Ukraine has won time for Europe. A vast amount of time. But the price of this time has been tremendous. It is measured not in money, but in human lives. Dozens of towns and hundreds of villages have been destroyed. Occupied territories, occupied people, occupied lives—an occupied future.

Europe helps, and it helps a lot. The Ukrainian economy would be in a far more difficult situation without European financial aid. Europe has also provided armaments and political support. Yet, many in Ukraine feel that the time we won for Europe is not being used properly—or is even being wasted. It seems Europe has yet to learn from the Ukrainian experience, our successes, and our mistakes. The continent remains far from becoming a true security union, and its defense industries still behave as if we are living in a time of peace—or as if they are preparing for the wars of the past, not the future.

Is this diagnosis correct? And what must Europe do to respond to these challenges more effectively?

You’re listening to the Explaining Ukraine podcast.

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Explaining Ukraine is a project by UkraineWorld, an English-language media outlet run by Internews Ukraine.

Host: Volodymyr Yermolenko, a Ukrainian philosopher, Chief Editor of UkraineWorld, and President of PEN Ukraine.

Guest: Dr. Moritz Schularick, President of the Kiel Institute for the World Economy in Germany and Professor of Economics at Sciences Po in France.

A report by Kiel Institute that we discuss in this podcast: https://www.kielinstitut.de/publications/time-to-spend-smart-19558/

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This episode was produced in cooperation with Politeia, a Ukrainian NGO.

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Listen on various platforms: https://li.sten.to/explaining-ukraine

UkraineWorld: https://ukraineworld.org/en

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CONTENTS:

00:03 - Intro. Ukraine has won time for Europe, but is Europe using this time properly?

03:59 - Is Europe's financial support for Ukraine growing, and why does its defense potential not match its perceived strength?

07:59 - What are the fundamental inefficiencies undermining Europe's significant defense spending?

11:59 - How can Europe "spend smarter" by leveraging its economic strengths in defense?

15:59 - How can Europe overcome national protectionism and unify its fragmented defense industry? The challenge is to move beyond expensive national procurement and "interoperability" to achieve true "interchangeability" and standardization across European militaries.

19:59 - Why is Europe's procurement process so slow, and how does it hinder adaptation to wartime needs?

23:59 - Can promoting horizontal cooperation and flexible funding overcome bureaucratic hurdles in European defense? Suggestions include establishing fast-track wartime procedures and promoting direct, horizontal relations between European startups and Ukrainian military units, possibly with flexible funds managed by private entities.

27:59 - What is the economic rationale for joint European defense financing through shared borrowing and assets?

31:59 - How has Russia financed its war effort, and what short-term mechanisms has it relied upon?

35:59 - What are the current vulnerabilities and long-term economic fragilities facing Russia's war economy?