders

In 2011, the Obama administration announced a "pivot to Asia" to reduce costly Middle East commitments and counter China's rise. However, the strategy never fully materialized as the Middle East remained a priority across administrations. During Trump's first term, this pivot deteriorated further through public doubts about defending Taiwan, coercive trade negotiations with allies, and minimal alliance-building efforts. Recently, Trump's actions have simultaneously damaged U.S. credibility in both regions. He abruptly halved joint U.S.-South Korean military drills without warning, citing resentment over Seoul's refusal to support operations in the Persian Gulf. Meanwhile, the USS George Washington was redeployed from East Asia to the Middle East due to mismanagement of the Iran conflict, which forced the USS Abraham Lincoln into its longest deployment without port access, straining crew morale. Additionally, a U.S. destroyer suffered a power failure in the strategically critical South China Sea. Years of Middle East wars have depleted advanced U.S. weapons stocks and exposed the vulnerability of American bases to Iranian attacks, causing regional allies to question U.S. defense guarantees. The result is managed calamity in both regions simultaneously.

Learn
Notes

The U.S. Is Learning the Wrong Lessons in Iran

While security analysts have identified tactical shortcomings in the U.S. military operation against Iran—including insufficient munitions, inadequate drone countermeasures, and poor preparation for supply disruptions—these logistical failures are not the fundamental cause of American strategic failure in the Strait of Hormuz. The Trump administration failed to achieve its core objectives of regime change, destroying Iran's long-range strike capabilities, and altering Iranian nuclear and regional proxy policies. The article argues that achieving regime change through airpower alone is historically impossible, as demonstrated by failed bombing campaigns from World War II through Vietnam to recent Middle Eastern conflicts. Similarly, neutralizing mobile missile and drone systems from the air has never succeeded without ground operations. The ultimate responsibility for this military debacle lies not with Pentagon planners but with political leadership—specifically President Trump for demanding impossible tasks and Defense Secretary Pete Hegseth for failing to push back against flawed strategy. The article ultimately places blame on American voters for electing an incompetent leader incapable of accepting expert counsel, demonstrating that military excellence cannot compensate for poor political decision-making.

Learn
Notes

Southeast Asia Isn’t Buying Elbridge Colby’s Flexible Realism

U.S. Undersecretary of Defense Elbridge Colby recently toured Southeast Asia to reassure allies of continued American commitment to the region. However, his messaging contradicts the Trump administration's actual policies, fueling concerns about U.S. withdrawal. While Colby emphasized America's commitment and characterized alliances as based on "mutual respect," simultaneous actions tell a different story. The administration redirected an aircraft carrier from the Pacific to the Middle East, reduced military exercises with South Korea, and pressured Indonesia for military access while claiming to respect its sovereignty. The Trump administration's transactional approach echoes problematic Cold War and colonial-era tactics, prioritizing concessions over genuine partnership. Officials defend these policies as "pragmatic" and "realistic," but this rhetoric masks protectionist assumptions rooted in 19th-century economics. Increased tariffs and burden-sharing demands undermine the economic interdependence and trust that historically prevented conflict. Regional leaders perceive an unreliable, distracted United States, a perception Washington has earned through inconsistency between stated strategy and demonstrated actions.

Learn
Notes

What Odysseus Can Teach Us About Liberalism

Christopher Nolan's "The Odyssey" succeeds as a summer blockbuster while raising profound moral questions. Rather than dismissing criticism about casting a Black actress as Helen as mere "woke" commentary, Ezra Klein argues the film operates on a deeper level. Nolan replaces ancient morality—which celebrated conquest and victory—with nuanced values reflecting modern sensibilities. Unlike Homer's Odysseus, celebrated for cunning deceit, Nolan's protagonist is haunted by war's devastation and his own deception. This shift reflects Christianity's gradual replacement of pagan ethics centered on domination with emphasis on universal human dignity and compassion. Today, populist movements romanticize pre-Christian values prioritizing strength and winning over empathy. However, Western civilization's greatest achievement has been expanding human rights and dignity to previously marginalized groups. While Nietzsche worried egalitarianism diminishes ambition, the West demonstrated that greatness and goodness need not conflict. Nineteenth and twentieth-century liberal democracies were simultaneously moral and ambitious, building infrastructure, defeating fascism, and landing on the moon. Rather than retreating to Homer, the West should recover this older liberal tradition, particularly when developing artificial intelligence.

