Iran is fighting what may become the world’s first war over water. That is the stark assessment of Alain Gachet, mining engineer and founder of the Gachet Foundation, speaking on the nineteenth day of the conflict between the United States, Israel, and Iran.

The war has already claimed the lives of more than 7,000 people according to the American non-profit Human Rights Activists in Iran, while the Iranian government has been systematically dismantling strategic infrastructure — most recently the South Pars gas field, which Iran shares with Qatar and which represents the world’s largest natural gas reserve.

A crisis rooted in water scarcity

Gachet, who spent two decades in petroleum exploration before dedicating himself to researching underground water resources, argues that water lies at the very heart of this conflict. Iran consumes 93% of its gas domestically and manages to export only 7%, largely because sanctions have prevented the country from developing liquefaction infrastructure for seaborne exports. With natural resources now a primary military target — for the first time in history, Gachet notes — water has become both a weapon and an objective.

The country’s water crisis is severe and systemic. The Gulf states have long relied on desalination plants: 42% of drinking water in Gulf countries comes from desalination, reaching 90% in Kuwait, 86% in Oman, and 70% in Bahrain. The recent attack on the desalination island of Qeshm illustrates how explosive water scarcity has become. Iran extracts over 60 billion cubic meters of groundwater annually — a figure Gachet describes as unsustainable, with studies showing the plateau sinking by as much as 35 centimetres per year in some areas.

A mineral superpower hiding in plain sight

Yet beneath its parched surface, Iran sits on extraordinary wealth. The country holds some of the world’s largest reserves of zinc, copper, and uranium, and ranks among the top ten nations for mineral resources overall. From the island of Kharg alone, petroleum sales to China generate between 78 and 80 billion dollars annually.

“Iran’s subsoil is a gold mine of zinc, copper, uranium, and rare earths,” Gachet has said. “But it consumes a great deal of water.”

The solution: back to the roots

Gachet’s prescription is rooted in history. The ancient qanat underground aqueducts — abandoned in recent decades in favour of large dams built without adequate planning — could be restored and modernised with European engineering expertise to rebuild water security.

This is where Italy and Europe enter the picture. Gachet believes the continent is ideally positioned to play a central role in post-war reconstruction, both in rebuilding hydraulic infrastructure and in reactivating gas production. Italy in particular, with its technical competence in hydraulics and water management, could have a decisive role.

“The first and fundamental priority is achieving peace,” Gachet has said. “For the future of Italy, and of Europe, it is important that Iran grows.”

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Ukrainian steel industry aims to integrate into the European market as a strategic supplier of iron ore, DRI pre-reduced material, steel semi-finished products and pig iron.
To achieve this goal, decarbonization of production processes is fundamental: the European Union promotes the production and use of “clean” products in energy-intensive industrial sectors, including steel and foundries.

The Ukrainian steel industry must reduce its emissions to compete in the European market, abandoning the integrated blast furnace cycle in favor of electric steelmaking, a sector where Italy excels worldwide.

The CBAM Challenge: Decarbonize to Stay Competitive

From 2026, the implementation of CBAM (Carbon Border Adjustment Mechanism) will impose heavy EU taxes on raw steel and high-carbon semi-finished products from non-EU countries, including Ukraine. For the country under Russian siege – a candidate for European membership – the effects could be postponed to 2029, as requested by the Kyivparliament to avoid further penalizing an industry already devastated by war.

According to GMK Center estimates, Ukrainian exports to the EU risk losing 4.7 billion euros by 2030 (of which 3.3 billion in the steel sector alone) if CBAM enters into force in 2026, with an additional 2.7 billion in potential losses in industrial investments.

Regardless of timing and implementation methods, decarbonization of metallurgical supply chains is now a mandatory path. Ukrainian steel industry, which has Europe as its main market, must modernize with a green approach.

Metinvest Polytechnic’s Strategy

Professor Volodymyr Pashynskyi, head of the Department of Materials Science and Applied Mechanics at Metinvest Polytechnic – the first private technical university in Ukraine founded by the country’s main mining and steel group – explains the strategy: “Due to the Russian invasion, Ukraine and Metinvest have lost many metallurgical plants in the eastern part of the country. After the end of the war, it will be crucial to build new modern plants with advanced technologies for iron ore pre-processing, DRI pre-reduced production and melting for slabs destined for Metinvest rolled products.”

