News Summary

• For Europe, the challenge has never been confined to the battlefield.
• Supporting Ukraine and constraining Russia have tested the continent’s economic resources and political unity.
• To meet these challenges, Europe must build a war economy.
• The past four years offer lessons in how Europe can finance such an effort, but also warnings about the divisions that could undermine it.
• Deepening fiscal and capital markets union and building a genuine fiscal-military state would provide the foundations of Europe's power and its ability to deter and win wars.