Аннотация: Many European Union countries incurred large debts during the financial and corona crises. And the next shock has already hit the community: the economic crisis in Ukraine has harmed economic progress and urged European countries to increase their arms spending, refugee aid, and massive investments in new energy infrastructure. Even in less volatile periods, EU member states violated the Stability Pact’s requirements. Returning to the previous criteria now appears even more unrealistic. The rapidly changing geopolitical conditions provide significant problems for the EU's monetary and fiscal policy. The pandemic’s depletion of globalization, the geo-economic uncertainty, and the rising risk of stagflation in the eurozone all have a range of implications for the stability of public budgets and the scope of monetary policy. The authors highlight that fiscal policy must establish structural priorities for spending on defense and power transformation. Europe has the best opportunities in the system contest if it continues to pursue the necessary economic and financial policy steps without losing its legal core.
Ключевые слова: geopolitical crisis, monetary policy, macroeconomic environment, Russian foreign trade