The energy crisis cost Europe almost 800 billion EUR
The eurozone faced many struggles this winter, especially in the energy sector. The EU has set new sanctions on Russia due to the latter’s invasion of Ukraine. However, Kremlin responded to these restrictions with its own one – it stopped gas flow in EU countries. Thus, their governments had to find new sources of gas as well as use their resources more frugally.
Furthermore, skyrocketing energy prices also hit the euro area hard. On Monday, analysts reported that European countries spent almost 800 billion EUR on energy over the last months. They also warned the authorities to be more cautious about energy spending to avoid deepening the crisis.
EU countries have already allocated 681 billion EUR to alleviate the results of the energy crisis. Since September 2021, Norway has spent 8.1 billion, and the U.K. has set aside 103 billion EUR for the same purposes. The overall count reached 792 billion EUR as the countries tried to survive this winter after Russia had stopped most of its gas deliveries to the eurozone in 2022.
Thus far, Germany has spent the most. The country allocated almost 270 billion EUR – more than any other EU country. Britain, Italy, and France each set aside 150 billion EUR. However, other countries spent much less.
The EU recently proposed to develop green technology projects further. The governments will likely aid with this endeavor to find other sources of energy and replace gas with them eventually.
Meanwhile, France declared that the EU needs to tighten its rules on ESG funds
France’s markets watchdog AMF announced on Monday that the EU needs to restrict its rules for labeling sustainable investment funds. According to AMF, economists are concerned about applying ESG regulation as it might result in “greenwashing” those investors who want to reduce carbon emissions.
Even though the EU’s sustainable finance disclosure regulation (also known as SFDR) participates in classifying funds as sustainable, AMF thinks that’s not enough. Brussels should give a more targeted review and better define what will be considered a sustainable investment.
