Sunday, July 6, 2025

Polaris of Enlightenment

European Central Bank President: “The sanctions failed”

The new cold war

Published 25 March 2023
– By Editorial Staff
ECB President Christine Lagarde also has a background as French Finance Minister.
4 minute read

When European Central Bank President Christine Lagarde thinks she is talking to Ukrainian President Volodymyr Zelenskyj, she talks openly about how European price inflation is expected to keep rising, about plans to introduce a digital euro, that sanctions against Russia have not had the desired effect and that the EU will do “everything in its power” to help Ukraine win the war against Russia.

She also finds time to praise the leadership of the Russian central bank, explaining how it has made it increasingly difficult for EU citizens to trade in cash, and expresses concern that private players such as Google, Meta and Amazon will create currencies that will displace the euro.

Russian comedians Vovan and Lexus have made a name for themselves by prank-calling government officials, often pretending to be real influential people of various kinds. Past pranks include Turkish President Recep Tayyip Erdogan, Republican politician John McCain, Britain’s Prince Harry and Polish President Andrzej Duda.

This time they pretend to be Ukrainian President Volodymyr Zelenskyj while phoning Christine Lagarde – former Director of the International Monetary Fund (IMF) and now President of the European Central Bank (ECB).

The “fake” Zelenskyj says he is worried about the economic situation in Europe and the ECB chief admits that the situation is undeniably dark.

We are seeing prices that have initially gone up only in the area of energy and then gradually through fertilizers, in particular, to food, and now on a much broader basis. So the inflation that we had hoped would be transitory has continued much longer than thought and at a much higher level than expected.

That’s why, says Lagarde, all central banks and the ECB have started raising the interest rate, which until recently was negative but now stands at around 2% by default.

– We have growth that is low, we have prices that are too high that we have to bring down.

Praises chairwoman of Russia’s central bank

Ms Lagarde goes on to praise Elvira Nabiullina, the head of the Russian Central Bank, saying she “very quickly understood what the situation was” and that her raising the interest rates prevented shocking Russian inflation and encouraged investors to keep their money in Russia.

– She did a magnificent job, I have no hesitation to say that.

However, Lagarde says that the West’s sanctions against Russia are “biting” but not as much as previously expected.

– They still manage to sell a lot of their energy, whether it is oil or it is gas, to other countries than those countries that apply the sanctions, and certainly outside of the European Union, she continues, identifying India and China as two important trading partners for Russia.

Mr Lagarde also welcomed the expansion of sanctions against Russia and said that the upcoming G20 meeting could be a good opportunity to remind non-Western leaders of their “duty to promote stability and peace”.

Inflation of seven per cent – or more

The ECB President further notes that the European countries closest to Russia geographically are also the ones most affected by the economic crisis – partly because of the threat to geopolitical stability, but also because they have a history of close trade cooperation with Russia.

As for price inflation in the Eurozone, Lagarde points out that official forecasts suggest it will be around seven per cent in 2023 and possibly even higher.

– What I do know is that interest rates will inevitably continue to rise, she points out, but cannot say by how much.

– The only thing I can tell you is that it needs to go higher than where we are at the moment, because otherwise we will not manage to tame inflation.

Christine Lagarde further declares that in a way she sees it as “irrelevant” who wins and loses from the economic crisis as long as Ukraine wins the war against Russia.

– I take the very simple view that those who have the biggest gun at the end of the day win. This is a very stupid basic wild-west cowboy principle. It is the case at the moment that the biggest military power in the world is the United States. So the United States is supplying the biggest shipments of weapons, is providing a very large amount of funding. And that’s the reality that we deal with.

– It’s you who have to win, and we have to make every effort we can to support you.

Explains how they have made the use of cash more difficult.

The former IMF chief also talks about plans to introduce a digital euro (CBDC), arguing that it would make Europe less dependent on the currencies of “hostile countries”, pointing in particular to Russia and China as countries to distance the EU from. She also expresses concern about private actors launching their own e-currencies, thereby reducing the EU’s economic control.

I don’t want Meta, Google or Amazon to suddenly come up with a currency that will take over the sovereingty of Europe. I don’t want a foreign currency to become the currency of trading within Europe. So we have to be ready.

Lagarde also explains how it has become more difficult for EU citizens to pay large sums in cash and says that the new system she envisages will have a “limited amount of control”, possibly opening the door to smaller purchases and transfers not being controlled and tracked by the central government.

But that could be dangerous. The terrorist attacks on France back 10 years ago were entirely financed by those very small anonymous credit cards that you can recharge in total anonymity, she continues.

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Slovakia urges West to engage in dialogue with Russia

The new cold war

Published 2 July 2025
– By Editorial Staff
Slovak Deputy Prime Minister Juraj Blanar believes that Western leaders must use diplomacy and dialogue to end the war.
2 minute read

Slovakia’s Foreign Minister Juraj Blanar believes that the war in Ukraine cannot be decided on the battlefield. Instead, he urges the Western world to seek a peaceful solution through direct dialogue with Russia – and warns that continued tensions could lead to a catastrophic large-scale war between NATO and Moscow.

