WSJ What’s News – Episode Summary: “Does Europe Have What it Takes to Fight Russia?”
Release Date: March 14, 2025
Host: Kate Bullivant (The Wall Street Journal)

1. US Government Funding and Avoiding a Shutdown

The episode opens with a crucial discussion on the political maneuvering in the US Senate to prevent a government shutdown. Senate Majority Leader Chuck Schumer made a politically bold move by supporting a Republican funding bill, despite potential backlash from his own party.

• Chuck Schumer on His Decision:
  "There is no good option," Schumer stated at [01:45], emphasizing that a shutdown would be more detrimental than the GOP bill.

The GOP’s funding bill aims to provide the Trump administration with increased flexibility to downsize federal agencies, a contentious issue among Democrats. Schumer argued that allowing a shutdown would empower President Trump to lay off federal workers beyond those agencies already targeted, framing the decision as a lesser evil to maintain government operations.

Additionally, judicial interventions have complicated the funding scenario:

• Judicial Rulings:
  "A US District judge in California yesterday ruled that probationary workers officers from six federal departments... should be offered their jobs back immediately," as reported at [02:06].
  "Later in the day, a US District judge in Maryland issued a similar ruling," reinforcing the administration's challenges in maintaining workforce stability.

2. Trump's Birthright Citizenship Initiative

The Trump administration is actively pursuing a controversial plan to restrict birthright citizenship, challenging the long-standing interpretation of the 14th Amendment.

• Legal Context:
  The administration asserts that children born in the US to parents without legal residency are not subject to US jurisdiction, thereby denying them citizenship. This initiative has been escalated to the Supreme Court, seeking to override lower court decisions that have blocked such decrees.

3. Market Movements: Record Gold Prices and Stock Market Volatility

The podcast transitions to financial markets, highlighting significant movements driven by global uncertainties and economic concerns.

• Gold Price Surge:
  "Gold rallied overnight to reach a record high of $3,000 a troy ounce for the first time ever," reported at [03:40]. Europe finance editor Alex Frangos elucidates the factors:

  • "There's a lot of uncertainty in the world and gold is a millennia-old safe haven for investors," Frangos explains at [04:28].
  • Concerns about a potential recession and declining interest rates are making gold an attractive speculative asset, further driving its price upwards.

• Stock Market Correction:
  The S&P 500 has entered correction territory, dropping over 10% from its February high, reflecting heightened market volatility and investor anxiety amidst geopolitical tensions and economic uncertainties.

4. Versace’s Creative Transition and Brand Challenges

In the fashion industry segment, Donatella Versace's longtime creative director has resigned amid internal conflicts, impacting the brand's strategic direction.

• Internal Tensions:
  The creative director clashed with US Corporate Chief John Idol over strategies to broaden Versace's market appeal. Idol's attempts to diversify sales reportedly conflicted with Donatella’s established vision characterized by bright colors and bold prints since 1997.

• Potential Sale to Prada:
  Due to declining sales, insiders suggest that John Idol is considering selling Versace to luxury rival Prada, indicating significant shifts within the fashion powerhouse.

5. Europe’s Military Capability to Combat Russia Without US Support

A central focus of the episode is Europe’s ability to stand against Russian forces independently, especially in light of perceived wavering US commitment to NATO.

• Europe’s Military Strength:
  Dan Michels, the Journal’s Brussels bureau chief, provides an insightful analysis:

  • "At the moment, Europe together is a formidable fighting force," Michels remarks at [07:20].
  • Europe boasts over 2,000 combat planes compared to Russia's slightly more than 1,000, nearly doubling the aerial strength.
  • Historical performance indicators show that Russia has lost a significant portion of its fighter planes in Ukraine, underscoring Europe's tactical advantages.

• Concerns Over US Absence:
  Despite Europe's numerical superiority, the lack of US support raises critical concerns:

  • "Europe relies on the US for sort of the backbone of fighting, communications, intelligence, reconnaissance, surveillance, things that it's still possible to fight without them, but it's kind of like fighting blind," Michels explains at [08:59].
  • The US provides advanced military capabilities and experience from prolonged engagements in conflicts like Iraq and Afghanistan, which Europe currently lacks.

• European Response and Future Plans:
  To address these gaps, Europe is ramping up defense spending:

  • "Europe is going to be spending a lot more money on defense," Michels notes at [10:23].
  • This increased investment aims to build larger, more advanced militaries and develop robust military industries, potentially enhancing European independence but also risking increased regional tensions.

• Implications for Peace and Stability:
  While bolstering military capabilities may deter Russian aggression, it could also elevate tensions within Europe, as the historical precedent suggests that larger standing armies and armaments do not necessarily lead to long-term peace.

6. US and Ukraine Collaboration on Drone Technology

Shifting to technological advancements in military hardware, the podcast highlights a strategic partnership between the US and Ukraine in developing advanced drones.

• Drone Development Partnerships:
  "We have a smattering of official partnerships... leveraging all this Ukrainian know-how... with the software skills that American engineers really excel at," a KPMG representative explains at [12:08].

  • Ukrainian drone manufacturers, honed through years of conflict, are collaborating with US startups to produce more reliable and advanced drones for future military applications.

• Challenges and Opportunities:
  Despite significant investment, many US-developed drones struggle with performance issues. This collaboration aims to harness Ukrainian expertise to overcome these challenges, potentially revolutionizing drone technology for the Pentagon's needs.

Conclusion

In this episode of WSJ What’s News, host Kate Bullivant navigates through a complex landscape of political decisions in the US Senate to prevent a government shutdown, market fluctuations driven by global uncertainty, and significant shifts in Europe’s military strategies amidst questions of US support. The discussion underscores Europe's formidable yet challenged position in potentially confronting Russia independently, highlighting both their strengths and the critical support they lack from the US. Additionally, innovative collaborations in drone technology between the US and Ukraine signal evolving dynamics in modern warfare. This comprehensive analysis provides listeners with a nuanced understanding of the interplay between politics, economics, and military strategy shaping today’s global landscape.

Notable Quotes:

• "There is no good option," – Chuck Schumer ([01:45])
• "Europe relies on the US for sort of the backbone of fighting, communications, intelligence, reconnaissance, surveillance, things that it's still possible to fight without them, but it's kind of like fighting blind," – Dan Michels ([08:59])
• "We have a smattering of official partnerships... leveraging all this Ukrainian know-how... with the software skills that American engineers really excel at," – KPMG Representative ([12:08])

Produced by Daniel Bark and Sandra Kilhoff. For more insights and detailed analyses, tune into future episodes of WSJ What’s News.