All posts tagged: Energy prices

Europe’s coming energy crunch – POLITICO

Europe’s coming energy crunch – POLITICO

Published by Sam Flores

“Markets are now grappling with a scenario long discussed in theory but rarely thought of as a legitimate possibility — the effective shutdown of the world’s most critical energy chokepoint,” said Ana Maria Jaller-Makarewicz, lead energy analyst for the Europe team at the Institute for Energy Economics and Financial Analysis. While the 1970s crises knocked out 7 percent of global supplies, she said, the closure of the Strait of Hormuz affects 20 percent.  U.S. President Donald Trump exits Air Force One on March 29 at Joint Air Base Andrews, Maryland. | Nathan Howard/Getty Images When the war first broke out, EU officials hoped the bloc would be spared from serious shortages thanks to its relatively low exposure to the Persian Gulf, which it relied on for just 6 percent of its crude oil and under 10 percent of its natural gas. The biggest risk articulated in countless ministerial and technical meetings was higher prices.  Europe’s security of supply was rarely questioned, with officials pointing to the continent’s diversified sources beyond the Persian Gulf: the U.S., …

Why Europe’s social democrats can’t stop losing – POLITICO

Why Europe’s social democrats can’t stop losing – POLITICO

Published by Sam Flores

Tobias Cremer, a German social democratic lawmaker in the European Parliament, said the announcement was spurred by the poor results in the regional elections, and showed the party was serious about delivering “on the bread and butter issues.” “It’s about economic growth, it is social justice, but it’s also [about] reforming our economy in a way that it’s for us to determine how we work, not for the White House, not for the Kremlin, not for China,” he added.  The Trump bump One unlikely boost for Europe’s center left has come from U.S. President Donald Trump, whose provocations have helped mobilize some voters. One unlikely boost for Europe’s center left has come from U.S. President Donald Trump. | Alex Wong/Getty Images MEP Cremer said Denmark’s Social Democrats, who have been in power since 2019, would likely have suffered an even worse defeat in the election had it not been for the voter sympathy generated by Frederiksen’s refusal to give in to Trump’s threats to annex Greenland. “Our comrades in Denmark did an outstanding job, they …

Vermögenssteuer durch die Hintertür? Mit Moritz Schularick – POLITICO

Vermögenssteuer durch die Hintertür? Mit Moritz Schularick – POLITICO

Published by Sam Flores

Das Land braucht Reformen und einen Ausweg aus der Energiepreis-Falle des Iran-Krieges. Über die zwei aktuell drängendsten ökonomischen Baustellen spricht Rixa Fürsen in dieser Sonderfolge mit dem ⁠Präsidenten des Kiel Instituts für Weltwirtschaft (IfW), Moritz Schularick⁠. Erneut findet sich Deutschland in der Rolle des Zaungasts wieder: Wie schon bei der Invasion der Ukraine spürt das Land die Folgen eines Krieges, kann aber nur eingeschränkt handeln. Besonders in der Energiepolitik scheinen uns mangels Handhabe die Hände gebunden. Aber ist das wirklich so? Moritz Schularick zeigt Wege aus der totalen Abhängigkeit auf. Im Gespräch skizziert er eine mögliche strategische Energiepartnerschaft mit Frankreich, inklusive der Debatte um Atomstrom. Der Ökonom erklärt, warum staatliche Eingriffe gegen hohe Spritpreise das falsche Signal sind und wie bürokratische Kleinkriege in den Ministerien Deutschlands die Energie- und Sicherheitspolitik gefährden. Außerdem analysieren Rixa Fürsen und Moritz Schularick den neuen Reformeifer von Union und SPD. Schularick zeigt auf, warum eine Erhöhung der Mehrwertsteuer im Grunde eine verdeckte Vermögenssteuer wäre und wieso Politik und Öffentlichkeit endlich aufhören müssen, nur über den Erhalt der Auto- und Stahlindustrie …

France to spend €70M on fuel subsidies for farmers, trucks and fishermen in April – POLITICO

France to spend €70M on fuel subsidies for farmers, trucks and fishermen in April – POLITICO

Published by Sam Flores

PARIS — The French government will spend €70 million to subsidize the price of fuel for farmers, logistics companies and fishermen from April 1 until the end of the month. “We have built a response at the national level which is gradual, targeted, sector-specific and limited to the month of April,” Economy and Finance Minister Roland Lescure told reporters Friday evening, presenting the plan amid spiking energy prices caused by war in the Middle East. “My primary concern is, above all, to sustain growth while ensuring that every euro of public money is spent effectively,” said Lescure. Source link

Seafarers trapped in the Gulf are suffering — it’s time we paid attention – POLITICO

Seafarers trapped in the Gulf are suffering — it’s time we paid attention – POLITICO

