This episode explores the shifting landscape of international trade and geopolitics, particularly focusing on the implications of recent trade deals involving the US, UK, and EU. Against the backdrop of a potential trade war between the US and the EU, the discussion questions whether the US-UK deal is genuinely free and how it impacts the UK's relationship with the EU. More significantly, the conversation broadens to the structural imbalances in global trade, with Germany and China's mercantilist policies drawing scrutiny for creating deficits elsewhere. Yanis Varoufakis introduces Keynes's idea of an International Clearing Union as a solution, while Wolfgang Munchau highlights the impossible trilemma of hyper-globalization, national sovereignty, and democracy. As the discussion pivots to potential future scenarios, a fragmentation into trade blocs is considered, with China possibly leading one bloc and the US adopting a hub-and-spoke model. In closing, the panelists express pessimism about Europe's capacity to respond strategically to these challenges, pointing to a lack of leadership and a failure to adapt to new technological realities.
