The European Union has been suffering from a serious energy crisis for almost a year. The gas, coming from Russia and on which the bloc has depended so much for years, has the highest costs in history due to the war in Ukraine. Partial or total supply cuts from Moscow and the high demand to generate electricity are among the causes of the increase in amounts. In this edition of Europe Today we analyze the impact and effects of the energy crisis in the EU.
This situation has led European countries to urgently request measures to reduce prices. Many companies have announced cuts and some nations have pledged to reduce consumption by 10%.
The president of the European Commission, Ursula von der Leyen, recently promised a reform of the energy market. So far, more than 500,000 million euros have also been given in aid to companies and citizens.
At the moment, several countries are asking for a limit on the price of gas that generates electricity, just as Spain and Portugal are currently doing. But it’s not so easy. Nations such as Germany and the Netherlands have been reluctant, because they believe that demand for a scarce resource could increase and that exporting countries could sell to Asia sooner.
Meanwhile, winter is approaching and if gas prices continue to rise, inflation will increase and so will the danger of recession, a scenario that is increasingly possible in the bloc.
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