– We do not want a war between Russia and NATO to break out, because that would be the Third World War. We want the conflict to be settled peacefully, Blanar said during a discussion program on Slovak public broadcaster STVR last Sunday.

Blanar emphasized the importance of diplomacy and called for a return to “respect for international law”. He also suggested that the Western world should seek ways to renew contact with Moscow – “and perhaps even forgive everything that has happened”.

Slovakia, like Hungary, has consistently pushed for de-escalation of the conflict and opposed additional EU sanctions against Russia.

The country’s president Peter Pellegrini has also urged EU member states to resume direct talks with Moscow and has simultaneously rejected demands for rapid military buildup within NATO, arguing that defense spending should reflect each country’s own priorities – rather than concerns about Russia.

Russia demands Ukrainian neutrality

Russian officials have condemned the US-led bloc’s decision last week that member countries should raise their defense budgets to 5 percent of GDP – a measure that NATO says will deter the “long-term threat posed by Russia to Euro-Atlantic security”.

The Kremlin has repeatedly stated that it has no intentions of attacking any NATO country and has called the accusations “nonsense” – a scare tactic that, according to Moscow, is used by the West to legitimize increased defense spending.

Moscow states that it seeks a diplomatic solution to the Ukraine war, and Russian President Vladimir Putin has said that a lasting agreement must include recognition of the actual situation “on the ground”, as well as Ukrainian neutrality.

According to Putin, contacts between Moscow and Kyiv are being maintained regarding a possible third round of peace negotiations. Previous talks have been held in Turkey, where the parties have exchanged draft peace proposals and carried out several prisoner exchanges.

Peace activist urges NATO–Russia cooperation over toxic munitions on Baltic Sea floor

The new cold war

Published 1 July 2025
– By Editorial Staff
Approximately 40 tons of hazardous chemical warfare agents lie scattered on the bottom of the Baltic Sea, according to experts.
2 minute read

An estimated 1.6 million tons of World War II ammunition still lies at the bottom of the North Sea and Baltic Sea.

According to experts, this not only poses a security threat but also a growing environmental risk – and removal should be done through international cooperation rather than individual initiatives.

The majority of the ammunition, primarily left behind by Nazi Germany, consists of conventional shells. However, about 40 tons contain dangerous chemical warfare agents, including mustard gas and phosgene. After decades underwater, many of the containers have begun to corrode, posing a threat to the marine ecosystem and potentially to coastal areas.

– The question was how to deal with the recovery of these poison time bombs for the biosphere of the Baltic Sea. Of course, due to the corrosion of these vessels, there is a danger for the fish and the plants, and other countries, says German publicist and peace activist Bernhard Trautvetter in an interview with RT.

He emphasizes that the responsibility cannot lie with a single country and that NATO countries in the Baltic region, as well as Russia, which has access to these waters through its exclave of Kaliningrad and the St. Petersburg area, must join forces to “pull this time bomb out of the world”.

German pilot project

Germany launched a pilot project in 2023 to salvage the ammunition, conducting work in the Bay of Lübeck, with the first phase completed in April this year. The authorities described the project as a success but acknowledged that further technical adaptations are needed in areas where ammunition concentrations are particularly high.

The initiative has simultaneously raised concerns among environmental organizations, researchers, and neighboring countries about how the recovery affects the marine environment, especially if conducted without cross-border coordination.

Russia has long expressed concern about the chemical legacy of the war and has repeatedly called for an international effort to clear the seabed of war materials. In practice, however, Russia has been kept out of the efforts made so far, largely due to the deteriorated security situation and the frosty relationship with the West following the initiation of the war in Ukraine.

Soaring weapons prices risk consuming Sweden’s NATO buildup

The new cold war

Published 30 June 2025
– By Editorial Staff
It remains unclear how much weapons and equipment Sweden's multi-billion investment in defense will actually cover in the end.
3 minute read

Sweden is building up its military like never before – but it’s far from certain that the investments will have the desired effect. Weapons manufacturers’ prices for arms and ammunition have soared, and a large part of the military build-up risks being consumed by increased costs.

– Then we won’t become more dangerous to the adversary, emphasizes Vice Admiral Ewa Skoog Haslum, Chief of Joint Operations at the Swedish Armed Forces.

According to the Swedish Armed Forces, the war in Ukraine has shown how quickly ammunition and weapon systems are consumed in modern conflicts, and Sweden’s own stockpiles are dimensioned for training and deterrence – not for prolonged combat.

– When it comes to ammunition, we may not have bought as much as we would need in actual combat. Instead, we’ve bought what we think we need for training and maintaining sufficient deterrence, Skoog Haslum tells TT news agency.

To meet the threat, stockpiles must be built up, and Swedish defense industry must be able to quickly scale up production if war breaks out.

Defense industry positive about closer collaboration

The development of new weapons is also accelerating. In Ukraine, for example, new weapon systems, such as marine drones, have been met with countermeasures within just four to six weeks. In Sweden, however, it can take years – sometimes decades – from order to delivery.

