The Economist Continental Europe Edition July 30, 2022

Russia said it would further cut gas deliveries to Europe through the Nord Stream 1 pipeline, supposedly because it requires repairs. The pipeline was already at 40% of capacity; it has now dropped to 20%. European governments took this as an effort to weaponise the supply of energy. They are trying to increase gas storage ahead of the winter. EU members agreed to reduce their gas usage by 15% between now and March. The reductions are voluntary, but could become mandatory if the situation worsens. Russia attacked the Ukrainian port of Odessa with cruise missiles and said it had destroyed a Ukrainian military vessel. The assault came a day after Russia and Ukraine signed a deal brokered by Turkey and the UN to allow some 20m tonnes of grain trapped…

Russia said it would further cut gas deliveries to Europe through the Nord Stream 1 pipeline, supposedly because it requires repairs. The pipeline was already at 40% of capacity; it has now dropped to 20%. European governments took this as an effort to weaponise the supply of energy. They are trying to increase gas storage ahead of the winter. EU members agreed to reduce their gas usage by 15% between now and March. The reductions are voluntary, but could become mandatory if the situation worsens. Russia attacked the Ukrainian port of Odessa with cruise missiles and said it had destroyed a Ukrainian military vessel. The assault came a day after Russia and Ukraine signed a deal brokered by Turkey and the UN to allow some 20m tonnes of grain trapped at…

The Federal Reserve raised its benchmark interest rate by another three-quarters of a percentage point, to a range of between 2.25% and 2.5%. Central banks around the world are said to have reacted too late to the threat of sharp increases in inflation, forcing them to adopt a more aggressive approach to tightening monetary policy. The European Central Bank recently lifted its deposit rate for the first time in a decade, taking it from a negative rate of 0.5% to zero. Martins Kazaks, a member of the ECB’s governing council, said that its next rate increase in September “also needs to be quite significant”. Walmart shook investors when it issued its second profit warning in ten weeks. It blamed food and fuel inflation, which is affecting how its customers spend…

The Federal Reserve raised its benchmark interest rate by another three-quarters of a percentage point, to a range of between 2.25% and 2.5%. Central banks around the world are said to have reacted too late to the threat of sharp increases in inflation, forcing them to adopt a more aggressive approach to tightening monetary policy. The European Central Bank recently lifted its deposit rate for the first time in a decade, taking it from a negative rate of 0.5% to zero. Martins Kazaks, a member of the ECB’s governing council, said that its next rate increase in September “also needs to be quite significant”. Walmart shook investors when it issued its second profit warning in ten weeks. It blamed food and fuel inflation, which is affecting how its customers spend on…

FOR ABOUT 15 years after the fall of the Soviet Union in 1991, Western foreign policy seemed to rest on sure foundations. Liberal values—democracy, open markets, human rights and the rule of law—had just prevailed over communism. America, the first and only global hyperpower, had the clout to impose this moral code against terrorists and tyrants. And tough love was justified, because history had shown that Western values were the uncontested formula for peace, prosperity and progress. Another 15 years on, Western foreign policy is in a mess. To see why, consider Muhammad bin Salman, the crown prince of Saudi Arabia. Our summer double issue, featuring profiles and long reads, leads with a deeply reported portrait of MBS, as he is known. It illustrates the erosion of each of the three…

FOR ABOUT 15 years after the fall of the Soviet Union in 1991, Western foreign policy seemed to rest on sure foundations. Liberal values—democracy, open markets, human rights and the rule of law—had just prevailed over communism. America, the first and only global hyperpower, had the clout to impose this moral code against terrorists and tyrants. And tough love was justified, because history had shown that Western values were the uncontested formula for peace, prosperity and progress. Another 15 years on, Western foreign policy is in a mess. To see why, consider Muhammad bin Salman, the crown prince of Saudi Arabia. Our summer double issue, featuring profiles and long reads, leads with a deeply reported portrait of MBS, as he is known. It illustrates the erosion of each of the…