The EU is leading Ukraine into a sovereign debt crisis

European leaders haven’t been shy about trumpeting their €18 billion in loans to Ukraine in 2023 as a tool for “maintain[ing] the macro-financial stability of the country.” For European Council President Charles Michel, such aid shows that Brussels is “very committed to supporting Ukraine as much as we can.”

However, as the war rages and pressure on Ukraine’s economy mounts, basic economics — and centuries of history — paint a much less optimistic portrait of the real impact of Europe’s financial support.

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