Crisis peaks over Europe’s gas prices as Russian gas flows dry up
Ramin Mazaheri
Press TV, Paris
France and Europe have begun power restrictions unseen since the energy crisis 50 years ago, in the hope of avoiding rolling blackouts, rationing, shuttered factories and recession this winter.
However, that was before European gas prices exploded after Russia cut gas flows four months earlier than Europe expected. At the current prices energy bills across Europe will be up over 200% compared with last winter, and would absorb 20% of the average household’s budget.
On a macro level such an increase will require two trillion Euros in additional spending across the continent, equivalent to 15% of Europe’s gross domestic product, all caused by sanctions on Russia over the unrest in Ukraine.
Most analysts agree that Brussels’ latest response - to try and cap Russian gas prices - is hollow, unenforceable and certain to end all gas shipments from Russia. The far-right is leading vital elections this month in Italy, and its leaders are running on an end to Russia sanctions because they say Italy is already “on our knees”.
French President Emmanuel Macron recently made waves by saying the country needs to prepare for an era defined by the “end of abundance”. However, many note that assumes that Ukraine will be the only unexpected crisis which Europe has to deal with in the coming months and years.
The government has predicted that the average annual inflation for all of 2022 will be 5%. However, from supply chains in China to energy sanctions on Russia to austerity demands from Brussels, there’s plenty of room for things to get worse.
Iran, Azerbaijan conduct joint maritime rescue operations
Yemen’s Red Sea divide: Naval forces block Israeli-linked ships in strategic ‘parting of the water’
Southern Gaza: Israel’s facade for famine and suffering
UK police detain Jewish scholar Haim Bresheeth following pro-Palestine address
VIDEO | Iraqi resistance strikes key Israeli targets in occupied territories
VIDEO | Press TV's news headlines
Iranian satellites launched into space as private sector debuts in space industry
VIDEO | Iran, Azerbaijan conduct joint maritime rescue operations
VIDEO | Yemen’s Red Sea divide: Naval forces block Israeli-linked ships in strategic ‘parting of the water’
VIDEO | Southern Gaza: Israel’s facade for famine and suffering
VIDEO | IOF hampering humanitarian aid
PressTV NEWSLETTER
now
This makes it easy to access the Press TV website
