Daniel Gros is a German economist and a distinguished fellow at the Centre for European Policy Studies, a European think tank.
The EU is facing an energy crisis. Russia’s de facto embargo on gas exports has sent spot prices on Europe’s exchanges to unprecedented levels. The prices paid by consumers have also increased, albeit much less so than the spot prices. Prices for households have doubled in many member states, while gas spot prices on the exchange have increased by a factor of 10 or more.
Consumers are anxious about the increases they have already been
confronted with. But the even higher spot prices mean that further large
increases might be coming soon. Consequently, politicians are in a
state of near panic, much like consumers are. (...)
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