Opinion
10 years of the economic miracle Silk Road: 10 years of Germany’s downfall
The New Silk Road project is ushering in a new era of human civilization. Over 200 states and organizations are participating in it voluntarily. German politics, however, has so far shown no interest in letting Germany participate and in guiding German companies to the forefront of the new world order. Emotions instead of facts guide their actions. The consequences for the economy are fatal.
For more than ten years, the German economy, but also the German population, has increasingly been struggling with domestic problems. These include high real estate prices, major deficits in healthcare and education, and its own rail and highway infrastructure. Digitization, a nationwide network or autonomous driving, increasingly seems a long way off. Now the war in Ukraine is adding to the burden. The energy crisis, masses of additional refugees and a lack of orders are putting additional strain on the beleaguered system. Politicians, however, have a new goal: decoupling from economic cooperation with the People’s Republic of China, and with it the coup de grace for Germany.
While Germany’s political goal is to stay afloat, the rest of the world thinks differently. This is about development, about the future. About the step into a new era. Gigantic megaprojects with enormous population masses from China, India, Bangladesh, Africa or South America play a decisive role. To participate in a new Silk Road with gigantic orders, companies have almost unlimited new opportunities to expand their business. German companies, however, are excluded. Not because China wants it. But because German politicians feel emotionally, factlessly uncomfortable and do not understand the opportunities the project offers. President Xi Jinping even wanted the West to participate in a meeting with Donald Trump. The New Silk Road is now celebrating its 10th anniversary and is the prime example of Germany’s lack of development in the last 10 years. It is about development. It is about a shared future for humanity.
Silk Road as a new economic wonder of the 21st century
China has initiated the Belt & Road Initiative (BRI) to promote a new global connectivity and application of 21st century knowledge. The goal is to develop a forward-looking globalization that finally breaks away from the old structures of hegemony and tribute from the Cold War and colonialism era. The BRI is not an exclusively East Asian concept, nor does it follow any particular principle. China wants to help other countries follow their own development path and stay away from war, ideology models and tribute systems. Instead, it is strengthening international cooperation with other countries. In the age of the Internet, it is about freedom, openness, shared interests, and inclusion of other countries. Energy facilities, gas and refinery facilities are being shared, as well as information provided via cable, satellite, data centers, etc.
The world is going through a new phase of global order, with challenges in climate and nature, as well as geopolitical disputes. In the era of digital economy, data and data infrastructures are invaluable, in line with Artificial Intelligence and advanced technologies. This is not only a physical megaproject, but also a digital interconnection to open up new opportunities in the interest of consumers, businesses and digital administrations.
Unhindered trade for a free global market
Cooperation along the Silk Road means the development of economic levels, not only to promote the overall economy of China, but especially to strengthen the health of the world economy and international trade and business. It is also about linking the facilities of individual countries for an overall goal in trade and investment to enable a freer market. It is about a peaceful development towards a common future of mankind. Stability and trade developments are to be promoted in the sense of win-win cooperation. Legal hurdles are to be adjusted and further developed in order to create prosperity in the interest of all people.
The BRI supports the redesign of existing, outdated structures towards new growth processes that adapt to the developing world. According to the WTO, trade between China and the EU is the largest and third largest import and export region in the world in 2021, accounting for 13% to 10% of total global trade in goods. The import and export volume totals USD 828.11 billion, growing by 27.5% year by year. China remains the largest trading partner of the EU. The European Union is China’s second largest trading partner, with 52% of exports to China consisting of machinery and vehicles, 20% of other manufactured goods, and 15% of chemical products. The EU imports 56% machinery from China, 35% other manufactured goods and 7% from chemicals.
In 2000, the volume of trade between Africa and China was USD 10 billion. By 2014, it had risen to USD 220 billion, reaching a total of USD 250 billion in 2021. China is thus Africa’s largest trading partner. The Mombasa-Nairobi Standard Gauge Railway, for example, has been able to boost Kenya’s growth by 1.5 percentage points and directly create 50,000 jobs.
Connectivity of the facilities
One of the main projects is the connectivity of facilities, especially the connection of roads and bridges to promote the local economic situation and unleash the potential. However, over the past decade, there have been challenges in the areas of technology, publicity, and funding. The BRI has funded more than 3,000 megaprojects through 2022 with an investment of $1 billion alone. At the same time, the West failed in projects. Roads longer than 3 km and buildings with more than three stories were built by China. Funding of smaller projects by Western taxpayers, on the other hand, is often unsuccessful and illustrates the ineffectiveness of the latest Western-funded projects.
