Europe energy crisis deepens

Published November 9th, 2022 - 05:23 GMT
Europe Gas Energy Crisis
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Ankara: Europe is struggling to address a deepening energy crisis partly due to the ongoing Russia-Ukraine war as Moscow has suspended natural gas supplies in response to economic sanctions imposed by the West.

 

Governments are trying to diversify energy supplies and introduce measures to reduce demand and save energy as European leaders participating in the UN climate change summit (COP27) in Egypt underlined the importance of green hydrogen and clean energy in enhancing the economies of countries worldwide.

 

Speaking at a roundtable on investment in the future of energy, German Chancellor Olaf Scholz emphasized the need to move to green hydrogen to enhance the economies of the countries, noting that "there must not be a worldwide renaissance of fossil fuels", while stressing that "for Germany, I can say: there will not be one".

 

Speaking at the same event, European Commission President Ursula von der Leyen called on wealthy countries to invest billions in the infrastructure of African countries and others to find alternatives for energy.

 

As higher gas and oil prices continue draining billions of euros, the German economy’s real income losses this year will amount to some €64 billion ($64 billion), equaling 1.8% of its economic output, according to the Munich-based Ifo Institute for Economic Research. The country lost €35 billion last year and is expected to see another €9 billion in losses next year.

 

“Together, this gives us a real income loss over those three years of almost €110 billion, or 3% of annual economic output,” said Timo Wollmershauser, the head of forecasts at Ifo.

 

“The only time this figure was higher was during the second oil crisis of 1979-81, when the loss in economic output was 4%,” he added, warning that the current decline in real income is expected to persist over the next few years.


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