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Memory Shortage Fears Spread, Raising Alarm At Qualcomm And Arm

Memory Shortage Fears Spread, Raising Alarm At Qualcomm And Arm

Consumers are about to learn that one of the most frustrating side effects of the AI boom will be the "great memory crunch." Surging data center demand is siphoning high-bandwidth memory (HBM) supply away from consumer devices, setting the stage for slower growth across the electronics industry this year.

We have been vocal about this HBM crunch, even citing industry insiders who say shortages are only set intensify. "If you want to buy any consumer goods, PCs, or smartphones ... do it now," one industry insider told Nikkei Asia last week. Read the report here.

On Wednesday, Qualcomm and Arm Holdings also confirmed that the HBM shortage will cap smartphone production and slow near-term growth.

For context, Qualcomm is the largest maker of smartphone processors, and Arm derives much of its revenue from royalties on technology used in the industry.

"Industrywide, memory shortages and price increases are likely to define the overall scale of the handset industry," Qualcomm CEO Cristiano Amon told Wall Street analysts on an earnings call.

Amon warned that Chinese customers have already said they'll build fewer handsets this year because of this emerging crunch.

Last week, Goldman analyst William Chan warned clients:

Memory shortage is real and accelerating due to the AI infra demand, leaving a significant shortage for the conventional side of the industry, think smartphones, PCs and other consumer electronics which require high-bandwidth memory:

Micron Technology Inc. said an ongoing memory chip shortage has accelerated over the past quarter and will last beyond this year due to a surge in demand for high-end semiconductors required for AI infrastructure.

On Friday, Chinese media outlet Jiemian reported that major Chinese smartphone makers including Xiaomi Corp., Oppo and Shenzhen Transsion Holdings Co. are trimming their shipment targets for 2026 due to rising memory costs, with Oppo cutting its forecast by as much as 20%. All three did not respond to requests for comment.

Nintendo emerged as an early casualty of surging memory costs. The company's shares have sagged as rising component prices, especially HBM, are set to dent margins. Goldman analysts first warned about Nintendo's HBM woes in late December (read here).

Other companies have warned about the memory crunch. Chipmaker MediaTek told analysts in a call this week that the situation is "evolving."

Intel CEO Lip-Bu Tan warned the shortages could persist for years: "There's no relief as far as I know."

Also, Goldman's Allen Chang recently had to lower his global PC shipment forecasts for 2026-2028 due to the memory crunch.

A look at the Amazon price-tracking site CamelCamelCamel shows a parabolic surge in the price of Crucial Pro DDR5 64GB RAM, which has jumped from $145 to $790 in just six months.

TrendForce expects 70% of high-end memory chips produced this year will be consumed by data centers.

Professional subscribers can learn more about the memory industry on our new Marketdesk.ai portal​​​​.

Tyler Durden Thu, 02/05/2026 - 07:45

What Goes Around: The EU's Extralegal Sanctions Regime

What Goes Around: The EU's Extralegal Sanctions Regime

Submitted by Pascal Lottaz

It has come as a shock to many of us in the alternative media sphere when, on December 15, the EU put the esteemed analyst, political commentator, and former Swiss Army colonel Jacques Baud, on its Russia-Sanctions list. He was one of several newly sanctioned individuals (alongside, for instance, the popular French journalist, Xavier Moreau). Baud is already the second Swiss to be sanctioned. In June 2025, the EU announced that Nathalie Yamb, a Swiss-Cameroonian activist against neocolonialism, would be sanctioned.

Being on the EU sanctions list is a devastating event for the people concerned, especially if they reside in an EU country or a closely associated state like Switzerland, Norway, or the UK. It means banks will freeze their accounts, credit companies will cancel their cards, they are not allowed to enter into contracts with EU-affiliated companies or private persons, and no business in the EU is allowed to have dealings with them, which, in theory, even precludes them from buying bread and other necessities of life. Furthermore, many international businesses will cancel all their services to them, including mail providers, social media platforms, etc. Even Swiss banks freeze or cancel accounts, out of fear they might get in trouble if they don’t comply with EU regulations. I recently interviewed two sanctioned people, Nathalie Yamb and Hüsseyin Dogru, and their testimonies are heartbreaking. For an equally harrowing account by Jacques Baud, see the most recent interview with him on Nima Alkhorshid’s ‘Dialogue Works’ channel. Nathalie also posted the short video below, in which she gives an overview of the ordeal (post in French, subtitles in English).

