By: Zohra Rangwala
The European energy crisis came about as a rebound from economic slowdown during the pandemic but has only worsened as war rages on in Ukraine due to Russian occupation.
There has evidently been a rising cost of input fuels with electricity prices in Europe surging approximately 300% in 2022, resulting in energy prices being ten times higher than the 5 year average. Some European countries have their gas supplied from Russia but due to cutoff, demand for gas has started to increase but cannot be met due to a shortage in supply.
The UK, with its energy-inefficient homes, has experienced a worsened energy crisis with the cost of living dramatically increasing, side minimal rent freezes in England, and an unstable economic sphere. The new prime minister Liz Truss is spending her first few weeks in office conducting a plan to combat the coming recession and leading the UK into economic prosperity.
Russia's cutoff of gas to Europe has not only messed with the supply and demand balance but has caused businesses to plummet with a significant number employees, relying on partial furlough to save money, resulting also in company cutbacks, although temporary, is still raising the risks of a painful European recession.
As the Russian occupation in Ukraine continues, Europe is seen to be in a temporary economic crisis where world leaders must derive plans to move forward with most looking to adapt renewable energy in the coming years.
Comentários