Germany Risks Recession as Russian Gas Crisis Deepens

Italy, as well as others, such as Austria, Denmark, Germany and the Netherlands, has activated the first early warning stage of its three-stage plan to cope with a gas supply crisis.

Rachel More and Stine Jacobsen, Reuters

Germany faces certain recession if already faltering Russian gas supplies stop completely, an industry body warned on June 21, as Italy said it would consider offering financial backing to help companies refill gas storage to avoid a deeper crisis in winter.

European Union states from the Baltic Sea in the north to the Adriatic in the south have outlined measures to cope with a supply crisis after Russia’s invasion of Ukraine put energy at the heart of an economic battle between Moscow and the West.

The EU relied on Russia for as much as 40% of its gas needs before the war—rising to 55% for Germany—leaving a huge gap to fill in an already tight global gas market. Some countries have temporarily reversed plans to shut coal power plants in response.

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