If Russian natural gas flows to the European Union are halted, the bloc's economy is likely to slump into a recession, and nations with the heaviest reliance on those energy supplies are set to suffer the deepest consequences.
The economists of the bloc warned that a halt to natural gas supplies from Russia will likely cause the EU to go into a recession.
Paolo Gentiloni, European Commissioner for Economy, said in a Monday statement that Russia's invasion of Ukraine is causing untold suffering and destruction, but is also weighing on Europe's economic recovery.
The European Commission predicted that the gross domestic product will rise 2.5% this year and 2.3% in the years to come, lower than their previous predictions.
It maintained that the invasion of Ukraine by Russia would slow down growth for this year, and that companies and household spending would be hit hard by rising energy prices.
EU economists expect inflation to exceed wage rises, resulting in a decline in real household disposable income.
They predicted that nations within the eurozone would see consumer prices rise at an annual average rate of 6.1% in 2022, up from their previous 3.5% forecast.
The Commission has proposed an embargo on Russian oil and a plan to cut it out within six months. Hungary warned it would veto the move unless it got an exception.
The package cannot be supported in its current form. The Hungarian foreign minister said in a Facebook video that they couldn't vote in a responsible way.
An oil analyst told Insider that an oil embargo would cause Russia to go into a depression.
Every single dollar a country is paying for Russian oil is funding the war in Ukraine. The goal is to cut off Russia's ability to continue the war.
All Rights Reserved © 2024