Learn
Notes

A Top Trump Ally Turns to China

Ecuadorian President Daniel Noboa is visiting China to strengthen trade and investment ties despite pressure from the Trump administration to limit Chinese economic engagement in Latin America. China-Ecuador bilateral trade increased 20 percent in the first half of 2024 following a free trade agreement. However, Noboa's primary challenge remains gang violence and homicides, which persist near historic highs despite his militarized anti-gang partnership with the United States. Economic growth is expected to slow, and analysts note he lacks a clear growth strategy beyond business-friendly policies. China lifted a ban on Ecuadorian shrimp imports during negotiations. Meanwhile, Venezuela released political prisoners as part of U.S.-brokered reconciliation talks between the government and opposition representatives. In Mexico, a judge approved charges against former Guerrero Governor Ángel Aguirre for involvement in the 2014 disappearance of 43 students. Pope Leo XIV will tour South America in November, beginning in Peru where he obtained citizenship. Brazil's President Lula highlighted a Petrobras oil discovery in the Amazon basin, prioritizing economic concerns over environmental objections as his reelection campaign begins.

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Politico

How Greek farmers milked EU funds from imaginary cows

A POLITICO analysis of Greek government data reveals significant discrepancies between EU subsidy claims and actual livestock numbers. In 2024, Greek farmers claimed subsidies for approximately 260,000 lactating cows, which should have resulted in a national herd increase of roughly 70,000 animals when accounting for births and slaughter. However, official statistics show the herd actually shrank from 640,000 in 2023 to 520,000 in 2025. Similar discrepancies appear in sheep and goat records, with registrations vastly exceeding official population counts. Agriculture ministry officials attribute the problem to reliance on unreliable municipal data and lack of a secure livestock registry. The findings threaten to expand an ongoing farm-subsidy scandal already under investigation by the European Public Prosecutor's Office, which has indicted 22 defendants including four lawmakers. Greece is implementing new controls, including electronic identification systems for livestock, and submitted an action plan to EU authorities addressing fraud prevention measures.

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NATO’s next nightmare: The French presidential election

NATO faces a serious threat from the upcoming French presidential election, as recent polling shows approximately half of French voters support hardline candidates opposed to the alliance. Marine Le Pen of the far-right National Rally wants to withdraw France from NATO's integrated command, while far-left politician Jean-Luc Mélenchon seeks complete withdrawal. France's departure would significantly damage NATO, particularly given its status as the EU's only nuclear power and a key military contributor. The alliance would lose access to France's nuclear-powered aircraft carrier, specialized intelligence capabilities, and advanced military assets. Timing is especially concerning as the U.S. reduces European forces and Russia poses potential threats. France would also suffer consequences, losing influence over military decisions and high-level NATO positions. While France previously left NATO's command structure under De Gaulle in 1966 before rejoining in 2009, current geopolitical tensions make this prospect more dangerous. NATO officials worry a NATO-skeptic French president would weaken European defense coordination and potentially elevate Germany as Europe's leading member, further diminishing French influence.

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Why Europe can’t escape the fallout from $40 trillion US debt woes

Rising U.S. government debt of $40 trillion is creating global financial strain as borrowing costs surge worldwide. American tech giants' heavy AI investments have intensified competition for global savings, forcing European governments to pay more to borrow. Germany's 10-year bond costs hit their highest level since 2011, pressuring EU nations facing budget constraints while needing to increase defense spending. France is particularly vulnerable, with debt interest costs projected to quadruple from €30 billion in 2020 to €124 billion by 2030. This comes as multiple European countries prepare for elections, creating political pressure against necessary tax increases or spending cuts. While Italy and Spain face fewer immediate pressures, France's situation mirrors broader eurozone concerns. European debt rose from 66 percent of GDP in 2007 to 88 percent last year, becoming unsustainable as the European Central Bank raises interest rates from near-zero levels. Though experts believe a full crisis remains unlikely given the EU's stronger fiscal position relative to the U.S., prominent economists warn the continent has entered a "danger zone" where investor confidence could rapidly deteriorate.

