The Ukraine-Russia war’s butterfly effects are spreading across the world and Europe is not an exception.
A Glimpse of Today’s Europe
The whole of Europe is in turmoil. Winter is around the corner and Europe is facing an extreme energy crisis. The governments are facing a public backlash at an extreme level. In France, common citizens are demanding an exit from European Union and NATO. The French public is demonstrating high-scale protests against low wages and the energy crisis demanding hikes in salaries. To curb these protests, president Macron has imposed penalties that proved useless.
In Germany, the energy crisis is affecting industrial production causing high inflation. They are of the view that the EU and NATO have imposed various restrictions regarding the Ukraine-Russia war only to project their power which has backfired. It is because Germany imports 55% of the required gas from Russia and France imports 17% of the required gas from Russia. Imposing sanctions on Russia is causing a severe energy crisis in the countries. Wood demands have been increased. Countries such as France, Germany, and Poland have started cutting trees and it seems like Europe is turned back to the medieval ages. Hungry has banned wood selling. EU is not able to take a consensus-driven decision on any issue. For example, the Netherlands, Poland, Italy, and Spain are abandoning Energy Charter Treaty. It is because, amidst such a crisis, it is difficult to act on this treaty. This whole mess has been created by America which is using Europe as its proxy.
China as a mediator
As Russia stopped supplying gas to Europe, China played the role of mediator. It purchased gas from Russia and sold it to Europe. According to a Bloomberg report, China also has restricted its gas importers including PetroChina, Xenopac, and Nuke limited to supplying LNG to Europe in order to meet its domestic needs unfolding disaster for Europe.
Russia is the only cure for Europe
Moreover, the world’s largest LNG exporter, Qatar, has also warned Europe of a fatal cold season if it fails to resume oil supply from Russia. Europe needs 112 million tons of gas, which constitutes one-third of the global gas supply. Having agreements with other countries, none of the gas exporters can fulfill Europe’s needs. Now, it is clear from the situation that only Russia has the cure for Europe.
To deal with the energy scarcity crisis, the EU has pledged 500 billion Euros in borrowing from other countries. And paying this debt will also be a challenge for Europe making this scenario worst.
Horrible Debt-to-GDP Ratio
Huge debt-to-GDP ratios are adding salt to injury. France’s debt to GDP ratio has surpassed 145%, Germany has 77%, the UK has 143%, and Italy has a 145% debt to GDP ratio indicating a scary disaster in Europe.
Time for Europe to take a U-turn
Energy products are critical and crucial for Europe and a shortage of these products can cause the collapse of Europe. It is the need of the hour to review the decision of imposing sanctions on Russia under the EU and NATO’s pressure if Europe wants its survival.