Are Sanctions Against EU Citizens and Residents Illegal?

As of early January 2026, there were 59 private individuals on the EU’s Russia sanctions list. Originally, this tool was levied only against Russian businessmen and people living in Russia (which was already problematic in my view), but since 2024, the EU has begun using sanctions as a political sledgehammer to crack down on various forms of dissent. Yamb, for instance, was sanctioned mostly for her activism against France’s neocolonial behavior in Africa, and Dogru for being a vocal German journalist for the Palestinian cause. The little text snippets that serve as justifications for the decision to include them in the sanctions list even mention those non-Russia-related activities for their listing.

Naturally, one would assume that in a free and liberal society, based on the rule of law, sanctions against citizens and residents must be illegal. Right? In fact, the EU parliamentarian Michael von der Schulenburg has commissioned a report that is very clear in its verdict. Sanctions, it holds, break existing EU law on individual freedoms (see my interview with him here).

However, the problem we have is that while sanctions are doubtlessly a breach of some EU law, there is other EU law that allows the Council to take these measures. Procedurally, the EU is not in breach of its competences because sanctions are not a domestic policing matter but a foreign policy decision.

Foreign Policy, For Domestic Purposes

I will not go into the details of the accusations against the sanctioned individuals. That would be beside the point. Whether the reasons given for the sanctions have merit or not is not the issue. The problem everyone should understand is that the accusations don’t need to constitute illegal behavior. There are no laws in the EU or its member states that forbid doing what the people on the Russia-Sanctions list have been doing. On the contrary. Many of the activities, including civil activism (Nathalie Yamb), journalism (Hüsseyin Dogru), or the publication of geopolitical analysis (Jacques Baud) are explicitly protected liberties.

That’s the point. Since the acts committed are not crimes, the sanctions against them are not judicial measures, either. The EU explicitly says so on its sanctions explainer homepage:

Restrictive measures or ‘sanctions’ are an essential tool of the EU’s Common Foreign and Security Policy. They allow the EU to respond to global challenges (sic) and developments that go against its objectives and values.

Decisions on sanctions are taken by the Council of the European Union by unanimity.

EU sanctions are targeted and aim at those responsible for the policies or actions the EU wants to influence. They do not target a country or population.

Sanctions are not punitive (sic) and instead seek to bring about a change in the policy or conduct of those targeted, with a view to promoting the objectives of the EU's Common Foreign and Security Policy.

Great. Isn’t it?

The EU has managed to create a system under which the executive branch is within its legal rights, under its foreign policy arm to designate behavior of its citizens as “undesirable” and then impose the most draconian measures imaginable—all without trial or conviction. Everything Baud, Yamb, Dogru, and others did (and still do) is perfectly legal in the EU. But the Council of the European Union has the power to impose coercive measures on them to “encourage” a change of behavior. And because member states are treaty-bound to implement EU sanctions, there is no recourse to domestic courts for the victims.

What an accomplishment. The EU has sneakily outmaneuvered the legal safeguards of its member states against arbitrary political persecution.

Not illegal. Extralegal.

So, I think this is key to understanding what’s happening: the sanctions are not illegal in the sense of a breach of protocol. They are part of the powers the Lisbon Treaty grants the EU Council, and they have a set and well-defined process behind them. They are legal in a purely formal sense of the word (leaving aside the questions of conflict with other branches of EU law that the von der Schulenburg’s Report raises). What the sanctions do is they create a regime that allows the circumvention of safeguards against political persecution. In this sense, they must be understood as extralegal measures. They create a space for the persecution of people not subject to the legal system as we know it.