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Zelenskyy bets on special forces general to steady defense ministry

Yevhenii Khmara, a former special forces major general, has been appointed as Ukraine's fifth defense minister, replacing the popular Mykhailo Fedorov whom President Zelenskyy fired after weeks of conflict with military leadership. Parliament approved Khmara with overwhelming support, and he has committed to continuing many of Fedorov's priorities, including strengthening Ukraine's defense systems, accelerating drone and missile production, reforming military recruitment, and expanding deep-strike operations against Russia. Khmara's objectives align with his predecessor's agenda of reducing corruption and bureaucratic inefficiency while delivering advanced weapons to troops. Despite his inexperience in politics, Khmara brings extensive military credentials, including participation in the battle for Kyiv and leading operations to liberate Snake Island. He also led Ukraine's deep-strike campaign into Russia and served as acting head of Ukraine's security service. Khmara has received cross-party support, with politicians praising his combat experience and military credentials. However, he faces significant challenges including problematic military recruitment, maintaining good relations with military brass, and implementing procurement reforms—the same obstacles that led to his predecessor's dismissal.

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‘Shameful’: Israel faces international backlash after closing probe into Gaza aid strike

The United Kingdom, Australia, and Canada condemned Israel's decision not to pursue a criminal investigation into a 2024 strike on a World Central Kitchen aid convoy that killed seven people, including workers from these nations. The governments called the decision "shameful," particularly because it was announced on World Humanitarian Day, after more than two years of pressure to investigate. Poland summoned Israel's ambassador in response, as Polish aid worker Damian Soból was among those killed in the April 2024 attack. Israeli drones struck the convoy while it was delivering food in Gaza, killing three Britons, an Australian, a dual U.S.-Canadian citizen, and a Palestinian. The Israeli Defense Forces initially described the attack as a serious mistake and pledged a thorough investigation. However, the IDF concluded this week that there was no reasonable suspicion of criminal misconduct warranting investigation. Poland's foreign ministry rejected this outcome and stated its prosecutors continue investigating the matter.

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France tackles dodgy condom problem

French health authorities warned that over 40,000 noncompliant condoms sold online pose serious health risks, including unwanted pregnancies and sexually transmitted infections. Investigators found approximately 30 condom lines lacking required EU safety markings and third-party conformity checks, mostly from Asian vendors on major online marketplaces. Tests identified two faulty CE-marked products—one at risk of bursting and another with perforations—prompting recalls of around 260,000 units in May and August. Online platforms were instructed to remove listings immediately, with 36 ads taken down and several sites promising improved screening processes. This French alert follows a broader European crackdown in July, when authorities traced over 200,000 counterfeit condoms bearing a known brand's logo to a Chinese source, with seizures in Spain, Romania, and Serbia. The warning comes amid surging STI rates across Europe, with gonorrhea cases increasing 31 percent year-over-year in 2023 and over 300 percent since 2014, reaching the highest recorded rate since 2009.

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Poll: The older and richer you are, the more you like AI

A new Public First poll reveals that optimism about AI increases with age and financial security. Young adults aged 18-24 are the most pessimistic, despite being heavy users of AI technology. Over a third worry the technology will impair their critical thinking skills, and a third believe it will complicate career development. Only 19 percent of this group expect AI to improve their personal opportunities and society, compared to 28 percent of 35-44-year-olds who use AI equally but possess more career experience. Financial security strongly correlates with AI optimism. Among those describing themselves as very financially comfortable, 43 percent expect AI to improve their circumstances and society. However, only 18 percent of those unable to afford essentials share this view, with 51 percent expecting AI to harm both themselves and society. Study authors note the findings don't prove financial insecurity causes pessimism but suggest young adults entering the job market without established professional or financial security compound their AI concerns with existing uncertainties about their futures.

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A German conservative mayor backed the AfD. Now Merz is on the spot.

A conservative German mayor, Bernd Prange, has donated €10,000 to the far-right Alternative for Germany (AfD) and publicly declared his intention to vote for them in the September 6 Saxony-Anhalt state election. In an open letter, Prange, who leads the town of Altmärkische Höhe, stated he wants the AfD to govern alone and hopes his own Christian Democratic Union (CDU) party will "wake up" and abandon what he views as a leftward shift. He also called for Chancellor Friedrich Merz's removal as CDU leader. The move has drawn sharp criticism from CDU Premier Sven Schulze, who rejected Prange's approach. The controversy emerges during a critical period for the CDU, as the AfD polls between 41-43 percent in Saxony-Anhalt compared to the CDU's 22-24 percent. Chancellor Merz continues refusing cooperation with the far-right party, but September's elections across eastern Germany threaten to test this political "firewall" as AfD support surges.

