Nobody can predict with much confidence how the war in Ukraine will evolve and what its geopolitical consequences will be over the next few months, let alone the next few years. Nevertheless, policymakers must think about the implications of the war and the appropriate responses, realizing that they will need to be adapted as circumstances evolve. Moreover, they must think coherently about the joint implications of their actions, from sanctions on Russia to subsidies and transfers to their own citizens and avoid taking measures that contradict each other. This is what we try to do in this Policy Brief, focusing on the macroeconomic aspects of relevance for Europe.