That is why all the usual principles of justice do not apply to the sanctions question. Due process, the assumption of innocence, the right to be heard before conviction, etc. All of these fundamental bedrocks of the legal system don’t come into play because the sanctions themselves are not judicial measures.

The only recourse victims of this system have is to appeal to the European Court of Justice (ECJ). But—and here comes a very big but—the ECJ will only check if the sanctions decision is formally consistent. It will not check whether the accusations and the imposed sanctions regime are proportional or infringe on basic rights of the sanctioned individuals. The ECJ will only make sure the rationale given is correct. What this means is that only if the victims can show that the little blurb in the sanctions database is factually incorrect, the ECJ might issue an order for the EU Council to delist them. However, if the accusations are consistent, then the ECJ will uphold the sanctions. Hence, as long as the Council doesn’t lie in the sanctions rationale, more or less anything goes. The ECJ will defer to the EU Council regarding the political importance of sanctioning someone. It does not interfere with the logic of taking sanctions. Sounds incredible, but I talked to a sanctions law scholar, Alexandra Hofer, from the University of Utrecht, and she explains the situation in these terms.

And to make matters worse, even when the ECJ finds that the Council used an incorrect rationale (aka the accusations are lies), the Council, at any time, can simply list the individuals again with an adjusted rationale. Then, the legal circus begins anew for the victims, as they have to bring a new case to the ECJ. This happened, for instance, to Petr Aven and Mikhail Fridman, two Russian businessmen who won their case against the EU Council in 2024, but remain on the sanctions list until today with an adjusted rationale. The EU Council has effectively absolute and infinite power over who gets sanctioned.

Turning the Weapons Inward

I wish I could say that this is the first time a Western institution has pulled such a dirty trick on civil society. But it is not. As Nathalie Yamb, in my interview with her, pointed out, EU countries and the USA have been using sanctions for decades to put extralegal pressure on activists and journalists in Africa and elsewhere. In fact, this is standard neocolonial behavior. This is why we cannot discuss sanctions without addressing Europe’s unresolved colonial mindset.

The USA, too, has been using sanctions as a tool to crack down on legal behavior, for instance, with its attack on personnel from the International Criminal Court (ICC) or, most recently, the sanctions on the UN Special Rapporteur on the occupied Palestinian territories, Francesca Albanese.

Just as the Patriot Act after 9/11, suddenly gave the US government the ability to use security services internally that were meant to protect the nation from external enemies only, the expansion of EU sanctions against people within the EU (or Schengen area) is transforming a dirty foreign policy tool into an even uglier domestic policy tool.

The weapons to fight dirty outside are being turned inward. This is a prime example of why being silent when our states commit crimes overseas will, in the end, come to haunt us domestically. The chickens are coming home to roost. Unfortunately, as always, the first ones to suffer this are the people who fought against the injustices abroad already. Nathalie Yamb being the prime example.

Right now, there are various pundits in the blogosphere and in mainstream media who more or less argue along the lines of “deserves them right, traitors.” These people, too, one day will understand what this system means if it is allowed to foster and grow in its draconian scope. By then, it will be too late. Either this stops now, or the future for freedom and democracy in the EU is bleak.

The right of the sanctioned individuals to appeal to the ECJ is at best a paper-thin fig leaf for the EU to pretend that proper legal recourse is possible. In fact, granting the victims this form of fake access to the ECJ makes it (probably) even harder for them to win in other courts. For instance, since the sanctions create a severe infringement on their human rights, there is no question that human rights courts (there are several) might be used to challenge the regime. However, for the courts to act, one of the largest hurdles is proving that all domestic remedies have been used up. Hence, before the ECJ has been addressed, the chances for the victims to have a human rights court pick up their case seem relatively slim (it is, nevertheless, an avenue the victims should probably explore with their legal teams).

The Eurocratic Death of Democracy

The only hope I have is in popular uproar against this sanctions regime of doom. Political repression needs political answers. However, it will take a lot to put this genie back in the bottle. Even on a national level, the member states seem pretty happy with the new tool.

