To: The future German chancellor
From: Economists For Ukraine

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Dear Chancellor, 

Congratulations on taking the helm of the Federal Republic of Germany!

You are in a perfect storm, and Germany must rise to the occasion. Russia continues to wage a war of aggression on Ukraine and to threaten Europe’s security. The German economy faces difficult times. Your key ally across the Atlantic just gave the EU a very “cold shower.” 

The good news is that, with decisive leadership, you – and other EU leaders – can still turn things around.    

First, Europe has the resources necessary to defeat Russian aggression, and Moscow is much weaker than many observers think. Russia’s economy is just one-tenth of the EU GDP. It is weakened by domestic corruption and foreign sanctions and overheated by military spending. Ukrainian missile and drone strikes, however limited, considerably weaken Russian production capacity, and this could be further accelerated with Taurus missiles. Prigozhyn’s march on Moscow could have toppled the regime – there was no counteraction from Russia’s special forces. 

Ukrainian armed forces have deeply wounded the Russian war machine: since the start of the full-scale invasion, Russia has lost over 10,000 tanks, 370 airplanes, 330 helicopters, over a thousand anti-aircraft systems, and practically the entire Black Sea fleet. It even lost a part of its sovereign territory in the Kursk region. All of this has been achieved by the Ukrainian army, which is smaller than Russia’s and equipped with homemade drones and a hodgepodge of Western weapons, many of which are quite old. More and better military kit, delivered in a timely manner, would make the war untenable for Russia. 

Second, building a stronger military force in Germany and Ukraine would secure Germany and other EU member states a seat at the table for key negotiations on security and economic matters but also help Germany to regain its economic strength. For example, German industrial production is in a difficult spot, but you can give it a boost with new defence contracts. This will create jobs, reduce strategic dependencies, forge links with other European nations, and fund innovation; the objectives also outlined in the Draghi report. Of course, you will need to increase public spending, and money is tight, but you can spare your taxpayers by seizing $300 billion of frozen Russian money (the only credible reason not to seize this money would be the intention to return it to Putin, which hopefully is not the case).     

Third, we know that Russia retreats when it faces force. Recall George Kennan’s long telegram written in 1946: “Impervious to logic of reason, [USSR/Russia] is highly sensitive to logic of force. For this reason [USSR/Russia] can easily withdraw – and usually does when strong resistance is encountered at any point.” This still applies to Russia today. Sensing weakness and indecision, Russia attacks (Moldova in 1991, Georgia in 2008, Ukraine in 2014 and then in 2022). Confronted with credible force and deterrence, Russia withdraws. For instance, Russia did nothing when Finland and Sweden joined NATO despite Putin’s repeated complaints about NATO expansion. When Turkiye shot down a Russian military plane, Russia banned the imports of Turkish tomatoes. When Assad’s regime was toppled in 11 days, Russia just watched. This is the variable you can control: more defense spending and more military aid to Ukraine, coupled with tougher sanctions on Russia, will make the rhetoric about taking German security into German hands credible. 

Finally, it should be clear by now that incremental tweaks will not address the existential threat from Russia. But the piecemeal, delayed response was largely self-imposed. You can lift this constraint and join other European countries who call for bolder actions. Your leadership is vital for making decisions that will affect your country and Europe for decades to come.  

There are also immense challenges and pitfalls ahead.

The war in Ukraine is a direct and existential threat to the European project, to European security, and to the very ideals of democracy around the world. It is high time to recognize that Russia is waging a broader war against Europe: energy blackmail, cutting cables, blowing up factories, using migrants to violate borders and carry out acts of terror in order to bring ultra-right pro-Russian parties to power. This is only the tip of the iceberg of what can happen. For instance, what if tomorrow some people in Belarussian army uniforms occupy a Lithuanian village? Will NATO’s article 5 be enacted? Does the EU have the muscle to protect its members? Or will Eastern Europe be recognized as Russia’s “sphere of influence” again, thus effectively destroying NATO?

You may hear that Russia will use nuclear weapons if it’s defeated. Bob Woodward’s latest book revealed that the Biden administration slowed down shipments of weapons to Ukraine in 2022 – when there was a high chance of defeating Russia – because they were scared by Putin’s nuclear blackmail. Do not cave in. Doing so would only increase the probability of future wars. Instead, calling Russia’s bluff would push it back (in fact, there is no guarantee that Russia’s strategic missiles work; for instance, a Sarmat missile recently exploded in the launching silo). 

Remember that Ukraine crossed many imaginary “red lines” (including going into the Kursk region), and nuclear weapons were never used. In 1961, German Chancellor Konrad Adenauer had a clear message for the Kremlin: “[nuclear threats] directed from time to time against one or other of the NATO partners are …dangerous, [but] the Soviet government must know that by any such blow, it would touch off a counter-blow by which it would be annihilated.” Russian elites want to live (especially in Europe, where they have mansions and children), and they are not ready to commit suicide. A more alarming nuclear threat is Russia’s occupation of the Zaporizhzhya nuclear power plant and Russia’s attack on the Chornobyl NPP.

