31. “The energy crisis shows the importance of European solidarity in the face of asymmetric shocks”
- Author:
- Nicolas Berghmans
- Publication Date:
- 07-2022
- Content Type:
- Policy Brief
- Institution:
- Robert Schuman Foundation (RSF)
- Abstract:
- How has the current energy crisis arisen? To understand current developments, we need to go back a little: first of all, the global economic context with a fairly strong post-Covid recovery has contributed to the increase in prices of raw materials and energy. And then there has been the crisis with Russia. Even prior to the start of the invasion of Ukraine on 24 February 2022, Moscow had begun to reduce the gas storage levels held by Russian operators in EU Member States, including Gazprom, which controls significant capacity, particularly in Germany. The war in Ukraine has only made the situation worse. The availability of natural gas in Europe has fallen and the price on the markets has risen to an unprecedented level, sometimes reaching a price five times higher than previously. It should also be noted that Europe is emerging from a period of more than ten years in which the price of gas and, more generally, of energy has been relatively low, which makes the shock all the greater, and this upward trend is spreading beyond the gas to the electricity market; at certain times, the price has increased fourfold, or even fivefold, compared with the usual rate.
- Topic:
- Gas, Solidarity, European Commission, Energy Crisis, and Russia-Ukraine War
- Political Geography:
- Europe