US, Russia on same page: EU must be put on her place

Jubilation in Washington and Moscow was evident on the news of Hungary, Czech Republic, and Slovakia opting out of the EU Loan of Euro 90 Million to Ukraine. Both Russia and America are on the same page when it comes to EU. It must be re-designed to play a supplementary role for the benefit of the superpowers.

Let me survey the scene in both Washington and Moscow as regards to the EU behemoth which has outlived its usefulness to both superpowers and to the world at large:

U S Viewpoint

1. The threat by EU Secretariat regarding pulling out the plug of US Treasury investments of about $3.5 Trillion is not taken lightly by the US authorities. They deem it as arms twisting of the giant by the dwarf

2. US tolerates EU only as a geoeconomics vassal and no more. When EU countermands the recent US Tariff on exports to America EU members, it was perceived not as reciprocal measure but as a tit-for-tat reaction

3. Americans preach democracy as the Epochal JD Vance speech in Munich in February 2025 demoed. It was a warning shot that EU must allow dissidence in opinion and conduct of the citizens there. By and large EU Secretariat in Brussels has transformed as a collective similar to Soviet Union

4. Both USA and EU were strange bedfellows when Ukraine war started, united in their common purpose of delivering strategic defeat to the Russian Federation. Now US needs Russian business partnership in exploiting Arctic resources and rare earths in order to lessen her dependence on China. Therefore US wants Ukraine to technically lose the battle and make up with her erstwhile opponent Russia. Put it simply, US wants Ukraine to lose whereas EU wants Russia to lose.

5. By and large EU is anti-America so is America anti- EU.

Russian Viewpoint

1. Ukraine cannot join NATO but it can become a member of the European Union. Russian maskirovka is evident in that Ukraine joining EU is similar to the Trojan horse. Once Ukraine is admitted EU would self-destruct

2. Practically, EU is the lead financier of the current Ukraine war. America lent weapons and provided military intelligence. But EU has this big burden of financing not only the Ukraine war but also the running of the country as a whole. The hard cash spent exceeds Euro 170 Billion so far, almost 3% of the EU GDP

3. Hatred for Russia united America and EU in a manner not seen before. Yet the Russians did not resort to hate complex. They want business deals both from America and Europe.

4. Unlike the Americans Russia wants EU to play a vital role in the geoeconomics of the continent and the globe as a whole.

5. Russian strategy is to ensure Europe as a partner in every aspect of the global conduct: politics, economics and military affairs. A divided Europe is good for both America and Russia but not a splintered one. Europe needs multiple nations reflecting ethnicity, language, geography, culture and economic potential.

In summary, it is time for all three parties to get together and craft a strategy amid geoeconomics such that all of them benefit from the progress that would be achieved in the long run! 

 

Cheers!

 

Muthu Ashraff Rajulu

Strategy Adviser

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Strategy Adviser

 

 

 

 

Crisis brewing in German car market

E-mobility, meaning the use of electricity to power vehicles, replacing fossil fuels for transportation has become a hot policy issue in Germany which is already going through an economic crisis not seen since the WWII. The deadline year of 2035 for e-mobility has aggravated the situation.

German car manufacturers are up in arms as regards to the unjustified demand by the Federal Government for the change over from Internal Combustion System (ICE) to Electronic Vehicle (EV) that spells doom for the manufacturing of world famous brands such as Volkswagen, BMW, Mercedes-Benz, Audi, Porsche and legendary Opal.

Recent closure of the historical Dresden Volkswagen Plant after almost 9 decades of operation should be an eye-opener to policy makers and strategy analysts. Although e-mobility as an economic concept is laudable, naming C2 emission as major adversary for Germany cannot be justified. After realizing the impossibility of fully operational e-mobility regime the state has to come with either postponement of the deadline or begin massive retrofitting operation where the present engine-fuel system is replaced by installing an electronic system that includes electric motor, batteries, controller, and charger.

This is going to be colossal exercise. Apart from the capital cost involved gaining acceptance from the ICE owners to transfer their tested vehicles to EV would be an arduous task. Most owners and drivers would cling to the present ones rather than going for an EV. In the public opinion surveys it has been found that most of them prefer EV as an additional mode of transport rather than the solo one parked at their garage.