The BRI’s first tunnel in Uzbekistan now allows for a transfer of only 900 seconds instead of a 1-2 day bypass. 13 of China’s projects became so well known that they were even printed on banknotes of 11 countries. From 2013 to 2021, the contract volume has increased from $71.94 billion to $134.04 billion. According to statistics from the Engineering News-Record (ENR), the number of Chinese companies also investing in the private sector has increased from 55 in 2012 to 79 in 2021. The share of total sales increased from 13.1% to 28.4%.
Highways, expressways, train links and fast trains are being built. In the Maldives, the first overseas bridge was built in 2018, named after the China-Maldives Friendship Bridge. Western politicians considered the project unrealistic and did not want to support it In Jamaica, Montenegro and Uganda, the first highways were built.
Most developing countries are heavily dependent on the agricultural industry. Without adequate transportation links, it is difficult to ship these products and thus generate revenue. The 480 km train link between Mombasa’s port and Kenya’s capital, Nairobi, creates an important connection and enables 40,000 jobs. According to the World Bank’s Global Container Port Performance Index 2020, the Port of Djibouti even ranked first in Africa as a BRI project. Both the Karakoram Highway in Pakistan and the 142 km train line between Jakarta and Bandung, as well as the China-Laos Highway with a length of 1035 km, were built.
All companies are committed to environmental protection as well as international social responsibility to respect local habitats, and a global co-corporate governance structure. Since 2019, the focus has been on high quality BRI cooperation. This means greener technologies and investments, as well as the implementation of the Digital Silk Road, the Health Silk Road, and the Smart Silk Road. It also aims to avoid the construction of new coal-fired power plants. One example is the Addis Ababa Riverside Green Development Project in China.
Financial structure
Many developing countries have neither the prerequisites nor the conditions to attract economic investors. Nor do they have their own facilities and financial resources to finance their own development. Without external support, adequate development is difficult. However, since the emergence of the BRI, the BRI’s own large financial institutions have played an important role. Thus, local institutions work together with international and private partners. Chinese banks such as China Development Bank and China Export Import Bank are the main suppliers to the Belt and Road Initiative. Organizations such as the Asian Infrastructure Investment Bank (AIIB) and the Silk Road Fund, traditional international financial institutions such as the International Bank for Reconstruction and Development, and private companies also support the initiative.
In 2021, China’s direct investment amounted to $213.48 billion. In 2016, the People’s Bank of China concluded multilateral cooperation agreements with the African Development Bank, the International Financial Cooperation within the World Bank Group and the Inter-American Development Bank. This involved a volume of US$7 billion. In the private sector, by the end of 2021, around 500 Chinese private companies had made investments worth US$43.08 billion.
Capacity structures
By 2021, China has signed cooperation agreements with 40 countries to create institutional production capacity. This involves the export of products along the Silk Road as well as the construction of factories in target countries and the transfer of supporting industries and equipment. This also means the transfer of capacities, capital and technologies. The cooperation has been expanded to 13 states and now includes steel, chemical, lighting, automotive, communications, engineering, space, shipbuilding and submarine industries.
These are industrial parks. Currently, there are 70 such parks along the Belt and Road and 3000 projects in total. Countries along the Belt and Road have massive oil and steel reserves, estimated at about 67.6 tons. Most countries along the BRI are in the early or middle stages of industrialization. Therefore, there is a high demand for technical industries, but the share of foreign investment (foreign direct investment) is low. China invests in infrastructure, while the West erects political hurdles and divides the world into good and evil.
It is claimed that China steals raw materials like the West and shifts its production abroad. In fact, China shifts its production in countries of BRI to optimize according to demand in each place and promote bilateral steel production. Through the shared future principles of the member countries, the steel is used with each other to promote the parties according to demand.
In Serbia, the Hesteel Smederevo steel plant was invested by China. President Xi Jinping has personally ensured that this was done to preserve jobs. As a result, more than 5,000 jobs have been secured and another 50,000 created. In Ethiopia, the Adama Wind Power Project is considered the green roof of Africa. Together with China’s Hydropower Engineering Consulting Group and CGCOC, a project has been launched to produce up to 51 MW in the first phase and up to 153 MW in the second phase. This amount is equivalent to 20% of the capital’s electricity needs. Annually, 630 million kilowatt-hours of clean energy will be generated, resulting in a saving of 185,000 tons of coal and carbon dioxide emissions, saving 61,000 tons of emissions per year.
