Trump just shattered the West’s Russia alliance - Varoufakis & Munchau | The Econoclasts

The US-EU alliance regarding Ukraine is fracturing as American energy deals with Russia undermine the strategic narrative of European sanctions. This geopolitical shift exposes the EU's reliance on military Keynesianism to mask its failure to achieve core economic objectives, such as productivity growth and innovation. Simultaneously, France’s mounting public debt is not a symptom of fiscal mismanagement but a structural inevitability of the Eurozone’s fixed exchange rate regime. Because France and Germany share a currency without political union, capital naturally flows toward the more capital-intensive German economy, leaving France with persistent deficits. The Eurozone functions as a cartel of big business rather than a cohesive economic union, and without a transition to political federation or the reintroduction of flexible exchange rates, the bloc remains trapped in a cycle of recurring debt crises and social instability.