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This article has been automatically translated from Dutch. Click here to see the orginal article including all links to sources.
This week, Europe appears to be searching for direction amidst growing geopolitical tensions. Ursula von der Leyen wants to permanently sever ties with Russian gas—but not everyone agrees. Meanwhile, frustration is mounting over Brussels' increasing regulatory pressure and hunger for more money. Are European businesses losing too much of their competitive edge? And finally, we look at a striking comment from Warren Buffett. Read on!
"Let me be very clear: the era of Russian fossil fuels in Europe is coming to an end," European Commission President Ursula von der Leyen declared this week in the European Parliament. Despite sanctions, EU countries still imported €23 billion worth of Russian energy in 2024—more than the total military aid sent to Ukraine.
Ursula von der Leyen (source: European Parliament)
According to von der Leyen, Russian gas imports are not only a security risk but also harm the economy. Yet earlier this year, the German industrial sector called for a full return to Russian gas once peace is restored. Germany’s industry, built on cheap Russian energy, is now suffering from slower growth and companies relocating production due to high energy costs.
Talks between Washington and Moscow reportedly include the future of the Nord Stream pipelines. Like German industry, Russia seems open to fully resuming gas trade. “Maybe the Americans will pressure Europe into letting Russian gas flow again,” said Russian Foreign Minister Sergei Lavrov. But von der Leyen warned that a return to Russian fossil fuels would be “a mistake of historic proportions.”
Von der Leyen did not clearly explain how cheap Russian gas would supposedly harm the European economy. Still, the Commission is pushing for a 2027 deadline by which all EU companies must terminate their remaining energy contracts with Russia and switch to alternative sources—such as more expensive U.S. LNG. In practice, this amounts to a de facto ban on Russian gas, enabling companies to invoke force majeure to exit existing supply contracts.
The proposal still requires approval from the European Parliament and a majority of member states, but was carefully drafted to bypass the need for unanimity. Hungary and Slovakia have already announced they will veto any new sanctions on Russian gas. Both are heavily dependent on it and argue that the plan will erode the EU’s competitiveness.
Last week, Frank Knopers commented that the will of the (unelected) von der Leyen is increasingly becoming law, warning that countries like Hungary may distance themselves further from Brussels. Hungarian Prime Minister Viktor Orbán, however, emphasized that his aim is not to leave the EU, but to reform it—and ultimately take power in Brussels with his patriotic movement.
(Source: Viktor Orbán)
Unlike Hungary and Slovakia, the Netherlands and Belgium have expressed support for the plan. Yet an EU diplomat admitted it will be hard to prevent companies from circumventing the rules. For example, gas delivered via the TurkStream pipeline from Azerbaijan reportedly includes Russian-origin gas. The plan may also serve to signal to Washington that the EU is willing to buy more American LNG as part of a broader trade deal to reduce the transatlantic deficit.
One thing is clear: European industry is under increasing strain. Affordable and reliable energy is the foundation of any strong economy—but in Europe, that now seems out of reach. U.S. gas is more expensive, and electricity supply faces growing instability. Last week, we covered the blackout on the Iberian Peninsula, which pointed to issues with the energy transition.
source: Bjorn Lomborg
As Bjorn Lomborg explained in the New York Post, renewable energy is only cheap when the sun shines and the wind blows. The more countries rely on it, the more electricity costs rise. Modern societies need 24/7 power, which means green energy must be backed up—usually by fossil fuels. As a result, we end up paying for two energy systems. Massive grid investments are needed, and backup plants have to recover costs despite running fewer hours, which drives up prices per kilowatt-hour. In short: the real costs of solar and wind are much higher than often claimed. Perhaps nuclear energy can eventually form the backbone of Europe’s supply—but until then, production in Europe will remain less competitive.
And energy is just one piece of the puzzle. Regulatory pressure from Brussels is also weighing on companies. In an interview with Le Figaro, the CEOs of Renault and Stellantis warned that cars are becoming unaffordable due to excessive regulation. Between 2015 and 2030, the price of a Renault Clio will have risen by 40%, 92.5% of which is due to regulation. They are calling for simplification, but whether Brussels will listen is doubtful.
Under von der Leyen, the EU seems more focused on expanding its power and resources. Negotiations on the next multi-year EU budget have already sparked debate. According to De Telegraaf, Brussels is suffering from chronic “money hunger.” Member states are expected to contribute more, and the EU even wants to start levying its own taxes.
Dutch MEP Dirk Gotink (NSC) is disappointed: “No tough choices are being made. Reforms are absent. Debt is rising.” Economist Lex Hoogduin agrees, warning of the ‘Latinization’ of Europe.
Auke Zijlstra (PVV) also criticized the budget: “The EU wants to spend money on all kinds of nonsensical projects that bring no benefit to our citizens.”
One of the main reasons Brussels needs more money is the €800+ billion corona recovery fund. This week, a scathing report on the fund revealed that billions are unaccounted for. Many projects received funding without clear evidence they will ever be completed.
This isn’t news to everyone—journalists like Arno Wellens and former MEP Michiel Hoogeveen warned about this years ago. Arno now notes that Dutch taxes will have to rise in 2027 to repay the EU’s Covid debt.
Clearly, there's no shortage of drama in Brussels. And we haven’t even touched on the shady subsidizing of NGOs. Stay tuned to our articles and podcast—we’ll continue to follow it closely.
You may have heard that legendary investor Warren Buffett, now 94, is stepping down as CEO of Berkshire Hathaway after six decades. Greg Abel will take over by the end of the year. Buffett made the announcement during the company’s 4.5-hour shareholder meeting—so you may have missed one remarkable quote.
Buffett expressed concern over the future of the dollar, saying he fears it is “going to hell.” He was referring to the loss of purchasing power and what he sees as governments’ natural tendency to debase their currencies over time. He predicted continued pressure toward weaker currencies.
As Dutch investor Willem Middelkoop noted: “Buffett tells it like it is—and sounds like a gold bug.”
