Europe Is Gaslighting Itself About Its Energy Woes
As gas prices rise, politicians are in denial about the challenges a cold winter may pose.
As gas prices rise, European politicians are in denial about the challenges a cold winter may pose.
Photographer: David McNew/Getty Images
Since Russia’s invasion of Ukraine triggered a European energy crisis, the bloc hasn’t been completely honest about its dire situation. It misinterpreted what was pure luck with the weather for strategic success, for example. Now, it’s worse: European policymakers are gaslighting themselves about the outlook.
The result is another winter of high prices, not just for gas but also for electricity, further darkening the future for energy-intensive companies in the region. Rarely a week goes by without a major manufacturing sector announcing plant closures, job losses and write-downs worth billions of euros. Households, too, will feel the hit; retail gas and electricity prices will climb, boosting inflation and posing another headache for the European Central Bank and the Bank of England.
European wholesale gas prices have risen this week to €47 ($50) per megawatt-hour, double the February low point. While current prices are a fraction of the all-time high set at more than €300 per MWh during the worst of the energy crisis in mid-2022, they remain about 130% above the 2010-2020 average.