EU Economy Chief Says Effective Energy Action Can Stop Recession

Europe can avoid recession if officials in charge of monetary and fiscal policy can agree on effective measures to tackle soaring energy costs.

If we work together, monetary policy and fiscal policy, and with the right package on energy, we can avoid recession, Gentiloni said. It is a challenge but it can be done.

Europe is gripped by its worst energy crisis in 50 years as Russia retaliates for sanctions. Europe is on the verge of a recession because of a surge in inflation.

President Putin warned that Moscow would stop supplies if a price cap on gas imports was introduced.

Russian gas accounted for 40% of the EU's demand last year. Most countries are finding alternatives to Russian supplies, but households and companies will likely face forced energy cuts in the winter.

The euro area's growth was slashed by the European Central Bank.

Luxembourg Finance Minister Yuriko Backes said there was a risk of a recession.

She said that we need to coordinate steps at EU level. All of us need to support companies and households.

The help was given by Kamil Kowalcze,Jorge Valero, and Katharina Rosskopf.