France’s revolving‐door at Matignon spun again overnight as Emmanuel Macron re-installed Sébastien Lecornu—his third pick this year and sixth since 2023—after the 38-year-old resigned only four days earlier amidst cabinet chaos. France now confronts a €178 billion budget hole and a deficit projected by the Banque de France to reach 5.4 % of GDP in 2025, well above the EU’s 3 % ceiling.

The speed of the U-turn exposes a deeper malaise: a presidency locked between insurgent extremes and a hung National Assembly where no bloc tops 35 % of seats. Each aborted government erodes market confidence; French 10-year yields have already widened 42 basis points against Bunds since July—an implicit referendum on political credibility.

Macron bets that a familiar face can cram austerity through a fractious chamber. Yet shuffling premiers without enlarging the coalition merely recycles risk. As economist Branko Milanović warns, “democracies rot when elites mistake tactical manoeuvres for strategic consent.”

— The Gist AI Editor

The Weaponization of Justice

The use of legal systems as political instruments is escalating in the US. President Trump’s Justice Department has indicted New York Attorney General Letitia James for fraud, a move following her own civil fraud lawsuit against him (WSJ). This reciprocal legal action deepens the cycle of “lawfare,” where the state’s power to prosecute is directed at political adversaries. From our perspective, such actions erode the bedrock principle of impartial justice. When the rule of law is perceived as a tool for retribution rather than a neutral arbiter, it risks the stability and liberty upon which free societies depend.

An Authoritarian Endorsement

Russian President Vladimir Putin asserted that Donald Trump “deserved the Nobel prize” for his efforts toward peace, while claiming the Nobel committee has “lost credibility” (Politico.eu). The statement came as the prize was awarded to Venezuelan opposition leader María Corina Machado. Putin’s comments are more than a simple endorsement; they are a strategic dismissal of the institutions that underpin the liberal international order. This alignment champions a world led by strongmen, where transactional deals supplant cooperation based on shared values like human rights and democratic norms.

Europe’s Digital Crossroads

Estonia is pushing back against a proposed EU-wide social media ban for minors, creating a significant fracture in the bloc’s digital policy (Politico.eu). While most member states support creating a “digital age of majority,” Estonia’s digital minister argues for an open information society that includes young people. This debate frames a core ideological conflict: a top-down, protectionist impulse versus a belief in individual liberty and parental responsibility. The resolution will have profound consequences for innovation, free expression, and how the next generation interacts with the digital world.

Stay tuned for the next Gist—your edge in a shifting world.

Aberdeen to warn government over private assets for UK retail investors
— Financial Times

European IPO markets show signs of revival
— Financial Times

California Doesn’t Deserve Credit for Phonics
— Wall Street Journal

Why I have to buy doughnuts with cash
— Financial Times

Donald Trump and Letitia James, Lawfare Pals
— Wall Street Journal

Strathcona Resources Terminates Takeover Bid for MEG Energy
— Wall Street Journal

France’s Governance Gridlock

Political stability in France, the Eurozone’s second-largest economy, remains elusive. President Macron’s reappointment of Prime Minister Sébastien Lecornu ends a week of high drama but resolves none of the underlying issues (Politico). The government still lacks a stable parliamentary majority, and Lecornu’s immediate, critical task is to navigate a budget through a fractured legislature before a looming Monday deadline. This recurring political theater is more than just palace intrigue; it signals a persistent inability to build consensus for the deep, structural reforms—from labor markets to public spending—that are essential for long-term competitiveness. For markets and investors, the key takeaway is uncertainty, which chills investment and complicates fiscal planning across the EU.

Europe in the Slow Lane

The race for autonomous mobility is accelerating, but European industry appears to be watching from the rearview mirror. While US firms like Tesla and Google (Waymo) and Chinese players such as WeRide and Pony AI are dominating the development of self-driving technology, Europe’s automotive giants are struggling to keep pace (El Pais). Volkswagen’s investment in its Moia division is a notable effort, but it pales in comparison to the scale and speed of its rivals. This isn’t just about cars; it’s about a multi-trillion-dollar ecosystem of data, AI, and logistics. The question for Brussels is whether the continent’s regulatory framework, often prioritizing caution over rapid innovation, is creating a permanent technological deficit in a sector it once led.

Catch the next Gist for the continent’s moving pieces.

Madcap week in French politics ends with Macron reappointing PM
— Politico Europe

Social media completes its shift to the right: ‘TikTok is consequential’
— El Pais

Tesla, Google and China leave Europe behind in the race for self-driving cars
— El Pais

Aktuelles zum Krieg in der Ukraine
— ZDF

Die Legende
— ZDF

The week around the world in 20 pictures
— The Guardian