‘Military Keynesianism’? Reeves faces British defence dilemma after EU spending surge | Economics

As the Nobel laureate Robert Lucas quipped during the 2008 financial crisis: “I guess everyone is a Keynesian in a foxhole.” Donald Trump’s upending of the postwar security consensus has underlined the enduring wisdom of Lucas’s observation. But now, instead of bank bailouts and emergency bond buying, European firepower is being directed at bombs, tanks … Read more

EU must brace for impact of Trump wrecking ball on global trading system | Heather Stewart

Forget the “Trump put”, as financial analysts called the bet that the US president’s policies would unleash a winning era for the nation’s stock markets. By Friday, the chat was of the “Merz spurt”. The decision by Friedrich Merz, the German chancellor-in-waiting, to cut a deal on ditching Germany’s debt brake – still to be … Read more

The founding fathers baked reason, truth and free speech into the US. That’s all gone now | Will Hutton

The founding fathers of the USA – James Madison, Thomas Jefferson, Alexander Hamilton, Benjamin Franklin and more – were quintessential disciples of the European Enlightenment. Their intent was to embed Enlightenment values into the government and culture of the New World. America would be a republic of laws. Its constitution would ensure governance of the … Read more

The Observer view: Europe must now come of age as a global player | Observer editorial

Britain and Europe are together facing a watershed moment, a turning point, a second Zeitenwende, a paradigm shift, a new world order. Regardless of which of these overused phrases best describes the dramatic shifts unfolding since Donald Trump began his second US presidential term in January, politicians, diplomats and analysts all agree: nothing will be … Read more

Being Putin’s stooge won’t win Trump a peace prize. The Order of Lenin, though, is in the bag | Simon Tisdall

Donald Trump’s sinister affinity for Russia’s president, Vladimir Putin, has long been the subject of intense speculation. Former KGB officers claim Trump was recruited in Moscow in 1987 and cultivated as an asset in the years prior to his 2016 US election victory. Two retired Russian spies weighed in again last month, alleging that the … Read more