
Vitality disaster makes Europe put together for horrible winter
- BusinessFinance
- August 26, 2022
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Germany, France, the United Kingdom and Switzerland have already announced measures to reduce energy consumption and accumulate reserves for the coldest period of the year.
Facing heat and drought, which reduced the volume of rivers, in addition to war in ukrainewhich affected the supply of energy, Europe begins to prepare for a difficult winter without Russian gas supplies. Germany, France, the United Kingdom and Switzerland have already announced measures to reduce energy consumption and accumulate reserves for the coldest period of the year.
THE Germany approved this Wednesday, 24, a regulation that restricts heating in public buildings and prohibits the installation of luminous advertising panels for a period of six months. Switzerland has set a voluntary target of reducing gas consumption by 15% by winter.
O UK acknowledged that the pressure on the energy system has reached “extreme” levels, starting to project the worst scenarios in case of shortages, such as restrictions on gas supply to industries and power plants, resulting in power cuts for businesses and homes.
Alert
In France, President Emmanuel Macron warned that the population would need to make “sacrifices” for the end of what he called the “age of plenty” in his first cabinet meeting after the summer break. The national initiatives are part of an effort by European countries to overcome the crisis arising from support for Ukraine in the war, which has entered its sixth month.
The shipment of weapons to Kiev and the sanctions applied to Russia and to authorities and personalities linked to Russian President Vladimir Putin, ignited a warning about a possible boycott of Moscow through the supply of gas – the main energy matrix used for residential heating in certain countries.
The Europeans’ preparation began to take shape in June, when European Union countries reached an agreement to reduce gas consumption by 15% to reduce Russia’s energy dependence. The law, which initially provided for voluntary measures, also contained a trigger for mandatory actions if the objectives were not achieved.
Russia has not yet announced a total cut in gas supplies to Europe, but certain signs have raised the level of concern about the political use of gas and are already affecting the price of energy: the megawatt-hour passed €300 yesterday, after announcements by Russian state-owned Gazprom that it will suspend gas supply through NordStream 1, Europe’s main gas pipeline, from August 31 to September 2, citing technical and maintenance reasons.
The fear is that without a retreat from the positions adopted by the war in Ukraine, the cuts will increase, become more constant or even definitive, as winter approaches. The consequences could range from blackouts, extreme cold for part of the population and economic consequences beyond the price of energy.
Misery
“Western governments must issue an invitation to economic misery on a scale that would test the fabric of democratic politics in any country or face the fact that energy supplies constrain the means by which Ukraine can be defended,” said Helen Thompson, Professor of Economics at Cambridge University in an article published in the Financial Times.
Politically, European leaders are trying to resist. In Paris, Macron said the difficulties of the coming months would be “the price to pay” for defending freedom in Ukraine. “Our system based on freedom that we’ve become accustomed to living in, sometimes when we have to defend it, it can mean making sacrifices,” he said.
On Tuesday, the head of European diplomacy, Josep Borrell, said the EU must reassert its unity to thwart Putin’s plans – which, he says, is betting on a break in the bloc’s support for Ukraine. For Borrell, Putin notes the “reluctance” of Europeans “to bear the consequences of supporting Ukraine”, which forces the EU to “dilute the costs” of the conflict.
Support
Borrell emphasized the need to “take on and distribute the costs” of energy and advocated a reform in the definition of prices, which are currently indexed to gas prices. “The most beautiful gift Europe can give Russia now is to pay for electricity at the price of gas,” he concluded.
A meeting between EU foreign ministers and defense ministers is scheduled for August 30-31 in Prague to discuss support for Ukraine and the continuation of the pressure campaign against Russia.
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