Sunday, October 26, 2025

Polaris of Enlightenment

EU and US reach agreement on tariffs and energy cooperation

Published July 28, 2025
– By Editorial Staff
Ursula von der Leyen and Donald Trump in connection with yesterday's press conference.

The EU and US have reached agreement on a comprehensive trade deal that involves 15 percent American import tariffs on the majority of EU goods. The agreement marks an important step toward stability and predictability in transatlantic trade.

After months of tense negotiations, a new trade agreement between the EU and US was announced yesterday.

The agreement means that the US will impose a general tariff rate of 15 percent on the majority of EU exports to the US, including products from the automotive industry. Exceptions are made for steel and aluminum, which continue to be regulated under separate quota systems.

European Commission President Ursula von der Leyen and US President Donald Trump presented the agreement after meetings in Scotland, where they described it as "all inclusive" and a breakthrough that creates stability in an uncertain global economic situation.

I think this is the biggest deal ever made, Trump said during a press conference celebrating the agreement.

The agreement also includes significant energy cooperation where the EU commits to investing in and purchasing American energy worth $750 billion.

European Commission President Ursula von der Leyen commented on the agreement in positive terms: – We have a trade deal between the two largest economies in the world, and it's a big deal. It's a huge deal. It will bring stability. It will bring predictability.

Agreement faces criticism: "Unbalanced"

Additionally, the EU plans to make investments of $600 billion in the US over a longer period. This includes liquefied natural gas (LNG), oil and nuclear fuel, which is seen as part of the EU's ambition to reduce dependence on Russian energy.

The trade agreement further includes tariff-free trade on selected strategic products such as aircraft, aircraft parts, semiconductors and certain chemicals, which is expected to benefit both parties' industrial sectors. However, some uncertainty remains regarding tariff rates on certain agricultural products and beverages.

The agreement averts a looming tariff conflict where the US had previously threatened up to 50 percent import tariffs on European goods, a level that was later reduced to 30 percent before the final agreement was reached.

Many in Europe still consider the baseline level of 15 percent too high, particularly in light of original hopes for a zero-to-zero agreement.

Criticism also comes against what many consider a worse deal for EU member states compared to the agreement concluded between the US and the UK – a UK that moreover stands outside the EU.

Bernd Lange, a German Social Democrat and chair of the European Parliament's trade committee, sees the tariffs as "unbalanced". He warns that the extensive EU investments now directed toward the US will likely come at the expense of the EU itself.

European companies largely welcome the agreement, which is expected to contribute to increased trade and investment across the Atlantic, while the agreement signals new opportunities for cooperation in energy and technology.

Fact box: WTO, tariffs and trade conflicts

  • WTO's role: The World Trade Organization (WTO) regulates international trade and aims to minimize tariffs and other trade barriers between member countries.
  • Tariffs: Taxes on imported goods that affect prices and competitiveness. High tariffs can reduce trade and lead to negative economic effects globally.
  • Trade wars: Escalated tariff increases between countries, which the US and EU came close to initiating, can damage exports and imports, worsen relations and create market uncertainty.
  • Economic effects: Stability and low tariffs promote investment and growth. The agreement between the EU and US is expected to reduce the risk of trade tensions and enable long-term planning for companies on both sides.
  • Energy and geopolitics: The energy component of the agreement is linked to Europe's energy transition and its ambition to reduce dependence on Russian gas and oil through American energy sources.

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Climate alarmist Al Gore takes over struggling Stegra

The exaggerated climate crisis

Published October 23, 2025
– By Editorial Staff
The Stegra factory outside Boden, Sweden is severely delayed and facing an acute financial crisis.

The crisis deepens for Swedish-based steel company Stegra as financier Harald Mix steps down from the chairman position and his investment company Vargas Holding withdraws.The new largest owner will instead be Just Climate, a subsidiary of notorious climate activist Al Gore's environmental investment firm.

This despite the company not yet having started production and facing the risk of running out of cash within a few months

Stegra's largest owner Vargas Holding is now leaving the "climate-smart steel" project following Harald Mix's departure as board chairman. Instead, Just Climate is stepping in as the new principal owner, according to reports to Schibsted-owned Svenska Dagbladet.