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China slams EU foreign subsidies rules, links them to trade talks

China has ordered its companies to withhold information from EU investigators examining the Foreign Subsidies Regulation, escalating tensions during critical trade negotiations. Beijing specifically referenced the Commission's investigation into JD.com's €2 billion acquisition of Germany's Ceconomy, arguing the EU is requesting excessive and irrelevant information from Chinese banks. China claims the FSR discriminates against Chinese companies and violates WTO rules, while the Commission maintains the regulation applies equally to all firms regardless of nationality. The move comes as EU and Chinese negotiators engage in intense discussions over the bloc's €1 billion daily trade deficit in goods with China. A September videoconference and October trip by EU trade chief Maroš Šefčovič to Beijing are planned, with an EU summit following that could determine whether dialogue suffices or if Brussels must pursue more forceful trade defense measures. JD.com's recent remedies offer suggests advanced negotiations, though Beijing's intervention risks jeopardizing the entire acquisition.

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The drone war is coming for global shipping

Ukraine's drone campaign against Russian-linked merchant vessels in the Black Sea and Sea of Azov has escalated dramatically, with 172 ships struck in just 12 days. These precise attacks, enabled by advanced unmanned aerial vehicle technology, have forced Russia to divert significant resources to ship protection and equip tankers with anti-drone systems. However, this emerging conflict threatens global maritime security. Non-Russian vessels are becoming collateral victims, and Russia has already demonstrated willingness to attack civilian ships, killing seafarers and targeting European and Lebanese-owned cargo vessels. As shipowners install protective technology and costs rise, a potential maritime arms race looms. The attacks undermine the United Nations Convention on the Law of the Sea, which establishes that most merchant vessels should not be legitimate military targets. If this consensus erodes, global shipping could descend into chaos. The U.S. administration has reportedly asked Ukraine to suspend these attacks to stabilize oil markets, prioritizing economic concerns over international maritime law preservation.

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Burnham will divert ‘significant’ resources out of civil service, says No. 10 North chief

Andy Burnham's newly established Manchester office, "No. 10 North," plans to significantly redirect civil service resources from central government to local mayoral authorities and councils. Caroline Simpson, the deputy chief of staff overseeing the devolution unit, told POLITICO that England remains highly centralized and lacks true devolution. The government has committed to transferring powers, resources, and functions to local areas before 2029. While Simpson declined to specify civil service job cuts, she confirmed the intent to move substantial resources from Whitehall to regions. A pilot scheme will deploy five to ten civil servants to eighteen mayoral authorities on secondment. The office, currently housing around fifty civil servants at Manchester's Heron House, is expected to expand to 150. Simpson, previously chief executive of Greater Manchester Combined Authority, described her transition to political staffing as necessary to accelerate change. Officials will outline further details in the October budget. The government also left open the possibility of councils using new economic freedoms flexibly, though specifics remain under discussion.

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LRT

First map of Lithuanian businesses in the UK launched, companies urged to sign up

Hundreds of Lithuanian-linked businesses operate across the United Kingdom, yet their collective presence has never been comprehensively documented. The Lithuanian Chamber of Commerce and Industry in the UK is now creating the first map of these businesses, encompassing companies founded by Lithuanians, those with Lithuanian capital, and Lithuania-linked enterprises. The initiative aims to visualize the geographic distribution, sectors, and scale of the Lithuanian business community throughout all UK regions. Beyond serving as an informational resource, the map will function as a practical tool enabling businesses to identify potential partners, strengthen connections, and collaborate more effectively. All UK-based Lithuanian businesses are invited to register. LCCUK president Laura Budrienė emphasizes that while the business environment shifted post-Brexit, thousands of Lithuanian companies continue operating successfully in the UK. The map will provide the first comprehensive assessment, identifying concentration areas, high-performing sectors, and untapped opportunities. The UK represents one of Lithuania's most significant trading partners, with Lithuanian exports to the UK reaching nearly €1.6 billion in 2025.

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Lithuania to seek full CERN membership, PM says

Lithuania's Prime Minister Mindaugas Sinkevičius announced the country will formally apply for full membership at CERN, the European Organization for Nuclear Research. Currently holding associate membership since 2018, Lithuania seeks to upgrade its status to remove existing restrictions and gain greater influence in European innovation policy. Full membership would enable stronger participation in CERN's research initiatives and enhance Lithuania's competitiveness in high-value sectors. The government stated the formal application will be submitted shortly. Lithuanian scientists, students, and companies have already benefited from associate membership through participation in CERN's work and contract opportunities. President Gitanas Nausėda has emphasized Lithuania's interest in deepening cooperation with CERN, particularly in artificial intelligence, advanced detector systems, and quantum technologies. CERN currently comprises 25 member states and associate partners conducting physics research with significant applications across industry, medicine, and information technology globally.

