The first domino just fell in France - Yanis Varoufakis & Wolfgang Munchau | The Econoclasts

France’s economic instability and the rising geopolitical tensions between Europe and Russia define the current European landscape. Jean-Luc Mélenchon’s proposal to convert French public debt held by the central bank into perpetual bonds aims to bypass austerity and foster investment, though critics argue this constitutes illegal debt monetization that could force a Eurozone exit. Beyond fiscal policy, the continent faces a dangerous shift toward a "pre-war" mentality. The prevailing narrative of a hybrid war against Russia is being used to justify excessive military spending and the abandonment of diplomatic channels, despite the lack of a rational military strategy. This warmongering frenzy, driven by vested industrial interests, risks transforming Europe into a wasteland. Both fiscal mismanagement and the collapse of diplomacy threaten the European Union’s stability, as the region prioritizes rearmament over the necessary, albeit difficult, pursuit of long-term peace and economic recovery.