Much has been written on the economic impacts of Russia’s invasion of Ukraine. For the European Union, the already visible impacts of rising energy and food prices presage more fundamental economic challenges in the longer term. Coupled with the lingering side effects of the COVID-19 pandemic the global economy is facing unprecedented turmoil.

Unfortunately, the ongoing humanitarian crisis in Ukraine is also being followed by economic consequences which are already impacting both European and global economies. The uncertainty of this war is eroding confidence and will pose a threat to economic stability should it continue in the long term. As European Commissioner for the Economy, Paolo Gentiloni noted, ‘the duration of the war will determine its cost, both humanitarian and economic’.

This In Brief provides a broad overview of the principal macroeconomic impacts of the Ukraine war on the EU. It also provides a set of recommendations designed to guide the EU’s policy actions in the future. Further publications in this series will deal with specific issues related to the impacts on agriculture, energy prices, European security/defence policy and the longer-term effects on the wider European integration process.