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PSIQUANTUM has achieved a significant milestone in manufacturing photonic quantum chips at scale, addressing major hardware challenges in quantum computing. Meanwhile, India and the EU have strengthened their collaboration on AI, digital governance, and semiconductor ecosystems, committing to enhance digital cooperation, promote ethical AI, and ensure supply chain resilience. They also agreed to work on interoperability of Digital Public Infrastructures and bridge the digital skills gap through talent exchange initiatives.
Warren Buffett has criticized the imposition of tariffs by the Trump administration, labeling it "an act of war." The U.S. has enacted a 25% tariff on imports from Canada and Mexico, while increasing tariffs on Chinese goods from 10% to 20%, raising concerns about rising prices for consumers and the potential for a trade war. China has already retaliated, and the European Union is considering reciprocal tariffs.
Elon Musk and several Republican lawmakers have expressed support for the U.S. withdrawal from NATO and the United Nations, citing concerns over America's contributions versus benefits. However, legal hurdles exist, as a 2023 law requires Senate approval for such a move. The repercussions of withdrawal could destabilize Europe, diminish U.S. global influence, and empower adversaries like China.
European defense stocks, including Leonardo, Thales, and Rheinmetall, surged following a summit emphasizing increased defense spending amid rising geopolitical tensions. European leaders are motivated to enhance their military capabilities independently, especially after a contentious meeting between U.S. and Ukrainian leaders. The bullish trend in defense stocks is expected to continue, with Leonardo reaching an all-time high, although short-term corrections may occur ahead of the upcoming European Council meeting on March 6.
EU Commission President Ursula von der Leyen aims to simplify bureaucracy in her second term, focusing on a stable agricultural framework and a flourishing bioeconomy to enhance industrial resilience against climate challenges. The Commission plans to reduce administrative burdens by at least 25%, with a 35% target for SMEs, while promoting digitalization and sustainable water management. Member states are urged to avoid excessive national regulations beyond EU requirements.
US President Trump has imposed a 25% tariff on steel and aluminum imports, prompting countermeasures from the EU. While the currency market showed little reaction, gold prices surged amid rising fears of financial turmoil. Asian markets remained cautious, with expectations of a trade agreement between the US and China still high.
Europe faces a precarious future as demands for increased military spending threaten social stability, while the influence of the US looms large. The region is in chaos, with rising discontent towards elites and a potential loss of sovereignty, as economic and political challenges mount. The EU's stability is questioned amid financial strains, and the prospect of a new geopolitical order led by figures like Trump and Musk raises concerns about Europe's role on the global stage.
Switzerland faces increasing pressure as EU Commission President Ursula von der Leyen emphasizes the importance of strong partnerships amid geopolitical tensions. During her visit to Bern, she highlighted the interconnectedness of Switzerland and the EU, stating, "We share one continent, our Europe."
On December 20, 2024, Switzerland's Federal Council approved a framework agreement with the EU without fully understanding its content, raising concerns about a significant imbalance in rights and obligations. The treaty requires Switzerland to adopt EU law continuously and pay CHF 350 million annually, while Swiss industries face limited access to the internal market. Critics argue this submission to EU oversight reflects a troubling trend of semi-colonization, exacerbated by a history of misinformation from Swiss officials regarding the EU's legal authority.
Donald Trump demands NATO countries increase military spending to 5% of GDP, while the EU faces rising debt and discontent among its member states. Switzerland, thriving through various industries, resists EU integration, with political leaders struggling to gain public support for a contentious treaty that may face significant opposition in upcoming elections.
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