The Piombino Project: A Model for the Future

Italy plays a key role in this transformation. Metinvest, in joint venture with the Friulian group Danieli (world leader in steel technologies), will build from 2026 in Piombino a new electric arc furnace steelworks with an annual capacity of 2.7 million tons of hot-rolled coils. These products will primarily serve the Italian manufacturing industry, which currently imports them from Turkey and other Asian and North African countries.

The new low-emission Tuscan steelworks represents one of the main industrial investments planned in Italy in the coming years. It will use ferrous scrap, pig iron and pre-reduced material from Metinvest’s Ukrainian activities as raw materials.

The Metinvest Adria project in Piombino will be the reference model for the future modernization of the Ukrainian group’s steelworks in Zaporizhzhia and Kamyanske, when the war is over.

Excellence Training for Green Transition

Metinvest Polytechnic’s educational commitment fits into this direction. “Today we offer 16 three-semester Master’s programs,” says Professor Pashynskyi. “Among these stands out the four-semester scientific Master’s ‘Metallurgy Modernization Management’, which combines economic-managerial management and technological skills for the development of modernization processes in the metallurgical industry. It is the first high-level training program of this type in Ukraine.”

Partnership with Danieli Academy and Visit to Assofond 2025 General Assembly

Danieli actively participates in the Master’s program by hosting, between June and July 2025, three specialized Metinvesttechnicians at its Academy in Buttrio, Friuli. At the same time, Mill’s has organized participation in the Assofond 2025 General Assembly “Italian foundries in the European context: which industrial policies?”, in Soave on June 13, 2025, a networking opportunity for the Polytechnic with the Metinvest student/technician team.

The participants are Daniil Tymoshenko, deputy head of the energy engineering division of the Zaporizhzhia plant, Ruslan Kriukov, chief mechanical engineer for continuous casting machines at the Kamyanske plant, and Nataliia Chub, chief quality management system specialist at Metinvest Holding.

“The training month in Italy is the first step of a very long journey toward the modernization of Ukrainian metallurgy,” concludes Professor Pashynskyi. “Our students and technicians have the opportunity to see Danieli’s best practices and most advanced technologies for green steelmaking, from pre-reduced production to flat and long rolled steels.”

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By Editorial Office

DeepSeek R1, a breakthrough AI language model developed by Chinese lab DeepSeek, has sent shockwaves through the tech industry since its launch last week. The system has not only topped download charts but triggered a massive $1 trillion tech stock sell-off, highlighting growing tensions in the AI race between China and the West.

DeepSeek, founded in 2023 as a subsidiary of Chinese hedge fund High-Flyer, has achieved what many thought impossible: creating a state-of-the-art AI system at a fraction of the cost of its Western counterparts.
R1’s development reportedly cost just 5% of what OpenAI spent on their comparable o1 model, while using only one-tenth of the computing power required by Meta’s Llama 3.1.

The system’s success lies in its “chain of thought” architecture, which allows it to reason through problems step by step, significantly improving its performance in areas like mathematics and coding. Unlike its competitors, R1 is freely available both to users and developers, challenging the subscription-based model of platforms like OpenAI’s o1, which charges $20 monthly.

R1’s emergence challenges Silicon Valley’s prevailing approach to AI development, which relies heavily on scaling up existing models through massive data inputs and computing power. This strategy has led to skyrocketing energy costs and increasing dependence on government support, exemplified by Trump’s recent $500 billion “Stargate” initiative.

According to James Vincent in The Guardian, the impact of R1 extends beyond technological achievement. It has exposed the AI industry’s volatile nature and its susceptibility to market panic, suggesting that the sector’s stability might be more precarious than previously thought.
As the industry grapples with this new reality, the launch of R1 may mark a turning point in the global AI landscape, demonstrating that innovation doesn’t always require massive resources – sometimes, it just needs a different approach.