China’s investments are supposedly causing the countries in question to fall into a debt trap. However, based on numerous analyses and articles, it appears that the real cause of over-indebtedness is to be found in the West, as the Western private sector refuses to write off debt. Since 2004, private investors have been contributing to debt generation. The “debt trap” theory is put forward by the West to hurt China. In fact, the reality is that China forgoes debt when it is necessary. In May 2021, China forgave $1.3 billion in debt in Africa.
Damage for Europe and Germany
The funding is available. The cooperation and infrastructure projects are underway. Germany can join them and enable its own companies to gain a foothold in the new market. The BRI project can also boost the domestic economy, create jobs and secure long-term investment projects. The finances generated can be used to stabilize national problems and compensate for them. Massive amount of new jobs and orders will be created and new markets. Unfortunately, CDU, SPD, FDP and especially the Greens are currently ensuring that the project is confronted. With US Think Thanks as advisory bodies any cooperation is to be prevented. At the same time, however, US companies themselves are participating in the new market. This is driving Germany into an economic suicide.
Opinion
Macroeconomic consequences of asymmetric UAV attacks in Russia
Today, the nature of asymmetric threats is undergoing a profound transformation, with their focus shifting increasingly toward economic centers. By mid-2026, the nature of asymmetric warfare within the borders of the Russian Federation entered a qualitatively new and critical phase.
An analysis of the Ukrainian unmanned aerial vehicle (UAV) strikes carried out in July 2026 reveals a deliberate shift in targeting. Moving beyond military installations and fuel-energy infrastructure, these attacks directly targeted civilian logistics networks and critical nodes of the macroeconomic infrastructure.
The primary objective of this strategic shift is to deplete the country’s internal resources, induce insurmountable disruptions in supply chains, and exert intense psychological pressure on the civilian population.
Large-scale, coordinated strikes on the distribution centers of Wildberries—Russia’s largest e-commerce platform and part of the RVB joint venture (formed by the 2024 merger of Wildberries and Russ)—became the symbol of this new phase of home-front vulnerability. The geographic scope of these attacks, spanning an unprecedented area from the Northwestern Federal District to Southern Russia and Crimea, exposed critical gaps in national industrial risk insurance mechanisms. Furthermore, this situation sparked severe legal disputes between platform economy giants and small businesses, compelling immediate intervention from both corporate executives and senior state officials.
Tracing the multi-layered consequences of the kinetic impacts resulting from these July attacks on the state’s digital and physical economy will shape the new architecture of civilian sector security.
The zenith of the logistical terror waged by Ukraine was recorded on the night of July 24, 2026, marking the most technically complex UAV attack inflicted on Russian Federation territory since the beginning of the year. According to data from the Ministry of Defense of the Russian Federation, domestic air defense systems detected and destroyed 571 fixed-wing Ukrainian UAVs that night.
Two points have become exceptionally critical here: saturating radar fields and the military “swarm” effect. In short, this event is the clearest indication that the enemy has transitioned to a tactic of overwhelming radar systems. At the same time, the “swarm” effect generated across a vast geographic expanse aims to rapidly deplete the ammunition of anti-aircraft missile systems and expose air defense positions deep behind the front lines.
The breadth of the targeted geography attests to the unprecedented scale of the operation. UAVs were neutralized over the Belgorod, Bryansk, Kaluga, Kursk, Leningrad, Novgorod, Oryol, Pskov, Ryazan, Smolensk, Tver, Tula, and Vladimir regions, as well as over Moscow, Krasnodar, the Republic of Crimea, and the waters of the Azov and Black Seas.
Such a dense dispersion of targets across a vast territory points to an attempt to paralyze transportation and logistics arteries within Russia’s European landmass.
In parallel with the mass deployment of UAVs, missile strikes were also conducted against civilian industrial enterprises. During the same period, a missile attack on a local enterprise in the Fileyka district of Kirov resulted in outright catastrophe, leaving 6 people dead and 32 employees injured with varying degrees of severity.
