Why Europe Shies from Ukraine Showdown
March 26, 2014
(“Obama the most destructive leader from Hell, still playing out with Russia and the EU to this day. The beginning of the plan by Obama-US, Merkel-Germany, opposed by Putin-Russia, and the West’s plan to use Ukraine as for the destruction of Russia.One of the first articles on Russia and Ukraine).1/3
Exclusive: Despitepressure from President Obama to escalate the fight with Russian President Putin over Ukraine, theEuropeans are reluctant to stoke the crisisany further because it could consume their fragile recovery and ignite more fires of political discontent, notes Andrés Cala.
By Andrés Cala
The crisis over Ukraine and Crimea threatens to touch off a new version of the Cold War’s“mutual assured destruction” or MAD not from nuclear warfare but from the economic damage== that the two sides, particularly Russia and the European Union, could inflict on each other, with fallout reaching the United States.
Though the EU and the U.S. may have started this crisisby trying to pull Ukraine away from Russia and into the European foldmaneuvers that led to a violent coup d’etat in Kiev last monthRussian President Vladimir Putin countered the West’s moves by annexing a willing Crimeaand asserting Russia’s right to protect ethnic Russians in Ukraine’s east and south.
That prompted the West to impose targeted sanctions against some prominent Russians,to oust Russia from the G-8 meeting of industrialized nations, and to threaten more severe sanctionsthat would damage the Russian economy if Putin won’t back down. President Barack Obama added insult to the injury on Tuesday bydismissing Russia as “a regional power.”
But Putin finds himself with a strategic advantage in that Europeis struggling to emerge from a long and painful recession that has divided the Continent between the EU’s stronger and weaker economies. Europe’s fragile recovery would likely suffer acrushing blow if the economic warfare with Russia escalates.
A new economic downturn would be particularly devastating to the so-called “periphery countries” such as Portugal, Spain, Italy, Greece and Cyprus which still suffer from painful levels of unemployment andwhich could experience devastating political upheavals if the EUgoes into another recessionary dip.
It is those countries and others insouthern and eastern Europe that are putting up the most resistance to a determined campaign to punish Russia. Portugal and Spain are the least exposed to direct Russian ties, but their economies might not survive another external shock.
That’s whyEuropean leaders, in general, decided to take a more cautious approach than the U.S. inretaliating against Russia for annexing Crimea. The broadened blacklist of targeted individuals is still shy of seeking a direct showdown with Russia.
But theEU did sign the association agreementwith Ukraine’s interim government which took power after last month’scoup oustedelected President Viktor Yanukovych, who had rebuffed the EU’s offer astoo harshandinstead accepted a more generous aid package of $15 billion from Russia.
Greater Risks
TheEU’s reluctance to join Obamain an escalation of the tit-for-tat sanctions war with Russiareflects the reality that U.S. bilateral trade with Russia is less than a tenth of EU’s trade. While it’s hard to quantify the exact impact of an escalation on Europe’s fragile recovery, it’s fair to say thatthe closer a country is to Russia the more severe the likely consequences, especially ifRussia’s energy shipments are disrupted.
Before the Ukraine crisis erupted in February, the EU Commission was gettingslightly more optimisticabout the Continent’s economic growth, raising the 2014 outlook from 1.1 percent to 1.2 percent and the 2015 outlook from 1.7 percent to 1.8 percent.But those pallid numbers themselves explain why the EU is nervous. It wouldn’t take much to cause a new contraction and set off a new wave of political unrest.
https://consortiumnews.com/2014/03/26/why-europe-shies-from-ukraine-showdown/
Merkel was called by a leader in the EU the other day, was the most destructive leader that caused all kinds of destruction on Europe!