Pierrakakis on CNBC: Possibly the largest energy crisis in history

17 hours ago 11

Kyriakos Pierrakakis gave a captious appraisal of the planetary economical and vigor scenery successful an interrogation with the American web CNBC and writer Karen Tso.

The Minister of National Economy and President of the Eurogroup warned of the unprecedented standard of the existent crisis, portion besides analyzing Europe’s resilience and the indispensable fiscal countermeasures.

Worse situation than the 1970s

Mr. Pierrakakis stressed that the interaction of the existent concern is highly significant, adopting the International Energy Agency’s (IEA) appraisal that we whitethorn beryllium facing the largest vigor situation successful history.

The curate sounded the alarm for the contiguous play ahead, noting that April whitethorn beryllium much problematic than March. As helium pointed out:

• the past shipments that departed astatine the extremity of February are expected by April 20, meaning the effects volition soon go much disposable successful the markets.

• adjacent if determination is an contiguous diplomatic solution, it volition instrumentality astatine slightest 2 months to reconstruct the proviso chain, which volition past run astatine little levels.

• already, 80 vigor facilities successful the Middle East person been affected, with one-third of them suffering important damage.

Resilience and stagflation

Despite the IMF’s bleak forecasts for maturation of conscionable 1.1% successful the eurozone, Mr. Pierrakakis appeared cautiously optimistic astir Europe’s defenses.

Europe is successful a amended presumption than successful 2022 owed to the diversification of vigor sources and investments successful infrastructure, helium noted. 43% of energy accumulation present comes from renewable sources, though dependence connected imports remains high, astatine 57%.

However, helium stressed that though little maturation and precocious ostentation are being observed, “we are not yet successful stagflation conditions,” which helium described arsenic the worst-case scenario.