The energy crisis of the 1970s, which was almost entirely oil-based, pales in comparison to the scale of the current Lernaean Hydra, analysts say.
of Chrysostomos Tsoufis
As European leaders deliberate with characteristic delay to see how this winter will turn out, all indications are that the next ones could be even worse.
A growing number of energy executives say the pressures could last until 2025.
The warehouses were full this year, but even almost trickle by trickle, the Russian gas was flowing… From next year, what happens with the taps turned off? And if Russia decides to shut down Turkstream as well, then we will be talking about Armageddon.
GS calculates that at the beginning of 2023 a typical European household may pay €600/month for energy, when in 2021 it paid €160.
The total cost of energy purchases for the same year it can reach 2 trillion. euros, almost as much as 15% of the GDP of the eurozone.
The energy crisis of the 1970s, which was almost exclusively oil, pales according to analysts in front of the scale of the current Lernaean Hydra-like.
Europe will test its resistance to pain. To reduce consumption in Britain, small shops are stopping selling frozen products, closing an hour earlier and reducing staff.
Belgians are flocking to neighboring France in their droves to take advantage of a 30 cent cut in the price of petrol introduced by the Macron government.
Europe’s largest economy is heading full speed into recession which at current gas prices will reach 2.5%. If prices rise further – as market people warn – the recession will fatally deepen.
Yesterday natural gas completed 28 consecutive days above €200/Mwh and governments one after the other announce additional support measures.
According to information, the new Prime Minister Liz Truss is preparing a mammoth package that will reach €200 billion with the freezing of electricity and natural gas bills for households and businesses.
At 2.4 billion around 100,000 euros is the amount of the package of measures announced by Portugal that includes punctuality checks and emergency aid for pensioners. The Greek government has given €8.5 billion so far.
But without a European response – even at the 5 we are in – all this money will be like being thrown into a bottomless barrel.
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I have worked in the news industry for over 10 years and have been an author at News Bulletin 247 for the past 5 years. I mostly cover technology news and enjoy writing about the latest gadgets and devices. I am also a huge fan of music and enjoy attending live concerts whenever possible.