Florian Warweg, a courageous German journalist who was on my show before, actually asked his government spokespeople at the Federal Press Club (Bundespressekonferenz) on December 17 about the case of Jacques Baud and the legality thereof. The smug answer he got from Martin Giese of the German Foreign Ministry tells us most of what we need to know about how these gray bureaucrats perceive their actions and what they have in store:

(…) people who do such things can be sanctioned if the legal grounds exist and if there is a corresponding decision by the Council of the European Union. That happened this Monday, it will continue to happen, it has happened in the past, and anyone operating in this field must expect that it could also happen to them. (…)

All those who do not agree with their sanctioning have all possible legal means to challenge it. They can appeal to the Council, and they can also bring the case before the European Court of Justice.

What a blatant intimidation attempt. Seems like a pretty straightforward admission that there is more to come. After all, as I established above, the sanctions do have legal grounds in the purely formal sense, and the victims can indeed call on the very institution that took the sanctions decision and its rubber-stamp court that will only check the formalities. Seems very fair, right?

Here you go. This is how democracy dies (again). By executive decree and bureaucratic smug. Well done, European Union.

Tyler Durden Thu, 02/05/2026 - 07:20

These Are America's Healthiest States

These Are America's Healthiest States

“Blue Zones” are regions of the world where people live longer and healthier lives, supported by habits that boost longevity.

Loma Linda, California is one of the few recognized Blue Zones, alongside Okinawa, Japan and Ikaria, Greece.

Just as place can have a powerful influence on health outcomes, differences vary meaningfully across America.

This graphic, via Visual Capitalist's Dorothy Neufeld, shows the healthiest U.S. states, based on data from America’s Health Rankings Report by the UnitedHealth Foundation.

The Northeast Produces America’s Healthiest States

For the analysis, states were measured on 99 indicators such as economic hardship, smoking rates, and mortality rates. Overall values were measured in z-scores, with a score of 0 representing the national average.

The small state of New Hampshire leads the nation with a score of 0.99.

The state’s social and economic factors—seeing the lowest food insecurity, homicide rates, and highest high school completion—drive health outcomes. Additionally, it ranks among the top five in indicators like exercise rates and fruit and vegetable consumption.

As we can see, the Northeastern states of Massachusetts, Vermont, and Connecticut all follow next in line.

Utah, ranking in fifth, stands as a regional outlier. Notably, it ranks first nationally across indicators including smoking rates and income inequality. However, factors such as low public health funding and a lack of primary care providers weigh on its ranking.

Interestingly, Kansas and Illinois, both Midwestern states, had health scores falling closest to the national average.

Where Are the Least Healthy States?

Southern states, by contrast, see the lowest scores in health nationwide. Louisiana, with a score of -0.94 ranked worst overall, followed by bordering states, Arkansas (-0.83), and Mississippi (-0.77).

Beyond economic hardship, these states see some of the nation’s highest homicide rates, severe income inequality, and low levels of physical activity. Together, this highlights how health outcomes are shaped by a web of social and economic conditions.

To learn more about this topic, check out this graphic on America’s most common drugs.

Tyler Durden Thu, 02/05/2026 - 06:55

Dutch Government Refuses To Probe UK Travel Ban On Eva Vlaardingerbroek

Dutch Government Refuses To Probe UK Travel Ban On Eva Vlaardingerbroek

Authored by Thomas Brooke via Remix News,

The Dutch government has refused to investigate or seek clarification from the United Kingdom after Dutch commentator Eva Vlaardingerbroek had her permission to travel to Britain revoked, confirming it has not even asked London for an explanation over the decision.

The position was set out in formal parliamentary responses from Foreign Affairs Minister Caspar Veldkamp’s ministry, delivered on Jan. 30 by Minister Van Weel, after questions were submitted by Lidewij de Vos, a Member of Parliament for the right-wing Forum for Democracy (FvD).

