With the aim of structurally reducing the European economy’s dependence on fossil fuel imports and accelerating the energy transition, the European Commission has opted for electrification.

Since February 2022, Russian missile and long-range drone strikes against Ukraine have served as near-daily reminders of what European states could face in a war with Russia. The same weapon systems battering Ukrainian infrastructure and population centers would be directed against European military and civilian targets in any confrontation between Russia and NATO. As Russian missile production expands and its arsenal diversifies, Europe must confront an uncomfortable question: how to deter, and if push comes to shove, fight Russia's long-range strike arsenal?

The May 2025 India-Pakistan crisis after the Pahalgam attack has generated a familiar but incomplete debate: did nuclear deterrence work, or did it merely allow both sides to fight a limited war under the nuclear shadow? The better answer is that deterrence worked at the level at which it was designed to work. It prevented a general war and an uncontrolled vertical escalation, and kept nuclear weapons in the background. But it did not prevent India from attempting to carve out space for conventional action, nor did it prevent Pakistan from responding conventionally to restore deterrence credibility.

Global imbalances have come back to the top of the policy agenda. Many analyses and reports have been produced over recent months. The standard prescription involves better coordination of macroeconomic policies, with three familiar recommendations: higher consumption in China, higher investment in Europe, and fiscal consolidation in the United States.