BERLIN — European governments moved this weekend to soften the blow of soaring costs and a deepening energy crisis caused by the war in Ukraine, scurrying to prepare for possible social unrest as the days get colder. .
As Europe seeks to wean itself off Russia’s fossil fuels and the first major protests over energy costs appear on the continent, governments are rushing to adopt stopgap measures ahead of the fall and winter. . The Minister of Energy of the European Union, emergency meeting This week, three different countries announced relief measures on Sunday.
The biggest package comes from Germany, where Chancellor Olaf Scholz’s government has pledged a $65 billion bailout to soften the blow of inflation and the energy crisis. We are working to reduce it significantly.
Berlin announced two days after Kremlin-controlled Russian energy giant Gazprom would indefinitely suspend the flow of gas through its Nord Stream 1 pipeline, which terminates in Germany and supplies gas to much of Europe. , announced its package. Gazprom said the pipeline would remain closed until the issues discovered during the inspection were resolved, but did not provide a timeline.
European officials say the move is politically motivated. On Friday, G7 finance ministers agreed to impose a price cap on Russian oil to cut some of Moscow’s continued energy revenues from Europe.
“Russia is no longer a reliable energy supplier. It is part of the new reality,” Scholz said in a speech announcing the package on Sunday. “We are all feeling the consequences of the Russian war. ”
Economic instability is palpable across Europe.
In Prague, tens of thousands of protesters took to the streets on Saturday to express their anger over energy costs, a day after surviving a no-confidence vote over accusations that the government had failed to address soaring prices. Many demonstrators, led by political groups, also criticized the Czech Republic’s membership in NATO and the EU.
The protests underscore growing concerns among European leaders that the energy crisis and rapid inflation could spark political instability. Many citizens said they were worried about their savings and worried they wouldn’t be able to make their payments in the winter.
East England’s James Allcock said he put his savings into Beverly’s Bistro. Now 36, he fears losing everything. “Without government support in the next few weeks, we won’t be in business this time next year,” he said.
The economic ripples from the war gave some Europeans backing for Kyiv a pause.
“At the end of the day, you always want to do the right thing,” Alcock said. But that doesn’t change my opinion. We must support Ukraine and break away from Russian energy. But we have to do it together, with support at home. ”
On Sunday, Liz Truss, the frontrunner to become Britain’s new prime minister, said:act quickly‘, if elected, to address soaring energy costs.
In Stockholm, the Swedish government announced it would provide $23 billion in liquidity by March to help energy companies buy supply. Without that support, some utilities risk “technical bankruptcy” by Monday, Finance Minister Michael Dunberg said.
France is embarking on its biggest conservation effort since the oil crisis of the 1970s, with President Emmanuel Macron calling for an era of energy ‘temperance’. The government has spent more than $26 billion on him to cover rising household utility bills. It also calls on companies to appoint “energy saving ambassadors” and share their plans to reduce electricity consumption with the government.
Olena Zelenska, wife of Ukrainian President Volodymyr Zelensky. said in an interview with the BBC This weekend, she recognized that much of Europe is suffering from rising energy costs, but urged viewers to consider the price her country is paying.
“I understand that the situation is very difficult,” Zelenska said. “Prices are also rising in Ukraine. But in addition, our people are killed. .”
Despite all fears of economic pain, the European Union does not appear to be backing out of its plans to step up measures against Russia.
On Sunday, Ukraine’s Zelensky said he had spoken with European Commission President Ursula von der Leyen and had arranged ways to limit Russia’s profits from oil and gas sales.
In Ukraine, Ukrainian forces continue to press for reclaiming Russian-occupied southern territories, and the pace of fighting has intensified as the fighting enters its seventh month.
Ukraine has publicly announced an offensive for several weeks, according to Ukrainian military and Western allies, and Russia is racing to move equipment and stockpiles to the region to bolster its defenses. The list says between 15,000 and 25,000 Russian soldiers may now be stationed west of the Dnipro River.
The war prompted countries such as Germany to act quickly to reduce their dependence on Russian gas, which once accounted for about half of their imports, but is now down to about 10%.
Nonetheless, many in Europe are beginning to worry that public support may turn against governments that support Ukraine as the economic costs of helping Ukraine grow.
In Germany, protests are already being planned by the extreme right and the country’s main left-wing party, Die Linke. Some unions have vowed to protest if the latest government measures do not alleviate the problems facing low-income people.
“I hope the union and other progressive players will find a way to articulate their concerns in a constructive way,” said 21-year-old Berlin student Vincent Sipeer. Otherwise, he worries, some people with economic insecurity will join forces with groups demanding reconciliation with Russia.
Germany is relatively well prepared for winter, with gas storage capacity over 80 percent full and many national energy conservation measures already in place. However, inflation remains high, reaching nearly 8% in August, the highest in 40 years.
Last week, an episode of a national radio talk show was devoted to expert advice on how citizens can cut costs.
“I am very aware that many citizens are worried about their future,” Scholz said, but vowed “no one will be left behind.”
Natural gas prices are now ten times higher than they were a year ago, and the pain for less wealthy European countries will be even greater.
But even Europe’s largest economies are preparing for tough growth.
“We are facing difficult times,” Scholz said. But he assured the Germans: “We will survive this winter.”
The report was contributed by Christopher F. Schutze from Berlin, Emma Bubola from London and Liz Alderman From Paris.