It’s already about one year ago, when in Kiev, the capital of Ukraine, people started their protests against the president of Ukraine, Viktor Janukovits, in the square of Maidan. Many things havechanged in the politic and economic fields after those days, but problems, what these protests initiated, have not disappeared anywhere.
Politics and economy go very often hand in hand. That has happened in the case of Ukraine crisis too. Europe tried found politic solutions, but when it came clear that EU have no power for that, they started new policy with Russian: economic sanctions. But was that the right thing to do at this moment?
European economy has been very fragile already since 2008 financial crisis. EU is still healing wounds, what that crisis gave to European economy. Greece was only days away from chaos, and many other countries, especially in South Europe have had own problems with their economy. And still after that, Europe wants to start play with the fire and make own life more difficult.
As many of us maybe remember about history, this is not the first time when economic sanctions have been used as a politic weapon. Already 200 years ago the Emperor of the France, Napoleon I, better known as Napoleon Bonaparte, started so called Continental Blockade against Great Britain. And the reasons was same as now: to push other country to do something what blackmailer want.
Story of Napoleon didn’t continue such as he wanted and planned. After all, this blockade was more harmful for France economy itself than for Great Britain’s economy. There are same signs in the air now what comes to the situation between EU and Russia. Because of sanctions, EU have already lost many investment and will lose much more as long as the sanctions will be holding on. Question is that is Europe ready for this, as we still try to revive about the financial crisis what happened already many years ago?
Other question is that who want to continue sanctions more and more? Whose interests they serve most? Countries like Finland, Poland and Estonia are very pivoted about Russia, especially in export. EU have promised to help these countries to survive over these hard times, but the truth is that EU have no a bottomless purse. How long these countries are ready to be in the same boat with the EU -countries, who still show green light for the sanctions?
The truth is that the area of EU needs much new investments and projects what gives jobs for many people. But now EU makes the opposite. The economic growth, even this little what was starting before the economic sanctions against Russia, will stop and even turn down. Who will pay the price of that? If these sanctions continue longer and longer, there will be more and more unemployment people. It means that EU needs find more and more money for unemployment allowance. But without new investments it is very hard to make more money. And then EU will be inside the vicious cycle of inflation. Who’s gonna save us from that?
There is no ready answers for that and nobody can say for sure what will happen in the future. As James W. Carden write in his article about this same thema: ”We will see soon enough just how high a price the governments of the eurozone are willing to pay for Kiev’s “European choice.”” We need just hope that the price is not too big. Or soon EU will die alone like Napoleon, who did the same mistakes, died 200 years ago in the island of Saint Helena.