Chief economist talks about Mario Dragh’s speeches – Rising energy is unlikely to stop Europe’s entire recovery


The rise in energy prices does not threaten Europe’s recovering economy, he believes Aktian chief economist Let Corin. The Prime Minister of Italy Mario Draghi has warned that higher energy prices will jeopardize the recovery of the whole of Europe from the corona crisis.

“There’s a little overdramatization to talk about that the whole recovery is in jeopardy. Of course, if prices rise, it will have a negative impact on economic growth. I don’t think the recovery will stop, ”Corin says.

A more concrete challenge, he said, is China, which has had to limit the electricity consumption of heavy industry. It could be reflected in subcontracting chains and component shortages in Europe.

Investment bank Goldman Sachs evaluates electricity regulation slowing down China’s economic growth by one percentage point during the third quarter.

“That’s why Europe needs to have free pricing,” he adds Fortumin strategy manager Vesa Ahoniemi.

Finnish companies have a solid position

Helen Sales and Customer Service Director Anu-Elina Hintsa points out in the debate that different countries and industries are, of course, in a different position with energy prices.

For example, many European fertilizer manufacturers may have to reduce their gas consumption next winter, which will balance the market, says Fortum’s Ahoniemi.

According to him, Finnish energy-intensive companies are well protected from price spikes due to their active market position.

France and Italy resorted to subsidies

The sharp rise in energy prices has already stretched southern Europe to the extremes. France and Italy have decided on support packages for households.

In Finland, the Minister of Finance Annika Saarikko (Central) has commented that long-term and structural price increases may require joint EU action. Corin does not believe in a new recovery package.

“After all, a large part is allocated to the green transition. Such money will be used to solve such problems in the energy market. “


Source: Arvopaperi by www.arvopaperi.fi.

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