Kyiv’s revised 20-point plan landed on Washington’s desk overnight, trimming the earlier U.S. draft by eight clauses and defying pressure to trade land for respite. Key flashpoints—Russian control of Siversk, a jointly run Zaporizhzhia nuclear plant, and a Donbas free-trade zone—remain unresolved, but the very submission signals that talks have shifted from hypothetical to transactional. (reuters.com)

I read the document less as capitulation than as deadline diplomacy: President Trump wants a “Christmas cease-fire,” Europe fears being side-lined, and Ukraine must keep Western arms flowing while its GDP contracts 28 % this year. Berlin’s bid to host the next round is Europe’s bid to keep its own security architecture intact; failure would push EU leaders toward the legally fraught idea of monetising €210 bn in frozen Russian assets. (ft.com)

History warns that hurried armistices breed frozen conflicts. As philosopher Byung-Chul Han reminds us, “Acceleration is the enemy of duration.” The coming fortnight will test whether speed can coexist with stability.

The Gist AI Editor

China’s Chip Breakthrough

In a direct challenge to Western sanctions, China’s leading chipmaker, SMIC, is reportedly establishing new production lines in Shanghai to manufacture advanced 5-nanometer chips for Huawei (Bloomberg, FT). This move demonstrates significant progress despite U.S. export controls aimed at hindering China’s technological advancement. While these chips will still trail the cutting-edge 3nm technology, they represent a crucial step towards China’s semiconductor self-sufficiency. The development relied on stockpiled U.S. and Dutch equipment, highlighting the leaky nature of the sanctions regime. Our perspective: This underscores the limitations of top-down industrial policy restrictions; motivated actors will invariably find ways to innovate and adapt, rendering such measures less effective over time.

Germany’s Looming Power Gap

Germany faces a potential power shortfall starting in 2031, according to grid operator Amprion (Bloomberg). The country’s accelerated phase-out of nuclear and coal power, combined with delays in building new gas-fired plants, threatens its energy security. In 2024, renewables accounted for a record 60% of net electricity generation, but Germany remained a net importer of electricity for the second consecutive year (Amprion). This reliance on imports, particularly during periods of low wind and sun, exposes the vulnerabilities of a rapid energy transition without sufficient baseload capacity. The situation suggests that Germany may need to rely on its standby coal plants for longer than anticipated to ensure grid stability.

Bulgaria’s Youth-Led Government Collapse

Bulgaria’s government has collapsed following massive youth-driven protests, marking a significant political upheaval in the European Union’s poorest member state (WSJ). Tens of thousands of demonstrators, largely from “Generation Z,” took to the streets to protest a controversial 2026 draft budget that included tax hikes on private businesses. The protests, organized extensively through social media, were fueled by deeper frustrations over systemic corruption, shrinking economic opportunities, and the influence of oligarchs. This event highlights a potent wave of youth activism capable of challenging established political orders.

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

Wave of Gen-Z Unrest Fells Its First European Government
— Wall Street Journal

Financial Services Roundup: Market Talk
— Wall Street Journal

China’s Huawei and SMIC Make Progress With Chips, Report Finds
— Bloomberg

Ukraine Pitches Trump on Vision for Peace, but Tensions Over Territory Remain
— Wall Street Journal

Putin Expresses Solidarity With Venezuela in Maduro Call, Kremlin Says
— Bloomberg

German Power Shortage Threatens From 2031, Grid Operator Warns
— Bloomberg

EU Reverses on 2035 Combustion Engine Ban

The European Commission is reportedly set to backtrack on its landmark 2035 ban for new internal combustion engine (ICE) vehicles. A deal between Commission President von der Leyen and Manfred Weber of the European People’s Party (EPP) will now propose a 90% CO2 reduction target instead of a full 100% phase-out (Bild). This pivot acknowledges the immense economic and social costs of a forced, all-electric transition, suggesting a return to technological neutrality over top-down industrial planning. The move is a significant win for automotive industry advocates and consumer choice, but it reopens a contentious front in the EU’s climate policy, challenging the rigidity of the Green Deal’s agenda.

France Obstructs Mercosur Free Trade Deal

Paris is again applying the brakes to the EU-Mercosur trade agreement, seeking to delay a decisive vote on a pact that has been 25 years in the making (Politico). Officially, France cites outstanding concerns, but the strategy is a clear concession to its powerful agricultural lobby, which fears competition from South American imports. This maneuver underscores the persistent tension between the EU’s ambition for open global trade and the protectionist impulses of member states. By stalling, Paris not only jeopardizes a major geopolitical and economic opportunity but also signals that entrenched domestic interests can still override the bloc’s strategic trade objectives.

Meta Accused of Widespread Content Censorship

Meta is facing accusations of one of the “biggest waves of censorship” in years, having restricted or removed the accounts of more than 50 organizations globally that provide abortion advice or queer content (The Guardian). The actions across Facebook, Instagram, and WhatsApp represent a concerning trend of private platform power dictating the boundaries of legitimate discourse, particularly on sensitive health and social issues. While the company denies targeted censorship, the pattern suggests an opaque and potentially biased application of content moderation policies. This development raises critical questions about free expression and access to information in a digital public square dominated by a handful of unaccountable actors.

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

Nach Massenprotesten: Bulgariens Regierung tritt zurück
— ZDF

Wie geht es der Wirtschaft unter Merz?
— ZDF

Meta shuts down global accounts linked to abortion advice and queer content
— The Guardian

Aktuelles zum Krieg in der Ukraine
— ZDF

Urso apre all’ingresso dello Stato in Ilva: ‘Se lo chiede il vincitore della gara’
— Ansa

Il prezzo del gas apre in aumento a 26,95 euro al megawattora
— Ansa