Opinion

No more Schengen area

Living in a small village right on the border of the Netherlands and Germany, I've seen firsthand the real impact of "hard" border controls. And let me be clear: this isn't about getting rid of all border security. It's about questioning the old-fashioned, inefficient, and frankly, counterproductive methods that are causing real economic pain.

Government inefficiency on full display

We often hear about governments needing to streamline spending and deliver more "bang for our buck." Yet, these hard border controls are a glaring example of the opposite. Every single day, hundreds of trucks carrying essential goods are forced to wait, wasting valuable time and fuel. All this to catch a mere handful of criminals or smugglers each month, if any.

It's even more frustrating when you consider the history. The old "douane" (customs) posts were torn down at a cost of hundreds of thousands of euros. Only to see, less than a month later, the German Bundespolizei block off highways near my village, setting up temporary tents to eyeball cars. It feels like a significant step backward, and a costly one at that.

Most new arrivals aren't even crossing our land borders; they're coming through major hubs like Schiphol Airport (which the Dutch government is pushing to expand!) and the Port of Rotterdam—the heart of our economic power.

A flawed approach that hurts the legitimate

The argument might be made that catching a few criminals is worth the taxpayer money. But this argument falls apart quickly when you look at the bigger picture. We have dozens of smaller border crossings through cities and villages Some buildings are even built right on the border, with one entrance from the Netherlands and a different one in Germany. These are all real-world examples of completely unmonitored border crossings. People with ill intentions can simply use these routes, rendering the expensive highway checks effectively useless for their intended purpose.

Meanwhile, trucks and long-haul cargo, which are vital for our economy, can't use these smaller routes. They are confined to the highways, where they face endless delays. We are literally slowing down our economy and burdening legitimate businesses and taxpayers, while criminals are free to bypass the controls elsewhere. Most small businesses already halted shipments to Germany and vice versa because the fuel and transit time simply isn’t worth it any more.

It's baffling to see 20 officers stationed on the highway near my village, seemingly doing very little, when over 20 or 30 other crossing points have no police presence at all. This isn't just inefficient; it's a fundamental flaw in how we're approaching border security.

Beyond economics: the social strain of hard borders

We've talked about the economic pain, but the truth is, the impact of these "hard" border controls hits even closer to home. Here in our border communities, everyone is fed up. What used to be a quick 10–15 minute drive now easily stretches into an hour, all seemingly for the sake of a few populist talking points.

It’s not just an inconvenience; it’s a source of deep frustration. Even my more hardline, anti-immigration friends are critical, feeling betrayed by the very politicians they supported. They see the same thing we do: these controls aren't stopping immigration.

The proposed idea of Dutch police adding their own controls on our side of the border only adds insult to injury. People living in border regions aren't just witnessing the absurdity of these decisions; we're actively being hindered by them, with no positive change in sight.

It's easy for those who don't live with the daily ramifications to dismiss these concerns. But ask yourself: Is it truly worth sacrificing the daily lives and well-being of border residents, wasting taxpayer money, slowing down our economy, and seeing no real impact on immigration flows, all while ignoring the actual points of entry?

Opinion

A possible solution to our borders problems

I’ve put out my views and opinions on the border issues within the EU in the previous piece. I am of the opinion that when you have a passionate disagreement with something, you should at least think about possible solutions as well.

I'm a strong believer in the Schengen area. It's been incredibly beneficial, allowing EU citizens and businesses to travel and operate freely across borders. This freedom has fuelled cross-border cooperation and a significant boom in economic growth.

However, I also recognize that some groups feel this system is being exploited. So, how can we address these concerns while preserving the enormous advantages of open borders?

A proposed solution is a "soft border" approach. This isn't about traditional checkpoints, but rather a system built on deeper cooperation between EU nations. This would allow us to use resources and information much more efficiently.

Checks aren't just limited to a few kilometres from a border, but could happen whenever and wherever needed, based on intelligence. This method would be far more efficient than our current approach and would make it much tougher for would-be smugglers and other criminals to operate, all without hindering the everyday movement of law-abiding citizens and legitimate businesses.

It's not a new way to think about borders, just an expansion on what we had under the Schengen agreemant. With this I believe it offers a practical path forward for a more secure and prosperous EU.

Deep dive

Newest craze or just a fever dream

I have been following along, for a few years now, with a little known mining company that caught a lot of media attention recently. Called The Metals Company, or TMC for short.