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Generators, queues and deserted beaches: life in occupied Crimea today

Since late June, when Ukrainian Defence Forces launched an operation to pressure Russia into peace negotiations, Crimea has experienced significant hardship including power outages, fuel shortages, empty shop shelves, and absent tourists. However, Russian-controlled media portrays a contrasting narrative of stability and normalcy, featuring videos of doctors, scientists, and workers claiming difficulties are temporary and manageable. The reality tells a different story. Residents report extended power cuts lasting over 48 hours, while authorities have established field kitchens and mobile phone charging centres—presented as assistance but indicative of crisis. Businesses across Crimea are closing due to prohibitive operating costs, including expensive generator fuel and restricted refueling. Shops in Simferopol, Sevastopol, and Yalta have shuttered, with owners describing a severe economic crisis. Tourist complexes have suspended operations due to fuel shortages and declining visitor numbers, contradicting pro-Russian bloggers' attempts to show crowded beaches. Officials announce billions in support while simultaneously requiring new bureaucratic procedures and loan restructuring. Analysts suggest these propaganda efforts aim to prevent socio-political destabilization in occupied territories and Russia itself, masking the escalating impact of Ukrainian military operations on Russian logistics and occupation infrastructure.

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Lithuania should not invest in airBaltic until airline turns profitable – president

Lithuania should not invest in Latvia's airBaltic airline until it achieves profitability, according to President Gitanas Nausėda. He emphasized the company must make radical cost reductions and demonstrate viable recovery plans before Lithuania considers acquiring shares. All financial risks must be thoroughly evaluated first. While Lithuania remains interested in airBaltic's survival—partly due to its EU Council presidency in the first half of 2025, which will require extensive travel to other EU capitals—caution is warranted. Lithuanian officials are divided on the issue. Prime Minister Mindaugas Sinkevičius said Lithuania would consider a stake if offered, pending assessment of national interests. Transport Minister Jūras Taminksas opposed the move, calling it an "emotional action." Meanwhile, Latvia's parliament approved state support measures for airBaltic, including €30 million in interim financing bonds and €50 million in bond capitalization. Latvian Prime Minister Andris Kulbergs described this as the airline's final opportunity to stabilize.

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Lithuania's leaders resist calls for broader Church inquiry

Lithuania's government officials have resisted calls for a comprehensive independent investigation into sexual abuse within the Catholic Church, though they cited different reasons. Prime Minister Mindaugas Sinkevičius argued that such decisions belong to Church leaders, not politicians, citing the separation of state and Church governance. Parliamentary Speaker Juozas Olekas suggested waiting for ongoing court proceedings to conclude before considering additional investigations, while advocating for independent experts in any internal Church inquiries. Archbishop Gintaras Grušas agreed that a broad inquiry is premature, prioritizing victim protection instead. The debate intensifies amid two significant criminal cases: priest Tadas Švedavičius faces charges of sexual offences against eleven minors across 34 episodes spanning 23 years, while priest Ryšardas Pečiūnas is charged with possessing child pornography. These cases have also sparked broader discussion about Lithuania's lack of a sex offender registry.

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Lithuania rules out fuel VAT cut despite rising oil prices

Lithuania's government has ruled out cutting value-added tax on fuel despite rising oil prices, positioning itself differently from neighboring Poland, which temporarily reduced VAT on some fuels from 23% to 8%, potentially lowering pump prices by up to €0.23 per litre at an estimated cost of €115 million to the state budget. Prime Minister Mindaugas Sinkevičius cited the significant disparity in economic size, noting Poland's economy is nearly 11 times larger, affording greater fiscal flexibility. Instead, Lithuania plans to rely on excise duty reductions as its primary response mechanism. The government previously indicated willingness to consider such measures if diesel prices exceeded €2.20 per litre. In mid-April, following Middle East conflict escalation, Lithuania cut diesel excise duty by six cents per litre for two months. Sinkevičius indicated that similar excise-based interventions remain available should regional tensions and petroleum prices increase substantially.