The exact effects of R1’s launch are impossible to predict. There are too many complicating factors and too many unknowns to say what the future holds. However, that hasn’t stopped the tech world and markets reacting in a frenzy, with CEOs panicking, stock prices cratering, and analysts scrambling to revise predictions for the sector. And what this really shows is that the world of AI is febrile, unpredictable and overly reactive.

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By Anna Arenti

We are navigating in turbulent times, witnessing renewed international conflict, resurgent nationalism, declining multilateralism, and a torrent of hostile propaganda.
How are we to understand these developments and conduct diplomacy in this situation?

Nicholas J. Cull, the distinguished historian of propaganda, revisits the international media campaigns of the past in the light of the challenges of the present. In his groundbreaking work “Reputational Security: Refocusing Public Diplomacy for a Dangerous World” (Polity, 2024), Cull argues that Joseph Nye’s concept of soft power, while “a perfect idea for the post-Cold War world,” has run its course.
The era of “benevolent unipolarity” has been overtaken by the “return of full-fledged power competition in a media-saturated age” and weakened by unprecedented developments in information technologies.

His concept of Reputational Security deftly links issues of national image and outreach to the deepest needs of any state, rescuing them from the list of low-priority optional extras to which they are so often consigned in the West. Reputational Security, he argues, comes from being known and appreciated in the world.

With clarity and determination, Cull examines core tasks, approaches, and opportunities available for international actors today, including counterpropaganda, media development, diaspora diplomacy, cultural work, and – perhaps most surprisingly – media disarmament.

This book is crucial for all who care about responding to the threat of negative media disruption, revitalizing international cooperation, and establishing the Reputational Security we and our allies need to survive and flourish.

The concept of reputational security emerges as particularly relevant in cases like Ukraine’s experience. The “shock of 2014” – Ukraine’s loss of territory with little response from the global public – serves as a stark reminder of what can happen when a country’s national narrative is not widely known or understood.
Ukraine has since dramatically improved its image projection, positioning itself in 2022 as a champion of democracy on the front lines of freedom.

Similar examples include Taiwan’s efforts to build and preserve its reputation in the face of Chinese aggression, and Kazakhstan’s promotion of pluralism to counter external perceptions of its social and economic inequities.

To summarize, therefore, Cull proposes comprehensive pathways to enhance reputational security through counterpropaganda, media development, information disarmament, diaspora engagement, and cultural relations. However, he acknowledges that there is “no clear strategy in play and certainly no vision of the kind necessary to rally the U.S.” in the global imagination.

This book is essential reading for students and scholars of public diplomacy, international relations, security studies, communications, and media, as well as practitioners.

Nicholas J. Cull is Professor of Public Diplomacy at the University of Southern California’s Annenberg School for Communications and Journalism.

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By Editorial Office

Italian manufacturers stand as the European nation with the highest proportion of steel production from electric furnaces. The electric steelmaking sector accounted for a rather impressive 86% of national sector output in 2023, whilst the EU average sits at a mere 45%. Furthermore, Italy holds the position of second-largest steel-producing country in Europe.

Consequently, Italian industry has become rather dependent on ferrous scrap, which is absolutely essential for electric furnace operations. However, whilst the national collection and recycling rates are quite commendable, they fall rather short of meeting Italian steel industry’s requirements. The shortfall must be imported.

The situation in the rest of Europe is quite different indeed. Unlike Italy, the EU as a whole finds itself in the position of being a net exporter of scrap. At least until now.

The conversion from integrated cycle with carbon-intensive blast furnaces to electric ones is expected to sweep across the continental steel industry over the next decade — all part of the pressing matter of CO2 reduction. Therefore, the demand for ferrous scrap shall increase quite substantially. Meanwhile, the quantity of recycled scrap entering the steel cycle is likely to decrease, owing to declining consumption and product replacement rates.

In light of these circumstances, European steel producers, united under Eurofer (to which Federacciai belongs), have been rather insistent about implementing measures to curtail scrap exports to non-EU countries.
Turkey, in particular, currently absorbs more than half of the approximately twenty million tonnes of scrap exported annually from Europe.

