The Econoclasts 2025: The West’s annus horribilis
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Dec 31, 2025 2025 emerges as a critical year with shifting geopolitics, marked by victories for Russia, China, and a tariff-driven Trump. The hosts explore Europe’s precarious position, highlighting failures in green policy and the erosion of international law. They discuss the rise of 'cloud capital' and the chilling prospects of AI-driven warfare, raising concerns about human oversight. The discussion culminates in a reflection on the meaning of hope versus mere optimism as they face the future in a world dominated by concentrated power.
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2025 Marked A Shift To A G2 World
- Yanis Varoufakis argues 2025 was pivotal because Russia, China and Trump each secured strategic victories that reshaped global power.
- These upsets concentrated power in a G2 world, leaving Europe and the UK strategically constrained.
Europe Misjudged The Trump Playbook
- Wolfgang Munchau calls 2025 an 'annus horribilis' for the EU driven by strategic misjudgements and a lack of preparation for Trump-era policies.
- He argues Europe underestimated Trump's blend of commercial deals and peace initiatives, leaving it unprepared and weakened.
The Green Transition Lost Its Momentum
- Yanis says 2025 delivered the final blow to the international green transition as Europe abandons the Green Deal and the US blocks climate discussion.
- He links this collapse to the geopolitical victories of Putin, Xi and Trump that deprioritised climate action.