Russia-Ukraine war means there’ll be no return to normality for Europe

German Chancellor Olaf Scholz, French President Emmanuel Macron and Polish President Andrzej Duda attend a news conference ahead of a Weimar Triangle meeting to discuss the ongoing Ukraine crisis, in Berlin, Germany, February 8, 2022.

Hannibal Hanschke | Reuters

The war in Ukraine and the ensuing economic sanctions imposed on Russia will cause far bigger shifts for Europe’s economy and markets than previous crises like the coronavirus pandemic, economists have said.

In light of Russia’s unprovoked invasion of Ukraine, European leaders have been forced to rapidly accelerate plans to reduce their outsized dependence on Russian energy. The European Parliament on Thursday called for an immediate and total embargo of Russian oil, coal, nuclear fuel and gas.

However, this aggressive decoupling comes at a price for the European economy, driving up already high inflation to record levels and threatening to undermine the manufacturing recovery that began last year…

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