Mistakes in trying to get out of the energy crisis will lead the countries of Europe to bankruptcy. The Western economy may collapse in the coming years, predicts The Economist.
Against the backdrop of a rise in the price of Russian gas after the shutdown of the Nord Stream, the crisis in the energy sector of the EU countries has penetrated into the spheres of politics and economics. In the West, production is being shut down en masse, wages are being cut, and food prices are rising. The authorities, in response, organize payments and urgent interventions: Britain plans to allocate over 100 billion pounds, Germany – 65 billion euros, and the European Union allows the introduction of limits on the income of energy companies.
According to the magazine, the most popular tactic – freezing electricity prices – applied by France. But there are also disadvantages: the ceiling does not reduce the demand for resources, and it will not be possible to cancel the restrictions later for political reasons.
The authors believe that the most effective way – to reimburse residents in cash for utility bills, and to issue state loans to enterprises. Europe will need 450 billion euros for this.
To avoid an increase in the debt burden, experts are calling on the West to collect taxes on the increased income of energy companies, remove spot prices from the fuel market and encourage investment in alternative sources. Otherwise, the publication predicts bankruptcy for states, and European energy – stuck in the past.
