EU warned it faces ‘biggest financial crisis ever’ over Russia nightmare – recession fears

Gas prices tripling is 'within realm of possibility' says expert

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Since the start of the war in Ukraine, the economic crisis has been magnified throughout Europe due to the reliance of hundreds of millions of residents on gas from Russia. Gas flow from the key Nord Stream 1 pipeline between Russia and Germany – the European Union’s biggest economy – has already been 60 percent lower than the standard flow over the last five years. Annual maintenance on the Nord Stream pipeline finished on Thursday but European Commission President Ursula von der Leyen warned a full cut-off of Russian gas flows to Europe is “a likely scenario”.

Eurozone inflation is predicted to surge to 7.6 percent this year, according to the European Commission – far higher than the previous prediction of 6.1 percent.

Charles-Henri Gallois, President of the Generation Frexit campaign in France, has issued a horror warning that Europe soon face “the biggest financial crisis in its history”.

He told Express.co.uk: “Economic sanctions are doing more damage to Europe than to Russia.

“The recession is obvious. The higher energy cost will lower the demands for all the other products all the more than the other products’ prices are increasing as well.

“It was a mistake to save the euro, which was badly built from the beginning and will die sooner or later.

“The sanctions against Russia is a suicide for Europe. Economic sanctions that hit you more than Russia are totally stupid.

“I’m against Ukraine invasion but we should stop sanctions and focus on peace to avoid Europe suicide.

“If we don’t do it, Europe will face maybe the biggest financial crisis in its history.”

Mr Gallois also warned as the euro continues to plunge in value across currency markets, the price of gas and oil will only surge further.

Earlier this month, the euro fell below the value of the US dollar for the first time in more than 20 years – highlighting the huge struggles facing the European single currency.

The Generation Frexit President added: “Some European countries such as Germany and Italy are very dependent on Russian gas. You cannot replace it like that.

“Other European countries, including France will suffer as well as Russia was an important oil supplier. Quite cheap and they did it with contracts in euros.

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“Now, we are buying the same oil but through India or Saudi Arabia with a mark-up and in dollars. As the euro is falling, you pay it even more expensive.

“It’s quite hypocritical as it’s the same for gas – you cannot replace Russian oil like this. You don’t have the facilities nor the equivalent.”

On Wednesday, European Commission President Ms von der Leyen painted a bleak picture by warning Russia will likely switch off vital gas supplies into the continent.

She launched a furious outburst against Russia while proposing a voluntary target for member states to cut gas use by 15 percent until March 2023.

The EU chief told a news conference: “Russia is blackmailing us. Russia is using energy as a weapon.

“And therefore, in any event, whether it’s a partial, major cut-off of Russian gas or a total cut-off of Russian gas, Europe needs to be ready.”

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