Just Climate is an investment company founded by prominent activist Al Gore, and belongs to the asset management firm Generation Investment Management. Since its launch in 2021, the company has attracted approximately €1.3 billion from investors for climate projects, with Stegra being one of them.

Harald Mix will be replaced by Shaun Kingsbury, who according to reports will become the new board chairman for Stegra. However, Mix will continue to work with and advocate for the project.

— My confidence in the company remains unshaken and I will continue to support the company financially as an investor and in my work as an active board member, Harald Mix stated to Dagens Industri.

Al Gore at a World Economic Forum meeting in 2020. Photo: World Economic Forum/CC BY-NC-SA 2.0

Large pension funds behind the fund

Among the investors in Just Climate are two Swedish state-owned AP funds, Second AP Fund and Fourth AP Fund, which together manage tens of billions of euros in pension assets.

The funds' investment in Just Climate is currently estimated at approximately €55 million – a relatively modest amount compared to their total capital, but still a source of concern as the project finds itself in deep crisis.

The fact that Swedish pension money has once again been invested in a high-risk project has sparked reactions, not least after the Northvolt fiasco – a corporate collapse that cost Swedish taxpayers billions.

Financial crisis and comparison with Northvolt

Stegra has not yet begun production of fossil-free steel at the factory to be built in Boden, northern Sweden. The production start is currently postponed until the turn of 2026/2027, while both costs and debts have skyrocketed.

According to reports from Financial Times, Stegra is burning through approximately €270 million per month and risks running out of money within two months unless credit facilities are granted. Major bank Citigroup has reportedly also withdrawn from the financing.

The crisis at Stegra has been compared to the bankruptcy of battery manufacturer Northvolt earlier this year, and a source with insight says: — This is starting to look more and more like Northvolt. It's hard to see anything other than investments being written off.

If the project collapses, Swedish pension savers risk major losses once again. Among others, AMF Pension (a major Swedish pension fund) has invested €165 million in the company, and Third AP Fund is involved as an investor through private equity firm Altor – founded by Mix and Stegra's second-largest owner.

Al Gore – politician, activist and businessman

Al Gore, born March 31, 1948 in Washington D.C., served as US Vice President under Bill Clinton from 1993 to 2001. After the controversial 2000 presidential election, he devoted himself entirely to climate issues. The documentary An Inconvenient Truth (2006) made him a global climate alarmist figure, and in 2007 he shared the Nobel Peace Prize with the UN's climate panel, the IPCC.

Parallel to his activism, Gore has built up significant economic interests. He is co-founder of Generation Investment Management, a London-based investment firm focused on "sustainability", and its subsidiary Just Climate, now the largest owner in Stegra, has raised billions of euros from institutional investors, including Swedish pension funds.

Critics question whether Gore's economic involvement undermines the credibility of his activism, while supporters argue that investments in sustainable companies are necessary for the so-called green transition.

Gore is also founder of The Climate Reality Project, which works with opinion formation and education on environmental and climate issues globally. At the same time, he has established close connections to international power networks, including the World Economic Forum and other influential global economic and political platforms. This strengthens his influence, but has also raised questions about how close cooperation with major economic and political interests actually affects his role as an activist and opinion leader.

China surpasses US as Germany’s largest trading partner

The new multipolar world order

Published October 23, 2025
– By Editorial Staff
Terminal Wharf in Bremerhaven, Germany, is one of Europe's largest and most significant ports.

Trump's tariffs have reversed trade patterns. China has now overtaken the US as Germany's most important trading partner – just one year after losing the top position.

China has reclaimed first place as Germany's largest trading partner. During the first eight months of the year, trade with China reached €163.4 billion, compared to €162.8 billion for the US, according to preliminary figures from the German statistical office, reports Reuters.

It's a rapid reversal. The US was Germany's largest trading partner in 2024, breaking an eight-year period of Chinese dominance. The shift came as Germany actively tried to reduce its dependence on China, citing political differences and unfair trade practices.

