Source: Reference News Network
Reference News Network reported on September 1 that in the just-concluded August, the European media almost every day is indispensable to the topic of energy crisis: energy shortages, soaring natural gas prices, household electricity bills have repeatedly reached new highs... In fact, in recent years, the energy crisis encountered from time to time is nothing new to European countries. Wholesale natural gas prices have soared more than 400 percent since August last year, creating a painful cost-of-living crisis for consumers and businesses in Europe, with governments having to spend billions of dollars to ease the burden.
After the outbreak of the Russian-Ukrainian conflict in February this year, russia, the main energy importer of many countries in the European Union, was either denied or "reduced supply", which made the energy situation in Europe deteriorate sharply. Coupled with the rare high temperature and drought weather encountered in Europe since the beginning of summer, it has "added a fire" to the energy crisis of Europe's "burning eyebrows", and the life of European countries is not very good.
The Old Town Hall in Munich, Germany, was photographed on the evening of July 30. In response to the energy shortage, Germany has taken measures to save electricity. (Xinhua News Agency)
Some German manufacturers are discontinuing production
According to Reuters, Gazprom (Gazprom) confirmed on August 31 that Nord Stream-1, Russia's main pipeline supplying natural gas to Europe, was suspended from the same day for three days due to routine overhauls of components. This means that from 1 o'clock on August 31 to 1 o'clock on September 3, there will be no gas imports into Germany.
Gazprom's move has led to an escalation of the economic war between Moscow and Brussels, with recessions and rising energy rationings in some of Europe's richest countries.
Germany's national gas reserve ratio is currently reported to be 83.26 percent, and is close to reaching the target of 85 percent by October 1, but the country warns that it will be difficult to meet the 95 percent target by November 1 unless businesses and households cut energy consumption significantly. Germany's inflation rate reached its highest level in nearly 50 years in August. German households will face higher energy bills, and consumer sentiment is expected to hit a record low for three consecutive months next month.
Not only are German consumers having a hard time, but German companies are also facing a dilemma. According to the Financial Times website reported on August 31, German manufacturers are shutting down production in response to soaring energy prices.
Germany's economy minister, Robert Habeck, said the industry had been working to reduce natural gas consumption in recent months, including switching to oil to replace natural gas, improving production efficiency and reducing production. But he said some companies had "completely stopped production." He noted that the development was "worrying".
"This is not good news, because it could mean that the relevant industries are not only undergoing restructuring, but also experiencing ruptures — a structural rupture, a rupture that happens under tremendous pressure," Hubbeck said. Habeck said rising natural gas prices are affecting everything from large industrial groups to small trading companies and the medium-sized companies that form the backbone of the German economy. "No matter which company it is, as long as energy is an important part of the business model, they feel very anxious," he said. ”
According to a poll published on August 31 by DMB, a lobbying group representing German smes and small and medium-sized enterprises, 73 percent of companies surveyed are under "severe pressure" from rising energy prices. When asked about their business prospects for the next 6 months, 10 percent of businesses said their "survival is at stake."
On November 8, 2011, in the northern German city of Lubming, the Nord Stream-1 gas pipeline connecting Russia to Germany was officially put into use. This is the end of the Nord Stream-1 gas pipeline in Lubmin. (Xinhua News Agency)
Italy's service sector is facing a wave of closures
Italy's many service companies are also facing closure due to soaring energy prices. According to Reuters reported on August 31, the Italian Enterprise Confederation, a business lobbying organization, said on the same day that about 120,000 Italian service companies may fail in the next 10 months, resulting in 370,000 people losing their jobs.
The group said the total energy bills of Italian service companies this year will be around 33 billion euros, three times that of 2021.
At a joint press conference in Rome, the Italian Business Confederation and several retail agencies called on Mario Draghi's government to extend tax incentives to help businesses cope with the energy crisis and allow businesses to pay their bills in installments. They also asked the government to lower fuel excise taxes and vats.
The Italian government has reportedly allocated more than 50 billion euros this year to try to cushion the impact of rising energy prices on businesses and households. Preliminary data released on Aug. 31 showed that Italy's inflation rate rose to 9.0 percent in August from 8.4 percent in the previous month, as electricity and gas prices rose.
In response, the Confederation of Italian Enterprises proposes that shops and other service providers turn off their lights for 15 minutes at noon every day to raise public awareness in this regard. The retail and service industry has also drafted a 10-point energy efficiency plan for all members, with a core approach to lighting, refrigeration, air conditioning, heating, cooking and cleaning.
Sales of wood-wood fireplaces in Spain increased significantly
Just after August, the Spaniards are already preparing for an uncertain winter. According to the Spanish newspaper Le Monde website on August 31, the soaring prices of natural gas and electricity, coupled with the energy-saving measures that the Spanish government may take in the coming months, have led to an unusual growth trend in demand for some home heating alternatives such as firewood and fireplaces.
In some local warehouse-type supermarkets, sales of heating products have increased by 30% compared with last year, while other types of stores have also felt the rush of hoarding. Sergio, the manager of a firewood store, said: "People are buying firewood in advance because they are worried that there is no firewood to burn. In the past, customers usually placed two orders for 2,000 kilograms, one when there was a slight chill and the other around January, but now they prefer to order 4,000 kilograms at a time, after all, they don't know what to expect. ”
Sales of fireplaces that need to be burned are also on the rise. Raphael, who has worked in the industry for 50 years, said that since returning from a vacation in mid-August, his store sales have tripled compared with the same period last year, and "90% of customers say that natural gas prices will rise sharply and they will not be able to pay for them."
According to the report, many factors have extended the delivery time. Last year's delivery time was 4 weeks, while this year his customers have to wait 9 weeks. In other words, if you order in August, you will have to wait until November to receive the goods. That said, if locals want to have a fireplace this winter, they're going to place an order now. (Editor/ Xiong Wenyuan, Yang Xuelei, Li Zijian, Ping Yue)
Empty shelves in a supermarket in Cáceres, Spain. Rising fuel prices have affected the market supply of some commodities in Spain. (Xinhua News Agency)