EU economy ‘in turmoil’
Paolo Gentiloni warned In an interview with Der Spiegel, he said the EU economy would face recession in the coming months. Some countries may start apportioning their energy consumption.
“No one can exclude this (a recession in the eurozone – socialbites.ca). Current inflation will throw our economy into turmoil, and next winter could be one of the worst in history. We live in an unprecedented level of uncertainty. But the numbers for the EU economy as a whole remain positive and the labor market situation is good.”
According to him, the introduction of rationed energy consumption “depends on what decisions Russian President Vladimir Putin has taken.” Moreover, “energy saving is necessary” already. At the same time, the EU sees “good progress in filling gas storage facilities and saving energy”, but not in all countries of the bloc.
“Governments are already taking great measures. At the end of August, almost one percent of the EU’s economic output was geared towards mitigating the effects of the energy crisis. Other measures have also been announced, such as an aid package from the German government. “It can be assumed that these support measures will account for about two percent of production by the end of the year.”
“Let’s protect German businesses”
Speaking in the Bundestag, Deputy Rector of the German Ministry of Economy Robert Habeck said that although gas has not been supplied from Russia to the country for a week, the country’s gas storage facilities are full.
“There has been no gas from Russia for a week, storage facilities continue to fill up, prices are still high and very high after a short rise in the stock market, but not explosively. “It’s been a week since we became independent of Russian gas, thanks to this government’s ability to act consistently and prudently,” Khabek said.
According to him, “the most important thing to put an end to the manipulation of prices” for energy resources by Moscow remained. The minister noted that due to rising gas, oil and coal costs, the German authorities would not be able to support companies and the population in the long term. Therefore, he proposed to “redesign the energy market” so that the final price is profitable for the consumer and high prices are smoothed out using market mechanisms.
“We will provide all kinds of support to companies until they manage to lower prices, which will take a little more time. We will create a comprehensive support program so that small businesses get involved first. <…> Of course, we will do it across the industry, adhering to the criteria. <…> We will protect German businesses and the middle class,” Habek promised.
He added that Germany is now experiencing its deepest energy crisis since 1973, but that it is “much more difficult, the tasks much bigger”.
The chairman of the Energy and Climate Committee of the Bundestag, Klaus Ernst, is confident that it is the West’s anti-Russian sanctions that cause prices to rise in Germany and have negative consequences for the German economy and citizens of the country. .
According to the deputy, Berlin should be in contact with Moscow.
“There are discussions on energy in the Bundestag. Russia is responsible for the war and its own sanctions are responsible for the price booms and its consequences on citizens and the economy. It is naive and irresponsible to hope that Russia will not react. Talk to Russia!” Ernst wrote on his Twitter page.
“An Exit”
Speaking at the Eastern Economic Forum the day before, Russian President Vladimir Putin said that attempts by the Russian Federation to set ceiling prices for energy resources are “nonsense” and “nonsense”.
“Faced with what is happening now, they are thinking about how to get rid of it (EU countries – socialbites.ca) to limit the price by administrative decisions. Another nonsense, nonsense, which will lead to further growth in world markets, including in Europe. “In the field of economy and world trade, nothing can be resolved by administrative means,” said Putin.
According to him, European countries “did something themselves, now they do not know what to do with it, they dragged themselves into the so-called sanction stalemate.”
“There is only one way out – we see that there are currently demonstrations in Germany demanding the inclusion of Nord Stream 2,” the Russian leader says.