Latvia’s central bank governor Mārtiņš Kazāks has urged European policymakers not to be “naive” over the fact that the bloc is already “at war” with Russia.
Kazāks, a member of the European Central Bank’s governing council who is a contender to become ECB vice-president, stressed that central banks and the financial system needed to prepare for further escalation.
“It’s naive to think that we are not at war [with Russia],” he said in an interview with the FT. While the conflict was not unfolding “physically on our ground”, he pointed to cyber attacks happening “all the time”, sabotage of underwater cables in the Baltic Sea and violations of Danish airspace by suspected Russian drones.
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