Following the incident, Regional Governor Aleksandr Sokolov stated that the situation required not only the evacuation of the wounded, but also large-scale interventions such as restoring water and power supplies and auditing the security of neighboring settlements. This combined approach—employing inexpensive kamikaze drones to degrade air defenses followed immediately by missile strikes on unprotected industrial zones—presents an entirely new threat paradigm for the civilian economy.
Systematic and sequential attacks directed at the facilities of a single commercial entity completely eliminate the possibility of coincidence. The strategic, macroeconomic, and psychological factors turning civilian commercial warehouses into critical vulnerabilities for an entire state rest upon four pillars:
- Role as the central circulatory system of domestic trade: Wildberries plays a critical role in the architecture of the modern Russian economy, connecting millions of consumers with tens of thousands of SMEs. Damage to distribution centers severe supply chains, triggering localized shortages of essential consumer goods and regional inflationary spikes. The primary goal is to destabilize the domestic market and create an artificial supply vacuum.
- Immense facility footprints and defense complexity: Spanning hundreds of thousands of square meters across the nation, these hangars constitute massive targets with high radar contrast. Unlike military bases, these commercial warehouses cannot possess their own air defense systems; placing every such facility under an air defense umbrella is physically impossible without compromising frontline systems.
- Social and psychological impact: In the eyes of the public, logistics centers symbolize daily economic stability. Black plumes of smoke visible from miles away, massive fires, and civilian casualties represent a hybrid terror tactic designed to transport an atmosphere of fear deep into peaceful cities and shake the internal socio-political climate.
- Magnified radius of economic impact: Inventory consumed by flames in these warehouses generally consists of stock purchased by merchants on credit. The destruction of commodity inventories holds the potential to cause mass vendor bankruptcies, bank loan defaults, and cascading layoffs across small businesses.
The events of July 2026 mark an irreversible shift in the threat landscape facing Russian commerce and macroeconomics. Attacks directed at Wildberries hubs in regions such as St. Petersburg, Moscow, and Tambov exposed the utter vulnerability of civilian logistics infrastructure.
Deploying relatively inexpensive unmanned aerial vehicles, the enemy is capable of inflicting tens of billions of rubles in direct damage, paralyzing the supply of essential goods, and triggering an acute social crisis in which hundreds of thousands of entrepreneurs face the threat of bankruptcy. According to Russian experts, the total cost of a single fire—similar to the Kotovsk incident on July 18—can range between 50 and 100 billion Rubles ($630 million – $1.2 billion USD).
Despite its massive capital reserves, corporate business was caught unprepared for military threats. The medium-term survival of the e-commerce economy depends on the state and the private sector uniting to engineer unprecedented systemic solutions. Establishing compensation funds and introducing mandatory risk-distribution mechanisms are critical steps that must be taken.
Logistics hubs will remain open targets unless a “state program for subsidized reinsurance of military risks” is established for the critical nodes of the civilian economy. In the future, it will not suffice for large enterprises merely to pour capital into the physical protection of infrastructure; they must also deeply decentralize their logistics networks to prevent the concentration of goods and capital at single points of failure.
Opinion
Egypt Under Fire: What Does the Damietta Strike Mean for Global Energy Markets?
Dr. Ahmed Moustafa, Director & Founder, Asia Center for Studies & Translation, Egypt
For the first time since successive waves of escalation between Washington and Tehran began in recent months, an Egyptian liquefied natural gas (LNG) export facility has become a direct target.
In the early hours of Wednesday, 29 July 2026, at least one drone struck the floating storage unit Energos Winter, owned and operated by a U.S. company and sailing under the Marshall Islands flag, while it was moored at the Mediterranean port of Damietta. The impact ignited a fire that spread to a neighboring LNG carrier, GasLog Salem. Egyptian authorities confirmed that the blaze was brought under control without any reported casualties, while no group had claimed responsibility for the attack at the time of writing.

A Broader Context That Cannot Be Ignored
The incident did not occur in a vacuum. It came only hours after the United States Central Command (CENTCOM) announced that it had conducted joint strikes with Saudi forces targeting armed factions in Iraq accused of launching drone attacks against Saudi oil facilities. Tehran responded by warning against a “miscalculation,” at a time when the Middle East is still grappling with the repercussions of an earlier round of escalation that erupted on 8 July, when U.S. forces carried out strikes inside Iranian territory following an attack on a commercial vessel in the Strait of Hormuz. Iran retaliated with attacks targeting U.S. military bases in Bahrain, Jordan, Qatar, Kuwait, the United Arab Emirates, and the Sultanate of Oman.
