By Chrysostomos Tsoufis
As if o highest inflation ever recorded in Europe for May, at 8.1%, households and businesses, are faced with a number of pressures that almost … guarantee a further increase in the near future as they will keep the energy prices at very high levels.
After hours of consultation, European leaders agreed on embargo on russian oil which will reduce imports by 90% by the end of the year.
Immediately the price of oil exceeded $ 124 / barrel during the day which is a high of two months. Natural gas increased to 95 € / MwH for which the embargo has been ruled out for the time being, but the alalum with payments in euros or rubles maintains the price 5 times higher than last year. After Bulgaria, Poland and Finland, Russia closed the gas taps to 3 more large supply companies to Netherlands and Germany.
At the same time, the Chinese economy is beginning to return to normal – having reduced Covid cases to less than 100 for the first time since March – eager to … devour even more barrels of oil. At the same time begins on USA and the summer period during which the demand for fuel is increased. And as if all this were not enough, it affects the increased energy costs to the detriment of consumers, of course and the euro / dollar exchange rate with the US currency (in which oil is bought) has strengthened to a 20-year high.
But while things are difficult and are expected to become more difficult, Europe has left another Summit to pass without doing anything only “found” that there is a structural problem in the market. A problem that has been going on for months but the Commission is still considering proposals.
So do the Member States on their own try to put out the fire without of course much success since the resources are finite. In the case of Greece, they have been exhausted and households and businesses are required to be patient until they are found, which at least the government assures will be done.
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