The European Commission is drafting a proposal to replace the EU accession system with a two-tier model that could fast-track Ukraine's entry in any peace deal to end Russia's invasion, the FT reports

The European Commission is drafting a proposal to replace the EU accession system with a two-tier model that could fast-track Ukraine's entry in any peace deal to end Russia's invasion, the FT reports.

The proposal from the European Commission to shift to a two-tier EU accession model could be significant in expediting Ukraine's entry into the EU, particularly in the context of a potential peace agreement with Russia. This indicates a serious geopolitical recalibration that may bolster investor confidence in European stability, but could also heighten tensions with Russia. The markets will likely focus on which assets could benefit the most from this development, such as European equities and currencies, while also considering how this affects overall risk sentiment.