October 2, 2022

News 24a

News that matters

Inflation hits record after record in Europe. Economists come with gloomy news for the fall

In Europe, inflation is hitting record after record, and economists warn that the situation will worsen from the fall when energy prices will be acutely felt.

Although until recently it promised not to impose additional costs on consumers, the government in Berlin has announced a new energy tax. Households in Germany will have to pay almost 500 million euros more in bills every year to help utility companies cover the difference in supply costs.

Other European countries are also taking measures to reduce energy consumption.

The German government has introduced a new energy tax – 2.4 eurocents for every kilowatt hour – intended to help utilities cover the cost of replacing Russian supplies.

480 euros extra per year on bills

A family of 4 will have an extra 480 euros per year on their energy bills.

Read also

Marcel Ciolacu

Robert Habeck, Minister of Economy: “The new tax is the fairest possibility to distribute the additional costs. The alternative would be the collapse of the German energy market and, automatically, of a large part of the European energy market”.

Added to this are the measures aimed at reducing energy consumption. In winter, public institutions will be able to be heated to no more than 19 degrees Celsius. The authorities in the German state of Bavaria went further. They cut off hot water in public buildings and reduced business travel. Employees will work from home, where possible. The new tax will accelerate inflation in the largest European economy, which has already reached 8.5%.

Olaf Bruhl, resident: “Food costs me 50 euros a week, now I have to spend at least 70 euros. I have a neighbor who does not sleep at night because she can no longer pay her rent. The fear of not reaching the open sky makes you sick all over your head. This scenario bothers me too”.

Britain calls for urgent action

In the UK, growing voices are calling for urgent measures to rein in costs, after inflation has reached almost 10%.

Helen Adamson, nurse: “The coming winter will be terrible. I live alone and I made a plan with a friend, who also lives alone, to stay either at one or the other, so as not to heat two houses”.

During this time, the prime minister still in office, Boris Johnson, allows himself to joke about the price increases.

Boris Johnson: “You got free food and drink, didn’t you? It’s fantastic, take advantage of the opportunity, because it doesn’t happen too often in these hard times.”

Demonstrations in Spain

In Spain, farmers’ unions in the provinces of Aragon and Seville denounce the unsustainable costs of agriculture in the streets.

Man: “We are asking for cheaper diesel and gasoline. Now it is 2 euros per liter, it must be halved. At 2 euros per liter, farmers are ruined, as are all those who use cars”.

On the other hand, employers in the services contest the decision of the Sanchez government to impose a reduction in energy consumption. From August 10, shops, office buildings, theaters, airports and train stations are not allowed to set the air conditioning below 27 degrees.

“It’s very hot. We should keep the air conditioning at less than 20 degrees, otherwise the customers don’t feel well. Now the temperature in the bar exceeds 30 degrees”.

Holland pays 20% more on food

In the Netherlands, the population pays almost 20% more for food than in September 2021.

The galloping inflation also urges the inhabitants of the European capital, Brussels, to go to the provinces, where life is cheaper. In the last year, 45 thousand inhabitants left the capital, the largest number in the last 3 decades.

Marține Dury – real estate agency director: “Only the northern area of ​​Brussels, in Laeken, has acceptable prices, otherwise, the cost of living is much too high in Brussels”.

The high prices also hurt the Greeks. The monthly inflation is 12%, close to the record of the last 30 years.

And in neighboring Hungary, price increases reached the highest level since 1998. Inflation in July reached 13.7%. The increase in food prices by approximately 27%, even 50% for bread and cheese is to blame. But from autumn, the focus will fall not on food, but on energy prices. The ceiling on fuel prices is already being removed, which could lead to inflation over 20%.

Source link

1 2 3 4 5 6 7 8 9 10 11 12 13 14