
Seven killed by bridge blasts in Russian regions
Russia's Investigative Committee, which probes serious crimes, linked the incidents and said explicitly that both bridges were blown up. In the Bryansk region, social media pictures and videos showed passengers trying to climb out of smashed carriages in the dark. Part of the passenger train was shown crushed under a collapsed road bridge and wrecked carriages lay beside the lines. "The bridge was blown up while the Klimovo-Moscow train was passing through with 388 passengers on board," Alexander Bogomaz, the region's governor, told Russian television.
The Russian regions bordering Ukraine have been subject to frequent attacks by Ukraine since Russia invaded Ukraine in February 2022. Both sides accuse the other of targeting civilians, and both deny such accusations. There was no immediate comment from Ukraine on the incidents, which took place just a day before the United States wants Russia and Ukraine to sit down to direct talks in Istanbul to discuss a possible end to a war which, according to Washington, has killed and injured at least 1.2 million people.
Ukraine's HUR military intelligence agency said on Sunday that an explosion had derailed a Russian military train hauling cargo and fuel trucks near the settlement of Yakymivka, in a Russian-controlled part of Ukraine's Zaporizhzhia region. The agency did not claim responsibility or attribute the explosion to anyone, though Ukraine has in the past claimed a series of attacks deep into Russia.
Russian politicians lined up to blame Ukraine, saying it was clearly sabotage aimed at derailing the peace talks which the United States has demanded. "This is definitely the work of the Ukrainian special services," the chairman of the defence committee of the lower house of the Russian parliament, Andrei Kartapolov, told the SHOT Telegram channel. "All this is aimed at toughening the position of the Russian Federation and stoking aggression before the negotiations. And also to intimidate people. But they won't succeed."
US President Donald Trump has demanded the sides make peace and he has threatened to walk away if they do not - potentially pushing responsibility for supporting Ukraine onto the shoulders of European powers. But as politicians talk of peace negotiations, the war is heating up, with swarms of drones launched by both Russia and Ukraine and Russian troops advancing at key points along the front in eastern Ukraine.
Meanwhile, Ukraine attacked Russian nuclear-capable long-range bombers at a military base in Siberia on Sunday, the first such attack so far from the front lines more than 4,300 km away, according to pro-Russian bloggers. Unverified video and pictures posted on social media showed Russian strategic bombers - whose purpose is to drop nuclear bombs on distance targets - on fire at the Belaya air base north of Irkutsk.
A Ukrainian intelligence official said that Ukraine's domestic security agency, the SBU, conducted a large drone attack on over 40 Russian military aircraft. The Ukrainian source, speaking on condition of anonymity to Reuters in Kyiv, said the struck aircraft included Tu-95 and Tu-22 strategic bombers, which Russia uses to fire long-range missiles at Ukraine.
Igor Kobzev, the governor of Irkutsk, said that there had been a drone attack on a military unit near the village of Sredny in the Usolsky district, but did not mention strategic aviation. In video that he posted on Telegram, drones could be heard flying overhead and a giant plume of smoke rising into the sky. — Reuters
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Last year, former Italian Prime Minister Mario Draghi produced a landmark report on the future of European competitiveness, in which he recommended that the European Union increase annual investment by more than €800 billion ($930 billion) – the equivalent of more than 4% of its GDP. This report has now become the intellectual foundation for an ambitious strategy to revitalize growth in Europe. But Europe should be careful what it wishes for. As Japan has shown, investment is no panacea. The idea that more investment is the key to economic success is a potent one in Europe. The so-called Lisbon Strategy, launched in 2000, sought to increase investment in research and development to 3% of GDP. That target has remained on the official EU agenda for a quarter-century, but has never been reached. In 2015, the European Commission added another investment goal: its Investment Plan for Europe sought to mobilize €315 billion in additional investment within three years, in order to increase competitiveness and long-term growth. But investment has not saved Japan from several decades of stagnation. Since 1970, Japan's gross fixed capital formation has averaged – and, often, significantly exceeded – 30% of GDP. That is much higher than not only the EU average, but also the rate in Germany, the EU's strongest economy, where gross fixed capital formation has hovered around 23% of GDP. The four-percentage-point difference between the most recent values (26% in Japan, and 22% in both Germany and the EU) amounts to about €800 billion annually – exactly the amount Draghi recommends adding to total EU investment. Of course, the type of investment matters. 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Now, Japan is the world's fourth-largest economy, having recently fallen behind Germany despite having a much larger population (120 million, compared to 80 million), owing partly to yen depreciation. One might argue that this is an unfair comparison, because evaluating an economy at current exchange rates, without accounting for inflation differentials, does not adequately reflect quality of life. But if one looks at per capita income at purchasing power parity, Japan was at rough parity with Germany 20 years ago, and is now doing worse than Italy. In any case, exchange rates are not irrelevant, at least politically: Japanese are well aware of their declining purchasing power when they travel abroad, and they undoubtedly notice foreign tourists flaunting their purchasing power in Japan. This may have helped to create fertile ground for the far right. So, what explains Japan's economic underperformance? The answer is not unfavorable demographics. 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But, in 2022, the leading spenders on R&D in Japan accounted for only 7.3% of global CVC investment. That is about one-third of EU companies' share (22%), but given that the EU economy is about four times the size of Japan's, these levels are similar, in relative terms. The EU did much better than Japan by another measure, however: over 40% of European firms' CVC investment went to local startups. In Japan, that share was miniscule – 0.01% – with the rest going mostly to start-ups in the United States. Furthermore, US and even Japanese companies have delivered substantial CVC funding to EU companies, which attracted a total of about 9% of global CVC funding in 2022. That is much less than the 80% that went to the US, but also significantly more than the tiny share – close to zero – that flowed into Japan. The lesson for the EU is clear: rather than focusing simply on increasing investment, it should seek to nurture and fortify its innovation ecosystem. Only then will it be able to deliver the kinds of game-changing ideas and inventions that underpin global competitiveness in the twenty-first century. Project Syndicate