On the other side of the fence stand the companies involved in collecting, processing, and trading scrap metal. The outflow is quite significant, they argue, because European demand for scrap remains well below supply. According to the sector, forcing scrap retention in Europe would be a frightful distortion of the market, causing prices to plummet and creating considerable difficulties for industry operators.

The Italian trade association Assofermet Rottami is decidedly opposed to the export ban, maintaining that as European steel industry demand increases, scrap will naturally remain on the continent — provided that European steel mills offer competitive prices compared to their non-EU counterparts.

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By Editorial Office

This article is based on “Five undervalued qualities of the Indian economy” by Tej Parikh, originally published in the Financial Times.

As India continues to assert its position on the global economic stage, it’s crucial to look beyond the well-known narratives of rapid growth and large population.
This analysis explores five often-overlooked aspects of India’s economy that could significantly shape its future trajectory. These underappreciated factors reveal a more nuanced picture of India’s economic potential and its unique position in the global marketplace.

1. Emerging Services Power

India is rapidly evolving beyond its reputation as the “world’s back office.” Multinational corporations are increasingly tapping into the nation’s tech-savvy talent to develop “global capability centres” (GCCs). These hubs conduct high-value activities such as design, research and development, and data analysis.

According to Ernst & Young, India accounted for more than 45% of the GCCs in the world outside of the home country in early 2023. Major companies like IBM, Google, Goldman Sachs, and Novartis have established GCCs in India. This trend suggests that India could become the world’s research hub, complementing China’s role as the global manufacturing center.

2. Talented Workforce

India’s emerging comparative advantage in services stems from its young and large workforce. Approximately one million workers enter the Indian labor market every month. While this presents challenges, it also creates enormous opportunities.

Over one-third of Indian students choose STEM degrees, giving the country one of the largest pools of graduates in digital services, engineering, computing, and data sciences globally. According to LinkedIn data, India has the highest AI skill penetration rate in the world. This abundance of talent in high-demand fields positions India well for the future of work.

3. Entrepreneurial Spirit

India’s culture of “Jugaad” (frugal innovation) is a significant, yet often underappreciated asset. This “can-do” attitude is evident across various sectors, from the efficient dabbawala lunch delivery system in Mumbai to the country’s low-cost space program.

The country boasts the third-largest startup ecosystem globally and is home to 271 billionaires, ranking third worldwide. Innovative companies like Zomato, Flipkart, and Ola Electric have emerged in recent years, showcasing India’s entrepreneurial prowess. This spirit of innovation and resourcefulness could be a key driver of future economic growth.

4. Maturing Capital Markets

India’s capital markets have seen significant growth in recent years. The National Stock Exchange of India’s market capitalization has more than doubled since 2020, now ranking fourth globally. The country has also experienced a boom in IPO activity.

India is currently the second-largest destination for venture capital and growth funding in Asia-Pacific. The expected increase in India’s weight in MSCI benchmark indices should support further capital flows. This maturing financial ecosystem is crucial for channeling investment into innovative businesses and supporting economic growth.

5. Economic Resilience

India’s economic model appears to offer greater resilience compared to other emerging markets. The country’s strength in services exports makes its growth more robust and less vulnerable to global demand fluctuations. Services exports accounted for about 44% of India’s overall exports in the last financial year.

Moreover, India’s democratic foundation, which preceded its economic takeoff, has provided a stable base for growth. The country has consistently grown its GDP per capita at 4.5% or higher for four decades, a feat achieved by only nine countries since 1950. India stands out among these for being consistently democratic throughout this period.

Lastly, India is well-positioned to benefit from digital and green growth trends. Its world-leading digital infrastructure system, covering universal identity cards, rapid financial transactions, and data sharing, has cut red tape, boosted digital enterprises, and improved economic inclusion.

While challenges remain, including the need for continued investment in education and infrastructure, these five factors highlight India’s unique position in the global economy. They suggest that India’s potential for sustainable growth may be even greater than commonly recognized, positioning the country as a key player in the global economic landscape of the coming decades.

(Source: Financial Times, “Five undervalued qualities of the Indian economy” by Tej Parikh)

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By Editorial Office

In an era when many countries are facing the challenges of artificial intelligence and edtech, Ukraine is managing its education system in the midst of a war.