Therefore, Russia can and, in fact, must be defeated in Ukraine. It is the best chance of a strong democratic future for the Russian state. For as long as the Russian state apparatus is highly militarised, autocratic, and aggressively pursuing military partnerships with countries such as North Korea, Iran, and China, it will dampen European growth, and undermine global security. It is important to recognize that this may involve direct European engagement against Russian troops in the interests of not fighting that same war on the back foot in the heart of Europe against an unconstrained Russian military machine. These discussions must be brought to the fore, as a deterrent, and as a real imminent possibility.

Lastly, it could be tempting to promise a quick resolution, but you should prepare for a long haul. Avoid the mistakes of Putin (who promised to capture Kyiv in 3 days; we are at the 3-year mark of the full-scale war) or Trump (who promised to stop the war in one day; we are in the 4th week of his presidency, and despite the rhetoric there is no credible plan in sight). 

You should be looking for a just and therefore lasting peace in Ukraine. Dividing Europe a la Yalta 1945 – or Munich 1938 – would make the continent less secure and pave a way for more future wars but this time possibly on German soil or with German soldiers as Trump appears ready to throw the entire European continent under Russian tanks. A battle-ready, strong military force that follows European values and interests is critical for enforcing security in Ukraine and the rest of Europe.   

We want to conclude by reminding you that every day of the war takes lives, destroys homes, and inflicts unbearable pain in Ukraine. There is no time to lose. We are at your service to help you defeat Russian aggression and restore security and prosperity in Europe.

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Kind regards,

Tatyana Deryugina, University of Illinois at Urbana-Champaign 

Anastassia Fedyk, University of California at Berkeley

Yuriy Gorodnichenko, University of California at Berkeley

James Hodson, AI for Good Foundation

Ilona Sologoub, VoxUkraine

Andreas  Umland, Stockholm Centre for Eastern European Studies 

Andreas Eisele, European Commission 

Andrew Atkeson, University of California Los Angeles

Anna Alberini, University of Maryland

Arnaud Dyevre, MIT

Artur Doshchyn, University of Bristol

Asen Ivanov, Queen Mary University of London

Bartosz Bartkowski , Helmholtz Centre for Environmental Research – UFZ

Benjamin Moll, London School of Economics

Chris Cunningham, Citinomics

Christina Felfe, Universität Konstanz

Clifton Mast, Fishers, inc

Dan Bernhardt, University of Illinois and University of Warwick

Daniel  Heyen, RPTU Kaiserslautern-Landau

Daniel Borowczyk-Martins, Copenhagen Business School

Daniel Hromada, Junior professor, Digital Education

Daniel Schaefer, Johannes Kepler University Linz

d’Artis Kancs, European Commission, DG Joint Research Centre

David McCarthy, University of Hong Kong

Derek Horstmeyer, George Mason University

Dirk Bergemann, Yale University 

Dmitriy Sergeyev, Bocconi University

Dora Costa , University of California, Los Angeles

Fabian Lange, McGill University

Fabio Ghironi, University of Washington

Felix Dwinger, Toulouse School of Economics, Institute for Advanced Study in Toulouse

Felix Kubler, University of Zurich

François Joinneau, Tuvalu 51/Seaquatoria

Gauthier  Vermandel , École polytechnique 

Georg Weizsäcker, Humboldt-Universität zu Berlin

Gunther  Fehlinger-Jahn, Austrian Committee for NATO membership of Ukraine, Austria, Kosovo and Bosnia

Gunther Glenk, University of Mannheim

Ilaria Mariotti, Politecnico di milano

Jesse Perla, University of British Columbia

Joël Cariolle, Ferdi & CERDI-UCA

Julia Coronado, MacroPolicy Perspectives

Justus Ohlhaver, Unternehmer

Kevin  Costa, Massachusetts Democratic State Committeeman, Representing the First Bristol and Plymouth District  (Fall River, Freetown, Lakeville, Rochester, Somerset, Swansea, and Westport)

Lars Vilhuber, Cornell University

Luca Alfieri, University of Tartu\Politecnico di Milano

Lukas Mergele, BSS, Switzerland

Maksym Polyakov, Manaaki Whenua – Landcare Research, New Zealand

Mariia Panga, George Mason University

Martin  Aust , University of Bonn 

Mats  Marcusson , Retired EC official 

Matt Holian, San Jose State University

Michael Alexeev, Indiana University – Bloomington

Monika Junicke, VŠE Praha

Oleg Gredil, Tulane University

Oleksandr Shepotylo, Aston University

Olena Havrylchyk, University Paris 1 Pantheon-Sorbonne

Olga Rud, University of Stavanger

Olha Khymych , Environmental Institute s.r.o.

