Energy dominates Europe’s agenda

ANKARA

Europe is struggling to address a deepening energy crisis partly due to the ongoing Russia-Ukraine war as Moscow has suspended natural gas supplies in response to economic sanctions imposed by the West.

Governments are trying to diversify energy supplies and introduce measures to reduce demand and save energy.

European leaders participating in the UN climate change summit (COP27) in Egypt, held on Nov. 6-18, have underlined the importance of green hydrogen and clean energy in enhancing the economies of countries worldwide.

Speaking at a roundtable on investment in the future of energy, German Chancellor Olaf Scholz emphasized the need to move to green hydrogen to enhance the economies of the countries.

"There must not be a worldwide renaissance of fossil fuels," Scholz said, adding that "for Germany, I can say: there will not be one."

Speaking at the same event, European Commission President Ursula von der Leyen called on wealthy countries to invest billions in the infrastructure of African countries and others to find alternatives for energy.

Germany

As higher gas and oil prices continue draining billions of euros, the German economy’s real income losses this year will amount to some €64 billion ($64 billion), according to the Munich-based Ifo Institute for Economic Research.

The figure equals 1.8% of Germany’s economic output, said a report released by the institute on Tuesday.

The country lost €35 billion last year and is expected to see another €9 billion in losses next year.

“Together, this gives us a real income loss over those three years of almost €110 billion, or 3% of annual economic output,” said Timo Wollmershauser, the head of forecasts at Ifo.

“The only time this figure was higher was during the second oil crisis of 1979-81, when the loss in economic output was 4%,” he added.

He warned that the current decline in real income is expected to persist over the next few years.

“First, losing Russia as a supplier means that energy prices will likely remain high for the long term. Second, Germany won’t free itself from its dependency on energy imports overnight,” said Wollmershauser.

According to official preliminary estimates, Germany’s annual inflation hit a new all-time high of 10.4% in October, largely driven by a 43% annual jump in energy costs.

The energy-related economic crisis also shows its effects on the daily lives of people. Germany’s Jewish community on Tuesday warned against rising anti-Semitism in the country due to the energy crisis and skyrocketing prices.

“The Central Council of Jews in Germany is gravely concerned about a further increase in anti-Semitism during the winter months,” Mark Dainow, the vice president of the group, told a news conference in Berlin.

He said they are worried that the right-wing extremists may exploit the crisis to stir up fear and hatred against Jews in Germany.

“Rising energy prices will be a severe test for unity in our country. During uncertain times people are seeking answers through simplistic ideologies and conspiracy theories,” he said.

Dainow noted that between January and September this year, German authorities registered more than 1,555 anti-Semitic incidents, with “five anti-Jewish crimes" per day, adding that the figure is a source of serious concern for the community.

According to official statistics, nearly 85% of anti-Semitic crimes in Germany were committed by right-wing extremists in 2021.

Germany is facing the biggest energy crisis ever due to the ongoing Russia-Ukraine war, which led to disruptions in the oil and gas supply and pushed energy and food prices to record highs.

Authorities have been warning that far-right groups are trying to profit from the crisis, spreading fake news to fuel anxieties, and incite hatred against refugees, migrants, Jews, and Muslims in Germany.