Their premise: the biggest resource estimated source of battery materials in the world. All within reach by boat in the Clarion Clipperton Zone. There is a caveat however, the resources they aim to collect are small nodules that lay 4000 to 6000 meter below sea-level on the seabed. This is only the beginning of the numerous problems that the 3.6B(US$) deep sea mining company faces.

Lets sum them up for now:

• The PFS (Pre-Feasibility Study for my non-mining readers) has been promised for years now, even just after the presidential election in the US they declared it to be fully complete. They changed their tune months later. Now they are waiting until all qualified people have signed off on it. As of writing no PFS has actually been released.

• The processing plant has faced multiple challenges. Changing location and nation until they settled on PAMCO in Japan. There are some worrying numbers in this partnership as well.

• The OPEX and CAPEX per wet tonne as stated in TMC’s filings contradicts its partners Allseas’ and PAMCO’s expected earnings per tonne.

• TMC has no moat for its deep-sea mining. The company itself doesn’t mine nor process the nodules. Allseas does all the mining and possesses the technical knowhow. Allseas also possess their own deep-sea exploration licence, sponsored by Jamaica. If it proves fruitful, they can simple mine on their own without involving TMC

• The ISA (International Seabed Authorty) has been discussing and debating whether deep-sea mining permits should be granted for international waters. No international mining code has been established as of writing. The ISA council will gather in Kingston this week again until the 25th of July.

• Insiders (this includes the CEO Barron, who gets paid 5-9 times median executive compensation without any production to date) have established a credit facility in which TMC has to pay 39% effective interest with the underutilization fee on undrawn credit. Source: https://www.sec.gov/Archives/edgar/data/1798562/000141057825000516/tmc-20241231x10k.htm#Item8FINANCIALSTATEMENTSANDSUPPLEM

TMC is one of the best performing stocks since the US election on 5-11-2024 with a rise of over 700%, compared to a S&P 500 return of 7.9% over the same period.

I plan on announcing a new newsletter soon where I will delve deeper in the investment cases for, mainly, mining companies. By looking at their filings, history of newsreleases and management. Its first edition being squarely focussed on TMC and the deep sea mining space.

Please stay tuned for an announcement on this very soon.

_{For full disclosure; I have no vested interest in TMC. Neither long nor short. This article serves as a warning to potential interested investors what to look out for and to be aware of all the risks involved that come with investing in the company.}

Central Asia

17th ECO summit Karabakh

The 17th Summit of the Economic Cooperation Organization (ECO) recently concluded in Khankendi, Azerbaijan. From July 3-4, leaders and representatives from ten member states gathered to discuss regional trade, energy cooperation, and transport connectivity. Those member states are:

• Azerbaijan

• Türkiye

• Tajikistan

• Uzbekistan

• Kyrgyzstan

• Iran

• Pakistan

• Turkmenistan

• Afghanistan

• Kazakhstan

This summit is meant to show a shared commitment to building resilience against global economic and political challenges. With Khankendi, a historical conflict heavy region, the place chosen for the summit. Symbolizing a shift towards development and cooperation. Although Armenia, part of a proposed land route by ECO, still has some active peace talks with Azerbaijan that could pose some challenges since the conflict is far from resolved.

Azerbaijan has positioned itself to be an important trade partner for all of these nations, as it’s part of the “Middle Corridor”, an alternative East Asia-Europe trade route which will become even more important for both regions with spiking international tensions.

The combined member states of the ECO represent over 500 million people, with a strong focus on industrialization and energy development. This growing economic power is not only crucial for their own populations but also holds significant implications for Europe. The South Caucasus, with Azerbaijan at its heart, provides a critical corridor for trade between Europe and Central Asia, aligning perfectly with the EU's Global Gateway initiative. This strategic positioning opens the door for greater investment and support from the EU as it seeks to diversify its energy sources and critical supply chains, moving away from traditional partners.

Increased investment in infrastructure across the region promises to revolutionize trade by making the movement of goods and materials both easier and faster. This enhanced connectivity offers a significant advantage by bypassing increasingly volatile sea routes, providing a more reliable and secure pathway for international commerce. Beyond the practical benefits, these developments also highlight the strong ambition of, former Soviet, Central Asian nations to increase their global presence and influence on the international stage.

Beyond Azerbaijan, ECO nations are actively enhancing their global connections. A prime example is the proposed Turgundi-Spin Boldak railway line, with Kazakhstan emerging as a key supporter of this vital initiative.

That’s it for this Maric’s weekly.

Thank you for reading. If you found this insightful and want to keep in the loop, make sure you subscribe to this newsletter so it automatically hits your inbox every week.

Stay safe,

Maric