De Vos questioned the government over last month’s revocation of Vlaardingerbroek’s UK Electronic Travel Authorization (ETA), which now prevents her from entering Britain without a visa. British authorities informed the commentator that her authorization had been canceled because her presence in the UK was deemed “not conducive to the public good,” and that the decision could not be appealed.

Asked whether the Dutch government had sought clarification from the British government or ambassador, the minister responded simply, “No.”

When pressed on whether the government would now demand an explanation, the minister replied that the Netherlands would not intervene in such cases, stating, “The Dutch government is not a party in this matter and does not engage with the United Kingdom regarding individual cases.”

“It is not for the Dutch government to judge or interfere in how legal remedies are structured under United Kingdom national legislation,” the minister added.

The responses mark the first official Dutch government reaction to the controversy, which has drawn attention internationally.

Vlaardingerbroek said she received notice of the ban shortly after posting criticism of British Prime Minister Keir Starmer on social media. Reacting at the time on X, she wrote, “I’ve been banned from traveling to the UK. No reason given. No right to appeal. Zero due process. Just an email saying the UK government deems me ‘not conducive to the public good’ — exactly three days after I criticized Keir Starmer.

“I guess my point that the UK is no longer a free country has been indisputably proven,” she added.

The right-wing commentator later accused her own government of failing to defend one of its citizens, posting, “While Orbán, Salvini, and even the U.S. State Department spoke out about my UK travel ban, the Dutch government just came forward saying it sees no problem with the UK banning one of its citizens and is not going to take action. Always a pleasure to be able to count on one’s own government.”

The British government has not publicly commented on the individual case. However, officials have said ETA cancellations do not automatically amount to a permanent ban and that border decisions remain sovereign matters.

In its parliamentary reply, the Dutch government also stated that it could not establish from media reporting that Vlaardingerbroek’s opinions were the reason for the cancellation, adding that revoking an ETA is not legally the same as denying entry. It does, however, mean that the subject cannot enter the country without a visa and thus must formally apply for entry. Travel between the United Kingdom and the Netherlands is usually visa-free for nationals of the two countries.

During a recent conversation with former British prime minister Liz Truss, Vlaardingerbroek criticized what she described as double standards in British justice and immigration policy, saying, “It just confirms everything that everyone has been saying, two-tier Keir, two-tier justice.”

She added, “The fact that all the immigrants are allowed in without any questions asked, without papers, and they are given the free hotels, they are given everything for free.”

Truss also commented publicly on the case, writing on X, “People who tell the truth about what’s happening in Britain are banned from the country. People who come to the country to commit crime are allowed to stay.”

Hungarian Prime Minister Viktor Orbán similarly expressed support, saying Vlaardingerbroek was “always welcome in Hungary.”

In its parliamentary responses, the Dutch government also declined to amend travel advice for the United Kingdom, stating it had received no signals of changing safety risks for Dutch travelers.

Read more here...

Tyler Durden Thu, 02/05/2026 - 06:30

UBS: SpaceX-xAI Merger Signals Rise Of "Orbital AI"

UBS: SpaceX-xAI Merger Signals Rise Of "Orbital AI"

In September 2024, we penned a note that Elon Musk was on track to become the world's first trillionaire by 2027, driven by what we described as "space race bets." That call looks increasingly correct following the merger of Musk's SpaceX and xAI earlier this week, a transaction that has lifted his net worth to $850 billion.

By contrast, former WeWork CEO Adam Neumann, who once famously said in 2019 that he wanted to live forever and be the first trillionaire, must be watching Musk's empire soar to new heights in disgust. Musk's decision to fold xAI into SpaceX is already being framed by UBS as an "orbital AI" investment angle, positioning Musk at the center of low-Earth orbit dominance and next-generation AI compute (read more here). 

