EU leaders met on Friday to prepare for further gas cuts in Russia, limit its impact on inflation, seek alternative supplies, and warn that Germany could partially shut down its industry due to supply pressures. He blamed Moscow for “weaponizing” energy.
The Friday summit in Brussels, the day after celebrating setting Kieu on the road to block membership, was a calm reflection on the economic implications of Russia’s invasion of Ukraine.
“The concept of cheap energy is gone, the concept of Russian energy is essentially gone, and we are all in the process of securing alternative energy sources,” said Latvia’s Prime Minister Krishyanis Kalins. We must support the part of the suffering society. ” “.
According to a draft summit statement seen by Reuters, leaders of 27 EU countries will blame the sharp rise in prices and slowing global growth in the war that began four months ago.
So far, 12 European countries have been hit by the reduction of gas flow from Russia, following unprecedented western sanctions imposed on the aggression.
“It’s only a matter of time before Russians shut down all gas transport,” said an EU official before the meeting.
Germany’s economic minister Robert Habeck warned that if Russia’s supply remained as low as it is now, his country is heading for gas shortages, and some industries closed in the winter. Will have to.
“Companies will stop production, dismiss workers, the supply chain will collapse and people will have to pay debts to pay for heating,” he told Spiegel, the Russian president who divides the country. He added that it is part of Vladimirputin’s strategy.
The EU relies on Russia for 40% of its prewar gas demand, rising to 55% in Germany, leaving a big gap to fill the already tight global gas market.
Inflation was a major concern in the morning talks between leaders on the EU’s economic situation, but there were also positive comments on growth and the summer tourism season, EU officials said.
Inflation rates in 19 countries that share the euro currency have exceeded record highs of 8%, and EU executives expect growth to drop to 2.7% this year.
Eurogroup chief Paschal Donohoe warned that Brock “must be aware of the risks that inflation may face if it is incorporated into the economy.”
According to a draft statement seen by Reuters, EU leaders say “in the face of Russia’s weaponization of gas” and the European Commission should find a way to ensure “affordable supply”. Probably.
Belgium’s Prime Minister Alexander de Crew said at the summit that “we need to start buying energy in bulk, set price limits and plan together to survive the winter.”
“If we don’t pay attention, the entire EU economy will fall into recession and all the consequences will come.”