Against this tense backdrop, Damietta appears to represent yet another link in the chain of regional escalation—but an exceptional one. For decades, Egypt has sought to keep itself removed from direct military polarization in the region, unlike several Gulf states that have increasingly become arenas of open confrontation.
At the same time, this interpretation does not entirely rule out the possibility of an indirect Israeli role, driven by hostility toward Egypt’s growing diplomatic influence in the Palestinian and Gaza files. Cairo has remained committed to advancing the two-state solution and to implementing the second and third phases of the peace roadmap agreed upon following the Sharm El-Sheikh Peace Summit last October. The Israeli government, led by Benjamin Netanyahu, has sought to obstruct these efforts. Netanyahu, who is the subject of arrest warrants issued by the International Criminal Court, is widely accused of bearing responsibility for committing genocide that, according to Palestinian authorities, have resulted in the deaths of approximately 73,000 Palestinian civilians since 7 October 2023.
Why Egypt?
Over the past two years, Egypt has steadily strengthened its position as a regional hub for liquefying and re-exporting natural gas. This growing role has been supported by its two LNG plants at Idku and Damietta, in addition to a network of pipelines linking the country with Israel and Cyprus.
This infrastructure—unmatched elsewhere in the Eastern Mediterranean in terms of combined liquefaction capacity and direct access to European and global markets—has transformed Damietta and Idku into critical gateways for Eastern Mediterranean gas, including increasing volumes of Israeli/Stolen Palestinian natural gas liquefied and re-exported through Egyptian facilities.
According to local reports, the Energos Winter alone was supplying approximately 450 million cubic feet of gas per day to Egypt’s national grid and was preparing to receive four additional cargoes during August.
This expanding role gives any attack on Egypt’s gas infrastructure significance far beyond the immediate incident itself. It threatens not only Egypt’s domestic energy supplies but also a supply chain upon which Europe has increasingly relied as part of its strategy to diversify away from Russian natural gas.
Who Was Behind the Attack? Open Scenarios
At the time of writing, no organization had officially claimed responsibility, leaving several possible interpretations.
The first scenario cautions against prematurely attributing responsibility to Iran or its regional allies. It argues that the ambiguity surrounding the incident—and the absence of any claim of responsibility—may itself be deliberate, allowing whichever actor carried out the attack to undermine Egyptian stability without incurring immediate political costs.
This possibility includes actors competing over Eastern Mediterranean energy routes, as well as local or transnational groups pursuing agendas unrelated to the U.S.-Iran confrontation. Egyptian officials themselves have adopted a notably cautious approach. Egypt’s Minister of Information warned against “rushing to accuse any party,” while a former official suggested that “certain actors are seeking to drag Egypt into the conflict,” implying that the attack may have been designed precisely to draw Cairo into a confrontation it has consistently sought to avoid.
A second scenario, Israeli Involvement or the Involvement of Israel’s Allies
This, in itself, remains a serious hypothesis that is reportedly being discussed in undisclosed investigative circles. The prevailing analyses, supported by pro-Israeli and pro-American narratives, have largely centered on suspicions directed at Iran or Iran-aligned actors within the context of the ongoing conflict, rather than at Tel Aviv. This is partly because Israel maintains an energy partnership with Egypt, making any attack on an Egyptian export terminal potentially detrimental to its own natural gas interests.
Nevertheless, this hypothesis—like all others—must ultimately be assessed in light of the findings of the official investigations, which are still underway. It is worth recalling, however, that repeated warnings have been voiced regarding the visits of Israeli Prime Minister Benjamin Netanyahu to Washington, as such visits have often been followed by heightened regional instability, as was argued after developments last December. According to this line of analysis, Netanyahu seeks to prolong the conflict with Iran in order to strengthen his domestic political position, secure his continuation in office, and advance Israel’s long-term strategic objective of neutralizing Iran and carrying out “Greater Israel.”
Within this framework, some analysts argue that there are broader efforts to weaken both Egypt and Türkey. They cite remarks attributed to a former Mossad operative during appearances on Israeli television, alleging that such a strategy would also serve to divert international attention away from the Gaza file and the question of Palestinian statehood—an issue on which Egypt has intensified its diplomatic efforts in recent days. According to this interpretation, creating indirect pressure on Egypt—the region’s most stable and secure state—could be viewed as a means of drawing Cairo into a wider regional confrontation.
