EU member states agreed to a voluntary 15% cut in gas use. This is captured in a document approved by the EU Council of Energy Ministers, as reported by TASS.
The European Council extended the 15% reduction target for another year, maintaining the obligation through March 31, 2024, measured against the five-year average. The statement in the document confirms this extension and the reference period used for calculation.
From August 2022 to January 2023, the European Commission reported a 19% drop in gas consumption across EU countries when compared with the five-year average. The initial goal had been a 15% reduction, and several member states achieved even larger cuts, with declines reaching up to 40% in some cases.
According to former economist Tilak Doshi, sanctions against Russia and the resulting shift in global energy dynamics could strengthen the United States relative to Europe. Doshi argues that reduced demand for European energy could contribute to deindustrialization and a noticeable drop in living standards in the European Union, given the new energy market landscape and the competitive pressures that follow. The analysis notes a consequential shift in energy leverage and the potential for longer term economic strain in parts of Europe as Western markets adjust to the new energy regime. [Citation: Doshi commentary on energy sanctions and EU outcomes, attribution by market analysis sources]