Ukraine’s Deputy Minister of Education, Mychailo Wynnyckyj, offers a unique look at how the country is not just surviving, but innovating in these extraordinary circumstances.

Wynnyckyj describes the current situation with a powerful metaphor: “It’s a bit like trying to rebuild a turboprop plane into a jet while flying at maximum capacity at 10,000 feet. And with missiles being fired at you at the same time.”

Despite the challenges, the ministry is managing the day-to-day operations of the national education system while simultaneously reforming it. Surprisingly, Ukrainian universities have become crucial innovation hubs for the war effort. Wynnyckyj reveals: “If it weren’t for Ukrainian universities as technology centers, we wouldn’t have anti-radar equipment; we wouldn’t have long-range drones; we wouldn’t be leaders in cyber defense.”

A distinctive aspect of the Ukrainian approach is bottom-up innovation. “In Ukraine, technological innovation usually starts from the bottom,” explains Wynnyckyj.
This approach has led to significant developments, with individual battalions collaborating with university laboratories to create innovative solutions.

The minister attributes this resilience and innovativeness to the country’s strong social capital. “Ukrainians have proven to be extraordinarily resilient. And this is a point of pride for us,” he states.

Wynnyckyj sees this as the result of an education system that teaches solidarity and resilience from a young age. Despite the challenges, Ukraine is making significant progress in technological and language education. “We implement technology education in one way or another from first grade,” says Wynnyckyj. Additionally, 95% of Ukrainian students receive some form of English language education from first grade.

The war has also accelerated the adoption of distance learning solutions. Wynnyckyj proudly mentions the Diia.Education platform, which involved more than 6 million Ukrainians during the pandemic and invasion. Looking to the future, Wynnyckyj emphasizes the importance of emerging from this war as a better country, not only in terms of infrastructure but also in human and social capital.

His balanced approach is summed up in a phrase he often quotes: “Take the best from the West and leave them the rest.” The Ukrainian experience offers valuable lessons on how an education system can not only survive but also innovate in extreme circumstances, highlighting the power of resilience, bottom-up innovation, and adaptability.​​​​​​​​​​​​​​​​

In the photo, students from the Polytechnic University of Zaporizhzhia

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By Editorial Office

Dynamics of Major Economic Powers

The Contention Between the United States and China

Politically, the United States and China are presently engaged in a fierce competition for global influence. Meanwhile, Europe appears to be sidelined in major international discussions, creating significant challenges for its export markets and production systems.
This situation compels countries such as Germany, which serves as Europe’s economic powerhouse, to reassess and strategically reorient their investments.

The Impact of Chinese Overproduction

The two major economic players, the United States and China, have established their trade wars, and structural issues are bound to emerge sooner or later; from an economic standpoint, the BRICS theme is gaining more media attention.
However, even within the BRICS, there are tensions as China, with its overproduction, is flooding the global market with low-cost products, prompting many countries to increase tariffs, creating discontent among BRICS members and highlighting an increasingly intense global trade competition.
Ultimately, we are witnessing the formation of separate trade blocs.

Economic Transformations in China and India

The Development of Domestic Markets

China and India have begun to develop robust domestic markets and produce high-value-added goods, thereby reducing imports from Europe.
To respond to this situation, Germany has heavily invested in these countries. However, this has had negative repercussions throughout the entire supply chain, causing economic difficulties. Furthermore, Germany, having invested heavily in China and Russia, has found itself needing to buy raw materials and gas at reduced prices.
Economically, the war phenomenon has hit Germany hard, creating an economic blockade in Europe.

The Political Repercussions of Economic Transformations

Economic transformations are already impacting political dynamics.
For example, there is an ongoing debate about the introduction date for 100% electric cars, scheduled for 2035. Some are pushing to postpone this date to gain the necessary votes to form a political majority.
This reflects the difficulty Europe and the United States face in planning and adopting effective strategies for electrification and other technological innovations.

Challenges and Trade Barriers

Strategic Planning and Adaptation

One of the main challenges is the lack of coherent strategic planning. Europe, in particular, depends on the decisions of individual countries’ heads of state, making it difficult to define a common strategy.
Only in recent years, especially after the pandemic, has Europe begun to recognize economic pressures and the need to quickly adapt to these changes. However, the road ahead is still long and complex.

