Russia, Iran and above all China form the backbone of an axis bent on destabilizing the Western political and economic order. The Russian and Iranian economies are basket cases and as such incapable of supporting a prolonged war effort. China on the contrary has developed a formidable economic and industrial machine. Nevertheless, China faces huge challenges and massive problems.

The case for the September interest rate cut of the Fed was much more clear-cut than the case made by the ECB. Yet both central banks risk re-igniting a debt-fueled financial boom that will further feed financial and economic instability.

Warnings of resource depletion have been proven wrong again and again. Human creativity and energetic entrepreneurship fueling “the free market innovation machine” are the most powerful drivers of change and advancement.

The arguments of the “degrowth” adepts do not hold up. Armageddon-like theories of resource exhaustion and apocalyptic ecological degradation were again and again proven to be wrong. No growth is also a recipe for increased societal tensions and a weakening of democratic institutions.

Economic growth will help solve almost all of the many difficult issues we face. Therefore, European countries certainly need to double down on efforts to stimulate economic growth.

The near-certitude of policy interest rate cuts by the Fed and the ECB in the near future is rapidly fading away. In the US more than in the eurozone the latest inflation data are worrying. A major lesson from history is that stepping back too early from a restrictive monetary policy is only asking for trouble further down the road.

The enthusiasm for a new EU Defense Fund should be tempered. Not only are there the problems and shortcomings that surfaced with the implementation of the EU’s most recent fund initiative, the Recovery and Resilience Facility, there is also a more fundamental issue that can no longer be ignored. This type of EU Fund creates enormous perverse incentives. Better alternatives are available.

Vladimir Putin’s failure record in Ukraine is impressive. Nevertheless there can be no doubt about his intent to destroy our common Western values: individual freedom, democracy, human rights and rule of law. Therefore Western allies of the government in Kyiv need to go all the way in supporting Ukraine’s right to self-defense. “Ukraine fatigue” has to be banned.

Full and unconditional support for Ukraine cannot be squared with the import levies on Ukrainian exports into the EU. The EU needs to revise thoroughly its agricultural policies.