{"id":184,"date":"2026-07-10T04:15:09","date_gmt":"2026-07-10T04:15:09","guid":{"rendered":"https:\/\/summitrelocationtimess.com\/?p=184"},"modified":"2026-07-10T04:15:09","modified_gmt":"2026-07-10T04:15:09","slug":"how-europes-economic-collapse-is-fueling-the-war-in-ukraine","status":"publish","type":"post","link":"https:\/\/summitrelocationtimess.com\/?p=184","title":{"rendered":"How Europe’s Economic Collapse Is Fueling the War in Ukraine"},"content":{"rendered":"
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Richard Wolff is professor emeritus of economics at the University of Massachusetts Amherst and the founder of Democracy at Work. He spoke with Glenn Diesen about how class analysis illuminates the economic dimensions of the Russia-Ukraine war, the long decline of European capitalism, and what the future holds for a\u00a0continent that is running out of options. This interview has been edited and\u00a0condensed.<\/em><\/p>\n

Read more How Labor Journalists Contend With a Constricted and Polarized Media Landscape<\/a><\/p>\n<\/div>\n

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Glenn Diesen:<\/strong> The economic dimension of the NATO-Russia conflict is often underestimated. Western governments have imposed sweeping sanctions on Russia\u2009\u2014\u2009cutting its access to markets and banking systems, even seizing Russian sovereign funds\u2009\u2014\u2009making Russia arguably the most sanctioned country in the world. Yet the Russian economy has not only survived but grown. How do you explain\u00a0that?<\/p>\n

Richard Wolff:<\/strong> I\u00a0approach this through the lens of class analysis. I\u00a0have enormous respect for what John Mearsheimer has contributed to understanding the struggle among great powers\u2009\u2014\u2009his analysis is honest, careful, and exemplary. But for me, it begs one huge question: why do particular global powers do what they do, when they do it? To answer that question purely in terms of strategic maneuvering among players leaves out all of the social pressures that operate on any government, pushing it in one direction or another. Governments are not free to pursue any strategy they like, because some strategies are blocked off by their own domestic constraints. A\u00a0proper analysis has to ask: why is this happening at\u00a0all?<\/p>\n

I would like to answer that by focusing on Europe, because it is my judgment\u2009\u2014\u2009looking at the history of capitalism in Europe\u2009\u2014\u2009that the active player here is above all Europe, and secondarily Russia. I\u00a0am very mindful that Russia has been repeatedly invaded. Napoleon tried it. World War I, then Hitler with Operation Barbarossa, tried it. They all tried it, and they were all defeated. Russia reacted by pushing back once\u00a0attacked.<\/p>\n

So here is my argument. The major European countries\u2009\u2014\u2009France, Britain, Germany, Italy\u2009\u2014\u2009were in the 18<\/span>th<\/sup> and 19<\/span>th<\/sup> centuries enormous colonial powers. These were small national capitalisms that grew by developing massive overseas hinterlands once they had exhausted what they could extract at home. Compare the Netherlands with Indonesia, or the British Isles with the British Empire. Colonialism was what sustained their capitalist growth. But by 1914<\/span>, they had run out of territory. Those who know their history will recall the 1884<\/span> Berlin Conference, where the European powers literally sat around a\u00a0table and carved up Africa. After that, there was no more place to\u00a0go.<\/p>\n

What followed\u2009\u2014\u2009and I\u00a0lump World War I\u00a0and World War II together because they unfolded only decades apart\u2009\u2014\u2009was the mutual destruction of all the colonizing countries, with one exception: the United States. All the rest bombed each other to rubble, destroyed their economies, and killed enormous numbers of their people. Russia lost some 27<\/span> million people in World War II; the United States lost around 400<\/span>,000<\/span>. You could not have a\u00a0starker contrast.<\/p>\n<\/div>\n

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G.D.:<\/strong> And out of that emerged the postwar order, with the United States as\u00a0hegemon.<\/p>\n

R.W.:<\/strong> Exactly. The United States emerged from the war not weakened but strengthened\u2009\u2014\u2009the war had pulled it out of the Great Depression in a\u00a0way nothing else had. And so the United States moved in to inherit the empires. Not by running colonies the way the Europeans had, but by creating economic chains as powerful as, or stronger than, the old political controls. The dollar replaced the pound. And the Americans struck a\u00a0famous division of labor with Europe: you fight your communist and socialist movements at home\u2009\u2014\u2009which were genuinely dangerous after the war, because they had been the heroes of the resistance and enjoyed enormous popular support\u2009\u2014\u2009and we will be your defense umbrella. You won\u2019t have to spend money on the military. In exchange, spend on social welfare; that\u2019s how you defeat the left. We will effectively fund it by taking defense expenditures off your books. That arrangement worked very well for the Americans, because it allowed them to pursue military Keynesianism at home under the banner of fighting the Soviet\u00a0Union.<\/p>\n