Consequences of New Trade Barriers

New trade barriers will significantly impact global economic dynamics. European companies will need to adapt to this new reality to remain competitive. This requires a reconfiguration of business strategies, which will be crucial for addressing future challenges. These trade blocs will have varying degrees of barriers, completely changing the trade landscape of the past twenty years, from 1990 onwards. This necessitates a reconfiguration, highlighting that there are permanent crises to which companies must adapt to survive.

Sectors in Difficulty

Automotive and Oil & Gas

The automotive and oil & gas sectors are among those facing the greatest challenges. These sectors should be considered independently as they require completely different strategic visions. However, both Europe and the United States have started late in the electric sector. This situation results from a lack of strategic planning. In Europe, the difficulty is amplified by the fact that decisions depend on the heads of state of individual countries, making it hard to define a common strategy.

China’s Technological Leadership

China began its push towards electric vehicles over 15–20 years ago, becoming the primary owner of raw materials for battery and photovoltaic panel production. It has invested enormously in these industries, effectively crushing producers worldwide. This phenomenon was already evident in the early 2000s when many European producers disappeared due to China’s price dumping policies and overproduction.

The United States’ Response

The United States, lacking a domestic industry capable of competing, relied on Chinese and Asian production systems. This financial model proved unsustainable when Americans realized they could no longer control China as they thought. Consequently, especially during the pandemic, they invested billions of dollars in building local industries for chips, photovoltaic panels, and other technologies, trying to respond to Chinese competition.

Impacts on Italian Companies

The Decline of Exports to Germany

In this phase of global transformation, Italian companies are facing various crises. A notable aspect is the collapse of exports to Germany. For instance, in the first quarter, Friuli Venezia Giulia region recorded a 19% drop in exports. This situation is widespread in many other Italian regions.

Dependence on Germany and the United States

Globally, Italy is strongly linked to Germany and the United States. The United States became an important market for Italy in the second half of the period between 2015 and 2020. However, Germany has always been the central economic engine for us, especially due to its dominant role in exports, particularly in the automotive sector. About 30% of Germany’s GDP comes from the automotive industry, which has dragged many of Italian companies along.

The Transition to Electric Vehicles

Challenges for the European Automotive Industry

The European automotive sector is facing unprecedented challenges due to the transition to electric vehicles. Europe started late in the electrification race, with China holding the global leadership in electric vehicle and battery production. European companies must invest heavily in new technologies to remain competitive.

The Role of Technology in Global Competition

Global competition is increasingly played out on the technological front. The United States and China are investing enormously in innovation, leaving Europe in a trailing position. The production of advanced technologies, such as electric cars and photovoltaic panels, is dominated by China, which has been able to plan its strategic investments long-term.

Innovation and the Labor Market

Technological Competition

Looking at patents filed in recent years, the United States, Korea, and China are leading. The United States is the primary filer, followed by Korea and China. However, it is important to translate these technological advances into the real economy. For example, in the United States, advanced sectors like artificial intelligence and technology employ about 600,000 — 1,000,000 people, much less than the millions of jobs in factories of the past. This change reshapes value chains and production.

Challenges for Italian SMEs

Italian SMEs face several challenges, including shrinking margins, inflation, and the cost of money. The biggest difficulty, however, is finding qualified technical personnel. While SMEs are agile and adaptable, the lack of industrial planning and fragmented subsidies make it difficult to compete. Recently, the Ministry of Made in Italy introduced a research center to identify gaps and improve supply chain competitiveness.

Economic and Trade Policies

The Role of the United States as a Trade Partner

The United States is a key market for Italy, especially in investment goods where Italy is strong. However, the United States is pursuing a policy of industrial reshoring, bringing production back to the national territory. This creates new challenges and opportunities for Italian companies, which must adapt to these dynamics to remain competitive.