Olivier Coibion, UT Austin

Olivier Simard-Casanova, CEREFIGE, University of Lorraine

Oskar Kowalewski, IESEG School of Management

Oxana Shevel, Tufts University

Pavlo  Buryi, Harrisburg University of Science and Technology 

Payam Alipour, Bank of America

Philip Rothman, East Carolina University

Ruediger Bachmann, University of Notre Dame

Scott Gehlbach, University of Chicago

Simon Gaechter, University of Nottingham

Stefan Krasa, Universität von Illinois

Steffen Altmann, University of Wuerzburg and University of Copenhagen

Tereza Ranosova, Deutsche Bundesbank

Udo Kreickemeier , University of Göttingen

Valentin Klotzbücher, University of Freiburg

Valeria Burdea, LMU Munich

Volodymyr Minin, University of California, Irvine

Roman Matkovskyy, Rennes School of Business

David Godfrey-Thomas, Afina International

Gerald O’Rourke, ICEX DAC

Tatiana Fedyk, University of San Francisco

Linda Tesar, University of Michigan

Dmytro Yablonovskyi, VoxUkraine editor

Gonçalo Pina, ESCP Business School – Berlin Campus

Katerina Lisenkova, NatWest Group

Francesco Paolo Conteduca, Bank of Italy

Dennis Coates, University of Maryland, Baltimore County

Anastasia Kalyna, University of Kyiv-Mohyla Academy

Filippo Pavanello, ifo Institute and LMU Munich

Roman Sheremeta, Case Western Reserve University

Tilman Eichstädt, bbw University

Michael Weber, University of Chicago

Marciano Siniscalchi, Northwestern University

Olga Kupets, Kyiv School of Economics

Alexander Haas, Monash University

Simon Galle, BI Norwegian Business School

Stepan Jurajda, Charles University

Pierre-Yves Geoffard, Paris School of Economics

Knut Einar Rosendahl, Norwegian University of Life Science

Martin Ellison, University of Oxford

Vojtech Bartos, University of Milan

Viktoria Hnatkovska, University of British Columbia

Charles Becker, Duke University

Anna Nagurney, University of Massachusetts – Amherst

Christian Hellwig, Toulouse School of Economics

Aliaksandr Amialchuk, University of Toledo

Monika Piazzesi, Stanford University

Andreas Peichl, ifo Institute, University of Munich

Maksym Mashliakivskyi, National University of “Kyiv-Mohyla Academy”

Christian Bayer, Universität Bonn

Serhiy Stepanchuk, University of Southampton

Bohdan Kukharskyy, City University of New York

Vytautas Valaitis, University of Surrey

Mykola Ryzhenkov, Osnabrück University

Paul Gregory, Hoover Institution, Stanford University

Sebastian  Buhai, Stockholm University –  SOFI

Austin Starkweather, University of Tennessee

Luminita Stevens, University of Maryland

Christian Moser, Columbia University

Alberto Bisin, NYU

Theocharis Grigoriadis, Freie Universität Berlin

Martin Schneider, Stanford University

Benjamin Born, Frankfurt School of Finance & Management

Klaus Adam, University College London

Valeria Fedyk, Arizona State University

Ludo Visschers, Universidad Carlos III de Madrid

Oleg Itskhoki, Harvard University

Kevin Berry, University of Alaska Anchorage

Christopher Roth, University of Cologne

Gernot Mueller, University of Tübingen

Ben Schumann, DIW Berlin

Oksana Kuziakiv, IER, Ukraine

Elena Besedina, Kyiv School of Economics

Lena Dräger, Leibniz Universität Hannover & Kiel Institut für Weltwirtschaft

Oleh Nivievskyi, Kyiv School of Economics

Florin Bilbiie, University of Cambridge

Fausto Panunzi, Bocconi University

Torbjörn Becker, Director, Stockholm Institute of Transition Economics

Knut Niemann, University of Tübingen

Oleksandr Talavera, University of Birmingham

Thomas Barrett, Kyiv School of Economics

Olha Halytsia, Kyiv School of Economics

Lorenz Kueng, University of Lugano (USI), Switzerland

Pietro Biroli, University of Bologna

Monika Schnitzer, University of Munich

Christoph Schiller, The Ohio State University – Fisher College of Business

Julian Reif, University of Illinois

Gerard Roland, UC Berkeley

Andrew Kosenko, Marist University

Klaus M. Schmidt, Ludwig-Maximilians-University of Munich

Konstantin Sonin, University of Chicago

Sebastian Dyrda, University of Toronto

Jonas Dovern, Friedrich-Alexander-Universität Erlangen-Nürnberg

Miroslaw Popkowski, Capgemini Poland

Yuliia Shapoval, Institute for Economics & Forecasting of the National Academy of Sciences of Ukraine

Hannes Ullrich, DIW Berlin and University of Copenhagen

Simon Johnson, MIT

Christopher Hartwell, Zurich University of Applied Sciences & Kozminski University

Beatrice Weder di Mauro, CEPR

Ioannis Kospentaris, Athens University of Economics and Business

Giorgio Motta, Lancaster University

Moritz Schularick, Kiel Institute and Sciences Po

Mishel Ghassibe, CREi, UPF and BSE

Leonardo Melosi, University of Warwick

George Loginov, Augustana University

Vira Semenova, UC Berkeley