Summary : Growth in the euro zone economy accelerated in the second quarter of the year, but the region’s prospects could be hit as Russia continues to reduce gas supplies.
Even the European Commission, the executive arm of the EU, has admitted that a recession could be on the cards — and as early as this year if Russia completely cuts off the region’s gas supplies.
Officials in Europe have become increasingly concerned about the possibility of a shutdown of gas supplies, with European Commission President Ursula von der Leyen saying Russia is “blackmailing” the region.
However, Gazprom, Russia’s majority state-owned energy giant, reduced gas supplies to Europe via the Nord Stream 1 pipeline to 20% of full capacity this week. Overall, 12 EU countries are already suffering from partial disruptions in gas supplies from Russia, and a handful of others have been completely shut off.