But Donald Trump's return to the White House and renewed tariffs have changed the dynamics.

Tariffs hit hard

German exports to the US fell by 7.4 percent during the first eight months of the year to €99.6 billion. In August, exports dropped by as much as 23.5 percent compared to the previous year.

There is no question that US tariff and trade policy is an important reason for the decline in sales, says Dirk Jandura, chairman of the German Association for Foreign Trade (BGA).

He notes that American demand for classic German export goods such as cars, machinery and chemicals has decreased.

Chinese imports increase

While exports to China fell by 13.5 percent, imports from China increased by 8.3 percent to €108.8 billion.

The renewed import boom from China is worrying, says Carsten Brzeski, global head of macroeconomics at ING. Particularly as data shows that these imports come at dumping prices.

He warns that this increases Germany's dependence on China and could put additional pressure on key industries where China has become a major competitor.

The risk became too great: Swedish companies abandon low-cost countries

Published October 21, 2025
– By Editorial Staff
The moving trucks are heading home. Companies like Ecoride in Gothenburg, Sweden, have brought production back after years in China and Poland.

Geopolitical uncertainty and rising protectionism are prompting Swedish companies to reconsider their foreign operations. After decades of outsourcing to low-cost countries, the trend is now reversing – an increasing number are choosing to relocate production back to Sweden.

Electric bicycle manufacturer Ecoride in Gothenburg, Sweden, is a clear example. After years of production in China and Poland, operations are now consolidated in a factory in Arendal outside Gothenburg.

According to Jan Olhager, professor of strategic production logistics at Lund University in southern Sweden, this development is no coincidence.

— Overall, there are now more reasons to relocate home than before. Not least, geopolitical risks have become a factor of increasing importance when companies decide where to base their manufacturing, he says.

Covid became turning point

Jan Olhager, together with Nordic researchers, has mapped Swedish companies' relocation patterns. The results show clear differences before and after the pandemic. Until 2015, more companies relocated abroad than returned home, but the trend has reversed.

— During the pandemic, companies discovered the risks of having manufacturing far from their home market. Quality problems, delayed shipments, inventory shortages, and soaring transport costs created major problems, Jan Olhager explains.

A recurring pattern is that foreign establishments often become more expensive than calculated. Hidden costs are systematically underestimated, and quality problems ultimately drive many companies to return.

— In the long run, quality is the primary driver for a manufacturing company, Olhager notes.

"Getting closer to retailers and end customers"

Geopolitical tensions have made risk assessments central, while protectionism is growing globally. To offer competitive prices, companies today need to have almost their entire supply chain in the country or region where they operate.

Martin Walleräng, CEO of Ecoride, established an assembly plant in China in 2012, but was forced to relocate to Poland in 2018 when the EU imposed high tariffs on electric bicycles. Just over two years ago, the company moved back home to Arendal.

— Consolidating operations under one roof has created a number of advantages. Everything from product development to building a common corporate culture has been facilitated. Another important advantage is that we get closer to our retailers and end customers, says Martin Walleräng.

AI boom strengthens the Swedish krona

The future of AI

Published October 17, 2025
– By Editorial Staff
The Swedish krona is the strongest European currency against the weak dollar so far this year.

The investment boom in artificial intelligence is beginning to make its mark on European currency markets for the first time, and according to analysts, the Swedish krona and the British pound are benefiting the most.

The United Kingdom and Sweden each received over $4 billion in private AI investments last year, placing them third and fourth respectively in the Stanford University AI Index of countries benefiting most from such investments, after the United States and China.

The Swedish krona is the strongest European currency against the weak dollar so far this year, with a rise of nearly 15%. The pound has risen 7%, reports Reuters.

Major American tech companies such as Microsoft, Meta, Google and Nvidia have announced significant investments in both countries. Microsoft has pledged £31 billion in British investments, while several tech companies are planning data centers in Sweden due to the country's reliable electricity supply.

According to JPMorgan, the resilience of the Swedish krona and the pound can partly be explained by these countries' standout performance in AI investments, although the effect remains relatively small so far.

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