EUROPEAN ENERGY CRISIS, RECESSION
BLOOMBERG - July 15, 2022 - Europe will plunge into a recession after a looming energy prices, prompting a scramble for jobs even in a country like Hungary that’s faced a labor shortage until now, according to Prime Minister Viktor Orban.
European Union sanctions against Russia, including on oil, have backfired as they’re causing bigger hardship for Europe than for Moscow while they’ve failed to push Russia to end its war, Orban said in a state radio interview on Friday.
“Until now I thought we had shot ourselves in the foot,” Orban said. “Now it’s more like the European economy had shot itself in the lungs and it’s now struggling to breathe.”
Hungary, which receives Russian gas via two main pipelines, is unlikely to face a cut-off of gas but it’ll also have deal with soaring energy prices, Orban said.
That’s prompted the government to announce on Thursday a cap on a decade-old household utility subsidy program and to set up a task force for potential future emergency measures, he said.