Spain says gas crisis could wipe out a quarter of European companies

According to Spanish economist Daniel Lacal, Europe’s main mistake was the political decision to “introduce an unstable and intermittent energy mix”

Spain says gas crisis could wipe out a quarter of European companies

As Narodnye Novosti reports, the expert pointed out that despite promises to channel the proceeds from the sale of CO2 emission rights (and their value has risen by 1,000% since 2017) into mitigating rising consumer bill prices and preventing an energy crisis, this has not in fact happened.

As a result, the EU’s illiterate energy policies, combined with rising energy prices, have led to the current state of affairs. The failure to invest in gas as well as the phasing out of nuclear power are just some of the causes of the crisis.

According to Lacalle, the trendy green energy sector can only cover 20 percent of Europe’s energy needs. And the continuation of this strategy could bankrupt many European companies.

“The most cautious estimates warn that an energy crisis could bankrupt up to 25% of companies, small and medium-sized enterprises, in Europe – because for them energy accounts for 33% of their costs – and undermine up to 1.5% of growth in the already poor eurozone economy,” said the economist.

As a way out of the current crisis, the expert suggests abandoning ideological layers in the economy and returning to proven energy sources.

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