The eurozone may face a recession due to high gas prices and rapid inflation, as a result of which the coming winter could become “one of the worst in history,” European Commissioner for Economy Paolo Gentiloni told German newspaper Der Spiegel on Thursday.
“Nobody can rule this out,” Gentiloni told the media outlet, when asked whether the eurozone would face a recession amid record high gas prices.
The current inflation will cause turmoil in the EU economy, as a result of which the coming winter may become one of the worst in history, the commissioner noted, according to Der Spiegel.
EU countries are experiencing “unprecedented uncertainty,” Gentiloni reportedly said, adding that at the same time, indicators of the EU economy as a whole remained positive and the situation in the labor market was good.
On February 24, Russia began a military operation in Ukraine responding to calls for help from the breakaway republics of Donetsk and Luhansk. The West and its allies have responded by imposing comprehensive sanctions against Russia, with the EU pledging to end its dependence on Russian energy supplies. The bloc has already approved seven packages of sanctions against Moscow, including gradual phase-out of Russian oil. The Ukraine crisis and sanctions have accelerated European-wide inflation and resulted in disruptions of supply chains and a spike in energy prices worldwide.