UBS trader Jephine Wong provided clients on Wednesday with what has caught her eye with the xAI-SpaceX deal:

X" marks the spot as Elon Musk moved swiftly to fold xAI into SpaceX — an all‑stock deal valuing the combined entity at ~$1.25T (~$1T for SpaceX; ~$250B for xAI). The signal is clear: SpaceX is planting a flag in orbital AI, betting that a meaningful share of compute — essentially data centers in space — will be operating within 2–3 years. It's a bold storyline to take into a potential summer/fall ~$50B IPO, but it also introduces new complexity for investors: SpaceX is generating ~$8B in EBITDA, while xAI is burning approximately $1B per month. The roadshow narrative shifts from a pure‑play space champion to a space‑plus‑AI hybrid — asking investors to balance operating strength against AI‑scale capex. EchoStar, a holder of SpaceX‑linked assets, slipped on the news — a sign that not everyone is converted just yet.

Chart of The Week

Spaced Out: SpaceX's merger with xAI broke this week — just as SpaceX has become the undisputed heavyweight of the orbital payload market. The company is now so dominant it effectively is the global launch cadence (see UBS's John Hodulik chart below, report here). But pulling xAI into the fold adds a new twist. What had been a clean space‑infrastructure story now becomes a space × AI narrative, pairing orbital payload dominance with an AI business burning nearly $1B a month. The question for investors is whether this move expands the opportunity or complicates the story right before a  historic IPO comes into view. What do you think? Who are you backing for orbital AI? And does xAI have an edge the rest of the market hasn't spotted yet? We'd love to hear your thoughts!

What caught our eye this week?

SpaceX merges with xAI: the "Orbital AI" pitch

Musk entities merging: Musk folded xAI into SpaceX (website memo here) at a combined ~$1.25T valuation (SpaceX at ~$1T; xAI at ~$250B) via an all‑stock deal, arguing that "within 2–3 years" the lowest‑cost AI compute will be in space, supported by a jaw dropping FCC filing seeking approval for up to 1 million compute‑oriented satellites. The company still plans to go public this year, and had already begun lining up anchors for what could be a $50B raise. Investors got the message…. and some new nerves: EchoStar, a holder of SpaceX‑linked assets, slipped on the merger chatter, reflecting the sudden shift from a pure‑play space IPO to a space‑plus‑AI conglomerate. UBS John Hodulik (see here) covers Ecostar for us and has done a handy analysis of Echostar's ~3% stake in SpaceX and a one-pager on the company in late December.

Follow the numbers – to explain timing: xAI burned $8–$9.5B in 9M 2025 on only ~$210M of revenue… even after $20B+ raised (incl. $2B from Tesla). SpaceX, by contrast, is printing cash: roughly $8B 2025 EBITDA on $15–$16B revenue, powered by Starlink's ~9M subs and a launch cadence supporting a $1T+ IPO case. The merger brings together SpaceX's operating muscle with xAI's capex appetite, and gives the roadshow a unified "orbital AI" arc. Mgmt says the deal won't derail a 2026 listing timeline, and internal docs indicate a stock for stock structure (SpaceX shares at $526.59).

Professional subscribers can read much more from UBS about the 2026 IPO market here at our new Marketdesk.ai portal​​​​​​.

Tyler Durden Thu, 02/05/2026 - 05:45

EU Inc: Can Brussels' Latest Corporate Reform Escape Bureaucracy's Grip

EU Inc: Can Brussels' Latest Corporate Reform Escape Bureaucracy's Grip

Submitted by Thomas Kolbe

The European Commission is responding to mounting criticism of over-bureaucratization with the introduction of a new corporate legal form. “EU Inc” is intended to create a uniform legal structure that applies across the entire European Union economic area. A charming idea—but one that quickly sinks in the general bureaucratic madness.

The European Union has reached a point where it is considered lucky if a handful of days pass without new regulatory initiatives from the Brussels central apparatus.

To ease some pressure and deflect growing criticism of the EU’s bureaucratic jungle, Commission President Ursula von der Leyen presented the idea of a Europe-wide corporate legal form during the World Economic Forum in Davos.

The proposed new pan-European company type is called EU Inc. It would become the 28th European legal form, alongside national corporate types such as GmbH, SA, or Limited.