That arrangement is now in crisis, because the reverse has happened. Trump has pulled away the military umbrella. Europe is going to have to spend its own money on defense\u2009\u2014\u2009and where will that come from? From social welfare. Maybe from borrowed money, which makes Europe even more\u00a0subordinate.<\/p>\n

G.D.:<\/strong> So how does the war in Ukraine fit into this\u00a0picture?<\/p>\n

R.W.:<\/strong> Here I\u00a0take a\u00a0cue from Zbigniew Brzezinski\u2009\u2014\u2009a thinker from whom I\u00a0could not be further removed politically, but who saw clearly what was at stake. My argument is this: the Europeans have never recovered from the loss of their empires, and they know it. They tied themselves to the United States after World War II because the alternatives\u2009\u2014\u2009their own socialists and communists, Russia next door, an unpredictable America\u2009\u2014\u2009were all too risky. But that didn\u2019t solve their underlying problem. It postponed\u00a0it.<\/p>\n

When the Soviet Union collapsed, they had a\u00a0moment of hope: the absorption of Eastern Europe, investments in Poland and Romania. But the major European powers could not compete with China\u2009\u2014\u2009that competition was over before it began. They could not easily compete with the United States either. There was, however, one outlet: if they could destroy and dismember Russia, carve it up into half a\u00a0dozen or a\u00a0dozen smaller states, they could recapture something resembling a\u00a0great European empire. Divide the pieces\u2009\u2014\u2009the French get these four, the Germans get those six\u2009\u2014\u2009and suddenly Europe is no longer the ever-more-distant third party in a\u00a0world organized around the United States and\u00a0China.<\/p>\n

Brzezinski wrote in the 1990<\/span>s that the grand European strategy would have to involve neutralizing Russia as a\u00a0great power\u2009\u2014\u2009not because of communism, which was a\u00a0historical convenience by that point, but because Russia as a\u00a0great power is what stands between Europe and its only remaining path to historical\u00a0significance.<\/p>\n

G.D.:<\/strong> That would explain the quasi-hysterical character of Europe\u2019s demonization of Russia, which many observers have remarked\u00a0on.<\/p>\n

R.W.:<\/strong> I\u00a0think it does. And it explains why we may be closer to war now than we arguably were at certain points during the Cold War. The Europeans are desperate\u2009\u2014\u2009and I\u00a0want to underscore that word. The demonization of Russia is driven by a\u00a0historically accumulated sense of having no other\u00a0option.<\/p>\n

Take the current European leaders: Merz, Macron, and the others. They have personally staked their careers on the American alliance. And Trump has thrown them under the bus. They cannot go to their people and say, \u200b\u201c<\/span>We bet everything on the United States, which has now disrespected us on every level.\u201d So they need something else to rally around. A\u00a0defense buildup and the demonization of Russia serves that purpose, with the utopian promise of recreating the empire they lost in the 20<\/span>th<\/sup> century and have found no substitute for\u00a0since.<\/p>\n

Read more AI\u2019s Rise is Being Fueled by the Sprawling U.S. Military State<\/a><\/p>\n

G.D.:<\/strong> And here in the United States, is there any real constituency for reversing course\u2009\u2014\u2009for going back to the old arrangement with\u00a0Europe?<\/p>\n

R.W.:<\/strong> Almost none. It is not just Mr. Trump. There is a\u00a0very clear understanding in Washington that the United States is itself a\u00a0declining empire, and that it has to focus its time and energy on managing that decline. The perception here is that Europe is finished. I\u00a0cannot tell you how often I\u00a0hear it. When Trump says he is not sure what the United States would do if Russia attacked a\u00a0NATO member, he means it literally. The Europeans have convinced themselves he doesn\u2019t really mean it. He\u00a0does.<\/p>\n

Washington\u2019s priorities are, in order: slow America\u2019s own decline; counter China; and if that doesn\u2019t work, negotiate something with China. Europe isn\u2019t in the conversation. And when Ursula von der Leyen agreed with Trump to purchase hundreds of billions of dollars in liquefied natural gas from the United States, plus an equivalent European investment in the American economy over the next decade\u2009\u2014\u2009what is that, if not tribute? Europe is becoming a\u00a0tributary state. Its job is to deliver value to the United\u00a0States.<\/p>\n

G.D.:<\/strong> Kaja Kallas, the EU foreign policy chief, has suggested openly that a\u00a0dismembered Russia would be far easier to manage. But in the meantime, Europe\u2019s economic model is failing on its own terms. Volkswagen is laying off tens of thousands of workers. The auto industry is hollowing out. What\u2019s driving\u00a0that?<\/p>\n

R.W.:<\/strong> Yanis Varoufakis has been making this point correctly: the German economy is disproportionately organized around the automobile, and the auto industry is not merely shrinking\u2009\u2014\u2009it faces possible elimination as we know it. I\u00a0was in Paris a\u00a0few months ago. I\u00a0stepped into a\u00a0taxi and noticed it was a\u00a0BYD\u2009\u2014\u2009a Chinese brand. I\u00a0speak French, so I\u00a0asked the driver about it. He said he was driving it because it was the cheapest and best car. He would have preferred a\u00a0Peugeot, but a\u00a0BYD is what he could afford. He told me the other drivers were pressuring the Macron government to allow more BYDs in because they want to buy fleets of\u00a0them.<\/p>\n