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Baltic states complete Baltic Bikini 2026 – water survival exercise for air crews

Lithuania, Latvia, and Estonia completed a five-day joint air force exercise emphasizing water survival skills. The Baltic Bikini 2026 drills, organized by the Latvian Air Force, occurred in the Baltic Sea where crews practiced emergency aircraft evacuation and deployment of life-saving equipment. These skills must be refreshed every three years for flight personnel. The exercise began in 1999 as part of a search and rescue cooperation agreement between Lithuania and Denmark, with initial training conducted in Denmark. Since 2004, the three Baltic states have independently organized the drills on a rotating basis, continuing this established tradition of regional military cooperation and preparedness.

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Lithuania’s arms procurement system failing to meet military needs – audit

Lithuania's National Audit Office found that the country's military procurement system is failing despite increased defense spending, with failed weapons procurements surging from 24% in 2023 to 59% in 2025. Internal problems include funding constraints, shifting priorities, outdated capability plans, lengthy decision-making processes, staff shortages, and fragmented project management. External factors such as global weapons demand, limited manufacturing capacity, and long lead times also contribute to delays. The audit revealed that internal coordination often takes 30 to 374 days, far exceeding the recommended 180 to 240-day timeline for international procurements. Between 2023 and 2025, the Defence Materiel Agency signed 62 weapons contracts worth €3.4 billion using legal exceptions to standard procurement rules. The audit identified serious control deficiencies in 38% of cases examined. In response, Defence Minister Robertas Kaunas announced legislative proposals for autumn submission to parliament aimed at streamlining the system, with targets including reducing failed procurements to 20% and ensuring military requirements are met within 730 days.

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Lithuanian transport minister removes airport board member over Russia links

Oleksandras Laneckis has resigned from the board of Lithuanian Airports following public concern about his alleged ties to Russia and Belarus. Transport Minister Juras Taminskas requested his removal, citing the need for board members managing critical infrastructure to maintain impeccable reputations. While Laneckis disputed the allegations as unfounded and politically motivated, he resigned to avoid hindering airport operations. The opposition Conservatives had raised national security concerns, alleging Laneckis gives interviews to pro-Russian media outlets and publishes articles about circumventing Western sanctions. He also faced criticism over previous comments regarding the Ukraine war and Belarus's 2021 forced landing of a Ryanair flight. The State Security Department was asked to assess whether Laneckis met national security requirements, though he claimed previous screening found no discrepancies. Laneckis previously served as vice-president at Avia Solutions Group, overseeing Russian and CIS markets. The Transport Ministry is now searching for two replacement board members.

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LRT English Newsletter: Team America’s rules

Lithuania faces mounting pressure to distance itself from the International Criminal Court to maintain its security alliance with the United States. While the US hasn't explicitly threatened to withdraw troops, it's pressuring NATO members to withdraw from the Rome Statute. Lithuania's president has ruled out withdrawal but signals openness to bilateral agreements. Meanwhile, conservative lawmakers target the Council of Muslim Religious Communities, seeking to reclaim mosques for the historic Tartar community and opposing new mosque construction, claiming immigrants should remain temporary. The government's migration policy remains inconsistent—President Nausėda proposes requiring migrant workers to leave every two years, while officials debate reducing transit windows for Russians crossing to Kaliningrad. The Catholic Church faces renewed scrutiny following accusations against two priests; the archbishop resists calls for an independent historical abuse investigation. Additionally, Rail Baltica's costs have quadrupled to 23.8 billion euros, requiring increased EU funding, while government officials contradict each other on potential support for struggling airBaltic airline.

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FT FT Markets

Bessent dissent

Moves by the Treasury secretary are being interpreted as an effort to control rising yields

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Blogs

Krugman

Scott Bessent Fails to Gaslight the Market

Scott Bessent, the Treasury Secretary under Trump, has proven far worse than expected despite his credentials as a bond trader. He has become a Trump sycophant, praising the president's decision to place his signature on currency with "Dear Leader" rhetoric that undermines the Treasury secretary's critical credibility during financial crises. Bessent makes demonstrably false economic claims, such as declaring the K-shaped economy over despite data showing income inequality persisting. Inside the Treasury, 44 percent of top Senate-confirmed appointees have departed, with at least four leaving over disagreements about illegal or unethical demands, including using taxpayer data for immigration enforcement and compensating Trump allies through an IRS deal. Bessent has also deployed Treasury resources for political purposes, such as supporting Argentina's Trump-friendly president and attempting quantitative easing through bond buybacks to artificially lower long-term interest rates—a move that failed and contradicts Fed policy. His sycophancy, ethical lapses, and political manipulation have destroyed his credibility precisely when a competent Treasury secretary would be most needed during an economic crisis.

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Šeši Nuliai