High energy prices are one of the major risks to the pace of the Eurozone economic recovery in the near future, the head of the ECB Christine Lagarde said this at a press conference, Report informs, citing Prime.
"Economic recovery continues to be driven by the dynamics of the pandemic and progress in vaccinations... Supply problems and higher energy prices are the major risks to the pace of recovery in the short term," she said.
High energy prices in the Eurozone could reduce the region's purchasing power in the coming months, she added.
The European Union, the economic core of which is the Eurozone, has faced a significant increase in gas prices, which leads to a serious increase in electricity prices. This puts pressure on the economy and consumers.
At the same time, the European Commission stated that prices for "blue fuel" are cyclical, set by the global market, and one of the reasons for the current leap is the recovery of the world economy.
The European Commission also noted that Gazprom, the main gas supplier to the European Union, although it fulfills long-term contracts with buyers, has not responded to higher demand, as it did in previous years.
In October, Gazprom reported that the company's gas exports to non-CIS countries, according to preliminary data, increased by 15.3% in January-September, to 145.8 billion cubic meters of gas. This is the second-highest figure for nine months in the entire history of deliveries.