What to do in the current energy crisis?
Oil and gas exports from the Gulf region have plummeted as a result of the war with Iran – triggering price spikes on the global market. Although Iran has now reportedly reopened the Strait of Hormuz to cargo ships from "non-hostile countries", European media discuss the problems associated with the supply crisis and potential remedies.
Powerless against inflation
Gość Niedzielny warns against pinning the blame on our governments:
“Inflation is making a comeback. The very same inflation that, until recently, was attributed solely to 'poor governance'. So we should be very clear in saying today that no government in Poland – neither the PiS nor the current coalition – possesses a magic wand that can influence global energy prices. ... And perhaps this is the most important lesson. Politicians will always make promises. They will always oversimplify things. They will always point the finger at someone else, especially their predecessors. But we will still be the ones footing the bill. Not at the ballot box, but at the petrol pump.”
Fertiliser shortages too
It's not only oil that is in short supply because of the Iran war, economist Indrė Genytė-Pikčienė points out in Alfa:
“Nitrogen fertiliser is made from natural gas, which means that price fluctuations have a direct impact on production costs. If prices increase, farmers pay more or reduce the amount they use – which generally means higher costs or lower yields. .... This crisis is also significant because the Gulf states – Iran, Oman, Qatar, Saudi Arabia and the United Arab Emirates – are key players in the fertiliser market. Their urea exports account for more than a third of global maritime trade [in this raw material]. A blockade of the Strait of Hormuz would therefore not only interrupt about a fifth of the global gas supply, it would also directly impact the urea supply.”
Speed limits like in 1973
The Süddeutsche Zeitung calls for speed limits on German motorways:
“It will not be the end of the world, the journey will just take a little longer. Here's a suggestion to calm people's nerves: the speed limits could initially be imposed only for the duration of the Iran war. The federal government could also point to historical precedent: Germany has already had a 100 (!) km/h motorway speed limit that lasted six months. Just as it had a rule that on certain days, cars with even numbers could enter the city centre, and cars with odd numbers on others. Both of these rulings were imposed in response to the oil price shock of 1973.”
Paris's pockets are empty
Les Echos criticises the far-right populist Rassemblement National's push for a reduction in VAT on fuel:
“Its killer argument? The price explosion is enriching the state. Is this wrong? Not in the short term. But yes, in the long term, because all economic slowdowns are expensive. If the government is getting tangled up in its own arguments, it is simply because it cannot bring itself to admit the truth: it has 'run out of money'. The coffers are empty and that's not going to change any time soon. But it should be noted that the French people and politicians are just as responsible for this situation. When has the RN agreed to spending cuts in recent months? On the contrary, it has consistently kept its foot on the accelerator.”