ARCHIVED - Sanchez warns of harsh economic impact of the war on Spain
ARCHIVED ARTICLE
The war in Ukraine threatens a “brutal energy crisis” in Spain and the rest of Europe
The invasion of Ukraine by Russia has already had a devastating impact on global economic recovery, with European stocks plummeting just hours after the attacks ordered by Vladimir Putin began and oil and gas prices rising to unprecedented levels overnight. The threat of war has been looming for weeks and Spain’s President Sánchez assured the nation on Thursday February 24 that the government has formalised a plan to contain the impact on citizens’ pockets, without actually detailing what this entails.
Instead, the president simply said that Spain has “been preparing its reaction to this risk for some time and we have taken as many measures as are necessary to mitigate the economic and energy impact on society, households, industry and the economic recovery.”
And it appears a plan is sorely needed, as a barrel of Brent oil swept past the $100 mark yesterday to reach its highest level since 2014 while the reference metre for gas in Europe (the Dutch TTF) reached 144 euros per megawatt hour – a rise of more than 60% overnight.
The shock caused by the Russian attack was also quickly transferred to the Spanish markets, where gas shot up to 113 euros/MWh, its highest price so far this year. Similarly, electricity shot up to 240 euros/MWh, its second-highest value.
The sharp rise in gas and oil prices has led many experts to hint at the possibility of a new recession. Spain, and Europe in general, was already experiencing unprecedented inflation, but as higher energy prices continue to push up the costs of virtually every consumer product, Manuel Hidalgo, professor of Economics at Pablo Olavide University, believes it is almost inevitable that the European economies will end up entering a recession.
“If the conflict continues or deepens, we are going to have a brutal energy crisis,” he said.
When it comes to oil, the impact of the war becomes less clear, but Antonio Turiel, tenured scientist at the CSIC, has pointed out that if the prices reached Thursday are maintained for more than a few weeks, it will almost certainly result in a world recession.
“If these scenarios materialise, they inevitably lead to a recession... a brutal one. We’ve never seen anything like this,” he concluded.
To be listed on the CAMPOSOL TODAY MAP please call +34 .
To be listed on the CONDADO TODAY MAP please call +34 .
Guidelines for submitting articles to Camposol Today
Hello, and thank you for choosing CamposolToday.com to publicise your organisation’s info or event.
Camposol Today is a website set up by Murcia Today specifically for residents of the urbanisation in Southwest Murcia, providing news and information on what’s happening in the local area, which is the largest English-speaking expat area in the Region of Murcia.
When submitting text to be included on Camposol Today, please abide by the following guidelines so we can upload your article as swiftly as possible:
Send an email to editor@camposoltoday.com or contact@murciatoday.com
Attach the information in a Word Document or Google Doc
Include all relevant points, including:
Who is the organisation running the event?
Where is it happening?
When?
How much does it cost?
Is it necessary to book beforehand, or can people just show up on the day?
…but try not to exceed 300 words
Also attach a photo to illustrate your article, no more than 100kb