The European Union and the European Central Bank continue to grapple with the shock to the regional economy generated by COVID-19. Now, war in Eastern Europe has exposed their biggest Achilles’ heel: reliance on Russian energy. As the euro weakens and outflows from European equities surge, investors are increasingly concerned about the fragility of the EU and implications for global markets. Anneka Treon, managing director of the Competence Center at Van Lanschot Kempen, walks viewers through an in-depth analysis of the EU’s vulnerabilities during this tumultuous time. As Treon notes, sanctions on Russia and corresponding energy shortages increase the probability of stagflation in the eurozone and raise both liquidity and counterparty risk. Treon also explores the EU’s more coordinated responses to crises since the pandemic began, how this conflict may impact its commitment to decarbonization, and why Europe could benefit from the shift toward a regionalization of supply chains. Interviewed by Maggie Lake on March 7, 2022.