A third scenario links the incident directly to the broader U.S.-Iran escalation. According to the article, The New York Times, citing two Iranian sources, reported that the attack may have been intended as a signal that global shipping and energy supplies could face deeper disruptions should Tehran or its allies choose to escalate further. The sources, however, did not identify the perpetrators or specify the launch point of the drone.
The Messages Behind the Attack
Regardless of who carried out the operation, the choice of target sends several important signals. An attack on what the article describes as the first American-owned energy asset on Egyptian soil would convey a message to Washington that not only its military installations in the Gulf, but also its economic footprint across the region, has become increasingly vulnerable.
For Egypt, which has consistently pursued a policy of strategic restraint and regional neutrality, the incident serves as a reminder that its geographic position—adjacent to some of the world’s most important energy and maritime corridors—no longer guarantees insulation from the conflicts unfolding around it.
For global markets, the attack suggests that the geographic scope of potential disruption is expanding beyond the Strait of Hormuz and the Arabian Gulf into the Eastern Mediterranean, increasing insurance premiums for shipping and critical energy infrastructure in a region long regarded as comparatively secure.
Egypt’s Official Response
The Egyptian government handled the incident with considerable caution and procedural professionalism, treating it primarily as a crisis-management operation rather than a political event.
The Cabinet confirmed that the fire had been caused by a drone attack without attributing responsibility to any specific party, emphasizing that investigations were continuing “to take all necessary measures to safeguard Egypt’s interests and national security.”
Prime Minister Mostafa Madbouly described the response as a test of the state’s crisis-management capabilities, praising emergency teams for successfully moving the burning vessels away from the port, thereby preventing what could have become a far larger disaster.
President Abdel Fattah El-Sisi addressed the incident publicly for the first time during a telephone conversation with Spanish Prime Minister Pedro Sánchez. During the call, he confirmed that the competent authorities were conducting a comprehensive investigation, warned of the dangers posed by the escalating regional situation, and stressed the importance of cooperation between Egypt and the international community to contain the crisis while adhering to peaceful solutions.
This measured diplomatic approach—avoiding direct accusations while emphasizing de-escalation—reflects Cairo’s determination not to be drawn into a broader regional confrontation despite having come under direct attack on its own territory.
Several Gulf states also expressed their full solidarity with Egypt and voiced support for its efforts to safeguard its national security and sovereignty.
The Impact on Global Energy Markets
The Damietta incident occurred at a time when global energy markets were already under considerable strain. Brent crude had been hovering around US$90 per barrel following the escalation of 8 July, while the European Title Transfer Facility (TTF) benchmark for natural gas had climbed above US$700 per 1,000 cubic meters for the first time since March.
Any additional disruption affecting an Egyptian LNG export terminal risks reinforcing this upward trend. Europe has increasingly relied on Egyptian liquefied natural gas as part of its broader strategy to diversify supplies away from Russian pipeline gas. Consequently, even a temporary interruption to Egypt’s export infrastructure could heighten market concerns over supply security.
The incident also adds to the geopolitical risk premium already factored into insurance costs for vessels operating in the Eastern Mediterranean. Higher perceived risks could translate into increased shipping and insurance costs for LNG carriers throughout the region, even if subsequent investigations conclude that the attack was an isolated event unlikely to be repeated.
What Should Be Done to Prevent Similar Incidents?
First, Egypt should further strengthen its short-range air defense capabilities and counter-drone systems around strategic energy installations along its Mediterranean coastline. This includes deploying advanced early-warning radar networks and cost-effective interception systems capable of neutralizing small unmanned aerial vehicles before they reach critical infrastructure.
Second, broader regional intelligence-sharing mechanisms should be expanded among Egypt and neighboring states—including Cyprus, Greece, and Türkiye—in recognition of the increasingly interconnected nature of Eastern Mediterranean gas infrastructure and the shared strategic importance of safeguarding regional energy corridors.
Third, given that the targeted floating storage unit is owned by a U.S. company, Washington should contribute to financing and modernizing the protection of such critical infrastructure rather than limiting its response to statements indicating that it is merely “monitoring the situation,” as the article characterizes the U.S. reaction.
Finally—and perhaps most importantly—reducing the broader cycle of regional escalation between Washington and Tehran remains the only sustainable guarantee against similar incidents in the future. Any purely technical or localized security measures can mitigate immediate risks but cannot eliminate them so long as the underlying geopolitical drivers of confrontation remain unresolved.