Yet another issue is persuading people to buy new EV rather than retrofitting. This got into hot water due to premium price they are called upon to pay for acquiring new EV which is mostly imported from China and USA. Psychology also mars the use of EV for regular travel. There is a dichotomy in owning one thing and using it. Most would prefer to buy an EV as investment asset to be used occasionally and sell whenever profitable.

True, EVs are good at passenger mobility; what about their use in freight transportation. Moreover an ICE Motor Wagon can be used for dual purposes: passenger mobility and carriage transport.  Another moot point is about long-overhaul where across the country travel is opted for in family tours and excursions.

Even though EV demand is trending high while ICE is slipping in sales the overall picture emerging from the markets demoes that both petrol & diesel driven vehicles have 38% of market share in comparison to EV which trails in the region of 33%. Sports enthusiasts and macho men would rather prefer clinging to their proven assets rather than go for an untested EV.

The overhang is already evidenced in the EV imports statistics for Germany. At the time of writing both the volume and Values of EV imports have declined by almost 40%.

Policymakers need to wake up now! Strategy amid geoeconomics dictate that they abandon e-mobility 2035 and opt for a balanced regime where ICE & EV go hand in hand.

 

Cheers!

 

Muthu Ashraff Rajulu

Strategy Adviser

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Strategy Adviser

 

 

 

 

Russia is enemy narrative, invented to fool Europe

American capitalist cabal invented the narrative of Russia being an enemy of Europe immediately after the end of WWII. Of course, the American system needed an enemy to marshal the populace behind her. Accomplishing this concept need a useful idiot. Europe fits that role.

The first step is to declare Soviet Union as “Iron Curtain”, a sworn enemy of the capitalistic system whose pillars were declared as North America and countries in the Western Europe. Subsequently, NATO was inaugurated in 1949 as a defensive pact with 12 countries joining it. These are Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, Netherlands, Norway, Portugal, United Kingdom, and United States.

Baron Hastings Ismay, the First Secretary General of NATO has this to say about the purpose of NATO, “to keep the Soviet Union out, the Americans in, and the Germans down”. Here Germany implies not a single country but the entirety of the Continental Europe.

Bogey man Soviet Union helped America to consolidate her power & influence over Europe. The latter neglected military security sub-contracting it to US military industrial complex except for France whose chief, Charles de Gaulle was adamant in having his own military industry located within France. He exploded a nuke in 1960 as the fourth country to do so after US, Soviet Union and the UK.

The  fall of Berlin Wall on November 9, 1989 and subsequent ending of the Cold War on December 26, 1991 due to the formal dissolution of the Soviet Union offered Europe the first and foremost opportunity to reconcile with the rump Russian Federation.

Even though the Russian authorities gracefully allowed the then East Germany officially joining West Germany on October 3, 1990, resulting in the formation of  Federal Republic of Germany and immediately recognising it as such, Germans never wanted to bury the hatchet prodded by the White House.

Every Russian effort to enhance mutual relationship between Russia and the countries in Europe was often dismissed as propaganda stuff. There emerged a new unipolar global order when Europe wholeheartedly joined the US as constituents of this group where rules based international order is to be followed to the letter and America sets the rules and Europe has to obey like a vassal.

Ukraine war that began as a result of attempting to bring her into NATO set in motion a bloody war never seen since the WWII. Europe was forced to finance the war with men, money and materials. While America gives techno-intelligence Europe has to pay by national treasury. Not only that she has to fend for all those Ukraine refugees numbering over five million who fled from the war zone. So far Europe has squandered around €180 billion. The strategy of backing the losing horse has never been discerned in Europe especially by Germany.

At the time of writing, Europe as a whole is beating the drums of war except for rebels such as Hungary. Germany is in forefront and is planning for conscripts to fight a modern techno war with battle hardened Russia.

Time to walk back on bravado and let saner counsel prevails allowing strategy amid geoeconomics to bring progress in trade, economics and humanity.

 

Cheers!

 

Muthu Ashraff Rajulu

Strategy Adviser

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Strategy Adviser