6/21/2023 0 Comments On effects![]() ![]() But which countries will be hit the hardest and why? This brief takes a very first look at potential differences in exposure across member states. Making sure that Europe sticks together in the coming months and possibly years in the face of Russia’s aggression will require burden-sharing to avoid some member states being affected much more than others. This unequal distribution of the economic hardship across EU member states is not only an economic problem: it matters politically. After the pandemic, the Russian invasion of Ukraine is yet another external economic shock with asymmetric consequences across Europe. However, the impact will be different for different member states. The overall economic costs of the war are still difficult to predict. Direct costs from sanctions and trade disruptions, rising inflation due to higher energy and commodity prices and mounting uncertainty will become a drag on Europe’s economy. The economic knock-on effects of the Ukraine war are going to be felt throughout Europe. To cushion the economic blow and ensure political unit, the EU will need to share some of the economic burden of this crisis. It shows that the EU’s member states’ economic vulnerability to the Russian invasion of Ukraine is very unevenly distributed. This brief takes a very first look at potential differences in exposure, focusing on direct trade links, potential costs of energy dependence on Russia and vulnerabilities towards rising energy prices more generally. While the overall economic fallout is still difficult to predict, the impact will be different for different member states. The economic knock-on effects of the Russian invasion of Ukraine are going to be felt throughout Europe. EU member states’ exposure to the economic consequences of Putin’s war by Nils Redeker (PDF) 2.15 MB
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