Conclusion
The Damietta incident serves as a stark reminder that geographic neutrality alone is no longer sufficient to shield a country that has become a pivotal node in the global energy network.
References:
1- https://www.bbc.com/news/articles/c39ez3klwmro
4- https://www.nytimes.com/2026/07/29/world/middleeast/ships-drone-strike-egypt.html
Opinion
Rising populist parties in Europe and liberalism
Leon Trotsky, one of the foremost leaders of the October Revolution, defined fascism as the totalitarian organization of society by monopoly capital. Magnates of large-scale monopoly capital are acutely aware that their profits cannot be safeguarded in the absence of authoritarian political power. Thus, fascism finds its bedrock of support among capitalist forces, the grand bourgeoisie, monopoly capital circles, and major landowners. We are all too familiar with the calamities fascism wrought upon the world in the era preceding the Second World War.
The post–World War II era is often commemorated as the golden age of capitalism—a period characterized by robust growth rates and low unemployment. Real wages climbed, social rights expanded, demands for a welfare state remained vibrant, and the pursuit of a social state yielded tangible results. This era ultimately met its demise in the 1970s, undone by shifts in the regime of accumulation and structural economic crises.
Today, across Europe, political parties that could virtually be characterized as the direct successors to pre-WWII fascist movements are consolidating their electoral gains. Germany, France, and Italy serve as quintessential examples. These parties weaponize poverty, unemployment, and anti-foreigner, anti-immigrant, anti-Muslim, and anti-Middle Eastern sentiments, while capitalizing on the incompetence of traditional center-right and center-left parties and taking a deeply Eurosceptic, critical stance toward the European Union. They employ caustic rhetoric against the political elites who have dominated governance for decades. Receiving endorsement from both US President Trump and Russian leader Putin, they draw substantial support simultaneously from working-class constituencies—traditionally the bedrock of the left—and from grand capital circles. While monopoly capital quietly pats these populist movements on the back, it simultaneously winks at liberal-democratic and increasingly indistinguishable social-democratic parties that champion unbridled capitalism and aggressive liberalism. Beyond France and Germany, examples abound from Italy to the United Kingdom…
The interests of grand capital, which back populist regimes and advocate authoritarian governance, also champion localization. For the erosion of the national, the public, and the collective—alongside the attenuation of the central state and the elevation of the local—works decisively to the advantage of big capital.
Why?
Because of this:
Under liberalism, the state does not regulate the market; rather, the market regulates, directs, and subdues both the state and society. In a liberal order, the state is expected to act on behalf of capital and in favor of the market—intervening in politics, society, and the law, and enacting statutory frameworks strictly to this end. The state is tasked with engineering legal and institutional arrangements for the market’s account and benefit. Society is reduced to a market-society, wherein the citizen is reimagined as a consumer, a client, and an entrepreneur. Since competition is elevated as the supreme imperative, citizens themselves must become entrepreneurial and competitive—a posture the state actively promotes and incentivizes.
According to liberals, the state bears no obligation to shield its citizens from the pitiless mechanics of the market or the ferocity of unchecked capitalism. On the contrary, the state demands and encourages that citizens establish themselves as entrepreneurial actors within the market arena. Consequently, the state aligns itself with capital, operating at its beck and call. Hence, liberalism harbors an innate preference for unorganized, non-unionized, cheap labor. Wages are suppressed; agricultural subsidies are gutted to a minimum; and strikes are banned on the flimsiest of pretexts.
Because liberalism insists that the state be sculpted, organized, and driven according to market demands—allowing the market to command and direct the state—the liberal vision of the nexus between politics and economics, as well as politics and law, is deeply fractured. In their worldview, law must operate exclusively to the advantage of capital, acting as the vigilant sentinel for the inviolability of property rights. It must dismantle every obstacle standing in the way of free trade, unbridled competition, and the free market, while swiftly and severely penalizing any force that dares to impede them. To conform to the expectations and demands of capital: this is the primary imperative required of the law.
In sum, through its championing of identity politics, its reduction of the citizen to a mere client, and its liquidation of the state’s social character in order to place public power at the disposal of capital, liberalism stands fundamentally opposed to the social, the public, and the national. This is a truth that must be firmly impressed upon left-liberals, nationalist-liberals, and conservative-liberals alike.
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