German Chancellor Angela Merkel said Europe won’t “simply accept” Russia’s military incursion into Ukrainian territory and said inaction outweighs any economic impact from additional sanctions.

“Being able to change borders in Europe without consequences, and attacking other countries with troops, is in my view a far greater danger than having to accept certain disadvantages for the economy,” Merkel said today at a press conference in Berlin.

A day after European Union leaders said they were preparing a fresh batch of sanctions on Russia, Merkel said further measures were necessary. Leaders gave the European Commission a week to deliver proposals for sanctions that may target Russia’s energy and finance industries.

The conflict in Ukraine deteriorated further, with government troops fighting with pro-Russian rebels for control of Luhansk airport and Russian President Vladimir Putin raising the prospect of “statehood” for parts of southern Ukraine.

Merkel said yesterday that she opposed European weapons deliveries to Ukraine, saying such a move would imply the conflict can be resolved with military action. The United Nations says almost 2,600 people, mostly in eastern Ukraine, have died in the fighting.

The German leader yesterday balked at calling Russia’s actions an invasion.

“I don’t want to define it, you can call it what you want,” Merkel said in Brussels.