Russian President Vladimir Putin’s brutal war on Ukraine has resulted in Western Europe shaking off its dangerous dependence on Russian oil and gas. It isn’t hyperbole to say that this is a big deal.
Putin saw this as leverage. Yes, the West might squawk about his invasion, he reasoned, but its thirst for energy would supersede any efforts to assist Ukraine in meaningful ways. After all, such efforts could result in his turning off the taps, a move that Putin thought would plunge Europe into a cold, dark winter and deep recession.
Lower energy prices have supported Europe’s GDP — something that Putin didn’t anticipate. Capital Economics, a London-based consulting firm, says the net cost of natural gas, relative to GDP, will fall by more than half in Germany, France, Italy and other major European countries. In the U.S., the St. Louis Federal Reserve notes that spending by U.S. households on energy goods and services—while still elevated—has fallen sharply since June 2022.
But there is another reason that Europe has been able to maintain its economic equilibrium in the face of massive energy upheaval. It is something that gives the West a major, structural advantage over the authoritarian regimes in Moscow and Beijing: In open, free market economies where capital and ideas flow faster to where their yield can be maximized, adjustments can be made quickly when circumstances — like a major war — intrude.
Nobody believes this dirt anymore
Apologies, but this is BS
Yeah? Tell our energy bills
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Source: WashTimes - 🏆 235. / 63 Read more »