For months Europe had thought that mere verbal (and hollow) threats, populist posturing and propaganda would be enough to force Russia’s Putin to back off and withdraw from the endless Ukraine escalation, into a Kremlin cocoon with his tail between his legs. What they didn’t anticipate was that Putin would in no way back down (as that would be seen as defeat and weakness by his numerous internal foes), nor would have have to: with Russia providing a third of European gas and with winter approaching, Russia had all the trumps cards from day one. Furthermore, as a result of escalating trade wars it is not Russia’s economy that is hurting but Europe, which is on the verge of a historic triple-dip recession, only unlike 2010 and 2012, this time it is Europe’s growth dynamo, Germany, itself which is leading the lemmings into the abyss.
Now, finally, Europe has realized that its “strategy” (if it ever had one, red: Obama’s ‘strategy’ on dealing with ISIS) was flawed. It is with this mindset that European Union leaders met in Brussels earlier today and while, as usual, the the threat of new and improved sanctions to Russia was present, suddenly Europe’s leaders seem far more “fearful of a new Cold War and self-inflicted harm to their own economies” and instead decided to give Moscow another chance to make peace according to Reuters.
Confirming Europe’s realization just how serious events are, and how far down the rabbit hole Europe’s bureaucrats have gone, French President Francois Hollande, while stressing that a failure by Russia to reverse a flow of weapons and troops into eastern Ukraine would force the bloc to impose new economic measures i.e., nothing new, it is what he said just after that indicated a dramatic change in rhetoric: “Are we going to let the situation worsen, until it leads to war?” Hollande said at a news conference.“Because that’s the risk today. There is no time to waste.”
This post was published at Zero Hedge on 08/30/2014.