Effects will be felt for many years to come! "The first casualty of war is truth. Leaving aside for now the most dreadful casualties – human life, health and dignity – the second casualty of any war is public finance. This is particularly the case for western countries, whose average public debt-to-gross domestic product ratio had already reached levels comparable with the end of the second world war during the Covid-19 crisis. These levels are a way above the World Bank’s famous ‘tipping point’ (public debt-to-GDP above 77%) where public debt endangers economic growth. So now we have a war on our hands, and countries are more financially stretched than they were two years ago. Although the West is not directly present on the battlefield, things are likely to get worse. There will be a further deterioration in public budgets and generally greater indiscipline."