What von der Leyen pitched as an innovative project aims to simplify company formation for startups and scale-ups. The goal is to operate cross-border in all 27 member states of the Single Market without needing to create additional subsidiaries to comply with each nation’s legal requirements.

EU Inc is intended to enable a uniform, fully digitalized formation and administration process. Companies could be registered online within 48 hours—without a notary and without cumbersome paperwork.

The Commission also plans to introduce a central EU register, functioning as a one-stop shop and providing transparency on company formations, capital increases, and ownership structures. The project is currently in the early parliamentary consultation phase and could take effect in national law no earlier than 2027.

The Commission’s idea is attractive. Besides facilitating fast and simple company formation, it would be the first substantial initiative in years moving beyond mostly repressive regulation—truly aimed at deepening the European Single Market.

Faster market entry, simplified mergers, and potentially easier venture capital financing could follow—if national tax deregulation also occurs. That, however, seems unlikely given European regulatory practices.

The politically oft-cited capital markets union would thus receive its first, modest boost—a real-world link to the situation of entrepreneurs. Evidently, fragments of criticism from the business world occasionally reach Commission circles—who would have thought?

Where Are the Entrepreneurs?

As always with Brussels initiatives, the devil is in the details. First, national adoption of this new legal form must be achieved.

It is expected that powerful lobbying groups—from tax advisors to auditors—will work intensively to protect their interests, which are largely derived from the complexity of tax law, capital requirements, and formation procedures.

Over any supposed liberalization of economic activity looms the long shadow of European regulatory policy.

This is the real crux of European politics. Considering the economic structure of the European economy, one inevitably asks: where are the entrepreneurs who would even be willing or able to utilize this new EU Inc framework?

A single number illustrates the grotesque regulatory work of Brussels: last year alone, the European economy was flooded with over 1,400 new EU legal acts. That’s four new regulations per day. Directives, regulations, delegated acts, implementing acts—companies are drowning in an ideologically driven Brussels regulatory swamp.

CO₂ policies and supply chain directives are often in focus, scrutinizing every economic activity in detail and generating immense bureaucratic costs. Entrepreneurs increasingly work to fund administration—less to serve their markets.

What we see in Brussels is classic bureaucracy: once established, politically nurtured, and treated as a political vanguard, it develops a life of its own. Cynically, the production of legal acts is the only “good” keeping it alive.

The truth of this bureaucratic phenomenon often reveals itself openly—when politicians proudly list the laws they initiated, without any understanding of real economic life. It is the work record of a gravedigger, carving a path through the increasingly paralyzed productive sector of society.

Political and media support for EU climate regulation has created a self-referential bureaucracy now spreading into member states. With state quotas beyond 50%, the Rubicon of economic imbalance is crossed. Europe risks becoming a purely administrative hub while productive economy steadily shrinks.

The parasitic body consumes its host, accelerating its decay. Europe is degenerating into an administrative site with declining production activity.

Centrifugal Forces Gain Momentum

EU Inc could indeed be a charming solution for deepening the Single Market—if one day an orderly regulatory turnaround is initiated.

It is quite likely that the accelerating downward spiral of high public debt, falling productivity, rising unemployment, and a dramatic geopolitical decline of the continent will eventually pave the way for a conservative, market-oriented shift.

For Brussels central planners, particularly in Eastern Europe, a political storm is brewing that, once unified, could one day shatter the regulatory chains.

From a German perspective, however, it seems likely that the driving forces of climate-socialist transformation—undoubtedly concentrated in Berlin—will marshal their forces to continue the fatal path toward a command economy after breaking with the opposition.

* * * 

About the author: Thomas Kolbe, a Germany a graduate economist, has worked for over 25 years as a journalist and media producer for clients from various industries and business associations. As a publicist, he focuses on economic processes and observes geopolitical events from the perspective of the capital markets. His publications follow a philosophy that focuses on the individual and their right to self-determination.

Tyler Durden Thu, 02/05/2026 - 05:00

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