The European Parliament’s razor-thin 334-324 vote to dump the freshly-signed EU-Mercosur accord into the EU Court of Justice stalls a pact that would scrap tariffs on 90 % of trade across a 700 million-person market, equal to Germany and Brazil’s combined GDP in flow terms. (apnews.com)

The referral exposes a widening fault-line between geopolitical ambition and domestic politics: Berlin and Madrid hail the deal as an industrial life-line that offsets U.S. tariffs and Chinese over-capacity, yet farm-state and Green MEPs fear a reprise of CETA’s backlash, citing weak safeguards against Amazon-driven deforestation. (aljazeera.com)

Brussels now faces a two-year legal limbo that could sap EU credibility as a rule-maker just when it seeks “strategic autonomy” through new supply-chains. History warns: the 2016 EU-Canada pact lost momentum during its own court detour and never delivered promised export surges. The lesson is stark—grand strategy dies in procedural trenches. “Institutions rot when their ambitions outrun their procedures,” writes Ivan Krastev.

— The Gist AI Editor

Davos Dilemma: AI Regulation & Trade Friction

At the World Economic Forum in Davos, a surprising call for government intervention in the tech sector has emerged. Salesforce CEO Marc Benioff is advocating for robust AI regulation, warning that without it, the harms of unregulated social media could be repeated (Bloomberg). Our view is that while private actors should lead on ethics, a heavy-handed state approach risks stifling innovation. This mirrors a broader trend of institutional intervention, as the EU Parliament readies its “trade bazooka”—a powerful set of countermeasures—against potential US tariffs (Politico). Simultaneously, the Parliament narrowly voted to send the Mercosur trade deal for judicial review, further delaying a pact 25 years in the making and impacting a potential free-trade area of over 700 million people (WSJ).

Market Discipline Hits Gaming

Illustrating the brutal efficiency of free markets, gaming giant Ubisoft is undergoing a “major structural overhaul” after a period of underperformance (WSJ). The Assassin’s Creed maker is discontinuing six games, including a much-anticipated Prince of Persia remake, and postponing seven others to meet higher quality standards. This restructuring, driven by fierce market competition and consumer demand, serves as a potent reminder that innovation and value creation are not optional. In a competitive landscape, it is the consumer, not a central planner, who ultimately decides which enterprises succeed.

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

EU Lawmakers Ask for Legal Opinion on South America Trade Deal
— Wall Street Journal

Ubisoft to Undergo Major Overhaul in Bid to Revamp Fortunes
— Wall Street Journal

J&J’s Sales and Profit Rise on Strong Cancer and Autoimmune Drug Sales
— Wall Street Journal

Benioff Says AI Regulation Needs to Be Taken Seriously
— Bloomberg

‘Heated Rivalry’ Lures Sexy TV Show’s Fans to Ice Hockey Games
— Bloomberg

Canada’s Pipeline Problem Returns as Oil Sands Output Surges
— Bloomberg

Arctic Realpolitik

Washington’s focus on Greenland, framed by President Trump as a “national security” imperative, is about strategic denial and technological dominance in the High North. The US Pituffik Space Base is a critical node for missile defense and space surveillance. As melting ice opens new shipping lanes and access to resources, the region becomes a theatre for great-power competition. This is a classic geopolitical pivot where control over physical space is paramount for projecting technological and military power. The primary risk is state-led competition superseding the open, cooperative development of trade routes, a worrying trend for advocates of limited government and free exchange.

Market Tremors

The ripple effects of Arctic posturing hit European bourses instantly. Trump’s talk of tariffs sent Milan’s exchange down -0.50%, with the Italy-Germany 10-year bond spread—a key Eurozone risk gauge—widening to 64.7 basis points (Ansa). This shows how protectionist rhetoric injects costly uncertainty into markets. Yet, a counter-narrative emerged. European semiconductor firm STMicroelectronics defied the sell-off, climbing +3.2% (Ansa). Investors appear to be betting on the resilience of strategic tech sectors even as politicians engage in mercantilist brinkmanship. Innovation, it seems, remains a more potent long-term driver for capital than transient political threats.

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

Anm: ‘Stati generali della Giustizia il 15 marzo, chiederemo conto al governo’
— Ansa

Tempesta e spiagge cancellate: nuova allerta rossa tra Sardegna e Sicilia. I video
— Il Sole 24 Ore

So a cow can use a stick to scratch its backside. When will we learn that humans are really not that special? | Helen Pilcher
— The Guardian

Prinz Harry sagt gegen Boulevardzeitung vor Gericht aus
— ZDF

Der Machtkampf um die Arktis in Karten
— ZDF

Paris Hilton: Doku-Premiere in Pink
— ZDF