For Indian audiences, understanding these developments is not just about keeping informed, it’s about identifying the ripple effects that could influence India’s foreign policy and its position in an increasingly fragmented world.
Welcome to this week’s roundup of key global events and developments shaping politics, economics, and society. From groundbreaking policy shifts and diplomatic manoeuvres to emerging stories of resilience and upheaval, we bring you the latest updates and insights. For Indian audiences, understanding these developments is not just about keeping informed, it’s about identifying the ripple effects that could influence India’s foreign policy and its position in an increasingly fragmented world.
Whether it’s a headline grabbing the world’s attention or an underreported issue with far-reaching consequences, we aim to provide a clear, concise, and comprehensive overview of what matters most.
NATO boosts spending
European nations are considering a bold initiative to significantly enhance defence spending, with talks centred around a €500 billion joint fund for common defence projects and arms procurement. This ambitious plan involves tapping bond markets, signalling Europe’s growing urgency to bolster its security framework in light of President-elect Donald Trump’s return to the White House. Trump has repeatedly criticised NATO allies for underfunding their defence commitments, warning earlier this year that the US might withhold security guarantees. His remarks — “We’re not going to protect NATO allies if they are not going to pay” — have spurred European capitals to explore innovative funding mechanisms.
The proposed financing vehicle would allow participating countries to issue bonds backed by national guarantees, rather than relying on collective EU backing. This model would also be open to non-EU states like the UK and Norway, enhancing its scope. According to sources involved in the discussions, while the precise borrowing target is yet to be finalised, the fund’s scale would exceed EUR500 billion. The European Investment Bank is expected to play a role in administering the vehicle and managing treasury functions.
This marks a significant departure from traditional EU fiscal conservatism, which has historically resisted joint borrowing initiatives. Countries like Germany, the Netherlands, and Denmark, known for their fiscal hawkishness, are showing signs of warming to the idea.
Reactions across Europe
Greek Prime Minister Kyriakos Mitsotakis, who has been a vocal proponent of Eurobonds for defence, noted a palpable shift in sentiment, stating “There is a growing consensus that we need to spend more on defence, and perhaps it’s time to establish a joint European mechanism to finance projects of common interest.”
While nations such as the Netherlands, Finland, and Denmark have expressed support, Germany’s stance remains uncertain and could hinge on its upcoming February elections. Meanwhile, the UK has yet to commit but a senior British official welcomed the proposal as an “encouraging” sign of European ambition.
The geopolitical urgency behind the proposal is underscored by Europe’s dual objectives: sustaining military support for Ukraine and preparing for Trump’s potential foreign policy shifts. As one senior EU official explained, “Europe must take its security into its own hands, especially when uncertainty looms over US commitments.”
If implemented, this financing model could signal a turning point in European defence cooperation, showcasing a unified and proactive response to global security challenges.
South Korean President Yoon Suk Yeol attempts to impose martial law
South Korea is grappling with a political crisis following President Yoon Suk Yeol’s short-lived attempt to impose martial law, a move that has plunged the country into turmoil and reignited fears of authoritarianism.
The crisis unfolded Tuesday night when Yoon declared martial law, accusing the left-wing Opposition, which holds a parliamentary majority, of “paralysing state activities” and harbouring “North Korean sympathies.” The military swiftly announced the suspension of parliamentary activities, but this dramatic escalation only galvanised public outrage. Thousands of citizens gathered outside the National Assembly, protesting what they viewed as an unconstitutional power grab.
The situation intensified as troops stormed the Assembly, clashing with protesters and legislative staff. However, in a rare display of political resistance, lawmakers convened and voted to revoke the martial law order. Under mounting pressure, Yoon rescinded the decree within hours.
Opposition parties wasted no time in initiating impeachment proceedings, labelling Yoon’s actions as “treason.” Park Ahn-soo, a prominent army general, testified during the initial stages of the impeachment process, revealing that he learned of the martial law declaration through Yoon’s press conference. He pointed to Defense Minister Kim Yong-hyun as the orchestrator of the military’s actions, following the president’s directive.
Amid the backlash, Yoon accepted the resignation of Kim, who took responsibility for ordering the military to enforce martial law. This marks a striking reversal for a president who, in his 2022 inauguration speech, pledged to rebuild South Korea into a nation “that truly belongs to the people”.