AFP: Economic recession is waiting for Europe

According to the report of the International Economic Group of Fars News Agency, quoted by AFP, the Europeans are preparing for a hard winter without the supply of Russian gas, which is part of the consequences of the war in Ukraine.

According to this report, the people of Latvia have been adapting to these conditions since the end of July, when Russia cut off gas supplies to this Baltic Sea country. They know what to expect in the coming months.

Jovens Ratinix, who resides inRaisin“, a city in Latvia on the border with Russia, says: “The price of energy is so high that we have already cut off the hot water from the city pipe and installed our own water heater.”

“It’s cheaper to use hot water when we need it than to pay for it all the time,” explained the retired border guard.

Politicians need to understand that when energy bills go up, people expect help, Ratiniks added.

He warned, According With the election in October, “they better provide heating for the month or we’ll burn them.”

Bulgaria, Denmark, Finland, the Netherlands and Poland have also already cut gas supplies from Russia, while other countries have experienced sharp cuts in gas supplies.

Russian gas shipments to Germany via the Nord Stream pipeline will be halted for several days at the end of this month, the second outage this summer.

The report continues, while apparently this stoppage is for the maintenance of this pipeline, Berlin accuses Moscow of stopping gas exports in retaliation for Western sanctions.

According to experts, in total, the supply of gas to Europe has decreased by about 70% compared to last year.

* Experience the first real global energy crisis

Agence France-Presse wrote in the continuation of this report that governments all over Europe do not want to cool the radiators of houses and stop the activities of factories.

But many believe that Russian President Vladimir Putin uses energy resources as a strategic weapon to put pressure on the countries that sanctioned Moscow.

The decrease in gas supply caused the price of this fuel and also the price of electricity to increase sharply, considering that many power plants work with gas.

At the same time, rising oil prices have complicated matters, even though oil prices have fallen somewhat recently.

Victor Birol“The world is experiencing the first real energy crisis in history,” the International Energy Agency’s chief executive said last month.

He added: “The situation is dangerous, especially in Europe, which is at the center of the energy market turmoil.”

According to this report, natural gas is so important to many countries, especially Germany, which needs it for its heavy industries, that this country was exempted from European sanctions against Russia.

In contrast, coal was subject to a full embargo, while oil was subject to a gradual embargo.

* Economic recession waiting for Europe

The supply of Russian gas to Germany from the “Nord Stream One” pipeline is currently greatly reduced.

Matt OxenfordIn this regard, the economist of the Economist Intelligence Unit said: “We now assume that the flow of Russian gas to Europe through Nord Stream 1 will fluctuate between zero and 20 percent in the coming months.”

He added, this will lead to economic recession in Europe in the winter of 2022-2023.

Oxenford further explained: “Given the current gas infrastructure, Germany cannot compensate for the 80% reduction in Russian gas without a significant reduction in demand, which will lead to stagnation during the winter.”

According to the economist, given that Germany is the center of industrial supply chains, this will have a negative impact across Europe.

acquisition worksHouseholds are already suffering from this reduction in supply, and the French and German governments are already considering who should suffer first, but ordinary people are also being told to adapt to the new reality. give

The European Union has announced to 27 member countries that they must reduce their gas consumption by 15%.

Earlier this year, Italy launched what it called “Operation Thermostat” to reduce heating and air conditioning in schools and public buildings. Spain and Germany have also followed this trend.

Germany’s summer campaign also focused on reducing air conditioning in public transport and buying more energy-efficient shower heads for bathrooms. Several cities lowered the temperature of their pools and city lights.

* Families cannot afford the increase in energy costs

According to the report, France has not changed gas prices for individuals, but in Germany, energy bills for households are increasing by several hundred euros per year.

With a tough winter ahead, the Consumer Advice Center in the state of North Rhine-Westphalia has announced that it has never been so busy in its 40-year history.

The spokesperson of the center said, many people are worried about their electricity being cut off because they cannot pay the bills. Others seek to replace oil or gas with panel are solar and at the same time, some others have turned to coal.

He advised, tenants should save money early and talk to their landlord. “However, there will be many households that cannot afford the increased energy costs.”

* Back to the coal age

Meanwhile, France is reviving an anti-austerity campaign first launched in the 1970s. For example, shops that use air conditioning must keep their doors closed or face fines.

At the same time, despite the high pollution of coal, there is a great rush towards this fuel.

Also, despite the protest of environmental activists, the French government has reconsidered its decision to close an active coal-fired station.

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