Strengths of the Italian Industry

Besides the classic Made in Italy in the food and beverage and clothing sectors, the Italian industry is strong in mechanics, automation, intermediate goods, and pharmaceuticals. The United States is a central market for Italy. However, in recent years, the United States has erected significant trade barriers, opening a trade war with Europe. This trend started during the Trump era, which amplified a situation already underway, built on the reshoring platform initiated by Obama in 2008 with the Chrysler-Fiat case.

European Industrial Policies

The Demands of the European Manufacturing Industry

The European manufacturing industry calls for clear industrial and economic policies that consider the already set development goals. One of the key themes is the development of a European supply chain for batteries and green technologies. However, Europe still heavily depends on Chinese imports for low-cost products like electric cars and photovoltaic panels.

European Trade Policies

Recently, the European Union imposed high tariffs on electric cars imported from China. However, cheaper Chinese electric cars could help achieve the goal of spreading electric vehicles. Germany and France, which export significant volumes to China, are concerned about possible Chinese retaliations.

Future Direction for Europe

Balancing Protection and Access to Technologies

European economic policy must find a balance between protecting its industries and maintaining access to low-cost technologies. For example, Minister Urso has been in China to discuss setting up an electric car production plant in Italy. Spain and Hungary are already ahead in this regard. However, history has shown that tariffs are not an effective solution. Instead, supply chains need to be restructured to address these challenges. In Mexico and Brazil, China has already adopted strategies to circumvent tariffs by restructuring production chains.

Long-Term Implications

Trade barriers tend to increase costs for consumers without solving structural problems. The response should be technological, not protectionist. The United States has invested heavily in technologies like chips and photovoltaic panels, trying to bridge the gap with China. Europe must adopt a similar strategy, incentivizing internal technological development to remain globally competitive.

Incentives for Technological Development

Instead of relying on tariffs, the state should incentivize the technological race. Whenever we have seen major economic shocks, such as the 1974 oil crisis, there has been a push towards new transportation systems. Today, the response to electric vehicles could be hydrogen. The response must be technological, not protectionist. Tariffs are easily circumvented by trade policies, while free trade agreements offer more lasting solutions.

Challenges and Opportunities for Italian SMEs

The Need for Adaptation

Italian SMEs are under pressure due to inflation, the cost of money, and the difficulty of finding qualified personnel. Many are adaptive and can move quickly, but without clear and centralized industrial planning, it is difficult to compete. For example, the Ministry of Made in Italy introduced a research center to identify competitive gaps, but we are still far from a complete solution.

Managing Geopolitical Risks

Companies are becoming more aware of geopolitical risks and many have initiated strategies to diversify supply chains. We see the world divided into three macro areas: the United States and Latin America, Europe and Africa, and Asia. Free trade agreements will become increasingly important, and companies must adapt to these new trade highways. Export compliance will be crucial, requiring professionals who can manage these complexities.

The Future of Ukraine and Opportunities for Italian Companies

The perception is that there will be a moment when significant investments are needed, but this is seen as a distant future. Financial sustainability is not infinite, and there is much uncertainty. Some large companies are already positioning themselves strategically, but most Italian companies do not yet prioritize this development. However, those who prepare today will be ready to seize opportunities when the time comes.

The Importance of Geopolitics in Business Strategies

Geopolitics has become a central factor in business strategy. The need to diversify supply chains and adapt to new trade regulations has become essential for the survival and success of businesses. Companies must navigate an increasingly fragmented and complex world.

The world is witnessing a broad economic and commercial transformation. European companies, and Italian ones in particular, must face significant challenges to adapt to a rapidly evolving global landscape. Investments in technology, supply chain diversification, and adaptation to new geopolitical dynamics will be essential to navigate this new context.

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By Editorial Office

The economic transformation of the Philippines is proceeding without fanfare and is benefiting from American policy, according to an article in The Economist on April 23, 2024. While relations with China are poor due to disputes over maritime territorial claims, there is a high level of integration with the US in terms of outsourced service economy. This type of economic relationship could be less affected by potential increases in protectionist policies in the coming years.

What is certain is that Western media rarely discusses what is happening in Manila and in the approximately 8,000 islands of the Philippine Archipelago, of which 2,000 are inhabited by 120 million people.

