As the year draws to a close, we need to look at the interacting developments that will impact Europe’s economy in the next year – starting with the war in Ukraine.
One of my boldest decisions this year has been not to join in the premature celebrations of an early end to the war. My solidarity is with Ukraine, but we have to acknowledge a brutal reality, which is that western sanctions have failed to achieve their stated goal: to deny Vladimir Putin the resources to fight a prolonged war. China has aligned with him strategically. Russia’s alliance with Belarus is deepening. US sanctions against China, and the US House speaker Nancy Pelosi’s extremely ill-judged August visit to Taiwan, are bringing China and Russia closer together. You can either drive a wedge between them, or subject both countries to sanctions. But you can’t do both at the same time.
Content from our partners
