A former Swedish finance minister has warned that Russia’s shutdown of the Nord Stream 1 gas pipeline could lead to a crisis worse than the 2008 pandemic and financial crisis.
Anders Borg, Sweden’s former finance minister, said he was concerned about how the quarantine would affect not only Europe but the global economy as a whole. “There are two main dangers. First, Russia is exaggerating the situation and preventing gas cuts and possibly acting against the oil market. Another risk is that we will experience a serious energy shortage in Germany. “Central banks said 65-85% of energy-intensive businesses could close in winter,” he said.
“This will cause an industrial crisis of historic proportions, perhaps bigger than covid and the financial crisis. According to SVT TV channel, this danger is on the map,” he added.
Nordea chief economist Annika Winst also commented that Russia’s gas pipeline could be shut down indefinitely and said Europe was not prepared for the consequences of the shutdown.
War on Sanctions: Electricity prices in France and Germany to increase by 1000% from 2021 https://t.co/Eip7eArDRR
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“The systems we have in the European shock, energy shock and electricity trade are not in line with the price increases we have seen recently,” Winst said.
“It’s a completely different game plan, and now you have to be careful and smart about it. I think most households and companies have not yet realized how difficult this fall and winter will be,” he added.
The warnings come as Germany introduces strict energy-saving measures, such as curfews on illuminated signs, turning off heat in public building corridors and reducing hot water. Additional measures will take effect in October, and Economy Minister Robert Habek said the measures could reduce gas consumption by about 2 to 2.5 percent.
The German government also announced a €65 billion (£56.2 billion/$65 billion) aid package to ease the burden of rising energy prices on German consumers.
Source: Breitbart
