Analysis
Economy & Tech
Why Hasn’t Russia’s Wartime Economy Gone Bankrupt? Fuelled by Stimulus, Sustained by Uncertainty
31 January 2025
The EU-NATO partnership has gained significance amid Russia’s war on Ukraine, but fractures in Europe’s unity and the looming US election threaten its cohesion. Are regional defence coalitions the solution?
The cooperation between the European Union and NATO has become more synchronised in response to the ongoing war, aligning with Han Fei’s ‘shield and spear’ metaphor. NATO serves as the ‘shield’, enhancing military presence and readiness, while the EU wields the ‘spear’ through economic sanctions.
Despite these complementary roles, US leadership remains essential, just as it was at the outset of the conflict, ensuring unity and providing direction for NATO members, who still lack clear goals and a cohesive strategy to defeat Russia.
This ‘shield and spear’ strategy highlights how NATO’s military efforts and the EU’s economic measures work together. Yet Europe’s internal divisions – political, diplomatic, military and geographic) threaten to undermine the coherence and solidarity needed to address urgent threats that transcend borders.
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