Published by Sam Flores

And that’s not all. Some of the stranded ships are now starting to run out of food and other necessities. “It’s not as easy as people think to get resources to the ships,” explained Hutchinson. “And now we’re beginning to see pressure on supplies getting to the ships. The firms that deliver the supplies are local. Fuel is up from $700 per ton to over $2,000, and these firms have to secure the supplies in the first place, which isn’t easy when the Strait of Hormuz is closed. And in a situation like this, delivering the supplies to the trapped ships requires a lot of time and resources too.” These ships are also carrying all manner of cargo — oil, gas and fertilizer, of course, but also perishable commodities and, most likely, even livestock. Imagine sitting on top of cargo that could explode at any moment — or die. “Some will be able to leave, but for the ones with U.S. and Israeli affiliation, there’s no way out,” Hutchinson noted. And Europe-linked ships may remain …

Thought Iraq was a blunder? Iran is far worse. – POLITICO

Thought Iraq was a blunder? Iran is far worse. – POLITICO

Published by Sam Flores

That, too, will have a lasting impact well beyond anything the war in Iraq did. Finally, the fact remains that when Bush decided to invade Iraq, Russia and China were still minor global powers. Russian President Vladimir Putin was only just starting his effort to stabilize the economy and rebuild Russia’s military power, while China had just joined the World Trade Organization and was still a decade or more away from becoming an economic superpower. In other words, America’s blunder in Iraq occurred at a time when the strategic consequences for the global balance of power were still manageable. Trump’s Iran debacle is occurring at a time when China is effectively competing with the U.S. for global power and influence, and Russia is engaged in the largest military action in Europe since the end of World War II. A woman sifts through the rubble in her house in Tehran, Iran on March 15, 2026 after it was damaged by missile attacks two days before. | Majid Saeedi/Getty Images Both stand to benefit greatly. Russia is …

Germany pushes new military cooperation deal with Japan – POLITICO

Germany pushes new military cooperation deal with Japan – POLITICO

Published by Sam Flores

The proposal marks a step beyond Germany’s recent Indo-Pacific engagements, which have largely focused on joint exercises and short-term deployments. It signals a shift toward more structured military cooperation with Berlin’s partners in the region. Pistorius framed the move as part of a broader response to growing global instability. “How close our partnership is has become clear in light of the current developments in Iran and the Middle East,” he said, pointing to Japan’s heavy reliance on energy imports through the Strait of Hormuz. “The freedom of sea routes must be guaranteed and protected.” Germany and Japan share an interest in securing global trade routes, he added, stressing that both countries remain committed to the rules-based international order. “We are united by the conviction that the strength of the law must prevail,” Pistorius said. The initiative also reflects a broader strategic shift in Berlin and Tokyo. As both governments face rising pressure from authoritarian powers — from Russia’s war in Ukraine to China and North Korea in East Asia — they are increasingly treating their …

EU urges member countries to ease gas demands amid Iran conflict

EU urges member countries to ease gas demands amid Iran conflict

Published by Sam Flores

European countries are being advised to lower gas storage filling targets and to start refilling gas stores early, as the conflict in Middle East drives up global energy prices. European Energy Commissioner Dan Jørgensen urged in a letter to national energy ministers, seen by POLITICO, that countries should be flexible in how they refill gas stores, to “help reduce the gas demand at times where the supply is tense and ease the pressure on gas prices in Europe.” Since the U.S. and Israel launched strikes on Tehran in late February, the ensuing conflict has caused global energy prices to spike, driven in part by Israeli strikes on Iran’s vast offshore gas field and Tehran’s effective closure of the Strait of Hormuz, a critical passage that facilitates a significant share of the world’s oil and natural gas trade. In the letter, Jørgensen asked EU countries to lower their gas storage refilling targets to 80 percent, 10 percentage points below normal targets. He also suggested that countries could start storage injections early to avoid an “end-of-summer rush to …

Italy, Belgium set to lose gas supply after world’s biggest LNG plant bombed – POLITICO

Italy, Belgium set to lose gas supply after world’s biggest LNG plant bombed – POLITICO

Published by Sam Flores

Nothing to see here Earlier on Thursday German Energy Minister Katherina Reiche had downplayed the impact of the war, saying: “What we in Europe don’t have is a physical bottleneck.” She insisted the EU’s gas supplies are still flowing from Norway, the U.S., Kazakhstan and other countries. But Reiche said while she doesn’t believe the current situation is as serious as the 2022 shock following Russia’s invasion of Ukraine, “the current situation is also causing us concern,” and that it’s critical for Europe to continue to “monitor this crisis and make careful decisions.” Her comments came as EU leaders met for high-level talks in Brussels on Thursday, with energy one of the top issues. In 2022 Germany depended on Russia for more than half of its gas, but now relies on Norway and the Netherlands for the majority, importing some LNG from the U.S. It is not dependent on Qatari LNG. Other EU countries including Poland, Italy and Belgium depend on the Middle East country for a larger percentages of their LNG. Poland said Thursday …