The Philippines is part of the so-called Tiger Club Economies of the ASEAN area, the Association of Southeast Asian Nations, along with Indonesia, Malaysia, Thailand, and Vietnam. Since 2019, the GDP growth rate has hovered around 6%, with the sole exception of 2020 due to the impact of Covid. In 2024, it will exceed 400 billion euros at current prices, with a GDP per capita of 4,000 dollars.

Demographics are helping the country’s economic development. The Philippines is indeed a young nation. Many citizens are of working age, and the unemployment rate is below 5%. This is true even though economic and social differences remain very strong in a population that is still widely distributed in rural areas (agriculture represents 9% of GDP but still employs 25% of the workforce). Also notable is the contribution of the two million Filipino immigrants living abroad: their currency remittances in 2022 reached a value of 36 billion dollars, 9% of the annual GDP.

Over 60% of the economy is made up of services, with particular relevance in the call center sector and more generally in Business Process Outsourcing (BPO) activities aimed at Western markets, primarily for American multinationals. From this point of view, the Philippines’ greater cultural and linguistic proximity to the West helps (Christianity is by far the most widespread religion, while English is effectively the country’s second language). As many as 1.7 million Filipinos work in outsourced service companies, and the sector’s revenues at the national level are expected to increase by 9% in 2024, reaching a value of almost 40 billion euros. Tourism is also important, although it has not yet returned to pre-Covid levels.

The expansion of industry has also been remarkable, now representing 30% of GDP, although within the ASEAN area, the Philippines does not reach either Vietnam’s manufacturing level or Indonesia’s mining and primary metal processing sector. The country is, however, very rich in deposits, including nickel and copper. In manufacturing, the automotive, aerospace, and electronics sectors are growing, with establishments of various American, European, and Japanese multinationals. Prospects are also good for agro-industry.

Therefore, there is more than one sector in which European companies can consider investing in the Philippines. Although, at the moment, significant legal obstacles remain that limit foreign investors to not exceeding 40% of shares in many sectors. These are even more stringent in agriculture, where ownership is highly fragmented due to the legal limit of five hectares of land per farmer, which does not help economies of scale and farm efficiency.

Particularly ambitious are the ongoing plans for extending and modernizing transport and digital infrastructure, starting with airports, roads, and connections between the many islands. Manila should have its first underground metro line by 2029. The government, which manages public debt not exceeding 60% of GDP, is investing heavily in broadband internet access, which is still very uneven, including through the possibility of opening the market more to competition between different operators. This is a market that attracts foreign investments. Meanwhile, as many as 70% of Filipinos have registered in the national digital identity system, which should facilitate online commerce and public administration services.

The transformation of the energy sector, however, is modest for now, with fossil sources remaining predominant.

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By Editorial Office

The goal is to obtain high-purity iron from low-grade minerals, usable for steel production with electric arc furnaces, and to power the process using only energy from renewable sources.

The formula for the “miracle” of green steelmaking seems to have been found in Colorado by a startup supported with capital from two giants of the digital economy: Amazon and Bill Gates.

The news, reported by Tomorrow’s World Today, concerns the inauguration of an Electra facility that will produce clean metal using high-impurity minerals. The process used by Electra transforms low-quality iron minerals into high-purity iron at 140 degrees Fahrenheit, a much lower temperature compared to traditional coal furnaces.

Electra’s iron, 99% pure, can be used along with recycled scrap to produce low-emission steel in electric arc furnaces.

Sandeep Nijhawan, CEO and co-founder of Electra, stated: “Clean iron produced from a wide range of minerals is crucial to sustainably decarbonize the steel industry.” The green steel sector presents “a trillion-dollar market opportunity,” according to Carmichael Roberts of Breakthrough Energy Ventures, Bill Gates’ energy innovation fund.

Electra plans to increase production to commercial levels. BHP, a major iron ore supplier and investor in Electra, provided the ore for the pilot project.

In 2022, Electra received $85 million in funding from backers, including Breakthrough Energy Ventures. “Electrifying iron production at low cost without carbon emissions represents a paradigm shift for the steel industry,” says Roberts.

Electra’s project also aims to produce clean iron plates measuring 3.3 feet square, gradually increasing production capacity.

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