As Europe continues to treat the situation in Ukraine like another Greece, Russia is taking advantage of the slow action being taken by the European Union to help Ukraine get out of the current crisis. It is true that Greece’s long-fought crisis was mishandled by all parties in the EU. However, it is time for Europe to realize that the case of Ukraine is different because it is not as complicated as the case of Greece. The case of Ukraine can only be described as a black-and-white case where Ukraine is the country defending itself and Russia is the aggressor.
At the moment, Russia is gaining ground in Ukraine and Europe is still preoccupied with Greece and sees Ukraine as a non-issue considering the country is not a member of the European Union. Russian President Vladimir Putin has preferred the strategy of destabilizing Ukraine through engineering the collapse of financial and political institutions. The reason President Putin has preferred the approach is that he can disclaim responsibility rather than military victory which the international community will link him directly and increase sanctions against Russia.
The trouble facing Ukraine has partly been forsaken by Europe and let President Putin gain the first mover advantage. For instance, the financial collapse had already started showing in Ukraine as it was seen in February when the value of Hryvnia plummeted 50 percent in a few days. Also, the National Bank of Ukraine was recently forced to inject large amounts of money to rescue the country’s banking system. The climax of the financial issues in Ukraine was on February 25 when the central bank raised interest rates to 30 percent and imposed import controls.
Ukraine Deserves Debt Relief
The partial crisis is endangering the banks of Ukraine and also undermined the calculations for International Monetary Fund on Ukraine’s programs. Even with the impending financial breakdown in Ukraine, which could ultimately spiral to all the Europe’s economy, EU members’ states have shown no intention to consider any financial aid to Ukraine. According to George Soros, the European political leaders have no reason to append its unwillingness to help Ukraine given their large unused borrowing capacity of the EU itself.
Europe has various problems it has to deal with including immigration crisis, Britain referendum, Greece debt and the current Ukraine and Russia crisis. It is apparent Europe will have to make priorities for some of these problems but also making sure no issue is left behind. If Europe does not come up with a working strategy that would need to unite the Union, Europe could be a thing of the past according to George Soros.
The Britain referendum on whether to exit the European Union is happening before the end of June 2015. In the past decade, EU has declined from forming a unified global power and instead opting for a fractious confederation of states. Currently, Brexit and Ukraine’s default remains to be a significant threat to the Union and which the member states should consider a matter of urgency. Helping Ukraine Financially is likely to improve the economy of Europe and improve the Unity of state members.
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