Given the energy crisis the old continent is going through, the European Union has called for an emergency meeting of energy ministers. The awakening is late, and the little action following the policy towards Russia touches on the Candide of Voltaire. The EU will have to decide on an effective energy-saving program, including a public campaign to support it and make it clear that nations will help each other by sharing what little gas is available.
 
In Germany, the one-year power forward contract jumped last week to a record high of more than 350 euros per megawatt-hour, up 750% from an average of 41 euros between 2010 and 2020.
 
And things could quickly get worse. Because Russia has cut Germany’s gas supply by around 60%, Uniper is losing about 30 million euros daily. That’s about 10 billion euros a year, roughly the cost of what the German government plans to spend to keep the company afloat. If Russia completely cut off the flow, daily utility losses would rise to around 100 million euros daily, or more than 35 billion yearly.
 
At the same time, the Italian government that miraculously survived 21 months is likely to collapse this week, and the rest of Europe is no better off. The unprecedented German coalition currently in power in Berlin could follow. A recently elected French president without an absolute majority has one of the worst satisfaction rates at the start of his term. Great Britain is looking for a leader, and Spain has no majority.
 
The recession is on its way, inflation is hitting new highs, the European currency is collapsing, debt is exploding, and political chaos fuelled by a lack of long-term vision could lead the old continent towards a bleak future.