Europe has cut itself off from cheap Russian energy and is now buying American liquefied natural gas at many times the price. It is buying American weapons. It is signing trade deals that everyone openly acknowledges are terrible for Europe, but they are signed anyway as gestures of loyalty. All of this tribute makes Europe weaker, not stronger. And I\u00a0think it draws contempt from Washington rather than affection, where this kind of subservience registers as confirmation that Europe no longer\u00a0matters.<\/p>\n

Let me go further. In the years before the Russian invasion, there was a\u00a0massive program to build up the Ukrainian military. By the time Russia invaded, Ukraine had a\u00a0larger army than most European countries\u2009\u2014\u2009and it still could not prevail against Russia. Now add the Europeans, and you do not add very much. And behind Russia now is China, with a\u00a0larger manufacturing base for missiles and drones than all of Europe combined. The Russians have a\u00a0long border with China; the Iranians can supply Russia via the Caspian. What exactly are you undertaking if you challenge what they have now\u00a0assembled?<\/p>\n

Germany is talking about spending something like $800<\/span> billion on the military over the next ten years. Ten years. The United States spends roughly $900<\/span> billion per year, with proposals to increase that dramatically. You cannot catch up at the German pace. And Europe cannot sustain even that level of military spending without an austerity politics that would produce exactly the political instability\u2009\u2014\u2009the rise of the far right, or left-wing alternatives like Jean-Luc M\u00e9lenchon\u2019s France Insoumise\u2009\u2014\u2009that European leaders are already losing sleep over. Marine Le Pen, the AfD: these are not aberrations. They are the product of a\u00a0model that is failing its\u00a0people.<\/p>\n

G.D.:<\/strong> On the Russian economy specifically: it has shown remarkable resilience despite the sanctions. What explains\u00a0that?<\/p>\n

R.W.:<\/strong> I\u00a0think the Russians have come to terms with their situation: they are junior partners of China, and they have structured their economy around that reality. The Chinese economy is four to five times larger than Russia\u2019s, and the gap is growing. These are not equals. But Russia has something valuable to offer\u2009\u2014\u2009a vast, resource-rich Asian landmass, and a\u00a0military capability that China still needs time to match fully. So the two have an arrangement that is mutually beneficial. Russia has what Europe covets: room to grow horizontally, across the immensity of Asian Russia, with its resources, cities, forests, and land. And unlike Europe, it has a\u00a0willing partner eager to help develop\u00a0it.<\/p>\n

G.D.:<\/strong> You\u2019ve described a\u00a0situation in which Europe has no good options\u2009\u2014\u2009where all paths seem to lead toward further subordination or further instability. Is there a\u00a0way out?<\/p>\n

R.W.:<\/strong> There would be, but it is not on the menu. A\u00a0Europe that recognized Russia as part of the European continent\u2009\u2014\u2009the largest country in Europe, after all\u2009\u2014\u2009could have negotiated a\u00a0genuine, inclusive security architecture. It could have reduced its dependence on external security providers, diversified its economic relationships, and had a\u00a0reasonably prosperous future. But that would require treating Russia as an equal, and European leaders are not capable of that. It would also require questioning the capitalist model itself\u2009\u2014\u2009asking not just how to compete more aggressively, but whether an economy organized to maximize profits for a\u00a0small number of shareholders is the right model at\u00a0all.<\/p>\n

This is the old Marxist question: what about the organization of your enterprises? An economy run to maximize wages and salaries\u2009\u2014\u2009the income of the majority\u2009\u2014\u2009rather than profits for a\u00a0minority would behave very differently. I\u00a0don\u2019t say that as an ideologue. I\u00a0say it because the insight here is becoming urgent. It may offer a\u00a0way out of the dead end that otherwise confronts us. But as long as European leaders cannot even put inclusive security arrangements on the table, they will not be asking that\u00a0question.<\/p>\n

The hysteria, the demonization, the escalation\u2009\u2014\u2009it is all driven by a\u00a0historically accumulated desperation. They are not prepared to change their society to come to terms with reality. And so they go down with the\u00a0ship.<\/p>\n

Read more The Elite \u2018OK\u2019 to Police Our Every Thought and Move<\/a><\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A Marxist economist argues that the war in Ukraine cannot be understood without confronting the collapse of European capitalism and the loss of empire.<\/p>\n","protected":false},"author":1,"featured_media":183,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,3],"tags":[],"class_list":["post-184","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interview","category-politics"],"yoast_head":"\nHow Europe's Economic Collapse Is Fueling the War in Ukraine - Summit Relocation Timess<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/summitrelocationtimess.com\/?p=184\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Europe's Economic Collapse Is Fueling the War in Ukraine - 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