To shorten lead times, the Swedish Armed Forces wants to test unfinished products directly in exercises, in close collaboration with the defense industry.

– I believe we’ll become better as Armed Forces, but I also think the industry would develop faster, the Vice Admiral continues.

Defense industry representatives are positive, and Lena Gillström, CEO of Swedish defense company BAE Systems Bofors and chairperson of the Security and Defense Companies Association, sees great benefits in reducing the distance between users and developers.

– By maintaining close dialogue with those who use the systems, we can also see which problems need to be solved. I believe this will be crucial for achieving speed in the system, she says.

She is prepared to send company engineers to exercises to adjust gun turrets and artillery systems in the field – something that currently happens very rarely.

Swedish Parliament wants to borrow €27 billion

As more countries build up their military, the demand for both weapons and ammunition increases – and consequently, prices rise. Ewa Skoog Haslum sees a clear risk that the increased defense allocations won’t translate into actual combat power.

– Absolutely, it’s a risk, and then we won’t get more capability for the Armed Forces. Then we won’t become more dangerous to the adversary, instead we’ll have spent the money on more expensive items, she explains.

The defense budget for 2025 amounts to 143 billion SEK (€13 billion) – a ten percent increase compared to the previous year. This corresponds to 2.4 percent of GDP according to NATO’s calculation model. But to reach NATO’s new goals – 3.5 percent for military defense plus 1.5 percent for civil defense – an additional 70 billion SEK (€6.2 billion) per year is required.

The Swedish Parliament is prepared to borrow up to 300 billion SEK (€27 billion) to accelerate the military build-up and reach the goals by 2032. Of this amount, 50 billion SEK (€4.5 billion) is earmarked for civil defense.

Denmark signs defense pact enabling US military presence in Greenland and Faroe Islands

The new cold war

Published 12 June 2025
– By Editorial Staff
Denmark's Prime Minister Mette Frederiksen looks forward to enhanced cooperation with the US.
3 minute read

The Danish Parliament has voted through an agreement granting the US access to Danish military bases – including military infrastructure in the autonomous regions of Greenland and the Faroe Islands. Critics warn of a slide in Danish sovereignty, while the government describes the agreement as a necessary step.

With a broad majority – 94 votes in favor and 11 against – the Danish parliament this week adopted a new defense agreement with the US. The agreement gives US forces the right to use several military facilities on Danish soil, including Karup, Skrydstrup, and Aalborg, as well as access to areas in the Faroe Islands and Greenland.

According to the Danish government, the agreement aims to strengthen Denmark’s cooperation with the US within the framework of NATO. Defense Minister Troels Lund Poulsen emphasizes that the agreement does not imply a permanent troop presence, but rather logistical capabilities and operational flexibility.

The Ministry of Defense emphasizes that the US military presence is seen as a way to be ready to respond quickly to crises in the Arctic and North Atlantic – areas that have become more important militarily as the security situation has changed.

The agreement has also attracted criticism from several quarters. Particularly controversial is the clause stipulating that US military personnel will be subject to US jurisdiction, even if they commit crimes against civilians in Denmark. Several opposition politicians have pointed out that this undermines the rule of law and goes against Danish legal tradition.

Shortly before the vote, the leader of the Unity List, Pelle Dragsted, said that the agreement is “harmful to the country”.

It is an agreement that means that we will have areas in Denmark that are under American jurisdiction. Where Danish authorities cannot exercise control. And where mistreatment of prisoners can occur. It is a gigantic failure towards the Danish population.

With the country’s new DCA agreement with the US, Danish soldiers can expect to see a significant increase in the American presence in Denmark. Photo: 7th Army Training Command/CC BY 2.0

Superpower logic guides decisions

Others believe that the agreement represents a step toward Denmark effectively ceding parts of its territory to a foreign power.

Greenland and the Faroe Islands, both of which have extensive self-government, have been formally informed of the agreement, but neither the Faroese Lagting nor the Greenlandic Inatsisartut have had the right to block the decision. This has led to further criticism, as many see it as Copenhagen bypassing local interests in favor of superpower logic.

In the background is also the geopolitical shift underway in the Arctic, where Russia, China, and the US are all trying to strengthen their positions. The US has previously shown interest in Greenland not least after Donald Trump’s much-publicized proposal to buy the island and considers it to be of strategic importance for surveillance and control of the North Atlantic.

The Danish government sees the agreement as a necessary adaptation to a new reality.

– The problem is not too much involvement from the US in Europe. On the contrary, the risk is that the US will withdraw and move troops away or stop donations to Ukraine, Prime Minister Mette Frederiksen said earlier this week.

At the same time, there are growing concerns that Denmark is also making itself more vulnerable both politically and militarily in the event of a future conflict between major powers.

The Folketing’s decision therefore marks not only a deepening of cooperation with the US, but also a change in Denmark’s attitude toward military alliances and sovereignty—a choice that is far from comfortable for all Danes.

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