The tug of war over Russia’s frozen reserves has been about two things. On the surface, it’s been about funding Ukraine and setting a precedent that - if you invade a country and murder innocent people - your financial assets are at risk of being seized. But, on a deeper level, it’s about something even more important, which is governance and moral direction within the EU. The decision to issue joint EU debt to fund Ukraine is a disaster on both dimensions. It fails to set the critical precedent that Russia’s frozen reserves would be seized. That alone is terrible because it gives every tinpot dictator a blueprint ... (full story)