Politico: Energy crisis could trigger economic fallout in Europe

Europe could be on the brink of a major economic crisis, with potential consequences similar to those of the COVID-19 pandemic, according to sources within EU institutions.

Officials say the continent faces two urgent challenges: the severity of the ongoing energy crisis and its impact on individual countries, Caliber.Az reports, referring to Politico.

The fallout could affect all sectors of European industry.

A EU representative warned that a possible energy shortage and the resulting “economic contagion” could be more serious than the 2020 crisis.

António Costa, European Council President, is planning an urgent meeting of EU leaders in response.

German Chancellor Friedrich Merz earlier cautioned that an escalation of conflict in the Middle East could have effects on Germany and Europe comparable to the pandemic.

“If this war escalates into a major regional conflict, it could burden Germany and Europe even more than we experienced most recently during the COVID-19 pandemic or at the beginning of the war in Ukraine,” he stressed.

By Bakhtiyar Abbasov