Europe‘in natural gas problem began to take precedence over the problem of inflation. With the approach of winter, after Russia announced that the Nord Stream 1 pipeline would be out of service due to a malfunction, the balances in Europe began to deteriorate. ECB President Christine lagardegave the signals that the gas rationing application could start in Europe. Lagarde gave important clues about the natural gas crisis in his statement after the ECB announced the highest interest rate hike in 24 years.
SAVINGS STARTED IN THE EU
While measures for energy saving increased in Europe, natural gas supply came to a standstill. While the EU countries, which cannot fill their natural gas tanks, are not known what to do in the winter months, both its economic and sociological effects have been discussed. The EU Commission aims to save 45 billion cubic meters of natural gas annually with the savings.
THEY STARTED TO ANGRY RUSSIA
While Russia’s reaction to the EU Commission’s attempt to impose a ceiling price limit on Russian gas, the EU’s continuing sanctions against Russia, even though it needs natural gas, stands out as another contradiction.
LAGARDE DESCRIBED THE END OF THE NATURAL GAS CRISIS AS ‘DARK’
“The risks to growth are downside in the short-term,” ECB President Lagarde said. The downside scenario for growth includes negative 2023 growth. Downside scenario expects gas scorecard. “The downside scenario is really dark,” he said.
With the gas crisis looming in Europe and supply chains not being able to supply enough natural gas in the short term, Lagarde signaled that the EU public could be tied to the natural gas rationing.
NATURAL GAS ALLEGED TO HAVE TECHNICAL PROBLEMS
Natural gas flow was cut off by Russia due to the fault in the Nord Stream 1 line, which supplies natural gas from Russia to Europe. Russia had announced that it expected Siemens to repair the fault and reactivate the natural gas pipeline. Russia announced that the natural gas cut was not due to a political, but a technical failure.