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Europe’s Leaders Vow Economic Relief, Fearing Unrest


BERLIN – European governments moved this weekend to soften the blow of soaring costs and the deepening energy crisis caused by the war in Ukraine, and prepare for the possibility. social unrest as the days get colder.

With Europe trying to phase out Russian fossil fuels and the first mass protests over energy costs popping up on the continent, governments are racing to adopt stopgap measures first. autumn and winter. The European Union’s energy ministers have planned emergency meeting this week, and three different countries announced relief measures on Sunday.

The biggest package came from Germany, where Chancellor Olaf Scholz’s government pledged $65 billion in aid to ease the impact of inflation and the energy crisis, which worsened after Russia invaded Ukraine. and Western governments imposed harsh sanctions on Moscow in response. Europe is currently working to drastically reduce its purchases of Russian oil and gas.

Berlin announced its bid two days after Gazprom, the Russian energy giant controlled by the Kremlin, announced an indefinite halt to the flow of gas through the country. Nord Stream 1 . pipeline terminated in Germany and supplied gas to much of Europe. Gazprom said the pipeline will remain closed until problems discovered during the inspection are resolved, but did not give a timeline.

European officials say the move is politically motivated. It took place on Friday, the same day that the finance ministers of the Group of 7 countries agreed to impose Russian oil price limit in an attempt to cut some of the energy revenue Moscow continues to earn from Europe.

“Russia is no longer a reliable energy supplier – that’s part of the new reality,” Scholz said in his announcement of the bid on Sunday. “We are all feeling the consequences of the Russian war.”

Economic anxiety is evident across Europe.

In Prague, a day after the government survived a vote of no confidence due to accusations that it had failed to act on inflated prices, tens of thousands of protesters took to the streets on Saturday to express their outrage. about energy costs. Led by far-right and outsider political groups, many protesters also criticized the Czech Republic’s membership of NATO and the European Union.

The protests underscore the growing concern among European leaders that the energy crisis and soaring inflation could cause political instability. Many residents said they were concerned about their savings and worried that they might not be able to pay their bills in the winter.

In the east of England, James Allcock said he deposited his life savings in a pub in Beverley. Now, the 36-year-old fears he might lose everything. “Without government help in the next two to three weeks,” it said, “we won’t be in business this time next year.”

The economic ripples from the war gave some pro-Kyiv Europeans pause.

“In the end, you always want to do the right thing,” Mr Allcock said, “but I’d be lying if I said it didn’t make me stop and think again. But it won’t change my opinion. You have to support Ukraine and get rid of Russian energy. But you have to do it in gloves with support at home. “

On Sunday, Liz Trussfrontrunner to become Britain’s new prime minister, said she would “act immediately“To deal with skyrocketing energy costs if elected.

In Stockholm, the Swedish government said it would provide $23 billion in liquidity to help energy companies buy supplies until March. Without that support, Finance Minister Mikael Damberg said, some electricity suppliers risk falling into “technical bankruptcy” on Monday.

France has embarked on its biggest conservation effort since the oil crisis of the 1970s, with President Emmanuel Macron calling for a “sober” energy era. The government has spent more than $26 billion to reduce the cost of rising household energy bills. And it has asked businesses to appoint a “safety energy ambassador” and share plans to cut electricity consumption with the government.

Olena Zelenska, wife of the President of Ukraine, Volodymyr Zelensky, told the BBC in an interview This weekend, she recognizes that much of Europe is experiencing higher energy costs, but she urges viewers to consider the costs in their own country.

“I understand the situation is very difficult,” Ms. Zelenska said. “Prices in Ukraine are also increasing. But in addition to that, our people are killed. So when you start counting coins in your bank account or in your pocket, we do the same and count our casualties.”

Despite all the concerns about economic pain, the European Union does not appear to be backing down from its plans to take tough measures against Russia.

On Sunday, Mr. Zelensky of Ukraine said he had spoken with the president of the European Commission, Ursula von Der Leyen, to coordinate on finding ways to limit Russia’s profits from oil and gas sales.

In Ukraine, Ukrainian forces continue to push to regain Russian-held territory in the south, with the tempo of fighting increasing as the fighting drags into its seventh month.

Ukraine has been publicly signaling the attack for weeks, and Russia is racing to move equipment and reserves to the region to bolster its defensive positions, according to the Ukrainian military and its Western allies. . Military analysts suggest that between 15,000 and 25,000 Russian troops could currently be located west of the Dnipro.

The war prompted countries like Germany to move quickly to reduce dependence on Russian gas, which once accounted for about half of its imports but has now fallen to about 10%.

However, many in Europe have begun to worry that as the economic costs of supporting Ukraine increase, popular support could turn against pro-Ukrainian governments.

Protests were planned in Germany by the far right and the country’s leading leftist party, Die Linke. Some unions have also vowed to protest, if the government’s latest measures do not alleviate the problems facing low-income citizens.

Vincent Sipeer, 21, a student in Berlin, said: “I hope that unions and other progressive players will find a way to articulate their concerns in a constructive way. He worries, otherwise, some economic worries might join groups demanding reconciliation with Russia.

Germany is relatively well prepared for winter, has managed to fill its gas storage to more than 80% and with a series of national energy-saving measures already in place. However, inflation is still falling sharply, reaching nearly 8% in August, the highest level in four decades.

Last week, a national radio talk show devoted an entire episode to advice from experts on how residents can cut costs.

Mr. Scholz said he was “very aware that many citizens are worried about their future,” but pledged that “no one will be left behind”.

With natural gas prices now 10 times higher than they were a year ago, the pain will be even greater for less affluent European nations.

But even Europe’s largest economy is bracing for a rough patch.

“We are facing difficult times,” said Mr. Scholz. However, he assured the Germans: “We will get through this winter.”

Report contributed by Christopher F. Schuetze from Berlin, Emma Bubola from London and Liz Alderman from TKTK.



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